RULES AND REGULATIONS
Title 51—PUBLIC OFFICERS
DEPARTMENT OF STATE
[ 51 PA. CODE CH. 53 ]
Biennial Filing Fee
[40 Pa.B. 3825]
[Saturday, July 10, 2010]The Department of State (Department) amends § 53.1 (relating to biennial filing fee) to read as set forth in Annex A. The final-form rulemaking increases the biennial registration fee for individuals and entities required to be registered under 65 Pa.C.S. Chapter 13A (relating to lobbying disclosure) (act) from $100 to $200.
Notice of proposed rulemaking was published at 39 Pa.B. 6049 (October 17, 2009). Publication was followed by a 30-day public comment period. The Department received three comments from the Pennsylvania Association of Government Relations (PAGR), the Pennsylvania Association of Nonprofit Organizations (PANO) and the Pennsylvania Association of Resources: Autism (PAR). On December 16, 2009, the Independent Regulatory Review Commission (IRRC), as part of its review of proposed rulemaking under the Regulatory Review Act (71 P. S. §§ 745.1—745.12), offered comments on the proposed rulemaking. The Department did not receive comments from the Senate and House State Government Committees as part of their review of the proposed rulemaking under the Regulatory Review Act. The comments the Department received described in detail with the Department's response are as follows.
Statutory Authority
Section 13A08(j) of the act (relating to administration) provides that the Department may, by regulation, adjust the filing fee established under section 13A10 of the act (relating to registration fees; fund established; system; regulations) if the Department determines that a higher fee is needed to cover the costs of carrying out the act.
Purpose
The current registration fee of $100 for individuals and entities required to be registered under the act was established under section 13A10(a) of the act. Section 13A08(j) of the act states that the fees may be raised if the Department determines that a higher fee is needed to cover the costs of carrying out the provisions of the act. For fiscal years (FY) 2007-2008, the Department's costs for administering the act totaled $1,054,165.07. For the biennial registration period 2007-2008, the registration fees paid to the Department totaled $234,200. For the FY 2008-2009, the Department's costs were $1,711,318. While the increase in the registration fee will not come close to covering the total costs of administering the act to the Department, it will help to defray some of the costs. In fact, the $200 fee will cover less than half of the Department's costs with the balance being paid from other resources.
Description of Final-Form Rulemaking
The PAGR commented that section 1308(f) of the act requires the Department to publish the adjusted registration fee amounts in the Pennsylvania Bulletin by June 1, 2009, and by June 1 every 2 years thereafter as necessary. The PAGR argues that because the Department published the proposed rulemaking on October 17, 2009, rather than prior to June 1, 2009, the Department is untimely. The PAGR found that ''the next opportunity the Department has to increase the biennial registration fee is on June 1, 2011.''
First, the act only requires the Department to publish the adjusted registration fee amounts by June 1, 2009, and by June 1 every 2 years after, not on June 1. Second, the Department is not raising the fee in 2009. The final-form rulemaking will not go into effect until January 1, 2011. Therefore, in accordance with the act, the Department must publish the proposed regulation adjusting the registration fee by June 1, 2011. By publishing the proposed rulemaking on October 17, 2009, the Department has notified the regulated community of the proposed adjusted registration fee far in advance of June 1, 2011, in accordance with the act. Additionally, the biennial filing fee will be effective on January 1, 2011, because it is the beginning of another biennial registration period.
IRRC commented that the wording of the final-form rulemaking needs to be amended to implement the Department's intent of the regulation being effective on January 1, 2011. To address IRRC's concern, the Department replaced the amount the registration fee of $200 as stated in the proposed rulemaking with the original amount of $100 and added a sentence stating ''[a]s of January 1, 2011, the biennial filing fee will be $200.''
PANO and PAR: Autism both commented that the increase in the biennial registration fee would be burdensome to their nonprofit organizations. Both groups pointed out that they have additional costs associated with registration besides the fee, such as personnel, office, operating and program expenses. In recognition that any increase in costs is not optimal for anyone, the Department only raised the fee $100 for the biennial registration period. The additional fees are necessary so that the Department can defray some of its administration costs. While the regulated community bears the burden of an increased fee, it is of utmost importance that the Department is able to continue administering the act. Additionally, the act does not provide the Department with the authority to treat nonprofit organizations differently from for-profit organizations. Therefore, the biennial registration fee increase must be the same for all organizations.
IRRC also requested that the Department explain why the $200 is the appropriate fee amount and how the $200 fee is consistent with the act. Section 13A08(j) of the act states that the fees may be raised if the Department determines that a higher fee is needed to cover the costs of carrying out the provisions of the act. For the biennial registration period 2007-2008, the registration fees paid to the Department totaled $234,200. For the FY 2008-2009, the Department's costs were $1,711,318. Clearly, the registration fees do not even cover half of the Department's administrative costs. Therefore, the Department, under the act, may raise the fee to help cover the costs of the administration of the act. While the Department could have raised the fee higher to cover its administrative costs, the Department only raised the fee $100 because the Department did not want to overburden registrants by raising the fee any higher at this time. Another $100 for a 2-year registration period does not raise the fee too much, while helping to defray some of the administrative costs to the Department.
Fiscal Impact
Commonwealth
By raising the registration fee to $200, the final-form rulemaking will help the Department defray some of the costs of administering the act.
Local government
Local government will not have expenses associated with this final-form rulemaking. However, if a local government is required to register as a principal, the local government would have the cost of the increased registration fee of $200, and would then be considered to be part of the regulated community.
Private sector
The final-form rulemaking will increase the biennial registration fee for principals, lobbying firms and lobbyists from $100 to $200.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on October 6, 2009, the Department submitted a copy of the notice of proposed rulemaking, published at 39 Pa.B. 6049, to IRRC and to the Senate and House State Government Committees (Committees) for review and comment.
Under section 5(c) of the Regulatory Review Act, IRRC and the Committees were provided with copies of the comments received during the public comment period, as well as other documents when requested. In preparing the final-form rulemaking, the Department has considered all comments from IRRC, the Committees and the public.
Under section 5.1(j.2) of the Regulatory Review Act (71 P. S. § 745.5a(j.2)), on June 2, 2010, the final-form rulemaking was deemed approved by the Committees. Under section 5.1(e) of the Regulatory Review Act, IRRC met on June 3, 2010, and approved the final-form rulemaking.
Contact Persons
Additional information may be obtained by contacting Shauna C. Graves, Assistant Counsel, Department of State, 301 North Office Building, Harrisburg, PA 17120-0029, shgraves@state.pa.us.
Findings
The Department of State finds that:
(1) Public notice of proposed rulemaking was given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations promulgated thereunder in 1 Pa. Code §§ 7.1 and 7.2.
(2) A public comment period was provided as required by law and all comments were considered in drafting this final-form rulemaking.
(3) This amendment to the biennial filing fee regulation is necessary and appropriate for administering and enforcing the authorizing act identified in this preamble.
Order
The Department therefore orders that:
(a) The regulations of the Department, 51 Pa. Code Chapter 53, are amended by amending § 53.1 to read as set forth in Annex A.
(b) The Department shall submit this order and Annex A to the Office of Attorney General for approval as required by law.
(c) The Department shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(d) The regulation takes effect immediately upon publication in the Pennsylvania Bulletin.
BASIL L. MERENDA,
Acting Secretary(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 40 Pa.B. 3471 (June 19, 2010).)
Fiscal Note: Fiscal Note 16-50 remains valid for the final adoption of the subject regulation.
Annex A
TITLE 51. PUBLIC OFFICERS
PART III. LOBBYING DISCLOSURE
CHAPTER 53. REGISTRATION AND TERMINATION § 53.1. Biennial filing fee.
(a) Under section 13A10(a) of the act (relating to registration fees; fund established; system; regulations), a principal, lobbying firm or lobbyist required to be registered under the act shall pay a biennial filing fee of $100 to the Department, made payable to the ''Commonwealth of Pennsylvania.'' As of January 1, 2011, the biennial filing fee will be $200.
(1) The biennial filing fee shall be tendered to the Department with the filing of the principal's, lobbying firm's or lobbyist's first registration statement in each registration period. However, if the Department receives the filing fee within 5 calendar days of the filing of a registration statement, the registration will not be considered delinquent, in compliance with § 51.4 (relating to delinquency).
(2) The biennial filing fee will be a flat fee for the registration period in which paid. A registrant will not be required to pay more than one biennial filing fee in any given biennial registration period, unless a registrant terminates and attempts to reregister during the same biennial registration period.
(3) A separate biennial filing fee shall be paid for each principal, lobbying firm or lobbyist required to be registered, even if employed by a firm, association, corporation, partnership, business trust or business entity that is also required to register and that has paid or will pay the fee.
(4) The biennial filing fee is nonrefundable and nontransferable.
(5) Filing fees expire at the end of each registration period, regardless of when paid.
(b) The failure to pay a biennial filing fee as required by the act and this section will constitute a failure to register as required by the act.
(c) Money received from biennial filing fees will be deposited in the Fund.
[Pa.B. Doc. No. 10-1245. Filed for public inspection July 9, 2010, 9:00 a.m.]
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