§ 1-12 Enforcement of the Lobbying Law.
(a) Generally. Any lobbyist or client who violates any provision of the Lobbying Law or Rules will be subject to the penalties set forth in Section 3-223 of the Lobbying Law.
(b) Types of Violations. Lobbyists and clients may be subject to a penalty for the following:
(1) failure to enroll in e-Lobbyist as required by § 3-213(a)(3) of the Lobbying Law;
(2) failure to file any Report as required by §§ 3-213, 3-215, 3-216, 3-216.1 and 3-217 of the Lobbying Law;
(3) failure to include a term of a Retainer or Authorization required by 51 RCNY § 1-08;
(4) knowingly and willfully providing incorrect information to the City Clerk pursuant to § 3-223(a) of the Lobbying Law;
(5) failure to pay the registration fee as required by § 3-213(e) of the Lobbying Law;
(6) failure to fully cooperate with any inquiry made by the City Clerk in accordance with § 3-212(a) of the Lobbying Law;
(7) failure of a Principal Officer to certify any Report as required by § 3-222 of the Lobbying Law;
(8) failure, by the applicable deadline in the Lobbying Law, to:
(i) enroll in e-Lobbyist pursuant to § 3-213(a)(3) of the Lobbying Law and 51 RCNY § 1-03(a);
(ii) file any Report, including failing to complete any required portion thereof or supplying incorrect information, pursuant to §§ 3-213; 3-215; 3-216; 3-216.1 and 3-217 of the Lobbying Law;
(iii) file a Retainer or Authorization Letter as required by § 3-213(c)(3) and (4) of the Lobbying Law;
(iv) respond to a lawful subpoena issued by the City Clerk pursuant to § 3-212(a) of the Lobbying Law; or
(v) pay any civil penalty assessed by the City Clerk in accordance with § 3-223 of the Lobbying Law;
(9) the Principal Officer or Designee intentionally disclosing his or her e-Lobbyist password in violation of 51 RCNY § 1-04(c)(2) or 51 RCNY § 1-05(c)(3), respectively;
(10) failure to comply with the terms of use agreement of e-Lobbyist pursuant to § 3-212(a) of the Lobbying Law; or
(11) any other act or omission that constitutes a violation of the Lobbying Law or Rules.
(c) Enforcement Procedures.
(1) Late Filings.
(i) Generally. Any lobbyist or client who fails to file a Report by the deadline for such Report will be subject to late filing penalties. Pursuant to § 3-223(c)(2) of the Lobbying Law, a lobbyist or client who has never previously filed a Report will be charged a late filing penalty of ten dollars ($10) per day for each Report that is late and all other lobbyists or clients will be charged a late filing penalty of twenty-five dollars ($25) per day for each Report that is late. Late filing penalties accrue from the day after the filing deadline through, and including, the day the Report is filed, and include weekends and holidays.
(ii) Notice. Pursuant to § 3-223(c)(1) of the Lobbying Law, following either the failure to file or the late filing of a Report, the City Clerk will send a notice by email and certified mail, return-receipt requested, advising the lobbyist or client of the following:
(A) if a Report has not been filed, that such Report must be filed and the applicable late filing penalty paid no later than fourteen (14) business days after the date of emailing or mailing of the notice by the City Clerk, whichever is earlier; or
(B) if a Report has been filed late, that the applicable late filing penalty must be paid no later than fourteen (14) business days after the date of emailing or mailing of the notice by the City Clerk, whichever is earlier.
(iii) Formal Action. If the lobbyist or client fails to file the late Report or satisfy the late filing penalty within fourteen (14) business days of the emailing or mailing of the notice by the City Clerk, whichever is earlier, the City Clerk may commence a formal proceeding in OATH, pursuant to 51 RCNY § 1-13. The City Clerk, in addition to late filing penalties, may seek civil penalties in an amount set forth in 51 RCNY § 1-12(d)(1).
(2) Unreported Lobbying Activity.
(i) Initiation of Investigation.
(A) Public Complaint. If a member of the public suspects a person, business or organization is engaged in unreported lobbying, a complaint may be submitted in writing to the City Clerk's Address by first-class mail, hand-delivery, email or fax.
(B) City Clerk Investigation. The City Clerk may initiate an investigation of suspected unreported lobbying at its discretion.
(ii) Notices.
(A) Initial Notice. Upon the commencement of an investigation of unreported lobbying, the City Clerk will notify the subject of the complaint (hereinafter "Subject") by certified mail, return-receipt requested, of the allegations.
(B) Answer to Initial Notice. The Subject may respond in writing to the initial notice and explain, rebut or provide other information concerning the allegations. The response must be in writing, delivered by first-class mail, hand-delivery, email or fax to the Lobbying Bureau at the City Clerk's Address no later than fourteen (14) business days after the date of mailing of the initial notice. The Subject may request an extension to answer for good cause and must make such request in writing and deliver it by first-class mail, hand-delivery, email or fax to the Lobbying Bureau at the City Clerk's Address prior to the deadline.
(C) Failure to Answer the Initial Notice. If the Subject fails to answer the initial notice, the City Clerk will make a determination of the allegations contained in the complaint based upon the available evidence.
(iii) Investigation. The City Clerk will investigate the allegations contained in the complaint by reviewing any and all available evidence.
(iv) Determinations.
(A) Determination of No Probable Cause. If the City Clerk determines that there is no probable cause that a violation of the Lobbying Law or the Rules has occurred, the matter will be dismissed and the Subject will be notified in writing of such dismissal.
(B) Determination of Probable Cause. If the City Clerk determines that there is probable cause that a violation of the provisions of the Lobbying Law or the Rules has occurred, the City Clerk will issue a finding of probable cause.
(v) Formal Action. Upon determining that probable cause exists, the City Clerk may commence a proceeding in accordance with the procedures set forth in one of the following sections:
(A) 51 RCNY § 1-12(c)(1) for the imposition of late filing penalties; or
(B) 51 RCNY § 1-13 to seek civil penalties in an amount set forth in 51 RCNY § 1-12(d), if applicable.
(3) Other Violations. Any violation of the Lobbying Law or Rules not punishable under § 3-223(a), (b) or (c) of the Lobbying Law will be enforced pursuant to the following procedure:
(A) Formal Notice. The City Clerk will send a formal notice by email and certified mail, return-receipt requested, advising the lobbyist or client of the violation.
(B) Formal Action. If the lobbyist or client fails to cure the violation within fourteen (14) business days after the date of emailing or mailing of the formal notice, whichever is earlier, the City Clerk will commence a proceeding in OATH, pursuant to 51 RCNY § 1-13. In such proceeding, the City Clerk will seek civil penalties in an amount set forth in 51 RCNY § 1-12(d).
(d) Civil Penalties.
(1) Pursuant to § 3-223(c) and (d) of the Lobbying Law, lobbyists or clients that fail to cure a violation within fourteen (14) business days after the date of emailing or mailing of a notice to cure, whichever is earlier, will be subject to a civil penalty based upon the following schedule:
Days a violation was not cured after the expiration of the cure period Civil penalty per violation not cured within the cure period
1 - 30 $1,000
31 - 60 $1,500
61 - 90 $2,000
91 - 120 $2,500
121 - 150 $3,000
151 - 180 $3,500
181 - 210 $4,000
211 - 240 $4,500
More than 240 $5,000 - $20,000
(2) Notwithstanding the schedule provided in 51 RCNY § 1-12(d)(1), the City Clerk may consider aggravating and mitigating factors based on the frequency and extent of the lobbyist's or client's record of violations in increasing or decreasing any civil penalty.
(e) Settlement or Satisfaction of a Violation.
(1) Generally.
(i) A violation of the Lobbying Law may be settled or satisfied by filing a Report, if applicable, and paying any late filing penalty or civil penalty, if applicable.
(ii) If a violation is settled or satisfied after a formal proceeding begins in OATH, a notice of withdrawal without prejudice will be filed by the City Clerk with OATH and served upon the lobbyist or client by first-class mail or email.
(f) Waiver or Reduction of Late Filing Penalties. If a lobbyist or client is subject to a late filing penalty, a lobbyist or client may request a waiver or reduction of such late filing penalty pursuant to § 3-223(c)(2) of the Lobbying Law.
(1) A request for a waiver or reduction of a late filing penalty must be received by the City Clerk no later than fourteen (14) business days after the date of emailing or mailing of the notice, whichever is earlier, issued by the City Clerk pursuant to 51 RCNY § 1-12(c)(1)(ii). Such request must be sent in writing by first-class mail or hand delivery to the City Clerk's Address on forms prescribed by the City Clerk.
(2) A request for a waiver or reduction must include:
(i) a cover letter setting forth the applicant's name, business address and name of the Principal Officer; and
(ii) an affidavit stating:
(A) The applicant's annual operating budget;
(B) Whether the applicant lobbies solely on its own behalf;
(C) The number of lobbying matters, number of hours spent on such matters and, for periodic reports, the amount of compensation and expenditures that were not reported during the relevant period;
(D) A narrative detailing significant impediments to the timely filing of the Report; and
(E) Any other facts that may be helpful to the City Clerk in making a determination.
(3) Significant impediments, as used in 51 RCNY § 1-12(f)(2)(ii)(D), are limited to:
(i) the death of the Principal Officer or Designee or immediate family member thereof;
(ii) the illness of the Principal Officer or Designee; or
(iii) a force majeure.
(4) To the extent possible, all statements made in the affidavit should be corroborated by supporting documents that can be either submitted for review or made available for inspection by the City Clerk.
(5) The City Clerk may request additional evidence to support any statements made in the affidavit. If additional documentation is requested, the applicant must submit such documentation by first-class mail or hand-delivery to the City Clerk's Address no later than seven (7) days after the date of mailing of the City Clerk's request.
(6) The City Clerk will notify the applicant in writing of its determination regarding the request as soon as practicable. Any such determination made by the City Clerk is final. If the waiver or reduction request is denied, payment of the applicable late filing penalty must be made no later than fourteen (14) days after the date of mailing of such denial.
(Added City Record 10/5/2015, eff. 11/4/2015)
