Regular Session 2021-2022 Senate Bill 0801 P.N. 1136

PRINTER'S NO. 1136

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

801

Session of

2021

INTRODUCED BY MENSCH, CORMAN, BAKER, PHILLIPS-HILL, TOMLINSON,

AUMENT, COSTA, DiSANTO, FONTANA, LAUGHLIN, MARTIN, MASTRIANO,

SCHWANK, STEFANO AND L. WILLIAMS, OCTOBER 13, 2021

REFERRED TO STATE GOVERNMENT, OCTOBER 13, 2021

AN ACT

Amending Titles 18 (Crimes and Offenses) and 65 (Public

Officers) of the Pennsylvania Consolidated Statutes, in other

offenses, further providing for the offense of contingent

compensation; in lobbying disclosure, further providing for

definitions, for registration and for reporting, providing

for equity reporting and for financial assistance reporting

and further providing for exemption from registration and

reporting, for prohibited activities, for administration and

for penalties; making a related repeal; and making editorial

changes.

Section 1. Section 7515(a) and (c) of Title 18 of the

Pennsylvania Consolidated Statutes are amended to read:

§ 7515. Contingent compensation.

(a) Offense defined.--

(1) No person may compensate or incur an obligation to

compensate any person to engage in lobbying for compensation

contingent in whole or in part upon the passage, defeat,

approval or veto of legislation or the issuance of an

administrative action.

(2) No person may engage or agree to engage in lobbying

for compensation contingent in whole or in part upon the

passage, defeat, approval or veto of legislation or the

issuance of an administrative action.

* * *

[term "lobbying" means an] following words and phrases shall

have the meanings given to them in this subsection unless the

context clearly indicates otherwise:

"Administrative action." The administration of a grant, a

loan or an agreement involving the disbursement of public funds.

"Lobbying." An effort to influence State legislative action

for economic consideration.

Section 2. Section 13A03 of Title 65 is amended by adding a

definition to read:

§ 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:

* * *

"Third-party affiliate." Any business, organization or

person that is affiliated with a lobbyist, lobbying firm or

principal.

* * *

Section 3. Sections 13A04(e)(4) and 13A05 heading of Title

65 are amended to read:

§ 13A04. Registration.

* * *

(e) Termination.--

* * *

(4) Nothing in this subsection shall be construed to

exempt a lobbyist, lobbying firm or principal from any of the

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requirements in section 13A05 (relating to expense

reporting).

§ 13A05. [Reporting] Expense reporting.

Section 4. Title 65 is amended by adding sections to read:

§ 13A05.1. Equity reporting.

Each lobbying firm and lobbyist required to register under

section 13A04(a) (relating to registration) shall, subject to

the penalties under 18 Pa.C.S. § 4904 (relating to unsworn

falsification to authorities), electronically file a quarterly

equity report using the computerized filing system developed by

the department. Equity reports shall disclose financial interest

in any legal entity in business-for-profit that a lobbying firm

or lobbyist holds in the entity for which they are lobbying and

shall be consistent with the purpose of this chapter. Equity

reports shall be filed no later than 30 days after the last day

of the quarter and may include any additional information

required by the department. As used in this section, the term

"equity report" means a report with a list of each name and

address and financial interest held in any legal entity in

business-for-profit of which a lobbying firm or lobbyist owns

more than 5% of the equity or more than 5% of the assets of

economic interest in indebtedness.

§ 13A05.2 . Financial assistance reporting.

Each lobbyist shall, subject to the penalties under 18

Pa.C.S. § 4904 (relating to unsworn falsification to

authorities), file a quarterly financial assistance report with

the department electronically using the computerized filing

system developed by the department that is consistent with the

purpose of this chapter of the collection of economic

consideration through a third-party affiliate, lobbying firm or

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principal for the successful award of a State or local grant

program which uses Commonwealth money. The quarterly financial

assistance report shall include the lobbyist's registration

number and the amount of economic consideration collected by the

lobbyist for the successful award of a State or local grant

program which uses Commonwealth money.

Section 5. Section 13A06 introductory paragraph of Title 65

is amended to read:

§ 13A06. Exemption from registration and reporting.

The following persons and activities shall be exempt from

registration under section 13A04 (relating to registration) and

reporting under section 13A05 (relating to expense reporting):

* * *

Section 6. Section 13A07(d)(5) of Title 65 is amended and

the section is amended by adding a subsection to read:

§ 13A07. Prohibited activities.

* * *

(d) Conflicts of interest.--

* * *

(5) A principal or lobbyist required to report under

section 13A05 (relating to expense reporting) shall include

in the report a statement affirming that to the best of the

principal's or lobbyist's knowledge the principal or lobbyist

has complied with this section.

* * *

(g) Third-party inducement.--A lobbyist, lobbying firm or

principal may not collect economic consideration for lobbying

through a third-party affiliate for a State or local grant

program that uses Commonwealth money.

Section 7. Sections 13A08(c) and (j) and 13A09(g)(2) of

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Title 65 are amended to read:

§ 13A08. Administration.

* * *

make completed registration statements, expense reports, equity

reports, financial assistance reports and notices of

termination, which have been filed with the department,

available for public inspection and provide copies of these

documents at a price not in excess of the actual cost of

copying. The department shall make all registrations and reports

available on a publicly accessible Internet website. Documents

maintained and reproducible in an electronic format shall be

provided in that format upon request.

* * *

(j) Inflation adjustment.--On a biennial basis commencing in

January 2009, the department shall review the threshold under

section 13A06 (relating to exemption from registration and

reporting) for registration under section 13A04 (relating to

registration) and the threshold for reporting under section

13A05(d) (relating to expense reporting) and shall increase

these amounts to rates deemed reasonable for assuring

appropriate disclosure. On a biennial basis commencing in

January 2009, the department shall review the filing fee

established under section 13A10 (relating to registration fees;

fund established; system; regulations) and may by regulation

adjust this amount if the department determines that a higher

fee is needed to cover the costs of carrying out the provisions

of this chapter. The department shall publish adjusted amounts

in the Pennsylvania Bulletin by June 1, 2009, and by June 1

every two years thereafter as necessary.

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* * *

§ 13A09. Penalties.

* * *

(g) Affirmative defense.--Any of the following is an

affirmative defense to an action brought under Chapter 11

(relating to ethics standards and financial disclosure) or this

chapter:

* * *

(2) The respondent or defendant relied on notice under

section 13A05(b)(3)(iv) (relating to expense reporting).

* * *

Section 8. Repeals are as follows:

(1) The General Assembly declares that the repeal under

paragraph (2) is necessary to effectuate the addition of 65

Pa.C.S. § 13A05.1.

(2) Section 816 of the act of April 9, 1929 (P.L.177,

No.175), known as The Administrative Code of 1929, is

repealed.

Section 9. The addition of 65 Pa.C.S. § 13A05.1 is a

continuation of section 816 of the act of April 9, 1929

(P.L.177, No.175), known as The Administrative Code of 1929. The

following apply:

(1) All activities initiated under section 816 of The

Administrative Code of 1929 shall continue and remain in full

force and effect and may be completed under 65 Pa.C.S. §

13A05.1. Orders, regulations, rules and decisions which were

made under section 816 of The Administrative Code of 1929 and

which are in effect on the effective date of this section,

shall remain in full force and effect until revoked, vacated

or modified under 65 Pa.C.S. § 13A05.1. Contracts,

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obligations and collective bargaining agreements entered into

under section 816 of The Administrative Code of 1929 are not

affected nor impaired by the repeal of section 816 of The

Administrative Code of 1929.

(2) Any difference in language between 65 Pa.C.S. §

13A05.1 and section 816 of The Administrative Code of 1929 is

intended only to conform to the style of the Pennsylvania

Consolidated Statutes and is not intended to change or affect

the legislative intent, judicial construction or

administration and implementation of section 816 of The

Administrative Code of 1929.

Section 10. This act shall take effect in 180 days.

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