PROPOSED RULEMAKING
LOBBYING DISCLOSURE REGULATIONS COMMITTEE
[51 PA. CODE CHS. 31, 33, 35, 37, 39, 41, 43, 45 51, 53, 55, 57, 59, 61, 63 AND 65]
Lobbying Disclosure
[38 Pa.B. 435]
[Saturday, January 19, 2008]The Lobbying Disclosure Regulinions Committee (Committee) proposes to amend 51 Pa. Code by deleting Part II Chapters 31, 33, 35, 37, 41, 43 and 45 and by adding Part III, Chapters 51, 53, 55, 57, 59, 61, 63 and 65 as required by the act of November 1, 2006 (P. L. 1213, No. 134) (act) 65 Pa.C.S. Chapter 13A (relating to lobbying disclosure). The act provided for a new lobbying disclosure law, and repealed the act of October 15, 1998 (P. L. 729, No. 93), known as the Lobbying Disclosure Act, 65 Pa.C.S. Chapter 13. Section 13A10(d) of the act (relating to registration fees; fund established; system; regulations), requires comprehensive regulations to be promulgated by a committee comprised of the Attorney General, who is designated as the Chairperson of the Committee, the Chairperson of the State Ethics Commission (Commission), the Chief Counsel of the Disciplinary Board of the Supreme Court of Pennsylvania (Board), the Secretary of the Commonwealth, an individual appointed by the President Pro Tempore of the Senate, an individual appointed by the Minority Leader of the Senate, an individual appointed by the Speaker of the House of Representatives, an individual appointed by the Minority Leader of the House of Representatives, or their designees, and a lobbyist appointed by the Governor. The act also sets forth other requirements, which are also addressed in the proposed rulemaking.
Purpose
This proposed rulemaking sets forth regulations to establish, implement and administer a system for lobbying disclosure, in accordance with section 13A10(d) of the act, in addition to other requirements contained in the act.
Description of Proposed Amendments
A description of the proposed rulemaking appears as follows.
Chapter 51. General Provisions
The Committee proposes to adopt Chapter 51 (relating to general provisions) to set forth 12 sections which include general provisions regarding: definitions; filing deadlines to fall on Commonwealth business days; registration periods and reporting periods; delinquency; deficiency; biennial review of exemption threshold and reporting threshold; forms, records and Department of State (Department) publications; amended filings; signing and designation of certain filings; electronic filing; enforcement of commission orders; parent corporations and subsidiaries.
Section 51.1. Definitions.
Section 13A03 of the act provides definitions for words and phrases used in the act. The Committee proposes to add to some definitions as defined under the act and add other definitions as follows:
''Administrative action''--For the first time, the procurement of supplies, services and construction under 62 Pa.C.S. (relating to procurement) falls within administrative action for lobbying disclosure. Subparagraphs (i)--(v) of this definition come from section 13A03 of the act (relating to definitions). In subparagraph (vi), the Committee added language to both the definitions of ''administrative action'' and ''legislative action'' to clarify the statutory intent that lobbying would include communication on grants, the release of funds in the capital budget, loans and investment of funds.
''Affiliated Political Action Committee''--In subparagraph (i), the Committee proposes to reformat the definition. In subparagraph (ii), the Committee proposes to clarify that the term does not include a Federal political action committee registered only with the Federal Election Commission and is not required to register in this Commonwealth. The Committee recommends that the Federal Election Campaign Act of 1971 (2 U.S.C. § 453(a)) preempts State laws regarding registration, reporting and compliance for Federal candidates and committees.
''Agency''--The Committee clarifies that an ''independent agency'' is an agency included in the term. The Committee discussed this issue and resolved it by applying Article IV, Section 1 of the Pennsylvania Constitution, 42 Pa.C.S. § 102 (relating to definitions) and the case of Ford v. Philadelphia Housing Authority, 879 A.2d 162, 164 (Pa. 2005) (''A Commonwealth agency is any executive or independent agency and includes entities such as commissions, authorities, boards, and other agencies of the commonwealth government.'') to conclude that the definition of ''agency'' and the phrase ''the Executive Department of the Commonwealth'' includes an ''independent agency.'' The Committee also proposes to reformat the definition to clarify the legislative intent.
''Amendment''--The Committee clarifies that an amendment, rather than a notice of termination, is used to make changes to any filing, which includes a registration statement, a quarterly expense report, a statement of limited knowledge or a notice of termination.
''Anything of value''--The Committee proposes to add a definition for ''anything of value'' to clarify what a registrant must report under section 13A05 of the act (relating to reporting).
''Association''--The Committee adds a definition for ''association'' because the term is used in the definitions of ''lobbyist'' and ''principal'' in section 13A03 of the act.
''Audit contract period''--The definition for ''audit contract period'' means a time span of 2 years beginning each odd-numbered year. The Committee reasoned that a term was needed to describe the contract period for auditors as described under section 13A08(f)(1) of the act (relating to administration).
''Candidate''--The Committee adds a definition for ''candidate'' which limits the term to candidates for State office because section 403(a) of the Federal Election Campaign Act of 1971 preempts state laws regarding registration, reporting and compliance for Federal candidates and political committees.
''Candidate political committee''--The Committee proposes to add a definition for ''candidate political committee'' due to the inclusion of the phrase in section 13A07(a) of the act (relating to prohibited activities). This is also consistent with the way in which the Department has stated on its instructions of the Lobbying Registration Statement: ''List all political committees of candidates for which the lobbyist is an officer, including both a candidate's authorized political committee and a candidate's political action committee.''
''Child''--The Committee proposes to define the word ''child'' because it is used in the definition of ''immediate family'' in section 13A03 of the act.
''Commonwealth business day''--The Statutory Construction Act at 1 Pa.C.S. § 1908 (relating to computation of time), provides that in determining time in statutes, whenever the last day of a deadline falls on a Saturday, Sunday or holiday, that day ''shall be omitted from the computation of time.'' Furthermore, the Statutory Construction Act at 1 Pa.C.S. § 1991 (relating to definitions) defines ''day'' as ''[t]he time from midnight to the next midnight.'' Because there is no definition of business day in the act, the Committee proposes to use ''Commonwealth Business Day'' throughout the regulations.
''Complaint''--The Committee proposes a definition to clarify its meaning as it is used in the act and the regulations.
''Conflict of interest''--This language closely tracks Rule 1.7 of the Pennsylvania Supreme Court's Rules of Professional Conduct.
''Direct communication''--This proposed language includes personnel expenses and office expenses and exclude gifts, hospitality, transportation and lodging from the definition of ''direct communication.'' The Committee reasoned that the proposed language would clarify what expenses should be reported as direct communication.
''Docket''--The Committee proposes to clarify the meaning of this term because it is used throughout the regulations.
''Effort to influence legislative action or administrative action''--The Committee decided to define this term because it is used in section 13A03 of the act in the definition of lobbying. The Committee discussed this definition and the one for ''Engaging a lobbyist'' and reasoned that the two definitions should be consistent and should include lobbying on behalf of a principal for economic consideration. The Committee proposes that lobbying includes paying a lobbyist a retainer, even if that lobbyist does not make direct or indirect communications. A principal hiring a lobbyist not to make any direct or indirect communications is an effort to influence legislative action or administrative action because it is furthering the principal's intent to influence legislative or administrative action or the lack thereof. By hiring a lobbyist to not make any direct or indirect communications, a principal could prevent that lobbyist from working for another principal with opposing views. Also the committee proposes that this definition should include monitoring legislation, legislative action or administrative action.
''Employee''--The Committee clarifies the meaning of this term as it is used in the act and the regulations. The Committee utilized the Internal Revenue Code, Black's Law Dictionary and the Pennsylvania worker's compensation cases of Triangle Bldg. Ctr. v. W.C.A.B. (Linch), 560 Pa. 540, 553 (Pa. 2000) (quoting Worker's Compensation Act, 77 P. S. § 22); and Mature v. Angelo, 373 Pa. 593, 596 (1953) to arrive at the proposed definition.
''Engaging a lobbyist''--The Committee proposes to define this term to clarify its meaning because it is used throughout the regulations. The Committee discussed this definition and the one for ''Effort to influence legislative action or administrative action,'' and reasoned that the two definitions should be consistent and should include lobbying on behalf of a principal for economic consideration, as discussed previously.
''Engaging in lobbying''--The Committee defines this term to clarify its meaning because it is used throughout the regulations as well as in section 13A03(b)(1)(vii) of the act.
''Entity''--The Committee proposes a definition to clarify its meaning as it is used in the act and the regulations.
''Filed''--The Committee clarifies the meaning of this term, which is used throughout the act and the regulations.
''Intentional''--The Committee proposes a definition to clarify its meaning as it is used in the act and the regulations.
''Legislation''--The Committee proposes language to include legislation that the Governor's office drafts which may or may not become legislation and legislation pending or proposed by any State official or employee.
''Lobbying''--The Committee proposes language to give examples of what the term includes.
''Lobbyist''--The Committee proposes language to add ''association, corporation, partnership, business trust or other entity'' to clearly include groups which are lobbyists because they engage in lobbying on behalf of a principal for economic consideration.
''Marketplace transaction''--The Committee proposes a definition to clarify its meaning as it is used in the regulations at § 55.1(k)(3) and (4) (relating to quarterly expense reports). Furthermore, the term is used in the Committee's Interim Guidelines for Accounting and Reporting. In both the regulations and the Guidelines, the Committee reasoned that this term was necessary to clarify how registrants should uniformly report the value of goods and services provided to State officials and employees. The Committee drafted the definitions of the goods and services from the definitions of terms ''anything of value'' and ''usual and normal charge for goods and services'' found in the Federal Election Commission regulations at 11 CFR 100.52(d)(1) and (2) (relating to gift subscription, loan, advances of deposit of money).
''Negligence''--The Committee defines this term to clarify its meaning as it is used in the act and in the regulations. The Committee derived this definition from the case of Martin v. Evans, 551 Pa. 496, 502, 711 A.2d 458, 461 (1998) (quoting Lanni v. Pa R. Co., 371 Pa. 106, 88 A.2d 887 (1952), and Pa. SSJI (Civ) 3.01).
''Person''--The Committee proposes a definition to clarify its meaning as it is used in the act and in the regulations.
''Political subdivision''--The Committee clarifies the meaning of this term, which is used in the act and in the regulations.
''Reception''--The Committee proposes a definition to clarify its meaning as it is used in the act and in the regulations. The term is used in section 13A05(b)(3)(iii) of the act (relating to reporting) as a cost not to be included as a hospitality expense if the State official or employee attends in connection with public office or employment. The Committee reasoned that there may be confusion as to what constitutes a reception. Section 13A05(b)(3)(iii) of the act informs a registrant that the amount spent on a reception does not count as part of the threshold amount in excess of $650, which if reached, the registrant shall send written notice to the State official or employee as required under section 13A05(b)(3)(iv) of the act. However, a registrant is still required to report the cost of the reception as costs for hospitality given to or provided to State officials or employees as required under section 13A05(b)(2)(i) of the act.
''Respondent''--The Committee proposes a definition to clarify its meaning as it is used in the act and in the regulations.
''Service (of official papers)''--The Committee proposes to clarify the meaning of this term as it is used in the act and in the regulations.
''Sua sponte''--The Committee proposes a definition to clarify its meaning as it is used in the act and in the regulations.
''Termination''--The Committee proposes a definition to clarify its meaning as it is used in the act and in the regulations. A notice of termination should not be used if the intent is only to change information on a registration or a report. If a registrant's intent is only to change information on a filing, by adding or deleting information, the registrant should use an amendment. In contrast, a registrant should terminate if the registrant no longer intends to engage in lobbying.
''Total resources''--The Committee proposes a definition to clarify the meaning of these terms as they are used in section 13A05(b)(5) of the act and § 55.1(g)(5).
''Transportation and lodging or hospitality received in connection with public office or employment''--The Committee proposes to clarify the meaning of this term as it is used in the act and in the regulations.
Section 51.2. Filing deadlines to fall on Commonwealth business days.
Section 13A04(a) of the act (relating to registration) provides the deadline for filing a registration and section 13A05(a) of the act provides the deadline for the filing of a quarterly expense report with the Department of State (Department). In § 51.2, the Committee proposes that the filing deadlines for registration, reporting and any other official paper shall fall on a Commonwealth business day as defined in § 51.1. The Committee reasoned that the deadline should fall on the next day that the Commonwealth offices are open if the literal statutory deadline falls on a weekend or holiday or another day that the Department or Commission offices are closed or close early.
Section 51.3. Registration periods and reporting periods.
Section 13A04 of the act provides for biennial registration. In § 51.3, the Committee proposes that the registration period begins on January 1 of each odd numbered year. The Committee reasoned that clarification was needed so registrants knew when the registration and reporting periods begin.
Section 51.4. Delinquency.
Section 13A04 of the act provides that a lobbyist, lobbying firm or a principal shall register with the Department within 10 days of acting in any capacity as a lobbyist, lobbying firm or a principal. Section 13A05 of the act provides that quarterly expense reports are to be filed with the Department no later than 30 days after the last day of the quarter. In § 51.4(a) and (b), the Committee proposes to add language to inform registrants when a registration statement or report is considered delinquent and constitutes a failure to register as required by the act. The Committee, in § 51.4(a)(1), proposes that hard copy filings must be received at 5 p.m. in the office and from 5 p.m. until 12 a.m. midnight, hard copy filings may be filed with the Department's designee. The Department has typically used the Capital Police as a designee after 5 p.m. on the day that filings are due. As the Committee proposes, the Department will note its designee and the appropriate filing procedures in its publications or on its website.
In § 51.4(c), the Committee proposes a 5-day grace period for receiving the required photo and filing fee if a registrant registers electronically. The Committee reasoned that as long as the registrant registers electronically by the deadline and the photograph and the fee are received within 5 Commonwealth business days, the registrant should not be considered delinquent.
Section 51.5. Deficiency.
Section 13A04 of the act provides for the registration requirements. Section 13A05 of the act provides for the reporting requirements. In § 51.5(a)(1)--(5), the Committee proposes language which lists ways in which a registration or report can be deficient. In § 51.5(b)--(d), the Committee proposes language that a deficient filing constitutes a failure to meet registration or reporting, or both, requirements. In § 51.5(e), the Committee proposes language that a registration statement, expense report or notice of termination continues to be deficient until it is amended. The Committee reasoned that the proposed added language clarifies when a filing will be deficient and how to cure the deficiency by filing an amendment.
Section 51.6. Biennial review of exemption threshold and reporting threshold.
Section 13A08(j) of the act (relating to administration) provides for biennial review of the threshold for registration and reporting by the Department. Section 13A08(j) of the act also provides for biennial review of the filing fee. In § 51.6(c), the Committee proposes that the change to the thresholds will not be effective until the beginning of a calendar quarter. The Committee reasoned that clarification was needed for both registrants and the administrative agencies as to when a change in thresholds would go into effect.
Section 51.7. Forms, records and Department publications.
Section 13A08(b) of the act provides that the Department will prescribe registration and reporting forms. In § 51.7(a), the Committee proposes to add language on where the forms can be obtained. The Committee reasoned that it should be clear to registrants where the forms are available. Section 13A08(d) of the act requires the Department to publish an annual report on lobbying activities in this Commonwealth. In § 51.7(e), the Committee proposes that the annual report and directory be published in a searchable electronic format. The Committee reasoned that the added language informs registrants that the directory and annual reports are also available in a searchable electronic format.
Section 51.8. Amended filings.
Section 13A04(d) of the act provides for amended registrations. In § 51.8(c), the Committee proposes that registrants shall complete only those portions of their registration statements and quarterly expense reports that need to be amended in addition to the identification of the registrant. The Committee reasoned that a registrant should only have to file the information that has been changed with the identification of the registrant.
Section 51.9. Signing and designation of certain filings.
Section 13A08(b) of the act requires that registration and reporting forms shall be signed under oath or equivalent information. In § 51.9(b), the Committee proposes that a registrant may designate another individual or firm to complete any of its filings if the registrant amends its registration statement. The Committee reasoned that lobbyists, lobbying firms and principals often designate third parties to prepare forms for filing, and the proposed language would allow for the designated third parties to file the necessary forms.
Section 51.10. Electronic filing.
Section 13A10 of the act requires the Department to implement a computerized filing system. In § 51.10, the Committee proposes that registrants may file electronically and use an electronic signature that will have the same force and effect as a manual signature. The Committee reasoned that since an electronic signature has the same force and effect as a manual signature, forms filed with an electronic signature should be considered as signed under oath or equivalent information as required under section 13A08(b) of the act (relating to administration).
Section 51.11. Enforcement of Commission orders.
In section 13A09 of the act, the Commission can levy administrative penalties and may prohibit a person from lobbying for economic consideration for up to 5 years. In § 51.12, the Committee proposes the Commission through its staff may take appropriate action to enforce its orders. The Committee reasoned that registrants ought to be aware that the orders of the Commission will be enforced.
Section 51.12. Parent corporations and subsidiaries.
Section 13A04 of the act requires registration and section 13A05 of the act requires reporting. In § 51.12, the Committee proposes that a parent corporation and its subsidiaries may register and report under the act on a consolidated basis if they meet the eligibility standards of the Internal Revenue Service for filing a consolidated corporate tax return. The Committee reasoned that if a parent corporation and its subsidiaries can file on a consolidated basis with the Internal Revenue Service, it should be allowed to do so under the act.
Chapter 53. Registration and Termination
The Committee proposes to adopt Chapter 53 to set forth seven sections which include general provisions regarding the biennial filing fee; principal registration; lobbying firm registration; lobbyist registration; amended registration statements; termination; and public inspection and copying.
Section 53.1. Biennial filing fee.
Section 13A04 of the act, requires lobbyists, lobbying firms and principals, unless they are excluded under section 13A06 of the act (relating to exemption from registration and reporting), to register within 10 days of acting in their capacity as lobbyists, lobbying firms or principals. Section 13A10(a) of the act provides that at the time of registration, persons required to be registered shall pay a biennial registration fee of $100 to the Department of State (Department), which will be deposited into the Lobbying Disclosure Fund as a special fund in the State Treasury, as required by section 13A10(b)(1) and (2). Because a lobbyist, lobbying firm or principal can register online with the Department, and because the Department does not yet have online payment of filing fees, the Committee proposes at § 53.1(a)(1) that a registrant may send the filing fee to the Department within 5 Commonwealth business days of the date of filing, and the filing would be considered timely.
Section 53.2. Principal registration.
Section 13A04(b)(1) of the act contains the filing requirements for a principal's registration statement. In reviewing § 53.2(b)(3) on July 19, 2007, when the Committee discussed the requirement at section 13A04(b)(1) of the act, which would provide that the principal list the ''name and permanent business address of each individual who will for economic consideration engage in lobbying on behalf of the principal or lobbying firm,'' it also considered the exemptions for registration and reporting at section 13A06 of the act (relating to exemption form registration and reporting). The Committee reasoned that it was not logical to require principals to list all employees or contract lobbyists hired by a principal as lobbyists or lobbying firms if those same individuals or firms are exempt from registration and reporting under section 13A06 of the act. In applying the rules of statutory construction, the Committee decided to read these different statutory provisions in sections 13A04 and 13A06 together, in pari materia, in accordance with 1 Pa.C.S. § 1932 (relating to statutes in pari materia). Furthermore, the Committee reasoned that the General Assembly did not intend a result that is absurd, as provided at 1 Pa.C.S. § 1922(1) (relating to presumptions in ascertaining legislative intent), and that it would be absurd to require a principal to list an employee or contract lobbyist on its registration statement if that individual did not qualify as a ''lobbyist'' due to an exemption at section 13A06 of the act.
Section 53.3. Lobbying firm registration.
Section 13A04(b)(1) and (2) of the act contains the filing requirements for a lobbying firm's registration statement. Because the prior Lobbying Disclosure Act (Act 93 of 1998) did not include lobbying firms, the Committee created new language for this section that tracks the requirements of the act. However, the Committee applied the same concept in § 53.3(a) that it had used with principals in § 53.2(a) and concluded that lobbying firms that were not exempt under section 13A06 of the act shall register with the Department.
Section 53.4. Lobbyist registration.
Section 13A04(c) of the act contains the filing requirements for lobbyists filing a registration statement. As in § 53.2(a), the Committee proposes to retain the language from the previous regulation at § 33.3(a) (relating to lobbyist registration), which provided that lobbyists that were not exempt must register.
Section 13A04(c)(5) of the act requires all lobbyists who register to include a recent photograph. Because the Committee allows registrants to submit their filing fee within 5 Commonwealth business days of filing a registration statement, the Committee proposes that lobbyists be allowed the same time frame to submit their photograph.
In § 53.4(b)(6), the Committee proposes to include regulations that comply with a new requirement in section 13A04(c)(9) of the act, which provides that a lobbyist who is an officer for a candidate's political committee shall disclose on the lobbyist's registration statement the name, registration number and acronym of the candidate's political committee. The Committee proposes to clarify that this requirement applies only to non-Federal candidates because section 403(a) of the Federal Election Campaign Act of 1971 and the Federal Election Commission regulation at 11 CFR 108.7 (relating to effect on State law (2 U.S.C. 453)) provides that Federal laws preempt state laws regarding registration, reporting and compliance for Federal candidates and political committees. Finally, the disclosure requirement at § 53.4(b)(6) is necessary because section 13A07(a) of the act (relating to prohibited activities) prohibits a lobbyist from serving as a treasurer or other officer (that is, chairperson) for a candidate's political committee or a candidate's political action committee if the candidate is seeking a Statewide office or the office of Senator or Representative in the General Assembly.
Section 53.5. Amended registration statements.
Section 13A04(d) of the act addresses amendments to registration statements and the Committee, in § 53.5(a), followed the statutory directive to require that changes in the information on registration statements require amendments within 14 days. In the definition of amendment in § 51.1, the Committee clarifies that amendments are appropriate when principals employ new lobbying firms or lobbyists and when lobbying firms or lobbyists retain new principals as clients. In § 53.5(c), the Committee proposes to add a provision to allow registrants to amend only those portions of their registration statements that require changes, in addition to the identification of the registrant. This practice is consistent with the Department's procedures with respect to the filing of amendments to campaign finance registration statements and expense reports.
Section 53.6. Termination.
Section 13A04(e)(1) of the act addresses the filing of notices of termination with the Department, and the Department's corresponding responsibility to issue letters terminating registrants in 13A04(e)(2) of the act. The regulations track these requirements in § 53.6(a)--(e) and in § 53.6(g), respectively. Likewise, § 53.6(f) follows the requirement in section 13A04(e)(3) of the act that no lobbying occur after a registrant has filed a notice of termination, while § 53.6(i) would implement the requirement for continued reporting required by section 13A04(e)(4) of the act. Because reporting continues after a registrant's filing of a notice of termination, the Committee proposes to continue the enforcement provisions of the act in § 53.6(h). Without § 53.6(h), registrants could avoid enforcement by filing a notice of termination.
Section 53.7. Public inspection and copying.
Section 13A08(c) of the act (relating to administration) requires the Department to make completed registration statements and notices of termination available for public inspection, provide copies of these documents, and make registration statements available on a publicly accessible website. Section 53.7 not only contains these requirements for registration statements but also for notices of termination.
Chapter 55. Reporting
The Committee proposes to adopt Chapter 55 to set forth four sections which include general provisions regarding: quarterly expense reports; records maintenance, retention and reliability; public inspection and copying; and reliance on documents.
Section 55.1. Quarterly expense reports.
Section 13A05(a) and (b)(4) and (6) of the act, requires the reporting of expenses each quarter by registered principals, and in some cases, by registered lobbyists or lobbying firms, when these expenses exceed $2,500 in a quarterly reporting period, as specified in § 55.1(a). Based on a comment received on August 2 by the Philadelphia Bar Association, the Committee on August 9 decided to clarify that when expenses by principals, lobbyists or lobbying firms together exceed the $2,500 threshold, reporting is required. Also on August 9, the Committee decided to add the language in the second sentence of § 55.1(a) regarding retainers because once a principal pays a retainer to a lobbyist or lobbying firm to represent the principal, the principal is engaging in lobbying as that term is defined in § 51.1. The Committee proposes to add similar language on retainers in § 55.1(g)(3).
In § 55.1(e), when a lobbying firm or lobbyist is required to file a separate expense report as provided at section 13A05(b)(6) of the act, the Committee proposes granting a lobbying firm or lobbyist 30 days to file the separate report from the time that the principal's report was due to provide the lobbyist or lobbying firm with sufficient time to obtain the necessary data and file the report. In addition, the Committee proposes two additional provisions at this subsection: (1) If within 30 days of the due date, a principal amends its quarterly expense report in compliance with § 51.8(c), a lobbyist or lobbying firm need not file a separate quarterly expense report; and (2) The filing of a separate quarterly expense report by a lobbyist or lobbying firm does not relieve a principal of any reporting requirements. The second provision is necessary because section 13A05(a) of the act requires principals to file quarterly expense reports.
Based on testimony provided on August 2 by Kimball & Associates, on August 9, the Committee added the words ''for lobbying'' in § 55.1(g)(5) to clarify that the requirement in section 13A05(b)(5) of the act was meant to apply solely to lobbying and not to the principal's receipts or transactions in the ordinary course of business. Also, the Committee proposes to include in this section the fact that total resources includes dues and grants received by the principal. Thus, a principal that is a lobbying coalition with many members would have to include dues from its members in reporting its resources received of more than 10% from one entity. A principal that is a trade association with many members would have to include dues from its members in reporting its resources received of more than 10% from one entity, when the dues are being paid for lobbying services conducted by the trade association.
In § 55.1(g)(6), the Committee proposes that it is reasonable to exempt from disclosure small gifts, hospitality, transportation and lodging valued at $10 or less provided to State officials or employees or their immediate families. However, when the amount is over $10 to more than one State official or employee, it must be disclosed. Without a reasonable threshold, principals, lobbying firms and lobbyists would be required to report the small amounts that would be of little concern to the public viewing the reports. The gift rules for the United States House of Representatives and Senate have a similar $10 exemption for gifts given to members, officers or employees of the United States House of Representatives and United States Senate.
The Committee proposes in § 55.1(j) to provide details on the itemization of gifts and hospitality, as required by section 13A05(b)(3) of the act and, 65 Pa.C.S. § 1105(b)(6) and (7) (relating to statement of financial interests) (Ethics Act). Specifically in § 55.1(j)(2), the Committee proposes requiring the disclosure of the date and circumstances of a gift and the payment or reimbursement for transportation, lodging or hospitality because this information is necessary for the recipient State official or employee to report to the Commission, as required by section 13A05(b)(3)(iv) of the act. Also, the Committee, in § 55.1(j)(3)(i) and (4)(i), proposes that in addition to disclosing the name and position of the State official or employee, the principal must disclose the governmental body of the State official or employee because inherent in the position is the governmental body of the State official or employee.
At § 55.1(m)(2), the Committee proposes explaining how a lobbyist or individual in a lobbying firm may sign the quarterly expense report of a principal on the principal's behalf, with authorization by the principal on its registration statement. This issue has become increasingly important as more principals from outside this Commonwealth are asking their lobbyists or lobbying firms in this Commonwealth to submit their quarterly expense reports on their behalf.
In listing the ways in which indirect communications may be made in § 55.1(o), the Committee proposes to add automated telephone calls to the list of communications already required by section 13A05(e) of the act because it is a prevalent way of making the indirect communications. Also automated telephone calls are similar to other public outreach efforts as mailings, telephone banks, billboards and print or electronic media advertisements required by section 13A05(e) of the act.
Section 55.2. Records maintenance, retention and availability.
Section 13A05(b)(2.1) of the act, provides that a registrant may use any reasonable method of estimation and allocation in filing an expense report. In applying this provision to recordkeeping, the Committee proposes at § 55.2(a)(3) that records of lobbying activity may be kept under any reasonable accounting basis. The Committee proposes a list of the three prevalent methods of recordkeeping that are included in any reasonable accounting basis: cash basis, accrual basis and modified accrual basis and proposes definitions for these recordkeeping methods.
Likewise, the Committee proposes in § 55.2(a)(6) that a registrant should keep its records on the same accounting basis for the 2-year period covering its registration under the act. If a registrant changes its accounting basis, it should make an internal record of the date of the change and the reason for the change. Although the Committee's proposal is not a requirement, it is recommended so that the registrant's recordkeeping will be consistent for a registration period, in the event that the registrant's records are audited.
The Committee also proposes applying the statutory requirement for any reasonable method of estimation and allocation to methods that a registrant may use to value time spent lobbying in § 55.2(b)(3). The Committee further proposes three possible methods, as long as the method selected is a reasonable method of estimation and allocation. The three possible methods listed in § 55.2(b)(3)(i)--(iii) include: employ a good faith estimate by using any reasonable method of estimation and accounting; keep a record of all of the time spent lobbing; or use the entire fee expended for lobbying.
Section 55.3. Public inspection and copying.
Section 13A08(c) of the act requires the Department to make completed expense reports available for public inspection, provide copies of these documents, and make these expense reports available on a publicly accessible website. Section 55.3 contains these requirements for completed expense reports.
Section 55.4. Reliance on documents.
The previous lobbying law, Act 1998-93, had no enforcement until regulations went into effect. Therefore, the Committee published its Interim Guidelines for Accounting and Reporting on May 30, 2007, to provide guidance to the regulated community until the Committee published final regulations. In its Interim Guidelines, the Committee stated that registrants may use its Interim Guidelines and any updated Interim Guidelines for guidance until the finalization of the regulations, when the Committee will produce a final copy of the Manual of Guidelines for Accounting and Reporting, in compliance with section 13A10(d)(5) of the act. In § 55.4(a), the Committee proposes that registrants who follow the Interim Guidelines or Manual will serve as evidence of the registrant's good faith effort to comply with the act during the time when the Guidelines or Manual are in effect.
In § 55.4(b), the Committee proposes a similar regulation for a registrant's reliance on the forms and instructions published by the Department. Because these forms are required by section 13A08(b) of the act and because the act required that registrants file quarterly expense reports prior to the issuance of any regulations, it is logical that registrants that rely on the forms and instructions should serve as evidence of the registrant's good faith effort to comply with the act.
Chapter 57. Exemptions from registration and reporting.
The Committee proposes to adopt Chapter 57, which includes a general rule and an explanation of how an individual or entity may qualify for an exemption.
Section 57.1. General rule.
Section 13A06 of the act provides various exemptions from registration and reporting for persons and activities that might otherwise fall within the requirements of the act. Whenever an individual or other entity addressed in section 13A06 of the act qualifies for an exemption, that individual or entity is not required to register or report under the act, unless one of the following two conditions occurs. First, the proposed regulation addresses the fact that when a registrant under the act performs an activity that would otherwise be exempt from reporting, the registrant shall include the activity within its report. For example, a lobbyist who prepares testimony for a Committee of the General Assembly, in addition to engaging in other lobbying activities, shall report the preparation of the testimony in his reports. Second, this section recognizes that individuals and entities may lose their exempt status, which will trigger an obligation to register within 10 days. Thereafter, the registrant will need to file appropriate reports for those quarters in which the prior exemption no longer applied.
Section 57.2.
In § 57.2(a), the Committee proposes to clarify and amplify the exemptions at section 13A06 of the act as follows:
(1) The Committee proposes to clarify that participating in an administrative proceeding included more than preparing testimony and testifying before a committee. The Committee determined that preparing comments on regulations and preparing and delivering comments at agency advisory committee meetings are similar to preparing testimony, as exempted at section 13A06(1) of the act. In addition, the Committee proposes to clarify that an individual or entity already registered no longer qualifies for exemptions under this subsection of the regulations.
(2) The Committee clarified that the exemption in section 13A06(2) of the act would not be limited to a specific news medium and noted that the term individual should include employees and independent contractors, also known as ''stringers'' in the industry. The Committee also set forth basic criteria that an individual or entity shall meet to ensure the exemption was not interpreted too broadly.
(3) The exemption in § 57.2(a)(3) required no explanation or expansion.
(4) The exemption in § 57.2(a)(4) required no explanation or expansion.
(5) The exemption in § 57.2(a)(5) required no explanation or expansion.
(6) The exemption in § 57.2(a)(6) required no explanation or expansion.
(7) The exemption in § 57.2(a)(7) represents a combination of the exemptions found in section 13A06(7)--(10) of the act. The Committee clarified that a governmental entity may lobby on its own behalf and neither that nor lobbying by an official/employee of the entity acting in an official capacity would require registration or reporting of their activities under the act. However, a governmental entity would be required to register and report as a principal if it hired other lobbyists or lobbying firms to engage in lobbying on behalf of the governmental entity with respect to those nonexempt lobbying activities assuming the total expenditures for the nonexempt lobbying activities would not bring it under the exemption at section 13A06(6) of the act. See also the following advisory opinions issued by the Commission: 07-1001 and 07-1002.
(8) The Committee proposes in § 57.2(a)(8) to track the exemption at section 13A06(11) of the act to protect the First Amendment constitutional right of the free exercise of religion. However, the Committee clarified that this exemption would not extend to lobbying on issues beyond the free exercise of religion. Lobbying beyond the free exercise of religion could subject an individual who otherwise qualified for this exemption to the registration and reporting requirements of the act.
(9) The Committee tracked the language in section 13A06(12) of the act and proposes, as in other proposed regulations immediately before and after this subsection, that the exemption is limited to the individual's activity covered by the exemption and any additional activity would require the individual to register and report under the act.
(10) In this subsection, the Committee also tracked the language in section 13A06(13) of the act and again proposes that any additional activity would require the individual to register and report under the act.
(11) The Committee not only tracked the language at section 13A06(14) of the act, but also reasoned that the expenditures referenced in the Pennsylvania Election Code are already disclosed to the public.
In § 57.2(b), the Committee proposes to clarify and amplify the exemption at section 13A06(15) of the act to encompass the full scope of vendor activities which occur under 62 Pa.C.S. (relating to Commonwealth Procurement Code).
As mentioned in the preamble to § 51.1, lobbying related to procurement activities is being regulated for the first time in this Commonwealth. After input from the regulated community and the Department of General Services as the Commonwealth's lead purchasing agency, the Committee proposes to recognize and set forth as exempt the various types of vendor activities that routinely occur as part of the full range of procurement methods such as: vendor activities authorized and regulated by the Procurement Code; vendor participation in other open, public forums; and vendor activities authorized by contract. The Committee reasoned that the purpose of the vendor exemption in section 13A06(15) of the act is to distinguish between a vendor's participation in an agency procurement activity authorized and regulated by the Procurement Code and lobbying activity by the vendor or its lobbyist. The proposed list of exempted vendor activities does not provide an exclusive or restrictive list of procurement methods for which vendor participation is exempted.
Therefore, the subsection creates a distinction between: (1) exempted vendor participation in response to Commonwealth-initiated procurement actions; (2) nonexempt, unsolicited vendor activities; and (3) nonexempt vendor activities occurring outside of or not in accordance with the procedures governing an active procurement. The subsection exempts the listed activities only by the vendor, and not by a lobbyist, per the statutory definition.
Chapter 59. Opinions and Advices of Counsel
The Committee proposes to adopt Chapter 59 to set forth three sections which include general provisions regarding: the Ethics Act regulations in Part I as to opinions and advices of counsel; standing requirements; and prospective conduct to be reviewed.
Section 59.1. Ethics Act regulations in Part I as to opinions and advices of counsel.
Section 13A08(a) of the act, provides that the Commission will provide written advice and opinions regarding compliance with the act. Section 59.1(b) relates to section 13A08(a) of the act, which states that a person who acts in good faith based upon the written advice or opinion of the Commission may not be held liable for a violation of the act if the material facts are as stated in the request for an advisory. Section 59.1(c) relates to section 13A09(g)(1) of the act, which states that a respondent's or defendant's reliance on advice or opinions of the Commission constitutes an affirmative defense to an action brought under the act or the Ethics Act. The Committee reasoned that section 13A09(g)(1) should to be cross-referenced for clarity.
Section 59.2. Standing requirements.
Section 13A08(a) of the act provides that the Commission will provide written advice and opinions to a lobbyist, a lobbying firm, a principal, the Department, the Board or a State official or employee, that seeks advice regarding compliance with the act. At § 59.2(b), the Committee proposes to add that a principal or lobbying firm shall have standing to request an advisory regarding the status, duties or activities of its employees. At § 59.2(d), the Committee proposes to add that the Department and the Board will have standing to request an advisory as to questions or issues regarding their respective duties and authority under the act. The Committee reasoned that § 59.2(d) will clarify that the duties and authority of the Department and the Board do not extend to the conduct of a principal, lobbying firm or lobbyist.
Section 59.3. Prospective conduct to be reviewed.
Section 13A08 of the act provides for the Commission to provide written advice and opinions. In § 59.3, the Committee proposes to provide that an advice or opinion will only be issued as to prospective conduct, pertinent to the subject of the request. The Committee reasoned that the proposed language clarifies that advice or opinions will be given only for questions about future conduct, consistent with section 1107 of the Ethics Act (relating to powers and duties of the commission).
Chapter 61. Compliance Audits.
The Committee proposes to adopt Chapter 61 to set forth six sections which include general provisions regarding: lotteries; the scope of compliance audits; audit procedures; audit reports; confidentiality; and the duty of the Department to contract for an audit.
Section 61.1. Lotteries.
Section 13A08(f)(2) of the act, addresses the random selection of 3% of all completed registrations and expense reports filed with the Department for an audit. In § 61.1(b), the Committee proposes that a registrant will not be selected for a random audit in consecutive audit contract periods. The Committee reasoned that it was not the legislative intent for a registrant to have to submit to continuous audits and the proposed language would disallow that from occurring.
Section 61.2. Scope of compliance audits.
Section 13A08(f)(3) of the act addresses how the audits will be conducted and the Committee followed the statutory directive to require that audits will be conducted with generally accepted auditing standards. In § 61.2(b), the Committee reasoned that activities before January 1, 2007, the effective date of the registration and reporting requirements of the act, should not be audited under the act.
Section 61.3. Audit procedures.
Section 13A08(f) of the act contains the requirements for audits of the regulated community. In § 61.3 (a)--(e), the Committee proposes to add language which gives specifics on conducting an audit such as: notifying the registrants selected for audit; the records the audit may include; and the registrant's affirmative duty to cooperate fully in any audit. The Committee reasoned that including specific audit procedures helps to ensure that audits are fair and complete.
Section 61.4. Audit report.
Section 13A08(f)(4) of the act provides for an audit report. In § 61.4(c), the Committee proposes that the independent auditor shall issue the audit report within 1 year of being notified of the selection of the subject of the audit based on Committee discussions that there should be a deadline by which registrants could expect the audit to be completed.
Section 61.5. Confidentiality.
Section 13A08(f)(4) of the act contains a requirement for confidentiality of the audit report and findings subject to an exception that the audit report and findings are to be made available to the Commission if the Commission is investigating an alleged violation of the act involving the audited registration or expense report. Section 13A08(f)(4) of the act further directs that the Commission include the relevant portion of an audit as part of its findings of fact in a Commission order resulting from an investigation arising out of an audit. The Committee reasoned that this statutory language establishes that a Commission investigation may arise out of an audit. In § 61.5, the Committee tracks the statutory requirements of section 13A08(f)(4) of the act.
Chapter 63. Commission Referrals, Investigative Proceedings and Noninvestigative Proceedings.
The Committee proposes to adopt Chapter 63 to set forth seven sections which include general provisions regarding: Ethics Commission (Commission) referrals; Commission proceedings under section 13A07 of the act; late or deficient filings--Commission proceedings under section 13A04 or section 13A05 of the act; noninvestigative process for late or deficient filings; investigative process for late or deficient filings; administrative penalties for late or deficient filings; Commission decisions as to late or deficient filings.
Section 63.1. Commission referrals.
Sections 13A07(d)(8) and (f)(3)(i)--(ii), 13A09(b)(2) and 13A09(h) of the act provide for various discretionary and mandatory referrals by the Commission to the Attorney General or Board. Section 13A07(d)(8) of the act provides that an alleged violation of section 13A07(d) of the act by an attorney-at-law shall be referred to the Board to be investigated, considered and resolved in a manner consistent with the Rules of Professional Conduct. Section 63.1 would track the aforesaid statutory provisions as to referrals. In § 63.1(e), the Committee proposes to clarify that the Office of Attorney General need not await a referral from the Commission before initiating an investigation or prosecution under the Attorney General's own statutory authority. In § 63.1(f), the Committee proposes to clarify that nothing in the act or the regulations will restrict the Board's authority to discipline an attorney-at-law who is acting as a lobbyist or principal. In § 63.1(g), the Committee proposes to clarify that except for a matter under section 13A07(d)(8) of the act, a referral by the Commission or Office of Attorney General to the Board does not preclude the referring agency from also conducting its own enforcement proceedings under the act. The Committee reasoned that further clarification is needed in regards to a referral for an alleged violation by a registrant who is also an attorney-at-law because the prior Lobbying Disclosure Act (Act 93 of 1998, Chapter 13) was declared void based upon its impact upon attorneys.
Section 63.2. Commission proceedings regarding prohibited activities under section 1307-A of the act.
Section 13A07 of the act lists certain activities that are prohibited under the act.
At § 63.2(a)--(e), the Committee proposes language that Commission proceedings regarding prohibited activities under section 13A07 of the act will be conducted in accordance with the procedures in sections 1107 and 1108 of the Ethics Act (relating to powers and duties of the commission; and investigations by commission) and §§ 21.1--21.30 (relating to investigations), to the extent applicable. The Committee reasoned that this approach would satisfy the statutory requirements of section 13A08(g) of the act.
At § 63.2(b), the Commission proposes language referring to the Board's exclusive review pursuant to section 13A07(d)(8) to clarify that the Board has exclusive review over complaints regarding violations of section 13A07(d) by a lobbyist or principal who is also an attorney-at-law.
Section § 63.3. Commission proceedings regarding late or deficient filings.
Section 13A09 of the act provides for Commission proceedings involving alleged failure to register or report as required under the act. In § 63.3(a)(1)--(5), the Committee proposes to clarify how these Commission proceedings may be initiated. The Committee reasoned that it ought to be clear to the regulated community and to the agencies administering the act how these Commission proceedings may be initiated.
In § 63.3(a)(3), the Committee proposes that the Department may refer to the Commission any information arising from an audit which, in the view of the Department, is appropriate for the Commission to consider. Section 13A08(f) of the act states that the Commission may be provided with an audit report and findings if the Commission is investigating an alleged violation of the act involving the audited registration or expense report. However, the same section of the act also states that a Commission investigation may arise out of an audit. Therefore, the Committee found that the common-sense reconciliation of these provisions suggests that the Commission may receive information regarding an audit even if there is no investigation pending.
In § 63.3(b), the Committee proposes that the Commission, through its Executive Director, will initiate either a noninvestigative process as in § 63.4 (relating to noninvestigative process for late or deficient filings) or an investigative process as in § 63.5 (relating to investigative process for late or deficient filings). The Committee reasoned that the Commission ought to be able to determine which process may be used in deciding whether there was negligent failure to register or report based on certain factors such as whether an investigation is needed to fully review the matter. However, in § 63.3(c), the Committee proposes that the Commission must use the investigative process if a referral is made by the Department based on an audit. The Committee reasoned that a referral based on an audit would be complex and an investigation would be needed to fully review the matter.
Section § 63.4. Noninvestigative process for late or deficient filings.
In § 63.4(1)--(23), the Committee proposes a noninvestigative process to determine if a registrant negligently failed to register or report as required by the act. The Committee reasoned that the noninvestigative process for late or deficient filings ought to be clear to the regulated community and to the agencies administering the act.
In § 63.4(1) and (2), the Committee proposes the issuance of a warning notice with an opportunity to cure alleged noncompliance prior to the initiation of formal proceedings through a notice of alleged noncompliance.
In § 63.4(3)--(6), the Committee proposes to provide for the filing of a written answer to a notice of alleged noncompliance.
Neither a warning notice nor a written answer is provided for in section 13A09(a) of the act (relating to penalties). The Committee reasoned that the provision of a warning notice with an opportunity to cure alleged noncompliance prior to the initiation of formal proceedings might resolve matters without a need for formal proceedings. The Committee further reasoned that in the event of formal proceedings, providing for the filing of an answer to a notice of alleged noncompliance would enhance due process.
Section § 63.5. Investigative process for late or deficient filings.
In § 63.5(1)--(4), the Committee proposes an investigative process for determining whether a registrant negligently failed to register or report as required by the act. The Committee reasoned that the investigative process for late or deficient filings should satisfy the statutory requirements of section 13A08(g) of the act.
In § 63.5(5), the Committee proposes to add language clarifying that a person has a duty to comply with a lawfully issued subpoena from the Commonwealth, even if the person is out-of-State under 42 Pa.C.S. § 5322 (relating to the basis of personal jurisdiction over persons outside this Commonwealth). Section 5322(a)(1)(i) of 42 Pa.C.S., (ii) and (iv) gives a tribunal within this Commonwealth the ability to exercise personal jurisdiction over a person who transacts any business with this Commonwealth for the purpose of realizing pecuniary benefit; doing a single act in this Commonwealth for the purpose of accomplishing an object with the intention of initiating a series of such acts; or engaging in any business or profession within this Commonwealth. Also, 42 Pa.C.S. § 5322(a)(9) gives a tribunal in this Commonwealth the ability to exercise personal jurisdiction over a person who makes an application to any government unit for any registration. The Committee reasoned that those provisions of 42 Pa.C.S. § 5322 give any person who is out-of- State a duty to comply with a lawfully issued subpoena from the Commonwealth.
Section 63.6. Administrative penalties for late or deficient filings.
Section 13A09(a)(5), (b)(3) and (c)(1) and (2) of the act provide for an administrative penalty if failure to register or report was negligent. In § 63.6, the Committee proposes that if the Commission finds that there was negligent failure to register or report as required by the act following either the noninvestigative process under § 63.4 or an investigative process under § 63.5, then one or more administrative penalties may be levied. In § 63.6(2) and (3)(i)--(vi), the Committee proposes how such an administrative penalty will be calculated and allows for consideration of aggravating and mitigating factors.
Section 63.7. Commission decisions as to late or deficient filings.
In § 63.7, the Committee proposes that the determination of the Commission will be in the form of a final order with findings and reasons for the adjudication.
Chapter 65. Prohibition Against Lobbying for Economic Consideration as a Sanction.
The Committee proposes to adopt Chapter 65 to set forth two sections which include general provisions regarding: the basis for prohibition against lobbying for economic consideration and procedures for imposing prohibition against lobbying for economic consideration
Section 65.1. Basis for prohibition against lobbying for economic consideration.
Section 13A07(d)(6)(ii), (f)(2)(ii) and (e)(4) of the act, provides for when the Commission may prohibit a lobbyist from lobbying for economic consideration for up to 5 years. In § 65.1(a) and (b), the Committee proposes to add language to inform registrants of violations of the act that could result in the Commission prohibiting a lobbyist or lobbying firm from lobbying for economic consideration for up to 5 years. In § 65.1(c), the Committee proposes to inform respondents of when they shall be deemed to have been notified of noncompliance. In § 65.1(d) and (f), the Committee proposes to add language that informs registrants: of when they shall be deemed to have failed to comply after notice of noncompliance; that prohibition against lobbying for economic consideration will not be imposed unless the registrant has been afforded the opportunity for a hearing; and that at any time prior to a final determination, the Commission has the authority to negotiate settlements and to enter into settlement agreements. The Committee reasoned that it needed to be clear to registrants what violations could result in being prohibited from lobbying for economic consideration. The Committee also reasoned that registrants should be aware that they will be afforded the opportunity for a hearing before a prohibition against lobbying for economic consideration is imposed.
Section 65.2. Procedures for imposing prohibition against lobbying for economic consideration.
Section 13A07(d)(6)(ii), (f)(2)(ii) and 13A09(e)(4) of the act, provide that the Commission may prohibit a lobbyist from lobbying for economic consideration only after an investigation, notice and hearing. In § 65.2(a) and (b), the Committee proposes to provide the procedures the Commission will follow for the imposition of a prohibition against lobbying for economic consideration. In § 65.2(b)(14), the Committee proposes to add language that lists factors that the Commission may consider in determining whether and for how long a prohibition against lobbying for economic consideration is to be imposed upon a respondent. In § 65.2(c), the Committee proposes that if a person is convicted in a criminal proceeding for violation of the act for which the penalty of prohibition against lobbying for economic consideration may be imposed, the conviction will be res judicata. The Committee reasoned that the procedures for imposing a prohibition against lobbying for economic consideration needed to be clear to registrants.
Fiscal Impact and Paperwork Requirements
Fiscal Impact
Commonwealth:
The proposed rulemaking will impose an additional fiscal impact upon the Commonwealth and specifically upon the Office of Attorney General (OAG), the Department, the Commission and the Pennsylvania Supreme Court Disciplinary Board (Board). The OAG costs are derived from personnel, operating and program expenses (which include travel, office furnishings and real estate rental) needed for chairing the Committee and for investigating and prosecuting violations of the act. The Department costs are derived from administrative costs (which include the collection and processing of fees, registrations and reports), personnel and office expenses needed for staffing the Committee and fulfilling its obligations under the proposed rulemaking and the act. The Commission costs are derived from nonrecurring expenses which include new computer workstations and office furniture and recurring expenses such as staffing and travel expenses needed for being a member of the Committee and for conducting investigations and holding hearings related to alleged violations of the act, as well as performing other duties under the act. The Board's expenses are derived from potential cases and the funding will come from attorney registration fees.
Local Government
Local government will not have any expenses associated with these regulations. However, if a local government is required to register as a principal, the local government would have the cost of the registration fee, which is $100, and would then be considered to be part of the regulated community.
Private Sector:
The regulated community will have expenses in the form of a registration fee which is $100.
Paperwork Requirements
Commonwealth:
The proposed rulemaking will change the previous registering and reporting requirements. Because the previous Lobbying Disclosure Act was ruled unconstitutional in 2002 by the Pennsylvania Supreme Court, there were not any requirements for registering and reporting until the act went into effect on January 1, 2007. The proposed rulemaking, in accordance with the act, now requires that all registrations and reports for principals, lobbying firms and lobbyists be filed with the Department.
Local Government:
Local government will not have any paperwork requirements associated with this proposed rulemaking. However, if a local government is required to register as a principal and file expense reports, the local government would have paperwork requirements but would then be considered to be part of the regulated community.
Regulated Community:
The proposed rulemaking, in accordance with the act, requires that all principals, lobbying firms and lobbyists register with and report to the Department.
Effective Date
The regulations will take effect upon publication of the final-form rulemaking in the Pennsylvania Bulletin.
Effective Date
The amendments will take effect upon publication of the final-form rulemaking in the Pennsylvania Bulletin.
Regulatory Review Act Requirements
Under section 5(a) of the Regulatory Review Act (act) (71 P. S. § 745.5(a)), on January 9, 2008, the Committee submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the Senate State Government Committee and the House State Government Committee. A copy of this material is available to the public upon request.
Under section 5(g) of the act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Committee, the General Assembly and the Governor of comments, recommendations or objections raised.
Contact Person
Persons interested in commenting on the proposed rulemaking may contact Louis Lawrence Boyle, Deputy Chief Counsel, Pennsylvania Department of State, 301 North Office Building, Harrisburg, PA 17120-0029 or e-mail at llboyle@state.pa.us. Comments must be received by February 19, 2008.
ROBERT A. MULLE,
ChairpersonFiscal Note: 16-40. No fiscal impact; (8) recommends adoption. The proposed rulemaking will implement Act 134 of 2006 related to lobbying disclosure. Funds have been included in the budget to cover costs not funded by the biennial registration fee.
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