Update of register entries required – Deadline: 30 June 2024

The LRA originally came into force on 1 January 2022. It creates registration obligations for lobbyists and companies that actively pursue or commission lobbying activities on a federal level in Germany. The LRA regime obligates its addressees to register and disclose certain information in relation to the lobbying activities and the company itself. This includes, for example, the purpose of the activities, their funding as well as the identity of the entities behind the lobbying. In addition, it prescribes a code of conduct for lobbying activities and imposes administrative fines if certain obligations pursuant to the LRA are not met.

After being in force for two years, lawmakers saw the need to update the LRA regime in order to ensure its efficiency in creating transparency about the extent to which companies are engaged in lobbying activities in Germany on a federal level. According to the legislator, it is the intent that with the update of the LRA, the scope of application and disclosure obligations are tightened in the "interests of transparent government activity". To this end, the register entries and the information on objects of influence disclosed in the register shall be made more meaningful, and the scope of application of the registration obligation shall be "moderately" expanded. The far-reaching amendments to the LRA lead to a considerable tightening of the law. There are changes within almost every part of the regulation. Violations of the obligations can be subject to administrative fines. Compliance with the new regime is, therefore, imperative for any company engaging in activities toward federal government officials.

The new regime was approved by the legislator in October 2023 and will enter into force on 1 March 2024. As a consequence, all existing lobby register entries need to be updated to comply with the new rules and compliance with the new regime has to be actively confirmed on the website - a process which is referred to as "migration". The deadline for migration of entries is 30 June 2024.

New rules – new and extended obligations

Below, you find an overview of the main changes introduced with the new regime. Please note that this is not a comprehensive list.

Definition of "lobbying"

Extended circle of government officials covered

The scope of application of the LRA now extends also to activities addressed at:

• Committees of the German Parliament (Bundestag)
• Employees of the institutions of the German Parliament (Bundestag)
• Heads of divisions at federal ministries

Materiality threshold for the intensity of activities lowered

The materiality threshold for the registration obligation has been lowered from 50 to 30 contacts within the past three months.

An obligation to register is now also triggered if a representation of interest is being commissioned and a service is provided in return.

Exemptions refined

The new law clarifies that legal advice directed at a decision of the Federal Government in the context of an administrative procedure, a procurement procedure or contract negotiations are exempted. The representation of interests by persons exercising diplomatic or consular activities are from now on not subject to registration when practiced vis-à-vis the bodies of the German Federal Parliament or Federal Government. Additionally, the duty to register is not applicable to legal entities performing public duties.

Disclosure obligations extended

Far-reaching changes have been made to the content of the registration. Therefore, all existing register entries need to be updated, and compliance with the new regime has to be actively confirmed by 30 June 2024 at the latest.

Information on offices located in Berlin

In case the registered company has an office in Berlin, contact details have to be provided.

Information on acting individuals

The number of employees carrying out lobbying activities has to be indicated by providing an FTE number. Every employee who dedicates at least 10 % of their job to lobbying activities needs to be considered. Information about everyone who is entrusted with lobbying activities without being an employee of the company also needs to be provided. This regards, in particular, individuals who are acting on an honorary basis or members of an extended Executive Board or Supervisory Board as well as co-opted members of the Executive Board.

"Revolving door" situations need to be disclosed. For all natural persons listed in the register entry (authorized representatives and persons directly entrusted with the exercise of lobbying activities), it must be indicated whether they currently hold or have held a mandate, office, or function in the Bundestag, the federal government, or the federal administration in the last five years.

Information on the lobbying activity

The specific aim of the lobbying activity pursued has to be indicated. Generic descriptions of the general business activities are not sufficient to meet this obligation. Specific legislative drafts or initiatives that are the subject of the lobbying activities need to be individually indicated.

Statements and legal/expert opinions need to be published

Fundamental statements, as well as legal and expert opinions on the specified regulatory projects which are submitted to at least one addressee covered by LRA, need to be published in the lobby register in full no later than the end of the current quarter after they are sent. Fundamental are such statements/opinions that contain key arguments or positions in relation to specific regulatory projects. The statements/opinions must first be uploaded to the register as PDF files. In addition, the text content (without graphics, images or tables) of the respective statements/opinions must be inserted in an input field provided for this purpose in the register application. This allows the content to be entered in a machine-readable format. The documents must also state the date of submission and an abstract designation of the addressees on the part of the Federal Government and/or the Bundestag.

Publication of financial data and public donations is now obligatory

Major changes were also made to the scope of providing financial data, e.g., thresholds for publication of public funding or donations received have been reduced to EUR 10,000. The beginning and the end of actual and two previous financial years have to be published as well as a statement of accounts including at least revenues and costs. The primary sources of funding in descending order (economic activity, public donations, donations, membership fees and else) of the company as well as annual expenses for representation of interests in stages of EUR 10,000 need to be indicated.

As a general rule, the right to refuse to provide information is no longer applicable.

Process for changes in the data registered refined

Companies have an obligation to notify about any changes in the provided information immediately; only under certain conditions can changes wait until the end of the quarter or up to six months after the end of the financial year. The change in history remains visible for a certain period of time.

Stricter consequences

Along with the described changes, the catalog of administrative offenses for violation of disclosure obligations has also been tightened. Additionally, the right to enter the buildings of the German Federal Parliament and the participation in public hearings may depend on compliance with the duty to register.

Deadlines

The new regime of the LRA was approved by the legislator in October 2023 and was announced in the Federal Law Gazette on 18 January 2024. Thus, it will enter into force on 1 March 2024.

Migration of existing entries into the new regime has to be completed by 30 June 2024.

Click here to read the German version.