GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 89

Short Title:  Ethics/Lobbying.	(Public)
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Sponsors: Representatives Jones; Black, Bowman, Cooper, J.W. Crawford, Creech, Diamont, Fletcher, Gist, Gottovi, Grady, Green, Greenwood, Hensley, Howard, Hurley, Jordan, Luebke, Michaux, Payne, Pope, Privette, Russell, Stamey, Warner, Wicker, Withrow, and Wood.
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Referred to:  Ethics.
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February 18, 1991

A BILL TO BE ENTITLED
AN ACT TO CHANGE THE REGISTRATION AND REPORTING REQUIREMENTS FOR LOBBYISTS AND THEIR PRINCIPALS, TO PROHIBIT CAMPAIGN FUND-RAISING FROM LOBBYISTS FOR LEGISLATORS AND COUNCIL OF STATE MEMBERS WHILE THE GENERAL ASSEMBLY IS IN REGULAR SESSION, AND TO REQUIRE A TWO-YEAR WAIT AFTER THEY LEAVE OFFICE BEFORE LOBBYING MAY BE DONE BY FORMER MEMBERS AND PRESIDING OFFICERS OF THE GENERAL ASSEMBLY, FORMER COUNCIL OF STATE MEMBERS, AND FORMER CABINET SECRETARIES.  

PART I   ..............CHANGES IN REGISTRATION AND REPORTING FOR
    LOBBYISTS AND THEIR PRINCIPALS.

PART II	..............NO FUND-RAISING IN SESSION FROM LOBBYISTS.

PART III	...................TWO-YEAR WAIT BEFORE EX-LEGISLATORS, EX-COUNCIL OF STATE MEMBERS, AND EX-CABINET SECRETARIES MAY LOBBY.

The General Assembly of North Carolina enacts:
PART I – CHANGES IN REGISTRATION AND REPORTING.
Section 1.1.   Article 9A of Chapter 120 of the General Statutes reads as rewritten:
"ARTICLE 9A.
"Lobbying.
"§ 120-47.1.  Definitions.
For the purposes of this Article, the following terms shall have the meanings ascribed to them in this section unless the context clearly indicates a different meaning:
(1)	The terms 'contribution,' 'compensation' and 'expenditure' mean any advance, conveyance, deposit, payment, gift, retainer, fee, salary, honorarium, reimbursement, loan, pledge or anything of value and any contract, agreement, promise or other obligation whether or not legally enforceable.
(2)	" " The term 'legislative action' means the preparation, research, drafting, introduction, consideration, modification, amendment, approval, passage, enactment, tabling, postponement, defeat, or rejection of a bill, resolution, amendment, motion, report, nomination, appointment, or other matter by the legislature or by a member or employee of the legislature acting or purporting to act in an official capacity.
(3)	The term 'legislative official' includes:
a.	A member or member-elect of either house of the General Assembly;
b.	A member of a commission or other entity established by and responsible to either house, or both houses, of the General Assembly; or
c.	A legislative employee.
(4)	The term 'lobbying' means:
a.	Influencing or attempting to influence legislative action through oral or written communication;
b.	Solicitation of others to influence legislative action; or
c.	An attempt to obtain the goodwill of a legislative official.
(5)	The term 'lobbyist' means a person who:
a.	Is employed and receives compensation, or who contracts for economic consideration, including reimbursement for reasonable travel and living expenses, for the purpose of lobbying;
b.	Represents an organization, association, or other group and receives compensation, including reimbursement for reasonable travel and living expenses, for the purpose of lobbying;
c.	Is a person who has a pecuniary interest in legislative action; or
d.	Is a public official or public employee who lobbies.
(6)	The term 'lobbyist's principal' means the entity in whose behalf the lobbyist influences or attempts to influence legislative action.
(7)	The term 'person' means any individual, firm, partnership, committee, association, corporation or any other organization or group of persons.
"§ 120-47.2. Registration procedure.
(a)	A lobbyist shall file a registration statement with the Secretary of State before engaging in any lobbying, but no later than 30 days after being employed, appointed, or retained as a lobbyist.  A separate registration statement is required for each lobbyist's principal.  If a corporation, partnership, committee, association, or any other organization or group of persons registers as a lobbyist, then it shall identify each person who will act as a lobbyist on its behalf and a fee in the same amount as imposed by G.S. 120-47.3 shall be due for each person in excess of one.
(b)	The form of such registration shall be prescribed by the Secretary of State and shall include the registrant's full name, firm, and complete address; the registrant's place of business; the full name and complete address of each person by whom the registrant is employed or retained; and a general description of the matters on which the registrant expects to act as lobbyist.
(c)	Each lobbyist shall register again with the Secretary of State no later than 10 days after any change in the information supplied in his last registration under subsection (b). Such supplementary registration shall include a complete statement of the information that has changed.
(d)	Within 20 days after the convening of each session of the General Assembly, the Secretary of State shall furnish each member of the General Assembly and the State Legislative Library a list of all persons who have registered as lobbyists and whom they represent. A supplemental list shall be furnished periodically each 20 days thereafter as the session progresses.
(e)	Each lobbyist who ceases to engage in lobbying requiring him to register under this section shall file a written statement with the Secretary of State acknowledging the termination of lobbying.  The written statement of termination is effective immediately.  Each lobbyist who files a written statement of termination shall file reports required by this Article for any reporting period during which he was registered as a lobbyist.
(f)	After his initial registration, a lobbyist shall register annually with the Secretary of State by January fifteenth of each year.
"§ 120-47.3. Registration fee.
Every lobbyist's principal shall pay to the Secretary of State a fee of seventy-five dollars ($75.00) which fee shall be due and payable by either the lobbyist or the lobbyist's principal at the time of registration.
A separate registration, together with a separate registration fee of seventy-five dollars ($75.00), shall be required for each lobbyist's principal for which a person acts as a lobbyist. Fees so collected shall be deposited in the general fund of the State.
"§ 120-47.4. Written authority from lobbyist's principal to be filed.
Each lobbyist shall file with the Secretary of State within 10 days after his registration a written authorization to act as such, signed by the lobbyist's principal.
"§ 120-47.5. Contingency lobbying fees and election influence prohibited.
(a)	No person shall act as a lobbyist for compensation which is dependent in any manner upon the passage or defeat of any proposed legislation or upon any other contingency connected with any action of the General Assembly, the House, the Senate or any committee thereof.
(b)	No person shall attempt to influence the action of any member of the General Assembly by the promise of financial support of his candidacy, or by threat of financial contribution in opposition to his candidacy in any future election.
"§ 120-47.6. Statements of lobbyist's lobbying expenses required.
(a)	Each lobbyist shall file quarterly expense reports on March 31, June 30, September 30, and December 31 with respect to each person represented.  In addition to the quarterly expense reports, each lobbyist shall file monthly expense reports for each month or portion of a month that the General Assembly is in session with respect to each lobbyist's principal.
(b)	Each expense report shall set forth the date, to whom paid, name of any legislator who benefitted from, and amount of each expenditure made during the previous reporting period in connection with lobbying, 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 during the reporting period in the particular category on behalf of a lobbyist's principal is twenty-five dollars ($25.00) or less. A report shall be filed quarterly and monthly when the General Assembly is in session whether or not contributions or expenditures are made during the reporting period.
(c)	All reports shall be in such form as shall be prescribed by the Secretary of State and shall be open to public inspection.
(d)	When a lobbyist fails to file a lobbying expense report as required herein, the Secretary of State shall send a certified or registered letter advising the lobbyist of his delinquency and the penalties provided by law. Within 20 days of the receipt of such letter, the lobbyist 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 lobbyist under this Article. No lobbyist may register or reregister under this Article until he has fully complied with this section.
"§ 120-47.7. Statements of lobbyist's principal lobbying expenses required.
(a)	Each lobbyist's principal shall file quarterly expense reports on March 31, June 30, September 30, and December 31 with respect to each lobbyist employed or retained.  In addition to the quarterly expense reports, each lobbyist's principal shall file monthly expense reports for each month or portion of a month that the General Assembly is in session with respect to each lobbyist employed or retained.
(b)	Each expense report shall set forth the date, to whom paid, name of any legislator who benefitted from, and amount of each expenditure made during the previous reporting period in connection with lobbying, 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 lobbyists. It shall not be necessary to report expenditures in any particular category if the total amount expended during the reporting period in the particular category on behalf of a lobbyist's principal is twenty-five dollars ($25.00) or less. In the category of compensation to a lobbyist, it shall be necessary to report the portion of compensation made in connection with the lobbyist's lobbying activities.  A report shall be filed whether or not payments are made during the reporting period.
(c)	All reports shall be in the form prescribed by the Secretary of State and open to public inspection.
(d)	When a lobbyist's principal fails to file a lobbying expense report as required herein, the Secretary of State shall send a certified or registered letter advising the lobbyist's principal of his delinquency and the penalties provided by law. Within 20 days of the receipt of such letter, the lobbyist's principal 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. 
"§ 120-47.8. Persons exempted from provisions of Article.
The provisions of this Article shall not be construed to apply to any of the following:
(1)	An individual:
a.	Who represents only the individual;
b.	Who purports to represent only the individual; and
c.	Who receives no compensation or anything of value for lobbying.
(2)	A person appearing before a legislative committee at the invitation or request of the committee or a member thereof and who engages in no further activities as a lobbyist in connection with that or any other legislative matter.
(3)	A duly elected or appointed official or employee of the State, the United States, a county, municipality, school district or other governmental agency, when appearing solely in connection with matters pertaining to his office and public duties.
(4)	A person performing professional services in drafting bills or in advising and rendering opinions to clients as to the construction and effect of proposed or pending legislation where such professional services are not otherwise, directly or indirectly, connected with legislative action.
(5)	A person who owns, publishes or is employed by any news medium while engaged in the acquisition or dissemination of news on behalf of such news medium.
(6)	Notwithstanding the persons exempted in this section, the Governor, Council of State, and all appointed heads of State departments, agencies and institutions, shall designate all authorized official legislative liaison personnel and shall file and maintain current lists of designated legislative liaison personnel with the Secretary of State and shall likewise file with the Secretary of State a full and accurate accounting of all money expended in influencing or attempting to influence legislation, other than the salaries of regular full-time employees.
(7)	Legislative officials.
(8)	A person responding to inquiries from a member of the General Assembly, and who engages in no further activities as a lobbyist in connection with that or any other legislative matter.
	"§ 120-47.9. Punishment for violation.
Whoever willfully violates any provision of this Article shall be guilty of a misdemeanor and upon conviction shall be fined not less than fifty dollars ($50.00) nor more than one thousand dollars ($1,000), or imprisoned not exceeding two years, or both. In addition, no lobbyist who is convicted of a violation of the provisions of this Article shall in any way act as a lobbyist for a period of two years following his conviction.
"§ 120-47.10. Enforcement of Article by Attorney General.
The Secretary of State shall report apparent violations of this Article to the Attorney General. The Attorney General shall, upon complaint made to him of violations of this Article, make an appropriate investigation thereof, and he shall forward a copy of the investigation to the district attorney of the prosecutorial district as defined in G.S. 7A-60 of which Wake County is a part, who shall prosecute any person who violates any provisions of this Article."
Sec. 1.2. Article 10 of Chapter 120 of the General Statutes is repealed.
PART II – LIMITS ON FUND-RAISING IN SESSION.
Sec. 2. Chapter 163 of the General Statutes is amended by adding a new section to read:
"§ 163-278.13A.  No fund-raising from lobbyists for legislators or Council of State members while General Assembly is in regular session.
(a)	While the General Assembly is in regular session, none of the following entities may solicit or accept a contribution from an individual registered as a lobbyist pursuant to Article 9A of Chapter 120 of the General Statutes:
(1)	A member of the Council of State; or
(2)	A member of the General Assembly; or
(3)	A political committee the principal purpose of which is to assist a member or members of the Council of State or General Assembly.
(b)	While the General Assembly is in regular session, no individual registered as a lobbyist under Article 9A of Chapter 120 of the General Statutes may make a contribution to any of the entities listed in subdivisions (1) through (3) of subsection (a).
(c)	This section does not apply to:
(1)	Any contribution made to or by a State, county, or congressional district executive committee of a political party; or
(2)	Any contribution made to a political committee that operates on a statewide basis in conjunction with the executive committee of a political party for the purpose of assisting that party's candidates for Council of State or General Assembly; or
(3)	Any contribution made by a member of the Council of State or General Assembly to a political committee the principal purpose of which is to assist himself; or
(4)	Any contribution accepted with the intent that it be used to defray legal or other expenses incurred in connection with the contesting of election results.
(d)	A violation of this section is a misdemeanor, but no individual or person shall be prosecuted under this section for accepting a contribution unless that individual or person has been notified by the State Board of Elections of the apparent violation and been given an opportunity to return a contribution or to request that it be returned.
(e)	For purposes of this section, the General Assembly is not in regular session:
(1)	After it has adjourned sine die; or
(2)	After it has recessed or adjourned for more than 10 days but before it has reconvened."
PART III – TWO-YEAR WAIT BEFORE LOBBYING.
Sec. 3.  Article 9A of Chapter 120 of the General Statutes is amended by adding a new section to read:
"§ 120-47.5A. Waiting period before ex-officials may lobby.
Notwithstanding the provisions of G.S. 120-47.8, no individual may be employed or retained or may act as a lobbyist within two years after having served as a member or presiding officer of either house of the General Assembly, as a member of the Council of State, as the principal head of any department listed in G.S. 143B-6(1)	through (9), or as a State employee whose annual compensation exceeds twenty-five thousand dollars ($25,000)."
Sec. 4. This act becomes effective January 1, 1993. Section 3 shall apply only to individuals who leave office or State employment after January 1, 1993.