Amended in Senate February 10, 2016

Amended in Senate August 26, 2015

Amended in Senate June 30, 2015

Amended in Assembly May 19, 2015

Amended in Assembly April 7, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1200


Introduced by Assembly Member Gordon

February 27, 2015


An act to amendbegin insert, add, and repealend insert Sections 82002 and 82039 ofbegin insert, and to add Section 86207 to,end insert the Government Code, relating to the Political Reform Act of 1974begin insert, and declaring the urgency thereof, to take effect immediatelyend insert.

LEGISLATIVE COUNSEL’S DIGEST

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 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. For purposes of these provisions, “lobbyist” is defined, in part, as an individual who receives $2,000 or more in economic consideration in a calendar month, or whose principal duties as an employee are, to communicate with specified officials for the purpose of influencing legislative or administrative action.

This bill would revise the definition of “lobbyist” to include specified conduct by an individual acting on behalf of any person other than his or her employer for the purpose of influencing administrative action that is governmental procurement, which is further 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 the specified attempts to influence governmental procurement.begin insert This bill would provide that the act’s penalty provisions are the exclusive remedy for a violation of the act’s requirements concerning government procurement lobbying.end insert

begin insert

The bill would makes these provisions operative on January 1, 2017.

end insert

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 23 vote of each house and compliance with specified procedural requirements.

This bill would declare that it furthers the purposes of the act.

begin insert

This bill would declare that it is to take effect immediately as an urgency statute.

end insert

Vote: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 82002 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

3

82002.  

(a) “Administrative action” means either of the
4following:

5(1) The proposal, drafting, development, consideration,
6amendment, enactment, or defeat by any state agency of any rule,
7regulation, or other action in any ratemaking proceeding or any
8quasi-legislative proceeding, which shall include any proceeding
P3    1governed by Chapter 3.5 (commencing with Section 11340) of
2Part 1 of Division 3 of Title 2.

3(2) With regard only to placement agents, the decision by any
4state agency to enter into a contract to invest state public retirement
5system assets on behalf of a state public retirement system.

6(b) “Ratemaking proceeding” means, for the purposes of a
7proceeding before the Public Utilities Commission, any proceeding
8in which it is reasonably foreseeable that a rate will be established,
9including, but not limited to, general rate cases, performance-based
10ratemaking, and other ratesetting mechanisms.

11(c) “Quasi-legislative proceeding” means, for purposes of a
12proceeding before the Public Utilities Commission, any proceeding
13that involves consideration of the establishment of a policy that
14will apply generally to a group or class of persons, including, but
15not limited to, rulemakings and investigations that may establish
16rules affecting an entire industry.

begin insert

17(d) This section shall remain in effect only until January 1, 2017,
18and as of that date is repealed, unless a later enacted statute, that
19is enacted before January 1, 2017, deletes or extends that date.

end insert
20begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 82002 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
21read:end insert

begin insert
22

begin insert82002.end insert  

(a) “Administrative action” means any of the following:

23(1) The proposal, drafting, development, consideration,
24amendment, enactment, or defeat by any state agency of any rule,
25regulation, or other action in any ratemaking proceeding or any
26quasi-legislative proceeding, which shall include any proceeding
27governed by Chapter 3.5 (commencing with Section 11340) of Part
281 of Division 3 of Title 2.

29(2) With regard only to placement agents, the decision by any
30state agency to enter into a contract to invest state public
31retirement system assets on behalf of a state public retirement
32system.

33(3) Governmental Procurement.

34(b) “Ratemaking proceeding” means, for purposes of a
35proceeding before the Public Utilities Commission, any proceeding
36in which it is reasonably foreseeable that a rate will be established,
37including, but not limited to, general rate cases, performance-based
38ratemaking, and other ratesetting mechanisms.

39(c) “Quasi-legislative proceeding” means, for purposes of a
40proceeding before the Public Utilities Commission, any proceeding
P4    1that involves consideration of the establishment of a policy that
2will apply generally to a group or class of persons, including, but
3not limited to, rulemakings and investigations that may establish
4rules affecting an entire industry.

5(d) (1) “Governmental procurement” means any of the
6following with respect to influencing a state procurement contract
7for which the total estimated cost exceeds two hundred fifty
8thousand dollars ($250,000):

9(A) Preparing the terms, specifications, bid documents, request
10for proposals, or evaluation criteria for the procurement contract.

11(B) Soliciting for the procurement contract.

12(C) Evaluating the procurement contract.

13(D) Scoring criteria for the procurement contract.

14(E) Awarding, approving, denying, or disapproving the
15procurement contract.

16(F) Approving or denying an assignment, amendment, other
17than an amendment authorized and payable under the terms of the
18procurement contract as the procurement contract was finally
19awarded or approved, renewal, or extension of the procurement
20contract, or any other material change in the procurement contract
21resulting in financial benefit to the offeror.

22(2) “Governmental procurement” does not include any activity
23undertaken by a placement agent, as that term is defined in Section
2482047.3.

25(e) This section shall become operative on January 1, 2017.

end insert
26begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 82039 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
27read:end insert

28

82039.  

(a) “Lobbyist” means either of the following:

29(1) Any individual who receives two thousand dollars ($2,000)
30or more in economic consideration in a calendar month, other than
31reimbursement for reasonable travel expenses, or whose principal
32duties as an employee are, to communicate directly or through his
33or her agents with any elective state official, agency official, or
34legislative official for the purpose of influencing legislative or
35administrative action.

36(2) A placement agent, as defined in Section 82047.3.

37(b) An individual is not a lobbyist by reason of activities
38described in Section 86300.

39(c) For the purposes of subdivision (a), a proceeding before the
40Public Utilities Commission constitutes “administrative action” if
P5    1it meets any of the definitions set forth in subdivision (b) or (c) of
2Section 82002. However, a communication made for the purpose
3of influencing this type of Public Utilities Commission proceeding
4is not within subdivision (a) if the communication is made at a
5public hearing, public workshop, or other public forum that is part
6of the proceeding, or if the communication is included in the
7official record of the proceeding.

begin insert

8(d) This section shall remain in effect only until January 1, 2017,
9and as of that date is repealed, unless a later enacted statute, that
10is enacted before January 1, 2017, deletes or extends that date.

end insert
11begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 82039 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
12read:end insert

begin insert
13

begin insert82039.end insert  

(a) “Lobbyist” means any of the following:

14(1) Any individual who receives two thousand dollars ($2,000)
15or more in economic consideration in a calendar month, other
16than reimbursement for reasonable travel expenses, or whose
17principal duties as an employee are, to communicate directly or
18through his or her agents with any elective state official, agency
19official, or legislative official for the purpose of influencing
20legislative or administrative action, except for administrative
21action that is governmental procurement, as defined in subdivision
22(d) of Section 82002.

23(2) A placement agent, as defined in Section 82047.3.

24(3) Any individual who receives two thousand dollars ($2,000)
25or more in economic consideration in a calendar month, other
26than reimbursement for reasonable travel expenses, to
27communicate directly or through his or her agents on behalf of
28any person other than his or her employer with any elective state
29official, agency official, or legislative official for the purpose of
30influencing administrative action that is governmental
31procurement, as defined in subdivision (d) of Section 82002.

32(b) An individual is not a lobbyist by reason of activities
33described in Section 86300.

34(c) For the purposes of subdivision (a), a proceeding before the
35Public Utilities Commission constitutes “administrative action”
36if it meets any of the definitions set forth in subdivision (b) or (c)
37of Section 82002. However, a communication made for the purpose
38of influencing this type of Public Utilities Commission proceeding
39is not within subdivision (a) if the communication is made at a
40public hearing, public workshop, or other public forum that is part
P6    1of the proceeding, or if the communication is included in the official
2record of the proceeding.

3(d) This section shall become operative on January 1, 2017.

end insert
4begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 86207 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
5read:end insert

begin insert
6

begin insert86207.end insert  

(a) Notwithstanding any other law, the penalties
7imposed by this title shall be the exclusive remedy for a violation
8of this chapter with respect to requirements for governmental
9procurement lobbying.

10(b) This section shall become operative on January 1, 2017.

end insert
11begin insert

begin insertSEC. 6.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
12Section 6 of Article XIII B of the California Constitution because
13the only costs that may be incurred by a local agency or school
14district will be incurred because this act creates a new crime or
15infraction, eliminates a crime or infraction, or changes the penalty
16for a crime or infraction, within the meaning of Section 17556 of
17the Government Code, or changes the definition of a crime within
18the meaning of Section 6 of Article XIII B of the California
19Constitution.

end insert
20begin insert

begin insertSEC. 7.end insert  

end insert
begin insert

The Legislature finds and declares that this bill furthers
21the purposes of the Political Reform Act of 1974 within the meaning
22of subdivision (a) of Section 81012 of the Government Code.

end insert
23begin insert

begin insertSEC. 8.end insert  

end insert
begin insert

This act is an urgency statute necessary for the
24immediate preservation of the public peace, health, or safety within
25the meaning of Article IV of the Constitution and shall go into
26immediate effect. The facts constituting the necessity are:

end insert
begin insert

27In order to provide the Fair Political Practices Commission with
28authority and sufficient time to adopt regulations necessary to
29implement the substantive requirements of this act before the
30January 1, 2017, operative date, it is necessary that this bill take
31effect immediately.

end insert
begin delete
32

SECTION 1.  

Section 82002 of the Government Code is
33amended to read:

34

82002.  

(a) “Administrative action” means any of the following:

35(1) The proposal, drafting, development, consideration,
36amendment, enactment, or defeat by any state agency of any rule,
37regulation, or other action in any ratemaking proceeding or any
38quasi-legislative proceeding, which shall include any proceeding
39governed by Chapter 3.5 (commencing with Section 11340) of
40Part 1 of Division 3 of Title 2.

P7    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) (1) “Governmental procurement” means any of the
17following with respect to influencing a state procurement contract
18for which the total estimated cost exceeds two hundred fifty
19thousand dollars ($250,000):

20(A) Preparing the terms, specifications, bid documents, request
21for proposals, or evaluation criteria for the procurement contract.

22(B) Soliciting for the procurement contract.

23(C) Evaluating the procurement contract.

24(D) Scoring criteria for the procurement contract.

25(E) Awarding, approving, denying, or disapproving the
26procurement contract.

27(F) Approving or denying an assignment, amendment, other
28than an amendment authorized and payable under the terms of the
29procurement contract as the procurement contract was finally
30awarded or approved, renewal, or extension of the procurement
31contract, or any other material change in the procurement contract
32resulting in financial benefit to the offeror.

33(2) “Governmental procurement” does not include any activity
34undertaken by a placement agent, as that term is defined in Section
3582047.3.

36

SEC. 2.  

Section 82039 of the Government Code is amended
37to read:

38

82039.  

(a) “Lobbyist” means any of the following:

39(1) Any individual who receives two thousand dollars ($2,000)
40or more in economic consideration in a calendar month, other than
P8    1reimbursement for reasonable travel expenses, or whose principal
2duties as an employee are, to communicate directly or through his
3or her agents with any elective state official, agency official, or
4legislative official for the purpose of influencing legislative or
5administrative action, except for administrative action that is
6governmental procurement, as defined in subdivision (d) of Section
782002.

8(2) A placement agent, as defined in Section 82047.3.

9(3) Any individual who receives two thousand dollars ($2,000)
10or more in economic consideration in a calendar month, other than
11reimbursement for reasonable travel expenses, to communicate
12directly or through his or her agents on behalf of any person other
13than his or her employer with any elective state official, agency
14official, or legislative official for the purpose of influencing
15administrative action that is governmental procurement, as defined
16in subdivision (d) of Section 82002.

17(b) An individual is not a lobbyist by reason of activities
18 described in Section 86300.

19(c) For the purposes of subdivision (a), a proceeding before the
20Public Utilities Commission constitutes “administrative action” if
21it meets any of the definitions set forth in subdivision (b) or (c) of
22Section 82002. However, a communication made for the purpose
23of influencing this type of Public Utilities Commission proceeding
24is not within subdivision (a) if the communication is made at a
25public hearing, public workshop, or other public forum that is part
26of the proceeding, or if the communication is included in the
27official record of the proceeding.

28

SEC. 3.  

No reimbursement is required by this act pursuant to
29Section 6 of Article XIII B of the California Constitution because
30the only costs that may be incurred by a local agency or school
31district will be incurred because this act creates a new crime or
32infraction, eliminates a crime or infraction, or changes the penalty
33for a crime or infraction, within the meaning of Section 17556 of
34the Government Code, or changes the definition of a crime within
35the meaning of Section 6 of Article XIII B of the California
36Constitution.

37

SEC. 4.  

The Legislature finds and declares that this bill furthers
38the purposes of the Political Reform Act of 1974 within the
P9    1meaning of subdivision (a) of Section 81012 of the Government
2Code.

end delete


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