CITY COUNCIL STAFF REPORT
Meeting: April 19, 2022
Subject
Consideration of update on the City of Cupertino Lobbyist Registration Program pursuant to Cupertino Municipal Code Chapter 2.100 regarding lobbying registration and reporting requirements Recommended Action
Receive the update on the City of Cupertino Lobbyist Registration Program pursuant to Cupertino Municipal Code Chapter 2.100 regarding lobbying registration and reporting requirements; provide any direction to staff Discussion
On February 16, 2021, Council adopted Ordinance No. 21-2222 adding the regulation of lobbying activities to Cupertino Municipal Code (CMC) Chapter 2.100. The ordinance (Attachment A) regulates lobbyists who seek to influence legislative and administrative actions taken by City officials and City bodies. Lobbyists (as defined) are required to register with the City annually and pay a registration fee. It also requires lobbyists to disclose their identity and clients when appearing in a lobbying capacity at any meeting with a City official or at a public meeting of the City Council or any other City body.
Definitions
Under CMC Section 2.100.030(n), “lobbying” means influencing or attempting to influence a legislative or administrative action of the City of Cupertino. CMC Section 2.100.030(o) defines “lobbyist” to include three categories:
Contract Lobbyist: A person who engages in lobbying on behalf of one or more clients and who has received or has entered into an agreement for compensation of $1,000 or more for lobbying in any consecutive three-month period.
Business or Organization Lobbyist: Any business or organization, whose owner(s), officer(s) or employee(s) carry out lobbying on its behalf in an aggregate of 10 hours or more in any consecutive 12-month period.
Expenditure Lobbyist: A person who makes payments or incurs expenditures of $5,000 or more during any calendar year with the intent of soliciting or urging other persons to communicate directly with any City official in order to attempt to influence legislative or administrative action.
The ordinance also includes various exemptions from the definition of “lobbyist,” listed in CMC Section 2.100.030(p). These exemptions are applied to avoid infringing on constitutionally protected petitioning activity.
Registration, Reporting, and Fees
Under CMC 2.100.080, lobbyists are required to register with the City Clerk’s Office and pay registration fees to cover the City’s administrative costs. Lobbyists must renew their registration annually by January 15th of each year. As part of registration, lobbyists must disclose their contact information, business information, client contact information, the nature of the clients’ business, the items of legislative or administrative action the lobbyist is seeking to influence, and payments received for lobbying services as a consultant or in any other capacity for services rendered to the City, City officials, City officials-elect, or their controlled committees or ballot measure committees. Additionally, lobbyists must submit quarterly reports disclosing their lobbying activities during each quarter, including the same information disclosed in the annual registration. Quarterly reports for the prior three-month period are due July 15th, October 15th, January 15th, and April 15th. The registration fee for Fiscal Year 21-22 is $178.06. There is a $25 per day fine for delinquent fees. Currently, six lobbyists have registered with the City and as listed in the public portal for lobbyist disclosure (Attachment B).
Enforcement
Violations of the ordinance are subject to the General Penalty provisions in the Cupertino Municipal Code Section 1.12.010. Under this provision, the City Attorney has discretion to prosecute violations as infractions or misdemeanors as appropriate. If a violation is treated as an infraction, the fine would be $100 for the first violation, $200 for the second violation of the same code provision within one year; and $500 for subsequent violations. If a violation is prosecuted as a misdemeanor, violations would be punishable by a fine up to $1,000, imprisonment for up to six months, or both. Violations may also be subject to administrative enforcement under Municipal Code Chapter 1.10.
Sustainability Impact
No sustainability impacts.
Fiscal Impact
The ordinance allows the City to investigate and audit lobbying activity within its jurisdiction and the lobbyists' registration fees cover those regulatory costs. _____________________________________
Prepared by: Kirsten Squarcia, City Clerk
Reviewed by: Christopher Jensen, City Attorney
Approved for Submission by: Dianne Thompson, Assistant City Manager Attachments:
A – Ordinance 21-2222 Regulating Lobbying Activity
B – City of Cupertino Filings for Lobbyist Disclosure
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