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SR 10-25-2022 10D City Council Report City Council Meeting: October 25, 2022 Agenda Item: 10.D 1 of 4 To: Mayor and City Council From: Douglas Sloan, City Attorney, City Attorney's Office, Administration Subject: Introduction and First Reading of an Ordinance Amending Santa Monica Municipal Code Sections 4.85.010 and 4.85.015 Related to Lobbying Activity and Participation of Lobbyists on City of Santa Monica Boards and Commissions Recommended Action Staff recommends that the City Council introduce for first reading the attached ordinance, which does the following: 1. Amends Santa Monica Municipal Code Section 4.85.010 to further clarify and define “lobbying activity,” with a financial threshold, with certain exceptions; 2. Adds Section 4.85.015 to prohibit any individual from serving on a City board, commission, task force, or advisory board if that individual is currently registered as a lobbyist in the City of Santa Monica or registered as a lobbyist in the two years prior to appointment. Executive Summary At its July 13, 2021, meeting, Council directed staff to return with a proposed ordinance, similar to that in place in Beverly Hills, and in particular that: (1) more precisely defines what constitutes a lobbyist/legislative advocate; (2) precludes any individual who in the prior two years has been acting as a lobbyist/legislative advocate from being appointed to a board, commission, or task force; and (3) precludes any member of a board, commission, or task force from simultaneously acting as a lobbyist/legislative advocate. Based on Council’s direction staff reviewed lobbying ordinances in similar jurisdictions and undertook a legal review on various lobbying laws in effect throughout the state. Staff recommends adding a definition of ‘lobbying activity’ to Section 4.85.010 that will further describe actions by an individual that constitute lobbying. It is also 10.D Packet Pg. 885 2 of 4 recommended that creating Section 4.85.015 to prohibit any individual from serving on a City board, commission, task force, or advisory board if that individual is currently registered as a lobbyist in the City of Santa Monica or registered as a lobbyist in the two years prior to appointment. Background In 2016, Council adopted Ordinance No. 2511 (CCS). Before it was adopted, the ordinance was debated at several Council meetings over two years and many months in 2015 and 2016. It underwent several revisions before being adopted. Some versions of the law were deemed too elaborate and complex; other versions were considered too simple and threadbare. The version of the law that was finally adopted was a compromise and modelled after one in effect in the City of West Hollywood. It was viewed then as perhaps a first step, a work in progress. The City’s current law requires lobbyists to register with the City Clerk’s office. All lobbyists must register no later than ten days after qualifying as a lo bbyist, and any changes to the registration information must be reported within ten days of the change. The ordinance includes a list of exemptions that are intended to ensure that the ordinance is narrowly tailored to achieve its purpose of transparency without impermissibly burdening First Amendment rights. During the Council’s July 13, 2021, meeting, Council directed staff to return with some limited amendments to the City’s lobbying law. The Council looked in particular to the ordinance in place in Beverly Hills, and requested that, like Beverly Hills’ law, Santa Monica’s law: (1) more precisely define what constitutes a lobbyist/legislative advocate; (2) preclude any individual who in the prior two years has been acting as a lobbyist/legislative advocate from being appointed to a board, commission, or task force; and (3) preclude any member of a board, commission, or task force from simultaneously acting as a lobbyist/legislative advocate. Discussion Addition of a ‘Lobbying Activity’ Definition to the Santa Monica Lobbying Ordinance 10.D Packet Pg. 886 3 of 4 as defined in Section 4.85.010, a lobbyist is any individual who receives economic consideration as the employee, representative, or contractor of a person or entity, other than the City of Santa Monica, for communicating with any official or employee of the City for the purpose of influencing a legislative or administrative action. “Lobbyist” does not include City contractors and those seeking City contracts through bids and proposals. Where Santa Monica’s Lobbying Ordinance differs from some other jurisdictions is that some other jurisdictions separately and more comprehensively define what constitutes lobbying activities. This largely stems from the City’s law being originally modeled after the City of West Hollywood’s law. Section 4.85.010 would be amended as follows: 4.85.010 Definitions. “Lobbyist” means any individual who receives economic consideration, including cash, expenses paid, and/or in-kind compensation, totaling more than $7,500 in a calendar year as the employee, representative, or contractor of a person or entity other than the City of Santa Monica for communicating with any official or employee of the City for the purpose of influencing City action. The $7,500 threshold shall be adjusted on January 1 of each year beginning in 2024 by the most recent California Consumer Price Index as published by the State of California. For purposes of this Chapter, “Lobbyist” does not include the following: (a) City contractors and those seeking City contracts on their own behalf through bids and proposals; (b) Licensed architects; (c) Licensed professional engineers; and (d) Representatives of other government agencies. “Official” means any person who is: (a) A members of the Santa Monica City Council; (b) Appointed by the Santa Monica City Council to serve on a board or commission; and, (c) The City Manager, City Attorney, and City Clerk; (c) A City employee appointed to serve as director of a A City department 10.D Packet Pg. 887 4 of 4 director; and (d) Any other person who is required to file a Statement of Economic Interest in connection with the City of Santa Monica. Section 4.85.015 would be added as follows: Section 4.85.015 Prohibition on Lobbyists Serving on City Boards, Commissions, Task Forces, or Advisory Boards. Any person who has been a Lobbyist in the prior two years prior to the start of a term, and once appointed, shall be ineligible to be appointed or to continue to serve on a City board, commission, task force, or advisory board. Recommendation Introduce for first reading the amendments to Santa Monica Municipal Code Section 4.85.010 and 4.85.015. If the Council wishes to consider further changes to the Lobbying Ordinance, it is recommended that the Council schedule and conduct a study session on lobbying. Financial Impacts and Budget Actions None. Prepared By: Douglas Sloan, City Attorney Approved Forwarded to Council Attachments: A. ORD Lobbying 102522 10.D Packet Pg. 888 1 City Council Meeting: October 25, 2022 Santa Monica, California ORDINANCE NUMBER _________ (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 4.85.010, DEFINITIONS, AND ADDING SECTION 4.85.015 TO PROHIBIT ANY INDIVIDUAL FROM SERVING OR CONTINUING TO SERVE ON A CITY BOARD, COMMISSION, TASK FORCE, OR ADVISORY BOARD IF THAT INDIVIDUAL HAS ENGAGED IN LOBBYING ACTIVITES IN THE CITY OF SANTA MONICA IN THE TWO YEARS PRIOR TO APPOINTMENT WHEREAS, in 2016, Council adopted Ordinance No. 2511 (CCS) requiring lobbyists to register with the City Clerk’s office; and WHEREAS, all lobbyists must register no later than ten days after qualifying as a lobbyist, and any changes to the registration information must be reported within ten days of the change; and the ordinance includes a list of exemptions intended to ensure the ordinance is narrowly tailored to achieve its purpose of transparency without impermissibly burdening First Amendment rights; and WHEREAS, at its July 13, 2021, meeting, Council directed staff to return with a proposed ordinance, similar to that in place in other municipalities, that: (1) more precisely defines what constitutes a lobbyist/legislative advocate; (2) precludes any individual who in the prior two years has been acting as a lobbyist/legislative advocate from being appointed to a board, commission, or task force; and (3) precludes any member of a board, commission, or task force from simultaneously acting as a lobbyist/legislative advocate; and WHEREAS, this ordinance addresses the items in Council’s July 13, 2021, direction to staff. 10.D.a Packet Pg. 889 Attachment: ORD Lobbying 102522 (5426 : Lobbying Ordinance) 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Santa Monica Municipal Code Section 4.85.010 is hereby amended as follows: 4.85.010 Definitions. “Lobbyist” means any individual who receives economic consideration, including cash, expenses paid, and/or in-kind compensation, totaling more than $7,500 in a calendar year as the employee, representative, or contractor of a person or entity other than the City of Santa Monica for communicating with any official or employee of the City for the purpose of influencing City action. The $7,500 threshold shall be adjusted on January 1 of each year beginning in 2024 by the most recent California Consumer Price Index as published by the State of California. For purposes of this Chapter, “Lobbyist” does not include the following: (a) City contractors and those seeking City contracts on their own behalf through bids and proposals; (b) Licensed architects; (c) Licensed professional engineers; (d) Representatives of other government agencies. “Official” means any person who is: (a) A members of the Santa Monica City Council; (b) Appointed by the Santa Monica City Council to serve on a board or commission; and, (c) The City Manager, City Attorney, and City Clerk; 10.D.a Packet Pg. 890 Attachment: ORD Lobbying 102522 (5426 : Lobbying Ordinance) 3 (c) A City employee appointed to serve as director of a A City department director; and (d) Any other person who is required to file a Statement of Economic Interest in connection with the City of Santa Monica. Section 2. Santa Monica Municipal Code Section 4.85.015 is hereby added as follows: Section 4.85.015 Prohibition on Lobbyists Serving on City Boards, Commissions, Task Forces, or Advisory Boards. (a) Any person who has been a Lobbyist in the prior two years prior to the start of a term, and once appointed, shall be ineligible to be appointed or to continue to serve on a City board, commission, task force, or advisory board. (b) The Council, by unanimous vote, may appoint a person to a board, commission, task force, or advisory board, despite otherwise being disqualified under this Chapter, for good cause, including but not limited to unavailability of qualified candidates. Section 3. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. Section 4. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining 10.D.a Packet Pg. 891 Attachment: ORD Lobbying 102522 (5426 : Lobbying Ordinance) 4 portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. Section 5. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall take effect 30 days from its adoption. APPROVED AS TO FORM: _________________________ Douglas Sloan, City Attorney 10.D.a Packet Pg. 892 Attachment: ORD Lobbying 102522 (5426 : Lobbying Ordinance)