New Lobbying Regulations Fair Political Practices Commission IGA 2016

New Lobbying Rules Disclosure of Other Payments to Influence: Requires more detailed disclosure and itemization of other payments to influence. Accompanying Rule: An exception to what activity qualifies as “direct communication” and therefore who qualifies as a lobbyist. Clarifies that this narrow exception applies only to employees who are subject matter experts who attend meetings with a lobbyist to add substantive information on a particular issue. Presumption Rule: Specifies situations that give rise to a rebuttable presumption that certain payments made to an individual are for direct communication with a qualifying official for the purpose of influencing legislative or administrative action.

Other Payments to Influence Government Code Section 86116 – Regulation 18616 Break out payments that were under a catchall, non-itemized category known as “other payments to influence.” Increase transparency and disclosure. Increase public’s ability to monitor and hold public officials accountable. Increase public trust in government.

Other Payments to Influence Government Code Section 86116 – Regulation 18616 Requires more detailed disclosure of other payments to influence. Requires itemization of expenses of $2,500 or more ($250 or more for government entities), including the payee, the amount, and primary purpose of the payment. Requires the use of a payment code to describe the primary purpose of the payment.

Accompanying Rule Regulation 18239 For determining whether an individual qualifies as a lobbyist. The regulation clarifies that an individual does not engage in “direct communication” when the individual is an employee of a lobbyist employer, meets or speaks with a qualifying official in the company of a registered lobbyist retained by the individual’s lobbyist employer, and participates as a subject matter expert.

Accompanying Rule Regulation 18239 The accompanying person must be an employee of the lobbyist employer. An employee in this context also includes a member of a bona fide trade association or membership organization. The accompanying person participates in the meeting only as a subject matter expert regarding a legislative or administrative action at issue. An “expert” is a person with particularized knowledge or experience. The individual participates in the meeting accompanying a lobbyist.

Accompanying Rule Examples This rule would apply to: A teacher to inform a qualifying official regarding classroom realities; A safety foreman when a bill regards changes in oil field regulations; A lead engineer when the matter involves a technical aspect of a bill’s impacts; A car dealership manager when a bill impacts a car dealers association (a membership organization) as a representative of the association.

Presumption Rule

Presumption Rule Regulation 18239 The presumption affects the burden of producing evidence in administrative and civil actions and will be triggered only if the following facts are established by the FPPC Enforcement Division: the individual receives or is entitled to receive compensation from a person for services including direct communication; the compensation is $2,000 or more; and the compensation is for services in a calendar month. The presumption may be rebutted by evidence that may include testimony, records, bills, and receipts establishing the allocation of the individual’s compensation for all other goods and services provided.

WHAT IT DOESN’T DO: Presumption Rule Does not change or expand the legal requirements under the Act for registering as a lobbyist. Does not shift the burden of proof. Does not apply in a criminal action.