New Regulations (June 2005)

General information

On June 1, 2005, the Office of the Registrar of Lobbyists has proceeded with the final publication of the Regulations Amending the Lobbyists Registration Regulations (thereafter referred to as the "Regulations"), under the authority of the Lobbyists Registration Act(R.S.C. 1985, c.44 (4th supp.)) as amended.

The proposed Regulations were published under the authority of the Statutory Instruments Act and of the Statutory Instruments Regulations. The date of coming into force of the Regulations and of the amended Act was fixed by Order in Council to June 20, 2005.

The Regulations, the Registration Forms and the accompanying Regulatory Impact Assessment Statement (RIAS) are available from the official Web site of the Canada Gazette. The text of the relevant Orders in Council, carrying the numbers 2005-0919 and 2005-0920, may be obtained from the website of the Privy Council Office.

Canada Gazette

Regulations Amending the Lobbyists Registration Regulations

Statutory authority

Lobbyists Registration Act

Sponsoring department

Department of Industry

Regulatory Impact
Analysis Statement

(This statement is not part of the Regulations.)

Description

The Regulations Amending the Lobbyists Registration Regulations are made under the authority of the Lobbyists Registration Act [R.S.C. 1985, c. 44 (4th Supp.) as amended by S.C. 1995, c. 12]. The Lobbyists Registration Act (the Act) authorizes the Governor in Council to make regulations respecting the form and manner of the returns to be filed by lobbyists. The Act was amended by Bill C-15, An Act to amend the Lobbyists Registration Act, Chapter 10 of the Statutes of Canada 2003, which received Royal Assent on June 11, 2003. The Regulations set out the administrative measures for complying with the Act. To reflect the amendments to the Act, changes to the Regulations are necessary and, before the Act can come into force, amendments to the Regulations must be made.

In accordance with a statutory requirement in the Act, a four-year parliamentary review of its administration and operation was undertaken. The House Standing Committee on Industry, Science and Technology undertook this review and tabled its report in June 2001. This has resulted in amendments to the Act in 2003 in order to clarify the enforcement provisions, remove potential loopholes in cases involving government-initiated consultations, introduce semi-annual filings for all lobbyists and the application of a single filing approach for in-house lobbyists (corporations), and to enhance transparency by requiring lobbyists to disclose information relating to any previous public offices held within the federal government.

The amended Act continues to focus on transparency by providing for more timely and comprehensive information available to Canadians about lobbyists and what they do. It also permits lobbyists to file their returns electronically with any personal computer, modem and communications software.

The Lobbyists' Remote Registration System (LRRS), which was implemented in 1997, has been a success story of Industry Canada's first completely interactive government-on-line system. It has been a very important development in the ability to use the Internet to ensure transparency as well as administrative efficiency. Today more than 99 percent of registrations are filed electronically. Internet access using the Strategis Web site, Industry Canada's gateway to the Internet, not only enables lobbyists to file registration forms on-line at no charge, it also renders the registry completely available to the Canadian public on a 24-hours-a-day, 7-days-a-week basis, which allows anyone to conduct searches and retrieve information on lobbyists.

These Regulations set out the format of the returns that lobbyists must use to disclose the required information, as well as the manner in which these returns must be submitted. Returns may be filed electronically or using other means as specified by the Registrar. Registration fees related to filing are dealt with pursuant to the Department of Industry Act.

The Lobbyists Registration Act requires individuals who are paid to communicate with federal public office holders in respect of the development, making or amendment of any federal law, regulation, policy or program or the awarding of any grant, contribution, other financial benefit, or federal contract, to register and disclose certain information.

Under the current Act, there are three types of lobbyists, namely, consultant-lobbyists, in-house lobbyists (corporate) and in-house lobbyists (organizations).

Consultant-lobbyists: consultants who lobby on behalf of a client must register within 10 days of entering into an undertaking and must advise the Registrar within 30 of the completion or termination of an undertaking.

In-house lobbyists (corporate): each employee of a corporation who spends a significant part of his or her time lobbying federal public office holders must file a return within two months of commencing these activities. This is an individual responsibility. Thereafter, the lobbyist must file an annual return within two months of the beginning of the corporation's fiscal year; if the corporation does not have a fiscal year, within two months of the calendar year. (In accordance with the authority provided under the Act, the Registrar has issued an interpretation bulletin interpreting the expression "a significant part of … duties" as equivalent to 20 percent of an individual's time.)

In-house lobbyists (organizations): the most senior paid officer must register on behalf of the organization within two months of commencing lobbying activities where the total sum of time spent by all paid employees of an organization is equal to a significant part of the duties of one individual's time (again, this has been interpreted as equivalent to 20 percent of an individual's time). Thereafter, the senior officer must file a return every six months.

The amendments to the Act continue to distinguish among the three types of lobbyists. The proposed regulatory changes include amendments which will now require all three types of lobbyists to file returns on a semi-annual basis. This will ensure that the public register is correct and up-to-date.

As well, the registration requirements applicable to organizations will now apply to corporations. In other words, when one or more employees of a corporation lobby and the sum total of time spent performing lobbying activities by all such employees constitute a significant part of the duties of one employee, the most senior officer will need to register on behalf of the corporation. As such, the onus for filing returns will no longer rest on individual employees but will become the responsibility of the most senior officer. In the return, the most senior officer responsible for filing (most commonly the chief executive officer) will need to provide the names of all the senior officers within the corporation and their direct reports who lobby as well as the names of those employees who lobby as a significant part of their duties.

The adoption of the single filing approach to corporations will ease the administrative burden by eliminating the need for multiple filings. Furthermore, this new approach underlines the reality that the ultimate responsibility for government relations usually rests at the highest corporate level.

The current Act requires that lobbyists submit certain information in their returns and notify the Registrar of any changes to information previously submitted. This information must be submitted in the form and manner prescribed by the Regulations. These Regulations are, therefore, an integral part of the implementation of the Act.

Currently, lobbyists in their filings must disclose information relating to their lobbying activities such as the name of their client or employer, the issue or subject matter on which they will be lobbying, the departments or federal agencies with which they will be communicating, the communication techniques to be used, the source and amount of any government funding.

As a result of the amendments to the Act, in addition to the disclosure of this information, it will also be necessary for all lobbyists who are former public office holders to provide information in relation to the positions they held within the federal government.

The Act and Regulations will come into force at the same time.

Alternatives

There are no alternatives to these Regulations. A regulatory change is required in light of the amendments to the Act. The Act provides the Governor in Council with the authority to make regulations prescribing the form and manner respecting the submission of returns to the Registrar.

Benefits and costs

The Regulations set out administrative measures for a registration scheme that ensures transparency is achieved thereby fulfilling the intent and purpose of the Act.

The Regulations therefore support the Act, which ensures enhanced transparency with the introduction of semi-annual filings for all lobbyists as well as with the adoption of the single filing approach for corporations which is currently in place for organizations.

The single filing approach for corporations will streamline the registration process by eliminating the need for multiple filings. As well, requiring the most senior officer (most commonly the chief executive officer) to register on behalf of a corporation will underline the reality that the ultimate responsibility for government relations rests at the highest corporate level.

There are no fees for registrations which are filed electronically. Currently, more than 99 percent of registrations are done on-line. Those who choose to file on paper format must pay a fee in accordance with the Lobbyists Registration and Service Fees schedule.

Consultation

There is a statutory requirement that a parliamentary review of the administration and operation of the Act be undertaken four years after coming into force. As such, the House Standing Committee on Industry, Science and Technology was mandated with this review and tabled its recommendations in June 2001.

Leading up to the tabling of Bill C-15, there were extensive consultations. In the preparation for the parliamentary review, the Office of the Ethics Counsellor launched in November 1999 a consultation process through its Web site as well as through a mass mailing. The mailing was extensive as it involved approximately 1 800 letters inviting comments from all registered lobbyists and other interested individuals and groups, such as academia, associations and other levels of government.

The Standing Committee on Industry, Science and Technology, charged with the review of the Act, held hearings in the spring of 2001 and received evidence from various witnesses. The majority of the witnesses expressed the view that the registration system worked well.

Once Bill C-15 was tabled, there were further hearings held for its consideration by parliamentary committees. The Standing Committee on Industry, Science and Technology held hearings in the late fall of 2002 and tabled its report on December 4, 2002. The Senate Standing Committee on Rules, Procedures and the Rights of Parliament held hearings in May 2003. Bill C-15 received Royal Assent on June 11, 2003.

The witnesses appearing during the parliamentary review or hearings on Bill C-15 included representatives of the Canadian Manufacturers and Exporters; Democracy Watch; Grainger and Associates; the Government Relations Institute of Canada; GPC International; Alternatives North; ARC Publications; Bell Canada; Grey, Clark, Shih and Associates Limited; Hillwatch Inc.; Pierre Morin Conseils Limitée; the Canadian Society of Association Executives; the Canadian Bar Association; the Department of Justice; and the Department of Industry.

On the whole, witnesses and other stakeholders agreed that a stronger, more enforceable Act was desirable. A few witnesses felt, however, that the legislation went too far in placing disclosure requirements upon lobbyists, whereas others felt that the amendments to the legislation did not go far enough in achieving transparency.

Compliance and enforcement

The responsibility for complying with the Act and Regulations is with the consultant-lobbyist and the senior officer of a corporation or organization. Under the Act, the Registrar may verify and demand clarification of information submitted by lobbyists.

The Act provides for penalties for not registering or for submitting false or misleading information. Failure to register in accordance with the Act can lead to a fine of up to $25,000 and/or imprisonment of up to six months. Filing false or misleading information can lead to a fine of up to $100,000 and/or two years of imprisonment.

In order to clarify the registration requirements under the Act and remove any ambiguity as to the need to register, the expression "in an attempt to influence" has been deleted from the Act. By deleting this expression, it will no longer be necessary to establish that an individual communicated "in an attempt to influence" a federal official. The focus will now be on the act of communicating with a federal public office holder as the activity that is registrable as lobbying.

Contact

Karen E. Shepherd, Director, Lobbyists Registration Branch, 235 Queen Street, 4th Floor, Ottawa, Ontario K1A 0H5, 613-948-1788 (Telephone), 613-957-3078 (Facsimile).

Proposed Regulatory Text

Notice is hereby given that the Governor in Council, pursuant to section 12 (see footnote a) of the Lobbyists Registration Act (see footnote b), proposes to make the annexed Regulations Amending the Lobbyists Registration Regulations.

Interested persons may make representations with respect to the proposed Regulations within 60 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Karen E. Shepherd, Director, Lobbyists Registration Branch, Industry Canada, 235 Queen Street, 4th Floor, East Tower, Ottawa, Ontario K1A 0H5 (Telephone: 613-948-1788; Fax: 613-957-3078; Email: shepherd.karen@ic.gc.ca).

Persons making representations should identify any of those representations the disclosure of which should be refused under the Access to Information Act, in particular under sections 19 and 20 of that Act, and should indicate the reasons why and the period during which the representations should not be disclosed. They should also identify any representations for which there is consent to disclosure for the purposes of that Act.

Ottawa, December 13, 2004

Eileen Boyd
Assistant Clerk of the Privy Council

Regulations Amending The
Lobbyists Registration Regulations

Amendments

1. The definitions "notice" and "return" in section 2 of the Lobbyists Registration Regulations (see footnote 1) are replaced by the following:

"notice" means a written document informing the registrar of

(a) the completion or termination of an undertaking, in accordance with subsection 5(1.3) of the Act,

(b) any change to the information provided in a return, and any new information, the knowledge of which the individual acquired only after the return was filed, in accordance with subsection 5(3) of the Act,

(c) any clarification of information provided at the request of the registrar, pursuant to subsection 5(5) or 7(5) of the Act,

(d) the fact that an employee named in a return no longer performs any of the duties described in paragraph 7(1)(a) of the Act or is no longer employed by the employer, referred to in subsection 7(4) of the Act, or

(e) the fact that an employer no longer employs any employees who perform lobbying activities in accordance with paragraph 7(2.1)(b) of the Act; (avis)

"return" means a return required by subsection 5(1) or 7(1) of the Act. (déclaration)

2. Section 4 of the Regulations is replaced by the following:

4. (1) A return referred to in subsection 5(1) of the Act, or a notice required pursuant to subsection 5(1.3), (3) or (5) of the Act, that is made in paper format shall be in Form 1 of the schedule.

(2) A return referred to in subsection 7(1) of the Act, or a notice required pursuant to paragraph 7(2.1)(b) or subsection 7(4) or (5) of the Act, that is made in paper format shall be in Form 2 of the schedule.

3. The schedule to the Regulations is replaced by the schedule set out in the schedule to these Regulations.

Coming into force

4. These Regulations come into force on the day on which An Act to amend the Lobbyists Registration Act, chapter 10 of the Statutes of Canada, 2003, comes into force.

Schedule
Section 3)

[51-1-o]

Footnote a

S.C. 2003, c. 10, s. 12

Footnote b

R.S., c. 44 (4th Supp.)

Footnote 1

SOR/95-579

Privy Council Office (Orders in Council)

Background

The Lobbyists Registration Act (R.S., 1985, c. 44 (4th Supp. ) (thereafter called the Act) authorized the Governor in Council to make regulations respecting the form and manner of the returns to be filed by lobbyists.

The Act was amended by Bill C-15, An Act to amend the Lobbyists Registration Act, Chapter 10 of the Statutes of Canada 2003, which received Royal Assent on June 11, 2003. The Regulations set out the administrative measures for complying with the Act. Changes to the Regulations were made in order to reflect the amendments brought previously to the Act and to allow its coming into force.

The Regulations were made by Order in Council on May 17, 2005, and then forwarded for final publication in Part II of the Canada Gazette. The Canada Gazette is the official newspaper of the Government of Canada. Final publication in Part II of the Canada Gazette provides interested individuals and organizations with the opportunity to take notice of regulations that have been enacted as well as other classes of statutory instruments, such as orders in council, orders and proclamations.