City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01201 6/18/2024 Consent Item 9.
(Pass for Publication) Ordinance Amending Various Sections of Chapter 2.15 and Section
2.112.030 of the Sacramento City Code, Relating to Lobbyists File ID: 2024-01201
Location: Citywide
Recommendation: 1) Review an ordinance amending various sections of Chapter 2.15 and Section
2.112.030 of the Sacramento City Code relating to Lobbyists; and 2) pass for publication the ordinance title per Sacramento City Code section 32(c) for City Council consideration on June 25, 2024.
Contact: Mindy Cuppy, City Clerk, (916) 808-5442, [email protected], Office of the City Clerk; Gary Lindsey, Senior Deputy City Attorney, (916) 808-5346, [email protected], Office of the City Attorney
Presenter: None.
Attachments:
1-Description/Analysis
2-Ordinance-Redline
3-Ordinance-Clean
Description/Analysis
Issue Detail: On May 16, 2023, after prior deliberations by the Sacramento Ethics Commission and the Personnel and Public Employees Committee, the Law and Legislation Committee passed a motion directing the City Clerk and/or City Attorney to bring back to the Law and Legislation Committee draft amendments to ordinance(s) on behalf of the Sacramento Ethics Commission per committee direction. The matter now before the Law and Legislation Committee is those draft ordinance amendments.
Pursuant to Sacramento City Code section 2.112.030, subsection A, paragraph 1, clause d, the Sacramento Ethics Commission “has the power and duty to . . . review, investigate, and consider complaints alleging violations of . . . Chapter 2.15 (‘Lobbyist Registration and Reporting Code’) ….” Contradictorily, subsection B states the following:
File ID: 2024-01201 6/18/2024 Consent Item 9.
The commission’s authority under subsection A extendsonly to city elected officials, candidates for city elected office, independent expenditure committees, members of boards and commissions, the city manager, the city clerk, the city attorney, the city treasurer, the city auditor, the independent budget analyst, and the public safety accountability officer.
(Emphasis added.) The glaring omission is the word “lobbyist.” The Sacramento Ethics Commission proposes to amend subsection B to add lobbyists, lobbying firms, and lobbyist employers to those whom the commission has the authority with respect to complaints. This is in addition to further amendments to the Lobbyist Registration and Reporting Code (Ch. 2.15) itself in order to accomplish the following modernizations:
1. Changing lobbying registration thresholds to (a) 15 hours per 3-month period for in- house lobbyists and (b) $1,500 per 3-month period for contract lobbyists;
2. Requiring lobbyists’ quarterly lobbying reports to indicate (a) how much lobbying firms are receiving from clients and how much lobbyist employers are paying lobbying firms; in addition to, (b) stating any gifts, campaign contributions, and behested payments made to city officials by a lobbying firm, lobbyist, or lobbyist employer; and
3. Limiting gifts from lobbyists and lobbying firms to an amount valued at less than $10 per month to elected officials, and are prohibiting lobbyists and lobbying firms from directly contributing to campaigns of the elected officials whom they lobby.
Policy Considerations: Approving updates to the Lobbyist Registration and Reporting Code and the related scope of the Sacramento Ethics Commission is in alignment with furthering government transparency.
Economic Impacts: None.
Environmental Considerations: This action is not a project subject to California Environmental Quality Act (CEQA) because it involves only general policy and procedure making and does not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. (CEQA Guidelines, §§ 15002(d), 15378(b) (2), 15061(b)(3)).
Sustainability: Not applicable.
Commission/Committee Action: On October 24, 2022 the Sacramento Ethics Commission passed
File ID: 2024-01201 6/18/2024 Consent Item 9.
a Motion forwarding the general recommendations for modernizing the Lobbyist Registration and Reporting Code to the Personnel and Public Employees Committee for review and deliberation. On April 18, 2023 the Personnel and Public Employees Committee reviewed and provided direction on the Sacramento Ethics Commission recommendation and directing staff to forward the recommendations to the Law and Legislation Committee for deliberation. On May 16, 2023, the Law and Legislation Committee passed a motion directing the City Clerk and/or City Attorney to bring back to the Law and Legislation Committee draft amendments to ordinance(s) on behalf of the Sacramento Ethics Commission per committee direction. The Law and Legislation Committee reviewed the proposed ordinance on May 21, 2024 and passed a motion forwarding the ordinance to the City Council for adoption.
Rationale for Recommendation: These amendments modernize the Lobbyist Registration and Reporting Code and close a loophole in the Sacramento Ethics Commission’s jurisdiction over local lobbying activities.
Financial Considerations: Not applicable.
Local Business Enterprise (LBE): Not applicable.
1 ORDINANCE NO.
Adopted by the Sacramento City Council
Date Adopted
AN ORDINANCE AMENDING VARIOUS SECTIONS OF CHAPTER 2.15 AND SECTION 2.112.030
OF THE SACRAMENTO CITY CODE, RELATING TO LOBBYISTS
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:
SECTION 1.
A. The definition of “lobbyist” in section 2.15.050 of the Sacramento City Code is hereby amended to read as follows:
“Lobbyist,”, unless exempt under subsection D hereunder below, means:
A. Contract Lobbyist. A person who engages in lobbying on behalf of one or more clients (acting individually or through agents, associates, employees or contractors) and who has received or has entered into an agreement for compensation of $3,2001,500 or more for engaging in lobbying during any consecutive three-month period.
B. B usiness or Organization Lobbyist. Any business or organization, whose owners, officers, or employees carry out lobbying on its behalf, in an aggregate amount of 100 15 hours or more within any three-month period, whether or not such officers or employees are specifically compensated to engage in lobbying; provided that the activities of officers shall be considered lobbying only if those officers receive compensation by the business or organization beyond reimbursement for their reasonable, travel, meals or incidental expenses; or
C. Expenditure Lobbyist. A person who makes payments or incurs expenditures of $5,000 or more during any calendar year in connection with carrying out public relations, advertising, or similar activities with the intent of soliciting or urging, directly or indirectly, other persons to communicate directly with any city official in order to attempt to influence legislative or administrative action. The $5,000 threshold does not include:
1. Compensation paid to contract lobbyists or employees for lobbying; or
2. Dues payments, donations, or other economic consideration paid to an organization, regardless of whether the dues payments, 2 donations, or other economic consideration are used in whole or in part to lobby.
D. Exemptions to “lobbyist” are:
1. Any public official acting in their official capacity or acting within the scope of their employment or appointment;
2. The media, when limiting its action to the ordinary course of news gathering or editorial activity, as carried out by members of the press. “Media” means newspapers or any other published periodical, radio or television station or network, or information published on the iInternet.
This exemption also applies to neighborhood newsletters, flyers, or gazettes;
3. P ersons reimbursed for only their reasonable travel, meals , or incidental expenses, including but not limited to, uncompensated members or directors of non-profit organizations such as chambers of commerce;
4. P ersons whose communications regarding any legislative or administrative action are limited to appearing or submitting testimony at any public meeting held by the city or any of its agencies, offices, or departments, as long as the communications are public records available for public review. Notwithstanding the foregoing, persons who otherwise qualify as lobbyists must register and disclose their lobbying activities directed toward city officials, in the same manner and to the same extent such registration and disclosure is required of all other lobbyists;
5. Persons submitting bids or responding to requests for proposals, provided the provision of such information is limited to direct conversation or correspondence with the official or department specifically designated to receive such information;
6. Persons providing oral or written information pursuant to a subpoena or otherwise compelled by law or regulation, or in response to an official request provided that the request and response thereto are public records available for public review;
7. Persons whose communications relate to:
a. The establishment, amendment, administration,
implementation, or interpretation of a collective bargaining 3 agreement or a memorandum of understanding between the city and a recognized employee association.
b. Management decisions as to the working conditions of represented employees that clearly relate to the terms of a collective bargaining agreement or memorandum of
understanding between the city and a recognized employee association.
c. Proceedings before the City of Sacramento Civil Service Board.
B. Except as amended by subsection A above, all provisions of section 2.15.050 remain unchanged and in full effect.
SECTION 2.
Section 2.15.120 of the Sacramento City Code is hereby amended to read as follows:
2.15.120 Disclosure.
The initial registration shall contain the name, primary contact, business address, telephone number, and email address of all persons required to register pursuant to this chapter, including the names of all owners of sole proprietorships and partnerships of fewer than 10 persons. If the registrant is a corporation, it shall also include the names of the president, secretary, treasurer or chief financial officer, and agent for service of process, if any. Any business or organization registering under this chapter shall also briefly describe the nature of its business or organization. In addition to this information, the report shall contain the following:
A.
Contract Lobbyist. The name, business address, telephone number, and email address of each client, ; the nature of each client’s business and the item ofeach legislative or administrative action the lobbyist is seeking to influence on behalf of the client; the dollar amount of either the received or agreed-upon compensation, whichever is greater, from each client regarding each legislative or administrative action the lobbyist is seeking to influence on behalf of the client; and the name of each person employed or retained by the lobbyist to lobby on behalf of each client.
B. Business or Organization Lobbyist. The names of owners, officers, or employees conducting lobbying activities; and the item ofeach legislative or administrative action the lobbyist is seeking to influence; and the dollar amount, in terms of salary or wages, of the time spent by each owner, officer, or employee who conducted lobbying activities for each legislative or administrative action.
C. Expenditure Lobbyists. The item of legislative or administrative action the lobbyist is seeking to influence.
4 D. All campaign contributions, gifts, and payments of any kind by a lobbyist or a client at the lobbyist’s behest, to any city official, (identified by name and by office), to a controlled committee, office holder’s fund or legal expense fund, given personally or through an intermediary, totaling $100 or more, made during the calendar quarter.
E. Payment received by the reporting lobbyist for services as a consultant or in any other capacity for services rendered to a city agency, any city official or their controlled committees, any officeholder committee, or ballot measure committee. The dates of payment and name of each payer shall must be included.
F. The name, address, title, telephone number, and email address of the person responsible for preparing the report, together with that individual’s signature attesting to the authority of the signatory and the accuracy and truthfulness of the information submitted.
SECTION 3.
Section 2.15.170 of the Sacramento City Code is hereby amended to read as follows:
2.15.170 Prohibitions.
A. It shall be unlawful for any No lobbyist to shall commit any one of the following acts:
A1. Deception. Deceiving or attempting to deceive any city official with regard to any material fact pertaining to any pending or proposed legislative or administrative action.
B2.
Unauthorized Communications. Sending or causing any communication to be sent to any city official in the name of any non-existent person or in the name of an existing person without the express or implied consent of such person.
C3. Fictitious Persons. Contacting any officer of the city official in the name of any non-existent person or in the name of any existing person, except with the consent of such existing person.
D4. Indirect Violations. Attempting to evade the requirements of this ordinance chapter through indirect efforts or through the use of agents, associates, intermediaries, or employees.
E5. Creation of Obligations. Performing or sponsoring any act with the purpose and intent of placing any city official under personal obligation to the lobbyist.
6. U nlawful Gifts. Making gifts to any city official aggregating more than $10 in a calendar month; acting as an agent or intermediary in the making of such gifts; or arranging for the making of such gifts by any other person. 5 B. No city official shall knowingly accept any gift that is made in violation of subsection A.6 above.
SECTION 4.
A. Subsection B of section 2.112.030 of the Sacramento City Code is hereby amended to read as follows:
B. The commission’s authority under subsection A extends only to city elected officials, candidates for city elected office, independent expenditure committees, members of boards and commissions, the city manager, the city clerk, the city attorney, the city treasurer, the city auditor, the independent budget analyst, and the director of the office of public safety accountability officer, and lobbyists as defined in chapter 2.15.
B. Except as amended by subsection A above, all provisions of section 2.112.030 remain unchanged and in full effect.
Adopted by the City of Sacramento City Council on by the following vote:
Ayes:
Noes:
Abstain:
Absent:
MAYOR
Attest:
City Clerk
Passed for Publication:
Published:
Effective:
1 ORDINANCE NO.
Adopted by the Sacramento City Council
Date Adopted
AN ORDINANCE AMENDING VARIOUS SECTIONS OF CHAPTER 2.15 AND SECTION 2.112.030
OF THE SACRAMENTO CITY CODE, RELATING TO LOBBYISTS
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:
SECTION 1.
A. The definition of “lobbyist” in section 2.15.050 of the Sacramento City Code is hereby amended to read as follows:
“Lobbyist,” unless exempt under subsection D below, means:
A. Contract Lobbyist. A person who engages in lobbying on behalf of one or more clients (acting individually or through agents, associates, employees or contractors) and who has received or has entered into an agreement for compensation of $1,500 or more for engaging in lobbying during any consecutive three-month period.
B. Business or Organization Lobbyist. Any business or organization, whose owners, officers, or employees carry out lobbying on its behalf, in an aggregate amount of 15 hours or more within any three-month period, whether or not such officers or employees are specifically compensated to engage in lobbying; provided that the activities of officers shall be considered lobbying only if those officers receive compensation by the business or organization beyond reimbursement for their reasonable, travel, meals or incidental expenses; or
C. Expenditure Lobbyist. A person who makes payments or incurs expenditures of $5,000 or more during any calendar year in connection with carrying out public relations, advertising, or similar activities with the intent of soliciting or urging, directly or indirectly, other persons to communicate directly with any city official in order to attempt to influence legislative or administrative action. The $5,000 threshold does not include:
1. Compensation paid to contract lobbyists or employees for lobbying; or
2. Dues payments, donations, or other economic consideration paid to an organization, regardless of whether the dues payments, 2 donations, or other economic consideration are used in whole or in part to lobby.
D. Exemptions to “lobbyist” are:
1. Any public official acting in their official capacity or acting within the scope of their employment or appointment;
2. The media, when limiting its action to the ordinary course of news gathering or editorial activity, as carried out by members of the press. “Media” means newspapers or any other published periodical, radio or television station or network, or information published on the internet.
This exemption also applies to neighborhood newsletters, flyers, or gazettes;
3. Persons reimbursed for only their reasonable travel, meals, or incidental expenses, including uncompensated members or directors of non-profit organizations such as chambers of commerce;
4. Persons whose communications regarding any legislative or administrative action are limited to appearing or submitting testimony at any public meeting held by the city or any of its agencies, offices, or departments, as long as the communications are public records available for public review. Notwithstanding the foregoing, persons who otherwise qualify as lobbyists must register and disclose their lobbying activities directed toward city officials in the same manner and to the same extent such registration and disclosure is required of all other lobbyists;
5. Persons submitting bids or responding to requests for proposals, provided the provision of such information is limited to direct conversation or correspondence with the official or department specifically designated to receive such information;
6. Persons providing oral or written information pursuant to a subpoena or otherwise compelled by law or regulation, or in response to an official request provided that the request and response thereto are public records available for public review;
7. Persons whose communications relate to:
a. The establishment, amendment, administration,
implementation, or interpretation of a collective bargaining agreement or a memorandum of understanding between the city and a recognized employee association.
3 b. Management decisions as to the working conditions of represented employees that clearly relate to the terms of a collective bargaining agreement or memorandum of
understanding between the city and a recognized employee association.
c. Proceedings before the City of Sacramento Civil Service Board.
B. Except as amended by subsection A above, all provisions of section 2.15.050 remain unchanged and in full effect.
SECTION 2.
Section 2.15.120 of the Sacramento City Code is hereby amended to read as follows:
2.15.120 Disclosure.
The initial registration shall contain the name, primary contact, business address, telephone number, and email address of all persons required to register pursuant to this chapter, including the names of all owners of sole proprietorships and partnerships of fewer than 10 persons. If the registrant is a corporation, it shall also include the names of the president, secretary, treasurer or chief financial officer, and agent for service of process. Any business or organization registering under this chapter shall also briefly describe the nature of its business or organization. In addition to this information, the report shall contain the following:
A. Contract Lobbyist. The name, business address, telephone number, and email address of each client; the nature of each client’s business and each legislative or administrative action the lobbyist is seeking to influence on behalf of the client; the dollar amount of either the received or agreed-upon compensation, whichever is greater, from each client regarding each legislative or administrative action the lobbyist is seeking to influence on behalf of the client; and the name of each person employed or retained by the lobbyist to lobby on behalf of each client.
B. Business or Organization Lobbyist. The names of owners, officers, or employees conducting lobbying activities; each legislative or administrative action the lobbyist is seeking to influence; and the dollar amount, in terms of salary or wages, of the time spent by each owner, officer, or employee who conducted lobbying activities for each legislative or administrative action.
C. Expenditure Lobbyists. The item of legislative or administrative action the lobbyist is seeking to influence.
D. All campaign contributions, gifts, and payments of any kind by a lobbyist or a client at the lobbyist’s behest, to any city official (identified by name and by office) to a 4 controlled committee, office holder’s fund or legal expense fund, given personally or through an intermediary during the calendar quarter.
E. Payment received by the reporting lobbyist for services as a consultant or in any other capacity for services rendered to a city agency, any city official or their controlled committees, any officeholder committee, or ballot measure committee. The dates of payment and name of each payer must be included.
F. The name, address, title, telephone number, and email address of the person responsible for preparing the report, together with that individual’s signature attesting to the authority of the signatory and the accuracy and truthfulness of the information submitted.
SECTION 3.
Section 2.15.170 of the Sacramento City Code is hereby amended to read as follows:
2.15.170 Prohibitions.
A. No lobbyist shall commit any of the following acts:
1. Deception. Deceiving or attempting to deceive any city official with regard to any material fact pertaining to any pending or proposed legislative or administrative action.
2. Unauthorized Communications. Sending or causing any communication to be sent to any city official in the name of any non-existent person or in the name of an existing person without the express or implied consent of such person.
3. Fictitious Persons. Contacting any city official in the name of any non- existent person or in the name of any existing person, except with the consent of such existing person.
4. Indirect Violations. Attempting to evade the requirements of this chapter through indirect efforts or through the use of agents, associates, intermediaries, or employees.
5. Creation of Obligations. Performing or sponsoring any act with the purpose and intent of placing any city official under personal obligation to the lobbyist.
6. Unlawful Gifts. Making gifts to any city official aggregating more than $10 in a calendar month; acting as an agent or intermediary in the making of such gifts; or arranging for the making of such gifts by any other person.
B. No city official shall knowingly accept any gift that is made in violation of subsection A.6 above.
5 SECTION 4.
A. Subsection B of section 2.112.030 of the Sacramento City Code is hereby amended to read as follows:
B. The commission’s authority under subsection A extends only to city elected officials, candidates for city elected office, independent expenditure committees, members of boards and commissions, the city manager, the city clerk, the city attorney, the city treasurer, the city auditor, the director of the office of public safety accountability, and lobbyists as defined in chapter 2.15.
B. Except as amended by subsection A above, all provisions of section 2.112.030 remain unchanged and in full effect.
Adopted by the City of Sacramento City Council on by the following vote:
Ayes:
Noes:
Abstain:
Absent:
MAYOR
Attest:
City Clerk
Passed for Publication:
Published:
Effective: