PRINTER'S NO. 3743
No. 2537 Session of 2006
INTRODUCED BY DeLUCA, ARGALL, BARRAR, BEBKO-JONES, BOYD,
CASORIO, GRUCELA, LEACH, McGEEHAN, MELIO, MUSTIO, SHANER,
STURLA, WHEATLEY AND YOUNGBLOOD, MARCH 17, 2006
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MARCH 17, 2006
AN ACT
1 Amending the act of July 10, 1968 (P.L.316, No.154), entitled
2 "An act establishing a code of ethics for the General
3 Assembly, its officers and employes, and providing remedies
4 for its enforcement and penalties," further providing for
5 definitions and for prohibitions.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Sections 3 and 5 of the act of July 10, 1968
9 (P.L.316, No.154), known as the Legislative Code of Ethics, are
10 amended to read:
11 Section 3. Definitions.--Unless the context clearly
12 indicates otherwise, the following words and terms when used
13 herein shall have the respective meanings defined as follows:
14 (1) "Agency" means any department, agency, commission,
15 board, committee, authority or other instrumentality which is
16 created by or under the Constitution or laws of the Commonwealth
17 of Pennsylvania or by executive order, except local political
18 subdivisions or agencies, the majority of the members of whose
19 governing bodies are locally elected or appointed.
1 (2) "Agency head" and "head of any agency" mean the chief
2 executive or administrative officer of each of the State
3 agencies.
4 (3) "Assist" means to act, or agree to act, in such a way as
5 to help, aid, advise, furnish information to, or otherwise
6 provide assistance to another person believing that such action
7 is of help, aid, advice, or assistance to such person and with
8 intent to so assist such person.
9 (4) "Compensation" means any thing of economic value,
10 however designated, which is paid, loaned, granted, given,
11 donated or transferred, or to be paid, loaned, granted, given,
12 donated or transferred for or in consideration of personal
13 services to any person, official or to the State.
14 (4.1) "Direct communication" means an effort, whether
15 written, oral or by any other medium, made by a lobbyist or
16 principal, directed to a member, the purpose or foreseeable
17 effect of which is to influence legislative action.
18 (5) "Gift," as used in section 5, includes any thing of
19 economic value with the exception of public awards,
20 insignificant nonpecuniary gifts, political contributions for
21 which an accounting is required by and is made pursuant to the
22 election laws, or compensation or gifts not connected with or
23 related to either the legislative processes or the donee's
24 services as a member.
25 (5.1) "Indirect communication" means an effort, whether
26 written, oral or by any other medium, to encourage others,
27 including the general public, to take action, the purpose or
28 foreseeable effect of which is to directly influence legislative
29 action. The term includes letter-writing campaigns, mailings,
30 telephone banks, print and electronic media advertising,
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1 billboards, publications and educational campaigns on public
2 issues. The term does not include regularly published periodic
3 newsletters primarily designed for and distributed to members of
4 a bona fide association or charitable or fraternal nonprofit
5 corporation.
6 (5.2) "Legislation" means bills, resolutions, amendments and
7 nominations pending or proposed in either the Senate or the
8 House of Representatives. The term includes any other matter
9 which may become the subject of action by either chamber of the
10 General Assembly.
11 (5.3) "Legislative action" means an action taken by a member
12 involving the preparation, research, drafting, introduction,
13 consideration, modification, amendment, approval, passage,
14 enactment, tabling, postponement, defeat or rejection of
15 legislation; legislative motions; overriding or sustaining a
16 veto by the Governor; or confirmation of appointments by the
17 Governor or of appointments to public boards or commissions by a
18 member of the General Assembly.
19 (5.4) "Lobbying" means an effort to influence legislative
20 action. The term includes:
21 (i) providing any gift, entertainment, meal, transportation
22 or lodging to a member for the purpose of advancing the interest
23 of the lobbyist or principal; and
24 (ii) direct or indirect communication.
25 (5.5) "Lobbyist" means any individual, firm, association,
26 corporation, partnership, business trust or business entity that
27 engages in lobbying on behalf of a principal for economic
28 consideration. The term does not include an attorney who engages
29 in lobbying.
30 (5.6) "Principal" means any individual, firm, association,
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1 corporation, partnership, business trust or business entity:
2 (i) on whose behalf a lobbyist influences or attempts to
3 influence a legislative action; or
4 (ii) that engages in lobbying on the principal's own behalf.
5 (6) "Member" shall include a Senator, Representative,
6 officer or employe of the General Assembly or any committee
7 thereof; but not a person employed on a contractual basis or
8 without compensation for a particular project.
9 (7) "State action" means any action on the part of the
10 Commonwealth or a Commonwealth agency, including, but not
11 limited to: (i) any decision, determination, finding, ruling or
12 order, including the judgment or verdict of a court or a quasi-
13 judicial board, in which the Commonwealth or any of its
14 agencies, boards and commissions has an interest, except in such
15 matters, involving criminal prosecutions; (ii) any grant,
16 payment, award, license, contract, transaction, decision,
17 sanction or approval, or the denial thereof, or the failure to
18 act with respect thereto, in which the Commonwealth or any of
19 its agencies has an interest, except in such matters involving
20 criminal prosecutions; (iii) any [disposition of any matter by
21 the General Assembly or any committee thereof] legislative
22 action.
23 (8) "Participate" in connection with a transaction involving
24 the Commonwealth means to take part in State action or a
25 proceeding personally as a Commonwealth official, through
26 approval, disapproval, decision, recommendation, the rendering
27 of advice, investigation, or the failure to act or perform a
28 duty.
29 (9) "Person" means: (i) an individual, other than a
30 Commonwealth agency or official; (ii) a partnership,
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1 association, corporation, firm, institution, trust, foundation
2 or other legal entity (other than an agency), whether or not
3 operated for profit; (iii) a district, county, municipality or
4 other political subdivision of the State, or any subdivision
5 thereof, provided such is not an agency; (iv) a foreign country
6 or subdivision thereof, or (v) any other entity which is not a
7 Commonwealth agency or official.
8 (10) "Responsibility" in connection with a transaction
9 involving the Commonwealth means the direct administration or
10 operating authority whether intermediate or final, and either
11 exercisable alone or with others, and either personally or
12 through or with others or subordinates, to effectively approve,
13 disapprove, fail to act or perform a duty, or otherwise direct
14 State action in respect of such transaction.
15 (11) "Thing of economic value" means any money or other
16 thing having economic value except food, drink or refreshments
17 consumed by an official including reasonable transportation and
18 entertainment incident thereto, while the personal guest of some
19 person, and includes, without limiting the generality of the
20 foregoing: (i) any loan, except a bone fide loan made by a duly
21 licensed bank or savings and loan association at the normal rate
22 of interest, any property interest, interest in a contract,
23 merchandise, service and any employment or other arrangement
24 involving a right to compensation; (ii) any option to obtain a
25 thing of economic value, irrespective of the conditions to the
26 exercise of such option; and (iii) any promise or undertaking
27 for the present or future delivery or procurement of a thing of
28 economic value.
29 In the case of an option, promise or undertaking, the time of
30 receipt of the thing of economic value shall be deemed to be,
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1 respectively, the time the right to the option becomes fixed,
2 regardless of the conditions to its exercise, and the time when
3 the promise or undertaking is made, regardless of the conditions
4 to its performance.
5 (12) "Transaction involving the Commonwealth" means any
6 proceeding, application, submission, request for a ruling or
7 other determination, contract, claim, case or other such
8 particular matter which the official in question believes, or
9 has reason to believe: (i) is, or will be, the subject of State
10 action, or (ii) is one to which the Commonwealth is or will be a
11 party, or (iii) is one in which the Commonwealth has a direct
12 interest.
13 Section 5. Prohibitions.--(a) No member shall knowingly
14 solicit, accept, or receive any gift or compensation other than
15 that to which he is duly entitled from the Commonwealth which is
16 intended to influence the performance of his official duties or
17 which would influence the performance of his official duties nor
18 shall any member solicit, accept, or receive any such gift or
19 compensation for advocating the passage or defeat of any
20 legislation or for doing any act intended to influence the
21 passage or defeat of legislation including, in the case of a
22 Senator or Representative, his vote thereon.
23 (b) No member shall receive compensation or any thing of
24 economic value for any consultation, the subject matter of
25 which:
26 (1) Is devoted substantially to the responsibilities,
27 programs, or operations of the General Assembly, or
28 (2) Draws substantially upon official data or ideas which
29 have not become part of the body of public information.
30 (c) No member shall participate as a principal in any
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1 transaction involving the Commonwealth or any Commonwealth
2 agency in which he, his spouse or child, or any person of which
3 he is an officer, director, trustee, partner or employe has a
4 substantial personal economic interest as distinguished from
5 that of a general class or general group of persons of which he
6 may reasonably be expected to know.
7 (d) No member shall receive any compensation or enter into
8 any agreement with any person for compensation for services
9 rendered or to be rendered, for assisting any person in any
10 transaction involving the Commonwealth or any of its officials
11 or agencies unless he shall file with the Chief Clerk of the
12 House of Representatives or Secretary of the Senate, as the case
13 may be, a written statement, giving the following information:
14 (1) Name and address of member.
15 (2) The name and address of the person employing or
16 retaining the member to perform such services.
17 (3) Whether the amount of compensation for services rendered
18 or to be rendered is (i) one thousand dollars ($1000), or more,
19 or (ii) less than one thousand dollars ($1000).
20 (4) A brief description of the transaction in reference to
21 which service is rendered or is to be rendered, and of the
22 nature of the service.
23 The sworn statement shall be filed with the chief clerk or
24 secretary within ten days from the date such agreement, express
25 or implied, was entered into, or the compensation was received.
26 Such statement of disclosure shall be deemed confidential and
27 privileged and shall only be made public in connection with a
28 public hearing for an alleged violation of this code where such
29 would be relevant to the charges made and for which the member
30 is being tried.
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1 (e) Subsections (a), (b), (c) and (d) of this section 5,
2 shall not apply to:
3 (1) Receipt of bona fide reimbursement, to the extent
4 permitted by law, for actual expenses for travel and such other
5 necessary subsistence as is compatible with this act and for
6 which no Commonwealth payment or reimbursement is made.
7 (2) Participation in the affairs of charitable, religious,
8 nonprofit educational, public service or civic organizations, or
9 the activities of national or State political parties not
10 proscribed by law.
11 (3) Awards for meritorious public contribution given by
12 public service or civic organizations.
13 (4) Sharing in any compensation received from the
14 Commonwealth or from any political subdivision of the
15 Commonwealth by a person of which such member owns or controls
16 any portion thereof, provided such compensation was received by
17 such person as a result of having made the lowest competitive
18 bid on a Commonwealth contract or subcontract and having had
19 such bid accepted by the Commonwealth or the general contractor,
20 or by reason of an engagement by the Commonwealth in emergency
21 circumstances where dispensation with bidding is permitted by
22 law, and provided such member did not assist in the procurement
23 of the Commonwealth's or the subdivision's or the general
24 contractor's acceptance of such low bid or engagement without
25 bidding.
26 (5) Campaign contributions for use in meeting campaign
27 expenses by any official who is or becomes a candidate for
28 election to the same or another public office.
29 (6) Receipt of compensation from the Commonwealth, directly
30 or indirectly, where: (i) the total interest of the member and
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1 his immediate family in the person receiving said compensation
2 is less than ten percent, or (ii) the member or the person in
3 which he has an interest is the exclusive supplier of the real
4 or personal property or service purchased by the Commonwealth,
5 or (iii) the service purchased is newspaper advertising required
6 by law.
7 (7) Receipt of compensation, directly or indirectly, by a
8 member who is an attorney-at-law, for services in a proceeding
9 where he represents an interest adverse to that of the
10 Commonwealth, where the proceeding is before any court, where
11 the Commonwealth has a right to judicial review in a proceeding
12 not initially before a court, or where the proceeding involves
13 only the uncontested and routine action of administrative
14 officers or employes of the Commonwealth in issuing or renewing
15 a license, charter, certificate or similar document.
16 (f) No member shall use for private gain any information not
17 available to the public at large and acquired by him solely by
18 virtue of his position.
19 (g) No information described in subsection (f) of this
20 section 5 shall be disclosed by a member to others for purposes
21 of their use for private gain, in circumstances where the use of
22 such information by the member would violate subsection (f) of
23 this section 5.
24 (h) No member who is a Senator or Representative shall
25 engage in lobbying for a period of two years after the member
26 leaves office.
27 (i) No member who is an officer of the General Assembly
28 shall engage in lobbying for a period of two years after the
29 member ends service as an officer.
30 (j) No member who is an employe of a Majority Leader,
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1 Minority Leader or committee of either chamber of the General
2 Assembly shall engage in lobbying for a period of two years
3 after the member ends employment.
4 Section 2. This act shall take effect in 60 days.
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