In modern society, lobbying has become an indispensable factor in public policy making, and consequently an indispensable part of the democratic process.
In order to demystify the issue of lobbying and eliminate negative connotations around lobbying activities, it was necessary, in the framework of legislative activities, to provide a comprehensive insight into this area and to set clear rules.
An important step forward in the development of anti-corruption policy and preventive action is the adoption of the Lobbying Act, which was adopted by the Croatian Parliament on 14 March 2024. Croatian legislation now regulates lobbying for the first time as a legal and legitimate activity with clear principles, rights, obligations and sanctions in line with international standards, guidelines and recommendations of GRECO and the OECD, as well as the EU Transparency Register.
The Lobbying Act is part of the activities implemented by the Ministry of Justice, Public Administration and Digital Transformation in the framework of the Anti-Corruption Strategy 2021-2030.
Lobbying and lobbyists
By legal definition, lobbying is any form of oral or written communication to a lobbied person as part of a structured and organised promotion, advocacy or representation of specific interests or the transmission of information relating to public decision-making for the purpose of pursuing the interests of the beneficiaries of lobbying.
Public decision-making means the preparation, development and adoption of laws, other regulations or general acts as well as other strategic or planning documents by legislative or executive authorities, state administration bodies, other state bodies, bodies of local or regional self-government units, including their administrative bodies, or by other legal persons and bodies vested with public powers.
It is therefore about influencing political decision-makers to support specific interests. Lobbying may involve communicating with politicians, officials and other persons involved in the decision-making process to convey information, exert pressure or advocate for specific policies or a particular interest.
There are activities in public and political life that are not considered lobbying. Such activities are acknowledged by the law as exceptions. They include, for example, public consultations, referendums, petitions or citizens’ initiatives, various forms of public communication, disclosure of information, views and opinions in the media, and various forms of social and other dialogue.
Lobbyists may be natural or legal persons, provided that they are registered in the Register of Lobbyists, maintained by the Commission for the Resolution of Conflicts of Interest.
The Lobbying Act envisages three groups of lobbyists - those lobbying on behalf of the beneficiaries of lobbying, including consultant lobbyists and professional lobbyists, those lobbying on behalf of their employer, and those representing professional, business or other sectoral interests, including professional, sports, economic and interest associations, non-governmental organisations and civil society organisations.
A lobbyist’s area of activity may cover different sectors or be focused on specific policy topics.
Register of Lobbyists and strengthening the role of the Commission for the Resolution of Conflicts of Interest
The Lobbying Act established a Register of Lobbyists, which will be maintained electronically by the Commission for the Resolution of Conflicts of Interest. Without registration in the Register of Lobbyists, it will not be possible to engage in lobbying activities, regardless of whether lobbyists receive reimbursement or not.
The Register will be public.
The Commission for the Resolution of Conflicts of Interest has been given an important role of the controller and the body responsible for giving opinions to lobbied persons who address the Commission in case of doubt whether specific conduct towards them constitutes lobbying.
Unauthorised lobbying activities i.e. unethical practices of lobbyists are subject to appropriate measures i.e. sanctions.
Measures for violating the provisions of the Act will be imposed by the Commission for the Resolution of Conflicts of Interest, while misdemeanour sanctions will be imposed by the court in misdemeanour proceedings.
Lobbyists are obligated to submit an annual lobbyist activity report to the Commission by 31 March of the current year for the previous year. The report is to be submitted electronically, on the prescribed form.
This competence further strengthens the role of the Commission as an independent anti-corruption body.
Sanctions for unauthorised and unethical lobbying practices
The Lobbying Act also prescribes unauthorised lobbying activities, i.e. unethical practices of lobbyists for which appropriate measures or sanctions are applied.
For a period of 18 months upon termination of office or service, a lobbied person is prohibited from lobbying in relation to the legislative or executive authority, state administration body or body of a local or regional self-government unit, including its administrative bodies, or other legal person or body vested with public powers in which they held a public office or served, - the ‘cooling off’ period.
Sanctions envisaged by the law include a written warning, a ban on lobbying for a limited period of time, a pecuniary sanction and removal from the Register of Lobbyists.
Importance and challenges of lobbying
While lobbying is often regarded in a negative context, it is an important part of the democratic process. Because of its potential to influence political decisions, within a well-established legal framework, lobbying can enable different interest groups to express their views and contribute to the public interest.
It is legitimate and reasonable for individuals and organisations to want to influence decisions that can greatly affect them. The state, in turn, gets access to lobbyists’ knowledge, experiences and perspectives on possible ways to resolve an issue. Lobbying can provide decision-makers with valuable insights, information, policy prospects and dialogue around different policy options. This role of lobbying is important given the complexity of public policies and decision-making in a state and can make a wide impact on political processes.
Evidence-based lobbying and thorough and detailed research and analysis can enhance the quality of decision-making. On the other hand, the potential harmfulness of these effects to the public interest, especially when disguised, is the main reason for the efforts to regulate lobbying by law.
In the overall process, it is important to ensure transparency of lobbying, as well as maintain a balance between private interests and the public interest, and the new Lobbying Act aims to ensure these values.
The Lobbying Act is entering into force on 1 October 2024.
The official text of the Lobbying Act (in Croatian) is available
here.
A provisional translation of the Act into English is avaliable
here.
