LOBBYINGIN

NEW JERSEY

What is Lobbying in New Jersey?

Lobbying occurs when there is an attempt to influence:

Legislation Regulations Governmental Processes

by communicating with or providing a benefit to a high level State official

What is Lobbying in New Jersey?

“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 of legislation

What is Lobbying in New Jersey?

“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 of a regulation

What is Lobbying in New Jersey?

“Influence a Governmental Process” means to make any attempt, whether successful or not, to:

Assist a represented entity or group in making communications or securing information regarding a governmental process

What is a Governmental Process?

Promulgation of executive orders

Rate setting

Development, negotiation, award, modification or cancellation of public contracts

Issuance, denial, modification, renewal, revocation or suspension of permits, licenses or waivers

Procedures for bidding

Imposition or modification of fines and penalties

Procedures for purchasing

Rendition of administrative determinations

Award, denial, modification, renewal or termination of financial assistance, grants and loans

Governmental Processes include:

What Activities are not Considered Lobbying?The provisions of the lobbying law do not apply

to the following activities:

Publication of a news item or editorial in the ordinary course of business

Acts of a government employee in carrying out his or her official duties

Acts of a bona fide religious group acting for the purpose of protecting the public’s right to practice religion

Acts of a political party

What Activities are not Considered Lobbying?The provisions of the lobbying law do not apply

to the following activities:

Acts of a person testifying on legislation or regulations who is uncompensated and makes no other communication related to this testimony

Communicating on a routine, ministerial matter

Communicating with or providing a benefit to a high level State official if it constitutes a “personal expression,” i.e. paid with the individual’s own funds, not reimbursed in any way, and not incident to their employment

What Activities are not Considered Lobbying?Participation in a task force, advisory board, or

working group that is:

Specifically established pursuant to statute or

Established by the head of a principal department in State government who has statutory authority to convene the group and

The participant has been nominated or invited to participate; and,

The participant receives no separate compensation for his or her service

What Activities are not Considered Lobbying?For governmental process lobbying, these

activities do not constitute lobbying:

Attorney-Client Privilege

Collective Negotiations

Any communications by an attorney representing a client in routine litigation or administrative proceeding with the State, or in the course of a quasi-judicial civil or administrative proceeding with the State

Who is Considered to be a Governmental Affairs Agent?A Governmental Affairs Agents is defined as a

person who:

Is compensated to influence legislation, regulations, or governmental processes by;

Communicating with a high level State official , for more than 20 hours in a calendar year or;

Providing a benefit to a high level State official

Please note: The preparation and travel time of an Agent is reportable as lobbying activity and is part of the calculation in determining when 20 hours has been reached

Breaking Down the Definition of a Governmental Affairs Agent“Compensation”

Money, other things of value or any benefit passed

Including the reimbursement of expenses in excess of $100 in a three-month period

Uncompensated lobbying services are generally not reportable unless there is an “intangible” financial benefit gained by the Agent

Intangible financial benefit in the form of a promise of future employment (AO No. 4-1992)

Defining “Communicating with” a State Official“Communicating with” means:

Any communications, oral or in writing

“Communicating” does not, in general, include a communication on a routine, ministerial matter

Communications Exempt from the Lobbying LawCertain routine matters are exempt, such as:

Scheduling a meeting

Requesting the status of an administrative matter

Requesting forms or procedures

Applying for a permit or license as required by law

Communications Exempt from the Lobbying LawCertain business matters are exempt, such

as:

Providing advice or performing services pursuant to an existing contract

Requesting information concerning compliance with existing regulations

Participating in an inspection required by law

Limited sales communications

Inquiries about the delivery of services or materials pursuant to an existing contract

Communications Exempt from the Lobbying LawCertain requests are exempt, such as:

Responding to a detailed request for information

Responding to a subpoena

Responding to a public emergency or condition involving public health or safety

Responding to a request for proposal or participation at a bid conference after bid specifications have been established

Responding to an audit

Defining “Providing a Benefit to” a State Official“Providing a benefit to” means:

To make any expenditure

for entertainment, food and beverage, travel and lodging, honoraria, gifts, loans, or other things of value

to a high level State official covered by the Act

Who is a “High Level State Official”?

The definition of “High Level Official” includes, but is not limited to:

Governor & Lieutenant Governor

Governor & Lieutenant Governor’s staff

Legislature and Legislative staff

High Level Executive Branch officials as set forth in N.J.A.C. 19:25-20.2.

Who is a “High Level State Official”? Please note that all committees and commissions

established by the Legislature, or by either House, are included as part of the Legislature

Similarly, all authorities, boards, commissions, or other agencies or instrumentalities in or of a principal department of the Executive Branch of State government are included as part of the Executive Branch

Communications made to lower level State officials are considered to be routine and ministerial, and thus will not be considered lobbying communications

Routine and ministerial communications are those not seeking preferential treatment or the alteration of a decision. Where no discretion is being exercised, no lobbying has occurred

What Forms Need to be Filed?Assuming you meet the definition of a

Governmental Affairs Agent, let’s briefly review the forms that must be filed:

Notice of Representation (Form NR)

Quarterly Report (Form Q-4)

Notice of Termination (Form NT)

Annual Report

Notice of Representation (Form NR) Filed prior to making any communications with, or providing a

benefit to a high level state official, or within 30 days of being employed, retained or engaged as a Governmental Affairs Agent, whichever is earlier

If a Governmental Affairs Agent intends to represent more than one Represented Entity, a separate Form NR must be filed for each

When submitting the initial Form NR, the Agent must include either a check for $425 to cover the annual fee, or the Form ST-5 if the Agent represents a non-profit. In addition to the fee, the Agent must also submit two 2”x2” passport sized photos for the identification badge. If submitting a check, it should be payable to the “State of New Jersey, Election Law Enforcement Commission

Notice of Representation (Form NR) Any Agent or Represented Entity not a resident of the state of

New Jersey, or not a corporation of the State of New Jersey or authorized to do business in New Jersey, must file a Consent to Service of Process (Form L-3) along with their initial Notice of Representation

After filing the Form NR, an Agent must notify the Commission within 15 days of any changes in the information on the form or not later than the filing date of the next quarterly report, whichever comes first. Changes in information include, but are not limited to, changes in the Agent’s business name, address or phone number

Once an Agent is registered, they are required to renew their status on or before November 15th of each year by submitting the annual fee and a new set of photographs

Quarterly Report (Form Q-4) All Agents must file a quarterly report of their lobbying

activity with the Commission

The quarterly report (Form Q-4) is due on the 10th of April, July, October and January of each year

The April report covers activity from January 1 to March 31; the July report covers activity from April 1 to June 30; the October report covers activity from July 1 to September 30; and the January report covers activity from October 1 to December 31

Quarterly Report (Form Q-4)

Reporting of Legislation or Regulation:

For reporting of legislation, the Commission provides on its website, “Listing of Subject Headings.” Report the subject heading that best represents the subject area of lobbying

For reporting of regulations, use the categories listed in the New Jersey Register which are provided on the Commission’s website, “Listing of Subject Headings”

Provide the Senate or Assembly bill number or proposed rule number. If you are lobbying on a matter that has not been introduced as a bill or proposed as a regulation, list “none”

Quarterly Report (Form Q-4)

Reporting of Legislation or Regulation:

Indicate next to the bill number or proposed rule number if the legislation or regulation was promoted or opposed

Provide the bill’s primary sponsor or the rule’s agency. “Agency” includes a State agency, or authority, board or commission or other agency or instrumentality in or of a principal department of the Executive Branch of State Government

Describe the bill in general. Regarding the appropriation bill or any supplemental appropriation bill, report the particular items within the appropriation bill lobbied on. For a regulation, provide the New Jersey Register title of the rule

Quarterly Report (Form Q-4)

Reporting of Governmental Processes:

List the type of governmental process

Provide, if applicable, the identifier of the governmental process. This could consist of an executive order number, contract number or similar identifier. Enter “none” if no identifier exists

Indicate if the governmental process was promoted or opposed

Describe the governmental process. Provide as much detail as possible. Note that lobbying on a trade secret does not need to be reported in detail. Simply report that activity regarding a trade secret occurred during the quarter

Quarterly Report (Form Q-4)

Reporting of Governmental Processes:

Enter the name of the agency associated with the governmental process. “Agency” includes a State agency, or any authority, board, commission, or other agency or instrumentality in or of a principal department of the Executive Branch of State Government

Provide the full name of the represented entity whose interest you lobbied

Notice of Termination (Form NT)

Must be filed within 30 days of ceasing activities as a Governmental Affairs Agent. Form NT is used to either terminate all of your activities as an Agent, in which case you must surrender your badge, or it is used to terminate your representation of a particular Represented Entity

Any person who has engaged the services of the Governmental Affairs Agent may file and sign the Notice of Termination on behalf of the terminated Agent

You must also file Form NT when you change employment and you cease to be an Agent for a particular employer and you then become an Agent for a new employer. If your registration fee has been paid for the year, the Commission will issue you a new badge with a new number. No additional fee is charged during that year for the change in employer

Annual Report

Who has to file an Annual Report? A Governmental Affairs Agent or Represented Entity who

or which receives receipts or makes expenditures of more than $2,500 for the purpose of communicating with, or providing a benefit to, a high level State official for the purpose of influencing legislation, regulations, governmental processes, or for communicating with the general public

The annual report is also filed by a person, other than a Governmental Affairs Agent, who receives receipts, or makes expenditures over $2,500 for the purposes of communicating with the general public (“grassroots lobbying”)

What is “Communication with the General Public”? A communication directed to the public rather than to a legislator,

regulator or Executive Branch official

Subject only to annual financial reporting

Accordingly, a Represented Entity or Governmental Affairs Agent that engages in communication with the general public must include these costs on their annual report

If communicating with the general public is the only type of lobbying engaged in by a group or individual, no Notice of Representation, Notice of Termination, or Quarterly Report is required

The only form filed by individuals or groups engaging in communicating with the general public exclusively is the L1-G; filed if over $2500 has been raised or spent for communicating with the general public

What Types of Financial Activity are Reported Annually?

Benefit passing over $25 a day or $200 per year to high level State officials*

General communication costs of lobbying

*Prior to passing a benefit, have the recipient check with their ethics liaison to determine whether or not they can accept the benefit

What Constitutes Benefit Passing?

Benefit passing covers:

*There is a record keeping exemption for passing a benefit of $5 or less

Food and beverage

Entertainment

Travel and lodging

Honoraria

Loans

Gifts or other things of value

Providing a Benefit to a High Level State OfficialWhat actions are not considered to be

benefit passing?

Providing a benefit to a high level State official if it constitutes a “personal expression”

Food and beverage provided to a State official when they are an invited speaker to an event and they receive the same food and beverage provided to the other attendees

Providing a Benefit to a High Level State OfficialNotice of Lobbying Benefit:

Agents are required to provide a “written benefit notice” to all public officials that have received a benefit no later than February 1st

This written notice must be given prior to the annual report being filed

What Communication Costs are Reported Annually?Communication costs cover:

Salaries of Agents and their support personnel

Travel and lodging cost for Agents

Printed materials, postage, telephone, fax, receptions, direct mail pieces, newspaper ads, TV/radio broadcasts, and the Internet

Assessments, membership fees and dues paid by the reporting entity

When is the Annual Report Filed?

February 15th of each year. The report will cover activity that took place during the prior calendar year

Lobbying activity must be reported for the calendar year in which it was performed regardless of when it was billed

Record Keeping

A Governmental Affairs Agent, Represented Entity, and persons or groups engaging in communication with the general public must make or obtain records and documents supporting the information filed on their reports for a period of three years

Items that must be maintained include but are not limited to checks, bank statements, contracts and receipts

A record or document of any single expenditure of $5 or less may be excluded from the requirement

Filing, Training and Other Information

Filing Timely and Accurately: In order for a report to be filed “on time,” the

report must be received by the Commission by 5:00pm on the filing date

Postmarks are not relevant to the consideration of the date the report is filed

If the reporting date falls on a weekend or a holiday, the next business day would become the filing date

Filing, Training and Other Information

Filing Timely and Accurately: The original report must be filed with the Commission and the filer

should keep a copy for their records

The annual forms must be filed electronically. All other lobbying forms are Adobe fill-able and save-able

All lobbying forms can be found on our website at www.elec.state.nj.us.

When using the U.S. Postal Service (regular mail) to deliver reports send them to: New Jersey Election Law Enforcement Commission, PO Box 185, Trenton, NJ 08625-0185

For a commercial delivery (FedEx, UPS, etc) or walk-in, use: New Jersey Election Law Enforcement Commission, 28 West State Street, 13th Floor, Trenton, NJ 08608

Filing, Training and Other Information

Training and Other Information: The Commission offers seminars for assistance in

filing the quarterly and annual reports. For more information about the dates and times, please contact the Compliance Staff of the Commission any business day from 9:00am to 5:00pm at (609) 292-8700 or toll free within New Jersey at 1 (888) 313-ELEC.

Also contact the Compliance Staff or visit our website if you have any questions regarding this PowerPoint or about the requirements of the Lobbying Act.