HOUSE AMENDED
        PRIOR PRINTER'S NOS. 477, 718                 PRINTER'S NO. 1000

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1 Session of 2005


        INTRODUCED BY JUBELIRER, MELLOW, PIPPY, RHOADES, WONDERLING,
           ERICKSON, MADIGAN, KITCHEN, ROBBINS, TOMLINSON, TARTAGLIONE,
           STACK, THOMPSON, VANCE, RAFFERTY, MUSTO, LAVALLE, ARMSTRONG,
           COSTA, SCARNATI, D. WHITE, C. WILLIAMS, PILEGGI, EARLL,
           BRIGHTBILL, GORDNER, REGOLA, M. WHITE, BOSCOLA, PUNT, STOUT,
           WENGER, O'PAKE, PICCOLA, CONTI, LEMMOND, WOZNIAK, ORIE,
           LOGAN, WAUGH, KASUNIC AND A. WILLIAMS, MARCH 28, 2005

        AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 22, 2005

                                     AN ACT

     1  Providing for lobbying registration, regulation and disclosure;
     2     conferring powers and imposing duties on the Department of
     3     State, the Office of Attorney General and the State Ethics
     4     Commission; imposing penalties; establishing the Lobbying
     5     Accountability Fund; and making a related repeal.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8  Section 1.  Short title.
     9     This act shall be known and may be cited as the Lobbying
    10  Accountability Act.
    11  Section 2.  Statement of intent.
    12     The Constitution of Pennsylvania recognizes that all free
    13  governments are founded upon the authority of the people. It
    14  further provides that the power to make law in this Commonwealth
    15  is vested in the General Assembly, and the power to enforce law
    16  is vested in the Executive Department. The Constitution also

     1  guarantees the people the right to petition those invested with
     2  the powers of government for redress of grievances. The ability
     3  of the people to exercise their fundamental authority and to
     4  have confidence in the integrity of the processes by which laws
     5  are made and enforced in this Commonwealth demands that the
     6  identity and scope of activity of those who are paid to
     7  influence the actions of the General Assembly and the Executive
     8  Department be publicly and regularly disclosed.
     9  Section 3.  Definitions.
    10     The following words and phrases when used in this act shall
    11  have the meanings given to them in this section unless the
    12  context clearly indicates otherwise:
    13     "Administrative action."  Any of the following:
    14         (1)  An agency's:
    15             (i)  proposal, consideration, promulgation or
    16         rescission of a regulation;
    17             (ii)  development or modification of a guideline or a
    18         statement of policy; or
    19             (iii)  approval or rejection of a regulation.
    20         (2)  The review, revision, approval or disapproval of a
    21     regulation under the act of June 25, 1982 (P.L.633, No.181),
    22     known as the Regulatory Review Act.
    23         (3)  The Governor's approval or veto of legislation.
    24         (4)  The nomination or appointment of an individual as an
    25     officer or employee of the Commonwealth.
    26         (5)  The proposal, consideration, promulgation or
    27     rescission of an executive order.
    28     "Affiliated political action committee."  A "political action
    29  committee" as defined in section 1621(l) of the act of June 3,
    30  1937 (P.L.1333, No.320), known as the Pennsylvania Election
    20050S0001B1000                  - 2 -     

     1  Code, which has a chairman, a treasurer or other officer who is
     2  a principal, an officer or employee of a principal, a lobbyist
     3  or an employee of a lobbyist, provided if an employee of a
     4  registrant serves as the officer of a political action committee
     5  in what is clearly a personal capacity and the goals and mission
     6  of that political action committee clearly have no relationship
     7  to the goals and mission of the registrant, such political
     8  action committee shall not be considered an affiliated political
     9  action committee for the purposes of this definition.
    10     "Agency."  An agency, board, commission, authority or
    11  department of the executive department of the Commonwealth.
    12     "Board."  The Disciplinary Board of the Supreme Court of
    13  Pennsylvania.
    14     "Commission."  The State Ethics Commission.
    15     "Compensation."  Anything of value, including benefits,
    16  received or to be received from a principal by one acting as a
    17  lobbyist.
    18     "Department."  The Department of State of the Commonwealth.
    19     "Direct communication."  An effort, whether written, oral or   <--
    20  by any other medium, made by a lobbyist or principal, directed
    21  to a State official or employee, the purpose or foreseeable
    22  effect of which is to influence legislative action or
    23  administrative action.
    24     "DIRECT INFLUENCE."  ANY EFFORT TO LOBBY OR COMMUNICATE TO A   <--
    25  STATE OFFICIAL OR STATE EMPLOYEE, WHICH IS INTENDED TO AFFECT
    26  LEGISLATIVE OR ADMINISTRATIVE ACTION.
    27     "DIRECT INFLUENCE EXPENSE."  ANY EXPENDITURE FOR DIRECT
    28  INFLUENCE, INCLUDING ANY EXPENDITURE FOR RESEARCH, MONITORING,
    29  TECHNICAL, CLERICAL OR ADMINISTRATIVE SERVICES PROVIDED BY A
    30  LOBBYIST, OR THE STAFF OF A LOBBYIST, IN SUPPORT OF DIRECT
    20050S0001B1000                  - 3 -     

     1  INFLUENCE. THE TERM DOES NOT INCLUDE ANY OFFICE EXPENSES.
     2     "Economic consideration."  Anything of value offered or
     3  received.
     4     "Fund."  The Lobbying Accountability Fund established in
     5  section 10(b) (relating to registration fees; fund established;
     6  system; regulations).
     7     "Gift."  As defined in 65 Pa.C.S. § 1102 (relating to
     8  definitions).
     9     "Immediate family."  An individual's spouse, child, parent,
    10  brother, sister and like relative-in-law.
    11     "Indirect communication."  An effort, whether written, oral    <--
    12  or by any other medium, to encourage others, including the
    13  general public, to take action, the purpose or foreseeable
    14  effect of which is to directly influence legislative action or
    15  administrative action. The term includes letter-writing
    16  campaigns, mailings, telephone banks, print and electronic media
    17  advertising, billboards, publications and educational campaigns
    18  on public issues. The term does not include regularly published
    19  periodic newsletters primarily designed for and distributed to
    20  members of a bona fide association or charitable or fraternal
    21  nonprofit corporation.
    22     "INDIRECT INFLUENCE."  ANY EFFORT TO ENCOURAGE OTHERS,         <--
    23  INCLUDING THE GENERAL PUBLIC, TO COMMUNICATE TO A STATE OFFICIAL
    24  OR EMPLOYEE TO AFFECT LEGISLATIVE OR ADMINISTRATIVE ACTION. THE
    25  TERM INCLUDES ACTIVITIES SUCH AS LETTER-WRITING CAMPAIGNS,
    26  MAILINGS, TELEPHONE BANKS, PRINT AND ELECTRONIC MEDIA
    27  ADVERTISING, BILLBOARDS, PUBLICATIONS AND EDUCATIONAL CAMPAIGNS.
    28  THE TERM DOES NOT INCLUDE REGULARLY PUBLISHED PERIODIC
    29  NEWSLETTERS PRIMARILY DESIGNED FOR AND DISTRIBUTED TO MEMBERS OF
    30  A BONA FIDE ASSOCIATION OR CHARITABLE OR FRATERNAL NONPROFIT
    20050S0001B1000                  - 4 -     

     1  CORPORATION.
     2     "INDIRECT INFLUENCE EXPENSE."  ANY EXPENDITURE FOR INDIRECT
     3  INFLUENCE, INCLUDING ANY EXPENDITURE FOR RESEARCH, MONITORING,
     4  TECHNICAL, CLERICAL OR ADMINISTRATIVE SERVICES PROVIDED BY A
     5  LOBBYIST, OR THE STAFF OF A LOBBYIST, IN SUPPORT OF INDIRECT
     6  INFLUENCE. THE TERM DOES NOT INCLUDE ANY OFFICE EXPENSES.
     7     "Legislation."  Bills, resolutions, amendments and
     8  nominations pending or proposed in either the Senate or the
     9  House of Representatives. The term includes any other matter
    10  which may become the subject of action by either chamber of the
    11  General Assembly.
    12     "Legislative action."  An action taken by a State official or
    13  employee involving the preparation, research, drafting,
    14  introduction, consideration, modification, amendment, approval,
    15  passage, enactment, tabling, postponement, defeat or rejection
    16  of legislation; legislative motions; overriding or sustaining a
    17  veto by the Governor; or confirmation of appointments by the
    18  Governor or appointments to public boards or commissions by a
    19  member of the General Assembly.
    20     "Lobbying."  An effort to influence legislative action or
    21  administrative action. The term includes:
    22         (1)  direct or indirect communication;                     <--
    23         (2)  personnel and office expenses in accordance with
    24     section 5(b)(2)(i)(A) (relating to reporting); and
    25         (3)  providing any gift, entertainment, meal,
    26     transportation or lodging to a State official or employee for
    27     the purpose of advancing the interest of the lobbyist or
    28     principal.
    29         (1)  COMMUNICATING IN WRITING, ORALLY OR BY ANY OTHER      <--
    30     MEDIUM TO A STATE OFFICIAL OR EMPLOYEE FOR THE PURPOSE OF
    20050S0001B1000                  - 5 -     

     1     INFLUENCING LEGISLATIVE OR ADMINISTRATIVE ACTION.
     2         (2)  PROVIDING ANY GIFT, HOSPITALITY, TRANSPORTATION OR
     3     LODGING TO A STATE OFFICIAL OR EMPLOYEE FOR THE PURPOSE OF
     4     ADVANCING THE INTEREST OF THE LOBBYIST OR PRINCIPAL.
     5     "Lobbyist."  Any individual, association, corporation,
     6  partnership, business trust or other business entity that
     7  engages in lobbying on behalf of a principal for economic
     8  consideration. The term includes an attorney at law while
     9  engaged in lobbying.
    10     "OFFICE EXPENSE."  ANY EXPENDITURE FOR OFFICES, EQUIPMENT OR   <--
    11  SUPPLIES OTHER THAN PERSONNEL EXPENSES.
    12     "Principal."  Any individual, association, corporation,
    13  partnership, business trust or other business entity:
    14         (1)  on whose behalf a lobbyist influences or attempts to
    15     influence an administrative action or a legislative action;
    16     or
    17         (2)  that engages in lobbying on the principal's own
    18     behalf.
    19     "Registrant."  A registered lobbyist or a registered
    20  principal.
    21     "Regulation."  Any rule, regulation or order in the nature of
    22  a rule or regulation, including formal and informal opinions of
    23  the Attorney General, of general application and future effect,
    24  promulgated by an agency under statutory authority in the
    25  administration of a statute administered by or relating to the
    26  agency, or prescribing the practice or procedure before the
    27  agency.
    28     "State official or employee."  An individual elected or
    29  appointed to a position in State government or employed by State
    30  government, whether compensated or uncompensated, who is
    20050S0001B1000                  - 6 -     

     1  involved in legislative action or administrative action.
     2  Section 4.  Registration.
     3     (a)  General rule.--Unless excluded under section 6 (relating
     4  to exemption from registration and reporting), a lobbyist or a
     5  principal must register with the department within ten days of    <--
     6  acting in any capacity as a lobbyist or principal. Registration
     7  shall be biennial and be coincident with the terms of the
     8  members of the House of Representatives. BIENNIALLY. EACH         <--
     9  BIENNIAL REGISTRATION CYCLE SHALL BEGIN ON JANUARY 1 OF EACH
    10  ODD-NUMBERED YEAR AND SHALL CONCLUDE ON DECEMBER 31 OF THE
    11  IMMEDIATELY FOLLOWING EVEN-NUMBERED YEAR. THE FOLLOWING SHALL
    12  APPLY:
    13         (1)  A LOBBYIST MUST REGISTER WITHIN TEN DAYS OF:
    14             (I)  RECEIVING COMPENSATION FOR LOBBYING FROM ALL
    15         PRINCIPALS REPRESENTED IN EXCESS OF $2,500 IN THE
    16         AGGREGATE DURING ANY REPORTING PERIOD; OR
    17             (II)  ENGAGING IN LOBBYING ON BEHALF OF HIS EMPLOYER
    18         WHERE LOBBYING ACTIVITY ACCOUNTS FOR OVER $2,500 OF THE
    19         EMPLOYEE'S TIME DURING ANY REPORTING PERIOD BASED ON AN
    20         HOURLY PRORATION OF THE EMPLOYEE'S COMPENSATION.
    21         (2)  A PRINCIPAL MUST REGISTER WITHIN TEN DAYS OF
    22     EXPENDING IN EXCESS OF $2,500 FOR LOBBYING PURPOSES DURING
    23     ANY REPORTING PERIOD.
    24     (b)  Principals.--
    25         (1)  A principal required to register shall file a
    26     registration statement setting forth the following
    27     information with the department:
    28             (i)  Name.
    29             (ii)  Permanent address.
    30             (iii)  Daytime telephone number.
    20050S0001B1000                  - 7 -     

     1             (iv)  Name and nature of business.
     2             (v)  Name, registration number and acronym of any
     3         affiliated political action committees.
     4             (vi)  Name and permanent business address of each
     5         individual who will for economic consideration engage in
     6         lobbying on the principal's behalf.
     7         (2)  If a principal is an association or organization,
     8     the number of dues-paying members of the association or
     9     organization in the most recently completed calendar year
    10     shall also be disclosed.
    11     (c)  Lobbyist.--A lobbyist who is required to register shall
    12  file a registration statement setting forth the following
    13  information with the department:
    14         (1)  Name.
    15         (2)  Permanent business address.
    16         (3)  Daytime telephone number.
    17         (4)  A recent photograph of the lobbyist.
    18         (5)  Name, permanent business address and daytime
    19     telephone number of each principal for whom the lobbyist will
    20     engage in lobbying.
    21         (6)  Name, registration number and acronym of any
    22     affiliated political action committees.
    23     (d)  Amendments.--
    24         (1)  When there is a change of information required for
    25     the registration statement under subsection (b)(1) or (c), an
    26     amended statement shall be filed with the department within
    27     14 days after the change occurs.
    28         (2)  When there is a change in information required for
    29     the registration statement under subsection (b)(2), an
    30     amended statement shall be filed with the department within
    20050S0001B1000                  - 8 -     

     1     14 days of the end of the year in which the change occurs.
     2     (e)  Termination.--A lobbyist or a principal may terminate
     3  registration by filing notice of termination with the
     4  department. Within 30 days of filing the notice, the lobbyist or
     5  principal shall file a termination report, which shall include
     6  all information required by section 5 (relating to reporting)
     7  through the final day of lobbying activity. After a review of
     8  the termination report but not later than 90 days after receipt
     9  of the report, the department shall issue to the lobbyist or
    10  principal a letter stating that the registrant has terminated
    11  registration. The filing of notice or a termination report shall
    12  not affect the commission's authority to conduct investigations
    13  and hearings pursuant to section 8(i) (relating to
    14  administration and enforcement). No lobbying may occur after the
    15  filing of notice of termination unless the lobbying is pursuant
    16  to a separate registration statement which is filed with the
    17  department and which, at the time of the lobbying, has not been
    18  terminated.
    19  Section 5.  Reporting.
    20     (a)  General rule.--A registered principal shall, under oath
    21  or affirmation, file quarterly expense reports with the
    22  department.
    23     (b)  Content.--
    24         (1)  Reports must list the names of all lobbyists by whom
    25     lobbying is conducted and the general subject matter or issue
    26     being lobbied.
    27         (2)  (i)  Expense reports must contain the following
    28     categories:
    29                 (A)  A single aggregate good faith estimate of     <--
    30             the total amount spent for personnel and office
    20050S0001B1000                  - 9 -     

     1             expenses related to lobbying. This subparagraph
     2             includes salaries and other forms of compensation,
     3             benefits, vehicle allowances, bonuses and
     4             reimbursable expenses for those involved in lobbying.
     5             If compensation is to be reported by or for an
     6             individual or entity whose lobbying is incidental to
     7             regular employment, it shall be sufficient to report
     8             a good faith prorated estimate based on the value of
     9             the time devoted to lobbying. Reportable personnel
    10             costs include costs for lobbying staff, research and
    11             monitoring staff, consultants, attorneys at law,
    12             lobbyists, publications and public relations staff,
    13             technical staff and clerical and administrative
    14             support staff who engage in lobbying but are exempt
    15             from reporting under section 6(12) (relating to
    16             exemption from registration and reporting). This
    17             subparagraph includes costs for offices, equipment
    18             and supplies utilized for lobbying.
    19                 (B)  A single aggregate good faith estimate of
    20             the total amount spent for direct communication.
    21                 (C)  A single aggregate good faith estimate of
    22             the total amount spent for indirect communication.
    23                 (D)  The total costs for gifts, entertainment,
    24             meals, transportation, lodging and receptions given
    25             to or provided to State officials or employees or
    26             their immediate families.
    27                 (A)  THE TOTAL COSTS FOR DIRECT INFLUENCE          <--
    28             EXPENSES.
    29                 (B)  THE TOTAL COSTS FOR INDIRECT INFLUENCE
    30             EXPENSES.
    20050S0001B1000                 - 10 -     

     1                 (C)  THE TOTAL COSTS FOR GIFTS, HOSPITALITY,
     2             TRANSPORTATION, LODGING AND RECEPTIONS GIVEN TO OR
     3             PROVIDED TO STATE OFFICIALS OR EMPLOYEES OR THEIR
     4             IMMEDIATE FAMILIES.
     5             (ii)  Expenses required to be reported pursuant to
     6         subparagraph (i) shall be assigned to one of the four      <--
     7         THREE categories listed under subparagraph (i) and shall   <--
     8         not be included in more than one category.
     9         (3)  In addition to reporting the totals required under
    10     this subsection, the expense report must identify, by name,
    11     position and each occurrence, a State official or employee
    12     who receives from a principal or lobbyist anything of value
    13     which must be included in the statement under 65 Pa.C.S. §
    14     1105(b)(6) or (7) (relating to statement of financial
    15     interests) as implemented by section 65 Pa.C.S. § 1105(d).
    16             (i)  For purposes of this act, the amount referred to
    17         in 65 Pa.C.S. § 1105(b)(7) shall be considered an
    18         aggregate amount per year.
    19             (ii)  Written notice must be given to each State
    20         official or employee who is listed in the expense report
    21         pursuant to this paragraph within seven days of the
    22         report's submission to the department. Notice under this
    23         subparagraph shall include the information which will
    24         enable the State official or employee to comply with 65
    25         Pa.C.S. § 1105(b)(6) and (7). For purposes of this act
    26         and 65 Pa.C.S. Ch. 11 (relating to ethics standards and
    27         financial disclosure), 65 Pa.C.S. § 1105(b)(6) and (7)
    28         shall constitute mutually exclusive categories.
    29             (iii)  Regulations shall be promulgated under section
    30         10(d) (relating to registration fees; fund established;
    20050S0001B1000                 - 11 -     

     1         system; regulations) to define mutually exclusive
     2         categories under 65 Pa.C.S. § 1105(b)(6) and (7) and to
     3         determine whether a thing of value is subject to
     4         disclosure under 65 Pa.C.S. § 1105(b)(6) or (7).
     5         (4)  A lobbyist shall sign the reports submitted by each
     6     principal for whom the lobbyist is registered to attest to
     7     the validity and accuracy to the best of the lobbyist's
     8     knowledge. A lobbyist may attach a statement to the report of
     9     any principal, describing the limits of the lobbyist's
    10     knowledge concerning the information contained in the report.
    11         (5)  The expense report shall also include the name,
    12     permanent business address and daytime telephone number of
    13     any individual, association, corporation, partnership,
    14     business trust or other business entity which contributed
    15     more than 10% of the total resources received by the
    16     principal during the reporting period.
    17         (6)  A registered principal or registered lobbyist that
    18     attempts to influence an agency's preparing, bidding,
    19     entering into or approving a contract shall ensure that the
    20     related expenses are included under paragraph (2).
    21     (c)  Separate report.--A lobbyist shall submit a separate
    22  report from the report of a registered principal for whom the
    23  lobbyist is registered if, during the reporting period, the
    24  lobbyist engaged in lobbying which was not reflected in the
    25  reports filed by the principal or principals represented by the
    26  lobbyist. A separate lobbyist report shall contain the identity
    27  of the principal for whom such lobbying was performed, the
    28  general subject matter or issue being lobbied and all
    29  information required under subsection (b)(2) and (3).
    30     (d)  Records retention.--A registrant shall retain all
    20050S0001B1000                 - 12 -     

     1  documents reasonably necessary to substantiate the reports to be
     2  made under this section for four years from the date of filing
     3  the subject report. Upon request by the Office of Attorney
     4  General, the board, the commission or the department, these
     5  materials shall be made available for inspection within a
     6  reasonable period of time.
     7     (e)  Thresholds for reporting.--An expense report shall be
     8  filed when total expenses for lobbying exceed $2,500 for a
     9  registered principal or a registered lobbyist in a reporting
    10  period. In a reporting period in which total expenses are $2,500
    11  or less, a statement to that effect shall be filed.
    12     (f)  Voluntary disclosure.--Nothing in this section shall
    13  prevent a principal or lobbyist from disclosing expenses in
    14  greater detail than required.
    15  Section 6.  Exemption from registration and reporting.
    16     The following individuals and activities shall be exempt from
    17  registration under section 4 (relating to registration) and
    18  reporting under section 5 (relating to reporting):
    19         (1)  An individual who limits lobbying activities to
    20     preparing testimony and testifying before a committee of the
    21     General Assembly or participating in an administrative
    22     proceeding of an agency.
    23         (2)  An individual who is an employee of an entity
    24     engaged in the business of publishing or broadcasting while
    25     engaged in the gathering and dissemination of news and
    26     comment thereon to the general public in the ordinary course
    27     of business.
    28         (3)  An individual who does not receive compensation,
    29     other than traveling expenses, for lobbying.
    30         (4)  An individual whose compensation for lobbying, from   <--
    20050S0001B1000                 - 13 -     

     1     all principals represented, does not exceed $2,500 in the
     2     aggregate during any reporting period.
     3         (5)  An individual who engages in lobbying on behalf of
     4     the individual's employer and where lobbying activity
     5     represents less than the equivalent of $2,500 of the
     6     employee's time during any reporting period, based on an
     7     hourly proration of the employee's compensation.
     8         (6)  A principal whose total expenses for lobbying
     9     purposes do not exceed $2,500 during any reporting period.
    10         (7) (4)  An elected State official acting in an official   <--
    11     capacity.
    12         (8) (5)  A State official who is appointed by the          <--
    13     Governor acting in an official capacity.
    14         (9) (6)  An elected or appointed official or employee of   <--
    15     a political subdivision acting in an official capacity. This
    16     exception shall not be construed to exempt lobbyists or
    17     principals from registration under section 4 and reporting
    18     under section 5 who are engaged in lobbying.
    19         (10) (7)  An employee of the Commonwealth or independent   <--
    20     agency of the Commonwealth acting in an official capacity.
    21         (11)  An individual representing a bona fide church or     <--
    22     bona fide religious body of which the individual is a member
    23     where the lobbying is solely for the purpose of protecting
    24     the constitutional right to the free exercise of religion.
    25         (8)  AN INDIVIDUAL WHO APPEARS ON BEHALF OF ANY RELIGIOUS  <--
    26     ORGANIZATION WITH RESPECT TO SUBJECTS OF LEGISLATION OR
    27     REGULATION THAT DIRECTLY RELATE TO THE RELIGIOUS BELIEFS AND
    28     PRACTICES OF THAT ORGANIZATION AND WHO DOES NOT OTHERWISE ACT
    29     AS A LOBBYIST.
    30         (12) (9)  An individual, who is not a registered           <--
    20050S0001B1000                 - 14 -     

     1     lobbyist, who serves:
     2             (i)  on an advisory board, working group or task
     3         force; and
     4             (ii)  at the request of an agency or the General
     5         Assembly.
     6         (13) (10)  Participating as a party or as an attorney at   <--
     7     law or representative of a party in any administrative
     8     adjudication pursuant to 2 Pa.C.S. (relating to
     9     administrative law and procedure).
    10         (14) (11)  An employee, who is not a registered lobbyist,  <--
    11     of a corporation which:
    12             (i)  is registered as a principal under section 4;
    13             (ii)  has one or more registered lobbyists; and
    14             (iii)  includes in its reports under section 5 all of
    15         the employee's expenses related to lobbying.
    16  Section 7.  Prohibited activities.
    17     (a)  Political committees.--A lobbyist may not serve as a
    18  treasurer or other officer for a candidate's political committee
    19  or a candidate's political action committee.
    20     (b)  Fee restrictions.--A lobbyist may not charge a fee or
    21  receive compensation or economic consideration based upon an
    22  understanding, either written or oral, that any part of the fee,
    23  compensation or economic consideration will be converted into a
    24  contribution to a candidate for public office or a political
    25  committee.
    26     (c)  Falsification.--No lobbyist or principal may, for the
    27  purpose of influencing legislative action or administrative
    28  action, transmit, utter or publish to any State official or
    29  employee any communication, knowing that such communication or
    30  any signature on the communication is false, forged, counterfeit
    20050S0001B1000                 - 15 -     

     1  or fictitious.
     2     (d)  Conflicts of interest.--
     3         (1)  Except as permitted by paragraph (2), a registrant
     4     may not lobby on behalf of a principal:
     5             (i)  on any subject matter in which the principal's
     6         interests are directly adverse to the interests of
     7         another principal currently represented by the lobbyist
     8         or previously represented by the lobbyist during the       <--
     9         current session of the General Assembly; or
    10             (ii)  if the lobbyist's representation of the
    11         principal appears to be adversely limited by the
    12         lobbyist's responsibilities to:
    13                 (A)  another current principal;
    14                 (B)  a principal previously represented by the
    15             lobbyist during the current session of the General
    16             Assembly; or
    17                 (C)  the lobbyist's own interests.
    18         (2)  A lobbyist may represent a principal in
    19     circumstances described in paragraph (1) if:
    20             (i)  the lobbyist reasonably believes that the
    21         lobbyist will be able to provide competent and diligent
    22         representation to each affected principal;
    23             (ii)  the lobbyist provides written notice to each
    24         affected principal upon becoming aware of the conflict;
    25         and
    26             (iii)  each affected principal provides informed
    27         consent waiving the conflict of interest.
    28         (3)  If a lobbyist represents a principal in violation of
    29     this section or, if multiple representation properly accepted
    30     becomes improper under this section and the conflict is not
    20050S0001B1000                 - 16 -     

     1     waived, the lobbyist shall promptly withdraw from one or more
     2     representations to the extent necessary for any remaining
     3     representation to not be in violation of this section.
     4         (4)  If a lobbyist is prohibited by this section from
     5     engaging in particular conduct, an employer of the lobbyist
     6     or a partner or other person associated with the lobbyist may
     7     not engage in the particular conduct.
     8         (5)  A principal or lobbyist required to report under
     9     section 5 (relating to reporting) shall include in the report
    10     a statement affirming that to the best of the principal's or
    11     lobbyist's knowledge the principal or lobbyist has complied
    12     with this section.
    13         (6)  Except as provided in paragraph (8), the THE          <--
    14     commission may receive complaints regarding violations of
    15     this subsection. If the commission determines a violation of   <--
    16     this subsection has occurred, the commission, after
    17     investigation, notice and hearing:
    18         (7)  IF THE SUBJECT OF A COMPLAINT IS AN ATTORNEY AT LAW,  <--
    19     THE COMMISSION SHALL REFER AN ALLEGED VIOLATION OF THIS
    20     SUBSECTION TO THE BOARD TO BE INVESTIGATED, CONSIDERED AND
    21     RESOLVED IN A MANNER CONSISTENT WITH THE PENNSYLVANIA RULES
    22     OF PROFESSIONAL CONDUCT.
    23         (8)  EXCEPT FOR ANY ALLEGED VIOLATION REFERRED TO THE
    24     BOARD UNDER PARAGRAPH (7), IF THE COMMISSION DETERMINES THAT
    25     A VIOLATION OF THIS SUBSECTION HAS OCCURRED, THE COMMISSION,
    26     AFTER INVESTIGATION, NOTICE AND HEARING:
    27             (i)  shall impose a civil penalty in an amount not to
    28         exceed $2,000; and
    29             (ii)  may prohibit a lobbyist or principal from
    30         lobbying for up to five years.
    20050S0001B1000                 - 17 -     

     1         (7) (9)  A lobbyist and principal shall maintain the       <--
     2     records relating to the conflict of interest set forth in
     3     paragraph (2) for a four-year period beginning on the date
     4     the conflict is discovered and, in the case of an
     5     investigation conducted under paragraph (6) (8), provide       <--
     6     copies of the records to the commission upon request.
     7         (8)  Complaints regarding violations of this subsection    <--
     8     involving a lobbyist or principal who is an attorney at law
     9     shall be referred to the board to be investigated, considered
    10     and resolved in a manner consistent with the Pennsylvania
    11     Rules of Professional Conduct.
    12     (e)  Unlawful acts.--
    13         (1)  A lobbyist or principal may not:
    14             (i)  Instigate the introduction of any legislation
    15         for the purpose of obtaining employment to lobby in
    16         opposition thereto.
    17             (ii)  Knowingly counsel any person to violate any
    18         provisions of this act or any other Federal or State law.
    19             (iii)  Engage in or counsel any person to engage in
    20         fraudulent conduct.
    21             (iv)  Attempt to influence a State official or
    22         employee on any legislative or administrative action by
    23         making or facilitating the making of a loan to the State
    24         official or employee.
    25             (v)  While engaging in lobbying on behalf of the
    26         principal, refuse to disclose to a State official or
    27         employee, upon request, the identity of the principal.
    28             (vi)  Commit a criminal offense arising from
    29         lobbying.
    30             (vii)  Influence or attempt to influence, by
    20050S0001B1000                 - 18 -     

     1         coercion, bribery or threat of economic sanction, any
     2         State official or employee in the discharge of the duties
     3         of his or her office.
     4             (viii)  Extort or otherwise unlawfully retaliate
     5         against a State official or employee by reason of the
     6         State official's or employee's position with respect to,
     7         or vote on, any administrative or legislative action.
     8             (ix)  Attempt to influence a State official or
     9         employee on any legislative or administrative action by
    10         the promise of financial support or the financing of
    11         opposition to his candidacy at any future election.
    12             (x)  Engage in conduct which brings the practice of
    13         lobbying or the legislative or executive branches of
    14         government into disrepute.
    15         (2)  The commission may receive complaints regarding
    16     violations of this subsection. If the commission determines a  <--
    17     violation of this subsection has occurred, the commission,
    18     after investigation, notice and hearing:
    19         (3)  IF THE SUBJECT OF A COMPLAINT IS AN ATTORNEY AT LAW,  <--
    20     THE COMMISSION SHALL REFER AN ALLEGED VIOLATION OF THIS
    21     SUBSECTION TO THE BOARD.
    22         (4)  EXCEPT FOR ANY ALLEGED VIOLATION REFERRED TO THE
    23     BOARD UNDER PARAGRAPH (3), IF THE COMMISSION DETERMINES THAT
    24     A VIOLATION OF THIS SUBSECTION HAS OCCURRED, THE COMMISSION,
    25     AFTER INVESTIGATION, NOTICE AND HEARING:
    26             (i)  shall impose a civil penalty in an amount not to
    27         exceed $2,000; and
    28             (ii)  may prohibit a lobbyist or principal from
    29         lobbying for up to five years.
    30         (3)  The commission:                                       <--
    20050S0001B1000                 - 19 -     

     1             (i)  may, as it deems appropriate, refer an alleged
     2         violation of this subsection to the Attorney General for
     3         investigation and prosecution; and
     4             (ii)  shall, if the subject of the complaint is an
     5         attorney at law, refer an alleged violation of this
     6         subsection to the board.
     7         (5)  EXCEPT FOR ANY ALLEGED VIOLATION REFERRED TO THE      <--
     8     BOARD UNDER PARAGRAPH (3), THE COMMISSION MAY, AS IT DEEMS
     9     APPROPRIATE, REFER AN ALLEGED VIOLATION OF THIS SUBSECTION TO
    10     THE ATTORNEY GENERAL FOR INVESTIGATION AND PROSECUTION.
    11  Section 8.  Administration and enforcement.
    12     (a)  Criminal enforcement.--If the department or commission
    13  has reason to believe an intentional violation of this act has
    14  been committed, it shall refer all relevant documents and other
    15  information to the Office of Attorney General and, if the
    16  lobbyist or principal is an attorney at law, to the board.
    17     (b)  Forms.--The department shall prescribe registration and
    18  reporting forms to be used pursuant to this act. The forms shall
    19  be available on a publicly accessible World Wide Web page. All
    20  information requested on the forms shall be provided to the best
    21  of the knowledge, information and belief of the person required
    22  to file and shall be signed under oath or equivalent
    23  affirmation.
    24     (c)  Attorney General.--In addition to the authority
    25  conferred upon the Attorney General under the act of October 15,
    26  1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act,
    27  the Attorney General has the authority to investigate and
    28  prosecute a violation of this act.
    29     (d)  Advice and opinions.--The commission shall provide
    30  advice and opinions in accordance with the procedures as set
    20050S0001B1000                 - 20 -     

     1  forth in 65 Pa.C.S. § 1107 (relating to powers and duties of
     2  commission) to a lobbyist, principal, the department, the board
     3  or a State official or employee who seeks advice regarding
     4  compliance with this act. A principal, lobbyist or other
     5  individual who acts in good faith based on the written advice or
     6  opinion shall not be held liable for a violation of this act,
     7  provided that the material facts are as stated in the request.
     8     (e)  Public inspection and copying.--The department shall
     9  make registration statements, expense reports, termination
    10  notices and termination reports which have been filed with the
    11  department available for public inspection and provide copies of
    12  these documents at a price which shall not exceed the actual
    13  cost of copying. Documents that are maintained and reproducible
    14  in an electronic format shall be provided in that format upon
    15  request.
    16     (f)  Annual reporting.--The department shall prepare and
    17  publish an annual report on lobbying activities in this
    18  Commonwealth. The department shall also annually publish a
    19  listing of registered principals, identifying affiliated
    20  political action committees and lobbyists who are registered to
    21  lobby for the principal, and a listing of lobbyists, identifying
    22  affiliated political action committees and the principals for
    23  whom the lobbyist is registered to lobby.
    24     (g)  Retention of records.--Registration statements, expense
    25  reports, termination notices and termination reports shall be
    26  available for public inspection with the department for a four-
    27  year period which commences on the date of filing.
    28     (h)  Audits.--Annually, the commission shall conduct audits
    29  of the registration statements and expense reports filed by
    30  registrants. The registrants to be audited shall be selected by
    20050S0001B1000                 - 21 -     

     1  lottery. The number of registrants selected for audits shall be
     2  sufficient to ensure compliance with this act. An audit report
     3  and related findings shall be confidential; however, the
     4  commission may include the relevant portion of an audit as part
     5  of its findings of fact in an order which results from an
     6  investigation arising out of an audit.
     7     (i)  Investigation and hearings.--The commission, through its
     8  executive director, may initiate an investigation and hold a
     9  hearing, concerning negligent conduct by a lobbyist or
    10  principal, in accordance with 65 Pa.C.S. §§ 1107 (relating to
    11  powers and duties of commission) and 1108 (relating to
    12  investigations by commission).
    13     (j)  Directory.--On or before May 1 of each odd-numbered
    14  year, the department shall produce and distribute a directory of
    15  all registered lobbyists, including photographs. Copies of this
    16  directory shall be made available to the public at a price not
    17  to exceed the actual cost of production. All revenue received by
    18  the department from the sales of this directory shall be
    19  deposited into the fund.
    20     (k)  Computer file.--The department shall provide the
    21  Legislative Data Processing Committee all data relating to
    22  registration statements and amendments to such statements,
    23  expense reports, termination notices and termination reports,
    24  and the committee shall make all such information available on a
    25  publicly accessible World Wide Web page IN A FULLY SEARCHABLE     <--
    26  FORMAT.
    27     (l)  Cost-of-living adjustment.--On a biennial basis
    28  commencing in January 2008, the commission shall review the
    29  threshold for reporting under section 5(e) (relating to
    30  reporting) and the threshold for exemption under section 6
    20050S0001B1000                 - 22 -     

     1  (relating to exemption from registration and reporting) and may
     2  increase these amounts to levels deemed reasonable for assuring
     3  appropriate disclosure. The commission shall publish any such
     4  adjusted threshold amounts in the Pennsylvania Bulletin by June
     5  1, 2008, and every two years thereafter as necessary.
     6  Section 9.  Penalties.
     7     (a)  Notice of noncompliance.--The commission shall issue a
     8  notice of noncompliance to any lobbyist or principal that has
     9  failed to register or report as required by this act. The notice
    10  shall state the nature of the alleged noncompliance and the
    11  civil and criminal penalties for failure to register, failure to
    12  file or filing a report containing a false statement or which is
    13  incomplete. The notice shall also advise that if the lobbyist or
    14  principal disagrees with the alleged noncompliance, the lobbyist
    15  or principal may appeal such before the commission. The notice
    16  shall set forth the deadline and manner in which to request a
    17  hearing.
    18     (b)  Hearing.--
    19         (1)  If a hearing is requested, the commission shall
    20     determine at the hearing:
    21             (i)  whether the recipient of the notice is required
    22         to register or report under this act; and
    23             (ii)  whether the failure to register or report was
    24         negligent or intentional.
    25         (2)  If the commission finds that the failure to register
    26     or report was intentional, it shall refer the matter to the
    27     Attorney General and, if the lobbyist or principal is an
    28     attorney at law, to the board.
    29         (3)  If the commission finds that failure to register or
    30     report was negligent, it shall determine the amount of the
    20050S0001B1000                 - 23 -     

     1     civil penalty to be imposed.
     2         (4)  Hearings under this subsection shall be conducted by
     3     the commission in accordance with 65 Pa.C.S. §§ 1107(14)
     4     (relating to powers and duties of commission) and 1108(e)
     5     (relating to investigations by commission).
     6     (c)  Negligent failure to register or report.--Negligent
     7  failure to register or report as required by this act is
     8  punishable by a civil penalty not exceeding $50 for each late
     9  day. After a hearing under subsection (b), in the case of
    10  negligent failure to register or report, the commission may,
    11  upon the majority vote of all of its members, levy a civil
    12  penalty as provided for in this subsection. The total amount of
    13  the civil penalty levied shall not be limited by any other
    14  provision of law. The commission shall notify the board of any
    15  lobbyist or principal who is an attorney at law against whom a
    16  civil penalty is imposed. The commission shall have standing to
    17  apply to the Commonwealth Court to seek enforcement of an order
    18  imposing a civil penalty under this section.
    19     (d)  Failure to comply after notice.--A lobbyist or principal
    20  who fails to comply with the requirements of this act, after
    21  notice of noncompliance and after a hearing, if one is
    22  requested, may be prohibited from lobbying for up to five years.
    23  The prohibition shall be imposed as provided by subsection
    24  (e)(4).
    25     (e)  Intentional violations.--
    26         (1)  Any lobbyist or principal who intentionally fails to
    27     register or report as required by this act commits a
    28     misdemeanor of the second degree.
    29         (2)  A registrant who files a report under this act with
    30     knowledge that the report contains a false statement or is
    20050S0001B1000                 - 24 -     

     1     incomplete commits a misdemeanor of the second degree.
     2         (3)  Except as set forth in paragraph (1) or (2), any
     3     lobbyist or principal who intentionally violates this act
     4     commits a misdemeanor of the third degree.
     5         (4)  In addition to any criminal penalties imposed
     6     pursuant to this act, the commission may prohibit a lobbyist
     7     or principal from lobbying for up to five years for conduct
     8     which constitutes an offense under this subsection. No
     9     criminal prosecution or conviction shall be required for the
    10     imposition of the prohibition authorized by this paragraph.
    11     The commission shall not impose the prohibition under this
    12     paragraph unless the lobbyist or principal has been afforded
    13     the opportunity for a hearing which shall be conducted by the
    14     commission in accordance with 65 Pa.C.S. §§ 1107(14) and
    15     1108(e).
    16     (f)  Attorneys.--Nothing in this act shall be construed as
    17  restricting the board's authority to discipline an attorney at
    18  law who is acting as a lobbyist or principal.
    19  Section 10.  Registration fees; fund established; system;
    20                 regulations.
    21     (a)  Registration fees.--At the time of registration, a
    22  principal or lobbyist required to be registered under this act
    23  shall pay a biennial registration fee of $100 to the department.
    24     (b)  Fund established.--All money received from registration
    25  fees under subsection (a) shall be deposited in a restricted
    26  receipts account to be known as the Lobbying Accountability
    27  Fund, which is hereby established as a separate fund in the
    28  State Treasury. All moneys deposited in the fund are hereby
    29  appropriated to the department as a continuing appropriation for
    30  the exclusive purpose of carrying out this act.
    20050S0001B1000                 - 25 -     

     1     (c)  Computerized filing system.--The department shall
     2  implement a fully accessible system to accommodate the use of
     3  computerized filing. Each registered lobbyist and principal
     4  shall elect on an annual basis whether he or she will file all
     5  of the documents required by this act either electronically or
     6  on paper with the department.
     7     (d)  Regulations.--A committee comprised of the Secretary of
     8  the Senate, the Chief Clerk of the House of Representatives, the
     9  Attorney General, the Secretary of the Commonwealth, the
    10  executive director of the commission, the chief counsel of the
    11  board and the General Counsel, or their designees, shall have
    12  authority to promulgate regulations necessary to carry out this
    13  act. The executive director of the commission shall be chairman
    14  of this committee. The initial proposed regulations shall be
    15  submitted within 180 days of the effective date of this section
    16  to the Independent Regulatory Review Commission under section 5
    17  of the act of June 25, 1982 (P.L.633, No.181), known as the
    18  Regulatory Review Act. Any meeting at which the committee plans
    19  to approve proposed regulations or other official actions shall
    20  be held in accordance with 65 Pa.C.S. Ch. 7 (relating to open
    21  meetings). The department shall provide sufficient staff and
    22  other administrative support to assist the committee. The
    23  committee shall also prepare and publish a manual setting forth
    24  guidelines for accounting and reporting. The regulations and
    25  manual shall be drafted to accommodate the use of computerized
    26  recordkeeping, electronic filing of all required registrations
    27  and reports provided for under this act and retention of
    28  registration statements and reports provided for under this act
    29  by electronic means.
    30  Section 11.  Nonapplicability.
    20050S0001B1000                 - 26 -     

     1     Nothing in this act shall be construed to effect the
     2  provisions of 18 Pa.C.S. § 7515.
     3  Section 12.  Repeal.
     4     The provisions of 65 Pa.C.S. Ch. 13 are repealed.
     5  Section 13.  Notice.
     6     The Secretary of the Commonwealth shall transmit to the
     7  Legislative Reference Bureau, for publication in the
     8  Pennsylvania Bulletin, notice of full implementation of the
     9  computerized filing system required under section 10(c)
    10  (relating to registration fees; fund established; system;
    11  regulations).
    12  Section 14.  Effective date.
    13     This act shall take effect as follows:
    14         (1)  The following provisions shall take effect
    15     immediately:
    16             (i)  Sections 5(b)(3)(iii) and 10(d).
    17             (ii)  This section.
    18         (2)  The remainder of this act shall take effect on the
    19     latter of either of the following:
    20             (i)  Publication of the notice required under section
    21         13.
    22             (ii)  The effective date of the regulations
    23         promulgated under section 10(d).





    A18L46MSP/20050S0001B1000       - 27 -
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