Relates to the registration fees for certain lobbying entities; repealer

Summary of provisions

This bill would:

* Amend the definition of lobbying to include:

1. efforts to influence the adoption or terms of an executive order;

2. efforts to influence the action or determination of a public official including any person or entity working in cooperation with the official related to the award or denial of any contract or other agreement, including but not limited to those for the procurement of goods, commodities, services, construction, public works, or the purchase, sale, or lease of real property or any interest in real property, any revenue contract or any other similar transaction;

3. efforts related to the approval or the implementation and administration of tribal-state compacts, memoranda of understanding, or any other tribal-state agreement and any state actions relating to class III gaming except to the extent barred by federal law;

4. efforts to influence the action or determination of any municipal officer including any person or entity working in cooperation with the officer related to the award or denial of any contract or other agreement, including but not limited to those for the procurement of goods, commodities, services, construction, public works, or the purchase, sale, or lease of real property or any interest in real property, any revenue contract or any other similar transaction; and

5. efforts to influence the implementation of rules and regulations;

* Provide the following exemptions from the definition of lobbying:

1. any activity relating to procurements made in accordance with section 162 of the State Finance Law (preferred source contracts);

2. participation by a potential bidder or their representative in a publicly noticed bid conference;

3. action taken by persons who have been tentatively awarded a contract, or their representatives, who are communicating with an agency or municipality to negotiate the contract;

4. participation in a bid protest or a request for a bid review;

5. submission of bid proposals;

6. communication with a designated agency or municipal contact person regarding a request for bid or proposal; and

7. applications for licenses, certificates, and permits authorized by other statutes;

* Raise the threshold of allowable expenditures and compensation at which lobbyist registration is required from $2,000 to $5,000 annually, beginning in 2006;

* Provide that the lobbying compensation threshold may be computed separately for state and municipal lobbying efforts;

* Require that lobbyists must disclose in all activity reports the title of any contracts, and the identifying numbers of any contracts, bids, request for proposals, or invitation for bids that they have lobbied or expect to lobby on;

* Make advisory opinions of the commission binding with respect to the person(s) to whom they are rendered;

* Prohibit payments that are contingent upon the adoption or terms of an executive order, the acceptance of a bid or contract by any agency or municipal official, or any other procurement related decision, action or determination "regarding the procurement of goods, commodities or services by an agency or municipal official;

* Define "restricted period" during which contacts regarding the procurement are restricted;

* Define "revenue contract";

* Outline a procedure for "complaints regarding the procurement process;

* Establish penalties for knowing and willful violation of the restricted period parameters;

* Subject any proceeding or hearing conducted pursuant to the Lobbying Act to the State Administrative Procedure Act and Article 73 of the Civil Rights Law.

* Create an advisory council on procurement lobbying which shall provide advice to the commission with respect to the implementation of procurement lobbying provisions. The council shall also report annually to the legislature as to the effectiveness of the provisions and make recommendations on increasing effectiveness.

Justification

The majority of procurement contracts entered into by the state are subject to the rules of the competitive bidding process. However, that does not prevent individuals from attempting to influence agency or municipal officials when seeking a favorable decision on a submitted bid, or in the way that the request for bids is issued. By

including government procurement and executive orders in the lobbying law, and prohibiting contingency payment for this type of lobbying, the State is instituting a strong protection of integrity of the procurement process. In addition, the way in which regulations are implemented can benefit groups, which in turn can prompt intense lobbying efforts. The public should know when groups and individuals attempt to go around the public process and influence decisions through informal mechanisms.

The public concern really focuses on intensive and expensive efforts to redirect the making of public policy. The threshold for lobbying needs to be raised so that ordinary citizens' communications with government in the ordinary course of business are not captured in the definition of "lobbying."

Additionally, those subject to the provisions of the Lobbying Act will be assured of fair procedures in any proceeding pursuant thereto.

Legislative history

2008: A.8241 (Kavanagh) - Governmental Operations 2007: A.8241 (Kavanagh) - Governmental Operations of 2007 2009-2010: S.4527/A.649 (Kavanagh)

Fiscal impact on the state

None.

Effective date

This act shall take effect immediately; provided, however, that section one of this act shall take effect on the first of January next succeeding the date on which this act shall have become a law.