Bill > AB40

Introduced Session

Legislative Counsel's Digest: During the 2015 Legislative Session, the Legislature enacted Senate Bill No. 1 307 (S.B. 307), which amended the Nevada Lobbying Disclosure Act (hereafter the 2 Legislative Branch Lobbying Act) to prohibit lobbyists from giving gifts to 3 members of the Legislative Branch and their immediate families. (Chapter 320, 4 Statutes of Nevada 2015, p. 1711 (amending chapter 218H of NRS)) For the 5 purposes of the Legislative Branch Lobbying Act, the term member of the 6 Legislative Branch means any Legislator, any member of the Legislator s staff or 7 any assistant, employee or other person employed with reference to the legislative 8 duties of the Legislator. (NRS 218H.090) Under the gift prohibitions, lobbyists are 9 prohibited from giving gifts to members of the Legislative Branch and their 10 immediate families, whether or not the Legislature is in a regular or special session. 11 (NRS 218H.930) However, there are specific exceptions to the gift prohibitions, 12 which include: (1) political contributions of money or services; (2) commercially 13 reasonable loans made in the ordinary course of business; (3) anything of value 14 provided for educational or informational meetings, events or trips; (4) the cost of 15 parties, meals, functions or other social events to which every Legislator is invited; 16 (5) ceremonial gifts received from donors who are not lobbyists; and (6) gifts from 17 certain relatives and household members. (NRS 218H.045, 218H.060) Violations of 18 the gift prohibitions are punishable as misdemeanors. (NRS 218H.960) The 19 Attorney General also may bring civil actions in the district court to enjoin such 20 violations. (NRS 218H.540) 21 In addition to amending the Legislative Branch Lobbying Act, S.B. 307 also 22 amended existing law, commonly known as the Financial Disclosure Act, which 23 requires certain public officers and candidates to report particular gifts and other 24 information on financial disclosure statements filed with the Office of the Secretary 25 of State. (Chapter 320, Statutes of Nevada 2015, p. 1711 (amending NRS 281.556-26 281.581)) The amendments made by S.B. 307 provided consistent definitions for 27 certain terms used in both the Legislative Branch Lobbying Act and the Financial 28 Disclosure Act, including the terms gift and educational or informational 29 meeting, event or trip. (NRS 218H.045, 218H.060, 281.5583, 281.5585) 30 Given that S.B. 307 added similar provisions to both the Legislative Branch 31 Lobbying Act and the Financial Disclosure Act, it is presumed that the Legislature 32 intended for those provisions to be interpreted and applied in a consistent and 33 uniform manner. (Savage v. Pierson, 123 Nev. 86, 94-96 (2007)) To assist in 34 carrying out that legislative intent, the Legislative Counsel Bureau (LCB), as one of 35 the agencies charged with administering the provisions enacted by S.B. 307, has 36 prepared an instructive LCB Guide for the Legislative Branch that provides agency 37 interpretations and explanations to inform and guide members of the Legislative 38 Branch in complying with the Legislative Branch Lobbying Act and the Financial 39 Disclosure Act. (Guide for the Legislative Branch of Nevada State Government 40 Lobbying and Financial Disclosure: Gifts, Educational and Informational 41 Meetings, Events and Trips and Related Matters, Nev. LCB Legal Div. (Jan. 11, 42 2017)) Even though the LCB Guide was prepared primarily for members of the 43 Legislative Branch, the Office of the Secretary of State, which is the agency 44 charged with administering the Financial Disclosure Act, has posted a hyperlink to 45 the LCB Guide on its official website to provide helpful guidance to public officers, 46 stating that much of the information contained in the LCB Guide is applicable to all 47 public officers who are required to file financial disclosure statements under the 48 Financial Disclosure Act. (Available at the Internet address: 49 https://www.nvsos.gov/sos/elections/candidate-information/campaign-finance-50 reporting-requirements/financial-disclosure-statements) 51 Sections 2-18of this bill enact gift prohibitions which are similar to the gift 52 prohibitions in the Legislative Branch Lobbying Act and which prohibit lobbyists 53 from giving gifts to public officers in the Executive Branch, local public officers 54 and their immediate families, unless one of the specific exceptions is applicable. In 55 addition, sections 19-45of this bill revise the Legislative Branch Lobbying Act and 56 the Financial Disclosure Act to ensure consistency and uniformity in the 57 interpretation and application of the similar provisions in each of the acts. 58 Section 2of this bill provides that the gift prohibitions are part of the Nevada 59 Executive Branch and Local Government Lobbying Regulation Act (hereafter the 60 Executive Branch and Local Government Lobbying Act). Sections 5-13of this bill 61 enact definitions that are modeled on similar definitions in the Legislative Branch 62 Lobbying Act, including definitions for lobbyist, gift and educational or 63 informational meeting, event or trip. Section 14 of this bill defines the term 64 public officer but excludes from that definition: (1) any member of the 65 Legislative Branch who is subject to the Legislative Branch Lobbying Act; and (2) 66 any member of the Judicial Branch who is subject to the Nevada Code of Judicial 67 Conduct. 68 Section 15of this bill provides that the Secretary of State must administer, 69 adopt regulations, provide interpretations and take any other action necessary to 70 carry out the gift prohibitions. Section 15also provides that the Secretary of State 71 must confer and coordinate with the Director of the Legislative Counsel Bureau to 72 promote consistency and uniformity in the interpretation and application of the 73 Executive Branch and Local Government Lobbying Act, the Legislative Branch 74 Lobbying Act and the Financial Disclosure Act. 75 Section 16of this bill provides that a lobbyist shall not knowingly or willfully 76 give any gifts to public officers in the Executive Branch, local public officers and 77 their immediate families or otherwise directly or indirectly arrange, facilitate or 78 serve as a conduit for such a gift. Section 16also provides that public officers in 79 the Executive Branch, local public officers and their immediate families shall not 80 knowingly or willfully solicit or accept any gifts from a lobbyist. However, in 81 sections 8and 9of this bill, there are specific exceptions to the gift prohibitions set 82 forth in the definitions of the terms gift and educational or informational 83 meeting, event or trip. Those exceptions include: (1) political contributions of 84 money or services; (2) commercially reasonable loans made in the ordinary course 85 of business; (3) anything of value provided for educational or informational 86 meetings, events or trips; (4) the cost of parties, meals, functions or other social 87 events to which every member of a public body is invited or which is open to the 88 general public for free; (5) ceremonial gifts received from donors who are not 89 lobbyists; and (6) gifts from certain relatives and household members. 90 Section 16of this bill makes violations of the gift prohibitions punishable as 91 misdemeanors. Section 17of this bill provides that in addition to any other 92 remedies or penalties, the Attorney General may bring civil actions in the district 93 court to enforce the gift prohibitions. In such a civil action, the district court may 94 issue declaratory judgments, injunctions and other appropriate orders to enforce the 95 gift prohibitions and also impose civil penalties not to exceed $1,000 for each 96 violation of the gift prohibitions. 97 Sections 19-45of this bill make conforming changes to the Legislative Branch 98 Lobbying Act and the Financial Disclosure Act. Sections 46and 47of this bill 99 make the provisions of the bill effective on January 1, 2020, and provide that the 100 provisions do not apply to: (1) any act or conduct that occurs before that date; or (2) 101 any financial disclosure statement that is filed to report information for any period 102 that ends before that date. 103 SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Title 23 of NRS is hereby amended by adding 1 thereto a new chapter to consist of the provisions set forth as 2 sections 2to 18, inclusive, of this act. 3 Sec. 2. This chapter may be cited as the Nevada Executive 4 Branch and Local Government Lobbying Regulation Act. 5 Sec. 3. The Legislature finds and declares that: 6 1. The operation of responsible representative government 7 requires that the fullest opportunity be afforded to the people to 8 petition or lobby their government for the redress of grievances 9 and to exchange information and express their opinions freely to 10 public officers on matters relating to legislative, administrative or 11 political action. 12 2. Lobbying activities that involve unregulated gift-giving by 1 lobbyists to public officers or members of their immediate families 2 create the appearance of impropriety and are inconsistent with 3 and undermine the people s faith, trust and confidence in the 4 honesty, integrity and fidelity of their representative government. 5 3. The public purpose of the provisions regulating gift-giving 6 by lobbyists set forth in this chapter is to guard against the 7 appearance of impropriety and the potential for undue influence 8 and favoritism that may arise from such gift-giving and thereby 9 promote and foster the people s faith, trust and confidence in the 10 honesty, integrity and fidelity of their representative government. 11 4. To further this public purpose, the provisions regulating 12 gift-giving by lobbyists set forth in this chapter must be liberally 13 construed and broadly interpreted to achieve their intended public 14 benefits, and if there is any uncertainty or doubt regarding the 15 interpretation or application of those provisions, that uncertainty 16 or doubt must be resolved in favor of this public purpose. 17 Sec. 4. As used in this chapter, unless the context otherwise 18 requires, the words and terms defined in sections 5 to 14, 19 inclusive, of this act have the meanings ascribed to them in those 20 sections. 21 Sec. 5. 1. Client means a person who employs, retains, 22 contracts for or otherwise uses or engages the services of a 23 lobbyist to represent the interests of the person to one or more 24 public officers, whether or not any compensation is paid for the 25 services. 26 2. The term includes, without limitation, a client that is a 27 government, governmental agency or political subdivision of a 28 government. 29 Sec. 6. Domestic partner means a person in a domestic 30 partnership. 31 Sec. 7. Domestic partnership means a domestic 32 partnership as defined in NRS 122A.040. 33 Sec. 8. 1. Educational or informational meeting, event or 34 trip means any meeting, event or trip undertaken or attended by a 35 public officer if, in connection with the meeting, event or trip: 36 (a) The public officer or a member of the public officer s 37 household receives anything of value from a lobbyist to undertake 38 or attend the meeting, event or trip; and 39 (b) The public officer provides or receives any education or 40 information on matters relating to the legislative, administrative or 41 political action of the public officer. 42 2. The term includes, without limitation, any reception, 43 gathering, conference, convention, discussion, forum, roundtable, 44 seminar, symposium, speaking engagement or other similar 45 meeting, event or trip with an educational or informational 1 component. 2 3. The term does not include a meeting, event or trip 3 undertaken or attended by a public officer for personal reasons or 4 for reasons relating to any professional or occupational license 5 held by the public officer, unless the public officer participates as 6 one of the primary speakers, instructors or presenters at the 7 meeting, event or trip. 8 4. For the purposes of this section, anything of value 9 includes, without limitation, any actual expenses for food, 10 beverages, registration fees, travel or lodging provided or given to 11 or paid for the benefit of the public officer or a member of the 12 public officer s household or reimbursement for any such actual 13 expenses paid by the public officer or a member of the public 14 officer s household, if the expenses are incurred on a day during 15 which the public officer or a member of the public officer s 16 household undertakes or attends the meeting, event or trip or 17 during which the public officer or a member of the public officer s 18 household travels to or from the meeting, event or trip. 19 Sec. 9. 1. Gift means any payment, conveyance, transfer, 20 distribution, deposit, advance, loan, forbearance, subscription, 21 pledge or rendering of money, services or anything else of value, 22 unless consideration of equal or greater value is received. 23 2. The term does not include: 24 (a) Any political contribution of money or services related to a 25 political campaign. 26 (b) Any commercially reasonable loan made in the ordinary 27 course of business. 28 (c) Anything of value provided for an educational or 29 informational meeting, event or trip. 30 (d) The cost of a party, meal, function or other social event to 31 which every member of a public body is invited or which is open to 32 the general public for free, including, without limitation, the cost 33 of food or beverages provided at the party, meal, function or other 34 social event. 35 (e) Any ceremonial gifts received for a birthday, wedding, 36 anniversary, holiday or other ceremonial occasion from a donor 37 who is not a lobbyist. 38 (f) Anything of value received from a person who is: 39 (1) Related to the recipient, or to the spouse or domestic 40 partner of the recipient, by blood, adoption, marriage or domestic 41 partnership within the third degree of consanguinity or affinity; or 42 (2) A member of the recipient s household. 43 Sec. 10. 1. Immediate family, with regard to a specific 1 person, means: 2 (a) The spouse or domestic partner of the person; 3 (b) A relative who lives in the same home or dwelling as the 4 person; or 5 (c) A relative who does not live in the same home or dwelling 6 as the person but who is dependent on and receiving substantial 7 support from the person. 8 2. For the purposes of this section, relative means someone 9 who is related to the person, or to the spouse or domestic partner 10 of the person, by blood, adoption, marriage or domestic 11 partnership within the third degree of consanguinity or affinity. 12

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(Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed.) (on 04/13/2019)

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