California Extends “Pay-to-Play” Laws to Certain Placement Agents


Recently the Fair Political Practices Commission (FPPC) provided guidance regarding the new California law regulating placement agents as lobbyists. Specifically, the FPPC provided guidance on the limitations to the registration exceptions carved out under the new law, including what activities and communications constitute “the competitive bidding process” and are therefore exempted by the Registered Investment Advisor Exception, whether it is possible to be systematically exempt from registering as a lobbyist for subsequent lobbying under the Registered Investment Advisor Exception, and whether local placement agents qualify for exemption from the law under either the One-Third Exception or the Registered Investment Advisor Exception.

What Is the New California Law Regulating Placement Agents As Lobbyists?

In the wake of accusations involving influence peddling and pay to-play at the California Public Employees’ Retirement System, California recently enacted Assembly Bill 1743 (AB 1743) which extended the reach of the Political Reform Act of 1974 by including “placement agents” in the definition of “lobbyist.” Specifically, AB 1743 requires “placement agents” to register as lobbyists with the state if they sell, or are seeking to sell, the securities, assets, or services of an “external manager” to California state public retirement systems.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Mintz Levin | Attorney Advertising

Written by:


Mintz Levin on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.