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Home My WebLink About105-SL National Liberty Museum In Re: National Liberty Museum, : File Docket: 15-022-L Respondent : X-ref: Order No. 105-SL : Date Decided: 10/7/15 : Date Mailed: 10/28/15 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 National Liberty Museum (hereinafter also referred to as “Respondent”) a Notice of Alleged Noncompliance. The Respondent did not file an Answer, Appeal, or other Request for Hearing. The record is complete. The Findings in this Order are derived from the Notice of Alleged Noncompliance filed by the Investigative Division. 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 th pursuant to 65 Pa.C.S. § 13A05, for the fourth (4) quarter of 2014. II.FINDINGS: 1. Respondent is National Liberty Museum (“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 10, 2007, for the registration period January 1, 2007, through December 31, 2008. b. Respondent’s registration statement indicates that lobbying commenced on April 3, 2006. 2. Respondent filed a principal registration statement with the Pennsylvania Department of State for the registration period January 1, 2013, through December 31, 2014. a. By registering with the Department of State, Respondent consented to National Liberty Museum, 15-022-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 “P00998.” c. In filing its principal registration, Respondent identified its registered mailing address as: 321 Chestnut Street Philadelphia, PA 19106 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). National Liberty Museum, 15-022-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 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). 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. National Liberty Museum, 15-022-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 National Liberty Museum, 15-022-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 strd (1) quarter of 2007 through the third (3) quarter of 2014. Respondent filed rd a quarterly expense report for the third (3) quarter of 2014 on October 1, 2014. th b. Respondent did not file a fourth (4) quarter 2014 expense report by the filing deadline of January 30, 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. \[In relation\] 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 National Liberty Museum, 15-022-L Page 6 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)(i)-(ii). 13. By Warning Notice letter dated March 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 th Respondent failed to file a quarterly expense report for the fourth (4) quarter of 2014. a. Said Warning Notice was mailed to: National Liberty Museum 321 Chestnut Street Philadelphia, PA 19106 National Liberty Museum, 15-022-L Page 7 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). 14. Said Warning Notice letter set forth the nature of the alleged noncompliance and the administrative and criminal penalties for failing to file. 15. 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 th fourth (4) quarter of 2014 with the Department of State within thirty (30) days from the mailing date of the Warning Notice letter. 16. The Chief of the Division of Campaign Finance and Lobbying Disclosure conducted a search of the Department of State’s records, and, as of April 17, 2015, no fourth th (4) quarter 2014 expense report was found to have been filed with the Department of State for National Liberty Museum. 17. The thirty-day deadline set forth in the Warning Notice letter to Respondent expired with Respondent failing to comply with the specific requirements of the Lobbying Disclosure Law. th 18. The first day on which Respondent’s fourth (4) quarter 2014 expense report was delinquent was January 31, 2015. 19. We take administrative notice that per the Department of State’s web site, Respondent’s fourth quarter 2014 expense report was filed on May 4, 2015. 20. Respondent’s fourth quarter 2014 expense report was delinquent for 93 days. 21. There are no mitigating circumstances concerning Respondent’s failure to timely file the fourth quarter 2014 quarterly expense report. 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 fourth quarter of 2014. 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. We shall now summarize the relevant facts. Respondent initially registered as a principal with the Department of State on January 10, 2007, for the registration period January 1, 2007, through December 31, 2008. Respondent’s registration statement indicated that lobbying commenced on April 3, 2006. Respondent registered as a principal with the Department of State for the National Liberty Museum, 15-022-L Page 8 registration period January 1, 2013, through December 31, 2014. Respondent was assigned the principal registration number “P00998.” 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). Having registered for the registration period January 1, 2013, through December 31, 2014, Respondent was required to file a quarterly expense report for the fourth quarter of 2014. Respondent failed to file a quarterly expense report for the fourth quarter of 2014 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 March 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 fourth quarter of 2014 with the Department of State within thirty (30) days of the mailing date of the Warning Notice letter. As of April 17, 2015, no fourth quarter 2014 expense report was found to have been filed with the Department of State for Respondent. Respondent’s fourth quarter 2014 expense report was delinquent from January 31, 2015, until the form was received by the Department of State on May 4, 2015. See, 51 Pa. Code § 51.4(b). 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). Excluding the filing date (May 4, 2015) from the calculation, Respondent’s quarterly expense report for the fourth quarter of 2014 was delinquent for a total of 93 days. The maximum administrative penalty that may be imposed in this case is $4,650.00 (93 days x $50.00 per day = $4,650.00). We hold that Respondent National Liberty Museum as a registered principal failed to timely file its fourth quarter 2014 expense report with the Department of State as required by Section 13A05 of the Lobbying Disclosure Law. We determine that the transgression of the Lobbying Disclosure Law outlined immediately above was negligent in nature. We determine that there are no mitigating circumstances in this case to warrant imposing less than a maximum administrative penalty. See, 51 Pa. Code § 63.6(3). National Liberty Museum, 15-022-L Page 9 This Commission hereby levies one maximum administrative penalty against Respondent National Liberty Museum in the amount of $50 per day for each of the 93 days its quarterly expense report for the fourth quarter of 2014 was delinquent, for a total administrative penalty of $4,650.00 (93 days x $50.00 per day). Respondent National Liberty Museum is directed to pay the aforesaid administrative penalty in the total amount of $4,650.00 by way of certified check or money order in the amount of $4,650.00 payable to the Commonwealth of Pennsylvania and forwarded to this th Commission by no later than the thirtieth (30) day after the mailing date of this adjudication and Order. Noncompliance will result in the institution of an order enforcement action. IV.CONCLUSIONS OF LAW: 1. As a principal registered with the Pennsylvania Department of State (“Department of State”) under principal registration number “P00998,” National Liberty Museum 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. National Liberty Museum, 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 fourth quarter of 2014 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 $4,650.00 (93 days x $50.00 per day) is warranted. In Re: National Liberty Museum, : File Docket: 15-022-L Respondent : Date Decided: 10/7/15 : Date Mailed: 10/28/15 ORDER NO. 105-SL 1. National Liberty Museum, in its capacity as a principal registered with the Pennsylvania Department of State (“Department of State”) under principal registration number “P00998,” failed to timely file a quarterly expense report with the Department of State for the fourth quarter of 2014 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 National Liberty Museum in the amount of $50 per day for each of the 93 days its quarterly expense report for the fourth quarter of 2014 was delinquent, for a total administrative penalty of $4,650.00. 4. National Liberty Museum is directed to pay the aforesaid administrative penalty in the amount of $4,650.00 by way of certified check or money order in the amount of $4,650.00 payable to the Commonwealth of Pennsylvania and forwarded to the th Pennsylvania State Ethics Commission by no later than the thirtieth (30) day after the mailing date of this Order. a. Noncompliance will result in the institution of an order enforcement action. BY THE COMMISSION, ___________________________ Nicholas A, Colafella, Chair