A BILL TO BE ENTITLED
AN ACT to amend the legislative lobbying laws by establishing waiting periods before certain state officers may lobby; by barring lobbyists from certain appointments and other activities; by banning certain gifts; by establishing quarterly reporting of expenditures with additional interim reporting; by expanding the coverage of the lobbying laws to include executive branch officers; by limiting campaign contributions by registered lobbyists; and by making other conforming changes, as recommended by the House select committee on ethics and governmental reform.
The General Assembly of North Carolina enacts:
SECTION 1. Article 9A of Chapter 120 of the General Statutes is amended to add a new section to read:
"§ 120‑47.7C.  Prohibitions.
(a)	No member or former member of the General Assembly may be employed as a legislative lobbyist by a lobbyist's principal to lobby as defined in this Article within one year after the end of that member's service in the General Assembly.
(b)	No person serving, or formerly having served, as Governor, a member of the Council of State, or a head of a principal State department listed in G.S. 143B‑6 may be employed as a legislative lobbyist by a lobbyist's principal to lobby as defined in this Article within one year after separation from employment or leaving office.
(c)	No individual registered as a legislative lobbyist shall serve as a campaign treasurer under Chapter 163 of the General Statutes as defined in G.S. 163‑278.6(19) for a campaign for election as a member of the General Assembly, Governor, or Council of State.
(d)	A legislative lobbyist shall not be eligible for appointment by a State official to any body created under the laws of this State that has regulatory authority over the activities of a person that the legislative lobbyist currently represents or has represented within 60 days after the expiration of the legislative lobbyist's registration representing that person. Nothing herein shall be construed to prohibit appointment by any unit of local government.
(e)	No legislative lobbyist or another acting on the legislative lobbyist's behalf shall permit a covered person, legislative employee, or that person's immediate family member to use the cash or credit of the lobbyist for the purpose of lobbying unless the lobbyist is in attendance at the time of the expenditure."
SECTION 2.  Article 9A of Chapter 120 of the General Statutes is amended to add a new section to read:
"§ 120‑47.7B.  Powers and duties of the Secretary of State.
(a)	The Secretary of State shall perform systematic reviews of reports required to be filed under G.S. 120‑47.6 and G.S. 120‑47.7 on a regular basis to assure complete and timely disclosure of expenditures.
(b)	The Secretary of State may petition the Superior Court of Wake County for the approval to issue subpoenas and subpoenas duces tecum as necessary to conduct investigations of violations of this Article. The court shall authorize subpoenas under this subsection when the court determines they are necessary for the enforcement of this Article. Subpoenas issued pursuant to this subsection shall be enforceable by the court through contempt powers. Venue shall be with the Superior Court of Wake County for any nonresident person, or that person's agent, who makes a reportable expenditure under this Article, and personal jurisdiction may be asserted under G.S. 1‑75.4.
(c)	Complaints of violations of this Article and all other records accumulated in conjunction with the investigation of these complaints shall be considered records of criminal investigations under G.S. 132‑1.4."
SECTION 3.  Article 9A of Chapter 120 of the General Statutes reads as rewritten:
"Article 9A.
" Lobbying.
"§ 120‑47.1.  Definitions.
As used in this Article, the following terms mean:
(1)	Covered person. – A legislator, legislative employee, or executive branch officer.(1a)	Advocacy day. – A day that any lobbyist's principal collectively assembles its membership or employees and advocates for legislative or executive action.
(1b)	Constitutional officers of the State. – Officers whose offices are established in Article III of the Constitution.
(1c)	Executive action. – Any decision, including administration, approval, disapproval, preparation, recommendation, the rendering of advice, and investigation, made or contemplated in any proceeding, application, submission, request for a ruling or other determination, contract, claim, controversy, investigation, charge, or rule making.
(1d)	Executive branch officer. – All of the following:
a.	Constitutional officers of the State, persons elected or appointed as a Constitutional officer of the State prior to taking office, or a person having filed a notice of candidacy for such office under G.S. 163‑106 or Article 11 of Chapter 163 of the General Statutes.
b.	Employees of the Office of the Governor.
c.	Heads of all principal State departments, as set forth in G.S. 143B‑6, who are appointed by the Governor.
d.	The chief deputy or chief administrative assistant of each person designated under sub‑subdivisions a. and c. of this subdivision.
e.	Confidential assistants and secretaries as defined in G.S. 126‑5(c)(2), to persons designated under sub‑subdivisions a., c., and d. of this subdivision.
f.	Employees in exempt positions as defined in G.S. 126‑5(b) and employees in exempt positions designated in accordance with G.S. 126‑5(d)(1), (2), or (2a), and confidential secretaries to these individuals.
g.	Any other employees or appointees in the principal State departments as may be designated by the Governor to the extent that the designation does not conflict with the State Personnel Act.
h.	All voting members of boards, including ex officio members and members serving by executive, legislative, or judicial branch appointment.
i.	For The University of North Carolina, the voting members of the Board of Governors of The University of North Carolina, the president, the vice‑presidents, and the chancellors, the vice‑chancellors, and voting members of the boards of trustees of the constituent institutions.
j.	For the System of Community Colleges, the voting members of the State Board of Community Colleges, the President and chief financial officer of the System of Community Colleges, the president, chief financial officer and chief administrative officer of each community college, and voting members of the boards of trustees of each community college.
(1e)	Expenditure. – Any advance, contribution, conveyance, deposit, distribution, payment, gift, retainer, fee, salary, honorarium, reimbursement, loan, pledge or thing of value greater than ten dollars ($10.00) per single calendar day or a contract, agreement, promise or other obligation whether or not legally enforceable, that directly or indirectly is made to, at the request of, for the benefit of, or on the behalf of a covered  person or that person's immediate family member.
(1f)	Extended family. – Spouse, descendant, ascendant, or sibling of the covered person or, descendant, ascendant, or sibling of the spouse of the covered person.
	(2),(3)	Repealed by Session Laws 1991, c. 740, s. 1.1.
(2a)	Gift. – Anything of value without valuable consideration.
(3a)	Immediate family member. – An unemancipated child of the covered person residing in the household, and the covered person's spouse, if not legally separated.
(4)	Legislative action. – 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, whether or not the matter is identified by an official title, general title, or other specific reference, by the legislature or by a member or employee of the legislature acting or purporting to act in an official capacity. It also includes the consideration of any bill by the Governor for the Governor's approval or veto under Article II, Section 22(1) of the Constitution or for the Governor to allow the bill to become law under Article II, Section 22(7) of the Constitution.
(4a)	Legislative employee. – Employees and officers of the General Assembly.
(4b)	Liaison personnel. – Any State employee or officer whose principal duties, in practice or as set forth in that person's job description, include lobbying the General Assembly or executive branch officers.
	(4d)	Legislator. – A member or presiding officer of the General Assembly, a person elected or appointed a member or presiding officer of the General Assembly prior to taking office, or a person having filed a notice of candidacy for such office under G.S. 163‑106 or Article 11 of Chapter 163 of the General Statutes.
(5)	Lobbying. – Any of the following:
a.	Influencing or attempting to influence legislative or executive action, or both, through direct communication or activities with a covered person or that person's immediate family member.
b.	Solicitation of others by lobbyists or lobbyists' principals to influence legislative or executive action, or both.
c.	Developing goodwill through communications or activities, including the building of relationships, with a covered person or that person's immediate family member with the intention of influencing current or future legislative action, but does not include communications or activities with a covered person or that person's immediate family member in a business, civic, religious, fraternal, or commercial relationship which is not connected to legislative or executive action, or both.
(6)	Lobbyist. – An individual who meets any of the following criteria:
a.	Is employed and receives compensation, or who contracts for economic consideration, for the purpose of lobbying.
b.	Represents another person and receives compensation for the purpose of lobbying.
	
		The term "lobbyist" shall not include those individuals who are specifically exempted from this Article by G.S. 120‑47.8. For the purpose of determining whether an individual is a lobbyist under this subdivision, reimbursement of actual travel and subsistence expenses shall not be considered compensation; provided, however, that reimbursement in the ordinary course of business of these expenses shall be considered compensation if a significant part of the individual's duties involve lobbying before the General Assembly or executive branch officers.
(7)	Lobbyist principal and principal. – The person on whose behalf the lobbyist lobbies. In the case where a lobbyist is compensated by a law firm, consulting firm, or other entity retained by a person for lobbying, the principal is the person whose interests the lobbyist represents in lobbying. In the case of a lobbyist employed or retained by an association or other organization, the lobbyist's principal is the association or other organization, not the members of the association or other organization.
(7a)	News medium. – Mainstream media providers whose sole purpose is to report events and that does not involve research or advocacy.
(8)	Person. – Any individual, firm, partnership, committee, association, corporation, business entity, or any other organization or group of persons which has an independent legal existence.
(8a)	Public event. – Either of the following:
a.	An organized gathering of individuals open to the general public or to which a legislator or legislative employee is invited along with the entire membership of the House, Senate, a committee, a subcommittee, a county legislative delegation, a joint committee or legislative caucus and to which at least 10 employees or members of the principal actually attend.
b.	An organized gathering of individuals open to the general public or to which at least ten executive branch officers are invited to attend and at least 10 employees or members of the principal actually attend. 
(9)	In regular session. – The date set by law or resolution that the General Assembly convenes until the General Assembly either:
a.	Adjourns sine die; or
b.	Recesses or adjourns for more than 10 days.
§ 120‑47.2.  Registration procedure.
(a)	A lobbyist shall file a registration statement with the Secretary of State in a manner prescribed by the Secretary before engaging in any lobbying. It shall be unlawful for a person to lobby without registering unless exempted by this Article. A lobbyist shall file a separate registration statement for each principal the lobbyist represents. 
(b)	The form of the registration shall be prescribed by the Secretary of State and shall include the registrant's full name, firm, complete address and telephone number; the registrant's place of business; the full name, complete address and telephone number 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 a lobbyist. The Secretary of State shall make available as soon as practicable the registrations of the lobbyists and lobbyists' principals in an electronic, searchable format.
(c)	Each lobbyist shall file an amended registration form with the Secretary of State no later than 10 business days after any change in the information supplied in the lobbyist's last registration under subsection (b). Each 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, Constitutional officers of the State, the head of each principal department of the Executive Branch, and the State Legislative Library a list of all persons who have registered as lobbyists and whom they represent. A supplemental list of lobbyists shall be furnished periodically each 20 days while the General Assembly is in session, and every 60 days thereafter. For each special session of the General Assembly, a supplemental list of lobbyists shall be furnished to the State Legislative Library. All lists required by this section may be furnished electronically.
(e)	Each registration statement of a lobbyist required under this Article shall be effective from the date of filing until January 1 of the following year. The lobbyist shall file a new registration statement after that date, and the applicable fee shall be due and payable.
"§ 120‑47.3.  Registration fee.
A fee of one hundred dollars ($100.00) is due and payable to the Secretary of State by either the lobbyist or the lobbyist's principal at the time of each lobbyist registration. Fees so collected shall be deposited in the General Fund of the State. The Secretary of State shall allow fees required under this section to be paid electronically but may not require the fees to be paid electronically. The Secretary of State shall adopt rules providing for the waiver or reduction of the fees required by this section in cases of hardship. 
"§ 120‑47.4.  Authorization from lobbyist's principal; fee from principal.
(a)	Each lobbyist or lobbyist's principal shall file with the Secretary of State within 10 business days after the lobbyist's registration a written authorization signed by the lobbyist's principal authorizing the lobbyist to represent the principal.
(b)	The form of the authorization shall be prescribed by the Secretary of State and shall include the lobbyist's principal's full name, complete address and telephone number, name and title of the official signing for the lobbyist's principal, and the name of each lobbyist registered to represent the lobbyist's principal. The Secretary of State shall make available as soon as practicable the authorization of the lobbyists' principals in an electronic, searchable format.
(c)	An amended authorization shall be filed with the Secretary of State no later than 10 days after any change in the information supplied for the lobbyist's principal on the previous authorization. Each supplementary authorization shall include a complete statement of the information that has changed.
(d)	Except as provided for in subsection (e) of this section, a fee of one hundred dollars ($100.00) is due and payable to the Secretary of State at the time the lobbyist's principal's first authorization statement is filed each calendar year for a lobbyist.. 
(e)	The Secretary of State shall adopt rules providing for the waiver or reduction of the fees required by subsection (d) of this section. The rules shall provide that the fees be reduced to a total of twenty‑five dollars ($25.00) if the lobbyist's principal had annual revenues in its most recent fiscal year of three hundred thousand dollars ($300,000) or less and is represented by no more than two different lobbyists. 
"§ 120‑47.5.  Contingency lobbying fees and election influence prohibited.
(a)	No person shall act as a lobbyist for compensation that is dependent upon the result or outcome of any legislative action.
(b)	No person shall attempt to influence the action of any covered person by the promise of financial support of the covered person's candidacy, or by threat of financial support in opposition to the covered person's candidacy in any future election. 
"§ 120‑47.5A.  Certain gifts by lobbyists and lobbyist's principals prohibited; exemptions.
(a)	No lobbyist or lobbyist's principal may give a gift to a covered person.
(a1)	Subsection (a) of this section shall not apply to:
						
(1)	Meals and beverages for immediate consumption in connection with public events.
(2)	Nonmonetary items, other than food or beverages, with a value not to exceed ten dollars ($10.00) provided by a single donor during a single calendar day.
(3)	Informational materials relevant to the duties of the covered person.
(4)	Reasonable actual expenses for food, registration, travel, and lodging of the covered person for a meeting at which the covered person participates in a panel or speaking engagement at the meeting related to the public servant's duties and when expenses are incurred on the actual day of participation in the engagement or incurred within a 24‑hour time period before or after the engagement.
(5)	Items or services received in connection with a state, national, or regional organization in which the covered person or the covered person's agency is a member.
(6)	Items and services received relating to an educational conference or meeting.
(7)	A plaque or similar nonmonetary memento recognizing individual services in a field or specialty or to a charitable cause.
(8)	Gifts accepted on behalf of the State.
(9)	Anything generally available or distributed to the general public or all other State employees.
(10)	Anything for which fair market value is paid.
(11)	Commercially available loans made on terms not more favorable than generally available to the public in the normal course of business if not made for the purpose of lobbying.
(12)	Contractual arrangements or business relationships or arrangements made in the normal course of business if not made for the purpose of lobbying.
(13)	Academic scholarships made on terms not more favorable than scholarships generally available to the public.
(14)	Political contributions properly received and reported as required under Article 22A of Chapter 163 of the General Statutes.
(15)	Gifts from the covered person's extended family, or a member of the same household of the covered person, or gifts received in conjunction with a marriage, birth, adoption, or death.
(16)	Things of monetary value given to a executive branch officer valued in excess of ten dollars ($10.00) where the thing of monetary value is entertainment or related expenses associated with the public business of industry recruitment, promotion of international trade, or the promotion of travel and tourism, and the executive branch officer is responsible for conducting the business on behalf of the State, provided all the following conditions apply:
a.	The executive branch officer did not solicit the thing of value, and the executive branch officer did not accept the thing of value in the performance of the executive branch officer's official duties.
b.	The executive branch officer reports electronically to the Commission within 30 days of receipt of the thing of value. The report shall include a description and value of the thing of value and a description how the thing of value contributed to the public business of industry recruitment, promotion of international trade, or the promotion of travel and tourism. This report shall be posted to the Commission's public Web site.
c.	A tangible thing of value in excess of ten dollars ($10.00), other than meals or beverages, shall be turned over as State property to the Department of Commerce within 30 days of receipt.
(17)	Things of monetary value of personal property valued at less than one hundred dollars ($100.00) given to an executive branch officer in the commission of the executive branch officer's official duties if the gift is given to the executive branch officer as a personal gift in another country as part of an overseas trade mission, and the giving and receiving of such personal gifts is considered a customary protocol in the other country.
(b)	For purposes of G.S. 120‑47.6 and G.S. 120‑47.7, all expenditures made for the purpose of lobbying shall be reported, including the following:
(1)	Expenditures benefiting or made on behalf of a covered person, or those persons' immediate family members, in the regular course of that person's employment.
(2)	Contractual arrangements or direct business relationships between a lobbyist or lobbyist's principal and a covered person, or that person's immediate family member, in effect during the reporting period or the previous 12 months.
(3)	Expenditures reimbursed to a lobbyist in the ordinary course of business by the lobbyist's principal or other employer. Expenditures reimbursed by the lobbyist's principal or other employer are reported only by the lobbyist.
(4)	Expenditures for items exempted by subsection (a1) of this section.
	
(d)	The offering or giving of a gift in compliance with this Article without corrupt intent shall not constitute a violation of G.S. 14‑217 or G.S. 14‑218.
"§ 120‑47.6.  Statements of lobbyist's lobbying expenditures required.
(a)	Each lobbyist shall file quarterly expenditure reports under oath with the Secretary of State, in a manner prescribed by the Secretary of State, which may include electronic reports, with respect to each lobbyist's principal. The expenditure report shall include all expenditures during the reporting period and shall be due 10 business days after the end of the reporting period. The lobbyist shall file expenditure reports whether or not expenditures are made.
(a1)	In addition to the reports required by subsection (a) of this section, each lobbyist incurring expenditures with respect to lobbying legislators and legislative employees shall file a monthly expenditure report while the General Assembly is in regular session. The monthly expenditure report shall contain information required by this section with respect to all lobbying of legislators and legislative employees, and is due within 10 business days of the end of the month. The information on the monthly expenditure report shall also be included in each quarterly report required by subsection (a) of this section.
(b)	Each expenditure report shall set forth the fair market value or face value if shown, date, a description of the expenditure, name and address of the payee, or beneficiary, and name of any covered person,  or that person's immediate family member benefiting from the expenditure. Such expenditures shall be reported using the following categories:
(1)	Transportation and lodging.
(2)	Entertainment, food, and beverages.
(3)	Meetings and events.
(4)	Gifts.
(5)	Other expenditures.
(6)	Solicitation of others to lobby, including if such expenditures are incurred in connection or in concert with other reportable expenditures.
(c)	All reports shall be in the form prescribed by the Secretary of State and shall be open to public inspection upon filing. When more than 15 covered persons benefit from an expenditure, no names of individuals need be reported provided that the report identifies the approximate number of covered persons benefiting and, with particularity, the basis for their selection, including the name of the legislative body, committee, caucus, or other group whose membership list is a matter of public record in accordance with G.S. 132‑1 or including a description of the group that clearly distinguishes its purpose or composition from the general membership of the General Assembly. The approximate number of immediate family members of covered persons who benefited from the expenditure shall be listed separately.
(d)	When a lobbyist fails to file an expenditure report as required in this section, the Secretary of State shall send a certified or registered letter advising the lobbyist of the delinquency and the penalties provided by law. Within 20 days of the receipt of the 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 in an amount equal to the late filing fee under G.S. 163‑278.34(a)(2).
(e)	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 expenditure report in one of the manners prescribed in this section shall result in revocation of any and all registrations of a legislative lobbyist under this Article. No lobbyist may register or reregister under this Article until the lobbyist has fully complied with this section.
(f)	Appeal of a decision by the Secretary of State under this section shall be in accordance with Article 3 of Chapter 150B of the General Statutes.
(g)	The Secretary of State may adopt rules to facilitate complete and timely disclosure of expenditures, including the format of reports and additional categories of information, and to protect the addresses of payees under protective order issued pursuant to Chapter 50B of the General Statutes or participating in the Address Confidentiality Program pursuant to Chapter 15C of the General Statutes. The Secretary of State shall not impose any penalties or late filing fees upon a lobbyist for subsequent failures to comply with the requirements of this section if the Secretary of State failed to provide the lobbyist with required notifications of the initial violation. This provision shall not apply to a failure by the lobbyist to file an expenditure report in a timely manner.
"§ 120‑47.7.  Statements of lobbyist's principal lobbying expenditures required.
(a)	Each lobbyist's principal shall file quarterly expenditure reports under oath with the Secretary of State, in a manner prescribed by the Secretary of State, which may include electronic reports. The expenditure report shall include all expenditures during the reporting period and shall be due 10 business days after the end of the reporting period. The lobbyist's principal shall file the expenditure reports whether or not expenditures are made during a reporting period.
(a1)	In addition to the reports required by subsection (a) of this section, each lobbyist's principal incurring expenditures with respect to lobbying legislators and legislative employees shall file a monthly expenditure report while the General Assembly is in regular session. The monthly expenditure report shall contain information required by this section with respect to all lobbying of legislators and legislative employees, and is due within 10 business days of the end of the month. The information on the monthly expenditure report shall also be included in each quarterly report required by subsection (a) of this section.(b)	Each expenditure report shall set forth the fair market value or face value if shown, date, a description of the expenditure, name and address of the payee, or beneficiary, and name of any covered person,  or that person's immediate family member affected by the expenditure. Such expenditures shall be reported using the following categories:
(1)	Transportation and lodging.
(2)	Entertainment, food, and beverages.
(3)	Meetings and events.
(4)	Gifts.
(5)	Other expenditures.
(6)	Solicitation of others to lobby, including if such expenditures are incurred in connection or in concert with other expenditures reportable under this Article.
(7)	Compensation paid to all lobbyists during the reporting period. If a legislative lobbyist is a full‑time employee of the lobbyist's principal, or is compensated by means of an annual fee or retainer, the lobbyist's principal shall estimate and report the portion of the salary, fee, or retainer that compensates for lobbying.
(8)	Expenditures reimbursed or paid to lobbyists for lobbying that are not reported on the lobbyist's report, with an itemized description of those expenditures.
 (c)	All reports shall be in the form prescribed by the Secretary of State and open to public inspection upon filing. When more than 15 covered persons benefit from an expenditure, no names of individuals need be reported provided that the report identifies the approximate number of covered persons benefiting and, with particularity, the basis for their selection, including the name of the legislative body, committee, caucus, or other group whose membership list is a matter of public record in accordance with G.S. 132‑1 or including a description of the group that clearly distinguishes its purpose or composition from the general membership of the General Assembly. The approximate number of immediate family members of covered persons who benefited from the expenditure shall be listed separately.
(d)	When a lobbyist's principal fails to file an expenditure report as required in this section, the Secretary of State shall send a certified or registered letter advising the lobbyist's principal of the delinquency and the penalties provided by law. Within 20 days of the receipt of the 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 in an amount equal to the late filing fee under G.S. 163‑278.34(a)(2).
(e)	Filing of the required report and payment of the late fee within the time extended shall constitute compliance with this section. Failure to file an expenditure report in one of the manners prescribed in this section shall result in revocation of any and all registrations of a lobbyist's principal under this Article. No lobbyist's principal may register or reregister under this Article until the lobbyist's principal has fully complied with this section.
(f)	Appeal of a decision by the Secretary of State under this section shall be in accordance with Article 3 of Chapter 150B of the General Statutes.
(g)	The Secretary of State may adopt rules to facilitate complete and timely disclosure of expenditures, including the format of reports and additional categories of information, and to protect the addresses of payees under protective order issued pursuant to Chapter 50B of the General Statutes or participating in the Address Confidentiality Program pursuant to Chapter 15C of the General Statutes. The Secretary of State shall not impose any penalties or late filing fees upon a principal for subsequent failures to comply with the requirements of this section if the Secretary of State failed to provide to the lobbyist's principal with required notifications of the initial violation. This provision shall not apply to a failure by the principal to file an expenditure report in a timely manner.
"§ 120‑47.7A.  Reserved for future codification purposes.
"§ 120‑47.7B.  Powers and duties of the Secretary of State.
(a)	The Secretary of State shall perform systematic reviews of reports required to be filed under G.S. 120‑47.6 and G.S. 120‑47.7 on a regular basis to assure complete and timely disclosure of allowable expenditures.
(b)	The Secretary of State may petition the Superior Court of Wake County for the approval to issue subpoenas and subpoenas duces tecum as necessary to conduct investigations of violations of this Article. The court shall authorize subpoenas under this subsection when the court determines they are necessary for the enforcement of this Article. Subpoenas issued pursuant to this subsection shall be enforceable by the court through contempt powers. Venue shall be with the Superior Court of Wake County for any nonresident person, or that person's agent, who makes a reportable expenditure under this Article, and personal jurisdiction may be asserted under G.S. 1‑75.4.
(c)	Complaints of violations of this Article and all other records accumulated in conjunction with the investigation of these complaints shall be considered records of criminal investigations under G.S. 132‑1.4."§ 120‑47.7C.  Prohibitions.
(a)	No member or former member of the General Assembly may be employed as a lobbyist by a lobbyist's principal to lobby as defined in this Article within one year after the end of that member's service in the General Assembly.
(b)	No person serving as a Constitutional officer of the State or as a head of a principal State department listed in G.S. 143B‑6 may be employed as a lobbyist by a lobbyist's principal to lobby as defined in this Article within one year after separation from employment or leaving office.
(c)	No individual registered as a lobbyist shall serve as a campaign treasurer as defined in G.S. 163‑278.6(19) for a campaign for election as a member of the GeneralAssembly or a Constitutional officer of the State.
(d)	A lobbyist shall not be eligible for appointment by a State official to any body created under the laws of this State that has regulatory authority over the activities of a person that the lobbyist currently represents or has represented within 60 days after the expiration of the lobbyist's registration representing that person. Nothing herein shall be construed to prohibit appointment by any unit of local government.
(e)	No lobbyist or another acting on the lobbyist's behalf shall permit a covered person or that person's immediate family member, to use the cash or credit of the lobbyist for the purpose of lobbying unless the lobbyist is in attendance at the time of the expenditure.
"§ 120‑47.8.  Persons exempted from provisions of Article.
Except as otherwise provided in this Article, the provisions of this Article shall not be construed to apply to any of the following lobbying activities:
(1)	An individual solely engaged in expressing a personal opinion or stating facts or recommendations on legislative matters to members of the General Assembly and not acting as a legislative lobbyist.
(2)	A person appearing before a committee, commission, board, council, or other collective body whose membership includes one or more covered persons at the invitation or request of the committee or a member thereof and who engages in no further activities as a legislative lobbyist.
(3)	a.	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 the office and public duties.
b.	Notwithstanding the persons exempted in this Article, the Constitutional officers of the State and all appointed heads of State departments, agencies and institutions, shall designate all authorized official liaison personnel and shall file and maintain current lists of designated liaison personnel with the Secretary of State.
(4)	A person performing professional services in drafting bills, or in advising and rendering opinions to clients, or to covered persons on behalf of clients, as to the construction and effect of proposed or pending legislative or executive action where the professional services are not otherwise connected with the legislative or executive 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 the news medium.
(6)	Repealed by Session Laws 1991, c. 740, s. 1.1.
(7)	Covered persons while acting in their official capacity.
(8)	A person responding to inquiries from a covered person and who engages in no further activities as a lobbyist in connection with that or any other legislative or executive action.
(9)	An individual while participating in an advocacy day.
(10)	A person appearing before an executive branch agency or department on behalf of another person, on an individual application for a license or permit, or a disciplinary action on a license or permit.
(11)	A person appearing before an executive branch officer on behalf of another person with respect to a proposed sale or lease of real property, goods or services to the State, or construction of property by the State.
(12)	A person appearing before an executive branch agency or department or an executive branch officer on behalf of another person or entity in connection with an application for a grant, loan, determination or eligibility, or certification.
"§ 120‑47.8A.  Expenditures made by persons exempted or not covered by this Article.
(a)	If a covered person accepts an expenditure made for the purpose of lobbying valued over two hundred dollars ($200.00) from a person or group of persons acting together, exempted or not otherwise covered by this Article, the person, or group of persons, making the expenditure shall report the date, a description of the expenditure, the name and address of the person, or group of persons, making the expenditure, the name of the covered person accepting the expenditure, and the estimated fair market value of the expenditure.
(b)	If the person making the expenditure in subsection (a) of this section is outside North Carolina, and the covered person accepting the expenditure is also outside North Carolina at the time the person accepts the expenditure, then the person accepting the expenditure shall be responsible for filing the report using available information.
(c)	If a covered person accepts a scholarship valued over two hundred dollars ($200.00) from a person, or group of persons, acting together, exempted or not covered by this Article, the person, or group of persons, granting the scholarship shall report the date of the scholarship, a description of the event involved, the name and address of the person, or group of persons, granting the scholarship, the name of the covered person accepting the scholarship, and the estimated fair market value.
(d)	If the person granting the scholarship in subsection (c) of this section is outside North Carolina, the covered person accepting the scholarship shall be responsible for filing the report.
(e)	This section shall not apply to any of the following:
(1)	Lawful campaign  contributions properly received and reported as required under Article 22A of Chapter 163 of the General Statutes.
(2)	Any gift from an extended family member to a covered person. (3)	Gifts associated primarily with the covered person's or that person's immediate family member's employment.
(4)	Gifts, other than food, beverages, travel, and lodging, which are received from a person who is a citizen of a country other than the United States or a state other than North Carolina and given during a ceremonial presentation or as a custom.
(5)	A thing of value that is paid for by the State.
(f)	Reports required by this section shall be filed within 10 business days after the end of the quarter in which the expenditure was made, with the Secretary of State in a manner prescribed by the Secretary of State, which may include electronic reports. 
"§ 120‑47.8B.  Advocacy Day.
(a)	No lobbyist's principal may conduct more than one advocacy day per calendar year.
(b)	All advocacy days to lobby the General Assembly must be scheduled through the Legislative Services Office. 
(c)	All advocacy days to lobby executive branch officers must be scheduled through the Governor's Office. 
(d)	All lobbyists' principals conducting an advocacy day shall comply with this Article while conducting the advocacy day.
"§ 120‑47.9.  Punishment for violation.
(a)	Whoever willfully violates any provision of this Article shall be guilty of a Class 1 misdemeanor. 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 conviction.
(b)	In addition to the criminal penalties set forth in this section, the Secretary of State may levy civil fines for willful false or incomplete reporting up to five thousand dollars ($5,000) per violation.
"§ 120‑47.10.  Enforcement of Article by Attorney General.
(a)	The Secretary of State may investigate complaints of violations of this Article, and shall report apparent violations of this Article to the Attorney General. The Attorney General shall, upon complaint, make an appropriate investigation thereof, and the Attorney General 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.
(b)	Complaints of violations of this Article involving the Secretary of State or any member of the Department of the Secretary of State shall be referred to the Attorney General for investigation in accordance with G.S. 120‑47.7B. Any portion of the complaint not involving alleged violations of this Article by the Secretary of State or any member of the Department of the Secretary of State shall remain with the Secretary of State for investigation. The Attorney General shall, upon receipt of a complaint, make an appropriate investigation thereof, and the Attorney General 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.
(c)	Complaints of improper lobbying involving the Attorney General or any member of the Department of Justice shall be investigated by the Secretary of State and any  apparent violations reported to the District Attorney of that prosecutorial district as defined in G.S. 7A‑60 of which Wake County is a part. The District Attorney of that prosecutorial district shall, upon receipt of the Secretary of State's report, prosecute any person who violates any provisions of this Article.
"§ 120‑47.11.  Rules and forms.
(a)	The Secretary of State shall adopt any rules, orders, forms, and definitions as are necessary to carry out the provisions of this Article. The Secretary of State may appoint a council to advise the Secretary in adopting rules under this section.
(b)	The Secretary of State shall adopt rules to protect from disclosure all confidential information under Chapter 132 related to economic development initiatives or to industrial or business recruitment activities. The information shall remain confidential until the State, a unit of local government or the business has announced a commitment by the business to expand or locate a specific project in this State or a final decision not to do so and the business has communicated that commitment or decision to the State or local government agency involved with the project.
"§ 120‑47.12.  Limitations on agency liaison personnel.
(a)	No State department may use State funds to contract with persons who are not employed by the State to lobby the General Assembly.
(b)	No more than two persons in each State department and constituent institution of The University of North Carolina may be registered to lobby the General Assembly or designated as liaison personnel pursuant to this Article.
(c)	All persons designated as liaison personnel pursuant to this Article and the State department or constituent institution of The University of North Carolina that employs the liaison personnel shall report all expenditures made for lobbying purposes in the same manner as required for lobbyists under G.S. 120‑47.6 and lobbyists' principals under G.S. 120‑47.7. The registration and authorization fees required under G.S. 120‑47.3 and G.S. 120‑47.4 shall not apply to liaison personnel or the State department or constituent institution that employs the liaison personnel."
"§ 120‑47.13.  Advisory opinions.
(a)	At the request of any person affected by this Article, the Secretary of State shall render advisory opinions on specific questions involving the meaning and application of this Article and the covered person's compliance therewith. The request shall be in writing and relate prospectively to real or reasonably anticipated fact settings or circumstances. The Secretary of State shall issue advisory opinions having prospective application only. Reliance upon a requested written advisory opinion on a specific matter shall immunize the covered person, on that matter, from both of the following:
(1)	Investigation by the Secretary of State.
(2)	Any adverse action by the employing entity.
(b)	Staff to the Secretary of State may issue advisory opinions under rules adopted by the Secretary of State.
(c)	The Secretary of State shall interpret the provisions of this Article by rules, and these interpretations shall be binding on all covered persons, lobbyists, and lobbyists' principal upon publication.
(d)	The Secretary of State shall publish its advisory opinions at least once a year, edited as necessary to protect the identities of the individuals requesting opinions.
(e)	Except as provided under subsection (d) of this section, requests for advisory opinions and advisory opinions issued pursuant to this section are confidential and not matters of public record.
"§ 120A‑14.  Lobbying education program.
(a)	The Secretary of State shall develop and implement a lobbying education and awareness program designed to instill in all covered persons, lobbyists, and lobbyists' principals a keen and continuing awareness of their obligations and a sensitivity to situations that might result in real or potential violation of this Article or other related laws. The Secretary shall make basic lobbying education and awareness presentations to all covered persons upon their election, appointment or hiring and shall offer periodic refresher presentations as the Secretary deems appropriate. Every covered person shall participate in a lobbying presentation approved by the Secretary within six months of the person's election, appointment or hiring, and shall attend refresher ethics education presentations at least every two years thereafter in a manner the Secretary deems appropriate. Upon request, the Secretary shall assist each agency in developing in‑house education programs and procedures necessary or desirable to meet the agency's particular needs for lobbying education.
(b)	The Secretary shall publish a newsletter containing summaries of the Secretary's opinions, policies, procedures, and interpretive bulletins as issued from time to time. The newsletter shall be distributed to all covered persons, lobbyists, and lobbyists' principals. Publication under this subsection may be done electronically.
(c)	The Secretary shall assemble and maintain a collection of relevant State laws, rules, and regulations that set forth lobbying standards applicable to covered persons. The collection of laws, rules and regulations shall be made available electronically as resource material to covered persons, lobbyists and lobbyists' principals, upon request.
"§ 120‑15.  No gift registry.
(a)	The Secretary of State shall establish a "No Gifts" registry for persons subject to this Article. The "No Gifts" registry shall be published and updated with the list of lobbyists and lobbyists' principals required under G.S. 120‑47.2.
(b)	Except as provided in this subsection, lobbyists and lobbyists' principals shall not give unsolicited gifts allowed under G.S. 120‑47.5A(a1)(2) to persons placing their names on the registry, without the persons' expressed consent. Gifts of informational directories may be given to persons placing their names on the registry.
(c)	The Secretary shall have the authority to adopt rules to implement this section in compliance with the following criteria:
(1)	The registration is valid from the time the person registers until January 1 of the following year, unless the person requests in writing the removal of that person's name.
(2)	The registration shall be in writing.
(d)	Violations of this section shall not constitute a crime but shall be subject to civil fines of up to five hundred dollars ($500.00) as levied by the Secretary of State."
SECTION 4.  Sections 2 and 3 of S.L. 2005‑456 are repealed.
SECTION 5.1.  G.S. 163‑278.6 is amended by adding a new subsection to read:
"§ 163‑278.6.  Definitions.
When used in this Article:
...
(5a)	The term 'Constitutional officers of the State' means officers whose offices are established in Article III of the Constitution.
..."
SECTION 5.2.  Article 22A of Chapter 163 of the General Statutes is amended by adding a new section G.S. 163‑278.19A to read:
"§ 163‑278.13C.  Limitation on contributions by registered lobbyists.
(a)	No lobbyist registered under Article 9A of Chapter 120 shall do any of the following:
(1)	Make or offer to make a contribution to a legislator, executive branch official, or candidate campaign committee.
(2)	Make a contribution to any candidate, officeholder, or political committee, directing or requesting that the contribution be made in turn to a legislator, executive branch official, or candidate campaign committee.
(3)	Transfer any amount of money or anything of value to any entity, directing or requesting that the entity use what was transferred to contribute to a legislator, executive branch officer, or candidate campaign committee.
(4)	Solicit a contribution from any individual, political committee, or other entity on behalf of a legislator, executive branch official, or candidate campaign committee. This subdivision does not apply to a registered lobbyist soliciting a contribution on behalf of a political party executive committee if the solicitation is solely for a separate segregated fund kept by the political party limited to use for activities that are not candidate‑specific, including generic voter registration and get‑out‑the‑vote efforts, pollings, mailings, and other general activities and advertising that do not refer to a specific individual candidate.
(b)	No legislator, executive branch official, or candidate campaign committee or the real or purported agent of that legislator, executive branch official, or candidate campaign committee shall do any of the following:
(1)	Solicit a contribution from a lobbyist registered under Article 9A of Chapter 120 of the General Statutes.
(2)	Solicit a third party, requesting or directing that the third party directly or indirectly solicit a contribution from a lobbyist registered under Article 9A of Chapter 120 of the General Statutes or relay to the lobbyist registered under Article 9A of Chapter 120 of the General Statutes the legislator's, executive branch official's, or candidate campaign committee's solicitation of a contribution.
(3)	Accept a contribution from a lobbyist registered under Article 9A of Chapter 120 of the General Statutes.
(c)	It shall not be deemed a violation of this section for a legislator or executive branch official to serve on a board or committee of an organization that makes a solicitation of a lobbyist registered under Article 9A of Chapter 120 of the General Statutes as long as that legislator or executive branch official does not directly participate in the solicitation and that legislator or executive branch official does not directly benefit from the solicitation.
(d)	As used in this section, the following terms mean:
(1)	Candidate campaign committee. – As defined in G.S. 163‑278.38Z and that candidate has filed a notice of candidacy for office as a member of the General Assembly or a Constitutional officer of the State.
(2)	Executive branch official. – As defined in G.S. 120‑47.1(1d)(a).
(3)	Legislator. – As defined in G.S. 120‑47.1(4d).
(e)	A violation of this section is a Class 2 misdemeanor. 
SECTION 5.3.  G.S. 163‑278.13B(a)(1) reads as rewritten:
"(1)	"Limited contributor" means a lobbyist's principal as defined in G.S. 120‑47 or a political committee that employs or contracts with or whose parent entity employs or contracts with a lobbyist registered pursuant to Article 9A of Chapter 120 of the General Statutes."
SECTION 6.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part so declared to be unconstitutional or invalid.
SECTION 7.  Sections 1, 2, 6, and 7 of this act are effective when the act becomes law, and the new G.S. 120‑47.7C(d) applies to appointments made on or after that date. The remainder of this act becomes effective January 1, 2007.