Lobbying Handbook CITY OF LOS ANGELES

CITY OF LOS ANGELES City Ethics Commission 201 North Los Angeles St. LA Mall - Suite 2 Los Angeles, CA 90012 (213) 847-0310 www.lacity.org/eth Lobbying Handbook

Table of Contents INTRODUCTION...iii I. QUALIFYING AS A LOBBYIST Who Qualifies as a Lobbyist?...1 Persons Exempt from the Municipal Lobbying Ordinance...5 Is My Employer Required To Register?...5 Who Qualifies as a Client?...6 What Clients Must Be Registered?...6 II. REGISTRATION How Do I Register?...8 Registration Requirements...8 Lobbyist at a Lobbying Firm...8 Independent Contractor/Sole Proprietor Lobbyist...9 In-House Lobbyist...10 Amendments...11 Who Files Quarterly Reporting Forms?...12 Attendance at Lobbyist Information Sessions is Mandatory...12 Registration Termination...12 III. QUARTERLY REPORTING Who Files Quarterly Reporting Forms?...13 What Do I Report?...13 Summary Page...13 Expenditures...14 Activity Expenses...14 Political Contributions...14 Payments from Clients...15 Payments from Candidates, Officeholders, Ballot Measure Committees...16 Payments from City Agencies...16 Agencies Lobbied on Behalf of Clients...16 In-House Lobbyists...16 Municipal Lobbying Interests...16 When are Quarterly Reports Due?...17 Filing My Quarterly Report...17 Who Qualifies as a Major Filer?...17 What Do Major Filers Report?...18

Table of Contents IV. LIMITS ON GIFTS TO CITY OFFICIALS III. QUARTERLY REPORTING What is a Gift?...19 Gifts are Limited...19 Gift Restrictions...19 Restrictions on Payments for Travel...20 V. POLITICAL CONTRIBUTION LIMITS What Are the Contribution Limits?...21 Cumulative Contribution Limits...21 Can I Contribute on Behalf of My Business?...22 Family Contributions...22 VI. POST-CITY SERVICE LOBBYING Compensated Lobbying is Limited...23 Personal and Substantial Involvement Ban...23 One Year Cooling Off Period...23 VII. RECORDKEEPING, COMPLIANCE, AUDITS, AND ENFORCEMENT What Are My Recordkeeping Responsibilities?...24 Can I Be Audited?...24 Violations of the Municipal Lobbying Ordinance...24

INTRODUCTION Since 1967, the City of Los Angeles Municipal Lobbying Ordinance ("Ordinance") has provided the public access to important information about lobbying efforts to influence City decisions. Significantly amended in 1994, the law now ensures meaningful public disclosure of the full range of financial relationships that exist between government decision-making and those who are paid to influence the process. As the agency established by the voters in 1991 to administer and enforce the City's ethics, campaign finance and lobbying laws, the City Ethics Commission ("Commission") has developed this guide to help you, an individual who lobbies Los Angeles City government, understand and comply with the requirements of the Municipal Lobbying Ordinance. In particular, this guide explains who qualifies to register as a lobbyist and what the registration process involves. It also highlights the kinds of lobbying information that must be reported each quarter. In addition, this guide summarizes other important information about restrictions on gift giving, political contributions and lobbying by former City officials and employees. The City's lobbyist registration and reporting requirements are important because they provide timely information to the public about lobbying activities aimed at influencing City decisions. Failure to register and report as required can result in enforcement action by the City Ethics Commission. The Commission is committed to effective education and training, and encourages you to contact us with any questions you may have about your registration or reporting obligations. WE RE HERE TO HELP We want to help you understand and comply with the law. The City Ethics Commission staff is available to advise you about the laws that the Commission administers and enforces. The Commission provides two types of aid: formal advice and informal assistance. Formal advice applies the law specifically to a particular set of facts provided by the requestor. Formal advice is always provided in writing, generally within 21 working days. While it offers general guidance to others, formal written advice gives you, the requestor, immunity from administrative penalties by the City Ethics Commission if you act in good faith based on that advice. More frequently, however, questions we receive can be answered informally over the telephone. Informal assistance may also be provided in writing if a written request for advice does not contain sufficient facts. (LAAC 24.1.1). For additional information, contact the City Ethics Commission's policy staff at (213) 847-0310 during regular business hours. iii

QUALIFYING AS A LOBBYIST Who Qualifies as a Lobbyist? Anyone, regardless of his or her training, education, occupation or professional title, may qualify as a lobbyist. Whether you are an attorney, a government affairs specialist, engineer, architect, or union representative, the Ordinance requires you to formally register as a lobbyist with the City Ethics Commission when you reach a certain threshold of activity and compensation within the same calendar quarter. (LAMC 48.02, LAMC 48.07). A. B. C. If, within the same calendar quarter, you: Engage in "lobbying activities," and Engage in at least one direct communication with a City official to attempt to influence "municipal legislation," and Receive or become entitled to receive $4,000 or more in compensation for your lobbying activities from all clients. Then, within ten days after the end of month in which you qualify, you must: Register with the City Ethics Commission Each qualification component is discussed more fully below. A. Engage in "lobbying activities." Only "lobbying activities" for which you are compensated count toward qualifying as a lobbyist. You engage in "lobbying activities" when you undertake the following (or similar) activities: Contact a City official through calls, letters, or public testimony at meetings. Draft statutes, resolutions, or regulations. 1

QUALIFYING AS A LOBBYIST Provide advice or recommending strategy to a client or others. Seek support or opposition from a third party. Seek editorial support or opposition from the news media. Attend or monitor a City meeting. Research the background and details of an issue or project. Gather information to support your position. (LAMC 48.02). B. Engage in at least one direct communication with a City official to attempt to influence "municipal legislation." "Municipal legislation" is a term that defines the kinds of City actions, which, if you seek to influence them, count for purposes of your registration and reporting requirements. It includes both legislative (i.e., an ordinance) and administrative (i.e., land use approval or police permit) matters that are either proposed or pending before any City agency or official. (A matter is pending when a City official has introduced a motion on an issue, and a matter is proposed when you urge a City official to introduce the motion.) In addition, the Ordinance exempts some matters from being considered "municipal legislation." (LAMC 48.02). "Municipal Legislation" does not include: Any request for advice or for an interpretation of laws, regulations or policies, or a direct response to an enforcement proceeding with the City Ethics Commission. Any ministerial action - action that involves no discretion by a City official or employee. A proceeding before the Civil Service Commission or the Employee Relations Board. Any action relating to the establishment, administration, or interpretation of a memorandum of understanding between a City agency and a recognized employee organization. However, "municipal legislation" does include any action relating to collective bargaining taken by the City Council, any of its committees or members (including the staffs of such members), or by the Mayor or his or her office. Lobbying these individuals on collective bargaining issues, therefore, does count toward qualifying as a lobbyist. Preparation or compilation of any radius map, vicinity map, plot plan, site plan, property owners or tenants list, photographs of property, proof of ownership or copy of lease, or neighbor signatures required to be submitted to the City Planning Department. 2

QUALIFYING AS A LOBBYIST To "attempt to influence" municipal legislation, you must have at least one direct communication (e.g., telephone, letter, or in-person) with a City official, appointee or employee during the calendar quarter. Direct communication also includes communication by someone acting on your behalf. Your efforts to "attempt to influence" include supporting, opposing, promoting, modifying or delaying any action on municipal legislation. (LAMC 48.02). C. Receive or become entitled to receive $4,000 or more in compensation for your lobbying activities from all clients. For purposes of registration, the compensation threshold is based on the cumulative compensation that you receive or become entitled to receive from all persons on whose behalf you attempt to influence municipal legislation. When the compensation you have earned in a calendar quarter for your municipal lobbying activities reaches $4,000 from any and all sources, you must register. (LAMC 48.02). Remember, while some issues cross jurisdictional boundaries (city, county, state), for purposes of the City's lobbying registration and disclosure requirements, you are only required to consider compensation earned for lobbying Los Angeles City government. 3

QUALIFYING AS A LOBBYIST Examples: Qualifying as a Lobbyist Example 1: Flora Carbon, a lobbyist for the Coalition for Clean Air ( CCA ), is lobbying the state and the City of Los Angeles to enact legislation requiring at least two individuals in every vehicle during rush hour. During the first calendar quarter, she spends 30 percent of her time lobbying the state, and 70 percent lobbying the City. For this period, Flora is entitled to receive $10,000 from the CCA for attempting to influence the outcome of this proposal. For purposes of the City's lobbyist registration threshold, Flora determines that she earned $3,000 for lobbying the state and $7,000 for lobbying the City during the quarter. Though Flora earns this compensation during the first quarter, she does not receive payment from the CCA until the second calendar quarter. The CCA is Flora's only client. Since Flora is entitled to receive $4,000 or more for lobbying the City during the first calendar quarter, she is required to register during the first quarter as a lobbyist with the City Ethics Commission. Flora should also contact the Fair Political Practices Commission about the state's lobbying regulations as they may apply to her regarding her lobbying of state decision-makers. Example 2: Stone Forest is an architect employed by Brick & Mortar Associates. As part of his job, he has appeared before the City Planning Commission to seek approval of various zoning changes for his firm's clients. In preparation for his appearances, he has performed research, written reports and communicated with department staff. His monthly salary is set at $5,000 and he does not receive bonuses or any other form of compensation. To determine if he qualifies and must register as a lobbyist, Stone must keep track of the time spent and the compensation earned for performing these lobbying activities. Stone determines that 25 percent of his time is spent performing lobbying activities to influence the outcome of the proposed zoning changes. Therefore, $1,250 of his monthly salary counts toward his lobbyist registration threshold. Earning only $3,750 during the calendar quarter for his lobbying activities, Stone does not qualify as a lobbyist since he does not meet the $4,000 compensation threshold. 4

QUALIFYING AS A LOBBYIST Persons Exempt from the Municipal Lobbying Ordinance The Municipal Lobbying Ordinance does not require the following persons to register as lobbyists (LAMC 48.03): Any person acting without compensation (other than reasonable travel reimbursement). Any person whose only activities in responding to a competitively bid Request for Proposal (RFP) are: - Submitting the written response to the RFP; - Participating in an oral interview as part of the RFP evaluation process; and - Negotiating the terms of the contract, if the contract is awarded. Any public official or government employee acting within his or her official capacity. Any newspaper, regularly published periodical, radio, or television station or network. Any Internal Revenue Code 501(c)(3) organization (and its employees) that receives federal, state, or local funding to represent indigent persons. These organizations' primary purpose must be to provide direct services to those persons, provided that those persons do not pay for the representation. Attempts to influence any City decision regarding City funding for these groups, outside of a publicly noticed meeting, however, are not exempted and count toward qualifying as a lobbyist. Is My Employer Required to Register? Your registration as a lobbyist may require the registration of your employer. Your affiliation with your employer will determine their need to register. If you are an owner, partner, shareholder, officer, or employee of an entity that receives payments to lobby on behalf of one or more municipal lobbying clients, the Ordinance defines that entity as a "lobbying firm." You must register as a lobbyist and your employer must register as a "lobbying firm." If you are an independent contractor or sole proprietor lobbyist who receives payments to lobby on behalf of one or more municipal lobbying clients, you must register both as a lobbyist and as a "lobbying firm." If you are an in-house lobbyist who is paid by your employer to provide municipal lobbying services solely on its behalf, you are a lobbyist affiliated with a "lobbyist employer." You must register as a lobbyist. However, your employer has no registration requirement. Registration procedures are covered starting on page 8. 5

QUALIFYING AS A LOBBYIST Who Qualifies as a Client? What Clients Must Be Registered? "Clients" are persons (i.e., a company, business, organization or individual) that compensate you or your firm to attempt to influence municipal legislation on their behalf. If someone pays you or your firm to lobby for another person, both the person who pays and the person on whose behalf you lobby are "clients." If you are an in-house lobbyist, your employer is your client. (LAMC 48.02). If you are employed by a "lobbying firm," the firm s clients are all persons: 1) from whom your firm receives, or becomes entitled to receive, at least $250 in payments in a calendar quarter for lobbying activities; and 2) on whose behalf the lobbying activities include at least one direct communication with a City official for the purpose of influencing municipal legislation. (LAMC 48.07). The following criteria determines whether a client must be registered: You or your lobbying firm engage in lobbying activities on behalf of the client in an attempt to influence a proposed or pending matter of municipal legislation, and You or your lobbying firm have at least one direct communication with a City official on behalf of the client, and You or your lobbying firm receive or become entitled to receive $250 from the client in a calendar quarter for performing lobbying activities. For example, if in a calendar quarter your firm engaged in research on possible modifications to a community plan, but no modification to that plan was yet proposed or pending and no direct communication occurred with City officials regarding the plan, the person on whose behalf your firm did the research would not need to be registered as a client for that period. If, however, your firm conducted research in connection with a pending proposal to modify the community plan, communicated directly with a City official, and received $250 for its work, your firm would be required to register that client. Please note that when a client pays your firm to lobby on behalf of a third party, your firm is also required to register the third party as a client. Important Note for Your Clients If your client attempts to influence municipal legislation apart from the lobbying activities you engage in on their behalf, your client should be aware of the City's "major filer" reporting requirement. A "major filer" is any person that makes payments or incurs expenditures totaling $5,000 or more during any calendar quarter for public relations, advertising or similar activities to influence municipal legislation. "Major filers" are not required to register, but they are required to disclose their lobbying-related expenditures on a Major Filer Quarterly Report (CEC Form 37). For more information about these requirements, see page 17. 6

QUALIFYING AS A LOBBYIST Examples: Client Registration Example 1 Tia Green is a sole proprietor lobbyist registered with the City Ethics Commission. She represents two property owners, ABC Land Company and XYZ Development, Inc., in obtaining Conditional Use Permits (CUP) for their development projects before the City Planning Commission. During the calendar quarter, Tia files applications with the Planning Department, meets with department staff and attends meetings of the Planning Commission. Tia is determining if she needs to register these clients with the City Ethics Commission. During the calendar quarter, Tia earns $200 in compensation for her municipal lobbying activities regarding ABC s CUP and $350 for her lobbying activities associated with XYZ's CUP. Because Tia earns more than $250 in compensation from XYZ, she is required to register them as a client with the City Ethics Commission. However, since she earns less than $250 in compensation from ABC, she does not need to register them. Example 2 O'Neil & Bryant, a registered lobbying firm, is hired by Up In Smoke Cigar Company to lobby the City Council on a proposed sales tax increase on cigars. During the calendar quarter, an O'Neil & Bryant lobbyist communicates with elected officials and makes appearances at City Council meetings. The firm s fee of $7,000 for representation of Up In Smoke is paid for by the Tobacco Industry. For purposes of client registration, O'Neil & Bryant must register both the Tobacco Industry and Up In Smoke Cigar Co. as separate clients since the compensation they receive exceeds the $250 compensation threshold. The Tobacco Industry must be registered because they compensate the lobbying firm for the purpose of influencing municipal legislation, and Up In Smoke must be registered since they are the entity on whose behalf the lobbying firm is attempting to influence municipal legislation. 7

REGISTRATION Once I Qualify as a Lobbyist, How Do I Register? To register as a lobbyist, there are three basic filing requirements: 1. Complete and sign the appropriate registration form(s). 2. File your form(s) on time with the City Ethics Commission. 3. Pay a registration fee. The registration process varies slightly depending on whether you are a lobbyist at a lobbying firm or an in-house lobbyist lobbying only on behalf of your employer. FORMS You may obtain the necessary registration forms and instructions by contacting the City Ethics Commission or by downloading the forms from the Commission's website at www.lacity.org/eth. Registration Requirements Lobbyist at a Lobbying Firm 1. Complete and Submit the Necessary Forms. CEC Form 30 - Lobbyist Registration Form. The CEC Form 30 requires you to sign a statement that you have read and understand the Lobbying Ordinance and to disclose other information including the City agencies that you expect to lobby. Remember to include the date you qualified as a lobbyist during the current calendar year. (LAMC 48.07 D). CEC Form 31 - Lobbying Firm Registration Form. This form identifies the firm s registered lobbyists and the clients for whom the firm will be providing municipal lobbying services. This form should be filed concurrently with the Lobbyist Registration Form. (LAMC 48.07 E). Letter of authorization. A letter of authorization must be submitted for each client that your firm is required to register (see page 5). The letter authorizes the lobbying firm to act on the client's behalf with respect to municipal lobbying. (LAMC 48.07 E 4 (e)). Client authorization letters must be renewed each calendar year. (For an example of a letter of authorization, see the Lobbying Firm Registration Form, CEC Form 31.) 8

REGISTRATION 2. File by the Deadline. Within 10 days after the end of the calendar month in which you qualify as a lobbyist, you and your employer must submit the appropriate registration forms to the City Ethics Commission. (LAMC 48.07 A). Forms are considered "filed" on the date they are postmarked or the date they arrive at the City Ethics Commission, whichever is earlier. (LAMC 48.06). Late filings or the failure to file could result in late filing penalties or enforcement action by the Commission. (LAMC 48.09 F). 3. Pay the Registration Fee There is a registration fee of $450 per lobbyist. There is no registration fee for the lobbying firm; however, there is a $75 fee for each client the lobbying firm registers. The lobbying firm must register those clients who meet the client registration threshold of $250 per calendar quarter (see page 5). If you qualify to register as a lobbyist in the fourth calendar quarter (after September 30), the registration fees are prorated to $337 per lobbyist and $56 per client. (LAMC 48.07 C). Registration Requirements Independent Contractor/Sole Proprietor Lobbyist 1. Complete and Submit the Necessary Forms. CEC Form 30 - Lobbyist Registration Form. The CEC Form 30 requires you to sign a statement that you have read and understand the Lobbying Ordinance and to disclose other information including the City agencies you expect to lobby. Remember to include the date you qualified as a lobbyist for the current calendar year. (LAMC 48.07 D). CEC Form 31 - Lobbying Firm Registration Form. This form identifies the firm s registered lobbyists and the clients for whom the firm will be providing municipal lobbying services. This form should be filed concurrently with the Lobbyist Registration Form. (LAMC 48.07 E). Letter of authorization. A letter of authorization must be submitted for each client that your firm is required to register (see page 5). The letter authorizes the lobbying firm to act on the client's behalf with respect to municipal lobbying. (LAMC 48.07 E 4 (e)). Client authorization letters 9

REGISTRATION must be renewed each calendar year. (For an example of a letter of authorization, see the Lobbying Firm Registration Form, CEC Form 31.) 2. File by the Deadline. Within 10 days after the end of the calendar month in which you qualify as a lobbyist, you must submit your registration forms to the City Ethics Commission. (LAMC 48.07 A). Forms are considered "filed" on the date they are postmarked, or the date they arrive at the City Ethics Commission, whichever is earlier. (LAMC 48.06). Late filings or the failure to file could result in late filing penalties or enforcement action by the Commission. (LAMC 48.09 F). 3. Pay the Registration Fee. There is a registration fee of $450 for the lobbyist and a $75 fee for every client you register. You are only required to register those clients who meet the client registration threshold of $250 in a calendar quarter (see page 5). If you qualify to register as a lobbyist the fourth calendar quarter (after September 30), the registration fees are prorated to $337 per lobbyist and $56 per client. (LAMC 48.07 C). Registration Requirements In-House Lobbyist 1. Complete and Submit the Appropriate Forms. CEC Form 30 - Lobbyist Registration Form. The CEC Form 30 requires you to sign a statement that you have read and understand the Lobbying Ordinance and to disclose other information including the City agencies you expect to lobby. Remember to include the date you qualified as a lobbyist for the current calendar year. (LAMC 48.07 D). Your employer ("lobbyist employer") is not required to register. Letter of Authorization. A letter of authorization from your lobbyist employer must be submitted. (LAMC 48.07 E 4). This letter authorizes you to represent your employer when you attempt to influence municipal legislation on their behalf. (For an example of a letter of authorization, see the Lobbying Firm Registration Form, CEC Form 31.) 10

REGISTRATION 2. File by the Deadline. Within 10 days after the end of the calendar month in which you qualify as a lobbyist, you must submit your registration form and letter of authorization to the City Ethics Commission. (LAMC 48.07 A). Forms are considered "filed" on the date they are postmarked, or on the date that they arrive at the City Ethics Commission, whichever is earlier. (LAMC 48.06). Late filings or the failure to file could result in late filing penalties or enforcement action by the Commission. (LAMC 48.09 F). 3. Pay the Registration Fee. There is a registration fee of $450 for each lobbyist and a $75 fee for the client (lobbyist employer). Please note that each lobbyist who registers as an in-house lobbyist must pay the $75 client fee, even if there are multiple in-house lobbyists for the same employer. If you qualify to register as a lobbyist in the fourth calendar quarter (after September 30), these registration fees are prorated to $337 per lobbyist and $56 per client. (LAMC 48.07 C). Amendments Once registered, should any changes occur in the information you provided on your registration form, use a blank registration form to submit the amended information indicating the effective date of the change. (LAMC 48.07.G). Lobbying Firms: Adding New Clients When your firm takes on a new client, you need to submit a new Lobbying Firm Registration Form (CEC Form 31) to report the new client, and pay the required client registration fee. All new clients must be registered within 10 calendar days. (LAMC 48.07 G). 11

REGISTRATION Who Files Quarterly Reporting Forms? Once registered, you, along with your lobbying firm or lobbyist employer, are required to file disclosure reports each calendar quarter that describe your municipal lobbying activities. The next section of this guide will cover the quarterly reporting requirements. Attendance at a Lobbyist Information Session is Mandatory All registered lobbyists must attend a lobbyist information session conducted by the City Ethics Commission. Lobbyist information sessions cover registration and quarterly reporting requirements, gift restrictions, recent Commission advice, and any updates to the law. Registered lobbyists are required to attend an information session at least once every two calendar years. If you are registering with the Commission for the first time, you are required to attend an information session within six months of your registration. Please contact the City Ethics Commission or visit our website to obtain information about scheduled lobbyist information sessions. (LAMC 48.07 I). When Does My Registration Terminate? All registrations terminate at the end of each calendar year. (LAMC 48.07 B). If you choose to terminate your registration at any other time during the year, you must complete and sign a Registration Termination Form - CEC Form 32, and file it with the City Ethics Commission within 20 days after ceasing all activity governed by the ordinance. This form is also used to terminate client registrations as well. ( LAMC 48.07 H ). 12

QUARTERLY REPORTING During each calendar quarter which you are registered as a lobbyist, you, along with your employer (lobbying firm or lobbyist employer), must file quarterly lobbying disclosure reports. (LAMC 48.08 A). Clients do not have a disclosure requirement of their own unless they qualify as a "Major Filer" (see page 16). Who Files Quarterly Reporting Forms? Lobbyist at a Lobbying Firm Lobbyist files: CEC Form 33 - Lobbyist Quarterly Report Lobbying Firm files: CEC Form 34 - Lobbying Firm Quarterly Report Independent Contractor/Sole Proprietor Lobbyist Lobbyist files: No filing requirement. Your quarterly reporting requirement is satisfied by filing a Lobbying Firm Quarterly Report (CEC Form 34) only. Lobbying Firm files: CEC Form 34 - Lobbying Firm Quarterly Report In-house Lobbyist at a Lobbyist Employer Lobbyist files: CEC Form 33 - Lobbyist Quarterly Report Lobbyist Employer files: CEC Form 35 - Lobbyist Employer Quarterly Report Major Filers Major Filer files: CEC Form 37 - Major Filer Quarterly Report What Do I Report? Detailed instructions for completing quarterly reporting forms appear throughout each of the forms. The following information provides general reporting requirements contained in each form. Please note the forms are not identical and the required information varies slightly. SUMMARY PAGE All quarterly reporting forms contain a summary page. This page summarizes information contained in the quarterly report. Even if no lobbying activity occurred during a calendar quarter and there is no other information to report, you must submit a signed summary page and indicate zeros where appropriate. Any activity or compensation reported on the summary page should have the corresponding schedule attached. 13

QUARTERLY REPORTING EXPENDITURES Expenditures are reported by lobbying firms and lobbyist employers and are categorized into three areas. Total payments to lobbyists. Lobbying firms and lobbyist employers must disclose the total payments made to all their registered lobbyist(s) for performing lobbying activities on items of municipal legislation in the City of Los Angeles. Total payments to non-lobbyist employees. Lobbying firms and lobbyist employers must also disclose total payments made to all employees who are not registered as lobbyists, but who perform lobbying activities. These employees do not qualify as lobbyists, as defined in the Ordinance, and therefore are not required to register; however, they may perform lobbying activities nonetheless. Reportable payments are for only those lobbying activities performed on items of municipal legislation in the City. Total other expenses. Lobbying firms and lobbyist employers must disclose all other expenditures attributable to attempting to influence municipal legislation other than overhead. Any expenditure of $5,000 or more must be itemized on the "Other Expenditure" schedule of the quarterly report. Examples of these types of expenditure include: printing of a brochure or pamphlet, distribution/postage, media and advertising, research and production of a study or report, other miscellaneous costs associated with influencing municipal legislation. ACTIVITY EXPENSES An activity expense is any payment or expenditure that a lobbyist, lobbying firm, or lobbyist employer makes that directly benefits a City official or member of his or her immediate family (spouse and dependent children). Activity expenses include payments for food, beverage, meals, or gifts for birthdays, anniversaries, congratulations, holidays, special occasions, tickets to political or other fundraising events, etc. Activity expenses do not include expenditures for postage, messenger services, photocopying, faxes, etc. POLITICAL CONTRIBUTIONS All lobbyists, lobbying firms, and lobbyist employers must disclose and itemize any 14

QUARTERLY REPORTING political contribution totaling $100 or more that they make, deliver or act as an intermediary for, to any elected City officer, City candidate, or any controlled committee of a City officeholder or candidate. You "deliver" a contribution when you mail or otherwise cause it to be delivered to the recipient. A person is an "intermediary" for a contribution if the recipient would consider him or her to be the contributor if he or she did not disclose the true source of the contribution. Reportable contributions include those given to any elected City official, regardless of whether that official is seeking re-election or election to office in another jurisdiction. In addition, reportable contributions include contributions to officeholder accounts, and to any ballot measure committee that is controlled by a City officer or candidate. Quarterly Report Filing Tip: When reporting political contributions, each contribution must be itemized separately, indicating the name of the contributor and whether the contribution was one you or your firm contributed, delivered, or acted as an intermediary for. PAYMENTS FROM CLIENTS Lobbying firms must identify their registered clients and report the compensation they received from them for performing lobbying activities during the quarter. In addition, for each client, the firm must disclose the City agency lobbied, and the matter(s) it sought to influence. Firms should be as specific as possible in describing the matters they sought to influence and, if possible, include the council file, ordinance, or department case file number, project name, address, etc., for each item of municipal legislation. Payments should be reported in the calendar quarter in which they are received. If the firm did not receive any payments from a client during the reporting period, the client should be disclosed, and the compensation amount reported is zero. Quarterly Report Filing Tip: Be consistent with client names and addresses. When reporting clients on your quarterly report, use the same client name and address used on the registration form. Make sure all clients reported on the quarterly report are registered. 15

QUARTERLY REPORTING PAYMENTS FROM CITY CANDIDATES, OFFICEHOLDERS AND BALLOT MEASURE COMMITTEES Lobbyists and lobbying firms must disclose any compensation or payments they receive in a calendar quarter for services provided to a City candidate or officeholder. These services may include consulting or professional services (e.g., campaign fundraising) provided to a campaign committee of a candidate for City office, an officeholder committee or a ballot measure committee controlled by either an officeholder or City candidate. PAYMENTS FROM CITY AGENCIES* Lobbyists and lobbying firms must disclose any compensation or payments they receive in a calendar quarter for services provided to the City or one of its agencies. For example, a law firm that is also registered as a lobbying firm would need to report payments it receives from the City or any of its agencies for providing legal representation or services. Note: If you are an independent contractor/sole proprietor lobbyist, you must report these payments whether you provided them individually or whether a business in which you own 10 percent or more provided the services. *A City agency includes any department, bureau, office, board, commission, or other agency of the City of Los Angeles, including the City's Community Redevelopment Agency (CRA) and the Los Angeles City Housing Authority. AGENCIES LOBBIED ON BEHALF OF CLIENTS This schedule is used by lobbyists to report each municipal lobbying client they represented and the City agencies lobbied during the calendar quarter. IN-HOUSE LOBBYISTS This schedule is used by lobbyist employers to identify each of their in-house employees who are registered lobbyists. MUNICIPAL LOBBYING INTERESTS This schedule is used by lobbyist employers to report each matter of "municipal legislation" that their in-house lobbyists attempted to influence during the calendar quarter. When describing items of municipal legislation, include the council file number, ordinance numbers, project names and addresses, or department case file numbers. 16

QUARTERLY REPORTING When Are Quarterly Reports Due? Quarterly lobbying reports must be filed no later than the dates shown below for each calendar quarter of the year. A quarterly report is considered "filed" on the date of the postmark, or on the date of delivery to the City Ethics Commission, whichever is earlier. (LAMC 48.08 A). Quarter Filing Deadline January 1 - March 31 April 30 April 1 - June 30 July 31 July 1 - September 30 October 31 October 1 - December 31 January 31 How Do I File My Quarterly Reports? Sign and submit the original and one copy of each report that is required to be filed with the Commission. (LAMC 48.06). Facsimilies are not acceptable. Quarterly Report Filing Tip: person sign each report filed. Be sure to have the authorized All of the City Ethics Commission's lobbying forms may be obtained from the Commission office or downloaded from the Commission's website at www.lacity.org/eth. Who Qualifies As a Major Filer? Any person or entity that incurs or makes expenditures totaling $5,000 or more in a calendar quarter for the purpose of attempting to influence municipal legislation must file a report with the City Ethics Commission disclosing that expenditure. These expenditures include public relations, media relations, advertising, public outreach, research, investigation, reports, analyses, studies, or similar activities. (LAMC 48.02). 17

QUARTERLY REPORTING What Do Major Filers Report? Example: Major Filers CEC Form 37 - Major Filer Quarterly Report identifies the major filer, describes the item of "municipal legislation" attempted to be influenced and discloses the amount spent. (LAMC 48.08 E). It is important to note that this reporting requirement applies only to expenditures made to influence municipal legislation that would not otherwise be reported by a lobbying firm or lobbyist employer. If an expenditure is reported by a lobbying firm or lobbyist employer on their quarterly report, a Major Filer Quarterly Report does not need to be filed with the City Ethics Commission. Note: Expenditures and payments for regularly published newsletters or other routine communications between an organization and its members do not count for the purpose of this reporting requirement. The Palm Tree Growers Association (Association) is a group comprised of Southern California nurseries that promote the use of palm trees in landscape design. They are not a registered client of a lobbying firm and do not have an employee that qualifies as an in-house lobbyist. The Department of Recreation and Parks is currently considering a master landscape design plan for all City parks. This plan will dictate the types of plants and trees to be planted in all City parks. The Association is very interested in the landscape design plan and is hopeful that palm trees will be included. In seeking public support for the use of palm trees in the Plan, the Association spends $3,000 in a calendar quarter on billboards throughout the City promoting the use of palm trees in City parks and their symbolism of Southern California. In addition, the Association also spends $3,000 during the same calendar quarter, to print and distribute flyers throughout the City urging citizens to contact City officials supporting the use of palm trees in the landscape design plan. Because the Association incurred expenditures of $5,000 or more in a calendar quarter to influence municipal legislation, they are required to file a Major Filer Quarterly Report and report these expenditures. NOTE: If the Association was represented by a lobbying firm, and the firm made the above expenditures on the Associations behalf, the lobbying firm would report the expenditures and the Association would have no filing requirement. 18

IMPORTANT INFORMATION ABOUT GIFTS TO CITY OFFICIALS What is a Gift? A gift is anything for which consideration of equal or greater value is not received, including a rebate or discount, unless the rebate or discount is made in the regular course of business to members of the public without regard to official status. In other words, a gift is anything you give to a City official, appointee, member, commissioner, employee or consultant of a City agency, for which you do not receive something of equal value in return. Gifts include, but are not limited to, meals, gift baskets and tickets to sporting and cultural events. (LAMC 49.5.2). The Governmental Ethics Ordinance and state law exempt certain items from the definition of gifts, including tickets to political fundraisers and informational material valued at less than $250. For further information, see the Governmental Ethics Ordinance (LAMC 49.5.10) located on our website. Gifts Are Limited City law restricts the type and amount of gifts that lobbyists, lobbying firms and lobbyist employers may give to a City official during a calendar year. (LAMC 49.5.10). Lobbyists, lobbying firms and lobbyist employers must disclose any gift made during a calendar quarter to any City official as an "activity expense" on their quarter lobbying report. (LAMC 48.08). Gift Restrictions If you are a registered lobbyist or lobbying firm, you may not give more than $25 in gifts during a calendar year to any high-level City official (see box on page 20) - including all elected officials -- or to any other City official of any agency that you lobby. Please note that your clients (including a Lobbyist Employer that has inhouse lobbyist(s) paid to provide lobbying services exclusively on the employer s behalf), may not give more than $100 in gifts in a calendar year to any highlevel official or to any other official of an agency that you lobby. In addition, under City law, no lobbyist or lobbying firm may act as an agent or intermediary for the making or arranging of any gifts from any other person. For more information on the City's gift restrictions, please see the City Ethics Commission's Limits on Giving Gifts to Los Angeles City Officials brochure on our website at www.lacity.org/eth. 19

IMPORTANT INFORMATION ABOUT GIFTS TO CITY OFFICIALS Who are "High level Officials"? Los Angeles Municipal Code Section 49.5.2 defines a "high level official" as: In the Mayor's office: the Mayor, the Chief of Staff to the Mayor, the Assistant Chief of Staff to the Mayor, each Deputy Mayor, and the Special Assistant to the Mayor for Legal Affairs, In the City Attorney's and Controller's Offices: the City Attorney, the Controller, the executive Assistant City Attorney, each Chief Assistant City Attorney, each Senior Counsel, the Chief Deputy Controller, Administrative Coordinator to the Controller, In Council Offices: the members of the City Council, two members of the staff of each City Council Office possessing the most decision-making responsibilities relative to governmental policy as designated by each member of the Council, In addition, "high level official" means any other member of the staff of an elected City officer possessing significant decision-making responsibilities relative to governmental policy as may be designated in writing to the City Ethics Commission by the elected City Officer. Others: the members of the City Ethics Commission, the Executive Officer of the Ethics Commission, the members of the Board of Public Works, the members of the City Planning Commission, the Director of Planning, the Director of the Office of Administrative and Research Services, and each Assistant Director, the Chief Legislative Analyst, each Assistant Chief Legislative Analyst, the Treasurer, and the City Clerk. Restrictions of Payments for Travel No registered lobbyist, lobbying firm or lobbyist employer, who is a restricted source to a City official, may offer or make any advance or reimbursement for travel expenses to that official. (LAMC 49.5.10 B). In addition, no lobbyist or lobbying firm may act as an agent or intermediary for any travel payment to a City official for someone else. 20

IMPORTANT INFORMATION ABOUT POLITICAL CONTRIBUTIONS Political contributions to City candidates and officeholders from lobbyists, lobbying firms, and lobbyist employers are allowed under City law and subject to the same political contribution limits and restrictions that apply to other contributors. What are the Contribution Limits? Campaign Contributions City law limits contributions to a City candidate's campaign committee to the following amounts: (Charter 470 (c)). Mayor - $1,000 per person per election City Attorney - $1,000 per person per election City Controller - $1,000 per person per election City Council - $500 per person per election Officeholder Account Contributions Contribution limits also apply to contributions to an officeholder account. A officeholder account committee is a committee established by an elected officeholder that is funded through private contributions to make expenditures that serve, assist, or communicate with constituents. City law limits contributions to these accounts to the following amounts: (LAMC 49.7.12 A 4). Mayor - $1,000 per person per fiscal year City Attorney - $1,000 per person per fiscal year City Controller - $1,000 per person per fiscal year City Council - $500 per person per fiscal year A fiscal year is the period beginning July 1 and ending June 30. Cumulative Contribution Limits Also Apply City law also places a cumulative limit on the total amount of contributions a person may make to all City candidates for Mayor, City Attorney, Controller and City Council combined. The total allowed for each election is determined by the number of offices on the ballot in any given election. The formula is ($500 x the number of Council seats) + ($1,000 x the number of Citywide offices). (Charter 470 (c) (6)). In the 2001 primary election, for instance, there are eight Council seats and three Citywide seats on the ballot. Therefore, the total amount any person may contribute to all candidates in that election is $7,000. 21

IMPORTANT INFORMATION ABOUT POLITICAL CONTRIBUTIONS Can I Contribute on Behalf of my Business? Under certain circumstances, contributions from an individual and business must be aggregated - - meaning the two contributions are considered to be from one person subject to the contribution limits. Your personal contribution will be aggregated with a contribution made by your business if you: Are a sole proprietor of the business; Own a 33 percent or greater share of a partnership; or Own 51 percent or more of a corporation. Additionally, contributions from two entities are subject to aggregation if they: Share a majority of members of the board of directors; Share two or more officers; Are owned or controlled by the same majority shareholder(s); or Are in a parent-subsidiary relationship. (LAMC 49.7.2). Example: You own 33 percent of your lobbying firm, which is a partnership. You give a City Council Candidate $300 from your personal checking account and you make a separate contribution from your lobbying firm's account. The contribution from your lobbying firm account may not exceed $200 because these two contributions are aggregated, and the contribution limit is $500 per contributor for a City Council candidate. Are My Family s Contributions Aggregated With Mine? Important Note Contributions by a husband and wife are not aggregated. Contributions from children under 18 are treated as contributions attributed equally to each parent or guardian. (LAMC 49.7.3). For more information on contributions, please see the City Ethics Commission's Information for Contributors brochure on our website at www.lacity.org/eth. An independent expenditure is a payment made in connection with a communication which supports or opposes a clearly identified candidate or the qualification, passage or defeat of a clearly identified measure, or urges a particular result in an election but is not made to, in cooperation with, or at the behest of the affected candidate or committee. If you make an independent expenditure, you may have additional reporting requirements. Call the City Ethics Commission for details. 22

IMPORTANT INFORMATION ON POST-CITY SERVICE LOBBYING Compensated Lobbying Is Limited City law restricts compensated lobbying activities by former City employees and officials after they leave City service. (LAMC 49.5.11). If you formerly served as a City employee or appointee, you are subject to City laws that restrict your ability to communicate with City officials and to engage in other lobbying activities on behalf of others if you receive compensation to do so. The scope of the restrictions depends upon your former City position and, again, affects only those "post-city" activities for which you are compensated. City law does not restrict the type of employment you may acquire after leaving City service. If you or your firm are contemplating hiring a former City official, you should also be aware that former City officials are subject to these restrictions. Post-City Service Restrictions for Former City Employees & Appointees "Personal and Substantial Involvement" Ban Former City employees and appointees may not, for compensation, attempt to influence any pending matter on another's behalf in which that employee or appointee was "personally and substantially" involved as a City official or employee. "Personal and substantial" involvement in a matter can include participation in making a decision or recommendation, rendering advice, assisting or consulting with others in connection with an appearance, or communication on any matter. In addition, former employees or appointees who had "personal and substantial" involvement in any matter may not advise, assist, or consult with others concerning an appearance or communication on that matter so long as the matter remains pending. (LAMC 49.5.11 A,B). One-Year Cooling Off Period All former City officials must observe a one-year ban on attempting to influence, for compensation, any matter pending before his or her former agency. For that one year, however, while you may not involve yourself in discussions with any staff or officials of your former agency regarding any pending matter, you may assist and advise others who communicate with your former agency so long as the matter is not one in which you had "personal and substantial" involvement as described above. You should be aware, however, that former "high-level" officials must observe a one-year cooling off period before attempting to influence any City agency for compensation. (LAMC 49.5.11 D, E). For more information on post-city service lobbying restrictions, please see the City Ethics Commission's Guide to Restrictions on Post-City Service Lobbying Activities brochure on the Commission's website at www.lacity.org/eth. 23