Untitled Texas Attorney General Opinion

April 16, 1975 The Honorable William T. “Bill” Moore Opinion No. H- 583 Chairman, State Affairs Committee The Senate of the State of Texas Re: Interpretation of the Austin. Texas 78711 Lobby Control Act Dear Senator Moore: You have asked our opinion on 45 questions involving the Lobby Control Act, article 6252-9~. Your questions are too numerous to list separately, but many of them are arranged in groups dealing with single subjects. In the interest of brevity, we have consolidated and summarized your questions wherever possible. Your first group of questions involves the circumstances under which an individual who is employed by another and who communicates with a public official to influence legislation is required to register under section 3 of the Act. Section 3 provides: (a) The following persons must register,with the secretary as provided in Section 5 of this Act: (1) a person who makes a total expenditure in excess of $200 in a calendarquarter, not including his own travel, food, or lodging expenses, or his own membership dues, for communicating directly with one or more members of the legislative or execu- tive branch to influence legislation: and (2) a person who receives compensation or reim- bursement from another to communicate directly with a member of the legislative or executive branch to influence legislation. p. 2595 . . . . .. The Honorable William T. “Bill” Moore, page 2 (H-563) (b) A person. other than a member of the judicial, legislative, or executive branch, who, as part of hi6 regular employment, communicate6 directly with a member of the legislative or executive branch to influence legislation, whether or not any compen- _. eation in addition to the salary for that regular employment is received for the communication, must register under Subsection (a), Paragraph (2), of thie section. There are five questions in your first group but they are effectively rummarized by your quertion l(e) which i6: What is the test for determining whether a 6alaried individual communicate6 directly with a member of the legislative or executive branch to influence legislation “as a part of his regular employment, ” as the quoted phrase ie used in Section 3(b)? It i6 our view that a person communicates with a public official or candidate within the acope of his regular employment when the ccrmmtnication i6 on behalf of and at the exprers or implied direction of hi6 employer or is ratified by his employer. We do not believe that it io necessary that a specific portion of hi6 salary be allocable to hi6 role of communicating with members of the legislative and executive branches. It is sufficient that he be employed andthat he communicate with public officials or candidates to influence legislation a6 an incident of his employment. Rrrthermore, an individual who receives compensation or reimbursement from another person to communicate directly with a member of the legislative or executive branch to influence legislation must register pursuant to section 3(a)(2). Whether he receives a salary is not determinative. Your second series of question6 concerns registration by “a group of person6 who are voluntarily acting in concert.” Such groups are “persone” required to register under section 3. See section 2(l). We believe that the test for whether a group is within this definition is that contained in Rock Creek Oil v. Moore, 41 S. W. 2d 501 (Tex. Civ. App. --Amarillo 1931); rev’d. on other grounds, 59 S. W. 2d 815 (Tex. Comm. 1933). p. 2596 The Honorable William T. “Bill” Moore, page 3 (H- 583) [Cbcerted action ia: ‘Action that has been planned, arranged, adjuclted, agreed upon and 6ettled between parties acting together in pursuance of some design or in accordance with some scheme.’ 41 S. W. 2d at 504. - Thus, when persons are acting pursuant to agreement and in pursuit of some common goal they would constitute “a group ‘of persons who are voluntarily acting in concert. I’ A group may designate any member or employee to actually prepare, sign and file the report, Attorney General Opinion H-311 (1974). Your third series of questions involves communications between an individual and a public official when the communication i6 initiated by the public official. You offer example6 of a legislator placing a telephone call to a citizen or sending the citizen a questionnaire to ascertatn. hi6 position on proposed legislation. You ask if this type. contact constitutes a direct communication to inQuence legislation for purposes of registration under the Act. As a practical matter, the only instance in which a question might arise is when the citizen is contacted in the course of hi6 employment. You also ask whether registration is requi’red o.f an individual who is~requested to appear before a legislative committee and receives reimbursement from the State for hi6 expenses while at the same time being compensated by his’ employer. We do not believe that the Lobby Control Act was intended to require regietration by a person merely because in the course of his employment, he responded to a legislator’s telephone call or letter or appeared before a committee at the committee’6 specific request. However, neither do we believe that the Act can be construed to permit a subterfuge by which persons can avoid registration by making certain that the communication was initi- ated by the public official. Persons are required to register under the Act when,they communicate directly with a member of the legislative or execu- tive branch for the purpose of influencing legislation and (1) spend more than $200 in a calendar quarter for that purpose, (2) receive compensation or reimbursement from another for those activities. or (3) do so as part of their regular employment. The Act is designed to require registration by those persons who spend substantial sums of money for lobbying activities and those who ark .paId by other persons to represent their interests before the legis- lative or executive branch of the government, Persons who lobby on behalf of . . p. 2597 The Honorable William T. “Bill” Moore, page 4 (H-583) their employer in the course of their r.egular employment fall into thi6 latter group; however, we do not believe that perron who merely respond to a legislator’s inquiry necessarily do 50 a6 part of their regular employ- ment. In most cases re6ponding to the inquiry by the public official will not be part of the person’5 regular employment. On the contrary, it will be an unusual and unanticipated duty. Some persons, however, may be expressly or impliedly designated by their employer to handle comrnunica- tions with public officials and such dutieo will be a usual part of their employment, These persons normally would be within the ambit of the registration provisions of the Act. You aleo ask whether a person who communicate5 with a public official for the purpose of providing factual information which may have an effect on legislation or. for the purpose of delivering a campaign contribution to the official would be required to register under the Act. The necessity to register would depend on the occurrence of a direct communication with the public official to influence legislation. In the cases you cite the answer generally would depend on a factual’determin6,tion in the particular instance of whether the communication was made to influence ,legilrlation. You next ask if section 3(a)(2) requires registration of a person who receive6 reimbureement from another to communicate directly with a public official to influence legislation if the individual does not ,make a total expendi- ture in exceso of $200 in a calendar quarter. An individual who i6 compen- 6ated or reimbursed by another person to communicate with members of the legislative or executive branch to influence legirlation is required to register under section 3(a)(2). Unlike rection 3(a)(l) this provision include6 no mini- mum expenditure which triggers the registration requirement. You also ask what expenditure6 are to be included under section 3(a)(l) in determining whether a person has 6pent in excess of $200 in a calendar quarter. That section refer5 to “a total expenditure in excess of $200 in a calendar quarter, not including hi6 own travel, food, or lodging expenses, or his own membership dues, for communicating directly with one or more members of the legislative or executive branch to influence legislation.” We believe this would include any expenditure, other than those specifically excepted, which are reasonably related to communication to influence legis- lation. Whether a specific expenditure is made for that purpose depends on the facts of the individual case, but for an example of some of the types of expenses which might qualify see section 6(b)(l). p. 2598 The Honorable William T; “Bill” Moore, page 5 (H-583) You next ark if rection 3(b) exempt6 a member of the judicial, legi6lative or executive branch from the operation of section 3(a)(l) 55 well as from the operat ion of 6ection 3(a)(2). Section 3(b)(l) require5 regi6tration of perron 6pending a certain amount of money to influence legi6lation. Section 3(a)(2) requires regi6tration of per6ons who lobby oh behalf of another for compensation or reimbursement. Section 3(b) pro- vider that a perron other than a member of the legislative, executive, or judicial branch who, a6 a part of hi6 regular employment, directly com- municates with a public official to influence legislation is required to register under section 3(a)(2). Due to it6 specific reference to section 3(a)(2) ad the explanatory nature of it6 contents, in our opinion section , 3(b) wa6 intended to modi& only section 3(a)(2) and doe6 not apply to section 3(a)(l). However, the responclibilities of members of the legis- lative and executive departments may necessarily entail the expenditure of money to communicate with other members of these departments. Thi6 ie particularly true iit regard to members of the Legislature. In addition, the policy expreosed in 6ection 1 concern6 communications by non-member5 with members of the executive and legi6lative departments. Consequently, we feel that members of the legislative and executive departments acting in the course of their official duties are impliedly exempted from the requirements,of section 3(a)(l), just as they are expressly exempted from 3(a)(2). And see Attorney General Opinion H-297 (1974). You next ask if an individual who has regi6tered because of hi6 attempt to influence legislation ir required to register again when he communicate5 with a public offtcial in an attempt to influence legislation on behalf of another person, You indicate that you are specifically concerned with the situation in which registration is clearly required for the first contact but where the second contact standng alone would not have required registration. It should be noted that thi6 particular rituation will rarely, if ever, occur. If a perron is lobbying on behalf of another and is reimbursed for that service, he i6 required to register regardlea of the amount of reim- bureement or compensation he recsives unless he fall5 in the very narrow exception of section 3(b), NOnethele66, the regirtration requirement i6 a personal one. Once a person is required to register he mu6t furni6h certain data outlined in 6ection 5 indicating, inter alta, the name and address of each person by whom he is reimbureed, retained or employed to com- municate directly with public official6 to influence legi6lation. He also is required to update the information periodically. p. 2599 The Honorable William T. “Bill” Moore, page 6 (H-583) You next call our attention to section 5 of the Act which requires that a person regieter within five day6 after the first undertaking requiring registration. You ask when the first’undertaking requiring registration OCCUr6. It is ourview that a person is not required to register until he satisfies each element requiring him to register under any particular ’ 6Ub6eCtiOn. For purposes of section 3(a)(l) he would be required to’register within five days after he had directly communicated with a public official and had spent in exce6s of $200 for that purpose. For purposes of section 3(a)(2) and 3(b) he would be required to register a6 soon as he had directly communicated with a public offtcial either on behalf of another who is reimbursing-or compensating him or as a part of hi6 regular employment. Section 5(b)(.3) requires the filing of the “name and.addre68 of each person who made a contribution or paid a memberehip fee ia excess of $500 during the.preciding 12 month period to the registrant or to the p%rson by whom the regirtrant it3. reimbureed, retained, or employed. . . . ” Section 5(d) require6 that a supplemental regirrtration be filed indicating any change in the registration within ten daya after the dste of the change. You . ask if, afteran initil registration,’ any contributions or membership fee in exc.ess of $500 must be reported withid.ten days of receipt. It is our opinion that the statute .clearly require5 an affirmative ‘answer. . _’ Section 5(b)(4)(A) requires that a registrant list the name of the person who ha6 retained or employed him. YoU ask whom a salaried associate in a law firm 6hoUld.li6t a6 the person who retains or employ6 him. An associate generally is employed by the firm, and the client’e’contract for.services to be rendered is with the firm r&her than the as6,ociate.. Never- theless, we’think the..Act contemplates that individuals requi.red to register liet the per6ons whom they are representing. Thus, the associate in a law firm, a6 well96 it6 partne.r6, should li6t tha,fir?U’S Client as the person who is employing; reimbursing or retaining him. Additionally,’ the attorney who i6 acting on,behalf.ef his law firm ‘may need to-list the name .of the firm ’ a6 well. Of. course, compliance will be as&ad when,the names of both the firm and. the client are.listed. ... Section 5(c) require6 that thesinformation. filed by a ‘registrant who performs hi6 activities on behalf of a group other than a corporation include a description .of the method6 by which the “registrant” develop6 &nd makes decisions on policy. The actual registrant is the lobbyist and not necessarily the client who’ .: p. 2600 The Honorable William T. “BillV~ Moore, page 7 (H-583) emp!Oy6 him! Attorney General Opinion H-191 (1973). You suggest that perhape only the fact that the lobbyi6t : registrant follows the policy set by hi6 client !s @l that need be reported. We believe the Legislature intended that the deci- piontmaking practice6 of the employer be described for otherwiee there would be no full descr/ption of the method by which policy decision6 are made. You finally ask several question6 about section 6 which provides: Sec. 6, (a) Every person registered under Section 5 of this Act shall file with the secretary a report concerning the activities set out in Subsection (b) of this section. The report mu& be filed: (1) between the 1st and 10th day of each month sub- 6equent . . . .., $0 a month in which the legislature is in session coygring the actje$je6 during the previous month; and (2) between the 1st and 10th day of each month immediately subsequent to the last month in a calendar qerter covering the activities during the previous quarter. (b) The report shall be written, verified, and contain the fopqwing information: (1) the total expendituresmade by the registrant for directly communicating with a member of the legislative or executive branch to influence legislation, including expendi- tures .made by other6 on behalf of the registrant for thoee direct communications if the expenditure6 were made with hi6.expresr or implied coneent or were ratified by him. Such report ehall include a breakdown of expenditures into the following categories: (A) postage and telegraph; (B) publication and advertising; (C) travel and fee6; (D) entertainment; (E) gifts, loanr, and political contributions; and (F) other expenditure6; p. 26dl The Honorable William T. “Bill” Moore, page 8 (H-583) (2) a list of legislation supported or opposed by the registrant, by any person retained or employed by the registrant to appear on his behalf, or by any other person appearing on his behalf, together with a statement of the registrant’s position for or against .such legislation. (c) Each person who made expenditures,on behalf of a registrant that are required to be reported by Subsection (b) of this section or who has other information required to be reported by the registrant under this section or Section 5 shall provide a full, verified account of his expenditures to the registrant at least seven day6 before the regietrant’s report is due to be filed. ,. ., . Your first question in this series asks if a registrant is required to make both quarterly and monthly reports during a legislative session. Section 6(a)(2) requires that a registrant make reports each quartei and section’6(a)(l) requires monthly reports during a legislative session. There is nothing in the Act to-suggest that the ffing.of monthly report6 obviate6 the necessity of filing the quarterly report6 which cover the ‘same period. Indeed the lang- I uage of the statute indicates that the reports are to be filed monthly during the legislative session -and to be filed each quarter> :* Your next question asks if an expenditure made for directly communicating with a member of ,the Legislature must be reported even though no legislation is mentioned or. discussed. The statutory test a6 to whether an expenditure ” must be reported is whether it was made for direct communication to influence i legislation. Although most communications which are designedto influence legislation will include ,discussion of a particular bill, it is conceivable that some communications which are designed to influence legislation will not ~,, directly involve a particular bill. In any event, if the communication is for that purpose it meets the statutory test and should be reported. You ask several quest* concerning’how and whether a publication expense’ is required to be reported. You pose different situations in which a publications is distributed to public officials as wellas to private citizens. As in the case of all expenditures, costs of publication and advertising must be reported if they are for directly communicating with a public official for the purpose of influencing legislation. Direct communication is defined in section 2(5) as p. 2602 The Honorable William ‘I. “Bill” Moore, page 9 (H-583) “contact in person or by telephone, telegraph, or letter.” Thus, it is probable that an advertisement placed in a newspaper of general circulation would not constitute an expenditure for directly communicating with an official 50 long as no special action was taken to call the advertisement to the official’s attention. Whether a registrant should report the full or only a pro rata cost of adverti6ements or publications directed toward both private citizens and public officals depends on the facts of each case. Of course, report of the full cost would always be in compliance with the statute. An advertising .campaign designed solely to encourage private citizens to contact legislators is not required to be reported. Attorney General Opinion H-18(1973). You next ask several questions concerning the reporting of entertainment, travel, fees, gifts, loans, political contributions and other expenditures. You present several specific examples and ask if reporting is required in each instance. As indicated above, whether any particular expenditure is required to be reported depends on the facts surrounding that expenditure. If it is made for direct communication with a member of the legislative or executive branch for the purpose of influencing legislation then it must be reported. If, as a factual matter, the expenditure is not made for that purpose, ‘then it need not be reported. You finally ask if the requirement that “other expenditures” be reported is so vague as to cause the act to be unconstitutional. As we have indicated, the expenditure6 which must be reported are those incurred when a registrant directly communicates with members of the legislative or executive depart- ments for the purpose of influencing legislation. This standard io virtually identical to the one upheld against a similar contention in United States v. Harrisa, 347 U.S. 612 (1953). and given the holding of that case we believe there is no constitutional problem. See also Attorney General Opinion H-18 (1973). SUMMARY Expenditure6 required to be reported under article 6252-9~. V. T. C. S., are those which are made for directly communicating with a member of the legislative or executive branch for the purpose of influencing legislation. p. 2603 The Honorable William ‘I. “Bill” Moore, page 10 (H- 583) Persons who merely respond to a legisfator’s inquiries are not required to register unlces they do so as part of their usual course of employment. Members of the legislative, executive and judicial branches who contact legislators as part of their governmental duties are not required to register. Very truly yours, Attorney General of Texas APPROVED: DAVID M. KENDALL, First Assistant . C. ROBERT HEATH, Chairman Opinion Committee pm 2604