1Amend Bill, page 1, line 3, by inserting after "proposals"

2; and, in ethics in public contracting, further providing for
3policy, and providing for definitions and for contributions by 
4applicants and contractors

5Amend Bill, page 1, lines 6 and 7, by striking out all of
6said lines and inserting

7Section 1. Sections 513(e) and 2301 of Title 62 of the 
8Pennsylvania Consolidated Statutes are amended to read:

9Amend Bill, page 1, by inserting after line 17

10§ 2301. Policy.

11Public employment is a public trust. It is the policy of this
12Commonwealth to promote and balance the objective of protecting
13government integrity and the objective of facilitating the
14recruitment and retention of personnel needed by this
15Commonwealth. Implementation of this policy requires that public
16employees discharge their duties impartially so as to assure
17fair competitive access to Commonwealth agency procurement by
18responsible contractors and that they conduct themselves in a
19manner that fosters public confidence in the integrity of the
20Commonwealth procurement process. It is also essential that
21those doing business with the Commonwealth agencies observe high
22standards of honesty and integrity. The General Assembly 
23declares that banning all types of political campaign 
24contributions by a contractor and those who desire to be a 
25contractor is necessary to prevent corruption and the appearance 
26of corruption that may arise when political campaign 
27contributions and the awarding of contracts with the 
28Commonwealth are intermingled.

29Section 2. Title 62 is amended by adding sections to read:

30§ 2301.1. Definitions.

31The following words and phrases when used in this chapter
32shall have the meanings given to them in this section unless the
33context clearly indicates otherwise:

34"Affiliate." Any of the following:

35(1) A parent, subsidiary or otherwise affiliated entity

1of an applicant or a contractor.

2(2) An officer, director, associate, controlling
3shareholder, individual owner, partner or limited partner of
4an applicant or a contractor.

5(3) An officer, director, associate, controlling
6shareholder, individual owner, partner or limited partner of
7a parent, subsidiary or otherwise affiliated entity of an
8applicant or a contractor.

9(4) A political committee controlled by an applicant or
10a contractor.

11(5) A political committee controlled by a parent,
12subsidiary or otherwise affiliated entity of an applicant or
13a contractor.

14(6) A member of the immediate family of an individual
15described in paragraphs (1), (2), (3), (4) and (5).

16"Applicant." A bidder, offeror or other person seeking a 
17contract, which is to be awarded under section 513 (relating to 
18competitive sealed proposals), 514 (relating to small 
19procurements), 515 (relating to sole source procurement), 516 
20(relating to emergency procurement), 518 (relating to 
21competitive selection procedures for certain services) or 519 
22(relating to selection procedure for insurance and notary 
23bonds).

24"Elected official." An individual elected by the public to
25serve a term in an elective office. The term shall include an
26individual appointed to fill an unexpired term in an elective
27office.

28"Elective office." A position in a governmental body to
29which an individual is required under the Constitution of the
30Commonwealth or by State law to be elected by the public.

31"Immediate family." A parent, spouse, child, brother or 
32sister.

33"Prohibited contribution." Any of the following:

34(1) A contribution made by an applicant or contractor or
35an affiliate of an applicant or a contractor to:

36(i) a candidate for nomination or election to an
37elective office or to the candidate's political
38committee;

39(ii) an elected official or to the elected
40official's candidate political committee; or

41(iii) a political committee not described in
42subparagraph (i) with the purpose and intent that the
43political committee will, directly or indirectly, make
44the contribution available to a candidate for nomination
45or election to an elective office or to the candidate's
46political committee, or to an elected official or the
47elected official's candidate political committee.

48(2) A contribution made by a person to a candidate for
49nomination or election to an elective office or to the
50candidate's political committee, or to an elected official or
51to the elected official's candidate political committee, for

1which a person who is an applicant or contractor or any of
2their respective affiliates acts as an intermediary.

3§ 2304. Contributions by applicants and contractors.

4(a) Applicants.--

5(1) No Commonwealth agency may award a contract to an 
6applicant under section 513 (relating to competitive sealed 
7proposals), 514 (relating to small procurements), 515 
8(relating to sole source procurement), 516 (relating to 
9emergency procurement), 518 (relating to competitive 
10selection procedures for certain services) or 519 (relating 
11to selection procedure for insurance and notary bonds) if the 
12applicant or an affiliate of the applicant has made a 
13prohibited contribution within four years prior to becoming 
14an applicant.

15(2) Except as provided in paragraph (3), an applicant
16shall submit a signed affidavit to the agency with other bid
17or proposal materials relating to the contract on or prior to
18the time and date established by the agency for receipt of
19bids or proposals. The affidavit shall be made under oath and
20shall state that neither the applicant nor any of the
21applicant's affiliates has made a prohibited contribution
22within four years prior to the applicant's becoming an
23applicant.

24(3) For contracts to be awarded under section 514, 515 
25or 516 that do not require the submission of bids or offers, 
26an applicant shall submit a signed affidavit as directed by 
27the agency, but prior to the agency's award of the contract.

28(4) A bid or offer made without a signed affidavit shall
29not be considered a responsive bid or offer.

30(b) Contractors.--

31(1) A contractor who has been awarded a contract under 
32section 513, 514, 515, 516, 518 or 519 shall not make a 
33prohibited contribution and shall prohibit the contractor's 
34affiliates from making a prohibited contribution, during the 
35term of the contract.

36(2) Each contract awarded under section 513, 514, 515, 
37516, 518 or 519 shall contain a provision requiring the 
38contractor to submit a signed affidavit made under oath, 
39stating that the contractor and all of its affiliates are in 
40compliance with the requirements of paragraph (1). The 
41affidavit shall be submitted at the commencement of the 
42contract, on each anniversary of the commencement of the 
43contract and upon expiration of the contract.

44(c) Form of affidavit.--

45(1) The Department of General Services shall develop the
46form of affidavit to be used by applicants and contractors
47under this section.

48(2) All invitations for bids, requests for proposals and 
49other agency communications with prospective contractors 
50regarding a contract awarded under section 513, 514, 515, 
51516, 518 or 519 shall include an affidavit form and 

1information regarding the prohibitions contained under this 
2section.

3(3) The Department of General Services and the
4Department of State shall post the affidavit form and
5information regarding the prohibitions of this section on
6their respective publicly accessible Internet websites and
7shall otherwise make the forms and information available upon
8request.

9(d) Penalties.--An applicant, contractor or affiliate of a
10contractor who submits a false affidavit or makes a prohibited
11contribution in violation of this section may, in addition to
12penalties imposed by law other than under this section, be
13debarred or suspended under section 531 (relating to debarment
14or suspension).

15(e) Application of section.--This section shall apply to
16bids, offers or proposals that are solicited, and contracts that
17are awarded, on or after the effective date of this section.

18Amend Bill, page 2, line 1, by striking out "2" and inserting

19 3

20Amend Bill, page 2, line 1, by striking out "in 60 days" and 
21inserting

22 immediately