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HomeMy WebLinkAbout5-L PA Works NowPHONE: 717 -783 -1610 TOLL FREE: 1 -800- 932 -0936 In Re: PA Works Now, Respondent iA STATE ETHICS COMMISSION FINANCE BUILDING 613 NORTH STREET, ROOM 309 HARRISBURG, PA 17120 -0400 File Docket: X -ref: Date Decided Date Mailed: FACSIMILE: 717 -787 -0806 WEBSITE: www.ethimnaa.gov 17 -001 L Order No. 5 -L 10/23/18 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 sue., by the above -named Respondent. 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 2098, some of which amendments took effect on February 14, 2018, and others of which took effect on April 15, 2018. References in this adjudication and Order to provisions of the Lobbying Disclosure Law are to those that were in effect prior to the enactment of Act 2 of 2018. ALLEGATION: That PA Works Now ( "PAWN "), ... in its capacity as a principal/lobbyist/lobbying firm, violated Sections 13A04(a) and 13A04(b) of the Lobbying Disclosure Law, 65 Pa.C.S. § 13A01, et se q., when it engaged in lobbying activities in an effort to influence legislative action with`in the Commonwealth of Pennsylvania, at a time when it failed to register with the Pennsylvania 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 and was otherwise not exempt from registration. II. FINDINGS: 1. On February 13, 2017, Pennsylvania State Representative Ryan Mackenzie introduced Pennsylvania House Bill 18 ( "H13 18 ") before the Pennsylvania House of Representatives. a. The purpose of HB 18 was to "amend the Act of June 2, 1915 entitled an Act defining the liability of an employer to pay damages for injuries received by an employee in the course of employment." PA Works NOW, 17 -001 L Page b. In addition to Representative Mackenzie, eight (8) other Members of the General Assembly co- sponsored HB 18. C. HB 18 was referred to the Labor and Industry Committee on February 13, 2017. 2. A hearing concerning HB 18 was held on February 15, 2017, before the Pennsylvania House of Representatives, Labor and Industry Committee. a. The House Labor & Industry Committee was chaired by Representative Rob W. Kauffman, with Representative John T Galloway serving as the Democratic Chair. b. The Committee was comprised of fifteen Majority Members and nine Minority Members. C. Membership was as follows: Maiority Members: Stephen Bloom, Jim Cox, Sheryl M. Delozier, Cris Dush, Mark M. Gillen, Seth M. Grove, Fred Keller, Kate A. Klunk, Ryan E. Mackenzie, David M. Maloney, Sr., John D. McGinnis, Steven C. Mentzer, Eric R. Nelson, Jack Rader, Jr. and Jesse Topper. Minority Members: Morgan Cephas, Daniel J. Deasy, Maria P. Donatucci, Leanne Krueger - Braneky, Dan L. Miller, Gerald J. Mullery, Brandon P. Neuman, Adam Ravenstahl and Pam Snyder. 3. Following the introduction of HB 18, an entity identified as PA Works Now ( "PAWN ") was formed /created. a. The scope /purpose of PAWN was identified as follows: "Pa. Works Now advocates for common sense reform to Pennsylvania's Workers Comp system, with the goal of ensuring that people who are injured on the job get healthy and return to work. Learn more at www. Pa orksNow.com." 4. PAWN maintained both a webpage and Twitter account. a. The web address for PAWN was https: / /www.PaWorksNow.com. 1. PAWN's webpage was activated by at least May 22, 2017. 2. PAWN's webpage was rendered inactive and/or otherwise decommissioned on or about April 27, 2018. b. The Twitter location for PAWN was @PaWorksNow. PAWN's Twitter was active from at least May 2, 2017. 2. PAWN's Twitter was rendered inactive and/or otherwise decommissioned on or about April 27, 2018. PA Works Now, 17 -001 L age 5. Neither the PAWN website nor the PAWN Twitter page contained any information identifying: ownership, contact information, physical address, mailing address, telephone number, etc. of the person /persons responsible for managing its content. a. No other information was contained within PAWN's webpage or Twitter account identifying ownership /sponsorship of PAWN. 1. The PAWN webpage did contain an email link for purposes of contacting PAWN. 6. PAWN's Twitter page (Twitter@ PaWorksN ow) included 103 tweets from May 2, 2017, through December 8, 2017. a. Fifty -nine (59) tweets posted between May 2, 2017, and June 27, 2017, included the hashtag " #StopHB18." b. Also included within the PAWN Twitter page were numerous tweets with the hashtag " #StopSB936." C. Pennsylvania Senate Bill 936 was similar in nature to HB 18, in that both contained a prescription drug formulary for workers' compensation recipients. 7. A review of PAWN tweets identified no less than 22 individual tweets, which encouraged others, namely the general public, to take action, the purpose or foreseeable effect of which was to directly influence legislative action against the passage of HB 18. a. The tweets directed readers to contact their respective State Representative and/or to sign a petition(s) in opposition to HB 18. b. Tweets also directed readers to contact Representative Ryan Mackenzie directly, to voice opposition to HB 18. 1. Representative Mackenzie was the prime sponsor of HB 18. C. The Tweets were a form of indirect communication which encouraged the general public to take action to defeat HB 18. d. Pennsylvania's Lobbying Disclosure Law defines "indirect communication" as: 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. 65 Pa.C.S. § 13A03. 8. In addition to the 22 tweets noted above, two (2) tweets constituted indirect communication (as that term is defined by 65 Pa.C.S. § 13A03) by encouraging others, namely the general public, to take action, the purpose or foreseeable effect of which was to directly influence legislative action against the passage of SB 936. PA Works Now, 17 -001 L Page a. These specific tweets were posted on the PAWN Twitter page on November 15, 2017, and November 29, 2017. b. An additional ten tweets posted between November 14, 2017, and December 8, 2017, included the hashtag VStopHB936." 9. The following charts detail PAWN tweets specific to FIB 18 and/or SB 936, including those containing indirect communication: Tweets regarding HB 18: Rafe Contetf of fwaet 05/05/17 Teli our state lawmaker to vote No on House Bill 18 #Sto HB18 ets protect #Injur e dWorkers. Tell your representative to #StopHB 8 05/08/17 today! ow o you stop ----bad bills from hurting inure wor ers. Make sure 05/16/17 your voice is heard #Sto HB18 Tell ep ac enzie to stop putting insurance profits a ore 05/17/17 # injuredworkers rights. #Sto HB18 .CcDRep1V1arKen71e has proposed legi-sl-ation that could revent #inmuredwor ers from accessing critical health care. Tell him to 05/17/17 #Stop H B 18 ." Tell ep ac enzie it's the Worker's ompensation ct, not the 05/17/17 Insurance Profit Act. House Bill 18 would destroy #inJJuredworkers rights to fair medical 05/17/17 treatment. Tell Re Mackenzie to #Sto HB18. paworksnow.com Replying to ep ac enzie This bill masquera es as an attempt to address opioid abuse, but instead denies medical attention to 05/18/17 # injuredworkers. Rep yang to ep ac enzie HB 18 allo ws insurance companies to profif at the expense of #injuredworkers pain, suffering and decreased 05/18/17 guality of life. House Bill 18 is bad for injured workers. Get the facts at 05/19/17 paworksnow.com. Tell Re Mackenzie to #Sto HB18. Tell ep ac enzie that we need REAL workers' comp. reform! 05/19/17 Paworksnow.com #Stop HB18 House Bill 18 is an attack on injured worker's rights. Tell your State 05/24/17 Rep. to #Sto HB18. Learn more at paworksnow.com Tell state lawmakers to vote No on House Bill 8. You can find your 05/30/17 Re 's contact info here: #Sto HB18 a ing all ennsy vania Physicians. ign this petition to show your 06/13/17 0 position to House Bill 18: #Sto HB18 5 Here's w y p ysicians are signing this petition to top you agree visit it. y /2solb5x to add your name! Sign the Petition 06/13/17 Penns lvania Physicians Defeat House Bill 18 than e.or 12/5J is i in no way will e of any ene it. It will prevent proper care for an injured worker." bit. ly /2solb5x #StopHB18 Sign the Petition 06/13/17 Pennsylvania Ph sicians Defeat House Bill 18 chap e.or 5] ysicians s ou choose the treatment which is best or a ppatient." bit.ly /2solb5x #StgHB18 Sign the Petition Pennsylvania 06/13/17 Ph sicians: Defeat House Bill 18 chap e.or PA Works Now, 17 -001 L age Tweets regarding SIB 936: Date 415] "Insurance companies don't [care] how long they make you wait or medicine when you are in pain' bit.ly /2solb5x #Sto HB18 Sign the 06/13/17 Petition Pennsylvania Physicians: Defeat House Bill 18 chan e.or [5/5] want to give my patients the best care can an one size does 11/29/37 not it all!" bit.ly /2solb5x #StopHB18 Sign the Petition Pennsylvania 06113117 Physicians: Defeat House Bill 18 chan e.or e need to stand up & protect the rights ot our patients against un air laws." Sign the petition to #StopHB18 Sign the Petition Pennsylvania 06/13/17 Physicians: Defeat House Bill 18 chan e.or "Doctors need to be trusted - t ey nowtheir patients better than a politician." Sign the petition to #StopHB18: Sign the Petition 06/13/17 Penns Ivania Physicians: Defeat House Bill 18 chan e.or Doctors should etermine the care nee e yy injure wor ers, not insurance companies." Take action to #StopHB18: Sign the Petition 06/13/17 Pennsylvania Physicians: Defeat House Bill 18 chan e.or Tweets regarding SIB 936: Date Posting Call your Legislators! Tell them to top B936. Learn more at 11/15/17 paworksnow.com Have you ca ed your state lawmakers yet. Tell them to oppose 11/29/37 SB9361 Paworksnow.com #Sto SB936 10. Specific Tweets, detailed below, directed and enabled followers to forward a pre - populated /computer generated email to their State representative(s): June 12, 2017 To speak out against HB -18 and its draconian and regressive reforms, reach out to your state representative and urge them to vote against the bill. Click here to find your representative's contact information. You can also speak out by clicking here to sign the petition against HB -18, and follow PA Works Now on Twitter to stay abreast of news concerning the workers of Pennsylvania. May 22, 2017 Join the fight against HB -18 today: We are asking you to join us and take action now to prevent HB -18 from ever becoming law. • Reach out to your elected Representative and urge him/her that the voters of Pennsylvania DO NOT want regressive legislation that would infringe on the rights of injured workers. Click here to use our email template. It takes two minutes and will go miles in helping protect the rights of Pennsylvania workers. • Sign our petition on MoveOn.org: httpJ /bit.ly /StopHB18. • Follow PA Works Now on Twitter to stay updated on the latest news impacting Pennsylvania's workers. PA Works Now, 17 -001 L Page • Share this information and action items with friends and family to spread the word and triple your impact. 11. Between May 3, 2017, and May 26, 2017, approximately 88 emails were directed to Representative Mackenzie regarding HB 18. a. The emails were consistent in their content and urged the Representative to rescind his sponsorship of HB 18. b. Excerpts of the email(s) are as follows: Representative Mackenzie, As a constituent of yours, I am urging you to rescind your sponsored legislation, proposed House Bill 18, from being voted on in the Pennsylvania House of Representatives. This bill would allow insurance companies to control the medical care of injured workers by mandating a specific drug formulary that severely limits the prescribing of necessary medications, preventing workers from receiving treatments they need to get better. House Bill 18 only masquerades as an attempt to reduce opioid usage, and would ultimately allow insurance companies to profit at the expense of the injured workers pain, suffering, and decreased quality of life. C. The content of the email(s) was generated by PAWN and was forwarded by individuals through a link on PAWN's website. 12. On June 21, 2017, HB 18 was re- referred to the House Rules Committee with no action since, essentially being rendered inactive. 13. The Investigative Division of the State Ethics Commission received a signed, sworn complaint alleging that PAWN violated provisions of the Lobbying Disclosure Law, 65 Pa.C.S. § 13A01, et seg., when it 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, lobbyist, and/or lobbying firm within ten (10) days of acting in any capacity s a principal, lobbyist, and/or lobbying firm and was otherwise not exempt from registration. a. Upon review of the complaint, the Investigative Division initiated a preliminary inquiry on November 20, 2017. b. Upon conclusion of the preliminary inquiry, the Commission, through the Executive Director, initiated a full investigation on January 19, 2018. 14. At the time the Investigative Division initiated a full investigation (January 19, 2018) PAWN was not registered with the Pennsylvania Department of State as a principal, lobbyist and /or lobbying firm, even though it had commenced lobbying activities, including indirect communications. 15. On November 1, 2006, Act No. 134 -2006, the Pennsylvania Lobbying Disclosure Law, was signed into law. a. Under the Lobbying Disclosure Law, 65 Pa.C.S. § 13A03, "lobbying" is defined as follows: "Lobbying." An effort to influence legislative action or PA Works Now, 17 -001 L Page 7 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 o a State official or employee for the purpose of advancing the interest of the lobbyist or principal. 65 Pa.C.S. § 13A03. 16. 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): 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. 65 Pa.C.S. § 13A06. 17. On May 24, 2018, PAWN registered with the Pennsylvania Department of State as a principal pursuant to the Pennsylvania Lobbying Disclosure Law, 65 Pa.C.S. § "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 re orting under 65 Pa.C.S. § 13A05(d) shall be increased from $2,50(1 to $3,000 effective January 1, 2017." See the Pennsylvania Bulletin's website at htt : / /www. abulletin.com/ secure /data/vo]45/45- 22/1024.�i. PA Works Now, 17 -001 L Page 13A01, et seq. a. The registration of PAWN, as filed /maintained by the Pennsylvania Department of State, includes the following information /disclosures: Registration No: P53326 Registration Status: Completed Registration Name: PA Works Now Lobbying Commenced: 05/01/2017 Acronym: [BLANK] Date Filed: 05/24/2018 Phone #: 215 -735 -6760 Ext. [BLANK] Last Renewed: [BLANK] Fax#: [BLANK] Email: [BLANK] Authorized Representative's Name: Adam Bonin Authorized Representative's Email: adam @boninlaw.com Nature of Business: Workers' Compensation Registration Period: 2017 -2018 Address: 1525 Locust Street 6th Floor City: Phila State: PA Zip: 19102 In addition to the foregoing, the following lobbyist/lobbying firm was identified as engaging in lobbying efforts on behalf of PAWN: Lobbyist(s): [NONE IDENTIFIED] Lobbying Firm(s): Name Registration Affiliated Start Affiliated End Bonin Numrberl Date Date eis er Media & IF-33893 5/1/2017 [ Issue Advocacy 26724 5 4 xt. 12:00:00 a.m. Email Address: C. The following affidavit accompanies PAWN'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 reporting period, I have been in compliance with 65 Pa.C.S. § 1307 -A1) relating to conflicts of interest). I affirm that the information set orth above and in all attachments is true, correct and complete to the best of my knowledge, information and belief, and that affirmation is being made subject to 18 Pa.C.S. § 4904(unsworn falsification to authorities). First Name: Adam Last Name; Bonin MI: BLANK Title: Pr ind a Business name of Preparer: The Law Office ot Adam- C. Bonin Phone Number: 26724 5 4 xt. Email Address: I a am onin aw.com Date: 1 05/2412018 PA Works Now, 17 -001 L Page 18. In submitting its lobbying registration, PAWN identified that it initiated lobbying activities on about May 1, 2017. 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). b. PAWN did not register with the Department of State as a principal until May 24, 2018. C. PAWN failed to register within ten (10) days of engaging in lobbying, as required by the Lobbying Disclosure Law. d. PAWN's registration was delinquent by no less than 388 days (May 1, 2017 — May 24, 2018). 19. As required by the Lobbying Disclosure Law, PAWN filed quarterly expense reports with the Pennsylvania Department of State as set forth below: Registration Name Registration Number Period Submitted Date Total Cost PA Works Now P53326 Jan - Mar 2018 06/15/2018 $6,050 PA Works Now P53326 Oct - Dec 2017 07/25/2018 $0 PA Works Now P53326 Jul - Sep 2017 07/25/2018 $23,500 PA Works Now P53326 Apr - Jun 2017 07/25/2018 $60,500 20. PAWN was required to file a Second (2nd) Quarter of 2017 expense report with the Department of State by July 31, 2017. a. PAWN did not file a Second (2nd) Quarter expense report until July 25, 2018. b. PAWN's Second 2nd) Quarter 2017 expense report was delinquent by 360 days (July 31, 20 7 — July 25, 2018). C. In filing its Second (211d) Quarter 2017 expense report, PAWN disclosed the following expenses: Total xpen itures or i s, ospita ity, Transportation and Lodging For State $0.00 Officials or Employees or Their Immediate Families Total Costs For Direct ommunEation $6,050 Total Costs For Indirect ommunication $54,450 Total Costs of o bying For The Period $60,500 PAWN expended $60,500.00 in direct and indirect communication in an effort to influence legislative action or administrative action in this Commonwealth, namely, the defeat of HB 18. 2. PAWN, as a principal, incurred expenses for lobbying purposes exceeding [$3,000] during the Second (2nd) Quarter of 2017. PA Works Now, 17 -001 L Page 3. PAWN was not exempt from registration as a principal with the Department of State when it incurred reportable expenses of $60,500.00 during the Second (2,1d) Quarter of 2017. 21. PAWN was required to file a Third (3rd) Quarter 2017 expense report with the Pennsylvania Department of State by October 30, 2017. a. PAWN did not file a Third (311J) Quarter expense report until July 25, 2018. b. PAWN's Third (3�d) Quarter 2017 expense report was delinquent by 269 days (October 30, 2017 — July 25, 2018). C. In filing its Third (3rd) Quarter 2017 expense report, PAWN disclosed the following expenses: ota xpen �tures or its, ospita ity, Transportation and Lodging For State $0.00 Officials or Employees or Their Immediate Families ota osts or erect ommunication $2,350 Total Costs For Indirect Communication $21,150 Total Costs of All Lobbying For The Period $23,bUU PAWN expended $23,500.00 in direct and indirect communication in an effort to influence legislative action or administrative action in this Commonwealth, namely, the defeat of HB 18. 2. PAWN, as a principal, incurred expenses for lobbying purposes exceeding [$3,000] during the Third (3111) Quarter of 2017. 3. PAWN was not exempt from registration as a rincipal with the Department of State when it incurred reportable expenses of $23,500.00 during the Third (3rd) Quarter of 2017. 22. PAWN did not file a Fourth (4th) Quarter 2017 expense report with the Department of State by January 30, 2018. a. PAWN did not file a Fourth (4th) Quarter expense report until July 25, 2018. b. PAWN's Fourth (4th) Quarter 2017 expense report was delinquent by 177 days (January 30, 2018 — July 25, 2018). C. PAWN disclosed no reportable expenses during the Fourth (4th) Quarter of 2017. 1. Once registered as a principal, in a reporting period in which total expenses are [$3,000] or less, [a statement]1 to that effect must be filed with the Department of State. See, 65 K.C.S. § 13A05(d). 23. PAWN did not file a First (1st) Quarter 2018 expense report with the Department of State by April 30, 2018. a. PAWN did not file a First (1$t) Quarter expense report until June 15, 2018. b. PAWN's First (1S) Quarter expense report was delinquent by 47 days (April PA Works Now, 17 -001 L Pa— 30, 2018 — June 15, 2018). C. PAWN disclosed no reportable expenses during the First (1st) Quarter of [2018]. 24. PAWN engaged in an effort to influence legislative action, namely the defeat of H 18 and S 96, through both direct or indirect communication of Members of the Pennsylvania General Assembly. a. At the time PAWN engaged in lobbying as described above, it did not register with the Pennsylvania 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. b. [There is] clear and convincing evidence that PAWN exceeded the reporting thresholds and/or was otherwise not exempt from registration pursuant to Section 13A06. Ill. DISCUSSION: The allegation is that PA Works Now ("PAWN "), in its capacity as a principal /lobbyistllobbying firm, violated Sections 13A04(a) and 13A04(b) of the Lobbying Disclosure Law, 65 Pa.C.S. §§ 13A04(a), 13A04(b), when it 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, lobbyist, andlor lobbying firm within ten (10) days of acting in any capacity as a principal, lobbyist, and /or lobbying firm and was otherwise not exempt from registration. Sections 13A04(a) and 13A04(b) of the Lobbying Disclosure Law provide as follows: § 13AO4. 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 rind g al. 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. PA Works Now, 17 -001 L Page (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 foreach principal it represents. (i) Name. (ii) Permanent business address. (iii) Telephone number. (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 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. "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. PA Works Now, 17 -001 L Page 13 (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 (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. During 2017, PAWN lobbied against Pennsylvania House Bill 18 ( "HB 18 ") and Pennsylvania Senate Bill 936 ( "SB 936 ") 1 both of which involved a prescription drug formulary for workers' compensation recipients. Although the parties have stipulated that PAWN was not exempt from the registration/reporting requirements of the Lobbying Disclosure Law during the relevant time period, PAWN did not register with the Department of State as a principal until May 24, 2018, more than a year after lobbying commenced. As detailed in the Stipulated Findings, PAWN used its website and Twitter account/page to engage in "indirect communication" as the Lobbying Disclosure Law defines that term. 65 Pa.C.S. § 13A03. Fifty -nine (59) tweets posted on PAWN's Twitter page between May 2, 2017, and June 27 2017 included the hashtag " #StopHB18." No less than 22 individual tweets encouraged others, namely the general public, to take action, the purpose or foreseeable effect of which was to directly influence legislative action against the passage of HB 18. The tweets directed readers to contact their respective State Representative and /or to sign a petition(s) in opposition to HB 18. Tweets also directed readers to contact Representative Ryan Mackenzie ( "Representative Mackenzie ") —the prime sponsor of HB 18— directly to voice opposition to HB 18. The Tweets were a form of "indirect communication," encouraging the general public to take action to defeat HB 18. Additional tweets posted on the PAWN Twitter page in or about November - December 2017 constituted indirect communication opposing the passage of SB 936. The charts at Fact Finding 9 detail PAWN tweets specific to HB 18 and /or SB 936, including those containing indirect communication. Specific Tweets detailed at Fact Findingg 10 directed and enabled followers to forward a pre - populated /computer generated email to their State representative(s) in opposition to HB 18, Between May 3, 2017, and May 26, 2017, approximately 88 emails were directed to Representative Mackenzie urging the Representative to rescind his sponsorship of HB 18. PA Works Now, 17-001 L Page The content of the email(s) was generated by PAWN and was forwarded by individuals through a link on PAWN's website. On June 21, 2017, HB 18 was re- referred to the House Rules Committee with no action since, essentially being rendered inactive. 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. PAWN did not register with the Department of State as a principal until May 24, 2018. PAWN's registration indicated that lobbying commenced more than a year earlier on May 1, 2017. PAWN's registration identified a specific lobbying firm as lobbying on its behalf with an affiliated start date of May 1, 2017. The parties have stipulated that PAWN's registration was delinquent by no less than 388 days. Having failed to timely register with the Department of State, PAWN also failed to timely file quarterly expense reports. For both the second and third quarters of 2017, PAWN incurred lobbying expenses in excess of the reporting threshold. The parties have stipulated that PAWN's second quarter 2017 expense report was delinquent by 360 days and disclosed total costs for lobbying of $60,500, consisting of $6,050 for direct communication and $54,450 for indirect communication. The parties have stipulated that PAWN's third quarter 2017 expense report was delinquent by 269 days and disclosed total costs for lobbying of $23,500, consisting of $2,350 for direct communication and $21,150 for indirect communication. PAWN was not exempt from the registration /reporting requirements of the Lobbying Disclosure Law when it incurred the aforesaid lobbying expenses for the second and third quarters of 2017. The parties have stipulated that PAWN's fourth quarter 2017 expense report and first quarter 2018 expense report were delinquent by 177 days and 47 clays respectively. PAWN disclosed no reportable expenses for the fourth quarter of 2017 and the first quarter of 2018. However, once registered as a principal, for a reporting period in which total expenses are $3,000 or less, a statement to that effect must be filed with the Department of State. See, 65 Pa.C.S. § 13A05(d); 51 Pa. Code § 55.1(d). 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 in relation to the above allegations: 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 se q., occurred when PA Works Now (PAWNT,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. PA Works Now, 17 -001 L Page 5 4. PAWN'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 3(a) above, [is] deemed to be negligent in nature. 5. Pursuant to the Consent Agreement, PAWN agrees to pay an administrative penalty, by way of certified check or money order, in the amount of $13,5180.00 (388 days x $35.00 per diem) in settlement of this matter, payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. To the extent PAWN has not already done so, PAWN 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 PAWN 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 se and the Regulations of the Lobbying Disclosure Law (5T-Pa. Code § 51.1 et seq. ) 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 investigatory proceedings, in the event Respondent is alleged to have and /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: 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 PAWN 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. PAWN'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. Per the Consent Agreement of the parties, PAWN is directed to pay an administrative penalty, by way of certified check or money order, in the amount of $13,580.00 (388 days x $35.00 per diem), payable to the Commonwealth of Pennsylvania PA Works Now, 17 -001 L age and forwarded to this Commission by no later than the thirtieth (30'x) day after the mailing date of this adjudication and Order. Finally, to the extent PAWN has not already done so, PAWN is directed to register as a principal with the Department of State and to timely file all quarterly expense reports for the quarter(s) that PAWN is /was /remains a registered principal, as required by the Lobbyin Disclosure Law, 65 Pa.C.S. § 13A01 et seq., and the Regulations promulgated pursuan?to the Lobbying Disclosure Law, 51 Pa. Code § 51.1 et seg. Compliance with the foreggoing 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: PA Works Now ( "PAWN ") 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 PAWN 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. 2. PAWN's failure to register as a principal pursuant to 65 Pa.C.S. § 13A04(a) and/or to comply with 65 P2cisS. § 13A04 (b), as outlined in paragraph 1 above, is deemed to be negligent in nature. In Re: PA Works Now, Respondent File Docket: 17 -001 L Date Decided: 10/23/18 Date Mailed: 1115118 ORDER CVO. 5WL 1. PA Works Now ( "PAWN ") 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 PAWN 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. 2. PAWN'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. 3. Per the Consent Agreement of the parties, PAWN is directed to pay an administrative penalty, by way of certified check or money order, in the amount of $13,580.00 (388 days x $35.00 per diem), 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. 4. To the extent PAWN has not already done so, PAWN is directed to register as a principal with the Department of State and to timely file all quarterly expense reports for the quarter s) that PAWN is /was /remains a registered principal, as required by the Lobbying Disclosure Law, 65 Pa.C.S. § 13A01 et se q., and the Regulations promulgated pursuant to the Lobbying Disclosure Law, 51 Pa. Code § 51.1 et seg. 5. Compliance with paragraphs 3 and 4 of this Order will result in the closing of this case with no further action by this Commission. a. Noncompliance will result in the institution of an order enforcement action. BY THE COMMISSION, 4 is o as o a e a, air Commissioner Shelley Y. Simms did not participate in this matter.