GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	1 

SENATE BILL 539

Short Title:  Lobbyist Disclosure.	(Public)

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Sponsors: Senators Miller; Ballantine, Blust, Forrester, Gulley, Jenkins, Kinnaird, Lucas, Martin of Guilford, and Odom.

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Referred to:  Commerce.

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March 27, 1997

A BILL TO BE ENTITLED
AN ACT TO REQUIRE MORE SPECIFIC DISCLOSURE OF LOBBYING.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 120-47.2 reads as rewritten:
"§ 120-47.2.  Registration procedure.
(a)	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 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; a statement of the general issue areas in which the registrant expects to engage in lobbying on behalf of each principal; and the name of every political committee of which each principal is a parent entity under the provisions of G.S. 163-278.19.
(c)	Each 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).  Each supplementary registration shall include a complete statement of the information that has changed. 
(d)	Within 20 days after the convening of each 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 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."
Section 2.  G.S. 120-47.6 reads as rewritten:
"§ 120-47.6.  Statements of lobbyist's lobbying expenses and lobbying activities required.
	(a)	Each lobbyist shall file an expense report and a report of lobbying activities with the Secretary of State with respect to each principal within 60 days after the last day of the regular session. 
(b)	The 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. 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 of twenty-five dollars ($25.00) or 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 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.
(b1)	The report of lobbying activities shall cover the period between January 1 and the last day of the regular session. The lobbyist shall file a supplemental report covering all lobbying activities engaged in 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 reports of lobbying activities, whether or not any lobbying occurred. The report of lobbying activities shall state the following:
(1)	A list of the specific issues upon which that lobbyist engaged in lobbying, including, to the maximum extent practicable, a list of the bill numbers; and
(2)	With regard to each specific issue, whether the lobbyist spent on that issue ten percent (10%) or more of the total time the lobbyist spent lobbying for the principal. For each issue on which the lobbyist spent approximately ten percent (10%) or more of the total time the lobbyist spent lobbying for the principal, the report shall further state the principal's position on the specific issue, including whether the principal supported or opposed specific legislation, identifying the legislation by bill number where possible, and any proposed amendments that the principal favored or opposed. The lobbyist may attach to the statement of lobbying activities a copy of correspondence or other documents setting forth the principal's position on the specific issue.
(c)	All reports shall be in the form prescribed by the Secretary of State and shall be open to public inspection. The Secretary of State may combine the expense report and the lobbying activities report on a single form, or place them on separate forms.
(d)	When a lobbyist fails to file a lobbying expense report or report of lobbying activities as required herein, the Secretary of State shall send a certified or registered letter advising the lobbyist of the delinquency and the penalties provided by law. Within 20 days of the receipt of the letter, the 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 a report in one of the manners prescribed herein shall result in revocation of any and all registrations of a lobbyist under this Article. No lobbyist may register or reregister under this Article until he has fully complied with this section."
Section 3.  G.S. 120-47.7 reads as rewritten:
"§ 120-47.7.  Statements by lobbyist's principal of lobbying expenses and of lobbying activities required.
(a)	Each lobbyist's principal shall file an expense report and a report of lobbying activities with the Secretary of State within 60 days after the last day of the regular session. 
(b)	The expense report shall include all expenditures made between January 1 and the last day of the regular session. The principal 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 principal shall file both expense reports whether or not expenditures are made. Each expense report shall set forth the 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 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), (6) contributions made, paid, incurred or promised, directly or indirectly, and (7) compensation to lobbyists in connection with their lobbying activities. It shall not be necessary to report expenditures of twenty-five dollars ($25.00) or 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 lobbyists 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.
(b1)	The report of lobbying activities shall cover the period between January 1 and the last day of the regular session. The principal shall file a supplemental report covering all lobbying activities engaged in 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 reports of lobbying activities, whether or not lobbying occurred. The report of lobbying activities shall state the following:
(1)	The name and address of each lobbyist employed, appointed, or retained by the principal;
(2)	A list of the specific issues upon which each lobbyist lobbied on behalf of the principal, including, to the maximum extent practicable, a list of the bill numbers; and
(3)	Of the total compensation the principal paid to each lobbyist during the reporting period, an approximate proportion of that total amount that was paid for lobbying each issue.
(b2)	The principal shall state in its report of lobbying activities the name of any political committee of which it is the parent entity under the provisions of G.S. 163-278.19.
(c)	All reports shall be in the form prescribed by the Secretary of State and open to public inspection. The Secretary of State may combine the expense report and the lobbying activities report on a single form, or place them on separate forms.
(d)	When a lobbyist's principal fails to file a lobbying expense report or a report of lobbying activities as required herein, the Secretary of State shall send a certified or registered letter advising the lobbyist's principal of the delinquency and the penalties provided by law. Within 20 days of the receipt of the letter, the 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."
Section 4.  This act becomes effective January 1, 1999.