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HomeMy WebLinkAbout116-SL Mid-Atlantic Communty Papers Associationf�f L P STATE ETHICS COMMISSION 309 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 In Re: Mid - Atlantic Community Papers Association, File Docket: 16 -009 -L Respondent X -ref: Order No. 116 -SL Date Decided: 10/20/16 Date Mailed: 1112116 Before: Nicholas A. Colafella, Chair Mark R. Corrigan, Vice Chair Roger Nick 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 proceedinggs by filing with the State Ethics Commission and serving upon Respondent Mid - Atlantic Community Papers Association ((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 pursuant to 65 Pa.C.S. § 13AO5, for the first (1 ) quarter of 2016. il. FINDINGS: Respondent is Mid - Atlantic Community Papers Association ( "Respondent "); Respondent (was previousllosure a registered principal as that term is defined by the Pennsylvania Lobbying Disc Law ( "Lobbying Disclosure Law "), Act 134 of 2006, 65 Pa.C.S. § 13A01, et seg. a. Respondent initially registered as a principal with the Department of State on January 22, 2007, for the registration period January 1, 2007, through December 31, 2008. b. Respondent's registration statement indicates that lobbying commenced on January 15, 2007. C. By registering with the Department of State, Respondent consented to receive service of notices, other official mailings, or process at the address listed on the registration statement. d. Respondent was assigned the principal registration number "P00176." P.O. BOX 11470, HARRISBURG, PA 17 1 08- 1 470 . 7 17-783-16 10 • 1- 800 - 932 -0936 • www.ethics.state.pa.us Mid - Atlantic Communit y Papers Association, 16 -009 -L age e. In filing its principal registration, Respondent identified its registered mailing address as: 508 Chestnut Street P.O. Box 408 Hamburg, PA 19526 -0408 2. The Lobbying Disclosure Law, specifically 65 Pa.C.S. § 13A04, states the following regarding the registration of an entity as a principal: § 13Aa4. 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. -- 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. A 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 fi a 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. Mid - Atlantic Community Papers Association, 16 -009 -L 1 e 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. Section 13AQ5 of the Lobbying Disclosure Law sets forth, in ppart, the following requirements for the contents of quarterly reporting forms filed by principals. § 13A ©5. 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). 5. In addition to the Lobbying Disclosure Law, the duly promulgated Regulations provide further instructions in relation to registration periods ancf reporting periods: § 51.3. Registration periods and reporting periods. (b) Reporting under section 13A05 of the act (relating to reporting) shall be uarterly within each calendar year: for January through March; April through une; 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. Mid - Atlantic Community Papers Association, 16 -009 -L age 51 Pa. Code § 51.3(b). 6. As a registered principal, Respondent [has been required to file either a quarterly expense report or a statement of failure to meet the reporting threshold for each quarter it has been 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)]. 7. 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). 8. 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 personnel expenses and office expenses. 65 Pa.C.S. § 13A03. 9. As a registered principal, Respondent [has been required to file either a quarterly Mid - Atlantic Communit y Papers Association, 16 -009 -L age 5 expense report or a statement of failure to meet the reporting threshold for each quarter it has been registered as a principal, by no later than the 30t day after each quarterly reporting period has ended. 65 Pa.C.S. § 13A05(a), (d); 51 Pa. Code § 55.1(d)]. a. Respondent terminated its principal registration on ,January 28, 2016. b. Respondent did not file a first (15t) quarter 2016 expense report by the filing deadline, [because April 30, 2016, was a Saturday, the filing deadline was Monday, May 2, 2016. See, 51 Pa. Code § 51.2]. Respondent attempted to contact the Department of State in regards to filing its first (18) quarter 2016 expense report during the Warning Notice cure period, but a communication failure and technical complications in regards to the Department of State's electronic filing prevented Respondent from electronically timely filing the expense report. 10. The Regulations promulgated under the Lobbying Disclosure Law specifically provide the following in relation to a delinquent filing: § 51.4. Delinquency. (a) Are ggistration 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 .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). 11. [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 13A06 of the act (relating to exemption from registration and reporting) need not register or report. Mid - Atlantic Community Papers Association, 16 -009 -L age (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). 12. By Warning Notice letter dated May 31, 2016, 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 Respondent failed to file a quarterly expense report for the first (1 S) quarter of 2016. a. Said Warning Notice was mailed to: Mid - Atlantic Community Papers Association 508 Chestnut Street P.O. Box 408 Hamburg, PA 19526 -0408 b. This is the same address as listed on Respondent's principal registration statement. Mid - Atlantic Community Papers Association, 16 -009 -L P 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 o 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 he first (15 f quarter of 20T6 with the Department of State within thirty (30) days from the mai ing date of the Warning Notice letter. 15. The Chief of the Division of Campaign Finance and Lobbying Disclosure for the Commonwealth of Pennsylvania Department of State conducted .9 search of the Department of State's records, and, as of July 19, 2016, no first (15) quarter 2016 expense report was found to have been filed with the Department of State for Respondent. 16. On July 26 and 27, 2016, Investigative Division staff collaborated with representatives from both Respondent and the Department of State to solve the issues in this case and make sure that Respondent's first (1 st) quarter 2016 expense report was properly filed on July 26, 2016. 111. 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, negligent) failed to timely file a quarterly expense report pursuant to 65 Pa.C.S. § 13A05 for the first quarter of 2016. 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 22, 2007, forthe re istration period January 1, 2007, through December 31, 2008. Respondent's registration s�atement indicated that lobbying commenced on January 15, 2007. Respondent was assigned the principal registration number "P00176." We take administrative notice that per the Department of State's web site, Respondent last renewed its principal registration on March 13, 2015, for the registration period January 1, 2015, through December 31, 2016. 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 periodlquarter, 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 30 day after each quarterly reporting period ends. 51 Pa. Code § 55.1(d). Having renewed its principal registration on March 13, 2015, 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 2016 even though Respondent had terminated its principal registration on January 28, 2016. Respondent failed to file a Mid - Atlantic Community Papers Association, 16 -009 -L age quarterly expense report for the first quarter of 2016 by the filing deadline. By Warning Notice letter dated May 31, 2016, issued to Respondent, Respondent was notified of specific allegations that Respondent had failed to file a quarterly expense report for the first quarter of 2016. Respondent attempted to contact the Department of State with regard to filing its first quarter 2016 expense report during the Warning Notice cure period. However, a communication failure and technical complications involving the Department of State's electronic filing prevented Respondent from electronically timely filing the expense report. On July 26 and 27, 2016, Investigative Division staff collaborated with representatives from,both Respondent and the Department of State to solve the issues in this case and make sure that Respondent's first quarter 2016 expense report was properly filed on July 26, 2016. 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: That no violation of Section 13A05 of the Pennsylvania Lobbying Disclosure Law, 65 Pa.C.S. § 13A05, occurred in relation to Respondent's failure to time file a Quarterly Expense Report for the first (1 ) quarter of 2016, as Respondent had terminated its principal registration on January 28, 2016, and a technical error with the Department of State's electronic filing prevented Respondent from timely filing its first (; St) quarter2016 Quarterly Expense Report, which was eventually filed on July 26, 2016. 4. The State Ethics Commission has incurred costs in the investigation and enforcement of this matter, and as such, Respondent agrees to pay an amount of $500.00, representing a portion of those costs, to be made payable to the Pennsylvania State Ethics Commission. a. Said payment (certified check or money order) shall be forwarded to the Pennsylvania State Ethics Commission upon execution of this agreement, and 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 b the Commission, the Investigative Division shall submit said payment of costs for deposit. 5. On July 26, 2016, Respondent filed a first (1St) Quarter 2016 Expense Report pursuant to Principal Registration Number P00176, indicating that no lobbying expenses were incurred by Mid - Atlantic Community Papers Association, 16 -009 -t. age the Respondent during the first (1S) Quarter of 2016. 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 Lobbyin Disclosure Law (65 Pa.C.S. § 13A01 et sew and the Regulations of the Lobbying Disclosure Law (51 Pa. Code. § 51.1 et seq.) 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 1-2. In considering the Consent Agreement and Stipulation of Findings, and the peculiar circumstances in this case, we accept the parties' recommendation and we hold that no violation of Section 13A05 of the Lobbying Disclosure Law, 65 Pa.C.S. § 13A05, occurred in relation to Respondent's failure to timely file a quarterly expense report for the first quarter of 2016, as Respondent had terminated its principal registration on January 28, 2016, and a technical error with the Department of State's electronic filing prevented Respondent from timely filing its first quarter 2016 quarterly expense report, which was eventually filed on July 26, 2016. As part of the Consent Agreement, Respondent has agreed to pay $500.00 to this Commission, 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. The Consent Agreement provided that said 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 payment for deposit. We determine that the Consent Agreement submitted by the parties sets forth a proper disposition for this case, based upon the totality of the facts and circumstances. Accordingly, we approve the Consent Agreement that has been submitted by the parties. Per the Consent Agreement of the parties, Respondent is directed to pay the amount of $500.00, representing a ortion 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 amount of $500.00 to this Commission as per the Consent Agreement of the parties. As for Respondent's agreement to file any /all 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. Mid - Atlantic Community Papers Association, 16 -009 -L age In that Mid - Atlantic Community Papers Association: has already made payment of the aforesaid amount of $500.00, 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 forthe first quarter of 2016, no further action is required in this case, and 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 "P00176," Mid - Atlantic Community Papers Association has been subject to the reporting requirements of Section 13A05 of Pennsyylvania`s lobbying disclosure law ( "Lobbying Disclosure Law "), 65 Pa.C.S. § 13A05. 2. No violation of Section 13A05 of the Lobbying Disclosure Law, 65 Pa.C.S. § 13A05, occurred in relation to the failure of Mid - Atlantic Community Papers Association to timely file a quarterly expense report for the first uarter of 2016, as it had terminated its principal registration on January 28, 201y, and a technical error with the Department of State s electronic filing prevented it from timely filing its first quarter 2016 quarterly expense report , which was eventually filed on July 26, 2016. 3. Based upon the totality of the circumstances in this case, the payment to this Commission in the amount of $500.00, representing a portion of the costs incurred by the Commission in the investigation and enforcement of this matter, is warranted. In Re: Mid - Atlantic Community Papers Association, File Docket: 16 -009 -L Respondent Date Decided: 10/20/16 Date Mailed: 1112116 ORDER NO. 116 -SL No violation of Section 13A05 of Pennsylvania's lobbying disclosure law ( "lobbying Disclosure Law "), 65 Pa.C.S. § 13A05, occurred in relation to the failure of IVlicf- Atlantic Community Papers Association -- formerly a principal registered with the Pennsylvania Department of State ( "Department of State ") under principal registration number "P00176 " - -to timely file a quarterly expense report for the first quarter of 2016, as it had terminated its principal registration on January 28, 2016, and a technical error with the Department of State s electronic filing prevented it from timely filing its first quarter 2016 quarterly expense report, which was eventually filed on July 26, 2016. Per the Consent Agreement of the parties, Mid - Atlantic Community Papers Association is directed to pay the amount of $500.00, 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. In that Mid - Atlantic Community Papers Association: has already made payment of the aforesaid amount of $500.00, 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 2016, no further action is required in this case, and this case is closed. BY THE COMMISSION, a Nicholas A. Colafella, Chair