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SR 01-25-2022 7C City Council Report City Council Meeting: January 25, 2022 Agenda Item: 7.C 1 of 5 To: Mayor and City Council From: Joseph Lawrence, Interim City Attorney, City Attorney's Office, Municipal Law Subject: Introduction for First Reading of an Ordinance to Amend Santa Monica Municipal Code Section 4.85.010 to define ‘lobbying activity’ and add 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 Recommended Action Staff recommends that Council introduce for first reading the attached ordinance, which does the following: 1. Amends Santa Monica Municipal Code Section 4.85.010 to define ‘lobbying activity’ and 2. Creates 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, 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 staff’s review of lobbying ordinances in similar jurisdictions and a legal review on lobbying laws, staff recommends adding a definition of ‘lobbying activity’ to Section 7.C Packet Pg. 278 2 of 5 4.85.010 that will further describe actions by an individual that constitute lobbying. Staff also recommends 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) requiring lobbyists to register with the City Clerk’s office. 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. The ordinance includes a list of exemptions intended to ensure that the ordinance is narrowly tailored to achieve its purpose of transparency without impermissibly burdening First Amendment rights. Discussion Addition of a ‘Lobbying Activity’ Definition to the Santa Monica Lobbying Ordinance 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 other jurisdictions is that other jurisdictions separately and more comprehensively define what constitutes lobbying activities. In the City of Los Angeles, lobbying activities includes, “the following and similar compensated conduct when that conduct is related to a direct communication to influence any municipal legislation: 1. engaging in, either personally or through an agent, written or oral direct communication with a City official; 2. drafting ordinances, resolutions or regulations; 3. providing advice or recommending strategy to a client or others; 4. research, investigation and information gathering; 5. seeking to influence the position of a third party on municipal legislation or an issue related to municipal 7.C Packet Pg. 279 3 of 5 legislation by any means, including but not limited to engaging in community, public or press relations activities; and 6. attending or monitoring City meetings, hearings or other events.” The City of Beverly Hills uses the term legislative advocate instead of lobbyist. ‘Legislative Advocacy’ includes. “ … the following and similar conduct for compensation when the conduct is related to attempting to influence Municipal legislation: A. Engaging in, either personally or through an agent, written, electronic, or oral direct communication with a City official; B. Drafting ordinances, resolutions, or regulations; C. Attempting to influence the position of any third party on Municipal legislation or an issue relating to Municipal legislation by any means, including, but not limited to, engaging in community or media relations activities; D. Advising clients regarding strategy for legislative advocacy. Staff recommends adding a ‘lobbying activity’ definition to the Santa Monica Lobbying Ordinance that aligns with the definition Beverly Hills uses for ‘legislative advocacy’. Staff does not believe that Santa Monica must adopt the terms ‘legislative advocate’ or ‘legislative advocacy’ as the legislative advocate role is generally encompassed in the more colloquial term lobbyist. Section 4.85.010 would be amended as follows: 4.85.010 Definitions. “Lobbyist” means any individual who engages in Lobbying Activity. 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 City action. For purposes of this Chapter, “Lobbyist” does not include City contractors and those seeking City contracts through bids and proposals. “Lobbying Activity” includes the following and similar conduct for compensation when the conduct is related to attempting to influence City action: A. Engaging in, either personally or through an agent, written, electronic, or oral direct 7.C Packet Pg. 280 4 of 5 communication with a City Official; B. Drafting ordinances, resolutions, or regulations; C. Attempting to influence the position of any third party on City legislation or an issue relating to City legislation by any means, including, but not limited to, engaging in community or media relations activities; D. Advising clients regarding strategy for legislative advocacy. “Official” means any person who is: (a) Members of the City Council; (b) Appointed by the City Council to serve on a board or commission and, the City Manager and City Clerk; (c) A City employee appointed to serve as director of a City department; and (d) Any person who is required to file a Statement of Economic Interest. Prohibiting Lobbyists from Serving on City Boards, Commissions, Task Forces, and Advisory Boards At its July 13, 2021 meeting, Council also directed staff to propose an ordinance precluding 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 that precludes any member of a board, commission, or task force from simultaneously acting as a lobbyist/legislative advocate. Other jurisdictions prohibit locally registered lobbyists from serving on boards and commissions. Examples include the City of Los Angeles (Los Angeles City Charter Section 501), the City of Beverly Hills (Beverly Hills Municipal Code Section 2-2-104(D), and the State of California (Elections Code Section 21553, prohibiting members of the Redistricting Commission from serving as a local lobbyist in the State of California). Staff recommends creating Section 4.85.015 to prohibit any individual from serving on a City board, commission, task force, or advisory board if that individual registered as a lobbyist in the two years prior to appointment, and prohibit that person from functioning as a Lobbyist while serving on a City board, commission, task force, or advisory board. 7.C Packet Pg. 281 5 of 5 Section 4.85.015 Prohibition on Lobbyists Serving on City Boards, Commissions, Task Forces, or Advisory Boards. Any person appointed to a City board, commission, task force, or advisory board shall not have been a Lobbyist for at least two (2) years prior to the start of the term and once appointed, shall not function as a Lobbyist while serving on a City board, commission, task force, or advisory board. Any City board, commission, task force, or advisory board member who is a registered Lobbyist at the time this ordinance amendment takes effect shall immediately vacate their seat. Currently, there is only one member of a City board who is registered as a Lobbyist in the City. The addition of the ‘lobbying activity’ definition to the Lobbying Ordinance may trigger additional lobbying registrations by current board, commission, task force, or advisory board members. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of recommended action. Prepared By: Brandon Ward, Deputy City Attorney Approved Forwarded to Council Attachments: A. Lobbying Ordinance Amendment 01-25-2022 7.C Packet Pg. 282 1 City Council Meeting: January 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 TO DEFINE ‘LOBBYING ACTIVITY’ AND 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 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 that 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 7.C.a Packet Pg. 283 Attachment: Lobbying Ordinance Amendment 01-25-2022 (4825 : Amend Lobbyist Ordinance) 2 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 addressed the items in Council’s July 13, 2021 direction to staff. 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 engages in Lobbying Activity. 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 City action. For purposes of this Chapter, “Lobbyist” does not include City contractors and those seeking City contracts through bids and proposals. “Lobbying Activity” includes the following and similar conduct for compensation when the conduct is related to attempting to influence City action: A. Engaging in, either personally or through an agent, written, electronic, or oral direct communication with a City Official; B. Drafting ordinances, resolutions, or regulations; or 7.C.a Packet Pg. 284 Attachment: Lobbying Ordinance Amendment 01-25-2022 (4825 : Amend Lobbyist Ordinance) 3 C. Attempting to influence the position of any third party on City legislation or an issue relating to City legislation by any means, including, but not limited to, engaging in community or media relations activities; D. Advising clients regarding strategy for legislative advocacy. “Official” means any person who is: (a) Members of the City Council; (b) Appointed by the City Council to serve on a board or commission and, the City Manager and City Clerk; (c) A City employee appointed to serve as director of a City department; and (d) Any person who is required to file a Statement of Economic Interest. Section 2. Santa Monica Municipal Code Section 4.85.015 is hereby created as follows: Section 4.85.015 Prohibition on Lobbyists Serving on City Boards, Commissions, Task Forces, or Advisory Boards. Any person appointed to a City board, commission, task force, or advisory board shall not have been a Lobbyist for at least two (2) years prior to the start of the term and once appointed, shall not function as a Lobbyist while serving on a City board, commission, task force, or advisory board. Any City board, commission, task force, or advisory board member who is a registered Lobbyist at the time this ordinance amendment takes effect shall immediately vacate their seat. 7.C.a Packet Pg. 285 Attachment: Lobbying Ordinance Amendment 01-25-2022 (4825 : Amend Lobbyist Ordinance) 4 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 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: _________________________ JOSEPH LAWRENCE Interim City Attorney 7.C.a Packet Pg. 286 Attachment: Lobbying Ordinance Amendment 01-25-2022 (4825 : Amend Lobbyist Ordinance)