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Date: |
October 27, 2026 |
24 |
Title
Policy Options for Post-Employment Lobbying Restrictions and Conflicts for County Employees (Districts: All)
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Overview
On August 18, 2026 (30), the San Diego County Board of Supervisors (Board) directed the Chief Administrative Officer (CAO) to develop options for an ordinance imposing a ban on post-employment lobbying and amendments to address prediction market contract trading by County officials and employees, including a prohibition on trading tied to County of San Diego (County) duties or nonpublic information, disclosure of such holdings, and an extension of the post-employment lobbying restriction to related trading activity.
This letter returns to the Board a set of options for each topic for the Board’s consideration and direction. Attachment A presents policy options to implement a post-employment restriction on lobbying the County by a defined group of former County elected and appointed officers, including options addressing indirect lobbying, a permanent restriction on particular matters an individual personally worked on while employed by the County, and a parallel option to extend that permanent restriction to post-employment trading in prediction market contracts.
Attachment B presents policy options to prohibit current County officials and employees from trading prediction market contracts, such as those offered on platforms like Kalshi and Polymarket, tied to their County duties or to nonpublic information, and to require disclosure of such holdings.
Body
Recommendation by Chief Administrative Officer:
1) Provide direction on the policy options presented in Attachment A, Policy Options for Post-Employment Lobbying Restrictions.
2) Provide direction on the policy options presented in Attachment B, Policy Options for Incompatible Activities - Prediction Market Contract Trading by County Employees.
3) Direct the Chief Administrative Officer and County Counsel to return to the Board with a draft ordinance or ordinances reflecting the Board’s direction on Recommendations 1 and 2, for introduction at the December 8, 2026, Board of Supervisors meeting.
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Equity Impact Statement
Equity depends on residents being able to trust that County decisions are made in the public interest. Today’s action advances that trust by beginning the process of preventing former County elected and appointed officers from converting relationships and knowledge gained in public service into paid lobbying, and it prevents current and former officers from using their duties or nonpublic information to profit through prediction market trading. Communities that already face barriers to being heard by government are most harmed when access and information are unevenly distributed, and most helped when the rules ensure everyone is heard on the same terms.
Sustainability Impact Statement
The recommendations before the Board align with County of San Diego Sustainability Goal #2, provide just and equitable access to County services, policy decision-making, and resource allocation in support of sustainable communities. The addition of a two-year post-employment lobbying restriction and adoption of specific incompatible activities for County officers strives to ensure County programs, operations, and contracts reflect the County’s values and priorities, including equity and sustainability.
Fiscal Impact
Funds for this request are included in the Fiscal Year 2026-27 Operational Plan based on existing staff time in the Auditor & Controller, Office of County Counsel, Chief Administrative Office, and Department of Human Resources funded by General Purpose Revenue. There will be no change in net General Fund cost and no additional staff years associated with this action.
Business Impact Statement
N/A
Advisory Board Statement
N/A
Background
On August 18, 2026 (30), the San Diego County Board of Supervisors (Board) directed the Chief Administrative Officer (CAO) to develop options for a post-employment lobbying restriction and for amendments addressing prediction market trading by County officials and employees.
State law currently restricts certain former public officials from lobbying their former agency for one year after leaving office. This restriction applies to the members of the Legislature, elected State officers, members of State boards or commissions with decision-making authority, State employees designated in their department’s conflict-of-interest code, and any other State official or employee listed in Government Code Section 87200. State law separately imposes a permanent restriction on former State administrative officials being paid to work on a matter they personally handled in government service; that permanent restriction does not currently extend to local officials.
A similar one-year lobbying restriction applies to a very small group of local officials and employees. Government Code Section 87406.3 prohibits any of the County’s local elected officials and Chief Administrative Officer from being paid to communicate with the County for a one-year period. State law also expressly authorizes local agencies to adopt more restrictive rules. There is no comparable restriction on local employees as the one for State employees.
The County has one related but narrower restriction on former employees. The San Diego County Code of Administrative Ordinances Section 67 (Prohibited Contracts) prohibits the County from contracting with a former County employee, or a firm in which that person serves as an officer or major shareholder, for twelve months following separation if the person held substantial responsibility over, or participated in developing, the contract or service area at issue. Section 67 does not restrict former officers or employees from lobbying the County.
In developing options to expand the County’s lobbying restrictions for former County officers, staff reviewed post-employment lobbying restrictions adopted by other California and out-of-state jurisdictions. Los Angeles County imposes a two-year restriction on lobbying by former elected officials and its Chief Executive Officer, a two-year restriction on former non-elected officials lobbying their own former agency, and a permanent restriction on lobbying any matter an official personally worked on while in office. The City of Los Angeles and the City and County of San Francisco apply comparable restrictions of one to two years depending on the former official's position. The City of New York’s post-employment restriction is for two years across all agencies and addresses circumstances in which a former official directs or advises a lobbying effort without personally contacting government officials.
Attachment A presents policy options to implement the Board’s direction to establish a post-employment restriction on lobbying the County by a defined group of former County elected and appointed officers. Options not only include expanding the existing one-year restriction to two-years, but also whether the restriction should extend to indirect lobbying activity and how broadly the list of covered former County officials should reach. Attachment A also presents options for a permanent restriction on lobbying concerning a particular matter in which a former official personally participated while employed by the County. Options before the Board also include various exemption options, including exempting individuals from appearing before the Board on a matter of general public interest when acting as an individual and when acting on behalf of another public agency. If the Board selects an option that would expand coverage to classified employees, staff recommends the Board direct the CAO to meet and confer with labor organizations before that expanded coverage is brought to the Board for adoption.
Attachment B presents policy options to address the use of County duties or nonpublic information by a defined group of current County officers and employees to trade contracts on prediction market platforms such as Kalshi and Polymarket, and to require disclosure of such holdings. The Board has the option to select which current officials and employees these restrictions should cover, and if there should be a permanent restriction on post-employment trading tied to matters which a former official or employee personally participated in while employed by the County. If the Board selects an option that would expand coverage to classified employees, staff recommends the Board direct the CAO to meet and confer with labor organizations before that expanded coverage is brought to the Board for adoption.
For each numbered item presented in Attachment A and B, the Board may select a listed option or provide alternative or hybrid direction. Staff will incorporate the direction that is received through this item into an ordinance that will be presented for its first reading at the December 8, 2026, Board of Supervisors meeting.
Linkage To The County Of San Diego Strategic Plan
Today’s proposed action to implement post-employment lobbying restrictions and adopt specific incompatible activities for County officials supports the Empower (Transparency and Accountability) Strategic Initiative in the County of San Diego’s 2026-2031 Strategic Plan.
Respectfully submitted,
Ebony N. Shelton
Chief Administrative Officer
Attachment(s)
Attachment A - Policy Options for Post-Employment Lobbying Restrictions
Attachment B - Policy Options for Incompatible Activities - Prediction Market Contract Trading