SENATE, No. 1043

 

STATE OF NEW JERSEY

 

INTRODUCED MAY 2, 1996

 

 

By Senators CASEY, CONNORS, Adler, McGreevey and Lynch

 

 

An Act prohibiting the granting of benefits by lobbyists and legislative agents and the receipt of those benefits by certain candidates and elected officials, amending P.L.1971, c.183 and P.L.1981, c.150 and supplementing Title 52 of the Revised Statutes.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. (New section) a. The Legislature finds and declares that it is essential for it to maintain its integrity as a public institution and to separate itself clearly from corruption or the appearance of corruption. This interest can be served by prohibiting any lobbyist or legislative agent from providing any compensation, employment or reward or making any expenditures providing a benefit to a member of the Legislature, legislative staff or a candidate for the office of member of the Legislature and by prohibiting those persons from accepting any compensation, employment or reward or any expenditures providing a benefit. The Legislature, by imposing such a prohibition, affirms that it, its employees and those who seek to serve in it are not subject to control by nor are they the tool of any special group, interest or organization.

    b. As used in this section:

    (1) the terms "person," "lobbyist,""legislative agent," "member of the Legislature," and "legislative staff" have the meaning provided for in section 3 of P.L.1971, c.183 (52:13C-20), as amended; and

    (2) the terms "expenditures providing a benefit" and "expenditures providing benefits” mean any expenditures for entertainment, food and beverage, travel and lodging, honoraria, loans, gifts or any other thing of value, except for (a) any money or thing of value paid for past, present, or future services in regular employment, whether in the form of a fee, expense, allowance, forbearance, forgiveness, interest, dividend, royalty, rent, capital gain, or any other form of recompense, or any combination thereof, or (b) any dividends or other income paid on investments, trusts, and estates.

    c. No lobbyist or legislative agent who or which has filed a notice of representation with the commission pursuant to section 4 of P.L.1971, c.183 (C.52:13C-21) and no organization, association, corporation, federation of organized labor, union or other group that has been listed as providing compensation or some other form of payment to a lobbyist or legislative agent on a notice of representation pursuant to that same section shall offer, make or authorize or cause to be offered, made or authorized, whether directly or indirectly, any compensation, reward, employment, money, service, item of merchandise or any expenditures providing a benefit to a member of the Legislature, legislative staff or a candidate for nomination for election or for election to the office of member of the Legislature.

    d. A member of the Legislature, a candidate for nomination for election or for election to the office of member of the Legislature and a member of legislative staff shall not accept, whether directly or indirectly, any compensation, reward, employment, money, service, item of merchandise or any expenditures providing a benefit from a lobbyist or legislative agent who or which has filed a notice of representation with the commission pursuant to section 4 of P.L.1971, c.183 (C.52:13C-21) or any organization, association, corporation, federation of organized labor, union or other group that has been listed as providing compensation or some other form of payment to a lobbyist or legislative agent on a notice of representation pursuant to that same section.

    e. The prohibitions provided for in subsections c. and d. of this section shall not apply to any contribution made by a lobbyist or legislative agent to the campaign, candidate committee, joint candidates committee, or both, of a candidate for nomination for election or for election to the office of member of the Legislature or for reelection to such office that is subject to the provisions of "The New Jersey Campaign Contributions and Expenditures Reporting Act," P.L.1973, c.83 (C.19:44A-1 et seq.), as amended and supplemented.

    f. The provisions of this section shall not apply to the acts of a person in providing benefits to a member of the Legislature or legislative staff if such provision of benefits is undertaken by him as a personal expression and not incident to his employment, even if it is upon a matter relevant to the interests of a person by whom or which he is employed, and if he receives no additional compensation or reward, in money or otherwise, for or as a result of such provision of benefits.

    g. Any person who willfully violates the provisions of this section is a disorderly person and shall be subject to a fine not to exceed $500.00 or imprisonment not to exceed six months, or both.


    2. Section 3 of P.L.1971, c.183 (C.52:13C-20) is amended to read as follows:

    3. For the purposes of this act, as amended and supplemented, unless the context clearly requires a different meaning:

    a. The term "person" includes an individual, partnership, committee, association, corporation, and any other organization or group of persons.

    b. The term "legislation" includes all bills, resolutions, amendments, nominations and appointments pending or proposed in either House of the Legislature, and all bills and resolutions which, having passed both Houses, are pending approval by the Governor.

    c. The term "Legislature" includes the Senate and General Assembly of the State of New Jersey and all committees and commissions established by the Legislature or by either House thereof.

    d. The term "lobbyist" means any person, partnership, committee, association, corporation, labor union or any other organization that employs, engages or otherwise uses the services of any legislative agent to influence legislation or regulation.

    e. The term "Governor" includes the Governor or the Acting Governor.

    f. The term "communication with a member of the Legislature, "with legislative staff," "with the Governor," "with the Governor's staff," or "with an officer or staff member of the Executive Branch" means any communication, oral or in writing or any other medium, addressed, delivered, distributed or disseminated, respectively, to a member of the Legislature, to legislative staff, to the Governor, to the Governor's staff, or to an officer or staff member of the Executive Branch, as distinguished from communication to the general public including but not limited to a member of the Legislature, legislative staff, the Governor, the Governor's staff, or an officer or staff member of the Executive Branch. If any person shall obtain, reproduce or excerpt any communication or part thereof which in its original form was not a communication under this subsection and shall cause such excerpt or reproduction to be addressed, delivered, distributed or disseminated to a member of the Legislature, to legislative staff, to the Governor, to the Governor's staff, or to an officer or staff member of the Executive Branch, such communication, reproduction or excerpt shall be deemed a communication with the member of the Legislature, with legislative staff, with the Governor, with the Governor's staff, or with an officer or staff member of the Executive Branch by such person.

    g. The term "legislative agent" means any person who receives or agrees to receive, directly or indirectly, compensation, in money or anything of value including reimbursement of his expenses where such reimbursement exceeds $100.00 in any three-month period, to influence legislation or to influence regulation, or both, by direct or indirect communication with a member of the Legislature or legislative staff or by direct or indirect communication with, or by making or authorizing, or causing to be made or authorized, any expenditures providing a benefit to, [a member of the Legislature, legislative staff,]the Governor, the Governor's staff, or any officer or staff member of the Executive Branch, or who holds himself out as engaging in the business of influencing legislation or regulation by such means, or who incident to his regular employment engages in influencing legislation or regulation by such means; provided, however, that a person shall not be deemed a legislative agent who, in relation to the duties or interests of his employment or at the request or suggestion of his employer, communicates with a member of the Legislature, with legislative staff, with the Governor, with the Governor's staff, or with an officer or staff member of the Executive Branch concerning any legislation or regulation, if such communication is an isolated, exceptional or infrequent activity in relation to the usual duties of his employment.

    h. The term "influence legislation" means to make any attempt, whether successful or not, to secure or prevent the initiation of any legislation, or to secure or prevent the passage, defeat, amendment or modification thereof by the Legislature, or the approval, amendment or disapproval thereof by the Governor in accordance with his constitutional authority.

    i. The term "statement" includes a notice of representation or a report required by this act, as amended and supplemented.

    j. (Deleted by amendment, P.L.1991, c.243).

    k. The term "member of the Legislature" includes any member or member-elect of, or any person who shall have been selected to fill a vacancy in, the Senate or General Assembly, and any other person who is a member or member-designate of any committee or commission established by the Legislature or by either House thereof.

    l. The term "legislative staff" includes all staff, assistants and employees of the Legislature or any of its members in the member's official capacity, whether or not they receive compensation from the State of New Jersey.

    m. The term "Governor's staff" includes the members of the Governor's Cabinet, the Secretary to the Governor, the Counsel to the Governor and all professional employees in the office of the Counsel to the Governor, and all other employees of the Office of the Governor.

    n. The term "officer or staff member of the Executive Branch" means any assistant or deputy head of a principal department in the Executive Branch of State Government, including all assistant and deputy commissioners; the members and chief executive officer of any authority, board, commission or other agency or instrumentality in or of such a principal department; and any officer of the Executive Branch of State Government other than the Governor who is not included among the foregoing or among the Governor's staff, but who is empowered by law to issue, promulgate or adopt administrative rules and regulations, and any person employed in the office of such an officer who is involved with the development, issuance, promulgation or adoption of such rules and regulations in the regular course of employment.

    o. The term "regulation" includes any administrative rule or regulation affecting the rights, privileges, benefits, duties, obligations, or liabilities of any one or more persons subject by law to regulation as a class, but does not include an administrative action (1) to issue, renew or deny, or, in an adjudicative action, to suspend or revoke, a license, order, permit or waiver under any law or administrative rule or regulation, (2) to impose a penalty, or (3) to effectuate an administrative reorganization within a single principal department of the Executive Branch of State Government.

    p. The term "influence regulation" means to make any attempt, whether successful or not, to secure or prevent the proposal of any regulation or to secure or prevent the consideration, amendment, issuance, promulgation, adoption or rejection thereof by an officer or any authority, board, commission or other agency or instrumentality in or of a principal department of the Executive Branch of State Government empowered by law to issue, promulgate or adopt administrative rules and regulations.

    q. [ The term "expenditures providing a benefit" or "expenditures providing benefits" means any expenditures for entertainment, food and beverage, travel and lodging, honoraria, loans, gifts or any other thing of value, except for (1) any money or thing of value paid for past, present, or future services in regular employment, whether in the form of a fee, expense, allowance, forbearance, forgiveness, interest, dividend, royalty, rent, capital gain, or any other form of recompense, or any combination thereof, or (2) any dividends or other income paid on investments, trusts, and estates] (Deleted by amendment, P.L. , c. (now pending before the Legislature as this bill)).

    r. The term "commission" means the Election Law Enforcement Commission established pursuant to section 5 of P.L.1973, c.83 (C.19:44A-5).

(cf: P.L.1991,c.244,s.1)

 

    3. Section 4 of P.L.1971, c.183 (C.52:13C-21) is amended to read as follows:

    4. a. Any person who, on or after the effective date of P.L.1991, c.243, is employed, retained or engages himself as a legislative agent shall, prior to any communication with a member of the Legislature or legislative staff or any communication with, or the making of any expenditures providing a benefit to,[ a member of the Legislature, legislative staff,]the Governor, the Governor's staff, or an officer or staff member of the Executive Branch, and in any event within 30 days of that effective date or of such employment, retainer or engagement, whichever occurs later, file a signed notice of representation with the Election Law Enforcement Commission in such detail as the commission may prescribe, identifying himself and persons by whom he is employed or retained, and the persons in whose interests he is working, and the general nature of his proposed services as a legislative agent for such persons, which notice shall contain the following information:

    (1) his name, business address and regular occupation;

    (2) the name, business address and occupation or principal business of the person from whom he receives compensation for acting as a legislative agent;

    (3) (a) the name, business address and occupation or principal business of any person in whose interest he acts as a legislative agent in consideration of the aforesaid compensation, if such person is other than the person from whom said compensation is received; and

    (b) if a person, identified under paragraph (2) of this subsection as one from whom the legislative agent receives compensation, is a membership organization or corporation whose name or occupation so identified does not, either explicitly or by virtue of the nature of the principal business in which the organization or its members, or the corporation or its shareholders, is commonly known to be engaged, clearly reveal the primary specific economic, social, political, or other interest which the organization or corporation may reasonably be understood to seek to advance or protect through its employment, retainer, or engagement of the legislative agent, a description of that primary economic, social, political, or other interest and a list of the persons having organizational or financial control of the organization or corporation, including the names, mailing addresses and occupations, respectively, of those persons. The commission shall promulgate rules and regulations to govern the content of any information required to be disclosed under this subparagraph and shall take such steps as are reasonably necessary to ensure that all such information is, in accordance with those rules and regulations, both accurate and complete.

    Any list of legislative agents and their principals required to be published quarterly under subsection h. of section 6 of P.L.1971, c.183 (C.52:13C-23) shall include, for each such principal for whom it is not otherwise apparent, the primary specific interest which the principal may reasonably be understood to seek to advance or protect through its engagement of the legislative agent and the category of persons required to file additional information, as that interest and such category shall have been determined under subparagraph (b) of this paragraph;

    (4) whether the person from whom he receives said compensation employs him solely as a legislative agent, or whether he is a regular employee performing services for his employer which include but are not limited to the influencing of legislation or regulation;

    (5) the length of time for which he will be receiving compensation from the person aforesaid for acting as a legislative agent, if said length of time can be ascertained at the time of filing;

    (6) the type of legislation or regulation or the particular legislation or regulation in relation to which he is to act as legislative agent in consideration of the aforesaid compensation, and any particular legislation or regulation or type of legislation or regulation which he is to promote or oppose;

    (7) a full and particular description of any agreement, arrangement or understanding according to which his compensation, or any portion thereof, is or will be contingent upon the success of any attempt to influence legislation or regulation.

    b. Any legislative agent who receives compensation from more than one person for his services as a legislative agent shall file a separate notice of representation with respect to each such person; except that a legislative agent whose fee for acting as such in respect to the same legislation or regulation or type of legislation or regulation is paid or contributed to by more than one person may file a single statement, in which he shall detail the name, business address and occupation or principal business of each person so paying or contributing.

(cf: P.L.1991,c.244,s.2)

 

    4. Section 2 of P.L.1981, c.150 (C.52:13C-22.1) is amended to read as follows:

    2. Each legislative agent or lobbyist shall make and certify the correctness of a full annual report to the Election Law Enforcement Commission, of those moneys, loans, paid personal services or other things of value contributed to it and those expenditures made, incurred or authorized by it for the purpose of communication with [or providing benefits to] any member of the Legislature[,] or legislative staff, or communication with or providing benefits to the Governor, the Governor's staff, or an officer or staff member of the Executive Branch during the previous year. The report shall include, but not be limited to, the following expenditures which relate to communication with[, or providing benefits to,]any member of the Legislature[,]or legislative staff, or communication with or providing benefits to the Governor, the Governor's staff, or an officer or staff member of the Executive Branch: media, including advertising; entertainment; food and beverage; travel and lodging; honoraria; loans; gifts; and salary, fees, allowances or other compensation paid to a legislative agent. The expenditures shall be reported whether made to the intended recipient of the communication or benefit or to a legislative agent or a lobbyist. The expenditures shall be reported in the aggregate by category, except that if the aggregate expenditures on behalf of a member of the Legislature, legislative staff, the Governor, the Governor's staff, or an officer or staff member of the Executive Branch exceed $25.00 per day, they shall be detailed separately as to the name of the member of the Legislature, member of legislative staff, the Governor, member of the Governor's staff, or officer or staff member of the Executive Branch, date and type of expenditure, amount of expenditure and to whom paid. Where the aggregate expenditures for the purpose of communication with [or providing benefits to] any one member of the Legislature[,]or member of legislative staff, or communication with or providing benefits to the Governor, the Governor's staff, or an officer or staff member of the Executive Branch, exceed $200.00 per year, the expenditures, together with the name of the intended recipient of the communication or benefits, shall be stated in detail including the type of each expenditure, amount of expenditure and to whom paid. Where the expenditures in the aggregate with respect to any specific occasion are in excess of $100.00, the report shall include the date and type of expenditure, amount of expenditure and to whom paid. The Election Law Enforcement Commission may, in its discretion, permit joint reports by legislative agents. No legislative agent shall be required to file a report unless all moneys, loans, paid personal services or other things of value contributed to it for the purpose of communication with [or making expenditures providing a benefit to] a member of the Legislature[,]or legislative staff, or communication with or making expenditures providing a benefit to the Governor, the Governor's staff, or officer or staff member of the Executive Branch, exceed $2,500.00 in any year or unless all expenditures made, incurred or authorized by it for the purpose of communication with [or providing benefits to] a member of the Legislature[,]or legislative staff, or communication with or providing benefits to the Governor, the Governor's staff, or officer or staff member of the Executive Branch exceed $2,500.00 in any year.

    Any lobbyist who receives contributions or makes expenditures to influence legislation or regulation shall be required to file and certify the correctness of a report of such contributions or expenditures if the contributions or expenditures made, incurred or authorized by it for the purpose of communication with [or providing benefits to] a member of the Legislature[,]or legislative staff, or communication with or providing benefits to the Governor, the Governor's staff, or an officer or staff member of the Executive Branch, exceed, in the aggregate, $2,500.00 in any year. Any lobbyist required to file a report pursuant to this section may designate a legislative agent in its employ or otherwise engaged or used by it to file a report on its behalf; provided such designation is made in writing by the lobbyist, is acknowledged in writing by the designated legislative agent and is filed with the Election Law Enforcement Commission on or before the date on which the report of the lobbyist is due for filing, and further provided that any violation of this act shall subject both the lobbyist and the designated legislative agent to the penalties provided in this act.

    This section shall not be construed to authorize any person to make or authorize, or to cause to be made or authorized, any expenditure providing a benefit, or to provide a benefit, the provision or receipt of which is prohibited under the "New Jersey Conflicts of Interest Law," P.L.1971, c.182 (C.52:13D-12 et seq.) or any code of ethics promulgated thereunder, or under any other law or any executive order, rule or regulation.

(cf: P.L.1991,c.243,s.5)

 

    5. Section 10 of P.L.1971, c.183 (C.52:13C-27) is amended to read as follows:

    10. This act shall not apply to the following activities:

    a. the publication or dissemination, in the ordinary course of business, of news items, advertising, editorials or other comments by a newspaper, book publisher, regularly published periodical, or radio or television station, including an owner, editor or employee thereof;

    b. acts of an officer or employee of the Government of this State or any of its political subdivisions, or of the Government of the United States or of any State or territory thereof or any of their political subdivisions, in carrying out the duties of their public office or employment;

    c. acts of bona fide religious groups acting solely for the purpose of protecting the public right to practice the doctrines of such religious groups;

    d. acts of a duly organized national, State or local committee of a political party;

    e. acts of a person in testifying before a legislative committee or commission, at a public hearing duly called by the Governor on legislative proposals or on legislation passed and pending his approval, or before any officer or body empowered by law to issue, promulgate or adopt administrative rules and regulations in behalf of a nonprofit organization incorporated as such in this State who receives no compensation therefor beyond the reimbursement of necessary and actual expenses, and who makes no other communication with a member of the Legislature, legislative staff, the Governor, the Governor's staff, or an officer or staff member of the Executive Branch in connection with the subject of his testimony; and

    f. acts of a person in communicating with [or providing benefits to] a member of the Legislature[,]or legislative staff, or communicating with or providing benefits to the Governor, the Governor's staff, or an officer or staff member of the Executive Branch, if such communication or provision of benefits is undertaken by him as a personal expression and not incident to his employment, even if it is upon a matter relevant to the interests of a person by whom or which he is employed, and if he receives no additional compensation or reward, in money or otherwise, for or as a result of such communication or provision of benefits.

(cf: P.L.1991,c.243,s.6)

 

    6. This act shall take effect on January 1st following enactment.

 

 

STATEMENT

 

    The purpose of this bill is to prohibit the granting of certain benefits by lobbyists and legislative agents.

    Specifically, the bill:

    1) prohibits lobbyists and legislative agents and any organization that provides some form of compensation thereto from giving any compensation, employment, reward or making any expenditures providing a benefit to members of the Legislature, legislative staff or candidates for the office of member of the Legislature;

    2) prohibits those same public officials from accepting any compensation, employment, reward or any expenditures providing a benefit from a lobbyist or legislative agent or any organization that provides some form of compensation to a lobbyist or legislative agent;

    3) exempts from the prohibitions any campaign contribution by a lobbyist or legislative agent to a candidate for nomination for or election to the office of member of the Legislature; and

    4) provides that any person who willfully violates the prohibitions is a disorderly person and shall be subject to a fine not to exceed $500.00 or imprisonment not to exceed six months, or both.

 

 

 

Prohibits lobbyists or legislative agents from providing benefits to legislators, staff and legislative candidates and prohibits those officials from accepting such benefits.