Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Pursuant to Government Code section
86110,
lobbyist employers shall maintain a journal, ledger or other record of payments
in the following categories:
(1) Payments to
lobbying firms;
(2) Payments to
lobbyists;
(3) Activity
expenses;
(4) Other payments to
influence legislative or administrative action. This includes payments for or
in connection with:
(A) Support or assistance
of lobbyists;
(B) Direct
communication with a legislative, agency or elective state official for the
primary purpose of influencing legislative or administrative action;
and
(C) Soliciting or urging
persons other than the lobbyist employer's employees to enter into direct
communication with a legislative, agency or elective state official for the
primary purpose of influencing legislative or administrative
action.
(5) Contributions
to elected state officers, state candidates and committees controlled by or
primarily formed to support such officers or candidates;
(b) The lobbyist employer shall keep records
using one of the following methods:
(1)
Maintaining records of payments in connection with lobbying separate from
records of activities which are not described in subdivision (a); or
(2) Using any system with records maintained
in accordance with accepted accounting principles.
(c) Records of payments by the lobbyist
employer shall include:
(1) All payments in
connection with lobbying activities made to or on behalf of a lobbying firm,
including but not limited to fees, retainers and reimbursement of expenses. To
the extent that payments to a lobbying firm are only partially in connection
with lobbying activities, the lobbyist employer or person may keep records of
payments made for lobbying separate from payments made in connection with
non-lobbying activities. The following must be included for each payment:
(A) The full name of the payee;
(B) If the payee is a person other than the
lobbying firm, the full name of both the payee and the lobbying firm;
(C) The date and amount of the payment;
and
(D) The calendar quarter during
which the services paid for were rendered.
(2) All direct or indirect payments, such as
salaries, fees and reimbursement of expenses, advances or other payments made
to a lobbyist. Salary includes gross wages paid, plus any fringe benefits which
are in lieu of wages such as the granting of stock options or purchase of
annuities, but does not include routine fringe benefits such as contributions
to a health plan, retirement plan or payroll taxes. To the extent payments made
to a lobbyist are only partially in connection with activities as a lobbyist,
the lobbyist employer may apportion the payments based on the percentage of the
lobbyist's compensated time which is spent influencing or attempting to
influence legislative or administrative action. The following must be included
for each payment:
(A) The full name of the
payee; and
(B) The date and amount
of the payment.
(3) All
activity expenses incurred or paid by the lobbyist employer, other than those
activity expenses incurred by a lobbyist which shall be recorded as
reimbursements to the lobbyist or "other payments to influence legislative or
administrative action" under the provisions of subdivision (c)(4), as
appropriate. The following must be included for each activity expense:
(A) The full name of the payee;
(B) The full name and official position of
each elective state official, legislative official, agency official, state
candidate or member of the immediate family of one of those individuals who was
a beneficiary;
(C) The total number
of all beneficiaries;
(D) A
description of the goods or services or other consideration for which the
payment was made or incurred;
(E)
The date and total amount of the expenditure; and
(F) The amount of the payment attributable to
each beneficiary.
(4) All
other payments to influence legislative or administrative action, including:
(A) The full name, title and proportionate
share of compensation paid to each employee, other than a lobbyist, who is
engaged for 10 percent or more of the employee's compensated time in a calendar
month in or in connection with any of the activities described in subdivision
(a). Such employees include those providing research services and those
preparing materials to be used by a lobbyist or to be used in direct
communication or in soliciting or urging others to engage in direct
communication for the primary purpose of influencing legislative or
administrative action. Compensation includes gross wages paid plus any benefits
which are in lieu of wages such as the granting of stock options or the
purchase of annuities. It does not include, however, routine fringe benefits,
such as contributions to health plans, retirement plans, etc., which are made
on behalf of all employees nor does it include the payment of payroll
taxes.
(B) The payment by the
lobbyist employer of expenses incurred by a lobbyist;
(C) The payment of expenses incurred by the
lobbyist employer for goods or services used by a lobbyist or used to support
or assist a lobbyist in connection with activities as a lobbyist;
(D) For state and local government agencies
that file reports pursuant to Government Code sections
86115 and
86116, the
payment of dues or similar payments made to any organization, including a
federation, confederation, or trade, labor, or membership organization, that
makes expenditures equal to 10 percent of its total expenditures, or fifteen
thousand dollars ($15,000) or more, during any calendar quarter, to influence
legislative or administrative action;
(E) The payment of any other expense which
would not have been incurred but for the lobbyist employer's activities to
influence or attempt to influence legislative or administrative action, i.e.,
those activities described in subdivision (a), including, but not limited to,
office overhead and operating expenses, payments to expert witnesses and
expenses incurred by employees other than a lobbyist.
(F) For filers reporting payments in
connection with ratemaking or quasi-legislative proceedings before the
California Public Utilities Commission as specified in Government Code section
86116(h)(2),
the full name, title, and compensation paid to each attorney for time spent
appearing as counsel or preparing to appear as counsel in those proceedings;
and the full name, title and compensation paid to each witness for time spent
testifying or preparing to testify at those proceedings.
(G) Detailed records for subdivisions
(c)(4)(B) through (F) must include:
1. The
full name of the payee;
2. The date
and amount of the payment; and
3. A
description of the goods or services or other consideration for which the
payment was made.
(5) All monetary and non-monetary
contributions of $25 or more made by the lobbyist employer to an elected state
officer, a state candidate or committees controlled by or primarily formed to
support such officers or candidates. Cancelled checks or legible images of
cancelled checks, or other bank records shall support the monetary
contributions. All of the following must be included for each monetary and
non-monetary contribution:
(A) The full name
of the payee;
(B) The full name of
the recipient of the contribution if other than the payee;
(C) In the case of a non-monetary
contribution, a description of the goods or services or other consideration
provided; and
(D) The date and
amount of the payment. If the lobbyist employer or a committee sponsored by the
lobbyist employer keeps records and files campaign statements with the
Secretary of State pursuant to Chapter 4 of the Political Reform Act, no
records are required by this paragraph.
(6) No records shall be required for payments
which are not reportable pursuant to 2 Cal. Code Regs. section
18616(g)(1), (2), (3) and
(4).
(d) A lobbyist employer shall maintain source
documents to substantiate the information required by subdivision (c)
including:
(1) Bank and credit card records
evidencing payment or receipt, such as cancelled checks or legible images of
cancelled checks, credit card statements and credit card receipts, and
transfers received;
(2) Records of
goods or services received or provided, such as receipts, invoices, contracts,
and agreements;
(3) Correspondence
and communications substantiating the receipts or disbursements; and
(4) Invitations to lobbyist employer
sponsored events, and rosters of attendees.
(e) If a lobbyist employer is unable to
obtain a source document to substantiate an activity expense, the lobbyist
employer shall prepare a written dated voucher, or annotated receipt or invoice
documenting the required information as soon as practicable after the activity
expense is made.
(f) All records
which must be kept by virtue of this regulation shall be maintained for a
period of five years from the date of the filer's final report for the calendar
year for which the activities were reported pursuant to Government Code section
86116.
1. New section
filed 8-1-75 as an emergency; operative 8-1-75. Certificate of Compliance
included (Register 75, No. 31).
2. Repealer of subsections (a) (1)
(B) 3, (b) (1) (C) and (b) (1) (D) and new subsections (a) (1) (B) 3, (a) (1)
(B) 4 and (b) (1) (C) filed 8-20-76; operative 9-19-76 (Register 76, No.
34).
3. Amendment of subsections (a)-(d) and new subsections (e) and
(f) filed 10-13-78; operative 1-1-79 (Register 78, No. 41).
4. New
subsections (b), (c) and (e) filed 1-25-80; operative 2-24-80 (Register 80, No.
4).
5. Amendment of section heading and subsections (d) (2) filed
11-5-82; operative 11-5-82 (Register 82, No. 45).
6. Amendment of
subsections (a)-(c) filed 12-15-83; operative 1-14-84 (Register 83, No.
51).
7. Repealer and new section filed 5-28-86 as an emergency;
operative 5-28-86 (Register 86, No. 22). A Certificate of Compliance must be
transmitted to OAL within 120 days or emergency language will be repealed on
9-25-86.
8. Certificate of Compliance filed 9-15-86 (Register 86,
No. 38).
9. Editorial correction of History Note 5 (Register 95, No.
6).
10. New subsections (c)(1)(B) and (c)(4)(D), subsection
relettering, and amendment of subsections (c)(4)(A) and newly designated
subsections (c)(4)(F) and (c)(4)(G) filed 5-26-98; operative 5-26-98. Submitted
to OAL for printing only pursuant to Fair Political Practices Commission v.
Office of Administrative Law, Linda Stockdale Brewer, Sacramento Superior
Court, Case No. 51275 (1991) (Register 98, No. 22).
11. Amendment of
subsection (d) and NOTE filed 5-11-99; operative 5-11-99 pursuant to Government
Code section
11343.4(d)
(Register 99, No. 20).
12. Editorial correction of subsection
(c)(4)(G) (Register 2002, No. 22).
13. Amendment filed 6-17-2002;
operative 7-17-2002 (Register 2002, No. 25).
14. Amendment of
subsections (c)(2), (c)(4)(A) and (c)(4)(C) filed 5-12-2021; operative
6-11-2021 pursuant to Cal. Code Regs., tit. 2, section
18312(e).
Submitted to OAL for filing pursuant to Fair Political Practices Commission v.
Office of Administrative Law, 3 Civil C010924, California Court of Appeal,
Third Appellate District, nonpublished decision, April 27, 1992 (FPPC
regulations only subject to 1974 Administrative Procedure Act rulemaking
requirements and not subject to procedural or substantive review by OAL)
(Register 2021, No. 20).
15. Amendment of section heading and
section filed 12-13-2021; operative 1-12-2022 pursuant to Cal. Code Regs., tit.
2, section 18312(e).
Submitted to OAL for filing pursuant to Fair Political Practices Commission v.
Office of Administrative Law, 3 Civil C010924, California Court of Appeal,
Third Appellate District, nonpublished decision, April 27, 1992 (FPPC
regulations only subject to 1974 Administrative Procedure Act rulemaking
requirements and not subject to procedural or substantive review by OAL)
(Register 2021, No. 51).
Note: Authority cited: Section
83112,
Government Code. Reference: Sections
86110 and
91000.5,
Government Code.
