Section 1. Amend §5831(a)(5), Title 29, Delaware Code, by adding after the word “individual”, the phrase “required to register as a lobbyist under §5832 of this Title”, and further by deleting all language in that paragraph after the phrase “state agency”, and by substituting in lieu thereof a period “.”.

Section 2. Amend §5831(b), Title 29, Delaware Code, by striking the phrase “subparagraphs a. and b. of subsection” , and by substituting in lieu thereof , the word “subsection”, and further by deleting paragraphs (3), (4), and (5) of that subsection, and by redesignating the remaining paragraphs accordingly.

Section 3. Amend §5831, Title 29, Delaware Code, by adding a new subsection (c) and (d) to read as follows:

“(c) The following activities are exempt from regulation under this subtitle if the individual engages in no other acts during the reporting period that require registration:

(1) Professional services in drafting bills or in advising clients on the construction or effect of proposed or pending legislation;

(2) Appearances before the entire General Assembly, or any committee or subcommittee of the General Assembly, at the specific request of the body involved;

(3) Appearances before a legislative committee at the specific request of a regulated lobbyist, if the witness notifies the committee that the witness is testifying at the request of the regulated lobbyist:

a. appearances before an executive unit at the specific request of the executive unit involved; or

b. appearances before an executive unit at the specific request of a regulated lobbyist, if the witness notifies the executive unit that the witness is testifying at the request of the regulated lobbyist.

(4) An elementary, secondary, or postsecondary school student or student organization that communicates as part of a course or student activity is not subject to the registration requirements;

(5) Appearances as part of the official duties of an officer, director, member, or employee of an association engaged exclusively in representing counties or municipal corporations, to the extent that the appearance is not on behalf of any other entity;

(6) Actions of a member of the news media, to the extent the actions are in the ordinary course of gathering and disseminating news or making editorial comment to the general public;

(7) Actions as part of the official duties of a trustee, an administrator, or a faculty member of a nonprofit independent college or university in the state, provided the official duties of the individual do no consist primarily of attempting to influence legislative action or executive action;

(8) Subsection (a)(5) of this section does not apply to a bona fide salesperson or commercial selling agency employed or maintained by an employer for the purpose of soliciting or securing a procurement contract unless the person engages in acts during the reporting period that require registration under subsection (a)(5) of this section;

(9) If the person engages in no other acts during the reporting period that require registration, subsection (a)(4) of this section does not apply to:

a. a bona fide full-time official or employee of a business entity seeking to secure a business grant or loan; or

b. a person who seeks to secure a business grant or loan for the purpose of locating, relocating, or expanding a business in or into the state.

(d) (1) Except for providing the authorization required by §5833 of this subtitle and the reports required by §5835 of this subtitle, an entity that compensates one or more regulated lobbyists, and that reasonably believes that all expenditures requiring registration will be reported by the regulated lobbyist or lobbyists, is exempt from the registration and reporting requirements of this subtitle if the entity engages in no other act that requires registration;

(2) If a regulated lobbyist compensated by an entity that is exempt under paragraph (1) of this subsection fails to report the information required by this subtitle, the entity immediately shall become subject to the registration and reporting requirements of this subtitle.”

Section 4. Amend §5832(a), Title 29, Delaware Code, by striking the phrase “§5833 of this title”, and by substituting in lieu thereof, the phrase “subsection (a) of this section”, and further by deleting the phrase “§5831(a)(5) a. or b.”, and substituting in lieu thereof, the phrase “§5832(a)”, and further by deleting the phrase “in accordance with §5831(a)(5)c. of this title”, and further by redesignating subsections (a), (b), (c), and (d), as (b), (c), (d), and (e).

Section 5. Amend §5832, Title 29, Delaware Code, by inserting a new subsection (a), to read as follows:

“(a) A lobbyist shall register with the Public Integrity Commission pursuant to this part if it or he or she:

(1) receives or agrees to receive compensation or reimbursement for actual expenses, or both, in a combined amount of one thousand dollars or more in a calendar quarter for lobbying, whether that receipt of compensation or reimbursement or agreement to receive such compensation or reimbursement is solely for lobbying or the lobbying is incidental to that person's regular employment; or

(2) makes or incurs an obligation to make expenditures of one thousand dollars or more in a calendar quarter for lobbying.”

Section 6. Amend §5835, Title 29, Delaware Code, by deleting that section, and by substituting in lieu thereof, a new §5835, to read as follows:

“§5835. Reports by Lobbyists.

(a) Each client lobbyist registrant shall file with the Public Integrity Commission by the twentieth day of January, April, July and October a financial report, signed under penalty of false statement. If the client lobbyist registrant is not an individual, an authorized officer or agent of the client lobbyist registrant shall sign the form.

(b) An individual lobbyist shall file a separate report for each person from whom he received compensation or reimbursement.

(c) These reports shall contain total expenditures in connection with influencing executive action or legislative action in each of the following categories:

(1) total individual regulated lobbyist's compensation;

(2) office expenses of the regulated lobbyist;

(3) professional and technical research and assistance;

(4) publications and advertising that expressly encourage communication with one or more officials or employees;

(5) witnesses, including the name of each and the fees and expenses paid to each;

(6) meals and beverages for officials, employees, or members of the immediate families of officials or employees;

(7) entertainment, including the cost of maintaining a hospitality room;

(8) lodging expenses away from home;

(9) fair value of travel if the trip exceeds 100 miles;

(10) recreation expenses; and

(11) gifts.

(d) Notwithstanding any provision of this subsection to the contrary, a business organization to which one or more individual communicator lobbyist registrants belong may file a single report for each client lobbyist in lieu of any separate reports that individual registrants are required to file pursuant to this subsection.”

Section 7. Amend §5836, Title 29, Delaware Code, by deleting that section in its entirety, and by substituting in lieu thereof, a new §5836 to read as follows:

“§5836. Electronic filing of lobbyist registrations and activity reports with the Public Integrity Commission.

(a) Each registrant required to file any financial reports shall do so in electronic form using software created by the Public Integrity Commission for that purpose.

(b) On or before May 1, 2012, the Public Integrity Commission shall make all computerized data from financial reports required by this section available in a fully searchable, sortable, online database that the public can use to track lobbyist expenditures and activities.”

Section 8. Amend §5837, Title 29, Delaware Code, by deleting §5837 in its entirety, and by substituting in lieu thereof, the following:

“§5837. Retention of Records by Registered Lobbyists, and Random Audits by Public Integrity Commission.

(a) Each registrant shall obtain and preserve all accounts, bills, receipts and other documents necessary to substantiate the financial reports required by section for a period of three years from the date of the filing of the report referring to such financial matters.

(b) The Public Integrity Commission may require, on a random basis, any registrant to make all such documents substantiating financial reports concerning lobbying activities in the last three years. No registrant shall be subject to such requirement more than one time during any three consecutive years. The public integrity commission shall select registrants to be audited by lot in a ceremony which shall be open to the public. Nothing in this subsection shall require a registrant to make any documents concerning non-lobbying activities available to the Public Integrity Commission for inspection and copying.”

Section 9. Amend Chapter 58, Title 29, Delaware Code, by adding the following:

“§5838. Violations, Penalties, and Prohibited Activities.

(a) Any person who knowingly fails to register as a lobbyist as required by this subchapter shall be guilty of a misdemeanor.

(b) Any person who knowingly furnishes false information in any registration, authorization or report required by this subchapter shall be guilty of a misdemeanor.

(c) Any person who fails to file an authorization or report as required by this subchapter shall be deemed to have voluntarily cancelled registration as a lobbyist and shall be prohibited from reregistering or acting as a lobbyist until all delinquent authorizations and/or reports have been filed.

(d) The Commission may refer to the Commission Counsel for investigation and/or refer any suspected violation of this subchapter to the Attorney General for investigation and prosecution. The Speaker of the House, the presiding officer of the Senate, the Legislative Council or any member of the General Assembly shall refer, or any other person may refer, any suspected violation of this subchapter to the Commission and/or the Attorney General of the State.

(e) The Superior Court shall have exclusive jurisdiction over all offenses under this subchapter.

(f) Political committees. A lobbyist may not serve as a treasurer for a candidate’s political committee or a candidate’s political action committee if the candidate is seeking a statewide office or the office of senator or representative in the General Assembly.

(g) Fee restrictions. A lobbyist may not charge a fee or receive economic consideration based on a contract, either written or oral, that any part of the fee or economic consideration will be converted into a contribution to a candidate for public office or a political committee.

(h) Conflicts of interest.

(1) Except as permitted by paragraph (2) of this subsection, a registrant may not lobby on behalf of a principal on any subject matter in which the principal’s interests are directly adverse to the interests of another principal currently represented by the lobbyist or previously represented by the lobbyist during the current session of the general assembly or the lobbyist’s own interests.

(2) A lobbyist may represent a principal in circumstances described in paragraph (1) if:

a. The lobbyist reasonably believes that the lobbyist will be able to provide competent and diligent representation to each affected principal;

b. The lobbyist provides written notice to each affected principal upon becoming aware of the conflict; and

c. Each affected principal provides informed consent waiving the conflict of interest.

(3) If a lobbyist represents a principal in violation of this section or if multiple representation properly accepted becomes improper under this section and the conflict is not waived, the lobbyist shall promptly withdraw from one or more representations to the extent necessary for remaining representation to not be in violation of this section.

(4) If a lobbyist is prohibited by this section from engaging in particular conduct, an employer of the lobbyist or a partner or other person associated with the lobbyist may not engage in the particular conduct.

(5) The commission may receive complaints regarding violations of this subsection. If the commission determines a violation of this subsection has occurred, the commission, after investigation, notice and hearing:

a. shall impose an administrative penalty in an amount not to exceed $2,000; and

b. may prohibit a lobbyist from lobbying for economic consideration for up to five years.

(6) A lobbyist and principal shall maintain the records relating to the conflict of interest set forth in paragraph (2) for a four-year period beginning on the date the conflict is discovered and, in the case of an investigation conducted under paragraph (6), provide copies of the records to the commission upon request.

(d) Multiple principals--nothing in this section shall be construed to require a lobbyist representing multiple principals who each have an interest in the state budget process to comply with subsection (d)(2) unless a conflict of interest exists under subsection (d)(1)

(e) Contingent compensation.

(1) A person may not compensate or incur an obligation to compensate a person to engage in lobbying for compensation contingent in whole or in part upon any of the following:

a. occurrence, nonoccurrence or amendment of legislative action.

b. occurrence, nonoccurrence or amendment of an administrative action other than procurement described in paragraph (1)(iv) of the definition of ‘administrative action.’

(2) A person may not engage in or agree to engage in lobbying for compensation contingent in whole or in part upon any:

a. occurrence, nonoccurrence or amendment of legislative action.

b. occurrence, nonoccurrence or amendment of an administrative action other than procurement described in paragraph (1)(iv) of the definition of ‘administrative action’.

(3) This subsection shall not apply to vendors.

(f) Unlawful acts.

(1) A lobbyist or principal may not:

a. Instigate the introduction of legislation for the purpose of obtaining employment to lobby in opposition to that legislation.

b. Knowingly counsel a person to violate this chapter or any other federal or state statute.

c. Engage in or counsel a person to engage in fraudulent conduct.

d. Attempt to influence a state official or employee on legislative or

administrative action by making or facilitating the making of a loan to the state official or employee.

e. While engaging in lobbying on behalf of the principal, refuse to disclose to a state official or employee, upon request, the identity of the principal.

f. Commit a criminal offense arising from lobbying.

g. Influence or attempt to influence, by coercion, bribery or threat of

economic sanction, a state official or employee in the discharge of the duties of office.

h. Extort or otherwise unlawfully retaliate against a state official or

employee by reason of the state official’s or employee’s position with respect to or vote on administrative or legislative action.

(g) The commission may receive complaints regarding violations of this section. If the commission determines a

violation of this subsection has occurred, the commission, after investigation, notice and hearing:

(1) shall impose an administrative penalty in an amount not to exceed $2,000; and

(2) may prohibit a lobbyist from lobbying for economic consideration for up to five years.

(h) The commission may, as it deems appropriate, refer an alleged violation of this subsection to the Attorney General for investigation and prosecution.”

SPONSOR:	Sen. Katz & Rep. Hudson
	Sens. Bunting, Peterson & Sokola