A City Council vote on an ethics reform measure backed by Mayor Rahm Emanuel was postponed after some neighborhood chambers of commerce expressed concerns the ordinance would force them to register as lobbyists and cost their cash-strapped organizations large sums of money in fees.
The council’s Rules and Ethics Committee on Wednesday delayed a vote after aldermen pressed administration officials on how the ordinance would affect local chambers, what would constitute an act of lobbying and the fees that would be imposed on chambers.
Steven Berlin, the executive director of the city’s Board of Ethics, tried to address concerns from aldermen through hypothetical situations, but that appeared to confuse members of the council, prompting more questions. The committee is expected to reconvene on Thursday.
Earlier this week, the Chicagoland Chamber of Commerce notified local chambers about the new lobbyists rules. In an email sent to chamber executives this week, Christopher Johnson, the government relations manager for the chamber, said the new lobbyist rules will force local chambers to register as lobbyists if they seek to “influence legislation or administrative action” on behalf of their members, such as helping businesses acquire permits and licenses.
Johnson also said the Chicagoland Chamber of Commerce’s analysis of the ordinance found no exemptions for local chambers.
“We are seeking further clarification on the intent of the ordinance, but there is little in the way that it is currently written to indicate an exemption for Chambers,” Johnson wrote.
Under the ordinance, lobbyists would continue paying a $350 registration fee and $75 for each additional client.
Paul Levin, executive director of the Logan Square Chamber of Commerce, said he hopes aldermen will consider a fee exemption for local chambers. He said his chamber has 150 members, which could cost him $11,175 in fees.
“That would be a bite,” Levin said. “We’re talking about what would be for many organizations a fairly significant amount of money, even though it sounds inconsequential.”
Levin said he has no problem with local chambers being classified as lobbyists because he has lobbied aldermen and various government agencies on behalf of neighborhood businesses.
But Bill Morton, the president of the Rogers Park Chamber of Commerce, said he is worried the distinction could stigmatize local chambers as political insiders. He said his group functions more as an information source than a political operator, helping small businesses with paperwork for permits and licenses.
Morton said the ordinance would also create “unneeded regulation” of local chambers. “That doesn’t sound good at all,” he said.
Garret FitzGerald, who heads the Northcenter Chamber of Commerce, said he does not mind registering as a lobbyist. But FitzGerald, who served as a policy analyst under former Ald. Eugene Schulter (47th Ward), said some local chambers might find the registration process “daunting.”
“I would be very concerned that this would limit chambers from advocating on behalf of small businesses,” he said.
In a statement after Wednesday’s delay, an Emanuel spokeswoman said “the Mayor is committed to changing the way we do business in City Hall by increasing transparency and accountability across City government to ensure everyone in City government is working for Chicago’s taxpayers.”
Emanuel introduced the ordinance earlier this month as part of his campaign to promote transparency at City Hall. The measure would require lobbyists to disclose political contributions and file monthly — as opposed to biannual — activity reports. The ordinance also calls for a searchable online database of lobbyists showing whom they lobby and for what cause. The city currently maintains a database of registered lobbyists.
Michael Mini, the government relations director for the Chicagoland Chamber of Commerce, said the chamber does not have a position on Emanuel’s ordinance. He said the chamber notified local chambers simply to keep them abreast of the potential changes that could affect them.
But Mini added that the new rules could be “challenging” for some local chambers because what was once a routine act of helping a neighborhood business receive a permit or license could be interpreted as an act of lobbying.
The Chicagoland Chamber of Commerce has long lobbied City Hall on behalf of its members, which include Horseshoe Casino, Aon, Boeing, Exelon and Wal-Mart. The chamber also contributed more than $140,000 to aldermanic candidates in this year’s municipal election.