PRINTER'S NO. 1138
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
803
Session of
2021
INTRODUCED BY BAKER, CORMAN, MENSCH, 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 Title 65 (Public Officers) of the Pennsylvania
Consolidated Statutes, in lobbying disclosure, further
providing for definitions, for registration, for reporting,
for exemption from registration and reporting, for prohibited
activities, for administration and for penalties; and making
editorial changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 13A03 of Title 65 of the Pennsylvania
Consolidated Statutes 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:
* * *
"Affiliate." Any of the following:
(1) An entity or person that directly or indirectly
controls, is controlled by, or is under common control with,
another entity or person.
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(2) An officer, director or manager of an entity.
(3) An entity or person directly or indirectly owning,
controlling or holding with power to vote 10% or more of the
outstanding voting securities of another entity or person.
(4) An entity or person 10% or more of whose outstanding
voting securities are directly or indirectly owned,
controlled or held by another entity or person with power to
vote such securities.
(5) A member of the same household, as well as an
immediate family member, of any person described in paragraph
(1), (2), (3) or (4) of this definition.
* * *
"Control." As used in the definition of "affiliate," the
term means the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies
of an entity or person, whether through ownership of voting
securities, by contract or otherwise.
* * *
"Political consultant." An entity or person providing
political consulting services.
"Political consulting." The provision, for compensation, to
any state or county public official, candidate or nominee, as
those terms are defined under section 1102 (relating to
definitions) for an elected State or county office of advice,
services or assistance in securing such public office,
including, but not limited to, campaign management, fundraising
activities, voter outreach, public relations or media service,
but shall exclude bona fide legal work directly related to
litigation or legal advice with regard to securing a place on
the ballot, the petitioning process, the conduct of an election
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or which involves election laws.
* * *
Section 2. Section 13A04(a), (d)(1) and (e)(1), (2) and (4)
of Title 65 are amended, subsection (b)(1) and (2) are amended
by adding subparagraphs, subsection (c) is amended by adding a
paragraph and the section is amended by adding a subsection to
read:
ยง 13A04. Registration.
(a) General rule.--Unless excluded under section 13A06
(relating to exemption from registration and reporting), a
lobbyist, lobbying firm [or a], principal or political
consultant must register with the department electronically
using the computerized filing system developed by the department
that is consistent with the purposes of this chapter within ten
days of acting in any capacity as a lobbyist, lobbying firm
[or], principal or political consultant. Registration shall be
biennial [and shall begin January 1, 2007].
(b) Principals and lobbying firms.--
(1) A principal or lobbying firm required to register
under subsection (a) shall file a single registration
statement setting forth the following information with the
department:
* * *
(x) Name of any affiliates.
(2) A lobbying firm shall include in its statement under
paragraph (1) the following information for each principal it
represents:
* * *
(v) Name of any affiliates.
* * *
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(c) Lobbyist.--A lobbyist who is required to register under
subsection (a) shall file a single registration statement
setting forth the following information with the department:
* * *
(10) Name of any affiliates.
(c.1) Political consultants.--A political consultant who is
required to register under subsection (a) shall file a single
registration statement providing the following information to
the department:
(1) Name.
(2) Permanent business address.
(3) Daytime telephone number.
(4) E-mail address, if available.
(5) Name of the political candidate or candidates for
whom the consultant will be providing services or assistance
or for whom the political consultant has provided services or
assistance in the past 12 months.
(6) Each office for which a political candidate
identified in paragraph (5) is seeking or sought election.
(7) Name of any affiliates.
(d) Amendments.--
(1) If there is a change of information required for the
registration statement under subsection (b)(1) or (2) [or],
(c) or (c.1), an amended registration statement shall be
filed with the department electronically using the
computerized filing system developed by the department that
is consistent with the purpose of this chapter within 14 days
after the change occurs.
* * *
(e) Termination.--
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(1) A lobbyist, lobbying firm [or], principal or
political consultant may terminate registration by filing
notice of termination with the department electronically
using the computerized filing system developed by the
department that is consistent with the purpose of this
chapter.
(2) After a review of the notice of termination, but no
later than 15 days after receipt of the notice, the
department shall issue to the lobbyist, lobbying firm [or],
principal or political consultant a letter stating that the
registrant has terminated registration. The filing of notice
shall not affect the commission's authority to conduct
investigations and hearings under section 13A08(g) (relating
to administration).
* * *
(4) Nothing in this subsection shall be construed to
exempt a lobbyist, lobbying firm [or], principal or political
consultant from any of the requirements in section 13A05
(relating to expense reporting).
Section 3. The heading of section 13A05 of Title 65 is
amended to read:
ยง 13A05. [Reporting] Expense reporting.
Section 4. Section 13A06 heading, introductory paragraph,
(1), (3), (4), (5), (11) and (12) of Title 65 are amended to
read:
ยง 13A06. Exemption from registration and expense 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):
(1) An individual who limits lobbying or political
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consulting to preparing testimony and testifying before a
committee of the General Assembly or participating in an
administrative proceeding of an agency.
* * *
(3) An individual who does not receive economic
consideration for lobbying or political consulting.
(4) An individual whose economic consideration for
lobbying or political consulting, from all principals and
from all State or county public officials, candidates or
nominees whom the individual represented, does not exceed
$2,500 in the aggregate during any reporting period for a
lobbyist or during any calendar year for a political
consultant.
(5) An individual who engages in lobbying or political
c onsulting on behalf of the individual's employer if the
lobbying or political consulting represents less than 20
hours during any reporting period.
* * *
(11) An individual representing a bona fide church or
bona fide religious body of which the individual is a member
where the lobbying or political consulting is solely for the
purpose of protecting the constitutional right to the free
exercise of religion.
(12) An individual who is not a registered lobbyist or a
registered political consultant and who serves on an advisory
board, working group or task force at the request of an
agency or the General Assembly.
* * *
Section 5. Section 13A07(c), (d)(1), (2), (3), (4), (5), (6)
introductory paragraph and (ii), (7) and (8) and (f)(1)(i), (vi)
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and (x) of Title 65 are amended and subsection (f)(1) is amended
by adding subparagraphs to read:
ยง 13A07. Prohibited activities.
* * *
(c) Falsification.--A lobbyist, lobbying firm [or],
principal or political consultant may not, for the purpose of
influencing legislative action or administrative action,
transmit, utter or publish to a State official or employee a
communication, knowing that the communication or a signature on
the communication is false, forged, counterfeit or fictitious.
(d) Conflicts of interest.--
* * *
(1) Except as permitted by paragraph (2), a registrant
may not lobby nor provide political consulting services on
behalf of a principal or a State or county public official,
candidate or nominee on any subject matter in which the
principal's or State or county public official's, candidate's
or nominee's interests are directly adverse to the interests
of another principal or State or county public official,
candidate or nominee that is either currently represented by
the lobbyist or political consultant or was previously
represented by the lobbyist or political consultant during
the current session of the General Assembly or the lobbyist's
own interests.
(2) A lobbyist or political consultant may represent a
principal or a State or county public official, candidate or
nominee in circumstances described in paragraph (1) if:
(i) the lobbyist or political consultant reasonably
believes that the lobbyist or political consultant will
be able to provide competent and diligent representation
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or services to each affected principal or State or county
public official, candidate or nominee;
(ii) the lobbyist or political consultant provides
written notice to each affected principal or State or
county public official, candidate or nominee upon
becoming aware of the conflict; and
(iii) each affected principal or State or county
public official, candidate or nominee provides informed
consent waiving the conflict of interest.
(3) If a lobbyist or political consultant represents a
principal in violation of this section or if multiple
representation properly accepted becomes improper under this
section and the conflict is not waived, the lobbyist or
political consultant shall promptly withdraw from one or more
representations or cease providing lobbying and political
consulting services to the extent necessary for remaining
representation to not be in violation of this section.
(4) If a lobbyist or political consultant is prohibited
by this section from engaging in particular conduct, an
[employer] affiliate of the lobbyist [or a partner or other
person associated with the lobbyist] or political consultant
may not engage in the particular conduct.
(5) A principal [or lobbyist], lobbyist or political
consultant 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] principal's, lobbyist's
or political consultant's knowledge, the principal, lobbyist
or political consultant has complied with this section.
(6) Except as provided in paragraph (8), and subject to
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13A09(f) (relating to penalties), the commission may receive
complaints regarding violations of this subsection. If the
commission determines a violation of this subsection has
occurred, the commission, after investigation, notice and
hearing:
* * *
(ii) may prohibit a lobbyist from lobbying or a
political consultant from providing political consulting
services for economic consideration for up to five years.
(7) A lobbyist [and], principal and political consultant
shall maintain the records relating to the conflict of
interest set forth in paragraph (2) for a four-year period
beginning on the date the conflict is discovered and, in the
case of an investigation conducted under paragraph (6),
provide copies of the records to the commission upon request.
(8) Complaints regarding violations of this subsection
involving a lobbyist [or], principal or political consultant
who is an attorney at law shall be referred to the board to
be investigated, considered and resolved in a manner
consistent with the Rules of Professional Conduct.
* * *
(f) Unlawful acts.--
(1) A lobbyist [or], principal or political consultant
may not:
(i) [Instigate] While engaged in lobbying on behalf
of the principal, instigate the introduction of
legislation for the purpose of obtaining employment to
lobby or providing political consulting services in
opposition to that legislation.
* * *
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(vi) Commit a criminal offense arising from lobbying
or political consulting.
* * *
(x) Engage in conduct which brings the practice of
lobbying, political consulting or the legislative or
executive branches of State government into disrepute.
(xi) Lobby a State or county official or an employee
on the State or county official's staff after the
lobbyist, principal or political consultant has provided
political consulting services for the State or county
official. This prohibition shall only apply for the term
in which the State or county official was elected.
(xii) Provide political consulting services while
registered as a lobbyist or a principal.
* * *
Section 6. Section 13A08(a), (d)(1), (g), (h), (j) and (k)
of Title 65 are amended and subsection (d)(2) is amended by
adding a subparagraph to read:
ยง 13A08. Administration.
(a) Advice and opinions.--The commission shall provide
advice and opinions under section 1107 (relating to powers and
duties of commission) to a lobbyist, a lobbying firm, a
principal, a political consultant, the department, the board or
a State official or employee, that seeks advice regarding
compliance with this chapter. A person that acts in good faith
based on the written advice or opinion of the commission shall
not be held liable for a violation of this chapter if the
material facts are as stated in the request.
* * *
(d) Annual reporting.--
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(1) The department shall prepare and publish an annual
report on lobbying and political consulting activities in
this Commonwealth.
(2) The department shall at least annually publish a
list of all of the following:
* * *
(iv) Registered political consultants.
* * *
(g) Investigation and hearings.--The commission, through its
executive director, may initiate an investigation and hold a
hearing concerning an alleged violation of this chapter by a
lobbyist [or], principal or political consultant in accordance
with sections 1107 (relating to powers and duties of commission)
and 1108 (relating to investigations by commission).
(h) Directory.--By May 1 of each odd-numbered year, the
department shall produce and distribute a directory of all
registered lobbyists, including photographs, registered
political consultants and registered lobbying firms. Copies of
the directory shall be made available to the public at a price
not to exceed the actual cost of production. All revenue
received by the department from the sales of the directory shall
be deposited into the fund.
* * *
(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
expense 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
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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], by June 1 of
every odd-numbered year, submit adjusted amounts to the
Legislative Reference Bureau for publication in the Pennsylvania
Bulletin [by June 1, 2009, and by June 1 every two years
thereafter as necessary].
(k) Notices.--Notices issued by the department or the
commission to a principal or lobbying firm, or to a political
consultant, in accordance with this chapter, shall be delivered
to the authorized representative, employee or agent.
Section 7. Section 13A09(a)(1.1), (2)(ii) and (5), (b)(2)
and (3), (c)(1) introductory paragraph, (2) and (3), (d), (e)
introductory paragraph, (f) and (g)(2) of Title 65 are amended
to read:
ยง 13A09. Penalties.
(a) Notice of alleged noncompliance.--
* * *
(1.1) In the case of a principal [or], lobbying firm or
political consultant, the notice shall be delivered to the
authorized representative, employee or agent.
(2) The notice shall state:
* * *
(ii) subject to subsection (f), the administrative
and criminal penalties for:
(A) failure to register;
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(B) failure to file; or
(C) filing a report which contains a false
statement or which is incomplete.
* * *
(5) If the person does not request a hearing in
accordance with the notice, the alleged noncompliance shall
be deemed to constitute noncompliance with this chapter, and
subject to subsection (f), the commission shall impose a
penalty in accordance with subsection (b)(3) or (4).
(b) Hearing.--
* * *
(2) [If] Subject to subsection (f), if the commission
finds that failure to register or report was intentional, it
shall refer the matter to the Attorney General [and] or, if
the person is an attorney at law, to the board.
(3) [If] Subject to subsection (f), if the commission
finds that failure to register or report was negligent, it
shall determine the amount of the administrative penalty to
be imposed.
* * *
(c) Negligent failure to register or report.--
(1) [Negligent] Subject to subsection (f), negligent
failure to register or report as required by this chapter is
punishable by an administrative penalty not exceeding the
following:
* * *
(2) After a hearing under subsection (b), the commission
may, upon the majority vote of all of its members, but
subject to subsection (f), levy an administrative penalty.
The total amount of the administrative penalty levied shall
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not be limited by any other provision of law.
(3) The commission shall notify the board of any
lobbyist [or], principal or political consultant who is an
attorney at law [against whom a civil penalty is imposed] and
who has been determined to be in noncompliance.
* * *
(d) Failure to comply after notice.--[A] Subject to
subsection (f), a person that fails to comply with the
requirements of this chapter, after notice of noncompliance and
after a hearing if one is requested, may be prohibited from
lobbying or from providing political consulting services for
economic consideration for up to five years. The prohibition
shall be imposed under subsection (e)(4).
(e) Intentional violations.--Subject to subsection (f):
* * *
(f) Attorneys.--[Nothing in this chapter shall be construed
as restricting the board's authority to discipline an attorney
at law who is acting as a lobbyist or principal.]
Notwithstanding any other provision of this chapter to the
contrary, a lobbyist subject to the Rules of Professional
Conduct promulgated by the Supreme Court shall only be
disciplined for a violation of this chapter as permitted by such
rules and nothing in this chapter shall be construed as
restricting the board's authority to discipline an attorney at
law who is acting as a lobbyist, political consultant or
principal.
(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:
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* * *
(2) The respondent or defendant relied on notice under
section 13A05(b)(3)(iv) (relating to expense reporting).
* * *
Section 8. The provisions of this act are severable. If any
provision of this act or its application to any person or
circumstance is held invalid, the invalidity shall not affect
other provisions or applications of this act which can be given
effect without the invalid provision or application.
Section 9. This act shall take effect as follows:
(1) This section and section 8 of this act shall take
effect immediately.
(2) The amendment or addition of section 13A07(f)(1)(x),
(xi) and (xii) of Title 65 shall take effect January 1, 2023,
or immediately, whichever is later.
(3) The remainder of this act shall take effect in 60
days.
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