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
begin delete, as defined,end delete 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 delete The act also prohibits a lobbyist or lobbying firm from engaging in certain activities, including, among others, accepting any payment that is contingent upon the defeat, enactment, or outcome of any proposed legislative or administrative action. 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.end delete
This bill would additionally define the term “administrative action” to include governmental procurement, which would be defined to include various actions regarding a state procurement contract for which the total estimated cost exceeds $250,000, thereby making the above-described lobbying requirements applicable to actions that attempt to influence governmental procurement. The bill would also exclude certain actions from the definition of “government procurement,” including, among others, submitting a bid or fee proposal, testifying at a public hearing relating to a procurement contract, or any activity undertaken by a bona fide salesperson or a placement agent, as those terms are defined.end delete
This bill would also authorize a lobbyist, other than a placement agent, to be compensated on a commission basis for lobbying activities related to influencing administrative action relating to governmental procurement, as specified.end delete
Because 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.
10(2) With regard only to placement agents, the decision by any
11state agency to enter into a contract to invest state public retirement
12system assets on behalf of a state public retirement system.
13(3) Governmental procurement.
14(b) “Ratemaking proceeding” means, for purposes of a
15proceeding before the Public Utilities Commission, any proceeding
16in which it is reasonably foreseeable that a rate will be established,
17including, but not limited to, general rate cases, performance-based
18ratemaking, and other ratesetting mechanisms.
19(c) “Quasi-legislative proceeding” means, for purposes of a
20proceeding before the Public Utilities Commission, any proceeding
21that involves consideration of the establishment of a policy that
22will apply generally to a group or class of persons, including, but
23not limited to, rulemakings and investigations that may establish
24rules affecting an entire industry.
25(d) (1) “Governmental procurement” means any of the
26following with respect to a state procurement contract
27for which the total estimated cost exceeds two hundred fifty
28thousand dollars ($250,000):
29(A) Preparing the terms, specifications, bid documents, request
30for proposals, or evaluation criteria for the procurement contract.
31(B) Soliciting for the procurement contract.
32(C) Evaluating the procurement contract.
P4 1(D) Scoring criteria for the procurement contract.
2(E) Awarding, approving,
denying, or disapproving the
4(F) Approving or denying an assignment, amendment, other
5than an amendment authorized and payable under the terms of the
6procurement contract as the procurement contract was finally
7awarded or approved, renewal, or extension of the procurement
8contract, or any other material change in the procurement contract
9resulting in financial benefit to the offeror.
10(2) “Governmental procurement” does not include any of the
11following with respect to a state procurement contract for which
12the total estimated cost exceeds two hundred fifty thousand dollars
14(A) Submitting a bid or fee proposal on the state procurement
15contract that does not involve any activity described in paragraph
16(1), including attending a bidders’ conference or responding to
17requests for information; or responding to a competitive selection
18process based on qualifications.
19(B) Testifying at a public hearing regarding the state
21(C) Any activity undertaken by a bona fide salesperson of an
22article of procurement. For purposes of this subparagraph, a “bona
23fide salesperson” is an individual who satisfies all of the following:
24(i) The primary purpose of the individual’s employment is the
25sale of an article of procurement.
26(ii) The primary purpose of the individual’s employment is not
27to influence the actions of a public officer or state agency, as
28described in paragraph (1).
29(iii) The individual does not engage in any other activity that
30would qualify him or her as a lobbyist.
31(D) Any activity undertaken by a placement agent, as that term
32is defined in Section 82047.3.
33(E) Any activity relating to a contract awarded by the state
34through the California Multiple Award Schedule (CMAS) or a
35contract awarded through government multi-jurisdiction purchasing
Section 86205.5 is added to the Government Code, to
Notwithstanding Section 86205, a lobbyist, other than
4a placement agent, may be compensated on a commission basis
5only with respect to lobbying activities related to influencing
6administrative action for governmental procurement, as defined
7in subdivision (d) of Section 82002.
(a) “Lobbyist” means
begin delete eitherend delete of the following:
11(1) Any individual who receives two thousand dollars ($2,000)
12or more in economic consideration in a calendar month, other than
13reimbursement for reasonable travel expenses, or whose principal
14duties as an employee are, to communicate directly or through his
15or her agents with any elective state official, agency official, or
16legislative official for the purpose of influencing legislative or
20(2) A placement agent, as defined in Section 82047.3.
29(b) An individual is not a lobbyist by reason of activities
30 described in Section 86300.
31(c) For the purposes of subdivision (a), a proceeding before the
32Public Utilities Commission constitutes “administrative action” if
33it meets any of the definitions set forth in subdivision (b) or (c) of
34Section 82002. However, a communication made for the purpose
35of influencing this type of Public Utilities Commission proceeding
36is not within subdivision (a) if the communication is made at a
37public hearing, public workshop, or other public forum that is part
38of the proceeding, or if the communication is included in the
39official record of the proceeding.
No reimbursement is required by this act pursuant to
2Section 6 of Article XIII B of the California Constitution because
3the only costs that may be incurred by a local agency or school
4district will be incurred because this act creates a new crime or
5infraction, eliminates a crime or infraction, or changes the penalty
6for a crime or infraction, within the meaning of Section 17556 of
7the Government Code, or changes the definition of a crime within
8the meaning of Section 6 of Article XIII B of the California
The Legislature finds and declares that this bill furthers
11the purposes of the Political Reform Act of 1974 within the
12meaning of subdivision (a) of Section 81012 of the Government