HomeMy WebLinkAbout167-S, Catalyst ExperientialPHONE:717-783-1610 STATE ETHICS COMMISSION
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HARRISBURG, PA 17120-0400
In Re; Catalyst Experiential, File Docket: 24-002-L
Respondent Order No. 167-S
: Date Decided: 1/8/25
Date Mailed: 1/10/25
Before: David L. Reddecliff, Vice Chair
Paul E. Parsells
Robert P. Caruso
Emilia McKee Vassallo
Thomas E. Lcipold
FACSIMILE: 717-787-0806
WEBSITE: www.ethics.pa.gov
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. § 13A01 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, Catalyst Experiential, (hereinafter also referred to as
"Respondent") a Notice of Alleged Noncompliance. The Respondent did not file an Answer,
Appeal, or other Request for Hearing. The record is complete. The bindings in this Order are
derived from the Notice of Alleged Noncompliance filed by the Investigative Division.
I. 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. § 13A04), negligently failed to
timely file a quarterly expense report pursuant to 65 Pa.C.S. § 13A05 for the first quarter
of 2024.
II. FINDINGS:
1. Respondent is Catalyst Experiential ("Respondent") and is a registered principal as that
term is defined by the Lobbying Disclosure Law, Act 134 of 2006, 65 Pa.C.S. § 13A01 et
SeMC .
a. Respondent initially registered as a Principal with the Department of State on June
27, 2023, for the registration period January 1, 2023, through December 31, 2024.
I Chair Michael A. Schwartz recused himself from this matter and did not participate in the deliberations involving
this case.
Catalyst Experiential, 24-002-L
Page 2
b. Respondent's registration statement indicates that lobbying commenced on June 27,
2023.
2. Respondent filed a principal registration statement with the Department of State for the
registration period January 1, 2023, through December 31, 2024.
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 "P69901."
C. In filing its principal registration, Respondent identified its registered mailing
address as:
Catalyst Experiential
3400 West Chester Pike
Newtown Square, PA 19073
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 Iobbyist, 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 of the business.
ii. Permanent address.
iii. Daytime telephone number.
Catalyst Experiential, 24-002-L
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iv. Email 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. --
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. §§ 13AO4(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. Registration under section 13Aa4 of the act (relating to
registration) shall be biennial. The first registration period
Catal, s+st Experiential, 24-002-L
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which commenced January 1, 2007, continues through
December 31, 2008. Subsequent registrations shall
commence on January 1 of each odd numbered year.
51 Pa. Code § 51.3(a).
5. Section 13A05 of the Lobbying Disclosure Law sets forth, in part, the following
requirements for the contents of quarterly reporting forms filed by principals:
§ 13A05. Reporting
(a) General rule.-- A registered principal shall, subject to the
penalties under 18 Pa.C.S. § 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 Iobbyists
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 include all
office expenses, personnel expenses, expenditures
related to gifts, hospitality, transportation and
lodging to State officials or employees, and any other
lobbying costs. The total amount reported under this
paragraph shall be allocated in its entirety among the
following categories:
(i) The costs for gifts, hospitality, transportation,
and lodging given to or provided to State
officials or employees or their immediate
families.
(ii) The costs for direct communication.
(iii) The costs for indirect communication.
Catal,, s�periential, 24-002-L
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(iv) Expenses required to be reported under this
subsection shall be allocated to one of the
three categories Iisted under this section and
shall not be included in more than one
category.
65 Pa.C.S. §§ 13A05(a), (b)(1)-(2).
6. In addition to the Lobbying Disclosure Law, the duly promulgated Regulations provide
further instructions in relation to registration periods and reporting periods:
§ 51.3. Registration periods and reporting periods.
(b) Reporting under section 13A05 of the act (relating to
reporting) shall be quarterly within each calendar year: for
January through March; April through June; July through
September; and October through December. Quarterly
expense reports shall be filed on or before the 30th day after
the quarterly reporting period ends.
51 Pa. Code § 51.3(b).
7. As a registered principal, Respondent is required to 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).
8. 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 [$3,000) for a registered
principal in a reporting period. In a reporting period in which
total expenses are [$3,000] or less, a statement to that effect
shall be filed electronically using the computerized filing
system developed by the department that is consistent with
the purpose of this chapter.
65 Pa.C.S. § 13A05(d).
Catalyst Experiential, 24-002-L
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9. Section 13A03 of the Lobbying Disclosure Law defines the following terms:
"Lobbying." An effort to influence legislative action or
administrative action in this Commonwealth. The term includes:
(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.
"Legislative action." An action taken by a State official or
employee involving the preparation, research, drafting,
introduction, consideration, modification, amendment, approval,
passage, enactment, tabling, postponement, defeat or rejection of:
(1) legislation;
(2) legislative motions;
(3) a veto by the Governor; or
(4) confirmation of appointments by the Governor or
appointments to public boards or commissions by a member
of the General Assembly.
"Legislation." Bills, resolutions, amendments and nominations
pending or proposed in either the Senate or the House of
Representatives. The term includes any other matter which may
become the subject of action by either chamber of the General
Assembly.
"Direct communication." An effort, whether written, oral or by
any other medium, made by a lobbyist or principal, directed to a
State official or employee, the purpose or foreseeable effect of
which is to influence legislative action or administrative action. The
term may include personnel expenses and office expenses.
65 Pa.C.S. § 13A03.
10. As a registered principal, Respondent is required to 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).
Catalyst Experiential, 24-002-L
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a. Respondent did not file a first (1") quarter 2024 Expense Report by April 30, 2024.
11. The Regulations promulgated under the Lobbying Disclosure Law specifically provide the
following in relation to a delinquent filing:
§ 51.4. Delinquency.
(a) A registration statement or report required to be filed under
section 13A04 or 13A05 of the act (relating to registration;
and reporting) is delinquent if not received by the
Department on the date due as follows:
(1) Hard copy filings must be received by 5 p.m, in the
office. For quarterly expense reports, from 5 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 web site,
i. Hard copy filings are no longer allowed
pursuant to Act 2018-2 (H.B.1175), § 2,
approved February 14, 2018, eff. April [15],
2018.
(2) Electronic filings may be filed until 12 a.m.
midnight,
(b) A failure to timely file a registration statement, a quarterly
expense report, a separate expense report, a notice of
termination or an amendment to one of these filings
constitutes a failure to register or report as required by the
act; delinquency continues until the filing is received by the
Department in proper form.
51 Pa. Code § § 51.4(a)-(b).
12. In relation to the filing requirements of quarterly expense reports, the Regulations read, in
part:
§ 551. 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
Catalyst Experiential, 24-002-L
Page 8
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 lobbying.
Individuals exempt under section BA06 of the act (relating
to exemption ftom 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 lobbying 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.
(g) A quarterly expense report of a principal required 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.
Catalyst Experiential, 24-002-L
Page 9
(B) The costs for direct communication.
(C) The costs for indirect communication.
(ii) Registrants shall use a good faith effort to
allocate expenses required to be reported under this
subsection to one of the three categories listed herein.
A given expense may not be included in more than
one category...
51 Pa. Code §§ 55.1(a), (b), (d), (g)(3)(i)-(ii).
13. By Warning Notice letter dated June 6, 2024, Respondent was served with notice2 in
accordance with Section 13A09 of the Lobbying Disclosure Law and Section 63.4(1) of
the Lobbying Disclosure Regulations of the following specific allegations: that
Respondent failed to file quarterly expense reports for the first (1") quarter of 2024.
a. Said Warning Notice was mailed to:
Catalyst Experiential
3400 West Chester Pike
Newtown Square, PA 19073
b. This is the same address as listed on Respondent's principal registration statement.
C. By submitting the principal registration statement, Respondent consented to receipt
of service of notices, other official mailings or process, at the address listed on the
registration statement. (See, Paragraph 2(a) above).
14. Said Warning Notice letter set forth the nature of the alleged noncompliance and the
administrative and criminal penalties for failing to file.
15. 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 quarterly expense report for the time period covering the first (1st) quarter of 2024
with the Department of State within thirty (30) days from the mailing date of the Warning
Notice letter.
16. The Director of the Bureau of Campaign Finance and Civic Engagement — Department of
2 The Investigative Division also emailed the listed Authorized Representative on Respondent's registration on July
1, 2024. A reply was received that this person no longer represented Catalyst. This person stated he would "pass the
message along." This person was advised to update the system in the Department of State's website and given their
contact information. The Investigative Division also attempted to call Respondent, but was unable to reach a person
or leave a voice message.
Catalyst Experiential, 24-002-L
Page 10
State conducted a search of the Department of State's records, and, as of July 17, 2024, no
first (1 ") quarter 2024 expense report was found to have been filed with the Department of
State for Catalyst Experiential.
17, 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 201h
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).
b. The total amount of the administrative penalty that may be levied
after hearing by a majority vote of all of the Commission Members
shall not be limited by any other provision of law. 65 Pa.C.S. §
13A09(c)(2).
C. Any person that fails to comply with the requirements of the
Lobbying Disclosure Law, after notice of noncompliance and after
a hearing if one is requested, may be prohibited from lobbying for
economic consideration for up to five (5) years [in accordance with
65 Pa,C.S. § 13A09(e)(4)]. 65 Pa.C.S. §§ 13A09(d), (e)(4).
d. A person that intentionally fails to register or report as required by
the law commits a misdemeanor of the second degree. 65 Pa.C.S. §
13A09(e)(I ).
C. A registrant who files a report under the law with knowledge that
the report contains a false statement or is incomplete commits a
misdemeanor of the second degree. 65 Pa.C.S. § 13A09(e)(2).
£ Except as set forth in paragraph (d) or (c) above, a person that
intentionally violates [the Lobbying Disclosure Law] commits a
misdemeanor of the third degree. In addition to any other penalties
imposed under [the Lobbying Disclosure Law], the court may
impose a fine not to exceed $25,000 against a principal who is found
Catalystperiential, 24-002-L
Page 11
guilty under [Section 13A09(e)(3) of the Lobbying Disclosure
Law].
g. In addition to any criminal penalties imposed under [the Lobbying
Disclosure Law], the Commission may prohibit a person from
lobbying for economic consideration for up to five years for conduct
which constitutes an offense under [Section 13A09(c) of the
Lobbying Disclosure Law]. Criminal prosecution or conviction is
not required for imposition of [such prohibition]. The Commission
shall not impose [such prohibition] unless the person has been
afforded the opportunity for a hearing, which shall be conducted by
the Commission in accordance with sections 1107(14) and 1108(c)
[of the Public Official and Employee Ethics Act, 65 Pa.C.S. §§
1107(14) and 1108(e)]. 65 Pa.C.S. § 13A09(c)(4).
18. As of the date of the filing of the instant Notice of Alleged Noncompliance, Respondent's
expense report is at least eighty-five (85) days delinquent.
a. Respondent's first (1ST) quarter 2024 expense report is at least 85 days delinquent.
(April 30 — July 24, 2024).
1. The first quarter expense report period closed March 31, 2024. See, 65
Pa,C.S, § 13A03 Definitions -"Reporting period."
2. Expense reports were to be filed within thirty (30) days of March 31, 2024,
that date being April 30, 2024, See, 65 Pa C.S. § 13A05(a).
3. The first day on which Respondent's first (1") quarter 2024 Expense Report
was delinquent was May 1, 2024.
19. Respondent's first (1S) quarter 2024 expense report continues to be delinquent, as it has
not yet been filed with the Department of State.
20. The thirty -day deadline set forth in the said Warning Notice letter to Respondent expired
with Respondent failing to comply with the specific requirements of the Lobbying
Disclosure Law.
21. The Commission may impose a maximum administrative penalty for each violation of
$50.00 per day for the first ten late days, $100.00 for each late day after the first ten late
days through the 201h late day, and $200.00 for each late day after the first 20 late days that
Respondent's first (I") quarter 2023 Expense Report remained delinquent, calculated from
April 30, 2024, the first day the quarterly expense report was delinquent, through the date
Respondent files the outstanding quarterly expense report with the Department of State.
51 Pa. Code § 63.6(2).
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22. In addition to its authority to impose an administrative penalty for negligent failure to
register or report as required by the Lobbying Disclosure Law, 65 Pa.C.S. § 13A09(c), this
Commission has authority to prohibit a respondent that has intentionally violated the
Lobbying Disclosure Law from lobbying for economic consideration for up to five years,
pursuant to 65 Pa.C.S. § 13A09(e)(4).
a. The procedures for imposing a prohibition against lobbying for economic
consideration are set forth at 51 Pa. Code Chapter 65.
b. The instant proceeding is limited to an alleged negligent failure to timely file a
quarterly expense report for the first quarter of 2024.
23. There are no mitigating circumstances of record concerning Respondent's failure to file
the outstanding quarterly expense report.
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, negligently failed to timely file a quarterly expense report pursuant to
65 Pa.C.S. § 13A05 for the first quarter of 2024.
The relevant provisions of the Lobbying Disclosure Law are set forth in the Fact Findings
above. Certain relevant provisions of the Lobbying Disclosure Regulations, 51 Pa. Code § 51.1 et
seq., are also set forth in the Fact Findings. We shall now summarize the relevant facts.
Respondent initially registered as a principal with the Department of State on June 27,
2023, for the registration period January 1, 2023, through December 31, 2024. Respondent's
registration statement indicated that lobbying commenced on June 27, 2023.
Respondent registered as a principal with the Department of State for the registration period
January 1, 2023, through December 31, 2024. Respondent was assigned the principal registration
number "P69901."
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
Catal sy t Experiential, 24-002-L
Page 13
day after each quarterly reporting period ends. 51 Pa. Code § 55.1(d).
Having registered for the registration period January 1, 2023, through December 31, 2024,
Respondent was required to file either a quarterly expense report or statement of failure to meet
the reporting threshold for the first quarter of 2024. 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 tiling is
received by the Department of State in proper form. 51 Pa. Code § 51.4(b).
By Warning Notice letter dated June 6, 2024, 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 2024 with the Department of State within
thirty (30) days of the mailing date of the Warning Notice letter.
As of July 17, 2024, no first quarter 2024 expense report was found to have been filed with
the Department of State for Catalyst Experiential.
An application of Sections 13A09(a), (c) of the Lobbying Disclosure Law to this case
establishes that this Commission has the discretion to impose a maximum administrative penalty
against Respondent for the aforesaid delinquency.
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. Respondent did not cure
its noncompliance with the Lobbying Disclosure Law within the 30-day cure period. The
Investigative Division then instituted formal proceedings against the Respondent by filing with the
State Ethics Commission and serving upon Respondent a Notice of Alleged Noncompliance.
Respondent did not file an Answer, Appeal, or other Request for Hearing as to the Notice of
Alleged Noncompliance.
We hold that Catalyst Experiential, in its capacity as a principal registered with the
Department of State under principal registration number "P69901," violated Section 13A05 of the
Lobbying Disclosure Law, 65 Pa.C.S. § 13A05, when it failed to timely file with the Department
of State either a quarterly expense report or a statement of failure to meet the reporting threshold
for the first quarter of 2024.
We determine that the violation of the Lobbying Disclosure Law outlined above was
negligent in nature, and there is no basis in the record for imposing less than a maximum
administrative penalty against Respondent. See, 51 Pa. Code § 63.6(3).
The Regulations promulgated under the Lobbying Disclosure Law specifically provide the
following in relation to the calculation of an administrative penalty for a late or deficient filing:
Catalvst Experiential, 24-002-L
Page 14
§ 63.6. Administrative penalties for late or deficient filings.
(2) An administrative penalty will be calculated from the first day the
registration statement or report is delinquent or deficient, through
the date a complete and accurate registration statement or report is
filed or the Commission decides the matter, whichever occurs first.
51 Pa. Code § 63.6(2).
The first day on which Respondent's first quarter 2024 expense report or statement of
failure to meet the reporting threshold was delinquent was May 1, 2024. Respondent's quarterly
expense report for the first quarter of 2024 was delinquent for a total of 253 days.
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).
The Regulations promulgated under the Lobbying Disclosure Law further provide that the
Commission may consider the following when imposing a civil penalty on a delinquent filer:
§ 63.6(3) Administrative penalties for late or deficient filings.
(3) In determining whether to impose an administrative penalty that is less than $50-
per-day, the Commission may consider factors including the following:
(i) Whether the respondent contacted the Commission or took any meaningful
measures to attempt to remedy the delinquency, deficiency or false
statement.
(ii) Whether the respondent has raised any justifiable excuse such as, for
example, the following:
(A) The unavailability of records due to loss, theft or desti action through
no fault of the respondent.
(B) Incapacitating physical or mental illness, hospitalization, accident
involvement, or death of a person required to register or report, a
person whose participation is essential to the filing, or a member of
the immediate family of the person.
(iii) Whether the record establishes that the matter involved the first instance
that the respondent was subject to the registration/reporting requirements of
the act.
Catal,, st Ex.Deriential, 24-002-L
Page 15
(iv) Whether Commission records indicate that the Commission has previously
notified the respondent, in writing, of other delinquent, deficient, or false
registration statements or reports.
(v) Whether proceedings have previously been initiated against the respondent
under the act, either by the Commission or by the Office of Attorney
General.
(vi) Whether there are any other factors that should be considered as aggravating
or mitigating factors in the case.
51 Pa. Code § 63.6(3).
The record is devoid of any meaningfiYl mitigation. It appears as though this is the first time
that Respondent has been a delinquent or deficient filer or had proceedings initiated against it
under the Act. Because it failed to respond to this matter, however, Respondent lost the opportunity
to present evidence to mitigate its actions in this case. Thus, we feel compelled to impose the
maximum civil penalty allowed by law. Accordingly, pursuant to Section 13A09(c) of the
Lobbying Disclosure Law, 65 Pa.C.S. § 13A09(c), this Commission hereby levies one
administrative penalty against Respondent Catalyst Experiential, in the total amount of
$48,100.00, calculated as follows: $ 5 0 per day for the first ten days its first quarter 2024 expense
report or statement of failure to meet the reporting threshold was delinquent, plus $100.00 per day
for the next ten days its first quarter 2024 expense report or statement of failure to meet the
reporting threshold was delinquent, plus $200 per day for the remaining 233 days its first quarter
2024 expense report or statement of failure to meet the reporting threshold was delinquent (10
days x $50.00 + 10 days x $100.00 + 233 x $200.00 = $48,100.00).
Catalyst Experiential is ordered to pay the aforesaid administrative penalty in the total
amount of $48,100.00 by way of certified check, money order or electronic payment in the amount
of $48,100.00 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 Commission initiating appropriate enforcement action(s).
IV. CONCLUSIONS Or LAW:
1. As a principal registered with the Pennsylvania Department of State ("Department of
State") under principal registration number "P69901," Catalyst Experiential, 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. Catalyst Experiential, in its capacity as a principal registered with the Department of State
under principal registration number "P69901," violated Section 13A05 of the Lobbying
Disclosure Law, 65 Pa.C.S. § 13A05, when it failed to timely file with the Department of
State either a quarterly expense report or a statement of failure to meet the reporting
threshold for the first quarter of 2024.
Catalyst Experiential, 24-002-L
Page 16
3. The violations 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 lack of any
meaningful mitigation, the imposition of an administrative penalty in the amount of
$48,100.00, is warranted (10 days x $50.00 + 10 days x $100.00 + 233 days x $200,00 =
$48,100.00).
In Re: Catalyst Experiential
Respondent
File Docket: 24-002-L
Date Decided: 1/8/25
Date Mailed: 1/10/25
ORDER NO. 167-SL
1. Catalyst Experiential, in its capacity as a principal registered with the Pennsylvania
Department of State ("Department of State") under principal registration number
"P69901," violated Section 13A05 of Pennsylvania's lobbying disclosure law ("Lobbying
Disclosure Law"), 65 Pa.C.S. § 13A05, when it failed to timely file with the Department
of State either a quarterly expense report or statement of failure to meet the reporting
threshold for the first quarter of 2024.
2. The violations of the Lobbying Disclosure Law outlined in paragraph 1 immediately above
are deemed to be negligent in nature.
Pursuant to Section 13A09(c) of the Lobbying Disclosure Law, 65 Pa.C.S. § 13A09(c),
this Commission hereby levies one administrative penalty against Catalyst Experiential, in
the total amount of $48,100.00, calculated as follows: $50 per day for the first ten days its
first quarter 2024 expense report or statement of failure to meet the reporting threshold was
delinquent, plus $100.00 per day for the next ten days its first quarter 2024 expense report
or statement of failure to meet the reporting threshold was delinquent, plus $200 per day
for the remaining 233 days its first quarter 2024 expense report or statement of failure to
meet the reporting threshold was delinquent (10 days x $50.00 + 10 days x $100.00 + 233
x $200.00 = $48,100,00).
4. Catalyst Experiential, is ordered to pay the aforesaid administrative penalty in the total
amount of $48,100.00, by no later than the thirtieth (30"') day after the mailing date of this
Order, by utilizing the Commission's electronic payment system or by forwarding to this
Commission a certified check or money order in the amount of $48,100.00 made payable
to the Commonwealth of Pennsylvania, for deposit in the State Treasury.
5. Noncompliance with Paragraph 4 of this Order will result in the Commission initiating
appropriate enforcement action(s).
BY THE COMMISSION,
i
David L. Reddecliff, Vice Ch zr