S1297B2232A08044 JKL:JSL 06/25/08 #90 A08044
AMENDMENTS TO SENATE BILL NO. 1297
Sponsor: REPRESENTATIVE NICKOL
Printer's No. 2232
1 Amend Title, page 2, line 3, by inserting after "DUTIES"
2 , for limitations on investment relationships and
3 campaign contributions
4 Amend Sec. 2, page 4, by inserting between lines 27 and 28
5 Section 311. Limitations on Investment Relationships and
6 Campaign Contributions.--(a) (1) The Treasury Department shall
7 not enter into an investment relationship with a person who has
8 solicited any contribution on behalf of or made any contribution
9 to a candidate committee or election fund of the State Treasurer
10 or any candidate for State Treasurer. This prohibition shall
11 apply to solicitations and contributions made by the person, by
12 an individual representing the person or by a political action
13 committee controlled by the person.
14 (2) No person who has agreed to or entered into an
15 investment relationship with the Treasury Department shall
16 knowingly solicit or make any contribution to a candidate
17 committee or election fund of the State Treasurer or any
18 candidate for State Treasurer. This prohibition shall apply to
19 solicitations and contributions made by the person, by an
20 individual representing the person or by a political action
21 committee controlled by the person.
22 (b) Subsection (a) shall apply to the time period which
23 begins two years prior to the following dates and ends upon the
24 termination of the investment relationship:
25 (1) the date upon which the Treasury Department first
26 announces a procurement or search process that could lead to an
27 investment relationship which can reasonably be expected to
28 generate at least $25,000 annually in income, fees or other
29 revenue to the person; or
30 (2) the date upon which a person approaches the Treasury
31 Department with a proposal to enter into an investment
32 relationship with the Treasury Department by discussing the
33 specific facts and financial terms of a particular investment
34 transaction or strategy.
35 (c) The State Ethics Commission shall cause an independent
36 investigation to be performed for any reported violation of this
37 section and report any documented violation to the State
38 Treasurer for action within ten business days of the conclusion
39 of the independent investigation. Copies of this report shall
40 also be submitted to the chairman of the Appropriations
41 Committee of the Senate and the chairman of the Appropriations
1 Committee of the House of Representatives within ten business
2 days of the conclusion of the independent investigation. The
3 State Ethics Commission shall submit the report to the
4 Legislative Reference Bureau for publication in the next
5 succeeding publication of the Pennsylvania Bulletin.
6 (d) If a person seeking an investment relationship with the
7 Treasury Department is found to be in violation of this section,
8 the person shall be prohibited from engaging in an investment
9 relationship with the Treasury Department for a period of two
10 years. A person who has an existing investment relationship with
11 the Treasury Department and who is found to be in violation of
12 the provisions of this section shall be prohibited from
13 providing any additional investment services for the Treasury
14 Department for a period of two years.
15 (e) If a person voluntarily reports a violation of this
16 section to the State Ethics Commission within 90 days of the
17 contribution's being made, and it is established pursuant to an
18 independent investigation that the violation was inadvertently,
19 unintentionally or unknowingly made and the contribution was
20 returned, the provisions of subsection (d) shall not apply.
21 (f) As used in this section, the following words and phrases
22 shall have the meaning given to them in this subsection:
23 "Contribution." A contribution reportably by the recipient
24 under Article XVI of the act of June 3, 1937 (P.L.1333, No.320),
25 known as the "Pennsylvania Election Code."
26 "Investment relationship." A relationship between a person
27 and the Treasury Department for the purpose of providing
28 investment services such as legal services, investment banking
29 services, investment advisory services, underwriting services,
30 financial advisory services or brokerage firm services for
31 brokerage, underwriting and financial advisory activities.
32 "Person." An individual, organization or partnership
33 currently engaged in or seeking to engage in an investment
34 relationship with the Treasury Department where the relationship
35 can reasonably be expected to generate at least $25,000 annually
36 in income, fees or other revenue to the individual, organization
37 or partnership and shall specifically include:
38 (1) Authorized or key personnel as defined or identified by
39 a contracting party by being attached to the contract.
40 (2) Persons who expect to or do experience a material
41 financial effect on their economic interests, including salary,
42 bonuses, options or other financial incentives directly deriving
43 from an investment relationship.
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