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In Re: Verland CLA, File Docket: 22-014-L
Respondent Order No. 161 -SL
Date Decided: 6/29/23
Date Mailed: 6/30/23
Before: Shelley Y. Simms, Chair
Michael A. Schwartz, Vice Chair
Rhonda Hill Wilson
Paul E. Pars,ells
David L, Reddecliff
Robert P. Caruso
FACMILE 717-787--0806
WEBSffE: wwwothic gx joy
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. § 13AOI et seq., 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 Verland CLA (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. § 13AO I et M.), failed to timely file
quarterly expense reports pursuant to 65 Pa.C.S. § 13AO5 for the third (3") quarter of 2022.
IL FINDINGS:
Respondent is Verland CLA ("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 seq.
a,. Respondent initially registered as a principal with the Department of State on May
5, 2011, for the registration period January 1, 2011, through December 31, 2012.
b, Respondent's registration statement indicates that lobbying commenced on April
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1, 2011.
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 "P28713."
C. In filing its principal registration, Respondent identified its registered mailing
address as:
Verland CLA
212 Iris Road
Sewickley, PA 15143
3. The Lobbying Disclosure Law, specifically 65 Pa.C.S. § 13A04, states the following
regarding the registration of an entity as a principal:
§ 13A04. Registration
a. General rule. --Unless excluded under section 13A06
(relating to exemption from registration and reporting), a
lobbyist, lobbying firm or a principal must register with the
department 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 firms.--
L 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.
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iv. E-mail address of the authorized
representative employee or agent, if
available.
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.—
1. If there is a change of information required for the
registration statement under subsection (b)(1) or (2)
or (c), an amended registration statement shall be
filed with the department 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
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December 31, 2008. Subsequent registrations shall
commence on January I of each odd year.
51 Pa. Code § 51.3(a).
5. Section 13A05 of the Lobbying Disclosure Law sets forth, in part, the following
requirements for the contents of quarterly reporting forms file by principals.
§ 13A05. 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. § 13A05(a).
6. 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 301" day after
the quarterly reporting period ends.
51 Pa. Code § 51.3(b).
7. As a principal, Respondent is required to file, under oath or affirmation, quarterly expense
reports with the Department of State no later than thirty (30) days after the last day of the
quarter.
8. 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
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expenses are [$3000) or less, a statement to that effect shall
be filed.
65 Pa.C.S. § 13A05(d).
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 30th 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 third (3`d) quarter 2022 expense report by October 31,
2022.
10. The Regulations promulgated under the Lobbying Disclosure Law specifically provide the
following in relation to a delinquent filing:
§ 51.4 Delinquency
(b) A failure to timely file a registration statement, a quarterly expense report, a separate
expense report, a notice of termination or an amendment to one of these filings
constitutes a failure to register or report as required by the act; delinquency continues
until the filing is received by the Department in proper forth.
51 Pa. Code § 51.4 (b).
11. By Warning Notice letter dated November 15, 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 third (3`d) quarter 2022 with the Department of State.
a. Said Warning Notice was mailed to:
Catherine Bogats
Verland CLA
2121ris Road
Sewickley, PA 15143
b. This is the same address as listed on Respondent's principal registration statement.
12. Said Warning Notice letter set forth the nature of the alleged noncompliance and the
' Respondent was also sent a courtesy email by the Investigative Division on November 28, 2022 at the email assigned
to their Registration notifying them that they were facing enforcement for their failure to file their 31 quarter 2022
expense report. This email was not "bounced hack" as undeliverable. There was no response.
Verland CLA, 22-014-L
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administrative and criminal penalties for failing to file.
13. 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 third (3`d) quarter of
2022 with the Department of State within thirty (30) days from the mailing date of the
Warning Notice letter.
14. The Lobbying Disclosure Law provides for civil and criminal penalties for failing to
comply with the registration statement filing and quarterly expense reporting requirements
thereof. Specifically, 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 sixty-three (63) days delinquent.
a. The third (3`d) quarter expense report period closed September 30, 2022, See, 65
Pa.C.S. § 13A03 Definitions — "Reporting period."
b. Expense reports were to be filed within thirty (30) days of September 30, 2022, that
date being October 31, 2022. See, 65 Pa.C.S. § 13A05(a).
c. The first day in which Respondent's third (3`d) quarter 2022 expense report was
delinquent was November 1, 2022.
15. Respondent has properly filed all outstanding expense reports as of January 3, 2023, and
has not registered for the 2023-2024 registration period.
16. Respondent has presented the following mitigation in this matter:
Verland CLA is a non-profit organization which takes care of individuals who are
intellectually disabled. We have 35 homes with 107 individuals who are served. As part
of the business, we do use a lobbyist to help us advocate for our individuals through the
legislative system. We have never been late with our filings and due to the timing of the
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filing, it was inadvertently missed due to the department structure. We have since filed and
are current. We understand that this should not have been missed, but it was unintentional.
We would like for the Court to consider a lesser penalty and if possible, reducing it
altogether based on our excellent submission history.
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 third 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 May 5, 2011,
for the registration period January 1, 2011, through December 31, 2012. Respondent's registration
statement indicated that lobbying commenced on April 1, 2011. Respondent was assigned the
principal registration number "P28713."
Per the Stipulation of the Parties, 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 filed
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 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 third quarter of 2022. Respondent failed to timely 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).
Verland CLA, 22-014-L
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By Warning Notice letter dated November 15, 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 third 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 January 3, 2023, Respondent submitted a
quarterly expense report for the third quarter of 2022. Respondent's expense report was a total of
63 days delinquent, November 1, 2022 -- January 3, 2023.
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"' 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).
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 third 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.
The Investigative Division submitted a position statement wherein they requested the
imposition of a $5,000.00 administrative penalty. Respondent did not submit a position statement.
Taking into consideration the mitigating factors, including the number of days the filing was
delinquent, the immediate action to rectify this issue, the otherwise unblemished lobbying
practices of Respondent, and the fact that Respondent has since filed expense reports for every
quarter and is current on its 2023-2024 principal registration, this Commission concludes that the
maximum penalty is not warranted in this case. Instead, this Commission concurs with the
recommendation of the Investigative Division and hereby imposes a $5,000.00 administrative
penalty against Respondent.
Respondent is ordered to pay the aforesaid administrative penalty in the total amount of
$5,000.00 by way of certified check or money order in the amount of $5,000.00 payable to the
Commonwealth of Pennsylvania and forwarded to this Commission by no later than the thirtieth
(30t") day after the mailing date of this adjudication and Order.
Noncompliance will result in the institution of an order enforcement action.
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Page 9
IV. CONCLUSIONS OF LAW:
As a principal registered with the Pennsylvania Department of State ("Department of
State") under principal registration number "P28713," Verland CLA 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. Verland CLA, in its capacity as a principal registered with the Department of State under
principal registration number "P28713," failed to timely file quarterly expense reports with
the Department of State for the third 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.
5. Based upon the totality of the circumstances in this case, including the mitigating factors
outlined above, the imposition of an administrative penalty in the amount of $5,000 is
warranted.
In Re: Verland CLA, File Docket: 22-014-L
Respondent Date Decided: 6/29/23
Date Mailed: 6/30/23
ORDER NO. 161-SL
Verland CLA, in its capacity as a principal registered with the Pennsylvania Department
of State ("Department of State") under principal registration number "P28713," failed to
timely file quarterly expense reports with the Department of State for the third 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. Respondent is ordered to pay the aforesaid administrative penalty in the total amount of
$5,000.00 by way of certified check or money order in the amount of $5,000.00 payable to
the Commonwealth of Pennsylvania and forwarded to this Commission by no later than
the thirtieth (30"') day after the mailing date of this adjudication and Order.
4. Noncompliance with Paragraph 3 of this Order will result in the Commission initiating
appropriate enforcement action(s).
BY THE COMMISSION,
Shelley Y. Si
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