A BILL TO BE ENTITLED
AN ACT to clarify certain reporting requirements by lobbyist principals as recommended by the legislative ethics committee.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 120C‑100(a)(11k) is repealed.
SECTION 2.  G.S. 120C‑403(b) reads as rewritten:
"(b)	The report shall be filed whether or not reportable expenditures are made, shall be due 10 business days after the end of the reporting period, and shall include all of the following for the reporting period:
(1)	All reportable expenditures made for lobbying.
(2)	Solicitation of others when such solicitation involves an aggregate cost of more than three thousand dollars ($3,000).
(3)	With respect to each lobbyist registered under G.S. 120C‑206, payments made for lobbying to all lobbyists during the quarter. If a lobbyist is a full‑time employee of the principal, or is paid by means of an annual fee or retainer, the principal shall estimate and report the portion of the salary, fee, or retainer that is reasonably allocated for lobbying. A lobbyist principal may rely upon a statement by the lobbyist estimating the portion of the salary, fee, or retainer that is reasonably allocated for lobbying. When relying on a lobbyist's estimation of the portion of the salary, fee, or retainer reasonably allocated for lobbying, the principal is only required to report that portion allocated for the following: (i) communications and activities that constituted lobbying at the time the communications and activities occurred, and (ii) communications and activities that, at the time the communications and activities occurred, a reasonable person would foresee would be used for lobbying and that were used for lobbying. 
(4)	With respect to each lobbyist registered under G.S. 120C‑206, reportable expenditures reimbursed or paid to lobbyists for lobbying that are not reported on the lobbyist's report, with an itemized description of those reportable expenditures.
(5)	All reportable expenditures for gifts given under G.S. 138A‑32(e)(1)‑(9), 138A‑32(e)(11), 138A‑32(e)(12), and all gifts given under G.S. 138A‑32(e)(10) with a value of more than two hundred dollars ($200.00)."
SECTION 3.  G.S. 120C‑100(a)(10) reads as rewritten:
"(10)	Lobbyist. – An individual who engages in lobbying and meets any of the following criteria:
a.	Repealed by Session Laws 2007‑348, s. 8(a), effective October 10, 2007.
b.	Represents another person or governmental unit, but is not directly employed by that person or governmental unit, and  is paid by that person or governmental unit for lobbying on behalf of that person or governmental unit.
c.	Contracts for economic consideration for lobbying.
d.	Is employed by a person and a significant part of that employee's duties include lobbying. In no case shall an employee be considered a lobbyist if in no 30‑day period less than five percent (5%) of that employee's actual duties include engaging in lobbying as defined in subdivision (9)a. of this section or if in no 30‑day period less than five percent (5%) of that employee's actual duties include engaging in lobbying as defined in subdivision (9)b. of this section.
The term "lobbyist" shall not include individuals who are specifically exempted from this Chapter by G.S. 120C‑700 or registered as liaison personnel under Article 5 of this Chapter."
SECTION 4.  G.S. 120C‑300 reads as rewritten:
"§ 120C‑300. Contingency fees prohibited.
(a)	No individual shall act as a lobbyist and agree to receive payment for lobbying that is dependent upon the result or outcome of any legislative or executive action.
(b)	This section shall not apply to an individual doing business with the State who is engaged in sales with respect to that business with the State whose regular remuneration agreement includes commissions based on those sales. For purposes of this subsection, the term "regular remuneration" means any money, thing of value, or economic benefit conferred on or received by the individual in return for services rendered or to be rendered by that individual or another.
(c)	Any payment for lobbying made to a lobbyist in violation of this section is subject to forfeiture and shall be paid into the Civil Penalty and Forfeiture Fund."
SECTION 5.  Sections 1, 2, 3, and 4 of this act become effective January 1, 2007.  The remainder of this act is effective when it becomes law.