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Item # 65
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 21, 2022
TOPIC: Lobbyist Ordinance
AGENDA TITLE:
Ordinance Relating to Lobbyist Disclosure Policy
RECOMMENDED ACTION
1. Approve the first reading of an ordinance to implement a Lobbyist Registration Policy.
2. Provide staff direction for registration and penalty fees.
DISCUSSION
At the May 3 meeting of the City Council, Management Partners presented the Santa Ana
Lobbyist Registration Assessment dated April 18, 2022. The assessment involved a
review of the existing regulations adopted in Santa Ana that affect lobbyists, why public
agencies adopt laws and regulations related to lobbying, what is and is not lobbying, and
issues related to adoption of lobbyist registration and reporting requirements.
Management Partners researched the definition of lobbyist and the requirements for
lobbyists in the following cities:
Anaheim,
Bakersfield,
Los Angeles,
Long Beach,
Riverside,
San Diego,
Santa Monica, and
Stockton.
It was determined that Bakersfield, Riverside and Stockton have not adopted regulations
requiring registration by lobbyists. The requirements for Anaheim, Los Angeles, Long
Beach, San Diego, and Santa Monica were presented and focused on the following:
The definition of “lobbyist,” including any exclusions;
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Reporting requirements, such as the frequency of disclosures, registration fees,
and other prohibited activities; and
Fines or other penalties for failing to follow the ordinance.
Following the presentation, the Mayor and Council discussed the report and regulations
requiring registration by lobbyists in comparable cities and directed that a draft ordinance
be prepared for further consideration.
Major observations from the May 3, 2022, meeting which guided the development of the
draft ordinance, are provided below.
The Mayor and City Council support efforts to bring further transparency to
government decision-making.
Lobbyists can organize voices, build momentum for projects and issues, and
provide technical or specialized information, but these interests should be
balanced with the community’s right to know the interests that attempt to influence
decisions by government and to evaluate whether these interests create undue
influence over decision-makers.
In November 2021, the Mayor and City Council amended the City’s Sunshine
Laws. The initial draft of this ordinance included requirements related to lobbyist
registration and reporting that should be considered as a new proposed ordinance
as developed.
In defining “lobbyist,” emphasis should be placed on people, businesses and other
entities including non-profit organizations that are paid to engage decision-makers
in a manner to influence a position on an item.
The definition of “lobbyist” should be based on the amount of compensation
received rather than on the number of hours the lobbyist worked. This will facilitate
administration of the ordinance and avoid potentially burdensome timekeeping
requirements for lobbyists and City staff.
Residents, community groups, neighborhood associations, and other stakeholders
expressing their views to individual Council members or at public meetings should
be exempt from lobbyist regulations.
The names of city officials the lobbyist has spoken to should be disclosed.
Various penalty options should be considered including a fine as a first offense
with additional penalties accruing for flagrant or ongoing violations.
Language should be clear, and to the extent possible, easy for lobbyists to comply
with and for staff to administer. A goal is to ensure program costs are recovered
and the program is sustainable.
Lobbyist registration and reporting should continue to be discussed as a possible
Charter amendment.
As suggested, the initial draft of the ordinance that included regulations pertaining to
lobbyists developed by the City Attorney’s Office was used by Management Partners as
a starting point in drafting the new regulations for consideration. Also utilized were the
new article and numbering protocols identified therein. New or revised language was
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developed to address comments and suggestions made during the May 3, 2022, Council
meeting. The draft ordinance, which is included as an attachment to this document, has
been reviewed by City Attorney's Office and their changes and suggestions were
incorporated.
Highlights of the draft ordinance are provided below.
Added language related to the purpose and intent of the regulation. Specifically,
new language indicates the purpose for enacting these regulations is to promote
public confidence and trust, preserve the integrity of local government decision-
making, and provide members of the community with access to information about
persons and organizations who attempt to influence decisions of City government
through the use of paid lobbyists.
Provided the definition of lobbyist. As there was not a Council majority consensus,
staff suggested a threshold amount for the calendar month as an effort to
compromise. As written, “lobbyist” is defined as any individual or entity who
receives or becomes entitled to receive $500 or more in consideration in a
calendar month, other than reimbursement for reasonable travel expenses, to
communicate, directly or through his/her agents with any elected or appointed
official of the City, member of the City Executive Team, or Legislative Body, board
or commission of the City, for the purpose of influencing legislative or
administrative action of the City of Santa Ana or any regional agency in which
Santa Ana has a voting role.
Expanded the definition of “lobbyist” to include non-profit organizations.
Added a definition of “client” which is the person who compensates a lobbyist or
lobbying firm for the purpose of attempting to influence a legislative or
administrative action and the person on whose behalf a lobbyist or lobbying firm
attempts to influence such municipal action even if the lobbyist or lobbying firm is
compensated by another person for such representation.
Added language related to the information to be disclosed at the time of
registration and established that the registration expires and must be renewed
annually.
Provisions related to the exemptions to the definition of “lobbyist” were retained
from the initial draft of the proposed ordinance at the November 16, 2021 Council
meeting and were expanded.
Provisions related to quarterly reporting including information required to be
disclosed. Deadlines included in the initial draft of the proposed ordinance were
retained and effective dates updated.
Added language requiring use of the Clerk of the Council’s electronic filing system
to file online registration forms and disclosure reports. Added language providing
that duly authorized owners or officers of lobbying firms shall review the contents
and electronically verify under penalty of perjury that s/he believes the contents
are true, correct and complete based on personal knowledge or on information
and belief.
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Expanded the section related to registration fees to provide that the City Council
may, by resolution, set the registration fee as well as fees for renewal and late
filing. Staff is seeking direction from Council.
Retained language that the Clerk of the Council will make all lobbyist registration
and disclosure reports available online to the public and make copies available
through the Clerk of Council’s Office.
Added language related to the duties of the Clerk of the Council including a
provision that the Clerk may issue notices advising of registration and filing
obligations. If, within 10 days of the issuance of the notice, the lobbyist complies
or furnishes satisfactory evidence that s/he is exempt, a violation will be deemed
not to have occurred. This section also requires that registration forms and
disclosure reports be maintained for five years.
Added language that would enable an unregistered lobbyist to make a
presentation at a public meeting of the Mayor and City Council after making
certain disclosures related to his/her lobbying activities and agreement to register
within seven calendar days and pay a late registration fee.
Lobbyist Registration and Disclosure Fees
In addition to the ordinance, fees related to the lobbyist registration and disclosure
program shall be set by resolution. Annual review of the fees is encouraged to ensure the
costs related to program administration are fully recovered. Other items to be considered
in setting the fee are provided below.
The registration fee should include the cost for the registration of the lobbyist as
well as a cost per client. Registration forms and annual and quarterly disclosure
reports related to larger firms with more clients will be more complex, requiring
more staff time to review and process.
A penalty for late registration and late filing of disclosure reports should be
established to recover the additional costs related to notices and recordkeeping.
Registration should expire each year and require renewal if the lobbyist continues
to qualify for registration. Payment of a renewal fee should cover the costs related
to this process and processing of the annual and quarterly reporting requirements.
A preliminary fiscal impact analysis of a lobbyist registration implementation policy and
disclosure e-filing module procurement from an existing vendor, NetFile, was conducted.
The subscription-based software costs approximately $10,000 annually to procure. To
implement such a policy, the Clerk of the Council recommends that an additional full-time
office specialist be hired to fulfill the functions required of the policy which will be
requested during the 2022-2023 Mid-Year Budget Update. Staff estimates that the annual
personnel cost is $40,000. In summary, there will be a $40,000 expense associated with
implementation of the lobbyist registration policy. This increase in expenses will require
an appropriation adjustment.
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ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
There is no fiscal impact associated with this action at this time but staff will be requesting
the addition of a full-time staff position at the Mid-Year Budget Update to fulfill the
functions required by the Lobbyist Disclosure Policy.
EXHIBIT(S)
1. Ordinance
Submitted By: Daisy Gomez, Clerk of the Council
Approved By: Kristine Ridge, City Manager
ORDINANCE NO. XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA,
CALIFORNIA, ADDING ARTICLE XI ENTITLED “LOBBYIST
REGISTRATION” TO CHAPTER 2 OF THE SANTA ANA MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY ORDAIN AS
FOLLOWS:
Section 1. Article XI entitled “Lobbyist Registration” is hereby added to Chapter 2 of the
Santa Ana Municipal Code to read, in its entirety, as follows:
ARTICLE XI. – LOBBYIST REGISTRATION
Sec. 2-905. – Purpose and Intent.
It is the purpose and intent of the City Council of the City of Santa Ana in enacting these
regulations to promote public confidence and trust, preserve the integrity of local government
decision-making, and provide members of the community with access to information about
persons and organizations who attempt to influence decisions of City government through paid
lobbyists. Through these regulations, lobbyists shall be required to register themselves and their
clients and disclose the nature of their lobbying efforts, compensation, donations, and
fundraising efforts and this information shall be accessible to members of the public.
Sec. 2-906. – Definitions.
(a) “City official” shall mean any elected or appointed official of the City of Santa Ana, city
officer as defined in Section 2-300 of this Code, member of the Council, as it may be amended
from time to time.
(b) “Client” means both the person who compensates a lobbyist or lobbying firm for the
purpose of attempting to influence a legislative or administrative action and the person on
whose behalf a lobbyist or lobbying firm attempts to influence such municipal action even if the
lobbyist or lobbying firm is compensated by another person for such representation.
(c) “Gift” shall have the same meaning as in Section 2-852(e) of this Code.
(d) "Lobby" or "Lobbying" means communicating, for compensation, for the purpose of
influencing a municipal legislative or administrative action or decision.
(e) "Lobbyist" means any individual, business entity or organization, including a non-profit
organization, that receives or becomes entitled to receive five hundred dollars ($500) or more in
consideration in a calendar month, other than reimbursement for reasonable travel expenses, to
communicate, directly or through his or her agents, on behalf of any other person or entity, with
any elected or appointed official of the City for the purpose of influencing legislative or
administrative action of the City of Santa Ana. This subsection shall apply only to this Article.
Sec. 2-907. – Registration required.
(a) Any individual or entity that qualifies as a lobbyist pursuant to this Code shall register
with the Clerk of Council within fifteen (15) business days of qualifying as a lobbyist on a
registration form provided by the City, and shall thereon disclose:
1. Lobbyist/lobbying firm;
2. Business mailing address;
3. Email address;
4. Telephone number;
5. The names of all owners of the lobbyist business;
6. The names of each individual lobbyist;
7. A description of the nature of the business entity or corporation;
8. The name, business address, telephone number, and email address of each client
receiving lobbying services;
9. The nature of each client’s business;
10. A brief description of the governmental decision that the lobbyist seeks to
influence on each client’s behalf, the desired outcome, and the names of the officials the lobbyist
has contacted on each client’s behalf;
11. The name of each person employed or retained by the lobbyist to engage in
lobbying activities on each client’s behalf; and
12. The date, amount, and description of any payment made to, or on behalf of any
city official or member of an official’s family. Payments to be disclosed include gifts, meals, fees,
salaries, and any other form of compensation or renumeration.
(b) A lobbyist shall file an amendment to his or her registration and reporting form within
fifteen (15) business days of representation of a new client or any change in the information
required to be disclosed on the form related to existing clients.
(c) No person who qualifies as a lobbyist shall contact or communicate with any official of
the City without first registering as a lobbyist and identifying himself or herself as a lobbyist.
(d) Lobbyists shall report to the Clerk of the Council the names of all officials contacted
about a government decision eight (8) days prior to any public hearing on that decision.
(e) An entity or person that registers as a lobbyist retains that status through January 2 of
the following calendar year unless it terminates that status by giving notice, in writing, on the
form provided to the Clerk of the Council.
(f) Lobbyist registration expires on January 2 of each year and shall be renewed on or
before January 3 or the next business day if the lobbyist requalifies as a lobbyist.
Sec. 2-908. – Exemptions from registration.
The following persons or entities are exempt from registration as a lobbyist:
(a) Any public official acting in his or her official capacity and any government official or
employee acting within the scope of his or her employment.
(b) A person acting without any compensation or consideration other than reimbursement
or payment of reasonable travel expenses.
(c) Any person representing themselves in attempting to obtain decisions related to their
own property or business.
(d) Any person appearing solely as a speaker at, or providing written statements that
become part of the record of a public hearing or enforcement proceeding at the city.
(e) Any person whose only activity is submitting a bid on a competitively bid contract,
submitting a written response to or participating in an oral interview related to a request for
proposals or qualifications, or negotiating the terms of a written agreement with any city
agency following a request for proposals or request for qualifications process.
(f) Any organization exempt from federal taxation pursuant to Section 501(c)(3) of the
Internal Revenue Code, which receives funding from any federal, state, or local government
agency for the purpose of representing the interests of indigent persons and whose primary
purpose is to provide direct services to those persons, if the individual or individuals
represented by the organization before any City agency provide no payment to the organization
for that representation. This exemption shall not apply to direct contacts with a city official in
any situation other than a publicly noticed meeting, for the purpose of attempting to influence a
City decision with regard to any city funding the organization is seeking nor to any person
employed by the organization with respect to his or her activities related to the organization.
(g) A newspaper or other regularly published periodical, radio or television station or
network, including any individual who owns, publishes or is employed by such entity, when in
the ordinary course of business, it publishes or broadcasts news, editorials or other comments,
or paid advertising, which directly or indirectly attempts to influence City officials or
employees regarding current or future City legislation, administrative decisions, or City
Council elections or local initiative measures, if such entity or individual engages in no other
activities to influence a municipal decision.
Sec. 2-909. – Required disclosure reports.
(a) Annual reports.
1. Lobbyists shall file yearly disclosure reports with the Clerk of Council on a form
prepared by the Clerk of Council specifying in detail the following:
a) The nature of the issues they are trying or tried to influence through
lobbying of City officials;
b) Identify each client and the amount of compensation received from each
client for communicating using any means with City officials for the purpose of influencing a
municipal legislative or administrative action or decision;
c) All campaign contributions and gifts to elected City officials;
d) All fundraising activities conducted on behalf of City elected officials;
e) All contributions or gifts to political campaigns;
f) All contributions or gifts made at the behest of City elected officials;
g) All contributions or gifts to political campaigns made at the behest of
elected City officials;
h) All contributions or gifts to religious institutions made at the behest of
elected City officials;
i) All contributions or gifts to non-profit organizations made at the behest
of elected City officials;
j) All payments received by the lobbyist for services as a consultant to the
City or any City agency;
k) Any compensated work done for a political campaign of an elected City
official; and
l) Past lobbying activity in the City.
2. Yearly disclosure reports shall be filed with the Clerk of Council no later than
October 1st starting in 2023.
(b) Quarterly Political Contributions Reports. Lobbyist shall file quarterly reports regarding
contributions to an elected City official or the controlled committee of an elected City official.
1) All reports will be on a form prepared by the Clerk of Council.
2) Each report will be filed with the Clerk of Council no later than January 1st,
April 1st, July 1st, and September 1st of every year starting in 2023.
(c) Quarterly Fundraising Activity Reports. Lobbyists shall file a quarterly report with the
Clerk of Council if the lobbyist, within the last 12 months:
1) Engaged in fundraising activities on behalf of an elected City official and/or an
elected City official’s controlled committee and knows or has reason to know that the
fundraising activity resulted in a contribution or contributions; or
2) Delivered or acted as an intermediary for one or more contributions to an elected
City official and/or any of an elected City official’s controlled committees.
3) All reports will be on a form prepared by the Clerk of Council.
4) Each report will be filed with the Clerk of Council no later than January 1st,
April 1st, July 1st, and September 1st of every year starting 2023.
Sec. 2-910. – Online disclosure of report forms and reports.
Every lobbying firm or lobbyist required to file a registration form or disclosure report shall use
the Clerk of the Council’s electronic filing system to file such forms or reports online. It is
unlawful for a lobbying firm to file a registration form or disclosure report unless a duly
authorized owner or officer has reviewed the contents and electronically verified under penalty
of perjury that he or she believes the contents to be true, correct, and complete based on
personal knowledge or on information and belief. In the event the Clerk’s online filing system is
not capable of accepting a required form or report, a lobbying firm or lobbying shall file that
form or report in an electronic format with the Clerk on or before the deadline.
Sec. 2-911. – Registration fee.
The City may charge a lobbyist registration fee including fees related to the annual renewal and
penalties to cover the costs associated with administering the lobbyist registration and
disclosure program. The fees shall be in such amounts established by resolution of the City
Council.
Sec. 2-912. – Disclosure reports made available to the public.
The Clerk of Council shall make all lobbyist registration and disclosure reports available online
to the public and copies available through the Clerk of Council’s office.
Sec. 2.913. – Powers and duties of the Clerk of the Council.
(a) The Clerk of the Council may issue a notice of filing obligations to any person or entity
who a City official or other person has reason to believe should file a registration form or
disclosure report. Before sending the notice, the Clerk shall determine whether facts exist to
warrant sending a notice. If, within ten (10) business days after the Clerk has sent a written
notice, the person or entity either complies with this Chapter or furnishes satisfactory evidence
to the Clerk that he or she is exempt from the filing obligations, a violation will be deemed not
to have occurred.
(b) The Clerk of the Council shall report apparent violations of this Chapter to the City
Attorney’s Office.
(c) The Clerk of the Council shall preserve all registration forms and disclosure reports
required to be filed under this Chapter for a period of five (5) years from the date of filing.
These registration forms and disclosure reports shall constitute part of the public records and
shall be open to public inspection. Copies shall be made available by the Clerk upon request
and payment of any lawful copy charges.
(d) The Clerk of the Council shall have the power to adopt all reasonable and necessary
procedures to implement this Chapter.
Sec. 2.914.- Appearance of an unregistered lobbying.
If a lobbyist who has not registered appears at a public meeting of an legislative body of the
City to make a presentation on behalf of a client, the lobbyist will be permitted to make the
presentation upon stating, on the record, the following: 1) The lobbyist’s full name, business
address and telephone number; 2) The name, business address, and telephone number of any
individual or entity by whom the lobbyist is employed, retained or engaged for compensation
to perform lobbying services in the city; and 3) The legislative or administrative action of the
city with respect to which the lobbyist has been employed, retained or engaged.
The lobbyist shall be required to file the required registration form and pay the registration fee
and any penalty fee set by resolution, to the Clerk of the Council within seven (7) business days
of such presentation.
Sec. 2-915. – Penalty for violation.
(a) Every violation of the provisions of this Article may be charged as either a misdemeanor
or as an infraction in the discretion of the citing officer or city attorney and, upon conviction
thereof, shall be punishable as provided for in section 1-8 of this Code.
(b) Each day any violation of any said provision of this chapter shall continue shall
constitute a separate offense.
(c) Any person convicted of violating this Article may not act as a lobbyist within the City
or otherwise attempt to influence City legislation for compensation for one year after such a
conviction.
(c) Residents of the City of Santa Ana shall have standing to bring a civil action for
enforcement of this Article.
(d) Use of criminal enforcement and/or administrative citations shall not prevent or
preclude the city from seeking injunctive relief and civil penalties in court for violations of this
Article.
Section 2. If any section, subsection, sentence, clause, phrase or portion of this ordinance
is for any reason held to be invalid or unconstitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
ordinance. The City Council of the City of Santa Ana hereby declares that it would have
adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof
irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or
portions be declared invalid or unconstitutional.
Section 3. This Ordinance shall become effective thirty (30) days after its adoption.
Section 4. The Clerk of Council shall certify the adoption of this Ordinance and shall
cause the same to be published as required by law.
ADOPTED this ____ day of ______, 2022.
_________________________
VICENTE SARMIENTO
Mayor
APPROVED AS TO FORM
SONIA R. CARVALHO
City Attorney
By: _________________________
Laura A. Rossini
Chief Assistant City Attorney
AYES: Councilmembers: _________________________________
NOES: Councilmembers: _________________________________
ABSTAIN: Councilmembers: _________________________________
NOT PRESENT: Councilmembers: _________________________________
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached
Ordinance No. XXX to be the original ordinance adopted by the City Council of the City of
Santa Ana on ______________, 2022, and that said ordinance was published in accordance with
the Charter of the City of Santa Ana.
Date: ______________________ ________________________________
DAISY GOMEZ
Clerk of the Council
City of Santa Ana