By Kirsty Needham State Political Editor
Political lobbyists who breach the rules will be placed on a public watchlist under a system to start on Monday in NSW.
A memo from Premier Mike Baird sent to public servants on Friday said the new regime meant special precaution must be used when meeting any individual placed on the lobbyist watch list.
From Monday, the NSW Electoral Commission becomes the independent regulator of lobbyists, monitoring a code of conduct.
Third-party lobbyists and any organisation or individual seeking to influence government policy, must meet new ethical standards, which include disclosing in advance of a meeting the matter to be discussed and whether they have a financial interest.
Mr Baird said in May that the changes would "nail shut the back door to government".
The legislation had been aimed at restoring public confidence amid the long-running Independent Commission Against Corruption inquiry.
Former premier Barry O'Farrell had earlier moved to ban political party officials from acting as registered third-party lobbyists.
The code says third-party lobbyists must not exaggerate or misrepresent their access to government or political parties, and separate their political involvement from lobbying activity.
Until now, breaches were investigated by the head of the premier's department. Earlier this year, the then Liberal State executive member Joe Tannous escaped sanction after being found to have breached the code through his work with lobbying firm 1st State.
From Monday, the Electoral Commission will investigate breaches and apply sanctions, which include being removed from the register for third-party lobbyists, or placed on the watch list for all lobbyists. The watch list will be published on a public website.