June 15, 2011

Richard Glazer, Esq., Chairman
Philadelphia Board of Ethics
1441 Sansom Street, 2nd floor
Philadelphia,   PA  19102

Re:  Comments to Philadelphia Board of Ethics Regulation No. 9, Lobbying

Dear Chairman Glazer:

On behalf of the Greater Philadelphia Chamber of Commerce (GPCC) I am submitting the following comments on Regulation No. 9, Lobby Registration and Reporting requirements.

According to many reports, Council Bill 100127, was modeled on Pennsylvania’s lobbying registration law.  Philadelphia’s new lobbyist law and draft regulations, however, go well beyond the Commonwealth’s requirements and impose a significant reporting burden on government affairs professionals and on the officials who must collect this information. 

Fees

By comparison, the fees related to the registration and reporting of lobbying activities at the state level and in the City of Philadelphia are greatly disparate.  Just this year, the cost to register as a state lobbyist or principle rose from $100 to $200, and is collected on a biennial basis.  This rate is compared to the City’s required $500 annual registration fee.  To a small firm or small organization, these fees and the burden of the related reporting requirements are significant.

Filing

State lobbying registration and quarterly expenses reports can be completed and reviewed online.  At what point will this resource be available in Philadelphia?  Have efforts been made to utilize forms and software similar to those at the state level, to minimize questions and confusion?  Again, the burden of the additional and extensive reporting requirements under this new law and draft regulations is very significant.

Expense Reporting

The lobbying registration and reporting bill approved by City Council states that expense reports “must identify the subject matter, issue, administrative action, or legislative action (including bill number) being lobbied.”

First, this provision of the legislation goes well beyond state regulations which require two basic elements: lobbying expenditure calculations and a listing of general subject categories addressed during the reporting period. 

Second, the draft regulations go further still than both state regulations and the Council legislation, by requiring extensive intangible and non-expense related information concerning direct communications:

  • Specific information regarding the position taken
  • Detailed information on each individual lobbied
  • Dates of each communication

Under the draft regulations, even more information is required with regard to indirect communications, which could include private communication with members and clients:

  • Specific subject matter
  • Description of persons to whom the indirect communication was directed
  • Method used for the indirect communication

Guidelines

Following enactment of Pennsylvania’s lobbyist registration and reporting law, a committee of officials, practitioners, and stakeholders was formed to develop workable regulations for the state lobbying reporting system.  On behalf of the business community, we would welcome the opportunity to work with the Board of Ethics and others responsible for the implementation of Philadelphia’s new lobbying law to develop similarly workable and responsible guidelines and regulations. 

The overall concern of the business community is that these regulations are not consistent with state requirements and are, in fact, more demanding as far as the level of detail required in providing direct and indirect communications.  These administrative requirements will be very onerous on small businesses and the costs will be prohibitive on small and large businesses depending on how many people will be required to register.

The following are specific concerns of our membership that have been brought to our attention for clarification:

  • The Definition of Administrative Action (9.1B) seems overly broad. 

Specifically: 

  • Subsection (d) includes “administration of a contract” which would include activities and conversations which occur in the day-to-day ordinary business.  This language seems to conflict with 9.16I(7).
  • Subsection (e) “Solicitation … or agreement involving the disbursement of public moneys” would include the negotiations of co-sponsored public/private events including conversations around parades, conventions, etc.
  • Subsection (f), “Determination with respect to…the use of real property subject to City regulation” would include ordinary conversations which occur in the day-to-day about property use.
  • Subsection (g)(ii), “Determination with respect to … a license or permit for use of real property of the City” would include all permits related to ordinary course of business for installations and work.
  • Subsection (h), adjudication of claims seems to conflict with the exception in 9.24J. 
  •  The Reporting of Direct and Indirect Communications (9.15) seems onerous should the broad definition of 9.1B remain in place. 

The reporting obligations appear to require that all lobbyists (and, possibly, other individuals working for any principal) record detailed information on each and every contact with the City.  It is also unclear if the reporting obligation also extends to a city administration or elected official initiating contact with a principal. 

The legislation requires a memo on each and every lobbying contact that would be difficult, if not impossible, to produce in any report which can be of use to the Ethics Board. 

  •  Clarification of Gifts. 

The current language regarding gifts needs to be clarified with regard to current city laws prohibiting or limiting gifts to clarify that the current language does not override the prohibition of gifts to City officials or employees, but just requires reporting of gifts to City Council and its staff.

We respectfully request answers to the following questions:

Specifically, are the following items reportable?

  • The cost of regular newsletter correspondence to our members
  • If Council requests an organization such as ours to do an economic study, etc.
  • Is Council participation in a reception a reportable expense if the event in open to the organization’s membership and broadly attended.
  • Must an organization calculate overhead into their reporting requirements.
  • Obtaining speakers for outside organizations.
  • Getting elected officials to ribbon cutting ceremonies.

Hospitals are an important and significant part of the City of Philadelphia’s economy and contribute to the City’s reputation as a center for academic and medical excellence. 

Necessitated by the continued growth in the nation and region’s health care industry, hospitals have on-going, complex construction projects and infrastructure improvements.  Consequently, frequent discussion and collaboration take place between hospitals’ facilities’ departments and city officials at both the elected, appointed and administrative levels.  Throughout this process, facilities’ staff may be called upon with some frequency to meet with and provide information to city officials.

As such, we would appreciate further clarification as to whether the above mentioned activities would be considered lobbying under the proposed regulations or whether they would be exempted activities.

Finally, we are requesting that each lobbyist that registers be given a City identification badge that would grant them entrance into all city buildings.  Thank you for your consideration and for this opportunity to comment.

Sincerely,

Joseph W. Mahoney, Jr.
Executive Vice President