S.F. No. 10 - Public Right to Know
Author:	Senator John Marty
Prepared by:	Peter S. Wattson, Senate Counsel (651/296-3812)
Date:	May 7, 2003

Section 1 changes the threshold compensation for becoming an "associated business" (which public officials are required to disclose on the statements of economic interest they file with the Board of Campaign Finance and Public Disclosure) from $50 a month to $500 a year. It also amends the definition of "associated business" to include independent contractors and consultants who provide services to a lobbyist or lobbyist principal. An independent contractor or consultant who is employed by a firm to provide services to the firm's clients would be required to list both the firm and the clients of the firm who are lobbyists or principals to whom the public official had provided services.

Section 2 amends the definition of "lobbyist" to strike the count of the number of hours spent lobbying and instead include only individuals who are paid more than $5,000 a year to lobby or who spend more than $250 a year to lobby. An employee of a public higher education system who is paid more than $2,000 a year to lobby and who spends more than 50 hours in any month lobbying would be a "lobbyist." It clarifies that an individual who volunteers personal time to work without pay or other consideration on a lobbying campaign, and who does not spend more than $250 a year, other than for traveling expenses and membership dues, to lobby need not register as a lobbyist. It also clarifies that an individual who provides administrative support to a lobbyist and whose salary and administrative expenses attributable to lobbying activities are reported as lobbying expenses by the lobbyist, but who does not communicate or urge others to communicate with public or local officials, need not register as a lobbyist.

Section 3 amends the definition of "principal" to include political subdivisions and public systems of higher education. The effect of this change is to require these entities to report the amounts they spend on lobbying activities and to prohibit them from making gifts to public officials.

Section 4 requires lobbyists to report each year a general description of the subjects upon which they lobbied and the amount received from the lobbyist's principal, rounded to the nearest $10,000. It eliminates the requirement that a lobbyist report on gifts made to officials by the lobbyist's employer or employee, and substitutes a requirement that the lobbyist report on gifts made to officials at the direction of the lobbyist. It also requires lobbyists to report the contributions of $50 or more they have made to candidates and contributions of any amount they have made to party caucuses in the Legislature.

Section 5 imposes on lobbyist principals the same penalties for failure to file principal reports as are now incurred by lobbyists for failure to file lobbyist reports.

Section 6 changes the reporting required of lobbyist principals each year so that instead of reporting the amount spent by the principal during the preceding calendar year rounded to the nearest $20,000, the principal is required to report the total amount spent. The report must list separately the amount spent to influence legislative action, the amount spent to influence administrative action, and the amount spent to influence the official action of metropolitan governmental units. This total amount must include salaries and administrative expenses of the lobbyists engaged by the principal.

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