Directors of the California Public Employees’ Retirement System (CalPERS) adopted several new ethics proposals. Among the proposals are rules to regulate fee payments to placement agents, who help funds gain access to CalPERS decision makers, and rules to ensure the same staff members who negotiate investment deals do not monitor their success.

Additionally, the directors approved a requirement for investment partners to hold meetings in modest office settings instead of vacation resorts. The directors postponed decisions on proposals to reduce or eliminate travel, gifts, and other accommodations outside investment firms provide board members, and to impose a two-year “revolving door” ban on certain CalPERS employees.

These regulations being put in place are in line with legislation taking effect earlier this year requiring placement agents to register as lobbyists and regulating how the agents are paid.

Photo of CalPERS headquarters by Coolcaesar on Wikipedia.

Starting July 1, those in Orange County, California who are seeking to influence county government will be required to register with the Board of Supervisors. Under the new law, county lobbyists must register within 10 days of commencing lobbying activity and renew these registrations annually.

The registration fee will be $75 for an initial registration and $50 for each annual renewal thereafter. Orange County is the largest municipality in the state without a system for monitoring and disclosing lobbying activity. The regulation does not apply to those lobbying on behalf of nonprofit organizations.

The State Ethics Commission has created a ‘Debtors’ page on its web site, posting the names of lobbyists, lobbyists’ principals, public officials and others who have failed to pay late filing penalties and enforcement fines. The commission hopes to use this publicly available consolidated listing to help ensure compliance with the registration and disclosure requirements under the campaign finance and lobbying laws of the state.

The penalties owed range from $732,400 all the way down to $10. The page includes contact information for anyone appearing in the list to arrange for payment.

Senator Michael G. Waddoups introduced a bill mandating training for all registered lobbyists. SB 251 requires the lieutenant governor to develop and maintain a training course for lobbyists and make the training available on the internet to both lobbyists and the public. The bill also includes a component to help lobbyists understand state campaign finance requirements.

Lobbyists would be required to complete the training course once a year. A lobbyist who does not complete the training required could face a $1,000 fine and suspension of their lobbying license.

Photo of Senator Waddoups courtesy of the Utah Senate Web site.

Senator James Arnold has introduced a bill which would require persons seeking business relationships with local jurisdictions and their agencies to register and report activity and expenditures as lobbyists, whether or not the local jurisdictions have ordinances dealing with lobbying. Senate Bill 0330 defines ‘business relationship’ to include pecuniary interest contracts and purchases with an agency with an aggregate value of at least $100,000.

The bill calls for the reporting to be filed with the local county clerks where the lobbying activity occurs. A $100 a day late fine would be imposed for each day a lobbyist misses his or her filing date and lobbyists knowingly failing to register or file would face a Class A infraction.

The bill also allows local jurisdictions to adopt ethics ordinances and establish ethics commissions.

Map of Indiana by Jim Irwin on Wikipedia.

Q. Once I complete my lobbyist registration, what other obligations do I have in my state?

A. Filing lobbyist and/or principal disclosure reports is the bare minimum requirement in many states.  In addition, you may be required to obtain an ID badge.  Some states require mandatory lobbyist training on a regular basis.  Most often, this can be done online.  To date, the states requiring this are: Alaska, California, Illinois, Louisiana, Maryland, Massachusetts, Tennessee, Utah, and West Virginia.

Many states have different gift law limitations for lobbyists.  For example, in Texas lobbyists are permitted to give gifts of $500 or less, while public servants may accept non-cash item of less than $50 from non-lobbyists.

In addition to reporting requirements, states may require pre- or post-notification to officials when an expenditure has been made on his/her behalf which is disclosed on a lobbying report.  In Illinois, a lobbyist who makes an expenditure on behalf of an official must inform him/her, in writing, at the time the expenditure.

We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need. Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Amber Fish Linke is the Compliance Manager for State and Federal Communications, Inc.

All of the legislatures, even those that do not meet every year, are in session in 2011.  Thus, it is important to know the registration obligations for your lobbyists in all of the jurisdictions in which they will be active.  The most important pieces of information you need to know are whether they will need to register and when the registration will need to be filed.  Many jurisdictions have a threshold, based on expenditures, salary, or time spent lobbying, that needs to be crossed before registration is required.  Depending on your situation, you may not need to register if your lobbying activities will be minimal.  Many other jurisdictions, however, have no threshold and will require registration before or within a certain amount of time of your lobbyist engaging in lobbying.

This brings up an important point:  it is crucial that you understand what activities comprise lobbying in the jurisdiction.  A lobbyist may meet the definition of “lobbyist” before contact is even made with an official.  And do not forget that once registered, you will have ongoing reporting requirements.  Illinois and Georgia, in particular, will have more frequent reporting than in past years. (more…)

The Alabama legislature concluded its special session late Thursday. The lawmakers passed versions of all seven bills proposed by Governor Bob Riley.

The new laws modify and strengthen state lobbying, campaign finance, and ethics rules. Among the highlights of the laws heading to the Governor’s desk is a requirement for those seeking a state grant or contract with the executive branch to register as lobbyists.

Under another pending bill, a lobbyist will be forbidden from giving an official a “thing of value” with certain exceptions, such as a meal costing $25 with a total limit of $125 per year. Governor Riley’s office has indicated each of the seven passed bills will be signed into law unless the staff reviewing them discovers mistakes or errors.

Photo of Alabama State Capitol by Jim Bowen on Wikipedia.

State senator Lou Correa has introduced a Senate Bill 31, a law laying groundwork to eventually require local government lobbying registration. The law would apply to any municipality applying for a discretionary grant from any state agency or department.

The bill is, at this point, nothing more than an introductory statement but could force the hands of municipalities such as Orange County, who have thus far balked at attempts to regulate lobbying activities.

On December 15, 2010, the Mississippi Secretary of State’s Office will roll-out a new electronic filing system for lobbyists and clients. The new electronic filing system is for 2011 new registrations and lobbying reports.

All 2010 cycle reports will be still be filed on paper.

The new electronic filing system may be accessed at: http://www.sos.ms.gov/elec/portal/msel/portal.aspx

Similar legislation was voted down last month. If the ordinance passes, anyone who lobbies the county board on behalf of someone else will be required to register annually and report on whose behalf he or she is lobbying. The call for lobbyist disclosure in Orange County comes after a county grand jury issued a report critical of the county supervisors for not having any lobbyist disclosure requirements. Several local political figures have implicitly threatened to have a lobbyist registration law placed on an upcoming ballot if the supervisors do not create it themselves.

Photo of Newport Center skyline and Santa Ana mountains by Brian 1078 on Wikipedia.

The Texas Ethics Commission has issued a public notice to all lobbyists registered with the commission. The commission advises all filers to install the newest lobby electronic filing software, version 2.5.3, prior to filing a lobby activities report. In Texas, lobbyists required to register with the commission may include corporations, partnerships, association or other types of business entities as well as individuals.

The new software will be available for download on the Ethics Commission website beginning December 1, 2010 at: www.ethics.state.tx.us/whatsnew/elf_info_lobby.htm

Image of the Seal of the State of Texas by Juan Vega on Wikipedia.

Although the provisions of the bill were enacted as a new and separate chapter in the Louisiana Revised Statutes, they largely mirror the requirements of the lobbying laws already applicable to legislative and executive branch lobbying on the state level.  For example, as it is on the state level, registrations expire on December 31^st of each year and registration renewals are due on January 31^st at the latest.  Reports of local lobbying activity are due on the 25^th day of each month, as they are at the state level.  And the information required to be disclosed is largely the same.

The bill contains a provision found in the state executive branch lobbying law, but not in the legislative branch lobbying law, which allows an employer to file reports on behalf of all the lobbyists representing that employer’s interests.  An employer wishing to exercise that option must notify the board of ethics by January 31^st.

Unlike the state-level lobbying laws, the bill does not specify a registration fee for local lobbyists.

The Louisiana Board of Ethics is responsible under the bill for administering and enforcing the provisions of the bill.  This includes educational activities and seminars related to the bill, as well as the assessment of late filing fees.

State and Federal Communications will continue to monitor developments with regard to local lobbying laws in Louisiana as the bill goes into effect and is implemented by the board of ethics.

Photo of the Louisiana State Capitol by Bluepoint951 on Wikipedia.

The Minnesota Campaign Finance and Public Disclosure Board issued Advisory Opinion 413 clarifying the state’s lobbyist registration requirements.  The Board sought to answer whether a lobbyist is required to register multiple times when employed by an entity which consists of a parent company and a number of affiliates, including subsidiaries and joint ventures controlled by or under common ownership and control of the parent company.

Several of the affiliates have legislative and administrative interests in Minnesota, and lobbying is conducted on their behalf.  The Board concluded that a lobbyist must register on behalf of each association whose interests they promote, regardless of the mechanism used to retain or direct the efforts of the lobbyists.   The opinion continued that a lobbyist who represents an association such as a trade or business association is not required to register separately for each member of the association.

Photo of the Minnesota State Capitol by Mulad on Wikipedia.