Chapter 375

2004 -- S 2478 SUBSTITUTE B AS AMENDED

Enacted 07/03/04

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT- LOBBYING OF STATE

EMPLOYEES

Introduced By: Senators Paiva-Weed, Goodwin, J Montalbano, McCaffrey, and Gallo

Date Introduced: February 11, 2004

It is enacted by the General Assembly as follows:

SECTION 1. Title 42 of the General Laws entitled "State Affairs and Government" is

hereby amended by adding thereto the following chapter:

CHAPTER 139

EXECUTIVE BRANCH AND PUBLIC CORPORATION LOBBYING

42-139-1. Declaration of intent. – (a) The preservation of responsible government

requires that the fullest opportunity be afforded to the people of the state to petition their

government for the redress of grievances and to express freely to members of the executive

branch and to the management of public corporations their opinion on current issues and the

management of government affairs; and

(b) Public confidence in the integrity of the governmental process is strengthened by the

identification of persons and groups who on behalf of private interests seek to influence the

management of government and by the disclosure of funds expended in that effort.

42-139-2. Definitions. – For the purpose of this chapter the following definitions shall

apply:

(1) (a) “Lobbying” means acting directly or soliciting others to act for the purpose of

promoting, opposing, or influencing: (i) any policy-making decisions or policy-making actions of

the executive branch of government or of public corporations; or (ii) any decisions or actions on

the part of the executive branch of government or any public corporation involving the sale, lease

or other alienation or encumbrance of any real property owned or leased by the state or any public

corporation.

(b) None of the following activities shall constitute “lobbying” for purposes of this

chapter:

(i) participation in or attendance at a rally, protest or other public assemblage organized

for the expression of political or social views, positions or beliefs;

(ii) the solicitation of information about the rules, procedures, forms, programs or

requirements of a department, agency, board, commission or public corporation;

(iii) advocacy in connection with matters involving the determination of the rights, duties

or obligations of an individual made on a case-by-case basis;

(iv) the issuance and dissemination of any publication, including data, research or

analysis on public policy issues that is available to the general public, and including also any

news media reports, editorials, commentary or advertisements;

(v) participation in a governmental advisory committee or task force;

(vi) representation of one’s own, wholly owned business entity;

(vii) participation in a bid conference or responding to request for proposals issued by a

state agency or department or by a public corporation;

(viii) responding to a subpoena or to a request for information made by a state agency or

department or by a public corporation;

(ix) representation of a client in connection with the granting or denial of a permit,

license or benefit, or with potential disciplinary action against the client; or

(x) participation in any proceeding pursuant to chapter 42-35 of the general laws.

(2) (a) “Lobbyist” means a person who is employed and receives payment, or who

contracts for economic compensation, for the purpose of lobbying, or a person who is principally

employed for governmental affairs by another person or governmental entity to lobby on behalf

of that other person or governmental entity.

(b) None of the following persons shall be deemed a “lobbyist” for purposes of this

chapter:

(i) a member of the Rhode Island Bar participating in an administrative or judicial

proceeding;

(ii) a qualified expert witness testifying in an administrative proceeding;

(iii) an employee of any branch of federal, state or local government or of any public

corporation to the extent that he or she seeks only to influence or affect decisions or actions of

other governmental entities and public corporations solely on its own behalf;

(iv) any member of the general assembly, any general officer of the state, any head of any

executive department of state government, and any judge of this state acting in his or her official

capacity.

(3) “Compensation” means any remuneration received or to be received for services

rendered as a lobbyist, whether in the form of a fee, salary, forbearance, forgiveness,

reimbursement for expenses, or any other form of recompense, and any combination thereof.

Where lobbying is incidental to a person’s regular employment, his or her compensation for

lobbying shall be reported as such and the lobbyist shall record the dollar amount of that portion

of his or her compensation that is attributed to the time spent pursuing lobbying activities. In such

instances, it shall not be necessary to disclose one’s total salary or the percentage of one’s time

spent on lobbying. The lobbyist shall be required to disclose only his or her best good faith

estimate of the dollar amount of which corresponds to the portion of his or her time spent on

lobbying activities.

(4) “Person” means an individual, firm, business, corporation, association, partnership, or

other group.

(5) “Public corporation” means a corporate entity within the purview of sections 35-18-

2(9) and 35-20-5(4) of the general laws which is considered a governmental agency but which

has a distinct legal existence from the state or any municipality, does not constitute a department

of state or municipal government, and has the ability to sue or be sued in its own name.

42-139-3. Register – Information shown – Public records. – The secretary of state

shall prepare and keep in conformity with the provisions of this chapter a register for executive

branch and public corporation lobbyists. The register required to be maintained under this section

may, in the discretion of the secretary of state, be incorporated into and/or made part of the register

required to be maintained under section 22-10-5 of the general laws. In this register shall be entered

the name and business address of the employer, and the name, residence, and occupation of the

persons employed for any lobbying purpose regarding the executive branch or public corporations,

the date of the employment or agreement therefore, the length of time the employment is to continue,

if such time can be determined, and the subject matter regarding which contact is to be made. Each

such register shall be a public record and open to the inspection of any citizen upon demand at any time

during regular business hours of the office of the secretary of state. Within ten (10) days of any filing,

the secretary of state shall forward a list of lobbyists in the register on executive branch and public

corporation matters to the governor and to the chief executive of each public corporation.

42-139-4. Entry of names of lobbyists on register required. – Every person, corporation,

or association that engages any person to act as a lobbyist as defined in section 42-138-2 shall,

within seven (7) days after the date of such employment, cause the name of the person,

corporation, or association and the name of the person so engaged, or agreed to be engaged,

as well as a brief summary of the subject matter, to be entered in the register as herein provided

in the office of the secretary of state. It shall also be the duty of the person so engaged as a lobbyist

to enter or cause to be entered his or her name in the register within seven (7) days

after his or her date of employment. Upon the termination of the engagement, that fact shall be

entered opposite the name of any person so engaged by the employer or employee.

42-139-5. Entries as to additional subjects of lobbying. – (a) Every person, corporation,

or association employing any lobbyist, and the lobbyist, shall, whenever further subjects are introduced

or arise which the lobbyist is to promote or oppose, designate those subjects on the form prepared in

accordance with subsection (b) of this section.

(b) The secretary of state shall prepare a form containing a comprehensive list of subjects which shall

be provided to each registrant. The registrant shall designate on that form the subject

or subjects on which he or she intends to promote or oppose. If the person intends to lobby on the

subject not so listed, he or she shall identify it by topic.

42-139-6. Financial reports. – (a) (1) Every person, corporation, or association that engages

any person to act as a lobbyist concerning executive or public corporation matters, and

the lobbyist, shall individually file with the secretary of state a complete and detailed report of all

compensation paid to the lobbyist for lobbying, including the total amount expended for lobbying purposes,

and an itemization of any expenditure, gift, or honorarium of twenty-five dollars ($25.00) or more for

each occurrence paid or incurred by the person, corporation, or association or lobbyist for the specific

purpose of promoting or opposing in any manner action by members of the executive branch or of public

corporations. These reports shall include the names of the persons receiving or in whose behalf the

expenditures have been made, and the reason, time, and place of the expenditures.

(2) The initial report shall be filed by the person, corporation, or association having engaged any

person to act as a lobbyist and by the lobbyist at the time of their initial registration, and updated reports

shall be filed with the secretary of state semi-annually. The updated reports shall be filed no later than

thirty (30) days after the end of each reporting period, and shall include

expenditures for the period from January 1 through June 30, and July through December 31, respectively.

(3) All reports shall be on a form prescribed by the secretary of state, and the reports shall be

open for public inspection.

(4)_In the event no compensation has been paid or received, and no expenses have been paid

or incurred, an annual statement to that effect may be filed with the secretary of state in lieu of the report form.

42-139-7. Duties and powers of the secretary of state. – The secretary of state shall

have authority to perform such duties as are necessary to implement the provisions of this

chapter. Without limiting the generality of the foregoing, the secretary of state is authorized and

empowered to:

(1) Develop forms for the making of the required financial reports.

(2) Develop registers for lobbyists who must register pursuant to this chapter.

(3) Adopt rules and regulations to carry out the purposes of this chapter.

(4) Prepare and make available for public inspection through the office of the secretary

of state summaries of all reports.

(5) Prepare and publish a manual for all persons, corporations or associations which

engage any person as a lobbyist and for all lobbyists which sets forth the requirements of this

chapter.

(6) Ascertain whether any person, corporation, association, or lobbyist has failed to

good cause shown, extend the dates upon which reports are required to be filed.

(7) Conduct investigations and/or hearings relative to alleged violations of this chapter

either on his or her own initiative or upon receipt of a verified written complaint, which

complaint shall, upon pain and penalty of perjury, be based upon actual knowledge and not

merely on information and belief. Upon completion of the investigation, if the secretary of state

has reason to believe that a violation has occurred, the secretary may convene a hearing for the

purpose of taking evidence and receiving testimony regarding the alleged violation. At this

hearing, the person alleged to have committed the violation shall be afforded the opportunity to

present evidence and offer testimony in his or her defense. Upon completion of the hearing, if the

secretary of state determines by a preponderance of the evidence that a violation has occurred, the

secretary shall order the lobbyist or person engaging a lobbyist to file such a report or amended

report as is necessary to correct the violation forthwith. If the secretary determines by clear and

convincing evidence that the violation was intentional and that the violator failed to comply when

given notice of the deficiency, then he or she may impose an administrative penalty as provided

in section 22-10-11(a). Any determination and/or administrative penalty imposed by the secretary

of state may be appealed by the aggrieved party to superior court pursuant to the provisions of

chapter 35 of title 42. If the secretary of state determines that the nature of the violation was of

such seriousness and willfulness as to warrant a criminal complaint, he or she may refer the

violation to the attorney general for prosecution as provided for in section 22-10-11(b).

(8) Administer oaths.

42-139-8. Penalty. – (a) Administrative penalty. Any person, corporation, association,

or lobbyist who is found to have intentionally violated any provision of this chapter shall be

subject to an administrative penalty not to exceed one thousand dollars ($1,000) per violation

which may be imposed by the secretary of state after a hearing complying with the procedures set

forth in this chapter.

(b) Criminal penalty. Any person, corporation, or association that shall willfully fail to

file reports when due or shall otherwise fail to comply with any provision of this chapter shall,

upon conviction for that offense, be fined not less than two hundred dollars ($200) nor more than

five thousand dollars ($5,000). Any person employed as a lobbyist or agent who shall willfully

fail to file reports when due or shall otherwise fail to comply with any provision of this chapter

shall be fined not less than two hundred dollars ($200) nor more than one thousand dollars

($1,000), and shall be debarred from acting in the capacity of a lobbyist for the period of three (3)

years from the date of conviction.

42-139-9. Lobbying without compliance prohibited. – No person shall appear as a

lobbyist or engage in any lobbying activity with respect to the executive branch or any public

corporation unless his or her name appears upon the register for lobbyists. No person, private or

public corporation, or association shall directly or indirectly employ any person as a lobbyist

unless the name of that person, corporation, or association and the lobbyist are duly entered on

the register as provided by this chapter. No person shall be employed as a lobbyist for

compensation dependent in any manner upon the outcome of any proposal or upon any other

contingency relating to action or inaction by the executive branch or the management of any

public corporation. Any person, corporation, or association violating this section shall be subject

to the penalties set forth in section 42-139-8.

SECTION 2. This act shall take effect upon passage.

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LC01095/SUB B/2

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