AB 1200, as amended, Gordon. Political Reform Act of 1974: lobbying: procurement contracts.
Existing provisions of the Political Reform Act of 1974 regulate the activities of lobbyists, lobbying firms, and lobbyist employers, as defined, in connection with attempts to influence legislative and administrative action by legislative and other state officials, including requirements that lobbyists, lobbying firms, and lobbyist employers register and file periodic reports with the Secretary of State.begin insert The act also prohibits a lobbyist or lobbying firm from engaging in certain activities, including, among others, accepting any payment that isend insertbegin insert contingent upon the defeat, enactment, or outcome of any proposed legislative or administrative action.end insert For purposes of these provisions, “administrative action” is defined to include the proposal, drafting, development, consideration, amendment, enactment, or defeat by any state agency of any rule, regulation, or other action in any ratemaking proceeding or any quasi-legislative proceeding.
This bill would additionally define the term “administrative action” to include governmental procurement, which would be defined to include various actions regardingbegin delete procurement contracts,end deletebegin insert a state procurement contract for which the total estimated cost exceeds $250,000,end insert thereby making the above-described lobbying requirements applicable to actions that attempt to influence governmental procurement.begin insert The bill would also exclude
certain actions from the definition of “government procurement,” including submitting a bid, testifying at a public hearing relating to a procurement contract, or any activity undertaken by bona fide salesperson, as defined.end insert
This bill would also authorize a lobbyist to be compensated on a commission basis for lobbying activities related to influencing administrative action relating to governmental procurement, as specified.
end insertBecause a willful violation of the act’s provisions is punishable as a misdemeanor, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 2⁄3 vote of each house and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 82002 of the Government Code is
2amended to read:
(a) “Administrative action” means any of the following:
4(1) The proposal, drafting, development, consideration,
5amendment, enactment, or defeat by any state agency of any rule,
6regulation, or other action in any ratemaking proceeding or any
7quasi-legislative proceeding, which shall include any proceeding
8governed by Chapter 3.5 (commencing with Section 11340) of
9Part 1 of Division 3 of Title 2.
P3 1(2) With regard only to placement agents, the decision by any
2state agency to enter into a contract to invest state public retirement
3system assets on behalf of a state public retirement system.
4(3) Governmental procurement.
5(b) “Ratemaking proceeding” means, for purposes of a
6proceeding before the Public Utilities Commission, any proceeding
7in which it is reasonably foreseeable that a rate will be established,
8including, but not limited to, general rate cases, performance-based
9ratemaking, and other ratesetting mechanisms.
10(c) “Quasi-legislative proceeding” means, for purposes of a
11proceeding before the Public Utilities Commission, any proceeding
12that involves consideration of the establishment of a policy that
13will apply generally to a group or class of persons, including, but
14not limited to, rulemakings and investigations that may establish
15rules affecting an entire industry.
16(d) begin insert(1)end insertbegin insert end insert “Governmental procurement” means any of the
17followingbegin insert with respect to a state procurement contract for which
18the total estimated cost exceeds two hundred fifty thousand dollars
19($250,000)end insert:
20(1)
end delete
21begin insert(A)end insert Preparing the terms, specifications, bid documents, request
22for proposals, or evaluation criteria forbegin delete aend deletebegin insert theend insert procurement
contract.
23(2)
end delete
24begin insert(B)end insert Soliciting forbegin delete aend deletebegin insert
theend insert procurement contract.
25(3)
end delete
26begin insert(C)end insert Evaluatingbegin delete aend deletebegin insert theend insert procurement contract.
27(4)
end delete
28begin insert(D)end insert Awarding, approving, denying, or disapprovingbegin delete aend deletebegin insert theend insert
29 procurement contract.
30(5)
end delete
31begin insert(E)end insert Approving or denying an assignment, amendment, other
32than an amendment authorized and payable under the terms ofbegin delete aend delete
33begin insert
theend insert procurement contract as the procurement contract was finally
34awarded or approved, renewal, or extension ofbegin delete aend deletebegin insert theend insert procurement
35contract, or any other material change inbegin delete aend deletebegin insert theend insert procurement contract
36resulting in financial benefit to the offeror.
37(2) “Governmental procurement” does not include any of the
38following with respect to a state procurement contract for which
39the total estimated cost exceeds two hundred
fifty thousand dollars
40($250,000):
P4 1(A) Submitting a bid on the state procurement contract.
end insertbegin insert
2(B) Testifying at a public hearing regarding the state
3procurement contract.
4(C) Any activity, including those described in paragraph (1),
5undertaken by a bona fide salesperson of an article of procurement.
6For purposes of this subparagraph, a “bona fide salesperson” is
7an individual who satisfies each of the following:
8(i) The primary purpose of the individual’s employment is to
9cause or promote the sale of, or to influence or induce another to
10make a purchase of, an article of procurement.
11(ii) The primary purpose of the individual’s employment is not
12to influence the actions of a public officer or state agency in
13regards to selecting vendors to supply articles of procurement
14under a state procurement contract.
15(iii) The individual does not engage in any other activity that
16would qualify him or her as a lobbyist.
begin insertSection 86205.5 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
18read:end insert
Notwithstanding Section 86205, a lobbyist may be
20compensated on a commission basis only with respect to lobbying
21activities related to influencing administrative action for
22governmental procurement, as defined in subdivision (d) of Section
2382002.
No reimbursement is required by this act pursuant to
26Section 6 of Article XIII B of the California Constitution because
27the only costs that may be incurred by a local agency or school
28district will be incurred because this act creates a new crime or
29infraction, eliminates a crime or infraction, or changes the penalty
30for a crime or infraction, within the meaning of Section 17556 of
31the Government Code, or changes the definition of a crime within
32the meaning of Section 6 of Article XIII B of the California
33Constitution.
The Legislature finds and declares that this bill furthers
36the purposes of the Political Reform Act of 1974 within the
37meaning of subdivision (a) of Section 81012 of the Government
38Code.
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