August 15, 2008

SUBJECT: Requirements under the federal Lobbying Act 

1. Background

In December, 2006, the Federal Accountability Act (“FAA”) was enacted in an effort to improve the transparency of lobbying and the accountability of government decision-making.   To achieve this objective, the FAA amended the Lobbyists Registration Act and renamed it the Lobbying Act (the “Act”). 

The revised Lobbying Act and its regulations came into force on July 2, 2008.   

2. Filing returns of lobbying activities

Lobbyists are currently required to file initial returns when they communicate either verbally or in writing with public office holders.   Public office holders are defined as any officer or employee of the federal government and include members of parliament.

In addition to the initial filing, lobbyists will now be required to file monthly returns if the individual carries out oral and arranged communications with designated public office holders ("DPOHs"). 

As the communication must be oral and arranged, written communications or unplanned communications such as chance encounters at social events do not need to be reported in the monthly returns.  Any form of communication, however, may cause the need to file an initial return.

DPOHs include Ministers, Ministers of state, senior ministerial staff, Deputy Heads, Associate Deputy Ministers, Assistant Deputy Ministers, and any positions that have been designated by regulation.   As there are currently no lists identifying whether a particular person is to be considered a DPOH, lobbyists will need to be attentive to the titles of government representatives with whom they meet.  

A monthly return must state, for each communication involving a designated public office holder:
• The date of the communication
• The name and title of the DPOH who participated in the communication
• The named of the DPOH’s department and his or her branch or unit within that department.
• The subject of the communication

The information contained in the return will be posted in the Registry of Lobbyists, and is accessible to the public.   Access to this information will permit CUCC to monitor the lobbying activities of other organizations (e.g. the Canadian Bankers Association), and for other organizations and the media to monitor the lobbying activity of CUCC.

Excluded from the monthly reporting requirements are certain oral and arranged communications which are initiated by a public office holder where such communications relate to policy, programs, bills, regulations or legislation. 

The first monthly returns will be due no later than August 15th, 2008.  Although there are no longer any requirements to file semi-annual renewals, a monthly return must be filed at least every six months, even if it states only that no prescribed communication has been made since the previous return. 

It is interesting to note that the amendments now permit the Commissioner of Lobbying to contact the DPOH to verify the information derived from one or more monthly returns. 

3. Significance for Canadian Central’s board of directors

Members of boards of directors who carry out lobbying activities and are compensated for such activities must register as consultant lobbyists.    Therefore, directors who receive a per diem for time spent lobbying on behalf of their organization, including Canadian Central, will be required to register as consultant lobbyists.  However, reimbursement of expenses incurred as a result of lobbying activities will not trigger the registration requirements. 

Registration requirements for consultant lobbyists are only triggered once an applicable communication with a public office holder has taken place.  Canadian Central will therefore proceed with the registering of a CUCC director if and when lobbying activities are undertaken by those directors which give rise to a reporting requirement.

Members of the Board are encouraged to inform Canadian Central's Ottawa office of any written or oral communications with public office holders on behalf of Canadian Central.  Canadian Central can then help to determine whether the communication triggers the need for an initial or monthly return to be filed. 

4. Other amendments

Other amendments to the Act which may be of interest are as follows:

• A ban on any payment of any benefit that is contingent on the outcome of a consultant lobbyist’s activity.
• Former designated public office holders and former designated members of Prime Minister’s transition teams will be prohibited from lobbying for a five year period after they cease to carry out those responsibilities. 
• All returns must be filed online unless the person filing the return has a disability or lacks access to a computer.
• Maximum fines will double to $50,000 (summary conviction offenses) and $200,000 (indictment offenses).

5. Action Items

In light of the new Lobbying Act rules taking effect, Canadian Central, primarily through its Ottawa office, will:

• Establish a procedure to effect compliance with initial and monthly returns of staff and members of the board of directors who carry out lobbying activities on behalf of the system. 

• Monitor the Lobbyists Registration System for the lobbying activities of other organizations of interest and relevance to CUCC.  A quarterly report will be provided to the members of the Board with competitive intelligence on the lobbying activities of such organizations.

6. Related documents

Additional information can be found at the following internet site:
http://www.lobbycanada.gc.ca/epic/site/lobbyist-lobbyiste.nsf/en/h_nx00161e.html