1Amending Titles 65 (Public Officers) and 74 (Transportation) of
2the Pennsylvania Consolidated Statutes, in ethics standards
3and financial disclosure, further providing for restricted
4activities and for statement of financial interests;
5prescribing penalties; in lobbying disclosure, further
6providing for definitions and for reporting; and, in Turnpike
7Commission standards of conduct, further providing for code
8of conduct.

9The General Assembly of the Commonwealth of Pennsylvania
10hereby enacts as follows:

11Section 1. The definitions of "aggregate" and "gift" in
12section 1102 of Title 65 of the Pennsylvania Consolidated
13Statutes are amended and the section is amended by adding
14definitions to read:

15§ 1102. Definitions.

16The following words and phrases when used in this chapter
17shall have, unless the context clearly indicates otherwise, the
18meanings given to them in this section:

19* * *

20["Aggregate." The total of all gifts received from a single

1source as provided in section 1105(b)(6) (relating to statement
2of financial interests).]

3* * *

4"Commercial loan made in the ordinary course of business." A
5loan from a bank or other financial institution on terms
6generally available to the public.

7* * *

8"Gift." [As defined in section 13A03 (relating to
9definitions).] Money or a thing of value received, other than 
10income, for which a consideration of equal or greater value is 
11not received. The term shall not include the following:

12(1) A gift from a person other than a principal or
13lobbyist that is valued at $50 or less. Gifts under this
14paragraph shall be limited to $250 annually.

15(2) A political contribution reported in accordance with
16law.

17(3) A gift from a parent, sibling, spouse, child,
18stepchild, stepparent, stepsibling, grandparent, grandchild,
19parent-in-law, sibling-in-law or other close relative when
20the circumstances make it clear that the motivation for the
21action was a personal or family relationship, including an
22invitation to attend a personal or family social event.

23(4) A devise, bequest, intestate estate distribution or
24principal distribution of a trust.

25(5) A gift available to the public or offered to members 
26of a group or class in which membership is not related to 
27being a public official or public employee.

28(6) An award or prize given to competitors in any
29contest or event open to the public, including a random
30drawing.

1(7) An award, plaque and other ceremonial item valued at
2$100 or less that is publicly presented or intended to be
3publicly presented in recognition of public service of the
4type customarily bestowed at similar ceremonies or that are
5otherwise reasonable.

6(8) An honorary degree bestowed by a public or private
7college or university.

8(9) A gift of nominal value, including, but not limited
9to, a greeting card, pen, cap or t-shirt.

10(10) Informational material.

11(11) An item paid for by Federal, State or local
12government.

13(12) Complimentary attendance or food and beverage at a
14bona fide charitable or political event.

15(13) Food and beverage for consumption at any of the
16following:

17(i) A public event, including a public meeting.

18(ii) An event directly related to the official or
19employee's duties or responsibilities.

20(iii) An event where the official or employee is a
21speaker or a member of a panel.

22(iv) A regularly scheduled event sponsored by a
23constituent, Statewide organization or nonprofit
24organization.

25(14) Gifts exchanged between public officials and their
26staffs on a voluntary basis.

27(15) Gifts given on the basis of legitimate personal
28friendship.

29(16) Entertainment provided as part of an event at a
30private residence for a nonofficial purpose.

1* * *

2"Lobbyist." Any individual, association, corporation,
3partnership, business trust or other entity that is registered
4as a lobbyist under Chapter 13A (relating to lobbying
5disclosure).

6* * *

7"Official action." An administrative action or legislative
8action, as those terms are defined in section 13A03 (relating to
9definitions), or an equivalent action taken by a political
10subdivision.

11* * *

12"Principal." Any individual, association, corporation,
13partnership, business trust or other entity that is registered
14as a principal under Chapter 13A.

15* * *

16Section 2. Section 1103 of Title 65 is amended by adding a
17subsection to read:

18§ 1103. Restricted activities.

19* * *

20(k) Gifts.--No public official or public employee shall
21accept or solicit a gift from any of the following:

22(1) A lobbyist or principal.

23(2) A person that is seeking official action from the
24public official or public employee.

25Section 3. Section 1105(b)(5), (6) and (7) of Title 65 are
26amended to read:

27§ 1105. Statement of financial interests.

28* * *

29(b) Required information.--The statement shall include the
30following information for the prior calendar year with regard to

1the person required to file the statement:

2* * *

3[(5) The name and address of any direct or indirect
4source of income totaling in the aggregate $1,300 or more.
5However, this provision shall not be construed to require the
6divulgence of confidential information protected by statute
7or existing professional codes of ethics or common law
8privileges.

9(6) The name and address of the source and the amount of
10any gift or gifts valued in the aggregate at $250 or more and
11the circumstances of each gift. This paragraph shall not
12apply to a gift or gifts received from a spouse, parent,
13parent by marriage, sibling, child, grandchild, other family
14member or friend when the circumstances make it clear that
15the motivation for the action was a personal or family
16relationship. However, for the purposes of this paragraph,
17the term "friend" shall not include a registered lobbyist or
18an employee of a registered lobbyist.

19(7) The name and address of the source and the amount of
20any payment for or reimbursement of actual expenses for
21transportation and lodging or hospitality received in
22connection with public office or employment where such actual
23expenses for transportation and lodging or hospitality exceed
24$650 in an aggregate amount per year. This paragraph shall
25not apply to expenses reimbursed by a governmental body or to
26expenses reimbursed by an organization or association of
27public officials or employees of political subdivisions which
28the public official or employee serves in an official
29capacity.]

30* * *

1Section 4. Section 1109 of Title 65 is amended by adding a
2subsection to read:

3§ 1109. Penalties.

4* * *

5(a.1) Gifts.--

6(1) Any person who intentionally violates the provisions
7of section 1103(k) involving an amount of $250 or more
8commits a felony and shall, upon conviction, be sentenced to
9pay a fine of not more than $10,000 plus costs or
10imprisonment for not more than five years, or both.

11(2) A fine and penalty imposed under this section shall
12be paid into the General Fund.

13* * *

14Section 5. The definitions of "gift," "hospitality" and
15"lobbying" in section 13A03 of Title 65 are amended to read:

16§ 13A03. Definitions.

17The following words and phrases when used in this chapter
18shall have the meanings given to them in this section unless the
19context clearly indicates otherwise:

20 * * *

21["Gift." Anything which is received without consideration of
22equal or greater value. The term shall not include a political
23contribution otherwise reportable as required by law or a
24commercially reasonable loan made in the ordinary course of
25business. The term shall not include hospitality, transportation
26or lodging.

27"Hospitality." Includes all of the following:

28(1) Meals.

29(2) Beverages.

30(3) Recreation and entertainment.

1The term shall not include gifts, transportation or lodging.]

2* * *

3"Lobbying." An effort to influence legislative action or
4administrative action in this Commonwealth. The term includes:

5(1) [direct] Direct or indirect communication[;].

6(2) [office] Office expenses[; and].

7[(3) providing any gift, hospitality, transportation or
8lodging to a State official or employee for the purpose of
9advancing the interest of the lobbyist or principal.]

10* * *

11Section 6. Section 13A05(b)(2) and (3) and 13A09(g) of Title
1265 are amended to read:

13§ 13A05. Reporting.

14* * *

15(b) Content.--

16* * *

17(2) Each expense report shall include the total costs of
18all lobbying for the period. The total shall include all
19office expenses, personnel expenses[, expenditures related to
20gifts, hospitality, transportation and lodging to State
21officials or employees,] and any other lobbying costs. The
22total amount reported under this paragraph shall be allocated
23in its entirety among the following categories:

24[(i) The costs for gifts, hospitality,
25transportation and lodging given to or provided to State
26officials or employees or their immediate families.

27(ii)] (i) The costs for direct communication.

28[(iii)] (ii) The costs for indirect communication.

29[(iv)] (iii) Expenses required to be reported under
30this subsection shall be allocated to one of the three

1categories listed under this section and shall not be
2included in more than one category.

3* * *

4(3) [The following apply:

5(i) In addition to reporting the totals required
6under this subsection, the expense report must identify,
7by name, position and each occurrence, a State official
8or employee who receives from a principal or lobbyist
9anything of value which must be included in the statement
10under section 1105(b)(6) or (7) (relating to statement of
11financial interests) as implemented by section 1105(d).

12(ii) For purposes of this chapter, the amount
13referred to in section 1105(b)(7) shall be considered an
14aggregate amount per year.

15(iii) For purposes of this chapter, the amount
16referred to in section 1105(b)(7) shall not include the
17cost of a reception which the State official or employee
18attends in connection with public office or employment.

19(iv) Written notice must be given to each State
20official or employee who is listed in an expense report
21under this paragraph at least seven days prior to the
22report's submission to the department. Notice under this
23subparagraph shall include the information which will
24enable the State official or employee to comply with
25section 1105(b)(6) and (7). For purposes of this chapter
26and Chapter 11 (relating to ethics standards and
27financial disclosure), section 1105(b)(6) and (7) shall
28constitute mutually exclusive categories. For each
29category enumerated in paragraph (2)(i), each notice
30shall include both the amount incurred during the quarter

1and the cumulative amount incurred from January 1 through
2the end of the applicable quarter.

3(v) This paragraph shall not apply to anything of
4value received from immediate family when the
5circumstances make it clear that motivation for the
6action was the personal or family relationship.]
7(Reserved).

8* * *

9§ 13A09. Penalties.

10* * *

11(g) Affirmative defense.--[Any of the following is an
12affirmative defense to an action brought under Chapter 11
13(relating to ethics standards and financial disclosure) or this
14chapter:

15(1) The respondent or defendant relied on advice and
16opinions of the commission.

17(2) The respondent or defendant relied on notice under
18section 13A05(b)(3)(iv) (relating to reporting).

19(3) The respondent or defendant did not receive notice
20under section 13A05(b)(3)(iv).] The respondent or defendant 
21relying on advice and opinions of the commission is an 
22affirmative defense to an action brought under Chapter 11 
23(relating to ethics standards and financial disclosure) or 
24this chapter.

25* * *

26Section 7. Section 8204(a)(1) of Title 74 is amended to
27read:

28§ 8204. Code of conduct.

29(a) Contents.--The commission shall adopt a comprehensive
30code of conduct within 90 days of the effective date of this

1section. The code of conduct shall supplement all other
2requirements under this chapter and shall provide guidelines
3applicable to members and executive-level employees and the
4immediate families of the members and executive-level employees
5to enable them to avoid any perceived or actual conflict of
6interest and to promote public confidence in the integrity and
7impartiality of the commission. At a minimum, the code of
8conduct adopted under this section shall provide that:

9[(1) No member or executive-level employee may accept
10any discount, gift, gratuity, compensation, travel, lodging
11or other thing of value, in excess of the limits under 65 
12Pa.C.S. § 1105(b)(6) and (7) (relating to statement of 
13financial interests) directly or indirectly, from any
14facility or business with which the commission has a
15contractual relationship.]

16* * *

17Section 8. This act shall take effect in 60 days.