Shorts on Long Term Care Newsletter -

for the North Carolina LTC Community from Poyner & Spruill LLP

January 2007


Don’t Tell Mama, But Now I’m A Lobbyist!

By Steve Shaber and Tom West

A Raleigh lawyer wears a t-shirt sporting these words: “Don’t tell Mama I’m a lobbyist. She thinks I play piano in a cat house!” Hundreds, even thousands, of North Carolina business owners and their employees, who never saw themselves as lobbyists, will be entitled to wear this shirt starting January 1, 2007, when The State Government Ethics Act of 2006 (House Bill 1843) takes effect. On that day, they will be lobbyists and have to register as lobbyists, if they continue to do business as usual with state executives. Here are the bare bones of this new law.

  • It is a criminal as well as civil statute.

  • It applies to contacts with (i) many people at the Legislature and (ii) many people in the Executive Branch.

  • The Executive Branch officers and employees covered by the law include, among others:

  1. The Governor and all the employees of the Governor’s Office.

  2. The Lieutenant Governor and at least some of the employees in that office.

  3. The heads of all the principal state departments and their chief deputies, administrative assistants, and confidential secretaries.

  4. All exempt state employees and their confidential secretaries.

  5. All state employees designated by the Governor.

  6. Voting members of state boards. There will be a list of these covered persons.

  • Lobbying is any attempt to influence “legislative action” or “executive action” (i) by direct communication with people covered by the law or (ii) by developing “good will” with these people. Lobbying also covers contacts with the families of covered persons.

  • “Legislative action” is action with respect to bills, reports, nominations, appointments and other such legislative matters.

  • “Executive action” is action with respect to executive policy, rules, procedures, requests for proposals, and similar executive matters.

  • A “lobbyist” is anyone who gets paid to lobby. It is also someone who generally gets paid for other purposes but spends 5% of his or her “actual duties” in any thirty-day period performing lobbying activities.

  • Lobbyists and their principals must register, file reports, and avoid forbidden behavior, whether they lobby the Legislature, the Executive or both.

  • There is a State Ethics Commission to help administer this new law.

This law’s boundaries and pitfalls will become more obvious in time. Clearly, it makes an attempt to separate the executive’s administrative functions from its policy-making functions. Many of the routine conversations and letters that business owners and employees are accustomed to having with regulators will still be routine and outside this law. However, starting January 1, many calls, conversations, e-mail and letters that used to be business-as-usual will become government-regulated executive lobbying. People involved in those activities will have to register as lobbyists.

Steve Shaber & Tom West, partners in Poyner & Spruill’s Raleigh office, helped narrow the scope of H.B. 1843’s restrictions on contacts with state executive agencies. Steve can be reached at 919.783.2906 or sshaber@poyners.com. Tom can be reached at 919.783.2897 or twest@poyners.com.

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