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HomeMy WebLinkAbout6-L Citiziens to Protect our PennsylvaniaPHONE: 717 -783 -1610 TOLL FREE: 1- 800 -932 -0936 d OR1� STATE ETHICS COMMISSION FINANCE BUILDING 613 NORTH STREET, ROOM 309 HARRISBURG, PA 17120 -0400 FACSIMILE; 717- 787 -0806 WESSITE: www.ethics.pa.gov In Re: Citizens to Protect our Pennsylvania, : File Docket: 18 -001 L Respondent : X -ref: Order No. 6 -L Date Decided: 10/23/18 Date Mailed: 1115118 Before: Nicholas A. Colafella, Chair Mark R. Corrigan, Vice Chair Roger Nick Melanie DePalma Monique Myatt Galloway Michael A. Schwartz This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding possible violation(s) of Pennsylvania's lobbying disclosure law ( "Lobbying Disclosure Law "), 65 Pa.C.S. § 13A01 et seq., by the above -named Despondent. 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. Effective January 1, 2017, the Pennsylvania Department of State increased the thresholds under 65 Pa.C.S. § 13A06 for registration under 65 Pa.C.S. § 13A04 and the threshold for reporting under 65 Pa.C.S. § 13A05(d) from $2,500.00 to $3,000.00. In 2018 the Lobbying Disclosure Law was amended by Act 2 of 2018, some of which amendments took effect on February 14, 2018, and others of which took effect on April 15, 2018. Based upon the terms of the Consent Agreement, references in this adjudication and Order to Section 13A09(c)(1) of the Lobbying Disclosure Law (authorizing the imposition of an administrative penalty for negligent failure to register or report) are to the provision in effect following the enactment of Act 2 of 2018. References in this adjudication and Order to other provisions of the Lobbying Disclosure Law pertaining to registration are to those that were in effect rior to the enactment of Act 2 of 2018, and references in this adjudication and Order to other provisions of the Lobbying Disclosure Law pertaining to reporting are to those in effect following the enactment of Act 2 of 2018. ALLEGATIONS: That Citizens to Protect Our Pennsylvania, ... in its capacity as a principal, violated Sections 13A04(a) and 13A04(b) of the Lobbying Disclosure Law, 65 Pa.C.S. § 13A01 et �se q., when it failed to register as a principal within ten days of acting in any capacity as a yist, lobbying firm, and/or a principal, and subsequently engaged in lobbying activities, including but not limited to, indirect communication regarding legislative action, namely, the passage of Senate Bill 936; and when it failed to file quarterly expense reports with the Pennsylvania Department of State within 30 days after the last day of the First Quarter 2018. Citizens to Protect our Penns Ivania, 18 -001 L age II. FINDINGS: On October 20, 2017, Pennsylvania State Senator Donald C. White introduced Pennsylvania Senate Bill 936 (also referred to herein as "SB 936 ") before the Pennsylvania Senate. a. Senate Bill 936 was [a]n Act amending the act of June 2, 1915 (P.L.736, No.338), known as the Workers` Compensation Act, in liability and compensation, further providing for prescription drugs and the treatment of work - related injuries; and, in procedure, further providing for peer review." b. In addition to Senator White, fifteen (15) other Members of the General Assembly cosponsored SB 936. 2. Senate Bill 936 was approved by the Pennsylvania Senate on October 25, 2017. a. Following passage in the Senate, SB 936 was approved by the Pennsylvania House of Representatives on April 16, 2018. 1. Senate Bill 936 was signed in the Senate on April 17, 2018. 2. Senate Bill 936 was signed in the House on April 17, 2018. b. Following passage in both the Senate and the House, SB 936 was presented to the Governor on April 18, 2018. Senate Bill 936 was vetoed by the Governor on April 27, 2018. 2. Senate Bill 936 was laid on the table May 21, 2018. 3. On January 16, 2018, Articles of Incorporation were filed with the Pennsylvania Department of State ( "Department of State ") for Citizens to Protect Our Pennsylvania. a. The registered address for the entity was listed as 64 E. Uwchlan Avenue, #485, Exton, PA 19341. b. The entity type is identified as "Non- Profit (Non- Stock)." C. Citizens to Protect Our Pennsylvania was assigned entity number 6654100 by the Department of State. d. The incorporator is identified as R. W. Worthington, Jr., 2021 Arch Street, Philadelphia, PA 19103. e. No other interested parties are identified within the incorporating documents. 4. Citizens to Protect Our Pennsylvania was organized for the sole purpose of lobbying the Pennsylvania General Assembly against the passage of SB 936. a. Citizens to Protect Our Pennsylvania primarily engagged in lobbyying through indirect communication through mailings to citizenslconstituents. 5. In February 2018 postcards were mailed to residents in targeted areas of Pennsylvania from Citizens to Protect Our Pennsylvania. a. Amongst other words /phrases, the postcards were imprinted with the message "CALL STATE REP. [NAME] AT ([PHONE NUMBER]) &ASK HIM Citizens to Protect our Pennsylvania, 18 -001 L age TO OPPOSE SENATE BILL 936." b. Each mailer included the specific name and telephone number of the State Representative within whose district the mailer was sent. G. Each postcard maintained a return address of: Citizens to Protect our Pennsylvania 64 E. Uwchlan Avenue Exton, PA 19341 www.protectourpa.com 6. The Citizens to Protect Our Pennsylvania postcards were mailed utilizing Bulk Mail Permit Number 91, York, PA. a. Bulk Mail Permit No. 91, York, PA was issued by the Postmaster of York, Pennsylvania to Anstadt Printing Corporation on July 11, 2005. b. Anstadt Printing Corporation maintains an office and mailing address of: 3300 Farmtrail Road York, PA 17406 7. On January 31, 2018, Anstadt Communications issued invoice No. 72648 to Citizens to Protect Our Pennsylvania. a. Anstadt Communications, through Invoice No. 72648, sought payment of $24,916.00 in relation to the printing and mailing of 51,908 District Republican 6x11 Postcards — 11 Different. b. Payment was tendered via check No. 0991, drawn on First National Bank checking account no. [account number redacted]. 1. The date of the check is January 29, 2018, 2. The payment check does not identify by whom payment was made. 3. The check is signed by David M. Thomas. 8. On February 22, 2018, Anstadt Communications issued Invoice No. 73124 to Citizens to Protect Our Pennsylvania. a. Anstadt Communications, through Invoice No. 73124, sought payment of $6,650.00 in relation to the printing and mailing of 17,912 District Republican Postcards. b. Payment was tendered via check No. 995001, drawn on First National Bank checking account no. [account number redacted]. 1. The date of the check is March 2, 2018. 2. The payment check was issued from an account held by David M. Thomas. 3. The check was electronically signed by David M. Thomas. 9. On November 1, 2006, Act No. 134 -2006, the Pennsylvania Lobbying Disclosure Law, was signed into law. Citizens to Protect our Pennsylvania, 18 -001 L age a. Under the Lobbying Disclosure Law, 65 Pa.C.S. § 13A03, "lobbying" is defined as follows: "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. 65 Pa.C.S. § 13A03. 10. Section 13A04 of the Lobbying Disclosure Law requires a lobbyist, lobbying firm or a principal to register with the Department of State within ten days of acting in any capacity as a lobbyist, lobbying firm or principal. 65 Pa.C.S. § 13A04(a). a. Registration is biennial and began January 1, 2007. b. Exemptions] to registration exist under Section 13A06 of the Lobbying Disclosure Law, including the following: The following persons and activities shall be exempt from registration under section 13A04 (relating to registration) and reporting under section 13A05 ( relating to reporting): 1. An individual who limits lobbying to preparing testimony and testifying before a committee of the General Assembly or participating in an administrative proceeding of an agency. 3. An individual who does not receive economic consideration for lobbying. 4. An individual whose economic consideration for lobbying, from all principals represented, does not exceed $2,5001 in the aggregate during any reporting period. 5. An individual who engages in lobbying on behalf of the individual's employer if the lobbying represents less than 20 hours during any reporting period. 6. Except as required under section 13A05(d), a principal whose total expenses for lobbying purposes do not exceed $2,500 during any reporting period. E "Under the authority of Act 134 and regulations, the thresholds under 65 Pa.C.S. § 13A06 for registration under 65 Pa.C.S. § 13A04 and the threshold for reporting under 65 Pa.C.S. § 13A05(d) shall be increased from $2,500 to $3,000 effective January 1, 2017,' See the Pennsylvania Bulletin's website at http! / /www.pabuiletin.com/ secure /data/vol45/45- 22/1024. Citizens to Protect our Pennsylvania, 18 -001L age 65 Pa.C.S. § 13A06. 11. On April 30, 2018, Citizens to Protect Our Pennsylvania registered with the Department of State as a principal pursuant to the Pennsylvania lobbying Disclosure Law, 65 Pa.C.S. § 13A01 et seg. a. The registration of Citizens to Protect Our Pennsylvania, as filed /maintained by the Department of State, includes the following information /disclosures: Registration No: P51296 Registration Status: Completed Registration Name: Citizens to Protect Our Lobbying Commenced: 04/30/2018 Pennsylvania Acronym: BLANK Phone #: BLANK Fax#: LANK Authorize Representative's Authorized Representative's Nature of Business: Other Address: 65 E. Uwchlan Box 485 City: Exton Lobbyist(s): [NONE IDENTIFIED] Lobbying Firm(s): [NONE IDENTIFIED] Date Filed: 04/30/2018 Last Renewed: [BLANK] Email: info @protectourpa.com Name: John Hout Email: info @protectourpa.com Registration Period: 2017 -2018 Ave. State: PA Zip: 19341 The following affidavit accompanies Citizens to Protect Our Pennsylvania's registration: By signing my name below, I acknowledge that I have actual knowledge of the contents of this form except to the extent noted on the "Lobbyist or Lobbying Firm Statement of Limited Knowledge," if any,. and that I have received, read and understand the requirements of Act 134 of 2006 relating to lobbying disclosure. I also consent to receive service of notices, other official mailings or process at the address, email or facsimile listed on this form. To the best of my knowledge at all times relevant to the above reportin enod, I have been in compliance with 65 Pa.C.S § 1307 -A(d13 trelating to conflicts of interest). I affirm that the information set forth above and in all attachments is true, correct and complete to the best of my knowledgge, information and belief, and that affirmation is being made sub'ect to 18 Pa.C.S. § 4904(unsworn falsification to authorities. First Name: Scott Last Name: Caulfield MI: A. Title: Special Counsel, Public Affairs Compliance & Ethics Business name of Pre parer: Capital Pr rncip es, LLC Phone Number: B LANK] Email Address: Sc ott a ita nnc� es.com Citizens to Protect our Penns Ivania, 18 -001 L age Date: 105/02/201 12. In submitting its lobbying registration, Citizens to Protect Our Pennsylvania identified that it initiated lobbying activities on /about April 30, 2018. a. Section 13A04 of the Lobbying Disclosure Law requires a lobbyist, lobbying firm or a principal to register with the Department of State within ten days of acting in any capacity as a lobbyist, lobbying firm or principal. 65 Pa.C.S. § 13A04(a). 13. Citizens to Protect Our Pennsylvania did not register with the Department of State as a principal until April 30, 2018. a. Citizens to Protect Our Pennsylvania failed to register within ten (10) days of engaging in lobbying, as required by the Lobbying Disclosure Law. 14. Citizens to Protect Our Pennsylvania engaged in indirect communication as of no later than January 31, 2018, through the mailing of 51,908 postcards. a. Citizens to Protect Our Pennsylvania engga ed in additional indirect communication as of no later than February 22, 2018, through the mailing of 17,912 postcards. 15. Citizens to Protect Our Pennsylvania incurred lobbying expenses exceeding the threshold of $3,000.00, on or by January 31, 2018. 16. Citizens to Protect Our Pennsylvania's registration was delinquent by no less than 90 days (January 31, 2018 —April 30, 2018).2 THE FOLLOWING FINDINGS RELATE TO CITIZENS TO PROTECT OUR PENNSYLVANIA'S FAILURE TO FILE A FIRST (157) QUARTER 2018 LOBBYING EXPENSE REPORT. 17. Section 13A05 of the Lobbing 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 pprinci al shall, subject to the penalties under 18 Pa.0 %. § 4904 (relating to unsworn falsification to authorities), file quarterly expense reports with the department electronically using the computerized filing system developed by the department that is consistent with the purpose of this chapter 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 2 The parties have stipulated to the period of delinquency. Citizens to Protect our Pennsylvania, 18 -001 L age 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 rovided to State officials or employees or heir 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). 18. 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). 19. As a registered principal, Respondent is required to electronically file with the Department of State either a quarterly expense report or a statement of failure to meet the re ortingg threshold for each quarter it has been registered as a principal, by no later than tFte 30th day after each quarterly reporting period has ended. 65 Pa.C.S. § 13A05(a), (d); 51 Pa. Code § 5 (d)j 20. 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 electronically using the computerized filing system developed by the department that is consistent with the purpose of this chapter when total expenses for lobbying exceed 1$3,000] for a registered principal in a reporting period. n a reporting period [n which total expenses are [$3,OOO1or less, a statement to that effect shall be filed electronically using the computerized filing system Citizens to Protect our Pennsylvania, 18 -001 L age developed b the department that is consistent with the purpose of this chapter. 65 Pa.C.S. § 13A05(d). 21. As required by the Lobbying Disclosure Law, Citizens to Protect Our Pennsylvania filed [a Second Quarter 2018] expense report with the Department of State as set forth below: egistration Registration Period Submitted ota Cost Name Number Date Citizens to P51296 Apr- une 07 30 20 8 0 Protect Our 2018 Pennsylvania.._ 22. (As a registered principal, Respondent is required to electronically file with the epartment of State 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 301h day after each quarterly reporting period has ended. 65 Pa.C.S. § 13A05(a), (d), 51 Pa. Code § 55.1(d)]. Citizens to Protect Our Pennsylvania [submitted] a quarterly expense report for the Second (2nd) Quarter of 2018 on July [30], 2018. Citizens to Protect Our Pennsylvania did not file a First (1st) Quarter 2018 Expense Report by April 30, 2018, even though it incurred expenses in excess of $31,566.00 during the First (1st) Quarter of 2018. 23. [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 [$3,000 in a quarterly reporting period. The threshold of [$3,000] includes any economic consideration paid by a principal to a lobbying firm or lobbyist for lobbyin . Individuals exempt under section 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 lobb ing on the principal's behalf, together, are [$3,000 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. Citizens to Protect our Penns lvania, 18 -001 L age (g) A quarterly expense report of a principal reqquired 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 d faith effort to allocate expenses required to be reported under this subsection to one of the three categories listed herein. A ggiven expense may not be included in more ti�an one category... 51 Pa. Code § 55.1(a), (b), (d), (g)(3)(i) -(ii). 24. Citizens to Protect Our Pennsylvania engaged in an effort to influence legislative action, namely the defeat of SB 936, through indirect communication of Members of the Pennsylvania General Assembly. a. At the time Citizens to Protect Our Pennsylvania engaged in lobbying as described above, it did not register with the Department of State as a principal, lobbyist, and/or lobbying firm within ten (10) days of acting in any capacity as a principal, lobbyist, and /or lobbying firm. 1. Citizens to Protect Our Pennsylvania expended at least $31,566.00 in indirect communication in an effort to influence legislative action or administrative action in this Commonwealth, namely, the defeat of SB 936. 2. Citizens to Protect Our Pennsylvania, as a principal, incurred expenses for lobbying purposes exceeding [$3,000.00] during the First (1$t) Quarter of 2018. b. [There is] clear and convincing evidence that Citizens to Protect Our Pennsylvania exceeded the reporting thresholds and/or was otherwise not exempt from registration pursuant to Section 13A06. Citizens to Protect our Penns Ivania, 18 -001 L age III. DISCUSSION: The allegations are that Citizens to Protect Our Pennsylvania, in its capacity as a principal, violated Sections 13A04 a) and 13A04(b) of the Lobbying Disclosure Law, 65 Pa.C.S. §§ 13A04(a), 13A04(b): (1) when it failed to register as a principal within ten days of acting in any capacity as a lobbyist, lobbying firm, and/or a principal, and subsequently engaged in lobbying activities, including but not limited to, indirect communication regarding legislative action, namely, the passage of Senate Bill 936; and (2) when it failed to file quarterly expense reports with the Pennsylvania Department of State within 30 days after the last day of the first quarter of 2018. Sections 13A04(a) and 13A04(b) of the Lobbying Disclosure Law provide as follows: § 13Ap4. 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. (2) A lobbying firm shall include in its statement under paragraph (1) the following information for each principal it represents: (i) Name. (ii) Permanent business address. (iii) Telephone number. Citizens to Protect our Penns Ivania, 18 -001 L age (iv) Registration number when available. (3) A principal that is an association or organization shall include in its statement under paragraph (1) the number of dues - paying members of the association or organization in the most recently completed calendar year. 65 Pa.C.S. §§ 13A04 (a) -(b). The terms "lobbying," "direct communication," "indirect communication," and "principal" are defined in the Lobbying Disclosure Law as follows: § 13A03. Definitions. "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. "Direct communication." An effort, whetherwritten, oral orby 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. "Indirect communication." An effort, whether written, oral or by any other medium, to encourage others, including the general public, to take action, the purpose or foreseeable effect of which is to directly influence legislative action or administrative action. (1) The term includes letter- writing campaigns, mailings, telephone banks, print and electronic media advertising, billboards, publications and educational campaigns on public issues. (2) The term does not include regularly published periodic newsletters primarily designed for and distributed to members of a bona fide association or charitable or fraternal nonprofit corporation. (3) The term may include personnel expenses and office expenses. "Principal." An individual, association, corporation, partnership, business trust or other entity: (1) on whose behalf a lobbying firm or lobbyist engages in lobbying; or Citizens to Protect our Penns Ivania, 18 -001 L age (2) that engages in lobbying on the principal's own behalf. 65 Pa.C.S. § 13A03. 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. In January 2018 Respondent Citizens to Protect Our Pennsylvania was formed for the purpose of lobbying the Pennsylvania General Assembly against the passage of Pennsylvania Senate Bill 936 also referred to herein as "SB 936 "), involving proposed amendments to the Workers' Compensation Act. Citizens to Protect Our Pennsylvania primarily engaged in lobbying through indirect communication via mailings to citizens /constituents. Citizens to Protect Our Pennsylvania engaged in indirect communication opposing SB 936 as of no later than January 31, 2098, through the mailing of 51,908 postcards. Citizens to Protect Our Pennsylvania engaged in additional indirect communication opposing SB 936 as of no later than February 22, 2018, through the mailing of 17,912 postcards. The postcards were mailed to residents in targeted areas of Pennsylvania and were imprinted with the message "CALL STATE REP. (NAME] AT ([PHONE NUMBER]) & ASK HIM TO OPPOSE SENATE BILL 936." Each mailer included the specific name and telephone number of the State Representative within whose district the mailer was sent. These postcards were mailed utilizing a Bulk Mail Permit issued to Anstadt Printing Corporation of York, Pennsylvania. On January 31, 2018, Anstadt Communications issued an invoice to Citizens to Protect Our Pennsylvania seeking payment of $24,916.00 in relation to the printing and mailing of 51,908 postcards. On February 22, 2018, Anstadt Communications issued an invoice to Citizens to Protect Our Pennsylvania seeking payment of $6,650.00 in relation to the printing and mailing of 17,912 postcards. Citizens to Protect Our Pennsylvania expended at least $31,566.00 in indirect communication in an effort to influence legislative action or administrative action in this Commonwealth, namely, the defeat of SB 936. Section 13A04 of the Lobbying Disclosure Law requires a lobbyist, lobbying firm or a principal to register with the Department of State within ten days of acting in any capacity as a lobbyist, lobbying firm or principal, unless exempt under Section 13A06 of the Lobbying Disclosure Law. See, 65 Pa.C.S. §§ 13A04(a), 13A06. Citizens to Protect Our Pennsylvania incurred lobbying expenses exceeding the registration /reporting threshold of $3,000.00 on or by January 31, 2018. Although not exempt from the registration requirement, Citizens to Protect Our Pennsylvania did not register with the Department of State as a principal until April 30, 2018. Citizens to Protect Our Pennsylvania failed to register within ten (10) days of engaging in lobbying. The parties have stipulated that Citizens to Protect Our Pennsylvania's registration was delinquent by no less than 90 days. Additionally, Citizens to Protect Our Pennsylvania did not file a first quarter 2018 expense report by the filing deadline of April 30, 2018, even though it incurred expenses in excess of $31,566.00 during the first quarter of 2018. Pursuant to Section 13A09(c)(1) of the Lobbying Disclosure Law as amended by Act 2 of 2018, negligent failure to register or report as required by the Lobb ing Disclosure Law is punishable by a graduated administrative penalty as follows: (1 �or the first ten late das, $50.00 for each late day; (2) for each late day after the first ten late days through the 20 late day, $'100 for each late day; and (3) for each late day after the first 20 late days, $200 for each late day. 65 Pa.C.S. § 13A0 (c)(1). The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: Citizens to Protect our Pennsylvania, 18 -001 L age 3. The Investigative Division will recommend the following in relation to the above allegations: a. That a violation of 65 Pa.C.S. § 13A04(a) and 65 Pa.C.S. § 13A04(b) of the Lobbying Disclosure Law, 65 Pa.C.S. § 13A01 et sew., occurred when Citizens to Protect our Pennsylvania, engaged in lobbying activities in an effort to influence legislative action within the Commonwealth of Pennsylvania, at a time when it failed to register with the Pennsylvania Department of State as a Principal within ten (10) days of acting in any capacity as a Principal, Lobbyist, and/or Lobbying Firm, and was otherwise not exempt from registration. 4. Citizens to Protect our Pennsylvania's failure to register as a Principal pursuant to 65 Pa.C.S. § 13A04(a) and/or to comp) with 65 a.C.S. § 13A04(b), as outlined in paragraph 3(a-) above, [is] deemed to be negligent in nature. 5. Pursuant to the Consent Agreement, Citizens to Protect our Pennsylvania agrees to pay an administrative penalty, by way of certified check or money order, in the amount of $15,500.00 (10 days x $50.00 + 10 days x $100.00 + 70 days x $200) in settlement of this matter, payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission within thirt (30) days of the issuance of the final adjudication in this mat er. 6. To the extent Citizens to Protect our Pennsylvania has not already done so, Citizens to Protect our Pennsylvania hereby agrees to register as a Principal with the Pennsylvania Department of State and further agrees to timely file all Quarterly Expense Reports for the Quarter(s) that Citizens to Protect our Pennsylvania is/was/remains a Registered Principal with the Pennsylvania Department of State, in accord with the Pennsylvania Lobbying Disclosure Law (65 Pa.C.S. § 13A01 et sec..) and the Regulations of the Lobbying Disclosure Law (5TPa. Code. § 51.1 et seq.) 7. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter; and make no specific recommendations to any law enforcement or other authority to take action in this matter. Such, however, does not prohibit the Commission from initiating appropriate action, including issuance of civil penalty and/or initiation of investigatorryy proceedings, in the event Respondent is alleged to have an /or actually found in violation of the Pennsylvania Lobbying Disclosure Law (65 Pa.C.S. § 13A01 et seq.), otherwise not the subject of the instant proceeding. Consent Agreement, at 1 -2. In considering the Consent Agreement and Stipulation of Findings, we determine that the Consent Agreement of the parties sets forth a proper disposition for this case. Therefore, we hold as follows: Citizens to Protect our Penns Ivania, 18 -001 L age A violation of Sections 13A04(a) and 13A04(b) of the Lobbying Disclosure Law, 65 Pa.C.S. § 13A04(a) and 13A04(b), occurred when Citizens to ProteROur Pennsylvania engaged in lobbying activities in an effort to influence legislative action within the Commonwealth of Pennsylvania at a time when it failed to register with the Department of State as a principal within ten (10) days of acting in any capacity as a principal, lobbyist, and/or lobbying firm and was otherwise not exempt from registration. 2. Citizens to Protect Our Pennsyylvania's failure to register as a principal pursuant to 65 Pa.C.S. § 13A04(a) and/or to comply with 65 Pa.C.S. § 13A04(b), as outlined in paragraph 1 above, is deemed to be negligent in nature. As for the allegation regarding Respondent's failure to file a quarterly expense report with the Department of State within 30 days after the last day of the first quarter of 2018, it would appear that the Investigative Division in the exercise of its prosecutorial discretion has elected to non pros that particular allegation. For Respondent's failure to timely register, the parties agree to the imposition of an administrative penalty pursuant to Section 13A09(c)(1) of the Lobbying Disclosure Law as amended by Act 2 of 2018. Per the Consent Agreement of the parties, Citizens to Protect Our Pennsylvania is directed to ay an administrative penalty, by way of certified check or money order, in the amount of $15,500.00 (10 days x $50.00 + 10 days x $100.00 + 70 days x $200), payable to the Commonwealth of Pennsylvania and forwarded to this Commission by no later than the thirtieth (30th) day after the mailing date of this adjudication and Order. Finally, to the extent Citizens to Protect Our Pennsylvania has not already done so, Citizens to Protect Our Penns Ivania is directed to register as a principal with the Department of State and to timery file all quarterly expense reports for the quarter(s) that Citizens to Protect Our Pennsylvania is /was /remains a registered principal, as required by the Lobbying Disclosure Law, 65 Pa.C.S. § 13A01 et sew , and the Regulations promulgated pursuant to the Lobbying Disclosure Law, 5T Pa. Code § 51.1 et sett . Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: Citizens to Protect Our Pennsylvania violated Sections 13A04(a) and 13A04 (b) of Pennsylvania's lobbying disclosure law ( "Lobbying Disclosure Law "), 65 Pa.C.S. §§ 13A04 (a) and 13A04(b), when Citizens to Protect Our Pennsylvania engaged in lobbying activities in an effort to influence legislative action within the Commonwealth of Pennsylvania at a time when it failed to register with the Pennsylvania Department of State as a principal within ten (10) days of acting in any capacity as a principal, lobbyist, and /or lobbying firm and was otherwise not exempt from registration. Citizens to Protect Our Pennsylvania's failure to register as a principal pursuant to 65 Pa.C.S. 13A04(a) and/or to comply with 65 Pa.C.S. § 13A04(b), as outlined in paragraph I above, is deemed to be negligent in nature. In Re: Citizens to Protect our Pennsylvania,: File Docket: 18 -001 L Respondent Date Decided: 10/23/18 Date Mailed: 1115118 ORDER NO. 6 -L Citizens to Protect Our Pennsylvania violated Sections 13A04(a) and 13A04(b) of Pennsylvania's lobbying isclosure law ( "Lobbying Disclosure Law "), 65 Pa.C.S. §§ 13A04(a) and 13A04(b), when Citizens to Protect Our Pennsylvania engaged in lobbying activities in an effort to influence legislative action within the Commonwealth of Pennsylvania at a time when it failed to register with the Pennsylvania Department of State ( "Department of State ") as a principal within ten (10) days of acting in any capacity as a principal, lobbyist, and/or lobbying firm and was otherwise not exempt from registration. Citizens to Protect Our Pennsylvania's failure to register as a principal pursuant to 65 Pa.C.S. § 13A04(a) and /or to comply with 65 Pa.C.S. § 13A04(b), as outlined in paragraph I" above, is deemed to be negligent in nature. Per the Consent Agreement of the parties, Citizens to Protect Our Pennsylvania is directed to pay an administrative penalty, by way of certified check or money order, in the amount of $15,500.00 (10 days x $50.00 + 10 days x $100.00 + 70 days x $200), payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30th) day after the mailing date of this Order. To the extent Citizens to Protect Our Pennsylvania has not already done so, Citizens to Protect Our Pennsylvania is directed to register as a principal with the Department of State and to timely file all quarterly expense reports forthe quarter(s) that Citizens to Protect Our Pennsylvania is /was /remains a registered principal, as required by the Lobbying Disclosure Law, 65 Pa.C.S. § 13A01 et se ., and the Regulations promulgated pursuant to the Lobbying Disclosure Law, 5a. Code § 51.1 et seq. Compliance with paragraphs 3 and 4 of this Order will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. BY THE COMMISSION, • as A. Colafella, Chair Commissioner Shelley Y. Simms did not participate in this matter.