Tag Archives: Arman Tarzi

Municipal Ethics

Los Angeles Ethics Commissioners Fail To Understand Their Powers And Duties Under The City Charter And Thereby Inadvertently (??) Set The Stage For Exempting Nearly All 501(c)(3) Tax Exempt Organizations In Los Angeles From The Municipal Lobbying Ordinance

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It seems like forever now, although it’s only been two years, that the Los Angeles Ethics Commission has been discussing proposed changes to the Municipal Lobbying Ordinance (MLO). At this point I just don’t have it in me to summarize the discussion any more, although you can find links to most of my posts on the subject in this post on the penultimate phase of the matter.

At the Commission’s meeting on Tuesday, which you can watch in its entirety right here (or here on Archive.Org if you prefer), there were only two matters left to settle. One was the issue of detailed reporting of contacts between lobbyists and City Officials. I hope to write on what happened with that later on. The other, and the subject of today’s post, had to do with exemptions from the MLO for 501(c)(3) nonprofits. You can watch the whole discussion beginning here. These organizations enjoy some exemptions now by virtue of LAMC §48.03(E,F). You can read the statute for yourself, but essentially it exempts 501(c)(3)s1 which have “… the purpose of representing the interests of indigent persons and whose primary purpose is to provide direct services to those persons…”

As they are wont to do, the staff, in the persons of Director of Policy Arman Tarzi and Mark Low, head of the lobbying program, provided the Commission with a detailed set of recommendations. There were four different options given that had to do with nonprofits, which you can read in the proposal. Of these, three were developed by staff and the fourth2 was provided by nonprofits and proposed to exempt all nonprofits, no matter what they do, which have gross annual receipts of under $2.5 Million.

Never content to leave well enough alone, these hyperorganized nonprofits presented the Commission with a so-called “Option 5,” which they circulated at the meeting. This option proposed to modify LAMC §48.03(E) to exempt from the MLO:

E. Any organization exempt from federal taxation pursuant to Section 501(c)(3) of the Internal Revenue Code that:
1. Provides assistance, such as food, clothing, shelter, child care, health, legal, vocational, relief, educational, and other similar assistance to disadvantaged people for free or at a significantly below-market rate; OR
2. Has gross receipts of less than $2.5 million.
This exemption also applies to the organization’s employees and board members while engaged in official duties. This exemption does not apply when an organization is seeking funding, property, or a permit from the City on its own behalf.

Continue reading Los Angeles Ethics Commissioners Fail To Understand Their Powers And Duties Under The City Charter And Thereby Inadvertently (??) Set The Stage For Exempting Nearly All 501(c)(3) Tax Exempt Organizations In Los Angeles From The Municipal Lobbying Ordinance →

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Municipal Ethics

Video Of Third Interested Persons’ Meeting Now Available, Featuring Among Other Things Some Exceptionally Whiny Non-Profits Whose Whole Argument Against Regulation Seems To Be That The Ethics Commission Is Strapping Extra Pianos To Their Back Just Like Donald Trump Does To Poor People, Conveniently Forgetting The Fact That Nonprofit Status Is A Huge Freaking Public Subsidy

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No doubt you recall that the Los Angeles Ethics Commission is presently working on proposing revisions to the Municipal Lobbying Ordinance (MLO) and that part of the process has been to hold a bunch of meetings to gather input. I recorded the first of these, which turned out to be quite interesting. The second focused on neighborhood councils and I’m working on obtaining an audio recording of it.

The third meeting focused on nonprofit organizations that lobby the City. I wasn’t able to make it, but fortunately for all of us, it was recorded by Bobby Buck, a brave citizen journalist. He posted his recording on YouTube for all to watch and listen. The main issue under discussion here is which 501(c)(3) organizations will be exempt from the registration and disclosure requirements of the MLO. Currently the law at §48.03(E) presently exempts 501(c)(3)s from the requirements if they receive:

… funding from any federal, state or local government agency for the purpose of representing the interests of indigent persons and whose primary purpose is to provide direct services to those persons, if the individual or individuals represented by the organization before any City agency provide no payment to the organization for that representation.

The Ethics Commission staff is proposing3 that this be tightened up to exempt only:

501(c)(3) organizations that receive government funding and are created primarily to provide basic life assistance to disadvantaged clients at a rate that is significantly below market (and their employees engaged in the same activity).

The meeting is more than 90 minutes of the usual bitching and moaning, and I’ll write on various episodes as I have time. Tonight’s installment concerns these comments by yet another genius, this one from the Inner City Law Center, who thinks that just because he claims to be doing good in the world no one really has the right to question anything he says or does, let alone subject his organization to any kind of registration or disclosure requirements.4 Turn the page for a transcription of some of his remarks and some commentary.
Continue reading Video Of Third Interested Persons’ Meeting Now Available, Featuring Among Other Things Some Exceptionally Whiny Non-Profits Whose Whole Argument Against Regulation Seems To Be That The Ethics Commission Is Strapping Extra Pianos To Their Back Just Like Donald Trump Does To Poor People, Conveniently Forgetting The Fact That Nonprofit Status Is A Huge Freaking Public Subsidy →

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Municipal Ethics

More Scenes From The First Interested Persons’ Meeting — Über-Lobbyist Bill Delvac Reveals That His Clients Tactically Report Their Opponents In The Land Use Wars To The Ethics Commission As Unregistered Lobbyists But No Action Is Ever Taken — Heather Holt Corrects Him With Provocative Obliquity: “Perhaps No Public Action,” Quoth She

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Oh dear, CPRA material from various BIDs, fascinating stuff, is pouring in as usual and just piling up on my metaphorical desk while I write post after post after post about the Ethics Commission‘s ongoing effort to revise the Municipal Lobbying Ordinance. Well, it can’t be helped, because the MLO is essential.5 Part of the process is holding a bunch of meetings to seek input, the first of which took place last Thursday.6 I’ve also posted my take on the various proposals. I’ll get to the BID stuff as soon as possible, friends, but meanwhile, here’s yet another MLO post.7

If you’ve been following the conversation you’ll know that the lobbyists opposing the proposed revisions have argued consistently that the City doesn’t need more regulations imposed on lobbyists who, according to them anyway, desperately want to follow the law but instead needs to register the herds of unregistered and unregulated lobbyists swarming around City Hall.8

They’re not wrong that there are far, far too many unregistered lobbyists. Turning these people in to the Ethics Commission is one of the main purposes of this blog and I have, uncharacteristically, to agree with the registered lobbyists that there are an awful lot of unregistered lobbyists haunting 200 N. Spring Street and that the ease with which they can be detected is astonishing.9

Where they are wrong is in their claim that there’s some kind of dichotomy between registering the unregistered and revising the laws. Mostly the people pushing this idea, that somehow revising the law and registering the unregistered are mutually exclusive, seem to be doing it only to distract everyone’s attention from how badly the present law needs revision and, possibly, how badly their subterranean activities might be exposed were the law to be revised.

At least that’s how it sounded in last week’s meeting when John Howland, late of the CCALA but more recently employed by Arnie Berghoff and Associates, broke out with the same old routine, of which I’ll spare you a transcription, because it’s essentially content-free. However, at that same meeting supervillainesque land use attorney Bill Delvac also had quite a lot to say, most of which, in contrast to the self-serving contributions of his fellow flacks in the so-called regulated community, was quite interesting.

On the subject of unregistered lobbyists, for instance, Bill Delvac asserted that not only were there bunches of them, but that many of the lawyers who professionally oppose development projects are engaged in lobbying, and that essentially none of them are registered. He also, surprisingly to me, revealed that many of his clients had reported such lawyers to the Ethics Commission but that no action had been taken. Heather Holt, executive director of the Commission, corrected him, saying “perhaps no public action.”

And turn the page for some comments on the more technical parts of what Bill Delvac had to say, including the only colorable argument I’ve ever heard against a compensation-based definition as the main criterion for registration as a lobbyist.10 There is also, as usual, a transcription of all relevant remarks.
Continue reading More Scenes From The First Interested Persons’ Meeting — Über-Lobbyist Bill Delvac Reveals That His Clients Tactically Report Their Opponents In The Land Use Wars To The Ethics Commission As Unregistered Lobbyists But No Action Is Ever Taken — Heather Holt Corrects Him With Provocative Obliquity: “Perhaps No Public Action,” Quoth She →

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Los Angeles City Government, Municipal Ethics

Video Of First Interested Persons Meeting Now Available — See John Howland And Bill Delvac Discuss Whether Neighborhood Council Assent Is Necessary For Development Projects (TL,DR: Yes). This Revelation Makes BID Control Of DLANC Seem Even More Unsavory Than It Already Did

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Yesterday afternoon the Ethics Commission held the first in a series of three meetings to gather even more input from interested parties concerning proposed revisions to the Municipal Lobbying Ordinance. I recorded the whole thing for posterity and you can watch it here:

I’ll be commenting on this and the next meeting11 from time to time, and today I just want to point out an interesting response from seasoned Los Angeles lobbyists John Howland and Bill Delvac12 to an interesting question from Ethics Commission ED Heather Holt. One of the proposals on the table is a requirement that lobbyists report attempts to influence neighborhood councils in addition to the other City agencies they’re already required to disclose information about. In the context of this discussion, Holt asked the lobbyists:

Just out of curiosity, for development projects, is there a general sense that you need a neighborhood council buy-in for it to go anywhere?

In response to this, über-düber lobbyist John Howland smirked and emitted an inarticulate snort, seemingly in disbelief that the boss of the Ethics Commission could ask such a silly question, before saying “yes.” This response was echoed by Bill Delvac, with Howland interjecting the occasional assent:

BD: We’re happy when we get to neutral.
JH: Yeah. Well, yeah.
BD: [Unintelligible] … the Charter and the Code, they’re really not binding. But it matters more to some Councilmen [sic] than it does to others and often [unintelligible] you wanna get their support. I wouldn’t have written the Charter that way, but …

This interchange certainly supports the Ethics Commission’s proposal to subject lobbying directed at neighborhood councils to disclosure, and, interestingly, there didn’t seem to be any actual opposition to this proposal from the lobbyists. So maybe, no matter what gets compromised out of the rest of the proposals, this one will make it through the gauntlet, which is a good thing.13

And turn the page for a discussion of some potential implications, possibly as-yet unconsidered, of this proposal having to do with the fact that, probably uniquely among NCs, the DLANC has a ton of BID staffers on its board of directors.
Continue reading Video Of First Interested Persons Meeting Now Available — See John Howland And Bill Delvac Discuss Whether Neighborhood Council Assent Is Necessary For Development Projects (TL,DR: Yes). This Revelation Makes BID Control Of DLANC Seem Even More Unsavory Than It Already Did →

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Municipal Ethics

In Defense Of Counting Neighborhood Councils As City Agencies In The Context Of The Municipal Lobbying Ordinance

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As you may well know, the City Ethics Commission is in the process of revising the Municipal Lobbying Ordinance. The CEC’s policy staff, led by heroic and long-suffering director Arman Tarzi, has compiled a fantastically useful report on the proposals, and a series of three interested persons meetings are scheduled starting tomorrow to gather even more input.

Right now it looks like at least four of five Commissioners are leaning towards giving the lobbyists whatever random nonsense they request, so your comments and input are essential to the future of the City at this point. Whether or not you can attend any of the meetings, I hope you will be able to send comments to ethics.policy@lacity.org, probably before October 17, which is when the Commission is scheduled to discuss the matter. And I’m also writing posts on particular parts of the proposal which seem important. This one, on including neighborhood councils as City agencies for lobbying disclosure purposes, is the third in the series, and the other two are:

And read on for a description of the proposal and reasons to support it!
Continue reading In Defense Of Counting Neighborhood Councils As City Agencies In The Context Of The Municipal Lobbying Ordinance →

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Announcements, Municipal Ethics

Ethics Commission To Hold Three Meetings Starting Next Week (September 7, 9, 13) To Gather More Input On Revision Of Municipal Lobbying Ordinance — Please Come To Comment!

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City Hall is always being built and rebuilt, and we might as well lend a hand. Never forget that the stone that the builder rejected is become the head of the corner!
Maybe you recall that the Policy Staff of the City Ethics Commission is in the process of proposing revisions to the Municipal Lobbying Ordinance. The proposals were discussed at length at the Commission’s August 15 meeting and, after a bunch of self-serving and mostly mendacious public commentary from a bunch of lobbyists, the Commissioners basically, disgracefully, took the position that even though the staff had been seeking input on the proposals for 18 months, the lobbyists needed even more time to weigh in.

So in furtherance of this ridiculous but nevertheless not-to-be-ignored directive from the Commission, the Policy staff, led by the heroic and long-suffering Arman Tarzi, has scheduled three so-called interested persons meetings to gather even more input. If you were at the meeting you’ll have noticed that mostly only lobbyists commented.14 The Policy staff sent out an email tonight announcing these meetings, and here they are, along with instructions for attending:

  • Thursday, September 7, 2017. 1:30pm – 3:30pm. City Hall, Room 1060 — This meeting is for a general discussion of the Municipal Lobbying Ordinance.
  • Saturday, September 9, 2017. 9:25am – 12:00pm. (Precise time & room TBD) — This meeting is also for a general discussion of the MLO. It is being held as part of the Congress of Neighborhood Councils and it is necessary to register for it separately.
  • Wednesday, September 13, 2017. 10:00am – 12:00pm. City Hall, Room 1070. — This meeting is to focus on input from the nonprofit community.

The Policy staff request that you RSVP for any of these meetings you plan to attend at ethics.policy@lacity.org. If you can’t attend a meeting you can also email your comments to the same address.

I hope to attend the first two, and I really hope that you and/or your friends can too. These revisions of the MLO are essential for improving government transparency and accountability in the City of Los Angeles, and if we let the lobbyists obstruct or eviscerate them, we’ll all be the worse for it. Turn the page for some links to and brief discussions of some of the essential issues.
Continue reading Ethics Commission To Hold Three Meetings Starting Next Week (September 7, 9, 13) To Gather More Input On Revision Of Municipal Lobbying Ordinance — Please Come To Comment! →

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Municipal Ethics

In Defense Of A Change To A Compensation-Based Threshold For Lobbying Registration In Los Angeles

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I wrote yesterday about a troubling meeting of the Ethics Commission concerning revisions to the Municipal Lobbying Ordinance. The proposals are still very much in flux, and timely public comments are not only essential for swaying the wavering commissioners in the right direction, but the commissioners, no matter their other flaws, do seem to read them, so they’re likely to be effective if submitted over the next couple of months.15

I had planned to write a letter to the Commission about all the issues together and publish it here as well, but the more I think about it the more I have to say. Thus I thought it would be much easier for everyone if I wrote about one issue at a time and then edited the posts down into a single letter to the Commission. Also, maybe you’ll find some of my ideas useful in framing your own letters, which should be sent to ethics.policy@lacity.org.

This post, then, is the first installment of that project, and the subject is the proposed change from a time-based registration requirement to a compensation-based requirement. If you have no idea what I’m talking about, you’re surely not alone. Turn the page for an introduction to the issue and arguments in favor of making the change.
Continue reading In Defense Of A Change To A Compensation-Based Threshold For Lobbying Registration In Los Angeles →

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Municipal Ethics

In A Disgraceful Display Of Regulatory Capture, Ethics Commissioners (Except For Andrea Ordin) Drink Lobbyist Kool-Aid With Respect To Lobbying Ordinance Revision, Direct Staff To Acknowledge Even More Bullshit Pissing And Moaning From Lobbyists, And Gleefully Betray Their Duties To The People Of Los Angeles

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A couple weeks ago I wrote about proposed changes to the Municipal Lobbying Ordinance, which were on the agenda for Tuesday’s meeting of the Ethics Commission. The proposed revisions would essentially require more detailed, much quicker disclosure of lobbyists’ projects and clarify precisely who is required to register. Well, the meeting happened. First there was a ton of public comment from lobbyists, all of it the familiar bitching and moaning that the power elite of Los Angeles will typically spew forth when they feel that their power is threatened in any way.

Next there was a series of embarrassing PDAs between Commissioners and lobbyists about how wrong it is to burden the “regulated community”16 with any oversight at all and how, despite all evidence to the contrary, lobbyists actually want to follow the laws. The Commissioners, that is, apart from Andrea Ordin who, alone among her colleagues, seems to remember why we have a lobbying ordinance in this City, basically took the position that if the lobbyists in attendance were upset by the proposed revisions then there was something wrong with the proposals.

Subsequently, the Commissioners asked Director of Policy Arman Tarzi a series of questions displaying their embarrassing ignorance of how lobbying actually works in this City, and finally Commission President Jessica Levinson directed the staff to solicit even more input from lobbyists on how they want to be regulated. This despite the fact that the revision process has already been going on for a year and a freaking half already. Anyway, I taped the whole 90 minutes of discussion, and you can watch it here:

  • Part one — About an hour’s worth of mostly mendacious public comment from lobbyists followed by the beginning of the interrogation of the long-suffering, saintly, heroic Arman Tarzi by Commissioners who, mostly, don’t even seem to have read the material they’re deliberating on, or not to have comprehended it if they did read it.
  • Part two — Ethics Commissioners falling over themselves to state how great lobbyists are and quizzing the staff about matters that, as commissioners, they ought already to understand.

If you’re wondering how important this issue is, just think back to the recent episode of the Skid Row Neighborhood Council formation effort. There we saw massive illegal lobbying efforts directed at successfully employed to convince Jose Huizar to subvert the subdivision election on behalf of anonymous clients who paid more than $45,000 for this service and whose identities, despite the requirements of the MLO, are still unknown to the public. It’s quite plausible that a more timely disclosure of this information would have changed the outcome of the election.

And turn the page for a detailed discussion of the some problems with the proposed revisions that the Commissioners purported to find. As you consider the Commissioners’ cataclysmic failure to regulate lobbying in Los Angeles, keep in mind that it’s people like the residents of Skid Row that they’re failing to protect.
Continue reading In A Disgraceful Display Of Regulatory Capture, Ethics Commissioners (Except For Andrea Ordin) Drink Lobbyist Kool-Aid With Respect To Lobbying Ordinance Revision, Direct Staff To Acknowledge Even More Bullshit Pissing And Moaning From Lobbyists, And Gleefully Betray Their Duties To The People Of Los Angeles →

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