California Governor Jerry Brown has signed senate bill 398 into law. The bill alters definitions and reporting requirements for those who do business with the board of a public pension or retirement system to manage securities or other assets and went into effect upon signature.

Specifically, the new law modifies the definition of external managers to mean a person who is seeking to be, or is, retained by a board or an investment vehicle to manage a portfolio of securities or other assets for compensation, or a person who manages an investment fund, and who offers or sells, or has offered or sold an ownership interest in the investment fund to a board or investment vehicle. The law also alters the definition of a placement agent to a person directly or indirectly hired, engaged, or retained by, or serving for the benefit of or on behalf of, an external manger and who acts or has acted for compensation as a finder, solicitor, marketer, consultant, broker, or other intermediary in connection with the offer or sale to a board or investment vehicle either the investment management services of the external manager or an ownership interest in an investment fund managed by the external manager.

Additional changes made as the result of the new law include the exemption of placement agents from any requirements imposed by a local government agency, including lobbyist registration and reporting, if the placement agent is an employee, officer, or director of an external manager, or of an affiliate of an external manager, and the external manager is registered as an investment adviser or a broker-dealer with the Securities and Exchange Commission or any state securities regulator. Further, placement agents are exempt from local requirements if the external manager is participating in a competitive bidding process, such as a request for proposal, or has been selected through a competitive bidding process and is providing services pursuant to a contract executed as a result of that bidding process, or when the external manager, if selected through competitive bidding, has agreed to a fiduciary standard of care for the contract.

The Philadelphia Board of Ethics has approved proposed regulations that define lobbying activity and describe how lobbyists must register and report expenditures.

If the regulations are approved by the Law Department, they could become effective in early October. A previous board decision to provide a 30 day grace period would not require lobbyist registration until November.

Additionally, registration could begin only when the board has an online registration system in place.  Shane Creamer, executive director of the board, stated he hoped the online registration system would be ready in November.

A new bill introduced into Congress redefines lobbyist and increases lobbyist reporting requirements.

Representative Mike Quigley has introduced the Lobbying Disclosure Enhancement Act, which changes the definition of lobbyist by removing the exception of individuals whose lobbying activities account for less than 20 percent of the time engaged in lobbying over a three month period.

Lobbyists would be required to register online within five days of employment, as opposed to the current 45 day requirement. For each lobbying activity which engaged an official, a lobbyist would be required to report the date of the contact, the specific issue discussed, and identify those covered executive branch officials or Members of Congress contacted about the issue. If lobbying an employee of a Member of Congress, the Member’s name would also have to be reported. Political contributions by lobbyists to candidates would have to be reported quarterly instead of semi-annually.

The bill also creates a special unit for enforcing the lobbying disclosure laws called the Lobbying Disclosure Act Enforcement Task Force, whose primary responsibility would be investigating and prosecuting each case referred to the Attorney General.

Because of a technical malfunction, the Illinois Secretary of State‘s reporting system was unavailable from January 16th until early on January 18th. Accordingly, the Index Department has extended the deadline for reporting expenditures made in the first half of January.

Instead of being due on January 20th, those required to file reports now have until January 23.