227.11 Extent to which chapter confers rule-making authority.
(2) Rule-making authority is expressly conferred on an agency as follows:
(a) Each agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute, but a rule is not valid if the rule exceeds the bounds of correct interpretation.
Explanation of agency authority: The Ethics Commission is required to prescribe, by rule, categories of civil offenses which the Commission will agree to compromise and settle without a formal investigation upon payment of specified amounts by the alleged offender. The Commission may only settle alleged offenses, which in the opinion of the Commission, constitute a minor violation, a violation caused by excusable neglect, or which for other good cause shown is not in the public interest to prosecute.
D.
Plain language analysis: The rule would set forth settlement schedules in the following two additional categories: (1) unauthorized lobbying, and (2) late payment of lobbying fees. The amendments to the rule would clarify the word “days” in prior settlement schedules throughout the rule as either calendar or business days.E.
Summary of, and comparison with, existing or proposed federal regulations: The Lobbying Disclosure Act requires the employer of lobbyists (in-house or lobbying firms) to register the client for which the registrant has an employee that meets the federal definition of a lobbyist, provided they have exceeded the de minimis requirements for registration. The registration is filed with the Secretary of the Senate and the Clerk of the House of Representatives within forty-five days after a lobbyist makes a first contact, or is retained to do so, whichever is earlier. 2 U.S.C. § 1603(a)(1). There are no fees associated with registration. Whoever knowingly fails to (1) correct a defective filing within 60 days after notice of defect by Secretary of the Senate or Clerk of the House; or (2) to comply with any other provision of the Lobbying Disclosure Act, may be subject to a civil fine of not more than $200,000. Whoever knowingly and corruptly fails to comply with the Act may be imprisoned for not more than five years or fined, or both. 2 U.S.C. § 1606.
F.
Comparison with similar rules in adjacent states: Illinois
Both lobbyists and entities that employ lobbyists must register with the Secretary of State prior to engaging in any lobbying activity, or within two working days of an agreement to conduct any lobbying activity. 25 Ill. Comp. Stat. §§ 170/3 (a). There is a $300 registration fee due annually. 25 Ill. Comp. Stat. §§ 170/5 (f). Any person who violates the Lobbyist Registration Act shall be fined not more than $10,000 for each violation, with every day that a report or registration is late counting as a separate violation. 25 Ill. Comp. Stat. §§ 170/10 (a). Additionally, any person convicted of violating the Lobbyist Registration Act is prohibited from lobbying for three years from the date of conviction. 25 Ill. Comp. Stat. §§ 170/10 (b).
Iowa
Iowa only requires registration of lobbyists that will be lobbying the executive branch. All executive branch lobbyists, regardless of compensation, must register with the chief clerk of the house of representatives or the secretary of the senate prior to any lobbying activity. Iowa Admin. Code. r. 351—8.7(1). There are no required registration fees. Failure to register timely may result in up at a $500 civil penalty. Iowa Admin. Code. r. 351—9.4(7).
Michigan
Lobbyists must register with the secretary of state’s office no more than fifteen days after becoming a lobbyist. Mich. Comp. Laws § 4.417(1). Persons that meet the definition of a lobbyist agent must register within three calendar days of becoming a lobbyist agent. Mich. Comp. Laws § 4.417(2). There are no fees for registering as a lobbyist or lobbyist agent in Michigan. A lobbyist or lobbyist agent that fails to register timely shall pay a late registration fee of $10 for each day the person is not registered and remains in violation, not to exceed $300. A person that fails to register within thirty days is guilty of a misdemeanor, and shall be fined not more than $1,000. Mich. Comp. Laws § 4.417(3). Minnesota
There are no registration fees for registering as a lobbyist in Minnesota. Lobbyists must register with the Minnesota Campaign Finance and Public Disclosure Board within five days of meeting the definition of a lobbyist, or being engaged by a new individual, association, political subdivision, or public higher education system. Minn. Stat. § 10A.03, subd. 1. Lobbyists accrue a late fee of $25 per day the registration is late ($1,000 maximum). The Board must send a certified mail notice within ten business days after the registration was due. A lobbyist that fails to file a registration within seven days of the certified mail notice being sent is subject to a civil penalty of up to $1,000. Minn. Stat. § 10A.03, subd. 5.
G.
Summary of factual data and analytical methodologies: The Commission and its staff examined the history of instances of unauthorized lobbying and late payment of lobbying fees to establish reasonable settlement amounts sufficient to deter violations while still allowing for escalation in the case of repeat offenders or more significant delays, all while staying within the limits established by law.H.
Analysis and supporting documentation used to determine effect on small businesses: N/AI.
Effect on small business: N/AJ.
Agency contact person:David P. Buerger
(608) 267-0951
K.
Place where comments are to be submitted and deadline for submission:Written comments on the proposed rule will be accepted and receive consideration if they are received by August 17, 2020. Written comments should be addressed by mail to: David Buerger, P.O. Box 7125, Madison, WI 53707-7125; or by email to: eth.rulecomments@wi.gov. Fiscal Estimate: The creation of this rule does not affect business.
Initial Regulatory Flexibility Analysis: The creation of this rule has no fiscal effect.
Text of Rule
TEXT OF RULE
SECTION 1. ETH 26.02 (1) (a) is amended to read:
(a) If the commission receives a continuing or September report within 30 calendar days after the due date for that report, the commission may issue a written warning to the registrant.
SECTION 2. ETH 26.02 (1) (b) (intro.) is amended to read:
(b) If the commission receives a continuing or September report within 31 to 60 calendar days after the due date for that report, the commission may extend a settlement offer to the registrant as follows:
SECTION 3. ETH 26.02 (1) (c) (intro.) is amended to read:
(c) If the commission receives a continuing or September report within 61 to 90 calendar days after the due date for that report, the commission may extend a settlement offer to the registrant as follows:
SECTION 4. ETH 26.02 (1) (d) (intro.) is amended to read:
(d) If the commission receives a continuing or September report within 91 to 120 calendar days after the due date for that report, the commission may extend a settlement offer to the registrant as follows:
SECTION 5. ETH 26.02 (1) (e) is amended to read:
(e) If the commission receives a continuing or September report more than 120 calendar days after the due date for that report, the commission may extend a settlement offer of $500.
SECTION 6. ETH 26.02 (2) (a) to (i) are amended to read:
(a) If the commission receives a preprimary, preelection, or post-election report one calendar day after the due date for that report, the commission may extend a settlement offer of $100.
(b) If the commission receives a preprimary, preelection, or post-election report 2 calendar days after the due date for that report, the commission may extend a settlement offer of $150.
(c) If the commission receives a preprimary, preelection, or post-election report 3 calendar days after the due date for that report, the commission may extend a settlement offer of $200.
(d) If the commission receives a preprimary, preelection, or post-election report 4 calendar days after the due date for that report, the commission may extend a settlement offer of $250.
(e) If the commission receives a preprimary, preelection, or post-election report 5 calendar days after the due date for that report, the commission may extend a settlement offer of $300.
(f) If the commission receives a preprimary, preelection, or post-election report 6 calendar days after the due date for that report, the commission may extend a settlement offer of $350.
(g) If the commission receives a preprimary, preelection, or post-election report 7 calendar days after the due date for that report, the commission may extend a settlement offer of $400.
(h) If the commission receives a preprimary, preelection, or post-election report 8 calendar days after the due date for that report, the commission may extend a settlement offer of $450.
(i) If the commission receives a preprimary, preelection, or post-election report 9 or more calendar days after the due date for that report, the commission may extend a settlement offer of $500.
