HomeMy WebLinkAbout05 - Lobbyist Registration, Reporting and Disclosure RequirementsQ �EwPpRT
CITY OF
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z NEWPORT BEACH
<,FORN'P City Council Staff Report
February 11, 2020
Agenda Item No. 5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Leilani I. Brown, City Clerk - 949-644-3005,
(brown@newportbeachca.gov
Aaron C. Harp, City Attorney- 949-644-3131,
aharp@newportbeachca.gov
PREPARED BY: Aaron C. Harp, City Attorney
TITLE: Ordinance No. 2020-3: Lobbyist Registration, Reporting and
Disclosure Requirements
ABSTRACT:
On April 9, 2019, the City Council adopted Resolution No. 2019-33 forming an Ad Hoc
Committee on Election Reform ("Committee") to determine whether the provisions of the
Newport Beach Municipal Code ("NBMC") should be modified or updated. After several
Committee meetings and two public meetings, Mayor O'Neill, Mayor Pro Tem Avery and
Council Member Brenner are recommending that the City Council adopt an ordinance
establishing lobbyist registration, reporting and disclosure requirements.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Conduct second reading and adopt Ordinance No. 2020-3, An Ordinance of the City
Council of the City of Newport Beach, California, Amending Section 1.12.020,
Subsection J, and Adding Chapter 1.28 to Title 1 of the Newport Beach Municipal
Code to Increase Transparency in Government Operations and Establish Lobbyist
Registration, Reporting and Disclosure Requirements.
FUNDING REQUIREMENTS:
There is no fiscal impact related to this item.
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Ordinance No. 2020-3: A Lobbyist Registration, Reporting and Disclosure Requirements
February 11, 2020
Page 2
DISCUSSION:
On January 28, 2020, the City Council introduced and passed to second reading
Ordinance No. 2020-3, amending Section 1.12.020, Subsection J, and adding Chapter
1.28 to Title 1 of the NBMC to increase transparency in government operations and
establish lobbyist registration, reporting and disclosure requirements. Mayor O'Neill,
Mayor Pro Tem Avery and Council Member Brenner are recommending that the City
Council conduct a second reading and adopt the ordinance.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Ordinance No. 2020-3
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ATTACHMENT A
ORDINANCE NO. 2020-3
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, AMENDING
SECTION 1.12.020 SUBSECTION J, AND ADDING
CHAPTER 1.28 TO TITLE 1 OF THE NEWPORT BEACH
MUNICIPAL CODE TO INCREASE TRANSPARENCY IN
GOVERNMENT OPERATIONS AND ESTABLISH
LOBBYIST REGISTRATION, REPORTING AND
DISCLOSURE REQUIREMENTS
WHEREAS, all actions and deliberations by public agencies should, to the
greatest extent possible, be conducted openly;
WHEREAS, an informed public and transparency in decision-making is essential
to democracy;
WHEREAS, on April 9, 2019, the City Council adopted Resolution No. 2019-33
forming an Ad Hoc Committee on Election Reform ("Committee") to determine whether
the provisions of the Newport Beach Municipal Code ("NBMC") should be modified or
updated;
WHEREAS, the Committee has recommended the City Council amend Section
1.12.020 subsection J, and add Chapter 1.28 to Title 1 of the NBMC to increase
transparency in government operations by establishing lobbyist registration, reporting
and disclosure requirements;
WHEREAS, it is the goal and intent of this ordinance, to ensure that citizens of
Newport Beach have timely access to information and an opportunity to address the
various legislative bodies of the City prior to governmental decisions being made;
WHEREAS, the citizens, staff and City Council of the City ought to know the
identity of persons engaged in compensated lobbying activities aimed at influencing
decisions by City government and which interests such persons represent; and
WHEREAS, public disclosure of the financing of lobbyists and those who employ
their services helps maintain citizen confidence in the integrity of City government.
NOW, THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
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Ordinance No. 2020-3
Page 2 of 8
Section 1: Section 1.12.020 subsection J of Chapter 1.12 of Title 1 of the
Newport Beach Municipal Code is hereby amended to add Subsection J to read as
follows:
J. The City Clerk shall have the power to issue administrative citations for
violations of Chapter 1.28.
Section 2: Chapter 1.28 is hereby added to Title 1 of the Newport Beach
Municipal Code to read as follows:
Chapter 1.28
LOBBYIST REGISTRATION AND REPORTING
Sections:
1.28.010
Purpose and Findings.
1.28.020
Definitions.
1.28.030
Exemptions.
1.28.040
Lobbyist Registration and Annual Reporting.
1.28.050
Identification of Clients.
1.28.060
Prohibited Acts.
1.28.070
Enforcement.
1.28.010 Purpose and Findings.
The City Council of the City of Newport Beach finds and declares as follows:
A. City government functions to serve the needs of all citizens.
B. The citizens, staff and City Council of the City ought to know the identity of
persons engaged in compensated lobbying activities aimed at influencing decisions by
City government and which interests such persons represent.
C. Public disclosure of the financing of lobbyists and those who employ their
services helps maintain citizen confidence in the integrity of City government.
D. It is in the public interest to ensure that lobbyists do not misrepresent facts, their
positions, or attempt to deceive a City representative through false communications; do
not place a City representative under personal obligation to themselves or their clients;
and do not represent that they can control the actions of any City representative.
E. It is in the public interest to adopt this chapter to ensure adequate and effective
disclosure of information about efforts to lobby City government.
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Ordinance No. 2020-3
Page 3of8
1.28.020 Definitions.
For purposes of this chapter, the following definitions shall apply:
A. "City representative" means the Mayor, Mayor Pro Tem, members of the City
Council, members of all City Boards, Commissions and Committees, the City Manager,
Assistant City Manager, Department Directors, Deputy Department Directors, the Police
Chief, the Assistant Police Chief, the Fire Chief, the Assistant Fire Chief, the City
Attorney, Assistant City Attorney, the City Clerk, and the Zoning Administrator.
B. "Commission" means the Orange County Campaign Finance and Ethics
Commission.
C. "Influence" and "Influencing" means contacting, either directly or indirectly, for
the purpose of promoting, supporting, modifying, opposing, causing the delay or
abandonment of conduct, or otherwise intentionally affecting the official actions of a City
representative, by any means, including, but not limited to providing, preparing,
processing, or submitting information, incentives, statistics, studies or analyses.
D. "Lobbyist" means any person who receives compensation of five hundred dollars
($500.00) or more in consideration in any calendar month, other than reimbursement for
reasonable travel expenses, for engaging in lobbying activities. A lobbyist includes any
person that engages in lobbying activities on behalf of another person pursuant to any
form of contingency compensation agreement.
E. "Lobbying activities" means influencing or attempting to influence a City
representative, by means of oral, written, or electronic communication, in regards to any
legislative, quasi-judicial or administrative action or decision to: (1) adopt an ordinance,
resolution, regulation or policy; (2) grant or deny any permit, license or other entitlement
of use; (3) award of a contract or grant; or (4) decide to initiate, defend, appeal or take
any other action related to litigation.
F. "Person" means any individual and any form of business entity including, but not
limited to, a domestic or foreign corporation, association, syndicate, joint stock
corporation, partnership of every kind, club, business or trust, society, or limited liability
company.
1.28.030 Exemptions.
The following persons are exempt from the requirements of this chapter unless
otherwise specified:
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Ordinance No. 2020-3
Page 4 of 8
A. A public official or public employee acting in his or her official capacity.
B. An attorney, licensed to practice law in the state of California, with regard to his
or her representation of a party or potential party to pending or actual litigation, or to a
pending or actual administrative enforcement proceeding, brought by or against the
City, or City agent, officer, or employee.
C. A person who owns, publishes or is employed by a newspaper, radio station,
television station or other media outlet that is engaged in the business of broadcasting
of news items, editorials, or commentary, which directly or indirectly urges governmental
action.
D. A person hired by the City, to the extent the lobbying activities directly relate to
the work the person was hired to perform for the City.
E. A person who is communicating with a City representative concerning a
ministerial action.
F. A person who meets with a City representative solely to lodge "whistleblower"
complaints relating to improper governmental activity such as gross mismanagement,
waste of funds, an abuse of authority, or a substantial and specific danger to public
health or safety.
G. A person who meets with the City Manager, City Attorney, City Clerk, Assistant
City Manager, Assistant City Attorney, Department Directors, Deputy Department
Directors, the Police Chief, the Assistant Police Chief, the Fire Chief, or the Assistant
Fire Chief, regarding any claim or litigation matter, the resolution of any dispute, or
potential dispute, or negotiation of any agreement where the City will be a party to the
agreement.
H. An expert witness retained to provide opinions or testimony at an official City
proceeding.
Any person who is not compensated for engaging in lobbying activities.
J. Any employee, officer, or board member of an association for a residential
common interest development of five or more dwelling units, which is wholly located
within the City, when addressing, in his or her capacity as an employee, officer, or board
member of such association, an issue impacting the association or its members.
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Ordinance No. 2020-3
Page 5 of 8
K. Any regular employee, officer, or board member of a business entity when
addressing, in his or her capacity as an employee, officer, or board member of such
business entity, an issue impacting the business entity.
L. Any state licensed architect or engineer whose attempts to influence any
legislative, quasi-judicial or administrative action or decision are limited to: (1) publicly
appearing at a public meeting, public hearing, or other official proceeding open to the
public; or (2) preparing or submitting documents or writings in connection with the action
or decision for use at a public meeting, public hearing, or other official proceeding open
to the public.
1.28.040 Lobbyist Registration and Annual Reporting.
A. Within ten (10) days of qualifying as a lobbyist and within ten (10) days of the
annual anniversary of the lobbyist's initial registration, if the lobbyist continues to qualify
as a lobbyist, any lobbyist who engages in lobbying activities shall register with the City
Clerk by:
1. Paying all filing fees, which shall be set by resolution of the City Council,
and
2. Filing a lobbying registration form, as provided by the City Clerk and made
available on the City Clerk's webpage, which shall include, at a minimum, a
written statement containing the following information, certified as true under
penalty of perjury:
a. The full name, business address and telephone number of the
lobbyist, and, if the lobbyist is a business entity or other organization, the
full name, business address and telephone number of each person
employed by or otherwise associated with the business entity or
organization who will be engaging in lobbying activities;
b. The full name, business address and telephone number of the
person by whom the lobbyist has been employed, retained or engaged by
to perform lobbying activities;
C. The legislative, quasi-judicial or administrative action or decision
with respect to which the lobbyist has been employed, retained or
engaged; and
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Ordinance No. 2020-3
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d. The date and amount of all campaign contributions to any
candidate or candidate's controlled committee that the lobbyist has made
within the past twelve (12) months.
B. An amendment to the registration form must be completed and filed by the
lobbyist with the City Clerk within ten (10) days if the lobbyist knows, or should have
known, of any change in the accuracy of the information reported on the registration
form.
1.28.050 Identification of Clients.
A. Unless otherwise excused by law, each lobbyist who appears before the City
Council or City board, commission or committee to engage in lobbying activities shall
identify himself or herself and the client(s) he or she represents upon addressing the
body.
B. Any lobbyist who makes an oral lobbying contact with a City representative shall,
at the time of the initial lobbying contact with each City representative, identify himself or
herself as a registered lobbyist and identify the client or clients on whose behalf the
lobbying contact is made.
C. Any lobbyist who makes an initial written lobbying contact (including an electronic
communication) with a City representative and/or City employee shall identify the
client(s) on whose behalf the lobbying contact is made and identify himself or herself as
a registered lobbyist.
1.28.060 Prohibited Acts.
No lobbyist shall:
A. Do any act, or refrain from doing any act, with the express purpose and intent of
placing any City representative under personal obligation to such lobbyist or the
lobbyist's client.
B. Intentionally deceive any City representative with regard to any material fact
pertinent to any pending or proposed legislative, administrative, or quasi-judicial action.
C. Represent, either directly or indirectly, orally or in writing, that he or she can
control or obtain the vote or action of any City representative.
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Ordinance No. 2020-3
Page 7 of 8
1.28.070 Enforcement.
A. Negligent and unintentional violations of this chapter shall be punishable in
accordance with Chapter 1.05 of this Code. Administrative fines for negligent and
unintentional violations of this chapter shall be assessed in the following amounts:
1. A fine not exceeding fifty dollars ($50.00) for a first violation;
2. A fine not exceeding five hundred dollars ($500.00) for a second violation
within one year from the date of a prior violation; and
3. A fine not exceeding one thousand dollars ($1,000.00) for a third violation,
or any subsequent violation, within one year from the date of the prior violations.
The City Clerk shall post on the City website and make available to the public a list of all
lobbyists who have paid fines for violating the provisions of this chapter within the
previous two (2) years.
B. Any person who knowingly and intentionally violates the provisions of this
chapter shall be liable in a civil action brought by the Office of the City Attorney. Any
violation of the provisions of this chapter may result in a civil penalty no greater than five
thousand dollars ($5,000.00) for each violation.
Section 3: The recitals provided in this ordinance are true and correct and are
incorporated herein by this reference.
Section 4: If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this ordinance. The
City Council hereby declares that it would have passed this ordinance and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 5: The City Council finds the introduction and adoption of this
ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant
to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable
indirect physical change in the environment) and 15060(c)(3) (the activity is not a
project as defined in Section 15378) of the CEQA Guidelines, California Code of
Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in
physical change to the environment, directly or indirectly.
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Ordinance No. 2020-3
Page 8 of 8
Section 6: Except as expressly modified in this ordinance, all other sections,
subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code
shall remain unchanged and shall be in full force and effect.
Section is The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be
published pursuant to City Charter Section 414. This ordinance shall take effect thirty
(30) calendar days after its adoption.
This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 28th day of ,January, 2020, and adopted on the 11th day
of February, 2020, by the following vote, to -wit:
AYES:
NAYS:
ABSENT:
WILL O'NEILL, MAYOR
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
tic'__ c_
AARON
C. HARP, CITY ATTORNEY
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