By: Anchia H.B. No. 3445
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  Relating to requirements governing the registration of lobbyists
  and authorized activities of certain registrants.
         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.