GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION
CHAPTER 740
PART I CHANGES IN REGISTRATION AND REPORTING FOR LOBBYISTS AND THEIR PRINCIPALS.
PART II NO-FUNDRAISING IN SESSION FROM LOBBYISTS.
The General Assembly of North Carolina enacts:
PART I - CHANGES IN REGISTRATION AND REPORTING.
Section 1.1. Article 9A of Chapter 120 of the General Statutes reads as rewritten:
"ARTICLE 9A.
"Lobbying.
"§ 120-47.1. Definitions.
For the purposes of this Article, the following terms shall have the meanings ascribed to them in this section unless the context clearly indicates a different meaning:
(1) The terms
'contribution,' 'compensation' and 'expenditure' mean any advance, conveyance,
deposit, payment, gift, retainer, fee, salary, honorarium, reimbursement, loan,
pledge or anything of value and any contract, agreement, promise or other
obligation whether or not legally enforceable. enforceable, but those
terms do not include prizes, awards, or compensation not exceeding one hundred
dollars ($100.00) in a calendar year.
(2) The term
"legislative agent"shall mean any person who is employed or
retained, with compensation, by another person to give facts or arguments to
any member of the General Assembly during any regular or special session
thereof upon or concerning any bill, resolution, amendment, report or claim
pending or to be introduced. The term "legislative agent"shall
include, but not be limited to, corporate officers and directors and other
individuals who are full or part-time employees of other persons and whose
duties or activities as legislative agents, as hereinbefore defined, are
incidental to the principal purposes for which they are employed or retained. The
reimbursement of actual personal travel and subsistence expenses reasonably
necessary to communicate with a member or members of the General Assembly shall
not be considered compensation for purposes of determining whether a person is
a legislative agent under this subdivision.
(3) The term
'person' means any individual, firm, partnership, committee, association,
corporation or any other organization or group of persons.
(4) The term 'legislative action' means 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 by the legislature or by a member or employee of the legislature acting or purporting to act in an official capacity.
(5) The term 'lobbying' means:
a. Influencing or attempting to influence legislative action through direct oral or written communication with a member of the General Assembly; or
b. Solicitation of others by lobbyists to influence legislative action.
(6) The term 'lobbyist' means an individual who:
a. Is employed and receives compensation, or who contracts for economic consideration, for the purpose of lobbying; or
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.
(7) The terms 'lobbyist's principal' and 'principal' mean the entity in whose behalf the lobbyist influences or attempts to influence legislative action.
(8) The term 'person' means any individual, firm, partnership, committee, association, corporation, or any other organization or group of persons.
(9) The General Assembly is in 'regular session' from 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) In each General
Assembly session and for each employer, or retainer, every person employed or
retained as a legislative agent in this State shall, before engaging in any
activities as a legislative agent, register with the Secretary of State. If a
corporation or partnership is employed or retained as a legislative counsel,
and more than one partner, employee or officer of the corporation or
partnership, shall act as a legislative agent on behalf of the client, then the
additional individuals shall be separately listed on the registration under
subsection (b), and a fee in the same amount as imposed by G.S. 120-47.3 shall
be due for each such individual in excess of one. A lobbyist shall file
a registration statement with the Secretary of State before engaging in any
lobbying. A separate registration statement is required for each
lobbyist's principal.
(b) The form of such the
registration shall be prescribed by the Secretary of State and shall
include the registrant's full name, firm, and complete address; the
registrant's place of business; the full name and complete address 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 legislative
agent. a lobbyist.
(c) Each legislative
agent lobbyist shall register again with the Secretary of State no
later than 10 days after any change in the information supplied in his last
registration under subsection (b). Such Each supplementary
registration shall include a complete statement of the information that has
changed.
(d) Within 20 days after
the convening of each regular session of the General Assembly, the Secretary of
State shall furnish each member of the General Assembly and the State
Legislative Library a list of all persons who have registered as a
legislative agent lobbyists and whom they represent. A
supplemental list shall be furnished periodically each 20 days thereafter as
the session progresses.
(e) Each registration statement required under this Article shall be effective from the date of filing until January 1 of the following odd-numbered 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.
Every person, corporation or association which employs any
person to act as legislative agent as defined by law to promote or oppose in
any manner the passage by the General Assembly of any legislation affecting the
pecuniary interests of any individual, association or corporation as distinct
from those of the whole people of the State, or to act in any manner as a
legislative agent in connection with any such legislation, Every
lobbyist's principal shall pay to the Secretary of State a fee of
seventy-five dollars ($75.00) which fee shall be due and payable by either the employer
or the employee lobbyist or the lobbyist's principal at the time of
registration.
A separate registration, together with a separate
registration fee of seventy-five dollars ($75.00), shall be required for each person,
corporation or association lobbyist's principal for which a person
acts as legislative agent. a lobbyist. Fees so collected
shall be deposited in the general fund General Fund of the State.
"§ 120-47.4.
Written authority from employer to be filed; copy for legislative committee.
lobbyist's principal to be filed.
Each legislative agent lobbyist shall file with
the Secretary of State within 10 days after his registration a written
authorization to act as such, signed by the person employing him. the
lobbyist's principal.
"§ 120-47.5. Contingency lobbying fees and election influence prohibited.
(a) No person shall act
as a legislative agent lobbyist for compensation which is
dependent in any manner upon the passage or defeat of any proposed legislation
or upon any other contingency connected with any action of the General
Assembly, the House, the Senate or any committee thereof.
(b) No person shall
attempt to influence the action of any member of the General Assembly by the
promise of financial support of his the member's candidacy, or by
threat of financial contribution in opposition to his the member's candidacy
in any future election.
"§ 120-47.6.
Statements of legislative agent's lobbyist's lobbying expenses
required.
Each legislative agent shall file annually, within 30 days
after the final adjournment of the regular session of the General Assembly held
in a calendar year, a report with respect to each person represented setting
forth the date, to whom paid, and amount of each expenditure made during the
previous year in connection with promoting or opposing any legislation in any
manner covered by this Article,
(a) Each lobbyist shall file an expense report with respect to each principal within 60 days after the last day of the regular session. This expense report shall include all expenditures made between January 1 and the last day of the regular session. The lobbyist shall file a supplemental report including all expenditures made after the last day of the regular session, but during the calendar year, by February 28 of the following year. The lobbyist shall file both expense reports whether or not expenditures are made.
(b) Each expense
report shall set forth the date of each expenditure, to whom paid, the name of
any legislator who benefitted from each expenditure, and the amount of each
expenditure made during the previous reporting period in connection with
lobbying, in each of the following categories: (1) transportation, (2)
lodging, (3) entertainment, (4) food, (5) any item having a cash equivalent
value of more than twenty-five dollars ($25.00) and (6) contributions made,
paid, incurred or promised, directly or indirectly. It shall not be
necessary to report expenditures in a particular category if the total
amount expended in the particular category on behalf of a person represented is
of twenty-five dollars ($25.00) or less. less, nor shall
it be necessary to report any expenditures made in connection with the
attendance of a legislator at any fund-raising function or event sponsored by a
nonprofit organization qualified under 26 U.S.C. § 501(c). A
report shall be filed annually whether or not contributions or expenditures are
made. When more than 10 members of the General Assembly benefitted
or were invited to benefit from an expenditure, the lobbyist shall not be
required to report the name of any legislator, but shall be required to report
the number of legislators or, with particularity, the basis for their
selection.
(c) All reports
shall be in such the form as shall be prescribed by the
Secretary of State and shall be open to public inspection.
(d) When a legislative
agent lobbyist fails to file a lobbying expense report as required
herein, the Secretary of State shall send a certified or registered letter
advising the agent lobbyist of his the delinquency
and the penalties provided by law. Within 20 days of the receipt of such the
letter, the agent lobbyist shall deliver or post by United
States mail to the Secretary of State the required report and an additional
late filing fee of ten dollars ($10.00). 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 expense report in one of
the manners prescribed herein shall result in revocation of any and all
registrations of a legislative agent lobbyist under this
Article. No legislative agent lobbyist may register or
reregister under this Article until he has fully complied with this section.
"§ 120-47.7.
Statements of employer lobbyist's principal lobbying expenses
required.
(a) Each person
who employs or retains a legislative agent shall file annually, within 30
days after the final adjournment of the regular session of the General Assembly
held in a calendar year, a report with respect to each agent employed or
retained setting Each lobbyist's principal shall file an expense report
within 60 days after the last day of the regular session. This expense
report shall include all expenditures made between January 1 and the last day
of the regular session. The principal shall file a supplemental expense
report, including all expenditures made after the last day of the regular
session, but during the calendar year, by February 28 of the following
year. The principal shall file both expense reports whether or not
expenditures are made during a reporting period.
(b) Each
expense report shall set forth the date, name and address of each
lobbyist employed, appointed, or retained by the lobbyist's principal, the date
of each expenditure made, to whom paid, name of any legislator who
benefitted from each expenditure, and amount of each expenditure made
during the previous year reporting period in connection with promoting
or opposing any legislation in any manner covered by this Article, lobbying,
in each of the following categories: (1) transportation, (2) lodging, (3)
entertainment, (4) food, (5) any item having a cash equivalent value of more
than twenty-five dollars ($25.00), (6) contributions made, paid, incurred or
promised, directly or indirectly, and (7) compensation to legislative
agents. lobbyists in connection with their lobbying activities. It
shall not be necessary to report expenditures in any particular category if
the total amount expended in the particular category on behalf of a person
represented is of twenty-five dollars ($25.00) or less. less,
nor shall it be necessary to report any expenditures made in connection with
the attendance of a legislator at any fund-raising function or event sponsored
by a nonprofit organization qualified under 26 U.S.C. § 501(c). When more
than 10 members of the General Assembly benefitted or were invited to benefit
from an expenditure, the principal shall not be required to report the name of
any legislator, but shall be required to report the number of legislators or
the basis for their selection. In the category of compensation to legislative
agents lobbyists it shall not be necessary to report the full
salary, or any portion thereof, of a legislative agent who is a full-time
employee of or is annually retained by the reporting employer. the
principal shall estimate and report the compensation paid or promised directly
or indirectly, to all lobbyists based on the estimated time, effort and expense
in connection with lobbying activities on behalf of the principal. If a
lobbyist is a full-time employee of the principal, or is compensated by means
of an annual fee or retainer, the principal shall estimate and report the
portion of all such lobbyists' salaries or retainers that compensate the
lobbyists for lobbying. A report shall be filed annually whether
or not payments are made.
(c) All reports shall be in the form prescribed by the Secretary of State and open to public inspection.
(d) When an
employer or retainer of a legislative agent a lobbyist's principal fails
to file a lobbying expense report as required herein, the Secretary of State
shall send a certified or registered letter advising the employer or
retainer lobbyist's principal of his the delinquency
and the penalties provided by law. Within 20 days of the receipt of such
the letter, the employer or retainer lobbyist's principal shall
deliver or post by United States mail to the Secretary of State the required
report and a late filing fee of ten dollars ($10.00). Filing of the
required report and payment of the late fee within the time extended shall
constitute compliance with this section.
"§ 120-47.8. Persons exempted from provisions of Article.
The provisions of this Article shall not be construed to apply to any of the following:
(1) An individual, not
acting as a legislative agent, lobbyist, solely engaged in
expressing a personal opinion on legislative matters to his own legislative
delegation or other members of the General Assembly.
(2) A person appearing
before a legislative committee at the invitation or request of the committee or
a member thereof and who engages in no further activities as a legislative
agent lobbyist in connection with that or any other legislative
matter.
(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 his office and public duties.
b. Notwithstanding the persons exempted in this Article, the Governor, Council of State, and all appointed heads of State departments, agencies and institutions, shall designate all authorized official legislative liaison personnel and shall file and maintain current lists of designated legislative liaison personnel with the Secretary of State and shall likewise file with the Secretary of State a full and accurate accounting of all money expended on lobbying, other than the salaries of regular full-time employees, at the same times lobbyists are required to file expense reports under G.S. 120-47.5.
(4) A person performing
professional services in drafting bills or in advising and rendering opinions
to clients, or to legislators on behalf of clients, as to the
construction and effect of proposed or pending legislation where such the
professional services are not otherwise, directly or indirectly, connected
with legislative 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 such the news medium.
(6) Notwithstanding
the persons exempted in this section, the Governor, Council of State, and all
appointed heads of State departments, agencies and institutions, shall
designate all authorized official legislative liaison personnel and shall file
and maintain current lists of designated legislative liaison personnel with the
Secretary of State and shall likewise file with the Secretary of State a full
and accurate accounting of all money expended in influencing or attempting to
influence legislation, other than the salaries of regular full-time employees.
(7) Members of the General Assembly.
(8) A person responding to
inquiries from a member of the General Assembly, Assembly or a
legislative employee, and who engages in no further activities as a legislative
agent lobbyist in connection with that or any other legislative
matter.
(9) An individual giving facts or recommendations pertaining to legislative matters to his own legislative delegation only.
"§ 120-47.9. Punishment for violation.
Whoever willfully violates any provision of this Article
shall be guilty of a misdemeanor and upon conviction shall be fined not less
than fifty dollars ($50.00) nor more than one thousand dollars ($1,000), or
imprisoned not exceeding two years, or both. In addition, no legislative
agent lobbyist who is convicted of a violation of the provisions of
this Article shall in any way act as a legislative agent lobbyist for
a period of two years following his conviction.
"§ 120-47.10. Enforcement of Article by Attorney General.
The Secretary of State shall report apparent violations of this Article to the Attorney General. The Attorney General shall, upon complaint made to him of violations of this Article, make an appropriate investigation thereof, and he 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.
"§ 120-47.11. Rules and forms.
The Secretary of State shall make, amend, and rescind any rules, orders, forms, and definitions as are necessary to carry out the provisions of this Article."
Sec. 1.2. Article 10 of Chapter 120 of the General Statutes is repealed.
PART II - LIMITS ON FUND-RAISING IN SESSION.
Sec. 2. Chapter 163 of the General Statutes is amended by adding a new section to read:
"§ 163-278.13A. No fund-raising from lobbyists for legislators or Council of State members while General Assembly is in regular session.
(a) While the General Assembly is in regular session, none of the following entities may solicit or accept a contribution from, or at the behest or recommendation of, an individual registered as a lobbyist pursuant to Article 9A of Chapter 120 of the General Statutes:
(1) A member of the Council of State; or
(2) A member of the General Assembly; or
(3) A political committee the principal purpose of which is to assist a member or members of the Council of State or General Assembly.
(b) While the General Assembly is in regular session, no individual registered as a lobbyist under Article 9A of Chapter 120 of the General Statutes may make a contribution to any of the entities listed in subdivisions (1) through (3) of subsection (a) of this section.
(c) This section does not apply to:
(1) Any contribution made to or by a State, county or congressional district executive committee of a political party; or
(2) Any contribution made to or solicited for a political committee that operates on a Statewide basis in conjunction with the executive committee of a political party for the purpose of assisting that party's candidates for Council of State or General Assembly; or
(3) Any contribution made by a member of the Council of State or General Assembly to a political committee the principal purpose of which is to assist himself; or
(4) Any contribution made to or any solicitation for a nonprofit organization under 26 U.S.C. § 501(c); or
(5) Any contribution accepted with the intent that it be used to defray legal or other expenses incurred in connection with the contesting of election results; or
(6) Any contribution to any of the entities listed in subdivisions (1) through (3) of subsection (a) of this section if the member of the Council of State or General Assembly has filed an official notice of candidacy with the appropriate board of elections for any elective office, provided the contribution is for the elective office for which the member has filed.
(d) A violation of this section is a misdemeanor, but no individual or person shall be prosecuted under this section for accepting or making a contribution unless the State Board of Elections has notified the individual or person of the apparent violation in writing by certified mail, has given the individual or person an opportunity to return or to request the return of the contribution, and, within 10 days of the receipt of the notification, the individual or person has failed to return or to request the return of the contribution.
(e) For purposes of this section, the General Assembly is in regular session from the date set by law or resolution that the General Assembly convenes until the General Assembly either:
(1) Adjourns sine die; or
(2) Recesses or adjourns for more than 10 days."
Sec. 3. Part I of this act shall become effective January 1, 1992, except for G.S. 120-47.11 which is effective on ratification. Part II of this act is effective on ratification. This act shall be implemented within funds available to the Secretary of State. Nothing in this act shall be construed to obligate the General Assembly to appropriate funds to implement the provisions of this act.
In the General Assembly read three times and ratified this the 16th day of July, 1991.
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James C. Gardner
President of the Senate
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Daniel Blue, Jr.
Speaker of the House of Representatives