Form 635 Instructions for Report of Lobbyist Employer and Report of Lobbying Coalition

Lobbyist Employers: A person, other than a lobbying firm, who employs a lobbyist or contracts with a lobbying firm for economic consideration for the purpose of influencing legislative or administrative action is a “Lobbyist Employer.” The Form 635 must be filed by lobbyist employers for each calendar quarter, regardless of whether the employer has made or incurred any payments during the quarter. In addition, a lobbyist employer must attach to its quarterly report a “Lobbyist Report” (Form 615) completed by each in-house employee who is a lobbyist. NOTE: State and local governmental agencies which are lobbyist employers must also complete Attachment 640.

Lobbying Coalitions: A group of 10 or more individuals or entities which pool their funds for the purpose of sharing the expenses of employing a lobbyist or contracting for the services of a lobbying firm is a “Lobbying Coalition.” The Form 635 must be filed by lobbying coalitions for each calendar quarter, regardless of whether the coalition has made or incurred any payments during the quarter. Lobbying coalitions must attach to the Form 635 the following: 1) A Form 635-C (Payments Received By Lobbying Coalitions) disclosing payments received from members of the coalition; 2) A Form 615 (Lobbyist Report) completed by each in-house employee who is a lobbyist; NOTE: State and local governmental agencies which are lobbying coalitions must also complete Attachment 640.

An individual or entity which only makes payments to a lobbying coalition is not required to file this Form. However, an individual or entity which makes payments to a lobbying coalition may be required to file reports as a "Person Who Spends $5,000 or More to Influence Legislative or Administrative Action" (Form 645).

Where to File

An original and one copy of the Form 635 must be filed with the Secretary of State.

Secretary of State
Political Reform Division
1500 11th Street
P. O. Box 1467
Sacramento, CA 95812-1467

The periods covered and the filing deadlines for reports are as follows:

PERIOD COVERED

If a report is sent by first class mail, it is considered received on the date of postmark. Filing deadlines which fall on a Saturday, Sunday or official state holiday are extended to the next regular business day.

IMPORTANT: Except as noted above, there are no provisions in the Political Reform Act for extension of the filing deadlines. A person who files after a deadline is liable for a fine of $10 per day until the report is filed.

Refer to the Information Manual on Lobbying Disclosure Provisions of the Political Reform Act for further Information. For Assistance Call 916-322-5660.


Check the box to indicate whether you are filing a report as a "Lobbyist Employer" or a "Lobbying Coalition." NOTE: Lobbying Coalitions must also complete and attach Form 635-C.

Period Covered By Report

The period covered is the calendar quarter. (See the cover sheet of this form for periods covered.)

Cumulative Period Beginning:

The "cumulative period" begins with January 1 of the current legislative session; except for the first report a filer is required to file, in which case the cumulative period begins with the first day of the calendar quarter in which the filer qualified.

Part 1: Legislative or State Agency Administrative Actions Actively Lobbied During the Period:

You must report the legislative bills and state agency administrative actions which you “actively” influenced or attempted to influence, or your lobbyist or any lobbying firm with which you contract “actively” influenced or attempted to influence on your behalf during the calendar quarter. “Actively” lobbied means that a partner, owner, officer, or employee, or a lobbying firm with which you have contracted, either has engaged in direct communication, or has been directed by you to engage in direct communication, with a qualifying official for the purpose of influencing legislative or administrative action during the reporting period. (See the Information Manual on Lobbying Disclosure Provisions of the Political Reform Act for the definition of “direct communication.”) Do not list bills or administrative actions which have died prior to the reporting period, or those which are only being watched or monitored, or those which you have not attempted to influence during the reporting period. You may either list the legislative bill numbers and administrative regulation numbers or provide a brief description of each legislative or administrative action actively lobbied during the quarter. When listing state administrative actions, provide the name of the state agency or department.

Summary of Payments:

Enter the total amounts paid this period from each section of the report. With respect to campaign contributions, check the box which applies to your activities during the calendar quarter.

Verification

The report must be verified and signed by the filer. In the case of an organization, a responsible officer of the organization, or an attorney or a certified public accountant must sign on behalf of the organization.

Part 2: Partners, Owners, and Employees Whose "Lobbyist Reports" (Form 615) are Attached to This Report:

You must attach a “Lobbyist Report” (Form 615 completed by each owner, partner, officer, or employee who qualifies as a “lobbyist,” and you must list that individual’s name in Part 2 of the Report. NOTE: This does not include lobbyists who are registered separately as lobbying firms or lobbyists who are employed by lobbying firms with which you contract.

Part 3: Payments Made in Connection with Lobbying Activities:

Section A: Payments to In-House Employee Lobbyists:

You must enter the total of all payments made in connection with lobbying activities during the quarter to the lobbyists listed in Part II of the Report. You must also report the cumulative amount of payments to in-house lobbyists since January 1 of the biennial legislative session for which the report is being filed. “Payments” include salary, reimbursement of expenses, an advance for expenses or a salary advance or any other payments made in connection with lobbying activities. (Salary includes gross wages paid, plus any fringe benefits which are in lieu of wages such as the granting of stock options or purchase of annuities. Salary does not include routine fringe benefits such as the employer’s contributions to a health plan, retirement plan, or payroll taxes.) Also enter the total of Section A in the “Summary of Payments” section on Page 1, Line A. NOTE: An individual contract lobbyist is a “lobbying firm.” Do not include in Section A any payments to lobbying firms.

Section B: Payments to Lobbying Firms (Including Individual Contract Lobbyists):

A “lobbying firm” is any business entity, including an individual contract lobbyist, which contracts for economic consideration for the purpose of influencing legislative or administrative action on behalf of another person. You must disclose all payments to a lobbying firm, including fees and retainers, reimbursement of expenses, advances, or other payments. You must also report the cumulative amount of payments to the lobbying firm since January 1 of the biennial legislative session for which the report is being filed. Also enter the total of Column 4 in the “Summary of Payments” section on Page 1, Line B.

IMPORTANT: You must list each lobbying firm which has been authorized to lobby on your behalf, even if you have not made any payments to the firm during the period covered by this report. If no payments have been made during the quarter, enter the name of the lobbying firm in the proper section, and enter zeros in the columns. If you have made any payments to the lobbying firm since January 1 of the biennial legislative session, you must enter the “cumulative total to date” in Column 5.

Section C: Activity Expenses:

An “activity expense” is any expense which benefits, in whole or in part, an elected state officer, a legislative official, an agency official, a state candidate, or a member of the immediate family of such officials or candidates. Activity expenses include gifts, honoraria, consulting fees, salaries, and any other form of compensation, but do not include campaign contributions.

You must itemize all activity expenses incurred by you, and you must report them during the period in which they occurred, regardless of whether or not they were actually paid during the period, and the information outlined below. This does not include activity expenses which were paid or incurred by a lobbyist and which were merely reimbursed by you or charged to an account paid by you. However, if a lobbyist “arranges” any payment incurred by a lobbyist employer which benefits a reportable person, both the employer and the lobbyist must itemize the expense.

Section D: Other Payments to Influence Legislative or Administrative Action: (Governmental agencies must use Form 640 to complete this section):

Report as a lump sum all other payments you made in connection with your attempts to influence legislative or administrative action. Such payments would include payments to a lobbying coalition; payments in support of your lobbyist (but not made directly to the lobbyist), such as the payment of a credit card charge for activity expenses which have been reported by the lobbyist; payments for office overhead and operating expenses and subscription services, payments to expert witnesses, and compensation paid to employees (other than a lobbyist) who spend 10 percent or more of their compensated time in a calendar month in connection with lobbying activities. Also enter the total of Section D in the “Summary of Payments” section on Page 1, Line D. NOTE: If you make payments to a lobbying coalition, you must also attach a completed Form 630 to this report.

Section E: Payments in Connection with Administrative Testimony in Ratemaking Proceedings Before the California Public Utilities Commission:

Filers who make payments in connection with administrative testimony in ratemaking proceedings before the PUC (other than payments to a lobbyist or a lobbying firm) must report the lump sum of these payments in Section E. Payments to be reported include compensation paid to all attorneys, other than a lobbyist or a lobbying firm, for time spent testifying in the proceedings and compensation paid to all witnesses, other than a lobbyist or a lobbying firm, for time spent testifying in the proceedings. Compensation includes gross wages paid plus any benefits which are in lieu of wages such as the granting of stock options or the purchase of annuities. It does not include routine fringe benefits such as the employer’s contributions to a health plan, retirement plan, or payroll taxes. No other in-house expenses or overhead in connection with such proceedings are reportable. However, if you make payments to a lobbyist or a lobbying firm in connection with PUC ratemaking proceedings, you must report the payments in Part III, Section A or B, whichever is applicable. Also enter the total of Section E in the “Summary of Payments” section on Page 1, Line E.

Refer to the Information Manual on Lobbying Disclosure Provisions of the Political Reform Act for further Information. For Assistance Call 916-322-5660.

Form 635

End of Page, Form 635 Instructions