PRINTER'S NO. 242
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
269
Session of
2021
INTRODUCED BY SHUSTERMAN, HANBIDGE, CIRESI, DeLUCA, KENYATTA,
WEBSTER, O'MARA, WARREN, McNEILL, LEE AND FREEMAN,
JANUARY 26, 2021
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JANUARY 26, 2021
AN ACT
Amending Title 65 (Public Officers) of the Pennsylvania
Consolidated Statutes, in lobbying disclosure, further
providing for definitions, for reporting and for penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "State official or employee" in
section 13A03 of Title 65 of the Pennsylvania Consolidated
Statutes is amended and the section is amended by adding
definitions to read:
ยง 13A03. 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:
* * *
"Client." An individual or organization that retains,
employs or designates an individual or organization to carry on
lobbying activities on behalf of the individual or client. With
respect to an organization, the term client also includes high-
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level individuals of the organization.
* * *
"High-level individual." A proprietor, partner, director,
trustee or person within the executive management of a client.
* * *
"Reportable business relationship." A relationship that
meets all the criteria listed in section 13A05(f)(1)(relating to
reporting).
"Reportable business relationship form." The reportable
business relationship form available on the department's
publicly accessible Internet website.
* * *
"Requisite involvement in an entity." A State official or
employee who:
(1) is a proprietor, partner, director, officer or
manager of a nongovernmental entity; or
(2) owns or controls 10% or more of the stock of a
nongovernmental entity or 1% in the case of a corporation
whose stock is regularly traded on an established securities
exchange.
* * *
"State official or employee." [An individual elected or
appointed to a position in State government or employed by State
government, whether compensated or uncompensated, who is
involved in legislative action or administrative action.]
Includes:
(1) Statewide elected officials;
(2) members or employees of the General Assembly;
(3) officers and employees of Statewide elected
officials;
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(4) officers and employees of State departments, boards,
bureaus, divisions, commissions, councils or other State
agencies; and
(5) employees of public authorities, public benefit
corporations and commissions if at least one of the members
of the public authority, public benefit corporation or
commission is appointed by the Governor and members or
directors of which are compensated other than on a per diem
basis. The provisions of this paragraph shall not apply to
employees of multistate authorities.
* * *
Section 2. Sections 13A05 and 13A09 of Title 65 are amended
by adding subsections to read:
ยง 13A05. Reporting.
* * *
(f) Disclosing a reportable business relationship.--
Notwithstanding any other provision of this act to the contrary,
the following apply:
(1) A reportable business relationship must be
disclosed, on a form developed by the department, regardless
of when the relationship commenced, if at any time during a
calendar year, all of the following criteria are met:
(i) A formal or informal agreement or understanding
exists in which a lobbyist or client of a lobbyist pays,
has paid or promises compensation to:
(A) An individual whom the lobbyist or client
knows or has reason to know is a State official or
employee. An individual shall be deemed to have
reason to know under this clause if a reasonable
person, based on the totality of the circumstances,
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would conclude that a lobbyist or client should have,
or but for willful ignorance, would have known a
particular fact. The following factors may be
considered, individually or in totality, to determine
whether a lobbyist or client had reason to know:
(I) the origins of the relationship between
the parties;
(II) the length of the relationship of the
parties;
(III) the type and actual value of the
goods, services or items provided; or
(IV) whether the fact that the individual is
a State official or employee or the requisite
involvement of the State official or employee
with the entity at issue is generally known to
the public.
(B) A nongovernmental entity for which the
lobbyist or client knows or has reason to know that
the State official or employee has requisite
involvement.
(C) A third-party, as directed by the State
official or employee or as directed by the entity.
(ii) The payment or promise of compensation is or
was in exchange for goods, services or anything of value,
either performed or provided or intended to be performed
or provided by the State official or employee or an
entity in which the State official or employee has
requisite involvement.
(iii) The total value of the compensation paid to
the State official or employee or an entity in which the
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State official or employee has requisite involvement,
which must be aggregated if applicable in accordance with
paragraph (2), exceeds $1,000 within a calendar year. The
threshold is met once more if $1,000 in compensation is
paid or owed to the State official or employee or entity
for services performed or provided or intended to be
performed or provided.
(2) If a lobbyist or client has multiple reportable
business relationships with the same State official or
employee or the same entity or entities in which a State
official or employee has the requisite involvement, the value
of the compensation paid for goods, services or anything of
value relating to the relationships must be aggregated. If
the aggregated value of compensation is more than $1,000
within a calendar year, each relationship is a reportable
business relationship if all other criteria under this
subsection are satisfied.
(3) A lobbyist or client must complete a reportable
business relationship form and submit it to the commission
within 10 days of the reportable business relationship's
existence. For ongoing reportable business relationships,
lobbyists and clients must disclose on their reportable
business relationship form all calendar years in which the
reportable business relationship is in existence.
(4) A reportable business relationship form shall be
considered a part of the lobbyist's registration statement or
the client's semiannual report, as applicable. If an entity
files both lobbyist statements of registration and client
semiannual reports, the entities shall only be required to
file the lobbyist reportable business relationship form to
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comply with the filing requirement under this paragraph.
(5) For each reportable business relationship, a
lobbyist or client must provide the following information on
the reportable business relationship form:
(i) the name and public office address of the State
official or employee or entity with which the State
official or employee has requisite involvement;
(ii) a description of the general subject or
subjects of the transactions between the lobbyist or
client and the State official or employee or entity with
which the State official or employee has requisite
involvement; and
(iii) the actual or anticipated amount of
compensation, including reimbursable expenses, to be paid
and paid to the State official or employee or entity with
which the State official or employee has requisite
involvement by virtue of the reportable business
relationship.
(6) For organizations that constitute a client of a
lobbyist, each reportable business relationship of its high-
level individuals must be reported by the client organization
if:
(i) the high-level individual entered into the
reportable business relationship in the individual's
personal capacity; or
(ii) another entity entered into the reportable
business relationship at the direction or request of the
high-level individual.
(7) A lobbyist or client organization may use and rely
upon in good faith, the responses to a questionnaire provided
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by the commission to send to equity partners, officers,
directors or high level individuals, as applicable, to
determine whether those individuals have reportable business
relationships that must be disclosed.
(8) If a material change occurs relating to information
reported in the reportable business relationship form after
the form has been submitted, including material changes in
the actual or anticipated amount of compensation paid, an
amended reportable business relationship form must be
submitted to the commission within 10 days of the change.
(9) Relationships between a lobbyist or client and a
State official or employee or entity in which a State
official or employee has requisite involvement that relate to
the following are excluded from reporting requirements:
(i) medical, dental and mental health services and
treatment; and
(ii) legal services with respect to investigation or
prosecution by law enforcement authorities, bankruptcy
and domestic relations matters.
(g) Annual report.--
(1) Each lobbyist shall make and certify the correctness
of a full annual report to the commission, of money, loans,
paid personal services or other items of value contributed to
the lobbyist and expenditures made, incurred or authorized by
the lobbyist for the purpose of communication with, or
providing benefits to, the Governor, Lieutenant Governor, the
Governor's staff, an officer or staff member of the Executive
Branch or any member or staff of the General Assembly, during
the previous year.
(2) The report shall include, but not be limited to, the
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following expenditures which relate to communication with or
providing benefits to, the Governor, the Lieutenant Governor,
an officer or staff member of the Executive Branch or any
member or staff of the General Assembly:
(i) media, including advertising;
(ii) entertainment;
(iii) food and beverage;
(iv) travel and lodging;
(v) honoraria;
(vi) loans;
(vii) gifts; and
(viii) salary, fees, allowances or other
compensation paid to a lobbyist.
(3) The expenditures shall be reported whether made to
the intended recipient of the communication or benefit, to a
lobbyist or, in the case of a communication to the general
public, to the publisher of that communication.
(4) The expenditures shall be reported in the aggregate
by category, except that if the aggregate expenditures on
behalf of the Governor, the Lieutenant Governor, an officer
or staff member of the Executive Branch or a member or staff
of the General Assembly exceed $25 per day, the expenditures
shall be detailed separately as to the name of the Governor,
the Lieutenant Governor, a member of the Governor's staff, an
officer or staff member of the Executive Branch or a member
or staff of the General Assembly, the date and type of
expenditure, the amount of expenditure and to whom paid.
(5) If the aggregate expenditures for the purpose of
communication with or providing benefits to the Governor, the
Lieutenant Governor, an officer or staff member of the
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Executive Branch or any member or staff of the General
Assembly exceed $200 per year, the expenditures, together
with the name of the intended recipient of the communication
or benefits, shall be stated in detail including the type of
each expenditure, amount of expenditure and to whom paid.
(6) If expenditures in the aggregate in excess of $100,
the report shall include the date and type of expenditure,
amount of expenditure and to whom paid.
(7) The commission may permit joint reports by
lobbyists. No lobbyist shall be required to file a report
unless:
(i) all money, loans, paid personal services or
other things of value contributed to a lobbyist for the
purpose of communication with or making expenditures
providing a benefit to the Governor, the Lieutenant
Governor, an officer or staff member of the Executive
Branch, a member or staff of the General Assembly or, for
the purpose of communication with the general public,
exceed $2,500 in any year; or
(ii) all expenditures made, incurred or authorized
by a lobbyist for the purpose of communication with or
providing benefits to the Governor, the Lieutenant
Governor, an officer or staff member of the Executive
Branch, a member or staff of the General Assembly or, for
the purpose of communication with the general public,
exceed $2,500 in any year.
ยง 13A09. Penalties.
* * *
(j) Failure to disclose a reportable business
relationship.--A lobbyist, public corporation or client who
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knowingly and willfully fails to file a statement or report
within the time required for the filing of a report shall be
subject to a civil penalty for each failure or violation, in an
amount not to exceed the greater of $25,000 or three times the
amount the person failed to report properly or unlawfully
contributed, expended, gave or received, to be assessed by the
commission.
(k) Registration fees.--The statement of registration filed
biennially by each lobbyist for the calendar years 2021-2022 and
thereafter shall be accompanied by a registration fee of $200,
except that no registration fee shall be required from any
lobbyist who in any year does not expend, incur or receive any
amount in excess of $5,000 of reportable compensation and
expenses. A fee of $200 shall be required for any subsequent
statement of registration filed by a lobbyist during the same
biennial period.
(l) Submission of false filings.--A lobbyist, public
corporation or client who knowingly and willfully fails to file
a statement or report under section 13A05(f) or (g) within the
time required for the filing of the report shall be subject to a
civil penalty for each failure or violation, in an amount not to
exceed the greater of $25,000 or three times the amount the
individual failed to report properly or unlawfully contributed,
expended, gave or received, to be assessed by the commission.
Section 3. This act shall take effect in 120 days.
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