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HomeMy WebLinkAbout104-SL Magee Rehabilitation Hospital In Re: Magee Rehabilitation Hospital : File Docket: 15-023-L Respondent, : X-ref: Order No. 104-SL : Date Decided: 10/7/15 : Date Mailed: 10/27/15 Before: Nicholas A. Colafella, Chair Mark R. Corrigan, Vice Chair Roger Nick Kathryn Streeter Lewis Maria Feeley Melanie DePalma This is a final adjudication of the State Ethics Commission as to the alleged delinquency and/or deficiency of 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 Magee Rehabilitation Hospital (hereinafter also referred to as “Respondent”) a Notice of Alleged Noncompliance. A Stipulation of Findings and a Consent Agreement 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 Respondent, 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), negligently failed to timely file a quarterly expense report st pursuant to 65 Pa.C.S. § 13A05, for the first (1) quarter of 2015. II.FINDINGS: 1. Respondent is Magee Rehabilitation Hospital (“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 initially registered as a principal with the Department of State on January 12, 2007, for the registration period January 1, 2007, through December 31, 2008. b. Respondent’s registration statement indicates that lobbying commenced on January 3, 2007. 2. Respondent filed a principal registration statement with the Pennsylvania Department of State for the registration period January 1, 2015, through December 31, 2016. a. By registering with the Department of State, Respondent consented to Magee Rehabilitation Hospital, 15-023-L Page 2 receive service of notices, other official mailings, or process at the address listed on the registration statement. b. Respondent was assigned the principal registration number “P01295.” c. In filing its principal registration, Respondent identified its registered mailing address as: 1513 Race Street Philadelphia, PA 19102 3. 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 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). Magee Rehabilitation Hospital, 15-023-L Page 3 4. 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). 5. 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 immediate 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). 6. 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. Magee Rehabilitation Hospital, 15-023-L Page 4 (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). 7. 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. 8. 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). 9. 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 Magee Rehabilitation Hospital, 15-023-L Page 5 legislative action or administrative action. The term may include personnel expenses and office expenses. 65 Pa.C.S. § 13A03. 10. As a registered principal, Respondent \[is required to file either a quarterly expense report or a statement of failure to meet the reporting threshold for each quarter it is th registered as a principal, by no later than the 30 day after each quarterly reporting period has ended. 65 Pa.C.S. § 13A05(a), (d); 51 Pa. Code § 55.1(d)\]. a. Respondent filed quarterly expense reports for each quarter, from the first stth (1) quarter of 2007 through the fourth (4) quarter of 2014. Respondent th filed a quarterly expense report for the fourth (4) quarter of 2014 on January 28, 2015. st b. Respondent did not file a first (1) quarter 2015 expense report by April 30, 2015. st 1. Respondent filed its first (1) quarter 2015 expense report on August 18, 2015. nd c. Respondent filed its second (2) quarter 2015 \[expense report\] on August 7, 2015. 11. 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). 12. By Warning Notice letter dated June 4, 2015, 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 st Respondent failed to file a quarterly expense report for the first (1) quarter of 2015. Magee Rehabilitation Hospital, 15-023-L Page 6 a. Said Warning Notice was mailed to: Magee Rehabilitation Hospital 1513 Race Street Philadelphia, PA 19102 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. (See, Paragraph 2(a) above). 13. Said Warning Notice letter set forth the nature of the alleged noncompliance and the administrative and criminal penalties for failing to file. 14. 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 a quarterly expense report for the time period covering the st first (1) quarter of 2015 with the Department of State within thirty (30) days from the mailing date of the Warning Notice letter. 15. The Chief of the Division of Campaign Finance and Lobbying Disclosure conducted a search of the Department of State’s records, and, as of August 5, 2015, no first st (1) quarter 2015 expense report was found to have been filed with the Department of State for Magee Rehabilitation Hospital. 16. The Lobbying Disclosure Law provides for civil and criminal penalties for failing to comply with the registration statement filing and quarterly expense reporting requirements thereof. Specifically, the Lobbying Disclosure Law provides that: a. Negligent failure to register or report, as required by the Law, is punishable by an administrative penalty not exceeding $50.00 for each late day. 65 Pa.C.S. § 13A09(c)(1). st 17. Respondent’s first (1) quarter 2015 expense report was filed electronically with the Department of State on August 18, 2015. 18. For purposes of this Consent Agreement only, the delinquent period is calculated from the end of the Warning Notice cure period (July 6, 2015) until the date st Respondent filed its outstanding first (1) quarter 2015 expense report, that date being August 18, 2015, said period being 44 days. III. DISCUSSION: In the instant matter, the alleged noncompliance is that Respondent, as a principal registered with the Pennsylvania Department of State (“Department of State”) pursuant to the Lobbying Disclosure Law, negligently failed to timely file a quarterly expense report pursuant to 65 Pa.C.S. § 13A05 for the first quarter of 2015. 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. Magee Rehabilitation Hospital, 15-023-L Page 7 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 initially registered as a principal with the Department of State on January 12, 2007, for the registration period January 1, 2007, through December 31, 2008. Respondent’s registration statement indicated that lobbying commenced on January 3, 2007. Respondent registered as a principal with the Department of State for the registration period January 1, 2015, through December 31, 2016. Respondent was assigned the principal registration number “P01295.” 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 th threshold by no later than the 30 day after each quarterly reporting period ends. 51 Pa. Code § 55.1(d). The parties are in agreement that having registered for the registration period January 1, 2015, through December 31, 2016, Respondent was required to file a quarterly expense report for the first quarter of 2015. Respondent failed to file a quarterly expense report for the first quarter of 2015 by the filing deadline. 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 June 4, 2015, 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 a quarterly expense report for the first quarter of 2015 with the Department of State within thirty (30) days of the mailing date of the Warning Notice letter. As of August 5, 2015, no first quarter 2015 expense report was found to have been filed with the Department of State for Respondent. Respondent’s first quarter 2015 expense report was filed electronically with the Department of State on August 18, 2015. 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 and Stipulation of Findings, the parties are in agreement that Respondent’s expense report for the first quarter of 2015 was 44 days delinquent. Magee Rehabilitation Hospital, 15-023-L Page 8 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 Respondent, 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 a Quarterly Expense Report pursuant to 65 Pa.C.S. § st 13A05, for the first (1) quarter of 2015. b. That the transgressions of the Lobbying Disclosure Law outlined in paragraph (a) above are deemed to be negligent in nature. st c. Respondent was deficient in filing its First (1) Quarter 2015 Expense Report by a total of 44 days, calculated as set forth below: i. On June 4, 2015, a Warning Notice regarding the delinquent quarterly expense report was sent to Respondent via First Class United States Mail; ii. Respondent did not file the outstanding st Quarterly Expense Report for the First (1) Quarter of 2015 within the stated cure period; iii. On August 18, 2015, Respondent filed a Quarterly Expense Report with the Pennsylvania st Department of State for the First (1) Quarter of 2015; iv. For purposes of this Consent Agreement only, the delinquent period is calculated from the end of the Warning Notice Cure Period (July 6, 2015) until the date Respondent filed its outstanding st First (1) Quarter 2015 Expense Report, that date being August 18, 2015, said period being 44 days. 4. Respondent agrees to pay the sum of $1,790.00 in settlement of this matter. a. Pursuant to Section 13A09(c)(1) of the Lobbying Disclosure Law, 65 Pa. C.S. § 13A09(c)(1), Respondent agrees to pay an administrative penalty in the amount of $35.00 per day during the delinquent period as Magee Rehabilitation Hospital, 15-023-L Page 9 outlined above for a total amount of $1,540.00 (44 days x $35.00 per diem), which shall be made payable to the Commonwealth of Pennsylvania. b. Respondent agrees to pay the amount of $250.00, representing a portion of the costs incurred by the Commission in the investigation and enforcement of this matter, which shall be made payable to the Pennsylvania State Ethics Commission. c. Said settlement payments (certified check or money order) shall be forwarded to the Pennsylvania State Ethics Commission upon execution of this agreement, and are 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 shall submit said settlement payments for deposit. 5. To the extent it has not already done so, Respondent 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. Respondent 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 accordance 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 Respondent, or any individual or representative of Respondent. 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. 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 a quarterly expense report with the Department of State for the first quarter of 2015 as required by Section 13A05 of the Lobbying Disclosure Law. Accordingly, we hold that Respondent as a registered principal failed to timely file a Magee Rehabilitation Hospital, 15-023-L Page 10 quarterly expense report with the Department of State for the first quarter of 2015 as required by Section 13A05 of the Lobbying Disclosure Law. We accept the recommendation of the parties for a determination that the transgression(s) of the Lobbying Disclosure Law outlined immediately above are deemed to be negligent in nature. The parties have agreed that Respondent was 44 days delinquent in filing its quarterly expense report for the first quarter of 2015. As part of the Consent Agreement, Respondent agreed to pay an administrative penalty, by way of certified check or money order, in the amount of $1,540.00 (44 days x $35.00 per day), payable to the Commonwealth of Pennsylvania and forwarded to this Commission upon execution of the Consent Agreement. Respondent also agreed to pay $250.00 to this Commission, representing a portion of the costs incurred by the Commission in the investigation and enforcement of this matter, to be made payable to the Pennsylvania State Ethics Commission. The Consent Agreement provided that said settlement payments 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 payments for deposit. 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 Magee Rehabilitation Hospital in the amount of $1,540.00 for its delinquent quarterly expense report for the first quarter of 2015. Additionally, per the Consent Agreement of the parties, Respondent is directed to pay the amount of $250.00, representing a portion of the costs incurred by the Commission in the investigation and enforcement of this matter, to be made payable to the Pennsylvania State Ethics Commission. We take administrative notice that Respondent has already made payment of the aforesaid administrative penalty in the amount of $1,540.00 through this Commission to the Commonwealth of Pennsylvania, as per the Consent Agreement of the parties. Respondent has also made payment to this Commission in the amount of $250.00, representing a portion of the costs incurred by the Commission in the investigation and enforcement of this matter. 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 Magee Rehabilitation Hospital: has already made payment of the aforesaid administrative penalty in the amount of $1,540.00; has made payment to this Commission in the amount of $250.00, representing a portion of the costs incurred by this Commission in the investigation and enforcement of this matter, in accordance with the Consent Agreement of the parties; and has now filed a quarterly expense report for the first quarter of 2015, no further action is required in this case, and this case is closed. IV.CONCLUSIONS OF LAW: Magee Rehabilitation Hospital, 15-023-L Page 11 1. As a principal registered with the Pennsylvania Department of State (“Department of State”) under principal registration number “P01295,” Magee Rehabilitation Hospital has been subject to the reporting requirements of Section 13A05 of Pennsylvania’s lobbying disclosure law (“Lobbying Disclosure Law”), 65 Pa.C.S. § 13A05. 2. Magee Rehabilitation Hospital, in its capacity as a principal registered with the Department of State, failed to timely file a quarterly expense report with the Department of State for the first quarter of 2015 as required by Section 13A05 of the Lobbying Disclosure Law, 65 Pa.C.S. § 13A05. 3. The transgression(s) 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 amount of $1,540.00 (44 days x $35.00 per day) and the payment to this Commission in the amount of $250.00, representing a portion of the costs incurred by the Commission in the investigation and enforcement of this matter, are warranted. In Re: Magee Rehabilitation Hospital : File Docket: 15-023-L Respondent, : Date Decided: 10/7/15 : Date Mailed: 10/27/15 ORDER NO. 104-SL 1. Magee Rehabilitation Hospital, in its capacity as a principal registered with the Pennsylvania Department of State (“Department of State”) under principal registration number “P01295,” failed to timely file a quarterly expense report with the Department of State for the first quarter of 2015 as required by Section 13A05 of Pennsylvania’s lobbying disclosure law (“Lobbying Disclosure Law”), 65 Pa.C.S. § 13A05. 2. The transgression(s) 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 Magee Rehabilitation Hospital in the amount of $1,540.00 for its delinquent quarterly expense report for the first quarter of 2015. 4. Additionally, per the Consent Agreement of the parties, Magee Rehabilitation Hospital is directed to pay the additional amount of $250.00, representing a portion of the costs incurred by this Commission in the investigation and enforcement of this matter, to be made payable to the Pennsylvania State Ethics Commission. 5. In that Magee Rehabilitation Hospital: has already made payment of the aforesaid administrative penalty in the amount of $1,540.00; has made payment to this Commission in the amount of $250.00, representing a portion of the costs incurred by this Commission in the investigation and enforcement of this matter, in accordance with the Consent Agreement of the parties; and has now filed a quarterly expense report for the first quarter of 2015, no further action is required in this case, and this case is closed. BY THE COMMISSION, ___________________________ Nicholas A. Colafella, Chair