PRINTER'S NO. 1136
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
801
Session of
2021
INTRODUCED BY MENSCH, CORMAN, BAKER, PHILLIPS-HILL, TOMLINSON,
AUMENT, COSTA, DiSANTO, FONTANA, LAUGHLIN, MARTIN, MASTRIANO,
SCHWANK, STEFANO AND L. WILLIAMS, OCTOBER 13, 2021
REFERRED TO STATE GOVERNMENT, OCTOBER 13, 2021
AN ACT
Amending Titles 18 (Crimes and Offenses) and 65 (Public
Officers) of the Pennsylvania Consolidated Statutes, in other
offenses, further providing for the offense of contingent
compensation; in lobbying disclosure, further providing for
definitions, for registration and for reporting, providing
for equity reporting and for financial assistance reporting
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.
Section 1. Section 7515(a) and (c) of Title 18 of the
Pennsylvania Consolidated Statutes are amended to read:
§ 7515. Contingent compensation.
(a) Offense defined.--
(1) No person may compensate or incur an obligation to
compensate any person to engage in lobbying for compensation
contingent in whole or in part upon the passage, defeat,
approval or veto of legislation or the issuance of an
administrative action.
(2) No person may engage or agree to engage in lobbying
for compensation contingent in whole or in part upon the
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passage, defeat, approval or veto of legislation or the
issuance of an administrative action.
* * *
(c) [Definition] Definitions.--As used in this section, the
[term "lobbying" means an] following words and phrases shall
have the meanings given to them in this subsection unless the
context clearly indicates otherwise:
"Administrative action." The administration of a grant, a
loan or an agreement involving the disbursement of public funds.
"Lobbying." An effort to influence State legislative action
for economic consideration.
Section 2. Section 13A03 of Title 65 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:
* * *
"Third-party affiliate." Any business, organization or
person that is affiliated with a lobbyist, lobbying firm or
principal.
* * *
Section 3. Sections 13A04(e)(4) and 13A05 heading of Title
65 are amended to read:
§ 13A04. Registration.
* * *
(e) Termination.--
* * *
(4) Nothing in this subsection shall be construed to
exempt a lobbyist, lobbying firm or principal from any of the
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requirements in section 13A05 (relating to expense
reporting).
§ 13A05. [Reporting] Expense reporting.
Section 4. Title 65 is amended by adding sections 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 a quarterly
equity report using the computerized filing system developed by
the department. Equity reports shall disclose financial interest
in any legal entity in business-for-profit that a lobbying firm
or lobbyist holds in the 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. As used in this section, the term
"equity report" means a report with a list of each name and
address and financial interest held in any legal entity in
business-for-profit of which a lobbying firm or lobbyist owns
more than 5% of the equity or more than 5% of the assets of
economic interest in indebtedness.
§ 13A05.2 . Financial assistance reporting.
Each lobbyist shall, subject to the penalties under 18
Pa.C.S. § 4904 (relating to unsworn falsification to
authorities), file a quarterly financial assistance report with
the department electronically using the computerized filing
system developed by the department that is consistent with the
purpose of this chapter of the collection of economic
consideration through a third-party affiliate, lobbying firm or
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principal for the successful award of a State or local grant
program which uses Commonwealth money. The quarterly financial
assistance report shall include the lobbyist's registration
number and the amount of economic consideration collected by the
lobbyist for the successful award of a State or local grant
program which uses Commonwealth money.
Section 5. Section 13A06 introductory paragraph of Title 65
is 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):
* * *
Section 6. Section 13A07(d)(5) of Title 65 is amended and
the section is amended by adding a subsection to read:
§ 13A07. Prohibited activities.
* * *
(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.
* * *
(g) Third-party inducement.--A lobbyist, lobbying firm or
principal may not collect economic consideration for lobbying
through a third-party affiliate for a State or local grant
program that uses Commonwealth money.
Section 7. Sections 13A08(c) and (j) and 13A09(g)(2) of
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Title 65 are amended to read:
§ 13A08. Administration.
* * *
(c) Public inspection and copying.--The department shall
make completed registration statements, expense reports, equity
reports, financial assistance 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
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.
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* * *
§ 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).
* * *
Section 8. 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 of the act of April 9, 1929 (P.L.177,
No.175), known as The Administrative Code of 1929, is
repealed.
Section 9. The addition of 65 Pa.C.S. § 13A05.1 is a
continuation of section 816 of the act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code of 1929. The
following apply:
(1) All activities initiated under section 816 of The
Administrative Code of 1929 shall continue and remain in full
force and effect and may be completed under 65 Pa.C.S. §
13A05.1. Orders, regulations, rules and decisions which were
made under section 816 of The Administrative Code of 1929 and
which are in effect on the effective date of this section,
shall remain in full force and effect until revoked, vacated
or modified under 65 Pa.C.S. § 13A05.1. Contracts,
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obligations and collective bargaining agreements entered into
under section 816 of The Administrative Code of 1929 are not
affected nor impaired by the repeal of section 816 of The
Administrative Code of 1929.
(2) Any difference in language between 65 Pa.C.S. §
13A05.1 and section 816 of The Administrative Code of 1929 is
intended only to conform to the style of the Pennsylvania
Consolidated Statutes and is not intended to change or affect
the legislative intent, judicial construction or
administration and implementation of section 816 of The
Administrative Code of 1929.
Section 10. This act shall take effect in 180 days.
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