N.Y. Comp. Codes R. & Regs. tit. 19 § 943.5

Current through Register Vol. 46, No. 16, April 17, 2024

Section 943.5 - Lobbying Activities - General Provisions and Restrictions

(a) General Provisions

(1) All Lobbying Activities are either Direct or Grassroots Lobbying.

(2) All Lobbying Activity is conducted by a Lobbyist for the benefit of a Beneficial Client, but a Lobbyist and Beneficial Client can be the same person or organization.

(3) All Lobbying Activity is conducted by a Lobbyist that has been retained, employed, or designated by a Client. This includes the person or Lobbying Organization that designates themselves to lobby on their own behalf.

(4) Reporting requirements under the Lobbying Act are not necessarily triggered by engaging in Lobbying Activity alone, but rather when the criteria established in subsection 943.9(a)(1) have been satisfied.

(b) Online Ethics Training for Lobbyists and Clients

(1) All Lobbyists (Principal Lobbyists and Individual Lobbyists) and all Clients (Contractual Clients and Beneficial Clients) listed on a Statement of Registration commencing with the biennial period 2023-2024 and thereafter, must complete the online ethics training for Lobbyists and Clients, as provided by the Commission.

(i) For organizations that engage in lobbying activity as either a Lobbyist or Client, the organization's Chief Administrative Officer is responsible for completing the training on behalf of the organization.

(2) Such training must be completed once every three years, as follows:

(i) Complete the training within 60 days of the submission of the initial Statement of Registration commencing with the 2023-2024 biennial period;

(ii) Complete the training again within three years of the date the Lobbyist or Client first or subsequently completed the training, if such Lobbyist or Client is still listed on an active Statement of Registration at such time; and/or

(iii) If there is a lapse in a Lobbyist or Client being listed on an active Statement of Registration, such Lobbyist or Client must complete the training again within 60 days of either being listed on a Statement of Registration or three years from the date such Lobbyist or Client last completed such training, whichever is later.

(iv) The 60-day period for completing training will be measured from the earliest submission date listing a Lobbyist or Client on a Statement of Registration, commencing with the 2023-2024 biennial period and thereafter.

(3) Lobbyists and Clients (including the Chief Administrative Officers of organizations engaged in lobbying activity as a Lobbyist or Client, as applicable) must enter training compliance information into the Commission's online lobbying application, as directed by the Commission.

(c) Restrictions

(1) All individuals or entities required to be listed on a Statement of Registration are subject to the Gift restrictions set forth in Part 934 of this Title.

(i) This prohibition applies to both the Contractual Client and Beneficial Client.

(2) Pursuant to section 1-k of the Lobbying Act prohibiting contingent retainers, no Client may pay and no Lobbyist may receive Compensation in which the amount or rate is contingent on the outcome or terms of any Attempt to Influence an activity listed in sections 1-c(c)(i)-(x) of the Lobbying Act.

(i) This prohibition applies to both the Contractual Client and Beneficial Client.

(3) Stock or equity payments for Lobbying Activity are presumed impermissible when paid to Retained Lobbyists, and, absent a showing in (i), below, are per se a violation of the contingent retainer prohibition in Section 1-k of the Lobbying Act.

(i) Except as provided in (ii), below, this presumption can be overcome by a showing that the value of stock or equity is not directly dependent on the outcome of the governmental action.

(ii) The presumption cannot be overcome if:

(a) the number of shares or the size of the equity interest offered depends on the outcome of the lobbying; or

(b) any aspect of the retained lobbyist's shareholder rights- including seniority, conversion and other options- depend on the outcome of the lobbying.

(iii) Application to the Commission is required to approve any such stock or equity payments for Lobbying Activity. The Commission shall respond to an application within 30 days or soon thereafter and, in rendering a decision, consider factors including:

(a) The diversity of product or business lines in the Beneficial Client's operations and the relative size or importance- to the Beneficial Client- of the product or business that will be impacted by the governmental action;

(b) The specific governmental action in Lobbying Act section 1-c(c) that the Lobbyist is attempting to influence;

(c) If the Lobbying Activity includes any attempt to influence a state or municipal Governmental Procurement:

(1) the value of the procurement relative to the total capitalization of the Beneficial Client;

(2) any history of being awarded similar procurements.

(d) Whether stock is publicly traded or closely held;

(e) Whether the Lobbying Activity addresses a Lobbying firm's entry or continued access to a geographic, demographic or product market;

(f) The impact of the governmental action on the Beneficial Client versus on similarly-situated competitors;

(g) Any significant trading activity or changes in price, appraisal, or valuation over the preceding 12 months; and

(h) Other such factors as determined by the Commission.

(4) Stock or equity compensation to Employee or Designated Lobbyists is permissible, unless the number of shares, relative size of the equity interest offered, or any aspect of the lobbyist's shareholder rights - including seniority, conversion and other options - depend on the outcome of the lobbying.

N.Y. Comp. Codes R. & Regs. Tit. 19 § 943.5

Adopted New York State Register May 9, 2018/Volume XL, Issue 19, eff. 1/1/2019

Amended New York State Register February 10, 2021/Volume XLIII, Issue 06, eff. 2/10/2021

Amended New York State Register April 12, 2023/Volume XLV, Issue 15, eff. 4/12/2023