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Lobbying Laws Are Lacking in Florida Independent Special Districts
Thursday, January 16th, 2014
Robert Wechsler
Update: January 22, 2014 (see below)
Yesterday, the Broward Bulldog, in Broward County, FL (home of Ft. Lauderdale), published an excellent investigative report on the lack of lobbying laws in Florida's 992 independent special districts, which together spend many billions of dollars of taxpayer money every year. These special districts do everything from water management, mosquito control, and community development to running public hospitals, ports, and airports. They include both local and regional districts. One Florida county has 83 independent special districts.
The larger districts enter into contracts and other transactions for many millions of dollars a year, and deal with lobbyists frequently. And yet the state does not require them to have lobbying laws. The state doesn't require this of any local governments, although many of them do have such laws. But these laws do not apply to independent special districts, only to dependent ones, such as community redevelopment agencies. Of the 38 independent districts with annual budgets in excess of $50 million, only 3 reported having some form of lobbyist regulation; another prohibits lobbying in its bylaws. The other 34, without lobbying regulation, have cumulative annual spending of $7.1 billion. Of the 7 districts that levy the most property taxes each year, only 1 provides for lobbying registration. It does so by voluntarily following the county's lobbying law and asking lobbyists to register there.
Of the 2 districts that handle lobbying disclosure themselves, one does not require lobbyists to file expenditure reports and disclosures are not posted online. That leaves the district that runs Orlando's airport as the only district with a real lobbying program of its own. Attorneys in the field say that no other independent special districts require lobbyists to register or disclose.
Even small districts have reason to set up a lobbying oversight program. Its cost is minimal and setting one up is easy, because one need only follow the local lobbying law and website, or those of the Orlando airport district. Registration and oversight charges can be paid out of registration fees, or the city or county can handle the registration and disclosure.
Small districts can attract the attention of lobbyists by having one or two large contracts, or by discussing plans for future expansion. For example, according to the article, the $12 million Lake Worth Drainage District has for several years been exploring the establishment of a regional water utility to address southeast Florida’s future drinking water supplies. The project may involve a $1 billion investment in infrastructure, land acquisition, etc. There's a district that should certainly have a lobbying law.
It's not that special districts don't know about lobbying. Many of them hire their own lobbyists. The problem is that few people know about the districts and what they do, not to mention their ethics programs. There is no one to hold the districts accountable.
What I found most refreshing about the article is that the support for lobbying programs from the president of the Florida Association of Special Districts, himself the executive director of a large independent special district. He said that lobbyist registration would help those who work at special districts better understand those who may approach them. “Are they trying to persuade me of a position based on their remuneration or employment? It’s a matter of understanding who you are talking to. ... It would certainly further transparency.”
One thing that is missing from the article is the fact that a lobbying law may not be the best solution to the problem. Much of the lobbying of such special districts involves contracts. Procurement-related lobbying can be prevented by strict ex parte communication provisions, which prevent anyone from talking to anyone involved in procurement. After all, this isn't really lobbying. This is an attempt to influence people outside of the writing of procurement proposals, which is what procurement decisions are supposed to be based on. Unlike with issues, procurement programs are permitted to ensure a even playing field. An ex parte communications provision is the best way to do this.
But it doesn't hurt to have a lobbying oversight program, as well. In any event, many districts deal with other areas, where ex parte communications rules may not be appropriate or sufficient. These should certainly either pass lobbying laws or sign on to a lobbying oversight program in their city or county, or in one of the programs in their region.
Florida is not an outlier. Around the country, there are many independent special districts with decent ethics program, but most lack both ethics and lobbying oversight programs, and the programs they do have lack transparency.
Update: January 22, 2014
For those who think an article can't have an effect on legislation, less than a week after the Broward Bulldog published the article discussed above, state legislators said they would introduce legislation that would require the registration of all those who lobby independent special districts in Florida (according to an article in yesterday's Bulldog). Job well done, Bulldog!
Robert Wechsler
Director of Research-Retired, City Ethics
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Yesterday, the Broward Bulldog, in Broward County, FL (home of Ft. Lauderdale), published an excellent investigative report on the lack of lobbying laws in Florida's 992 independent special districts, which together spend many billions of dollars of taxpayer money every year. These special districts do everything from water management, mosquito control, and community development to running public hospitals, ports, and airports. They include both local and regional districts. One Florida county has 83 independent special districts.
The larger districts enter into contracts and other transactions for many millions of dollars a year, and deal with lobbyists frequently. And yet the state does not require them to have lobbying laws. The state doesn't require this of any local governments, although many of them do have such laws. But these laws do not apply to independent special districts, only to dependent ones, such as community redevelopment agencies. Of the 38 independent districts with annual budgets in excess of $50 million, only 3 reported having some form of lobbyist regulation; another prohibits lobbying in its bylaws. The other 34, without lobbying regulation, have cumulative annual spending of $7.1 billion. Of the 7 districts that levy the most property taxes each year, only 1 provides for lobbying registration. It does so by voluntarily following the county's lobbying law and asking lobbyists to register there.
Of the 2 districts that handle lobbying disclosure themselves, one does not require lobbyists to file expenditure reports and disclosures are not posted online. That leaves the district that runs Orlando's airport as the only district with a real lobbying program of its own. Attorneys in the field say that no other independent special districts require lobbyists to register or disclose.
Even small districts have reason to set up a lobbying oversight program. Its cost is minimal and setting one up is easy, because one need only follow the local lobbying law and website, or those of the Orlando airport district. Registration and oversight charges can be paid out of registration fees, or the city or county can handle the registration and disclosure.
Small districts can attract the attention of lobbyists by having one or two large contracts, or by discussing plans for future expansion. For example, according to the article, the $12 million Lake Worth Drainage District has for several years been exploring the establishment of a regional water utility to address southeast Florida’s future drinking water supplies. The project may involve a $1 billion investment in infrastructure, land acquisition, etc. There's a district that should certainly have a lobbying law.
It's not that special districts don't know about lobbying. Many of them hire their own lobbyists. The problem is that few people know about the districts and what they do, not to mention their ethics programs. There is no one to hold the districts accountable.
What I found most refreshing about the article is that the support for lobbying programs from the president of the Florida Association of Special Districts, himself the executive director of a large independent special district. He said that lobbyist registration would help those who work at special districts better understand those who may approach them. “Are they trying to persuade me of a position based on their remuneration or employment? It’s a matter of understanding who you are talking to. ... It would certainly further transparency.”
One thing that is missing from the article is the fact that a lobbying law may not be the best solution to the problem. Much of the lobbying of such special districts involves contracts. Procurement-related lobbying can be prevented by strict ex parte communication provisions, which prevent anyone from talking to anyone involved in procurement. After all, this isn't really lobbying. This is an attempt to influence people outside of the writing of procurement proposals, which is what procurement decisions are supposed to be based on. Unlike with issues, procurement programs are permitted to ensure a even playing field. An ex parte communications provision is the best way to do this.
But it doesn't hurt to have a lobbying oversight program, as well. In any event, many districts deal with other areas, where ex parte communications rules may not be appropriate or sufficient. These should certainly either pass lobbying laws or sign on to a lobbying oversight program in their city or county, or in one of the programs in their region.
Florida is not an outlier. Around the country, there are many independent special districts with decent ethics program, but most lack both ethics and lobbying oversight programs, and the programs they do have lack transparency.
Update: January 22, 2014
For those who think an article can't have an effect on legislation, less than a week after the Broward Bulldog published the article discussed above, state legislators said they would introduce legislation that would require the registration of all those who lobby independent special districts in Florida (according to an article in yesterday's Bulldog). Job well done, Bulldog!
Robert Wechsler
Director of Research-Retired, City Ethics
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