PUBLIC OFFICERS (65 PA.C.S.) - LOBBYING DISCLOSURE
                 Act of Nov. 1, 2006, P.L. 1213, No. 134              Cl. 65
                             Session of 2006
                               No. 2006-134

     HB 700

                                  AN ACT

     Amending Title 65 (Public Officers) of the Pennsylvania
        Consolidated Statutes, further providing for ethical
        standards definitions and for lobby regulation and
        disclosure.

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

        Section 1.  Section 1102 of Title 65 of the Pennsylvania
     Consolidated Statutes is amended by adding definitions to read:
      § 1102.  Definitions.
        The following words and phrases when used in this chapter
     shall have, unless the context clearly indicates otherwise, the
     meanings given to them in this section:
        * * *
        "Gift."  [Anything which is received without consideration of
     equal or greater value. The term shall not include a political
     contribution otherwise reported as required by law or a
     commercially reasonable loan made in the ordinary course of
     business.] As defined in section 13A03 (relating to
     definitions).
        * * *
        "Hospitality."  As defined in section 13A03 (relating to
     definitions).
        * * *
        Section 1.1.  Section 1105(b)(7) of Title 65 is amended to
     read:
      § 1105.  Statement of financial interests.
        * * *
        (b)  Required information.--The statement shall include the
     following information for the prior calendar year with regard to
     the person required to file the statement:
            * * *
            (7)  The name and address of the source and the amount of
        any payment for or reimbursement of actual expenses for
        transportation and lodging or hospitality received in
        connection with public office or employment where such actual
        expenses for transportation and lodging or hospitality exceed
        $650 in [the course of a single occurrence] an aggregate
        amount per year. This paragraph shall not apply to expenses
        reimbursed by a governmental body or to expenses reimbursed
        by an organization or association of public officials or
        employees of political subdivisions which the public official
        or employee serves in an official capacity.
            * * *
        Section 2.  Chapter 13 heading and sections 1301, 1302, 1303,
     1304, 1305, 1306, 1307, 1308, 1309, 1310 and 1311 of Title 65
     are amended to read:
                               [CHAPTER 13
                     LOBBY REGULATION AND DISCLOSURE
      § 1301.  Short title of chapter.
        This chapter shall be known and may be cited as the Lobbying
     Disclosure Act.
      § 1302.  Statement of intent and jurisdiction.
        (a)  Intent.--The Constitution of Pennsylvania recognizes the
     principle that all free government is founded upon the authority
     of the people. It further provides that the power to make law in
     this Commonwealth is vested in the General Assembly and the
     power to enforce law is vested in the Executive Department. The
     ability of the people to exercise their fundamental authority
     and to have confidence in the integrity of the process by which
     laws are made and enforced in this Commonwealth demands that the
     identity and the scope of activity of those employed to
     influence the actions of the General Assembly and the Executive
     Department be publicly and regularly disclosed.
        (b)  Jurisdiction.--The authority to regulate persons
     employed to influence the actions of the General Assembly and
     the Executive Department lies within the jurisdiction of those
     branches of government. To insure that the intent of this
     chapter is not evaded and that all such persons are regulated in
     a fair and equitable manner, lobbyists and the practice of
     lobbying shall be subject to this chapter, which shall prevail
     over any other regulation of professional activity when that
     activity constitutes lobbying. This chapter is not intended to
     govern professional activities which do not include lobbying and
     which are properly the subject of regulation by the judicial
     branch of government or by any government agency. Membership in
     a regulated profession shall not excuse a lobbyist from
     compliance with the provisions of this chapter.
      § 1303.  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:
        "Administrative action."  Any of the following:
            (1)  An agency's:
                (i)  proposal, consideration, promulgation or
            rescission of a regulation;
                (ii)  development or modification of a guideline or a
            statement of policy; or
                (iii)  approval or rejection of a regulation.
            (2)  The review, revision, approval or disapproval of a
        regulation under the act of June 25, 1982 (P.L.633, No.181),
        known as the Regulatory Review Act.
            (3)  The Governor's approval or veto of legislation.
            (4)  The nomination or appointment of an individual as an
        officer or employee of the Commonwealth.
            (5)  The proposal, consideration, promulgation or
        rescission of an executive order.
        "Affiliated political action committee."  A political action
     committee as defined in section 1621(l) of the act of June 3,
     1937 (P.L.1333, No.320), known as the Pennsylvania Election
     Code, which has a chairman, a treasurer or another officer who
     is a principal, an employee of a principal, a lobbyist or an
     employee of a lobbyist, provided if an employee of a registrant
     serves as the officer of a political action committee in what is
     clearly a personal capacity and the goals and mission of that
     political action committee clearly have no relationship to the
     goals and mission of the registrant, such political action
     committee shall not be considered an affiliated political action
     committee for the purposes of this definition.
        "Agency."  A State agency, board, commission, authority or
     department.
        "Commission."  The State Ethics Commission.
        "Compensation."  Anything of value, including benefits,
     received or to be received from a principal by one acting as a
     lobbyist.
        "Direct communication."  An effort, whether written, oral or
     by any other medium, made by a lobbyist or principal, directed
     to a State official or employee, the purpose or foreseeable
     effect of which is to influence legislative action or
     administrative action.
        "Economic consideration."  Anything of value offered or
     received.
        "Fund."  The Lobbying Disclosure Fund established in section
     1310(b) (relating to filing fees; fund established;
     regulations).
        "Gift."  As defined in section 1102 (relating to
     definitions).
        "Immediate family."  An individual's spouse, an individual's
     child and an individual's parent, brother, sister or like
     relative-in-law.
        "Indirect communication."  An effort, whether written, oral
     or by any other medium, to encourage others, including the
     general public, to take action, the purpose or foreseeable
     effect of which is to directly influence legislative action or
     administrative action. The term includes letter-writing
     campaigns, mailings, telephone banks, print and electronic media
     advertising, billboards, publications and educational campaigns
     on public issues. The term does not include regularly published
     periodic newsletters primarily designed for and distributed to
     members of a bona fide association or charitable or fraternal
     nonprofit corporation.
        "Legislation."  Bills, resolutions, amendments and
     nominations pending or proposed in either the Senate or the
     House of Representatives. The term includes any other matter
     which may become the subject of action by either chamber of the
     General Assembly.
        "Legislative action."  An action taken by a State official or
     employee involving the preparation, research, drafting,
     introduction, consideration, modification, amendment, approval,
     passage, enactment, tabling, postponement, defeat or rejection
     of legislation; legislative motions; overriding or sustaining a
     veto by the Governor; or confirmation of appointments by the
     Governor or of appointments to public boards or commissions by a
     member of the General Assembly.
        "Lobbying."  An effort to influence legislative action or
     administrative action. The term includes:
            (1)  providing any gift, entertainment, meal,
        transportation or lodging to a State official or employee for
        the purpose of advancing the interest of the lobbyist or
        principal; and
            (2)  direct or indirect communication.
        "Lobbyist."  Any individual, firm, association, corporation,
     partnership, business trust or business entity that engages in
     lobbying on behalf of a principal for economic consideration.
     The term includes an attorney who engages in lobbying.
        "Principal."  Any individual, firm, association, corporation,
     partnership, business trust or business entity:
            (1)  on whose behalf a lobbyist influences or attempts to
        influence an administrative action or a legislative action;
        or
            (2)  that engages in lobbying on the principal's own
        behalf.
        "Registrant."  A registered lobbyist or a registered
     principal.
        "Regulation."  Any rule, regulation or order in the nature of
     a rule or regulation, including formal and informal opinions of
     the Attorney General, of general application and future effect,
     promulgated by an agency under statutory authority in the
     administration of a statute administered by or relating to the
     agency, or prescribing the practice or procedure before the
     agency.
        "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.
      § 1304.  Registration.
        (a)  General rule.--Unless excluded under section 1306
     (relating to exemption from registration and reporting), a
     lobbyist or a principal must register with the commission within
     ten days of acting in any capacity as a lobbyist or principal.
     Registration shall be biennial and be coincident with the terms
     of the members of the House of Representatives.
        (b)  Principals.--
            (1)  A principal required to register shall file the
        following information with the commission:
                (i)  Name.
                (ii)  Permanent address.
                (iii)  Daytime telephone number.
                (iv)  Name and nature of business.
                (v)  Name, registration number and acronyms of
            affiliated political action committees.
                (vi)  Name and permanent business address of each
            individual who will for economic consideration engage in
            lobbying on the principal's behalf.
            (2)  If an organization or association is a principal,
        the number of dues-paying members in the past calendar year
        shall also be disclosed.
        (c)  Lobbyist.--
            (1)  A lobbyist who is required to register shall file
        the following information with the commission:
                (i)  Name.
                (ii)  Permanent business address.
                (iii)  Daytime telephone number.
                (iv)  A recent picture of the lobbyist.
                (v)  Name, permanent business address and daytime
            telephone number of the principal the lobbyist
            represents.
                (vi)  Name, registration number and acronyms of
            affiliated political action committees.
            (2)  Each lobbyist shall file a separate registration
        statement for each principal he or she represents.
        (d)  Amendments.--
            (1)  When there is a change of information required for
        the registration statement under subsection (b)(1) or (c), an
        amended statement shall be filed with the commission within
        14 days after the change occurs.
            (2)  When there is a change in information required for
        the registration statement under subsection (b)(2), an
        amended statement shall be filed with the commission within
        14 days of the end of the year in which the change occurs.
        (e)  Termination.--A lobbyist or a principal may terminate
     registration by filing notice with the commission. Within 30
     days of filing the notice, the lobbyist or principal shall file
     a termination report, which shall include all information
     required by section 1305 (relating to reporting) through the
     final day of lobbying activity. After a reasonable review of the
     termination report but not later than 90 days after receipt of
     the notice, the commission shall issue to the lobbyist or
     principal a letter stating that the registrant has terminated
     registration. The filing of notice or a termination report shall
     not affect the commission's authority to conduct investigations
     and hearings pursuant to section 1308(h) (relating to
     administration and enforcement). No lobbying may occur after the
     filing of notice unless the lobbying is pursuant to a separate
     registration statement which is filed with the commission and
     which, at the time of the lobbying, has not been terminated.
      § 1305.  Reporting.
        (a)  General rule.--A lobbyist as required by subsection
     (b)(6) or a registered principal shall, under oath or
     affirmation, file quarterly expense reports with the commission.
        (b)  Content.--
            (1)  Reports must list the names of all lobbyists by whom
        the lobbying is conducted and the general subject matter or
        issue being lobbied.
            (2)  Expense reports must contain the following
        categories:
                (i)  A single aggregate good faith estimate of the
            total amount spent for personnel and office expenses
            related to lobbying. This subparagraph includes salaries
            and other forms of compensation, benefits, vehicle
            allowances, bonuses and reimbursable expenses for those
            involved in lobbying. If compensation is to be reported
            by or for an individual or entity whose lobbying is
            incidental to regular employment, it shall be sufficient
            to report a good faith prorated estimate based on the
            value of the time devoted to lobbying. Reportable
            personnel costs include costs for lobbying staff,
            research and monitoring staff, consultants, lawyers,
            lobbyists, publications and public relations staff,
            technical staff and clerical and administrative support
            staff who engage in lobbying but are exempt from
            reporting under section 1306(6) (relating to exemption
            from registration and reporting). This subparagraph
            includes costs for offices, equipment and supplies
            utilized for lobbying.
                (ii)  A single aggregate good faith estimate of the
            total amount spent for direct communication.
                (iii)  The total costs for gifts, entertainment,
            meals, transportation, lodging and receptions given to or
            provided to State officials or employees or their
            immediate families.
                (iv)  A single aggregate good faith estimate of the
            total amount spent for indirect communication.
            (3)  In addition to reporting the totals required under
        this subsection, the expense report must identify, by name,
        position and each occurrence, a State official or employee
        who receives from a principal or lobbyist anything of value
        which must be included in the statement under section
        1105(b)(6) or (7) (relating to statement of financial
        interests) as implemented by section 1105(d).
                (i)  For purposes of this chapter, the amount
            referred to in section 1105(b)(7) shall be considered an
            aggregate amount per year.
                (ii)  Written notice must be given to each public
            official or employee of inclusion in the expense report
            within seven days of the report's submission to the
            commission. Notice under this subparagraph shall include
            the information which will enable the public official or
            employee to comply with section 1105(b)(6) and (7). For
            purposes of this chapter and Chapter 11 (relating to
            ethics standards and financial disclosure), section
            1105(b)(6) and (7) shall constitute mutually exclusive
            categories.
                (iii)  Regulations shall be promulgated under section
            1310(c) (relating to filing fees; fund established;
            regulations) to define mutually exclusive categories
            under section 1105(b)(6) and (7) and to determine whether
            a thing of value is subject to disclosure under section
            1105(b)(6) or (7).
            (4)  A lobbyist must sign the reports submitted by each
        principal represented to attest to the validity and accuracy
        to the best of the lobbyist's knowledge. A lobbyist may
        attach a statement to the report of any principal, describing
        the limits of the lobbyist's knowledge concerning the
        expenditures contained in the report.
            (5)  The expense report shall also include the name,
        permanent business address and daytime telephone number of
        any individual, firm, association, corporation, partnership,
        business trust or business entity which contributed more than
        10% of the total resources received by the principal during
        the reporting period.
            (6)  A lobbyist shall submit a separate report if, during
        the reporting period, the lobbyist engaged in lobbying which
        was not contained in the reports filed by the principal or
        principals represented by the lobbyist. A separate lobbyist
        report shall contain the identity of the principal for whom
        such lobbying was performed and shall contain all information
        required under paragraphs (2) and (3).
            (7)  A registered principal or registered lobbyist that
        attempts to influence an agency's preparing, bidding,
        entering into or approving a contract shall ensure that the
        related expenses are included under paragraph (2).
        (c)  Records retention.--A registrant shall retain all
     documents reasonably necessary to substantiate the reports to be
     made under this section for four years from the date of filing
     the subject report. Upon request by the Office of the Attorney
     General or the commission, these materials shall be made
     available for inspection within a reasonable period of time.
        (d)  Thresholds for reporting.--An expense report shall be
     filed when total expenses for lobbying exceed $500 for a
     registered principal or a registered lobbyist in a reporting
     period. In a reporting period in which total expenses are $500
     or less, a statement to that effect shall be filed.
        (e)  Voluntary disclosure.--Nothing in this section shall
     prevent a principal or lobbyist from disclosing expenses in
     greater detail than required.
      § 1306.  Exemption from registration and reporting.
        The following individuals and activities shall be exempt from
     registration under section 1304 (relating to registration) and
     reporting under section 1305 (relating to reporting):
            (1)  An individual who limits lobbying activities to
        preparing testimony and testifying before a committee of the
        legislature or participating in an administrative proceeding
        of an agency.
            (2)  An individual who is an employee of an entity
        engaged in the business of publishing, broadcasting or
        televising while engaged in the gathering and dissemination
        of news and comment thereon to the general public in the
        ordinary course of business.
            (3)  Any of the following:
                (i)  An individual who does not receive compensation,
            other than traveling expenses, for lobbying.
                (ii)  An individual whose compensation for lobbying,
            from all principals represented, does not exceed $2,500
            in the aggregate during any reporting period.
                (iii)  An individual who engages in lobbying on
            behalf of the individual's employer and where lobbying
            activity represents less than the equivalent of $2,500 of
            the employee's time during any reporting period, based on
            an hourly proration of the employee's compensation.
                (iv)  A principal whose total expenses for lobbying
            purposes do not exceed $2,500 during any reporting
            period.
            (4)  Any of the following:
                (i)  An elected State officer acting in an official
            capacity.
                (ii)  A State executive officer appointed by the
            Governor acting in an official capacity.
                (iii)  An elected or appointed official or employee
            of a political subdivision acting in an official
            capacity.
                (iv)  An employee of the Commonwealth or independent
            agency of the Commonwealth acting in an official
            capacity.
            (5)  An individual representing a bona fide church of
        which the individual is a member and the purpose of the
        lobbying is solely for the purpose of protecting the
        constitutional right to the free exercise of religion.
            (6)  An employee, who is not a registered lobbyist, of a
        corporation which:
                (i)  is registered as a principal under section 1304;
                (ii)  has one or more registered lobbyists; and
                (iii)  includes in its reports under section 1305 all
            of the employee's expenses related to lobbying.
      § 1307.  Prohibited activities.
        (a)  Contingent compensation.--
            (1)  No one may compensate or incur an obligation to
        compensate any lobbyist, principal or individual to engage in
        lobbying for compensation contingent in whole or in part upon
        any of the following:
                (i)  Passage or defeat, or approval or veto, of
            legislation.
                (ii)  Occurrence or nonoccurrence of an
            administrative action.
            (2)  No lobbyist, principal or individual may engage or
        agree to engage in lobbying for compensation contingent in
        whole or in part upon any of the following:
                (i)  Passage or defeat, or approval or veto, of
            legislation.
                (ii)  Occurrence or nonoccurrence of an
            administrative action.
        (b)  Political committees.--A lobbyist may not serve as a
     treasurer or another officer for a candidate's political
     committee or a candidate's political action committee.
        (c)  Fee restrictions.--A lobbyist may not charge a fee or
     receive compensation or economic consideration based upon an
     understanding, either written or oral, that any part of the fee,
     compensation or economic consideration will be converted into a
     contribution to a candidate for public office or a political
     committee.
        (d)  Falsification.--No lobbyist or principal may, for the
     purpose of influencing legislative action or administrative
     action, transmit, utter or publish to any State official or
     employee any communication, knowing that such communication or
     any signature on the communication is false, forged, counterfeit
     or fictitious.
      § 1308.  Administration and enforcement.
        (a)  Criminal enforcement.--If the commission believes an
     intentional violation of this chapter has been committed, it
     shall refer all relevant documents and other information to the
     Office of Attorney General.
        (b)  Attorney General.--In addition to the authority
     conferred upon the Attorney General under the act of October 15,
     1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act,
     the Attorney General has the authority to investigate and
     prosecute a violation of this chapter.
        (c)  Advice and opinions.--The commission shall provide
     advice and opinions in accordance with procedures set forth in
     section 1107 (relating to powers and duties of commission) to a
     lobbyist, principal or State official or employee who has a
     question regarding compliance with this chapter. A principal, a
     lobbyist or an individual who 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.
        (d)  Public inspection and copying.--The commission shall
     make completed registration statements, expense reports,
     termination notices and termination reports which have been
     filed with the commission available for public inspection and
     provide copies of these documents at a price which shall not
     exceed the actual cost of copying. Documents that are maintained
     and reproducible in an electronic format shall be provided in
     that format upon request.
        (e)  Annual reporting.--The commission shall prepare and
     publish an annual report on lobbying activities in this
     Commonwealth. The commission shall also annually publish a
     listing of principals, identifying affiliated political action
     committees and lobbyists, and a listing of lobbyists,
     identifying affiliated political action committees and
     principals.
        (f)  Retention of records.--Completed registration
     statements, expense reports, termination notices and termination
     reports shall remain on file with the commission for a four-year
     period.
        (g)  Audits.--The commission shall initiate, by lottery,
     random annual audits of the registration statements and
     disclosure reports in sufficient number to ensure compliance
     with this chapter. The audit report and findings shall be
     confidential; however, the commission shall include the relevant
     portion of an audit as part of its findings of fact in a
     commission order which results from an investigation arising out
     of an audit.
        (h)  Investigation and hearings.--The commission, through its
     executive director, may initiate an investigation and hold a
     hearing concerning negligent conduct by a lobbyist or principal
     in accordance with sections 1107 and 1108 (relating to
     investigations by commission).
        (i)  Directory.--On or before May 1 of each odd-numbered
     year, the commission shall produce and distribute a directory of
     all registered lobbyists, including photographs. Copies of this
     directory shall be made available to the public at a price not
     to exceed the actual cost of production. All revenue received by
     the commission from the sales of this directory shall be
     deposited into the fund.
        (j)  Computer file.--The Legislative Data Processing
     Committee shall maintain updated registration statements,
     expense reports, termination notices and termination reports.
        (k)  Cost-of-living adjustment.--On a biennial basis
     commencing in January 2002, the commission shall review the
     threshold for reporting under section 1305(d) (relating to
     reporting) and the threshold for exemption under section
     1306(3)(ii) through (iv) (relating to exemption from
     registration and reporting) and may increase these amounts to
     rates deemed reasonable for assuring appropriate disclosure. The
     commission shall publish any such adjusted threshold amounts in
     the Pennsylvania Bulletin by June 1, 2002, and every two years
     thereafter as necessary.
      § 1309.  Penalties.
        (a)  Notice of noncompliance.--The commission shall issue a
     notice of noncompliance to any lobbyist, principal or individual
     that has failed to register or report as required by this
     chapter. The notice shall state the nature of the alleged
     noncompliance and the civil and criminal penalties for failure
     to register, failure to file or filing a report containing a
     false statement. The notice shall also advise of the right to a
     hearing before the commission and the time and manner in which
     to request a hearing.
        (b)  Hearing.--If a hearing is requested, the commission
     shall determine at the hearing whether the recipient of the
     notice is required to register or report under this chapter,
     whether the failure to register or report was negligent and, if
     the failure was negligent, the amount of the civil penalty to be
     imposed. If the commission finds that the failure to register or
     report was intentional, it shall refer the matter to the
     Attorney General for investigation and prosecution. Hearings
     under this subsection shall be conducted by the commission in
     accordance with sections 1107(14) (relating to powers and duties
     of commission) and 1108(e) (relating to investigations by
     commission).
        (c)  Negligent failure to register or report.--Negligent
     failure to register or report as required by this chapter is
     punishable by a civil penalty not exceeding $50 for each late
     day. After a hearing under subsection (b), in the case of
     negligent failure to register or report, the commission may,
     upon the majority vote of its members, levy a civil penalty as
     provided for in this subsection. The total amount of the civil
     penalty levied shall not be limited by any other provision of
     law. The commission shall have standing to apply to Commonwealth
     Court to seek enforcement of an order imposing a civil penalty
     under this section.
        (d)  Failure to comply after notice.--After notice of
     noncompliance and after a hearing, if one is requested, a
     lobbyist or principal who fails to comply with the requirements
     of this chapter may be prohibited from lobbying for up to five
     years. The prohibition shall be imposed as provided by
     subsection (e)(4).
        (e)  Intentional violations.--
            (1)  Any lobbyist, principal or individual that
        intentionally fails to register or report as required by this
        chapter commits a misdemeanor of the second degree.
            (2)  A registrant that files a report under this chapter
        with knowledge that the report contains a false statement
        commits a misdemeanor of the second degree.
            (3)  Except as set forth in paragraph (1) or (2), any
        lobbyist, principal or individual that intentionally violates
        this chapter commits a misdemeanor of the third degree.
            (4)  In addition to the criminal penalties imposed by
        this subsection, the commission may prohibit a lobbyist or
        principal from lobbying for up to five years for doing an act
        which constitutes an offense under this subsection. No
        criminal prosecution or conviction shall be required for the
        imposition of the prohibition authorized by this paragraph.
        The prohibition under this paragraph shall not be imposed
        unless the defendant has been afforded the opportunity for a
        hearing, which shall be conducted by the commission in
        accordance with sections 1107(14) and 1108(e).
      § 1310.  Filing fees; fund established; regulations.
        (a)  Filing fees.--A principal or lobbyist required to be
     registered under this chapter shall pay a biennial filing fee of
     $100 to the commission.
        (b)  Fund established.--All money received from filing fees
     under subsection (a) shall be deposited in a restricted receipts
     account to be known as the Lobbying Disclosure Fund. The money
     deposited in the fund is hereby appropriated to the commission
     as a continuing appropriation for the exclusive purpose of
     carrying out the provisions of this chapter.
        (c)  Regulations.--A committee comprised of the Secretary of
     the Senate, the Chief Clerk of the House of Representatives, the
     chairman of the State Ethics Commission, the Attorney General,
     the Secretary of the Commonwealth, the Auditor General and the
     General Counsel, or their designees, shall have continuing
     authority to promulgate regulations necessary to carry out this
     chapter. The chairman of the commission shall be designated as
     the chairman of the committee. The initial proposed regulations
     shall be submitted within 180 days of the effective date of this
     section to the Independent Regulatory Review Commission under
     section 5 of the act of June 25, 1982 (P.L.633, No.181), known
     as the Regulatory Review Act. Any meeting at which the committee
     plans to approve proposed regulations shall be held in
     accordance with Chapter 7 (relating to open meetings). The
     committee shall also prepare and publish a manual setting forth
     guidelines for accounting and reporting. The regulations and
     manual shall be drafted to accommodate the use of computerized
     recordkeeping, electronic filing of the reports provided for
     under this chapter and retention of registration statements and
     reports provided for under this chapter by electronic means. The
     Department of State shall provide sufficient staff and other
     administrative support to assist the committee.
      § 1311.  Severability.
        (a)  General rule.--Except as provided in subsection (b):
            (1)  The provisions of this chapter are severable.
            (2)  If any provision of this chapter or its application
        to any person or circumstance is held invalid, the invalidity
        shall not affect other provisions or applications of this
        chapter which can be given effect without the invalid
        provision or application.
        (b)  Practice of law.--If any provision of this chapter or
     its application to any person or circumstance is held invalid on
     the basis of improper regulation of the practice of law, the
     remaining provisions or applications of this chapter are void.]
        Section 3.  Title 65 is amended by adding a chapter to read:
                               CHAPTER 13A
                           LOBBYING DISCLOSURE
     Sec.
     13A01.  Scope of chapter.
     13A02.  Statement of intent and jurisdiction.
     13A03.  Definitions.
     13A04.  Registration.
     13A05.  Reporting.
     13A06.  Exemption from registration and reporting.
     13A07.  Prohibited activities.
     13A08.  Administration.
     13A09.  Penalties.
     13A10.  Registration fees; fund established; system;
            regulations.
     13A11.  Nonapplicability.
      § 13A01.  Scope of chapter.
        This chapter relates to lobbying disclosure.
      § 13A02.  Statement of intent and jurisdiction.
        (a)  Intent.--The Constitution of Pennsylvania recognizes
     that all free governments are founded upon the authority of the
     people. It further provides that the power to make law in this
     Commonwealth is vested in the General Assembly, and the power to
     enforce law is vested in the Executive Department. The
     Constitution also guarantees the people the right to petition
     those invested with the powers of government for redress of
     grievances. The ability of the people to exercise their
     fundamental authority and to have confidence in the integrity of
     the processes by which laws are made and enforced in this
     Commonwealth demands that the identity and scope of activity of
     those who are paid to influence the actions of the General
     Assembly and the Executive Department be publicly and regularly
     disclosed.
        (b)  Jurisdiction.--The authority to regulate persons
     employed to influence the actions of the General Assembly and
     the Executive Department lies within the jurisdiction of those
     branches of government. To ensure that the intent of this
     chapter is not evaded and that all such persons are regulated in
     a fair and equitable manner, lobbyists and the practice of
     lobbying shall be subject to this chapter, which shall prevail
     over any other regulation of professional activity when that
     activity constitutes lobbying. This chapter is not intended to
     govern professional activities which do not include lobbying and
     are properly the subject of regulation by the judicial branch of
     government or by any government agency.
        (c)  Regulated profession.--Membership in a regulated
     profession shall not excuse a lobbyist from compliance with this
     chapter.
        (d)  Administrative agency law.--Proceedings of the
     commission are subject to 2 Pa.C.S. Chs. 5 Subch. A (relating to
     practice and procedure of Commonwealth agencies) and 7 Subch. A
     (relating to judicial review of Commonwealth agency action).
      § 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:
        "Administrative action."  Any of the following:
            (1)  An agency's:
                (i)  proposal, consideration, promulgation or
            rescission of a regulation;
                (ii)  development or modification of a statement of
            policy;
                (iii)  approval or rejection of a regulation; or
                (iv)  procurement of supplies, services and
            construction under 62 Pa.C.S. (relating to procurement).
            (2)  The review, revision, approval or disapproval of a
        regulation under the act of June 25, 1982 (P.L.633, No.181),
        known as the Regulatory Review Act.
            (3)  The Governor's approval or veto of legislation.
            (4)  The nomination or appointment of an individual as an
        officer or employee of the Commonwealth.
            (5)  The proposal, consideration, promulgation or
        rescission of an executive order.
        "Affiliated political action committee."  As follows:
            (1)  Except as set forth in paragraph (2), a "political
        action committee" as defined in section 1621(l) of the act of
        June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
        Election Code, which has an officer who:
                (i)  must be included in a registration statement
            under section 1624(b)(2) and (3) of the Pennsylvania
            Election Code; and
                (ii)  is:
                    (A)  a principal;
                    (B)  an officer or an employee of a principal;
                    (C)  a lobbyist; or
                    (D)  an employee of a lobbyist.
            (2)  If an employee of a registrant serves as the officer
        of a political action committee in what is clearly a personal
        capacity and the goals and mission of that political action
        committee clearly have no relationship to the goals and
        mission of the registrant, that political action committee
        shall not be considered an affiliated political action
        committee for the purposes of this definition.
        "Agency."  An agency, board, commission, authority or
     department of the executive department of the Commonwealth.
        "Attorney at law."  An individual admitted to practice law by
     a court of record of this Commonwealth.
        "Bidder."  As defined in 62 Pa.C.S. § 103 (relating to
     definitions).
        "Board."  The Disciplinary Board of the Supreme Court of
     Pennsylvania.
        "Commission."  The State Ethics Commission.
        "Compensation."  Anything of value, including benefits,
     received or to be received from a principal by one acting as a
     lobbyist.
        "Contractor."  As defined in 62 Pa.C.S. § 103 (relating to
     definitions).
        "Department."  The Department of State of the Commonwealth.
        "Direct communication."  An effort, whether written, oral or
     by any other medium, made by a lobbyist or principal, directed
     to a State official or employee, the purpose or foreseeable
     effect of which is to influence legislative action or
     administrative action. The term may include personnel expenses
     and office expenses.
        "Economic consideration."  Anything of value offered or
     received. The term includes compensation and reimbursement for
     expenses.
        "Fund."  The Lobbying Disclosure Fund established in section
     13A10 (b) (relating to registration fees; fund established;
     system; regulations).
        "Gift."  Anything which is received without consideration of
     equal or greater value. The term shall not include a political
     contribution otherwise reportable as required by law or a
     commercially reasonable loan made in the ordinary course of
     business. The term shall not include hospitality, transportation
     or lodging.
        "Hospitality."  Includes all of the following:
            (1)  Meals.
            (2)  Beverages.
            (3)  Recreation and entertainment.
     The term shall not include gifts, transportation or lodging.
        "Immediate family."  An individual's spouse, child, parent,
     brother, sister and like relative-in-law.
        "Indirect communication."  An effort, whether written, oral
     or by any other medium, to encourage others, including the
     general public, to take action, the purpose or foreseeable
     effect of which is to directly influence legislative action or
     administrative action.
            (1)  The term includes letter-writing campaigns,
        mailings, telephone banks, print and electronic media
        advertising, billboards, publications and educational
        campaigns on public issues.
            (2)  The term does not include regularly published
        periodic newsletters primarily designed for and distributed
        to members of a bona fide association or charitable or
        fraternal nonprofit corporation.
            (3)  The term may include personnel expenses and office
        expenses.
        "Legislation."  Bills, resolutions, amendments and
     nominations pending or proposed in either the Senate or the
     House of Representatives. The term includes any other matter
     which may become the subject of action by either chamber of the
     General Assembly.
        "Legislative action."  An action taken by a State official or
     employee involving the preparation, research, drafting,
     introduction, consideration, modification, amendment, approval,
     passage, enactment, tabling, postponement, defeat or rejection
     of:
            (1)  legislation;
            (2)  legislative motions;
            (3)  a veto by the Governor; or
            (4)  confirmation of appointments by the Governor or
        appointments to public boards or commissions by a member of
        the General Assembly.
        "Lobbying."  An effort to influence legislative action or
     administrative action in this Commonwealth. The term includes:
            (1)  direct or indirect communication;
            (2)  office expenses; and
            (3)  providing any gift, hospitality, transportation or
        lodging to a State official or employee for the purpose of
        advancing the interest of the lobbyist or principal.
        "Lobbying firm."  An entity that engages in lobbying for
     economic consideration on behalf of a principal other than the
     entity itself.
        "Lobbyist."  Any individual, association, corporation,
     partnership, business trust or other entity that engages in
     lobbying on behalf of a principal for economic consideration.
     The term includes an attorney at law while engaged in lobbying.
        "Offeror."  As defined in 62 Pa.C.S. § 103 (relating to
     definitions).
        "Office expense."  An expenditure for an office, equipment or
     supplies, utilized for lobbying.
        "Personnel expense."  An expenditure for salaries or other
     forms of compensation, benefits, vehicle allowances, bonuses and
     reimbursable expenses paid to lobbyists, lobbying staff,
     research and monitoring staff, consultants, publications and
     public relations staff, technical staff, clerical and
     administrative support staff and includes individuals who engage
     in lobbying but are exempt from reporting under section 13A06
     (relating to exemption from registration and reporting). For an
     individual for whom lobbying is incidental to regular
     employment, the term means a good faith prorated estimate based
     on the value of the time devoted to lobbying.
        "Principal."  An individual, association, corporation,
     partnership, business trust or other entity:
            (1)  on whose behalf a lobbying firm or lobbyist engages
        in lobbying; or
            (2)  that engages in lobbying on the principal's own
        behalf.
        "Registrant."  A registered lobbyist, registered lobbying
     firm or registered principal.
        "Regulation."  Any rule, regulation or order in the nature of
     a rule or regulation, including formal and informal opinions of
     the Attorney General, of general application and future effect,
     promulgated by an agency under statutory authority in the
     administration of a statute administered by or relating to the
     agency or prescribing the practice or procedure before the
     agency.
        "Reporting period."  Any of the following periods:
            (1)  January 1 through March 31.
            (2)  April 1 through June 30.
            (3)  July 1 through September 30.
            (4)  October 1 through December 31.
        "State budget process."  The consideration and passage of
     acts relating to expenditures of funds and the generation of
     revenues by the General Assembly.
        "Statement of policy."  The term includes a guideline.
        "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.
        "Vendor."  Any offeror, bidder or contractor that, for
     economic consideration, sells or provides a service or supply or
     engages in construction. The term does not include an attorney
     at law, a lobbyist or a lobbying firm.
      § 13A04.  Registration.
        (a)  General rule.--Unless excluded under section 13A06
     (relating to exemption from registration and reporting), a
     lobbyist, lobbying firm or a principal must register with the
     department within ten days of acting in any capacity as a
     lobbyist, lobbying firm or principal. 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:
                (i)  Name.
                (ii)  Permanent address.
                (iii)  Daytime telephone number.
                (iv)  E-mail address, if available.
                (v)  Name and nature of business.
                (vi)  Name, registration number and acronym of any
            affiliated political action committees.
                (vii)  Name and permanent business address of each
            individual who will for economic consideration engage in
            lobbying on behalf of the principal or lobbying firm.
                (viii)  Registration number when available.
            (2)  A lobbying firm shall include in its statement under
            paragraph (1) the following information for each
            principal it represents:
                (i)  Name.
                (ii)  Permanent business address.
                (iii)  Telephone number.
                (iv)  Registration number when available.
            (3)  A principal that is an association or organization
        shall include in its statement under paragraph (1) the number
        of dues-paying members of the association or organization in
        the most recently completed calendar year.
        (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:
            (1)  Name.
            (2)  Permanent business address.
            (3)  Daytime telephone number.
            (4)  E-mail address, if available.
            (5)  A recent photograph of the lobbyist.
            (6)  Name, permanent business address, daytime telephone
        number and registration number when available of each
        principal for whom the lobbyist will engage in lobbying.
            (7)  Name and registration number when available of any
        lobbying firm with which the lobbyist has a relationship
        involving economic consideration.
            (8)  Name, registration number and acronym of any
        affiliated political action committees.
            (9)  Name, registration number and acronym of any
        candidate political committee of which the lobbyist is an
        officer who must be included in a registration statement
        under section 1624(b)(2) and (3) of the act of June 3, 1937
        (P.L.1333, No.320), known as the Pennsylvania Election Code.
        (d)  Amendments.--
            (1)  If there is a change of information required for the
        registration statement under subsection (b)(1) or (2) or (c),
        an amended registration statement shall be filed with the
        department within 14 days after the change occurs.
            (2)  When there is a change in information required for
        the registration statement under subsection (b)(3), an
        amended registration statement shall be filed with the
        department within 14 days of the end of the year in which the
        change occurs.
        (e)  Termination.--
            (1)  A lobbyist, lobbying firm or principal may terminate
        registration by filing notice of termination with the
        department.
            (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 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).
            (3)  No lobbying may occur after the filing of notice of
        termination unless the lobbying is pursuant to a separate
        registration statement which is filed with the department and
        which, at the time of the lobbying, has not been terminated.
            (4)  Nothing in this subsection shall be construed to
        exempt a lobbyist, lobbying firm or principal from any of the
        requirements in section 13A05 (relating to reporting).
      § 13A05.  Reporting.
        (a)  General rule.--A registered principal shall, under oath
     or affirmation, file quarterly expense reports with the
     department no later than 30 days after the last day of the
     quarter.
        (b)  Content.--
            (1)  Each expense report must list the names and
        registration numbers when available of all lobbyists by whom
        lobbying is conducted on behalf of the principal and the
        general subject matter or issue being lobbied.
            (2)  Each expense report shall include the total costs of
        all lobbying for the period. The total shall include all
        office expenses, personnel expenses, expenditures related to
        gifts, hospitality, transportation and lodging to State
        officials or employees, and any other lobbying costs. The
        total amount reported under this paragraph shall be allocated
        in its entirety among the following categories:
                (i)  The costs for gifts, hospitality, transportation
            and lodging given to or provided to State officials or
            employees or their immediate families.
                (ii)  The costs for direct communication.
                (iii)  The costs for indirect communication.
                (iv)  Expenses required to be reported under this
            subsection shall be allocated to one of the three
            categories listed under this section and shall not be
            included in more than one category.
            (2.1)  For purposes of filing an expense report under
        this subsection, a registrant may use any reasonable methods
        of estimation and allocation.
            (3)  The following apply:
                (i)  In addition to reporting the totals required
            under this subsection, the expense report must identify,
            by name, position and each occurrence, a State official
            or employee who receives from a principal or lobbyist
            anything of value which must be included in the statement
            under section 1105(b)(6) or (7) (relating to statement of
            financial interests) as implemented by section 1105(d).
                (ii)  For purposes of this chapter, the amount
            referred to in section 1105(b)(7) shall be considered an
            aggregate amount per year.
                (iii)  For purposes of this chapter, the amount
            referred to in section 1105(b)(7) shall not include the
            cost of a reception which the State official or employee
            attends in connection with public office or employment.
                (iv)  Written notice must be given to each State
            official or employee who is listed in an expense report
            under this paragraph at least seven days prior to the
            report's submission to the department. Notice under this
            subparagraph shall include the information which will
            enable the State official or employee to comply with
            section 1105(b)(6) and (7). For purposes of this chapter
            and Chapter 11 (relating to ethics standards and
            financial disclosure), section 1105(b)(6) and (7) shall
            constitute mutually exclusive categories. For each
            category enumerated in paragraph (2)(i), each notice
            shall include both the amount incurred during the quarter
            and the cumulative amount incurred from January 1 through
            the end of the applicable quarter.
                (v)  This paragraph shall not apply to anything of
            value received from immediate family when the
            circumstances make it clear that motivation for the
            action was the personal or family relationship.
            (4)  A lobbying firm or a lobbyist not associated with a
        lobbying firm shall sign the reports submitted by each
        principal for whom the lobbying firm or lobbyist is
        registered to attest to the validity and accuracy to the best
        of the attestor's knowledge. A lobbying firm or lobbyist may
        attach a statement to the report of a principal, describing
        the limits of the knowledge of the lobbying firm or lobbyist
        concerning the information contained in the expense report.
            (5)  The expense report shall also include the name,
        permanent business address and daytime telephone number of
        any individual, association, corporation, partnership,
        business trust or other business entity which contributed
        more than 10% of the total resources received by the
        principal during the reporting period.
            (6)  A lobbying firm or a lobbyist not associated with a
        lobbying firm shall submit an expense report if during the
        reporting period the lobbying firm or lobbyist engaged in
        lobbying which was not contained in any expense report filed
        by a principal or principals represented.
            (7)  A registered principal that attempts or that retains
        a lobbying firm or lobbyist to attempt to influence an
        agency's preparing, bidding, entering into or approving a
        contract shall ensure that the related expenses are included
        under paragraph (2).
            (8)  A lobbying firm or a lobbyist not associated with a
        lobbying firm shall submit a report if the lobbying firm or
        lobbyist engaged in lobbying on behalf of any entity that is
        exempt under section 13A06(7), (8), (9) or (10) (relating to
        exemption from registration and reporting).
        (c)  Records retention.--A registrant shall retain all
     documents reasonably necessary to substantiate the reports to be
     made under this section for four years from the date of filing
     the subject report. Upon request by the Office of Attorney
     General, the board, the commission or the department, these
     materials shall be made available for inspection within a
     reasonable period of time.
        (d)  Thresholds for reporting.--An expense report required
     under this section shall be filed when total expenses for
     lobbying exceed $2,500 for a registered principal in a reporting
     period. In a reporting period in which total expenses are $2,500
     or less, a statement to that effect shall be filed.
        (e)  Indirect communication disclosure.--Whenever any person
     makes an expenditure for indirect communication under this
     chapter, for the purpose of disseminating or initiating a
     communication, such as a mailing, telephone bank, print or
     electronic media advertisement, billboard, publication or
     education campaign, the communication shall clearly and
     conspicuously state the name of the person who made or financed
     the expenditure for the communication.
      § 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 reporting):
            (1)  An individual who limits lobbying to preparing
        testimony and testifying before a committee of the General
        Assembly or participating in an administrative proceeding of
        an agency.
            (2)  An individual who is an employee of an entity
        engaged in the business of publishing or broadcasting while
        engaged in the gathering and dissemination of news and
        comment on the news to the general public in the ordinary
        course of business.
            (3)  An individual who does not receive economic
        consideration for lobbying.
            (4)  An individual whose economic consideration for
        lobbying, from all principals represented, does not exceed
        $2,500 in the aggregate during any reporting period.
            (5)  An individual who engages in lobbying on behalf of
        the individual's employer if the lobbying represents less
        than 20 hours during any reporting period.
            (6)  Except as required under section 13A05(d), a
        principal whose total expenses for lobbying purposes do not
        exceed $2,500 during any reporting period.
            (7)  An elected State official who acts in an official
        capacity.
            (8)  An appointed State official acting in an official
        capacity.
            (9)  An elected or appointed official of a political
        subdivision who is acting in an official capacity for the
        political subdivision.
            (10)  An employee of the Commonwealth or an agency of the
        Commonwealth who is acting in an official capacity for the
        Commonwealth or agency.
            (11)  An individual representing a bona fide church or
        bona fide religious body of which the individual is a member
        where the lobbying 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 and
        who serves on an advisory board, working group or task force
        at the request of an agency or the General Assembly.
            (13)  Participating as a party or as an attorney at law
        or representative of a party, case or controversy in any
        administrative adjudication pursuant to 2 Pa.C.S. (relating
        to administrative law and procedure).
            (14)  Expenditures and other transactions subject to
        reporting under Article XVI of the act of June 3, 1937
        (P.L.1333, No.320), known as the Pennsylvania Election Code.
            (15)  Vendor activities under 62 Pa.C.S. §§ 514 (relating
        to small procurements), 516 (relating to emergency
        procurements) and efforts directly related to responding to
        publicly advertised invitations to bid and requests for
        proposals.
      § 13A07.  Prohibited activities.
        (a)  Political committees.--A lobbyist may not serve as a
     treasurer or other officer who must be included in a
     registration statement under section 1624(b)(2) and (3) of the
     act of June 3, 1937 (P.L.1333, No.320), known as the
     Pennsylvania Election Code, for a candidate's political
     committee or a candidate's political action committee if the
     candidate is seeking a Statewide office or the office of Senator
     or Representative in the General Assembly.
        (b)  Fee restrictions.--A lobbyist may not charge a fee or
     receive economic consideration based on a contract, either
     written or oral, that any part of the fee or economic
     consideration will be converted into a contribution to a
     candidate for public office or a political committee subject to
     reporting under Article XVI of the Pennsylvania Election Code.
        (c)  Falsification.--A lobbyist, lobbying firm or principal
     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 on behalf of a principal on any subject matter
        in which the principal's interests are directly adverse to
        the interests of another principal currently represented by
        the lobbyist or previously represented by the lobbyist during
        the current session of the General Assembly or the lobbyist's
        own interests.
            (2)  A lobbyist may represent a principal in
        circumstances described in paragraph (1) if:
                (i)  the lobbyist reasonably believes that the
            lobbyist will be able to provide competent and diligent
            representation to each affected principal;
                (ii)  the lobbyist provides written notice to each
            affected principal upon becoming aware of the conflict;
            and
                (iii)  each affected principal provides informed
            consent waiving the conflict of interest.
            (3)  If a lobbyist 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 shall promptly withdraw from one or more
        representations to the extent necessary for remaining
        representation to not be in violation of this section.
            (4)  If a lobbyist is prohibited by this section from
        engaging in particular conduct, an employer of the lobbyist
        or a partner or other person associated with the lobbyist may
        not engage in the particular conduct.
            (5)  A principal or lobbyist required to report under
        section 13A05 (relating to 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.
            (6)  Except as provided in paragraph (8), 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:
                (i)  shall impose an administrative penalty in an
            amount not to exceed $2,000; and
                (ii)  may prohibit a lobbyist from lobbying for
            economic consideration for up to five years.
            (7)  A lobbyist and principal 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 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.
        (d.1)  Multiple principals.--Nothing in this section shall be
     construed to require a lobbyist representing multiple principals
     who each have an interest in the State Budget process to comply
     with subsection (d)(2) unless a conflict of interest exists
     under subsection (d)(1).
        (e)  Contingent compensation.--
            (1)  A person may not compensate or incur an obligation
        to compensate a person to engage in lobbying for compensation
        contingent in whole or in part upon any of the following:
                (i)  Occurrence, nonoccurrence or amendment of
            legislative action.
                (ii)  Occurrence, nonoccurrence or amendment of an
            administrative action other than procurement described in
            paragraph (1)(iv) of the definition of "administrative
            action" under section 13A03 (relating to definitions).
            (2)  A person may not engage in or agree to engage in
        lobbying for compensation contingent in whole or in part upon
        any of:
                (i)  Occurrence, nonoccurrence or amendment of
            legislative action.
                (ii)  Occurrence, nonoccurrence or amendment of an
            administrative action other than procurement described in
            paragraph (1)(iv) of the definition of "administrative
            action" under section 13A03.
            (3)  This subsection shall not apply to vendors.
        (f)  Unlawful acts.--
            (1)  A lobbyist or principal may not:
                (i)  Instigate the introduction of legislation for
            the purpose of obtaining employment to lobby in
            opposition to that legislation.
                (ii)  Knowingly counsel a person to violate this
            chapter or any other Federal or State statute.
                (iii)  Engage in or counsel a person to engage in
            fraudulent conduct.
                (iv)  Attempt to influence a State official or
            employee on legislative or administrative action by
            making or facilitating the making of a loan to the State
            official or employee.
                (v)  While engaging in lobbying on behalf of the
            principal, refuse to disclose to a State official or
            employee, upon request, the identity of the principal.
                (vi)  Commit a criminal offense arising from
            lobbying.
                (vii)  Influence or attempt to influence, by
            coercion, bribery or threat of economic sanction, a State
            official or employee in the discharge of the duties of
            office.
                (viii)  Extort or otherwise unlawfully retaliate
            against a State official or employee by reason of the
            State official's or employee's position with respect to
            or vote on administrative or legislative action.
                (ix)  Attempt to influence a State official or
            employee on legislative or administrative action by the
            promise of financial support or the financing of
            opposition to the candidacy of the State official or
            employee at a future election.
                (x)  Engage in conduct which brings the practice of
            lobbying or the legislative or executive branches of
            State government into disrepute.
            (2)  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:
                (i)  shall impose an administrative penalty in an
            amount not to exceed $2,000; and
                (ii)  may prohibit a lobbyist from lobbying for
            economic consideration for up to five years.
            (3)  The commission:
                (i)  may, as it deems appropriate, refer an alleged
            violation of this subsection to the Attorney General for
            investigation and prosecution; and
                (ii)  shall, if the subject of the complaint is an
            attorney at law, refer an alleged violation of this
            subsection to the board.
      § 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, 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.
        (b)  Forms.--The department shall prescribe registration and
     reporting forms to be used under this chapter. The forms shall
     be available on a publicly accessible Internet website. All
     information requested on the forms shall be provided to the best
     of the knowledge, information and belief of the person required
     to file and shall be signed under oath or equivalent
     affirmation.
        (c)  Public inspection and copying.--The department shall
     make completed registration statements, expense 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.
        (d)  Annual reporting.--
            (1)  The department shall prepare and publish an annual
        report on lobbying activities in this Commonwealth.
            (2)  The department shall at least annually publish a
        list of all of the following:
                (i)  Registered principals. The department shall
            identify affiliated political action committees and
            lobbying firms and lobbyists that are registered to lobby
            for the principal.
                (ii)  Lobbying firms and lobbyists not associated
            with lobbying firms. The department shall identify
            affiliated political action committees and the principals
            for whom the lobbying firm or lobbyist is registered to
            lobby.
                (iii)  Registered lobbyists for each lobbying firm.
        (e)  Retention of records.--Completed registration
     statements, expense reports and notices of termination shall be
     available for public inspection with the department for a four-
     year period commencing on the date of filing.
        (f)  Audits.--The following shall apply:
            (1)  Every two years the Secretary of the Commonwealth
        shall contract for the services of one or more certified
        public accountants or certified public accounting firms. The
        contract shall be awarded in a manner consistent with the
        provisions of 62 Pa.C.S. Pt. I (relating to Commonwealth
        Procurement Code), and no certified public accountant or
        certified public accounting firm shall be eligible to obtain
        a contract for two successive contract periods.
            (2)  The secretary shall randomly select, at a public
        drawing 60 days following the close of each fourth quarter
        reporting period, 3% of all completed registrations and
        expense reports filed with the department under this chapter.
            (3)  The certified public accountant shall conduct the
        audits in accordance with generally accepted auditing
        standards and shall test as to whether each registration or
        expense report is materially correct.
            (4)  The audit report and findings shall be confidential,
        except that the department shall make an audit report and
        findings available to the commission if the commission is
        investigating an alleged violation of this chapter involving
        the audited registration or expense report. The commission
        shall include the relevant portion of an audit as part of its
        findings of fact in a commission order which results from an
        investigation arising out of an audit.
        (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 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 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.
        (i)  Computer file.--The department shall provide the
     Legislative Data Processing Committee data relating to
     registration statements and amendments to registration
     statements, expense reports and notices of termination. The
     committee shall make information under this subsection available
     on a publicly accessible Internet website.
        (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 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.
      § 13A09.  Penalties.
        (a)  Notice of alleged noncompliance.--
            (1)  The commission shall issue a notice of alleged
        noncompliance to a person that has failed to register or
        report as required by this chapter.
            (2)  The notice shall state:
                (i)  the nature of the alleged noncompliance; and
                (ii)  the administrative and criminal penalties for:
                    (A)  failure to register;
                    (B)  failure to file; or
                    (C)  filing a report which contains a false
                statement or which is incomplete.
            (3)  The notice shall advise that if the person disagrees
        with the alleged noncompliance, the person may appeal the
        determination before the commission.
            (4)  The notice shall set forth the deadline and manner
        in which to request a hearing.
            (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
        the commission shall impose a penalty in accordance with
        subsection (b)(3) or (4).
        (b)  Hearing.--
            (1)  If a hearing is requested, the commission shall
        determine at the hearing:
                (i)  whether the recipient of the notice is required
            to register or report under this chapter;
                (ii)  whether the recipient of the notice is an
            attorney at law; and
                (iii)  whether the failure to register or report was
            negligent or intentional.
            (2)  If the commission finds that failure to register or
        report was intentional, it shall refer the matter to the
        Attorney General and, if the person is an attorney at law, to
        the board.
            (3)  If the commission finds that failure to register or
        report was negligent, it shall determine the amount of the
        administrative penalty to be imposed.
            (4)  A hearing under this subsection shall be conducted
        by the commission in accordance with sections 1107(14)
        (relating to powers and duties of commission) and 1108(e)
        (relating to investigations by commission).
            (5)  Appeals of the commission's determination shall be
        in accordance with section 1108(i). If a court of competent
        jurisdiction determines that any complaint or investigation
        which involves an attorney at law is under the jurisdiction
        of the board, the matter shall be referred by the court to
        the board to be investigated, considered and resolved in a
        manner consistent with the Rules of Professional Conduct.
        (c)  Negligent failure to register or report.--
            (1)  Negligent failure to register or report as required
        by this chapter is punishable by an administrative penalty
        not exceeding $50 for each late day.
            (2)  After a hearing under subsection (b), the commission
        may, upon the majority vote of all of its members, levy an
        administrative penalty. The total amount of the
        administrative penalty levied shall not be limited by any
        other provision of law.
            (3)  The commission shall notify the board of any
        lobbyist or principal who is an attorney at law against whom
        a civil penalty is imposed.
            (4)  The commission has standing to apply to the
        Commonwealth Court to seek enforcement of an order imposing
        an administrative penalty under this section.
        (d)  Failure to comply after notice.--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 for economic consideration for up to
     five years. The prohibition shall be imposed under subsection
     (e)(4).
        (e)  Intentional violations.--
            (1)  A person that intentionally fails to register or
        report as required by this chapter commits a misdemeanor of
        the second degree.
            (2)  A registrant who files a report under this chapter
        with knowledge that the report contains a false statement or
        is incomplete commits a misdemeanor of the second degree.
            (3)  Except as set forth in paragraph (1) or (2), a
        person that intentionally violates this chapter commits a
        misdemeanor of the third degree. In addition to any other
        penalties imposed under this chapter, the court may impose a
        fine not to exceed $25,000 against a principal who is found
        guilty under this paragraph.
            (4)  In addition to any criminal penalties imposed under
        this chapter, the commission may prohibit a person from
        lobbying for economic consideration for up to five years for
        conduct which constitutes an offense under this subsection.
        Criminal prosecution or conviction is not required for the
        imposition of the prohibition authorized by this paragraph.
        The commission shall not impose the prohibition under this
        paragraph unless the person has been afforded the opportunity
        for a hearing, which shall be conducted by the commission in
        accordance with sections 1107(14) and 1108(e).
        (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.
        (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:
            (1)  The respondent or defendant relied on advice and
        opinions of the commission.
            (2)  The respondent or defendant relied on notice under
        section 13A05(b)(3)(iv).
            (3)  The respondent or defendant did not receive notice
        under section 13A05(b)(3)(iv).
        (h)  Criminal enforcement.--If the department or commission
     has reason to believe an intentional violation of this chapter
     has been committed, it shall refer all relevant documents and
     other information to the Office of Attorney General and, if the
     lobbyist or principal is an attorney at law, to the board. The
     Attorney General shall have exclusive jurisdiction to prosecute
     criminal violations under this chapter.
        (i)  Attorney General.--In addition to the authority
     conferred upon the Attorney General under the act of October 15,
     1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act,
     the Attorney General has the authority to investigate and
     prosecute a violation of this chapter.
      § 13A10.  Registration fees; fund established; system;
                regulations.
        (a)  Registration fees.--At the time of registration, a
     person required to be registered under this chapter shall pay a
     biennial registration fee of $100 to the department.
        (b)  Fund.--
            (1)  The Lobbying Disclosure Fund is established as a
        special fund in the State Treasury.
            (2)  Money received from registration fees under
        subsection (a) shall be deposited in the fund. Money
        remaining in the fund established under former 65 Pa.C.S. §
        1310(b) shall be transferred to the fund.
            (3)  Money deposited in the fund is appropriated to the
        department as a continuing appropriation for the exclusive
        purpose of carrying out this chapter.
        (c)  Computerized filing system.--The department shall
     implement a fully accessible system to accommodate the use of
     computerized filing. Each registrant shall elect on an annual
     basis whether the registrant will file all of the documents
     required by this chapter either electronically or on paper with
     the department.
        (d)  Regulations.--
            (1)  A committee comprised of the chairman of the
        commission, the Attorney General, the chief counsel of the
        board, the Secretary of the Commonwealth, an individual
        appointed by the President pro Tempore of the Senate, an
        individual appointed by the Minority Leader of the Senate, an
        individual appointed by the Speaker of the House of
        Representatives, an individual appointed by the Minority
        Leader of the House of Representatives, or their designees,
        and a lobbyist appointed by the Governor shall have authority
        to promulgate regulations necessary to carry out this
        chapter. The Attorney General shall be chairman of this
        committee. A vacancy occurring among the appointed members of
        the committee shall be filled in the same manner as the
        original appointment. A committee member who is a member of
        the General Assembly shall serve for a term that is
        coincident with the member's term of office.
            (2)  The committee shall submit the initial proposed
        regulations within 180 days of the effective date of this
        section to the Independent Regulatory Review Commission under
        section 5 of the act of June 25, 1982 (P.L.633, No.181),
        known as the Regulatory Review Act.
            (3)  A meeting at which the committee plans to approve
        proposed regulations or other official actions shall be held
        in accordance with Chapter 7 (relating to open meetings).
            (4)  The department shall provide sufficient staff and
        other administrative support to assist the committee.
            (5)  The committee shall prepare and publish a manual
        setting forth guidelines for accounting and reporting.
            (6)  The regulations and manual shall be drafted to
        accommodate the use of computerized recordkeeping, electronic
        filing of required registrations and reports under this
        chapter and retention of registration statements and reports
        under this chapter by electronic means.
      § 13A11.  Nonapplicability.
        Nothing in this chapter shall be construed to affect 18
     Pa.C.S. § 7515 (relating to contingent compensation).
        Section 4.  The Secretary of the Commonwealth shall transmit
     to the Legislative Reference Bureau, for publication in the
     Pennsylvania Bulletin, notice of full implementation of the
     computerized filing system required under 65 Pa.C.S. § 13A10(c).
        Section 5.  Any funds remaining in the restricted receipts
     account created under 65 Pa.C.S. § 1310(b) may be utilized by
     the Department of State to implement the provisions of 65
     Pa.C.S. Ch. 13A.
        Section 6.  This act shall take effect as follows:
            (1)  The following provisions shall take effect
        immediately:
                (i)  65 Pa.C.S. § 13A08(b) and § 13A10(d).
                (ii)  This section.
            (2)  The remainder of this act shall take effect January
        1, 2007.

     APPROVED--The 1st day of November, A. D. 2006.

     EDWARD G. RENDELL