Texas Ethics Commission The Texas Ethics Commission is authorized by Texas Civil Statutes, Article 6252- 9d.1, sec.1.29, to issue advisory opinions in regard to the following statutes: Texas Civil Statutes, Article 6252-9b; the Government Code, Chapter 302; the Government Code, Chapter 305; the Election Code, Title 15; the Penal Code, Chapter 36; and the Penal Code, Chapter 39. Requests for copies of the full text of opinions or questions on particular submissions should be addressed to the Office of the Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070, (512) 463-5800. Advisory Opinions Request AOR-112. File closed. No opinion issued, answered by letter. AOR-121. File closed. No opinion issued. AOR-131. File closed. No opinion issued, answered by letter. AOR-143. File closed. No opinion issued, answered by letter. AOR-153. File closed. No opinion issued. AOR-157. File closed. No opinion issued. AOR-161. File closed. No opinion issued. Issued in Austin, Texas, on March 5, 1993. TRD-9319933 Sarah Woelk Director, Advisory Opinions Texas Ethics Commission Filed: March 8, 1993 For further information, please call: (512) 463-5800 AOR-160. The Texas Ethics Commission has been asked to consider whether the lobby statute regulates communications between an investment banker and officers and employees of a state agency in regard to the selection of investment banking services for the agency. AOR-161. The Texas Ethics Commission has been asked to consider whether members of the State Pension Review Board are required to file financial disclosure statements under Texas Civil Statutes, Article 6252-9b. AOR-162. The Texas Ethics Commission has been asked to consider the following matters. (1) A registered lobbyist uses, from time to time, assistants to address certain matters before the legislature or an agency. The assistants actually communicate directly with members of the agency or legislature. The registered lobbyist is an employee of a corporation, which is not registered. The assistants are also employees of the same corporation. The assistants are reimbursed by the corporation for their food, travel and lodging expenses, which may total over $200 per calendar quarter. Additionally, the corporation may pay for some expenditures directly, i.e., air fare and car rental. No such direct expenditures are made for any member of the legislature or an agency. (a) Must the registered lobbyist report the assistants' expenditures for food, travel and lodging on his/her own monthly report? If so, how should such expenditures be reported? (b) If the lobbyist is on a modified reporting schedule, may he/she still utilize the modified reporting schedule even though the modified reporting schedule even though the expenditures of each assistant for food, travel and lodging total over $1,000 per calendar year? Would the same hold true if, only collectively, the expenditures of the assistants total over $1, 000 per calendar year? Is there any dollar level associated with the expenses of an assistant that would trigger the requirement for the registrant to report on a monthly rather than an annual basis? Is there a difference in the above responses depending on whether the assistant is reimbursed for his/her expenses or whether the corporation pays such expenses directly? (c) If any direct communication conducted by an assistant constitutes less than 5.0% of his/her compensated time, would the assistant be required to register on his/her own behalf if his/her communications were only at the request and with the consent of the registered lobbyist? (d) If the assistant spent more than 5.0% of his/her compensated time on direct communications with legislative or agency members only at the request and with the consent of the registered lobbyist, would the assistant be required to register? (e) If the assistant spent more than 5.0% of his/her compensated time gathering information for the registered lobbyist, but the assistant had no direct communication with any legislative or agency members, would the assistant be required to register? (2) A registered lobbyist permanently resides in a geographical region of the state several hours from Austin. For convenience, the lobbyist resides in an apartment in Austin for one year during the legislative session in order to conduct lobbyist activities and other activities on behalf of the corporation for whom the employee works. The registered lobbyist pays for all utilities. The corporation, which is not registered as a lobbyist, pays for the lease of the apartment directly; the corporation reimburses the lobbyist for his/her utility expenses. The lobbyist also purchases groceries for his/her stay in the apartment. The lobbyist does not spend 100% of his/her time in Austin transacting lobbyist activities. Rather, the lobbyist conducts other corporation-related business while in Austin. The assistants of the lobbyist utilize the apartment while in Austin to assist the lobbyist. Other employees of the corporation also utilize the apartment when they are in Austin for non- lobbyist activities. (a) Must the lobbyist pro-rate the apartment rent as a lodging expense on his/her monthly report? If so, what formula should be used to capture only the lobbyist-related amount of expenditures? (b) Must the lobbyist reflect on his/her monthly report the "expenditures" of those assistants who assist him/her in lobbyist activities, or would this constitute double counting? (c) Must the lobbyist reflect his/her expenditures for utilities and groceries if the corporation reimbureses the lobbyist for such expenses? If the corporation does not reimburse the lobbyist for all of his/her utility or grocery expenses, is only the level which is reimbursed reportable? (d) Would the responses to 2(a), 2(b) or 2(c) differ if the Legislature was not in session? (e) As a result of the expenditures described in 2(a), 2(b), and 2(c) above, must the corporation register as a lobbyist? Issued in Austin, Texas, on March 5, 1993. TRD-9319932 Sarah Woelk Director, Advisory Opinions Texas Ethics Commission Filed: March 8, 1993 For further information, please call: (512) 463-5800