HomeMy WebLinkAbout007-SL Mid Atlantic Pub. Ins. Adjusters
In Re: Mid Atlantic Public Insurance Adjusters, : File Docket: 11-004-L
Respondent : X-ref: Order No. 007-SL
: Date Decided: 9/27/11
: Date Mailed: 9/28/11
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 Mid Atlantic Public Insurance Adjusters, 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
ndrdth
pursuant to 65 Pa.C.S. § 13A05, for the second (2), third (3), and fourth (4)
quarters of 2010.
II.FINDINGS:
1. Respondent is Mid Atlantic Public Insurance Adjusters (“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 June 22, 2010, for the registration period 1/1/2009 to 12/31/2010.
b. Respondent was assigned registration number P22681.
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:
P.O. Box 1
Mid Atlantic Public Insurance Adjusters, 11-004-L
Page 2
Feasterville, PA 19053
(215) 752-0240
d. On the Ownership Information page of the Pennsylvania Department of State
lobbying website, the following name and contact information is listed for Mid
Atlantic Public Insurance Adjusters:
John Masucci
P.O. Box 1
Feasterville, PA 19053
215-752-0240
jamasucci@hotmail.com
e. Respondent’s registration statements indicated that lobbying commenced on
June 15, 2010.
f. John A. Masucci, General Manager of Citizens Public Adjusters, Inc., filed
the principal registration statement for 1/1/2009 to 12/31/2010 on behalf of
the Respondent.
1. Masucci certified that he represents a third-party preparing the form
for the Principal and acknowledged the following:
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).
2. Although Masucci is listed as representing a third-party preparing the
form, he is listed on the ownership information page for Registration
P22681 – Mid Atlantic Public Insurance Adjusters.
g. Respondent has not renewed its lobbying registration for the registration
period 1/1/2011 to 12/31/2012, and its registration is now expired.
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
Mid Atlantic Public Insurance Adjusters, 11-004-L
Page 3
principal must register with the department within ten days of acting in any
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. Charlie Gerow is listed as the lobbyist for Mid Atlantic Public Insurance Adjusters on
the Mid Atlantic Public Insurance Adjusters’ registration form for the registration
period 1/1/2009 to 12/31/2010, with an affiliated start date of 6/15/2010.
Mid Atlantic Public Insurance Adjusters, 11-004-L
Page 4
5. Charles Gerow is registered with the Pennsylvania Department of State as a
lobbyist.
a. Charles Gerow originally registered as a lobbyist with the Department of
State on July 21, 2008.
b. Charles Gerow was assigned identification number “L10743” by the
Department of State.
6. Quantum Communications is listed as the lobbying firm for Mid Atlantic Public
Insurance Adjusters on the Mid Atlantic Public Insurance Adjusters’ registration form
for the registration period 1/1/2009 to 12/31/2010, with an affiliated start date of
6/15/2010.
7. Quantum Communications is registered with the Pennsylvania Department of State
as a lobbying firm.
a. Quantum Communications originally registered as a lobbying firm with the
Department of State on November 13, 2008.
b. Quantum Communications was assigned identification number “F12461” by
the Department of State.
c. Charles Gerow is an individual lobbying on behalf of Quantum
Communications.
8. 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.
Mid Atlantic Public Insurance Adjusters, 11-004-L
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(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).
9. 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.
Quarterly expense reports shall be filed on or before the 30th day after the
quarterly reporting period ends.
51 Pa. Code § 51.3(b).
10. 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.
11. 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).
12. 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;
Mid Atlantic Public Insurance Adjusters, 11-004-L
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(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.
13. As a registered principal as of June 22, 2010, Respondent was required to file
ndrdth
quarterly expense reports for the second (2), third (3), and fourth (4) quarters of
2010.
ndrd
14. Respondent failed to file quarterly expense reports for the second (2), third (3),
*
and fourth quarters of 2010 by July 30, 2010, October 30, 2010, and January 30,
*
2011, respectively.
15. No termination of lobbying registration is on file for Respondent.
16. 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).
Mid Atlantic Public Insurance Adjusters, 11-004-L
Page 7
17. [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.
****
(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).
Mid Atlantic Public Insurance Adjusters, 11-004-L
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18. 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
ndrd
Respondent failed to file quarterly expense reports for the second (2), third (3),
th
and fourth (4) quarters of 2010.
a. Said Warning Notice was forwarded to:
Mid Atlantic Public Insurance Adjusters
P.O. Box 1
Feasterville, PA 19053
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.
19. Said Warning Notice letter set forth the nature of the alleged noncompliance and
the administrative and criminal penalties for failing to register.
20. Said Warning Notice letter provided Respondent an opportunity to cure the alleged
noncompliance and avoid the institution of these proceedings as to alleged
ndrd
noncompliance by filing quarterly expense reports for the second (2), third (3),
th
and fourth (4) quarters of 2010 with the Department of State within thirty (30) days
from the mailing date of the Warning Notice letter.
21. Respondent had the assistance of its lobbyist, Charles Gerow, and its lobbying firm,
Quantum Communications, which have both been conducting lobbying activities in
Pennsylvania since 2008 and are presumably familiar with the Pennsylvania
Lobbying Disclosure Law.
22. 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
ndrdth
second (2), third (3), or fourth (4) quarter 2010 expense reports or notice of
termination were found to have been filed with the Department of State for Mid
Atlantic Public Insurance Adjusters.
23. On June 14, 2011, the Department of State received Respondent’s outstanding
nd
second (2) quarter 2010 principal quarterly expense report; on June 16, 2011, the
rd
Department of State received Respondent’s outstanding third (3) quarter 2010
principal quarterly expense report; and on June 21, 2011, the Department of State
th
received Respondent’s outstanding fourth (4) quarter 2010 principal quarterly
expense report.
a. The Department of State received the following quarterly expense reports,
listing the following total expenditures:
nd
1. Second (2) quarter 2010; $4,500 total costs for direct
communication.
rd
2. Third (3) quarter 2010; $4,000 total costs for direct communication,
and $1,500 total costs for indirect communication.
Mid Atlantic Public Insurance Adjusters, 11-004-L
Page 9
th
3. Fourth (4) quarter 2010; $0 total costs for all lobbying.
24. Mid Atlantic Public Insurance Adjusters was deficient in filing its quarterly expense
ndrdth
reports for the 2, 3 and 4 quarters of calendar year 2010 by a total of 159 days,
calculated as set forth below:
nd
a. The delinquent period for the second (2) quarter 2010 expense report was
calculated from the date of the Warning Notice letter (April 25, 2011) until
the actual date of filing of the delinquent quarterly expense report with the
Pennsylvania Department of State (June 14, 2011), said period being fifty
(50) days.
rd
b. The delinquent period for the third (3) quarter 2010 expense report was
calculated from the date of the Warning Notice letter (April 25, 2011) until
the actual date of filing of the delinquent quarterly expense report with the
Pennsylvania Department of State (June 16, 2011), said period being fifty-
two (52) days.
th
c. The delinquent period for the fourth (4) quarter 2010 expense report was
calculated from the date of the Warning Notice letter (April 25, 2011) until
the actual date of filing of the delinquent quarterly expense report with the
Pennsylvania Department of State (June 21, 2011), said period being fifty-
seven (57) days.
25. 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.
26. Representatives of Mid Atlantic Public Insurance Adjusters assert that Mid Atlantic
Public Insurance Adjusters’ noncompliance set forth in the Stipulation of Findings
was the result of Mid Atlantic Public Insurance Adjusters’ then lack of familiarity with
the compliance requirements. Representatives of Mid Atlantic Public Insurance
Adjusters further assert that they relied on their lobbyist’s, Quantum
Communications’, expertise with regard to their obligations under Pennsylvania’s
Lobbying Disclosure Law, and that Quantum Communications did not advise Mid
Atlantic Public Insurance Adjusters of its obligation to file quarterly expense reports.
*
[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.]
III. DISCUSSION:
In the instant matter, the alleged noncompliance is that Mid Atlantic Public
Insurance Adjusters (“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
second, 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.
Mid Atlantic Public Insurance Adjusters, 11-004-L
Page 10
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
June 22, 2010, for the registration period January 1, 2009, to December 31, 2010.
Respondent was assigned registration number “P22681.”
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(d).
As a registered principal as of June 22, 2010, Respondent was required to file
quarterly expense reports for the second, third, and fourth quarters of 2010. Respondent
failed to file quarterly expense reports for the second, 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(b).
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 second, 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 second, third, or fourth quarter 2010 expense reports or
notice of termination were found to have been filed with the Department of State for Mid
Atlantic Public Insurance Adjusters .
Respondent filed quarterly expense reports for the second, third, and fourth
quarters of 2010 on June 14, 2011, June 16, 2011, and June 21, 2011, respectively.
Respondent’s aforesaid quarterly expense reports reported $4,500 total costs for direct
communication in the second quarter of 2010, $4,000 total costs for direct communication
and $1,500 total costs for indirect communication in the third quarter of 2010, and $0 total
costs for all lobbying in the fourth quarter of 2010.
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 second quarter of 2010 was 50 days delinquent, Respondent’s
Mid Atlantic Public Insurance Adjusters, 11-004-L
Page 11
expense report for the third quarter of 2010 was 52 days delinquent, and Respondent’s
expense report for the fourth quarter of 2010 was 57 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 Mid Atlantic Public Insurance Adjusters , 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
ndrd
Pa.C.S. § 13A05, for the Second (2), Third (3), and
th
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. Mid Atlantic Public Insurance Adjusters was deficient in
filing its Quarterly Expense Reports for calendar year
2010 by a total of 159 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 its delinquent Quarterly
expense reports with the Pennsylvania
Department of State as follows: Second Quarter
2010 filed June 14, 2011; Third Quarter 2010
filed June 16, 2011; and Fourth Quarter 2010
filed June 21, 2011.
iv. For purposes of this Consent Agreement only,
nd
the delinquent period for the Second (2)
Quarter 2010 expense report was calculated
from the date of the Warning Notice letter (April
25, 2011) until the actual date of filing of the
delinquent Quarterly Expense Report with the
Pennsylvania Department of State (June 14,
2011), said period being fifty (50) days.
v. For purposes of this Consent Agreement only,
Mid Atlantic Public Insurance Adjusters, 11-004-L
Page 12
rd
the delinquent period for the Third (3) Quarter
2010 expense report was calculated from the
date of the Warning Notice letter (April 25, 2011)
until the actual date of filing of the delinquent
Quarterly Expense Report with the Pennsylvania
Department of State (June 16, 2011), said period
being fifty-two (52) days.
vi. For purposes of this Consent Agreement only,
th
the delinquent period for the Fourth (4) Quarter
2010 expense report was calculated from the
date of the Warning Notice letter (April 25, 2011)
until the actual date of filing of the delinquent
Quarterly Expense Report with the Pennsylvania
Department of State (June 21, 2011), said period
being fifty-seven (57) days.
4. Mid Atlantic Public Insurance Adjusters agrees to pay an
administrative penalty in the amount of $4,770.00 (159 days x
$30 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 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, Mid Atlantic Public
Insurance Adjusters 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. Mid Atlantic Public Insurance Adjusters 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 Mid Atlantic Public Insurance Adjusters, or
any individual or representative of Mid Atlantic Public
Insurance Adjusters. Such, however, does not prohibit the
Mid Atlantic Public Insurance Adjusters, 11-004-L
Page 13
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.
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 second, 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 second, 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 50 days delinquent in filing its
quarterly expense report for the second quarter of 2010, 52 days delinquent in filing its
quarterly expense report for the third quarter of 2010, and 57 days delinquent in filing its
quarterly expense report for the fourth quarter of 2010, for a total of 159 days.
As part of the Consent Agreement, Respondent agreed to pay an administrative
penalty in the total amount of $4,770.00 (159 days x $30.00 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 July 22, 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 Mid
Atlantic Public Insurance Adjusters in the total amount of $4,770.00 for its delinquent
quarterly expense reports for the second, third, and fourth quarters of 2010.
Mid Atlantic Public Insurance Adjusters, 11-004-L
Page 14
We take administrative notice that Respondent has already made payment of the
aforesaid administrative penalty in the total amount of $ 4,770.00 through this Commission
to the Commonwealth of Pennsylvania, as per the Consent Agreement of the parties. Per
Fact Findings 23-23a, Respondent has filed quarterly expense reports for the second,
third, and fourth quarters of 2010.
As for Respondent’s agreement to file all outstanding and future quarterly expense
reports as set forth in the Consent Agreement, 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 $ 4,770.00 in accordance with the Consent Agreement of the
parties, and has now filed quarterly expense reports for the second, third, and fourth
quarters 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 “P22681,” Mid Atlantic Public
Insurance Adjusters was subject to the reporting requirements of Section 13A05 of
Pennsylvania’s lobbying disclosure law (“Lobbying Disclosure Law”), 65 Pa.C.S. §
13A05.
2. Mid Atlantic Public Insurance Adjusters, in its capacity as a registered principal,
failed to timely file quarterly expense reports with the Department of State for the
second, 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 $4,770.00 (159 days x $30.00 per day)
is warranted.
In Re: Mid Atlantic Public Insurance Adjusters, : File Docket: 11-004-L
Respondent : Date Decided: 9/27/11
: Date Mailed: 9/28/11
ORDER NO. 007-SL
1. Mid Atlantic Public Insurance Adjusters, in its capacity as a principal registered with
the Pennsylvania Department of State (“Department of State”) under principal
registration number “P22681,” failed to timely file quarterly expense reports with the
Department of State for the second, 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 Mid Atlantic
Public Insurance Adjusters in the total amount of $4,770.00 for its delinquent
quarterly expense reports for the second, third, and fourth quarters of 2010.
4. In that Mid Atlantic Public Insurance Adjusters has already made payment of the
aforesaid administrative penalty in the total amount of $4,770.00 in accordance with
the Consent Agreement of the parties, and has now filed quarterly expense reports
for the second, third, and fourth quarters of 2010, no further action is required in
this case and this case is closed.
BY THE COMMISSION,
___________________________
Louis W. Fryman, Chair