1Amending the act of July 10, 1968 (P.L.316, No.154), entitled
2"An act establishing a code of ethics for the General
3Assembly, its officers and employes, and providing remedies
4for its enforcement and penalties," further providing for
5definitions, for prohibitions and for civil remedies.

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1. Sections 3, 5 and 7 of the act of July 10, 1968 
9(P.L.316, No.154), known as the Legislative Code of Ethics, are
10amended to read:

11Section 3. Definitions.--Unless the context clearly
12indicates otherwise, the following words and terms when used
13herein shall have the respective meanings defined as follows:

14(1) "Agency" means any department, agency, commission,
15board, committee, authority or other instrumentality which is
16created by or under the Constitution or laws of the Commonwealth
17of Pennsylvania or by executive order, except local political
18subdivisions or agencies, the majority of the members of whose
19governing bodies are locally elected or appointed.

1(2) "Agency head" and "head of any agency" mean the chief
2executive or administrative officer of each of the State

4(3) "Assist" means to act, or agree to act, in such a way as
5to help, aid, advise, furnish information to, or otherwise
6provide assistance to another person believing that such action
7is of help, aid, advice, or assistance to such person and with
8intent to so assist such person.

9(4) "Compensation" means any thing of economic value,
10however designated, which is paid, loaned, granted, given,
11donated or transferred, or to be paid, loaned, granted, given,
12donated or transferred for or in consideration of personal
13services to any person, official or to the State.

14(4.1) "Ethics committee" means the Committee on Ethics of
15the Senate or the Committee on Ethics of the House of

17(5) "Gift," as used in section 5, includes any thing of
18economic value with the exception of public awards,
19insignificant nonpecuniary gifts, political contributions for
20which an accounting is required by and is made pursuant to the
21election laws, or compensation or gifts not connected with or
22related to either the legislative processes or the donee's
23services as a member.

24(5.1) "Legislative nonprofit organization" means a nonprofit 
25corporation or other entity whose primary purpose is to receive 
26funds under the General Appropriation Act or another 
27appropriations act at the discretion or by reason of the 
28influence of a member for the use at the direction or discretion 
29of the member.

30(6) "Member" shall include a Senator, Representative,

1officer or employe of the General Assembly or any committee
2thereof; but not a person employed on a contractual basis or
3without compensation for a particular project.

4(7) "State action" means any action on the part of the
5Commonwealth or a Commonwealth agency, including, but not
6limited to: (i) any decision, determination, finding, ruling or
7order, including the judgment or verdict of a court or a quasi-
8judicial board, in which the Commonwealth or any of its
9agencies, boards and commissions has an interest, except in such
10matters, involving criminal prosecutions; (ii) any grant,
11payment, award, license, contract, transaction, decision,
12sanction or approval, or the denial thereof, or the failure to
13act with respect thereto, in which the Commonwealth or any of
14its agencies has an interest, except in such matters involving
15criminal prosecutions; (iii) any disposition of any matter by
16the General Assembly or any committee thereof.

17(8) "Participate" in connection with a transaction involving
18the Commonwealth means to take part in State action or a
19proceeding personally as a Commonwealth official, through
20approval, disapproval, decision, recommendation, the rendering
21of advice, investigation, or the failure to act or perform a

23(9) "Person" means: (i) an individual, other than a
24Commonwealth agency or official; (ii) a partnership,
25association, corporation, firm, institution, trust, foundation
26or other legal entity (other than an agency), whether or not
27operated for profit; (iii) a district, county, municipality or
28other political subdivision of the State, or any subdivision
29thereof, provided such is not an agency; (iv) a foreign country
30or subdivision thereof, or (v) any other entity which is not a

1Commonwealth agency or official.

2(10) "Responsibility" in connection with a transaction
3involving the Commonwealth means the direct administration or
4operating authority whether intermediate or final, and either
5exercisable alone or with others, and either personally or
6through or with others or subordinates, to effectively approve,
7disapprove, fail to act or perform a duty, or otherwise direct
8State action in respect of such transaction.

9(11) "Thing of economic value" means any money or other
10thing having economic value except food, drink or refreshments
11consumed by an official including reasonable transportation and
12entertainment incident thereto, while the personal guest of some
13person, and includes, without limiting the generality of the
14foregoing: (i) any loan, except a bone fide loan made by a duly
15licensed bank or savings and loan association at the normal rate
16of interest, any property interest, interest in a contract,
17merchandise, service and any employment or other arrangement
18involving a right to compensation; (ii) any option to obtain a
19thing of economic value, irrespective of the conditions to the
20exercise of such option; and (iii) any promise or undertaking
21for the present or future delivery or procurement of a thing of
22economic value.

23In the case of an option, promise or undertaking, the time of
24receipt of the thing of economic value shall be deemed to be,
25respectively, the time the right to the option becomes fixed,
26regardless of the conditions to its exercise, and the time when
27the promise or undertaking is made, regardless of the conditions
28to its performance.

29(12) "Transaction involving the Commonwealth" means any
30proceeding, application, submission, request for a ruling or

1other determination, contract, claim, case or other such
2particular matter which the official in question believes, or
3has reason to believe: (i) is, or will be, the subject of State
4action, or (ii) is one to which the Commonwealth is or will be a
5party, or (iii) is one in which the Commonwealth has a direct

7Section 5. Prohibitions.--(a) No member shall knowingly
8solicit, accept, or receive any gift or compensation other than
9that to which he is duly entitled from the Commonwealth which is
10intended to influence the performance of his official duties or
11which would influence the performance of his official duties nor
12shall any member solicit, accept, or receive any such gift or
13compensation for advocating the passage or defeat of any
14legislation or for doing any act intended to influence the
15passage or defeat of legislation including, in the case of a
16Senator or Representative, his vote thereon.

17(b) No member shall receive compensation or any thing of
18economic value for any consultation, the subject matter of

20(1) Is devoted substantially to the responsibilities,
21programs, or operations of the General Assembly, or

22(2) Draws substantially upon official data or ideas which
23have not become part of the body of public information.

24(c) No member shall participate as a principal in any
25transaction involving the Commonwealth or any Commonwealth
26agency in which he, his spouse or child, or any person of which
27he is an officer, director, trustee, partner or employe has a
28substantial personal economic interest as distinguished from
29that of a general class or general group of persons of which he
30may reasonably be expected to know.

1(d) No member shall receive any compensation or enter into
2any agreement with any person for compensation for services
3rendered or to be rendered, for assisting any person in any
4transaction involving the Commonwealth or any of its officials
5or agencies unless he shall file with the Chief Clerk of the
6House of Representatives or Secretary of the Senate, as the case
7may be, a written statement, giving the following information:

8(1) Name and address of member.

9(2) The name and address of the person employing or
10retaining the member to perform such services.

11(3) Whether the amount of compensation for services rendered
12or to be rendered is (i) one thousand dollars ($1000), or more,
13or (ii) less than one thousand dollars ($1000).

14(4) A brief description of the transaction in reference to
15which service is rendered or is to be rendered, and of the
16nature of the service.

17The sworn statement shall be filed with the chief clerk or
18secretary within ten days from the date such agreement, express
19or implied, was entered into, or the compensation was received.
20Such statement of disclosure shall be deemed confidential and
21privileged and shall only be made public in connection with a
22public hearing for an alleged violation of this code where such
23would be relevant to the charges made and for which the member
24is being tried.

25(e) Subsections (a), (b), (c) and (d) of this section 5,
26shall not apply to:

27(1) Receipt of bona fide reimbursement, to the extent
28permitted by law, for actual expenses for travel and such other
29necessary subsistence as is compatible with this act and for
30which no Commonwealth payment or reimbursement is made.

1(2) Participation in the affairs of charitable, religious,
2nonprofit educational, public service or civic organizations, or
3the activities of national or State political parties not
4proscribed by law.

5(3) Awards for meritorious public contribution given by
6public service or civic organizations.

7(4) Sharing in any compensation received from the
8Commonwealth or from any political subdivision of the
9Commonwealth by a person of which such member owns or controls
10any portion thereof, provided such compensation was received by
11such person as a result of having made the lowest competitive
12bid on a Commonwealth contract or subcontract and having had
13such bid accepted by the Commonwealth or the general contractor,
14or by reason of an engagement by the Commonwealth in emergency
15circumstances where dispensation with bidding is permitted by
16law, and provided such member did not assist in the procurement
17of the Commonwealth's or the subdivision's or the general
18contractor's acceptance of such low bid or engagement without

20(5) Campaign contributions for use in meeting campaign
21expenses by any official who is or becomes a candidate for
22election to the same or another public office.

23(6) Receipt of compensation from the Commonwealth, directly
24or indirectly, where: (i) the total interest of the member and
25his immediate family in the person receiving said compensation
26is less than ten percent, or (ii) the member or the person in
27which he has an interest is the exclusive supplier of the real
28or personal property or service purchased by the Commonwealth,
29or (iii) the service purchased is newspaper advertising required
30by law.

1(7) Receipt of compensation, directly or indirectly, by a
2member who is an attorney-at-law, for services in a proceeding
3where he represents an interest adverse to that of the
4Commonwealth, where the proceeding is before any court, where
5the Commonwealth has a right to judicial review in a proceeding
6not initially before a court, or where the proceeding involves
7only the uncontested and routine action of administrative
8officers or employes of the Commonwealth in issuing or renewing
9a license, charter, certificate or similar document.

10(f) No member shall use for private gain any information not
11available to the public at large and acquired by him solely by
12virtue of his position.

13(g) No information described in subsection (f) of this
14section 5 shall be disclosed by a member to others for purposes
15of their use for private gain, in circumstances where the use of
16such information by the member would violate subsection (f) of
17this section 5.

18(h) No member may create, maintain or cause to be created or
19maintained a legislative nonprofit organization. For purposes of
20implementing this subsection, the appropriate ethics committee
21shall issue to a member of their body, upon the member's
22request, an opinion with respect to the member's duties under
23this subsection. Each ethics committee shall, within fourteen
24days, issue the opinion. No member who acts in good faith on an
25opinion issued to that member by an ethics committee may be
26subject to sanctions, if the material facts are as stated in the
27opinion request. The respective ethics committees' opinions
28shall be public records and may from time to time be published,
29except that the member requesting the legislative nonprofit
30organization opinion may require that the legislative nonprofit

1organization opinion contain deletions and changes necessary to
2protect the identity of the persons involved.

3Section 7. Civil Remedies.--(a) Any agency head having final
4authority to approve or execute a contract between the
5Commonwealth and a private party may cancel or rescind any such
6contract without further liability to the Commonwealth where he
7finds that a violation of this act has influenced the making of
8said contract; provided, such rescission shall be limited so as
9not to affect adversely the interests of innocent third parties;
10and provided further, that no such action shall be initiated
11before the affirmative finding of the appropriate [House or
12Senate Committee on Ethics] ethics committee that a violation
13has occurred.

14(b) The finding referred to in subsection (a) supra shall be
15made in accordance with the act of June 4, 1945 (P.L.1388), as
16amended, known as the "Administrative Agency Law," and shall be
17subject to judicial review, provided that the executive officer
18may suspend the contract pending determination of the merits of
19the controversy.

20(c) The Attorney General may bring a civil action against
21any member or former member in the judicial district in which
22said person is domiciled, who shall, to his economic advantage,
23have acted in violation of this act, to recover on behalf of the
24Commonwealth an amount equal to such economic advantage, with
25interest; provided, that no such action shall be brought before
26the affirmative finding of the appropriate [House or Senate
27Committee on Ethics] ethics committee that a violation has

29(d) No action under subsection (c) of this section 7 shall
30be commenced after the expiration of two years following the

1discovery by an agency head or [an Ethics Committee of the
2General Assembly] the appropriate ethics committee of the
3occurrence of the alleged violation, or four years after the
4occurrence of the alleged violation, whichever period is

6(e) The Senator or Representative having responsibility for
7hiring an employe of the General Assembly may, and if so ordered
8by the [Ethics Committee of his respective house] appropriate 
9ethics committee, shall, dismiss, suspend or take such other
10action as may be appropriate under the circumstances with
11respect to any employe upon a finding by the Senator or
12Representative or by said committee that such employe has
13violated any of the provisions of this act.

14Section 2. This act shall take effect in 60 days.