Regular Session 2019-2020 House Bill 2693 P.N. 4132

PRINTER'S NO. 4132

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2693

Session of

2020

INTRODUCED BY ZABEL, HANBIDGE, WEBSTER, MADDEN, MURT, GALLOWAY,

SHUSTERMAN, NEILSON, KORTZ, HOWARD, HILL-EVANS, CIRESI,

OTTEN, McNEILL, LEE, DONATUCCI AND INNAMORATO, JULY 14, 2020

REFERRED TO COMMITTEE ON STATE GOVERNMENT, JULY 14, 2020

AN ACT

Amending Title 62 (Procurement) of the Pennsylvania Consolidated

Statutes, in ethics in public contracting, providing for

definitions and for disclosure of contributions by

contractors.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Title 62 of the Pennsylvania Consolidated

Statutes is amended by adding sections to read:

§ 2301.1. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

" Affiliate. " Any of the following:

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

of an applicant or a contractor.

(2) An officer, director, associate, controlling

shareholder, individual owner, partner or limited partner of

an applicant or a contractor.

(3) An officer, director, associate, controlling

shareholder, individual owner, partner or limited partner of

a parent, subsidiary or otherwise-affiliated entity of an

applicant or a contractor.

(4) A political committee controlled by an applicant or

a contractor.

(5) A political committee controlled by a parent,

subsidiary or otherwise-affiliated entity of an applicant or

a contractor.

(6) A lobbyist or lobbying firm identified on an

applicant's disclosure statement or a contractor's updated

disclosure statement.

" Applicant. " A bidder, offeror or other person seeking a

contract, which is to be awarded under section 513 (relating to

competitive sealed proposals), 514 (relating to small

procurements), 515 (relating to sole source procurement), 516

(relating to emergency procurement), 518 (relating to

competitive selection procedures for certain services) or 519

(relating to selection procedure for insurance and notary

bonds).

"Elected official." An individual elected by the public to

serve a term in an elective office. The term shall include an

individual appointed to fill an unexpired term in an elective

office.

"Elective office." A position in a governmental body to

which an individual is required under the Constitution of

Pennsylvania or by State law to be elected by the public.

"Lobbying." As defined in 65 Pa.C.S. § 13A03 (relating to

definitions).

"Lobbying firm." As defined in 65 Pa.C.S. § 13A03.

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"Lobbyist." As defined in 65 Pa.C.S. § 13A03.

" Reportable contribution. " Any of the following:

(1) A contribution made by an applicant or a contractor

or an affiliate of an applicant or a contractor to:

(i) a candidate for nomination or election to an

elective office or to the candidate's political

committee;

(ii) an elected official or to the elected

official's candidate political committee; or

(iii) a political committee not described in

subparagraph (i) with the purpose and intent that the

political committee will, directly or indirectly, make

the contribution available to a candidate for nomination

or election to an elective office or to the candidate's

political committee, or to an elected official or the

elected official's candidate political committee.

(2) A contribution made by a person to a candidate for

nomination or election to an elective office or to the

candidate's political committee, or to an elected official or

to the elected official's candidate political committee, for

which a person who is an applicant or a contractor or any of

their respective affiliates acts as an intermediary.

§ 2304. Disclosure of contributions by contractors.

(a) Initial disclosure requirements.--

(1) A Commonwealth agency may not award a contract to an

applicant under section 513 (relating to competitive sealed

proposals), 514 (relating to small procurements), 515

(relating to sole source procurement), 516 (relating to

emergency procurement), 518 (relating to competitive

selection procedures for certain services) or 519 (relating

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to selection procedure for insurance and notary bonds),

unless the applicant has submitted to the Commonwealth agency

a completed and signed disclosure statement that sets forth

the information required under subsection (c) and is

otherwise in compliance with this section.

(2) Except as provided in paragraph (3), an applicant

shall submit a completed and signed disclosure statement to

the Commonwealth agency with other bid or proposal materials

relating to the contract on or prior to the time and date

established by the Commonwealth agency for receipt of bids or

proposals.

(3) For contracts awarded under section 514, 515 or 516

that do not require the submission of bids or offers, an

applicant shall submit a completed disclosure statement as

directed by the Commonwealth agency, but prior to the

Commonwealth agency's award of the contract.

(4) A bid or offer made without a completed and signed

disclosure statement may not be considered a responsive bid

or offer.

(b) Requirements to update disclosures.--

(1) During the term of the contract and for one year

thereafter, a contractor who has been awarded a contract

under section 513, 514, 515, 516, 518 or 519 shall submit an

updated disclosure statement to the Commonwealth agency

within five days following making a reportable contribution

or learning that an affiliate has made a reportable

contribution. An updated disclosure statement shall include

the reportable contributions made since the date of the first

disclosure statement submitted.

(2) A contract awarded under section 513, 514, 515, 516,

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518 or 519 must contain a provision requiring the contractor

to submit an updated disclosure statement as required under

paragraph (1).

(1) The department shall develop a form of disclosure

statement to be used by applicants and contractors under this

section.

(2) The invitations for bids, requests for proposals and

other Commonwealth agency communications with prospective

contractors regarding a contract awarded under section 513,

514, 515, 516, 518 or 519 must include a disclosure statement

form and information regarding the disclosure requirements of

this section.

(3) The department and the Department of State shall

post the disclosure statement form and information regarding

the disclosure requirements of this section on their

respective publicly accessible Internet websites and shall

otherwise make the forms and information available upon

request.

(d) Content of disclosure statements and updates.--A

disclosure statement submitted under subsection (a) shall

include the following information:

(1) The name, business address and telephone number of

the applicant or contractor.

(2) The contract number or other identifying information

regarding the contract sought by the applicant or awarded to

the contractor.

(3) The names, business addresses and telephone numbers

of the lobbyists and lobbying firms paid by the applicant to

lobby a Commonwealth agency to influence the awarding of a

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contract within one year prior to the date of an applicant's

bid, offer or proposal.

(4) A list of the reportable contributions made within

one year prior to the date of the applicant's bid, offer or

proposal. For each reportable contribution made, the

applicant shall identify the recipient of the contribution

and the date and amount of the contribution.

(5) The fundraising events hosted by an applicant or any

of the applicant's affiliates within one year prior to the

date of the applicant's bid, offer or proposal for the

purpose of soliciting or receiving reportable contributions

and the date and amount of reportable contributions solicited

or received at each event. An updated disclosure statement

shall be submitted during the term of a contract within five

days following a fundraising event described in this

paragraph hosted by a contractor or an affiliate of a

contractor.

(6) The name, business address and telephone number of

all subcontractors which the applicant intends to use on the

contract or which the contractor is using on the contract.

(e) Posting of disclosure statements and updates.--

(1) A Commonwealth agency shall promptly transmit to the

Department of State a copy of the disclosure statement and

each updated disclosure statement it receives from an

applicant or a contractor under this section.

(2) The Department of State shall post each disclosure

statement and each updated disclosure statement received

under this section on its publicly accessible Internet

website no later than five days after the disclosure

statement or update has been received by the department. A

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disclosure statement and related updates shall remain posted

for a period of time encompassing the length of the contract

and one year thereafter. To the extent practicable, a

disclosure statement and related updates shall be posted

together.

(3) The Department of State shall make disclosure

statements and updated disclosure statements received under

this section available for public inspection and copying.

(f) Penalties.--In addition to other penalties that may be

assessed under other law, an applicant or a contractor who makes

a material misstatement or omission in a disclosure statement or

an updated disclosure statement may be debarred or suspended

under section 531 (relating to debarment or suspension).

(g) Application of section.--This section shall apply to a

bid, offer or proposal that is solicited on or after the

effective date of this section.

Section 2. This act shall take effect immediately.

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