Microsoft Experienced in Lobbying State’s Leaders

Microsoft Corp. plays a pragmatic role in Capitol politics, giving campaign money to Gov. Gray Davis and hiring lobbyists who are close to the Democratic governor and Atty. Gen. Bill Lockyer.

Lockyer inherited California’s piece of the antitrust lawsuit from his Republican predecessor, Dan Lungren. Lungren then ran against Davis for governor, and Microsoft backed Davis. The company also backed Lockyer’s opponent, who had promised to drop the case.

Microsoft has spent $855,220 on California state politics since 1999, reports filed with the secretary of state show. Though the sum is large, it doesn’t place the company near the biggest spenders in Sacramento.

The Redmond, Wash.-based software giant employs two lobbying firms, Platinum Advisors and Sacramento Advocates. Platinum was founded by Darius Anderson as Davis was taking office in 1999, and Microsoft was among Anderson’s first clients, retaining him in March of that year.

Anderson had been chief fund-raiser for Davis during the 1998 campaign and remains close to the governor and others in the administration. He quickly has built one of the top-billing lobbying firms in the capital. Before hiring Platinum Advisors, Microsoft had as its lobbyist Flanigan Law Firm, which was viewed as being close to Davis’ predecessor, Pete Wilson.

Sacramento Advocates, also one of the top lobbying firms in the capital, counts among its partners Daniel Boatwright, a former Democratic state senator who was one of Lockyer’s main allies when Lockyer was in the state Senate.

Davis has not spoken publicly about the Microsoft case. Boatwright could not be reached and Anderson declined to comment.

In filings with the secretary of state’s office, Microsoft said it paid Sacramento Advocates $90,089 in the first nine months of this year and Platinum Advisors $40,064. Last year, the software firm spent $240,051 on lobbying; it spent $169,996 in 1999.

Microsoft’s lobbying reports disclose no attempt to influence Lockyer or other state officials on antitrust issues. Rather, the documents say, its lobbying effort focuses on the governor’s office, the state Department of Justice, the Department of General Services and the Legislature on issues related to privacy, piracy, state contracts for electronic government and legislation.

Microsoft also spreads goodwill by feting lawmakers, legislative staffers and aides to Davis and other officeholders at dinners and lunches in Los Angeles, Sacramento and Seattle. Last year, for example, Microsoft picked up a $6,606 tab for seven lawmakers at Nick & Stef’s Steakhouse in downtown Los Angeles. It also has treated staffers, including an aide to Davis, to concerts and sports events, its lobby reports show.

In addition to its lobbying, Microsoft has reported giving $315,020 in campaign donations to various state politicians since 1999. As part of its donations to Davis, Microsoft gave software to his campaign that the governor valued at $2,078. Davis reported receiving $58,964 from Microsoft since taking office almost three years ago.

This year, Microsoft reported contributing $38,500 to state politicians, with $22,500 going to Davis. In 2000, an election year, the company reported contributing $196,327 to state campaigns, including $25,000 to Assembly Democratic candidates and $10,000 to TechNet, a political action committee made up of high-tech firms.

Microsoft rival Oracle Corp. has spent less on state politics--$202,220 on donations since 1999 and $78,624 on lobbying. However, unlike Microsoft, Oracle is a significant donor to Lockyer, giving him $25,000 earlier this year and $25,000 in 2000. In the first nine months of this year, Oracle donated $64,500 to politicians, including $25,000 to Davis.

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Staff writer Joseph Menn contributed to this report.