200 S. Anaheim Blvd.
Suite #356
Anaheim, CA 92805
Tel: (714) 765-5169
Fax: (714) 765-5123
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
OFFICE OF THE CITY MANAGER
DATE: NOVEMBER 28, 2023
FROM: OFFICES OF THE CITY MANAGER, CITY ATTORNEY AND
CITY CLERK
SUBJECT: ORDINANCE AMENDING SECTIONS 1.11.010 (DEFINITIONS),
1.11.070 (LOBBYIST REGISTRATION) AND 1.11.090 OF
CHAPTER 1.11 (SUNSHINE PROVISIONS) OF THE ANAHEIM
MUNICIPAL CODE TO STRENGTHEN AND EXPAND THE
REGULATIONS APPLICABLE TO LOBBYISTS, AND SECTION
1.11.080 (REVOLVING DOOR) TO MODIFY THE
RESTRICTIONS ON EMPLOYMENT OF LOBBYISTS AND
REQUIRE LOBBYISTS WHO ACT AS ADVISORS TO CITY
OFFICIAL(S) TO REPORT THEIR ACTIVITY
ATTACHMENT (Y/N): YES ITEM # 31
GOVERNMENT CODE § 84308 APPLIES: NO
REQUESTED ACTION:
That the City Council:
1. Introduce an ordinance amending Chapter 1.11 of the Anaheim Municipal Code to i) include in the definition of “Lobbyist” an individual employed or contracted for a role that includes influencing legislative or administrative action as a substantial or regular portion of the employment or contract; ii) provide a more specific definition of “Lobbying”; iii) establish a pro-active auditing process for the Lobbyist Registration Program; iv) limit the ban on hiring lobbyists to one year and restrict it to Council Aides; and v) require lobbyists who are acting as advisors to City Official(s) to report their advisory contacts to the same extent and in the same manner they report lobbying activity; and
2. By Motion, determine that the ordinance relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, Section 15378(b).
DISCUSSION:
At the August 29, 2023 Council meeting, the City Council approved a priority list of reforms stemming from the recommendations in the JL Group investigative report, and a Sunshine Ordinance [Lobbying Provisions and Revolving Door] November 28, 2023
calendar of when these items should be brought forward for City Council discussion and action.
At the September 12, 2023 Council meeting, the City Council provided direction to staff to expand the definition of a lobbyist, strengthen the regulations of the Lobbyist Registration Program and establish an auditing process. Following Council direction, at the October 24, 2023 Council meeting staff presented proposed modifications to the City’s lobbying provisions and Council requested that staff return with an ordinance codifying those proposed changes.
In addition, at the October 24 meeting, staff presented a possible change to the City’s “revolving door” restrictions to address Mayor Pro Tem Natalie Rubalcava’s concern about lobbyists acting as advisors to elected officials. During that discussion, Council directed staff to reduce the time period during which lobbyists could not be employed by the City from two years to one year after their last lobbying activity, and to limit that restriction to the positions of Council Aide, Policy Aide and Chief of Staff to the Mayor.
The Council also requested that a new disclosure requirement for lobbyists serving as advisors to elected officials be considered at the same time as the new proposed lobbyist provisions.
THE CURRENT LOBBYING PROVISIONS
A. Adoption of the Sunshine Ordinance (2017)
In 2017, at the request of then-Council Member Jose Moreno, the City Council added Chapter 1.11 (Sunshine Ordinance) to the Anaheim Municipal Code (“AMC”). Among other things, that ordinance established a lobbyist registration requirement and process.
All persons involved in lobbying activities in the City of Anaheim are required to register with the City Clerk within fifteen (15) days of engaging in those activities, and to file a report with the City Clerk on a quarterly basis detailing their lobbying activities (including who at the City they had contact with and the legislative or administrative action the contact pertained to). The City Clerk is authorized to impose a fine (in an amount set by City Council resolution, which is currently $50) on lobbyists who fail to comply with these provisions. In addition, the Ordinance tasks the City Clerk with preparing an annual report to the City Council outlining the activities of registered lobbyists, as well as a list of any fines assessed or notices issued to those lobbyists.
B. Amendment of the Lobbying Provisions to Add Criminal Penalties (2022) In 2022, at the request of then-Council Member Avelino Valencia, Chapter 1.11 was amended in several respects. As relevant to the lobbying provisions, AMC 1.11.070 was amended to make certain violations of the lobbying regulations a misdemeanor.
Specifically, if a person knowingly or intentionally (1) acts as a lobbyist in the City without having registered as required by the Code, (2) fails to file a report of lobbying activity as required by the Code, (3) files a false or inaccurate report or a report that omits material information required to be disclosed, or (4) conceals or diverts compensation for lobbying activity in order to avoid the requirements of the Code, they may be charged with a misdemeanor and subject to a maximum of six (6) months in jail and a fine of $1,000.
Sunshine Ordinance [Lobbying Provisions and Revolving Door] November 28, 2023
In addition, if convicted, the person will be banned from acting as a lobbyist or otherwise attempting to influence municipal legislation for compensation for one year after that conviction, and three years if convicted of a second violation. These modifications to the lobbying provisions drew a distinction between inadvertent violations of the Code (such as filing a report late), which remain subject to an administrative fine, and intentionally committing more serious violations, which may be charged as a crime.
PROPOSED LOBBYING PROVISIONS
The proposed revisions are included as a red-lined attachment to this staff report and summarized as follows.
A. Definition of Lobbyist
Under the proposed revisions, the definition of “Lobbyist” is expanded to include any individual who is employed or contracted for a role that includes influencing legislative or administrative action as a substantial or regular portion of the employment or contract.
The intent of this revision would be to expand the scope of the City’s lobbyist registration provisions to include both outside paid lobbyists (currently covered) and also those lobbyists who are employed by or work directly for a company or entity on whose behalf they are advocating.
B. Lobbying Activity
The definition of lobbying activity was revised to provide a more objective and clearer standard on what constitutes regulated lobbying. For example, the definition of “influencing” would mean “communicating directly with any elected or appointed official of the City, the staff, aides, or advisers of the Mayor or City Council, any member of the City Executive Team, the Legislative Body, or any board or commission of the City, or taking any other action for the principal purpose of supporting, promoting, influencing, modifying, opposing, delaying, or advancing any legislative or administrative action.” The definition of “legislative or administrative action” would mean “the drafting, introduction, consideration, modification, enactment, adoption, or denial of any ordinance, motion, or resolution under consideration by any elective or appointed official of the City, member of the City Executive Team, the Legislative Body, any City board or commission, or any regional agency in which the City of Anaheim has a voting role, or the granting, award, approval, or denial of any contract, permit, land use entitlement, grant, license, or franchise by the City or any regional agency in which the City of Anaheim has a voting role.”
Regarding the exceptions to the lobbyist provisions, the revisions would clarify the exception relating to licensed professionals (architects, engineers, attorneys, etc.) who are acting in that professional role, without intending to make any substantive revisions to that current exception. The revisions also would add an exception to ensure that those who submit responses to bids are not considered to be lobbying merely by submitting those bids, but who could be considered to be lobbying if they directly communicate with members of the City Council for the purpose of influencing a decision to award or deny a Sunshine Ordinance [Lobbying Provisions and Revolving Door] November 28, 2023
contract. The revisions also include an exemption for labor negotiators who are negotiating a memorandum of understanding with the City.
C. Auditing Provisions
In order to address the Council’s concern about the need for more active enforcement, staff is proposing to add language that would mandate annual audits by the City Auditor of at least 20% of the lobbyists registered in the City. Under the proposed audit provision, the City Auditor would be mandated to periodically seek from any elective or appointed official of the City, the staff, aides, or advisers of the Mayor or City Council, any member of the City Executive Team, or Legislative Body, board or commission of the City, no less frequently than semi-annually, information about past meetings or communications with anyone who reasonably may be considered to have lobbied such individuals based on the definitions in the Ordinance. Were the Auditor to discover, based on that inquiry, individuals who appear to have engaged in lobbying activity but who have not registered as lobbyists or properly reported lobbying activity, the Auditor would notify and forward evidence to the City Clerk and the City Attorney, who would then determine any next steps.
D. Revolving Door Provision
Proposed revisions to the “Revolving Door” provision would limit the ban on hiring lobbyists to one year after the cessation of lobbying activity, as well as restrict it to Council Aide positions (Policy Aides and the Mayor’s Chief of Staff). In addition, lobbyists who are acting as advisors to City Official(s) would be required to report their advisory contacts to the same extent and in the same manner they report lobbying activity. This requirement would apply during the time someone is a registered lobbyist and, to be consistent with the proposed one-year restriction for employing lobbyists, for one year after they cease their lobbying activity in the City.
E. Other Administrative Matters
As part of the new registration process, lobbyists would be required to acknowledge their commitment to retain and provide business records for the City Auditor’s review, and to cooperate with the City with regard to any audit performed. Lobbyists would then be required to retain on file all business records relevant to any lobbying reported in the Quarterly Report for a period of not less than five years from the date the Quarterly Report is filed, and to submit copies, or make original documents available, to the City Auditor upon request.
Currently, the Quarterly Report requires lobbyists to report campaign contributions made during the reporting period. The proposed ordinance amends the code to formalize this requirement in the code.
The proposed ordinance also provides for the Annual Registration of each lobbyist by January 15 of each year unless the Lobbyist has filed a termination report with the City Clerk by such date.
Sunshine Ordinance [Lobbying Provisions and Revolving Door] November 28, 2023
IMPACT ON BUDGET:
There is no impact on the budget.
Respectfully submitted, Respectfully submitted,
Jim Vanderpool Robert Fabela
City Manager City Attorney
Respectfully submitted,
Theresa Bass
City Clerk
Attachments:
1. Ordinance
2. AMC (Redlined)