SB2889 94TH GENERAL ASSEMBLY

LRB094 19053 JAM 54551 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2889

Introduced 1/20/2006, by Sen. Kirk W. Dillard

SYNOPSIS AS INTRODUCED:

25 ILCS 170/9.5 new
25 ILCS 170/9.10 new
25 ILCS 170/9.15 new

Amends the Lobbyist Registration Act. Sets forth prohibitions and restrictions relating to the activities of a person required to register under the Act with respect to the person's clients and former clients and conflicts of interest with respect to clients.

A BILL FOR

AN ACT concerning lobbying.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Lobbyist Registration Act is amended by adding Sections 9.5, 9.10, and 9.15 as follows:

(25 ILCS 170/9.5 new)

Sec. 9.5. Conflict of interest; multiple clients.

(a) A person required to register under this Act shall not represent a client if the representation of that client will be directly adverse to another client, unless:

(1) the person required to register under this Act reasonably believes the representation will not adversely affect the relationship with the other client; and

(2) each client consents after disclosure.

(b) A person required to register under this Act shall not represent a client if the representation of that client may be materially limited by the person's responsibilities to another client or to a third person, or by the person's own interests, unless:

(1) the person required to register under this Act reasonably believes the representation will not be adversely affected; and

(2) the client consents after disclosure.

(c) When representation of multiple clients in a single matter is undertaken, the disclosure shall include explanation of the implications of the common representation and the advantages and risks involved.

(25 ILCS 170/9.10 new)

Sec. 9.10. Conflict of interest; prohibited transactions.

(a) Unless the client has consented after disclosure, a person required to register under this Act shall not enter into a business transaction with the client if:

(1) the person required to register under this Act knows or reasonably should know that he or she and the client have or may have conflicting interests therein; or

(2) the client expects the person required to register under this Act to exercise the person's professional judgment therein for the protection of the client.

(b) Unless all aspects of the matter giving rise to the employment have been concluded, a person required to register under this Act shall not enter into any arrangement or understanding with a client or a prospective client by which the person required to register under this Act acquires an interest in publication, media, or other literary rights with respect to the subject matter of employment or proposed employment.

(c) A person required to register under this Act or a person related as his or her parent, child, sibling, or spouse shall not solicit or accept any substantial gift from a client, including a testamentary gift, except where the client is related to the donee or the person required to register under this Act has advised the client to seek independent advice concerning the gift.

(d) While representing a client in connection with contemplated or pending lobbying activities, a person required to register under this Act shall not advance or guarantee financial assistance to the client, except that a person required to register under this Act may advance or guarantee the expenses of lobbying activities if:

(1) the client remains ultimately liable for such expenses; or

(2) the client is indigent.

(e) A person required to register under this Act who represents 2 or more clients shall not participate in making an aggregate agreement for the clients, unless each client consents after disclosure, including disclosure of the existence and nature of the interests of all clients involved.

(f) A person required to register under this Act shall not make an agreement with a client prospectively limiting the person's liability to the client unless such an agreement is permitted by law and the client is independently represented in making the agreement.

(g) A person required to register under this Act shall not settle a claim against himself or herself made by an unrepresented client or former client without first advising that client in writing that independent representation is appropriate in connection therewith.

(h) A person required to register under this Act shall not enter into an agreement with a client or former client limiting or purporting to limit the right of the client or former client to file or pursue any complaint or claim against the person.

(i) A person required to register under this Act shall not acquire a proprietary interest in the subject matter of lobbying activity that is being conducted for a client except by acquiring a lien granted by law to secure fees or expenses.

(25 ILCS 170/9.15 new)

Sec. 9.15. Conflict of interest; former client.

(a) A person required to register under this Act who has formerly represented a client in a matter shall not thereafter:

(1) represent another person in the same or a substantially related matter in which that person's interests are materially adverse to the interests of the former client, unless the former client consents after disclosure; or

(2) use information relating to the representation to the disadvantage of the former client unless the information has become generally known.