PRINTER'S NO. 4216
No. 2713 Session of 2008
INTRODUCED BY SCHRODER, DeLUCA, DENLINGER, FAIRCHILD, GODSHALL,
GOODMAN, HENNESSEY, MANDERINO, MELIO, MENSCH, MOUL, MURT,
MUSTIO, NAILOR, PYLE, REICHLEY, ROAE, ROCK, ROHRER, RUBLEY,
SAYLOR, STEIL, SWANGER, TRUE, VITALI, WATSON AND HORNAMAN,
JULY 14, 2008
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JULY 14, 2008
AN ACT
1 Amending the act of June 3, 1937 (P.L.1333, No.320), entitled
2 "An act concerning elections, including general, municipal,
3 special and primary elections, the nomination of candidates,
4 primary and election expenses and election contests; creating
5 and defining membership of county boards of elections;
6 imposing duties upon the Secretary of the Commonwealth,
7 courts, county boards of elections, county commissioners;
8 imposing penalties for violation of the act, and codifying,
9 revising and consolidating the laws relating thereto; and
10 repealing certain acts and parts of acts relating to
11 elections," providing for disclosure of contributions by
12 contractors and eligibility for certain contracts.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. The act of June 3, 1937 (P.L.1333, No.320), known
16 as the Pennsylvania Election Code, is amended by adding a
17 section to read:
18 Section 1641.1. Disclosure of Contributions by Contractors
19 and Eligibility for Certain Contracts.--
20 (a) The following shall apply regarding contract awards:
21 (1) No Commonwealth agency may award a contract to an
1 applicant under 62 Pa.C.S. §§ 513 (relating to competitive
2 sealed proposals), 514 (relating to small procurements), 515
3 (relating to sole source procurement), 516 (relating to
4 emergency procurement), 518 (relating to competitive selection
5 procedures for certain services) or 519 (relating to selection
6 procedure for insurance and notary bonds) unless the applicant
7 has submitted a completed and signed disclosure statement to the
8 agency in compliance with this section.
9 (2) Except as provided in paragraph (3), an applicant shall
10 submit a completed and signed disclosure statement to the agency
11 with other bid or proposal materials relating to the contract on
12 or prior to the time and date established by the agency for
13 receipt of bids or proposals.
14 (3) For contracts awarded under 62 Pa.C.S. §§ 514, 515 or
15 516 that do not require the submission of bids or offers, an
16 applicant shall submit a completed disclosure statement, as
17 directed by the agency, provided that the agency does not award
18 the contract to the applicant prior to the agency's receipt of
19 the completed and signed statement.
20 (4) A bid or offer made without a completed and signed
21 disclosure statement shall not be considered a responsive bid or
22 offer.
23 (b) The following shall apply regarding disclosure updates:
24 (1) A contractor who has been awarded a contract under 62
25 Pa.C.S. §§ 513, 514, 515, 516, 518 or 519 shall, during the term
26 of the contract and for one year thereafter, disclose any
27 reportable contribution within five days of making the
28 contribution or learning of the contribution.
29 (2) Each contract awarded under 62 Pa.C.S. §§ 513, 514, 515,
30 518 or 519 shall contain a provision requiring the contractor to
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1 disclose any reportable contribution within five days of making
2 the contribution or learning of the contribution.
3 (3) Each contribution reported under paragraph (1) shall be
4 reported to the Department of State as a disclosure update.
5 (c) The following shall apply regarding disclosure
6 requirements:
7 (1) All public notice given by a Commonwealth agency under
8 this section shall include information regarding the disclosure
9 requirements of this subsection.
10 (2) All invitations for bids, requests for proposals and
11 other agency communications with prospective contractors
12 regarding a contract, which are awarded under 62 Pa.C.S. §§ 513,
13 514, 515, 516, 518 or 519, shall include a blank disclosure
14 statement and information regarding the disclosure requirements
15 of this subsection.
16 (3) The Department of General Services and the Department of
17 State shall post blank disclosure statements, blank disclosure
18 update forms and information regarding the disclosure
19 requirements of this subsection on their respective publicly
20 accessible Internet websites.
21 (4) The Department of General Services and the Department of
22 State shall make available, upon request, blank disclosure
23 statements, blank disclosure update forms and information
24 regarding the disclosure requirements of this subsection.
25 (5) An applicant who has been awarded a contract under 62
26 Pa.C.S §§ 513, 514, 515, 516, 518 or 519, shall be notified of
27 the disclosure update requirements of subsection (b) prior to
28 execution of the contract.
29 (d) The following shall apply to content of disclosure
30 statement and updates:
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1 (1) Each disclosure statement submitted pursuant to
2 subsection (a) shall include the following information:
3 (i) The name, business address and telephone number of the
4 applicant.
5 (ii) The contract number or other identifying information
6 regarding the contract sought by the applicant.
7 (iii) The names, business addresses and telephone numbers of
8 all lobbyists paid by the applicant to lobby a Commonwealth
9 agency to influence the awarding of a contract within one year
10 prior to the date of the application.
11 (iv) A list of all reportable contributions made within two
12 years prior to the date of the application. For each reportable
13 contribution made, the applicant shall identify the recipient of
14 the contribution and the date and amount of the contribution.
15 (v) All fundraising events hosted within two years prior to
16 the date of the application by the applicant or any of the
17 applicant's affiliated contributors for the purpose of
18 soliciting or receiving contributions to a candidate for
19 nomination or election to an office within the executive branch
20 of the Commonwealth or to the candidate's political committee,
21 or to an individual who holds an elected office within the
22 executive branch of the Commonwealth or the individual's
23 candidate political committee, and the date and amount of
24 contributions solicited or received at each event.
25 (vi) The name, business address and telephone number of all
26 subcontractors, which the applicant intends to use on the
27 contract.
28 (2) Each disclosure update submitted pursuant to subsection
29 (b) shall include the following information:
30 (i) The name, business address and telephone number of the
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1 reporting contractor.
2 (ii) The contract number or other identifying information
3 regarding any contract held by the reporting contractor.
4 (iii) Information regarding the reportable contribution,
5 which is the subject of the update, including the identity of
6 the recipient and the date and the amount of the contribution.
7 (3) In consultation with the Secretary of the Commonwealth,
8 the Secretary of General Services shall determine the form of
9 the disclosure statement required under subsection (a) and the
10 disclosure update form required under subsection (b).
11 (e) The following shall apply to disclosure statements and
12 updates to be posted:
13 (1) A Commonwealth agency shall promptly transmit to the
14 Department of State a copy of the disclosure statement of any
15 applicant who is awarded a contract by the agency under 62
16 Pa.C.S. §§ 513, 514, 515, 516, 518 or 519.
17 (2) The Department of State shall post each disclosure
18 statement and each disclosure update form received under this
19 section on its publicly accessible Internet website starting no
20 later than five days after the statement has been received by
21 the department. Each statement and related update form shall
22 remain posted for a period of time encompassing the length of
23 the contract and one year thereafter. To the extent practicable,
24 each statement and its related updates shall be posted together.
25 (3) The Department of State shall make disclosure statements
26 and disclosure update forms received under this section
27 available for public inspection and copying.
28 (f) If an individual makes aggregate contributions in excess
29 of $2,500 during a calendar year to any of the following persons
30 or if a person and the person's affiliated contributors make
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1 aggregate contributions in excess of $10,000 during a calendar
2 year to any of the following persons, the individual or person
3 shall not be eligible to enter into any contract awarded under
4 62 Pa.C.S. §§ 513, 514, 515, 516, 518 or 519, nor shall the
5 person be eligible to be a subcontractor under any such
6 contract:
7 (1) a single candidate for nomination or election to any
8 elected office within the executive branch of the Commonwealth
9 or to the candidate's political committee; or
10 (2) an individual who holds an elected office within the
11 executive branch of the Commonwealth or to the individual's
12 candidate political committee, during the term of office to
13 which the candidate has been elected or during the office
14 holder's term of office.
15 (g) Exceptions are as follows:
16 (1) Any provision of this section may be waived if the
17 Secretary of General Services certifies in writing that
18 compliance with the provision may result in the loss of Federal
19 funds by the Commonwealth.
20 (2) The requirements of subsection (a) may be waived for any
21 contract to be awarded under 62 Pa.C.S. § 516 if the secretary
22 certifies in writing that submission of a disclosure statement
23 prior to the awarding of the contract will cause a delay that
24 will impeded the Commonwealth's ability to respond to the
25 specific threat to public health, welfare or safety, which
26 necessitates the emergency procurement; provided that the
27 disclosure statement required under subsection (a) is submitted
28 to the agency no later than 14 days after the execution of the
29 contract.
30 (3) All written certifications required under this section
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1 shall be considered public records under the act of June 21,
2 1957 (P.L.390, No.212), referred to as the Right-to-Know Law.
3 (h) The following shall apply to prohibited conduct and
4 penalties:
5 (1) A contract made in violation of this section may be
6 declared void at the option of the Commonwealth.
7 (2) No applicant or reporting contractor shall make a
8 material misstatement or omission in any of the disclosures
9 required under subsections (a) or (b).
10 (3) If the applicant or contractor makes a material
11 misstatement or omission in a disclosure, the applicant or
12 contract may be debarred or suspended under 62 Pa.C.S. § 531
13 (relating to debarment or suspension).
14 (i) This section shall apply to contracts that are solicited
15 on or after the effective date of this section.
16 (j) As used in this section, the following words and phrases
17 shall have the meanings given to them in this subsection:
18 "Affiliated contributor." Any of the following:
19 (1) A parent, subsidiary or otherwise affiliated entity of
20 the applicant, the reporting contractor or any other person.
21 (2) An officer, director, associate, controlling
22 shareholder, individual owner, partner or limited partner of the
23 applicant, the reporting contractor or any other person.
24 (3) An officer, director, associate, controlling
25 shareholder, individual owner, partner or limited partner of a
26 parent, subsidiary or otherwise affiliated entity of the
27 applicant, the reporting contractor or any other person.
28 (4) A political committee controlled by an applicant or a
29 reporting contractor.
30 (5) A political committee controlled by a parent, subsidiary
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1 or otherwise affiliated entity of the applicant, the reporting
2 contractor or any other person.
3 (6) A lobbyist identified on an applicant's disclosure
4 statement or a reporting contractor's disclosure update.
5 (7) A member of the immediate family of an affiliated
6 contributor.
7 The term does not include any person who is not authorized to
8 make contributions under this article.
9 "Applicant." A bidder, offeror or other person seeking a
10 contract, which is to be awarded under 62 Pa.C.S. §§ 513
11 (relating to competitive sealed proposals), 514 (relating to
12 small procurements), 515 (relating to sole source procurement),
13 516 (relating to emergency procurement), 518 (relating to
14 competitive selection procedures for certain services) or 519
15 (relating to selection procedure for insurance and notary
16 bonds).
17 "Bidder." As defined in 62 Pa.C.S. § 103 (relating to
18 definitions).
19 "Commonwealth agency." As defined in 62 Pa.C.S. § 103
20 (relating to definitions).
21 "Contract." As defined in 62 Pa.C.S. § 103 (relating to
22 definitions).
23 "Contractor." As defined in 62 Pa.C.S. § 103 (relating to
24 definitions).
25 "Immediate family." A parent, spouse, child, brother or
26 sister.
27 "Offeror." As defined in 62 Pa.C.S. § 103 (relating to
28 definitions).
29 "Reportable contribution." Any of the following:
30 (1) A contribution made by a person who is an applicant or
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1 any of the applicant's affiliated contributors to:
2 (i) a candidate for nomination or election to an office
3 within the executive branch of the Commonwealth or to the
4 candidate's political committee, or to an individual who holds
5 an elected office within the executive branch of the
6 Commonwealth or to the individual's candidate political
7 committee; or
8 (ii) any political committee, other than the candidate
9 political committee of a candidate for nomination or election to
10 an office within the executive branch of the Commonwealth office
11 or the candidate political committee of an individual who holds
12 an elected office within the executive branch of the
13 Commonwealth or the individual's candidate political committee,
14 with the purpose and intent that the committee to whom the
15 contribution is made will, directly or indirectly, make the
16 contribution available to a candidate for nomination or election
17 to an office within the executive branch of the Commonwealth or
18 to the candidate's political committee, or to an individual who
19 holds an elected office within the executive branch of the
20 Commonwealth or the individual's candidate political committee.
21 (2) A contribution made by any person to a candidate for
22 nomination or election to an office within the executive branch
23 of the Commonwealth or to the candidate's political committee,
24 or to an individual who holds an elected office within the
25 executive branch of the Commonwealth or to the individual's
26 candidate political committee, for which a person who is an
27 applicant or any of the applicant's affiliated contributors acts
28 as an intermediary.
29 (3) A contribution made by a person who is a reporting
30 contractor or any of the reporting contractor's affiliated
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1 contributors to:
2 (i) a candidate for nomination or election to an office
3 within the executive branch of the Commonwealth or to the
4 candidate's political committee, or to an individual who holds
5 an elected office within the executive branch of the
6 Commonwealth or to the individual's candidate political
7 committee; or
8 (ii) any political committee, other than the candidate
9 political committee of a candidate for nomination or election to
10 an office within the executive branch of the Commonwealth office
11 or the candidate political committee of an individual who holds
12 an elected office within the executive branch of the
13 Commonwealth or the individual's candidate political committee,
14 with the purpose and intent that the committee to whom the
15 contribution is made will, directly or indirectly, make the
16 contribution available to a candidate for nomination or election
17 to an office within the executive branch of the Commonwealth or
18 to the candidate's political committee.
19 (4) A contribution made by any person to a candidate for
20 nomination or election to an office within the executive branch
21 of the Commonwealth or to the candidate's political committee,
22 or to an individual who holds an elected office within the
23 executive branch of the Commonwealth or to the individual's
24 candidate political committee, for which a person who is a
25 reporting contractor or any of the reporting contractor's
26 affiliated contributors acts as an intermediary.
27 Section 2. This act shall take effect in 60 days.
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