Board of Ethics Modifying New City Lobbying Regulations

In response to comments received by the Board of Ethics from PACDC, the Bar Association and others in June on their draft local lobbying regulations, Board staff has been drafting changes to the proposed regulations.  The three main issues that PACDC commented on are being addressed: 

1)     Reduce the registration fee

2)     Streamline the reporting requirements

3)     Narrow the scope of Administrative actions considered lobbying, so that regular interactions our members have with City agencies as part of their normal work will not count as lobbying.  

The Board of Ethics is expected to decide on the proposed changes at their September 21^st board meeting.  Once approved by the Board of Ethics and Law Department and published by the Records Department, the new regulations would take place, likely sometime during the last quarter of 2011.  The Board of Ethics will hold training on the new regulations once approved. 

The testimony PACDC submitted is below. 

"Thank you for the opportunity to submit written testimony on the City of Philadelphia’s proposed new regulations regarding lobbying on behalf of the Philadelphia Association of Community Development Corporations.  PACDC is a citywide association of 90 non-profit community development corporations and other organizations working to revitalize Philadelphia’s neighborhoods and address the needs of lower-income residents.

While we appreciate the effort the Board of Ethics has undertaken to draft regulations regarding lobbying in Philadelphia, we have significant concerns about the impact these proposed regulations will have on the work of our membership.  While we understand the need to track who is actively engaged in influencing legislation, regulations and executive orders, and how, the scope of these regulations go far beyond what has traditionally been considered lobbying.

Our reading of the proposed regulations is that they would require hundreds of community development corporations’ staff to register as lobbyists based on the regular interactions they have with City agencies to advance their charitable work.  As a result, they would impose significant costs on these non-profits of registering and complying with the extensive reporting requirements that will divert resources from the work they undertake to advance neighborhood revitalization and address the needs of lower-income residents.

Our specific concerns and recommendations include:

·         9.1 Definitions, Section B, Administrative action on page 1-2 of the regulations: The definition for what constitutes an Administrative action that is construed as lobbying is much too broadly defined.  In particular, we believe section (f) and section (g) below should be viewed as routine communications with public officials but not lobbying.

o                                (f) Determination with respect to zoning or the use, development, or improvement of real property subject to City regulation;

o                                (g) Determination with respect to any of the following:

(i)                                         the terms of the acquisition or disposition by the City of any interest in real property;

(ii)                                        a license or permit for the use of real property of or by the City;

(iii)                                       or a franchise or concession; or

A significant part of a community development corporation’s day to day work involves communications with city officials to advance their affordable housing development, housing preservation, commercial real estate development, commercial corridor revitalization, and other community development activities being funded by city agencies such as the Office of Housing and Community Development and the Commerce Department.  This work requires ongoing interactions with the Department of Licenses and Inspections, the Planning Commission, the Philadelphia Water Department, the Department of Parks and Recreation, and the Zoning Board of Adjustment among other agencies.

These are regular administrative procedures required to advance their work and should not be construed as lobbying.  Instead they should be considered “Communications with a City official or employee on a routine, ministerial matter (that) is not lobbying” as stated in Section I on page 15 of the regulations.

·         In the definition of the word “lobbyist”  (Section Z, page 6) and Registrant (Section GG, p. 7), it is not clear as to who must register.  Is it the Principal of the firm or all staff who are engaged in direct or indirect lobbying for more than 20 hours per quarter of the fiscal year?

If it is anyone engaged in the activities broadly defined as lobbying under these regulations, it would result in multiple staff from many of our member organizations being subject to the regulations and registration and reporting requirements.  This should be clarified.

·         9.5 Annual Registration Fee (page 8):  We believe that the $500 annual fee is too high for non-profits and will discourage compliance with the spirit of the legislation and may in some cases curtail communications between private individuals and the City.  Based on who/how many staff are required to register per organization, it would impose significant new costs on non-profits at a time when budgets are already constrained.  Rather than instituting high, new fees, PACDC believes these funds would be better spent on advancing the non-profits charitable missions.

At a minimum, the annual fee for lobbyist associated with non-profit organizations should be reduced and/or only the organization should be required to register and pay the fee.

·         9.15 Reporting of Direct and Indirect Communications (p. 12-13):  The reporting requirements are too onerous and go far beyond federal requirements.  They should be streamlined.

We urge the Board of Ethics to modify these regulations to address these concerns before the regulations are implemented.  Thank you for the opportunity to comment and please feel free to contact us if you have any questions."