Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) The following payments from a client to a
lobbying firm shall be considered payments for lobbying services:
(1) Payments for services related to a matter
on which the client expressly or implicitly authorizes the lobbying firm to
communicate directly with an elected state official, legislative official or
agency official for the purpose of influencing legislative or administrative
action.
(2) Payments for
legislative-related services only if, within one year after the services are
provided, the client, either directly or through an affiliated entity,
expressly or implicitly authorizes the lobbying firm to communicate directly
with an elected state official, legislative official or agency official for the
purpose of influencing legislative or administrative action on the same or
substantially the same matter.
(3)
Payments for research or preparation of a proposed initiative measure only if,
within one year after the initiative-related services are provided, the client,
either directly or through an affiliated entity, expressly or implicitly
authorizes the lobbying firm to communicate directly with an elected state
official, legislative official or agency official for the purpose of
influencing legislative or administrative action on the same or substantially
the same matter. However, such payments need not be reported if they are
required to be disclosed, and are in fact disclosed pursuant to Chapter 4
(commencing with Section 84100) of Title 9 of the Government
Code.
(b) The following
payments from a client to a lobbying firm shall not be considered payments for
lobbying services:
(1) Payments for
litigation.
(2) Payments for
legislative-related or initiative-related services performed by a lobbying firm
for a client which are not reportable pursuant to subsections (a)(2) or (a)(3).
However, payments for legislative-related services shall be reported by the
client as "other payments to influence legislative or administrative action"
pursuant to Government Code Section
86116(i)
if either of the following applies:
(A) At
the time the payment is made, the client is required to be registered on the
lobbying firm's registration statement.
(B) Within one year after the services are
provided, the client, either directly or through an affiliated entity,
expressly or implicitly authorizes another lobbying firm or a lobbyist employed
by the client to communicate directly with an elected state official,
legislative official or agency official for the purpose of influencing
legislative or administrative action on the same or substantially the same
matter.
(c) The
following definitions apply to this section:
(1) "Legislative-related services" includes
researching, monitoring, analyzing or drafting statutes, regulations or pending
or proposed legislative or administrative action, providing advice or
recommending strategy concerning pending or proposed legislative or
administrative action, and similar services in the absence of express or
implied authorization to engage in direct communication.
(2) "Direct communication" means appearing as
a witness before, talking to (either by telephone or in person), corresponding
with, or answering questions or inquiries from, any elected state official,
legislative official or agency official, either personally or through an agent
who acts under one's direct supervision, control or direction.
(3) "Affiliated entity" includes, but is not
limited to, an organization which has a parent or subsidiary relationship to
the client, an organization that is primarily funded or managed by the client
or the parent entity of the client, or an organization of which the client is a
member.
(d) When a
payment for initiative-related or legislative-related services made to a
lobbying firm in a previous reporting period must be reported retroactively
pursuant to this section, the payment shall be reported on the report for the
then current calendar quarter and the lobbying firm and lobbyist employer shall
indicate the calendar quarter in which the payment was made or received. If the
payment was previously reported in the current calendar year as "other payments
to influence legislative or administrative action," the lobbyist employer shall
indicate on the report for the then current calendar quarter that the amount
has been deducted from "other payments to influence legislative or
administrative action" and instead reported as a payment to a lobbying firm.
For purposes of subsections (a)(2) and (a)(3), the lobbying firm and lobbyist
employer shall indicate, in addition to the information required by 2 Cal. Code
Regs. Sections
18613(a) and
18616(b), that the
payment was for initiative-related or legislative-related services and the date
upon which the person making the payment or the affiliated entity authorized
the lobbying firm to engage in direct communication.
(e) This section shall not be construed to
require any entity to report payments it receives for services prior to the
calendar quarter in which the entity qualifies as a lobbying firm.
1. New section
filed 8-25-88; operative 9-24-88 (Register 88, No. 36). For prior history, see
Register 86, No. 38.
Note: Authority cited: Section
83112,
Government Code. Reference: Sections
86114 and
86116,
Government Code.
