HomeMy WebLinkAbout118-SL 10,000 Friends/Advocates for Pennsylvaniaa �
STATE ETHICS COMMISSION
309 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
In Re: 10,000 Friend slAdvocates for Pennsylvania, File Docket: 15 -015 -L
Respondent X -ref: Order No. 118 -SL
Date Decided: 1125117
Date Mailed: 213117
Before: Nicholas A. Colafella, Chair
Mark R. Corrigan, Vice Chair
Roger Nick
Maria Feeley
Melanie DePalma
This is a final adjudication of the State Ethics Commission as to the alleged
delinquency and /or deficiency of expense reports) required to be filed pursuant to
Pennsylvania's lobbying disclosure law, 65 Pa.C.S, §§ 13A01 et sew., 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 10,000 Friends/Advocates for 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.
1. 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 time) file a quarterly expense report
pursuant to 65 Pa.C.S. § 13A05, for the fourth 4th) quarter of 2014.
IL FINDINGS:
1. Respondent is 10,000 Friends /Advocates for Pennsylvania ( "Respondent ") and
is /was a registered principal as that term is defined by the Pennsyylvania Lobbying
Disclosure Law ( "Lobbying Disclosure Law "), Act 134 of 2006, 65 Pa.C.S. § 13A01,
et seg.
a. Respondent registered as a principal with the Department of State on April
30, 2013, far the registration period January 1, 2013, through December 31,
2014.
b. In filing its principal registration, Respondent identified its registered mailing
address as:
240 North YJ Street
STE 407
P.O. BOX 11470, HARRISBURG, PA 17108 -1470 • 717- 783 -1610 • 1 -800- 932 -0936 • www.ethics.state.pa.us
10,000 Friends/Advocates for Pennsylvania, 15 -015 -L
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Harrisburg, PA 17101
2. Respondent filed a principal registration statement with the Pennsylvania
Department of State on April 30, 2013.
a. Respondent's registration statement indicates that lobbying commenced on
May 1, 2013.
b. 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.
C. Respondent was assigned the principal registration number "P41935."
d. 10,000 Friends 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 P00983.
On April 30, 2015, a Notice of Alleged Noncompliance, naming
10,000 Friends 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-
016 -L.
e. 10,000 Friends of Pennsylvania (P00983) is an affiliate corporation of 10,000
Friends/Advocates of Pennsylvania (P41935) (Respondent).
f. The registered mailing address for both 10,000 Friends of Pennsylvania
(P00983) and 10,000 Friends/Advocates of Pennsylvania (P41935)
(Respondent), as listed on their principal registration statements, is:
240 N 31d Street
STE 407
Harrisburg, PA 17101
g. Both principals, 10,000 Friends of Pennsylvania (P00983) and 10,000
FriendslAdvocates of Pennsylvania (P41935) (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:
§ 93A04. 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:
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0
5.
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).
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).
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.
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(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 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)].
8. Section 13A05 of the Lobbying Disclosure Law additionally sets forth the threshold
with regard to reporting expenditures:
(d) Thresholds for re orting.�� 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:
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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.
"Le islative 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:
' ) legislation;
2 legislative motions;
3 a veto by the Governor; or
4 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. S. § 13A05(a), (d); 51 Pa. Code § 55.1(d)].
a. Respondent filed quarterly expense reports for each quarter, from the
second (2nd) quarter of 2013 through the third (3rd) quarter of 2014.
Respondent filed a quarterly expense report for the third (31d) 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.
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d. Respondent filed a Notice of Termination of its principal registration
statement on or about May 4, 2015, which notice Respondent intended to be
effective as of September 30, 2014.
e. Respondent filed its fourth (4th) quarter 2014 expense report on .tune 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 .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 March 4, 2015, Respondent was served with notice
in accordance with Section 13A09 of the Lobbying Disclosure Law and Section
63.4('!) of the Lobbying Disclosure Regulations of the specific allegations that
Respondent failed to file a quarterly expense report for the fourth (4t) quarter of
2014.
a. Said Warning Notice was mailed to:
10,000 Friends /Advocates for Pennsylvania
240 North 31d 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(b) above).
13. Said Warning Notice letter set forth the nature of the alleged noncompliance and
the administrative and criminal penalties for failing to file.
10,000 Friends /Advocates for Pennsylvania, 15 -015 -L
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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.
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 /Advocates for Pennsylvania.
16. On June 30, 2015, Respondent filed a quarterly expense report with the
Pennsylvania Department of State for the fourth (4th) quarter of 2014.
Ill. 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.
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 registered as a principal with the Department of State on April 30,
2013, for the registration period January 1, 2013, through December 31, 2014.
Respondent's registration statement indicated that lobbying commenced on May 1, 2013.
Respondent was assigned the principal registration number "P41935."
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 on April 30, 2013, 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).
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The Warning Notice letter provided Respondent an opportunity to cure the alleged
noncompliance and avoid the institution of these proceedings b film a quarterly expense
report for the fourth quarter of 2014 with the Department of St%e 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 June 30, 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. §
13AQ9(c)(1). Per the Consent Agreement, the parties are in agreement that Respondent's
expense report for the fourth quarter of 2014 was 151 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
L65 Pa.C.S. § 13A04), failed to timelyy 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 [islare] deemed to
be negligent in nature.
G. Respondent was deficient in filing its Fourth (4th)
Quarter 2014 Expense Report by a total of 151 days.
i. Expense Reports reflecting reporting for the
Fourth Quarter 2014 were to be filed with the
Pennsylvania Department of State by the close
of business January 30, 2015.
ii. Respondent did not file the
Quarterly Expense Report for the Fourth (4th
Quarter of 2014 until June 30, 2015.
4. The parties have negotiated a settlement amount, which is to
be paid through the matter docketed as 15- 016 -L, and as such,
the Investigative Division recommends that this Honorable
Commission impose no additional administrative penalty
against Respondent in the instant matter.
5. To the extent it has not already done so, Respondent agrees
to file all outstanding quarterly expense reports for the
10,000 Friends/Advocates for Pennsylvania, 15 -015 -L
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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.
Respondent agrees to timely file all future quarterly
expense reports for the quarters that said entity
is /remains a Registered Principal wit the Pennsylvania
Department of State, in accordance with the
Pennsylvania Lobbying Disclosure Law (65 Pa.C.S. §
13A01 et se q.) 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. 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 A reement, at 1 -2.
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 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 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. We accept the
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 151 days delinquent in filing its
quarterly expense report for the fourth quarter of 2014.
The parties have negotiated a settlement amount, which is to be paid through the
matter docketed as 15016 -L, and as such, the Investigative Division recommends that this
Commission impose no additional administrative penalty against Respondent in the instant
matter.
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. We specifically approve the agreement
of the parties that the settlement amount that has been negotiated by the parties is to be
paid through the matter docketed as 15- 0'16 -L, such that no additional administrative
penalty is imposed against Respondent in the instant matter.
In that Respondent 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 "P41935," 10,000 Friends/Advocates for
10,000 Friends/Advocates for Pennsylvania, 15 -015 -L
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Pennsylvania has been subject to the reporting re uirements of Section 13A05 of
Pennsylvania's lobbying disclosure law (`Lobbying Disclosure Law "), 65 Pa.C.S. §
13A05.
2. 10,0001=riends /Advocates for 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 13A05 of
the Lobbying Disclosure Law, 65 Pa.C.S. § 13A05.
3. 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.
In Re: 10,000 Friends/Advocates for Pennsylvania, File Docket: 15 -015 -L
Respondent Date Decided: 1/25117
Date Mailed: 213117
ORDER NO. 118 -SL
1. 10,000 Friends/Advocates for Pennsylvania, in its capacity as a principal registered
with the Pennsylvania Department of State ( "Department of State ") under, principal
registration number "P41935," 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 approves the agreement of the parties that the settlement amount
that has been negotiated b the parties is to be paid through the matter docketed as
15- 016 -L, such that no additional administrative penalty is imposed against 10,000
Friend slAdvocates for Pennsylvania in the instant matter.
4. In that 10,000 Friends/Advocates for Pennsylvania 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.
BY THE COMMISSION,
e
ic o as A. Colafella, Chair