Posted 7-9-99
MEMORANDUM
July 1, 1999
To: Members of the City Ethics Commission
From: LeeAnn. Pelham Deputy Director and Justine Block Policy Analyst
At the City Ethics Commission meeting on June 16, 1999, the Commission concluded that public disclosure requirements should apply to efforts to initiate and influence a Los Angeles County Local Government Formation Commission ("LAFCO") petition to reorganize the City of Los Angeles, and adopted a three-tiered approach to address this need. The Commission's motion directed the staff to:
I1)draft an ordinance that could be adopted as part of City law to require disclosure by those raising and spending funds to support or oppose a LAFCO reorganization petition when it specifically affects the City of Los Angeles;
2) communicate the City Ethics Commission's support of the adoption of lobbying disclosure requirements by LAFCO; and
3) explore state legislative options to "tend current campaign disclosure requirements to this process statewide.
The status of these efforts appears below for your information.
Attached for your consideration is a preliminary draft of an ordinance that would require persons raising and spending funds to support or oppose a LAFCO reorganization petition in the City of Los Angeles. This ordinance would add a new section to the Los Angeles Municipal Code (proposed section 49.7.11) to define within City law a 11 reorganization committee" and require such committees to file statement of organization and disclosure statements of contributions received and expenditures made. The statements filed by such committees would be the same as those required by ballot measure committees pursuant to state law.
Also attached for your consideration is a draft letter to the Members of the Los Angeles County Local Agency Formation Commission that would urge them to consider adopting rules to require public disclosure of lobbying efforts. In addition, the letter provides them with information about the City's lobbying regulations and offers our assistance in their efforts.
Please feel free to contact LeeAnn Pelham before July 8 should you have any comments or changes to the letter.
In response to the Commission's request that we explore state legislative options to extend current campaign disclosure requirements to the LAFCO study and reorganization process, we spoke with the Steve Churchwell, the FPPCs General Counsel, to discuss the possibility that the FPPC would revisit its Fontana Opinion and related- advice. Based on our discussion, the FPPC staff agreed to reexamine the conclusions contained in that Opinion in light of the facts of the reorganization effort. In order to initiate this reevaluation, we will send a letter and all background materials to the FPPC requesting them to revisit Fontana and, if necessary, consider amendments to its regulations or consider, alternatively, whether an amendment to the Political Reform Act is needed.
An ordinance adding a new Section 49.7.11 to the Los Angeles Municipal Code to add disclosure requirements for persons raising and spending funds to support or oppose petition circulated pursuant to the Cortese-Knox Local Government Reorganization Act of 1985, as amended.
THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS:
Section 1. A new Section 49.7.11 is hereby added to the Los Angeles Municipal Code to read:
SEC. 49.7.11. DISCLOSURE OF CONTRIBUTIONS AND EXPENDITURES IRELATING TO PETITIONS CIRCULATED PURSUANT TO THE CORTESE-KNOX LOCAL GOVERNMENT REORGANIZATION ACT OF 1986, AS AMENDED.
A. Findings. The following findings are adopted in conjunction with the enactment of this section:
1. The people of the City of Los Angeles have a right to know the identity of persons seeking to influence voters concerning whether to support or oppose a petition for reorganization pursuant to Cortese-Knox Local Government Reorganization Act of 1985, as amended.
2. Receipts and expenditures in campaigns to support or oppose a reorganization petition should be fully and truthfully disclosed so that voters may be fully informed and improper practices may be inhibited.
B. Definitions. For purposes of this section only, the following terms shall have the meanings set forth below. Other terms used but not defined in this section shall have the meanings set forth in the California Political Reform Act of 1974, as amended, and in the regulations of the California Fair Political Practices Commission, as amended, if defined therein.
Contribution means a "contribution" as defined in the California Political Reform Act of 1974, as amended, and the regulations of the California Fair Political Practices Commission, with the exception that the phrase "made for political purposes" shall mean "made for the purpose of influencing or attempting to influence the action of the voters for or against the qualification of a reorganization petition relating to the City of Los Angeles. '
Expenditure means an "expenditure" as defined in the Political Reform Act of 1974, as amended, and the regulations of the Fair Political Practices Commission, with the exception that the phrase "made for political purposes" shall mean *made for the purpose of influencing or attempting to influence the action of the voters for or against the qualification of a reorganization petition relating to the City of Los Angeles."
Independent Expenditure means an "independent expenditure,, as defined in the Political Reform Act of 1974, as amended, and the regulations of the Fair Political Reform Act, with the exception that the phrase 'made for political purposes" shall mean made for the purpose of influencing or attempting to influence the action of the voters for or against the qualification of a reorganization petition relating to the City of Los Angeles."
Disclosure Statement means a statement filed pursuant to this section containing the same information required to be contained in a campaign statement filed pursuant to the California Political Reform Act of 1974, as amended.
Reorganization means a change of organization, reorganization or special reorganization governed by Division 3 of Title 5 of the California Government Code (the Cortese-Knox Local Government Reorganization Act of 1985, as amended).
Reorganization Committee means a committee which is formed or existing for the purpose of supporting or opposing the qualification of a reorganization petition relating to the City of Los Angeles, regardless of whether the committee is also formed or existing for other purposes.
Reorganization Petition means a petition seeking a reorganization relating to the City of Los Angeles pursuant to the Cortese-Knox Local Government Reorganization Act of 1985, as amended.
A reorganization committee that has not otherwise qualified ' as a recipient committee within the meaning of the California Political Reform Act of 1974, as amended, and which has not filed a statement of organization pursuant to that Act, shall file a statement of organization with the City Ethics Commission within ten days after it has received contributions of $1,000 or more during a calendar year in connection with a reorganization relating to the City of Los Angeles. The statement of organization filed pursuant to this section shall contain the same information and shall be filed on the same form as a statement of organization filed with the Secretary of State pursuant to the Act.
1. A reorganization committee which receives contributions or makes expenditures, including independent expenditures for the purpose of influencing the voters regarding a reorganization petition shall file disclosure statements on the following dates:
(a) No later than April 30 for the period January I through March 31. (b) No later than July 31 for the period April 1 through June 30. (c) No later than October 31 for the period July 1 through September 30. (d) No later than January 31 for the period October 1 through December 31.
2. Each disclosure statement required by this section shall contain the same information required to be contained in a campaign statement filed pursuant to the California Political Reform Act, as amended.
3. Disclosure statements shall be filed with the City Ethics Commission on campaign statement forms promulgated by the California Fair Political Practices Commission. The rules concerning the filing of these statements and the requirements for retention of these statements shall be the same as the provisions of the California Political Reform Act and regulations of the California Fair Political Practices Commission governing campaign statements filed pursuant to that Act.
This section shall become operative on
July 8, 1999
Members of the Los Angeles County Local Agency Formation Commission 383 Kenneth Haim Hall of Administration 500 West Temple Street Los Angeles, California 90012
Dear Honorable Members:
We are writing to urge you to consider adopting rules to require public disclosure of lobbying efforts to influence the Local Agency Formation Commission ("LAFCO") special reorganization process, including studies and proposals, considered by your agency.
As you may know, in 1990 the voters of the City of Los Angeles approved Proposition H, a Charter amendment to establish the City Ethics Commission, a semi-independent agency to administer and enforce the City's lobbying, ethics, and campaign finance laws. As part of that mandate, the City Ethics Commission makes legislative recommendations to the Mayor and City Council and provides assistance to other agencies and public official's regarding laws relating to campaign finance, governmental ethics and lobbying disclosure.
At the June 16, 1999, meeting of the City Ethics Commission, the Commission considered a staff report regarding the public disclosure obligations of groups that are raising and spending funds to support or oppose secession from the City of Los Angeles. (A copy of the staff report and draft minutes of our discussion are attached for your reference.) As a result of that discussion, the City Ethics Commission adopted a motion to express its support of efforts to require public disclosure of lobbying efforts aimed at influencing the LAFCO special reorganization process.
LAFCO's consideration of proposals for special reorganization is an important process that deals with fundamental issues of local governance. It is also a process that will require the expenditure of significant public and private resources and will yield significant long-term consequences. It is our view that the public interest would be well served by disclosure of the private sources that pay lobbyists to influence the special reorganization process as well as expenditures made as part of those efforts. We believe that by providing public access to such information, LAFCO will be taking an important step toward maximizing public confidence in the special reorganization process.
As you may know, the disclosure of lobbying compensation and expenditures is commonly required at all levels of government, including the City of Los Angeles, the Los Angeles Metropolitan Transit Authority, the County of Los Angeles, and the State of California. While the specific regulations of each jurisdiction vary, each requires disclosure of the persons attempting to influence their decisions and a public reporting of the lobbying expenditures that relate to those efforts.
We therefore encourage you to similarly adopt lobbying disclosure provisions so that the public can be fully informed about the LAFCO special reorganization process. For your information, we are enclosing a copy of the City's municipal lobbying ordinance and our most recent quarterly summary of lobbying activities in the City.
Should you wish any additional information about the City's lobbying ordinance, or if we can provide any assistance to your staff as you consider adopting lobbying regulations for LAFCO, please feel free to contact our Executive Director, Rebecca Avila at (213) 847-03 10.
Thank you for your consideration.
Sincerely, Richard Walch President, Miriam Krinsky Commissioner, Art Mattox Commissioner, Paul Krekorian Commissioner