PRINTER'S NO. 209

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 208 Session of 1981


        INTRODUCED BY WILSON, JANUARY 26, 1981

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, JANUARY 26, 1981

                                     AN ACT

     1  Amending the act of October 4, 1978 (P.L.883, No.170), entitled
     2     "An act relating to conflicts of interest involving certain
     3     public officials serving in State or State agencies and local
     4     political subdivision positions and prohibiting certain
     5     public employees from engaging in certain conflict of
     6     interest activities requiring certain disclosures and
     7     providing penalties," further providing for contracting with
     8     governmental bodies by public officials and on the public
     9     disclosure thereof, for the practice before certain State
    10     agencies by former State employees, and for statements of
    11     financial interests.

    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  Subsections (c) and (e) of section 3, and
    15  paragraph (4) of subsection (b) of section 5, act of October 4,
    16  1978 (P.L.883, No.170), referred to as the Public Official and
    17  Employee Ethics Law, are amended to read:
    18  Section 3.  Restricted activities.
    19     * * *
    20         (c)  (1)  No public official or public employee or a
    21     member of his immediate family or any business in which the
    22     person or a member of the person's immediate family is a

     1     director, officer, owner or holder of stock exceeding 5% of
     2     the equity at fair market value of the business shall enter
     3     into any contract [valued at $500 or more] with [a] the
     4     governmental body [unless the contract has been awarded
     5     through an open and public process, including prior public
     6     notice and subsequent public disclosure of all proposals
     7     considered and contracts awarded] of which he is an official
     8     or employee.
     9         (2)  A public official or public employee or a member of
    10     his immediate family or any business in which the person or a
    11     member of the person's immediate family is a director,
    12     officer, owner or holder of stock exceeding 5% of the equity
    13     at fair market value of the business may enter into any
    14     contract with any other governmental body provided that there
    15     is public disclosure within five days of the making of the
    16     contract. Any contract made in violation of this subsection
    17     shall be voidable by a court of competent jurisdiction if the
    18     suit is commenced within 90 days of making of the contract,
    19     provided that the disclosure requirement has been met. If
    20     this requirement has not been met, such suit may be commenced
    21     at any time.
    22     * * *
    23     [(e)  No former official or public employee shall represent a
    24  person, with or without compensation, on any matter before the
    25  governmental body with which he has been associated for one year
    26  after he leaves that body.]
    27     (e)  No official or public employee who is involved in
    28  contracts, purchasing or rate-making shall for one year
    29  subsequent to public employment, be employed by any person, firm
    30  or corporation which contracts with supplies, goods or services
    19810H0208B0209                  - 2 -

     1  to, or is under the jurisdiction of, the governmental body or
     2  rate-making agency which employed the public official or
     3  employee.
     4     * * *
     5  Section 5.  Statement of financial interests.
     6     * * *
     7     (b)  The statement shall include the following information
     8  for the prior calendar year with regard to the person required
     9  to file the statement and the members of his immediate family:
    10     * * *
    11         (4)  The name and address of each creditor including
    12     mortgagees to whom is owed in excess of $5,000 and the
    13     interest rate thereon where the interest rate, at the time of
    14     the making of the loan or mortgage is lower than 2% below the
    15     prime interest rate existing on that date. However, loans or
    16     credit extended between members of the immediate family [and
    17     mortgages securing real property which is the principal
    18     residence of the person filing or of his spouse] shall not be
    19     included.
    20     * * *
    21     Section 2.  This act shall take effect immediately.






    L23L65HVY/19810H0208B0209        - 3 -