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In Re. Districtl 199C, File Docket: 22-004-L
Respondent Order No. 157-SL
Date Decided: 4/12/23
Date Mailed: 4/14/23
Before: Shelley Y. Simms, Chair
Rhonda Hill Wilson
Paul E. Parsells
David L. Reddecliff
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 sue., 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 Districtl 199C (hereinafter also referred to as
"Respondent") a Notice of Alleged Noncompliance. A Stipulation of Finding's 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,
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. § 13A0I et seq.), failed to timely file
a quarterly expense report pursuant to 65 Pa.C.S. § 13A05 for the fourth (0') quarter of
2021.
11. FINDINGS:
I Respondent, District] 199C ("Respondent"), is 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. § 13A0I et M.
a. Respondent initially registered as a principal with the Department of State on
October 29, 2020 for the registration period January 1, 2019 through December 3 1,
2020.
K Respondent's registration statement indicates that lobbying commenced on July 1,
Districtl199C, 22-004-L
Page 2
2020.
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 "P66452."
C. In filing its principal registration, Respondent identified its registered mailing
address as:
Rohan Wright'
Districtl 199C
1319 Locust Street
Philadelphia, PA 19107
d. On its principal registration, Respondent listed Bellevue Strategies as its lobbying
firm and Mustafa Rashed and Julie Platt (both affiliated with Bellevue Strategies)
as its Lobbyists.
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 rirms.--
1. A principal or lobbying firm required to register
under subsection (a) shall file a single registration
' Listed as the Authorized Representative in Respondent's Principal Registration Statement,
Districtl 199C, 22-004-L
Page 3
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
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. § 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:
Distried 199C, 22-004-L
Page 4
§ 51.3. Registration periods and reporting periods.
a. Registration under section 13A04 of the act (relating to
registration) 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 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:
§ 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 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 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:
(i) The costs for gifts, hospitality, transportation
and lodging given to or provided to State
officials or employees or their immediate
families.
District] 199C, 22-004-L
Page 5
(ii) The costs for direct communication.
(iii) The costs for indirect communication.
(iv) Expenses required to be reported under this
subsection shall be allocated to one of the
three categories listed under this section and
shall not be included in more than one
category.
65 Pa.C.S. § 13Ao5(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
§ 5 5.1(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 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.
65 Pa.C.S. § 13A05(d).
Districtl 199C, 22-004-L
Page 6
9. As a registered principal, Respondent is required to file quarterly expense reports with the
Department of State for all quarters it is registered as a principal; including quarters in
which Respondent's lobbying expenses are $3,000.00 or less.
a. Respondent did not file a fourth (01) quarter 2021 expense report by January 312, 2022.
10. 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),
I L By Warning Notice letter dated April 6, 2022, Respondent was served with notice' in
January 30, 2022 being Sunday.
s Respondent was also emailed by the Investigative Division on May 12, 2022 at the email assigned to their
Registration notifying them that they were facing enforcement for their failure to file their 414 Quarter 2021 expense
report.
District1199C, 22-004-L
Page 7
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 fourth (41h) quarter of 2021.
a. Said Warning Notice was mailed to:
Rohan Wright
District 1199C
1319 Locust Street
Philadelphia, PA 19107
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).
12. Said Warning Notice letter set forth the nature of the alleged noncompliance and the
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 fourth (41h) quarter of 2021
with the Department of State within thirty (30) days from the mailing date of the Warning
Notice letter.
14. The Director of the Bureau of Campaign Finance and Civic Engagement - Department of
State conducted a search of the Department of State's records, and, as of June 16, 2022,
no fourth (4th) quarter of 2021 expense report was found to have been filed with the
Department of State for District1199C.
15. 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. 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 20th
late day, $100 for each late day.
(iii) For each late day after the first 20 late days, $200 for each
late day.
Districtl 199C, 22-004-L
Page 8
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)j. 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 2nd degree. 65 Pa.C.S. §
10A09(e)(1).
e. 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 2°d degree. 65 Pa.C.S. § 13A09(e)(2).
IIL 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 fourth quarter of 2021.
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are set forth above as the Findings of this Commission.
We shall now summarize the relevant facts as contained therein.
Respondent initially registered as a principal with the Department of State on October 29,
2020 for the registration period January 1, 2019, through December 31, 2020. Respondent's
registration statement indicated that lobbying commenced on July 1, 2020. Respondent was
assigned the principal registration number "P66452."
Per the Department of State's website, on July 29, 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 filed
Districtl 199C, 22-004-L
Page 9
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 July 29, 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 fourth quarter of 2021. 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 April 6, 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 fourth quarter of 2021 with the Department of State within
thirty (30) days of the mailing date of the Warning Notice letter.
As of June 16, 2022, no fourth quarter 2021 expense report was found to have been filed
with the Department of State for Districtl 199C.
Per the Department of State's website, on July 11, 2022, Respondent submitted a quarterly
expense report for the fourth quarter of 2021.
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.
The parties' Consent Agreement sets forth a proposed resolution of the allegations as
follows:
The Investigative Division will recommend the following
Districtl I99C, 22-004-L
Page I0
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 seg.), failed to timely
file a Quarterly Expense Report pursuant to 65
Pa.C.S. § 13A05, for the fourth (4"h) quarter of 2021;
b. That the transgressions of the Lobbying Disclosure
Law outlined in paragraph (a) above are deemed
negligent in nature;
4. In settling this matter, Respondent agrees to the following:
a. Regarding Respondent's negligent failure to file a
timely fourth (4th) quarter expense report, and
pursuant to Section 13A09 of the Lobbying
Disclosure Law, 65 Pa. C.S. § 13A09, Respondent
agrees to a three (3) year ban from lobbying and/or
registering as a principal in the Commonwealth of
Pennsylvania.
b. Considering the circumstances in the attached
stipulation of findings and the ban in paragraph a,
Respondent will not be required to pay a monetary
penalty.
5. The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter; and make no
specific recommendations to any law enforcements or other
authority to take action in this matter. 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 quarterly expense reports with
the Department of State for the fourth quarter of 2021 as required by Section 13A05 of the
Lobbying Disclosure Law.
Districtl 199C, 22-004-L
Page 11
Accordingly, we hold that Respondent, as a registered principal, failed to timely file
quarterly expense reports with the Department of State for the fourth quarter of 2021 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.
As part of the Consent Agreement, Respondent agreed to a three (3) year ban from lobbying
and/or registering as a principal in the Commonwealth of Pennsylvania.
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.
Respondent District1199C is banned from lobbying and registering as a principal for three
years in the Commonwealth of Pennsylvania.
Noncompliance will result in the institution of an order enforcement action.
IV. CONCLUSIONS OF LAW:
As a principal registered with the Pennsylvania Department of State ("Department of
State") under principal registration number "P66452," Districtl 199C 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. District1199C, in its capacity as a principal registered with the Department of State under
principal registration number "P66452," failed to timely file a quarterly expense report
with the Department of State for the fourth quarter of 2021 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 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, the imposition of a three year ban
on lobbying and registering as a principal in the Commonwealth of Pennsylvania, are
warranted.
In Re: Districtl 199C, File Docket: 22-004-L
Respondent Date Decided: 4/12/23
Date Mailed: 4/14/23
ORDER NO. 157-SL
1. Districtl 199C, in its capacity as a principal registered with the Pennsylvania Department
of State ("Department of State") under principal registration number "P66452," failed to
timely file a quarterly expense report with the Department of State for the fourth quarter of
2021 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.
Respondent Districtl 199C is banned from lobbying and registering as a principal in the
Commonwealth of Pennsylvania for a period of three years.
4. Noncompliance with Paragraph 3 of this Order will result in the Commission initiating
appropriate enforcement action(s).
BY THE COMMISSION,
Shelley Y. S s, Chair