Lobbying Disclosure Information Manual by dal93033

VIEWS: 116 PAGES: 85

									Lobbying
Disclosure
Information
Manual




California Fair Political 

Practices Commission 

Toll-free advice line: 1 (866) ASK-FPPC
Web site: www.fppc.ca.gov

                                          July 2005
Contents
                                                                            Contents




Introduction	                                                                           Intro-1

Chapter 1—Who Must File?
                                                               1-1

Chapter 2—When and Where to File	                                                       2-1


Chapter 3—Certification and Registration	                                               3-1

  Name Identification Requirements 	                                                    3-1

  Registration and Certification Statements
  -	 Lobbyist Certification Statement, Form 604                                         3-2 

  - Lobbying Firm Registration Statement, Form 601 	                                    3-4 

  - Lobbying Firm Activity Authorization, Form 602 	                                    3-6 

  -	 Lobbyist Employer and Lobbying Coalition Registration Statement,

     Form 603                                                                           3-7

  - Amendment to Registration, Form 605                                                 3-8

  - Notice of Termination, Form 606                                                     3-10

  - Notice of Withdrawal, Form 607                                                      3-10


Chapter 4—Gifts and Other Activity Expenses 	                                           4-1


Chapter 5—Quarterly Disclosure Reports	                                                 5-1

  General Guidelines                                                                    5-1

  Lobbyist Report, Form 615                                                             5-4 

  Report of Lobbying Firm, Form 625                                                     5-5 

  Report of Lobbyist Employer and Report of Lobbying Coalition, Form 635                5-7 

  Governmental Agencies Reporting of “Other Payments to Influence 

   Legislative or Administrative Action,” Form 640                                      5-11

  Payments Received by Lobbying Coalitions, Form 635-C                                  5-13 

  Payments Made to Lobbying Coalitions, Form 630                                        5-13 

  Person Spending $5,000 or More to Influence Legislative or

   Administrative Action, Form 645                                                      5-14

  Amendment to Lobbying Disclosure Report, Form 690                                     5-14


Chapter 6—Recordkeeping 	                                                               6-1


Chapter 7—Restrictions	                                                                 7-1


Appendix 1—Definitions	                                                           Appendix-1

Appendix 2—About the Political Reform Act/How to Get Help	                       Appendix-2




Fair Political Practices Commission      Contents-1	                     Lobbying Manual, 7/2005
                                                                                  1-866-ASK-FPPC




Introduction 
                                                                          Introduction




California’s Political Reform Act (the “Act”)          FPPC employees are available Monday
requires that lobbying disclosure reports, as          through Friday to help you. In addition, the
described in this manual, provide the public           FPPC website contains forms, manuals, and
with the identity of persons who make                  a wealth of other helpful information. (See
payments for the purpose of influencing the            Appendix 2 for more information.)
actions of the California State Legislature,
the actions of the Governor in approving or            How to Use this Manual
vetoing legislation, and quasi-legislative
                                                       This manual has been prepared to assist
actions of California state agencies, including
                                                       lobbyists, lobbying firms, lobbyist employers,
the Governor’s office.
                                                       lobbying coalitions, and $5,000 filers to
This manual provides important information             comply with the Act’s numerous and often
on lobbying disclosure rules for five types of         detailed rules. The manual is written in a
filers:                                                “user friendly” format so that filers may have
                                                       a resource guide. It is organized by subject
• Lobbyists;
                                                       matter and addresses the most common
• Lobbying Firms;                                      issues of lobbying disclosure.
• Lobbyist Employers;
• Lobbying Coalitions; and                             Lobbying Forms
                                                       The following is a list of lobbying disclosure
• $5,000 Filers.
                                                       forms. Each form may be found under
                                                       “Forms” on the Commission’s website or, if
Terminology                                            you are viewing this online, simply click on a
It may be helpful to review Appendix 1 in this         specific form name or number.
manual to become familiar with the different
terms used throughout this manual.                     601 – Lobbying Firm Registration
                                                       Statement
Controlling Law                                        The registration statement is used by
This manual summarizes key lobbying                    business entities (including individual
                                                       contract lobbyists) that engage in lobbying
disclosure laws, regulations and Commission
                                                       activity on behalf of any other person.
opinions, and draws from years of FPPC staff
advice on complying with the provisions of the
                                                       602 – Lobbying Firm Activity Authorization
Act. If there are any discrepancies between
the manual and the Act or its corresponding            The authorization statement is used by
regulations and opinions, the Act and its              persons that employ or contract with a
regulations and opinions will control.                 lobbying firm. This form is filed with the
                                                       lobbying firm’s registration statement, Form
                                                       601, or with an amendment to a lobbying
Need Help?                                             firm’s registration statement, Form 605, when
If you need assistance, the Fair Political             the lobbying firm is adding a client.
Practices Commission has a toll-free advice
line:                                                  603 – Lobbyist Employer or Lobbying
                                                       Coalition Registration Statement
1-866-ASK-FPPC
(1-866-275-3772)                                       The registration statement is used by persons
                                                       who employ one or more in-house lobbyists.

Fair Political Practices Commission              Intro-1                        Lobbying Manual, 7/2005
Introduction

604 – Lobbyist Certification Statement               635 – Report of Lobbyist Employer and
The certification statement is used by               Report of Lobbying Coalition
individuals who qualify as lobbyists, including      Used by lobbyist employers/lobbying
individual contract lobbyists.                       coalitions to disclose legislative or
                                                     administrative action the employer/coalition
605 – Amendment to Registration –                    attempted to influence, and payments made
Lobbying Firm, Lobbyist Employer, and                in connection with influencing legislative or
Lobbying Coalition                                   administrative action.
The amendment form is used to amend
registration forms filed by lobbying firms,          635-C – Attachment Form 635-C –
Form 601, and lobbyist employers/lobbying            Payments Received by Lobbying
coalitions, Form 603.                                Coalition
                                                     Used by lobbying coalitions to disclose
606 – Notice of Termination                          payments received from members of the
Used by lobbyists, lobbying firms, and               coalition.
lobbyist employers/lobbying coalitions that,
during a legislative session, cease all              640 – Attachment Form 640 –
lobbying activity.                                   Governmental Agencies Reporting of
                                                     “Other Payments to Influence Legislative
607 – Notice of Withdrawal                           or Administrative Action”
Used by a lobbyist or lobbying firm that filed       Used by state and local government
a certification or registration statement,           agencies that qualify as lobbyist employers/
respectively, but never qualified as a lobbyist      lobbying coalitions or $5,000 filers to disclose
or a lobbying firm.                                  certain payments of $250 or more under
                                                     “Other Payments to Influence Legislative or
615 – Lobbyist Report                                Administrative Action.”
Used by lobbyists (including contract                645 – Report of Person Spending $5,000
lobbyists) to disclose payments made in              or More to Influence Legislative or
connection with influencing legislative or           Administrative Action
administrative action.
                                                     Used by persons who do not employ a
625 – Report of Lobbying Firm                        lobbyist or contract with a lobbying firm but
                                                     who make payments to influence legislative
Used by lobbying firms (including contract           or administrative action (including payments
lobbyists) to disclose legislative or                to a lobbying coalition) totaling $5,000 or
administrative action the lobbying firm              more in a calendar quarter.
attempted to influence, and payments made
and received in connection with influencing          690 – Amendment to Lobbying Disclosure
legislative or administrative action.                Report
630 – Attachment Form 630 – Payments                 Used to amend a lobbying disclosure report
Made to Lobbying Coalitions                          (e.g., Form 615, Form 625, Form 630, Form
                                                     635, Form 635-C, Form 640, and Form 645).
Used by lobbying firms and lobbyist
employers to disclose payments to a
lobbying coalition.



Fair Political Practices Commission            Intro-2                         Lobbying Manual, 7/2005
                                                                                      1-866-ASK-FPPC



Chapter 1                                                                 Chapter 1 — Who Must File

Who Must File

This chapter identifies persons that are                   by the individual, the individual’s employer,
required to disclose lobbying activity. This               or by a bona fide trade association or
chapter begins with a review of important                  membership organization of which the
definitions that are used to determine                     individual or individual’s employer is a
whether a person must file lobbying reports.               member.
The qualifications that must be met for each
type of lobbying filer are provided along with             Administrative Testimony
“user friendly” examples. Because not every
                                                           “Administrative testimony” means influencing
person that communicates with state officials
                                                           or attempting to influence administrative
must file, common exceptions are also
                                                           action by acting as counsel in, appearing as
provided.
                                                           a witness in, or providing written
                                                           submissions, including answers to inquiries,
General Definitions                                        which become part of the record of:
The following definitions describe what is
                                                           •	 Any regulatory or administrative agency
commonly referred to as “lobbying” and
                                                              proceeding that is conducted as an open
provide guidance later in this chapter when
                                                              public hearing for which public notice is
the terms “lobbyist,” “lobbying firm,” “lobbyist
                                                              given, of which a record is created in a
employer/coalition,” and “$5,000 filer” are
                                                              manner that makes possible the creation
discussed. (See Appendix 1 for other
                                                              of a transcript, and with respect to which
definitions.)
                                                              full public access is provided to such
                                                              record or transcript and to all written
Direct Communication                                          material that is submitted to become part
An individual engages in “direct                              of the record.
communication” when he or she appears as                   •	 Certain proceedings of the California
a witness before, talks to (either by                         Public Utilities Commission. (See
telephone or in person), corresponds with, or                 Appendix 1.)
answers questions or inquiries from, any
qualifying official, either personally or through          An individual does not count compensation
an agent who acts under the individual’s                   for or time spent preparing and presenting
direct supervision, control, or direction.                 administrative testimony in applying the time
“Direct communication” does not include any                or compensation tests for qualifying as a
request for or provision of purely technical               lobbyist.
data or analyses to an administrative agency
by a person who does not otherwise engage                  Influencing Legislative or
in direct communication for the purpose of                 Administrative Action
influencing legislative or administrative
                                                           “Influencing legislative or administrative
action.
                                                           action” means communicating directly or
Additionally, an individual does not engage in             taking any other action for the principal
“direct communication” when he or she                      purpose of supporting, promoting,
meets or speaks with a qualifying official in              influencing, modifying, opposing, delaying, or
the company of a registered lobbyist retained              advancing any legislative or administrative


Fair Political Practices Commission                 1-1	                            Lobbying Manual, 7/2005
Chapter 1 — Who Must File

action. “Legislative action” means the                    Q. The Department of Housing and
drafting, introduction, consideration,                       Community Development has just
modification, enactment, or defeat of any bill,              requested proposals from building
amendment, report, nomination, or other                      contractors to provide a number of low-
matter by the Legislature. “Legislative                      and moderate-income housing units
action” also means the action of the                         throughout the state. We would like to
Governor in approving or vetoing any bill.                   bid on the contract. Since we are trying
“Administrative action” means the proposal,                  to influence the decisions of an
drafting, development, consideration,                        administrative agency, are we engaged in
amendment, enactment, or defeat by any                       lobbying?
state agency of any rule or regulation. It also
                                                          A.	 No. While the Department is an
includes actions in certain ratemaking
                                                              administrative agency, awarding a
proceedings and quasi-legislative proceedings.
                                                              contract is not considered administrative
                                                              action. Therefore, bidding on the
QuickTIP If you are trying to obtain a permit,
                                                              contract is not lobbying.
         license, grant, or contract at a state
agency, you are not trying to influence                   Q. We are supporting an Indian gaming
legislative or administrative action and your                compact. To do so, we will contact the
time and contacts are not counted as lobbying.               Governor’s office and discuss why we
                                                             think the Governor should sign the
QuickTIP Although only direct communication                  compact. Is this lobbying?
         is counted for purposes of qualifying

                                                          A.	 Yes. The Commission has determined
as a lobbyist or lobbying firm, once an

                                                              that Indian gaming compacts are
individual or entity qualifies as a lobbyist or

                                                              administrative actions, and the
lobbying firm, other types of lobbying 

                                                              Governor’s office is an administrative
expenses, such as payments for

                                                              agency for this purpose. Therefore,
administrative testimony, are reportable.

                                                              attempting to influence the Governor
This is further discussed in Chapter 5.

                                                              concerning these compacts qualifies as
                                                              lobbying.
Questions and Answers
Q. I work for a public relations firm. On
   behalf of a client, I attend meetings and              Lobbyists
   participate in discussions with legislators            A lobbyist is an individual who:
   about the client’s positions on legislative
   issues and am accompanied by the                          is compensated (other than
   client’s contract lobbyist. Must I count                  reimbursement for reasonable travel
   the time at these meetings toward                         expenses) for directly communicating
   qualifying as a lobbyist?                                 with a qualifying official (other than
                                                             administrative testimony) when trying to
A.	 Yes. You are engaging in “direct                         influence legislative or administrative
    communication.” Although you are                         action (such as bills and regulations).
    accompanied by the client’s lobbyist, the
    exception for engaging in direct
                                                          Not everyone who is paid to lobby will qualify
    communication in the presence of a
                                                          as a lobbyist. There are two tests to make
    lobbyist only applies to the client,
                                                          this determination: a time test for “in-house
    employees of the client, or, when the
                                                          lobbyists” and a compensation test for
    client is an association, members of the
                                                          “contract lobbyists.”
    association.

Fair Political Practices Commission                1-2	                            Lobbying Manual, 7/2005
                                                                           Chapter 1 — Who Must File

Generally, a lobbyist is categorized as either             May, Maya spends one-third of her
an “in-house lobbyist” or a “contract lobbyist.”           compensated time testifying at legislative
                                                           hearings, and speaking on the telephone
    In-House Lobbyists – These individuals
                                                           with legislative and agency officials
    lobby on behalf of their employer only;
                                                           concerning several legislative bills and state
    they are compensated for their time; and
                                                           agency regulations. Maya qualifies as an in-
    they spend at least one-third of that time
                                                           house lobbyist and must prepare a lobbyist
    in a calendar month in direct
                                                           certification and file quarterly reports. In
    communication with qualifying officials.
                                                           addition, EAB Corporation must register and
    Contract Lobbyists – These individuals                 file quarterly reports as a lobbyist employer.
    lobby for someone other than their
    employer and receive or are entitled to
    receive $2,000 in a calendar month for                 Who is Not a Lobbyist?
    direct communication with qualifying                   •	 An individual who lobbies on a voluntary
    officials.                                                (unpaid) basis.
                                                           •	 An individual who only receives
Examples     Gail Perrywinkle is a partner with
                                                              reimbursement for reasonable travel
             the CJW Law Firm. Gail lobbies
                                                              expenses.
bills on behalf of several clients. She
frequently engages in direct communication                 •	 A state agency employee or a consultant
with various legislators and their staff. During              designated in a state agency’s conflict of
January, she receives a draw of $4,200,                       interest code who acts within the scope of
$2,000 of which is attributable to direct                     his or her duties or contract. However,
communication. Gail qualifies as a contract                   such individuals are subject to the $10 per
lobbyist under the “compensation test” and                    month gift limit. (See Chapter 4.)
must prepare a lobbyist certification and file             •	 An individual representing a bona fide
quarterly reports. In addition, CJW must                      church or religious society solely for the
register and file quarterly reports as a lobbying             purpose of protecting the public’s right to
firm. Any client that authorizes the CJW Law                  practice the doctrines of that church.
Firm to lobby must also sign authorization
forms and file quarterly reports as lobbyist               •	 An individual representing a newspaper or
employers, regardless of the amount they pay.                 other periodical of general circulation,
                                                              book publisher, or radio or television
During the month of February, Joey Nelson,                    station that, in the ordinary course of
an independent contractor, receives $1,500                    business, publishes or airs items urging
from the Spanky Corporation and $700 from                     legislative or administrative action. This
the Association of Statistical Engineers to                   exception does not apply when the
lobby on their behalf. Joey qualifies as a                    newspaper, book publisher, or station
contract lobbyist. The compensation test                      engages in any additional activities in
does not require receipt of $2,000 from a                     connection with influencing legislative or
single client. Joey must prepare a lobbyist                   administrative action.
certification and file quarterly reports. As an
                                                           •	 An individual who only lobbies federal,
independent contractor, his business must
                                                              county, multi-county (e.g., BART), local
also file as a lobbying firm. Spanky and ASE
                                                              special districts, or city government
must also sign authorization forms and file
                                                              agencies.
quarterly reports as lobbyist employers.
                                                           •	 An individual who only engages in
Maya Brittletown is the Legislative Affairs
                                                              activities to secure a grant, contract, or
Coordinator of the EAB Corporation. During

Fair Political Practices Commission                 1-3	                             Lobbying Manual, 7/2005
Chapter 1 — Who Must File

   permit from a state administrative agency               Questions and Answers
   and does not otherwise attempt to
                                                           Q. Is compensation for travel time and
   influence legislative or administrative
                                                              preparation work for the purpose of
   action.
                                                              influencing legislative or administrative
     Example     MBI Corporation hired Norman                 action counted for purposes of
                 Nickels for the sole purpose of              determining whether an individual
   securing a contract with the Department of                 qualifies as a lobbyist?
   General Services to provide computer
   services. Norman is not subject to either               A.	 Only the compensation (e.g., salary) an
   the compensation or time tests because                      individual receives while engaging in
   such activity is not considered “influencing                direct communication is counted to
   legislative or administrative action.”                      determine if an individual qualifies as a
                                                               lobbyist. Payments for travel and
•	 An individual who engages only in                           preparation time, and for actual travel
   administrative testimony.                                   expenses (e.g., airline tickets), do not
                                                               count.
    Examples
                 Attorney Sally Hooperfield
                 receives $2,500 for appearing             Q. Once an individual qualifies as a lobbyist,
   before the State Clean Air Advisory Board                  are travel expenses incurred for the
   and providing expert testimony that                        purpose of influencing legislative or
   becomes a part of the agency’s record.                     administrative action reportable?
   The meeting is transcribed and is                       A.	 Yes, these and other expenses are
   conducted as an open public hearing for                     reportable once an individual has
   which public notice is given. Sally is not a                qualified as a lobbyist. (See Chapter 5.)
   lobbyist if her activities are limited to
   administrative testimony.
   Preston Kamen is the general counsel for                Lobbying Firms (including
   the Dorsey Corporation. During the month                individual contract lobbyists)
   of February, he spends one-third of his                 A lobbying firm is:
   compensated time providing
   administrative testimony at 10 state                       an individual (other than an in-house
   agency public hearings, he also spends                     lobbyist) or a business entity that is
   one-fourth of his time meeting with                        compensated (other than
   legislators. Since Preston’s administrative                reimbursement for reasonable travel
   testimony does not count toward the                        expenses) for directly communicating
   compensated “time” test, he does not                       with a qualifying official (other than
   qualify as a lobbyist.                                     administrative testimony) when trying to
                                                              influence legislative or administrative
•	 An elected public official acting in an                    action (such as bills and regulations).
   official capacity.
                                                           An individual may qualify as a lobbying firm
                 Mayor Betty Rock                          in two ways:
     Example
                 communicates with                         --	 The individual is a lobbyist compensated
   legislators requesting their support of a bill              for lobbying on behalf of someone other
   affecting her city. Mayor Rock is not a                     than the individual’s employer (such as
   lobbyist because she is acting within her                   independent contractors); or
   official capacity as Mayor.


Fair Political Practices Commission                 1-4	                            Lobbying Manual, 7/2005
                                                                         Chapter 1 — Who Must File

--	 The individual is a lobbyist compensated             Questions and Answers
    for lobbying on behalf of the individual’s
                                                         Q. Will an entity qualify as a lobbying firm if,
    employer AND someone else.
                                                            in a calendar quarter, the entity receives
                                                            $4,500 from a client for testifying before a
 Examples    Robert Rogers is an in-house
                                                            hearing of the State Legislature and $600
             lobbyist for the Association of
                                                            for travel expenses?
International Tin Roofers. During the third
quarter of the calendar year, the Dome                   A.	 No. Because payments for reasonable
Corporation pays Robert to lobby a bill on its               travel expenses do not count toward
behalf. Robert, though still an employee of                  qualification as a lobbying firm, the firm
the Association of International Tin Roofers,                has not met the qualifying threshold of
must register as an individual contract                      $5,000.
lobbyist (lobbying firm) by filing Form 601
and an amended Form 604 and disclose on
his Form 625 quarterly reports the payments              Lobbyist Employers
received from the Dome Corporation and his               A lobbyist employer is any individual,
compensation for lobbying services provided              business entity, association, local
on behalf of his employer, the Association of            government agency, or other organization,
International Tin Roofers. The Association               other than a lobbying firm, that:
must file an Amendment, Form 605, deleting
                                                         --	 directly employs an in-house lobbyist to
him as an in-house lobbyist, and complete an
                                                             influence or attempt to influence
Authorization Form, Form 602.
                                                             legislative or administrative action; or
Megan Moen was a lobbyist for
                                                         --	 retains a lobbying firm to engage in direct
Communications, Inc., a lobbying firm. She
                                                             communication for the purpose of
left to work as a lobbyist for another lobbying
                                                             influencing or attempting to influence
firm, Capital Services. Communications, Inc.
                                                             legislative or administrative action.
wants to retain Megan directly (not Capital
Services) to lobby on behalf of one of its
clients. In order to lobby for clients of both            Examples    Wayne Butterfield’s principal
Capital Services and Communications, Inc.,                            duties include direct
Megan must register as a separate lobbying               communication to influence legislative or
firm. Her lobbying firm would indicate that it           administrative action on behalf of his
is a subcontractor to Communications, Inc.,              employer, the Association of Preservationists.
and Capital Services.                                    Because Wayne spends one-third or more of
                                                         his time lobbying in a calendar month, he
A business entity will qualify as a lobbying             qualifies as a lobbyist. The Association must
firm when:                                               register as a lobbyist employer and must also
                                                         submit Wayne’s lobbyist certification
--	 It receives or is entitled to receive                statement. Both Wayne and the Association
    compensation for lobbying AND at least               of Preservationists will prepare quarterly
    one employee, partner, owner, or officer             lobbying disclosure reports.
    is a lobbyist; or
                                                         The lobbying firm of High & Lowe is retained
--	 It receives at least $5,000 in a calendar
                                                         by the Camptown Corporation to prepare and
    quarter for lobbying AND at least one
                                                         present administrative testimony on
    employee, partner, owner, or officer
                                                         Camptown’s behalf. Camptown does not
    directly communicates on behalf of a client
                                                         employ an in-house lobbyist. However, by
    (even if no one in the firm is a lobbyist).


Fair Political Practices Commission               1-5	                             Lobbying Manual, 7/2005
Chapter 1 — Who Must File

retaining a lobbying firm, Camptown qualifies               testimony that becomes part of the public
as a lobbyist employer. Prior to engaging in                record at the hearing, the firm does not
any lobbying activity, High & Lowe must add                 communicate with officials. Because the
Camptown to its registration statement.                     payment to the law firm is only for
Camptown must complete an authorization                     administrative testimony, Recycle Now
statement and file quarterly lobbying reports.              does not qualify as a lobbyist employer.
Lansdown International contracts with Pickett
& Winnit, a public relations firm. On                     •	 A person that hires a lobbying firm for the
Lansdown’s behalf, Pickett & Winnit hires the                sole purpose of monitoring and/or drafting
lobbying firm of Capital Crusaders to lobby a                legislation.
tax-related bill. Pickett & Winnit makes
payments to Capital Crusaders for its                     Questions and Answers
lobbying services and is later reimbursed by              Q. Will a member of a bona fide association
Lansdown. As a lobbyist employer,                            become a lobbyist employer by making
Lansdown International must provide Capital                  regular dues payments to the
Crusaders with an authorization statement                    association, some portion of which is
and file quarterly lobbying reports. Both                    used for lobbying activity?
Lansdown and Capital Crusaders must
                                                          A.	 No. A member of an association will not
disclose that payments were made and
                                                              qualify as a lobbyist employer by making
received through Pickett & Winnit on the
                                                              regular dues or similar payments for
quarterly disclosure statements. Pickett &
                                                              membership in a bona fide association,
Winnit is not required to register or report the
                                                              even if a portion of the dues or similar
payments because Pickett & Winnit does not
                                                              payments is used by the association to
lobby but instead has hired Capital
                                                              employ a lobbyist or make other
Crusaders to lobby on behalf of Lansdown
                                                              payments to influence legislative or
International.
                                                              administrative action.
Who is Not a Lobbyist Employer?                              However, if a member of an association
                                                             makes a payment earmarked for lobbying
•	 A person that only makes payments to a
                                                             purposes, the member may qualify as a
   lobbying coalition is not required to file
                                                             lobbyist employer or $5,000 filer.
   lobbyist employer reports. However, such
   a person is required to file reports as a              Q. Fifteen companies, all in the gravel
   “$5,000 Filer” if payments totaling $5,000                business, decide to become a lobbying
   or more are made to a lobbying coalition                  coalition and hire a lobbying firm to lobby
   during a calendar quarter. Refer to page                  the Legislature on bills affecting their
   1-7 for guidance.                                         industry. Each company provides
•	 A person that hires an entity (which is not               Earthmovers, Inc., one of the companies,
   a lobbying firm) for the sole purpose of                  $1,200 per month to pay the lobbying
   providing administrative testimony.                       firm. Is Earthmovers, Inc., a lobbyist
                                                             employer?
     Example     The Recycle Now Corporation              A.	 No. If Earthmovers, Inc., is acting only as
                 makes a payment to a law                     the administrative agent for the lobbying
   firm, that is not a lobbying firm, to prepare              coalition, it will not become a lobbyist
   and present testimony for a public hearing                 employer. Since no one company is
   of the California Integrated Waste                         paying $5,000 or more in a calendar
   Management Board. Except for the                           quarter for lobbying services, none of the

Fair Political Practices Commission                1-6	                            Lobbying Manual, 7/2005
                                                                        Chapter 1 — Who Must File

    companies will qualify as a “$5,000 Filer.”              Example    Eight companies pool their
    The lobbying coalition must register and                            funds to hire a lobbying firm
    file reports as discussed below.                       for the purpose of influencing a legislative
                                                           bill. The companies plan to have more
Lobbying Coalitions                                        entities pay toward the lobbying firm’s
                                                           expenses. Until there are 10 companies
A lobbying coalition is a group of 10 or more              making payments to the lobbying firm, the
persons or entities formed primarily to
                                                           entities do not qualify as a lobbying
influence legislative or administrative action
                                                           coalition, but do qualify as lobbyist
whose members make payments to the
                                                           employers. Each of the eight companies
coalition for the purpose of sharing the
                                                           must file the authorization statement,
expenses of employing a lobbyist or
                                                           Form 602, and file quarterly lobbyist
contracting for the services of a lobbying
                                                           employer reports, Form 635.
firm.
                                                         Important Notes:
  Example    Fifteen manufacturers pool their
             funds and contract with the Best            •	 Because lobbying coalitions and lobbyist
Lobbying Firm to lobby a piece of legislation.              employers have common reporting
The group qualifies as a lobbying coalition                 obligations, examples of lobbying coalition
and must complete the authorization                         disclosure requirements are incorporated
statement, Form 602, and file quarterly                     with the lobbyist employer sections of this
lobbying reports disclosing payments to the                 manual.
lobbying firm as well as payments received               •	 Lobbying coalitions must include Form
from the coalition members.                                 635-C with each quarterly filing. In
                                                            addition, a coalition member must include
Who is Not a Lobbying Coalition?                            Form 630 with each quarterly filing if the
                                                            coalition member files reports as a
•	 A bona fide federation, confederation,                   lobbying firm, lobbyist employer, or $5,000
   trade association, or labor or membership                filer.
   organization that is ongoing in nature and
   whose membership services are not                     Persons Who Spend $5,000 or
   limited to influencing legislative or
   administrative action. Such an                        More to Influence Legislative or
   organization will qualify as a lobbyist               Administrative Action
   employer if it employs an in-house lobbyist           “$5,000 Filer”
   or makes payments to a lobbying firm.
                                                         Persons (including business entities,
•	 A group consisting of fewer than 10                   associations, and other organizations) who
   persons or entities formed primarily to               do not employ an in-house lobbyist or
   influence legislative or administrative               contract with a lobbying firm, but who directly
   action whose members make payments                    or indirectly make payments of $5,000 or
   for the purpose of sharing the expenses of            more in any calendar quarter to influence or
   employing a lobbyist or contracting for the           attempt to influence legislative or
   services of a lobbying firm. However,                 administrative action, have disclosure
   each of the persons or entities will qualify          obligations. The following types of payments
   as a lobbyist employer.                               must be aggregated to determine if the
                                                         $5,000 threshold has been met:



Fair Political Practices Commission               1-7	                            Lobbying Manual, 7/2005
Chapter 1 — Who Must File

•	 Payments for or in connection with direct             The employee spends more than 10% of his
   communication with state officials;                   or her time during the month preparing and
                                                         presenting the testimony. The amount of the
•	 Payments for or in connection with
                                                         employee’s salary and the travel expenses
   soliciting or urging other persons to enter
                                                         attributable to the trip exceed $5,000. The
   into direct communication with state
                                                         corporation qualifies as a $5,000 filer and
   officials;
                                                         must file a report for the first quarter, January
•	 Payments to an organization, other than               1 - March 31.
   regular dues payments, for the purpose of
   hiring a lobbyist;                                    In April, the Association of Valley Growers
                                                         pays for newspaper advertisements urging
•	 Payments to a lobbying coalition; and                 readers to communicate with the Governor on
•	 Payments that directly or indirectly benefit          a piece of legislation. The total cost of the
   state officials or members of their                   advertisements exceeds $5,000 during the
   immediate families (“activity expenses”),             second calendar quarter. The Association
   but only if other payments to influence are           qualifies as a $5,000 filer and must file a report
   made during the same calendar quarter.                for the second quarter, April 1 - June 30.
                                                         In October, the Association of Valley
For purposes of determining whether an                   Growers pays a telephone solicitor $10,000
entity qualifies as a $5,000 filer,                      to call voters regarding a piece of legislation.
compensation paid to an employee (other                  The solicitor may connect the voter to a
than a lobbyist or an employee that provides
                                                         legislator’s office so that the voter can speak
clerical, secretarial, manual, or statistical
                                                         directly to the legislator’s staff regarding the
services) must be counted if 10% or more of
                                                         legislation. The Association qualifies as a
his or her compensated time in a calendar
                                                         $5,000 filer and must file a report for the
month is spent in connection with the
                                                         fourth quarter, October 1 – December 31.
activities described above.
                                                         The Association of Preservationists is a
However, all payments for travel and
expenses incurred in connection with these               lobbyist employer and its in-house lobbyist is
activities must be counted whether or not the            paid from the general membership dues
employee spends 10% of his or her time on                fund. However, in one quarter, the
lobbying activities.                                     Association solicits a $6,000 special
                                                         assessment to pay lobbying expenses.
$5,000 filers are required to:                           Association members who pay the
•	 File a Report of Person Spending $5,000               assessment and are not already lobbyist
   or More to Influence Legislative or                   employers will each qualify as a $5,000 filer.
   Administrative Action, Form 645, for each
   calendar quarter in which $5,000 has                  Who is Not a $5,000 Filer?
   been spent to influence legislative or                •	 A person or entity that employs an in-
   administrative action.                                   house lobbyist or contracts with a lobbying
                                                            firm.
QuickTIP   $5,000 filers are not required to
                                                         •	 A person or entity that does not spend
           register or terminate.
                                                            $5,000 or more in a calendar quarter to
                                                            influence legislative or administrative
 Examples  In February, the Valencia
                                                            action.
           Corporation sends an employee
to Sacramento to testify before a state                  •	 A person or entity whose only payments
agency regarding a proposed regulation.                     are gifts to state officials.


Fair Political Practices Commission               1-8	                              Lobbying Manual, 7/2005
                                                     Chapter 1 — Who Must File

Statutory and Regulatory References
Statutes
82002    Administrative Action
82032    Influencing Legislative or
         Administrative Action
82037    Legislative Action
82038.5 Lobbying Firm
82039    Lobbyist
82039.5 Lobbyist Employer
82045    Payment to Influence Legislative or
         Administrative
82047    Person
86115    Periodic Reports; Employers and
         Others
86300    Exemptions

Regulations
18202    Quasi-Legislative Administrative
         Action
18238.5 Definition of Lobbing Firm; Individual
         Contract Lobbyist
18239    Definition of Lobbyist
18239.5 Definition of Lobbyist Employer
18249    State Agency
18614    Payments for Lobbying Services
18616.4 Reports by Lobbying Coalitions
         Which are Lobbyist Employers;
         Reports by Members of Lobbying
         Coalitions

Note:
All statutory references are to the California
Government Code. The Political Reform Act is
found in Government Code sections 81000-
91014. Commission regulations may be found
in Title 2, sections 18109-18997 of the
California Code of Regulations.




Fair Political Practices Commission            1-9          Lobbying Manual, 7/2005
                                                                                        1-866-ASK-FPPC



Chapter 2       Chapter 2 — Where and When to File Reports

Where and When to File Reports

This chapter reviews where and when                       filer is required to file electronically, all future
lobbying reports must be filed. A review of               reports, including registration forms, must be
the electronic and online filing requirements             filed electronically. Electronic filers must file
is provided as most filers must file reports              registration forms on paper as well as
electronically. For those filers who are not              electronically, but quarterly reports are not
required to file electronically (see below),              required to be filed on paper.
paper reports are required.
                                                          Electronic filers obtain a login identification
                                                          number and password from the Secretary of
Where to File                                             State. Only the filer is able to access his or
All reports and statements discussed in this              her files using the identification number and
manual are filed with the Secretary of State.             password. When filing a report
Paper statements should be addressed as                   electronically, the filer files under penalty of
follows:                                                  perjury. The filer may also designate a
                                                          vendor or other service provider to file on his
Secretary of State
                                                          or her behalf and provide the vendor with the
Political Reform Division
                                                          identification number and password. If the
1500 11th Street, Room 495
                                                          filer authorizes another vendor to file and
Sacramento, CA 95814
                                                          does not file the forms personally, the filings
                                                          are still presumed to be filed under penalty of
Electronic or Online Filing                               perjury.
Lobbying reports must be filed electronically             The Secretary of State offers free online filing
once the total amount of any category of                  and there are several software vendors that
reportable payments, expenses,                            offer programs. Visit the Secretary of State’s
contributions, gifts, or other items is $5,000            website at www.ss.ca.gov for information or
or more in a calendar quarter. Each quarter               call the Cal-Online Help Desk toll free at
and each category of payments are                         (877) 745-3453 or in Sacramento at (916)
calculated separately to determine if                     653-7283.
electronic filing is required. A lobbyist
employer is not required to count campaign                             In the first quarter of the calendar
                                                          Examples
contributions toward the $5,000 threshold for                          year, a newly registered lobbyist
any quarter in which the employer does not                employer paid its in-house employee
report contributions but instead refers to its            lobbyists $3,000 for lobbying activity and
sponsored committee’s campaign statement.                 made $4,000 in reportable contributions.
If a lobbyist employer or lobbying firm is                Since this was the first time this company
required to file electronically, lobbyists                qualified as a lobbyist employer, and it did
employed by the employer or firm also must                not expend $5,000 or more in any one
file electronically. If a lobbyist employer hires         category of reportable payments, it was
a lobbying firm that files electronically, the            required to file its quarterly report, Form 635,
employer is not automatically required to file            on paper only. In the second calendar
electronically. Until the electronic filing               quarter, the employer paid its in-house
requirements have been triggered, only                    employee lobbyists a total of $6,000 for
paper reports are required. However, once a               lobbying activity. The employer and the in-


Fair Political Practices Commission                 2-1                               Lobbying Manual, 7/2005
Chapter 2 — Where and When to File Reports

house lobbyists are required to file their                   Payments to Influence Legislative or

Forms 635 and 615 electronically for the                     Administrative Action”

second quarter and all subsequent quarters,                •	 645 – Report of Person Spending $5,000
even if the employer does not expend $5,000                   or More to Influence Legislative or
or more in any one category of reportable                     Administrative Action
payments in the future. Paper copies of the
quarterly reports are no longer required.                  •	 690 – Amendment to Lobbying Disclosure
However, any future amendments to the                         report
lobbyist employer’s registration must be filed
electronically as well as on paper.                        Questions and Answers
A lobbying firm files its reports electronically.          Q. We are a lobbyist employer and have
Robert Schneckner, a new part-time lobbyist                   never reached the $5,000 threshold for
for the firm, does not receive $5,000 in                      any calendar quarter. However, between
compensation for lobbying, nor does he have                   April 1 and June 30 of this year, we
activity expenses totaling $5,000. Although                   contributed $5,000 or more to state
Robert’s activities do not reach $5,000,                      candidates we are otherwise required to
because his lobbying firm is required to file                 report. We made the contributions
electronically, his Lobbying Report, Form                     through our sponsored committee and
615, must also be filed electronically. The                   will reference our committee’s report on
lobbying firm also recently added a new                       the Form 635 instead of itemizing the
lobbyist employer as a client. On its first                   contributions. Must we now file
quarterly disclosure report, the lobbyist                     electronically as well as on paper?
employer did not make $5,000 or more in                    A.	 No. As long as the contributions were
any category of reportable payments. The                       made from your sponsored committee
lobbyist employer may file its Lobbyist                        and you reference your committee’s
Employer Report, Form 635, electronically,                     campaign statement on your Form 635,
but is not required to do so. The report must                  you are not required to count those
be filed on paper.                                             contributions toward the $5,000 e-filing
                                                               reporting threshold.
Once a lobbying filer is required to file
reports electronically, the following                      Q. We file our quarterly reports
statements are not required to be filed on                    electronically. At the beginning of the
paper:                                                        next legislative session, we intend to
                                                              renew our registration. Are we required
•	 615 – Lobbyist Report                                      to file our registration statements
•	 625 – Report of Lobbying Firm                              electronically as well as on paper?
•	 630 – Attachment Form 630 Payments                      A.	 Yes. If you filed reports electronically in
   Made to Lobbying Coalitions                                 one legislative session and re-registered
•	 635 – Report of Lobbyist Employer and                       for the following session, you must file
   Report of Lobbying Coalition                                your registration statements electronically
                                                               as well as on paper. In addition you must
•	 635-C – Attachment Form 635-C                               continue filing your quarterly reports
   Payments Received by Lobbying Coalition                     electronically.
•	 640 – Attachment Form 640 –
   Government Agencies Reporting of “Other



Fair Political Practices Commission                 2-2	                            Lobbying Manual, 7/2005
                                               Chapter 2 — Where and When to File Reports


When to File                                              Registration Statements
General Rules                                             Initial Registration
•	 If a report or statement required to be filed          Lobbyists must complete a Lobbyist
   on paper is sent by first-class mail to the            Certification Statement, Form 604. Form 604
   Secretary of State, it is considered                   must be filed within 10 days of qualifying as a
   received on the date of the postmark.                  lobbyist.
   Reports sent by mail that are not received
                                                          Lobbying firms must complete a Lobbying
   by the Secretary of State are presumed                 Firm Registration Statement, Form 601.
   not to have been sent unless the filer has             Form 601 must be filed within 10 days of
   a post office receipt with the date of                 qualifying as a lobbying firm.
   deposit and the name and address of the
   Secretary of State.                                    Lobbyist employers/lobbying coalitions
                                                          complete different forms depending upon
•	 Deadlines that fall on a Saturday, Sunday,
                                                          whether they employ an in-house lobbyist or
   or an official state holiday are extended to
                                                          a lobbying firm.
   the next business day.
•	 Reports may not be submitted by facsimile              •	 A Lobbyist Employer Registration
   transmission.                                             Statement, Form 603, must be filed within
                                                             10 days after a partner, owner, officer, or
•	 Persons who file after a deadline are liable              employee qualifies as an in-house
   for a fine of $10 per day, calculated from                lobbyist.
   the day after the deadline, until the report
   is received. For registration statements               •	 Lobbyist employers/lobbying coalitions
   filed both electronically and on paper, the               that contract with a lobbying firm must
   $10 per day fine may be imposed on both                   complete a Lobbying Firm Authorization
   versions of the reports if they are not filed             Statement, Form 602, before lobbying
   on time.                                                  activity occurs. The Form 602 is provided
                                                             to the lobbying firm for filing with its
•	 Persons who fail to file required lobbying                registration statement or amendment to
   reports may be subject to an administrative               registration.
   penalty of up to $5,000.
•	 Reports may be filed at any time prior to              $5,000 filers are not required to file
   the deadline, so long as the report                    registration statements.
   includes all information required. An
   amendment must be filed by the filing                  QuickTIPA person that employs both an in-
   deadline if activity was omitted from the                      house lobbyist and a contract
   early filing.                                          lobbyist must complete both the Lobbyist
                                                          Employer Registration Statement, Form 603,
•	 An unsigned paper report is not
                                                          and the Lobbying Firm Authorization
   considered received by the Secretary of
                                                          Statement, Form 602, on or before the
   State and is subject to the $10 per day
                                                          applicable deadlines.
   fine, even if the report is filed on time. If
   the individual required to sign a report is
   not available on or before the deadline, an
   agent may sign the report and attach an
   explanatory note. An amendment with the
   proper signature must be filed as soon as
   possible. (See Chapter 5.)


Fair Political Practices Commission                2-3	                             Lobbying Manual, 7/2005
Chapter 2 — Where and When to File Reports


Amending Registration                                     filer. There are four quarterly disclosure
                                                          reports:
If any information on a registration statement
changes, Amendment to Registration, Form
605, must be filed as follows:                               Filer                            Form
                                                             Lobbyist                          615
Lobbying firm        Prior to attempting to influence        Lobbying Firm                     625
adding a new         legislative or administrative
                                                             Lobbyist Employer/Coalition       635
client               action on behalf of the client.
                                                             $5,000 filer                      645
Firm or employer
                 Within 20 days of effective
adding a new
                 date.
lobbyist                                                  Filers must file a report electronically or on-
                                                          line, if applicable, or on paper for each
Firm or employer                                          calendar quarter, regardless of the level of
deleting a client, Within 20 days of effective            activity, and whether or not any payments
lobbyist, lobbying date.
                                                          have been made or received during the
firm
                                                          calendar quarter. The period covered for all
                                                          quarterly reports is the first day of the
                     Within 20 days of any other          calendar quarter through the last day of the
Other changes
                     change.
                                                          calendar quarter. Quarterly reports may be
                                                          filed early so long as the report includes all
Renewal of Registration                                   information required for the period covered
                                                          by the report.
Between November 1 and December 31 of
each even-numbered year, lobbyists,                       $5,000 filers must file a report electronically
lobbying firms and lobbyist employers/                    for each calendar quarter in which they make
lobbying coalitions must file new registration            payments totaling $5,000 or more. They are
statements, Form 601, Form 602, Form 603,                 not required to file a report for any calendar
or Form 604, as applicable. A paper                       quarter in which they do not spend $5,000, or
statement must be filed. If the filer filed any           if all of the payments are “activity
lobbying disclosure report electronically in              expenses.” (See Page 4-1 for the definition
the prior legislative session, an electronic              of “activity expenses.”)
registration statement must also be filed. At
the end of each legislative session, all                  Reporting Period                 Filing Deadline
registration statements for that legislative              January, February, and March               April 30
session expire. If a filer will not engage in
                                                          April, May, and June                       July 31
lobbying activity after the end of a legislative
session, no additional reports indicating                 July, August, and September          October 31
termination are required.                                 October, November,                   January 31
                                                           and December
Quarterly Disclosure Reports
                                                          Deadlines that fall on a Saturday, Sunday, or
Quarterly reports disclose receipts and
                                                          an official state holiday are extended to the
payments in connection with lobbying
                                                          next business day.
activity. The law imposes different disclosure
requirements depending upon the type of



Fair Political Practices Commission                 2-4                             Lobbying Manual, 7/2005
                                                  Chapter 2 — Where and When to File Reports


Ceasing Lobbying Activity                                  86105    Lobbyist Employer; Registration
                                                                    Requirements
If, during the legislative session, a lobbyist,
                                                           86106    Renewal of Registration
lobbying firm, or registered lobbyist
                                                           86107    Registration Statement;
employer/lobbying coalition ceases all                              Amendment; Termination
lobbying activities, a Notice of Termination,              86117    Periodic Reports; Filing; Time
Form 606, must be filed electronically, if
                                                           86118    Lobbying Reports; When to File
applicable, or on paper within 20 days after               91013    Fines; Late Filing of Statements
ceasing lobbying activities.
As noted earlier, a filer ceasing all lobbying             Regulations
activities at the close of a regular (biennial)            18116 	 Reports and Statements; Filing
session of the Legislature is not required to                       Dates
file a termination statement.                              18465.1 	Verification of Online Filers
A person that files either a lobbyist                      18601 	 Withdrawal of Lobbyist Certification
certification statement or a lobbying firm                          or Lobbying Firm Registration
registration statement but, in fact, never                 18617 	 Early Filing of Periodic Reports
meets the Act’s definition of “lobbyist” or
“lobbying firm” may use the Notice of
Withdrawal statement, Form 607, to
discontinue filing requirements.

Important Note:
Lobbyists and lobbying firms remain subject
to the $10 gift prohibition for six months after
filing a Notice of Termination. (See Chapter
7.) Lobbyists and lobbying firms that cease
all lobbying activities at the end of the regular
session of the Legislature remain subject to
the gift prohibition for six months after the
end of the regular session. Individuals and
entities eligible to file a Notice of Withdrawal,
Form 607, are not subject to the prohibition.

Statutory and Regulatory References
Statutes
81007	 Filing Dates; Mailing of Report or
         Statement
84605 Who Shall File Online
84606 Operation of Online System
86100 Registration
86101 Registration; Time
86103 Lobbyist Certification;
         Requirements
86104 Lobbying Firm; Registration
         Requirements



Fair Political Practices Commission                 2-5	                           Lobbying Manual, 7/2005
                                                                                   1-866-ASK-FPPC



Chapter 3           Chapter 3 — Registration and Termination

Registration and Termination

The Political Reform Act requires most                  of the filer should be listed as: ABC
lobbying filers to submit registration                  Company and its affiliate, XYZ subsidiary.
statements that identify persons engaged in
                                                        A corporation has several subsidiaries. The
lobbying activity. This chapter provides
                                                        corporation, alone, directs and controls the
guidance on when the forms are due and
                                                        lobbying activity and makes all payments to
how to complete them. All registration forms
                                                        the lobbying firm. The subsidiaries are not
are filed with the Secretary of State, either
                                                        involved with lobbying activity nor do they
electronically, in paper format, or both. (See
                                                        make payments to the lobbying firm. Even
Chapter 2.) Each legislative session, the
                                                        though the subsidiaries may benefit from the
Secretary of State’s office publishes The
                                                        lobbying firm’s services, the name of the filer
Directory of Lobbyists, Lobbying Firms &
                                                        should be listed as: ABC Corporation. The
Lobbyist Employers based on information
                                                        subsidiaries are not required to be identified.
provided by lobbying firm and lobbyist
employer registration statements.                       A corporation makes payments to a lobbying
Registration information is also available              firm. A subsidiary of the corporation makes
online through the Secretary of State’s                 payments to a different lobbying firm. The
website at www.ss.ca.gov.                               lobbying activities of the corporation and the
                                                        subsidiary are independent. The corporation
Name Identification                                     does not pay for the subsidiary’s activities or
                                                        control its lobbying activities. The
Requirements                                            corporation is not required to identify the
The Act requires disclosure of the names of             name of the subsidiary on its reports, nor is
entities that engage in lobbying activity. If a         the subsidiary required to identify the name
lobbyist employer is a business entity with             of the parent corporation on its reports.
subsidiaries, the name of the subsidiaries
may be required to be separately identified             Filing Electronically or Online
along with the corporate parent’s name. This
manual can not address all of the different             When a registration statement is being filed
relationships of affiliated entities. Following         for the first time, no electronic filing of the
is a selected summary of Commission                     form is required. However, if the filer is
advice. Lobbyist employers are encouraged               renewing or amending the registration, or
to contact the FPPC for specific guidance.              filing a termination statement, and was
                                                        required to file statements electronically, the
             A corporation and its subsidiary           form must be filed electronically, as well as
 Examples
             both make payments to a                    on paper. (See Chapter 2 to determine if you
lobbying firm; the name of the filer should be          are required to file electronically.)
listed as: ABC Company and its affiliate,
XYZ subsidiary.
A lobbying firm represents the lobbying
interests of a corporation and its subsidiary,
and each entity provides direction to the
lobbying firm. The corporation makes all of
the payments to the lobbying firm. The name


Fair Political Practices Commission               3-1                            Lobbying Manual, 7/2005
Chapter 3 — Registration and Termination


Registration & Certification                              Registration statements must be verified and
                                                          signed. Lobbyists must verify the Form 604.
Statements                                                An individual must be designated on the
The law requires all lobbying firms to                    lobbying firm’s registration statement, Form
register, along with all lobbyist employers               601, as the responsible officer of the firm,
who employ in-house lobbyists. Lobbyists                  and this individual must verify the lobbying
must file certification papers. Registration              firm’s reports. In the case of a lobbyist
and certification are required when the filer             employer/lobbying coalition, the verification
first qualifies as a firm, employer, or lobbyist,         must be signed by a responsible officer, or
and at the beginning of each legislative                  by an attorney or a certified public
session. Only $5,000 filers do not have to                accountant who acts as an agent for the
file registration or certification forms. All             lobbyist employer/lobbying coalition.
registration and certification forms require
persons to disclose their names and
                                                          Lobbyist Certification Statement,
addresses. This chapter reviews the sections
of the forms that prompt the most questions               Form 604
from filers.                                              Lobbyists file the Lobbyist Certification
                                                          Statement, Form 604. An individual who
  Filer                               Form                qualifies as a lobbyist must complete this
                                                          form which will be filed along with the
  Lobbyist                            604                 registration or amendment to registration
  Lobbying Firm                       601                 form submitted by his or her lobbying firm or
                                                          lobbyist employer/lobbying coalition,
  Lobbyist Employer                                       whichever is applicable. A recent
  (with in-house lobbyist)            603                 photograph of the lobbyist’s head and
  Lobbyist Employer                                       shoulders along with a $25 registration fee
  (with lobbying firm)                602                 payable to the Secretary of State are
                                                          required. The Secretary of State will not
  All (amending a Form 601,                               accept photographs delivered by diskette.
  603, or 602)                        605                 The photograph must be recent and of
                                                          professional quality.

All lobbyists must complete Form 604,
Lobbyist Certification Statement. All lobbying
firms file Form 601, Lobbying Firm
Registration Statement. Lobbyist employers
that employ an in-house lobbyist file Form
603, Lobbyist Employer Registration
Statement, and lobbyist employers that
contract with a lobbying firm complete Form
602, Lobbying Firm Authorization Statement.
A lobbyist employer may be required to file
both Form 603 and Form 602 if the lobbyist
employer employs both an in-house lobbyist
and contracts with a lobbying firm.




Fair Political Practices Commission                 3-2                            Lobbying Manual, 7/2005
                                                      Chapter 3 — Registration and Termination

Filing Deadlines:                                         months. The validity period of the conditional
New Lobbyist:                                             certification is determined by whether the
                                                          lobbyist is renewing the certification or filing
•	 Within 10 days of qualifying as a lobbyist.            his or her first certification.

Lobbyist Renewing Certification:                          -	   New lobbyists must take the course
                                                               within 12 months after registering as a
•	 Between November 1 and December 31                          lobbyist.
   of each even-numbered year.
                                                          -	   Lobbyists who were registered in the
                                                               prior legislative session, but have not
 Examples    Susan Gomez is hired by a
                                                               taken the course in the 12 months prior to
             lobbyist employer to perform
                                                               renewing their certification, must take the
duties as an in-house lobbyist. Susan must
                                                               course by June 30 of the following year.
complete a Lobbyist Certification Statement,
Form 604. Her employer will submit this
                                                           Examples    Susan White is a new lobbyist.
form along with her picture and a $25
                                                                       She did not lobby in the 2003-
payment to the Secretary of State. The
                                                          2004 Legislative Session. Susan begins
employer must file a Form 605, Amendment
                                                          lobbying activities on September 1, 2005.
to Registration Statement, to indicate Susan
                                                          She must take the course before September
as a new in-house lobbyist.
                                                          1, 2006.
Al Johnson is promoted to become the first
                                                          Margaret Johnson was a registered lobbyist
lobbyist for his employer. Al must complete
                                                          in the 2003-2004 Legislative Session and
a Lobbyist Certification Statement, Form 604.
                                                          took the course on March 5, 2004. Margaret
The employer must submit this form along
                                                          renewed her certification for the 2005-2006
with Al’s picture and a $25 payment to the
                                                          Legislative Session in December 2004. Her
Secretary of State. The employer must file
                                                          certification is valid throughout the 2005-
the Lobbyist Employer Registration
                                                          2006 session.
Statement, Form 603, to indicate that the
company has qualified as a lobbyist                       Larry Colfax was a registered lobbyist during
employer and that Al Johnson has been                     the 2003-2004 Legislative Session and took
employed to lobby on its behalf.                          the course on December 10, 2002. Larry
                                                          may begin lobbying activities in the 2005-
Lobbyist Ethics Orientation Course                        2006 Legislative session. However, his
                                                          certification is conditional and he must take
All lobbyists are required to attend a lobbyist
                                                          the course by June 30, 2005.
ethics course as part of the registration
process. The course is conducted by the
                                                          QuickTIP Failure to take the course at the
Assembly Legislative Ethics Committee and
                                                                   times prescribed will void the
the Senate Committee on Legislative Ethics.
                                                          conditional certification. Once voided, an
To make reservations for the ethics course,
                                                          individual is prohibited from acting as a
call (916) 324-6929.
                                                          lobbyist until he or she has completed the
The Legislature will notify lobbyists of the              ethics training course and has filed an
course dates, and will provide a certificate              amended certification statement indicating
upon completion of the course.                            the date the course was taken. The FPPC
                                                          may not grant waivers to the ethics training
A lobbyist must file a conditional certification
                                                          requirement.
statement, Form 604, if he or she has not
taken the course within the previous 12


Fair Political Practices Commission                3-3	                             Lobbying Manual, 7/2005
Chapter 3 — Registration and Termination

How to Complete Form 604                                   Q. Is a lobbying firm or a lobbyist employer/
The Form 604 is an identification form that                   lobbying coalition required to pay the $25
contains the lobbyist’s name, address,                        registration fee when it hires a lobbyist
telephone number, and name of his or her                      who has been previously registered with
lobbying firm or lobbyist employer/lobbying                   another lobbying firm or lobbyist
coalition. The date the individual qualified as a             employer/lobbying coalition?
lobbyist must be provided only on the initial              A.	 Yes. Contact the Secretary of State to
statement; it is not required on renewals. The                 determine if a new photograph is
paper version of the report must be verified and               required.
signed by the lobbyist. No other individual may
sign Form 604 on behalf of the lobbyist.                   Lobbying Firm Registration
Part II. Agencies Lobbied                                  Statement, Form 601
If the lobbyist will not be lobbying all the               An individual or business entity that qualifies
agencies listed on the Lobbyist Employer or                as a lobbying firm must register within 10
Lobbying Firm Registration Statement (Form                 days of qualifying as a lobbying firm.
603 or 601, respectively) filed by his or her              Each lobbying firm must renew its
employer or firm, check the second box,                    registration between November 1 and
indicate if the lobbyist will be lobbying the              December 31 of each even-numbered year.
State Legislature, and specify the state                   If the registration is not renewed, the
agencies to be lobbied.                                    lobbying firm will be automatically
                                                           terminated.
Form 604
Lobbyist Certification Statement 	
                                                           Registration and renewal of registration
                                                           requirements may include:
                                                           •	 Completion of Form 601;
                                                           •	 Submission of Form 602 completed by
                                                              each lobbyist employer that contracts with
                                                              the lobbying firm for lobbying services;
        The lobbyist gift limit and contribution           • Submission of Form 604 completed by
QuickTIP
        restrictions apply to agencies lobbied               each partner, owner, officer, or employee
by the lobbyist. (See Chapter 7.)                            of the lobbying firm who qualifies as a
                                                             lobbyist;
Questions and Answers	                                     • A recent photograph of each lobbyist
                                                             picturing only the lobbyist’s head and
Q. How frequently are the ethics courses
                                                             shoulders; and
   held?	
                                                           •	 A $25 registration fee payable to the
A.	 Because there is no set schedule, the
                                                              Secretary of State for each of the firm’s
    number of ethics courses conducted will
                                                              lobbyists. Payment is required at time of
    vary from year to year. Contact one of
                                                              filing.

    the Legislature’s ethics committees, or

    visit the FPPC’s website at www.fppc.ca.

                                                           QuickTIPA lobbying firm is not required to
    gov, click on “Lobbyists,” then click on
                                                                   register a client that does not pay the
    “Ethics Course” for information.
                                                           firm (e.g., pro-bono services).



Fair Political Practices Commission                 3-4	                             Lobbying Manual, 7/2005
                                                       Chapter 3 — Registration and Termination


How to Complete Form 601                                    Example      ZB Corporation develops,
                                                                         manufactures, and distributes
The Lobbying Firm Registration Statement
                                                           pharmaceuticals. The description should
provides identifying information about the
                                                           state “legislation relating to the development,
lobbying firm and its clients. Enter the date
                                                           manufacturing, and distribution of
qualified as a lobbying firm only on an initial
                                                           pharmaceuticals.” It is not sufficient to
registration. The qualification date is not
                                                           describe the corporation’s lobbying interests
necessary on subsequent renewals.
                                                           as “legislation relating to business” or “health
Form 601
                                                           care.”
Lobbying Firm Registration Statement
                                                           A lobbying firm that contracts to lobby for a
                                                           client of another lobbying firm must identify
                                                           both the subcontracting lobbying firm and the
                                                           client(s)/employer(s) on whose behalf the
                                                           firm will lobby.

                                                       Form 601




QuickTIPWhen reporting the names of
        lobbyists, do not list any individual
who is separately registered as a lobbying
firm or who is employed by a lobbying firm
with which this firm contracts.
                                                           Questions and Answers
QuickTIPA partner, owner, or officer of the                Q. May an entity or individual register as a
        lobbying firm must be designated to                   lobbying firm if it intends to lobby but
be responsible for filing statements and                      does not have a client at the time of
reports and keeping records. An individual                    registration?
contract lobbyist filing the Form 601 as a
                                                           A.	 Yes. If the firm subsequently never
lobbying firm is the responsible officer.
                                                               engages in lobbying activity, it should file
                                                               a Notice of Withdrawal, Form 607.
Part II. Lobbyist Employers
Under “Agencies to be Lobbied,” list each                  Q.	 If the lobbying firm intends to lobby all
state office (including the Governor’s office, if              state agencies, may it declare “All State
applicable), department, division, bureau,                     Agencies” under “Agencies to be
board, or commission the lobbyist employer/                    Lobbied,” or must it itemize each
lobbying coalition will attempt to influence.                  agency?
Do not include the courts, or federal or local             A.	 In lieu of listing every state agency, the
agencies. It is permissible to list “all state                 lobbying firm may declare that all state
agencies.” In addition, provide a description                  agencies will be lobbied. Remember, this
of the lobbying interests of the lobbyist                      means that the gift limits and contribution
employer/lobbying coalition.                                   prohibitions will apply to all state agency
                                                               officials and all state candidates and
                                                               officeholders. (See Chapter 7.)


Fair Political Practices Commission                 3-5	                             Lobbying Manual, 7/2005
Chapter 3 — Registration and Termination

Q. If the responsible officer of the lobbying                Example     Capital Watch, a lobbying firm,
   firm changes, must the lobbying firm                                  has a client, Silo Manufacturers
   amend its registration to indicate the new               of California (SMC). Capital Watch wishes to
   responsible officer?                                     subcontract this client to Meyers & Nguyen,
                                                            another lobbying firm. Before Meyers &
A.	 Yes. The registration must be amended
                                                            Nguyen may begin lobbying on behalf of
    within 20 days of the change.
                                                            SMC, Capital Watch must complete a Form
Q.	 I am a lobbyist and will lobby for clients of           602, signed by its responsible officer,
    my employer, Capital Services, a lobbying               identifying SMC as the subcontracted client
    firm. I will also be paid directly to lobby on          and authorizing Meyers & Nguyen to lobby
    behalf of a client of my former lobbying firm,          on behalf of SMC.
    Communications, Inc. How do I register?
A.	 You must file as a separate lobbying firm               How to Complete Form 602
    and disclose, as a subcontractor, all the               Nature and Interests of Lobbyist Employer
    clients for whom you will lobby, including              Provide a description of the lobbying interests
    those on behalf of your current employer.               of the lobbyist employer/lobbying coalition.
    Complete Lobbying Firm Registration
    Statement, Form 601, and include your                                  A trade association that
                                                              Example
    Lobbyist Certification Statement, Form                                 represents electricity distributors
    604. As a subcontractor, identify in                    will complete C. 1. A trade association that
    Section B of the Form 601 all clients for               represents only one segment of an industry
    whom you will lobby. Include a Form 602                 should complete C. 1. and 2. For example, an
    completed by Capital Services identifying               association representing insurance companies
    the clients for whom you will lobby on                  that sell only automobile policies may identify
    behalf of that firm and another Form 602                in section C. 1., “ insurance,” and identify in C.
    completed by Communications, Inc.,                      2., “automobile insurance policies.”
    identifying the client for whom you will
    lobby on its behalf.                                    When listing the nature and interests of the
                                                            filer, an association with fewer than 50
Lobbying Firm Activity                                      members must also provide the names of all
Authorization, Form 602                                     members. Affiliated entities must report the
                                                            nature and interests of all entities that
Each client that retains a lobbying firm must
                                                            comprise the lobbyist employer. (See 3-1.)
complete a Lobbying Firm Activity
Authorization, Form 602, to authorize the               Form 602
lobbying firm to lobby on its behalf. The               Lobbying Firm Activity Authorization
lobbying firm must submit the Form 602
along with its Lobbying Firm Registration
Statement, Form 601, or its Amendment to
Registration, Form 605.
A lobbying firm that subcontracts clients to
another lobbying firm must complete Form
602 and identify the names of the
subcontracted client(s). It is not required to
complete the “Nature and Interests” section
for the subcontracted client(s).


Fair Political Practices Commission                  3-6	                              Lobbying Manual, 7/2005
                                                     Chapter 3 — Registration and Termination


Lobbyist Employer and                                    How to Complete Form 603
Lobbying Coalition Registration                          If this is an initial registration, enter the date
Statement, Form 603                                      qualified as a lobbyist employer/lobbying
                                                         coalition.
An individual, business entity, organization,
or lobbying coalition that has an in-house               List the full name of each in-house employee
employee who qualifies as a lobbyist must                lobbyist and of each lobbying firm, if any,
register with the Secretary of State within 10           with which the employer or coalition
days of qualifying as a lobbyist employer.               contracts.
Each registered lobbyist employer/lobbying
                                                         Part II. State Agencies Whose Actions
coalition must renew its registration between
                                                         You Will Attempt to Influence
November 1 and December 31 of each even-
numbered year. If the registration is not                List each state office, (including the
renewed, the lobbyist employer/lobbying                  Governor’s office, if applicable), department,
coalition will automatically be terminated.              division, bureau, board, or commission the
                                                         lobbyist employer/lobbying coalition will
Registration and renewal of registration                 attempt to influence. Do not include the
requirements include:                                    courts, or federal or local agencies. It is
•	 Completion of the Form 603;                           permissible to list “all state agencies.”
•	 Submission of a Form 604 completed by
                                                     Form 603
   each partner, owner, officer, or employee         Lobbyist Employer and Lobbying
   who qualifies as an in-house lobbyist;            Coalition Registration Statement
•	 Submission of a recent photograph of only
   the lobbyist’s head and shoulders; and
•	 A $25 registration fee payable to the
   Secretary of State for each individual who
   qualifies as an in-house lobbyist.
   Payment is required at time of filing.
                                                         Part III. Description of Lobbying Interests
        A lobbyist employer that only contracts          Provide a description of the lobbying
QuickTIP
        with a lobbying firm, including an               interests of the lobbyist employer/lobbying
individual contract lobbyist, must complete the          coalition and complete the Nature and
Lobbying Firm Authorization Statement, Form              Interests of the Filer section. Affiliated
602, and does not complete the Lobbyist                  entities must report the nature and interests
Employer Registration Statement, Form 603.               of all entities that comprise the lobbyist
                                                         employer in Part B. (See 3-1.) When listing
         A registered lobbyist employer that             the nature and interests of an association
QuickTIP
         employs an in-house lobbyist and                with fewer than 50 members, the names of
also contracts with a lobbying firm is                   all members must be identified in Part C. A
required to complete the Lobbying Firm                   city, county, or other governmental agency
Activity Authorization, Form 602, for the                will complete Part D.
lobbying firm.




Fair Political Practices Commission               3-7	                               Lobbying Manual, 7/2005
Chapter 3 — Registration and Termination

Amendment to Registration,                                  Registered Lobbyist Employer Adding
                                                            Lobbying Firm
Form 605
                                                            File Form 605. The lobbying firm must also
Whenever any information reported on a
                                                            file a Form 605 and attach a Form 602
registration statement changes, a Form 605
                                                            signed by a responsible officer of the lobbyist
must be filed.
                                                            employer.
Deadlines for filing Form 605:
                                                            Lobbying Firm Subcontracting a Lobbyist
•	 If a lobbying firm is adding a new lobbyist
                                                            Employer/Lobbying Coalition
   employer/lobbying coalition, the
   amendment must be filed prior to                         A lobbying firm that is adding a client through
   attempting to influence legislative or                   a subcontract must complete Form 605
   administration action on behalf of that                  (Parts I and II B) and include a Form 602
   lobbyist employer/lobbying coalition.                    signed by the subcontracting firm. The
                                                            applicable registration forms related to the
•	 Within 20 days of any other change.
                                                            subcontract must be filed before lobbying
                                                            may begin. The client is not required to file
How to Complete Form 605                                    Form 602, either electronically or on paper.
Adding a Lobbyist
Complete and file Form 605 and Form 604. A                   Example     Capital Watch, a lobbying firm,
$25 registration fee payable to the Secretary                            has a client, Silo Manufacturers of
of State, and, if the lobbyist is newly qualified,          California (SMC). Capital Watch wishes to
a recent photograph (head and shoulders                     subcontract this client to Meyers & Nguyen,
only) must also be submitted. A photograph                  another lobbying firm. Before Meyers &
is not necessary if the lobbyist is already                 Nguyen may begin lobbying on behalf of SMC,
registered for the current legislative session.             Capital Watch must provide a Form 602 to
                                                            Meyers & Nguyen identifying SMC as the
Form 605                                                    subcontracted client and authorizing Meyers &
Amendment to Registration                                   Nguyen to lobby on behalf of SMC. Meyers &
                                                            Nguyen must file a Form 605 indicating the
                                                            new subcontracted client, along with the Form
                                                            602 from Capital Watch.

                                                            Lobbying Firm Deleting a Lobbyist
Deleting a Lobbyist                                         Employer/Lobbying Coalition
File Form 605 and Form 606, if a lobbyist is                File Form 605. No attachment is necessary.
ceasing all activities as a lobbyist. If a
lobbyist will no longer be employed by you,                 A Change in a Lobbying Firm’s
but is continuing activities as a lobbyist on               Designated Responsible Officer
behalf of others, a Form 606 is not required.
                                                            File Form 605 and Part III of Form 601. No
Lobbying Firm Adding Lobbyist                               amendment is required when a lobbyist
Employer/Lobbying Coalition                                 employer/lobbying coalition changes its
                                                            designated responsible officer.
File Form 605 (Parts I and II A) and Form 602.




Fair Political Practices Commission                  3-8	                             Lobbying Manual, 7/2005
                                                     Chapter 3 — Registration and Termination

Lobbyist Employer Deleting a Lobbying                    Q. If the lobbyist employer or lobbying firm
Firm                                                        intends to lobby all state agencies, may it
When a registered lobbyist employer                         declare “All State Agencies” under
terminates a contract with a lobbying firm, a               “Agencies to be Lobbied,” or must it
Form 605 must be filed by both the                          itemize each agency?
registered lobbyist employer and the                     A.	 In lieu of listing every state agency, the
lobbying firm. A lobbyist employer that is not               lobbyist employer or lobbying firm may
registered (i.e., has no in-house lobbyists) is              declare that all state agencies will be
not required to file Form 605 when it                        lobbied. Remember, this means that the
terminates a contract with a lobbying firm.                  gift limits and contribution prohibitions will
                                                             apply to all state agency officials and all
Other Changes                                                state candidates and officeholders. (See
An amendment is required when the                            Chapter 7.)
agencies to be lobbied change.
If a change occurs in any of the information on
the Form 604, an amended Form 604 must be
filed.

Questions and Answers
Q. Is a lobbying firm or lobbyist employer/
   lobbying coalition required to pay the $25
   registration fee when it hires a lobbyist
   who has been previously registered with
   another lobbying firm, or lobbyist
   employer/lobbying coalition?
A.	 Yes.
Q. When is a registered lobbyist employer
   required to amend its registration to add
   a state agency to be lobbied?
A.	 Within 20 days of engaging in direct
    communication with officials of the
    agency for the purpose of influencing
    administrative action.
Q. Must a lobbyist employer list on its
   registration statements all departments
   under the umbrella of a state agency
   (e.g., Board of Nursing within the
   Department of Consumer Affairs)?
A.	 Yes, all departments that will be lobbied
    must be listed.




Fair Political Practices Commission               3-9	                              Lobbying Manual, 7/2005
Chapter 3 — Registration and Termination

Notice of Termination, Form 606                              Example     United Farmers of California
                                                                         ceased all lobbying activity on
If, during the legislative session, a lobbyist,
                                                            March 31, 2003, and filed its Report of
lobbying firm, or registered lobbyist
                                                            Lobbyist Employer, Form 635, covering the
employer/lobbying coalition ceases all
                                                            period January 1, 2005, through March 31,
lobbying activity, a Notice of Termination,
                                                            2005. United filed its Form 606 on April 30,
Form 606, must be filed. The Form 606 is
                                                            2005. It must file another Form 635,
not required if the lobbyist, lobbying firm, or
                                                            covering the period April 1, 2005, through the
lobbyist employer/lobbying coalition ceases
                                                            effective date of termination, April 30, 2005.
all lobbying activity at the end of the
legislative session.
                                                            If a lobbyist employer terminates a contract
Exceptions:                                                 with a lobbying firm and there remains a
•	 Lobbyist employers/lobbying coalitions                   dispute over payment of fees, or the lobbying
   that only contract for the services of a                 firm fails to terminate the lobbyist employer
   lobbying firm do not file Form 606. The                  after the employer instructs the firm in writing
   lobbying firm must file an Amendment to                  to do so, the lobbyist employer may file a
   Registration Statement, Form 605, to                     Form 606, but must file a Form 635 at a later
   delete the lobbyist employer.                            date if additional payments are made to the
                                                            lobbying firm as a result of the dispute.
•	 A lobbyist who changes employment and
   continues to lobby does not file a Form                  Lobbyists and lobbying firms remain subject
   606. The lobbying firm or lobbyist                       to the $10 gift prohibition for six months after
   employer/lobbying coalition the lobbyist is              ceasing lobbying activity.
   leaving must file a Form 605 indicating the
   lobbyist’s termination. The lobbyist’s new               Notice of Withdrawal, Form 607
   lobbying firm or lobbyist employer/
                                                            Individuals who have filed a Lobbyist
   lobbying coalition must also file a Form
                                                            Certification Statement, Form 604, or
   605 (or file a registration statement if it is
                                                            persons who have filed a Lobbying Firm
   not currently registered) adding the new
                                                            Registration Statement, Form 601, but, in
   lobbyist, along with a Form 604 signed by
                                                            fact, never met the definition of lobbyist or
   the lobbyist.
                                                            lobbying firm may file a Notice of Withdrawal,
                                                            Form 607 to terminate reporting obligations.
How to Complete Form 606                                    This form may not be used to terminate filing
Form 606 must be filed within 20 days of                    obligations of a person who has qualified as
ceasing all lobbying activity. A quarterly                  a lobbyist or lobbying firm.
report(s) covering the period until the filing of
                                                            Individuals who filed a Form 604, but never
the notice is required, unless lobbying
                                                            met the definition of lobbyist, are not subject
ceases at the end of the legislative session.
                                                            to the $10 gift prohibition once the Form 607
                                                            is on file with the Secretary of State’s office.




Fair Political Practices Commission                 3-10	                             Lobbying Manual, 7/2005
                                                              Chapter 3 — Registration and Termination

The following chart summarizes several common situations that result in the filing of
registration and/or amendment statements. Quarterly disclosure statements are also required
of lobbying firms, lobbyists, and lobbyist employers.




              Situation                   Registration Requirement                         Deadline

   Entity qualifies as lobbyist em-   Firm files 605, attaches 602 signed   Before the firm engages in direct com-
   ployer by retaining an existing    by lobbyist employer.                 munication.
   lobbying firm.

   Entity qualifies as lobbyist em-   Lobbyist employer files 603, at-      Within 10 days of qualifying as a lob-
   ployer by employing an in-         taches 604 signed by lobbyist.        byist employer.
   house lobbyist.

   Entity qualifies as a lobbying     Firm files 601, attaches 602 signed   Within 10 days of qualifying as a lob-
   firm by contracting with a lob-    by lobbyist employer.                 bying firm.
   byist employer.

   Lobbying firm A subcontracts       Firm B files 605 and attaches a 602   Before Firm B lobbies for the client.
   a client to Lobbying firm B.       signed by Firm A. No registration
                                      requirement for the client.

   Lobbyist changes employ-           Employer files 605 – no attachment.   Within 20 days of the effective date.
   ment. Leaves lobbyist em-          Firm files 605, attaches 604 signed
   ployer to work for existing lob-   by lobbyist (fee required).
   bying firm.

   Lobbying firm stops lobbying       Firm files 605. No termination re-    Within 20 days of the effective date.
   for a client. Client does not      quirement for client.
   employ a lobbyist.

   Lobbying firm stops lobbying       Firm files 605. Lobbyist employer     Within 20 days of the effective date.
   for a client. Client then em-      files 603, attaches 604 signed by
   ploys an in-house lobbyist.        lobbyist (picture & fee required).

   Lobbyist employer with an in-      Employer files 603, attaches 604      Between November 1 and December
   house lobbyist renews regis-       signed by lobbyist (picture & fee     31 of each even-numbered year.
   tration.                           required).

   Lobbying firm renews registra-     Firm files 601, attaches 602 signed   Between November 1 and December
   tion.                              by each client and 604 signed by      31 of each even-numbered year.
                                      each lobbyist (picture & fee re-
                                      quired).




Fair Political Practices Commission                      3-11                               Lobbying Manual, 7/2005
Chapter 3 — Registration and Termination

Statutory and Regulatory References
Statutes
8956     Ethics Training Courses
86100 Registration
86101 Registration; Time
86102 Registration Fees
86103 Lobbyist Certification;
         Requirements
86104 Lobbying Firm; Registration
         Requirements
86105 Lobbyist Employer; Registration
         Requirements
86106 Renewal of Registration
86107 Registration Statement;
         Amendment; Termination
86108 Registration Statement; Publication
86109 Directory of Lobbyists, Lobbying
         Firms, and Lobbyist Employers
86109.5	 Directory of Lobbyists, Lobbying
         Firms, and Lobbyist Employers;
         Online Version
86118	 Lobbying Reports; Where to File

Regulation
18601	 Withdrawal of Lobbyist Certification
        or Lobbying Firm Registration




Fair Political Practices Commission           3-12	   Lobbying Manual, 7/2005
                                                                                     1-866-ASK-FPPC



Chapter 4         Chapter 4 — Gifts and Other Activity Expenses

Gifts and Other Activity Expenses

Activity Expenses                                       A payment that benefits a state agency
                                                        official or member of an agency official’s
Among other things, lobbyists, lobbying
                                                        immediate family is an activity expense only
firms, lobbyist employers/lobbying coalitions,
                                                        if the agency that employs the official is, or
and $5,000 filers are required to disclose
                                                        should be, listed on the donor’s lobbying
activity expenses, i.e., payments which
                                                        registration statement.
benefit the persons identified below under
“Definition of Activity Expense.” This section          This manual refers to an “agency official” and
provides guidance on reporting activity                 a “member of an agency official’s immediate
expenses, the most common of which are                  family” as “reportable persons.”
gifts (e.g., food, beverages, flowers).                 Report activity expenses during the period in
However, activity expenses also include any             which they occurred, regardless of whether
form of compensation, such as consulting                the expenses were actually paid during the
fees and salaries.                                      period. All activity expenses must be
Complying with the Act’s provisions                     reported whether or not lobbying occurs at
regulating activity expenses often depends              the time of the event.
upon the nature of the particular event or
activity. This section provides guidance for             Examples     While awaiting the arrival of their
the more commonly asked questions                                     respective airplanes, lobbyist
regarding activity expenses. Do not rely on             Kathy Taylor purchases a cup of coffee for
the examples alone to ensure compliance                 Senator Jim Smith. Even though they only
with the Act. For reference, several                    engage in social conversation, the beverage
regulations relating to activity expenses have          is an activity expense that must be reported
been reproduced and are included in                     on Kathy’s Form 615.
Appendix 1. Detailed reporting, notice                  Colleen Jones is a lobbyist for the Olson
requirements, and gift limits are discussed             Corporation. She only lobbies legislation
below. Also discussed are the exceptions                affecting labor relations issues before the
that apply to both reporting requirements and           California Legislature. Colleen invited Mary
to the gift limits.                                     Ann Ward, a state official with the
                                                        Department of Water Resources, to
Definition of Activity Expense                          breakfast. Because Colleen does not lobby
An “activity expense” is any payment that               the Department of Water Resources, the
benefits, in whole or in part:                          payment for Mary Ann’s breakfast is not a
                                                        reportable activity expense.
•	 An elected state officer;
                                                        Tomas & Winters is a law firm and a lobbying
•	 A legislative official;
                                                        firm. Geneva is a lobbyist registered with
•	 A state agency official;                             Tomas & Winters to lobby the legislature.
•	 A state candidate; or                                Recyclers United is a client of the law firm
                                                        but is not a lobbyist employer. Recyclers
•	 A member of the immediate family of such             United asks Geneva to set up a luncheon
   officials or candidates (i.e., spouse and            meeting with some legislative staff members.
   dependent children).                                 Even though Recyclers United is not a


Fair Political Practices Commission              4-1	                              Lobbying Manual, 7/2005
Chapter 4 — Gifts and Other Activity Expenses

lobbyist employer, since Geneva is a                        payment toward a gift to state officials listed
lobbyist, she may not arrange the luncheon                  above if the value of the gift is more than
meeting if the legislative staff members will               $10, even if the gift has multiple donors.
receive a gift of more than $10 (i.e., if the               Gifts made directly to members of an
lunch will cost more than $10 each). If the                 official’s immediate family are not subject to
gift to the legislative staff members will be               the gift limits unless the family member is
$10 or less and Geneva arranges for the                     also a public official described above, but are
meeting, the amount of the gift each                        subject to disclosure on quarterly reports.
legislative staff member receives must be
                                                            In addition, state agency officials may not
reported by Geneva on her Form 615.
                                                            receive gifts aggregating more than $360 per
Kempler Hospital is a lobbyist employer.                    calendar year from most other sources,
Janice Duke is a surgeon employed by                        including all lobbyist employers/lobbying
Kempler Hospital and is the spouse of the                   coalitions and $5,000 filers.
Director of Health Services, a state agency
the hospital lobbies. Kempler Hospital must                 QuickTIP   The $360 gift limitation is revised
report Janice’s salary as an activity expense.                         each odd-numbered year based on
                                                            changes in the Consumer Price Index. It
                                                            was last revised January 1, 2005. The $10
Definition of Gift                                          gift limit restricting gifts from lobbyists and
Gifts are the most commonly reported activity               lobbying firms is not revised.
expense. The Act defines a gift as any
“payment” (which may be money or anything                   Arranging a Gift
else of value, such as goods or services) that
                                                            Lobbyists and lobbying firms are prohibited
provides a personal benefit to the recipient
                                                            from making or “arranging” a gift of more
for which consideration of equal or greater
                                                            than $10 in a calendar month to any state
value is not received by the donor. The term
                                                            candidate, elected state officer, legislative
“gift” includes, but is not limited to, payments
                                                            official, or to an official of any state agency
made for food, beverages, and travel.
                                                            required to be listed on the registration
Exceptions to the term “gift” are provided in
                                                            statement of a lobbying firm or lobbyist
Commission regulation 18942 which is
                                                            employer/lobbying coalition. It is not
contained in Appendix 1, under “Exceptions
                                                            necessary for a lobbyist or lobbying firm to
to Gift and Exceptions to Gift Limits.”
                                                            actually pay for or incur an expense to meet
                                                            the definition of “arranging” a gift.
Gift Limits
                                                            A lobbyist or lobbying firm “arranges for the
Lobbyists and lobbying firms may not make,
                                                            making of a gift” if the lobbyist or lobbying
or act as an agent or an intermediary in the
                                                            firm, either directly or through an agent, does
making of a gift, or arrange for the making of
                                                            any of the following:
a gift in excess of $10 in a calendar month.
This limit applies to any payment made                      •	 Delivers a gift to the recipient;
directly or indirectly to any state candidate,              •	 Invites or sends an invitation to an
elected state officer, legislative official, or to             intended recipient regarding the occasion
an official of any state agency required to be                 of a gift;
listed on the registration statement of a
lobbying firm or a lobbyist employer/lobbying               •	 Solicits responses from an intended
coalition. In addition, lobbyists and lobbying                 recipient concerning his or her attendance
firms are prohibited from making any                           or non-attendance at the occasion of a
                                                               gift;

Fair Political Practices Commission                  4-2	                              Lobbying Manual, 7/2005
                                                Chapter 4 — Gifts and Other Activity Expenses

•	 Acts as an intermediary in connection with               QuickTIP
                                                                     In each of the previous examples, the
   the reimbursement of a recipient’s                                benefit provided to the legislative

   expenses; or                                             officials may not exceed $10 in value.

•	 Acts as an intermediary in connection with
                                                              Example     The California Insurance
   the reimbursement of a recipient’s
                                                                          Coalition, a lobbyist employer,
   expenses.
                                                            held its annual convention in South Lake
                                                            Tahoe. Staff of the Coalition invited
 Examples     Lobbyist Dan Martinez invites a
                                                            legislative officials and directed and
              legislator to lunch. After the lunch
                                                            controlled the event’s preparations. The
has been arranged, Dan invites lobbyist
                                                            Coalition’s lobbyist did not solicit responses
Shirley Than to attend. Dan pays the entire
                                                            to the event or direct or control any payment
cost of the lunch. Shirley is not required to
                                                            in connection with the event. The lobbyist
report the luncheon because she did not pay
                                                            may attend the event as long as an officer,
for or “arrange” the gift. On his Form 615,
                                                            manager, or executive of the Coalition is also
Dan must report the entire cost of the lunch,
                                                            present. The lobbyist is not required to
provide the legislator’s name, and the amount
                                                            report activity expenses in connection with
that was attributable to the legislator.
                                                            the event on his or her Form 615. The
Together, Dan and Shirley invite a                          activity expenses are reported on the
legislator’s aide to lunch. The lobbyists                   Coalition’s Form 635. The amount benefiting
share the cost of the lunch. They must both                 each legislative official is subject to the $360
report the activity. In addition to reporting the           annual gift limit.
amount they each paid, each lobbyist must
report the total value of the aide’s meal,                  Source of a Gift
indicate that the amount paid was a portion
of the total cost, and report the total cost.               Generally, a person is the source of a gift if
                                                            the person makes a gift to a reportable
A lobbying firm’s client hosts a reception for              person and is not acting as an intermediary.
some legislators and their staff. The                       Determining the source of a gift is based on
lobbying firm is the contact for the legislative            the specific facts of each event. If you need
officials, and the officials call the lobbying              assistance to determine the source of a gift,
firm to RSVP. Although the lobbying firm                    contact the Technical Assistance Division
does not make any of the payments in                        prior to the event. Also, guidance for
connection with the reception, the lobbying                 determining the source of a gift may be found
firm must report the event as an activity                   in regulation 18945, Appendix 1, under “Gift,
expense because the firm’s activities come                  Source.”
within the definition of “arranging a gift.” If
the client is a lobbyist employer, it must also              Examples    The Association of Consultants,
report the activity expense.                                             a lobbyist employer, is holding a
Adrianne Kent is an employee of a law firm.                 reception to entertain the California
The law firm is also a lobbying firm, although              Legislature, legislative staff, and other public
Adrianne is not a lobbyist. Adrianne is going               officials. The Association directs and
to take a legislative staff member to lunch                 controls the event’s preparations, including
and charge it to the law firm’s credit account.             determining the guest list, and planning the
Even though Adrianne is not a lobbyist, the                 reception and entertainment. Although other
law firm must report the lunch as an activity               business entities have been solicited to help
expense.                                                    fund the event, the contributing entities are
                                                            not involved in any of the reception’s


Fair Political Practices Commission                  4-3	                             Lobbying Manual, 7/2005
Chapter 4 — Gifts and Other Activity Expenses

preparations, including the invitations. The
Association is the source of the gift (activity                         WORLD WIDE BOX
expense) to each reportable person who
                                                                 July 14, 2004
attends the event. In addition, the gift counts
toward each official’s $360 annual gift limit                    Honorable Sonia Montana
from the Association. The other business                         State Senator, SD 40
entities are not considered the source of the                    State Capitol, Room 8
gift and do not incur reporting obligations.                     Sacramento, CA 95814

On another occasion, at the request of the                       Dear Senator Montana:
Olson Corporation, the Association invites an
                                                                     Thank you for attending our reception
Assembly member to dinner to discuss a bill.                     on April 10, 2004. Please be advised that
The Olson Corporation, an Association                            we will be reporting on our second quarter
member and also a lobbyist employer,                             lobbying disclosure statement that you
agreed earlier to reimburse the Association                      received a gift of $75.21.
for this specific event. The Olson                                   If you have any questions, please
Corporation is the source of the gift because                    contact me at 415/555-5438.
it directs and controls a payment benefiting a
                                                                 Sincerely,

clearly-identified official. Therefore, the                      Alice Hummer

Olson Corporation, not the Association, must                     Vice President/California

report the dinner as an activity expense on
its Form 635.
                                                             Notification to the Beneficiary of a Gift
Gift Notifications
                                                             Correspondence notifying an official who is
Filers of lobbying disclosure reports are                    the beneficiary of a gift must be sent to the
required to notify officials to whom they make               official within 30 days following the end of
gifts aggregating $50 or more in a calendar                  each calendar quarter in which the gift was
year. The notification requirements are                      provided. The correspondence must provide
provided below.                                              the following information:
Invitations                                                  −	 The date the gift was provided to the
Lobbyists, lobbying firms, lobbyist employers/                  official;
lobbying coalitions, and $5,000 filers are                   −	 The amount of the gift; and
required to include the following notice in all              −	 A description of the goods or services
written or printed invitations to events at                     provided.
which an elected state officer, a candidate for
elective state office, a legislative official, or a
state agency official will receive a reportable              QuickTIPIn lieu of this notice, a copy of the
gift. The notice must be printed in no less                          “activity expense” section of the
than 8-point type and in a color or print that               donor’s quarterly lobbying disclosure report
contrasts with the background of the                         may be provided.
invitation and must state:
                                                             Important Notes:
    Attendance at this event by a public
                                                             •	 Elected state officers and candidates for
    official will constitute acceptance of a
                                                                elected state office must report gifts
    reportable gift.
                                                                received from a single source totaling $50
                                                                or more in a calendar year.


Fair Political Practices Commission                   4-4	                                Lobbying Manual, 7/2005
                                               Chapter 4 — Gifts and Other Activity Expenses

•	 Designated employees of state agencies                   fair market value of any possible use by
   and members of state boards and                          any person to whom the official transfers
   commissions must report gifts totaling $50               the privilege or use of the pass or tickets.
   or more in a calendar year from sources
   specified by their agency’s conflict-of-              Tickets to Nonprofit & Political
   interest code.                                        Fundraisers

Valuing Gifts                                            −	 Nonprofit associations not exempt under
                                                            Section 501(c)(3) of the Internal Revenue
In most circumstances, to determine the                     Code: The value of a ticket to a
amount of a gift, the fair market value must                fundraising event that clearly states that a
be used. (See exceptions below.) The fair                   portion of the ticket price is a donation to a
market value is the amount the recipient                    nonprofit organization is the face value of
would pay for the item on the open market.                  the ticket reduced by the amount of the
                                                            donation. If the ticket has no stated price
  Example    The Franco Winery, a lobbyist                  or no stated donation portion, the value of
             employer, provides a bottle of its             the gift is the fair market value of any food,
wine to a reportable person. The wine                       beverage, or other tangible benefits
constitutes a gift and is a reportable activity             provided to each attendee.
expense. For reporting purposes, the wine is
valued at what it would cost a member of the             −	 Nonprofit associations exempt under
public to buy the same bottle of wine on the                Section 501(c)(3) of the Internal Revenue
open market.                                                Code: A ticket to a fundraising event for a
                                                            nonprofit organization exempt under
Passes and Tickets                                          Section 501(c)(3) of the Internal Revenue
                                                            Code has no value.
Passes or tickets given to an official that
provide admission or access to facilities,               −	 Political fundraiser: A ticket to a political
goods, services, or other benefits are                      fundraiser has no value.
reportable gifts and activity expenses if they
are used by the official or if the official              Wedding Gifts
transfers the item to another person. Such
gifts are subject to the Act’s $10 and $360              For purposes of valuing wedding gifts, one-
gift limits. The value of a pass or ticket that          half of the value of the gift is attributable to
provides:                                                each spouse, unless the gift is intended
                                                         exclusively for the use and enjoyment of one
−	 One-time admission: the face value of the             spouse. If this is the case, the entire value of
   pass or ticket, excluding service fees                the gift is attributable to that individual.
   associated with the purchase of the ticket,           Lobbyists and lobbying firms are subject to
   or if there is no stated cost, the price              the $10 gift limit for wedding gifts. All other
   offered to the general public.                        donors are not subject to a gift limit.
−	 Repeated admission or access to
   facilities, goods, services, or other                  Example   A lobbyist purchases linens as a
   benefits: the fair market value of the                           wedding gift for an Assembly
   actual use of the pass or tickets by the              member and spouse. The value of the gift
   recipient official, including guests who              may not exceed $20.
   may accompany the official and who are
   admitted with the pass or tickets, plus the


Fair Political Practices Commission               4-5	                              Lobbying Manual, 7/2005
Chapter 4 — Gifts and Other Activity Expenses

Home Hospitality                                           be considered informational material and not
The cost of providing hospitality involving                a gift.
food, beverage, or occasional lodging at the
home of a lobbyist is a reportable gift only if:            Example      A chartered bus tour of the
                                                                         Sacramento-San Joaquin Delta
−	 Part of the cost is paid or reimbursed by               provided to legislators by an association of
   the lobbyist’s employer or lobbying firm;               water agencies constitutes informational
−	 The lobbyist deducts any cost as a                      material, not a gift to the legislators. The tour
   business expense on a tax return;                       enabled legislators to examine levees, fishing
                                                           facilities, and local and state water projects in
−	 There is an understanding that some of                  the Delta. Speakers from the California
   the lobbyist’s compensation is for home                 Departments of Water Resources and Fish
   hospitality. (See regulation 18630,                     and Game provided information throughout
   Appendix 1, under “Home Hospitality.”)                  the tour. Thus, the tour served primarily to
                                                           convey information and was provided to the
  Example      Andrea Singh, a lobbyist, hosts             legislators to assist them in performing their
               a private dinner at her home for            official duties of making decisions regarding
some friends and invites Brenda Shoemaker,                 California water policy. Expenses directly
a legislative staffer. The costs incurred by               related to the bus tour are reported by the
Andrea for the dinner are not a gift to                    lobbyist employer under “Other Payments to
Brenda, as long as the provisions of                       Influence Legislative or Administrative Action.”
regulation 18630 are met. On another                       However, a legislator’s air fare from Los
occasion, Andrea offers to host a birthday                 Angeles to the tour site and the food and
party for Brenda in Andrea’s home and                      beverages provided in connection with the
invites several of Brenda’s friends. Because               tour are gifts subject to the limits and
attendees will bring gifts to Brenda, a                    disclosed under “Activity Expenses.”
reportable person, the home hospitality
regulation does not apply. Brenda would be                 Informational Material
receiving a gift from Andrea subject to the                In general, informational material (e.g., books,
$10 gift limit. The cost of hosting the event              reports, pamphlets, calendars) provided to an
(e.g. the pro-rata value of the decorations                official for the purpose of assisting him or her
and food) and any tangible item(s) would                   in the performance of his or her official duties
count toward the gift limit. In addition,                  is not considered a gift or an activity expense.
Andrea is “arranging” for the making of gifts              If the official can also use the informational
from others, which will also be subject to the             material for personal purposes, the
$10 gift limit.                                            informational material provided is a reportable
                                                           activity expense. For example, providing an
Informational Tours                                        official with a Consumer Reports magazine
On-site demonstrations, tours, or inspections              subscription and a decorative map have been
designed specifically for officials are not gifts          determined to be an activity expense because
and are not subject to either the $10 or $360              the items also provided a personal benefit to
gift limits. Travel to the site and subsistence            the official.
provided to an official during an informational
                                                           See page 5-9 for information on reporting the
tour are generally considered gifts and are
                                                           costs of studies, surveys, reports, or other
reported as activity expenses. However,
                                                           materials used in connection with lobbying
transportation that is an integral part of the
                                                           activities.
tour and is not commercially available may


Fair Political Practices Commission                 4-6	                             Lobbying Manual, 7/2005
                                               Chapter 4 — Gifts and Other Activity Expenses

Personalized Plaques and Trophies                         Ticketed Events
Valued at Less than $250                                  Official or Ceremonial Functions
A personalized plaque or trophy valued at                 When an official otherwise performs an
less than $250 is not considered a gift to a              official or ceremonial role or function on
public official and is not reportable as an               behalf of his or her agency, tickets given to
activity expense by the donor.                            the official and his or her spouse and
                                                          immediate family are not gifts.
  Example    The Association of College
             Students hosts an awards                     Baby Showers
banquet and presents a “Legislator of the                 When an official is honored at a baby
Year” engraved plaque to a legislative                    shower, the official’s gift is valued at his or
member. The value of the engraved plaque                  her pro rata share of the cost of the baby
is less than $250. The legislative member                 shower (e.g., decorations and refreshments)
does not report the plaque as a gift, nor does            plus any gifts for the specific use of the
the Association report the plaque as an                   official (e.g., gift certificates). These gifts are
activity expense.                                         subject to the $10 and $360 gift limits and
                                                          must be reported as an activity expense.
Testimonial Events
                                                          Gifts for the specific use of the baby (e.g.,
When an official is honored at a testimonial
                                                          stroller, blanket, and clothing) are gifts to the
dinner or similar event, the official’s gift is
                                                          baby and are not subject to the $10 or $360
valued at his or her pro rata share of the cost
                                                          gift limits.
of the event plus the value of any specific
item presented to the official at the event.
                                                          Valuing Food and Beverage
If the honored official has left office at the            Gifts of food and beverage are the most
time the event is held, the $10 and $360 gift             commonly reported activity expenses.
limits do not apply.
                                                            −	 Restaurants. When food and beverage
Invitation Only Events                                         is provided to an official at a restaurant,
                                                               the value of the gift is the actual cost of
When an official attends an invitation-only
                                                               the items consumed by the official plus
event such as a banquet, party, gala,
                                                               a pro rata amount for tax and tip.
celebration or other similar function, the
official’s gift is valued at his or her pro rata            −	 Testimonial Dinners and Invitation-Only
share of the cost of the event plus the value                  Events: The value of such events is the
of any specific item presented to the official                 pro rata share of the cost of the event.
at the event.                                                  This includes the cost of all food and
                                                               beverages, rent of the facilities,
Invitation Only Events                                         decorations, entertainment and all other
Official Performs a Ceremonial Function                        costs associated with the event divided
When an official, by virtue of his or her                      by the number of acceptances or the
position, performs a ceremonial role at an                     number of attendees. It is not
event, only food and beverages plus the                        permissible to divide the total cost of
value of any specific item provided to the                     the event by the number of individuals
official, are valued to determine the official’s               invited.
gift.




Fair Political Practices Commission                4-7	                               Lobbying Manual, 7/2005
Chapter 4 — Gifts and Other Activity Expenses

However, if an official notifies the donor/host              lobbying firm, lobbyist employer/lobbying
in writing that he or she did not stay for any               coalition, or $5,000 filer paid toward the
meal or entertainment and received only                      event in the “Total Amount of Activity”
minimal appetizers and drinks, the value of                  column. In addition, report the total cost
the gift is the cost of the food and beverage                of the event in a footnote. See page 5-9
consumed by the official and guests                          for an example.
accompanying the official plus the value of               •	 At large gatherings, a guest book or sign-
any specific item provided to the official at                in sheet should be used to identify the
the event. If the amount has been disclosed                  reportable persons that attended the
on a quarterly statement, the donor may                      event. Records must indicate the total
adjust the amount benefiting the reportable                  number of individuals who attended and
person by filing a Form 690, Amendment to                    the amount attributable to each. However,
Lobbying Disclosure Report.                                  it is not necessary to list guests who are
                                                             not reportable persons on a lobbying
General Rules:                                               disclosure statement.
•	 An official has not received a gift if he or           •	 The $10 and $360 gift limits do not apply
   she returns the gift, unused, to the donor                to a member of the immediate family
   or donates the gift, unused, to a                         (spouse and dependent children) of a
   government entity or charitable                           state candidate, legislative official, elected
   organization within 30 days. The official                 state officer, or state agency official.
   may also reimburse the donor for some or                  However, gifts provided to immediate
   all of the value of the gift. The                         family members are reportable activity
   reimbursement must occur within 30 days.                  expenses.
•	 The term “pro rata share of the cost of the            •	 Generally, gifts given directly to members
   event” means the cost of all food and                     of an official’s immediate family are not
   beverages, rent of the facilities,                        gifts to the official as long as the official
   decorations, entertainment, and all other                 does not use the gift or exercise direction
   costs associated with the event, divided                  and control over it. However, if an official
   by the number of acceptances or the                       enjoys a direct benefit from a single gift,
   number of attendees.                                      as well as members of the official’s family,
•	 A lobbyist who does not make or arrange                   the gift’s full value is attributed to the
   for a gift to an official may attend an event             official.
   where the official receives a gift of more
   than $10 if the person making the gift (or                 Example      Senator Ivan Reeves and
   the person’s representative) is also in                                 spouse attend an event at
   attendance.                                              which the benefit received is $25 per
                                                            person. If the invitation is addressed to
•	 When a reception or other event to
                                                            “Senator Reeves and Spouse,” the
   entertain or meet with officials is held in
                                                            amount of the gift attributable to the
   conjunction with other meetings, such as
                                                            Senator is $25. However, if the invitation
   an organization’s annual meeting, report
                                                            is addressed to “Senator Reeves and
   the total cost of the reception and not the
                                                            Guest,” and the spouse or another
   total cost of the organization’s annual
                                                            individual attends the event, the amount of
   meeting in the column “Total Amount of
                                                            the gift attributable to the Senator is $50
   Activity.”
                                                            because he determined who the guest
•	 When the expenses of an event are                        would be.
   shared, report the amount the lobbyist,

Fair Political Practices Commission                4-8	                             Lobbying Manual, 7/2005
                                                 Chapter 4 — Gifts and Other Activity Expenses

•	 If the guest of an official stays in the same             reportable activity expense. Officeholders
   hotel room as the official, the full amount               are also required to report certain gifts of $50
   for the lodging is attributable to the official,          or more received from the same source in a
   even if the guest is the official’s spouse.               calendar year. Gifts are also subject to
                                                             limits.
Payments for Legislative,                                    State elected officeholders are required to
Governmental or Charitable                                   report a payment made at their behest if the
Events (“Behested Payments”)                                 payment was made principally for a
                                                             legislative, charitable, or governmental
Periodically, lobbying entities are asked by                 purpose. State officials file this report with
state elected officeholders to make payments                 their agency and, within 30 days, a copy of
or provide goods or services to support an                   the report must be forwarded to the FPPC.
event or activity. Because such activities are               Only sources of payments aggregating
at the behest of an officeholder, the issue                  $5,000 or more in a calendar year are
arises whether these payments are                            disclosed. The public document must
reportable contributions or gifts.                           include, among other items, the date of the
In general, payments are considered                          payment, source, payee, and a description of
contributions if they are made principally for               the specific purpose or event for which the
election-related activities. If a portion of a               payment was made.
payment is for election-related activities, the              When a lobbyist employer or $5,000 filer
payment is considered a “contribution.” For                  makes such a payment under this provision,
guidance, a list of election-related activities is           the payment must be reported if the payment
provided in Government Code section 82015                    was made in connection with “influencing
(b)(2)(C)(i-viii). As reviewed in Chapter 5,                 legislative or administrative action.” Such
filers of lobbying reports must disclose                     determination is made on a case by case
contributions of $100 or more made to state                  basis. Donations to charities (e.g., a
candidates and officeholders.                                nonprofit organization exempt under section
The following types of payments made at the                  501(c)(3) of the Internal Revenue Code) are
behest of a candidate are presumed to be for                 not required to be reported on the quarterly
purposes unrelated to a candidate’s                          lobbying disclosure statement.
candidacy for elective office and, therefore,
are not contributions:                                        Examples     At the behest of a state Senator,
                                                                           the Opti Company made a
•	 A payment made principally for personal                   $7,000 direct payment to the Cancer Society,
   purposes;                                                 a 501(c)(3) organization. The Opti Company
•	 A payment made by a governmental                          is not required to report the payment on its
   agency or an organization with a tax                      quarterly lobbying report. The Senator will file
   exempt status under Internal Revenue                      a report disclosing the charitable payment.
   Code Section 501(c)(3); and                               The Senator’s report is filed with the Senate
•	 A payment made principally for a                          Rules Committee, and a copy is sent to the
   legislative, charitable, or governmental                  Fair Political Practices Commission. The
   purpose.                                                  report is a public document.
                                                             On another occasion, the Opti Company, at
As reviewed in the preceding pages, a                        the Governor’s behest, made a $10,000
payment made principally for a personal                      payment to the nonprofit corporation set up
purpose may be considered a gift and a                       for the Governor’s inaugural. The Opti


Fair Political Practices Commission                   4-9	                             Lobbying Manual, 7/2005
Chapter 4 — Gifts and Other Activity Expenses

Company must report the payment on its                   whether a specific travel payment is a gift,
quarterly lobbyist report under the category,            income, or a contribution and whether the
“Other Payments to Influence.”                           payment is reportable and subject to gift
                                                         limits. The regulations address:
The Opti Company, at the behest of an
Assembly member, made a payment to a                     •	 Travel in connection with a speech;
Sacramento restaurant for food and
                                                         •	 Travel provided by governmental entities
beverages for several legislators and staff
                                                            and charities;
who were working late one evening. This
payment is a gift and must be reported on                •	 Travel provided to an official’s agency;
the quarterly lobbying report under the                  •	 Travel in connection with a bona fide
category, “Activity Expense.” The legislators               business; and
and staff may also be required to report this
gift.                                                    •	 Travel in connection with campaign
                                                            activities.
Honoraria Ban                                            Following is a selected summary of the
Legislative officials, most state and local              Commission’s current advice. This advice is
officials and employees, and candidates for              based on specific sets of circumstances and
state and local office may not accept                    is provided for informational purposes only.
honoraria payments.                                      Do not rely on the examples alone to ensure
                                                         compliance with the Act. It is recommended
“Honorarium” means any payment made in
                                                         that persons contact the Commission before
consideration for any speech given, article
                                                         making travel payments.
published, or attendance at any public or
private conference, convention, meeting,                 •	 An official was advised that acceptance of
social event, meal, or like gathering.                      Super Bowl tickets from a nonprofit
While most officials are subject to the ban on              organization that promotes local sports
accepting honoraria, payments or                            and the use of its private corporate jet to
reimbursements for an official’s                            attend the Super Bowl would violate the
transportation, lodging, and subsistence are                gift limit. However, the official could
generally not considered honoraria.                         reimburse the organization for the amount
                                                            over the gift limit within 30 days of receipt.
Travel Payments                                          •	 An Assembly member has been advised
                                                            that payment for airfare to Maui, Hawaii, to
In general, payments for travel (ground or air              participate as a keynote speaker at an
transportation, lodging, and meals) that                    association’s convention that focused on
benefit an official constitute gifts. However,              developing Pacific Rim markets for
depending on the circumstances, a travel                    agricultural products was reasonably
payment may not be subject to limits, or may                related to a governmental purpose. The
be considered a contribution or income to the               airfare payment is not subject to gift limits,
official.                                                   but must be reported as an activity
Regulations 18944.2 (Gifts to an Agency),                   expense. The requirement to report the
18950.1 (Gifts of Travel: Exceptions),                      payments for lodging and meals will
18950.3 (Travel in Connection with Speeches,                depend on the specific facts of the trip.
Panels, and Seminars: Exception for All                  •	 An organization provided travel and
Filers), and 18950.4 (Payments for Travel) in               accommodations to a state agency’s
Appendix 1 provide guidance for determining                 employees so that the employees could


Fair Political Practices Commission              4-10	                             Lobbying Manual, 7/2005
                                                Chapter 4 — Gifts and Other Activity Expenses

   attend a training program. Because the                     considered a gift, although they may not
   state agency received and controlled the                   be subject to the gift limits.
   payments for travel from the organization,               •	 Regulation 18950.1 exempts certain travel
   used the payments for agency business,                      payments from the $360 gift limit but does
   selected the employees who attended the                     not exempt the payments from the $10 gift
   training program, and recorded the                          limit imposed on lobbyists and lobbying
   payments in a public record, the                            firms.
   Commission advised that the travel
   payments constituted a gift to the state
                                                            Questions and Answers
   agency and not gifts to the state
   employees who attended.                                  Q. A lobbyist uses personal funds to take an
                                                               official to lunch. The lobbyist is later
•	 An Assembly member’s administrative
                                                               reimbursed by his or her employer. Is the
   assistant has been advised that he may
                                                               lobbyist subject to the $10 gift limit under
   accept payments from a lobbyist employer
                                                               these circumstances?
   for transportation, room and board, and a
   speaking fee for his performance as a                    A.	 Yes. Whether a lobbyist is reimbursed by
   stand-up comic. The payments for his                         his or her employer, a lobbyist may not
   performance constitute earned income in                      make a gift benefiting an official of more
   connection with his bona fide business.                      than $10 in a calendar month.
   The lobbyist employer is required to report
                                                            Q.	 Is a lobbying firm prohibited from
   the payments as an activity expense.
                                                                arranging an out-of-state speaking
•	 The Commission has advised that a third                      engagement for an official on behalf of
   party’s payments for an elected official’s                   one of the firm’s clients?
   air travel to attend the official’s campaign
   fundraiser is a contribution. Contributions              A.	 Out-of-state travel is a gift which is
   of $100 or more must be reported on a                        subject to the $10 gift limit. Therefore,
   lobbying disclosure quarterly report.                        any employee of the lobbying firm is
                                                                prohibited from arranging the travel.
•	 An association paid an official’s
   transportation, meals, and lodging                       Q. Must the gift notification language be
   expenses directly in connection with an                     provided on all invitations to events?
   event at which the official gave a speech in             A.	 No. Only invitations to an event at which
   Pebble Beach, California. The payments                       an official will receive a reportable gift.
   are not subject to the gift limits and are not               Officials must report gifts aggregating
   reportable by the association or the official.               $50 or more in a calendar year from a
                                                                single source.
Important Notes:
                                                            Q. When a lobbyist employer makes a gift of
•	 If an official claims that a payment for                    $50 or more to the spouse of a legislator,
   travel is income and not a gift, the official               is the lobbyist employer required to send
   has the burden of proving that the                          the gift notification?
   consideration he or she provided was of
   equal or greater value than the payment                  A.	 The notice is not required unless the
   received. There is no exact formula to                       legislator’s spouse is a state officeholder,
   determine whether an official has provided                   state candidate, or an official of a state
   consideration of equal or greater value,                     agency lobbied by the filer.
   and, ultimately, this determination is a
                                                            Q. May an official and spouse spend a
   factual one. Such payments are generally
                                                               weekend at the vacation home of a

Fair Political Practices Commission                 4-11	                             Lobbying Manual, 7/2005
Chapter 4 — Gifts and Other Activity Expenses

    lobbyist when the lobbyist does not stay                Q. May a lobbyist take an official to lunch
    at the house the entire weekend?                           and pay more than $10 if the official buys
                                                               the lobbyist’s lunch the next time they
A.	 No. The time the lobbyist does not stay
                                                               meet?
    with the official is considered a gift from
    the lobbyist and subject to the $10 gift                A.	 No. There is no provision in the law for
    limit. Since the value of the use of the                    reciprocating or exchanging gifts with a
    house exceeds the $10 gift limit, the                       lobbyist.
    lobbyist is prohibited from permitting the
    official’s use of the vacation home without             Statutory and Regulatory References
    the lobbyist or a member of the lobbyist’s
                                                            Statutes
    immediate family present.
                                                            82015      Contribution
Q. May a trade association provide a T-shirt,               82028      Gift
   valued at $10, to a public official who                  82038      Legislative Official
   gives a speech at the association’s                      86111      Activity Expense; Agency Official
   annual conference?                                       86112.3    Invitations
A.	 Yes. Regulation 18950.3 provides that a                 86112.5    Notification to Beneficiary of a Gift
    non-cash, nominal benefit such as a                     86201      Gift
    coffee mug, T-shirt, pen, etc., may be                  86203      Unlawful Gifts
    provided to an official attending an event              87207      Disclosure of Income
    when the official gives a speech,                       89501      Honoraria (Definition)
    participates in a panel or seminar, or                  89502      Honorarium (Prohibition)
    provides a similar service. The item is                 89503      Gift Limits
    not reportable or subject to the $10 or                 89506      Travel Payments, Advances and
    $360 gift limits. The regulation is                                Reimbursements
    intended to provide an official the
    opportunity to accept a nominal item for                Regulations
    his or her services.                                    18624    Lobbyist Arranging Gifts
                                                            18630    Home Hospitality (86203)
Q. If a lobbyist pays for a reportable official’s
                                                            18640    Activity Expenses
   meal and within 30 days is reimbursed by
                                                            18940.2 Gift Amount Limit
   the person for the full amount of the
                                                            18941    Receipt, Promise and Acceptance
   meal, must the lobbyist disclose the meal
                                                                     of Gifts
   as an activity expense?
                                                            18942    Exceptions to Gift and Exceptions
A.	 No. As long as reimbursement occurs                              to Gift Limits
    within 30 days, the lobbyist is not                     18942.1 Definition of “Informational
    required to disclose the activity.                               Material”
                                                            18943    Return, Donation, or
Q. May a lobbyist, who is acting in his or her
                                                                     Reimbursement of a Gift
   capacity as the executive director of an
                                                            18944    Valuation of Gifts to An Official and
   association, make or arrange a gift
                                                                     His or Her Family
   benefiting an official of more than $10?
                                                            18944.2 Gifts to an Agency
A.	 No. No matter what other position a                     18945    Source of Gifts
    lobbyist holds, the gift limit and the                  18945.3 Intermediary of a Gift
    prohibition against making or arranging                 18946    Reporting and Valuation of Gifts
    gifts over $10 apply.                                   18946.1 Reporting and Valuation of Gifts:
                                                                     Passes and Tickets


Fair Political Practices Commission                 4-12	                             Lobbying Manual, 7/2005
                                         Chapter 4 — Gifts and Other Activity Expenses

18946.2 Reporting and Valuation of Gifts:
         Testimonial Dinners and Events
18946.3 Reporting and Valuation of Gifts:
         Wedding Gifts
18946.4	 Reporting and Valuation of Gifts:
         Tickets to Nonprofit and Political
         Fundraisers
18950.1	 Gifts of Travel: Exceptions
18950.3	 Travel in Connection With
         Speeches, Panels, and Seminars:
         Exception for All Filers
18950.4	 Payments for Travel in Connection
         with Campaign Activities




Fair Political Practices Commission           4-13	                Lobbying Manual, 7/2005
                                                                                      1-866-ASK-FPPC



Chapter 5            Chapter 5 — Quarterly Disclosure Reports

Quarterly Disclosure Reports

Lobbyists, lobbying firms, lobbyist employers,           Reporting Period
lobbying coalitions, and $5,000 filers must
                                                         The period covered on each report is the
file quarterly disclosure reports. This chapter
                                                         entire calendar quarter. The “cumulative
reviews the common issues associated with
                                                         period” begins with January 1 of the current
completing the quarterly statements.
                                                         biennial legislative session. (Legislative
There are four different quarterly reports:              sessions begin in odd-numbered years.)
Lobbyist Report, Form 615; Report of
                                                         Exceptions:
Lobbying Firm, Form 625; Report of Lobbyist
                                                         •	 For a person who qualifies as a lobbying
Employer and Report of Lobbying Coalition,
                                                            firm or lobbyist employer/lobbying coalition
Form 635; and, Report of Person Spending
                                                            after the first quarter of the current
$5,000 or More to Influence Legislative or
                                                            legislative session, the cumulative period
Administrative Action, Form 645. Although
                                                            begins with the first day of the calendar
there are four different forms, the disclosure
                                                            quarter in which the lobbying entity
provisions are similar and, therefore, have
                                                            qualified.
been summarized into general guidelines.
Following the “General Guidelines” section is            •	 For a $5,000 filer, the cumulative period is
a discussion of those issues that are unique                the first day of the calendar quarter in
to each form.                                               which the $5,000 filer qualified.

General Guidelines                                       Record Retention
                                                         Records and substantiating documents must
When and Where to File
                                                         be retained for a period of five years
Reports are due at the end of the month                  following the date of the filer’s final report for
following the end of each calendar quarter.              that calendar year. (See Chapter 6.)
Reports must be filed for each calendar
quarter, regardless of the level of activity.            Legislative or State Agency
Exception: $5,000 filers are only required to            Administrative Action “Actively”
file a report for each calendar quarter in               Lobbied
which they spend $5,000 or more to                       Report only those legislative or
influence legislative or administrative action.          administrative actions that were “actively
This amount does not include “activity                   lobbied” during the quarter. An action has
expenses.” (See Page 4-1 for a definition of             been “actively lobbied” if a partner, owner,
activity expenses.)                                      officer, or employee of the filer, or a lobbying
Most lobbying filers must file quarterly                 firm with which the filer has contracted, has
reports electronically or online, although               either engaged in direct communication, or
some may be required to file on paper (an                been directed by the filer to engage in direct
original and one copy). (See Chapter 2 for               communication with a qualified official for the
guidance.) All reports are filed with:                   purpose of influencing the action on behalf of
                                                         the filer. (See Chapter 1 for the definitions of
Secretary of State                                       “direct communication,” and “legislative or
Political Reform Division                                administrative action.”) When listing state
1500 11th Street, Room 495                               administrative action, provide the name of
Sacramento, CA 95814

Fair Political Practices Commission               5-1	                              Lobbying Manual, 7/2005
Chapter 5 — Quarterly Disclosure Reports

the state agency or department. In lieu of bill            −	 When an activity expense is charged to a
numbers and regulation numbers, a specific                    credit card, report both the credit card
description of each legislative or                            company and the vendor.
administrative action actively lobbied during
                                                           −	 When an activity expense is paid by a
the quarter may be provided.
                                                              lobbyist employer’s or lobbying firm’s
Do not list bills or administrative actions that:             sponsored recipient committee, the
                                                              expense must be reported on the quarterly
•	 Have died prior to the reporting period;                   report as though it were made by the filer
•	 Are only being watched or monitored; or                    directly. In addition, if a subsidiary of a
•	 The lobbyist employer/lobbying coalition                   filer pays for an activity expense on the
   has not attempted to influence during the                  filer’s behalf, the filer must report the
   calendar quarter.                                          payment.

                                                           QuickTIP   See Chapter 4 for more information
Activity Expenses                                                     on activity expenses.
Itemize all activity expenses that were
incurred or arranged during the quarter,                   Prohibited Campaign Contributions
regardless of whether they were actually paid              Lobbyists and lobbying firms are prohibited
during the calendar quarter. An activity                   from making certain contributions. (See
expense reported on a previous quarterly                   Chapter 7.)
report as incurred need not be reported
again when actual payment is made.
                                                           Campaign Contributions Disclosure
An itemized activity expense must include                  Lobbyists, lobbying firms, lobbyist employers/
the date, name and address of payee, name                  lobbying coalitions, and $5,000 filers must
and position of each reportable person and a               disclose all contributions made that total
description of the expense (e.g. reception,                $100 or more during the calendar year to
flowers). Disclose the amount of benefit for               state candidates, elected state officers, their
each reportable person and the total amount                controlled committees (including controlled
of the activity. Do not list employees or                  ballot measure committees), and committees
members of the lobbyist employer/lobbying                  primarily formed to support or oppose such
coalition or other non-reportable individuals.             officers or candidates. (Do not report
Lobbying firms must report activity expenses               contributions to federal candidate
reimbursed by a lobbyist employer/lobbying                 committees.) Report the date of the
coalition that contracts with the lobbying firm.           contribution, the name of the recipient, the
                                                           recipient’s committee identification number, if
Notes:                                                     applicable, and the amount of the
                                                           contribution.
−	 Do not attach copies of invoices, credit
   card receipts, or checks to the statement.
   Such documents should be kept in the                Form 635
                                                       Part B
   recordkeeping file.
−	 When an activity expense is shared, list
   the filer’s payment in the “Total Amount of
   Activity” column. Indicate in a note the
   total cost of the activity expense and that
   the cost was shared by others.


Fair Political Practices Commission                 5-2	                             Lobbying Manual, 7/2005
                                                        Chapter 5 — Quarterly Disclosure Reports

If a lobbyist, lobbying firm, or lobbyist               should be reported on the quarterly lobbying
employer/lobbying coalition makes a                     statement, even if a Late Contribution
contribution prior to qualifying as a lobbying          Report, Form 497, has been filed.
filer, but within the same calendar quarter of
registering to lobby, the filer must disclose           Delivering Contributions
the contribution.                                       Contributions may not be personally
                                                        delivered in the State Capitol, in any state
  Example    In January 2004, Emily Browski             office building, or in any office for which the
             made a contribution from her               State of California pays the majority of the
personal funds to State Senator Karl                    rent. The only exception to this prohibition is
Najimy’s local committee for mayor. In                  a legislative district office. “Personally
March 2004, Emily became a lobbyist                     delivered” includes the delivery of a copy or
registered to lobby the Legislature. Because            facsimile of a contribution, and the original or
Senator Najimy is an elected state officer,             a copy of a contribution transmittal letter.
Emily must report the contribution on her               “Personally delivered” does not include
Form 615 for the first quarter of the year. (As         contributions sent through the mail.
a lobbyist, Emily is prohibited from making
future contributions to a state or local                Lobbyists must report contributions they
committee controlled by the Senator.) Later             make during the calendar quarter that total
that year, Emily made a personal contribution           $100 or more in the calendar year and those
to a candidate for Attorney General. This               that they personally deliver to state
contribution was permissible because Emily              candidates or elected state officers,
does not lobby the Department of Justice.               regardless of the source of the contribution.
Nevertheless, if the contribution was $100 or           However, contributions delivered for a
more, it must be reported.                              lobbyist employer or another person need
                                                        not be reported by the lobbyist unless the
If all of the contributions made during the             lobbyist personally delivers the contribution
quarter by the lobbying firm, lobbyist                  to the candidate or officeholder, or to the
employer/lobbying coalition, $5,000 filer, or           candidate/officeholder’s treasurer or agent, in
by its sponsored committee are reported on              the candidate/officeholder’s presence and
a campaign disclosure statement required                with their knowledge.
under Government Code section 84200 et
seq. (e.g., Form 460 or 461), which is on file           Example     Luisa Torres is an in-house
with the Secretary of State, identify the name                       lobbyist for Campbell Trucking
of the committee and, if applicable, the                Company. On the company’s behalf, Luisa
committee’s identification number. It is not            delivers a campaign contribution to Senator
necessary to itemize these contributions.               Debbie Mizuki’s reelection campaign
                                                        headquarters. The Senator is not present, so
        If a lobbying firm, lobbyist employer/          Luisa gives the contribution to the campaign
QuickTIP
        lobbying coalition, $5,000 filer, or a          committee’s treasurer. Since the contribution
sponsored committee of one of these filers              was not from Luisa, nor was it personally
has made a late contribution to a state                 delivered to the Senator or in the Senator’s
candidate or officeholder within a calendar             presence and with her knowledge, Luisa is
quarter, but has not yet filed the                      not required to report the contribution on her
corresponding campaign disclosure                       Lobbyist Report, Form 615.
statement (e.g., Form 460 or 461) with the
Secretary of State, the late contribution


Fair Political Practices Commission               5-3                             Lobbying Manual, 7/2005
Chapter 5 — Quarterly Disclosure Reports


Question & Answer                                         Amendments to Disclosure Reports
Q. May a lobbyist attend a fundraiser if the              To amend information disclosed on a
   ticket is paid in full by a lobbyist                   lobbying disclosure report, e.g. Form 615,
   employer?                                              625, 630, 635, 635-C, 640, or 645, file an
                                                          Amendment to Lobbying Disclosure Report,
A.	 Yes. A lobbyist may attend a fundraiser
                                                          Form 690. (For more information, see page
    as long as the lobbyist’s personal funds
                                                          5-14.)
    or assets are not used to pay for the
    ticket. See FPPC regulation 18572 for
    restrictions.                                         Quarterly Report and Attachments
                                                          The following section provides instructions
Verification                                              and examples for completing the four
                                                          quarterly reports: Forms 615, 625, 635, and
In the case of the lobbyist report, Form 615,
                                                          645. The attachment forms, Forms 640,
the paper report must be signed by the
                                                          635C, and 630, are reviewed immediately
lobbyist. If the lobbyist is not available to
                                                          following the Form 635, since these are the
sign the report on or before the filing
                                                          most commonly used attachments for this
deadline, an agent of the lobbyist may sign
                                                          form. The form to amend the quarterly
the report. The agent should attach a note
                                                          reports, Form 690, concludes the chapter.
stating that, as soon as the lobbyist is
available, he or she will sign the report and
an amendment with the proper signature will               Lobbyist Report, Form 615
be filed.                                                 A lobbyist must identify his or her name and
In the case of the lobbying firm report, Form             address, and disclose activity expenses and
625, the paper report must be verified and                campaign contributions.
signed by the individual who is designated on             All “activity expenses” arranged, incurred, or
the lobbying firm’s registration statement as             paid by the lobbyist must be itemized during
the responsible officer of the lobbying firm. If          the period in which they occurred regardless
the designated responsible officer is not                 of whether they were actually paid during the
available to sign the report on or before the             period. When reporting under the “Name
filing deadline, another responsible officer of           and Official Position of Reportable Person
the lobbying firm or an attorney or certified             and Amount Benefiting Each,” neither the
public accountant may sign the report. An                 lobbyist nor any other person who is not a
explanatory note should be attached stating               reportable person is required to be listed.
that, as soon as the designated responsible               However, the total number of persons who
officer is available, he or she will file an              benefited must be kept in the lobbyist’s
amendment with the proper signature.                      records. When reporting under the “Total
In the case of the lobbyist employer/lobbying             Amount of Activity,” the total amount paid,
coalition report, Form 635, and $5,000 Filer              arranged, or incurred for the activity must be
report, Form 645, the verification must be                reported, not just the amount benefiting
signed by a responsible officer, or by an                 reportable people.
attorney or a certified public accountant who
acts as an agent for the entity or
organization. The same individual is not
required to sign all statements.




Fair Political Practices Commission                5-4	                            Lobbying Manual, 7/2005
                                                         Chapter 5 — Quarterly Disclosure Reports


Form 615                                                 Payments Received in Connection
Part I                                                   With Lobbying Activity
                                                         List the name, address, and telephone
                                                         number of each lobbyist employer/lobbying
                                                         coalition on whose behalf the lobbying firm is
                                                         registered to lobby whether or not the firm
                                                         has received a payment from the client
                                                         during the calendar quarter.
                                                         If a payment for a client is received from
The completed Form 615 must be submitted                 another source (e.g., a public relations firm,
to the lobbyist’s employer or lobbying firm for          or administrative services company), the
filing within two weeks following the end of             lobbying firm must report both entities.
each calendar quarter.
                                                         If a lobbying firm receives a payment in
If a lobbyist changes employers in the middle            connection for lobbying on behalf of another
of a quarter, the lobbyist will file two Form            lobbying firm’s client, the lobbying firm
615s: one covering the period with the former            receiving the payment must report the other
employer and one covering the period with                lobbying firm and the client.
the new employer.
                                                     Form 625
                                                     Part II
Report of Lobbying Firm, Form
625
A lobbying firm must file Form 625. In addition,
a Form 615, completed by each partner, owner,
officer, or employee of the lobbying firm who
qualifies as a lobbyist also must be filed. A
lobbying firm that is a member of a lobbying
coalition must also include Form 630,
Payments Made to Lobbying Coalitions, with its
quarterly Form 625.

Partners, Owners, Officers, and
Employees Who Engaged in Direct
Communication
If no partner, owner, officer, or employee of
the firm qualifies as a lobbyist, list the name
and title of each partner, owner, officer, or
employee of the lobbying firm who, on at
least five separate occasions during the
quarter, engaged in direct communication                  *For services performed during 1/1/05-3/31/05

with any elected state official, legislative
official, or agency official for the purpose of          Lobbying firms must identify clients that
influencing legislative or administrative                make payments for and direct their lobbying
action. Do not include employees whose                   activity. For more information on corporate
actions were solely clerical.                            clients and their subsidiaries, see Chapter 3.


Fair Political Practices Commission                5-5                                                    Lobbying Manual, 7/2005
Chapter 5 — Quarterly Disclosure Reports

Fees and Retainers                                          a salaried lobbyist that were merely
If a lobbying firm provides services other                  reimbursed by or charged to an account paid
than lobbying (e.g., legal or administrative                by the firm.
services) to a client on whose behalf the firm
is registered to lobby, only report payments
received for lobbying-related activities.                   Form 625
                                                            Part III, Section A
It is not necessary to disclose payments for
initiative-related or legislative-related services
(e.g., bill monitoring) on issues for which the
lobbying firm has not been authorized to
directly communicate with legislative or
agency officials. However, a lobbying firm
must retroactively report payments received
for initiative-related and legislative-related
services if, within one year of receiving such
payments, the firm is authorized to lobby on                Payments Made to Other Lobbying
the same or substantially the same matter.                  Firms
The nature of the payment and the date the                  If the lobbying firm subcontracts with another
firm was authorized to lobby must be noted.                 lobbying firm to lobby on behalf of a client,
Regulation 18624 (Reportable Lobbying                       payments to the subcontracting firm are
Services) provides guidance on this reporting               itemized in Part III, Section B.
requirement.
                                                            Form 625
Reimbursement of Expenses                                   Part III, Section B
If reimbursement is received for expenses
incurred in a prior quarter, indicate in a
footnote during which calendar quarter the
expenses were incurred.

Payments Made in Connection With
Lobbying Activities                                         Questions and Answers
Activity Expenses Arranged, Incurred, or                    Q. Is the responsible officer of the lobbying
Paid by the Lobbying Firm                                      firm the only person who may sign the
Itemize activity expenses arranged, incurred,                  Report of Lobbying Firm, Form 625?
or made on behalf of the firm by individuals                A.	 Yes. The report must be verified and
in the lobbying firm, other than a registered                   signed by the individual who is
lobbyist. The total of these payments is                        designated on the lobbying firm’s
reported in Part III, Section A. 2. If a lobbyist               registration statement.
incurs or makes an activity expense, the
lobbyist should itemize the expenses on his
or her Form 615.
If a client later reimburses the lobbying firm,
report the reimbursement in Part II. Do not
itemize activity expenses paid or incurred by



Fair Political Practices Commission                  5-6	                            Lobbying Manual, 7/2005
                                                     Chapter 5 — Quarterly Disclosure Reports

Q. Is a lobbying firm required to list lobbying          Report of Lobbyist Employer and
   clients that have not made payments to
   the firm during the calendar quarter
                                                         Report of Lobbying Coalition,
   covered by the report?                                Form 635
A.	 Yes. The lobbying firm must list the
    name, address, and telephone number of          Form 635
    each of its clients on whose behalf the
    lobbying firm is registered to lobby,
    whether or not the firm has received a
    payment from the client.
Q. Must a lobbying firm report payments
   from clients contracting only for bill                If the organization or entity employs an in-
   tracking services?                                    house lobbyist, Form 615 must be filed by
                                                         the lobbyist in addition to the Form 635. In
A.	 No. Lobbying firms are only required to
                                                         addition, if the lobbyist employer is a member
    report payments from persons who pay
                                                         of a lobbying coalition or is a lobbying
    the firm to engage in direct
                                                         coalition, Form 630 or Form 635-C is also
    communication for the purpose of
                                                         required to be filed. All governmental entities
    influencing legislative or administrative
                                                         must also complete Form 640, which
    action.
                                                         requires additional itemization of the
Q. When are fees and retainers reported?                 agency’s general expenses for lobbying.
                                                         Forms 630, 635-C, and 640 are reviewed
A.	 A lobbying firm must report receipt of a
                                                         below.
    client’s fee or retainer on the report
    covering the calendar quarter in which
    the payment was received. If the                     Part III of Form 635. Payments Made in
    payment was for services provided in a               Connection With Lobbying Activities
    prior calendar quarter, indicate on the              In Section A of Part III payments to in-house
    report the quarter in which services were            lobbyists are disclosed. Such payments
    provided.                                            include:
Q. A lobbying firm purchased 10 tickets to a             •	 Salaries. Salary includes gross wages
   charitable (501(c)(3)) organization’s                    paid, plus any fringe benefits that are in
   fundraiser. The firm gave some of the                    lieu of wages, such as the granting of
   tickets to legislative staff members. Do                 stock options or purchase of annuities.
   these tickets to reportable persons need                 Salary does not include routine fringe
   to be disclosed as an activity expense?                  benefits, such as the employer’s
A.	 No. A ticket to a fundraising event of an               contributions to a health plan, retirement
    organization established under IRS code                 plan, or payroll taxes;
    501(c)(3) has no value under FPPC                    •	 Reimbursements of expenses (including
    regulation 18946.4, and is therefore not                activity expenses);
    an activity expense.                                 •	 Advances for expenses or salary; and
                                                         •	 Any other payments made directly to the
                                                            lobbyist(s).




Fair Political Practices Commission               5-7	                            Lobbying Manual, 7/2005
Chapter 5 — Quarterly Disclosure Reports

Important Notes:                                          Example    The PAC for California Dairy
•	 Do not include payments made directly to                          Association, a lobbyist employer,
   a vendor for lobbying expenses of an in-              pays for a dinner for a legislative official and
   house lobbyist (e.g., automobile lease                his spouse. The PAC reports the payment
   agency, restaurant, credit card company,              as an expenditure and the Dairy Association
   membership club). Such payments are                   reports the payment as an activity expense
   reported under “Other Payments to                     on its Form 635.
   Influence,” Part III, Section D. 2.
                                                         Do not list activity expenses paid or incurred
•	 If an in-house lobbyist performs duties               by a salaried lobbyist that were merely
   other than lobbying, only report the portion          reimbursed by or charged to an account paid
   of his or her salary and expenses                     by the lobbyist employer/lobbying coalition.
   allocated to lobbying. (See Chapter 6 for             Such activity expenses are itemized on the
   instructions on how to allocate lobbying              lobbyist’s Form 615 and reported as an
   expenses.)                                            overhead expense on the Form 635.

Part III Section B. Payments to                           Example     At a lunch meeting with a Social
Lobbying Firms (Including Individual                                  Services Department official, in-
Contract Lobbyists)                                      house lobbyist Ron McPherson charged
Payments to lobbying firms are reported in               sandwiches and beverages on his
Section B of Part III. If a lobbying firm                employer’s credit card. Ron must itemize the
provides services other than lobbying, only              activity expense on his Form 615. His
report payments for lobbying-related                     employer must include the payment in Part III
activities. List each lobbying firm authorized           Section D “Other Payments” on the Form
to lobby on behalf of the lobbyist employer/             635.
coalition, even if no payments to the firm
have been made during the period covered                 The lobbyist employer’s disclosure of
by this report.                                          reimbursements for expenses incurred by an
                                                         in-house lobbyist depends on how the
Form 635                                                 expenses were paid:
Part III, Sections A and B
                                                         •	 If payment is made directly to the lobbyist,
                                                            the amount is reported on the Form 635 in
                                                            Part III, Section A.
                                                         •	 If the lobbyist charges an expense to an
                                                            account for which a direct payment is
                                                            made by the employer to the credit card
                                                            company or vendor, the amount is
                                                            reported on the Form 635 in Part III,
                                                            Section D.
Part III Section C. Activity Expenses
                                                         Lobbyist employers must itemize costs
Lobbyist employers must report activity                  associated with events that are activity
expenses they make, as well as activity                  expenses (e.g., a legislative reception). If a
expenses paid by their sponsored campaign                lobbyist employer shares the costs of a
committees in Section C of Part III.                     reception or similar event, list the lobbyist
                                                         employer’s payment in the total amount of


Fair Political Practices Commission               5-8	                             Lobbying Manual, 7/2005
                                                     Chapter 5 — Quarterly Disclosure Reports

activity column. Indicate in a note the total              data or statistics is not required to be

cost of the activity and that the cost was                 reported. 

shared by others. (See Chapter 4 for more
information on activity expenses.)                                       Pattie Pinkerton, a non-lobbyist
                                                             Examples
Form 635                                                                 employee of a lobbyist
Part III, Section C                                        employer, spent 75% of her time performing
                                                           secretarial duties for the lobbyist that
                                                           included tracking the status of legislation
                                                           and administrative regulations. She did not
                                                           provide analytical support to the lobbyist.
                                                           Pattie’s salary is not reportable.
                                                           During the first quarter of 2005, Marvin
                                                           Javin, a non-lobbyist employee of a
                                                           lobbyist employer, spent 30% of his time
Part III Section D. Other Payments to                      preparing testimony for the lobbyist to
Influence Legislative or Administrative                    present and 20% of his time providing
Action                                                     clerical services involving the employer’s
                                                           legislative program. Fifty percent of
Filers that are governmental agencies do not               Marvin’s salary must be reported in the
complete this section, but must use Form                   “Other Payments” section.
640 instead. (See page 5-11.) In this
section, all other filers report:                        •	 The payment of expenses incurred by a
•	 Payments made to a lobbying coalition.                   lobbyist but not paid directly to the lobbyist
                                                            (e.g., a direct payment to a credit card
•	 Compensation paid to non-lobbyist                        company).
   employees who spend 10 percent or more
   of their compensated time in any one                  •	 The payment of expenses incurred for
   calendar month in connection with                        goods or services used by a lobbyist or
   lobbying activities. This would include                  used to support or assist a lobbyist in
   time spent by non-lobbyist employees                     connection with his or her activities as a
   engaging in or urging others to engage in                lobbyist, such as legislative bill service,
   direct communication, and providing                      periodicals, automobile lease.
   research services and preparing materials               Exception: It is not necessary to report
   to be used in direct communication or in                the costs of research (e.g., books,
   connection with soliciting or urging others             surveys, studies, reports) that was
   to engage in direct communication.                      undertaken for solely non-lobbying
   Compensation includes gross wages paid                  purposes even if the research is later used
   plus any benefits which are in lieu of                  in lobbying-related communications.
   wages (e.g., granting of stock options or             •	 The payment of any other expenses that
   the purchase of annuities). It does not                  would not have been incurred but for the
   include routine fringe benefits, such as the             filer’s activities to influence or attempt to
   employer’s contributions to a health plan,               influence legislative or administrative
   retirement plan, or payroll taxes.                       action, including office overhead and
   Exception: Compensation paid to an                       operating expenses, payments to expert
   employee whose duties are solely clerical,               witnesses, and expenses incurred by
   manual, or are limited to the compilation of             employees other than a lobbyist.


Fair Political Practices Commission               5-9	                              Lobbying Manual, 7/2005
Chapter 5 — Quarterly Disclosure Reports


     Example     Tony Malone is the General               Part III Section E. Payments in
                 Counsel and lobbyist for the             Connection with Administrative
   Alliance for Public Schools. On one day,               Testimony in Ratemaking Proceedings
   he incurred travel expenses to attend a                Before the California Public Utilities
   meeting during which two hours were spent
                                                          Commission
   on legislative business and two hours on
   non-legislative business. These expenses               Report payments made in connection with
   were charged to his employer’s credit card.            administrative testimony in PUC ratemaking
   For reporting purposes, the travel                     or quasi-legislative proceedings in Section E,
   expenses (transportation, lodging and                  unless the payments are made to a lobbyist
   subsistence) may be allocated between the              or lobbying firm.
   legislative and non-legislative activities.            PUC ratemaking and quasi-legislative
•	 Payments in connection with soliciting or              proceedings are defined in Appendix 1 under
   urging persons other than employees to                 “Administrative Action” and “Administrative
   enter into direct communication with a                 Testimony.”
   reportable person for the primary purpose              Reporting payments made in connection with
   of influencing legislative or administrative           administrative testimony in PUC regulatory
   action.                                                proceedings is limited to the following:
     Example    The Alliance for Public                   •	 Compensation paid to all attorneys
                Schools sends a special                      (excluding lobbyists) for their time spent
   mailing asking readers to call their                      appearing as counsel and their time
   legislators and request a “yes” vote on                   preparing the oral testimony.
   Assembly Bill 1010. Also included in the
   mailing is non-legislative material. For               •	 Compensation paid to all witnesses
   reporting purposes, any reasonable                        (excluding lobbyists) for their time spent
   allocation method made in good faith may                  testifying and their time preparing to
   be used to determine the amount reported                  testify.
   under “Other Payments.”                                •	 Payments made for “grass-roots” lobbying
                                                             of the PUC, such as soliciting others to
Important Note:                                              urge the PUC to act in a certain way.
A lobbyist employer must retroactively
disclose in Section B payments made to a                  No other in-house expenses or overhead in
lobbying firm for initiative-related or                   connection with administrative testimony
legislative-related services (e.g. bill                   before the PUC are reportable. However,
monitoring, drafting statutes) if, within one             payments in connection with direct
year of making such payments, the lobbyist                communication outside the regulatory
employer authorizes the lobbying firm to                  proceedings may be reportable.
lobby on the same or substantially the same
matter. If the lobbyist employer had                 Form 635
                                                     Part III, Section D and E
previously reported the payments as “Other
Payments,” the payments must be deducted
from Section D and a note provided to
indicate the amount of the deduction.




Fair Political Practices Commission               5-10	                             Lobbying Manual, 7/2005
                                                      Chapter 5 — Quarterly Disclosure Reports

Questions and Answers                                         services). If applicable, a note must
                                                              indicate that the amount has been
Q. Who may sign the Report of Lobbyist
                                                              deducted from Section D, “Other
   Employer, Form 635?
                                                              Payments.”
A.	 A responsible officer of the lobbyist
    employer/lobbying coalition or an                      Q. If a lobbyist employer hires a lobbying
    attorney or certified public accountant                   firm and that lobbying firm subcontracts
    who acts as an agent of the lobbyist                      with another lobbying firm, does the
    employer/lobbying coalition may sign the                  lobbyist employer report the second
    Form 635.                                                 lobbying firm on the Form 635?
                                                           A.	 No.
Q. Must a lobbyist employer/lobbying
   coalition itemize the activity expenses                 Q. If a lobbyist employer/lobbying coalition
   incurred or paid by its lobbyist?                          terminates all lobbying activity in the
A.	 No. However, if a lobbyist arranges any                   middle of a quarter, does the period
    payment incurred by a lobbyist employer/                  covered on the statement continue
    lobbying coalition that benefits a                        through the end of the quarter?
    reportable person, both the employer and               A.	 No. The period covered on that
    the lobbyist must itemize the expense.                     statement ends on the date the lobbyist
                                                               employer/lobbying coalition terminates all
      Example    In-house lobbyist Sally Jones
                                                               lobbying activity (e.g., lobbyist employer
                 personally invites a legislator
                                                               terminates on 2/15/05. The period
    to attend a breakfast meeting with her
                                                               covered would be 1/1/05 through
    supervisor. Sally will not be attending the
                                                               2/15/05.)
    meeting. For disclosure purposes,
    because Sally arranged for the event,
    she must disclose the activity expense on              Governmental Agencies
    her Form 615. In addition, the activity
    expense must be itemized on her
                                                           Reporting of “Other Payments to
    employer’s Form 635. Because Sally                     Influence Legislative or
    arranged the meeting, the gift (e.g., food             Administration Action,” Form 640
    and beverage) may not exceed $10.                      State and local government agencies that
Q. How does a lobbyist employer/lobbying                   qualify as lobbyist employers/lobbying
   coalition retroactively report payments                 coalitions or $5,000 filers are subject to
   made to a lobbying firm for legislative-                additional disclosure requirements and are
   related or initiative-related services when             required to include Form 640 with their
   the payments are made 12 months                         quarterly lobbying reports (Form 635 or 645).
   before the lobbying firm is authorized to               Form 640 replaces Part III, Section D of
   lobby on behalf of the lobbyist employer/               Form 635 or Part II, Section B of Form 645.
   lobbying coalition?
                                                           State and local agencies are required to
A.	 On the first report covering the period the            itemize payments of $250 or more made
    lobbying firm is authorized to lobby, the              during a calendar quarter for the following:
    lobbyist employer must note in Part III,
    Section B the date the lobbying firm was
    authorized to lobby and identify the
    nature of the previous payments (e.g.,
    legislative-related or initiative-related


Fair Political Practices Commission                5-11	                            Lobbying Manual, 7/2005
Chapter 5 — Quarterly Disclosure Reports

•	 Goods or services, other than normal                     Form 640
   overhead, used by a lobbyist or used to
   support or assist a lobbyist in connection
   with his or her activities.
•	 Dues or similar payments to any
   organization, including a federation, trade,
   labor, or membership organization that is
   a lobbyist employer and makes
   expenditures equal to 10 percent of its
   total expenditures, or $15,000 or more
   during any calendar quarter to lobby the
   State Legislature or state administrative
   agencies. When reporting dues or similar
   payments, report the entire amount of the
   dues payments made during the calendar
   quarter covered by the report. It is not
   necessary to determine what portion of
   the agency’s dues payments were used
   by the organization for lobbying.
                                                           Questions and Answers
   QuickTIP Dues or similar payments made to               Q. Is a governmental agency required to
            organizations need not be counted                 include a Form 640 with its quarterly
   for purposes of determining if the agency                  report if it does not make payments that
   qualifies as a lobbyist employer/lobbying                  have to be reported as “Other Payments
   or a $5,000 filer unless the organization                  to Influence” (Part III, Section D of Form
   assesses dues or other payments                            635 or Part II, Section B of Form 645)?
   specifically for lobbying activities.
                                                           A.	 No. The Form 640 is not required as
                                                               long as the agency clearly indicates on
•	 Any other expenses, other than normal
                                                               Form 635 or 645 (including the Summary
   overhead, which would not have been
                                                               of Payments Section on page 1) that no
   incurred but for the agency’s lobbying
                                                               “other payments” were made during the
   activities.
                                                               quarter.
   “Overhead” means payments for goods or
   services that one would normally think of               Q.	 Is a governmental agency required to
   as necessary to maintain an office, such                    itemize three separate payments totaling
   as rent, utilities, janitorial services, etc.               $250 or more for travel arrangements
                                                               (e.g., $100 to a hotel, $125 to a travel
                                                               agency and $25) for an employee to
Form 640 should not include payments to                        attend a legislative hearing on its Form
salaried lobbyists, lobbying firms, activity                   640?
expenses incurred by the governmental
agency, or payments made in connection                     A.	 No, because a single payment of $250
with PUC lobbying activity.                                    was not made. However, if the employee
                                                               paid for the expenses and the agency
                                                               reimbursed the employee with a check
                                                               for $250 or more, the agency must
                                                               itemize the payment on its Form 640.


Fair Political Practices Commission                5-12	                            Lobbying Manual, 7/2005
                                                     Chapter 5 — Quarterly Disclosure Reports

Q. Is an association that is a lobbyist                   Lobbying Coalition-Related
   employer required to file Form 640 if its
   membership is comprised of
                                                          Attachments
   governmental agencies?                                 Payments Received By Lobbying
                                                          Coalitions, Form 635-C
A.	 No. Only governmental agencies that are
    lobbyist employers or $5,000 filers are               A lobbying coalition must include a Form
    required to file the Form 640.                        635-C with its quarterly Form 635 to disclose
                                                          payments received from members of the
Q. Is a governmental agency required to                   lobbying coalition. Each member of the
   report on its Form 640 the dues                        coalition must be identified on each quarterly
   payments it makes on behalf of its                     report even if the member has not made a
   employees who are members of                           payment during the quarter. If a member has
   associations that lobby (e.g., membership              not made a payment during a quarter, enter
   to the State Bar)?                                     zero and the cumulative amount received
A.	 No. Dues paid by a governmental                       since January 1 of the biennial legislative
    agency for an employee’s membership in                session.
    an organization, whether or not the
    organization lobbies, are not reportable.         Form 635-C
    Such payments are considered part of
    the employee’s routine fringe benefits.
Q. Is a county required to file Form 640 if it
   makes dues payments to the California
   State Association of Counties (CSAC) but
   does not employ a lobbyist and does not
   make payments to a lobbying firm?                      Payments Made to Lobbying
A.	 No. The county must first qualify as a                Coalitions, Form 630
    lobbyist employer or a $5,000 filer before            Lobbyist employers that are members of a
    it is required to itemize its dues payments           lobbying coalition must include Form 630
    on a Form 640.                                        with their quarterly Form 635s to disclose
Q. Is a governmental agency required to                   payments made to the coalition. Reports
   report a non-lobbyist employee’s salary                must be filed for each calendar quarter even
   on its Form 640?                                       if no payment was made.
A.	 Only if the employee spends 10% or
    more of his or her compensated time in a          Form 630
    calendar month on lobbying activity. This
    portion of the salary is considered
    overhead for purposes of disclosure on
    Form 640 and must be reported in “Other
    Payments” as a lump sum amount.
    Compensation paid to an employee whose
    duties are solely clerical, manual, or are
    limited solely to the compilation of data or
    statistics is not required to be reported.



Fair Political Practices Commission               5-13	                            Lobbying Manual, 7/2005
Chapter 5 — Quarterly Disclosure Reports

Report of Person Spending                                   Amendment to Lobbying
$5,000 or More to Influence                                 Disclosure Report, Form 690
Legislative or Administrative                               Form 690 is used to amend information
Action, Form 645                                            reported on Forms 615, 625, 630, 635, 635-
                                                            C, 640, and 645. A separate Form 690
A person who does not employ a lobbyist or
                                                            should be used for each report being
contract with a lobbying firm but makes
                                                            amended. If further clarification is needed,
payments totaling $5,000 or more in a
                                                            include the appropriate revised pages of the
calendar quarter to influence legislative or
                                                            form being amended to show changed
administrative action must report activity for
                                                            information. Electronic filers must file a
that calendar quarter on Form 645. Form
                                                            complete report when filing an amendment.
645 is not required to be filed for any quarter
in which the person does not spend $5,000.
If a person’s only expenses are activity                Form 690
expenses, they are not counted to determine
the $5,000 threshold.

  Example      The Alliance of Healthcare
               Providers paid $7,500 for
newspaper advertisements urging voters to
call their legislator for a ‘yes’ vote on AB 557.
The Alliance is not a lobbyist employer. The                There is no deadline for filing a Form 690.
Alliance must file a Form 645 and report                    However, all amendments should be filed as
$7,500 under “Other Payments to Influence                   soon as practical.
Legislative or Administrative Action.”                      The lobbyist must sign the verification if the
                                                            amendment is in connection with a Form
                                                            615. Only the designated responsible officer
Form 645                                                    of a lobbying firm can sign the verification
                                                            when the amendment is in connection with a
                                                            Form 625. In the case of an amendment
                                                            filed by a lobbyist employer/lobbying coalition
                                                            or $5,000 filer, a responsible officer or an
                                                            attorney or a certified public accountant who
                                                            acts as an agent for the entity or organization
                                                            may sign the verification.

                                                            Question and Answer
                                                            Q. To amend a quarterly report that was
                                                               filed both electronically and on paper,
                                                               must a paper amendment be filed now
                                                               that paper copies of electronically filed
                                                               reports are no longer required?
                                                            A.	 No. Only an electronic amendment is
                                                                required for Forms 615, 625, 635, 645
                                                                and attachment forms.



Fair Political Practices Commission                 5-14	                            Lobbying Manual, 7/2005
                                               Chapter 5 — Quarterly Disclosure Reports

Statutory and Regulatory References
Statutes
84309 Transmittal of Campaign
         Contributions in State Office
         Buildings
85702 Contributions from Lobbyists
86110 Recordkeeping
86111 Activity Expense; Agency Official
86112 Activity Expenses; Reporting
86113 Periodic Reports;
 Lobbyists;
         Contents

86114 Periodic Reports;
 Lobbying
86115 Periodic Reports;
 Employers and
         Others

86116 Periodic Reports;
 Employers and
         Others; Contents

86116.5 Periodic Reports; State and Local
         Government Agencies
86117 Periodic Reports; Filing; Time
86118 Periodic Reports; Where to File

Regulations
18572 Lobbyist Contributions--Making a
        Contribution Defined.
18610 Lobbyist Accounting
18611 Lobbyist Reporting
18612 Accounting by Lobbying Firms
18613 Reporting by Lobbying Firms
18614 Payments for Lobbying Services
18615 Accounting by Lobbyist Employers
        and Persons Spending $5,000 or
        More to Influence Legislative or
        Administrative Action
18616 Reports by Lobbyist Employers and
        Persons Spending $5,000 or More
        to Influence Legislative or
        Administrative Action
18616.4 Reports by Lobbying Coalitions
        Which Are Lobbyist Employers;
        Reports by Members of Lobbying
        Coalitions
18617 Early Filing of Periodic Reports




Fair Political Practices Commission         5-15                     Lobbying Manual, 7/2005
                                                                                        1-866-ASK-FPPC



Chapter 6                                                                  Chapter 6 — Recordkeeping

Recordkeeping

A recordkeeping system should ensure the                     Example    A lobbying firm received $50,000

accuracy and reliability of all information in                          from a client to:

connection with lobbying activities. Records
                                                            -- Engage in direct communication with the

must be maintained in accordance with
                                                               State Legislature on a pending law
accepted accounting principles.
                                                               enforcement bill, $15,000;
The following recordkeeping guidelines
                                                            --	 Lobby the U.S. Congress on a similar bill,
conform with FPPC regulations. The
                                                                $10,000; and
guidelines address the most common
transactions and will assist in keeping                     --	 Provide legal representation in a court
adequate records of payments received and                       case, $25,000.
payments made for lobbying activities. An                   The lobbying firm reports $15,000 on its
electronic or paper recordkeeping system                    Form 625.
may be used.
In the event of an audit, the cash                          In some circumstances, it will be necessary
disbursements records, cash receipt records,                to apportion payments based on the
and supporting documentation must be                        percentage of activity related to lobbying. If
provided so the auditor can verify the                      an allocation method is used, a written
accuracy of the reported expenses and                       statement should be prepared detailing the
receipts.                                                   percentages that are applicable for the
                                                            reporting periods and the method for
Lobbyists, lobbying firms, and lobbyist
                                                            determining those percentages. The
employers/lobbying coalitions are required to
                                                            allocation formula should be reviewed on a
keep financial records and substantiating
                                                            regular basis.
documents for a period of five years from the
date of the filer’s final report for that calendar          The example on the next page shows a
year.                                                       format for in-house memoranda.

  Example    On January 1, 2006, a filer may                QuickTIP
                                                                     FPPC Regulation 18614 clarifies
             discard records and                                     when payments to a lobbying firm are
substantiating documents maintained prior to                reportable as payments for “lobbying
January 1, 2001. Records must be kept for                   services.” The regulation addresses
calendar years 2001-2005.                                   legislative-related services, initiative-related
                                                            services, and litigation services. (See
Allocating Payments                                         Appendix 1.)
When payments are made or received for
both lobbying and non-lobbying activities,
only payments in connection with attempting
to influence the California State Legislature
or state administrative agencies should be
disclosed.




Fair Political Practices Commission                  6-1	                             Lobbying Manual, 7/2005
Chapter 6 — Recordkeeping

                                                                       •	 A breakdown of the total amount showing
                    Industrial Buildings, Inc.
                                                                          the amount of benefit received by each
 January 15, 2005                                                         person;
 Memorandum                                                            •	 The full name, official position, and, if
                                                                          applicable, the state agency of the
 To: File
 From:    Accounting Office                                               reportable person(s) who benefited from
 Subject: Lobbying Activity                                               the activity expense. The names of
 Based on a review of our lobbyist’s 2004 timesheets, we have
                                                                          nonreportable individuals do not have to
 determined that during the first three quarters of 2004, 75              be listed; and
 percent of her time was spent on lobbying activities. During
 the fourth quarter, the rate was 10 percent. Since our activities     •	 The total number of beneficiaries.
 are fairly consistent from year to year, we have decided to
 apply the 2004 allocations to 2005. We will review our                             Six individuals, including two
 activities each quarter to ensure that no significant changes           Example
 have occurred. Therefore, for purposes of reporting salary to                      legislators, attended a dinner
 our lobbyist and other expenses to support the lobbyist, we will      party hosted by a lobbyist employer. The
 allocate as follows:
                                                                       two legislators’ names and position titles,
 1st, 2nd, and 3rd Quarters     75%                                    and the total number of individuals in
 4th Quarter                    10%
                                                                       attendance, must be documented.
 Compensation paid to other employees who spend 10 percent
 or more of their compensated time on lobbying activities varies       If it is not possible to get a receipt or invoice
 and will, therefore, be calculated each quarter.
                                                                       to support an expenditure, a written voucher
 With respect to overhead and operating expenses, a review of
 our records for 2004 indicates that during the first, second, and
                                                                       must be prepared to support the
 third quarters, 15 percent of our overhead and operating              expenditure. The voucher must be prepared
 expenses were directly attributable to lobbying activities.           in a timely manner (the same day of the
 During the fourth quarter, the rate was less than one percent.
 Unless significant changes occur, 2005 operating and                  expenditure) and must contain the
 overhead expenses will be allocated as follows:                       information listed above. In most cases, the
 1st, 2nd, and 3rd Quarters     15%                                    names and the number of beneficiaries must
 4th Quarter                    -0-                                    be added to the receipt or invoice, or
                                                                       attached on a separate document, since this
                                                                       information is not normally listed.
Activity Expenses
A cash disbursements journal or other form                             Campaign Contributions
of record must be maintained that shows all                            Records of all monetary (including loans) and
activity expenses incurred, paid, or                                   nonmonetary contributions of $25 or more
reimbursed.                                                            made to a state candidate, an elected state
Substantiating documentation, including                                officer, a committee controlled by an elected
restaurant or credit card receipts, invoices, or                       state officer or state candidate, or a committee
canceled checks, must also be maintained                               primarily formed to support such an
for each activity expense.                                             officeholder or candidate must be maintained.
The substantiating documentation must                                  The cash disbursements records must
contain the following information:                                     contain the following information:
•	 The full name of the payee;                                         •	 The full name of the payee and the full
                                                                          name of the recipient of the contribution if
•	 A description of the goods or services for
                                                                          other than the payee;
   which the payment was made;
                                                                       •	 The date of the contribution;
•	 The date and amount of the payment;


Fair Political Practices Commission                             6-2	                             Lobbying Manual, 7/2005
                                                                       Chapter 6 — Recordkeeping

•	 The amount of the contribution;                       Payments Received and Made by
•	 In the case of a nonmonetary contribution,            Lobbying Firms
   a description of the goods or services or             A cash receipts journal or other form of record
   other consideration provided; and                     must be maintained showing all payments
•	 In the case of a contribution personally              received for lobbying services (e.g., fees,
   delivered by a lobbyist on behalf of another          retainers, reimbursements). The records
   person, the name of the contributor.                  must contain the following information:
                                                         •	 The date each payment was received by
Substantiating documentation must also be
                                                            the lobbying firm;
maintained, including canceled checks and
other bank records supporting the monetary               •	 The full name of each person who makes
contributions. Such documentation may also                  payments to the lobbying firm;
include correspondence and fundraising                   •	 The amount of each payment;
invitations.
                                                         •	 The calendar quarter during which the
Important Notes:                                            services paid for were rendered.
•	 Lobbyists are prohibited from making                  If a lobbying firm subcontracts with another
   contributions to certain state candidates,            lobbying firm, including an independent
   officeholders, committees controlled by               contract lobbyist, for lobbying services, the
   them, or committees primarily formed to               cash disbursements records must contain
   support or oppose certain state                       the payments made to the subcontractor,
   candidates or officeholders. (See Chapter             including:
   7 for more information.)
                                                         •	 The full name of the client/lobbyist
•	 For information regarding the “delivery” of              employer;
   campaign contributions, see Chapter 7.
                                                         •	 The full name of the subcontractor;
•	 Lobbying firms and lobbyist employers/
   lobbying coalitions that are required to              •	 The date of each payment; and
   maintain records as campaign committees               •	 The amount of each payment.
   are not required to keep separate records
                                                         Substantiating documentation must be
   for lobbying disclosure. The records
                                                         maintained, including copies of contracts or
   required for campaign disclosure
                                                         correspondence, canceled checks, bank
   statements meet the lobbying
                                                         statements, and invoices.
   recordkeeping requirements for the
   campaign contributions reported on a
   lobbying disclosure report. This                      Payments Made by Lobbyist
   documentation may be requested in an                  Employers/Lobbying Coalitions
   audit.                                                All payments made to an in-house employee
                                                         lobbyist, such as salaries, fees,
 Example    A lobbyist employer sponsors a               reimbursements of expenses, advances, or
            general purpose committee                    other payments, must be recorded in the
(“PAC”) and regularly files campaign                     disbursements records. Salary includes
statements (Form 460). As long as the PAC                gross wages paid, plus any fringe benefits
maintains the required supporting                        that are in lieu of wages but does not include
documentation, separate documentation is                 routine fringe benefits such as the
not required in the lobbying records.                    employer’s contributions to a health plan or


Fair Political Practices Commission               6-3	                             Lobbying Manual, 7/2005
Chapter 6 — Recordkeeping

retirement plan or payroll taxes. The                    • The payment of expenses incurred by an
disbursements records must include:                        in-house lobbyist, but not paid to the
                                                           lobbyist (e.g., credit card charges billed
•	 The full name of the lobbyist;
                                                           directly to the employer or car lease);
• The date of the payment; and
                                                         •	 The payment of expenses incurred for

• The amount of the payment.
                               goods or services used by a lobbyist or
For each payment made to a lobbying firm
                   used to support or assist a lobbyist in
(including an independent contract lobbyist)
               connection with his or her activities as a
for lobbying services, the disbursements 
                  lobbyist;
records must show: 
                                     • The payment of any other expenses that
• The full name of the lobbying firm that	                 would not have been incurred but for the
  received the payment;	                                   filer’s activities to influence or attempt to
                                                           influence legislative or administrative
• The date of the payment;	                                action, including office overhead,
• The amount of the payment; and	                          operating expenses, and payments to
                                                           expert witnesses; and
•	 The calendar quarter during which the
   services paid for were rendered.                      • Payments made by a lobbyist employer to
                                                           a lobbying coalition.
Substantiating documentation must be                        For each “other payment,” the
maintained, including canceled checks,                      disbursements records must include:
receipts or invoices, and bank statements.
                                                            −	 The full name of the payee;
Other Payments to Influence                                 − The date of the payment;
Legislative or Administrative Action                        − The amount of the payment; and
“Other payments” by lobbyist employers/
                                                            − A description of the goods or services
lobbying coalitions include:
                                                              or other consideration for which the
•	 Compensation paid to non-lobbyist                          payment was made.
   employees who spend 10 percent or more                   Following is a list of some of the types of
   of their compensated time in any one                     payments that are required to be disclosed
   calendar month in connection with                        under “Other Payments to Influence”:
   lobbying activities.
                                                            − Bill service;

   Compensation includes gross wages paid
   plus any benefits that are in lieu of wages              − Bill monitoring services; 

   such as the granting of stock options or                 −	 Payments made directly to a vendor for

   the purchase of annuities. It does not                      the lobbyist’s air travel, meals, and

   include routine fringe benefits, such as the                automobile expenses;

   employer’s contributions to a health plan,

   retirement plan, or payroll taxes.                       − Conference fees for a lobbyist;

   Exception: This does not include
                        −	 Payments to a public relations firm for
   employees or contractors who provide 
                      advice, goods, or services in
   solely secretarial, clerical, or manual
                    connection with influencing legislative
   services or only compile data.
                             or administrative action;




Fair Political Practices Commission               6-4	                             Lobbying Manual, 7/2005
                                                         Chapter 6 — Recordkeeping

   −	 Payments to a law firm for drafting or
      analyzing legislation when the firm
      does not engage in direct
      communication on behalf of the lobbyist
      employer/lobbying coalition; and
   −	 Payments for informational brochures,
      videos, pamphlets, and similar
      materials specifically designed for
      lobbying purposes.

Exception: Payments for research that is
undertaken for non-lobbying purposes are
not required to be reported even if the results
are subsequently used in lobbying-related
videos, pamphlets, etc.

Payments in Connection with
Administrative Testimony in
Proceedings Before the California
Public Utilities Commission
Filers reporting expenses incurred in
connection with proceedings before the
California Public Utilities Commission must
maintain records of compensation paid to
attorneys for their time spent appearing or
preparing to appear as counsel in those
proceedings, and compensation paid to
witnesses for their time spent testifying or
preparing to testify at those proceedings.
For each payment, the disbursements
records must include:
•	 The full name of the payee;
•	 The date and amount of the payment; and
•	 A description of the payment.




Fair Political Practices Commission               6-5	           Lobbying Manual, 7/2005
Chapter 6 — Recordkeeping


Sample Recordkeeping Journal
The following is an example of a recordkeeping journal that may be used as a guideline. Any
system of recordkeeping is permissible if it is in accordance with accepted accounting
principles. In the event of an audit, journals and all substantiating documentation must be
provided so that the auditor can verify the accuracy of the information disclosed.




Check                          Name and Address                                    Total      Percent
        Cash    Date                                         Description                                Amount
 No.                               of Payee                                       Amount     Lobbying
Other Payments:
                             Mid-Town Rentals
                   2005
  150                        200 C Street                    Office Space         6,000.00     50%      3,000.00
                   1/24
                             Sacramento, CA
                             E-Z Travel
  180                 2/8    100 Broadway              Lobbyist Travel to S.F.     186.00     100%       186.00
                             Sacramento, CA
 Activity Expenses:
                             Sam’s Club
                                                       Lunch Sen. Smith $9.98
            X         1/19   900 Capitol Avenue                                     24.30     100%        24.30
                                                         Dan D. Lyon $14.32
                             Sacramento, CA
                             Bank of Charlie Brown      Lunch Trevor Green
                             Visa                          Consultant to
  210                 3/23   Café Condor              Assemblywoman Amelia          22.52     100%        22.52
                             9 Front Street                Tiburon $9.56
                             Sacramento                 Sharon Silva $12.96
 Campaign Contributions:
                             Sally Grindley for Senate
                                                       Campaign Contribution ID
  340                 3/6    103 Malton Blvd.                                      250.00      N/A       250.00
                                                              #952468
                             Shasta, CA
                             Snappy Buttons
                             703 Broadway               Campaign Contribution
  345                 3/10   Sacramento, CA            Non-monetary ID #958899     632.00      N/A       632.00
                             Committee to Elect Zelda      Election Buttons
                             Corey
 Payments to Lobbyists:
                             Dan D. Lyon
                                                             Salary               5,000.00     50%      2,500.00
  348                 3/1    3600 Sandpiper Drive
                                                      Reimburse. of Expenses        800.00    100%        800.00
                             Sacramento, CA
 Payments Received:
                                                          SR Services, Inc.
                                                         December Retainer        9,000.00    100%      9,000.00
 1369                 3/5
                                                         Reimbursement of           600.00    100%        600.00
                                                             Expenses




Fair Political Practices Commission                    6-6                               Lobbying Manual, 7/2005
                                                        Chapter 6 — Recordkeeping


Audits
Lobbying firms and lobbyist employers/
lobbying coalitions that employ one or more
lobbyists will be subject to audit on a random
basis every two years and will have a 25
percent chance of being audited. When a
lobbying firm or lobbyist employer/lobbying
coalition is selected for audit, all of the
individual lobbyists employed by the firm or
employer will also be audited. Audits are
conducted by the Franchise Tax Board.

Statutory and Regulatory References
Statutes
82002 Administrative Action
82032 Influencing Legislative or
       Administrative Action
82037 Legislative Action
82045 Payment to Influence Legislative or
       Administrative Action
86110 Recordkeeping

Regulations
18610 Lobbyist Accounting
18611 Lobbyist Reporting
18612 Accounting by Lobbying Firms
18613 Reporting by Lobbying Firms
18614 Payments of Lobbying Services
18615 Accounting by Lobbyist Employers
       and Persons Spending $5,000 or
       More to Influence Legislative or
       Administrative Action
18616	 Reports by Lobbyist Employers and
       Persons Spending $5,000 or more to
       Influence Legislative or
       Administrative Action




Fair Political Practices Commission              6-7	           Lobbying Manual, 7/2005
                                                                                         1-866-ASK-FPPC



Chapter 7                                                                       Chapter 7 — Restrictions

Restrictions

This chapter provides an overview of                          A lobbyist is not prohibited from advising his
important restrictions regarding campaign                     or her clients or employer regarding the
contributions, gifts, honoraria, lobbying                     making of a contribution.
conduct, disqualification of public officials,
and post-governmental employment                               Examples     Bert Rogers is registered to
restrictions for former state officials. Only                               lobby the Legislature and the
these provisions are discussed. Refer to the                  Attorney General's office. He is prohibited
referenced statutes and regulations for                       from making a contribution to any State
specific information.                                         Assembly member or Senator, any legislative
                                                              candidate, the Attorney General, any
Campaign Contributions                                        candidate for Attorney General, any of their
                                                              controlled committees, or any committee
Restrictions on Lobbyists and                                 primarily formed to support or oppose such
Campaign Contributions                                        candidates. This prohibition would apply to
Lobbyists may not mail, deliver, or otherwise                 any ballot measure, local candidate, or legal
transmit a campaign contribution, including a                 defense fund committees the state
nonmonetary contribution, from their own                      candidates or officials may control.
personal assets to the following: 1) an elected               However, Bert may contribute to any other
state official, 2) a candidate for elective state             state official, such as the Secretary of State
office, 3) a state or local committee controlled              or Controller, or candidates for these offices.
by the state official or candidate, or 4) a                   Bert must report contributions he makes on
committee primarily formed to support or                      his Form 615.
oppose such a candidate if the candidate is                   Melissa Tamonang is a lobbyist registered to
seeking an office with, or the official is an                 lobby the Legislature. While Melissa is
elected officeholder of, an agency the lobbyist               prohibited from making a contribution to any
is registered to lobby. This prohibition applies              State Assembly member or Senator, any
to any legal defense fund committees                          legislative candidate, any of their controlled
controlled by such a state official or                        committees, or any committee primarily
candidate.                                                    formed to support or oppose such
A business entity, including a lobbying firm,                 candidates, Melissa’s spouse may make a
may not contribute to such a state elected                    contribution. If the spouse uses their joint
official or candidate if it is owned, in whole or in          checking account, he must sign the check.
part, by a lobbyist and the lobbyist participates             Dana Bethel is a lobbyist for the California
in the decision to make the contribution.                     Furniture Manufacturers’ Coalition and is
Otherwise, lobbying firms are not prohibited                  registered to lobby the State Legislature, the
from making campaign contributions.                           Governor, and all state agencies.
A campaign committee is prohibited from                       •	 Dana contributes to and sits on the board
making a contribution to such a state elected                    of a general purpose recipient committee
official or candidate if the contribution is                     for a state environmental group. Dana
comprised of the personal assets of a                            may not participate when the board
lobbyist, in whole or in part, and the lobbyist                  decides which state candidates to support
participates in the decision to make the                         with a contribution.
contribution.

Fair Political Practices Commission                    7-1	                            Lobbying Manual, 7/2005
Chapter 7 — Restrictions

•	 Dana makes a personal contribution to                contributions to state candidates, are also
   another general purpose recipient                    subject to contribution limits. These limits
   committee formed to support candidates               are reviewed for adjustment every odd-
   that endorses the committee’s views on               numbered year. For easy reference, the
   taxation. Dana does not participate in               FPPC’s website, www.fppc.ca.gov, posts the
   deciding which state candidates receive              current limits in effect.
   contributions from this committee. Dana’s
   contribution does not preclude the                   Delivery of Campaign Contributions
   committee from making contributions to               No person may deliver or accept a campaign
   state officials.                                     contribution in the State Capitol, a state
Sandra Monahan is a lobbyist who lobbies                office building, or any building for which the
only the PUC. She is asked by a candidate               State of California pays the majority of the
for State Controller to make a contribution to          rent. This includes delivery of a copy of a
his campaign. Sandra may make the                       contribution check or a contribution
contribution since she is not registered to             transmittal letter. Contributions sent to the
lobby the State Controller’s office and must            State Capitol or other building by mail, and
report the contribution on her next Form 615.           contributions delivered to a legislator’s
Later that same month, Sandra is asked to               district office, are not prohibited.
attend a fundraiser for a PUC commissioner
who is also seeking election to the State               Gift Limit for Lobbyists and
Assembly. Sandra declined because she is                Lobbying Firms
prohibited from making a contribution to this
candidate.                                              No lobbyist or lobbying firm may:
                                                        •	 Make a gift(s) aggregating more than ten
A lobbyist is permitted to make contributions              dollars ($10) in a calendar month, act as
to federal candidate committees controlled                 an agent or intermediary in the making of
by a state officeholder or candidate. A                    such a gift, or arrange such a gift to any of
lobbyist may also make a personal                          the following officials:
contribution to political parties and state
general purpose recipient committees, as                  −	 A state candidate;
long as the lobbyist does not participate in              −	 An elected state officer;
deciding whether contributions will be made
by the parties or committees to support or                −	 A legislative official;
oppose state candidates. A lobbyist may                   −	 An agency official employed by an
also contribute to a committee formed to                     agency that is or should be listed on the
support or oppose the recall of a state                      lobbying registration statement.
officeholder, as long as the committee is not
controlled by a state officeholder or                      A lobbyist or lobbying firm “arranges for
candidate whose office the lobbyist is                     the making of a gift” if the lobbyist or
registered to lobby. These contributions are               lobbying firm, either directly or through an
not reported on the Form 615.                              agent, does any of the following:
                                                          −	 Delivers a gift to the recipient;
Contribution Limits
                                                          −	 Acts as the representative of the donor,
Candidates for state office are subject to                   if the donor is not present at the
contribution limits. Campaign committees,                    occasion of a gift. This does not
including political parties, which make                      include accompanying the recipient to


Fair Political Practices Commission              7-2	                              Lobbying Manual, 7/2005
                                                                              Chapter 7 — Restrictions

      an event where the donor will be                       the name of any real person, except with
      present;                                               the consent of such real person;
   −	 Invites or sends an invitation to an
               •	 Represent falsely either directly or
      intended recipient regarding the
                      indirectly that the lobbyist or lobbying firm
      occasion of a gift;
                                   can control the official action of any
                                                             elected state officer, legislative official, or
   −	 Solicits responses from an intended                    agency official; or
      recipient concerning his or her
      attendance or non-attendance at the                 •	 Accept or agree to accept any payment in
      occasion of a gift; or                                 any way contingent upon the defeat,
                                                             enactment, or outcome of any proposed
   −	 Acts as an intermediary in connection                  legislative or administrative action.
      with the reimbursement of a recipient’s
      expenses.                                           General Prohibitions for Officials
Chapter 4 provides a detailed overview of the             The following restrictions apply to public
gift restrictions.                                        officials and are only briefly reviewed to
                                                          acquaint lobbying filers of other restrictions in
                                                          the Political Reform Act.
General Prohibitions for
Lobbyists and Lobbying Firms                              Gift Limit
No lobbyist or lobbying firm may:                         Legislative officials, most state and local
•	 Do anything for the purpose of placing any             officials and employees, and candidates for
   elected state officer, legislative official,           state and local office may not accept gifts
   agency official, or state candidate under              from a single source aggregating more than
   personal obligation to the lobbyist,                   $360 in a calendar year. The gift limit is
   lobbying firm, or a lobbyist employer,                 adjusted each odd-numbered year to reflect
   including making secured or unsecured                  changes in the Consumer Price Index, and
   loans;                                                 was last adjusted January 1, 2005. Certain
                                                          payments are not subject to the gift limit. For
•	 Deceive or attempt to deceive any elected
                                                          further information, refer to Chapter 4.
   state officer, legislative official, agency
   official, or state candidate with regard to
   any material fact pertinent to any pending             Honoraria Ban
   or proposed legislative or administrative              Legislative officials, most state and local
   action;                                                officials and employees, and candidates for
•	 Cause or influence the introduction of any             state and local office may not accept
   bill or amendment thereto for the purpose              honoraria payments. “Honorarium” means
   of thereafter being employed to secure its             any payment made in consideration for any
   passage or defeat;                                     speech given, article published, or
                                                          attendance at any public or private
•	 Attempt to create a fictitious appearance              conference, convention, meeting, social
   of public favor or disfavor of any proposed            event, meal, or like gathering.
   legislative or administrative action or
   cause any communication to be sent to                  However, honorarium does not include
   any elected state officer, legislative                 earned income for personal services that are
   official, agency official, or state candidate          customarily provided in connection with the
   in the name of any fictitious person or in             practice of a bona fide business, trade, or


Fair Political Practices Commission                7-3	                              Lobbying Manual, 7/2005
Chapter 7 — Restrictions

profession, such as teaching, practicing law,             State agency officials are also prohibited
medicine, insurance, real estate, banking, or             from participating in certain governmental
building contracting, unless the sole or                  decisions when they are negotiating
predominant activity of the business, trade,              employment or have an employment
or profession is making speeches. A fact                  arrangement with a prospective employer.
sheet titled “Limitations and other
Restrictions on Gifts, Honoraria, Travel and              Important Note:
Loans for State Officials” is a good reference            Legislators are not subject to the lifetime
document available on FPPC’s website at                   ban, but are prohibited from lobbying the
www.fppc.ca.gov.                                          Legislature for one year. Employees of the
                                                          Legislature are not subject to either the one-
Disqualification                                          year or lifetime revolving door provisions.
A state official may need to disqualify himself
or herself from voting or otherwise                       Questions and Answers
participating in a governmental decision                  Q. May a lobbyist registered to lobby the
affecting a source of income (including a                    Legislature make a contribution to a
person that has provided a gift to the public                ballot measure committee controlled by
official) if the payment was received or                     an Assembly member or State Senator?
promised to the official within 12 months
preceding the decision. Whether an official               A.	 No. A lobbyist may not make a
must disqualify himself or herself relies                     contribution to state or local committee
heavily on the facts of each governmental                     controlled by a candidate or officeholder
decision.                                                     if the lobbyist is registered to lobby the
                                                              candidate or officeholder’s agency.
Post-Governmental Employment                              Q. May a lobbyist employer deliver a
Restrictions – Revolving Door                                campaign contribution in a legislator’s
Provisions                                                   Capitol inner office?
The Act restricts the lobbying activities of              A.	 No. Even though there is no prohibition
certain state agency officials once the official              on lobbyist employers making a
has left government employment. Many                          contribution to a state legislator’s
officials are subject to both a one-year and a                campaign, nowhere in the Capitol
lifetime lobbying ban.                                        building may a contribution be delivered
                                                              personally, unless it is also the
•	 One-year ban: State agency officials are                   legislator’s district office.
   prohibited for 12 months after leaving an
   agency from receiving compensation to                  Q. May a lobbyist make a contribution to a
   appear before or communicate with the                     legislator’s committee for federal office
   agency to influence certain agency                        even if the lobbyist would otherwise be
   decisions; and                                            prohibited from making a contribution to
                                                             the legislator’s state committee?
•	 Lifetime ban: A state agency official may
   never receive compensation for the                     A.	 Yes. There is no prohibition under the
   purpose of appearing before, or assisting                  Act on lobbyists making contributions to a
   another person in appearing before, a                      candidate's committee for federal office.
   former agency in certain proceedings on
   which the official worked while employed
   by the agency.


Fair Political Practices Commission                7-4	                            Lobbying Manual, 7/2005
                                                                           Chapter 7 — Restrictions

Q. The partners of a lobbying firm are not                  source. (The gift limit is adjusted every
   lobbyists. May these partners make a                     odd-numbered year.)
   contribution to a state candidate from
                                                         Q. When a lobbyist has lunch with a
   funds of the lobbying firm?
                                                            reportable person and the reportable
A.	 Yes. A lobbying firm may make a                         person pays for his or her own lunch,
    contribution to a state candidate, as long              must the lobbyist report the lunch as an
    as a lobbyist does not participate in the               activity expense?
    decision to make a contribution.
                                                         A.	 No. The reportable person has not
Q. I am registered to lobby the Secretary of                 received a gift because he or she paid for
   State’s office. May I attend the fundraiser               his or her own lunch.
   of a candidate running for that office if I
                                                         Q. What is the maximum amount a lobbyist
   use my employer’s funds to pay for
                                                            employer/lobbying coalition or $5,000 filer
   attendance?
                                                            may spend on an official during the
A.	 Yes. The prohibition against a lobbyist                 calendar year?
    making a contribution to state candidates
                                                         A.	 The gift limit is $360 per official in a
    does not preclude a lobbyist from
                                                             calendar year. This amount is adjusted
    delivering a contribution made by his or
                                                             every odd-numbered year.
    her lobbyist employer.
                                                         Q. May a lobbyist receive “contingency”
Q.	 May a lobbying firm reimburse or make
                                                            payments based on the outcome of
    payments to its lobbyist for the purpose
                                                            legislative or administrative actions?
    of entertaining officials at the lobbyist’s
    home?                                                A.	 No. Lobbyists are prohibited from
                                                             accepting or agreeing to accept any
A.	 Yes, as long as the fair market value of
                                                             payment that is in any way contingent
    the food and beverage provided to each
                                                             upon the defeat, enactment, or outcome
    official does not exceed $10. However, a
                                                             of any proposed legislative or
    lobbyist may entertain officials in the
                                                             administrative action.
    lobbyist’s home without regard to the $10
    gift limit as long as no one reimburses the          Q. May a lobbying firm receive a
    lobbyist; the cost for entertaining the                 contingency fee for obtaining a state
    officials is not claimed as a tax deduction             contract for a client?
    by the lobbyist; and no portion of the
    lobbyist’s salary is allocated for home              A.	 Yes. The definition of “lobbying” does not
    entertainment. (See Chapter 4.)                          include bidding for a state contract.
                                                             Therefore, the prohibition on lobbying
Q. Will a $300 gift of dinner and                            contingency fees does not apply.
   entertainment provided to an official by a
   lobbyist employer violate the $10 gift
   limit?                                                Statutory and Regulatory References
A.	 The $10 gift limit does not apply to                 Statutes
    lobbyist employers as long as a lobbyist             84309 	 Transmittal of Campaign
    or lobbying firm is not involved in making                    Contributions in State Office
    or arranging the gift. However, most                          Buildings
    officials may not receive gifts that exceed          85301 	 Limits on Contributions from
    $360 in a calendar year from a single                         Persons



Fair Political Practices Commission               7-5	                            Lobbying Manual, 7/2005
Chapter 7 — Restrictions

85303   Limits on Contributions to
        Committees and Political Parties
85702   Contributions from Lobbyists
86201   Gift
86203   Unlawful Gifts
86205   Acts Prohibited
87100   Public Officials; State and Local
87102.5 Legislature; Use of Position to
        Influence Decisions
87401   Restrictions on Activities of Former
        State Officers
87402   Restrictions on Activities of Former
        State Officers; Assisting Others
87406   Milton Marks Postgovernmental
        Employment Restrictions Act
89501   Honoraria
89502   Honorarium
89503   Gift Limits

Regulations
18439    Definition of “Personally Deliver”
18545    Contribution Limit and Voluntary
         Expenditure Ceiling Amounts
18572    Lobbyist Contributions -- Making a
         Contribution Defined
18624    Lobbyist Arranging Gifts
18625    Loans from Lobbyist or Lobbying
         Firm; Placing Official Under
         Personal Obligation
18940.2 Gift Limit Amount




Fair Political Practices Commission            7-6   Lobbying Manual, 7/2005
                                                                                  1-866-ASK-FPPC



Appendix 1 
                                                            Appendix 1 — Definitions

Definitions 


Note:                                                 to, general rate cases, performance-based
All statutory references are to the California        ratemaking, and other ratesetting
Government Code. The Political Reform Act             mechanisms.
is found in Government Code sections                  “Quasi-legislative proceeding” means, for
81000-91014. Commission regulations may               purposes of a proceeding before the Public
be found in Title 2, sections 18109-18997 of          Utilities Commission, any proceeding that
the California Code of Regulations.                   involves consideration of the establishment
                                                      of a policy that will apply generally to a group
$5,000 Filer                                          or class of persons including, but not limited
(Section 86115)                                       to, rulemakings and investigations that may
Any person who does not employ a lobbyist             establish rules affecting an entire industry.
or contract with a lobbying firm, but who             Exception: A proceeding of a state agency is
directly or indirectly makes payments of              not a quasi-legislative proceeding if it is any
$5,000 or more in any calendar quarter to             of the following:
influence legislative or administrative action.
                                                      •	 A proceeding to determine the rights or
Activity Expense                                         duties of a person under existing laws,
(Section 86111)                                          regulations, or policies;

An expense that either wholly or partially            •	 A proceeding involving the issuance,
benefits an elected state official, a legislative        amendment, or revocation of a permit or
official, a state agency official, a state               license;
candidate, or a member of the immediate               •	 A proceeding to enforce compliance with
family of such an official or candidate.                 existing law or to impose sanctions for
Activity expenses include gifts, honoraria,              violations of existing law;
consulting fees, salaries, and any other form         •	 A proceeding at which an action is taken
of compensation, but do not include                      involving the purchase or sale of property,
campaign contributions.                                  goods, or services by such agency;

Administrative Action                                 •	 A proceeding at which an action is taken
(Section 82002; Regulation 18202)                        that is ministerial in nature;

The proposal, drafting, development,                  •	 A proceeding at which an action is taken
consideration, amendment, enactment, or                  awarding a grant or contract; or
defeat by any state agency of any rule,               •	 A proceeding involving the issuance of a
regulation, or other action in any rate-making           legal opinion.
proceeding or any quasi-legislative
proceeding.                                           Administrative Testimony
“Rate-making proceeding” means, for the               (Regulation 18239)
purposes of a proceeding before the Public            Influencing or attempting to influence
Utilities Commission, any proceeding in               administrative action by acting as counsel in,
which it is reasonably foreseeable that a rate        appearing as a witness in, or providing
will be established, including, but not limited       written submissions, including answers to


Fair Political Practices Commission          Appendix 1-1 	                     Lobbying Manual, 7/2005
Appendix 1 — Definitions

inquiries, which become part of the record of        •	 Solicits responses from an intended
any regulatory or administrative agency’s               recipient concerning his or her attendance
proceeding:                                             or nonattendance at the occasion of a gift;
•	 Which is conducted as an open public              •	 Is designated as the representative of the
   hearing for which public notice is given;            donor to receive responses from an
                                                        intended recipient concerning his or her
•	 Of which a record is created in a manner
                                                        attendance or nonattendance at the
   that makes possible the creation of a
                                                        occasion of a gift; or
   transcript; and
                                                     •	 Acts as an intermediary in connection with
•	 With respect to which full public access is
                                                        the reimbursement of a recipient’s
   provided to such record or transcript and
                                                        expenses.
   to all written material that is submitted to
   become part of the record.
                                                     Elected State Officer
                   OR                                (Sections 82021 and 82024)
Any communication made at a public hearing,
public workshop, public forum, or included in        Any person who holds the office of Governor,
the official record of any proceeding, as            Lieutenant Governor, Attorney General,
defined in section 82002(b) or (c), before the       Controller, Secretary of State, Treasurer,
California Public Utilities Commission.              Superintendent of Public Instruction,
                                                     Insurance Commissioner, Member of the
Agency Official                                      Legislature, Member elected to the Board of
(Sections 82004 and 86111)                           Administration of the Public Employees’
                                                     Retirement System, Member of the State
Any member, officer, employee, or consultant         Board of Equalization, or any person who
of a state agency whose administrative actions       has been elected to such an office but has
the lobbyist, lobbying firm, lobbyist employer/      not yet taken office. A person who is
lobbying coalition, or $5,000 filer has              appointed to fill a vacant elective state office
attempted or is attempting to influence. (Does       is an elected state officer.
not include persons who work in a purely
clerical, secretarial, or ministerial position.)     Exceptions to Gift and Exceptions to
                                                     Gift Limits
Arranging a Gift                                     (Regulation 18942)
(Regulation 18624)
                                                     (a) None of the following is a gift and none is
A lobbyist arranges for the making of a gift if          subject to any limitation on gifts:
the lobbyist, either directly or through an
agent, does any of the following:                        (1) 	 Informational material as defined by
                                                               regulation 18942.1.
•	 Delivers a gift to a recipient;
                                                         (2) 	 Except for passes and tickets as
•	 Acts as the representative of the donor, if                 provided in regulation 18946.1, a gift
   the donor is not present at the occasion of                 that is not used and that, within 30
   a gift. This does not include                               days after receipt, is returned or
   accompanying the recipient to an event                      donated pursuant to regulation
   where the donor will be present;                            18943, or for which reimbursement
•	 Invites or sends an invitation to an                        is paid pursuant to regulation 18943.
   intended recipient regarding the occasion             (3) 	 A gift from an individual’s spouse,
   of a gift;                                                  child, parent, grandparent,


Fair Political Practices Commission         Appendix 1-2 	                     Lobbying Manual, 7/2005
                                                                          Appendix 1 — Definitions

          grandchild, brother, sister, parent-in-               program established by a bona fide
          law, brother-in-law, sister-in-law,                   charitable organization exempt from
          nephew, niece, aunt, uncle, or first                  taxation under Section 501(c)(3) of
          cousin or the spouse of any such                      the Internal Revenue Code designed
          person, unless the donor is acting as                 to provide disaster relief or food,
          an agent or intermediary for any                      shelter, or similar assistance to
          person not identified in this                         qualified recipients if such payments
          subdivision (a)(3).                                   are available to members of the
    (4) 	 A campaign contribution required to                   public without regard to official
          be reported under the Government                      status.
          Code, Title 9, Chapter 4                         (11) Free admission, and refreshments
          (commencing with section 84100).                      and similar non-cash nominal
    (5) 	 Any devise or inheritance.                            benefits provided to a filer during the
                                                                entire event at which the filer gives a
    (6) 	 A personalized plaque or trophy with                  speech, participates in a panel or
          an individual value of less than two                  seminar, or provides a similar
          hundred fifty dollars ($250).                         service, and actual intrastate
    (7) Hospitality (including food,                            transportation and any necessary
        beverages, or occasional lodging)                       lodging and subsistence provided
        provided by an individual in his or                     directly in connection with the
        her home when the individual or a                       speech, panel, seminar, or service,
        member of the individual’s family is                    including but not limited to meals
        present, to an official. (Note: See                     and beverages on the day of the
        regulation 18630 for the rule                           activity. These items are not
        concerning “home hospitality”                           payments and need not be reported
        provided by a lobbyist.)                                by any filer.
    (8) 	 Presents exchanged between an                    (12) The transportation, lodging, and
          official who is required to file a                    subsistence specified by regulation
          statement of economic interests and                   18950.4.
          an individual, other than a lobbyist,        (b) The following items, if they are otherwise
          on holidays, birthdays, or similar               gifts, are exempt from the limitations on
          occasions provided that the presents             gifts described in section 89503:
          exchanged are not substantially
          disproportionate in value.                       (1) 	 Payments for transportation, lodging,
                                                                 and subsistence that are exempt
    (9) Leave credits, including vacation, sick                  from limits on gifts by section 89506
        leave, or compensatory time off,                         and regulation 18950, et seq.
        donated to an official in accordance
        with a bona fide catastrophic or similar           (2) 	 Wedding gifts.
        emergency leave program established
        by the official’s employer and available       Filer
        to all employees in the same job               (Section 82026)
        classification or position. This shall not     A person who is required to file a report
        include donations of cash.                     under the Political Reform Act.
    (10) Payments received under a
         government agency program or a


Fair Political Practices Commission           Appendix 1-3 	                      Lobbying Manual, 7/2005
Appendix 1 — Definitions


Gift                                                             payments are used to make gifts to
(Section 82028)                                                  officials, that person is not the source
                                                                 of the gifts to those officials.
Except as provided in Regulation 18942, a
                                                                 However, the person is the source of
gift is any payment that confers a personal
                                                                 the gift if the sole or primary purpose
benefit to the extent that consideration of
                                                                 of the dues or similar payments is to
equal or greater value is not received and
                                                                 make gifts to officials.
includes a rebate or discount in the price of
anything of value unless the rebate or                (b) Presumption of Source by Officials. An
discount is made in the regular course of                 official may presume that the person
business to members of the public without                 delivering the gift or, if the gift is offered
regard to official status. Any person, other              but has not been delivered, the person
than a defendant in a criminal action, who                offering the gift to him or her is the source
claims that a payment is not a gift by reason             of the gift unless either of the following
of receipt of consideration has the burden of             are met:
proving that the consideration received is of                (1) The person delivering or offering the
equal or greater value.                                          gift discloses to the official the actual
                                                                 source of the gift; or
Gift
(Section 86201)                                              (2) It is clear from the surrounding
                                                                 circumstances at the time the gift is
A gift made directly or indirectly to any state                  delivered or offered that the person
candidate, elected state officer, or legislative                 delivering or offering the gift is not the
official, or to an agency official of any agency                 actual source of the gift.
required to be listed on the registration
statement of the lobbying firm or the lobbyist
employer of the lobbyist.                             Gifts to an Agency
                                                      (Regulation 18944.2)
Gift, Source                                          (a) A payment, which is a gift as defined in
(Regulation 18945)                                        section 82028, is deemed a gift to a
(a) General Rule. A person is the source of a             public agency, and not a gift to a public
    gift if the person makes a gift to an official        official, if all of the following requirements
    and is not acting as an intermediary.                 are met:

    (1) If a person makes a payment to a                     (1) The agency receives and controls the
        third party and in fact directs and                      payment.
        controls the use of the payment to                   (2) The payment is used for official
        make a gift to one or more clearly                       agency business.
        identified officials, the person is the              (3) The agency, in its sole discretion,
        source of the gift to the official or                    determines the specific official or
        officials.                                               officials who shall use the payment.
    (2) Dues. If a person pays dues or                           However, the donor may identify a
        makes similar payments for                               specific purpose for the agency’s use
        membership in a bona fide                                of the payment, so long as the donor
        association, including any federation,                   does not designate the specific
        confederation, or trade, labor or                        official or officials who may use the
        membership organization, some                            payment.
        portion of which dues or similar


Fair Political Practices Commission           Appendix 1-4                          Lobbying Manual, 7/2005
                                                                            Appendix 1 — Definitions

    (4) The agency memorializes the                           (1) Only a reportable payment is subject
        payment in a written public record                        to the limitations on gifts specified in
        which embodies the requirements of                        section 89503. See regulation
        subdivisions (a)(1) to (a)(3) above                       18950.3, to determine whether a
        and which:                                                payment in connection with a speech,
        (A) Identifies the donor and the                          panel, or seminar is reportable.
            official, officials, or class of                  (2) A payment made for travel, including
            officials receiving or using the                      actual transportation and related
            payment;                                              lodging and subsistence, is not
        (B) Describes the official agency use                     subject to the prohibitions or
            and the nature and amount of the                      limitations on honoraria and gifts
            payment; and                                          specified in sections 89501, 89502, or
                                                                  89503 if:
        (C) Is filed with the agency official
            who maintains the records of the                     (A) The travel is reasonably related to
            agency’s statements of economic                          a legislative or governmental
            interests where the agency has a                         purpose, or to an issue of state,
            specific office for the maintenance                      national, or international public
            of such statements, or where no                          policy, and
            specific office exists for the                       (B) The travel, including actual
            maintenance of such statements,                          transportation and related lodging
            at a designated office of the                            and subsistence, is in connection
            agency, and the filing is done                           with a speech given by the official
            within 30 days of the receipt of the                     or candidate; the lodging and
            payment by the agency.                                   subsistence expenses are limited
(b) Notwithstanding subdivisions (a)(3) and                          to the day immediately preceding,
    (a)(4) above, a donation to a California                         the day of, and the day
    public college or university for a specific                      immediately following the speech;
    research project which is received                               and the travel is within the United
    consistent with the requirements of                              States.
    regulation 18702.4(c) and for meals                (b) Travel Provided By Governmental Entity
    received in the course of an official                  or Charity. A payment made for travel,
    fundraising activity, which qualify under              including actual transportation and
    federal and state law for a deduction as a             related lodging and subsistence, is not
    charitable contribution for educational                subject to the prohibitions or limitations
    purposes, is deemed a gift to the college              on honoraria and gifts specified in
    or university.                                         sections 89501, 89502, or 89503 if:
                                                              (1) The travel is reasonably related to a
Gifts of Travel; Exceptions                                       legislative or governmental purpose,
(Regulation 18950.1)                                              or to an issue of state, national, or
                                                                  international public policy; and
The following provisions apply to payments
made for travel pursuant to sections 89501                    (2) The payment is provided by a
through 89506:                                                    government, a governmental agency,
                                                                  a foreign government, a
(a) Travel In Connection With Speeches,
                                                                  governmental authority, a bona fide
    Panels, and Seminars.
                                                                  public or private educational


Fair Political Practices Commission            Appendix 1-5                         Lobbying Manual, 7/2005
Appendix 1 — Definitions

        institution, defined in section 203 of              (1) Any part of the cost of such
        the Revenue and Taxation Code, or                       hospitality is paid for by the lobbyist’s
        by a nonprofit organization that is                     employer or lobbying firm directly; or
        exempt from taxation under section                  (2) The lobbyist is reimbursed by his or
        501(c)(3) of the Internal Revenue                       her lobbyist employer or lobbying firm
        Code, or by a person that is domiciled                  for any part of the cost of such
        outside the United States and that                      hospitality; or
        substantially satisfies the
        requirements for tax exempt status                  (3) The lobbyist deducts any part of the
        under section 501(c)(3) of the Internal                 cost of such hospitality as a business
        Revenue Code.                                           expense on any tax return, either
                                                                State or Federal; or
(c) Travel Paid From Campaign Funds. A
    payment made for transportation and                     (4) There is an understanding between
    necessary lodging and subsistence,                          the lobbyist and his or her lobbyist
    which payment is made from campaign                         employer or lobbying firm that the
    funds as permitted by section 89513, or                     amount of compensation received by
    which is a contribution, is not an                          the lobbyist includes a portion to be
    honorarium or a gift.                                       utilized by the lobbyist to provide gifts
                                                                of hospitality in the lobbyist’s home.
(d) Travel Provided By Official’s Agency. A
    payment made for transportation and              (b) In determining the applicability of
    necessary lodging and subsistence,                   subsections (a)(1) through (a)(4) above,
    which payment is made by the agency of               the cost of providing hospitality does not
    an official, is not an honorarium or a gift.         include any part of the value or rental of
                                                         the home of the lobbyist, nor does it
(e) Travel In Connection With Bona Fide                  include any depreciation on the premises
    Business. A payment made for                         where the hospitality is extended.
    transportation, lodging, and subsistence,
    which payment is reasonably necessary
                                                     Immediate Family
    in connection with a bona fide business,
                                                     (Section 82029)
    trade, or profession, and which satisfies
    the criteria for federal income tax              The spouse or dependent child of an official.
    deductions for business expenses
    specified in sections 162 and 274 of the         Influencing Legislative or
    Internal Revenue Code, is not an                 Administrative Action
    honorarium or gift unless the sole or            (Section 82032 and regulation 18239)
    predominant activity of the business,
                                                     Communicating directly with any elective
    trade or profession is making speeches.
                                                     state official, legislative official, or state
                                                     agency official or taking any other action for
Home Hospitality                                     the principal purpose of promoting,
(Section 86203; Regulation 18630)                    supporting, influencing, modifying, opposing,
(a) The cost of providing hospitality involving      delaying, or advancing any legislative or any
    food, beverage, or occasional lodging at         administrative action.
    the home of a lobbyist is a gift within the
                                                     Influencing legislative or administrative
    meaning of section 86203 and is
                                                     action, or “lobbying activity,” is broadly
    reportable under the provisions of section
                                                     defined to include such activities as following
    86113 only if:
                                                     bills and regulations that one is attempting to


Fair Political Practices Commission          Appendix 1-6                          Lobbying Manual, 7/2005
                                                                      Appendix 1 — Definitions

influence, preparing testimony, attending               other than reimbursement for reasonable
hearings and floor debates, arranging for               travel expenses, for the purpose of
witnesses, waiting to meet with officials or            influencing legislative or administrative
staff, communicating with employers, and                action on behalf of any other person, and
administering a lobbyist’s office - all for the         any partner, owner, officer, or employee
purpose of promoting, supporting, modifying,            of the business entity is a lobbyist.
opposing, delaying, or advancing legislative        (2) The business entity receives or becomes
or administrative action.                               entitled to receive $5,000 in
                                                        compensation in any calendar quarter
Legislative Action                                      other than reimbursement for reasonable
(Section 82037)                                         travel expenses, to communicate directly
The drafting, introduction, consideration,              with any elective state official, agency
modification, enactment, or defeat of any bill,         official, or legislative official, for the
resolution, amendment, report, nomination,              purpose of influencing legislative or
or other matter by the Legislature or by either         administrative action on behalf of any
house or any committee, subcommittee, joint             other person.
or select committee thereof, or by a member
or employee of the Legislature acting in his        Lobbyist
or her official capacity. Legislative action        (Section 82039; Regulation 18239)
also means the action of the Governor in            A lobbyist is an individual who:
approving or vetoing any bill.
                                                    (1) Receives or becomes entitled to receive
                                                        $2,000 or more in compensation in any
Legislative Official
                                                        calendar month for engaging in direct
(Section 82038)
                                                        communication, other than administrative
Any employee or consultant of the                       testimony, with one or more qualifying
Legislature whose duties are not solely                 officials for the purpose of influencing
secretarial, clerical, or manual.                       legislative or administrative action on
                                                        behalf of any person other than his or her
Lobbying Coalition                                      employer; or
(Regulation 18616.4)                                (2) Spends one-third or more of the time, in
A group of 10 or more persons formed                    any calendar month, for which he or she
primarily to influence legislative or                   receives compensation only from his or
administrative action, whose members make               her employer for engaging in direct
payments to the coalition for the purpose of            communication, other than administrative
sharing the expenses of employing a lobbyist            testimony, with one or more qualifying
or contracting for the services of a lobbying           officials for the purpose of influencing
firm.                                                   legislative or administrative action.

Lobbying Firm                                       A person is not a lobbyist who:
(Section 82038.5; Regulation 18238.5)               •	 Attempts to influence on a voluntary basis
Any business entity, including an individual           without any compensation;
contract lobbyist, which meets either of the        •	 Only engages in administrative testimony;
following criteria:                                    or
(1) The business entity receives or becomes         •	 Only meets or speaks with a qualifying
    entitled to receive any compensation,              official in the company of a registered

Fair Political Practices Commission        Appendix 1-7 	                    Lobbying Manual, 7/2005
Appendix 1 — Definitions

   lobbyist retained by the individual or             •	 The contribution is made by a business
   individual’s employer or by a bona fide               entity, including a lobbying firm, owned in
   trade association or membership                       whole or in part by a lobbyist, and the
   organization of which the individual or               lobbyist participates in the decision to
   individual’s employer is a bona fide                  make the contribution.
   member.
                                                      •	 The contribution is made from funds of a
                                                         committee comprised in part of personal
Lobbyist Employer                                        funds or resources of a lobbyist and the
(Section 82039.5; Regulation 18239.5)                    lobbyist participates in the decision to
Any person, other than a lobbying firm, who              make the contribution.
either:                                               A lobbyist does not make a contribution
                                                      simply by advising his or her client or lobbyist
(1) Employs one or more lobbyists for
                                                      employer regarding the making of a
    economic consideration, other than
                                                      contribution.
    reimbursement for reasonable travel
    expenses, for the purpose of influencing
    legislative or administrative action; or          Payment to Influence Legislative or
                                                      Administrative Action
(2) Contracts for the services of a lobbying          (Section 82045)
    firm for economic consideration, other
    than reimbursement for reasonable travel          A payment to influence legislative or
    expenses, for the purpose of influencing          administrative action is a payment:
    legislative or administrative action.             •	 Made directly or indirectly to a lobbyist
                                                         whether for salary, fee, compensation for
Lobbyist Contributions: Making a                         expenses, or any other purpose, by a
Contribution                                             person employing or contracting for the
(Section 85702; Regulation 18752)                        services of the lobbyist separately or
                                                         jointly with other persons;
A lobbyist makes a contribution when any of
the following occurs:                                 •	 Made in support or assistance of a
                                                         lobbyist or his or her activities, including
•	 He or she mails, delivers, or otherwise               but not limited to the direct payment of
   transmits to an elected state officer, a              expenses incurred at the request or
   candidate for elective state office or his or         suggestion of the lobbyist;
   her controlled committee, or to a
                                                      •	 Which directly or indirectly benefits any
   committee primarily formed to support or
                                                         elective state official, legislative official,
   oppose such a candidate, that the lobbyist
                                                         agency official, or a member of the
   is registered to lobby, a contribution as
                                                         immediate family of any such official;
   defined in section 82015 and regulation
   18215, and the contribution is made from           •	 For compensation or reimbursement for
   the lobbyist’s personal funds or assets. A            the services, time, or expenses of an
   contribution will be deemed to be made                employee, for or in connection with, direct
   from a lobbyist’s personal funds or assets            communication with any elective state
   when the contribution is made from assets             official, legislative official, or agency
   that are the personal property of the                 official;
   lobbyist, unless pursuant to regulation            •	 For or in connection with soliciting or
   18533 the contribution is attributed to               urging other persons to enter into direct
   another person.                                       communication with any elective state


Fair Political Practices Commission          Appendix 1-8 	                       Lobbying Manual, 7/2005
                                                                            Appendix 1 — Definitions

   official, legislative official, or agency           (b) When a payment is made to an elected
   official.                                               officer or candidate for his or her
                                                           necessary lodging and subsistence or
Payments for Travel In Connection                          transportation in direct connection with
with Campaign Activities                                   attendance at a political fundraiser or an
(Regulation 18950.4)                                       event listed in subdivision (a)(1)(A) or
                                                           subdivision (a)(1)(B), which fundraiser
Except as provided in regulation 18727.5, a                event is conducted to benefit another
payment made to an elected officer or                      elected officer or candidate, or to benefit
candidate for his or her transportation,                   a committee as defined in section 82013
lodging, or subsistence is a gift unless the               (a), the payment is a contribution to the
transportation, lodging, or subsistence                    officer, candidate, or committee
provided to the elected officer or candidate is            benefiting from the fundraiser.
in “direct connection” with campaign
activities, including attendance at political
fundraisers.                                           Person
                                                       (Section 82047)
(1) Any payment made to an elected officer
    or candidate for his or her transportation,        An individual, proprietorship, firm,
    lodging, or subsistence, during the six            partnership, joint venture, syndicate,
    month period prior to an election in which         business trust, company, corporation, limited
    the elected officer or candidate is to be          liability company, association, committee,
    voted upon is considered “in direct”               and any other organization or group of
    connection with campaign activities if the         persons acting in concert.
    payment is for necessary transportation,
    lodging, or subsistence, used specifically         Qualifying Official
    for the purpose of the elected officer’s or        (Regulation 18239)
    candidate’s:                                       Any elected state official, any legislative
    (A) Participation in candidate forums,             official, or any appointed, elected, or
        debates or similar voter gatherings at         statutory member or director of any state
        which he or she makes a speech; or             agency. “Qualifying official” also means any
                                                       staff member of any state agency who
    (B) Attendance at meetings with
                                                       makes direct recommendations to any
        campaign staff or political consultants
                                                       appointed, elected, or statutory member or
        to develop or implement campaign
                                                       director of any state agency, or who has
        strategy.
                                                       decision-making authority concerning such
(2) A payment made to an elected officer or            recommendations.
    candidate for necessary transportation to,
    or lodging and subsistence at, an event            Reportable Lobbying Services
    described in subdivision (a)(1)(A) or              (Regulation 18614)
    subdivision (a)(1)(B), but not made within
    the six month period prior to the election         (a) The following payments from a client to a
    in which the elected officer or candidate              lobbying firm are considered payments
    is being voted upon, is considered a gift              for lobbying services:
    unless it is clear from the surrounding                   (1) Payments for services related to a
    circumstances that the payment is made                        matter on which the client expressly
    directly in connection with campaign                          or implicitly authorizes the lobbying
    activities.                                                   firm to communicate directly with an


Fair Political Practices Commission            Appendix 1-9                        Lobbying Manual, 7/2005
Appendix 1 — Definitions

        elected state official, legislative                     services must be reported by the
        official or agency official for the                     client as “other payments to influence
        purpose of influencing legislative or                   legislative or administrative action”
        administrative action.                                  pursuant to section 86116(i) if either
    (2) Payments for legislative-related                        of the following applies:
        services only if, within one year after                 (A) At the time the payment is made,
        the services are provided, the client,                      the client is required to be
        either directly or through an affiliated                    registered on the lobbying firm’s
        entity, expressly or implicitly                             registration statement.
        authorizes the lobbying firm to                         (B) Within one year after the services
        communicate directly with an elected                        are provided, the client, either
        state official, legislative official or                     directly or through an affiliated
        agency official for the purpose of                          entity, expressly or implicitly
        influencing legislative or                                  authorizes another lobbying firm
        administrative action on the same or                        or a lobbyist employed by the
        substantially the same matter.                              client to communicate directly with
    (3) Payments for research or preparation                        an elected state official, legislative
        of a proposed initiative measure only                       official or agency official for the
        if, within one year after the initiative-                   purpose of influencing legislative
        related services are provided, the                          or administrative action on the
        client, either directly or through an                       same or substantially the same
        affiliated entity, expressly or implicitly                  matter.
        authorizes the lobbying firm to               (c) The following definitions apply to this
        communicate directly with an elected              section:
        state official, legislative official or
        agency official for the purpose of                   (1) “Legislative-related services” includes
        influencing legislative or                               researching, monitoring, analyzing or
        administrative action on the same or                     drafting statutes, regulations or
        substantially the same matter.                           pending or proposed legislative or
        However, such payments need not be                       administrative action, providing
        reported if they are required to be                      advice or recommending strategy
        disclosed, and are in fact disclosed                     concerning pending or proposed
        pursuant to Chapter 4 (commencing                        legislative or administrative action,
        with section 84100) of Title 9 of the                    and similar services in the absence of
        Government Code.                                         express or implied authorization to
                                                                 engage in direct communication.
(b) The following payments from a client to a
    lobbying firm are not considered                         (2) “Direct communication” means
    payments for lobbying services:                              appearing as a witness before, talking
                                                                 to (either by telephone or in person),
    (1) Payments for litigation.                                 corresponding with, or answering
    (2) Payment for legislative-related or                       questions or inquiries from, any
        initiative-related services performed                    elected state official, legislative
        by a lobbying firm for a client which                    official or agency official, either
        are not reportable pursuant to                           personally or through an agent who
        subsections (a)(2) or (a)(3). However,                   acts under one’s direct supervision,
        payments for legislative-related                         control or direction.


Fair Political Practices Commission          Appendix 1-10                         Lobbying Manual, 7/2005
                                                                        Appendix 1 — Definitions

    (3) “Affiliated entity” includes, but is not      State Agency
        limited to, an organization which has         (Section 82049; Regulation 18249)
        a parent or subsidiary relationship to
                                                      Every state office, department, division,
        the client, an organization that is
                                                      bureau, board, and commission, and the
        primarily funded or managed by the
                                                      Legislature.
        client or the parent entity of the client,
        or an organization of which the client
        is a member.                                  Travel in Connection with Speeches,
                                                      Panels, and Seminars: Exception for
(d) When a payment for initiative-related or          All Filers
    legislative-related services made to a            (Regulation 18950.3)
    lobbying firm in a previous reporting
    period must be reported retroactively             Free admission, and refreshments and
    pursuant to this section, the payment             similar non-cash nominal benefits provided to
    must be reported on the report for the            a filer during the entire event at which the
    then current calendar quarter and the             filer gives a speech, participates in a panel or
    lobbying firm and lobbyist employer must          seminar, or provides a similar service, and
    indicate the calendar quarter in which the        actual intrastate transportation and any
    payment was made or received. If the              necessary lodging and subsistence provided
    payment was previously reported in the            directly in connection with the speech, panel,
    current calendar year as “other payments          seminar, or service, including but not limited
    to influence legislative or administrative        to meals and beverages on the day of the
    action,” the lobbyist employer must               activity, are not payments and need not be
    indicate on the report for the then current       reported by any filer.
    calendar quarter that the amount has
    been deducted from “other payments to
    influence legislative or administrative
    action” and instead reported as a
    payment to a lobbying firm. For purposes
    of subsections (a)(2) and (a)(3), the
    lobbying firm and lobbyist employer must
    indicate, in addition to the information
    required by regulations 18613(a) and
    18616(b), that the payment was for
    initiative-related or legislative-related
    services and the date upon which the
    person making the payment or the
    affiliated entity authorized the lobbying
    firm to engage in direct communication.
(e) This section shall not be construed to
    require any entity to report payments it
    receives for services prior to the calendar
    quarter in which the entity qualifies as a
    lobbying firm.




Fair Political Practices Commission          Appendix 1-11                      Lobbying Manual, 7/2005
                                                                                1-866-ASK-FPPC



Appendix 2          Appendix 2 — About the PRA/How to Get Help

About the Political Reform Act
How to Get Help
The Political Reform Act of 1974                    Regulations
The Political Reform Act (the “Act”) was a          Regulations interpreting the Political Reform
voter-approved initiative on the 1974 primary       Act are located at California Code of
election ballot. One of the major provisions        Regulations Title 2, Division 6, beginning at
of the Act requires the disclosure of lobbying      section 18000.
activity, both financial and the legislative or
administrative actions attempted to be              Opinions and Advice Letters
influenced by:                                      The Commission periodically issues opinions
•	 individual lobbyists;                            interpreting provisions of the Political Reform
                                                    Act. The opinions are adopted at a public
•	 lobbying firms;
                                                    meeting, with opportunity for input from
•	 lobbyist employers;                              interested persons.
•	 lobbying coalitions;                             In addition, FPPC staff issues written advice
•	 And those who spend $5,000 or more in a          letters as to the applicability of the Political
   calendar quarter attempting to influence         Reform Act and regulations to a particular
   legislative or administrative action, but do     factual situation. Visit the Commission’s
   not hire a lobbyist.                             website, click onto “Library & Publications,”
                                                    then click onto “Booklets” to find the FPPC
The Fair Political Practices                        publication “How Do I Get Advice From the
                                                    FPPC?”
Commission
                                                    FPPC staff does not provide advice by e-
The Fair Political Practices Commission is
                                                    mail.
the independent, nonpartisan state agency
authorized to implement, interpret, and
enforce the provisions of the Political Reform      Obtaining Information from the FPPC
Act. The Commission is comprised of a full-         Write, call, or visit the FPPC to get copies of
time chair appointed by the Governor, and           specific advice letters; they are not currently
four part-time commissioners, one each              available on the Commission website.
appointed by the Controller, the Attorney
                                                    Fair Political Practices Commission
General, the Secretary of State, and the
                                                    428 J Street, Suite 620
Governor. Each serves a four-year term and
                                                    Sacramento, CA 95814
no more than three members may be from
                                                    (916) 322-5660 -- Toll-free (866) 275-3772
the same political party. Commission staff
members are divided into four divisions:
Administration, Enforcement, Legal, and             Website (www.fppc.ca.gov)
Technical Assistance.                               The Commission’s website contains a wealth
                                                    of helpful information, including:
Governing Statutes                                  •	 The Political Reform Act, its
The Political Reform Act is contained in               corresponding regulations, and
Government Code sections 81000-91014.                  Commission opinions;


Fair Political Practices Commission        Appendix 2-1 	                     Lobbying Manual, 7/2005
Appendix 2 — About the PRA/How to Get Help

• Notices of Commission meeting dates and          Note: Lobbyist ethics workshops are
  agenda, supporting documentation for             conducted by the Assembly Legislative
  agenda items, and meeting summaries;             Ethics Committee and the Senate Committee
                                                   on Legislative Ethics. To obtain information
•	 Interactive lobbying forms;
                                                   regarding the course schedule, contact
•	 Manuals, fact sheets, and useful                Jeanie Myers at (916) 324-6929.
   summaries of the law;
•	 Schedules of upcoming seminars and              Obtaining Information Elsewhere
   education workshops.                            A subscription for regulations is available
                                                   from:
Commission Bulletin
                                                   Barclay’s Law Publishing
The Commission publishes a free bulletin.          P.O. Box 3066
Information regarding enforcement cases,           South San Francisco, CA 94083
legislation and litigation updates, workshop       (800) 888-3600
announcements, Commission meeting
summaries, campaign statement filing               Opinions and advice letters are available

schedules, and advice letter summaries are         from these subscription services:

regularly included. Persons interested in
obtaining the Bulletin may contact the             Westlaw (800) 328-9352 

Commission to be placed on the email               Database: “CA-ETH”

Bulletin mailing list by sending an email          (Advice letters from 1986 to present)

request to jmattews@fppc.ca.gov, or
accessing the Bulletin via the website and         Lexis-Nexis (800) 227-9597 

clicking onto “Library & Publications.”            Database: “CA Fair Political Practices

                                                   Commission”

Need Help Fast?                                    (Advice letters from 1990 to present)

Assistance may be obtained regarding filing
requirements, how to complete forms,
                                                   Other Resources
restrictions, prohibitions, or an upcoming         Secretary of State
issue by calling the Commission’s Technical        The Secretary of State is the filing officer for
Assistance Division at (916) 322-5660, or          lobbying disclosure statements, issues
toll-free at (866) 275-3772, ext. 2. In most       electronic filing identification numbers and
cases, questions can be answered over the          passwords, and publishes a directory that
telephone. However, depending on the               reflects information contained in lobbying
circumstances, written advice may be               registration documents. The directory is
required or preferred.                             divided into four sections that list lobbyists,
For even more information! The                     lobbying firms, and lobbyist employers
Commission periodically conducts                   alphabetically, and lobbyist employers by
educational workshops on lobbying rules and        category. The current Directory of Lobbyists,
completing the forms. Contact the Technical        Lobbying Firms, and Lobbyist Employers
Assistance Division or the website to see          may be purchased from the Secretary of
when the next workshop is scheduled. All           State.
lobbying workshops are held at the FPPC            (916) 653-6224
offices at 428 J Street, 8th Floor,                (916) 653-5045 fax
Sacramento.                                        www.ss.ca.gov


Fair Political Practices Commission       Appendix 2-2 	                     Lobbying Manual, 7/2005
                                               Appendix 2 — About the PRA/How to Get Help

Cal-Online Help Desk (Electronic Filers)              Public Inspection & Audit
(877) 745-3453 (toll free)
                                                      All reports and statements required by the
(916) 653-7283
                                                      Political Reform Act are public records open
                                                      for public inspection and reproduction, and
Franchise Tax Board                                   are subject to audit by the Franchise Tax
The Franchise Tax Board is responsible for            Board and the Fair Political Practices
responding to questions regarding tax status,         Commission.
501(c)(3) groups, audits, or any tax-related
questions.                                            Enforcement
(800) 852-5711 or (800) 338-0505                      The Fair Political Practices Commission
www.ftb.ca.gov                                        and the Attorney General have enforcement
                                                      authority under the Act.
Local/Judicial/Federal Lobbying                       Failure to provide all or any part of the
Requirements                                          information required by the Political Reform
Lobbying activity conducted at the city,              Act is a violation subject to:
county, judicial, or federal levels are not           •	 An administrative enforcement proceeding
governed by the Act. To determine what, if               before the Fair Political Practices
any, lobbying disclosure requirements are in             Commission;
effect at the local, judicial, or federal level,
                                                      •	 A criminal misdemeanor proceeding;
contact the specific agency in question.
                                                      •	 A civil action; and
Privacy Information Notice                            •	 Levying of late penalties by filing officers.
Information requested on all FPPC forms is
used by the FPPC to administer and enforce            Penalties for not filing lobbying statements
the Political Reform Act (Government Code             may be imposed up to $5,000 per violation.
sections 81000-91014 and California Code of           Additional information on the Commission’s
Regulations sections 18109-18997). All                enforcement procedures is available on the
information required by these forms is                Commission’s website. In addition, the
mandated by the Political Reform Act.                 Commission maintains a toll-free number for
Failure to provide all of the information             reporting suspected violations of the Political
required by the Act is a violation subject to         Reform Act. The number is (800) 561-1861.
administrative, criminal or civil prosecution.
All reports and statements provided are
public records open for public inspection and
reproduction.
If you have any questions regarding this
Privacy Notice or how to access your
personal information, please contact the
FPPC at:
    Manager, Filing Officer Programs 

    428 J Street, Suite 620

    Sacramento, CA 95814 

    (916) 322-5660 




Fair Political Practices Commission          Appendix 2-3 	                     Lobbying Manual, 7/2005

								
To top