HomeMy WebLinkAbout156-SL, Allies for Children1-1-IONS: 717-783-1610 STXI`E ETHICS COMMISSION FACSIME: 717-787-.0806
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613 NORTl STREE I ROOM 309
HARRISBURG, PA 17120-0400
In Re: Allies for Children, File Docket: 22-007-1,
Respondent Order No. 156-Sl-,
Date Decided: 1/24/23
Date Mailed: 1/26/23
Before: Shelley Y. Simms, Chair
Michael A, Schwartz, Vice Chair
Rhonda I -Till Wilson
Paul E. Parsells
David L. Reddecliff
Robert P. Caruso
This is a final adjudication of the State Ethics Commission as to the alleged delinquency
and/or deficiency of expense report(s) required to be filed pursuant to Pennsylvania's lobbying
disclosure law, 65 Pa.C.S. § 13A0I et M., 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 Allies for Children (hereinafter also referred to as
"Respondent") a Notice of Alleged Noncompliance. A Stipulation of Parties and Request for
Order was, subsequently submitted by the parties to the Commission for consideration. The
Stipulated Findings are set forth as the Findings in this Order,
1. ALLEGED NONCOMPLIANCE:
That Respondent, in its capacity as a principal registered with the Department of State
pursuant to the Lobbying Disclosure Law (65 Pa.C.S. § 13AOI et sue.), failed to timely file
quarterly expense reports pursuant to 65 Pa.C.S. § 13A05 for the first (1") quarter of 2022.
11. FINDINGS:
Respondent is Allies for Children ("Respondent") and was a registered principal as that
term is defined by the Pennsylvania Lobbying Disclosure Law ("Lobbying Disclosure
Law") Act 134 of 2006, 65 Pa.C.S. § 13AOI et 9%
a. Respondent initially registered as a principal with the Department of State on June
30, 2015, for the registration period January 1, 2015, through December 31, 2016,,
b. Respondent's registration statement indicates that lobbying commenced on June
23, 20�15.
Allies for Children, 22-007-L
Page 2
2. Respondent filed a principal registration statement with the Pennsylvania Department of
State for the registration period January 1, 2021, through December 31, 2022.
a. By registering with the Department of State, Respondent consented to receive
service of notices, other official mailings, or process at the address listed on the
registration statement.
b. Respondent was assigned the principal registration number "P42945."
C. In filing its principal registration, Respondent identified its registered mailing
address as:
10 Children's Way
Suite 200
Pittsburgh, PA 15212
3. The Lobbying Disclosure Law, specifically 65 Pa.C.S. § 13A04, states the following
regarding the registration of an entity as a principal:
§ AA04. 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 electronically using the computerized filing
system developed by the department that is consistent with
the purposes of this chapter 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 rirms.--
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 of the business.
ii. Permanent address.
iii. Daytime telephone number.
iv. E-mail address of the authorized
representative employee or agent, if
available.
Allies for Children, 22-007-L
Page 3
V. 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.
ix. Name of the authorized representative,
employee or agent.
d. Amendments. —
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 electronically using the
computerized filing system developed by the
department that is consistent with the purpose of this
chapter 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 electronically using the computerized
filing system developed by the department that is
consistent with the purpose of this chapter within 14
days of the end of the year in which the change
occurs.
65 Pa.C.S. § 13A04(a), (b)(1), (d).
4. In addition to the Lobbying Disclosure Law, the duly promulgated Regulations provide
further information in relation to registration periods and reporting periods:
§ 51.3. Registration periods and reporting periods.
(a) Reporting under section 13A04 of the act (relating to
reporting) 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 year.
51 Pa. Code § 51.3(a).
Allies for Children, 22-007-L
Page 4
Section 13A05 of the Lobbying Disclosure Law additionally sets forth the threshold with
regard to reporting expenditures:
§ 13AQ5. Reporting.
(a) General Rule. --A registered principal shall, subject to the
penalties under 18 Pa.C.S. § 4904 (relating to unsworn
falsification to authorities), file quarterly expense report 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.
65 Pa.C.S. § DA05(a).
6. Section 13A05 of the Lobbying Disclosure Law additionally sets forth the threshold with
regard to reporting expenditures:
(d) Threshold for Reporting. --An expense report required
under this section shall be filed when total expenses for
lobbying exceed [$3,000] for a registered principal in a
reporting period. In a reporting period in which total
expenses are [$3000] or less, a statement to that effect shall
be filed.
65 Pa.C.S. § 13A05(d).
7. 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.
b. Registration under section 13A05 of the act (relating to
registration) 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 30' day after
the quarterly reporting period ends.
51 Pa. Code § 51.3(b).
The Regulations promulgated under the Lobbying Disclosure Law specifically provide the
following in relation to a delinquent filing:
§ 51.4 Delinquency
Allies for Children, 22-007-L
Page 5
(a) A registration statement or report required to be filed under section 13A04 or 13A05 of the
act (relating to registration; and reporting) is delinquent if not received by the Department
on the date due as follows:
(1) Hard copy filings must be received by 5 p.m. in the office. For quarterly expense
reports, from 5 p.m. until 12 a.m. midnight, a hard copy filing may be filed with the
Department's designee. The filing location and the Department's designee will be
on the Department's website.
i. Hard Copy filings are no longer allowed pursuant to Act 2018-2 (H.B.
1175), § 2, approved February 14, 2018, eff. April 11, 2018.
(2) Electronic filings may be filed until 12 a.m. midnight.
(b) A failure to timely 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).
9. 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 reporting
threshold for each quarter it has been registered as a principal, by no later than the 30"' day
after each quarterly reporting period has ended. 65 Pa.C.S. § 13A05(a), (d); 51 Pa. Code
§ 55.1(d).
a. Respondent did not file a first (1") quarter 2022 expense report by May 2, 2022;
April 30, 2022 was a Saturday, making Monday, May 2, 2022, the last day on which
to file.
b. Respondent has remedied the failure by filing its expense report for the first (1")
quarter 2022 on August 25, 2022.
10. By Warning Notice letter dated May 27, 2022, Respondent was served with notice' in
accordance with Section 13A09 of the Lobbying Disclosure Law and Section 63.4(1) of
the Lobbying Disclosure Regulations of the specific allegations: that Respondent failed to
file quarterly expense reports for the first (1") quarter 2022 with the Department of State.
a. Said Warning Notice was mailed to:
' Respondent was also emailed by the Investigative Division on June 21, 2022 at the email assigned to their
Registration notifying them that they were facing enforcement for their failure to file their i51 quarter 2022 expense
report. No response was received.
Allies for Children, 22-007-L
Page 6
Mara Kelosky
Allies for Children
10 Children's Way
Suite 200
Pittsburgh, PA 15212
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 services of notices, other official mailings or process, at the address listed
on the registration statement.
11. Said Warning Notice letter set forth the nature of the alleged noncompliance and the
administrative and criminal penalties for failing to file.
12. Said Warning Notice letter provided Respondent an opportunity to 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 first (I") quarter of
2022 with the Department of State within thirty (30) days from the mailing date of the
Warning Notice letter.
13. The Lobbying Disclosure Law provides for civil penalties for failing to comply with the
registration statement filing and quarterly expense reporting requirements thereof. In
pertinent part, the Lobbying Disclosure Law provides that:
a. Negligent failure to register or report as required by this chapter is
punishable by an administrative penalty not exceeding the
following:
(i) For the first ten late days, $50 for each late day.
(ii) For each late day after the first ten late days through the 20«'
late day, $100 for each late day.
(iii) For each late day after the first 20 late days, $200 for each
late day.
65 Pa.C.S. § 13A09(c)(1).
14. Respondent's expense report was a total of at least one hundred (100) days delinquent.
a. The first quarter expense report period closed Saturday, April 30, 2022, See, 65 Pa.C.S.
§ 13A03 Definitions — "Reporting period."
b. Expense reports were to be filed within thirty (30) days of March 31, 2022, that date
being Saturday, April 30, 2022, making Monday, May 2, 2022, the last day on which
Allies for Children, 22-007-L
Page 7
to file.
c. The first day in which Respondent's first quarter (1") quarter 2022 expense report was
delinquent was May 3, 2022.
15. Respondent has presented mitigation in this matter:
a. The delay in filing was due to personnel changes;
1. The previously identified authorized representative was no longer with the
organization when the Warning Notice was mailed to her attention.
2. Respondent is a small 501(c)(3) organization.
b. Immediately upon receipt of the Notice of Alleged Noncompliance, Respondent's new
Executive Director contacted the Investigative Division and made attempts to remedy
the situation.
c. Respondent has properly filed all outstanding expense reports.
d. The Executive Director first became aware of the issue on August 25, 2022, and filed
the expense report at once, on August 25, 2022.
e. No lobbying activities had taken place during the time period that Respondent was
delayed on their filing.
f. Respondent has agreed to put in place policies and procedures to prevent any future
missed filings.
III. DISCUSSION:
In the instant matter, the alleged noncompliance is that Respondent, as a principal
registered with the Pennsylvania Department of State ("Department of State") pursuant to the
Lobbying Disclosure Law, failed to timely file a quarterly expense report pursuant to 65 Pa.C.S. §
13A05 for the first quarter of 2022.
As noted above, the parties have submitted a Stipulation of Parties and Request for Order.
The parties' Stipulated Findings are set forth above as the Findings of this Commission. We shall
now summarize the relevant facts as contained therein.
Respondent initially registered as a principal with the Department of State on June 30,
2015, for the registration period January 1, 2015, through December 31, 2016. Respondent's
registration statement indicated that lobbying commenced on June 23, 2015. Respondent was
Allies for Children, 22-007-L
Page 8
assigned the principal registration number "P42945."
Per the Department of State's website, on January 20, 2021, Respondent renewed its
registration as a principal with the Department of State for registration period January 1, 2021,
through December 31, 2022.
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 fled
on a quarterly basis. When a registered principal's total expenses for lobbying exceed $3,000 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 $3,000 or less, a statement to that effect must be filed with the
Department of State by the principal by checking the appropriate block on the quarterly expense
report form. 51 Pa. Code § 55.1(b). 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 January 20, 2021, for the registration period January 1, 2021, through
December 31, 2022, Respondent was required to file either a quarterly expense report or a
statement of failure to meet the reporting threshold for the first quarter of 2022. Respondent failed
to file either.
Failure to timely meet the aforesaid filing requirement 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 May 27, 2022, Respondent was served with notice of the
alleged noncompliance in accordance with Section 63.4(1) of the Lobbying Disclosure
Regulations, 51 Pa. Code § 63.4(1). The Warning Notice letter provided Respondent an
opportunity to cure the alleged noncompliance and avoid the institution of these proceedings by
filing a quarterly expense report for the first quarter of 2022 with the Department of State within
thirty (30) days of the mailing date of the Warning Notice letter.
Per the Department of State's website, on August 25, 2022, Respondent submitted a
quarterly expense report for the first quarter of 2022. Respondent's expense report was a total of
115 days delinquent, May 2, 2022 — August 25, 2022.
Negligent failure to register or report as required by the Lobbying Disclosure Law is
punishable by an administrative penalty as follows: (1) for the first ten late days, $50.00 for each
late day; (2) for each late day after the first ten late days through the 20`h 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. §
13A09(c)(1).
Allies for Children, 22-007-L
Page 9
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.
In considering the Stipulation of Parties and Request for Order, we agree with the parties
that Respondent as a registered principal failed to timely file quarterly expense reports with the
Department of State for the first quarter of 2022 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.
This Commission hereby declines to levy an administrative penalty against Respondent
Allies for Children. In declining to do so, the Commission has taken into consideration, the number
of days the filing was delinquent, the change of personnel at Respondent's office, and the
immediate action to rectify this issue once Respondent's Executive Director was made aware of
the delinquent filing.
In addition, this Commission notes that no lobbying activities took place during the
delinquent filing period and that Respondent has taken the affirmative step of implementing new
policies to ensure that delinquent filings do not occur again in the future. These extraordinary
mitigating factors lead the Commission to conclude that this was an anomaly in Respondent's
otherwise unblemished lobbying practices and one that does not present any future risk of harm to
the public.
IV. CONCLUSIONS Or LAW:
As a principal registered with the Pennsylvania Department of State ("Department of
State") under principal registration number "P42945," Allies for Children has been subject
to the reporting requirements of Section 13A05 of Pennsylvania's Lobbying Disclosure
Law ("Lobbying Disclosure Law"), 65 Pa.C.S. § 13A05.
2. Allies for Children, in its capacity as a principal registered with the Department of State
under principal registration number "P42945," failed to timely file quarterly expense
reports with the Department of State for the first quarter of 2022 as required by Section
13A05 of the Lobbying Disclosure Law, 65 Pa.C.S. § 13A05.
The transgressions of the Lobbying Disclosure Law outlined in paragraph 2 immediately
above are 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.
Based upon the totality of the circumstances in this case, including the mitigating factors
outlined above, the imposition of a civil penalty is not warranted in this matter.
In Re: Allies for Children, File Docket: 22-007-L
Respondent Date Decided: 1/24/23
Date Mailed: 1/26/23
ORDER NO.156-SL
1. Allies for Children, in its capacity as a principal registered with the Pennsylvania
Department of State ("Department of State") under principal registration number
"P42945," failed to timely file quarterly expense reports with the Department of State for
the first quarter of 2022 as required by Section 13A05 of Pennsylvania's lobbying
disclosure law ("Lobbying Disclosure Law"), 65 Pa.C.S. § 13A05.
2. The transgressions of the Lobbying Disclosure Law outlined in paragraph 1 immediately
above are deemed to be negligent in nature.
3. Based upon the totality of the circumstances in this case, the imposition of a civil penalty
is not warranted in this matter.
BY THE COMMISSION,
{
Shelley Y. Sim s, hair