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HomeMy WebLinkAbout005-SL Crane Institute Certification In Re: Crane Institute Certification, : File Docket: 11-003-L Respondent : X-ref: Order No. 005-SL : Date Decided: 6/23/11 : Date Mailed: 6/24/11 Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Donald M. McCurdy Raquel K. Bergen Nicholas A. Colafella Mark Volk This is a final adjudication of the State Ethics Commission as to the alleged delinquency and/or deficiency of registration statement(s) and/or expense report(s) required to be filed pursuant to Pennsylvania’s lobbying disclosure law, 65 Pa.C.S. § 13A01 et seq., hereinafter referred to as the “Lobbying Disclosure Law.” The Investigative Division initiated these proceedings by filing with the State Ethics Commission and serving upon Respondent a Notice of Alleged Noncompliance. A Stipulation of Findings and a Consent Agreement waiving an evidentiary hearing were subsequently submitted by the parties to the Commission for consideration. The Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement has been approved. I.ALLEGED NONCOMPLIANCE: That Crane Institute Certification, in its capacity as a principal registered with the Pennsylvania Department of State pursuant to the Pennsylvania Lobbying Disclosure Law (65 Pa.C.S. § 13A04), failed to timely file quarterly expense reports rdth pursuant to 65 Pa.C.S. § 13A05, for the third (3) and fourth (4) quarters of 2010. II.FINDINGS: 1. Respondent is Crane Institute Certification (“Respondent”) and is a registered principal as that term is defined by the Pennsylvania Lobbying Disclosure Law (“Lobbying Disclosure Law”) Act 134 of 2006, 65 Pa.C.S. § 13A01, et seq. a. Respondent originally registered as a principal with the Department of State on July 2, 2010, for the registration period 1/1/2009 to 12/31/2010. b. Respondent was assigned registration number P22914. c. In filing its principal registration statement for registration period 1/1/2009 to 12/31/2010, Respondent identified its registered mailing address and daytime telephone number as: One Carlson Pkwy Suite 230 Minneapolis, MN 55447-4538 Crane Institute Certification, 11-003-L Page 2 (770) 783-9292 d. On the Ownership Information page of the Pennsylvania Department of State lobbying website, the following name and contact information is listed for Crane Institute Certification: Debbie Dickinson One Carlson Parkway, Suite 230 Minneapolis, MN 55447 770-783-9283 ddickinson@CICert.com e. Respondent’s registration statements indicated that lobbying commenced on July 1, 2010. f. Debbie Dickinson, Executive Director, filed the principal registration statement for 1/1/2009 to 12/31/2010 on behalf of the Respondent. 1. Dickinson certified upon the principal registration statement that she is an employee of the principal, i.e., the Respondent, by way of the following statement: By printing or typing my name below, I acknowledge that I have actual knowledge of the contents of this form and that I have received, read and understand the requirements of Act 134 of 2006 relating to lobbying disclosure. I also consent to receive service of notices, other official mailings or process at the address, email or facsimile listed on this form. I affirm that the information set forth above and in all attachments is true, correct and complete to the best of my knowledge, information and belief, and that this affirmation is being made subject to 18 Pa.C.S. § 4904 (unsworn falsification to authorities). I am an Employee of the Principal: Name: Debbie L. Dickinson Title: Executive Director 2. The Lobbying Disclosure Law, specifically 65 Pa.C.S. § 13A04, states the following regarding the registration of an entity as a principal: § 13A04. Registration a. GENERAL RULE. Unless excluded under section 13A06 (relating to exemption from registration and reporting), a lobbyist, lobbying firm or a principal must register with the department within ten days of acting in any Crane Institute Certification, 11-003-L Page 3 capacity as a lobbyist, lobbying firm or principal. Registration shall be biennial and shall begin January 1, 2007. b. PRINCIPALS AND LOBBYING FIRMS. 1. A principal or lobbying firm required to register under subsection (a) shall file a single registration statement setting forth the following information with the department: i. Name. ii. Permanent address. iii. Daytime telephone number. iv. E-mail address, if available. v. Name and nature of business. vi. Name, registration number and acronym of any affiliated political action committees. vii. Name and permanent business address of each individual who will for economic consideration engage in lobbying on behalf of the principal or lobbying firm. viii. Registration number when available. **** d. AMENDMENTS.-- 1. If there is a change of information required for the registration statement under subsection (b)(1) or (2) or (c), an amended registration statement shall be filed with the department within 14 days after the change occurs. 2. When there is a change in information required for the registration statement under subsection (b)(3), an amended registration statement shall be filed with the department within 14 days of the end of the year in which the change occurs. 65 Pa.C.S. § 13A04(a), (b)(1), (d). 3. In addition to the Lobbying Disclosure Law, the duly promulgated Regulations provide further information in relation to registration periods and reporting periods: § 51.3. Registration periods and reporting periods. a. Registration under section 13A04 of the act (relating to registration) shall be biennial. The first registration period which commenced January 1, 2007, continues through December 31, 2008. Subsequent registrations shall commence on January 1 of each odd numbered year. 51 Pa. Code § 51.3(a). 4. Obermayer Rebmann Maxwell & Hippel LLP is listed as the lobbying firm for Crane Institute Certification, on the Crane Institute Certification registration form for the registration period 1/1/2009 to 12/31/2010, with an affiliated start date of 7/1/2010. Crane Institute Certification, 11-003-L Page 4 5. Obermayer Rebmann Maxwell & Hippel LLP is an entity registered with the Pennsylvania Department of State as a lobbying firm. a. Obermayer Rebmann Maxwell & Hippel LLP originally registered as a lobbying firm with the Department of State on June 13, 2007. b. Obermayer Rebmann Maxwell & Hippel LLP was assigned identification number “F04391” by the Department of State. 6. Section 13A05 of the Lobbying Disclosure Law sets forth, in part, the following requirements for the contents of quarterly reporting forms filed by principals. § 13A05. Reporting. (a) GENERAL RULE.-- A registered principal shall, under oath or affirmation, file quarterly expense reports with the department no later than 30 days after the last day of the quarter. (b) CONTENT.-- (1) Each expense report must list the names and registration numbers when available of all lobbyists by whom lobbying is conducted on behalf of the principal and the general subject matter or issue being lobbied. (2) Each expense report shall include the total costs of all lobbying for the period. The total shall include all office expenses, personnel expenses, expenditures related to gifts, hospitality, transportation and lodging to State officials or employees, and any other lobbying costs. The total amount reported under this paragraph shall be allocated in its entirety among the following categories: (i) The costs for gifts, hospitality, transportation and lodging given to or provided to State officials or employees or their imme-diate families. (ii) The costs for direct communication. (iii) The costs for indirect communication. (iv) Expenses required to be reported under this subsection shall be allocated to one of the three categories listed under this section and shall not be included in more than one category. 65 Pa.C.S. § 13A05(a), (b)(1)-(2). 7. In addition to the Lobbying Disclosure Law, the duly promulgated Regulations provide further instructions in relation to registration periods and reporting periods: § 51.3. Registration periods and reporting periods. (b) Reporting under section 13A05 of the act (relating to reporting) shall be quarterly within each calendar year: for January through March; April through June; July through September; and October through December. Crane Institute Certification, 11-003-L Page 5 Quarterly expense reports shall be filed on or before the 30th day after the quarterly reporting period ends. 51 Pa. Code § 51.3(b). 8. As a principal, Respondent is required to file, under oath or affirmation, quarterly expense reports with the Department of State no later than thirty (30) days after the last day of the quarter. 9. Section 13A05 of the Lobbying Disclosure Law additionally sets forth the threshold with regard to reporting expenditures: (d) THRESHOLDS FOR REPORTING.-- An expense report required under this section shall be filed when total expenses for lobbying exceed $2,500 for a registered principal in a reporting period. In a reporting period in which total expenses are $2,500 or less, a statement to that effect shall be filed. 65 Pa.C.S. § 13A05(d). 10. Section 13A03 of the Lobbying Disclosure Law defines the following terms: “LOBBYING.” An effort to influence legislative action or administrative action in this Commonwealth. The term includes: (1) direct or indirect communication; (2) office expenses; and (3) providing any gift, hospitality, transportation or lodging to a State official or employee for the purpose of advancing the interest of the lobbyist or principal. “LEGISLATIVE ACTION.” An action taken by a State official or employee involving the preparation, research, drafting, introduction, consideration, modification, amendment, approval, passage, enactment, tabling, postponement, defeat or rejection of: (1) legislation; (2) legislative motions; (3) a veto by the Governor; or (4) confirmation of appointments by the Governor or appointments to public boards or commissions by a member of the General Assembly. “LEGISLATION.” Bills, resolutions, amendments and nominations pending or proposed in either the Senate or the House of Representatives. The term includes any other matter which may become the subject of action by either chamber of the General Assembly. “DIRECT COMMUNICATION.” An effort, whether written, oral or by any other medium, made by a lobbyist or principal, directed to a State official or employee, the purpose or foreseeable effect of which is to influence legislative action or administrative action. The term may include personal expenses and offices expenses. 65 Pa.C.S. § 13A03. Crane Institute Certification, 11-003-L Page 6 11. As a registered principal as of July 2, 2010, Respondent was required to file rdth quarterly expense reports for the third (3) and fourth (4) quarters of 2010. rd 12. Respondent failed to file quarterly expense reports for the third (3) and fourth ** quarters of 2010 by October 30, 2010, and January 30, 2011, respectively. 13. No termination of lobbying registration is on file for Respondent. 14. The Regulations promulgated under the Lobbying Disclosure Law specifically provide the following in relation to a delinquent filing: § 51.4. Delinquency. (a) A registration statement or report required to be filed under section 13A04 or 13A05 of the act (relating to registration; and reporting) is delinquent if not received by the Department on the date due as follows: (1) Hard copy filings must be received by 5 p.m. in the office. For quarterly expense reports, from 5 p.m. until 12 a.m. midnight, a hard copy filing may be filed with the Department's designee. The filing location and the Department's designee will be on the Department's web site. (2) Electronic filings may be filed until 12 a.m. midnight. (b) A failure to timely file a registration statement, a quarterly expense report, a separate expense report, a notice of termination or an amendment to one of these filings constitutes a failure to register or report as required by the act; delinquency continues until the filing is received by the Department in proper form. 51 Pa. Code § 51.4(a)-(b). 15. [With respect] to the filing requirements of quarterly expense reports, the Regulations read, in part: § 55.1. Quarterly expense reports. (a) A quarterly expense report is required to be filed as set forth in this section when the total lobbying expenses of a registered principal, registered lobbying firm or registered lobbyist lobbying on the principal's behalf, together, exceed $2,500 in a quarterly reporting period. The threshold of $2,500 includes any economic consideration paid by a principal to a lobbying firm or lobbyist for lobbying. Individuals exempt under section 13A06 of the act (relating to exemption from registration and reporting) need not register or report. (b) For a quarterly reporting period in which the total lobbying expenses of a registered principal, registered lobbying firm or registered lobbyist lobbying on the principal's behalf, together, are $2,500 or less, a statement to that effect shall be filed with the Department by checking the appropriate block on the quarterly expense report form. Crane Institute Certification, 11-003-L Page 7 **** (d) The principal shall file a quarterly expense report or statement of failure to meet the reporting threshold on or before the 30th day after the quarterly reporting period ends. **** (g) A quarterly expense report of a principal required to be registered under the act must include at least the following information: (3) The total costs of all lobbying for the period. The total must include all office expenses, personnel expenses, expenditures related to gifts, hospitality, transportation and lodging to State officials or employees, and any other lobbying costs. (i) The total amount reported under this paragraph shall be allocated in its entirety among the following categories: (A) The costs for gifts, hospitality, transportation and lodging given to or provided to State officials or employees or their immediate families. (B) The costs for direct communication. (C) The costs for indirect communication. (ii) Registrants shall use a good faith effort to allocate expenses required to be reported under this subsection to one of the three categories listed herein. A given expense may not be included in more than one category. . . . 51 Pa. Code § 55.1(a), (b), (d), (g)(3). 16. By Warning Notice letter dated April 25, 2011, Respondent was served with Notice in accordance with Section 13A09 of the Lobbying Disclosure Law and Section 63.4(1) of the Lobbying Disclosure Regulations of the specific allegations that rdth Respondent failed to file quarterly expense reports for the third (3) and fourth (4) quarters of 2010. a. Said Warning Notice was forwarded to: Crane Institute Certification c/o Debbie L. Dickinson, Executive Director One Carlson Pkwy Suite 230 Minneapolis, MN 55447-4538 b. This is the same address as listed on Respondent’s principal registration statement. c. By submitting the principal registration statement, Respondent consented to receipt of service of notices, other official mailings or process, at the address listed on the registration statement. Crane Institute Certification, 11-003-L Page 8 17. Said Warning Notice letter set forth the nature of the alleged noncompliance and the administrative and criminal penalties for failing to register. 18. Said Warning Notice letter provided Respondent an opportunity to cure the alleged noncompliance and avoid the institution of these proceedings as to alleged noncompliance by filing quarterly expense reports for the time period covering the rdth third (3) and fourth (4) quarters of 2010 with the Department of State within thirty (30) days from the mailing date of the Warning Notice letter. 19. Even if Respondent was unfamiliar with the filing requirements of the Pennsylvania Lobbying Disclosure Law, Respondent had the assistance of its lobbying firm, Obermayer Rebmann Maxwell & Hippel LLP, which has been a registered lobbying firm in Pennsylvania for nearly four years and is presumably familiar with the Pennsylvania Lobbying Disclosure Law. 20. The Chief of the Division of Campaign Finance and Lobbying Disclosure conducted a search of the records of the Department of State, and, as of June 6, 2011, no rdth third (3) or fourth (4) quarter 2010 expense reports or notice(s) of termination were found to have been filed with the Department of State for Crane Institute Certification. 21. On June 10, 2011, the Department of State received Respondent’s outstanding principal quarterly expense reports, including reports for 2010 that were not the subject of the April 25, 2011, Warning Notice Letter or the Alleged Notice of Noncompliance, which showed that $21,000 in lobbying expenses had been rdth expended during the third (3) and fourth (4) quarters [of] 2010 when expense reports were not filed. a. The Department of State received the following quarterly expense reports, listing the following total expenditures: nd 1. Second (2) quarter 2010; $5,000 total costs for direct communication. rd 2. Third (3) quarter 2010; $15,000 total costs for direct communication. th 3. Fourth (4) quarter 2010; $6,000 total costs for direct communication. 22. Crane Institute Certification was deficient in filing its quarterly expense reports for rdth the 3 and 4 quarters of calendar year 2010 by a total of 352 days, calculated as set forth below: rd a. The delinquent period for the third (3) quarter 2010 expense report was rd calculated from the date that the third (3) quarter 2010 expense report was * delinquent (October 31, 2010) until the actual date of filing of the delinquent quarterly expense reports with the Pennsylvania Department of State (June 10, 2011), said period being two hundred and twenty-two (222) days. th b. The delinquent period for the fourth (4) quarter 2010 expense report was th calculated from the date that the fourth (4) quarter 2010 expense report * was delinquent (January 31, 2011) until the actual date of filing of the delinquent quarterly expense reports with the Pennsylvania Department of State (June 10, 2011), said period being one hundred and thirty (130) days. Crane Institute Certification, 11-003-L Page 9 23. The thirty-day deadline set forth in the said Warning Notice letter to Respondent expired May 25, 2011, prior to Respondent fully complying with the specific requirements of the Lobbying Disclosure Law. * [Because October 30, 2010, was a Saturday, and January 30, 2011, was a Sunday, each of the filing deadlines for the third and fourth quarters of 2010 would have been extended to the following Commonwealth business day (51 Pa. Code § 51.2); however, the parties are using the indicated dates in the negotiated settlement of this matter.] Crane Institute Certification, 11-003-L Page 10 III. DISCUSSION: In the instant matter, the alleged noncompliance is that Crane Institute Certification (“Respondent”), as a principal registered with the Pennsylvania Department of State (“Department of State”) pursuant to the Lobbying Disclosure Law, failed to timely file quarterly expense reports pursuant to 65 Pa.C.S. § 13A05 for the third and fourth quarters of 2010. The relevant provisions of the Lobbying Disclosure Law are set forth in the Fact Findings above. Certain relevant provisions of the Lobbying Disclosure Regulations, 51 Pa. Code § 51.1 et seq., are also set forth in the Fact Findings. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are set forth above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Respondent originally registered as a principal with the Department of State on July 2, 2010, for the registration period January 1, 2009, to December 31, 2010. Respondent was assigned registration number “P22914.” Pursuant to Section 13A05 of the Lobbying Disclosure Law, 65 Pa.C.S. § 13A05, and Section 51.3 of the Lobbying Disclosure Regulations, 51 Pa. Code § 51.3, expense reports are filed on a quarterly basis. When a registered principal’s total expenses for lobbying exceed $2,500 for a reporting period/quarter, the principal is required to file a quarterly expense report with the Department of State by no later than 30 days after the last day of such quarter. For a reporting period in which total expenses are $2,500 or less, a statement to that effect must be filed by the principal. Thus, a registered principal must file either a quarterly expense report or a statement of failure to meet the reporting threshold by no later than the 30th day after each quarterly reporting period ends. 51 Pa. Code § 55.1. As a registered principal as of July 2, 2010, Respondent was required to file quarterly expense reports for the third and fourth quarters of 2010. Respondent failed to file quarterly expense reports for the third and fourth quarters of 2010 by the respective filing deadlines. No termination of lobbying registration is on file for Respondent. Failure to timely file a quarterly expense report constitutes a failure to report as required by the Lobbying Disclosure Law, and the delinquency continues until the filing is received by the Department of State in proper form. 51 Pa. Code § 51.4. By Warning Notice letter dated April 25, 2011, Respondent was served with notice of the alleged noncompliance in accordance with Section 63.4(1) of the Lobbying Disclosure Regulations, 51 Pa. Code § 63.4(1). The Warning Notice letter provided Respondent an opportunity to cure the alleged noncompliance and avoid the institution of these proceedings by filing quarterly expense reports for the third and fourth quarters of 2010 with the Department of State within thirty (30) days from the mailing date of the Warning Notice letter. As of June 6, 2011, no third or fourth quarter 2010 expense reports or notice(s) of termination were found to have been filed with the Department of State for Crane Institute Certification. On June 10, 2011, Respondent filed quarterly expense reports for the third and fourth quarters of 2010, which reported $21,000 in lobbying expenses for those quarters. Crane Institute Certification, 11-003-L Page 11 Respondent also filed a quarterly expense report for the second quarter of 2010. (Fact Findings 21-21a). Negligent failure to register or report as required by the Lobbying Disclosure Law is punishable by an administrative penalty of up to $50.00 for each late day. 65 Pa.C.S. § 13A09(c)(1). Per the Consent Agreement, the parties are in agreement that Respondent’s expense report for the third quarter of 2010 was 222 days delinquent, and Respondent’s expense report for the fourth quarter of 2010 was 130 days delinquent. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Lobbying Disclosure Law to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: 3. The Investigative Division will recommend the following conclusions in relation to the above deficiencies: a. That Crane Institute Certification, in its capacity as a Principal registered with the Pennsylvania Department of State pursuant to the Pennsylvania Lobbying Disclosure Law (65 Pa.C.S. §13A04), failed to timely file Quarterly Expense Reports pursuant [to] 65 Pa.C.S. rdth § 13A05, for the Third (3) and Fourth (4) Quarters of 2010. b. That the transgressions of the Lobbying Disclosure Law outlined in paragraph (a) above are deemed to be negligent in nature. c. Crane Institute Certification was deficient in filing its Quarterly Expense Reports for calendar year 2010 by a total of 352 days, calculated as set forth below: i. Respondent received official Notice of the delinquent quarterly expense reports by way of Warning Notice dated April 25, 2011; ii. Respondent did not file the outstanding Quarterly expense reports for calendar year 2010 within the stated cure period; iii. Respondent filed all delinquent Quarterly expense reports with the Pennsylvania Department of State for calendar year 2010 on June 10, 2011; rd iv. The delinquent period for the Third (3) Quarter 2010 expense report was calculated from the rd date that the third (3) quarter 2010 expense report was delinquent (October 31, 2010) until the actual date of filing of the delinquent Quarterly Expense Reports with the Pennsylvania Department of State (June 10, Crane Institute Certification, 11-003-L Page 12 2011), said period being two hundred and twenty-two (222) days. th v. The delinquent period for the Fourth (4) Quarter 2010 expense report was calculated th from the date that the fourth (4) quarter 2010 expense report was delinquent (January 31, 2011) until the actual date of filing of the delinquent Quarterly Expense Reports with the Pennsylvania Department of State (June 10, 2011), said period being one hundred and thirty (130) days. 4. Crane Institute Certification agrees to pay an administrative penalty, by way of certified check or money order, in the amount of $8,800.00 (352 days x $25 per diem) in settlement of this matter, payable to the Commonwealth of Pennsylvania, and forwarded to the Pennsylvania State Ethics Commission upon execution of this agreement. a. Said settlement payment (certified check or money order) is to be held by the Investigative Division until such time as the Commission accepts this Consent Agreement and issues a Final Order. Upon issuance of the Final Order of this matter by the Commission, the Investigative Division will submit said settlement payment for deposit into the Treasury of the Commonwealth. 5. To the extent it has not already done so, Crane Institute Certification agrees to file all outstanding Quarterly Expense Reports for the Quarter(s) that said entity was/is Registered as a Principal with the Pennsylvania Department of State, within fifteen (15) days of the execution of this agreement. a. Crane Institute Certification agrees to timely file all future Quarterly Expense Reports for the Quarter(s) that said entity is/remains a Registered Principal with the Pennsylvania Department of State, in accord with the Pennsylvania Lobbying Disclosure Law (65 Pa.C.S. §13A01 et seq.) and the Regulations of the Lobbying Disclosure Law (51 Pa. Code. §51.1 et seq.) 6. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter; impose no further sanctions and make no specific recommendations to any law enforcement or other authority to take action in this matter as to either Crane Institute Certification, or any individual or representative of Crane Institute Certification. Such, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Respondent’s failure to comply with this agreement or the Commission’s Order or cooperating with any other authority who may so choose to review this matter further. Crane Institute Certification, 11-003-L Page 13 Consent Agreement, at 1-3. In considering the Consent Agreement and Stipulation of Findings, we agree with the parties that Respondent as a registered principal failed to timely file quarterly expense reports with the Department of State for the third and fourth quarters of 2010 as required by Section 13A05 of the Lobbying Disclosure Law. Accordingly, we hold that that Respondent as a registered principal failed to timely file quarterly expense reports with the Department of State for the third and fourth quarters of 2010 as required by Section 13A05 of the Lobbying Disclosure Law. We shall accept the recommendation of the parties for a determination that the transgressions of the Lobbying Disclosure Law outlined immediately above are deemed to be negligent in nature. The parties have agreed that Respondent was 222 days delinquent in filing its quarterly expense report for the third quarter of 2010 and 130 days delinquent in filing its quarterly expense report for the fourth quarter of 2010, for a total of 352 days. As part of the Consent Agreement, Respondent agreed to pay an administrative penalty in the total amount of $8,800.00 (352 days x $25.00 per day) in settlement of this matter, payable to the Commonwealth of Pennsylvania and forwarded to this Commission upon execution of the Consent Agreement. The Consent Agreement provided that said settlement payment would be held by the Investigative Division until this Commission would accept the Consent Agreement and issue a final Order, whereupon the Investigative Division would submit said settlement payment for deposit into the Treasury of the Commonwealth. To the extent it had not already done so, Respondent further agreed to file all outstanding quarterly expense reports for the quarter(s) that Respondent had been registered as a principal with the Department of State, within fifteen (15) days of the execution of the Consent Agreement. The Consent Agreement was fully executed as of June 15, 2011. Respondent also agreed to timely file all future quarterly expense reports for the quarter(s) that it is/remains a registered principal with the Department of State, in accordance with the Lobbying Disclosure Law and the Lobbying Disclosure Regulations. We determine that the Consent Agreement submitted by the parties sets forth a proper disposition for this case, based upon our review as reflected in the above analysis and the totality of the facts and circumstances. Accordingly, we approve the Consent Agreement that has been submitted by the parties. This Commission hereby levies one administrative penalty against Respondent Crane Institute Certification in the total amount of $8,800.00 for its delinquent quarterly expense reports for the third and fourth quarters of 2010. We take administrative notice that Respondent has already made payment of the aforesaid administrative penalty in the total amount of $ 8,800.00 through this Commission to the Commonwealth of Pennsylvania, as per the Consent Agreement of the parties. Per Fact Findings 21-21a, Respondent has filed quarterly expense reports for the third and fourth quarters of 2010 as well as the second quarter of 2010. We further take Crane Institute Certification, 11-003-L Page 14 administrative notice that per the Department of State’s web site, Respondent’s principal registration expired as of December 31, 2010. As for Respondent’s agreement to file all future quarterly expense reports in accordance with the Lobbying Disclosure Law and the Lobbying Disclosure Regulations, we note that failure to do so may result in further proceedings before this Commission. In that Respondent has already made payment of the aforesaid administrative penalty in the total amount of $ 8,800.00 in accordance with the Consent Agreement of the parties, and has now filed quarterly expense reports for the third and fourth quarters of 2010 as well as the second quarter of 2010, this case is closed. IV.CONCLUSIONS OF LAW: 1. As a principal registered with the Pennsylvania Department of State (“Department of State”) under principal registration number “P22914,” Crane Institute Certification was subject to the reporting requirements of Section 13A05 of Pennsylvania’s lobbying disclosure law (“Lobbying Disclosure Law”), 65 Pa.C.S. § 13A05. 2. Crane Institute Certification in its capacity as a registered principal, failed to timely file quarterly expense reports with the Department of State for the third and fourth quarters of 2010 as required by Section 13A05 of the Lobbying Disclosure Law, 65 Pa.C.S. § 13A05. 3. The transgressions of the Lobbying Disclosure Law outlined in paragraph 2 immediately above are deemed to be negligent in nature. 4. The prerequisite service of a warning notice in accordance with Section 63.4(1) of the Lobbying Disclosure Regulations, 51 Pa. Code § 63.4(1), was satisfied. 5. Based upon the totality of the circumstances in this case, the imposition of an administrative penalty in the total amount of $8,800.00 (352 days x $25.00 per day) is warranted. In Re: Crane Institute Certification, : File Docket: 11-003-L Respondent : Date Decided: 6/23/11 : Date Mailed: 6/24/11 ORDER NO. 005-SL 1. Crane Institute Certification, in its capacity as a principal registered with the Pennsylvania Department of State (“Department of State”) under principal registration number “P22914,” failed to timely file quarterly expense reports with the Department of State for the third and fourth quarters of 2010 as required by Section 13A05 of Pennsylvania’s lobbying disclosure law (“Lobbying Disclosure Law”), 65 Pa.C.S. § 13A05. 2. The transgressions of the Lobbying Disclosure Law outlined in paragraph 1 immediately above are deemed to be negligent in nature. 3. This Commission hereby levies one administrative penalty against Crane Institute Certification in the total amount of $8,800.00 for its delinquent quarterly expense reports for the third and fourth quarters of 2010. 4. In that Crane Institute Certification has already made payment of the aforesaid administrative penalty in the total amount of $8,800.00 in accordance with the Consent Agreement of the parties, and has now filed quarterly expense reports for the third and fourth quarters of 2010 as well as the second quarter of 2010, no further action is required in this case and this case is closed. BY THE COMMISSION, ___________________________ Louis W. Fryman, Chair