Senate Bill 0718e1

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    SB 718                                         First Engrossed



  1                      A bill to be entitled

  2         An act relating to lobbying; amending s.

  3         11.045, F.S.; revising procedures for

  4         appointing a designated lobbyist to represent a

  5         principal that is represented by two or more

  6         lobbyists; requiring that a lobbyist file an

  7         expenditure report for each period during which

  8         the lobbyist is registered; requiring a

  9         principal that retains a lobbyist to ensure

10         that expenditure reports are properly filed

11         with the Division of Legislative Information

12         Services within the Office of Legislative

13         Services; revising the period for filing

14         expenditure reports; deleting a requirement

15         that certain supplemental reports be filed;

16         limiting the amount of certain fines that may

17         be assessed against a lobbyist; revising the

18         period for paying fines; authorizing the

19         President of the Senate and the Speaker of the

20         House of Representatives to waive the required

21         filing of an expenditure report; providing for

22         the automatic suspension of a lobbyist's

23         registration following failure to pay a fine;

24         amending s. 112.3215, F.S.; modifying the

25         definition of lobbyist for purpose of lobbying

26         before the Executive Branch or the Constitution

27         Revision Commission; requiring registered

28         lobbyists to submit biannual expenditure

29         reports; modifying dates for filing such

30         reports; providing a fine of up to a maximum of

31         $5,000 per late report per day; extending time


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    SB 718                                         First Engrossed



  1         period for payment of such fine and for waiver

  2         and appeals; requiring the Department of

  3         Banking and Finance to collect such fines as

  4         claims of the state; authorizing the department

  5         to assign collection to a collection agent;

  6         providing responsibility of lobbyists and

  7         principals for filing expenditure reports;

  8         providing an effective date.

  9

10  Be It Enacted by the Legislature of the State of Florida:

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12         Section 1.  Subsection (3) of section 11.045, Florida

13  Statutes, is amended to read:

14         11.045  Lobbyists; registration and reporting;

15  exemptions; penalties.--

16         (3)  Each house of the Legislature shall provide by

17  rule the following reporting requirements:

18         (a)  Statements shall be filed by all registered

19  lobbyists two times per year and after each special session of

20  the Legislature, which must statements shall disclose all

21  lobbying expenditures by the lobbyist and the principal and

22  the source of funds for such expenditures.  All expenditures

23  made by the lobbyist and the principal for the purpose of

24  lobbying must be reported. Reporting of expenditures shall be

25  made on an accrual basis. The report of such expenditures must

26  identify whether the expenditure was made directly by the

27  lobbyist, directly by the principal, initiated or expended by

28  the lobbyist and paid for by the principal, or initiated or

29  expended by the principal and paid for by the lobbyist. The

30  principal is responsible for the accuracy of the expenditures

31  reported as lobbying expenditures made by the principal.  The


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    SB 718                                         First Engrossed



  1  lobbyist is responsible for the accuracy of the expenditures

  2  reported as lobbying expenditures made by the lobbyist.

  3  Expenditures made must be reported by the category of the

  4  expenditure, including, but not limited to, the categories of

  5  food and beverages, entertainment, research, communication,

  6  media advertising, publications, travel, and lodging.

  7  Lobbying expenditures do not include a lobbyist's or

  8  principal's salary, office expenses, and personal expenses for

  9  lodging, meals, and travel.

10         (b)  If a principal is represented by two or more

11  lobbyists, the first lobbyist who registers to represent that

12  principal shall be the designated lobbyist. The designated

13  lobbyist's A principal who is represented by two or more

14  lobbyists shall designate one lobbyist whose expenditure

15  report shall include all lobbying expenditures made directly

16  by the principal and those expenditures of the designated

17  lobbyist on behalf of that principal as required by paragraph

18  (a). All other lobbyists registered to represent that

19  principal shall file a report pursuant to paragraph (a).  The

20  report of lobbying expenditures by the principal shall be made

21  pursuant to the requirements of paragraph (a).  The principal

22  is responsible for the accuracy of figures reported by the

23  designated lobbyist as lobbying expenditures made directly by

24  the principal. The designated lobbyist is responsible for the

25  accuracy of the figures reported as lobbying expenditures made

26  by that lobbyist. Each lobbyist shall file an expenditure

27  report for each period during any portion of which he or she

28  was registered, and each principal shall ensure that an

29  expenditure report is filed for each period during any portion

30  of which the principal was represented by a registered

31  lobbyist.


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    SB 718                                         First Engrossed



  1         (c)  For each reporting period the division shall

  2  aggregate the expenditures reported by all of the lobbyists

  3  for a principal represented by more than one lobbyist.

  4  Further, the division shall aggregate figures that provide a

  5  cumulative total of expenditures reported as spent by and on

  6  behalf of each principal for the calendar year.

  7         (d)  The reporting statements shall be filed no later

  8  than 45 days after the end of the reporting period. The first

  9  report shall include the expenditures for the period from

10  January 1 through June 30 the date of adjournment of the

11  regular session of the Legislature, including an extension, if

12  any. The second report shall disclose expenditures for the

13  period from July 1 through December 31 the remainder of the

14  calendar year. A supplemental report shall be filed no later

15  than 45 days after each special session of the Legislature

16  which shall disclose expenditures incurred during the period

17  since the filing of the last previous report through

18  adjournment of the special session.  The statements shall be

19  rendered in the identical form provided by the respective

20  houses and shall be open to public inspection.  Reporting

21  statements may be filed by electronic means, when feasible.

22         (e)  Reports shall be filed not later than 5 p.m. of

23  the report due date.  However, any report that is postmarked

24  by the United States Postal Service no later than midnight of

25  the due date shall be deemed to have been filed in a timely

26  manner, and a certificate of mailing obtained from and dated

27  by the United States Postal Service at the time of the

28  mailing, or a receipt from an established courier company

29  which bears a date on or before the due date, shall be proof

30  of mailing in a timely manner.

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    SB 718                                         First Engrossed



  1         (f)  Each house of the Legislature shall provide by

  2  rule, or both houses may provide by joint rule, a procedure by

  3  which a lobbyist who fails to timely file a report shall be

  4  notified and assessed fines.  The rule shall provide for the

  5  following:

  6         1.  Upon determining that the report is late, the

  7  person designated to review the timeliness of reports shall

  8  immediately notify the lobbyist as to the failure to timely

  9  file the report and that a fine is being assessed for each

10  late day. The fine shall be $50 per day per report for each

11  late day, not to exceed $5,000 per report.

12         2.  Upon receipt of the report, the person designated

13  to review the timeliness of reports shall determine the amount

14  of the fine due based upon the earliest of the following:

15         a.  When a report is actually received by the lobbyist

16  registration and reporting office.

17         b.  When the report is postmarked.

18         c.  When the certificate of mailing is dated.

19         d.  When the receipt from an established courier

20  company is dated.

21         3.  Such fine shall be paid within 30 20 days after

22  receipt of the notice of payment due is transmitted by the

23  Lobbyist Registration Office, unless appeal is made to the

24  division.  The moneys shall be deposited into the Legislative

25  Lobbyist Registration Trust Fund.

26         4.  A fine shall not be assessed against a lobbyist the

27  first time any reports for which the lobbyist is responsible

28  are not timely filed. However, to receive the one-time fine

29  waiver, all reports for which the lobbyist is responsible must

30  be filed within 30 20 days after receipt of notice that any

31  reports have not been timely filed is transmitted by the


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    SB 718                                         First Engrossed



  1  Lobbyist Registration Office. A fine shall be assessed for any

  2  subsequent late-filed reports.

  3         5.  Any lobbyist may appeal or dispute a fine, based

  4  upon unusual circumstances surrounding the failure to file on

  5  the designated due date, and may request and shall be entitled

  6  to a hearing before the General Counsel of the Office of

  7  Legislative Services, who shall recommend to the President of

  8  the Senate and the Speaker of the House of Representatives, or

  9  their respective designees, that the fine be waived in whole

10  or in part for good cause shown. The President of the Senate

11  and the Speaker of the House of Representatives, or their

12  respective designees, may concur in the recommendation and

13  waive the fine in whole or in part. Any such request shall be

14  made within 30 20 days after receipt of the notice of payment

15  due is transmitted by the Lobbyist Registration Office.  In

16  such case, the lobbyist shall, within the 30-day 20-day

17  period, notify the person designated to review the timeliness

18  of reports in writing of his or her intention to request a

19  hearing.

20         6.  A lobbyist, a lobbyist's legal representative, or

21  the principal of a lobbyist may request that the filing of an

22  expenditure report be waived upon good cause shown, based on

23  unusual circumstances. The request must be filed with the

24  General Counsel of the Office of Legislative Services, who

25  shall make a recommendation concerning the waiver request to

26  the President of the Senate and the Speaker of the House of

27  Representatives. The President of the Senate and the Speaker

28  of the House of Representatives may grant or deny the request.

29  The registration of a lobbyist who fails to timely pay a fine

30  is automatically suspended until the fine is paid or waived.

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    SB 718                                         First Engrossed



  1         7.6.  The person designated to review the timeliness of

  2  reports shall notify the director of the division of the

  3  failure of a lobbyist to file a report after notice or of the

  4  failure of a lobbyist to pay the fine imposed.

  5         Section 2.  Section 112.3215, Florida Statutes, is

  6  amended to read:

  7         112.3215  Lobbyists before the Executive Branch or the

  8  Constitution Revision Commission; registration and reporting;

  9  investigation by commission.--

10         (1)  For the purposes of this section:

11         (a)  "Agency" means the Governor, Governor and Cabinet,

12  or any department, division, bureau, board, commission, or

13  authority of the executive branch.  In addition, "agency"

14  shall mean the Constitution Revision Commission as provided by

15  s. 2, Art. XI of the State Constitution.

16         (b)  "Expenditure" means a payment, distribution, loan,

17  advance, reimbursement, deposit, or anything of value made by

18  a lobbyist or principal for the purpose of lobbying.

19         (c)  "Fund" means the Executive Branch Lobby

20  Registration Trust Fund.

21         (d)  "Lobbies" means seeking, on behalf of another

22  person, to influence an agency with respect to a decision of

23  the agency in the area of policy or procurement or an attempt

24  to obtain the goodwill of an agency official or employee.

25  "Lobbies" also means influencing or attempting to influence,

26  on behalf of another, the Constitution Revision Commission's

27  action or nonaction through oral or written communication or

28  an attempt to obtain the goodwill of a member or employee of

29  the Constitution Revision Commission.

30         (e)  "Lobbyist" means a person who is employed and

31  receives payment, or who contracts for economic consideration,


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    SB 718                                         First Engrossed



  1  for the purpose of lobbying, or a person who is principally

  2  employed for governmental affairs by another person or

  3  governmental entity to lobby on behalf of that other person or

  4  governmental entity. "Lobbyist" does not include a person who

  5  is:

  6         1.  An attorney, or any person, who represents a client

  7  in a judicial proceeding or in a formal administrative

  8  proceeding conducted pursuant to chapter 120 or any other

  9  formal hearing before an agency, board, commission, or

10  authority of this state.

11         2.  An employee of an agency or of a legislative or

12  judicial branch entity acting in the normal course of his or

13  her duties.

14         3.  A confidential informant who is providing, or

15  wishes to provide, confidential information to be used for law

16  enforcement purposes.

17         4.  A person who lobbies to procure a contract pursuant

18  to chapter 287 which contract is less than the threshold for

19  CATEGORY ONE as provided in s. 287.017(1)(a).

20         (f)  "Principal" means the person, firm, corporation,

21  or other entity which has employed or retained a lobbyist.

22         (2)  The Executive Branch Lobby Registration Trust Fund

23  is hereby created within the commission to be used for the

24  purpose of funding any office established to administer the

25  registration of lobbyists lobbying an agency, including the

26  payment of salaries and other expenses. The trust fund is not

27  subject to the service charge to General Revenue provisions of

28  chapter 215. All annual registration fees collected pursuant

29  to this section shall be deposited into such fund.

30         (3)  A person may not lobby an agency until such person

31  has registered as a lobbyist with the commission.  Such


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    SB 718                                         First Engrossed



  1  registration shall be due upon initially being retained to

  2  lobby and is renewable on a calendar year basis thereafter.

  3  Upon registration the person shall provide a statement signed

  4  by the principal or principal's representative that the

  5  registrant is authorized to represent the principal. The

  6  registration shall require the lobbyist to disclose, under

  7  oath, the following information:

  8         (a)  Name and business address;

  9         (b)  The name and business address of each principal

10  represented;

11         (c)  His or her area of interest;

12         (d)  The agencies before which he or she will appear;

13  and

14         (e)  The existence of any direct or indirect business

15  association, partnership, or financial relationship with any

16  employee of an agency with which he or she lobbies, or intends

17  to lobby, as disclosed in the registration.

18         (4)  The annual lobbyist registration fee shall be set

19  by the commission by rule, not to exceed $40 for each

20  principal represented.

21         (5)(a)  A registered lobbyist must also submit to the

22  commission, biannually quarterly, a signed expenditure report

23  summarizing all lobbying expenditures by the lobbyist and the

24  principal for each six-month period during any portion of

25  which the lobbyist is registered.  All expenditures made by

26  the lobbyist and the principal for the purpose of lobbying

27  must be reported. Reporting of expenditures shall be on an

28  accrual basis. The report of such expenditures must identify

29  whether the expenditure was made directly by the lobbyist,

30  directly by the principal, initiated or expended by the

31  lobbyist and paid for by the principal, or initiated or


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    SB 718                                         First Engrossed



  1  expended by the principal and paid for by the lobbyist. The

  2  principal is responsible for the accuracy of the expenditures

  3  reported as lobbying expenditures made by the principal. The

  4  lobbyist is responsible for the accuracy of the expenditures

  5  reported as lobbying expenditures made by the lobbyist.

  6  Expenditures made must be reported by the category of the

  7  expenditure, including, but not limited to, the categories of

  8  food and beverages, entertainment, research, communication,

  9  media advertising, publications, travel, and lodging.  Lobby

10  expenditures do not include a lobbyist's or principal's

11  salary, office expenses, and personal expenses for lodging,

12  meals, and travel.

13         (b)  A principal who is represented by two or more

14  lobbyists shall designate one lobbyist whose expenditure

15  report shall include all lobbying expenditures made directly

16  by the principal and those expenditures of the designated

17  lobbyist on behalf of that principal as required by paragraph

18  (a). All other lobbyists registered to represent that

19  principal shall file a report pursuant to paragraph (a). The

20  report of lobbying expenditures by the principal shall be made

21  pursuant to the requirements of paragraph (a). The principal

22  is responsible for the accuracy of figures reported by the

23  designated lobbyist as lobbying expenditures made directly by

24  the principal. The designated lobbyist is responsible for the

25  accuracy of the figures reported as lobbying expenditures made

26  by that lobbyist.

27         (c)  For each reporting period the commission shall

28  aggregate the expenditures of all lobbyists for a principal

29  represented by more than one lobbyist. Further, the commission

30  shall aggregate figures that provide a cumulative total of

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    SB 718                                         First Engrossed



  1  expenditures reported as spent by and on behalf of each

  2  principal for the calendar year.

  3         (d)  The reporting statements shall be filed no later

  4  than 45 days after the end of each reporting period and shall

  5  include the expenditures for the period from January 1 through

  6  March 31, April 1 through June 30, and July 1 through

  7  September 30, and October 1 through December 31, respectively.

  8         (e)  Reports shall be filed not later than 5 p.m. of

  9  the report due date.  However, any report that is postmarked

10  by the United States Postal Service no later than midnight of

11  the due date shall be deemed to have been filed in a timely

12  manner, and a certificate of mailing obtained from and dated

13  by the United States Postal Service at the time of the

14  mailing, or a receipt from an established courier company

15  which bears a date on or before the due date, shall be proof

16  of mailing in a timely manner.

17         (f)  The commission shall provide by rule a procedure

18  by which a lobbyist who fails to timely file a report shall be

19  notified and assessed fines.  The rule shall provide for the

20  following:

21         1.  Upon determining that the report is late, the

22  person designated to review the timeliness of reports shall

23  immediately notify the lobbyist as to the failure to timely

24  file the report and that a fine is being assessed for each

25  late day. The fine shall be $50 per day per report for each

26  late day up to a maximum of $5,000 per late report.

27         2.  Upon receipt of the report, the person designated

28  to review the timeliness of reports shall determine the amount

29  of the fine due based upon the earliest of the following:

30         a.  When a report is actually received by the lobbyist

31  registration and reporting office.


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    SB 718                                         First Engrossed



  1         b.  When the report is postmarked.

  2         c.  When the certificate of mailing is dated.

  3         d.  When the receipt from an established courier

  4  company is dated.

  5         3.  Such fine shall be paid within 30 20 days after

  6  receipt of the notice of payment due is transmitted by the

  7  lobbyist registration office, unless appeal is made to the

  8  commission.  The moneys shall be deposited into the Executive

  9  Branch Lobby Registration Trust Fund.

10         4.  A fine shall not be assessed against a lobbyist the

11  first time any reports for which the lobbyist is responsible

12  are not timely filed. However, to receive the one-time fine

13  waiver, all reports for which the lobbyist is responsible must

14  be filed within 30 20 days after the receipt of notice that

15  any reports have not been timely filed is transmitted by the

16  lobbyist registration office. A fine shall be assessed for any

17  subsequent late-filed reports.

18         5.  Any lobbyist may appeal or dispute a fine, based

19  upon unusual circumstances surrounding the failure to file on

20  the designated due date, and may request and shall be entitled

21  to a hearing before the commission, which shall have the

22  authority to waive the fine in whole or in part for good cause

23  shown.  Any such request shall be made within 30 20 days after

24  receipt of the notice of payment due is transmitted by the

25  lobbyist registration office.  In such case, the lobbyist

26  shall, within the 30-day 20-day period, notify the person

27  designated to review the timeliness of reports in writing of

28  his or her intention to bring the matter before the

29  commission.

30         6.  The person designated to review the timeliness of

31  reports shall notify the commission of the failure of a


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    SB 718                                         First Engrossed



  1  lobbyist to file a report after notice or of the failure of a

  2  lobbyist to pay the fine imposed.

  3         7.  Notwithstanding any provision of ch. 120, any fine

  4  imposed under this subsection that is not waived by final

  5  order of the commission and that remains unpaid more than 60

  6  days after the notice of payment due or more than 60 days

  7  after the commission renders a final order on the lobbyist's

  8  appeal shall be collected by the Department of Banking and

  9  Finance as a claim, debt, or other obligation owed to the

10  state, and the department may assign the collection of such

11  fine to a collection agent as provided in s. 17.20.

12         (g)  The commission shall adopt a rule which allows

13  reporting statements to be filed by electronic means, when

14  feasible.

15         (h)  Each lobbyist and each principal shall preserve

16  for a period of 4 years all accounts, bills, receipts,

17  computer records, books, papers, and other documents and

18  records necessary to substantiate lobbying expenditures. Any

19  documents and records retained pursuant to this section may be

20  inspected under reasonable circumstances by any authorized

21  representative of the commission. The right of inspection may

22  be enforced by appropriate writ issued by any court of

23  competent jurisdiction.

24         (6)  A lobbyist shall promptly send a written statement

25  to the commission canceling the registration for a principal

26  upon termination of the lobbyist's representation of that

27  principal.  Notwithstanding this requirement, the commission

28  may remove the name of a lobbyist from the list of registered

29  lobbyists if the principal notifies the office that a person

30  is no longer authorized to represent that principal. Each

31  lobbyist is responsible for filing an expenditure report for


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    SB 718                                         First Engrossed



  1  each period during any portion of which he or she was

  2  registered, and each principal is responsible for seeing that

  3  an expenditure report is filed for each period during any

  4  portion of which the principal was represented by a registered

  5  lobbyist.

  6         (7)  The commission shall investigate every sworn

  7  complaint that is filed with it alleging that a person covered

  8  by this section has failed to register, has failed to submit

  9  an expenditure report, or has knowingly submitted false

10  information in any report or registration required in this

11  section.  All proceedings, the complaint, and other records

12  relating to the investigation are confidential and exempt from

13  the provisions of s. 119.07(1) and s. 24(a), Art. I of the

14  State Constitution, and any meetings held pursuant to an

15  investigation are exempt from the provisions of s. 286.011(1)

16  and s. 24(b), Art. I of the State Constitution either until

17  the alleged violator requests in writing that such

18  investigation and associated records and meetings be made

19  public or until the commission determines, based on the

20  investigation, whether probable cause exists to believe that a

21  violation has occurred.

22         (8)  If the commission finds no probable cause to

23  believe that a violation of this section occurred, it shall

24  dismiss the complaint, whereupon the complaint, together with

25  a written statement of the findings of the investigation and a

26  summary of the facts, shall become a matter of public record,

27  and the commission shall send a copy of the complaint,

28  findings, and summary to the complainant and the alleged

29  violator.  If the commission finds probable cause to believe

30  that a violation occurred, it shall report the results of its

31  investigation to the Governor and Cabinet and send a copy of


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    SB 718                                         First Engrossed



  1  the report to the alleged violator by certified mail.  Such

  2  notification and all documents made or received in the

  3  disposition of the complaint shall then become public records.

  4  Upon request submitted to the Governor and Cabinet in writing,

  5  any person whom the commission finds probable cause to believe

  6  has violated any provision of this section shall be entitled

  7  to a public hearing. Such person shall be deemed to have

  8  waived the right to a public hearing if the request is not

  9  received within 14 days following the mailing of the probable

10  cause notification. However, the Governor and Cabinet may on

11  its own motion require a public hearing and may conduct such

12  further investigation as it deems necessary.

13         (9)  If the Governor and Cabinet finds that a violation

14  occurred, it may reprimand the violator, censure the violator,

15  or prohibit the violator from lobbying all agencies for a

16  period not to exceed 2 years.

17         (10)  Any person, when in doubt about the applicability

18  and interpretation of this section to himself or herself in a

19  particular context, may submit in writing the facts of the

20  situation to the commission with a request for an advisory

21  opinion to establish the standard of duty.  An advisory

22  opinion shall be rendered by the commission and, until amended

23  or revoked, shall be binding on the conduct of the person who

24  sought the opinion, unless material facts were omitted or

25  misstated in the request.

26         (11)  Agencies shall be diligent to ascertain whether

27  persons required to register pursuant to this section have

28  complied.  An agency may not knowingly permit a person who is

29  not registered pursuant to this section to lobby the agency.

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    SB 718                                         First Engrossed



  1         (12)  Upon discovery of violations of this section an

  2  agency or any person may file a sworn complaint with the

  3  commission.

  4         (13)  The commission shall adopt rules to administer

  5  this section, which shall prescribe forms for registration and

  6  expenditure reports, procedures for registration, and

  7  procedures that will prevent disclosure of information that is

  8  confidential as provided in this section.

  9         Section 3.  This act shall take effect upon becoming a

10  law.

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