GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 325

Short Title:  Lobbying Regulation.	(Public)
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Sponsors: Representatives Jones; Bowman and Privette.
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Referred to:  Judiciary III.
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March 25, 1991

A BILL TO BE ENTITLED
AN ACT TO REQUIRE LOBBYISTS AND THEIR EMPLOYERS OR RETAINERS TO KEEP EXPENSE RECORDS FOR THREE YEARS AFTER SUBMITTING EACH LOBBYING EXPENSE REPORT, TO INCREASE THE PUNISHMENT FOR MAKING FALSE AND MISLEADING STATEMENTS ON LOBBYISTS' EXPENSE REPORTS TO A CLASS I FELONY, TO PERMIT THE SECRETARY OF STATE TO INVESTIGATE AND REFER EVIDENCE OF VIOLATIONS OF ARTICLE 9A OF CHAPTER 120 OF THE GENERAL STATUTES DIRECTLY TO THE APPROPRIATE DISTRICT ATTORNEY, AND TO GRANT THE SECRETARY OF STATE THE AUTHORITY TO MAKE, AMEND, AND RESCIND RULES, FORMS, ORDERS, AND DEFINITIONS IN CONNECTION WITH THE REGULATION OF LOBBYISTS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 120-47.6 reads as rewritten:
"§ 120-47.6.  Statements of legislative agent's lobbying expenses required.
Each legislative agent shall file annually, within 30 days after the final adjournment of the regular session of the General Assembly held in a calendar year, a report with respect to each person represented setting forth the date, to whom paid, and amount of each expenditure made during the previous year in connection with promoting or opposing any legislation in any manner covered by this Article, in each of the following categories: (1)	transportation, (2) lodging, (3) entertainment, (4) food, (5) any item having a cash equivalent value of more than twenty-five dollars ($25.00) and (6) contributions made, paid, incurred or promised, directly or indirectly.  It shall not be necessary to report expenditures in a particular category if the total amount expended in the particular category on behalf of a person represented is twenty-five dollars ($25.00) or less.  A report shall be filed annually whether or not contributions or expenditures are made.  All reports shall be in such form as shall be prescribed by the Secretary of State and shall be open to public inspection.  A legislative agent shall preserve for a period of three years from the date of the filing of each lobbying expense report all accounts, bills, books, papers, receipts, and other documents and records necessary to substantiate the expense report that was submitted.  When a legislative agent fails to file a lobbying expense report as required herein, the Secretary of State shall send a certified or registered letter advising the agent of his delinquency and the penalties provided by law.  Within 20 days of the receipt of such letter, the agent shall deliver or post by United States mail to the Secretary of State the required report and an additional late filing fee of ten dollars ($10.00).  Filing of the required report and payment of the additional fee within the time extended shall constitute compliance with this section.  Failure to file an expense report in one of the manners prescribed herein shall result in revocation of any and all registrations of a legislative agent under this Article.  No legislative agent may register or reregister under this Article until he has fully complied with this section."
Sec. 2.  G.S. 120-47.7 reads as rewritten:
"§ 120-47.7.  Statements of employer lobbying expenses required.
Each person who employs or retains a legislative agent shall file annually, within 30 days after the final adjournment of the regular session of the General Assembly held in a calendar year, a report with respect to each agent employed or retained setting forth the date, to whom paid, and amount of each expenditure made during the previous year in connection with promoting or opposing any legislation in any manner covered by this Article, in each of the following categories: (1)	transportation, (2) lodging, (3) entertainment, (4) food, (5) any item having a cash equivalent value of more than twenty-five dollars ($25.00), (6) contributions made, paid, incurred or promised, directly or indirectly, and (7) compensation to legislative agents.  It shall not be necessary to report expenditures in any particular category if the total amount expended in the particular category on behalf of a person represented is twenty-five dollars ($25.00) or less.  In the category of compensation to legislative agents it shall not be necessary to report the full salary, or any portion thereof, of a legislative agent who is a full-time employee of or is annually retained by the reporting employer.  A report shall be filed annually whether or not payments are made.  All reports shall be in the form prescribed by the Secretary of State and open to public inspection.  An employer or retainer of a legislative agent shall preserve for a period of three years from the date of the filing of each lobbying expense report all accounts, bills, books, papers, receipts, and other documents and records necessary to substantiate the expense report that was submitted.  When an employer or retainer of a legislative agent fails to file a lobbying expense report as required herein, the Secretary of State shall send a certified or registered letter advising the employer or retainer of his delinquency and the penalties provided by law.  Within 20 days of the receipt of such letter, the employer or retainer shall deliver or post by United States mail to the Secretary of State the required report and a late filing fee of ten dollars ($10.00).  Filing of the required report and payment of the late fee within the time extended shall constitute compliance with this section."
Sec. 3.  G.S. 120-47.9 reads as rewritten:
"§ 120-47.9.  Punishment for violation.
(a)	Any person who willfully violates any provision of this Article shall be guilty of a misdemeanor and upon conviction or plea of guilty shall be fined, or imprisoned, or both.
(b)	Any person who willfully and knowingly and with intent to deceive makes a false statement or representation or who fails to disclose a material fact on any expense report as required by G.S. 120-47.6 or G.S. 120-47.7 shall be guilty of a Class I felony.
(c)	No person who is convicted of a violation of the provisions of this Article shall in any way act as a legislative agent for a period of two years following his conviction."
Sec. 4.  G.S. 120-47.10 reads as rewritten:
"§ 120-47.10.  Enforcement of Article by Secretary of State.
(a)	The Secretary of State in his discretion:
(1)	May make such public or private investigations within or outside of this State as he deems necessary to determine whether any person has violated or is about to violate any provision of this Article or any rule or order hereunder, or to aid in the enforcement of this Article or in the prescribing of rules and forms hereunder;
(2)	May require or permit any person to file a statement in writing, under oath or otherwise as the Secretary of State determines, as to all the facts and circumstances concerning the matter to be investigated;
(3)	May publish information concerning any violation of this Article or any rule or order hereunder; and
(4)	May designate employees of the Office of Secretary of State as investigators to implement the provisions of this Article.  Investigators may serve and execute notices, orders, or demands issued by the Secretary of State for the surrender of registrations or relating to any administrative proceeding.
(b)	For the purpose of any investigation or proceeding under this Article, the Secretary of State or any employee designated by him may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the Secretary of State deems relevant or material to the inquiry.
(c)	In case of contumacy by, or refusal to obey a subpoena issued to any person, any court of competent jurisdiction, upon application by the Secretary of State, may issue to the person an order requiring him to appear before the Secretary of State, or the employee designated by him, and to produce documentary evidence if so ordered or to give evidence touching the matter under investigation or in question.  Failure to obey the order of the court may be punished by the court as a contempt of court.
(d)	The Secretary of State may refer evidence as is available concerning violations of this Article or of any rule or order hereunder to the district attorney of the prosecutorial district as defined in G.S. 7A-60 of which Wake County is a part, who may, with or without a reference, institute the appropriate criminal proceedings under this Article.  Upon receipt of the reference, the district attorney may request that a duly employed attorney of the Secretary of State assist in the prosecution of the violation or violations on behalf of the State.
(e)	Nothing in this Article limits the power of the State to punish any person for any conduct which constitutes a crime by statute or at common law."
Sec. 5.  Article 9A of Chapter 120 of the General Statutes is amended by adding a new section to read:
"§ 120-47.11.  Rules and forms.
The Secretary of State may make, amend, and rescind any rules, orders, forms, and definitions as are necessary to carry out the provisions of this Article."
Sec. 6.  This act becomes effective January 1, 1993.