TESTIMONY
Michael McSweeney, City Clerk of the City of New York, on the Regulation of Lobbying Activities and Efforts to Promote Transparency in New York City Government
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13 min
McSweeney explains the responsibilities and activities of the Office of the City Clerk in regulating lobbying in New York City and promoting transparency in government.
- He outlines the history, definitions, reporting requirements, and compliance measures for lobbyists and their clients under the city's lobbying laws.
- He describes efforts to enhance transparency through initiatives like the NYC Lobbying Search database and Open Data platform.
- He provides data on the growth of lobbying compensation, numbers of registered lobbyists/clients, and support services provided by the Lobbying Bureau.
Michael McSweeney
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Chairperson wrestler, council members.
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It is an honor to be invited to testify in the council chambers today.
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I thank the committee on government operations and state and federal legislation for this privilege.
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Let me start by acknowledging some of my senior staff members who are in attendance today.
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Demara Sycasta, deputy city clerk in charge of the lobbying bureau, newly returned deputy general counsel, Jamie Lynn Chirachella, who's joined us, but at this table and general counsel, Patrick Sinmoi.
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Since local law 129 of 2013, has been enacted.
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The lobbying compensation has doubled as you pointed out earlier.
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Our 2014 annual report listed lobbying compensation in the amount of almost $63,000,000 $63,000,000.
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Our most recent report in 2024 listed compensation to the tune of almost $131,000,000.
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In 2000 okay.
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In 2014, we reported that 1972 statements of registration were filed as compared with 2282, which were reported in 2024.
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The office of the city clerk is responsible for the regulation of oil lobbying activity in New York city.
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Our office first regulated lobbying of local officials in 1972 when the council passed local law 72 I'm sorry, local law 79 of 1972, and then local law 86 of 1973.
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Through the lobbying bureau, we conduct outreach training, compliance reviews, audits and investigations, and enforcement to ensure that all entities who attempt to influence New York City government read namely lobbyists and clients, not only file requisite reports timely and accurately, but adhere to the text, and spirit of the law.
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Our primary goal has been and continues to be transparency in government.
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The promotion of transparency in government is a tool that not only educates the public, but also serves as a cornerstone to protect integrity and in government and to combat waste misuse fraud and corruption.
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New York City administrative code sections 3 dash 211 through 3 dash 223 regulate the conduct of lobbyists and their clients.
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There are 2 types of lobbyists the professional standalone lobbyists and lobbyists client filers who are essentially in house lobbyists.
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A lobbyist is a person, business, or organization that is retained by a client to engage in lobbying in New York City.
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A lobbyist's client Feiler is an entity whose employees lobby on behalf of the person in business organization itself.
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The client is any business person or organization who retains employees or designates another entity to engage in lobbying activities on its behalf.
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Currently, there are approximately 200 lobbyists, 450 lobbyist cloud filers and 2282 clients registered in the lobbyists.
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In 2023, 282891 statements of registration were excuse me, filed by lobbyists and lobbyists client filers.
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The law defines lobbying as an attempt to influence 11 specific activities including 1, legislation by the city council, 2, local legislation by the mayor, 3, contracts or public monies, for example, discretionary funds awarded by council members, 4, determinations involving zoning or land use, 5 determinations regarding the sale or purchase of real estate, 6, any determination regarding a rule 7 agency rate making proceedings, 8, the agenda or determination of a New York City board or commission, 9, calendaring or scope of a council oversight hearing, 10 mayoral executive orders, and 11, any support or opposition of federal or state legislation, rule a regulation by a New York City elected official or employee.
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The lobbying reporting system is a self reporting system and the determination of whether an activity is reportable is a detailed facts specific 3 part analysis The filer must first review the 11 defined activities, which I just stated.
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The list of excluded activities and the reporting threshold of over $5000 per year and determine whether reporting is required.
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The obligation is on the filer upon consultation with their counsel if they have one, and they choose or they choose to retain 1, to review the facts and law and report accordingly.
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Ultimately, the filer must look to the nature and intention of the communications with who is communicating with whom and for what purpose and determine whether reporting is required.
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Required reports are client based and include a statement of registration, and up to 6 periodic reports for each client, fundraising and political consulting reports if applicable, and termination notices if applicable.
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Every client is responsible for filing termination notices as well as a client annual report.
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I want to emphasize the point that the lobbying law apply applies the same to all entities regardless of whether an entity is a for profit or a nonprofit organization.
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This includes foundations, not for profit organizations and charities.
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Per the administrative code, all people and all entities that attempt to influence the government the city government fall under the jurisdiction of the office of the city clerk regardless of trade or profession.
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I'd like to point out that there is no such thing as illegal lobbying.
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As lobbying is a constitutionally protected form of freedom of speech.
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The question falls as to whether communication with elected officials or officers or employees of the city government are reportable.
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Since its inception in 1972, the lobbying law has been amended multiple times.
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However, the most significant amendments occurred via local law 15 of 2006 and local law 129 of 2013.
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The amendments contained in local O129 of 2013 were based in large part upon the recommendations of the lobbying commission.
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The lobbying commission consisted of a panel of experts from all areas of government, both public and private sector.
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The amendments of 2013 were expansive and included, an expansion of the definitions of lobbying, increasing the city clerk's reporting requirements, codification of daily late fines for late reports, implementation of a mandatory training program for all lobbyists, initiation of a one time amnesty program and the creation of a system for applications for waivers or reductions of late fines and civil penalties.
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The amnesty period commenced on January 1, 20 16 and continued through June 30 2016.
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The lobbying bureau received 127 applications for amnesty and ultimately 120 entities were granted amnesty allowing them to file reports without penalty.
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From 2013 to 2023, the rules of the city have been amended four times to implement numerous important changes, including the amendment of the rules in their entirety in 2015 to conform to newly mandated provisions of local law 129 of 2013.
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The amendment of section 1 dash 16 d 2 regarding the deadline for submission of amnesty applications.
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The addition of Sections 111c23 to add a provision defining what constitutes minor authorizations by the city planning commission for minor decisions related to real property in most recently 4, amendments to remove automatic extensions granted due to late enrollment per section 111c2.
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In 2018, the lobbying bureau announced the New York City lobbyists search database.
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The enhanced capabilities of this system greatly assisted our continued efforts to promote transparency and government.
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The enhancements included drop down menus by year lobbying subjects and lobbying targets Tech Search capabilities, including the ability to search by any lobbyists, client, employee, or a government target name, the ability to print reports, and the expansion of the available information, including retainer agreements and fundraising and political consulting reports.
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NYC lobbyists search, which is updated twice monthly, has allowed the public to access lobbying information more quickly and more efficiently.
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The implementation of NYC Lobby research allows any member of the public to have information at their fingertips rather than submit a foil request which can be a lengthy and time consuming process.
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In addition, we were able to partner with the NYC Office of Technology And Innovation OTI, formerly known as Dewood.
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To create a lobbyists data platform as part of NYC Open Data.
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The program allows any member of the public to download the higher lobbying database without confidential information in CSV format.
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Both lobbyists search and NYC Open Data have served as a tool for not only the public but also the media and fellow governmental agencies from all levels and from all over the country to conduct their own research and investigations.
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For example, recently, we received inquiries from the City of Chicago and the Federal Reserve Board Department of Research And Statistics.
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And we've had many more going back years before that.
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Each year, the lobbying bureau staff reviews over 20,000 reports submitted on the Elobby Assist them for timeliness and completeness.
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On average, the lobbying bureau collects between 200,250,000 in registration fees each year.
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In addition, each year, the lobbying bureau continues its efforts to uncover unreported NYC lobbying by comparing statements of registration filed with the New York State Commission on Ethics And Lobbying And Government, Cololig, with the statements of registration filed on the Elobbyist system.
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In 2022, 6777 state reports were reviewed in 2023, 9141 reports from the state were reviewed.
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Since 2013, late filers have been afforded the opportunity to apply for a waiver and to a reduction of late fines and civil penalties.
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Applications are reviewed by a committee per the standard set forth in the administrative code.
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The committee takes the following factors into account in determining whether a waiver or reduction is appropriate, including, whether and how the lobbyists or client has filed late in the past, the annual operating budget of the lobbyist or client, whether the lobbyist lobby is solely on its own behalf.
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For periodic reports, the number of lobbying matters, number of hours spent, working on those matters and the amount of compensation and expenditures that were not reported during the relevant period and the significance of the impediments the timely filing faced.
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By the lobbyists or clients.
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Pursuant to the rules, significant impediments are used in section 1 dash 12f22d of the rules are limited to the death of the principal officer or Designee or immediate family members thereof.
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The illness of the principal officer or Designee or a force majeure.
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The lobbying bureau works diligently to timely and accurately respond to all requests for filing assistance and provides written responses and advisory opinions interpreting the law.
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In 2023, we responded over 5000 requests for filing assistance and interpretations of the law.
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Each year, our annual report contains data and analytics on the type of numbers of requests received.
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The office of the city clerk is engaged in numerous outreach and training initiatives.
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Every new lobbyist is required to attend training within 15 days from its first registration.
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Every experienced lobbyist attends training every 2 years.
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Training is held via Microsoft Teams platform and is also available via prerecorded video.
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Each year, we conduct approximately 10 to 15 sessions, which are attended by 300 lobbyists on average.
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Notably, Our help desk is available via phone and email to answer basic questions or for step by step elobbyist filing assistance.
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And upon on complex inquiries.
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When it comes to lobbying in New York City, their constant pattern has been one of growth.
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Each year, as mandated by the administrative code, we publish an annual report, which contains detailed analytics, including the number and complaints received from the public, the number of random audits conducted by the city clerk and the outcomes thereof.
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Compliance programs developed and implemented for lobbyists and clients.
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The number and type of request for assistance related to the lobbying law received by the city clerk.
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The number of lobbyists in filing and statements of registration for the first time.
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The subject matter of lobbying activity most frequently reported by lobbyists the lobbyists targets most frequently reported reported by lobbyists, the lobbyists that received the highest compensation, and such other information and analysis as the city clerk deems appropriate.
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We are pleased to provide feedback with respect to the proposed law changes and answer any questions regarding the enforcement of the city's lobbying law.
0:40:53
Thank you for your time and attention.
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