A02668
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1601
Session of
2021
INTRODUCED BY HAMM, CUTLER, KERWIN, B. MILLER, PENNYCUICK,
KEEFER, LEWIS, C. WILLIAMS, STAMBAUGH, DIAMOND, DOWLING,
SMITH, GROVE, FEE, RYAN, SCHMITT, ROZZI, HELM, HERSHEY,
OWLETT, MENTZER, BERNSTINE, ROWE AND GLEIM, JUNE 10, 2021
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 10, 2021
AN ACT
Amending Title 65 (Public Officers) of the Pennsylvania
Consolidated Statutes, in lobbying disclosure, further
providing for reporting, providing for equity reporting and
further providing for administration; and making editorial
changes. in lobbying disclosure, further providing for
definitions, for registration and for reporting, providing
for statement of financial interests and further providing
for exemption from registration and reporting, for prohibited
activities, for administration and for penalties; making a
related repeal; and making editorial changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The heading of section 13A05 of Title 65 of the
Pennsylvania Consolidated Statutes is amended to read:
Section 1. Section 13A03 of Title 65 of the Pennsylvania
Consolidated Statutes is amended by adding a definition to read:
§ 13A03. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
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"Campaign consultant." An individual who receives
compensation for professional campaign-related services,
including, but not limited to, political, strategic, advisory or
fundraising services, rendered to a campaign to elect an
individual to office.
* * *
Section 2. Section 13A04(a), (d)(1) and (e)(1), (2) and (4)
of Title 65 are amended and the section is amended by adding a
subsection to read:
§ 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 campaign 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 campaign consultant. Registration shall be biennial
[and shall begin January 1, 2007].
* * *
(c.1) Campaign consultants.--A campaign 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 campaign consultant will be providing services or
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assistance or for whom the campaign 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.
(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.--
(1) A lobbyist, lobbying firm [or], principal or
campaign 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 campaign 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
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exempt a lobbyist, lobbying firm [or], principal or campaign
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:
§ 13A05. [Reporting] Expense reporting.
* * *
Section 2 4. Title 65 is amended by adding a section to
read:
§ 13A05.1. Equity reporting.
Each lobbying firm and lobbyist required to register under
section 13A04(a) (relating to registration) shall, subject to
the penalties under 18 Pa.C.S. § 4904 (relating to unsworn
falsification to authorities), electronically file an annual
equity report using the computerized filing system developed by
the department. Equity reports shall disclose any equity a
lobbying firm or lobbyist holds in an entity for which they are
lobbying and shall be consistent with the purpose of this
chapter. Equity reports shall be filed no later than 30 days
after the last day of the quarter and may include any additional
information required by the department.
Section 3. Sections 13A06 introductory paragraph, 13A07(d)
(5), 13A08(c) and (j) and 13A09(g)(2) of Title 65 are amended to
read:
§ 13A06. Exemption from registration and reporting.
The following persons and activities shall be exempt from
registration under section 13A04 (relating to registration) and
reporting under section 13A05 (relating to expense reporting):
* * *
§ 13A07. Prohibited activities.
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* * *
(d) Conflicts of interest.--
* * *
(5) A principal or lobbyist required to report under
section 13A05 (relating to expense reporting) shall include
in the report a statement affirming that to the best of the
principal's or lobbyist's knowledge the principal or lobbyist
has complied with this section.
* * *
§ 13A08. Administration.
* * *
(c) Public inspection and copying.--The department shall
make completed registration statements, expense reports, equity
reports and notices of termination, which have been filed with
the department, available for public inspection and provide
copies of these documents at a price not in excess of the actual
cost of copying. The department shall make all registrations and
reports available on a publicly accessible Internet website.
Documents maintained and reproducible in an electronic format
shall be provided in that format upon request.
* * *
(j) Inflation adjustment.--On a biennial basis commencing in
January 2009, the department shall review the threshold under
section 13A06 (relating to exemption from registration and
reporting) for registration under section 13A04 (relating to
registration) and the threshold for reporting under section
13A05(d) (relating to expense reporting) and shall increase
these amounts to rates deemed reasonable for assuring
appropriate disclosure. On a biennial basis commencing in
January 2009, the department shall review the filing fee
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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.
* * *
(g) Affirmative defense.--Any of the following is an
affirmative defense to an action brought under Chapter 11
(relating to ethics standards and financial disclosure) or this
chapter:
* * *
(2) The respondent or defendant relied on notice under
section 13A05(b)(3)(iv) (relating to expense reporting).
* * *
§ 13A05.1. Statement of financial interests.
Each lobbying firm, lobbyist and campaign consultant required
to register under section 13A04 (relating to registration)
shall, subject to the penalties under 18 Pa.C.S. § 4904
(relating to unsworn falsification to authorities), file a
statement of financial interests for the preceding calendar year
no later than May 1 of each year that the firm, lobbyist or
campaign consultant is required to register, and of the year
after the firm, lobbyist or campaign consultant is no longer
required to register. The statement shall be filed with the
department and the commission and shall contain all the
information required under section 1105 (relating to statement
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of financial interests).
Section 5. Section 13A06 heading, introductory paragraph,
(1), (3), (4), (5), (11) and (12) of Title 65 are amended to
read:
§ 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 campaign
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 campaign consulting.
(4) An individual whose economic consideration for
lobbying or campaign consulting, from all principals
represented, does not exceed $2,500 in the aggregate during
any reporting period.
(5) An individual who engages in lobbying or campaign
consulting on behalf of the individual's employer if the
lobbying or campaign 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 campaign 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
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registered campaign consultant and who serves on an advisory
board, working group or task force at the request of an
agency or the General Assembly.
* * *
Section 6. Section 13A07(c), (d)(1), (2), (3), (4), (5), (6)
(ii), (7) and (8) and (f)(1)(i), (vi) and (x) of Title 65 are
amended to read:
§ 13A07. Prohibited activities.
* * *
(c) Falsification.--A lobbyist, lobbying firm [or],
principal or campaign 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 campaign consulting services 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
campaign consultant or was previously represented by the
lobbyist or campaign consultant during the current session of
the General Assembly or the lobbyist's or campaign
consultant's own interests.
(2) A lobbyist or campaign consultant may represent a
principal in circumstances described in paragraph (1) if:
(i) the lobbyist or campaign consultant reasonably
believes that the lobbyist or campaign consultant will be
able to provide competent and diligent representation to
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each affected principal;
(ii) the lobbyist or campaign consultant 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 or campaign 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
campaign consultant 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 or campaign consultant 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] or campaign consultant may not
engage in the particular conduct.
(5) A principal [or lobbyist], lobbyist or campaign
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 campaign consultant's knowledge, the principal, lobbyist
or campaign consultant 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:
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* * *
(ii) may prohibit a lobbyist from lobbying or a
campaign consultant from providing campaign consulting
services for economic consideration for up to five years.
(7) A lobbyist [and], principal and campaign 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 campaign 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 campaign consultant
may not:
(i) Instigate the introduction of legislation for
the purpose of obtaining employment to lobby or providing
campaign consulting services in opposition to that
legislation.
* * *
(vi) Commit a criminal offense arising from lobbying
or campaign consulting.
* * *
(x) Engage in conduct which brings the practice of
lobbying, campaign consulting or the legislative or
executive branches of State government into disrepute.
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* * *
Section 7. 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:
§ 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 campaign 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.--
(1) The department shall prepare and publish an annual
report on lobbying and campaign consulting activities in this
Commonwealth.
(2) The department shall at least annually publish a
list of all of the following:
* * *
(iv) Registered campaign 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 campaign consultant in accordance
with sections 1107 (relating to powers and duties of commission)
and 1108 (relating to investigations by commission).
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(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 campaign
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
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 campaign
consultant, in accordance with this chapter, shall be delivered
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to the authorized representative, employee or agent.
Section 8. Section 13A09(a)(1.1), (c)(3), (d) and (g)(2) of
Title 65 are amended to read:
§ 13A09. Penalties.
(a) Notice of alleged noncompliance.--
* * *
(1.1) In the case of a principal [or], lobbying firm or
campaign consultant, the notice shall be delivered to the
authorized representative, employee or agent.
* * *
(c) Negligent failure to register or report.--
* * *
(3) The commission shall notify the board of any
lobbyist [or], principal or campaign 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 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 campaign consulting
services for economic consideration for up to five years. The
prohibition shall be imposed under subsection (e)(4).
* * *
(g) Affirmative defense.--Any of the following is an
affirmative defense to an action brought under Chapter 11
(relating to ethics standards and financial disclosure) or this
chapter:
* * *
(2) The respondent or defendant relied on notice under
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section 13A05(b)(3)(iv) (relating to expense reporting).
* * *
Section 9. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the addition of 65
Pa.C.S. § 13A05.1.
(2) Section 816 the act April 9, 1929 (P.L.177, No.175),
known as The Administrative Code of 1929, is repealed.
Section 4 10. This act shall take effect in 60 180 days.
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