Chapter 413

2004 -- S 2420 SUBSTITUTE B AS AMENDED

Enacted 07/05/04

A N A C T

RELATING TO LOBBYING

Introduced By: Senators Lenihan, Sosnowski, Sheehan, Polisena, and Cote

Date Introduced: February 11, 2004

It is enacted by the General Assembly as follows:

     SECTION 1. Sections 22-10-2, 22-10-9 and 22-10-11 of the General Laws in Chapter 22-

10 entitled "Lobbying" are hereby amended to read as follows:

22-10-2. Definitions. -- For the purpose of this chapter the following definitions apply:

      (1) A person is "appointed" by another if he or she receives compensation for lobbying

or pursuant to a mutual understanding or agreement engages in lobbying.

      (2) "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 of these.

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

those 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 which corresponds to the portion of his or her time spent on

lobbying activities.

      (3) "Lobbying" means acting directly or soliciting others to act for the purpose of

promoting, opposing, amending, or influencing in any manner the passage by the general

assembly of any legislation or the action on that legislation by the governor.

      (4) "Lobbyist" means any person who engages in lobbying as the appointed

representative of another person.

      (5) "Person" means an individual, firm, business, corporation, association, partnership,

or other group.

      (6) "Public corporation" means a corporate entity 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. A "quasi-public corporation" means a body corporate and politic acting as a public

corporation, which has been organized pursuant to law and granted certain powers, rights and

privileges by the general laws, while exhibiting a distinct legal existence from the state, and not

constituting a department of the state government, in order to perform a governmental function.

(7) “Major state decision-maker” means:

(i) all general officers; and all executive or administrative head or heads of any state

executive agency enumerated in section 42-6-1 as well as the executive or administrative head or

heads of state quasi-public corporations, whether appointed or serving as an employee. The

phrase "executive or administrative head or heads" shall include anyone serving in the positions

of director, executive director, deputy director, assistant director, executive counsel or chief of

staff;

(ii) all members of the general assembly and the executive or administrative head or

heads of a state legislative agency, whether appointed or serving as an employee. The phrase

"executive or administrative head or heads" shall include anyone serving in the positions of

director, executive director, deputy director, assistant director, executive counsel or chief of staff;

(iii) all members of the state judiciary and all state magistrates and the executive or

administrative head or heads of a state judicial agency, whether appointed or serving as an

employee. The phrase "executive or administrative head or heads" shall include anyone serving

in the positions of director, executive director, deputy director, assistant director, executive

counsel, chief of staff or state court administrator.

(8) "Advertising" means any communication disseminated by means of printing, mailing,

electronic transmission, broadcasting or other medium.

22-10-9. Financial reports. -- (a) (1) Every person, corporation, or association that

engages any person to act as a lobbyist concerning legislative matters, and the lobbyist, shall

individually file with the secretary of state a complete and detailed itemized report of all

compensation paid to the lobbyist for all expenditures made for the purpose of lobbying,

including the total amount expended for lobbying purposes, and an itemization of , but not limited

to, advertising expenses and all compensation paid to the lobbyists for lobbying. The report shall

also include any expenditure, gift, or honorarium of twenty-five dollars ($25.00) or more for each

occurrence concerning any legislative or executive official paid or incurred by the person,

corporation, or association or who engages the lobbyist and the lobbyist. for the specific purpose

of promoting or opposing in any manner the passage by the general assembly of, or the action by

the governor on, any legislation governed by the provisions of this chapter. These The reports

shall include the names of the persons individuals receiving or in whose behalf the expenditures

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

      (2) Any function to which the entire membership of the general assembly, or of either

chamber or of any legally constituted legislative committee or commission within the general

assembly, is invited, which is sponsored by any person, corporation, or association having

engaged any person to act as a lobbyist, or by any lobbyist, shall be deemed a lobbying activity,

and any funds expended or incurred for that function shall be set forth in the financial report.

      (3) 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 by the fifteenth (15th) day of each

month thereafter, beginning in March until the final adjournment of the general assembly. A final

report shall be filed no later than thirty (30) days after the final adjournment.

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

shall be open for public inspection.

      (5) 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.

      (b) During any special session of the general assembly, every person, corporation, or

association that engages any person to act as a lobbyist, and every lobbyist so engaged, shall

register within twenty-four (24) hours of the commencement of the session. The initial financial

reports shall be filed within twenty-four (24) hours after the date of the employment for the

special session, and updated reports shall be filed every fourteen (14) days thereafter. The final

report shall be filed no later than seven (7) days after the date of adjournment.

(c) Not later than January 15 of each year, every lobbyist and every individual, firm,

business, corporation, association, partnership, or other group which employed a lobbyist or

engaged any person to act as a lobbyist or who was required to register with the office of

secretary of state during the preceding year pursuant to section 22-10-6 shall file with the

secretary of state a complete and detailed report of all money or anything of value which in the

aggregate exceeds two hundred fifty dollars ($250) provided or promised to any major state

decision-maker within the preceding calendar year. "Money" and "anything of value" in this

subsection and in subsection (d) shall mean any fee, salary, commission, expense allowance,

forbearance, forgiveness, royalty, rent, capital gain, gift, loan, reward, favors or services,

gratuities or special discounts, or any other form of recompense that constitutes income under the

Federal Internal Revenue Code.

(d) Not later than January 15 of each year, every individual, firm, business, corporation,

association, partnership or other group specified in subsection (c) shall provide an exact copy of

the report required in subsection (c) to the Rhode Island ethics commission and to any major state

decision-maker to whom it provided or promised money or anything of value which in the

aggregate exceeds two hundred fifty dollars ($250) within the preceding calendar year.

22-10-11. Penalty for violations of chapter. -- (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) two thousand dollars ($2,000) per violation which may be imposed by the secretary of

state after a hearing complying with the procedures set forth in section 22-10-10(7).

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

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

conviction for that offense, be fined not less than two hundred dollars ($200) five hundred dollars

($500) nor more than five thousand dollars ($5,000) ten thousand dollars ($10,000). 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) five hundred dollars ($500) nor more than one thousand dollars ($1,000) two thousand

dollars ($2,000), and shall be debarred from acting in the capacity of a lobbyist for the period of

three (3) years from the date of conviction.

     SECTION 2. This act shall take effect upon passage.

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LC01443/SUB B

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