HomeMy WebLinkAbout119-SL 10,000 Friends of Pennsylvania1t
STATE ETHICS COMMISSION
309 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
In Re: 10,000 Friends of Pennsylvania, File Docket:
15 -016 -L
Respondent X -ref: Order No.
119 -SL
Date Decided:
1125117
Date Mailed:
213117
Before: Nicholas A. Colafelia, Chair
Mark R. Corrigan, Vice Chair
Roger Nick
Marla 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 lnvestigative Division initiated these proceedings by filing with the State Ethics
Commission and serving upon Respondent 10,000 Friends of Pennsylvania (hereinafter
also referred to as "Respondent ") a Notice of Alleged Noncompliance. An Answer was
filed. 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.
References in this adjudication and Order to $2,500.00 thresholds are to the
thresholds that were in effect during the relevant time period. Such thresholds
increased to $3,000.00 effective January 1, 2017.
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. § 13A05, for the fourth (4th) quarter of 2014.
[I. FINDINGS:
1. Respondent is 10,000 Friends of Pennsylvania ( "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 se q.
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, 2013, through December
31, 2014.
P.O. BOX 1 1470, HARRISBURG, PA 17108 -1470 • 717- 783 -1610 • 1- 800 - 932 -0936 • www.ethics.state.pa.us
10,000 Friends of Pennsylvania, 15 -016 -L
Page
a. 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.
b. Respondent was assigned the principal registration number °P00983."
C. In filing its principal registration, Respondent identified its registered mailing
address as:
240 N. 3rd Street
STE 407
Harrisburg, PA 17101
d. 10,000 Friends /Advocates of Pennsylvania was a registered principal as that
term is defined by the Lobbying Disclosure Law for the 2013 -2014
registration period, and was assigned principal registration number P41935.
1. On April 30, 2015, a Notice of Alleged Noncompliance, naming
10,000 Friends/Advocates of Pennsylvania as a Respondent, was
filed with the State Ethics Commission for failure to file a fourth (4th)
quarter 2014 expense report pursuant to the Lobbying Disclosure
Law; this matter is docketed with the State Ethics Commission as
docket number 15- 015 -L.
e. 10,000 Friends /Advocates of Pennsylvania (P41935) is an affiliate
corporation of 10,000 Friends of Pennsylvania (P00983) (Respondent).
The registered mail in address for both 10,000 Friends /Advocates of
Pennsylvania (P4193� and 10,000 Friends of Pennsylvania (P00983)
(Respondent) as listed on their principal registration statements, is:
240 N 3rd Street
STE 407
Harrisburg, PA 17101
g. Both principals, 10,000 Friends /Advocates of Pennsylvania P41935) and
10,000 Friends of Pennsylvania (P00983) (Respondent) are housed in the
same location.
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. --
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:
10,000 Friends of Pennsylvania, 15 -016 -L
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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).
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.
10 000 Friends of Penns ivania, 15 -016.1
Page 4
(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.
(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 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
has been registered as a princi al, by no later than the 30th day after each quarterly
reporting period has ended. 6 Pa.C.S. § 13A05(a), (d); 51 Pa. Code § 55.1(d)].
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 lobbyingg
exceed $2,500 for a registered principal in a reporting penod.
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:
10,000 Friends of Pennsylvania, 15 -016 -L
Page
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:
11 legislation;
2 legislative motions;
3 a veto by the Governor; or
41 confirmation of appointments
public boards or commissions
by the Governor or appointments to
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.
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
has been registered as a principal, by no later than the 30th day after each quarterly
reporting period has ended. 65 Pa.C.S. § 13A05(a), (d); 51 Pa. Code § 55.1(d)J.
a. Respondent filed quarterly expense reports for each quarter, from the first
(1St) quarter of 2007 through the third (3rd�,q uart er of 2014. Respondentfiled
a quarterly expense report for the third ( ) quarter of 2014 on October 30,
2014.
b. Respondent did not file a fourth (4th) quarter 2014 expense report by January
30, 2015.
1. Respondent's employee charged with ensuring compliance with the
Lobbying Disclosure Law resigned in early 2014, and Respondent did
not hire a replacement due to budgetary constraints.
2. Respondent's remaining employees relied on a previously established
calendar reminder system in Respondent's office computers to ensure
continued compliance.
3. In the fall of 2014, Respondent upgraded substantially all of its office
computers, resulting in the termination of those calendar reminders.
C. Respondent incurred no lobbying expenses in the fourth (4th) Quarter 2014.
10,000 Friends of Pennsylvania, 15 -016 -L
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d. Respondent filed its fourth (4th) quarter 2014 expense report on May 4, 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 re ort, 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 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
Respondent failed to file a quarterly expense report for the fourth (4E) quarter of
2014.
a. Said Warning Notice was mailed to:
10,000 Friends of Pennsylvania
240 N. 3rd Street
Suite 407
Harrisburg, PA 17101
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 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 the
fourth (41h) quarter of 2014 with the Department of State within thirty (30) days from
the mailing date of the Warning Notice letter.
10,000 Friends of Pennsylvania, 15 -016 -L
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15. The Chief of the Division of Campaign Finance and Lobbying Disclosure [for the
Commonwealth of Pennsylvania Department of State] conducted a search of the
Department of State's records, and, as of April 17: 2015, no fourth (4th) quarter
2014 expense report was found to have been filed with the Department of State for
10,000 Friends of Pennsylvania.
16. On May 4, 2015, Respondent filed a quarterly expense report with the Pennsylvania
Department of State for the fourth (41h) quarter of 2014.
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, negligent) failed to time) file a quarterly expense report
pursuant to 65 Pa.C.S. § 13A05 for the fourth quarter of 2014.
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, 2013, througgh December 31, 2014. Respondent was
assigned the principal registration number "P00983."
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
10,000 Friends of Pennsylvania, 15 -016 -L
Page
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 of 2014 expense report was found to have
been filed with the Department of State for Respondent.
On May 4, 2015, Respondent filed a quarterly expense report with the Department
of State for the fourth quarter of 2014.
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 fourth quarter of 2014 was 62 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 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. § 13A05, for
the Fourth (4th) Quarter of 2014.
b. That the transgression(s) of the Lobbying Disclosure
Law outlined in paragraph (a) above [is /are] deemed to
be negligent in nature.
C. Respondent was deficient in filing its fourth (4th) quarter
2014 Expense Report by a total of 62 days, calculated
as set forth below:
On March 4, 2015, a Warning Notice regarding
the delinquent quarterly expense report was sent
to Respondent via First Class United States Mail;
Respondent did not file the outstandin
Quarterly Expense Report for the Fourth (4th),
Quarter of 2014 within the stated cure period;
iii. On May 4, 2015, Respondent filed a Quarterly
Expense Report with the Pennsylvania
Department of State for the Fourth (4th) Quarter
of 2014;
iv. For purposes of this Consent Agreement only,
the delinquent period is calculated from the date
of the Warning Notice Letter (March 4, 2015)
until the Late Respondent filed its outstanding
fourth (4) quarter 2014 Expense Report, that
10,000 Friends of Pennsylvania, 15 -016 -L
Page
date being May 4, 2095, said period being 62
days.
4. Respondent agrees to pay the sum of $1,798.00 in settlement
of this matter.
a. Pursuant to Section 13AO9(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 $29.00 per day during the delinquent period as
outlined above for a total amount of $1,798.00 (62 days
x $29.00 per diem), which shall be made payable to the
Commonwealth of Pennsylvania.
b. 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.
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 wasps 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 se q.)
6. The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter. 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 faded 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.
Accordingly, we hold that Respondent as a registered principal failed to time) 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. We accept the
10,000 Friends of Penns Ivania, 15 -016 -L
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recommendation of the parties for a determination that the transgression of the Lobbying
Disclosure Law outlined immediately above is deemed to be negligent in nature.
The parties have agreed that Respondent was 62 days delinquent in filing its
quarterly expense report for the fourth quarter of 2014.
As part of the Consent Agreement, Respondent agreed to pa yy an administrative
penalt , by way of certified check or money order, in the amount of $1,798.00 (62 days x
$29.00 per day), 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.
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
10,000 Friends of Pennsylvania in the amount of $1,798.00 for its delinquent quarterly
expense report for the fourth quarter of 2014.
We take administrative notice that Respondent has already made payment of the
aforesaid administrative penalty in the amount of $1,798.00 through this Commission to the
Commonwealth of Pennsylvania, as per the Consent Agreement of the parties.
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 10,000 Friends of Pennsylvania has already made payment of the aforesaid
administrative penalty in the amount of $1,798.00 and has now filed a quarterly expense
report for the fourth quarter of 2014, 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 °P00983," 10,000 Friends of
Pennsylvania 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. 10,000 Friends of Pennsylvania, 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 13AQ5 of
the Lobbying Disclosure Law, 65 Pa.C.S. § 13A05.
The transgression of the Lobbying Disclosure Law outlined in paragraph 2
immediately above is 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, the imposition of an administrative
10,000 f=riends of Penns Ivania, 15- 016 -1.
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penalty in the amount of $1,798.00 (62 days x $29.00 per day) is warranted.
In Re: 10,000 Friends of Pennsylvania, File Docket: 15- -016 -L
Respondent Date Decided: 1125117
Date Mailed: 213117
ORDER NO. 119 -SL
1. 10,000 Friends of Pennsylvania, in its capacity as a principal registered with the
Pennsylvania Department of State (" Department of State ") under principal
registration number "P00983," 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 of the Lobbying Disclosure Law outlined in paragraph 1
immediately above is deemed to be negligent in nature.
3. This Commission hereby levies one administrative penalty against 10,000 Friends
of Pennsylvania in the amount of $1,798.00 for its delinquent quarterly expense
report for the fourth quarter of 2014.
4. In that 10,000 Friends of Pennsylvania has already made payment of the aforesaid
administrative enalty in the amount of $1,798.00 and has now filed a quarterly
expense reportfor the fourth quarter of 2014, no further action is required in this
case, and this case is closed.
BY THE COMMISSION,
01110GIRM.1wene