9 KAR 1:040reg. Registration and expenditure statements; financial transactions and termination forms; and enforcement

      Section 1. Definitions. (1) "Commission" means the Executive Branch Ethics Commission.

      (2) "Employer" is defined by KRS 11A.201(3).

      (3) "Executive agency decision" is defined by KRS 11A.201(7).

      (4) "Executive agency lobbyist" is defined by KRS 11A.201(8).

      (5) "Real party in interest" is defined by KRS 11A.201(15).

 

      Section 2. Initial Registration Statement. (1) The initial registration statement required by KRS 11A.211 shall be filed on the ["]Initial Registration Statement["] form.

      (2)(a) The brief description of the executive agency decision shall include the subject matter for which an executive agency lobbyist:

      1. Has been engaged; or

      2. Is responsible.

      (b) Subject matters shall include:

      1. An award of grant for social services;

      2. A lease for office space or equipment;

      3. A contract to provide food, clothing, or other consumable products; and

      4. Any other subject matter.

      (3)(a) The signature on the ["]Initial Registration Statement["] which is filed with the commission shall be submitted either in blue or black ink, electronically by facsimile or electronic mail to the commission, or through an online system established by the commission[an original signature in ink other than black].

      (b) The forms incorporated by reference in this administrative regulation may be reproduced by an executive agency lobbyist or his employer.

 

      Section 3.[2.] (1) The ["]Updated Registration Statement["] form required by KRS 11A.211(2) shall be filed on the applicable ["]Updated Registration Statement["] forms.

      (2) The notice of termination required by KRS 11A.211(4) shall be filed on the ["]Termination Notification As Executive Agency Lobbyist["] form.

 

      Section 4.[3.] Enforcement Procedure. (1) If an executive agency lobbyist, an employer of an executive agency lobbyist, or a real party in interest has not filed an ["]Updated Registration Statement["] on or before the date the statement is due, the commission shall notify the party, by certified mail, return receipt requested, that if the statement is not filed within fifteen (15) days of the date of the receipt of notice the commission shall levy a fine, as provided by KRS 11A.990(5).

      (2) If, by the 16th day after proof of service of the certified letter is received by the commission, the commission has not received the statement that was due by July 31, the commission shall prepare and issue to the executive agency lobbyist, employer, or real party in interest an order demanding payment of the appropriate fine as required by KRS 11A.990(5). The executive agency lobbyist, employer, or real party in interest shall pay the fine no later than ten (10) days from the date of the order. The commission may exonerate or reduce the fine if the commission receives evidence during the ten (10) day fine payment period indicating the filer has already filed the updated registration statement, or that the delinquency is in error.

      (3) The commission also may exonerate or reduce a fine for late filing of the updated registration statement if the commission feels that exoneration, based on the circumstances, is warranted.

      (4) If the commission is not in receipt of the fine from the executive agency lobbyist, employer, or real party in interest by the tenth day after issuance of the order demanding payment of the fine, the general counsel may recommend that the commission initiate an investigation of the executive agency lobbyist, employer, or real party in interest to determine if the failure to file was intentional causing the criminal penalties set forth in KRS 11A.990(6) to apply.

 

      Section 5.[4.] Incorporation by Reference. (1) The following material is incorporated by reference:

      (a) "Initial Registration Statement", [(]rev. 04/2016[02/07)"];

      (b) "Updated Registration Statement - Executive Agency Lobbyist", [(]rev. 04/2016[02/07)"];

      (c) "Updated Registration Statement - Employer of Executive Agency Lobbyist", [(]rev. 04/2016[02/07)"];

      (d) "Updated Registration Statement -Executive Agency Lobbyist/Employer Combined", [(]rev. 04/2016[02/07)"];

      (e) "Updated Registration Statement - Real Party in Interest", [(]rev. 04/2016[02/07)"];

      (f) "Termination Notification as Executive Agency Lobbyist", [(]rev. 04/2016[02/07)"];

      (g)["Executive Agency Lobbying Handbook (Rev. 02/07)"; and

      (h)] "Commonwealth of Kentucky Registration Card Executive Agency Lobbyist", [(]9/93[)"].

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Executive Branch Ethics Commission, #3 Fountain Place[The Vest-Lindsey House, 401 Wapping Street], Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.

 

WILLIAM DAVID DENTON, Chair

      APPROVED BY AGENCY: April 19, 2016

      FILED WITH LRC: May 13, 2016 at noon

      PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on June 21, 2016, at 10:00 a.m., at Executive Branch Ethics Commission, #3 Fountain Place, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing was received by that date, the hearing may be cancelled. This hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through on June 30, 2016. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

      CONTACT PERSON: Kathryn H. Gabhart, Executive Director, Executive Branch Ethics Commission, #3 Fountain Place, Frankfort, Kentucky 40601, phone [phone], fax [phone].

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Kathryn H. Gabhart

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This administrative regulation provides guidance to Executive Agency Lobbyists, Employers of Executive Agency Lobbyists, and Real Parties in Interest as to how to file an initial registration and updated registrations with the Executive Branch Ethics Commission as required by KRS 11A.211, KRS 11A.216, KRS 11A.221, and KRS 11A.241(4).

      (b) The necessity of this administrative regulation: This administrative regulation is required by KRS 11A.241(4), (5), and (6).

      (c) How this administrative regulation conforms to the content of the authorizing statutes: This administrative regulation provides guidance and forms required by KRS 11A.211, KRS 11A.216, KRS 11A.221, and KRS 11A.241(4).

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation currently provides guidance and the forms required for Executive Agency Lobbyists, Employers of Executive Agency Lobbyists, and Real Parties in Interest to file an initial registration and updated registrations with the Executive Branch Ethics Commission as required by KRS 11A.211, KRS 11A.216, KRS 11A.221, and KRS 11A.241(4).

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: This amendment will change the administrative regulation by revising the forms required by KRS 11A.211, KRS 11A.216, KRS 11A.221, and KRS 11A.241(4) as required by HB 80 of the 2016 General Assembly Session, as well as necessary changes for ease of use and aesthetic functioning of the forms.

      (b) The necessity of the amendment to this administrative regulation: This amendment to the administrative regulation is required by HB 80 of the 2016 General Assembly Session increasing the Executive Lobbyist Registration fee from $125 to $500 from July 1, 2016, through June 30, 2018.

      (c) How the amendment conforms to the content of the authorizing statutes: This amendment to the administrative regulation conforms to HB 80 of the 2016 General Assembly Session amending KRS 11A.211 increasing the Executive Lobbyist Registration fee from $125 to $500 from July 1, 2016, through June 30, 2018.

      (d) How the amendment will assist in the effective administration of the statues: This amendment to the administrative regulation will assist in the administration of KRS 11A.211 as amended by HB 80of the 2016 General Assembly Session increasing the Executive Lobbyist Registration fee from $125 to $500 from July 1, 2016, through June 30, 2018, to ensure that Executive Agency Lobbyists, Employers of Executive Agency Lobbyists, and Real Parties in Interest are aware of the increase in the fee.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: Executive Agency Lobbyists, Employers of Executive Agency Lobbyists, Real Parties in Interest, and officials of Executive Branch Agencies.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including: All Executive Agency Lobbyists, Employers of Executive Agency Lobbyists, Real Parties in Interest, and officials of Executive Branch Agencies will be aware of the amendment of KRS 11A.211 by HB 80of the 2016 General Assembly Session increasing the Executive Lobbyist Registration fee from $125 to $500 from July 1, 2016, through June 30, 2018.

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: They will have to pay the increased fee and file the required forms.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): There is no known cost associated with this amended administrative regulation. The increase in the Executive Lobbyist Registration fee is required by HB 80 as amending KRS 11A.211 during the biennium.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3):All Executive Agency Lobbyists, Employers of Executive Agency Lobbyists, Real Parties in Interest, and officials of Executive Branch Agencies will have guidance and notice as to the requirements of KRS 11A.211, KRS 11A.216, KRS 11A.221, and KRS 11A.241(4) and the increase in the Executive Lobbyist Registration fee is required by HB 80 as amending KRS 11A.211 during the biennium.

      (5) Provide an estimate of how much it will cost to implement this administrative regulation:

      (a) Initially: Minimal costs to the Executive Branch Ethics Commission associated with the publication of training materials and conducting education already provided by the Commission’s budget.

      (b) On a continuing basis: Minimal costs to the Executive Branch Ethics Commission associated with the ongoing publication of training materials and conducting education already provided by the Commission’s budget.

      (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: The Commission’s existing budget.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change, if it is an amendment: This administrative regulation will not require an increase in any fees or funding. The increase in the Executive Lobbyist Registration fee is required by HB 80 as amending KRS 11A.211 during the biennium.

      (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees: This administrative regulation does not establish any fees.

      (9) TIERING: Is tiering applied? Tiering was not applied because this administrative regulation applies equally to all affected individuals.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

      1. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? The Executive Branch of state government.

      2. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. HB 80 of the 2016 General Assembly session and KRS 11A.241(4), (5), and (6).

      3. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? The amendment to the administrative regulation will not generate any revenue, but only conforms with the increase in the Executive Lobbyist Registration fee that is required by HB 80 as amending KRS 11A.211 during the biennium.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?The amendment to the administrative regulation will not generate any revenue, but only conforms with the increase in the Executive Lobbyist Registration fee that is required by HB 80 as amending KRS 11A.211 during the biennium.

      (c) How much will it cost to administer this program for the first year? $500 for publications and training; funds already included in the Executive Branch Ethics Commission’s budget.

      (d) How much will it cost to administer this program for subsequent years? $300 for publications and training; funds already included in the Executive Branch Ethics Commission’s budget.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-): None

      Expenditures (+/-): None

      Other Explanation:

Notation

      RELATES TO: KRS 11A.211, 11A.216, 11A.221, 11A.231, 11A.233(1), 11A.241(4), (5), (6), 11A.990

      STATUTORY AUTHORITY: KRS 11A.110(3), (4), 11A.241(5)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 11A.241(4) requires the Executive Branch Ethics Commission to prescribe the initial registration statement, the updated registration statement, and the termination notice required by KRS 11A.211, the statement of expenditures required by KRS 11A.216, and the statement of financial transactions required by KRS 11A.221.[KRS 11A.241(6) requires the commission to publish a handbook that explains the provisions of KRS 11A.201 to 11A.246. KRS 11A.990 states that a lobbyist who fails to file a registration statement shall be subject to a civil penalty.] This administrative regulation establishes the registration, financial transactions, and expenditure statements, termination notice,[handbook,] and enforcement procedure.