Government Law Alert: California Extends “Pay-to-Play” Laws to Certain Placement Agents
4/28/2011
By Wynter N. Lavier and Elissa Flynn-Poppey
In the wake of accusations involving influence peddling and pay-to-play at the California Public Employees’ Retirement System, Governor Arnold Schwarzenegger signed into law 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.
