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PRINTER'S NO. 528
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
517
Session of
2017
INTRODUCED BY BAKER, BLAKE, WARD, GREENLEAF, BREWSTER, FONTANA,
COSTA, MENSCH, RAFFERTY, AUMENT, YUDICHAK, VULAKOVICH AND
SCHWANK, MARCH 16, 2017
REFERRED TO STATE GOVERNMENT, MARCH 16, 2017
AN ACT
Amending Titles 65 (Public Officers) and 74 (Transportation) of
the Pennsylvania Consolidated Statutes, in ethics standards
and financial disclosure, further providing for definitions,
for restricted activities and for statement of financial
interests; prescribing penalties; in lobbying disclosure,
further providing for definitions and for reporting; and, in
Turnpike Commission standards of conduct, further providing
for code of conduct.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "aggregate" and "gift" in
section 1102 of Title 65 of the Pennsylvania Consolidated
Statutes are amended and the section is amended by adding
definitions to read:
§ 1102. Definitions.
The following words and phrases when used in this chapter
shall have, unless the context clearly indicates otherwise, the
meanings given to them in this section:
* * *
["Aggregate." The total of all gifts received from a single
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source as provided in section 1105(b)(6) (relating to statement
of financial interests).]
* * *
"Commercial loan made in the ordinary course of business." A
loan from a bank or other financial institution on terms
generally available to the public.
* * *
"Gift." [As defined in section 13A03 (relating to
definitions).] Money or a thing of value received, other than
income, for which a consideration of equal or greater value is
not received. The term shall not include the following:
(1) A gift from a person other than a principal or
lobbyist that is valued at $50 or less. Gifts under this
paragraph shall be limited to $250 annually.
(2) A political contribution reported in accordance with
law.
(3) A gift from a parent, sibling, spouse, child,
stepchild, stepparent, stepsibling, grandparent, grandchild,
parent-in-law , sibling-in-law or other close relative when
the circumstances make it clear that the motivation for the
action was a personal or family relationship, including an
invitation to attend a personal or family social event.
(4) A devise, bequest, intestate estate distribution or
principal distribution of a trust.
(5) A gift available to the public or offered to members
of a group or class in which membership is not related to
being a public official or public employee.
(6) An award or prize given to competitors in any
contest or event open to the public, including a random
drawing.
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(7) An award, plaque and other ceremonial item valued at
$100 or less that is publicly presented or intended to be
publicly presented in recognition of public service of the
type customarily bestowed at similar ceremonies or that are
otherwise reasonable.
(8) An honorary degree bestowed by a public or private
college or university.
(9) A gift of nominal value, including, but not limited
to, a greeting card, pen, cap or t-shirt.
(10) Informational material.
(11) An item paid for by Federal, State or local
government.
(12) Complimentary attendance or food and beverage at a
bona fide charitable or political event.
(13) Food and beverage for consumption at any of the
following:
(i) A public event, including a public meeting.
(ii) An event directly related to the official or
employee's duties or responsibilities.
(iii) An event where the official or employee is a
speaker or a member of a panel.
(iv) A regularly scheduled event sponsored by a
constituent, Statewide organization or nonprofit
organization.
(14) Gifts exchanged between public officials and their
staffs on a voluntary basis.
(15) Gifts given on the basis of legitimate personal
friendship.
(16) Entertainment provided as part of an event at a
private residence for a nonofficial purpose.
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* * *
"Lobbyist." Any individual, association, corporation,
partnership, business trust or other entity that is registered
as a lobbyist under Chapter 13A (relating to lobbying
disclosure).
* * *
"Official action." An administrative action or legislative
action, as those terms are defined in section 13A03 (relating to
definitions), or an equivalent action taken by a political
subdivision.
* * *
"Principal." Any individual, association, corporation,
partnership, business trust or other entity that is registered
as a principal under Chapter 13A (relating to lobbying
disclosure).
* * *
Section 2. Section 1103 of Title 65 is amended by adding a
subsection to read:
§ 1103. Restricted activities.
* * *
(k) Gifts.--No public official or public employee shall
accept or solicit a gift from any of the following:
(1) A lobbyist or principal.
(2) A person that is seeking official action from the
public official or public employee.
Section 3. Section 1105(b)(5), (6) and (7) of Title 65 are
amended to read:
§ 1105. Statement of financial interests.
* * *
(b) Required information.--The statement shall include the
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following information for the prior calendar year with regard to
the person required to file the statement:
* * *
[(5) The name and address of any direct or indirect
source of income totaling in the aggregate $1,300 or more.
However, this provision shall not be construed to require the
divulgence of confidential information protected by statute
or existing professional codes of ethics or common law
privileges.
(6) The name and address of the source and the amount of
any gift or gifts valued in the aggregate at $250 or more and
the circumstances of each gift. This paragraph shall not
apply to a gift or gifts received from a spouse, parent,
parent by marriage, sibling, child, grandchild, other family
member or friend when the circumstances make it clear that
the motivation for the action was a personal or family
relationship. However, for the purposes of this paragraph,
the term "friend" shall not include a registered lobbyist or
an employee of a registered lobbyist.
(7) The name and address of the source and the amount of
any payment for or reimbursement of actual expenses for
transportation and lodging or hospitality received in
connection with public office or employment where such actual
expenses for transportation and lodging or hospitality exceed
$650 in an aggregate amount per year. This paragraph shall
not apply to expenses reimbursed by a governmental body or to
expenses reimbursed by an organization or association of
public officials or employees of political subdivisions which
the public official or employee serves in an official
capacity.]
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* * *
Section 4. Section 1109 of Title 65 is amended by adding a
subsection to read:
§ 1109. Penalties.
* * *
(a.1) Gifts.--
(1) Any person who intentionally violates the provisions
of section 1103(k) involving an amount of $250 or more
commits a felony and shall, upon conviction, be sentenced to
pay a fine of not more than $10,000 plus costs or
imprisonment for not more than five years, or both.
(2) A fine and penalty imposed under this section shall
be paid into the General Fund.
* * *
Section 5. The definitions of "gift," "hospitality" and
"lobbying" in section 13A03 of Title 65 are amended to read:
§ 13A03. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
["Gift." Anything which is received without consideration of
equal or greater value. The term shall not include a political
contribution otherwise reportable as required by law or a
commercially reasonable loan made in the ordinary course of
business. The term shall not include hospitality, transportation
or lodging.
"Hospitality." Includes all of the following:
(1) Meals.
(2) Beverages.
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(3) Recreation and entertainment.
The term shall not include gifts, transportation or lodging.]
* * *
"Lobbying." An effort to influence legislative action or
administrative action in this Commonwealth. The term includes:
(1) [direct] Direct or indirect communication[;].
(2) [office] Office expenses[; and].
[(3) providing any gift, hospitality, transportation or
lodging to a State official or employee for the purpose of
advancing the interest of the lobbyist or principal.]
* * *
Section 6. Sections 13A05(b)(2) and (3) and 13A09(g) of
Title 65 are amended to read:
§ 13A05. Reporting.
* * *
(b) Content.--
* * *
(2) Each expense report shall include the total costs of
all lobbying for the period. The total shall include all
office expenses, personnel expenses[, expenditures related to
gifts, hospitality, transportation and lodging to State
officials or employees,] and any other lobbying costs. The
total amount reported under this paragraph shall be allocated
in its entirety among the following categories:
[(i) The costs for gifts, hospitality,
transportation and lodging given to or provided to State
officials or employees or their immediate families.]
(ii) The costs for direct communication.
(iii) The costs for indirect communication.
(iv) Expenses required to be reported under this
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subsection shall be allocated to one of the three
categories listed under this section and shall not be
included in more than one category.
* * *
[(3) The following apply:
(i) In addition to reporting the totals required
under this subsection, the expense report must identify,
by name, position and each occurrence, a State official
or employee who receives from a principal or lobbyist
anything of value which must be included in the statement
under section 1105(b)(6) or (7) (relating to statement of
financial interests) as implemented by section 1105(d).
(ii) For purposes of this chapter, the amount
referred to in section 1105(b)(7) shall be considered an
aggregate amount per year.
(iii) For purposes of this chapter, the amount
referred to in section 1105(b)(7) shall not include the
cost of a reception which the State official or employee
attends in connection with public office or employment.
(iv) Written notice must be given to each State
official or employee who is listed in an expense report
under this paragraph at least seven days prior to the
report's submission to the department. Notice under this
subparagraph shall include the information which will
enable the State official or employee to comply with
section 1105(b)(6) and (7). For purposes of this chapter
and Chapter 11 (relating to ethics standards and
financial disclosure), section 1105(b)(6) and (7) shall
constitute mutually exclusive categories. For each
category enumerated in paragraph (2)(i), each notice
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shall include both the amount incurred during the quarter
and the cumulative amount incurred from January 1 through
the end of the applicable quarter.
(v) This paragraph shall not apply to anything of
value received from immediate family when the
circumstances make it clear that motivation for the
action was the personal or family relationship.]
* * *
§ 13A09. Penalties.
* * *
(g) Affirmative defense.--[Any of the following is an
affirmative defense to an action brought under Chapter 11
(relating to ethics standards and financial disclosure) or this
chapter:
(1) The respondent or defendant relied on advice and
opinions of the commission.
(2) The respondent or defendant relied on notice under
section 13A05(b)(3)(iv) (relating to reporting).
(3) The respondent or defendant did not receive notice
under section 13A05(b)(3)(iv).] The respondent or defendant
relying on advice and opinions of the commission is an
affirmative defense to an action brought under Chapter 11
(relating to ethics standards and financial disclosure) or
this chapter.
* * *
Section 7. Section 8204(a)(1) of Title 74 is amended to
read:
§ 8204. Code of conduct.
(a) Contents.--The commission shall adopt a comprehensive
code of conduct within 90 days of the effective date of this
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section. The code of conduct shall supplement all other
requirements under this chapter and shall provide guidelines
applicable to members and executive-level employees and the
immediate families of the members and executive-level employees
to enable them to avoid any perceived or actual conflict of
interest and to promote public confidence in the integrity and
impartiality of the commission. At a minimum, the code of
conduct adopted under this section shall provide that:
[(1) No member or executive-level employee may accept
any discount, gift, gratuity, compensation, travel, lodging
or other thing of value, in excess of the limits under 65
Pa.C.S. § 1105(b)(6) and (7) (relating to statement of
financial interests) directly or indirectly, from any
facility or business with which the commission has a
contractual relationship.]
* * *
Section 8. This act shall take effect in 60 days.
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