Chapter 069

2016 -- H 7388 SUBSTITUTE A Enacted 06/13/2016

A N   A C T

RELATING TO GENERAL ASSEMBLY -- LOBBYING

Introduced By: Representatives Jacquard, Williams, Gallison, Ruggiero, and McEntee

Date Introduced: January 28, 2016

It is enacted by the General Assembly as follows:

SECTION 1. Chapter 22-10 of the General Laws entitled "Lobbying" is hereby repealed

in its entirety.

CHAPTER 22-10

Lobbying

22-10-1. 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 individual legislators and to

committees of the legislature their opinion on legislation and current issues; and

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

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

content, introduction, passage, or defeat of legislation and by the disclosure of funds expended in

that effort.

22-10-1.1., 22-10-1.2. Repealed.. --

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) 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 § 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.

22-10-2.1. Repealed.. --

22-10-3. Exemptions. -- The following persons shall be exempt from the provisions of

this chapter:

(1) Any elected public official or the official's designee acting in his or her official

capacity.

(2) News media executives or their employees or agents who in the ordinary course of

business write, publish, or broadcast news items, editorials, or other comments or paid

advertisements which directly or indirectly urge legislative action, if those persons engage in no

other lobbying activities in connection with that action.

(3) Persons engaged solely in drafting legislation.

(4) Persons who appear solely for themselves or at the request of a legislative committee

or any general officer to testify in a public forum in support of or in opposition to legislation.

(5) Persons whose sole lobbying activity is testifying at a public hearing of a legislative

committee or commission on behalf of a nonprofit organization and who receive no compensation

from that nonprofit organization and for whom that organization expends no funds related to the

appearance.

22-10-4. Lobbyists -- Limited activity. -- (a) A person whose sole lobbying activity is

testifying at a public hearing of a legislative committee or commission no more than twice during

the legislative session, either on behalf of a for profit organization or entity or who receives

compensation for the appearance, shall enter or cause to be entered his or her name in a separate

register to be maintained in the office of the secretary of state, and shall be required to disclose:

(1) The legislation by bill number and subject matter on which testimony will be given;

(2) The name of the person, corporation, or association that engaged the person's

services; and

(3) The compensation, if any, that the person is to receive.

(b) The person shall be exempt from all other reporting requirements of this chapter.

22-10-4.1. Governmental employees. -- Any employee of any branch of federal, state,

or local government acting in his or her official capacity shall register his or her name and the

agency which he or she represents in a separate register which shall be maintained by the

secretary of state for that purpose. Each governmental employee shall annually register his or her

name commencing with the year he or she begins lobbying activity. Governmental employees

shall be exempt from the remaining provisions of this chapter. For the purposes of this

exemption, agents and employees of public corporations shall not be considered state or local

employees.

22-10-5. Register -- Information shown -- Public records. -- The secretary of state

shall prepare and keep in conformity with the provisions of this chapter two (2) separate registers

for lobbyists. One shall be for persons lobbying on legislative matters, and one for lobbyists who

qualify under § 22-10-4. In these registers 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 in connection with legislation, the date of the employment or agreement for the

employment, the length of time the employment is to continue, if the time can be determined, and

the legislation by bill number or by the subject matter in the manner provided for in § 22-10-7.

Each 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 legislative

matters to the chairperson of each standing committee of the house of representatives and the

senate.

22-10-6. Entry of names of lobbyists on register required. -- (a) Every person,

corporation, or association that engages any person to act as a lobbyist as defined in § 22-10-2

shall, after the commencement of the annual legislative session and within seven (7) days after

the date of the employment, cause the name of the person, corporation, or association and the

name of the person so engaged, or agreed to be engaged, to be entered in the register as provided

in § 22-10-5 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.

(b) No person, corporation or association shall be allowed to cause the name of the

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

register of the office of the secretary of state unless full compliance, if any required, of the

provisions of this chapter have been met for the prior calendar year.

22-10-7. Entries as to additional subjects of legislation. -- (a) Every person,

corporation, or association employing any lobbyist, and the lobbyist, shall, whenever further

subjects of legislation are introduced or arise which the lobbyist is to promote or oppose, make or

cause to be made additional entries opposite their names in the register. Each entry shall state the

legislation by bill number or by the subject.

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

legislative 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 legislation. If

the person intends to lobby on a subject not so listed, he or she shall identify it by bill number or

by topic including a reference to the chapter of the general laws to be affected.

22-10-8. Identification badge. -- (a) There shall be issued by the secretary of state to

every person who shall qualify as a legislative lobbyist, as provided in this chapter, and who shall

have complied with the provisions of this chapter for the prior calendar year, if applicable, an

identification badge evidencing qualification in the form as shall be prescribed by the secretary of

state. Every lobbyist shall conspicuously display this identification badge on his or her clothing

while in the state house at all times of the day during any legislative session, special legislative

session, and at all times of the day during any committee meeting or joint committee meeting of

the general assembly. The badge shall include, but not be limited to, the word "Lobbyist" in bold

print as well as the name of the lobbyist, the year, and the name of the employer.

(b) An annual fee equal to the actual cost of preparing the badges, but not exceeding five

dollars ($5.00) per entity represented, shall be paid by the lobbyist. The fee shall be paid to the

secretary of state at the time of registration for deposit in the state's general treasury.

22-10-9. Financial reports. -- (a) (1) Every person 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 itemized report of all expenditures made for the purpose of lobbying,

including, but not limited to, advertising expenses and all compensation paid to the lobbyists for

lobbying, and all campaign contributions in excess of one hundred dollars ($100) to state and

municipal elected officials and state political action committees. 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 who engages the

lobbyist and the lobbyist. The report shall include the names of the individuals receiving or in

whose behalf the expenditures have been made, and the reason, 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 day of each month

thereafter, beginning in March until the earlier of the termination of the lobbyist's engagement or

the final adjournment of the general assembly. A final report shall be filed no later than thirty (30)

days after the earlier of the termination of the lobbyist's engagement or the final adjournment of

the general assembly.

(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 § 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) of this section 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) of this section shall provide an

exact copy of the report required in subsection (c) of this section 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.

22-10-10. Duties and powers of the secretary of state. -- The secretary of state shall

have authority to perform any duties that 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 one register for legislative lobbyists and one register for limited-activity

lobbyists.

(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 that

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

chapter and conduct an annual education program for lobbyists to review the requirements of this

chapter and chapter 139 of title 42 regarding lobbying activities and provide instruction on codes

of ethics and conflicts of interest.

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

register or file reports or has filed an incomplete or inaccurate report; and the secretary may, for

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 any report or amended

report that is necessary to immediately correct the violation. 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 § 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 § 22-10-11(b).

(8) Administer oaths.

(9) Prepare and publish annually by March first (1st), a report on lobbying in Rhode

Island to be submitted to the governor, the speaker of the house, the house majority leader, the

house minority leader, the senate president, the senate majority leader, the senate minority leader,

and members of the ethics commission. The annual report shall include information on lobbying

activities as provided in §§ 22-10-4, 22-10-5, 22-10-9, 42-139-3, 42-139-4, 42-139-5, and 42-

139-6. The report shall be made available electronically on the secretary of state's website.

(10) Deny any person, corporation, or association that engages any person as a lobbyist

and/or any lobbyist the ability to register with its office pursuant to section 12 of this chapter until

such time as full compliance with this chapter, for the prior calendar year, if applicable, has been

met.

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 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 § 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 five hundred dollars ($500) nor more than 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 five hundred dollars ($500) nor more than 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.

22-10-12. Lobbying without compliance prohibited. -- No person shall appear as a

lobbyist before any committee of the general assembly or either branch of the general assembly

or engage in any lobbying activity 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 passage or defeat of any proposed

legislation or upon any other contingency connected with the action of the general assembly, or of

either branch or of any committee of the general assembly, or of the governor. Any person,

corporation, or association violating this section shall be subject to the penalties set forth in § 22-

10-11.

SECTION 2. Chapter 42-139 of the General Laws entitled "Executive Branch and Public

Corporation Lobbying" is hereby repealed in its entirety.

CHAPTER 42-139

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

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

of the executive branch of government or of public corporations; or (B) 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.

(ii) None of the following activities shall constitute "lobbying" for purposes of this

chapter:

(A) Participation in or attendance at a rally, protest or other public assemblage organized

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

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

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

(C) Advocacy in connection with matters involving the determination of the rights,

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

(D) 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;

(E) Participation in a governmental advisory committee or task force;

(F) Representation of one's own, wholly owned business entity;

(G) Participation in a bid conference or responding to request for proposals issued by a

state agency or department or by a public corporation;

(H) Responding to a subpoena or to a request for information made by a state agency or

department or by a public corporation;

(I) 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

(J) Participation in any proceeding pursuant to chapter 35 of this title.

(2) (i) "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.

(ii) None of the following persons shall be deemed a "lobbyist" for purposes of this

chapter:

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

proceeding;

(B) A qualified expert witness testifying in an administrative proceeding;

(C) 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;

(D) 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 §§ 35-18-2(9)

and 35-20-5(4) 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 § 22-10-5. 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. -- (a) Every person,

corporation, or association that engages any person to act as a lobbyist as defined in § 42-139-2

shall, after the commencement of each annual session, 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.

(b) No person, corporation or association shall be allowed to cause the name of the

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

register of the office of the secretary of state unless full compliance, if any required, of the

provisions of this chapter have been met for the prior calendar year.

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) 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, and all campaign contributions in excess of one

hundred dollars ($100) or more to state and municipal elected officials and state political action

committees. The report shall include 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.

(b) 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 or if earlier, after

the termination of the lobbyist's engagement, and shall include expenditures for the period from

January 1 through June 30, and July through December 31, respectively or, if earlier, through the

date of termination of the lobbyist's engagement.

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

shall be open for public inspection.

(d) 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

register or file reports or has filed an incomplete or inaccurate report; and the secretary may, for

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 § 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 this title. 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 § 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 § 42-139-8.

SECTION 3. Title 42 of the General Laws entitled "STATE AFFAIRS AND

GOVERNMENT" is hereby amended by adding thereto the following chapter:

CHAPTER 139.1

THE RHODE ISLAND LOBBYING REFORM ACT

42-139.1-1. Title. -- This chapter shall be known and may be cited as "The Rhode Island

Lobbying Reform Act."

42-139.1-2. Declaration of intent. -- (a) The preservation of responsible government

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

government officials and to express their opinions.

(b) Public confidence in the integrity of our government is strengthened by the

identification of those who seek to influence governmental actions and by the disclosure of funds

expended in that effort.

(c) The provisions of this chapter are intended to:

(1) Simplify and clarify the rules governing lobbying;

(2) Maximize transparency without imposing unnecessary burdens on the process;

(3) Promote a more user-friendly registration and reporting system; and

(4) Strengthen the investigation and enforcement scheme.

42-139.1-3. Definitions. -- (a) For the purposes of this chapter, the following definitions

apply:

(1) "Appointed" or "engaged" means receiving compensation from another for lobbying.

(2) "Compensation" means any remuneration or earnings received or to be received for

services rendered as a lobbyist, including any fee, salary, forbearance, forgiveness, or any other

form of recompense, and any combination of these, but does not include reimbursement for

incidental expenses.

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

promoting, opposing, amending, or influencing any action or inaction by any member of the

executive or legislative branch of state government or any public corporation.

(4) "Lobbying firm" means a business entity that receives compensation for lobbying.

(5) "Lobbyist" means any of the following:

(i) "Contract lobbyist" means any person who engages in lobbying as the appointed or

engaged representative of another person; or

(ii) "In-house lobbyist" means any employee, officer, director, or agent of a corporation,

partnership, or other business entity or organization whose job responsibilities include lobbying;

or

(iii) "Governmental lobbyist" means any employee of any federal, state, or local

government office or agency or any public corporation who engages in lobbying.

(6) "Money" and "anything of value" means any fee, salary, commission, expense

allowance, forbearance, forgiveness, royalty, rent, capital gain, gift, loan, reward, favor or

service, gratuity or special discount, or any other form of recompense that constitutes income

under the Federal Internal Revenue Code, but shall not include campaign contributions.

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

other group.

(8) "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, but which has a separate and distinct legal existence from the state,

and is not a department of the state.

(9) "Secretary" means the Rhode Island secretary of state.

(b) The following persons shall not be deemed "lobbyists" for purposes of this chapter:

(1) Licensed attorneys who:

(i) Represent a client in a contested administrative proceeding, a licensing or permitting

proceeding, or a disciplinary proceeding; and

(ii) Engage in any communications with an executive branch official or office if those

communications are incidental to the attorney's representation of their client rather than lobbying

activities as defined in this section.

(2) A qualified expert witness testifying in an administrative proceeding or legislative

hearing, either on behalf of an interested party or at the request of the agency or legislative body

or committee;

(3) Any member of the general assembly, general officer of the state, municipal elected

or appointed official, head of any executive department of state government, and/or head of any

public corporation, or a duly appointed designee of one of the foregoing offices acting in the

official capacity of said office, and any judge of this state acting in their official capacity;

(4) Persons participating in a governmental advisory committee or task force;

(5) Persons appearing on behalf of a business entity by which they are employed or

organization with which they are associated, if that person's regular duties do not include

lobbying or government relations;

(6) Persons appearing solely on their own behalf;

(7) Employees or agents of the news media who write, publish, or broadcast news items

or editorials which directly or indirectly promote or oppose any action or inaction by any member

or office of the executive or legislative branch of state government.

(8) Individuals participating in or attending a rally, protest, or other public assemblage

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

(9) Individuals participating in any proceeding pursuant to chapter 35 of this title;

(10) Individuals, other than employees or agents of the news media, involved in the

issuance and dissemination of any publication, including data, research, or analysis on public

policy issues that is available to the general public, including news media reports, editorials,

commentary, or advertisements; and

(11) Individuals responding to a request for information made by a state agency,

department, legislative body, or public corporation.

42-139.1-4. Registration and identification of lobbyists. -- (a) The secretary shall

maintain an online register of lobbyists. The online register shall be in a format, and shall contain

such information as the secretary may direct, and shall be maintained as a public document.

(b) Every lobbyist shall cause the following information to be entered into the online

register within seven (7) calendar days of any lobbying engagement and shall also register the

termination of such engagement.

(1) Name and address of the lobbyist(s);

(2) The legislation by bill number or by the subject matter(s) of the lobbying;

(3) The executive branch officials or public bodies to be lobbied;

(4) Compensation, except for those lobbyists employed by a lobbying firm;

(5) Any other information required by the secretary.

(c) No lobbyist shall be permitted to register if the lobbyist is not in compliance with the

provisions of this chapter, and any rules and regulations promulgated thereunder, for all prior

engagements.

(d) Subject to the seven-day (7) grace period in subsection (b), no person shall engage in

any lobbying unless and until that person is registered as provided herein.

(e) Governmental lobbyists, as defined in §42-139.1-3, shall be exempt from the

requirements of subsections (b)(2), (b)(3), (b)(4), and (b)(5).

(f) The secretary shall issue an identification badge to every person who registers as a

lobbyist, in a form prescribed by the secretary. Every lobbyist shall conspicuously display this

badge while engaged in any lobbying activity in a state government building. The badge shall

include the word ''lobbyist" in bold print as well as the name of the lobbyist and a lobbyist

registration number issued by the secretary.

42-139.1-5. Registration of persons engaging lobbyists or lobbying firms. -- (a) The

secretary shall maintain an online register of persons that engage the services of a lobbyist or

lobbying firm. The online register shall be in a format, and contain such information as the

secretary may direct, and shall be maintained as a public document.

(b) Every person engaging lobbyists or lobbying firms shall cause the following

information to be entered in the online register within seven (7) calendar days of any lobbying

engagement, and shall also register the termination of such engagement.

(1) The name and business address of the person engaging the lobbyist or lobbying firm;

(2) The name(s) of the lobbyist(s) or lobbying firm(s) employed;

(3) Total compensation paid to the lobbyist(s) or lobbying firm(s); and

(4) Any other information required by the secretary.

(c) No persons engaging a lobbyist or lobbying firm shall be permitted to register if the

person is not in compliance with the provisions of this chapter, and any rules and regulations

promulgated thereunder, for all prior engagements.

42-139.1-6. Lobbying reports -- Lobbyists. -- (a) Every registered lobbyist shall file

with the secretary a report listing, for the indicated reporting period, the following information

related to said lobbyist, together with all updates to said information upon each subsequent

applicable filing:

(1) All compensation that the lobbyist received for lobbying;

(2) The name(s) of the person(s) who paid the compensation;

(3) All expenditures made for the purpose of lobbying, other than routine office expenses;

(4) All money and anything of value provided or promised to any legislative or executive

branch official which in the aggregate exceeds two hundred fifty dollars ($250) in the current

calendar year;

(5) All campaign contributions in excess of one hundred dollars ($100) made to any

elected state official, candidate for state-level elected office, or political action committee;

(6) The legislation by bill number or by the subject matter(s) of the lobbying; and

(7) The executive branch officials or public bodies lobbied.

(b) All reports shall be submitted on a form prescribed by the secretary, and the reports

shall be maintained as public documents.

(c) Reports shall be filed by the fifteenth day of each of February, March, April, May,

June, and July for activity relating to the lobbyist's activity during the calendar month

immediately preceding each said filing, and upon any termination of the lobbyist's engagement.

Reports relating to the lobbyist's activity in July, August, September, October, November, and

December shall be filed on or prior to October fifteenth, and January fifteenth of each calendar

year for activity relating to the lobbyist's activity during the three (3) calendar months

immediately preceding each said filing, and upon any termination of the lobbyist's engagement.

(d) For purposes of this section, any in-house lobbyist shall disclose only that portion of

the compensation which represents a reasonable estimate of the percentage of the time spent by

the in-house lobbyist on lobbying activities.

(e) Governmental lobbyists shall be exempt from the reporting requirements of

subsection (a).

(f) For purposes of this section, any contract lobbyist who is employed by a firm,

corporation, partnership, or other entity shall disclose the total compensation paid to that entity,

but shall not be required by this section to disclose the percentage of said compensation paid to

individual partners, members, or employees.

42-139.1-7. Lobbying reports -- Persons engaging the services of lobbyists or

lobbying firms. -- (a) Every person who engages the services of a lobbyist or lobbying firm shall

file with the secretary a report listing, for the indicated reporting period, the following

information related to said person, together with all updates to said information upon each

subsequent applicable filing:

(1) All compensation paid to lobbyists and lobbying firms for purposes of lobbying;

(2) All expenditures made for the purpose of lobbying, other than routine office expenses;

(3) All money and anything of value provided or promised to any legislative or executive

branch official which in the aggregate exceeds two hundred fifty dollars ($250) in the current

calendar year.

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

reports shall be maintained as public documents.

(c) Reports shall be filed by the fifteenth day of each of February, March, April, May,

June, and July for activity relating to the lobbyist's activity during the calendar month

immediately preceding each said filing, and upon any termination of the lobbyist's engagement.

Reports relating to the lobbyist's activity in July, August, September, October, November, and

December shall be filed on or prior to October fifteenth, and January fifteenth of each calendar

year for activity relating to the lobbyist's activity during the three (3) calendar months

immediately preceding each said filing, and upon any termination of the lobbyist's engagement.

42-139.1-8. Contingent fee lobbying. -- No person shall pay or accept any compensation

for lobbying which is based in whole or in part on the degree to which such lobbying is or was

successful in influencing any government action.

42-139.1-9. Non-conforming reports – Failure to file -- Penalties. -- (a) The secretary

shall inspect the reports required by this chapter, and if it appears in the secretary's reasonable

discretion that any such report was not filed or does not conform to the provisions of this chapter,

the secretary shall notify that person in writing. If said person shall have failed within twenty (20)

calendar days after receipt of said notice to correct the non-conformance or file the report, the

secretary shall issue a show-cause order against the alleged violator requiring that person to

establish facts which show reasonable cause as to why applicable penalties should be waived. If

the alleged violator does not establish facts reasonably sufficient to show cause as to why

penalties should not be imposed, the secretary may impose a civil penalty of up to five thousand

dollars ($5,000) per violation, and may revoke the applicable registration for a period of up to

three (3) years; provided, however, that the secretary shall have the discretion to issue a first-time

offender a warning and directive to comply with the provisions of this act.

(b) Any penalty imposed by the secretary in accordance with this section shall be

appealable by the aggrieved party to the superior court pursuant to the provisions of chapter 35 of

this title.

(c) The secretary may refer the violation to the attorney general for prosecution under

§42-139.1-12.

42-139.1-10. Failure to register; Complaints. – (a) On the secretary's own motion or

the sworn complaint of any person under the pains and penalty of perjury, the secretary may

initiate a preliminary investigation into the activities of any person who has allegedly been

engaged in lobbying without registration or who may be in violation of any provision of this

chapter. The secretary shall notify any person who is the subject of the preliminary investigation

of the existence of the investigation and the general nature of the alleged violation within thirty

(30) calendar days of the commencement of such investigation.

(b) In connection with the preliminary investigation, the secretary may request the

production of books, papers, or other documents directly relating to services rendered, work

performed, or compensation received in connection with lobbying.

(c) If such information is not willingly provided to the secretary within twenty (20)

calendar days following said request, the secretary may file a complaint with the superior court

for such applicable relief as is reasonably required by the secretary to conduct the investigation.

Any such complaint shall contain:

(1) The identity of the complainant;

(2) A full and complete statement of the facts and circumstances relied upon to justify the

reasonable belief that the requested action or relief should be granted by the court, including:

(i) Details as to the particular designated offense that has been or is being committed; and

(ii) A copy of the initial request to the alleged violator for the production of books,

papers, or other documents directly relating to services rendered, work performed, or

compensation received in connection with the alleged lobbying activity;

(3) The court may require reasonable additional testimony or documentary evidence in

support of the requested relief;

(4) Upon the filing of the complaint, the court may enter an order for such relief,

including, without limitation, an ex parte order in the form requested or as modified in the court's

reasonable discretion.

(d) If the secretary's preliminary investigation fails to indicate probable cause relating to a

violation, the secretary shall immediately terminate the investigation; dismiss any applicable

complaint to the court; and notify the alleged violator in writing within twenty (20) calendar days.

For the purposes of this chapter "probable cause" means there are specific and articulable facts,

which, taken together, with rational inferences from those facts, indicate a violation has occurred.

(e) If the secretary's preliminary investigation indicates that there exists probable cause

relating to a violation, the secretary may petition the court for a declaratory judgment regarding

the suspected violation. The court may require the production of relevant documentary evidence

or testimony.

(f) If the court determines by the preponderance of the evidence that a violation of this

chapter has occurred, the secretary may further petition the court for appropriate relief, which

may include an order to pay a civil penalty of up to five thousand dollars ($5,000) per violation,

and revocation of the applicable registration for a period of up to three (3) years.

(g) The secretary may refer the violation to the attorney general for prosecution under

§42-139.1-12.

(h) Expressly excepting any records provided by the secretary to the attorney general for

use in a criminal proceeding or made a part of a complaint to the court, all records accumulated

by the secretary in conjunction with the secretary's investigation of an alleged violation shall be

considered confidential.

42-139.1-11. Duties and powers of the secretary. -- The secretary shall have the

authority to perform any duties that are necessary to implement the provisions of this chapter.

Without limiting the generality of the foregoing, the secretary is authorized and empowered to:

(1) Develop forms for the required lobbying reports.

(2) Develop a form of register for persons required to register pursuant to this chapter.

(3) Adopt rules and regulations to carry out the purposes of this chapter, including a

schedule of administrative penalties to be assessed for minor infractions, such as the failure to

timely file any of the reports required by this chapter.

(4) Collect fines and such assessed registration fees that the secretary deems appropriate.

(5) Prepare and publish educational materials relating to the provisions of this chapter,

including, at the secretary's discretion, an instructional link and training video available on the

secretary's website.

42-139.1-12. Penalties. -- Any person who knowingly and willfully violates the

provisions of this chapter shall, in addition to the civil penalties provided herein, be guilty of a

misdemeanor punishable by a fine of not more than one thousand dollars ($1,000) and/or

imprisonment for no longer than one year.

42-139.1-13. Severability. -- If any provision of this chapter is held to be invalid for any

reason, that invalidity shall not be construed to affect the validity of any other provisions in the

chapter.

SECTION 4. This act shall take effect on January 1, 2017.

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LC003762/SUB A

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