Current through Register 2024 Notice Reg. No. 12, March 22, 2024
(a) Payments to be Reported in General.
Persons filing periodic reports under Section
86116 must report 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, specifically, 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 filer or the filer'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 those officers or candidates.
(b) Payments to Lobbying Firms. Lobbyist
employers must disclose on their periodic reports the total amount of payments,
including reimbursement for expenses, made to each lobbying firm during the
period, and the name and address of the lobbying firm that received the
payments. If the payment to the lobbying firm was made through another person,
the lobbyist employer must report the name and address of both the payee and
the lobbying firm. The lobbyist employer must indicate on the report if the
payment was made for services provided in a previous calendar quarter. To the
extent that payments to a lobbying firm are only partially in connection with
lobbying activities, the lobbyist employer must report only that portion which
was made for lobbying activities.
(c) Payments to Lobbyists. Lobbyist employers
must disclose on their periodic reports the total amount of all direct and
indirect payments, such as salaries and reimbursement of expenses, made to
lobbyists during the filing period in consideration for or in connection with
their activities as lobbyists. A lobbyist's salary includes gross wages paid
plus any benefits that are in lieu of wages such as the granting of stock
options or the purchase of annuities. A lobbyist's salary does not include
routine fringe benefits that are made on behalf of all employees, such as the
employer's contribution to health or retirement plans, or similar benefits; nor
does it include the payment of the employer's payroll taxes. To the extent
payments made to a lobbyist are only partially in connection with activities as
a lobbyist, a filer may apportion the payments based on the percentage of the
lobbyist's compensated time that is spent influencing or attempting to
influence legislative or administrative action.
(d) Activity Expenses. All persons filing
reports under Section
86116 must disclose each activity
expense made or incurred during the period, regardless of whether it is paid
for during the period. An activity expense previously reported as incurred but
not paid need not be reported again when actual payment is made. When reporting
activity expenses, the filer must disclose: the full name and address of the
payee, the total amount of the expense, the amount attributable to each elected
state officer, legislative official, agency official, state candidate or member
of the immediate family of one of those persons who is the beneficiary of an
activity expense, each official's full name, title and agency, and a
description of the benefit. The filer must also report the total of all
activity expenses incurred during the period.
(e) Contributions.
(1) Except as provided in paragraph (2), all
persons filing periodic reports under Section
86116 must disclose all monetary
and non-monetary contributions totaling $100 or more made by the filer to state
candidates, elected state officers, and committees controlled by or primarily
formed to support those officers or candidates. For each reportable
contribution, the filer must disclose the date the contribution was made, the
candidate, officer, or committee receiving the contribution, and the amount of
the contribution.
(2)
Notwithstanding paragraph (1), if a filer has made contributions totaling $100
or more to an elected state officer, state candidate, or a committee controlled
by or primarily formed to support an elected state officer or state candidate,
and the filer or a committee sponsored by the filer has previously reported
those contributions in a campaign statement filed with the Secretary of State,
the filer may disclose only the name and identification number of its committee
on its periodic report in lieu of the information required by paragraph (1)
with respect to those contributions.
(f) Other Payments to Influence Legislative
or Administrative Action. All persons who file periodic reports under Section
86116 must report the total of all
other payments to influence legislative or administrative action made by the
filer during the reporting period, and effective July 1, 2016, must disclose
information regarding payments of $2,500 or more as provided below.
(1) The total amount reported must include
the following:
(A) Compensation of Employees
Other Than Lobbyists. This includes a proportionate share of the compensation
paid to employees other than lobbyists who are engaged for 10 percent or more
of their compensated time in a calendar month in or in connection with the
activities described in subdivision (a)(4) of this regulation. 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 that are in lieu of wages such as the granting of
stock options or the purchase of annuities. Compensation does not include
routine fringe benefits that are made on behalf of all employees, such as the
employer's contribution to health or retirement plans, nor does it include the
payment of the employer's payroll taxes.
(B) Payments Other Than Compensation. This
includes payments made by the filer for:
(i)
Expenses incurred by a lobbyist in connection with activities as a lobbyist.
All such expenses paid directly by the filer must be reported as "other
payments to influence legislative or administrative action," regardless of the
nature of the expense.
(ii)
Expenses incurred by the filer for goods or services used by a lobbyist or used
to support or assist a lobbyist in connection with activities as a
lobbyist.
(iii) Other expenses that
would not have been incurred but for the filer's activities to influence or
attempt to influence legislative or administrative action, such as those
activities described in subdivision (a)(4) of this regulation, including office
overhead and operating expenses, payments to expert witnesses, and expenses
incurred by employees other than a lobbyist. However, any expenses associated
with office overhead and operating expenses, including rent, utilities, office
supplies and subscriptions to legislative tracking services should not be
itemized under subdivision (f)(2), but must be listed on a separate form
provided by the Commission as a lump sum.
(2) Other Payments to Influence of $2,500 or
more. Other payments to influence made by the filer during the reporting period
totaling $2,500 or more to a payee must be listed on a separate form provided
by the Commission and submitted with the report required under Section
86116. The filer must disclose:
(A) The name and business address of the
payee;
(B) The total payments made
during the reporting period;
(C)
The cumulative amount paid during the calendar year; and
(D) One of the following codes to describe
the primary purpose of the payment:
(i) [S]
for salary and compensation of employees other than lobbyists as defined under
subdivision (f)(1)(A);
(ii) [E] for
expenses incurred by a lobbyist and paid directly by the filer, or expenses
incurred by the filer for goods or services used by a lobbyist or used to
support or assist a lobbyist in connection with activities as a
lobbyist;
(iii) [L] for legislative
related-services performed by a lobbying firm in the absence of express or
implied authorization to engage in direct communication related to researching,
monitoring, analyzing or drafting statutes, or recommending strategy, providing
advice, or similar services concerning pending or proposed legislative or
administrative action under Regulation 18614(b)(2);
(iv) [C] for consultants and government
relations, including all contracts for economic consideration with a business
entity or individual, other than a lobbying firm or lobbyist, to provide
governmental consulting, advocacy, or strategy;
(v) [P] for public affairs, including
coalition building, grassroots campaigns and public policy initiatives
including news releases, media campaigns, literature and mailings, canvassing,
and special events;
(vi) [A] for
advertising, including billboards, print, radio, television, text, email and
other electronic advertising;
(vii)
[R] for research, including feasibility studies, analysis, polling, and public
opinion research;
(viii) [V] for
lobbying events, including event planning, rentals, equipment, and
transportation for members of organizations or the public to meet public
officials, hold rallies or attend hearings to influence legislative or
administrative action;
(ix) [O] for
all other payments not covered by one of the above listed
categories.
(g) Exceptions.
(1) Notwithstanding subdivision (f) of this
regulation, a filer need not report compensation or other payments for services
that are solely secretarial, clerical, or manual or are limited solely to the
compilation of data and statistics.
(2) Except for payments to lobbyists and the
compensation of employees other than lobbyists that must be reported under
subdivision (f)(1)(A), a filer need not report any regular, ongoing business
overhead that would continue to be incurred in substantially similar amounts
regardless of the filer's activities to influence legislative or administrative
action.
(3) A filer does not have
to report any part of the costs of producing a regularly published newsletter
or periodical whose circulation is limited to an organization's members,
employees, shareholders, other affiliated individuals and those who request or
purchase the publication. This exception applies only to those costs regularly
incurred in publishing and distributing the newsletter or periodical. If
additional costs are incurred because the newsletter or periodical is issued on
other than its regular schedule, expanded in circulation, or altered in style,
size, or format for the primary purpose of influencing or attempting to
influence legislative or administrative action, such additional costs are
reportable under subdivision (f)(1)(B).
(4) Except as provided in Section
86116.5, which is applicable to all
state and local agencies that file reports pursuant to Sections
86115 and
86116, dues or similar payments
made by any person for membership in a bona fide association, including any
federation, confederation, or trade, labor, or membership organization, some
portion of which is used to influence legislative or administrative action, are
not payments to influence legislative or administrative action.
(5) Reduced Reporting. In lieu of reporting
expenses in accordance with subdivision (f), a filer that makes payments to
influence a ratemaking or quasi-legislative proceeding, as defined in Section
82002(b) or (c),
before the California Public Utilities Commission may report the total of any
payments made for the following:
(A)
Compensation paid to all attorneys for time spent appearing as counsel and
preparing to appear as counsel in those proceedings, excluding time spent
preparing written testimony for those proceedings
(B) Compensation paid to all witnesses for
time spent testifying; and preparing to testify in those proceedings, excluding
time spent preparing written testimony for those proceedings; and,
(C) For purposes of subdivision (g)(5),
"compensation" has the same meaning as in subdivision (f)(1).
(D) The reduced reporting of Section
86116(h)(2) and
this subdivision does not apply to payments to an individual who is a lobbyist
under Section
82039, to payments for expenses
incurred by that individual or to payments described in subdivision
(a)(4)(C).
(h)
Optional Reporting. In addition to reporting total payments for any period, a
filer may apportion payments reported on the basis of whether they were made to
influence legislative action or to influence administrative action.
(i) Applicability of Section
86115(b). For the
purpose of determining whether Section
86115(b) is
applicable to any person, all payments made during any calendar quarter that
are required to be reported by this regulation should be combined and a report
must be filed if the total is $ 5,000 or more. If, however, the only reportable
payments made are activity expenses under Section
86111(a), no
report is required.
(j) Reporting
Specific Lobbying Interests.
(1) The filer
must report each bill or administrative action with regard to which a partner,
owner, officer or employee of the filer, or a lobbying firm with which the
filer has contracted, either has engaged in direct communication, or has been
directed by the filer to engage in direct communication, with a qualified
official for the purpose of influencing legislative or administrative action on
behalf of the filer during the reporting period, either by reference to its
legislative or administrative identification number or by brief textual
description.
(2) A filer should not
report bills or administrative actions that have died prior to the reporting
period, bills or administrative actions that the filer or its agent is only
watching or monitoring, or bills or administrative actions that the filer or
its agent has not attempted to influence during the reporting period.
(3) The definitions contained in Regulation
18239 of the terms "direct communication," "qualifying official," and
"influence legislative action" apply to this subdivision.
1. New section
filed 10-13-78 as an emergency; designated effective 1-1-79 (Register 78, No.
41).
2. Certificate of Compliance filed 11-24-78 (Register 78, No.
47).
3. Amendment of subsection (d) filed 12-19-79 as an emergency;
effective upon filing. Certificate of Compliance included (Register 79, No.
51).
4. New subsection (e) filed 1-25-80; effective thirtieth day
thereafter (Register 80, No. 4).
5. Amendment filed 3-8-84;
effective thirtieth day thereafter (Register 84, No. 10).
6.
Amendment of subsection (e) filed 5-29-84; effective thirtieth day thereafter
(Register 84, No. 22).
7. Repealer and new section filed 5-28-86 as
an emergency; effective upon filing (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. Amendment of subsections (e)(1),
(e)(2) and (j)(3) filed 10-21-88; operative 11-20-88 (Register 88, No.
46).
10. Amendment filed 3-28-94; operative 3-28-94 (Register 94,
No. 13).
11. Editorial correction of subsections (d) and (j)(3)
(Register 95, No. 6).
12. Amendment of subsection (b) 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).
13. Amendment filed 6-17-2002; operative 7-17-2002 (Register
2002, No. 25).
14. Amendment of subsections (g)(5) and (g)(5)(D)
filed 5-17-2004; operative 5-17-2004 pursuant to Government Code section
11343.4
(Register 2004, No. 21).
15. Amendment filed 2-4-2016; operative
3-5-2016, pursuant to title 2, California Code of Regulations, section
18312(e).
Submitted to OAL for printing and 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 2016, No. 6).
16. Amendment of subsection (f)(2)(D)(viii)
filed 4-12-2016; operative 5-12-2016. Submitted to OAL for filing and printing
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 2016, No.
16).
17. Amendment of subsections (c), (f)(1)(B)(i)-(ii) and
(f)(2)(D)(ii) 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).
18. Amendment of subsections (a)(5), (c),
(e)(1)-(2), (f)(1)(B)(i)-(ii) and (f)(2)(D)(ii) filed 6-7-2021; operative upon
the Secretary of State certifying an online filing and disclosure system under
Government Code section
84602(b)(7).
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. 24).
19. Editorial correction of HISTORY 18
(Register 2021, No. 26).
20. Amendment of subsections (a)(5) and
(e)(1)-(2) filed 11-10-2021; operative 12-10-2021 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. 46).
Note: Authority cited: Section
83112,
Government Code. Reference: Sections
86115,
86116 and
86116.5,
Government Code.
