Council poised to extend lobbyist requirements to nonprofits

Chicago is finally getting around to broadening the definition of registered lobbyists to include nonprofits, but only after softening the blow to avoid tying their hands with costly red tape.

Four years ago, then-Mayor Lori Lightfoot convinced the City Council to approve the latest in a seemingly endless string of ethics reforms in response to the corruption scandal at the center of the ongoing trial of former Ald. Edward M. Burke (14th).

In addition to forcing Burke to sever his ties to his law firm specializing in property tax appeals, the ordinance broadened the definition of lobbyists to include nonprofits.

Although Lightfoot agreed to delay the effective date and waive nonprofit registration fees, that portion of the ordinance never took effect.

Nonprofit organizations that do important social service work complained they could not afford to jump through regulatory hoops. On Monday, the Committee on Ethics and Government Oversight passed a revised ordinance aimed at easing those concerns.

It calls for Chicago to require nonprofit lobbyists to register and file regular reports with the Chicago Board of Ethics.

To minimize the burden, the new requirements would:

⬩ Postpone the effective date until July 1, 2024, to give the Board of Ethics time to conduct a “robust public education campaign.”

⬩ Exempt nonprofits with an operating budget, net assets or fund balance below $5 million.

⬩ Cap all lobbying fines at $20,000 per violation.

⬩ Establish a monetary and hourly threshold for requiring lobbyists to register.

⬩ Clarify “which actions constitute administrative action or legislative action” to make it easier for both for-profit and nonprofit organizations to “understand when their conversations with city officials” constitute lobbying.

Ethics Committee Chair Matt Martin (47th) said the substitute ordinance approved Monday is the product of “years of work.”

“It clarifies the definition of lobbying to make it easier for both for-profit and nonprofit organizations alike to understand when their conversations with city officials are lobbying,” Martin told his colleagues.

Martin said he’s grateful to the “dozens of nonprofits” across the city that “gave their time to provide thoughtful feedback.”