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STATE ETHICS COMMISSION
FINANCE BUILDING
613 NORTH STREET, ROOM 309
HARRISBURG, PA 17120 -0400
In Re: Keystone Integrated Care,
Respondent
File Docket:
18 -012 -L
X -ref: Order No.
140 -SL
Date Decided:
517119
Date Mailed:
5115119
Before: Nicholas A. Colafella, Chair
Mark R. Corrigan, Vice Chair
Roger Nick
Melanie DePalma
Monique Myatt Galloway
Michael A. Schwartz
Shelley Y. Simms
FACSIMILE: 717 -787 -0606
WESSITE: 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. 13AO1 et sec.., hereinafter referred to
as the "Lobbying Disclosure Law."
The Investigative Division initiated these proceedings by filing with the State Ethics
Commission and serving u o Respondent Keystone Integrated Care (hereinafter also
referred to as "Respondent` a n Notice of Alleged Noncompliance. 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 ( "Department
of State ") increased the thresholds under 66 Pa.C.S. § 13AO6 for re istration under
65 Pa.C.S. § 13AO4 and the threshold for reporting under 65 Pa.C.S. 13AOS(d) from
$2,500.00 to $3,000.00.
In 2018 the Lobbying Disclosure Law was amended by Act 2 of 2018, and as of
April 16, 2018, the Department of State will not accept paper registrations or expense
reports.
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. § 13A01 et �seq.),
negligently failed to timely file a quarterly expense report pursuant to 65 Pa.C.S. §
13A0� for the second (2nd) quarter of 2018; and pursuant to the Lobbying
Disclosure Law, failed to properly file a principal registration pursuant to 65 Pa.C.S.
§ 13AO4.
II. FINDINGS:
Respondent is Keystone Integrated Care ( "Respondent ") and is a registered
principal as that term is defined by the Lobbying Disclosure Law, Act 134 of 2006,
65 Pa.C.S. § 13AO1 et seq.
a. Respondent initially registered as a principal with the Department of State on
January 26, 2017, for the registration period January 1, 2017, through
Keystone Integrated Care, 18 -012 -L
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December 31, 2018.
b. Respondent's registration statement indicates that lobbying commenced on
January 24, 2017.
2. Respondent filed a principal registration statement with the Department of State for
the registration period January 1, 2017, through December 31, 2018.
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 "P43637."
C. In filing its principal registration, Respondent identified its registered mailing
address as:
401 Liberty Avenue
22nd Floor
Pittsburgh, PA 15222
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.- -
1. A principal or lobbying irm required to register
under subsection (a) shall file a single
Nistration 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.
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
Keystone Integrated Care, 18 -012 -L
Page
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.
When there is a change in information required
for the registration statement under subsection
(b) 3), an amended registration statement shall
be sled 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).
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.
Registration under section 13A04 of the act (relating to
registration) shall be biennial. The first registration
Feriod which commenced January 1, 2007, continues
hrough December 31, 2008. Subsequent registrations
shall commence on January 1 of each odd numbered
year.
51 Pa. Code § 51.3(a).
Section 13A05 of the Lobbying Disclosure Law sets forth, in ppart, the following
requirements for the contents of quarterly reporting forms filed by principals:
§ 13A05. Reporting
(a) General rule. -- A registered princi al 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.
Keystone Integrated Care, 18 -012 -L
Page
(b) Content.—
(1) Each expense report must list the names and
registration numbers when available of all
lobbyists by whom lobbying is conducted on
behalf of the principal and the general subject
matter or issue being lobbied.
(2) Each expense report shall include the total costs
of all lobbying for the period. The total shall
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:
The costs for gifts, hospitality,
transportation and lodging given to or
provided to State officials or employees or
their immediate families.
The costs for direct communication.
The costs for indirect communication.
(iv) Expenses required to be reported under
this subsection shall be allocated to one
of the three categories fisted 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
epartment of State either a quarterly expense report or a statement of failure to
meet the reporting threshold for each quarter it has been registered as a principal,
by no later than the 30t1 day after each quarterly reporting period has ended. 65
Pa. C.S. § 13A05(a), (d); 51 Pa. Code § 55.1(d)].
Keystone Integrated Care, 18 -012 -L
Page
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
J$3,000] for a registered principal in a reporting period.
n a reporting period �n which total expenses are
[$3,0001 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 ).
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
o 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 refection 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, 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.
Keystone Integrated Care, 18 -012 -L
Page
65 Pa.C.S. § 13A03.
10. As a registered principal, Respondent is required to electronically file with the
bepartment 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 30t' day after each quarterly reporting period has ended. 65
Pa.C.S. § 13A05(a), (d); 51 Pa. Code § 55.1(d)].
a. Respondent filed a quarterly expense report for the first (1St) quarter of 2018
on April 27, 2018.
b. Respondent did not file a second (2 "d) quarter 2018 expense report by July
30, 2018.
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.
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:
§ 55.1. Quarterly expense reports.
(a) A quarterly expense report is required to be filed as set
forth in this section when the total lobbying expenses of
Ke stone Integrated Care, 18 -012 -L
Page
a registered principal, registered lobbying firm or
registered lobbyist lobbying on the principal's behalf,
together, exceed [$3,000 in a quarterly reporting
period. The threshold of [$3,000] includes any
economic consideration paid by a principal to a lobbying
firm or lobbyist for lobbying. Individuals exempt under
section 13A06 of the act (relating to exemption from
registration and reporting) need not register or report.
(b) For a quarterly reporting period in which the total
lobbying expenses of a registered principal, registered
lobbying firm or registered lobbyist lobb ing on the
principal's behalf, together, are [$3,000 or less, a
statement to that effect shall be filed with the
Department by checking the appropriate block on the
quarterly expense report form.
(d) The principal shall file a quarterly expense report or
statement of failure to meet the reporting threshold on
or before the 30th day after the quarterly reporting
period ends.
(g) A quarter[ expense report of a principal required to be
registered y 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 gefts,
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 prodded to State officials or
employees or their immediate
families.
(B) The costs for direct communication.
(C) The costs for indirect
communication.
(ii) Registrants shall use a good faith effort to
allocate expenses required to be reported
under this subsection to one of the three
Keystone Integrated Care, 18 -012 -L
Page
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 September 12, 2018, 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 a qquarterly expense report for the second (2nd) quarter
of 2018 and faded to properly register with the Department of State when
Respondent failed to include the name and e-mail of Respondent's authorized
representative, employee, or agent on the registration.
a. Said Warning Notice was mailed to:
Keystone Integrated Care
401 Liberty Avenue
22nd Floor
Pittsburgh, PA 15222
b. This is the same address as listed on Respondent's principal registration
statement.
G. By submitting the principal registration statement, Respondent consented to
recei t 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 a quarterly expense report for the time period covering the
second (2nd) quarter of 2018 and amending its registration to include the name and
email address of an authorized representative, employee, or agent, with the
Department of State within thirty (30) days from the mailing date of the Warning
Notice letter.
16. The Chief of the Division of Campaign Finance and Lobbying Disclosure for the
Commonwealth of Pennsylvania — Department of State conducted a search of the
Department of State's records, and, as of November 1, 2018, no second (2nd)
quarter 2018 expense report was found to have been filed with the Department of
State for Keystone Integrated Care ....
17. The Lobbying Disclosure Law provides for civil and criminal penalties for failingg to
comply with the re istration statement filing and quarterly expense re orting
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.
Keystone Integrated Care, 18 -012 -L
Page
(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 lobbyin 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)(1).
e. A registrant who files a report under the law with knowledge that the re ort
contains a false statement or is incomplete commits a misdemeanor ofpthe
second degree. 65 Pa.C.S. § 13A09(e)(2).
f. Except as set forth in paragraph (d) or (e) 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 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(e) 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 heann , which shall be conducted by the
Commission in accordance with sections' 107 14) and 1108(e) fof the Public
Official and Employee Ethics Act, 65 Pa.C.S. §1107(14)an d 1108(e)].
18. Respondent's second (2nd) quarter 2018 Expense Report was filed with the
Department of State on November 15, 2018.
19. Respondent's second (2"d) quarter 2018 Expense Report was 107 days delinquent
(July 31, 2018 -- November 15, 2018).
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 second quarter of 2018 and also failed to properly
file a principal registration pursuant to 65 Pa.C.S. § 13A04.
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. Per the Consent Agreement of the parties, the Investigative Division has
exercised its prosecutorial discretion to nol pros the allegation under Section 13A04 of the
Ke stone Integrated Care, 18 -012 -L
age
Lobbying Disclosure Law. Based upon the nol pros, we need not address the allegation
under Section 13A04 which is no longer before us.
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
January 26, 2017, for the registration period January 1, 2017, through December 31, 2018.
Respondent's registration statement indicated that lobbying commenced on January 24,
2017. Respondent was assigned the principal registration number "P43637."
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 pprincipal b
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 26, 2017, for the registration period January 1, 2017,
through December 31, 2018, Respondent was required to file either a quarterly expense
report or a statement of failure to meet the reporting threshold for the second quarter of
2018. 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 September 12, 2018, 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 second quarter of 2018 with
the Department of State within thirty (30) days of the mailing date of the Warning Notice
letter.
As of November 1, 2018, no second quarter 2018 expense report was found to have
been filed with the Department of State for Respondent.
On November 15, 2018, Respondent submitted a quarterly expense report for the
second quarter of 2018.
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 20th 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.
Keystone Integrated Care, 18 -012 -L
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The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows:
3. The Investigative Division will recommend the following
conclusions in relation to the above deficiencies:
a. That Respondent, in its capacity as a Principal
registered with the Pennsylvania Department of
State pursuant to the Pennsylvania Lobbying
Disclosure Law (65 Pa.C.S. § 13A01 et seq.),
failed to timely file a Quarterly Expense Report
pursuant to 65 Pa.C.S. § 13A05, for the second
(2nd) quarter of 2018;
b. The Investigative Division has elected to nolle
Fros the second allegation regarding the failure
o properly identify an authorized
representative's name and email on the principal
registration.
C. That the transgressions of the Lobbying
Disclosure Law outlined in paragraph (a) above
are deemed to be negligent in nature;
d. For the purposes of this Consent Agreement,
Respondent was deficient in filing its second
(2nd) quarter of 2018 Expense Report by a total
of 107 days, calculated as set forth below:
i. On September 12, 2018, a Warning
Notice regarding the delinquent quarterly
expense report was sent to Respondent
via First Class United States Mail;
ii. Respondent did not file the outstanding
Quarterly Expense Report for the second
(2nd) quarter of 2018 within the stated
cure period;
iii. Respondent has properly fled all
outstanding Expense Reports. The
delinquent period for purposes of this
Consent Agreement is calculated from
the first date the second (2nd) quarter of
2018 Expense Report was delinquent
(duly [31], 2018 until the date
Respondent filed its second (2nd) quarter
2018 Expense Report (November 15,
2018).
4. Respondent agrees to pay the sum of $10,000.00 in
settlement of this matter to be paid as follows:
a. In regard to Respondent's failure to file a timely
second (2nd) quarter 2018 expense report, and
Keystone Integrated Care, 18 -012 -L
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pursuant to Section 13A09 c)(1) of the Lobbying
Disclosure Law, 65 Pa. S. § 13A09(c)(1),
Respondent agrees to pay an administrative
penalty in the amount of $50.00 per day for the
first ten days, $100.00 per day for each day after
the first ten late days through the 20th late day,
$200.00 per day for the next 7 days, and $88.75
for the remaining 80 late days during the
delinquent period as outlined above for a total
amount of $10,000.00, which shall be made
payable to the Commonwealth of Pennsylvania
and forwarded to the Pennsylvania State Ethics
Commission within 30 days of the adjudication in
this matter.
5. The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter, impose no
further sanctions, and make no specific recommendations to
any law enforcement or other authority to take action in this
matter as to either Respondent, or any individual or
representative of Respondent. Such, however, does not
prohibit the Commission from initiating appropriate
enforcement actions in the event of Respondent's failure to
comply with this agreement or the Commission's Order or
cooperating with any other authority who may so choose to
review this matter further.
Consent Agreement, at 1 -2.
In considering the Consent Agreement and Stipulation of Findings, we agree with
the parties that Respondent as a registered principal failed to timely file a quarterly
expense report with the Department of State for the second quarter of 2018 as required by
Section 13A05 of the Lobbying Disclosure Law.
Accordingly, we hold that Respondent as a registered principal failed to timely file a
quarterly expense report with the Department of State for the second quarter of 2018 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 parties have agreed that Respondent was 107 days delinquent in filing its
quarterly expense report for the second quarter of 2018.
As part of the Consent Agreement, Respondent agreed to pay an administrative
penalty in the total amount of $10,000.00 (10 days x $50.00 + 10 days x $100.00 + 7 days
x $200.00 + 80 days x $88.75 = $10,000.00), payable to the Commonwealth of
Pennsylvania and forwarded to this Commission within thirty days of the adjudication in this
matter.
We determine that the Consent Agreement submitted by the parties sets forth a
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances. Accordingly, we approve the Consent
Agreement that has been submitted by the parties.
Keystone Integrated Care, 18 -012 -L
Page 13
This Commission hereby levies one administrative penalty against Respondent
Keystone Integrated Care in the total amount of $10,000.00 for its delinquent quarterly
expense report for the second quarter of 2018, calculated as follows: $50.00 per day for
the first ten days its second quarter 2018 expense report was delinquent, plus $100.00 per
day for the next ten days its second quarter 2018 expense report was delinquent, plus
$200 per day for the next seven days its second quarter 2018 expense report was
delinquent, plus $88.75 per day for the remaining eighty da s its second quarter 2018
+
expense report was delinquent (10 days x $50.00 10 days x 100.00 + 7 days x $200.00
+ 80 days x $88.75 = $10,000.00).
To the extent it has not already done so, Respondent Keystone Integrated Care is
directed to pay the aforesaid administrative penalty in the total amount of $10,000.00 to be
made payable to the Commonwealth of Pennsylvania and forwarded to this Commission by
no later than the thirtieth (30th) day after the mailing date of this adjudication and Order.
Noncompliance will result in the institution of an order enforcement action.
IV. CONCLUSIONS OF LAW:
1. As a principal registered with the Pennsylvania Department of State ( "Department of
State ") under principal registration number "P43637," Keystone Integrated Care 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. Keystone Integrated Care, in its capacity as a principal registered with the
Department of State under principal registration number "P43637," failed to timely
file a quarterly expense report with the Department of State for the second quarter
of 2018 as required by Section 13A05 of the Lobbying Disclosure Law, 65 Pa.C.S. §
13A05.
3. The transgression of the Lobbying Disclosure Law outlined in paragraph 2
immediately above is 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, the imposition of an
administrative penalty in the total amount of $10,000.00 is warranted (10 days x
$50.00 + 10 days x $100.00 + 7 days x $200.00 + 80 days x $88.75 = $10,000.00).
In Re: Keystone Integrated Care, File Docket: 18012 -L
Respondent Date Decided: 517119
Date Mailed: 5115119
ORDER NO. 140 -SL
1. Keystone Integrated Care, in its capacity as a principal registered with the
Pennsylvania Department of State ( "Department of State ") under principal
registration number "P43637," failed to timely file a quarterly expense report with the
Department of State for the second quarter of 2018 as required by Section 13A05 of
Pennsylvania's lobbying disclosure law ( "Lobbying Disclosure Law "), 65 Pa.C.S. §
13A05.
The transgression of the Lobbying Disclosure Law outlined in paragraph 1
immediately above is deemed to be negligent in nature.
Pursuant to Section 13A09(c) of the Lobbying Disclosure Law, 65 Pa.C.S. §
13A09(c), and the Consent Agreement of the parties, this Commission hereby levies
one administrative penalty against Keystone Integrated Care in the total amount of
$10,000.00, calculated as follows: $50.00 per day for the first ten days its second
quarter 2018 expense report was delinquent, plus $100.00 per day for the next ten
clays its second quarter 2018 expense report was delinquent, plus $200 per day for
the next seven days its second quarter 2018 expense report was delinquent, plus
$88.75 per day for the remaining eighty days its second quarter 2018 expense
report was delinquent (10 days x $50.00 + 10 days x $100.00 + 7 days x $200.00 +
80 days x $88.75 = $10,000.00).
4. To the extent it has not already done so, Keystone Integrated Care is ordered to pay
the aforesaid administrative penalty in the total amount of $10,000.00 to be made
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.
5. Noncompliance with Paragraph 4 of this Order will result in the Commission
initiating appropriate enforcement action(s).
BY THE COMMISSION,