By: Anchia H.B. No. 2410

A BILL TO BE ENTITLED

AN ACT

relating to exceptions to the requirements that certain persons register under the lobby law.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 305.003, Government Code, is amended by adding Subsections (b-3), (d), and (e) to read as follows:

(b-3) Subsection (a)(2) does not require a person to register if the person spends not more than five percent of the time for which the person is compensated, reimbursed, or entitled to be compensated or reimbursed during the calendar quarter engaging in activity to communicate directly with a member of the legislative or executive branch to influence legislation or administrative action.

(d) A corporation, association, firm, partnership, committee, club, organization, or other group of persons is not required to register under this section if the expenditures made on behalf of the entity, and compensation paid to or promised to the entity, to communicate directly with a member of the legislative or executive branch to influence legislation or administrative action are reported by an individual who is a registrant in accordance with this chapter and rules of the commission.

(e) An expenditure made by a member of the judicial, legislative, or executive branch acting in the member's official capacity is not included for purposes of determining whether a person is required to register in accordance with Subsection (a)(1).

SECTION 2. Section 305.004, Government Code, is amended to read as follows:

Sec. 305.004. GENERAL EXCEPTIONS. The following persons are not required to register under this chapter:

(1) a person who owns, publishes, or is employed by a newspaper, any other regularly published periodical, a radio station, a television station, a wire service, or any other bona fide news medium that in the ordinary course of business disseminates news, letters to the editors, editorial or other comment, or paid advertisements that directly or indirectly oppose or promote legislation or administrative action, if the person does not engage in further or other activities that require registration under this chapter and does not represent another person in connection with influencing legislation or administrative action;

(2) [a person whose only direct communication with a member of the legislative or executive branch to influence legislation or administrative action is an appearance before or testimony to one or more members of the legislative or executive branch in a hearing conducted by or on behalf of either the legislative or the executive branch and who does not receive special or extra compensation for the appearance other than actual expenses incurred in attending the hearing;

[(3)] a person whose only activity is to encourage or solicit members, employees, or stockholders of an entity by whom the person is reimbursed, employed, or retained to communicate directly with members of the legislative or executive branch to influence legislation or administrative action;

(3) [(4)] a person whose only activity to influence legislation or administrative action is to compensate or reimburse an individual registrant to act in the person's behalf to communicate directly with a member of the legislative or executive branch to influence legislation or administrative action;

(4) [(5)] a person whose only activity to influence legislation or administrative action is attendance at a meeting or entertainment event attended by a member of the legislative or executive branch if the total cost of the meeting or entertainment event is paid by a business entity, union, or association;

(5) [(6)] a person whose only compensation subject to Section 305.003(a)(2) consists of reimbursement for any wages not earned due to attendance at a meeting or entertainment event, travel to and from the meeting or entertainment event, admission to the meeting or entertainment event, and any food and beverage consumed at the meeting or entertainment event if the meeting or entertainment event is attended by a member of the legislative or executive branch and if the total cost of the meeting or entertainment event is paid by a business entity, union, or association; and

(6) [(7)] a person who communicates directly with a member of the legislative or executive branch on behalf of a political party concerning legislation or administrative action, and whose expenditures and compensation, as described in Section 305.003, combined do not exceed $5,000 a calendar year.

SECTION 3. Subchapter A, Chapter 305, Government Code, is amended by adding Section 305.0041 to read as follows:

Sec. 305.0041. EXCEPTIONS FOR CERTAIN ACTIVITIES FOR WHICH COMPENSATION OR REIMBURSEMENT IS RECEIVED. (a) A person is not required to register under this chapter in accordance with Section 305.003(a)(2) solely because the person receives or is entitled to receive compensation or reimbursement to:

(1) request a written opinion that interprets a law, regulation, rule, policy, practice, or procedure administered by a state office or agency;

(2) merely provide, in preparing or submitting an application or other written document, information that:

(A) is required by law, rule, regulation, order, or subpoena; or

(B) responds to a document prepared by a state agency;

(3) communicate merely for the purpose of demonstrating compliance with an audit, inspection, examination of a financial institution, or government investigation to interpret and determine compliance with existing laws, rules, policies, and procedures;

(4) communicate to achieve compliance with existing laws, rules, policies, and procedures, including communicating to show qualification for an exception of general applicability that is available under existing laws, rules, policies, and procedures;

(5) communicate as a member of an advisory committee or task force, if the person is appointed to serve in that capacity by a member of the legislative or executive branch;

(6) communicate to respond to a specific request for information from a member of the legislative or executive branch, if the request was not solicited by or on behalf of the person providing the information;

(7) communicate to legal counsel of a state agency, an administrative law judge, or a hearings examiner concerning:

(A) litigation or adjudicative proceedings to which the agency is a party; or

(B) adjudicative proceedings of that agency;

(8) communicate to provide testimony, make an appearance, or make any other type of communication documented as part of a public record in a proceeding of an adjudicative nature of the type authorized by or subject to Chapter 2001, without regard to whether that proceeding is subject to Chapter 551;

(9) provide oral or written comments, making an appearance, or any other type of communication, if documented as part of a public record in an agency's rule-making proceeding under the Administrative Procedure Act, Government Code, Chapter 2001, or in public records kept in connection with a legislative hearing;

(10) provide only clerical assistance to another in connection with the other person's activities that require registration under this chapter, such as merely typing or delivering another person's letter to a member of the legislative or executive branch;

(11) communicate to a member of the executive branch concerning state agency purchasing decisions of a product, or negotiations regarding such decisions if the compensation for the communication is not totally or partially contingent on the outcome of any administrative action; or

(12) perform any combination of activities described by Subdivisions (1)-(11).

(b) A registrant who performs an activity described by Subsection (a) is not required to provide information concerning the activity in the registrant's registration statement under Section 305.005(f)(4) or (5)(B).

(c) A registrant who performs an activity described by Subsection (a) is not required to provide information concerning the person who reimburses, retains, or employs the registrant to perform that activity under Section 305.005(f)(3) or (6) unless the registrant performs, on behalf of that person, other activities that require registration under this chapter.

(d) A registrant who performs an activity described by Subsection (a) is not required to provide information concerning a person employed or retained by the registrant for the purpose of assisting in that activity under Section 305.005(f)(5)(A), unless the person is also employed or retained by the registrant to assist with other activities that require registration under this chapter.

SECTION 4. Amend Section 305.022 as follows:

Sec. 305.022. CONTINGENT FEES. (a) A person may not retain or employ another person to influence legislation or administrative action for compensation that is totally or partially contingent on the passage or defeat of any legislation, the governor's approval or veto of any legislation, or the outcome of any administrative action.

(b) A person may not accept any employment or render any service to influence legislation or administrative action for compensation contingent on the passage or defeat of any legislation, the governor's approval or veto of any legislation, or the outcome of any administrative action.

(c) For purposes of this chapter [section], a sales commission payable to an employee of a vendor of a product is not considered compensation contingent on the outcome of administrative action.

(d) For purposes of this chapter, a sales commission payable to an independent contractor of a vendor of a product is not considered compensation contingent on the outcome of an administrative action if the independent contractor is a registrant who reports the vendor as a client under this chapter and reports the full amount of the contingent fee in the manner required by commission rule.

(e) [(d)] This section does not prohibit the payment or acceptance of contingent fees:

(1) expressly authorized by other law; or

(2) for legal representation before state administrative agencies in contested hearings or similar adversarial proceedings prescribed by law or administrative rules.

SECTION 5. Section 403.1067(b), Government Code, is amended to read as follows:

(b) Except as provided by this subsection, the [The] persons or entities described by Subsection (a) are not eligible to receive the money or participate either directly or indirectly in the contracts, funds, or grants awarded in Section 403.105, 403.1055, 403.106, 403.1065, or 403.1066. A registrant under Chapter 305 is not ineligible under this subsection if the person is required to register under that chapter solely because the person communicates directly with a member of the executive branch to influence administrative action concerning a matter relating to the purchase of products by a state agency.

SECTION 6. Section 161.301, Health and Safety Code, is amended by amending Subsection (d) and adding Subsection (f) to read as follows:

(d) The commissioner may not award a contract under Subsection (b) to:

(1) a person or entity that is required to register with the Texas Ethics Commission under Chapter 305, Government Code, except as provided by Subsection (f);

(2) any partner, employee, employer, relative, contractor, consultant, or related entity of a person or entity described by Subdivision (1) and not described by Subsection (f); or

(3) a person or entity who has been hired to represent associations or other entities for the purpose of affecting the outcome of legislation, agency rules, or other government policies through grassroots or media campaigns.

(f) A registrant under Chapter 305, Government Code, is not ineligible under Subsections (d) and (e) if the person is required to register under that chapter solely because the person communicates directly with a member of the executive branch to influence administrative action concerning a matter relating to the purchase of products by a state agency.

SECTION 7. A person who is required to register under Chapter 305, Government Code, solely as a result of the change in law made by this Act is not required to register under that chapter before January 1, 2010.

SECTION 8. This Act takes effect September 1, 2009.