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.