City Government Responsibility, Lobbying and Ethics Reform Act

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1 City Government Responsibility, Lobbying and Ethics Reform Act Proposal 1: Prohibit campaign contributions from registered City lobbyists and lobbying firms to City officials and candidates they are registered to lobby. City law does not currently prohibit contributions from registered lobbyists, lobbying firms or lobbyist employers, though the City s lobbying ordinance requires disclosure of campaign contributions by lobbying entities on their quarterly lobbying reports. (Muni. Code sections 48.08(B)(6) [lobbyist reports], 48.08(C)(9) [lobbying firm reports] & [24-hour disclosure of contributions of $7,000 or more in preceding 12 months].) The City Charter would be amended to prohibit City officials and City candidates from receiving contributions from City lobbyists and lobbying firms registered to lobby that official, and to prohibit lobbyists and lobbying firms from making contributions to candidates for City offices that the lobbying entity is registered to lobby. This proposal would make the City s rules regarding lobbyist contributions match those under Los Angeles County and state law. (See L.A. County Code section ; Cal. Govt. Code section ) Proposal 2: Prohibit registered City lobbyists from sitting on City boards and commissions and prohibit City Commissioners and Board members from lobbying City officials. City law currently prohibits City commissioners and board members from being paid to lobby City officials. (Muni. Code section (J).) However, registered City lobbyists are still eligible for appointment to City boards and commissions under current law. Current City law only prohibits them from engaging in lobbying activities while they serve and relies on the City Ethics Commission to enforce the rules. The Charter would be amended to strengthen City law by prohibiting anyone who is required to register as a City lobbyist from qualifying for appointment to boards and commissions. 1

2 Proposal 3: Limiting City Council members to three 4-year terms in office. The Charter limits the Mayor, City Attorney, Controller and Councilmember to two 4-year terms. (Section 206.) The current limit does not include any unexpired term to which an official is appointed or elected, provided that the remainder of the term is less than one-half of the full term. The Charter would be amended to limit Councilmembers to three four-year terms. The term limit would retain existing language excluding any unexpired term to which an official is appointed or elected, provided that the remainder of the term is less than onehalf of the full term. (Further consideration of limiting the City Attorney and/or Controller to three 4- year terms as well may be warranted.) Proposal 4: Prohibit gifts from registered City lobbyists and lobbying firms to City officials and City employees they are registered to lobby. City law currently limits gifts to City officials from registered City lobbyists and lobbying firms (e.g., lunches, gift baskets, tickets to sporting events, etc.) to $25 in a calendar year, provided that the lobbyist or lobbying firm is a restricted source to the City official. Lobbyists and lobbying firms are always restricted sources to the Mayor, Councilmembers and their key staff, but they only qualify as a restricted source to appointed City Commissioners, or other City officials, when they lobby their agency, board, department, etc. (Muni. Code sections [definitions of restricted source, high level filer, and high level official ] & (A)(4).) The Municipal Code would be amended to completely prohibit gifts from registered City lobbyists and lobbying firms to City officials to whom they are a restricted source. The new law would always apply to gifts from lobbyists and lobbying firms to City elected officials and their key staff, and would also apply to gifts to commissioners, board members, consultants of a City agency, and City employees required to file a Statement of Economic Interests (FPPC Form 700), if the lobbyist or lobbying firm lobbies that office, agency or department. 2

3 Proposal 5: Impose stricter lobbyist registration requirements for potential City lobbyists and lobbying firms. Under existing City law, individuals who receive or earn $4,000 or more in compensation during a calendar quarter for lobbying activities (e.g., contacts with City officials, drafting ordinances, providing advice or recommending strategy to clients, background research, coalition building or monitoring City hearings, etc.), and who have at least one lobbying contact with a City official, are required to register as a City lobbyist. (Muni. Code section [definition of lobbyist & lobbying activities ].) Entities that receive $4,000 or more in compensation during a calendar quarter for lobbying activities, and have at least one employee or partner who qualifies as lobbyist, must register as a lobbying firm. (Muni. Code section [definition of lobbying firm ].) These registration thresholds have resulted in inconsistent compliance because consulting firms, nonprofits, labor unions and businesses often rely on varying approximations to determine whether they have met the $4,000 threshold because City law does not provide any standard method for allocating salary or other compensation to lobbying activity. By simply estimating the compensation attributable to lobbying activity, many individuals and entities can evade the registration requirements. The Municipal Code would be amended to impose stricter and clearer registration requirements for potential lobbyists and lobbying firms by amending the definition of lobbyist to require individuals to register when they spend 30 or more compensated hours in any 3- month period (i.e., not just during an arbitrary calendar quarter) on lobbying activities, as currently defined under the law, and have at least one lobbying contact with a City official. This proposal would make City law match the threshold in the Los Angeles Unified School District s newly revised Lobbying Disclosure Code, which drew from a study of best practices employed by 30 lobbying programs nationwide. Lobbying firms would be required to register with the City when they receive $1,000 in any 3-month period for lobbying activities, and at least one employee or partner qualifies as a lobbyist. The registration requirements for lobbyists employers any entity other than a lobbying firm, that employs a lobbyist in-house to lobby on its behalf would remain the same. (Muni. Code section [definition of lobbyist employer ].) These stricter registration thresholds would ensure that all individuals and entities who are paid to lobby City officials are subject to the contribution, gift and Commission bans proposed above. 3

4 Proposal 6: Require compulsory bi-annual ethics training for all City elected officials, appointed commissioners and board members, certain employees and City lobbyists. Mayor Villaraigosa s Ethics in Government Directive (No ), issued on July 5, 2005, requires City Commissioners, Board members, City agency and department directors and administrators, general managers, and the Mayor s staff to attend annual ethics training conducted by the City Ethics Commission. Also, City law currently requires registered lobbyists to attend biannual ethics training conducted by the Ethics Commission. (Muni. Code section 48.07(I).) The Municipal Code would be amended to require compulsory biannual ethics training, conducted by the City Ethics Commission, for all City elected officials, appointed City Commissioners and Board members, and City employees that file a Statement of Economic Interests (Form 700). 4

5 Proposal 7: Two-year revolving door lobbying ban for former City officials. City law currently bans elected officials, members of the Ethics Commission and high-level City employees from lobbying any City agency for one year after leaving City service and bans other City officials and employees from lobbying their own agency or department for one year. (Muni. Code section ) A new restriction on post-service lobbying activities by local officials under state law also took effect on July 1, (Cal. Govt. Code section ) This new statutory requirement, like the current City law, prohibits local elected officials and city managers from lobbying City agencies for one-year, but also expressly allows local governments to pass stricter post-service lobbying restrictions. The Municipal Code would be amended to prohibit former elected City officials, members of the City Ethics Commission and high level employees and officials from lobbying any City agency or department for two years after leaving City service, and would be amended to prohibit all other former City employees and officials from lobbying their former City agency or department for two years after leaving City service. The law would apply only to City officials leaving City service after the effective date of the ordinance. 5

6 Proposal 8: Clarify disclosure requirements for independent expenditures supporting or opposing City candidates and ballot measures. Existing disclosure and disclaimer rules for independent expenditures supporting or opposing City candidates are scattered throughout City and state law, and are often confusing or contradictory. (Muni. Code section ; Cal. Govt. Code sections & ) Current law requires all independent expenditures of $1,000 or more to be disclosed in a special report filed within 24 hour. Current law also requires individuals making over $10,000 of independent expenditures to file up to three separate Major Donor campaign reports disclosing their other contributions and expenditures, but does not clearly indicate what filing deadlines apply and what timeframe the report should cover. These complicated and contradictory rules have resulted in inconsistent compliance and unreliable information to the public. The Municipal Code would be amended to strengthen and clarify the reporting requirements for independent expenditures to replace current rules with a strict requirement that individuals and PACs must disclose all independent expenditures totaling $1,000 or more in support or opposition to a City candidate or measure on the ballot within 24 hours. The report would now also disclose all of the individual s or PAC s contributions to City candidates, City ballot measures and City PACs during the calendar year. City PACs would also be required to disclose the contributions which they have received. These stricter and clearer disclosure and disclaimer rules will give the public more immediate and useful information. 6

7 Proposal 9: Clarify existing disclaimer requirements for campaign communications. Existing disclaimer requirements are scattered throughout the Charter and Municipal Code, with many unaddressed requirements left subject to state law. The Charter currently requires independent expenditure mailings and TV advertisements to indicate that they were not authorized by any candidate or committee, but does not apply to prerecorded telephone calls, websites, or other campaign paraphernalia because those communications are not published, displayed or broadcast. (Charter section 470(l).) The Municipal Code requires PACs to disclose their largest contributors on independent expenditure mailings and TV advertisements, but arguably not telephone calls or yard signs. (Muni. Code section ) The result of these inconsistent and contradictory rules has been the creation of inadvertent loopholes for different types of campaign communications. The disclaimer requirements would be moved from the Charter to the Municipal Code. All campaign communications including mailings or s of 200 or more, websites, banner ads and other forms of paid advertising on the internet, television and radio ads, live and pre-recorded telephone calls made to 200 or more recipients, yard and street signs, billboards and any other printed campaign materials, etc. would be required to print or display the words paid for by (or on behalf of for telephone calls) immediately followed by the name and address of the candidate or committee paying for the communication, in a clear and conspicuous typeface or a clearly audible manner. All campaign communications funded by independent expenditures would also be required to print or display: Not authorized by any candidate or committee controlled by a candidate. Campaign communications funded by independent expenditures would retain existing requirements to disclose the largest contributors (of $25,000 or more) to PACs funding the communication. 7

8 Proposal 10: Require potential City contractors to verify that they will comply with the City s lobbying law. The current enforcement provisions of the City s lobbying ordinance provide for audits by the City Ethics Commission in addition to criminal, civil and administrative penalties. (Muni. Code section ) In addition to these existing enforcement procedures, individuals and entities which bid on City contracts will be required to certify that they will comply with lobbyist registration and reporting requirements. 8