1Amending Title 65 (Public Officers) of the Pennsylvania
2Consolidated Statutes, further providing for short title of
3chapter, for purpose and for definitions; providing for
4establishment and operation of nominating committee, for
5Pennsylvania Public Integrity Commission, for limitations on
6activities by commissioners and employees, for powers and
7duties of commission, for authority, qualification, training
8and identification of investigative employees designated as
9law enforcement officers, for photo identification, for
10immunity of witnesses and for enforcement of subpoenas;
11further providing for restricted activities, for statement of
12financial interests required to be filed, for State Ethics
13Commission, for its powers and duties, for investigations by
14commission and for penalties; providing for costs,
15restitutions and forfeiture; and further providing for
16wrongful use of chapter; providing for disclosure of
17executive session testimony and investigative records, for
18privileged statements and reports, for commission disclosure
19of economic interests and for applicable statutes.

20The General Assembly of the Commonwealth of Pennsylvania
21hereby enacts as follows:

22Section 1. Sections 1101 and 1101.1 of Title 65 of the
23Pennsylvania Consolidated Statutes are amended to read:

24§ 1101. Short title of chapter.

25This chapter shall be known and may be cited as the [Public
26Official and Employee Ethics] Pennsylvania Public Integrity
 

1Commission Act.

2§ 1101.1. Purpose.

3(a) [Declarations.--The Legislature hereby declares that
4public office is a public trust and that any effort to realize
5personal financial gain through public office other than
6compensation provided by law is a violation of that trust. In
7order to strengthen the faith and confidence of the people of
8this Commonwealth in their government, the Legislature further
9declares that the people have a right to be assured that the
10financial interests of holders of or nominees or candidates for
11public office do not conflict with the public trust. Because
12public confidence in government can best be sustained by
13assuring the people of the impartiality and honesty of public
14officials, this chapter shall be liberally construed to promote
15complete financial disclosure as specified in this chapter.
16Furthermore, it is recognized that clear guidelines are needed
17in order to guide public officials and employees in their
18actions. Thus, the General Assembly by this chapter intends to
19define as clearly as possible those areas which represent
20conflict with the public trust.] Legislative intent.--It is the 
21intent of the General Assembly that this chapter promote the 
22following public policy purposes and objectives:

23(1) Uncover and investigate public corruption within the
24Commonwealth:

25(i) at all levels of government, including State,
26county and local; and

27(ii) in all branches of government, including
28legislative, executive and judicial.

29(2) Establish a Pennsylvania Public Integrity Commission
30which serves both a law enforcement role as a criminal

1justice agency concerning specific criminal violations and an
2educational role for public officials, public employees,
3district attorneys, other law enforcement entities, the
4General Assembly and the public.

5(3) Encourage the Pennsylvania Public Integrity
6Commission to work cooperatively with the Attorney General,
7the Pennsylvania State Police, district attorneys and other
8law enforcement entities in conducting its mission.

9(4) Promote administration of this chapter by the
10Pennsylvania Public Integrity Commission in a manner which is
11cognizant of the responsibilities and burdens of public
12officials and employees who have demonstrated an interest in
13promoting public confidence in government.

14(b) [Recognition.--It is recognized that many public
15officials, including most local officials and members of the
16General Assembly, are citizen-officials who bring to their
17public office the knowledge and concerns of ordinary citizens
18and taxpayers. They should not be discouraged from maintaining
19their contacts with their community through their occupations
20and professions. Thus, in order to foster maximum compliance
21with its terms, this chapter shall be administered in a manner
22that emphasizes guidance to public officials and public
23employees regarding the ethical standards established by this
24chapter.] Declarations.--The Legislature hereby declares that 
25public office is a public trust and that any effort to realize 
26personal financial gain through public office other than 
27compensation provided by law is a violation of that trust. The 
28Legislature also declares the public would be best served by a 
29Statewide criminal justice agency which focuses on investigating 
30criminal incidents of public corruption. In order to strengthen
 

1the faith and confidence of the people of this Commonwealth in 
2their government, the Legislature further declares that the 
3people have a right to be assured that the financial interests 
4of holders of or nominees or candidates for public office do not 
5conflict with the public trust. Because public confidence in 
6government can best be sustained by assuring the people of the 
7impartiality and honesty of public officials, this chapter shall 
8be liberally construed to promote complete financial disclosure 
9as specified in this chapter. Furthermore, it is recognized that 
10clear guidelines are needed in order to guide public officials 
11and employees in their actions. Thus, the General Assembly by 
12this chapter intends to define as clearly as possible those 
13areas which represent conflict with the public trust.

14[(c) Legislative intent.--It is the intent of the General
15Assembly that this chapter be administered by an independent
16commission composed of members who are cognizant of the
17responsibilities and burdens of public officials and employees
18and who have demonstrated an interest in promoting public
19confidence in government.].

20Section 2. The definitions of "advice," "business with which 
21he is associated," "candidate," "commission," "conflict" or 
22"conflict of interest," "contract," "findings report," "opinion" 
23and "order" in section 1102 of Title 65 are amended and the 
24section is amended by adding definitions to read:

25§ 1102. Definitions.

26The following words and phrases when used in this chapter
27shall have, unless the context clearly indicates otherwise, the
28meanings given to them in this section:

29"Advice." Any directive of the chief counsel of the [State 
30Ethics Commission] commission issued under section [1107(11)]
 

11102.4(15) (relating to powers and duties of commission) and 
2based exclusively on prior commission opinions, prior opinions 
3of the State Ethics Commission, this chapter, regulations 
4promulgated pursuant to this chapter and court opinions which 
5interpret this chapter.

6* * *

7"Business with which [he] a person is associated." Any 
8business in which the person or a member of the person's 
9immediate family is a director, officer, owner, employee or has 
10a financial interest.

11"Candidate." Any individual who seeks nomination or election 
12to public office by vote of the electorate, other than a judge 
13of elections, inspector of elections or official of a political 
14party, whether or not such individual is nominated or elected. 
15An individual shall be deemed to be seeking nomination or 
16election to such office if [he] the individual has:

17(1) received a contribution or made an expenditure or
18given [his] consent for any other person or committee to
19receive a contribution or make an expenditure for the purpose
20of influencing [his] the nomination or election to such
21office, whether or not the individual has announced the
22specific office for which [he] the individual will seek
23nomination or election at the time the contribution is
24received or the expenditure is made; or

25(2) taken the action necessary under the laws of this
26Commonwealth to qualify [himself] the individual for
27nomination or election to such office.

28The term shall include individuals nominated or elected as
29write-in candidates unless they resign such nomination or
30elected office within 30 days of having been nominated or

1elected.

2"Commission." The [State Ethics] Pennsylvania Public 
3Integrity Commission.

4* * *

5"Conflict" or "conflict of interest." Use by a public 
6official or public employee of the authority of [his] the 
7person's office or employment or any confidential information 
8received through [his] holding public office or employment for 
9the private pecuniary benefit of [himself, a member of his 
10immediate family] the person, an immediate family member or a 
11business with which [he] the person or a member of [his] the 
12person's immediate family is associated. The term does not 
13include an action having a de minimis economic impact or which 
14affects to the same degree a class consisting of the general 
15public or a subclass consisting of an industry, occupation or 
16other group which includes the public official or public 
17employee, a member of [his] the person's immediate family or a 
18business with which [he] the person or a member of [his] the 
19person's immediate family is associated.

20"Contract." An agreement or arrangement for the acquisition, 
21use or disposal by the Commonwealth or a political subdivision 
22of consulting or other services or of supplies, materials, 
23equipment, land or other personal or real property. The term 
24shall not mean an agreement or arrangement between the State or 
25political subdivision as one party and a public official or 
26public employee as the other party, concerning [his] the public 
27official or public employee's expense, reimbursement, salary, 
28wage, retirement or other benefit, tenure or other matters in 
29consideration of [his] the public official or public employee's 
30current public employment with the Commonwealth or a political
 

1subdivision.

2"Court." The Commonwealth Court.

3* * *

4"Findings report." An initial report containing findings of 
5fact as determined by the [State Ethics Commission's] 
6commission's investigation but not containing any conclusions of 
7law or any determination of whether there has been a violation 
8of law.

9* * *

10"Immunity order." An order issued under this chapter by the
11court directing a witness to testify or produce other
12information over a claim of privilege against self-
13incrimination.

14* * *

15"Opinion." A directive of the [State Ethics Commission] 
16commission issued pursuant to section [1107(10)] 1102.4(14) 
17(relating to powers and duties of commission) setting forth a 
18public official's or public employee's duties under this 
19chapter.

20"Order." A directive of the [State Ethics Commission] 
21commission issued pursuant to section [1107(13)] 1102.4(17) 
22(relating to powers and duties of commission) at the conclusion 
23of an investigation which contains findings of fact, conclusions 
24of law and penalties.

25* * *

26"Public corruption." The unlawful activity, under color of
27or in connection with any public office or employment, of any
28individual:

29(1) employed by an agency as defined in the act of
30February 14, 2008 (P.L.6, No.3), known as the Right-to-Know

1Law; or

2(2) elected by the public, appointed by a governmental
3body or an appointed official in an agency as defined in the
4Right-to-Know Law.

5* * *

6Section 3. Title 65 is amended by adding sections to read:

7§ 1102.1. Establishment and operation of nominating committee.

8(a) Establishment.--When a vacancy exists in the commission,
9a nominating committee shall be established and selected as
10provided in this section.

11(b) List of current nominees.-–A nominating committee shall
12compile a list of 15 current nominees to fill a vacancy in the
13commission. A list of nominees shall not have more than six
14members of the same political party. After the vacancy in the
15commission for which the nominating committee was established
16has been filled, the list of 15 current nominees shall be
17discarded, and a subsequent vacancy shall not be filled from
18that list. This section shall not preclude the inclusion of a
19nominee in a subsequent list of nominees.

20(c) Selection and composition.--The nominating committee
21shall be selected as follows:

22(1) The President pro tempore of the Senate shall
23appoint three members of the nominating committee. One
24appointee shall be a current or former district attorney.
25Two appointees shall be current or former deans of a
26Pennsylvania law school accredited by the American Bar
27Association.

28(2) The Minority Leader of the Senate shall appoint two
29members of the nominating committee. One appointee shall be a
30current or former dean of a Pennsylvania law school

1accredited by the American Bar Association. One appointee
2shall be a member or employee of a nonprofit, nonpartisan
3citizen's lobbying organization that has been in existence
4for no fewer than 30 years.

5(3) No more than three members of the nominating
6committee shall be members of the same political party.

7(d) Chairperson.--The members of the nominating committee
8shall select a chairperson of the committee from among the
9members.

10(e) Term.--The members of the nominating committee shall
11serve until the vacancy in the commission for which the
12nominating committee was created has been filled. Nothing in
13this section shall preclude the reappointment of a member of a
14nominating committee to a subsequent nominating committee.

15(f) Expenses.--The members of a nominating committee shall
16serve without compensation but shall be entitled to reasonable
17travel, hotel and other necessary expenses from the funds of the
18commission as approved by the commission. The expenses shall not
19exceed the applicable per diem rates established by the United
20States General Services Administration.

21(g) Support.--The commission shall provide administrative
22assistance to a nominating committee.

23(h) Vacancies.--Vacancies in a nominating committee before
24the expiration of its term shall be filled for the remainder of
25the term in the same manner as original appointments.

26(i) Removal.--The appointing authority of a member of a
27nominating committee may remove that member for good cause.

28(j) Procedure.--The following shall apply to a nominating
29committee procedure:

30(1) A majority of the members of a nominating committee

1constitutes a quorum. A member of a nominating committee
2shall participate at a meeting of the committee in person or
3by teleconference or video conference for the purposes of
4meeting a quorum.

5(2) Voting shall be direct, including voting by
6teleconference or video conference. Voting by proxy shall not
7be permitted.

8(k) Meetings.--A nominating committee shall meet as needed
9at the call of the chairperson.

10§ 1102.2. Commission.

11(a) Continuation of State Ethics Commission.--The commission 
12is a successor to and a continuation of the State Ethics 
13Commission established under the act of October 4, 1978 
14(P.L.883, No.170), referred to as the Public Official and 
15Employee Ethics Law. The commission shall be an independent 
16administrative body consisting of seven members who shall be 
17known as commissioners.

18(b) Continuation of commissioners of the State Ethics
19Commission.--Upon the effective date of this section, the
20current commissioners of the State Ethics Commission shall
21continue to serve as administrators of this chapter with all of
22the duties, powers, rights and responsibilities of commissioners
23of the commission until no fewer than four commissioners are
24appointed under subsection (c).

25(c) Composition.--The commissioners shall be appointed by
26the Governor, subject to the consent of two-thirds of the
27members elected to the Senate, from the list of current nominees
28prepared by a nominating committee under section 1102.1
29(relating to establishment and operation of nominating
30committee). The commission shall not have more than three

1commissioners of the same political party.

2(d) Term.--The original commissioners shall be appointed as
3follows:

4(1) Three shall be appointed for a term of one year.

5(2) Three shall be appointed for a term of two years.

6(3) One shall be appointed for a term of three years.

7After the original commissioners are appointed, appointments
8shall be for a term of three years.

9(e) Vacancy and reappointment.--A vacancy shall be filled
10for the remainder of the unexpired term in the same manner as an
11original appointment. Upon the expiration of a term, a
12commissioner shall continue to hold office until a successor has
13been duly appointed, but not longer than six months after the
14expiration of the commissioner's appointed term. A commissioner
15may be reappointed to serve one three-year term if included on
16the list of current nominees for that vacancy provided by a
17nominating committee under section 1102.1.

18(f) Chairperson.--The commissioners shall meet on an annual
19basis to select a chairperson of the commission from among the
20commissioners.

21(g) Compensation and expenses.--A commissioner shall receive
22$100-a-day compensation for every meeting of the commission at
23which the commissioner participates in person and a quorum of
24the commission is present. A commissioner shall be entitled to
25reasonable travel, hotel and other necessary expenses as
26approved by the commission, but the expenses shall not exceed
27the applicable per diem rates established by the United States
28General Services Administration.

29(h) Removal.--Except as authorized under this subsection, a
30commissioner shall not be removed from office during his term. A

1commissioner may be removed from office in the following
2circumstances:

3(1) Upon clear and convincing evidence of misfeasance or
4malfeasance in office or neglect of duty by a commissioner,
5the Governor may remove a commissioner prior to the
6expiration of the term. The Governor shall provide the
7commissioner who is removed with a statement of the reasons
8for the removal.

9(2) A commissioner who fails to attend, in person or by
10teleconference or video conference, three consecutive
11meetings shall forfeit the position on the commission unless
12the chairperson, upon written request from the commissioner,
13finds the commissioner should be excused for good cause.

14A commissioner who is removed may petition the court for
15reinstatement. The court shall hold an expedited hearing and
16render a decision within 30 days after the hearing or as soon
17thereafter as may be practicable. A decision of the court that
18is adverse to a commissioner who is removed shall result in a
19vacancy that shall be filled under this chapter.

20(i) Procedure.--All of the following shall apply to
21commission procedure:

22(1) A majority of the commissioners constitutes a
23quorum. A commissioner must participate at a meeting of the
24commission in person or by teleconference or video conference
25for the purpose of meeting a quorum.

26(2) Voting must be direct, including voting by
27teleconference or video conference. Voting by proxy shall not
28be permitted.

29(j) Meetings.--The commission shall meet no fewer than once
30every two months and at additional times as necessary to conduct

1the business of the commission.

2§ 1102.3. Limitations on activities by commissioners and
3employees.

4(a) General rule.--No individual while a member or employee
5of the commission shall:

6(1) Hold another public office or be a candidate for
7another public office.

8(2) Hold office in a political party or political
9committee.

10(3) Actively participate in, contribute to or solicit
11contributions for a political campaign, political party,
12political committee or candidate.

13(4) Publicly endorse a candidate.

14(b) Exception.--Nothing in this section shall preclude a
15member or employee of the commission from actively participating
16in, contributing to or soliciting contributions for a candidate
17for Federal office or elective office outside of this
18Commonwealth.

19§ 1102.4. Powers and duties of commission.

20In addition to other powers and duties prescribed by law, the
21commission shall:

22(1) Prescribe and publish rules and regulations to carry
23out the provisions of this chapter, including regulations
24controlling or defining the following:

25(i) Calling of meetings.

26(ii) Investigative responsibilities of commission
27members and employees.

28(iii) Written procedures to be utilized by the
29commission's investigative management staff in planning
30and supervising investigations and inquiries.

1(iv) Dissemination of materials, including
2dissemination to the Governor and members or committees
3of the General Assembly.

4(v) Appropriate use of commission property,
5including vehicles.

6(vi) Maintenance of confidentiality of information.

7(vii) Other procedures and acts necessary for the
8proper functioning of the commission.

9(2) As a criminal justice agency, inquire into public
10corruption and the activities of persons engaged in and
11associated with public corruption. The commission shall make
12a written report of every completed public corruption
13investigation which may include recommendation for
14legislative or administrative action. Except for those
15reports provided to another law enforcement agency, if a
16public corruption report is critical of a named individual
17not indicted for a criminal offense, the named individual
18shall be allowed to submit a response to the allegations
19contained in the report which shall be made part of the
20report.

21(3) Hold hearings, take testimony, issue subpoenas and
22require the attendance and testimony of witnesses and the
23production of documentary evidence relative to any
24investigation which the commission may conduct in accordance
25with the powers given it. The subpoenas shall be signed by
26the chairperson, the chief counsel and one other commissioner
27and shall be served by a person authorized to serve subpoenas
28under the laws of this Commonwealth.

29(4) Refer criminal violations to a district attorney,
30the Attorney General of Pennsylvania, the Attorney General of

1the United States or a United States Attorney for
2investigation or prosecution.

3(5) During April of each calendar year, submit an annual
4report on the status of public corruption in this
5Commonwealth to a joint public hearing of the Judiciary
6Committee of the Senate and the Judiciary Committee of the
7House of Representatives. The commission shall submit other
8public corruption reports and present the reports at public
9hearings of the committees of the Senate and the House of
10Representatives having oversight responsibilities or
11appropriate legislative jurisdiction of the subject matter of
12the reports. If a report is critical of a named individual
13not indicted for a criminal offense, the named individual
14shall be allowed to submit a response to the allegations
15contained in the report which shall be made part of the
16report.

17(6) Prescribe forms for statements and reports required
18to be filed by this chapter and furnish such forms to persons
19required to file such statements and reports.

20(7) Prepare and publish guidelines setting forth
21recommended uniform methods of accounting and reporting for
22use by persons required to file statements and reports by
23this chapter.

24(8) Accept and file any information voluntarily supplied
25that exceeds the requirements of this chapter.

26(9) Inspect statements of financial interests which have
27been filed in order to ascertain whether any reporting person
28has failed to file such a statement or has filed a deficient
29statement. If, upon inspection, it is determined that a
30reporting person has failed to file a statement of financial

1interests or that any statement which has been filed fails to
2conform with the requirements of section 1105 (relating to
3statement of financial interests), then the commission shall
4in writing notify the person. Such notice shall state in
5detail the deficiency and the penalties for failure to file
6or for filing a deficient statement of financial interests.

7(10) Provide that statements and reports filed with the
8commission be made available for public inspection and
9copying during regular office hours and provide that copying
10facilities be made available at a charge not to exceed actual
11cost and advise other State and local agencies of the
12provisions of this paragraph.

13(11) Compile and maintain an index of all reports and
14statements filed with the commission to facilitate public
15access to such reports and statements and instruct other
16State and local agencies which receive and file financial
17interest statements in the maintenance of systems which
18facilitate public access to such statements.

19(12) Prepare and publish annual summaries of statements
20and reports filed with the commission.

21(13) Preserve statements and reports filed with the
22commission for a period of five years from date of receipt
23and advise other State and local agencies which receive and
24store financial interest statements to preserve such
25statements for a period of five years from date of receipt.

26(14) Issue to any person upon such person's request or
27to the appointing authority or employer of that person upon
28the request of such appointing authority or employer an
29opinion with respect to such person's duties under this
30chapter. The commission shall, within 14 days, either issue

1the opinion or advise the person who made the request whether
2an opinion will be issued. A person who acts in good faith on
3an opinion issued to that person by the commission shall not
4be subject to criminal or civil penalties for so acting,
5provided that the material facts are as stated in the opinion
6request. The commission's opinions shall be public record and
7may from time to time be published. The person requesting the
8opinion may, however, require that the opinion shall contain
9such deletions and changes as shall be necessary to protect
10the identity of the persons involved.

11(15) Provide written advice to any person or the
12appointing authority or employer of such person upon the
13person's request with respect to such person's duties under
14this chapter. Such advice shall be provided within 21 working
15days of the request, provided that the time may be extended
16for good cause. It shall be a complete defense in any
17enforcement proceeding initiated by the commission and
18evidence of good faith conduct in any other civil or criminal
19proceeding if the requester, at least 21 working days prior
20to the alleged violation, requested written advice from the
21commission in good faith, disclosed truthfully all the
22material facts and committed the acts complained of either in
23reliance on the advice or because of the failure of the
24commission to provide advice within 21 days of the request or
25such later extended time. The person requesting the advice
26may, however, require that the advice shall contain such
27deletions and changes as shall be necessary to protect the
28identity of the persons involved.

29(16) Initiate an inquiry under section 1108(a) (relating
30to investigations of violations of this chapter by

1commission) where a complaint has not been filed but where
2there is a reasonable belief that a conflict may exist.

3(17) Issue findings, reports and orders relating to
4investigations initiated pursuant to section 1108 which set
5forth the alleged violation, findings of fact and conclusions
6of law. An order may include a referral for prosecution. Any
7order resulting from a finding that a public official or
8public employee has obtained a financial gain in violation of
9this chapter may require the restitution plus interest of
10that gain to the appropriate governmental body. The
11commission or the Office of Attorney General shall have
12standing to apply to the court to seek enforcement of an
13order requiring such restitution. This restitution
14requirement shall be in addition to any other penalties
15provided for in this chapter.

16(18) Prepare and publish special reports, educational
17materials and technical studies to further the purposes of
18this chapter.

19(19) Transmit, free of charge, copies of each order,
20advice and opinion which have become a matter of public
21record quarterly to the law library of each county, one
22public library in each county, the State Library, the State
23Senate Library, each authority appointing commission members
24under this chapter, the Pennsylvania Association of County
25Commissioners, the Pennsylvania Association of Boroughs, the
26Pennsylvania State Association of Township Supervisors, the
27Pennsylvania State Association of Township Commissioners, the
28Pennsylvania School Boards Association and the Pennsylvania
29League of Cities.

30(20) Hold at least two public hearings each year, of

1which at least one shall be held in Harrisburg and at least
2one shall be held in a location other than Harrisburg, to
3seek input from persons and organizations that represent any
4individual subject to the provisions of this chapter and from
5other interested parties.

6(21) Call upon the department heads of State government
7and State agencies through its chairperson for information
8and assistance as needed to carry out the functions of the
9commission.

10(22) Account to the Governor, the Auditor General and
11the General Assembly at the end of each fiscal year for
12moneys received and disbursed.

13(23) Appoint and fix the compensation of an executive
14director and a chief counsel. The executive director shall be
15responsible for the administrative operations of the
16commission and shall perform other duties as may be delegated
17or assigned by the commission, except that the commission
18shall not delegate the making of regulations to the executive
19director. The chief counsel shall be the chief legal officer
20of the commission. The commission may obtain the services of
21experts and consultants as necessary to carry out its duties
22pursuant to this chapter.

23(24) Appoint and fix the compensation of other employees
24as the commission may find necessary for the proper
25performance of the functions of the commission. The
26commission shall designate which investigative employees of
27the commission shall be law enforcement officers as provided
28in section 1102.5 (relating to authority, qualification,
29training and identification of investigative employees
30designated as law enforcement officers). Other employees of

1the commission shall be civilians.

2(25) Pay expenses incurred by the executive director,
3chief counsel or other employees on the presentation of
4itemized vouchers and approval by the commission.

5(26) Perform other acts necessary for the proper
6functioning of the commission.

7§ 1102.5. Authority, qualification, training and identification 
8of investigative employees designated as law
9enforcement officers.

10(a) Authority.--An investigative employee of the commission
11designated as a law enforcement officer shall have the law
12enforcement power and authority, anywhere within this
13Commonwealth, to enforce the following laws:

14(1) This chapter.

15(2) The act of July 10, 1968 (P.L.316, No.154), known as
16the Legislative Code of Ethics.

17(3) Crimes related to public office or public employment
18as defined in section 2 of the act of July 8, 1978 (P.L.752,
19No.140), known as the Public Employee Pension Forfeiture Act,
20except Federal offenses.

21(b) Qualifications.--An investigative employee shall be
22qualified for appointment and designation as a law enforcement
23officer if the employee:

24(1) Has successfully completed a Federal or State law
25enforcement training program determined by the Commissioner
26of Pennsylvania State Police to be of sufficient scope and
27duration to provide the participant with basic law
28enforcement training.

29(2) Has not been convicted of a felony or an offense 
30graded a serious misdemeanor, as defined by the act of
 

1January 29, 2004 (P.L.4, No.2), known as the Confidence in 
2Law Enforcement Act.

3(3) Has not been convicted of an offense in a
4jurisdiction, state or country outside this Commonwealth in
5accordance with the laws of that jurisdiction, state or
6country and the offense is equivalent to an offense specified
7in paragraph (2), regardless of its grading in that
8jurisdiction, state or country.

9(c) Continuing education.--With the assistance of the
10Commissioner of Pennsylvania State Police, the commission shall
11develop a program of ongoing law enforcement education for
12investigative employees designated as law enforcement officers.

13(d) Firearms.--

14(1) The commission shall develop regulations and
15procedures for the use and possession of firearms by
16investigative employees designated as law enforcement
17officers, including the type of firearms permitted and the
18circumstances under which an investigative employee would be
19permitted to possess or use a firearm.

20(2) No commission investigative employee may possess or
21use a firearm in the course of the employee's commission
22duties unless he holds a current valid certification in the
23use and handling of firearms under one of the following:

24(i) 53 Pa.C.S. Ch. 21 Subch. D (relating to
25municipal police education and training).

26(ii) The act of February 9, 1984 (P.L.3, No.2),
27known as the Deputy Sheriffs' Education and Training Act.

28(iii) Another firearms program determined by the
29Commissioner of Pennsylvania State Police to be of
30sufficient scope and duration as to provide the

1participant with basic training in the use and handling
2of firearms.

3(e) Badge.--Every investigative employee of the commission
4designated as a law enforcement officer shall possess a metallic
5badge with the words "Public Integrity Commission Officer"
6inscribed on it.

7§ 1102.6. Photo identification.

8Regardless of whether or not they have been designated law
9enforcement officers, individuals appointed as investigative
10employees of the commission shall have photo identification
11cards issued by the commission containing the following:

12(1) A photo of the individual taken within the previous
1324 months.

14(2) The name of the individual.

15(3) The signature of the individual.

16(4) The words "Public Integrity Commission."

17(5) The date of issuance of the photo identification
18card.

19§ 1102.7. Immunity of witnesses.

20(a) General rule.--Notwithstanding 42 Pa.C.S. § 5947
21(relating to immunity of witnesses), immunity orders shall be
22available under this section in proceedings before the
23commission involving an investigation into public corruption.

24(b) Request and issuance.--The commission may request an
25immunity order from a judge of the court and that judge shall
26issue the order when in the judgment of the commission the
27following criteria are satisfied:

28(1) The testimony or other information from a witness
29may be necessary to the public interest.

30(2) A witness has refused or is likely to refuse to

1testify or provide other information on the basis of using
2the privilege against self-incrimination.

3(c) Order to testify.--Whenever a witness refuses to testify
4or provide other information in a proceeding specified in
5subsection (a) on the basis of the privilege against self-
6incrimination and the person presiding at the proceeding
7communicates to the witness an immunity order, the witness shall
8not refuse to testify based on his privilege against self-
9incrimination.

10(d) Limitation on use.--No testimony or other information
11compelled under an immunity order or information directly or
12indirectly derived from the testimony or other information shall
13be used against a witness in a criminal case except the
14information may be used:

15(1) in a prosecution under 18 Pa.C.S. § 4902 (relating
16to perjury) or 4903 (relating to false swearing);

17(2) in a contempt proceeding for failure to comply with
18an immunity order; or

19(3) as evidence in a proceeding where the witness is not
20a criminal defendant where otherwise admissible.

21(e) Civil contempt.--Persons failing to comply with an
22immunity order may be adjudged in civil contempt and committed
23to the county jail until complying with the order, provided that
24the proceeding or the investigation or report involving a
25proceeding where the refusal to comply with an immunity order
26has been completed. Persons may purge themselves of contempt by
27complying with the order before the commission notwithstanding
28the completion of the investigation or report.

29(f) Criminal contempt.--In addition to civil contempt as
30provided in subsection (e), a person who fails to comply with an

1immunity order shall be guilty of criminal contempt and upon
2conviction be sentenced to pay a fine of not more than $5,000 or
3to imprisonment for not more than one year, or both.

4(g) Notice, consultation and opportunity to object.--Prior
5to seeking an immunity order, the commission shall require its
6chief counsel to consult with the district attorney of an
7affected county, the Attorney General and the United States
8Attorney of an affected district in order to prevent
9interference with an ongoing investigation. The results of the
10consultation shall be reported to the commission before an
11immunity order is sought under this section. The commission
12shall give notice to a district attorney of an affected county,
13the Attorney General or the United States Attorney of an
14affected district of a request for an immunity order to be
15submitted to a judge of the court. The foregoing officers may
16appear as a party and request a reasonable delay or denial of
17the grant of immunity if an immediate grant would jeopardize an
18investigation or prosecution. In a proceeding under this
19section, the judge may delay or deny the request for immunity if
20the judge determines, in the exercise of judicial discretion,
21that an immunity order will jeopardize an actual or pending
22investigation or prosecution.

23§ 1102.8. Enforcement of subpoenas.

24(a) Application.--Upon the failure of a person subpoenaed
25under section 1102.4(3) (relating to powers and duties of
26commission) to obey the command of the subpoena or to be sworn
27or affirmed or to testify, an application may be made to the
28court for the enforcement of the subpoena.

29(b) Contempt.--If a person who has been ordered by the court
30to comply with a subpoena issued under section 1102.4(3) fails

1to obey the command of the order, an application may be made to
2the court for the person to be brought before the court
3authorized to proceed against the person for civil contempt of
4court.

5Section 4. Sections 1103 and 1104 of Title 65 are amended to
6read:

7§ 1103. Restricted activities.

8(a) Conflict of interest.--No public official or public
9employee shall engage in conduct that constitutes a conflict of
10interest.

11(b) Seeking improper influence.--No person shall offer or
12give to a public official, public employee or nominee or
13candidate for public office or a member of his or her immediate
14family or a business with which [he] the public official, public 
15employee or nominee or candidate for public office is associated
16anything of monetary value, including a gift, loan, political
17contribution, reward or promise of future employment based on
18the offeror's or donor's understanding that the vote, official
19action or judgment of the public official or public employee or
20nominee or candidate for public office would be influenced
21thereby.

22(c) Accepting improper influence.--No public official,
23public employee or nominee or candidate for public office shall
24solicit or accept anything of monetary value, including a gift,
25loan, political contribution, reward or promise of future
26employment, based on any understanding of [that] the public
27official, public employee or nominee that the vote, official
28action or judgment of the public official or public employee or
29nominee or candidate for public office would be influenced
30thereby.

1(d) Honorarium.--No public official or public employee shall
2accept an honorarium.

3(e) Contingent and severance payments.--

4(1) No person shall solicit or accept a severance
5payment or anything of monetary value contingent upon the
6assumption or acceptance of public office or employment.

7(2) This subsection shall not prohibit:

8(i) Payments received pursuant to an employment
9agreement in existence prior to the time a person becomes
10a candidate or is notified by a member of a transition
11team, a search committee or a person with appointive
12power that [he] the person is under consideration for
13public office or makes application for public employment.

14(ii) Receipt of a salary, fees, severance payment or
15proceeds resulting from the sale of a person's interest
16in a corporation, professional corporation, partnership
17or other entity resulting from termination or withdrawal
18therefrom upon the assumption or acceptance of public
19office or employment.

20(3) Payments made or received pursuant to paragraph (2)
21(i) and (ii) shall not be based on the agreement, written or
22otherwise, that the vote or official action of the
23prospective public official or employee would be influenced
24thereby.

25(f) Contract.--No public official or public employee or
26[his] spouse or child of the public official or public employee
27or any business in which the person [or his], spouse or child is
28associated shall enter into any contract valued at $500 or more
29with the governmental body with which the public official or
30public employee is associated or any subcontract valued at $500

1or more with any person who has been awarded a contract with the
2governmental body with which the public official or public
3employee is associated unless the contract has been awarded
4through an open and public process, including prior public
5notice and subsequent public disclosure of all proposals
6considered and contracts awarded. In such a case, the public
7official or public employee shall not have any supervisory or
8overall responsibility for the implementation or administration
9of the contract. Any contract or subcontract made in violation
10of this subsection shall be voidable by a court of competent
11jurisdiction if the suit is commenced within 90 days of the
12making of the contract or subcontract.

13(g) Former official or employee.--No former public official
14or public employee shall represent a person, with promised or
15actual compensation, on any matter before the governmental body
16with which [he] the former public official or public employee
17has been associated for one year after [he] the former public 
18official or public employee leaves that body.

19(h) Misuse of statement of financial interest.--No person
20shall use for any commercial purpose information copied from
21statements of financial interests required by this chapter or
22from lists compiled from such statements.

23(i) Former executive-level employee.--No former executive-
24level State employee may for a period of two years from the time
25that [he] the executive-level State employee terminates
26employment with this Commonwealth be employed by, receive
27compensation from, assist or act in a representative capacity
28for a business or corporation that [he] the former executive-
29level State employee actively participated in recruiting to this
30Commonwealth or that [he] the former executive-level State
 

1employee actively participated in inducing to open a new plant,
2facility or branch in this Commonwealth or that he actively
3participated in inducing to expand an existent plant or facility
4within this Commonwealth, provided that the [above] prohibition
5in this subsection shall be invoked only when the recruitment or
6inducement is accomplished by a grant or loan of money or a
7promise of a grant or loan of money from the Commonwealth to the
8business or corporation recruited or induced to expand.

9(j) Voting conflict.--

10(1) Where voting conflicts are not otherwise addressed
11by the Constitution of Pennsylvania or by any law, rule,
12regulation, order or ordinance, the [following] procedure in 
13this subsection shall be employed.

14(2) Any public official or public employee who in the
15discharge of [his] official duties would be required to vote
16on a matter that would result in a conflict of interest shall
17abstain from voting and, prior to the vote being taken,
18publicly announce and disclose the nature of [his] the
19interest as a public record in a written memorandum filed
20with the person responsible for recording the minutes of the
21meeting at which the vote is taken, provided that whenever a
22governing body would be unable to take any action on a matter
23before it because the number of members of the body required
24to abstain from voting under the provisions of this section
25makes the majority or other legally required vote of approval
26unattainable, then such members shall be permitted to vote if
27disclosures are made as otherwise provided herein.

28(3)  In the case of a three-member governing body of a
29political subdivision, where one member has abstained from
30voting as a result of a conflict of interest and the

1remaining two members of the governing body have cast
2opposing votes, the member who has abstained shall be
3permitted to vote to break the tie vote if disclosure is made
4as otherwise provided herein.

5§ 1104. Statement of financial interests required to be filed.

6(a) Public official or public employee.--Each public
7official of the Commonwealth shall file a statement of financial
8interests for the preceding calendar year with the commission no
9later than May 1 of each year that [he] the public official
10holds such a position and of the year after [he leaves such a]
11leaving the position. Each public employee and public official
12of the Commonwealth shall file a statement of financial
13interests for the preceding calendar year with the department,
14agency, body or bureau [in which he] where the public employee 
15is employed or to which [he] the public official is appointed or
16elected no later than May 1 of each year that [he holds such a
17position] the position is held by the public official or public 
18employee and of the year after [he leaves such a] leaving the
19position. Any other public employee or public official shall
20file a statement of financial interests with the governing
21authority of the political subdivision [by which he is] where
22employed [or within which he is], appointed or elected no later
23than May 1 of each year [that he holds such a] when holding the
24position and of the year after [he leaves such a] leaving the
25position. Persons who are full-time or part-time solicitors for
26political subdivisions are required to file under this section.

27(b) Candidate.--

28(1) Any candidate for a State-level public office shall
29file a statement of financial interests for the preceding
30calendar year with the commission on or before the last day

1for filing a petition to appear on the ballot for election. A
2copy of the statement of financial interests shall also be
3appended to such petition.

4(2) Any candidate for county-level or local office shall
5file a statement of financial interests for the preceding
6calendar year with the governing authority of the political
7subdivision in which [he is a candidate] the candidate is 
8running on or before the last day for filing a petition to
9appear on the ballot for election. A copy of the statement of
10financial interests shall also be appended to such petition.

11(3) No petition to appear on the ballot for election
12shall be accepted by the respective State or local election
13officials unless the petition has appended thereto a
14statement of financial interests as set forth in paragraphs
15(1) and (2). Failure to file the statement in accordance with
16the provisions of this chapter shall, in addition to any
17other penalties provided, be a fatal defect to a petition to
18appear on the ballot.

19(c) Nominee.--

20(1) Each State-level nominee for public office shall
21file a statement of financial interests for the preceding
22calendar year with the commission and with the official or
23body that is vested with the power of confirmation at least
24ten days before the official or body [shall approve or
25reject] approves or rejects the nomination.

26(2)  Each nominee for a county-level or local office
27shall file a statement of financial interests for the
28preceding calendar year with the governing authority of the
29political subdivision in which he or she is a nominee and, if
30different, with the official or body that is vested with the

1power of confirmation at least ten days before the official
2or body [shall approve or reject] approves or rejects the
3nomination.

4(d) Failure to file required statement.--No public official
5shall be allowed to take the oath of office or enter or continue
6upon [his duties] the duties of the office, nor shall [he] the 
7public official receive compensation from public funds, unless
8[he] the public official has filed a statement of financial
9interests as required by this chapter.

10(e) Public inspection and copying.--All statements of
11financial interests filed pursuant to the provisions of this
12chapter shall be made available for public inspection and
13copying during regular office hours, and copying facilities
14shall be made available at a charge not to exceed actual cost.

15Section 5. Sections 1106 and 1107 of Title 65 are repealed:

16[§ 1106. State Ethics Commission.

17(a) Continuation of commission.--The State Ethics Commission 
18established under the act of October 4, 1978 (P.L.883, No.170), 
19referred to as the Public Official and Employee Ethics Law, is 
20continued and shall be composed of seven members. The President 
21pro tempore of the Senate, the Minority Leader of the Senate, 
22the Speaker of the House and the Minority Leader of the House 
23shall each appoint one member. Three members shall be appointed 
24by the Governor without confirmation. No more than two of the 
25members appointed by the Governor shall be of the same political 
26party. No appointee shall have served as an officer in a 
27political party for one year prior to his appointment.

28(b) Term of service.--Members of the commission shall serve
29for terms of three years, except that members shall continue to
30serve until their successors are appointed and qualified.

1(c) Maximum number of terms.--No member shall be appointed
2to more than two full three-year terms on the commission.

3(d) Prohibited activities.--No individual while a member or
4employee of the commission shall:

5(1) hold or campaign for any other public office;

6(2) hold office in any political party or political
7committee;

8(3) actively participate in or contribute to any
9political campaign;

10(4) directly or indirectly attempt to influence any
11decision by a governmental body other than a court of law or
12as a representative of the commission on a matter within the
13jurisdiction of the commission; or

14(5) be employed by the Commonwealth or a political
15subdivision in any other capacity, whether or not for
16compensation.

17(e) Vacancy.--A majority of the commission by resolution
18shall declare vacant the position on the commission of any
19member who takes part in activities prohibited by subsection
20(d). An individual appointed to fill a vacancy occurring other
21than by the expiration of a term of office shall be appointed
22for the unexpired term of the member he succeeds and is eligible
23for appointment to two full three-year terms thereafter. Any
24vacancy occurring on the commission shall be filled within 30
25days in the manner in which that position was originally filled.

26(f) Election of chairman and vice chairman.--The commission
27shall elect a chairman and a vice chairman. The vice chairman
28shall act as chairman in the absence of the chairman or in the
29event of a vacancy in that position.

30(g) Quorum.--Four members of the commission shall constitute

1a quorum, and, except as provided in section 1108(g) (relating
2to investigations by commission), the votes of a majority of the
3members present are required for any action or recommendation of
4the commission. The chairman or any four members of the
5commission may call a meeting provided that advance written
6notice is mailed to each member and to any person who requests
7notice of such meetings.

8(h) Compensation.--Members of the commission shall be
9compensated at a rate of $250 per day and shall receive
10reimbursement for their actual and necessary expenses while
11performing the business of the commission.

12(i) Staff.--The commission shall employ an executive
13director, a chief counsel and such other staff as are necessary
14to carry out its duties pursuant to this chapter. The executive
15director shall be responsible for the administrative operations
16of the commission and shall perform such other duties as may be
17delegated or assigned to him by the commission, except that the
18commission shall not delegate the making of regulations to the
19executive director. The chief counsel shall be the chief legal
20officer of the commission. The commission may obtain the
21services of experts and consultants as necessary to carry out
22its duties pursuant to this chapter. The State Treasurer and the
23Attorney General shall make available to the commission such
24personnel, facilities and other assistance as the commission may
25request.

26(j) Regulations.--The commission shall develop regulations
27that provide for a code of conduct to govern the activities and
28ethical standards of its members, which code shall subject the
29members of the commission to no less than is required for public
30officials or public employees under this chapter.

1§ 1107. Powers and duties of commission.

2In addition to other powers and duties prescribed by law, the
3commission shall:

4(1) Prescribe and publish rules and regulations to carry
5out the provisions of this chapter.

6(2) Prescribe forms for statements and reports required
7to be filed by this chapter and furnish such forms to persons
8required to file such statements and reports.

9(3) Prepare and publish guidelines setting forth
10recommended uniform methods of accounting and reporting for
11use by persons required to file statements and reports by
12this chapter.

13(4) Accept and file any information voluntarily supplied
14that exceeds the requirements of this chapter.

15(5) Inspect statements of financial interests which have
16been filed in order to ascertain whether any reporting person
17has failed to file such a statement or has filed a deficient
18statement. If, upon inspection, it is determined that a
19reporting person has failed to file a statement of financial
20interests or that any statement which has been filed fails to
21conform with the requirements of section 1105 (relating to
22statement of financial interests), then the commission shall
23in writing notify the person. Such notice shall state in
24detail the deficiency and the penalties for failure to file
25or for filing a deficient statement of financial interests.

26(6) Provide that statements and reports filed with the
27commission be made available for public inspection and
28copying during regular office hours and provide that copying
29facilities be made available at a charge not to exceed actual
30cost and advise other State and local agencies of the

1provisions of this paragraph.

2(7) Compile and maintain an index of all reports and
3statements filed with the commission to facilitate public
4access to such reports and statements and instruct other
5State and local agencies which receive and file financial
6interest statements in the maintenance of systems which
7facilitate public access to such statements.

8(8) Prepare and publish annual summaries of statements
9and reports filed with the commission.

10(9) Preserve statements and reports filed with the
11commission for a period of five years from date of receipt
12and advise other State and local agencies which receive and
13store financial interest statements to preserve such
14statements for a period of five years from date of receipt.

15(10) Issue to any person upon such person's request or
16to the appointing authority or employer of that person upon
17the request of such appointing authority or employer an
18opinion with respect to such person's duties under this
19chapter. The commission shall, within 14 days, either issue
20the opinion or advise the person who made the request whether
21an opinion will be issued. No person who acts in good faith
22on an opinion issued to him by the commission shall be
23subject to criminal or civil penalties for so acting,
24provided that the material facts are as stated in the opinion
25request. The commission's opinions shall be public records
26and may from time to time be published. The person requesting
27the opinion may, however, require that the opinion shall
28contain such deletions and changes as shall be necessary to
29protect the identity of the persons involved.

30(11) Provide written advice to any person or the

1appointing authority or employer of such person upon their
2request with respect to such person's duties under this
3chapter. Such advice shall be provided within 21 working days
4of the request, provided that the time may be extended for
5good cause. It shall be a complete defense in any enforcement
6proceeding initiated by the commission and evidence of good
7faith conduct in any other civil or criminal proceeding if
8the requester, at least 21 working days prior to the alleged
9violation, requested written advice from the commission in
10good faith, disclosed truthfully all the material facts and
11committed the acts complained of either in reliance on the
12advice or because of the failure of the commission to provide
13advice within 21 days of the request or such later extended
14time. The person requesting the advice may, however, require
15that the advice shall contain such deletions and changes as
16shall be necessary to protect the identity of the persons
17involved.

18(12) Initiate an inquiry pursuant to section 1108(a)
19(relating to investigations by commission) where a complaint
20has not been filed but where there is a reasonable belief
21that a conflict may exist.

22(13) Issue findings, reports and orders relating to
23investigations initiated pursuant to section 1108 which set
24forth the alleged violation, findings of fact and conclusions
25of law. An order may include recommendations to law
26enforcement officials. Any order resulting from a finding
27that a public official or public employee has obtained a
28financial gain in violation of this chapter may require the
29restitution plus interest of that gain to the appropriate
30governmental body. The commission or the Office of Attorney

1General shall have standing to apply to the Commonwealth
2Court to seek enforcement of an order requiring such
3restitution. This restitution requirement shall be in
4addition to any other penalties provided for in this chapter.

5(14) Hold hearings, take testimony, issue subpoenas and
6compel the attendance of witnesses.

7(15) Make recommendations to law enforcement officials
8either for criminal prosecution or dismissal of charges
9arising out of violations of this chapter.

10(16) Prepare and publish special reports, educational
11materials and technical studies to further the purposes of
12this chapter.

13(17) Prepare and publish prior to June 1 of each year an
14annual report summarizing the activities of the commission.

15(18) Transmit, free of charge, copies of each order,
16advice and opinion which has become a matter of public record
17quarterly to the law library of each county, one public
18library in each county, the State Library, the State Senate
19Library, each authority appointing commission members under
20this chapter, the Pennsylvania Association of County
21Commissioners, the Pennsylvania Association of Boroughs, the
22Pennsylvania State Association of Township Supervisors, the
23Pennsylvania State Association of Township Commissioners, the
24Pennsylvania School Boards Association and the Pennsylvania
25League of Cities.

26(19) Hold at least two public hearings each year, of
27which at least one shall be held in Harrisburg and at least
28one shall be held in a location other than Harrisburg, to
29seek input from persons and organizations who represent any
30individual subject to the provisions of this chapter and from

1other interested parties.]

2Section 6. Sections 1108 and 1109(c) and (f) of Title 65 are
3amended to read:

4§ 1108. Investigations of violations of this chapter by
5commission.

6(a) Preliminary inquiry.--Upon a complaint signed under
7penalty of perjury by any person or upon its own motion, the
8commission[, through its executive director,] shall conduct a
9preliminary inquiry into any alleged violation of [this
10chapter.] section 1103 (relating to restricted activities), 1104 
11(relating to statement of financial interests required to be 
12filed), 1105(a) (relating to statement of financial interests) 
13or this section. The commission shall keep information, records
14and proceedings relating to a preliminary inquiry confidential.
15The commission shall, however, have the authority to refer the
16case [to law enforcement officials] for prosecution during a
17preliminary inquiry or anytime thereafter without providing
18notice to the subject of the inquiry. The commission shall
19complete its preliminary inquiry within 60 days of its
20initiation.

21(b) Termination of preliminary inquiry.--If a preliminary
22inquiry fails to establish reason to believe that [this chapter
23has] section 1103, 1104, 1105(a) or this section has been
24violated, the commission shall terminate the inquiry and so
25notify the complainant and the person who had been the subject
26of the inquiry. If the commission determines that a complaint is
27frivolous, it shall so state.

28(c) Initiation of investigation.--If a preliminary inquiry
29establishes reason to believe that [this chapter has] section 
301103, 1104, 1105(a) or this section has been violated, the

1commission may, through its executive director, initiate an
2investigation to determine if there has been a violation. The
3commission shall keep information, records and proceedings
4relating to an investigation confidential until a final
5determination is made, except as otherwise provided in
6subsection (g). No investigation may be commenced until the
7person who is the subject of the investigation has been notified
8and provided a general statement of the alleged violation or
9violations of this chapter and other applicable statutes with
10respect to such investigation. Service of notice is complete
11upon mailing which shall be by certified or registered mail. The
12commission shall notify the complainant within 72 hours of the
13commencement of an investigation, and, thereafter, the
14commission shall advise the complainant and the person who is
15the subject of the investigation of the status of the
16investigation at least every 90 days until the investigation is
17terminated. The commission shall, within 180 days of the
18initiation of an investigation, either terminate the
19investigation pursuant to subsection (d) or issue a findings
20report pursuant to subsection (e). Upon a showing by the
21executive director of the need for extension of this period, the
22commission may extend an investigation for up to two 90-day
23periods, provided that each 90-day extension shall be approved
24by a majority vote of members present. In no event shall a
25findings report be issued later than 360 days after initiation
26of an investigation.

27(d) Termination of investigation.--If an investigation
28conducted under this [chapter] section indicates that no
29violation has been committed, the commission shall immediately
30terminate the investigation and send written notice of such

1determination to the complainant and the person who was the
2subject of the investigation.

3(e) Findings report.--The commission, upon the completion of
4an investigation under this section, shall issue a findings
5report to the subject of the investigation setting forth the
6pertinent findings of fact. The subject shall have the right to
7respond to said findings and to request an evidentiary hearing
8on said matter. The commission shall grant any request for a
9hearing. Said hearing shall be held in Harrisburg or, at the
10request of the subject, in either Philadelphia or Pittsburgh.
11Any response to the findings report must either admit or deny by
12corresponding number and letter the pertinent facts set forth.
13The subject of the investigation shall have access to any
14evidence intended to be used by the commission at the hearing
15and any exculpatory evidence developed by the commission in the
16course of its investigation. Matters not specifically denied in
17the response shall be deemed admitted. The response must be
18filed within 30 days of the issuance of the findings report
19unless the time period is extended by the commission for good
20cause shown. Hearings conducted upon request shall be instituted
21within 45 days after the filing of the response.

22(f) Final order.--Within 30 days of the receipt by the
23commission of the hearing record or, if no hearing is to be
24held, within 30 days of the receipt by the commission of the
25response to the findings report, the commission shall issue an
26order which shall be final. Upon receipt of a final order, the
27subject shall have the right to file a petition for
28reconsideration in accordance with the regulations of the
29commission.

30(g) Procedure for hearing.--Hearings conducted pursuant to
 

1this section concerning an allegation that section 1103, 1104, 
21105(a) or this section has been violated shall be closed to the 
3public unless the subject requests an open hearing. Any person 
4who appears before the commission shall have all of the due 
5process rights, privileges and responsibilities of a party or 
6witness appearing before an administrative agency of this 
7Commonwealth. All witnesses summoned for such hearings shall 
8receive reimbursement for reasonable expenses in accordance with 
942 Pa.C.S. § 5903 (relating to compensation and expenses of 
10witnesses). At the conclusion of a hearing concerning an alleged 
11violation and in a timely manner, the commission shall 
12deliberate on the evidence and determine whether there has been 
13a violation of [this chapter] section 1103, 1104, 1105(a) or 
14this section. At least four members of the commission present at 
15a meeting must find a violation by clear and convincing proof. 
16The names of the members finding a violation and the names of 
17those dissenting and abstaining shall be listed in the order. 
18The determination of the commission, in the form of a final 
19order and findings of fact, shall be a matter of public record.

20(h) Availability of final orders, files and records.--Orders
21which become final in accordance with the provisions of this
22section shall be available as public documents, but the files
23and records of the commission relating to the case shall remain
24confidential.

25(i) Appeal.--Any person aggrieved by an opinion or order
26which becomes final in accordance with the provisions of this
27[chapter] section who has direct interest in such opinion or
28order shall have the right to appeal therefrom in accordance
29with law and general rules.

30(j) Retaliation prohibited.--No public official or public

1employee shall discharge any official or employee or change his
2official rank, grade or compensation or deny him a promotion or
3threaten to do so for filing a complaint with or providing
4information to the commission or testifying in any commission
5proceeding. No member of the commission and no employee of the
6commission shall discharge any employee of the commission or
7change his official rank, grade or compensation or threaten to
8do so for providing any information about the internal
9operations of the commission, not required by law to be kept
10secret, to any legislator or legislative staff member or
11testifying in any legislative proceeding.

12(k) Confidentiality.--As a general rule, no person shall
13disclose or acknowledge to any other person any information
14relating to a complaint, preliminary inquiry, investigation,
15hearing or petition for reconsideration which is before the
16commission. However, a person may disclose or acknowledge to
17another person matters held confidential in accordance with this
18subsection when the matters pertain to any of the following:

19(1) final orders of the commission as provided in
20subsection (h);

21(2) hearings conducted in public pursuant to subsection
22(g);

23(3) for the purpose of seeking advice of legal counsel;

24(4) filing an appeal from a commission order;

25(5) communicating with the commission or its staff, in
26the course of a preliminary inquiry, investigation, hearing
27or petition for reconsideration by the commission;

28(6) consulting with a law enforcement official or agency
29for the purpose of initiating, participating in or responding
30to an investigation or prosecution by the law enforcement

1official or agency;

2(7) testifying under oath before a governmental body or
3a similar body of the United States of America;

4(8) any information, records or proceedings relating to
5a complaint, preliminary inquiry, investigation, hearing or
6petition for reconsideration which the person is the subject
7of; or

8(9) such other exceptions as the commission by
9regulation may direct.

10(l) Frivolous complaints and wrongful disclosure.--If a
11public official or public employee has reason to believe the
12complaint for a violation of section 1103, 1104, 1105(a) or this 
13section is frivolous as defined by this chapter, or without
14probable cause and made primarily for a purpose other than that
15of reporting a violation of this chapter, or a person publicly
16disclosed or caused to be disclosed that a complaint against the
17public official or public employee has been filed with the
18commission, the public official or public employee shall notify
19the commission and the commission, through its executive
20director, shall conduct an investigation.

21(m) Limitation of time.--The commission may conduct an
22investigation under this section within five years after the
23alleged occurrence of any violation of this chapter.

24§ 1109. Penalties.

25* * *

26(c) Treble damages.--Any person who obtains financial gain
27from violating any provision of [this chapter] section 1103 
28(relating to restricted activities), 1104 (relating to statement 
29of financial interests required to be filed), 1105(a) (relating 
30to statement of financial interests) or 1108 (relating to
 

1investigations of violations of this chapter by commission), in
2addition to any other penalty provided by law, shall pay a sum
3of money equal to three times the amount of the financial gain
4resulting from such violation into the State Treasury or the
5treasury of the political subdivision. Treble damages shall not
6be assessed against a person who acted in good faith reliance on
7the advice of legal counsel.

8* * *

9(f) Civil penalty.--In addition to any other civil remedy or
10criminal penalty provided for in this chapter, the commission
11may, after notice has been served in accordance with section
12[1107(5)] 1102.4(9) (relating to powers and duties of
13commission) and upon a majority vote of its members, levy a
14civil penalty upon any person subject to this chapter who fails
15to file a statement of financial interests in a timely manner or
16who files a deficient statement of financial interests, at a
17rate of not more than $25 for each day such statement remains
18delinquent or deficient. The maximum penalty payable under this
19paragraph is $250.

20* * *

21Section 7. Title 65 is amended by adding a section to read:

22§ 1109.1. Costs, restitution and forfeiture.

23The commission shall be entitled to an equitable share, as
24determined by the court, of:

25(1) Assets seized or forfeited as a result, in whole or
26part, of an investigation by the commission.

27(2) Award of costs of prosecution or other fees or costs
28awarded as a result of a conviction for any criminal offense
29based, in whole or part, on an investigation by the
30commission.

1Section 8. Section 1110 of Title 65 is amended to read:

2§ 1110. Wrongful use of chapter.

3(a) Liability.--A person who signs a complaint alleging a
4violation of [this chapter] section 1103 (relating to restricted 
5activities), 1104 (relating to statement of financial interests 
6required to be filed), 1105(a) (relating to statement of 
7financial interests) or 1108 (relating to investigations of 
8violations of this chapter by commission) against another is
9subject to liability for wrongful use of this chapter if:

10(1) the complaint was frivolous, as defined by this
11chapter, or without probable cause and made primarily for a
12purpose other than that of reporting a violation of this
13chapter; or

14(2) he publicly disclosed or caused to be disclosed that
15a complaint against a person had been filed with the
16commission.

17(b) Probable cause.--A person who signs a complaint alleging
18a violation of [this chapter] section 1103, 1104, 1105(a) or 
191108 has probable cause for doing so if he reasonably believes
20in the existence of the facts upon which the claim is based and
21either:

22(1) reasonably believes that under those facts the
23complaint may be valid under this chapter; or

24(2) believes to this effect in reliance upon the advice
25of counsel, sought in good faith and given after full
26disclosure of all relevant facts within his knowledge and
27information.

28(c) Commission procedures.--When the commission determines
29that a complainant has violated the provisions set forth in
30subsection (a), the commission, upon receiving a written request

1from the subject of the complaint, shall provide the name and
2address of the complainant to said subject. If the commission
3determines that a complainant has not violated the provisions of
4subsection (a), the commission shall notify the subject
5accordingly. The subject shall have the right to appeal the
6commission's determination, and the commission shall schedule an
7appeal hearing. The subject shall show cause why the complainant
8violated the provisions of this section. If the commission
9grants the appeal, the commission shall immediately release the
10complainant's name and address to the subject. If the commission
11denies the appeal, it shall present evidence why the
12complainant's name and address shall not be released.

13(d) Damages.--When the essential elements of an action
14brought pursuant to this section have been established, the
15plaintiff is entitled to recover for the following:

16(1) The harm to his reputation by a defamatory matter
17alleged as the basis of the proceeding.

18(2) The expenses, including any reasonable attorney
19fees, that he has reasonably incurred in proceedings before
20the commission.

21(3) Any specific pecuniary loss that has resulted from
22the proceedings.

23(4) Any emotional distress that has been caused by the
24proceedings.

25(5) Any punitive damages according to law in appropriate
26cases.

27Section 9. Title 65 is amended by adding sections to read:

28§ 1110.1. Disclosure of executive session testimony and
29investigative records.

30No testimony taken in executive session, a part thereof, or a

1summary thereof and no investigative record, a part thereof, or
2a summary thereof, may be released or disclosed to a person
3either orally or in writing by a commissioner or employee of the
4commission without the authorization of the commission.

5§ 1110.2. Privileged statements and reports.

6A statement or disclosure of information made by a
7commissioner or an employee of the commission during the course
8of a hearing or official proceeding and a report issued by the
9commission before the General Assembly or to another law
10enforcement agency shall be absolutely privileged. The privilege
11shall be an absolute defense to an action for invasion of
12privacy, defamation or other civil or criminal action.

13§ 1110.3. Commission disclosure of economic interests.

14(a) Disclosure statement.--As of the date of appointment to
15the commission and on or before March 15 of each following year,
16each commissioner shall file with the Governor, the Secretary of
17the Senate and the Chief Clerk of the House of Representatives
18for the preceding calendar year a sworn statement of economic
19interests. The economic interests statement shall contain the
20information required under subsection (e). Once the economic
21interests statement has been filed under this chapter, the
22statement shall be updated annually by filing a supplemental
23statement. The economic interests of a spouse or child of a
24commissioner who is under 18 years of age shall be deemed an
25economic interest of a commissioner.

26(b) Record.--The Governor, the Secretary of the Senate and
27the Chief Clerk of the House of Representatives shall maintain
28the economic interests statements filed by commissioners as
29public records which shall be open for public examination and
30copying, at cost, at all reasonable times. The economic

1interests statements shall remain on file for five years from
2the initial date of filing.

3(c) Requirements.--The commission shall promulgate
4regulations to be published in the Pennsylvania Bulletin
5regarding economic disclosure requirements for employees of the
6commission.

7(d) Penalties.--In addition to other penalties imposed by
8law for false swearing, neglect or refusal of a commissioner or
9employee to file a complete and accurate economic interests
10statement under the requirements of this section or the willful
11filing of an inaccurate statement shall constitute misfeasance
12in office in the case of commissioners and shall constitute
13grounds for dismissal in the case of employees.

14(e) Contents.--The sworn economic interests statement shall
15contain:

16(1) The identity of offices and directorships by name.

17(2) An identifying description of real estate in this
18Commonwealth in which the commissioner or a member of the
19commissioner's household has an interest, direct or indirect,
20including an option to buy, provided that a commissioner's
21primary place of residence shall not be included.

22(3) The name of each creditor to whom the commissioner
23or a member of the commissioner's household owes money in
24excess of $6,500, the category of the amount owed and the
25interest rate, provided that loans or credit extended between
26members of the immediate family and a mortgage upon the
27commissioner's primary place of residence shall not be
28included.

29(4) The name of each business, insurance policy or trust
30in which the commissioner or a member of the commissioner's

1household has a financial interest and the nature and
2category of the amount of the interest.

3(5) The source, by name, and category of the amounts of
4income in excess of $1,300, including capital gains, whether
5or not taxable, received by the commissioner or a member of
6the commissioner's household during the preceding year.

7(6) A list of businesses with which a commissioner is
8associated that do business with or are regulated by the
9Commonwealth and a description of the nature of the business
10or regulation.

11(7) A salary, fee, commission or other income, listed in
12dollar amount or value, received by a commissioner from a
13political subdivision of this Commonwealth or an agency of
14the Commonwealth, other than the commission, including the
15name of the political subdivision or agency or from an entity
16which maintains a person required to be registered as a
17lobbyist under any law requiring the registration.

18(f) Amounts.--Where an amount is required to be reported by
19category, the individual shall report whether the amount is less
20than $5,000, at least $5,000 but less than $10,000, at least
21$10,000 but less than $25,000 or $25,000 or more. An amount of
22stock may be reported by number of shares instead of by category
23of dollar value.

24(g) Additional disclosure.--No provision of this chapter
25shall be interpreted to prevent a person from filing more
26information or more detailed information than required on an
27economic interests statement.

28§ 1111.1. Applicable statutes.

29The provisions of Chapters 7 (relating to open meetings) and
3011 (relating to ethics standards and financial disclosure) shall

1apply to the commission except as otherwise provided in this
2chapter.

3Section 10. This act shall take effect in 60 days.