SENATE AMENDED PRIOR PRINTER'S NOS. 917, 4350, 4417, PRINTER'S NO. 4884 4350
No. 700 Session of 2005
INTRODUCED BY MAHER, BROWNE, CLYMER, ARGALL, ARMSTRONG, BAKER, BOYD, CALTAGIRONE, CAPPELLI, CRAHALLA, CREIGHTON, DALLY, DENLINGER, FAIRCHILD, FREEMAN, GINGRICH, HANNA, HARPER, HENNESSEY, JOSEPHS, KAUFFMAN, LEVDANSKY, MANDERINO, MARKOSEK, McILHATTAN, MUNDY, NAILOR, NICKOL, READSHAW, REICHLEY, ROSS, RUBLEY, SATHER, SCHRODER, SHAPIRO, B. SMITH, STEIL, R. STEVENSON, TANGRETTI, TIGUE, TRUE, WATSON, WRIGHT, HARHART, S. MILLER, GERBER, BEYER, REED, MELIO AND HUTCHINSON, MARCH 14, 2005
SENATE AMENDMENTS TO HOUSE AMENDMENTS, OCTOBER 23, 2006
AN ACT 1 Amending Title 65 (Public Officers) of the Pennsylvania <-- 2 Consolidated Statutes, providing for provisions relating to 3 lobby regulation and disclosure; making an appropriation; and 4 making a related repeal. 5 AMENDING TITLE 65 (PUBLIC OFFICERS) OF THE PENNSYLVANIA <-- 6 CONSOLIDATED STATUTES, FURTHER PROVIDING FOR ETHICAL 7 STANDARDS DEFINITIONS AND FOR LOBBY REGULATION AND 8 DISCLOSURE. 9 The General Assembly of the Commonwealth of Pennsylvania 10 hereby enacts as follows: 11 Section 1. Chapter 13 Heading and sections 1301, 1302, 1303, <-- 12 1304, 1305, 1306, 1307, 1308, 1309, 1310 and 1311 of Title 65 of 13 the Pennsylvania Consolidated Statutes are amended to read: 14 [CHAPTER 13 15 LOBBY REGULATION AND DISCLOSURE 16 § 1301. Short title of chapter.
1 This chapter shall be known and may be cited as the Lobbying 2 Disclosure Act. 3 § 1302. Statement of intent and jurisdiction. 4 (a) Intent.--The Constitution of Pennsylvania recognizes the 5 principle that all free government is founded upon the authority 6 of the people. It further provides that the power to make law in 7 this Commonwealth is vested in the General Assembly and the 8 power to enforce law is vested in the Executive Department. The 9 ability of the people to exercise their fundamental authority 10 and to have confidence in the integrity of the process by which 11 laws are made and enforced in this Commonwealth demands that the 12 identity and the scope of activity of those employed to 13 influence the actions of the General Assembly and the Executive 14 Department be publicly and regularly disclosed. 15 (b) Jurisdiction.--The authority to regulate persons 16 employed to influence the actions of the General Assembly and 17 the Executive Department lies within the jurisdiction of those 18 branches of government. To insure that the intent of this 19 chapter is not evaded and that all such persons are regulated in 20 a fair and equitable manner, lobbyists and the practice of 21 lobbying shall be subject to this chapter, which shall prevail 22 over any other regulation of professional activity when that 23 activity constitutes lobbying. This chapter is not intended to 24 govern professional activities which do not include lobbying and 25 which are properly the subject of regulation by the judicial 26 branch of government or by any government agency. Membership in 27 a regulated profession shall not excuse a lobbyist from 28 compliance with the provisions of this chapter. 29 § 1303. Definitions. 30 The following words and phrases when used in this chapter 20050H0700B4884 - 2 -
1 shall have the meanings given to them in this section unless the 2 context clearly indicates otherwise: 3 "Administrative action." Any of the following: 4 (1) An agency's: 5 (i) proposal, consideration, promulgation or 6 rescission of a regulation; 7 (ii) development or modification of a guideline or a 8 statement of policy; or 9 (iii) approval or rejection of a regulation. 10 (2) The review, revision, approval or disapproval of a 11 regulation under the act of June 25, 1982 (P.L.633, No.181), 12 known as the Regulatory Review Act. 13 (3) The Governor's approval or veto of legislation. 14 (4) The nomination or appointment of an individual as an 15 officer or employee of the Commonwealth. 16 (5) The proposal, consideration, promulgation or 17 rescission of an executive order. 18 "Affiliated political action committee." A political action 19 committee as defined in section 1621(l) of the act of June 3, 20 1937 (P.L.1333, No.320), known as the Pennsylvania Election 21 Code, which has a chairman, a treasurer or another officer who 22 is a principal, an employee of a principal, a lobbyist or an 23 employee of a lobbyist, provided if an employee of a registrant 24 serves as the officer of a political action committee in what is 25 clearly a personal capacity and the goals and mission of that 26 political action committee clearly have no relationship to the 27 goals and mission of the registrant, such political action 28 committee shall not be considered an affiliated political action 29 committee for the purposes of this definition. 30 "Agency." A State agency, board, commission, authority or 20050H0700B4884 - 3 -
1 department. 2 "Commission." The State Ethics Commission. 3 "Compensation." Anything of value, including benefits, 4 received or to be received from a principal by one acting as a 5 lobbyist. 6 "Direct communication." An effort, whether written, oral or 7 by any other medium, made by a lobbyist or principal, directed 8 to a State official or employee, the purpose or foreseeable 9 effect of which is to influence legislative action or 10 administrative action. 11 "Economic consideration." Anything of value offered or 12 received. 13 "Fund." The Lobbying Disclosure Fund established in section 14 1310(b) (relating to filing fees; fund established; 15 regulations). 16 "Gift." As defined in section 1102 (relating to 17 definitions). 18 "Immediate family." An individual's spouse, an individual's 19 child and an individual's parent, brother, sister or like 20 relative-in-law. 21 "Indirect communication." An effort, whether written, oral 22 or by any other medium, to encourage others, including the 23 general public, to take action, the purpose or foreseeable 24 effect of which is to directly influence legislative action or 25 administrative action. The term includes letter-writing 26 campaigns, mailings, telephone banks, print and electronic media 27 advertising, billboards, publications and educational campaigns 28 on public issues. The term does not include regularly published 29 periodic newsletters primarily designed for and distributed to 30 members of a bona fide association or charitable or fraternal 20050H0700B4884 - 4 -
1 nonprofit corporation. 2 "Legislation." Bills, resolutions, amendments and 3 nominations pending or proposed in either the Senate or the 4 House of Representatives. The term includes any other matter 5 which may become the subject of action by either chamber of the 6 General Assembly. 7 "Legislative action." An action taken by a State official or 8 employee involving the preparation, research, drafting, 9 introduction, consideration, modification, amendment, approval, 10 passage, enactment, tabling, postponement, defeat or rejection 11 of legislation; legislative motions; overriding or sustaining a 12 veto by the Governor; or confirmation of appointments by the 13 Governor or of appointments to public boards or commissions by a 14 member of the General Assembly. 15 "Lobbying." An effort to influence legislative action or 16 administrative action. The term includes: 17 (1) providing any gift, entertainment, meal, 18 transportation or lodging to a State official or employee for 19 the purpose of advancing the interest of the lobbyist or 20 principal; and 21 (2) direct or indirect communication. 22 "Lobbyist." Any individual, firm, association, corporation, 23 partnership, business trust or business entity that engages in 24 lobbying on behalf of a principal for economic consideration. 25 The term includes an attorney who engages in lobbying. 26 "Principal." Any individual, firm, association, corporation, 27 partnership, business trust or business entity: 28 (1) on whose behalf a lobbyist influences or attempts to 29 influence an administrative action or a legislative action; 30 or 20050H0700B4884 - 5 -
1 (2) that engages in lobbying on the principal's own 2 behalf. 3 "Registrant." A registered lobbyist or a registered 4 principal. 5 "Regulation." Any rule, regulation or order in the nature of 6 a rule or regulation, including formal and informal opinions of 7 the Attorney General, of general application and future effect, 8 promulgated by an agency under statutory authority in the 9 administration of a statute administered by or relating to the 10 agency, or prescribing the practice or procedure before the 11 agency. 12 "State official or employee." An individual elected or 13 appointed to a position in State government or employed by State 14 government, whether compensated or uncompensated, who is 15 involved in legislative action or administrative action. 16 § 1304. Registration. 17 (a) General rule.--Unless excluded under section 1306 18 (relating to exemption from registration and reporting), a 19 lobbyist or a principal must register with the commission within 20 ten days of acting in any capacity as a lobbyist or principal. 21 Registration shall be biennial and be coincident with the terms 22 of the members of the House of Representatives. 23 (b) Principals.-- 24 (1) A principal required to register shall file the 25 following information with the commission: 26 (i) Name. 27 (ii) Permanent address. 28 (iii) Daytime telephone number. 29 (iv) Name and nature of business. 30 (v) Name, registration number and acronyms of 20050H0700B4884 - 6 -
1 affiliated political action committees. 2 (vi) Name and permanent business address of each 3 individual who will for economic consideration engage in 4 lobbying on the principal's behalf. 5 (2) If an organization or association is a principal, 6 the number of dues-paying members in the past calendar year 7 shall also be disclosed. 8 (c) Lobbyist.-- 9 (1) A lobbyist who is required to register shall file 10 the following information with the commission: 11 (i) Name. 12 (ii) Permanent business address. 13 (iii) Daytime telephone number. 14 (iv) A recent picture of the lobbyist. 15 (v) Name, permanent business address and daytime 16 telephone number of the principal the lobbyist 17 represents. 18 (vi) Name, registration number and acronyms of 19 affiliated political action committees. 20 (2) Each lobbyist shall file a separate registration 21 statement for each principal he or she represents. 22 (d) Amendments.-- 23 (1) When there is a change of information required for 24 the registration statement under subsection (b)(1) or (c), an 25 amended statement shall be filed with the commission within 26 14 days after the change occurs. 27 (2) When there is a change in information required for 28 the registration statement under subsection (b)(2), an 29 amended statement shall be filed with the commission within 30 14 days of the end of the year in which the change occurs. 20050H0700B4884 - 7 -
1 (e) Termination.--A lobbyist or a principal may terminate 2 registration by filing notice with the commission. Within 30 3 days of filing the notice, the lobbyist or principal shall file 4 a termination report, which shall include all information 5 required by section 1305 (relating to reporting) through the 6 final day of lobbying activity. After a reasonable review of the 7 termination report but not later than 90 days after receipt of 8 the notice, the commission shall issue to the lobbyist or 9 principal a letter stating that the registrant has terminated 10 registration. The filing of notice or a termination report shall 11 not affect the commission's authority to conduct investigations 12 and hearings pursuant to section 1308(h) (relating to 13 administration and enforcement). No lobbying may occur after the 14 filing of notice unless the lobbying is pursuant to a separate 15 registration statement which is filed with the commission and 16 which, at the time of the lobbying, has not been terminated. 17 § 1305. Reporting. 18 (a) General rule.--A lobbyist as required by subsection 19 (b)(6) or a registered principal shall, under oath or 20 affirmation, file quarterly expense reports with the commission. 21 (b) Content.-- 22 (1) Reports must list the names of all lobbyists by whom 23 the lobbying is conducted and the general subject matter or 24 issue being lobbied. 25 (2) Expense reports must contain the following 26 categories: 27 (i) A single aggregate good faith estimate of the 28 total amount spent for personnel and office expenses 29 related to lobbying. This subparagraph includes salaries 30 and other forms of compensation, benefits, vehicle 20050H0700B4884 - 8 -
1 allowances, bonuses and reimbursable expenses for those 2 involved in lobbying. If compensation is to be reported 3 by or for an individual or entity whose lobbying is 4 incidental to regular employment, it shall be sufficient 5 to report a good faith prorated estimate based on the 6 value of the time devoted to lobbying. Reportable 7 personnel costs include costs for lobbying staff, 8 research and monitoring staff, consultants, lawyers, 9 lobbyists, publications and public relations staff, 10 technical staff and clerical and administrative support 11 staff who engage in lobbying but are exempt from 12 reporting under section 1306(6) (relating to exemption 13 from registration and reporting). This subparagraph 14 includes costs for offices, equipment and supplies 15 utilized for lobbying. 16 (ii) A single aggregate good faith estimate of the 17 total amount spent for direct communication. 18 (iii) The total costs for gifts, entertainment, 19 meals, transportation, lodging and receptions given to or 20 provided to State officials or employees or their 21 immediate families. 22 (iv) A single aggregate good faith estimate of the 23 total amount spent for indirect communication. 24 (3) In addition to reporting the totals required under 25 this subsection, the expense report must identify, by name, 26 position and each occurrence, a State official or employee 27 who receives from a principal or lobbyist anything of value 28 which must be included in the statement under section 29 1105(b)(6) or (7) (relating to statement of financial 30 interests) as implemented by section 1105(d). 20050H0700B4884 - 9 -
1 (i) For purposes of this chapter, the amount 2 referred to in section 1105(b)(7) shall be considered an 3 aggregate amount per year. 4 (ii) Written notice must be given to each public 5 official or employee of inclusion in the expense report 6 within seven days of the report's submission to the 7 commission. Notice under this subparagraph shall include 8 the information which will enable the public official or 9 employee to comply with section 1105(b)(6) and (7). For 10 purposes of this chapter and Chapter 11 (relating to 11 ethics standards and financial disclosure), section 12 1105(b)(6) and (7) shall constitute mutually exclusive 13 categories. 14 (iii) Regulations shall be promulgated under section 15 1310(c) (relating to filing fees; fund established; 16 regulations) to define mutually exclusive categories 17 under section 1105(b)(6) and (7) and to determine whether 18 a thing of value is subject to disclosure under section 19 1105(b)(6) or (7). 20 (4) A lobbyist must sign the reports submitted by each 21 principal represented to attest to the validity and accuracy 22 to the best of the lobbyist's knowledge. A lobbyist may 23 attach a statement to the report of any principal, describing 24 the limits of the lobbyist's knowledge concerning the 25 expenditures contained in the report. 26 (5) The expense report shall also include the name, 27 permanent business address and daytime telephone number of 28 any individual, firm, association, corporation, partnership, 29 business trust or business entity which contributed more than 30 10% of the total resources received by the principal during 20050H0700B4884 - 10 -
1 the reporting period. 2 (6) A lobbyist shall submit a separate report if, during 3 the reporting period, the lobbyist engaged in lobbying which 4 was not contained in the reports filed by the principal or 5 principals represented by the lobbyist. A separate lobbyist 6 report shall contain the identity of the principal for whom 7 such lobbying was performed and shall contain all information 8 required under paragraphs (2) and (3). 9 (7) A registered principal or registered lobbyist that 10 attempts to influence an agency's preparing, bidding, 11 entering into or approving a contract shall ensure that the 12 related expenses are included under paragraph (2). 13 (c) Records retention.--A registrant shall retain all 14 documents reasonably necessary to substantiate the reports to be 15 made under this section for four years from the date of filing 16 the subject report. Upon request by the Office of the Attorney 17 General or the commission, these materials shall be made 18 available for inspection within a reasonable period of time. 19 (d) Thresholds for reporting.--An expense report shall be 20 filed when total expenses for lobbying exceed $500 for a 21 registered principal or a registered lobbyist in a reporting 22 period. In a reporting period in which total expenses are $500 23 or less, a statement to that effect shall be filed. 24 (e) Voluntary disclosure.--Nothing in this section shall 25 prevent a principal or lobbyist from disclosing expenses in 26 greater detail than required. 27 § 1306. Exemption from registration and reporting. 28 The following individuals and activities shall be exempt from 29 registration under section 1304 (relating to registration) and 30 reporting under section 1305 (relating to reporting): 20050H0700B4884 - 11 -
1 (1) An individual who limits lobbying activities to 2 preparing testimony and testifying before a committee of the 3 legislature or participating in an administrative proceeding 4 of an agency. 5 (2) An individual who is an employee of an entity 6 engaged in the business of publishing, broadcasting or 7 televising while engaged in the gathering and dissemination 8 of news and comment thereon to the general public in the 9 ordinary course of business. 10 (3) Any of the following: 11 (i) An individual who does not receive compensation, 12 other than traveling expenses, for lobbying. 13 (ii) An individual whose compensation for lobbying, 14 from all principals represented, does not exceed $2,500 15 in the aggregate during any reporting period. 16 (iii) An individual who engages in lobbying on 17 behalf of the individual's employer and where lobbying 18 activity represents less than the equivalent of $2,500 of 19 the employee's time during any reporting period, based on 20 an hourly proration of the employee's compensation. 21 (iv) A principal whose total expenses for lobbying 22 purposes do not exceed $2,500 during any reporting 23 period. 24 (4) Any of the following: 25 (i) An elected State officer acting in an official 26 capacity. 27 (ii) A State executive officer appointed by the 28 Governor acting in an official capacity. 29 (iii) An elected or appointed official or employee 30 of a political subdivision acting in an official 20050H0700B4884 - 12 -
1 capacity. 2 (iv) An employee of the Commonwealth or independent 3 agency of the Commonwealth acting in an official 4 capacity. 5 (5) An individual representing a bona fide church of 6 which the individual is a member and the purpose of the 7 lobbying is solely for the purpose of protecting the 8 constitutional right to the free exercise of religion. 9 (6) An employee, who is not a registered lobbyist, of a 10 corporation which: 11 (i) is registered as a principal under section 1304; 12 (ii) has one or more registered lobbyists; and 13 (iii) includes in its reports under section 1305 all 14 of the employee's expenses related to lobbying. 15 § 1307. Prohibited activities. 16 (a) Contingent compensation.-- 17 (1) No one may compensate or incur an obligation to 18 compensate any lobbyist, principal or individual to engage in 19 lobbying for compensation contingent in whole or in part upon 20 any of the following: 21 (i) Passage or defeat, or approval or veto, of 22 legislation. 23 (ii) Occurrence or nonoccurrence of an 24 administrative action. 25 (2) No lobbyist, principal or individual may engage or 26 agree to engage in lobbying for compensation contingent in 27 whole or in part upon any of the following: 28 (i) Passage or defeat, or approval or veto, of 29 legislation. 30 (ii) Occurrence or nonoccurrence of an 20050H0700B4884 - 13 -
1 administrative action. 2 (b) Political committees.--A lobbyist may not serve as a 3 treasurer or another officer for a candidate's political 4 committee or a candidate's political action committee. 5 (c) Fee restrictions.--A lobbyist may not charge a fee or 6 receive compensation or economic consideration based upon an 7 understanding, either written or oral, that any part of the fee, 8 compensation or economic consideration will be converted into a 9 contribution to a candidate for public office or a political 10 committee. 11 (d) Falsification.--No lobbyist or principal may, for the 12 purpose of influencing legislative action or administrative 13 action, transmit, utter or publish to any State official or 14 employee any communication, knowing that such communication or 15 any signature on the communication is false, forged, counterfeit 16 or fictitious. 17 § 1308. Administration and enforcement. 18 (a) Criminal enforcement.--If the commission believes an 19 intentional violation of this chapter has been committed, it 20 shall refer all relevant documents and other information to the 21 Office of Attorney General. 22 (b) Attorney General.--In addition to the authority 23 conferred upon the Attorney General under the act of October 15, 24 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act, 25 the Attorney General has the authority to investigate and 26 prosecute a violation of this chapter. 27 (c) Advice and opinions.--The commission shall provide 28 advice and opinions in accordance with procedures set forth in 29 section 1107 (relating to powers and duties of commission) to a 30 lobbyist, principal or State official or employee who has a 20050H0700B4884 - 14 -
1 question regarding compliance with this chapter. A principal, a 2 lobbyist or an individual who acts in good faith based on the 3 written advice or opinion of the commission shall not be held 4 liable for a violation of this chapter. 5 (d) Public inspection and copying.--The commission shall 6 make completed registration statements, expense reports, 7 termination notices and termination reports which have been 8 filed with the commission available for public inspection and 9 provide copies of these documents at a price which shall not 10 exceed the actual cost of copying. Documents that are maintained 11 and reproducible in an electronic format shall be provided in 12 that format upon request. 13 (e) Annual reporting.--The commission shall prepare and 14 publish an annual report on lobbying activities in this 15 Commonwealth. The commission shall also annually publish a 16 listing of principals, identifying affiliated political action 17 committees and lobbyists, and a listing of lobbyists, 18 identifying affiliated political action committees and 19 principals. 20 (f) Retention of records.--Completed registration 21 statements, expense reports, termination notices and termination 22 reports shall remain on file with the commission for a four-year 23 period. 24 (g) Audits.--The commission shall initiate, by lottery, 25 random annual audits of the registration statements and 26 disclosure reports in sufficient number to ensure compliance 27 with this chapter. The audit report and findings shall be 28 confidential; however, the commission shall include the relevant 29 portion of an audit as part of its findings of fact in a 30 commission order which results from an investigation arising out 20050H0700B4884 - 15 -
1 of an audit. 2 (h) Investigation and hearings.--The commission, through its 3 executive director, may initiate an investigation and hold a 4 hearing concerning negligent conduct by a lobbyist or principal 5 in accordance with sections 1107 and 1108 (relating to 6 investigations by commission). 7 (i) Directory.--On or before May 1 of each odd-numbered 8 year, the commission shall produce and distribute a directory of 9 all registered lobbyists, including photographs. Copies of this 10 directory shall be made available to the public at a price not 11 to exceed the actual cost of production. All revenue received by 12 the commission from the sales of this directory shall be 13 deposited into the fund. 14 (j) Computer file.--The Legislative Data Processing 15 Committee shall maintain updated registration statements, 16 expense reports, termination notices and termination reports. 17 (k) Cost-of-living adjustment.--On a biennial basis 18 commencing in January 2002, the commission shall review the 19 threshold for reporting under section 1305(d) (relating to 20 reporting) and the threshold for exemption under section 21 1306(3)(ii) through (iv) (relating to exemption from 22 registration and reporting) and may increase these amounts to 23 rates deemed reasonable for assuring appropriate disclosure. The 24 commission shall publish any such adjusted threshold amounts in 25 the Pennsylvania Bulletin by June 1, 2002, and every two years 26 thereafter as necessary. 27 § 1309. Penalties. 28 (a) Notice of noncompliance.--The commission shall issue a 29 notice of noncompliance to any lobbyist, principal or individual 30 that has failed to register or report as required by this 20050H0700B4884 - 16 -
1 chapter. The notice shall state the nature of the alleged 2 noncompliance and the civil and criminal penalties for failure 3 to register, failure to file or filing a report containing a 4 false statement. The notice shall also advise of the right to a 5 hearing before the commission and the time and manner in which 6 to request a hearing. 7 (b) Hearing.--If a hearing is requested, the commission 8 shall determine at the hearing whether the recipient of the 9 notice is required to register or report under this chapter, 10 whether the failure to register or report was negligent and, if 11 the failure was negligent, the amount of the civil penalty to be 12 imposed. If the commission finds that the failure to register or 13 report was intentional, it shall refer the matter to the 14 Attorney General for investigation and prosecution. Hearings 15 under this subsection shall be conducted by the commission in 16 accordance with sections 1107(14) (relating to powers and duties 17 of commission) and 1108(e) (relating to investigations by 18 commission). 19 (c) Negligent failure to register or report.--Negligent 20 failure to register or report as required by this chapter is 21 punishable by a civil penalty not exceeding $50 for each late 22 day. After a hearing under subsection (b), in the case of 23 negligent failure to register or report, the commission may, 24 upon the majority vote of its members, levy a civil penalty as 25 provided for in this subsection. The total amount of the civil 26 penalty levied shall not be limited by any other provision of 27 law. The commission shall have standing to apply to Commonwealth 28 Court to seek enforcement of an order imposing a civil penalty 29 under this section. 30 (d) Failure to comply after notice.--After notice of 20050H0700B4884 - 17 -
1 noncompliance and after a hearing, if one is requested, a 2 lobbyist or principal who fails to comply with the requirements 3 of this chapter may be prohibited from lobbying for up to five 4 years. The prohibition shall be imposed as provided by 5 subsection (e)(4). 6 (e) Intentional violations.-- 7 (1) Any lobbyist, principal or individual that 8 intentionally fails to register or report as required by this 9 chapter commits a misdemeanor of the second degree. 10 (2) A registrant that files a report under this chapter 11 with knowledge that the report contains a false statement 12 commits a misdemeanor of the second degree. 13 (3) Except as set forth in paragraph (1) or (2), any 14 lobbyist, principal or individual that intentionally violates 15 this chapter commits a misdemeanor of the third degree. 16 (4) In addition to the criminal penalties imposed by 17 this subsection, the commission may prohibit a lobbyist or 18 principal from lobbying for up to five years for doing an act 19 which constitutes an offense under this subsection. No 20 criminal prosecution or conviction shall be required for the 21 imposition of the prohibition authorized by this paragraph. 22 The prohibition under this paragraph shall not be imposed 23 unless the defendant has been afforded the opportunity for a 24 hearing, which shall be conducted by the commission in 25 accordance with sections 1107(14) and 1108(e). 26 § 1310. Filing fees; fund established; regulations. 27 (a) Filing fees.--A principal or lobbyist required to be 28 registered under this chapter shall pay a biennial filing fee of 29 $100 to the commission. 30 (b) Fund established.--All money received from filing fees 20050H0700B4884 - 18 -
1 under subsection (a) shall be deposited in a restricted receipts 2 account to be known as the Lobbying Disclosure Fund. The money 3 deposited in the fund is hereby appropriated to the commission 4 as a continuing appropriation for the exclusive purpose of 5 carrying out the provisions of this chapter. 6 (c) Regulations.--A committee comprised of the Secretary of 7 the Senate, the Chief Clerk of the House of Representatives, the 8 chairman of the State Ethics Commission, the Attorney General, 9 the Secretary of the Commonwealth, the Auditor General and the 10 General Counsel, or their designees, shall have continuing 11 authority to promulgate regulations necessary to carry out this 12 chapter. The chairman of the commission shall be designated as 13 the chairman of the committee. The initial proposed regulations 14 shall be submitted within 180 days of the effective date of this 15 section to the Independent Regulatory Review Commission under 16 section 5 of the act of June 25, 1982 (P.L.633, No.181), known 17 as the Regulatory Review Act. Any meeting at which the committee 18 plans to approve proposed regulations shall be held in 19 accordance with Chapter 7 (relating to open meetings). The 20 committee shall also prepare and publish a manual setting forth 21 guidelines for accounting and reporting. The regulations and 22 manual shall be drafted to accommodate the use of computerized 23 recordkeeping, electronic filing of the reports provided for 24 under this chapter and retention of registration statements and 25 reports provided for under this chapter by electronic means. The 26 Department of State shall provide sufficient staff and other 27 administrative support to assist the committee. 28 § 1311. Severability. 29 (a) General rule.--Except as provided in subsection (b): 30 (1) The provisions of this chapter are severable. 20050H0700B4884 - 19 -
1 (2) If any provision of this chapter or its application 2 to any person or circumstance is held invalid, the invalidity 3 shall not affect other provisions or applications of this 4 chapter which can be given effect without the invalid 5 provision or application. 6 (b) Practice of law.--If any provision of this chapter or 7 its application to any person or circumstance is held invalid on 8 the basis of improper regulation of the practice of law, the 9 remaining provisions or applications of this chapter are void.] 10 Section 2. Title 65 is amended by adding a chapter to read: 11 CHAPTER 13-A 12 LOBBYING DISCLOSURE 13 Sec. 14 1301-A. Short title of chapter. 15 1302-A. Statement of intent and jurisdiction. 16 1303-A. Definitions. 17 1304-A. Registration. 18 1305-A. Reporting. 19 1306-A. Exemption from registration and reporting. 20 1307-A. Prohibited activities. 21 1308-A. Administration and enforcement. 22 1309-A. Penalties. 23 1310-A. Filing fees; fund established; regulations. 24 1311-A. Grounds for impeachment. 25 1312-A. Use of public space. 26 1313-A. Severability. 27 § 1301-A. Short title of chapter. 28 This chapter shall be known and may be cited as the Lobbying 29 Disclosure Act. 30 § 1302-A. Statement of intent and jurisdiction. 20050H0700B4884 - 20 -
1 (a) Intent.--The Constitution of Pennsylvania recognizes the 2 principle that all free government is founded upon the authority 3 of the people. It further provides that the power to make law in 4 this Commonwealth is vested in the General Assembly and the 5 power to enforce law is vested in the Executive Department. The 6 ability of the people to exercise their fundamental authority 7 and to have confidence in the integrity of the process by which 8 laws are made and enforced in this Commonwealth demands that the 9 identity and the scope of activity of those who attempt to 10 influence the actions of the General Assembly and the Executive 11 Department be publicly and regularly disclosed. 12 (b) Jurisdiction.--The authority to regulate persons 13 employed to influence the actions of the General Assembly and 14 the Executive Department lies within the jurisdiction of those 15 branches of government. To ensure that the intent of this 16 chapter is not evaded and that all such persons are regulated in 17 a fair and equitable manner, lobbyists and the practice of 18 lobbying shall be subject to this chapter, which shall prevail 19 over any other regulation of professional activity when that 20 activity constitutes lobbying. This chapter is not intended to 21 govern professional activities which do not include lobbying and 22 which are properly the subject of regulation by the judicial 23 branch of government or by any government agency. Membership in 24 a regulated profession shall not excuse a lobbyist from 25 compliance with the provisions of this chapter. 26 § 1303-A. Definitions. 27 The following words and phrases when used in this chapter 28 shall have the meanings given to them in this section unless the 29 context clearly indicates otherwise: 30 "Administrative action." Any of the following: 20050H0700B4884 - 21 -
1 (1) An agency's: 2 (i) proposal, consideration, promulgation or 3 rescission of a regulation; 4 (ii) development or modification of a statement of 5 policy; 6 (iii) approval or rejection of a regulation; 7 (iv) procurement of supplies, services and 8 construction under 62 Pa.C.S. (relating to procurement), 9 except for any emergency procurement made under 62 10 Pa.C.S. § 516 (relating to emergency procurement). 11 (2) The review, revision, approval or disapproval of a 12 regulation under the act of June 25, 1982 (P.L.633, No.181), 13 known as the Regulatory Review Act. 14 (3) The Governor's approval or veto of legislation. 15 (4) The nomination or appointment of an individual as an 16 officer or employee of the Commonwealth. 17 (5) The proposal, consideration, promulgation or 18 rescission of an executive order. 19 "Affiliated political action committee." A political action 20 committee as defined in section 1621(l) of the act of June 3, 21 1937 (P.L.1333, No.320), known as the Pennsylvania Election 22 Code, which has a chairman, a treasurer or another officer who 23 is a principal, an employee of a principal, a lobbyist or an 24 employee of a lobbyist, provided if an employee of a registrant 25 serves as the officer of a political action committee in what is 26 clearly a personal capacity and the goals and mission of that 27 political action committee clearly have no relationship to the 28 goals and mission of the registrant, such political action 29 committee shall not be considered an affiliated political action 30 committee for the purposes of this definition. 20050H0700B4884 - 22 -
1 "Agency." A State agency, board, commission, authority or 2 department. 3 "Attorney at law." A person admitted to practice law in this 4 Commonwealth. 5 "Board." The Disciplinary Board of the Supreme Court of 6 Pennsylvania. 7 "Commission." The State Ethics Commission. 8 "Compensation." Anything of value, including benefits, 9 received or to be received from a principal by one acting as a 10 lobbyist. 11 "Department." The Department of State of the Commonwealth. 12 "Direct influence." Any effort to lobby or communicate to a 13 State official or State employee, which is intended to affect 14 legislative or administrative action. 15 "Direct influence expense." Any expenditure for direct 16 influence, including any expenditure for research, monitoring, 17 technical, clerical or administrative services provided by a 18 lobbyist, lobbying firm or the staff of a lobbyist or lobbying 19 firm, in support of direct influence. The term does not include 20 any office expenses. 21 "Economic consideration." Anything of value offered or 22 received. 23 "Fund." The Lobbying Disclosure Fund established in section 24 1310-A(b) (relating to filing fees; fund established; 25 regulations). 26 "Gift." Anything which is given or received without 27 consideration of equal or greater value. 28 "Hospitality." Includes all of the following: 29 (1) Meals. 30 (2) Beverages. 20050H0700B4884 - 23 -
1 (3) Recreation and entertainment. 2 "Immediate family." An individual's spouse, an individual's 3 child and an individual's parent, brother, sister or like 4 relative-in-law. 5 "Indirect influence." Any effort to encourage others, 6 including the general public, to communicate to a State official 7 or employee to affect legislative or administrative action. The 8 term includes activities such as letter-writing campaigns, 9 mailings, telephone banks, print and electronic media 10 advertising, billboards, publications and educational campaigns. 11 The term does not include regularly published periodic 12 newsletters primarily designed for and distributed to members of 13 a bona fide association or charitable or fraternal nonprofit 14 corporation. 15 "Indirect influence expense." Any expenditure for indirect 16 influence, including any expenditure for research, monitoring, 17 technical, clerical or administrative services provided by a 18 lobbyist or lobbying firm, or the staff of a lobbyist or 19 lobbying firm, in support of indirect influence. The term does 20 not include any office expenses. 21 "Legislation." Bills, resolutions, amendments and 22 nominations pending or proposed in either the Senate or the 23 House of Representatives. The term includes any other matter 24 which may become the subject of action by either chamber of the 25 General Assembly. 26 "Legislative action." An action taken by a State official or 27 employee involving the preparation, research, drafting, 28 introduction, consideration, modification, amendment, approval, 29 passage, enactment, tabling, postponement, defeat or rejection 30 of legislation; legislative motions; overriding or sustaining a 20050H0700B4884 - 24 -
1 veto by the Governor; or confirmation of appointments by the 2 Governor or of appointments to public boards or commissions by a 3 member of the General Assembly. 4 "Lobbying." An effort to influence legislative action or 5 administrative action. The term includes: 6 (1) Communicating in writing, orally, electronically or 7 by any other medium to a State official or employee for the 8 purpose of influencing legislative or administrative action. 9 (2) Providing any gift, hospitality, transportation or 10 lodging to a State official or employee for the purpose of 11 advancing the interest of the lobbyist or principal. 12 "Lobbying firm." A business entity that engages in lobbying 13 for economic consideration on behalf of a principal, or 14 principals, other than the business entity itself. 15 "Lobbyist." Any individual, firm, association, corporation, 16 partnership, business trust or other business entity that 17 engages in lobbying on behalf of a principal for economic 18 consideration. 19 "Office expense." Any expenditure for offices, equipment or 20 supplies other than personnel expenses. 21 "Personnel expense." Any expenditure for salaries or other 22 forms of compensation, benefits, vehicle allowances, bonuses and 23 reimbursable expenses. 24 "Principal." Any individual, firm, association, corporation, 25 partnership, business trust or other business entity: 26 (1) on whose behalf a lobbyist influences or attempts to 27 influence an administrative action or a legislative action; 28 or 29 (2) that engages in lobbying on the principal's own 30 behalf. 20050H0700B4884 - 25 -
1 "Registrant." A registered lobbyist, lobbying firm or a 2 registered principal. 3 "Regulation." Any rule, regulation, statement of policy or 4 order in the nature of a rule or regulation, including formal 5 and informal opinions of the Attorney General, of general 6 application and future effect, promulgated by an agency under 7 statutory authority in the administration of a statute 8 administered by or relating to the agency, or prescribing the 9 practice or procedure before the agency. 10 "Reporting period." Any of the following periods: 11 (1) January 1 through March 31. 12 (2) April 1 through June 30. 13 (3) July 1 through September 30. 14 (4) October 1 through December 31. 15 "State official or employee." An individual elected or 16 appointed to a position in State government or employed by State 17 government, whether compensated or uncompensated, who is 18 involved in legislative action or administrative action. 19 "Vendor." A person that, for economic consideration, sells 20 or provides a service or supply or engages in construction. The 21 term does not include an attorney at law, a lobbyist or lobbying 22 firm. 23 § 1304-A. Registration. 24 (a) General rule.--Unless excluded under section 1306-A 25 (relating to exemption from registration and reporting), a 26 lobbyist, principal or lobbying firm must register with the 27 department biennially. Each biennial registration cycle shall 28 begin on January 1 of each odd-numbered year and shall conclude 29 on December 31 of the immediately following even numbered year. 30 The following shall apply: 20050H0700B4884 - 26 -
1 (1) A lobbyist or lobbying firm must register within ten 2 days of: 3 (i) receiving compensation for lobbying from all 4 principals represented in excess of $2,500 in the 5 aggregate during any reporting period; or 6 (ii) engaging in lobbying on behalf of his employer 7 where lobbying activity accounts for over $2,500 of the 8 employee's time during any reporting period based on an 9 hourly proration of the employee's compensation. 10 (2) A principal must register within ten days of 11 expending in excess of $2,500 for lobbying purposes during 12 any reporting period. 13 (b) Registration requirements for principals and lobbying 14 firms.-- 15 (1) A principal or lobbying firm required to register 16 under subsection (a) shall file the following information 17 with the department: 18 (i) Name. 19 (ii) Permanent address. 20 (iii) Daytime telephone number. 21 (iv) Name and nature of business. 22 (v) Name, registration number and acronyms of all 23 affiliated political action committees. 24 (vi) Name, permanent business address and daytime 25 telephone number of each individual or entity who will 26 for economic consideration engage in lobbying on the 27 principal's or lobbying firm's behalf. 28 (vii) A principal shall disclose in its filing the 29 name, registration number and acronyms of all candidate 30 political committees for which the principal serves as a 20050H0700B4884 - 27 -
1 treasurer or other officer. 2 (viii) A lobbying firm shall disclose in its filing 3 the name, permanent business address and telephone number 4 of each principal represented. 5 (2) If an organization or association is a principal, 6 the number of dues-paying members in the past calendar year 7 shall also be disclosed. 8 (c) Registration requirements for individuals who are 9 lobbyists.-- 10 (1) A lobbyist who is required to register under 11 subsection (a) shall file the following information with the 12 department: 13 (i) Name. 14 (ii) Permanent business address. 15 (iii) Daytime telephone number. 16 (iv) A recent photograph of the lobbyist. 17 (v) Name, permanent business address and daytime 18 telephone number of each principal the lobbyist 19 represents. 20 (vi) Name of any lobbying firm with which the 21 lobbyist has a relationship involving economic 22 consideration. 23 (vii) Name, registration number and acronyms of all 24 affiliated political action committees. 25 (viii) Name, registration number and acronyms of all 26 candidate political committees of which the lobbyist is 27 an officer, who must be included in a registration 28 statement under section 1624(b)(2) and (3) of the act of 29 June 3, 1937 (P.L.1333, No.320), known as the 30 Pennsylvania Election Code. 20050H0700B4884 - 28 -
1 (2) Each lobbyist shall file a single registration 2 identifying all principals he or she represents. 3 (d) Amendments.-- 4 (1) When there is a change in the information required 5 for registration under subsection (b)(1) or (c)(1), an 6 amended registration shall be filed with the department 7 within 14 days after the change occurs. 8 (2) When there is a change in information required for 9 registration under subsection (b)(2), an amended registration 10 shall be filed with the department within 14 days of the end 11 of the year in which the change occurs. 12 (e) Termination.--A lobbyist, a principal or a lobbying firm 13 may terminate registration by filing a notice with the 14 department. No later than 15 days after receipt of the notice, 15 the department shall issue a letter stating that the registrant 16 has terminated registration. The filing of a notice shall not 17 affect the commission's authority to conduct investigations and 18 hearings pursuant to section 1308-A(h) (relating to 19 administration and enforcement). No lobbying may occur after the 20 filing of a notice unless the lobbying is pursuant to a separate 21 registration which is filed with the department and which, at 22 the time of the lobbying, has not been terminated. 23 § 1305-A. Reporting. 24 (a) General rule.--A registered principal shall, under oath 25 or affirmation, file quarterly expense reports with the 26 department no later than 30 days after the last day of the 27 quarter. 28 (b) Content.--The following shall apply: 29 (1) Each expense report must include the general subject 30 matter or issues being lobbied. 20050H0700B4884 - 29 -
1 (2) Each expense report must contain the following 2 categories: 3 (i) The total costs for direct influence expenses. 4 (ii) The total costs for indirect influence 5 expenses. 6 (iii) The total costs for gifts, hospitality, 7 transportation, lodging and receptions given to or 8 provided to State officials or employees or their 9 immediate families. 10 (3) In addition to reporting the totals required under 11 this subsection, the expense report must identify, by name, 12 position and each occurrence, a State official or employee 13 who receives from a principal or lobbyist anything of value 14 which must be reported on the statement required by Ch. 11 15 (relating to ethics standards and financial disclosure) under 16 section 1105(b)(6) or (7) (relating to statement of financial 17 interests) as adjusted by section 1105(d). This paragraph 18 shall not apply to anything of value received from immediate 19 family when the circumstances make it clear that motivation 20 for the action was a personal or family relationship. 21 (i) For purposes of this chapter, the amount 22 referred to in section 1105(b)(7) shall not include the 23 cost of any reception, which the State official or 24 employee attends in connection with public office or 25 employment. 26 (ii) Written notice must be given to each public 27 official or employee identified in an expense report 28 under this paragraph within five days of the report's 29 submission to the department. Notice under this 30 subparagraph shall include information upon which a 20050H0700B4884 - 30 -
1 public official or employee may rely in complying with 2 section 1105(b)(6) and (7). For purposes of this chapter 3 and Chapter 11 (relating to ethics standards and 4 financial disclosure), section 1105(b)(6) and (7) shall 5 constitute mutually exclusive categories. 6 (iii) Regulations shall be promulgated under section 7 1310-A(d) (relating to filing fees; fund established; 8 regulations) to define mutually exclusive categories 9 under section 1105(b)(6) and (7) and to determine whether 10 a thing of value is subject to disclosure under section 11 1105(b)(6) or (7). 12 (4) The expense report shall also include the name, 13 permanent business address and daytime telephone number of 14 any individual, firm, association, corporation, partnership, 15 business trust or other business entity which contributed 16 more than 10% of the total resources received by the 17 principal during the reporting period. 18 (5) A lobbying firm or a lobbyist not associated with a 19 lobbying firm shall submit a report if during the reporting 20 period the lobbyist or lobbying firm engaged in lobbying 21 which was not contained in any report filed by a principal or 22 principals represented. 23 (6) A registered principal that attempts, or that 24 retains a lobbyist or lobbying firm to attempt, to influence 25 an agency's preparing, bidding, entering into or approving a 26 contract shall ensure that the related expenses are included 27 under paragraph (2). 28 (7) A lobbying firm or a lobbyist not associated with a 29 lobbying firm shall submit a report if the lobbyist or 30 lobbying firm engaged in lobbying for economic consideration 20050H0700B4884 - 31 -
1 on behalf of any entity that is exempt under section 1306- 2 A(6), (7), (8) and (9) (relating to exemption from 3 registration and reporting). 4 (8) For each category enumerated in paragraph (2)(i), 5 (ii) and (iii) and for each State official or employee 6 identified under paragraph (3), the report shall include both 7 the amount incurred during the quarter and the cumulative 8 amount incurred from January 1 through the end of the 9 applicable quarter. 10 (c) Records retention.--A registrant shall retain all 11 documents reasonably necessary to substantiate a report to be 12 made under this section for four years from the date of filing 13 the report. Upon request by the Office of Attorney General, the 14 board, the department or the commission, these materials shall 15 be made available for inspection within a reasonable period of 16 time. 17 (d) Thresholds for quarterly reporting.--A registered 18 principal shall file an expense report when the principal's 19 aggregate expenses for lobbying or gifts exceed $2,500 in a 20 reporting period. In a reporting period in which total expenses 21 are $2,500 or less, the principal shall file a statement to that 22 effect. 23 (e) Communication.--Whenever any person makes an expenditure 24 for indirect influence under this chapter, for the purpose of 25 disseminating or initiating communication such as a mailing, 26 telephone bank, print or electronic media advertisement, 27 billboard, publication or educational campaign, the 28 communication shall clearly and conspicuously state the name of 29 the person who made or financed the expenditure for the 30 communication. 20050H0700B4884 - 32 -
1 § 1306-A. Exemption from registration and reporting. 2 The following activities and individuals shall be exempt from 3 registration under section 1304-A (relating to registration) and 4 reporting under section 1305-A (relating to reporting): 5 (1) Preparing testimony and testifying before a 6 committee, commission or board of the legislative or 7 executive branch. 8 (2) Serving on a working group, task force or advisory 9 board at the request of an agency or the General Assembly. 10 (3) Participating as a party or as an attorney at law or 11 representative of a party, case or controversy in any 12 administrative adjudication pursuant to 2 Pa.C.S. (relating 13 to administrative law and procedure). 14 (4) An individual who is an employee of an entity 15 engaged in the business of publishing, broadcasting or 16 televising while engaged in the gathering and dissemination 17 of news and comment to the general public in the ordinary 18 course of business. 19 (5) An individual who does not receive economic 20 consideration or gifts, other than traveling expenses, for 21 lobbying. 22 (6) An elected State officer acting in an official 23 capacity. 24 (7) A State executive officer appointed by the Governor 25 acting in an official capacity. 26 (8) An elected or appointed official or employee of a 27 political subdivision acting in an official capacity. 28 (9) An employee of the Commonwealth or independent 29 agency of the Commonwealth acting in an official capacity. 30 (10) An individual who appears on behalf of any 20050H0700B4884 - 33 -
1 religious organization with respect to subjects of 2 legislation or regulation that directly relate to the 3 religious beliefs and practices of that organization and who 4 does not otherwise act as a lobbyist. 5 (11) Expenditures and other transactions subject to 6 reporting under Article XVI of the act of June 3, 1937 7 (P.L.1333, No.320), known as the Pennsylvania Election Code. 8 (12) Any vendor whose primary occupation is services, 9 supplies or construction. Any lobbyist or lobbying firm 10 employed by such a vendor shall not be exempt from 11 registration under section 1304-A and reporting under section 12 1305-A. 13 § 1307-A. Prohibited activities. 14 (a) Contingent compensation.-- 15 (1) No one may compensate or incur an obligation to 16 compensate any lobbyist or lobbying firm, principal or 17 individual to engage in lobbying for compensation contingent 18 in whole or in part upon any of the following: 19 (i) Occurrence, nonoccurrence or amendment of 20 legislative action. 21 (ii) Occurrence, nonoccurrence or amendment of an 22 administrative action other than procurement described in 23 paragraph (1)(iv) of the definition of "administrative 24 action" under section 1303-A. 25 (2) No lobbyist, principal, lobbying firm or individual 26 may engage in or agree to engage in lobbying for compensation 27 contingent in whole or in part upon any of the following: 28 (i) Occurrence, nonoccurrence or amendment of 29 legislative action. 30 (ii) Occurrence, nonoccurrence or amendment of an 20050H0700B4884 - 34 -
1 administrative action other than procurement described in 2 paragraph (1)(iv) of the definition of "administrative 3 action" under section 1303-A. 4 (b) Falsification.--No lobbyist, lobbying firm, principal or 5 individual may, for the purpose of influencing legislative 6 action or administrative action, transmit, utter or publish to 7 any State official or employee any communication, knowing that 8 such communication or any signature on the communication is 9 false, forged, counterfeit or fictitious. 10 § 1308-A. Administration and enforcement. 11 (a) Criminal enforcement.--If the department or the 12 commission believes an intentional violation of this chapter has 13 been committed, it shall refer all relevant documents and other 14 information to the Office of Attorney General. 15 (b) Attorney General.--In addition to the authority 16 conferred upon the Attorney General under the act of October 15, 17 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act, 18 the Attorney General has the authority to investigate and 19 prosecute a violation of this chapter. 20 (c) Advice and opinions.--The commission shall provide 21 advice and opinions in accordance with procedures set forth in 22 section 1107 (relating to powers and duties of commission) to 23 the department, a lobbyist, lobbying firm or principal or State 24 official or employee who has a question regarding compliance 25 with this chapter. A principal, a lobbyist, a lobbying firm or 26 an individual who acts in good faith based on the written advice 27 or opinion of the commission shall not be held liable for a 28 violation of this chapter. 29 (d) Public inspection and copying.--The department shall 30 make completed registrations, expense reports and termination 20050H0700B4884 - 35 -
1 notices which have been filed with the department available for 2 public inspection and provide copies of these documents at a 3 price which shall not exceed the actual cost of copying. 4 Documents that are maintained and reproducible in an electronic 5 format shall be provided in that format upon request. 6 (e) Annual reporting.--The department shall prepare and 7 publish an annual report on lobbying activities in this 8 Commonwealth. The department shall at least annually publish a 9 listing of all registrants and shall identify affiliated 10 political action committees. 11 (f) Retention of records.--Completed registrations, expense 12 reports, termination notices and termination letters filed or 13 issued pursuant to section 1304-A (relating to registration) 14 shall remain on file with the department for a four-year period. 15 (g) Audits.--The following shall apply: 16 (1) Every two years, the Secretary of the Commonwealth 17 shall contract for the services of a certified public 18 accountant or certified public accounting firm. The contract 19 shall be awarded in a manner consistent with the provisions 20 of 62 Pa.C.S. Pt. I (relating to Commonwealth Procurement 21 Code) and no certified public accountant or certified public 22 accounting firm shall be eligible to obtain such a contract 23 for two successive contract periods. 24 (2) The Secretary of the Commonwealth shall randomly 25 select, at a public drawing 60 days following the close of 26 each fourth quarter reporting period, 3% of all registrations 27 and expense reports filed with the department under this 28 chapter. 29 (3) The certified public accountant shall conduct the 30 audits in accordance with generally accepted auditing 20050H0700B4884 - 36 -
1 standards and shall test as to whether each registration or 2 expense report is materially correct. 3 (4) The audit report and findings shall be confidential, 4 except that the department shall make an audit report and 5 findings available to the commission when the commission is 6 investigating an alleged violation of this chapter involving 7 the audited registration or expense report. The commission 8 shall include the relevant portion of an audit as part of its 9 findings of fact in a commission order which results from an 10 investigation arising out of an audit. 11 (h) Investigation and hearings.--The commission, through its 12 executive director, may initiate an investigation and hold a 13 hearing concerning an alleged violation of this chapter in 14 accordance with sections 1107 and 1108 (relating to 15 investigations by commission). 16 (i) Disciplinary board.--If the subject of any complaint 17 filed with or investigation initiated by the commission under 18 this chapter is an attorney at law, the commission shall refer 19 the alleged violation to the board to be investigated, 20 considered and resolved in a manner consistent with the 21 Pennsylvania Rules of Professional Conduct. If a court of 22 competent jurisdiction determines that a complaint filed with or 23 investigation initiated by the commission under this chapter, 24 which involves an attorney at law, is under the jurisdiction of 25 the board, the matter shall be referred by the court to the 26 board to be investigated, considered and resolved in a manner 27 consistent with the Pennsylvania Rules of Professional Conduct. 28 (j) Directory.--On or before May 1 of each odd-numbered 29 year, the department shall produce and distribute a directory of 30 all registered lobbyists and registered lobbying firms retained 20050H0700B4884 - 37 -
1 by registered principals. The directory shall include 2 photographs of each registered lobbyist. Copies of the directory 3 shall be made available to the public at a price not to exceed 4 the actual cost of production. All revenue received by the 5 department from the sales of the directory shall be deposited 6 into the fund. 7 (k) Computer file.--The department shall provide the 8 Legislative Data Processing Committee with all data relating to 9 registrations, expense reports and termination notices. The 10 committee shall make all such information available on a 11 publicly accessible Internet website in a fully searchable 12 format. 13 (l) Inflation adjustment.--On a biennial basis commencing in 14 January 2009, the department shall review the threshold for 15 registration under section 1304-A (relating to registration), 16 and the threshold for reporting under section 1305-A(c) 17 (relating to reporting) and may increase these amounts to rates 18 deemed reasonable for assuring appropriate disclosure. On a 19 biennial basis commencing in January 2009, the department shall 20 review the filing fee established under section 1310-A (relating 21 to filing fees; fund established; regulations) and may adjust 22 this amount if the department determines that a higher fee is 23 needed to cover the costs of carrying out the provisions of this 24 chapter. The department shall publish any such adjusted amounts 25 in the Pennsylvania Bulletin by June 1, 2009, and by June 1 26 every two years thereafter as necessary. 27 § 1309-A. Penalties. 28 (a) Notice of possible noncompliance.-- 29 (1) The commission shall issue a notice of possible 30 noncompliance to any lobbyist, principal, lobbying firm or 20050H0700B4884 - 38 -
1 individual that has failed to register or report as required 2 by this chapter. The notice shall state the nature of the 3 alleged noncompliance and the civil and criminal penalties 4 for failure to register, failure to file or filing a report 5 containing a false statement. The notice shall also advise of 6 the right to a hearing before the commission and the time and 7 manner in which to request a hearing. 8 (2) If a hearing is requested, the commission shall 9 determine at the hearing whether the recipient of the notice 10 is required to register or report under this chapter, whether 11 the failure to register or report was negligent and, if the 12 failure was negligent, the amount of the civil penalty to be 13 imposed. If the commission finds that the failure to register 14 or report was intentional, it shall refer the matter to the 15 Attorney General for investigation and prosecution. Hearings 16 under this subsection shall be conducted by the commission in 17 accordance with sections 1107 (relating to powers and duties 18 of commission) and 1108 (relating to investigations by 19 commission). 20 (3) Negligent failure to register or report as required 21 by this chapter is punishable by a civil penalty of not more 22 than $50 for each late day. In the case of negligent failure 23 to register or report, the commission may, upon the majority 24 vote of its members, levy a civil penalty as provided for in 25 this subsection. The total amount of the civil penalty levied 26 shall not be limited by any other provision of law. The 27 commission shall have standing to apply to Commonwealth Court 28 to seek enforcement of an order imposing a civil penalty 29 under this section. 30 (b) Intentional violations of this chapter.-- 20050H0700B4884 - 39 -
1 (1) Any lobbyist, lobbying firm, principal or individual 2 that intentionally fails to register or report as required by 3 this chapter commits a misdemeanor of the second degree. 4 (2) A registrant that files a report under this chapter 5 with knowledge that the report contains a false statement 6 commits a misdemeanor of the second degree. 7 (3) Any lobbyist, lobbying firm or principal or 8 individual that intentionally violates a provision of this 9 chapter other than paragraph (1) or (2) commits a misdemeanor 10 of the third degree. 11 (4) In addition to the penalties imposed pursuant to 12 this subsection, the commission may: 13 (i) Prohibit a lobbyist or lobbying firm from 14 lobbying for economic consideration for a period of up to 15 five years for committing an act which constitutes an 16 offense under this subsection. 17 (ii) Subject a principal to a civil fine of not more 18 than $50,000. 19 (c) Publishing of names.--The names of those found in 20 violation of this chapter shall be published in the Pennsylvania 21 Bulletin. 22 (d) Affirmative defense.--Reliance on advisory opinions of 23 the commission, any notice given under section 1305-A(b)(3)(ii) 24 or failure to receive notice under section 1305-A(b)(3)(ii) 25 shall be a defense to an action brought under Chapter 11 26 (relating to ethics standards and financial disclosure) or this 27 chapter. 28 § 1310-A. Filing fees; fund established; regulations. 29 (a) Filing fees.--Each principal, lobbyist, lobbying firm or 30 individual required to be registered under this chapter shall 20050H0700B4884 - 40 -
1 pay a biennial registration fee of $100 to the department. 2 (b) Fund established.--All money received from filing fees 3 under subsection (a) shall be deposited in a restricted receipts 4 account to be known as the Lobbying Disclosure Fund. The money 5 deposited in the fund is hereby appropriated to the department 6 as a continuing appropriation for the exclusive purpose of 7 carrying out the provisions of this chapter. Any moneys 8 remaining in the fund established pursuant to the former section 9 1310(b) (relating to filing fees; fund established; regulations) 10 shall be transferred to the Lobbying Disclosure Fund. 11 (c) Computerized filing system.--The department shall 12 implement a fully accessible system to accommodate the use of 13 computerized filing. Each registrant shall elect on an annual 14 basis whether the registrant will file all of the documents 15 required by this act either electronically or on paper with the 16 department. 17 (d) Regulations.--A committee comprised of the chairman of 18 the State Ethics Commission, the Attorney General, the General 19 Counsel to the Governor, a member of the Senate appointed by the 20 President pro tempore of the Senate, a member of the Senate 21 appointed by the Minority Leader of the Senate, a member of the 22 House of Representatives appointed by the Speaker of the House 23 of Representatives and a member of the House of Representatives 24 appointed by the Minority Leader of the House of 25 Representatives, or their designees, shall have continuing 26 authority to promulgate regulations necessary to carry out the 27 provisions of this chapter. The chairman of the commission shall 28 be designated as the chairman of the committee. The initial 29 proposed regulations shall be submitted within 180 days of the 30 effective date of this section to the Independent Regulatory 20050H0700B4884 - 41 -
1 Review Commission under section 5 of the act of June 25, 1982 2 (P.L.633, No.181), known as the Regulatory Review Act. Any 3 meeting at which the committee plans to approve proposed 4 regulations shall be held in accordance with Chapter 7 (relating 5 to open meetings). The committee shall also prepare and publish 6 a manual setting forth guidelines for accounting and reporting. 7 The regulations and manual shall be drafted to accommodate the 8 use of computerized recordkeeping, electronic filing of the 9 reports provided for under this chapter and retention of 10 registrations and expense reports provided for under this 11 chapter by electronic means. The Department of State shall 12 provide sufficient staff and other administrative support to 13 assist the committee. Any vacancy occurring among the appointed 14 members of the committee shall be filled in the same manner as 15 the original appointment. Any committee member who is a member 16 of the General Assembly shall serve for a term that is 17 coincident with his or her term of office. 18 § 1311-A. Severability. 19 The provisions of this chapter are severable. If any 20 provision of this chapter or its application to any person or 21 circumstance is held invalid, the invalidity shall not affect 22 other provisions or applications of this chapter which can be 23 given effect without the invalid provision or application. 24 Section 3. The Secretary of the Commonwealth shall transmit 25 to the Legislative Reference Bureau, for publication in the 26 Pennsylvania Bulletin, notice of full implementation of the 27 computerized filing system required under section 1310-A(c) 28 (relating to registration fees; fund established; system; 29 regulations). 30 Section 4. Any funds remaining in the restricted receipts 20050H0700B4884 - 42 -
1 account created under 65 Pa.C.S. § 1310(b) may be utilized by 2 the Department of State to implement the provisions of 65 3 Pa.C.S. Ch. XVIII-A. 4 Section 5. This act shall take effect as follows: 5 (1) The following provisions shall take effect 6 immediately: 7 (i) Section 1310-A(d). 8 (ii) This section. 9 (2) The remainder of this act shall take effect on the 10 latter of either of the following: 11 (i) Publication of the notice required under section 12 3. 13 (ii) The effective date of the regulations 14 promulgated under section 1310-A(d). 15 SECTION 1. SECTION 1102 OF TITLE 65 OF THE PENNSYLVANIA <-- 16 CONSOLIDATED STATUTES IS AMENDED BY ADDING DEFINITIONS TO READ: 17 § 1102. DEFINITIONS. 18 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER 19 SHALL HAVE, UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE, THE 20 MEANINGS GIVEN TO THEM IN THIS SECTION: 21 * * * 22 "GIFT." [ANYTHING WHICH IS RECEIVED WITHOUT CONSIDERATION OF 23 EQUAL OR GREATER VALUE. THE TERM SHALL NOT INCLUDE A POLITICAL 24 CONTRIBUTION OTHERWISE REPORTED AS REQUIRED BY LAW OR A 25 COMMERCIALLY REASONABLE LOAN MADE IN THE ORDINARY COURSE OF 26 BUSINESS.] AS DEFINED IN SECTION 1303-A (RELATING TO 27 DEFINITIONS). 28 * * * 29 "HOSPITALITY." AS DEFINED IN SECTION 1303-A (RELATING TO 30 DEFINITIONS). 20050H0700B4884 - 43 -
1 * * * 2 SECTION 1.1. SECTION 1105(B)(7) OF TITLE 65 IS AMENDED TO 3 READ: 4 § 1105. STATEMENT OF FINANCIAL INTERESTS. 5 * * * 6 (B) REQUIRED INFORMATION.--THE STATEMENT SHALL INCLUDE THE 7 FOLLOWING INFORMATION FOR THE PRIOR CALENDAR YEAR WITH REGARD TO 8 THE PERSON REQUIRED TO FILE THE STATEMENT: 9 * * * 10 (7) THE NAME AND ADDRESS OF THE SOURCE AND THE AMOUNT OF 11 ANY PAYMENT FOR OR REIMBURSEMENT OF ACTUAL EXPENSES FOR 12 TRANSPORTATION AND LODGING OR HOSPITALITY RECEIVED IN 13 CONNECTION WITH PUBLIC OFFICE OR EMPLOYMENT WHERE SUCH ACTUAL 14 EXPENSES FOR TRANSPORTATION AND LODGING OR HOSPITALITY EXCEED 15 $650 IN [THE COURSE OF A SINGLE OCCURRENCE] AN AGGREGATE 16 AMOUNT PER YEAR. THIS PARAGRAPH SHALL NOT APPLY TO EXPENSES 17 REIMBURSED BY A GOVERNMENTAL BODY OR TO EXPENSES REIMBURSED 18 BY AN ORGANIZATION OR ASSOCIATION OF PUBLIC OFFICIALS OR 19 EMPLOYEES OF POLITICAL SUBDIVISIONS WHICH THE PUBLIC OFFICIAL 20 OR EMPLOYEE SERVES IN AN OFFICIAL CAPACITY. 21 * * * 22 SECTION 2. CHAPTER 13 HEADING AND SECTIONS 1301, 1302, 1303, 23 1304, 1305, 1306, 1307, 1308, 1309, 1310 AND 1311 OF TITLE 65 24 ARE AMENDED TO READ: 25 [CHAPTER 13 26 LOBBY REGULATION AND DISCLOSURE 27 § 1301. SHORT TITLE OF CHAPTER. 28 THIS CHAPTER SHALL BE KNOWN AND MAY BE CITED AS THE LOBBYING 29 DISCLOSURE ACT. 30 § 1302. STATEMENT OF INTENT AND JURISDICTION. 20050H0700B4884 - 44 -
1 (A) INTENT.--THE CONSTITUTION OF PENNSYLVANIA RECOGNIZES THE 2 PRINCIPLE THAT ALL FREE GOVERNMENT IS FOUNDED UPON THE AUTHORITY 3 OF THE PEOPLE. IT FURTHER PROVIDES THAT THE POWER TO MAKE LAW IN 4 THIS COMMONWEALTH IS VESTED IN THE GENERAL ASSEMBLY AND THE 5 POWER TO ENFORCE LAW IS VESTED IN THE EXECUTIVE DEPARTMENT. THE 6 ABILITY OF THE PEOPLE TO EXERCISE THEIR FUNDAMENTAL AUTHORITY 7 AND TO HAVE CONFIDENCE IN THE INTEGRITY OF THE PROCESS BY WHICH 8 LAWS ARE MADE AND ENFORCED IN THIS COMMONWEALTH DEMANDS THAT THE 9 IDENTITY AND THE SCOPE OF ACTIVITY OF THOSE EMPLOYED TO 10 INFLUENCE THE ACTIONS OF THE GENERAL ASSEMBLY AND THE EXECUTIVE 11 DEPARTMENT BE PUBLICLY AND REGULARLY DISCLOSED. 12 (B) JURISDICTION.--THE AUTHORITY TO REGULATE PERSONS 13 EMPLOYED TO INFLUENCE THE ACTIONS OF THE GENERAL ASSEMBLY AND 14 THE EXECUTIVE DEPARTMENT LIES WITHIN THE JURISDICTION OF THOSE 15 BRANCHES OF GOVERNMENT. TO INSURE THAT THE INTENT OF THIS 16 CHAPTER IS NOT EVADED AND THAT ALL SUCH PERSONS ARE REGULATED IN 17 A FAIR AND EQUITABLE MANNER, LOBBYISTS AND THE PRACTICE OF 18 LOBBYING SHALL BE SUBJECT TO THIS CHAPTER, WHICH SHALL PREVAIL 19 OVER ANY OTHER REGULATION OF PROFESSIONAL ACTIVITY WHEN THAT 20 ACTIVITY CONSTITUTES LOBBYING. THIS CHAPTER IS NOT INTENDED TO 21 GOVERN PROFESSIONAL ACTIVITIES WHICH DO NOT INCLUDE LOBBYING AND 22 WHICH ARE PROPERLY THE SUBJECT OF REGULATION BY THE JUDICIAL 23 BRANCH OF GOVERNMENT OR BY ANY GOVERNMENT AGENCY. MEMBERSHIP IN 24 A REGULATED PROFESSION SHALL NOT EXCUSE A LOBBYIST FROM 25 COMPLIANCE WITH THE PROVISIONS OF THIS CHAPTER. 26 § 1303. DEFINITIONS. 27 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER 28 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE 29 CONTEXT CLEARLY INDICATES OTHERWISE: 30 "ADMINISTRATIVE ACTION." ANY OF THE FOLLOWING: 20050H0700B4884 - 45 -
1 (1) AN AGENCY'S: 2 (I) PROPOSAL, CONSIDERATION, PROMULGATION OR 3 RESCISSION OF A REGULATION; 4 (II) DEVELOPMENT OR MODIFICATION OF A GUIDELINE OR A 5 STATEMENT OF POLICY; OR 6 (III) APPROVAL OR REJECTION OF A REGULATION. 7 (2) THE REVIEW, REVISION, APPROVAL OR DISAPPROVAL OF A 8 REGULATION UNDER THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), 9 KNOWN AS THE REGULATORY REVIEW ACT. 10 (3) THE GOVERNOR'S APPROVAL OR VETO OF LEGISLATION. 11 (4) THE NOMINATION OR APPOINTMENT OF AN INDIVIDUAL AS AN 12 OFFICER OR EMPLOYEE OF THE COMMONWEALTH. 13 (5) THE PROPOSAL, CONSIDERATION, PROMULGATION OR 14 RESCISSION OF AN EXECUTIVE ORDER. 15 "AFFILIATED POLITICAL ACTION COMMITTEE." A POLITICAL ACTION 16 COMMITTEE AS DEFINED IN SECTION 1621(L) OF THE ACT OF JUNE 3, 17 1937 (P.L.1333, NO.320), KNOWN AS THE PENNSYLVANIA ELECTION 18 CODE, WHICH HAS A CHAIRMAN, A TREASURER OR ANOTHER OFFICER WHO 19 IS A PRINCIPAL, AN EMPLOYEE OF A PRINCIPAL, A LOBBYIST OR AN 20 EMPLOYEE OF A LOBBYIST, PROVIDED IF AN EMPLOYEE OF A REGISTRANT 21 SERVES AS THE OFFICER OF A POLITICAL ACTION COMMITTEE IN WHAT IS 22 CLEARLY A PERSONAL CAPACITY AND THE GOALS AND MISSION OF THAT 23 POLITICAL ACTION COMMITTEE CLEARLY HAVE NO RELATIONSHIP TO THE 24 GOALS AND MISSION OF THE REGISTRANT, SUCH POLITICAL ACTION 25 COMMITTEE SHALL NOT BE CONSIDERED AN AFFILIATED POLITICAL ACTION 26 COMMITTEE FOR THE PURPOSES OF THIS DEFINITION. 27 "AGENCY." A STATE AGENCY, BOARD, COMMISSION, AUTHORITY OR 28 DEPARTMENT. 29 "COMMISSION." THE STATE ETHICS COMMISSION. 30 "COMPENSATION." ANYTHING OF VALUE, INCLUDING BENEFITS, 20050H0700B4884 - 46 -
1 RECEIVED OR TO BE RECEIVED FROM A PRINCIPAL BY ONE ACTING AS A 2 LOBBYIST. 3 "DIRECT COMMUNICATION." AN EFFORT, WHETHER WRITTEN, ORAL OR 4 BY ANY OTHER MEDIUM, MADE BY A LOBBYIST OR PRINCIPAL, DIRECTED 5 TO A STATE OFFICIAL OR EMPLOYEE, THE PURPOSE OR FORESEEABLE 6 EFFECT OF WHICH IS TO INFLUENCE LEGISLATIVE ACTION OR 7 ADMINISTRATIVE ACTION. 8 "ECONOMIC CONSIDERATION." ANYTHING OF VALUE OFFERED OR 9 RECEIVED. 10 "FUND." THE LOBBYING DISCLOSURE FUND ESTABLISHED IN SECTION 11 1310(B) (RELATING TO FILING FEES; FUND ESTABLISHED; 12 REGULATIONS). 13 "GIFT." AS DEFINED IN SECTION 1102 (RELATING TO 14 DEFINITIONS). 15 "IMMEDIATE FAMILY." AN INDIVIDUAL'S SPOUSE, AN INDIVIDUAL'S 16 CHILD AND AN INDIVIDUAL'S PARENT, BROTHER, SISTER OR LIKE 17 RELATIVE-IN-LAW. 18 "INDIRECT COMMUNICATION." AN EFFORT, WHETHER WRITTEN, ORAL 19 OR BY ANY OTHER MEDIUM, TO ENCOURAGE OTHERS, INCLUDING THE 20 GENERAL PUBLIC, TO TAKE ACTION, THE PURPOSE OR FORESEEABLE 21 EFFECT OF WHICH IS TO DIRECTLY INFLUENCE LEGISLATIVE ACTION OR 22 ADMINISTRATIVE ACTION. THE TERM INCLUDES LETTER-WRITING 23 CAMPAIGNS, MAILINGS, TELEPHONE BANKS, PRINT AND ELECTRONIC MEDIA 24 ADVERTISING, BILLBOARDS, PUBLICATIONS AND EDUCATIONAL CAMPAIGNS 25 ON PUBLIC ISSUES. THE TERM DOES NOT INCLUDE REGULARLY PUBLISHED 26 PERIODIC NEWSLETTERS PRIMARILY DESIGNED FOR AND DISTRIBUTED TO 27 MEMBERS OF A BONA FIDE ASSOCIATION OR CHARITABLE OR FRATERNAL 28 NONPROFIT CORPORATION. 29 "LEGISLATION." BILLS, RESOLUTIONS, AMENDMENTS AND 30 NOMINATIONS PENDING OR PROPOSED IN EITHER THE SENATE OR THE 20050H0700B4884 - 47 -
1 HOUSE OF REPRESENTATIVES. THE TERM INCLUDES ANY OTHER MATTER 2 WHICH MAY BECOME THE SUBJECT OF ACTION BY EITHER CHAMBER OF THE 3 GENERAL ASSEMBLY. 4 "LEGISLATIVE ACTION." AN ACTION TAKEN BY A STATE OFFICIAL OR 5 EMPLOYEE INVOLVING THE PREPARATION, RESEARCH, DRAFTING, 6 INTRODUCTION, CONSIDERATION, MODIFICATION, AMENDMENT, APPROVAL, 7 PASSAGE, ENACTMENT, TABLING, POSTPONEMENT, DEFEAT OR REJECTION 8 OF LEGISLATION; LEGISLATIVE MOTIONS; OVERRIDING OR SUSTAINING A 9 VETO BY THE GOVERNOR; OR CONFIRMATION OF APPOINTMENTS BY THE 10 GOVERNOR OR OF APPOINTMENTS TO PUBLIC BOARDS OR COMMISSIONS BY A 11 MEMBER OF THE GENERAL ASSEMBLY. 12 "LOBBYING." AN EFFORT TO INFLUENCE LEGISLATIVE ACTION OR 13 ADMINISTRATIVE ACTION. THE TERM INCLUDES: 14 (1) PROVIDING ANY GIFT, ENTERTAINMENT, MEAL, 15 TRANSPORTATION OR LODGING TO A STATE OFFICIAL OR EMPLOYEE FOR 16 THE PURPOSE OF ADVANCING THE INTEREST OF THE LOBBYIST OR 17 PRINCIPAL; AND 18 (2) DIRECT OR INDIRECT COMMUNICATION. 19 "LOBBYIST." ANY INDIVIDUAL, FIRM, ASSOCIATION, CORPORATION, 20 PARTNERSHIP, BUSINESS TRUST OR BUSINESS ENTITY THAT ENGAGES IN 21 LOBBYING ON BEHALF OF A PRINCIPAL FOR ECONOMIC CONSIDERATION. 22 THE TERM INCLUDES AN ATTORNEY WHO ENGAGES IN LOBBYING. 23 "PRINCIPAL." ANY INDIVIDUAL, FIRM, ASSOCIATION, CORPORATION, 24 PARTNERSHIP, BUSINESS TRUST OR BUSINESS ENTITY: 25 (1) ON WHOSE BEHALF A LOBBYIST INFLUENCES OR ATTEMPTS TO 26 INFLUENCE AN ADMINISTRATIVE ACTION OR A LEGISLATIVE ACTION; 27 OR 28 (2) THAT ENGAGES IN LOBBYING ON THE PRINCIPAL'S OWN 29 BEHALF. 30 "REGISTRANT." A REGISTERED LOBBYIST OR A REGISTERED 20050H0700B4884 - 48 -
1 PRINCIPAL. 2 "REGULATION." ANY RULE, REGULATION OR ORDER IN THE NATURE OF 3 A RULE OR REGULATION, INCLUDING FORMAL AND INFORMAL OPINIONS OF 4 THE ATTORNEY GENERAL, OF GENERAL APPLICATION AND FUTURE EFFECT, 5 PROMULGATED BY AN AGENCY UNDER STATUTORY AUTHORITY IN THE 6 ADMINISTRATION OF A STATUTE ADMINISTERED BY OR RELATING TO THE 7 AGENCY, OR PRESCRIBING THE PRACTICE OR PROCEDURE BEFORE THE 8 AGENCY. 9 "STATE OFFICIAL OR EMPLOYEE." AN INDIVIDUAL ELECTED OR 10 APPOINTED TO A POSITION IN STATE GOVERNMENT OR EMPLOYED BY STATE 11 GOVERNMENT, WHETHER COMPENSATED OR UNCOMPENSATED, WHO IS 12 INVOLVED IN LEGISLATIVE ACTION OR ADMINISTRATIVE ACTION. 13 § 1304. REGISTRATION. 14 (A) GENERAL RULE.--UNLESS EXCLUDED UNDER SECTION 1306 15 (RELATING TO EXEMPTION FROM REGISTRATION AND REPORTING), A 16 LOBBYIST OR A PRINCIPAL MUST REGISTER WITH THE COMMISSION WITHIN 17 TEN DAYS OF ACTING IN ANY CAPACITY AS A LOBBYIST OR PRINCIPAL. 18 REGISTRATION SHALL BE BIENNIAL AND BE COINCIDENT WITH THE TERMS 19 OF THE MEMBERS OF THE HOUSE OF REPRESENTATIVES. 20 (B) PRINCIPALS.-- 21 (1) A PRINCIPAL REQUIRED TO REGISTER SHALL FILE THE 22 FOLLOWING INFORMATION WITH THE COMMISSION: 23 (I) NAME. 24 (II) PERMANENT ADDRESS. 25 (III) DAYTIME TELEPHONE NUMBER. 26 (IV) NAME AND NATURE OF BUSINESS. 27 (V) NAME, REGISTRATION NUMBER AND ACRONYMS OF 28 AFFILIATED POLITICAL ACTION COMMITTEES. 29 (VI) NAME AND PERMANENT BUSINESS ADDRESS OF EACH 30 INDIVIDUAL WHO WILL FOR ECONOMIC CONSIDERATION ENGAGE IN 20050H0700B4884 - 49 -
1 LOBBYING ON THE PRINCIPAL'S BEHALF. 2 (2) IF AN ORGANIZATION OR ASSOCIATION IS A PRINCIPAL, 3 THE NUMBER OF DUES-PAYING MEMBERS IN THE PAST CALENDAR YEAR 4 SHALL ALSO BE DISCLOSED. 5 (C) LOBBYIST.-- 6 (1) A LOBBYIST WHO IS REQUIRED TO REGISTER SHALL FILE 7 THE FOLLOWING INFORMATION WITH THE COMMISSION: 8 (I) NAME. 9 (II) PERMANENT BUSINESS ADDRESS. 10 (III) DAYTIME TELEPHONE NUMBER. 11 (IV) A RECENT PICTURE OF THE LOBBYIST. 12 (V) NAME, PERMANENT BUSINESS ADDRESS AND DAYTIME 13 TELEPHONE NUMBER OF THE PRINCIPAL THE LOBBYIST 14 REPRESENTS. 15 (VI) NAME, REGISTRATION NUMBER AND ACRONYMS OF 16 AFFILIATED POLITICAL ACTION COMMITTEES. 17 (2) EACH LOBBYIST SHALL FILE A SEPARATE REGISTRATION 18 STATEMENT FOR EACH PRINCIPAL HE OR SHE REPRESENTS. 19 (D) AMENDMENTS.-- 20 (1) WHEN THERE IS A CHANGE OF INFORMATION REQUIRED FOR 21 THE REGISTRATION STATEMENT UNDER SUBSECTION (B)(1) OR (C), AN 22 AMENDED STATEMENT SHALL BE FILED WITH THE COMMISSION WITHIN 23 14 DAYS AFTER THE CHANGE OCCURS. 24 (2) WHEN THERE IS A CHANGE IN INFORMATION REQUIRED FOR 25 THE REGISTRATION STATEMENT UNDER SUBSECTION (B)(2), AN 26 AMENDED STATEMENT SHALL BE FILED WITH THE COMMISSION WITHIN 27 14 DAYS OF THE END OF THE YEAR IN WHICH THE CHANGE OCCURS. 28 (E) TERMINATION.--A LOBBYIST OR A PRINCIPAL MAY TERMINATE 29 REGISTRATION BY FILING NOTICE WITH THE COMMISSION. WITHIN 30 30 DAYS OF FILING THE NOTICE, THE LOBBYIST OR PRINCIPAL SHALL FILE 20050H0700B4884 - 50 -
1 A TERMINATION REPORT, WHICH SHALL INCLUDE ALL INFORMATION 2 REQUIRED BY SECTION 1305 (RELATING TO REPORTING) THROUGH THE 3 FINAL DAY OF LOBBYING ACTIVITY. AFTER A REASONABLE REVIEW OF THE 4 TERMINATION REPORT BUT NOT LATER THAN 90 DAYS AFTER RECEIPT OF 5 THE NOTICE, THE COMMISSION SHALL ISSUE TO THE LOBBYIST OR 6 PRINCIPAL A LETTER STATING THAT THE REGISTRANT HAS TERMINATED 7 REGISTRATION. THE FILING OF NOTICE OR A TERMINATION REPORT SHALL 8 NOT AFFECT THE COMMISSION'S AUTHORITY TO CONDUCT INVESTIGATIONS 9 AND HEARINGS PURSUANT TO SECTION 1308(H) (RELATING TO 10 ADMINISTRATION AND ENFORCEMENT). NO LOBBYING MAY OCCUR AFTER THE 11 FILING OF NOTICE UNLESS THE LOBBYING IS PURSUANT TO A SEPARATE 12 REGISTRATION STATEMENT WHICH IS FILED WITH THE COMMISSION AND 13 WHICH, AT THE TIME OF THE LOBBYING, HAS NOT BEEN TERMINATED. 14 § 1305. REPORTING. 15 (A) GENERAL RULE.--A LOBBYIST AS REQUIRED BY SUBSECTION 16 (B)(6) OR A REGISTERED PRINCIPAL SHALL, UNDER OATH OR 17 AFFIRMATION, FILE QUARTERLY EXPENSE REPORTS WITH THE COMMISSION. 18 (B) CONTENT.-- 19 (1) REPORTS MUST LIST THE NAMES OF ALL LOBBYISTS BY WHOM 20 THE LOBBYING IS CONDUCTED AND THE GENERAL SUBJECT MATTER OR 21 ISSUE BEING LOBBIED. 22 (2) EXPENSE REPORTS MUST CONTAIN THE FOLLOWING 23 CATEGORIES: 24 (I) A SINGLE AGGREGATE GOOD FAITH ESTIMATE OF THE 25 TOTAL AMOUNT SPENT FOR PERSONNEL AND OFFICE EXPENSES 26 RELATED TO LOBBYING. THIS SUBPARAGRAPH INCLUDES SALARIES 27 AND OTHER FORMS OF COMPENSATION, BENEFITS, VEHICLE 28 ALLOWANCES, BONUSES AND REIMBURSABLE EXPENSES FOR THOSE 29 INVOLVED IN LOBBYING. IF COMPENSATION IS TO BE REPORTED 30 BY OR FOR AN INDIVIDUAL OR ENTITY WHOSE LOBBYING IS 20050H0700B4884 - 51 -
1 INCIDENTAL TO REGULAR EMPLOYMENT, IT SHALL BE SUFFICIENT 2 TO REPORT A GOOD FAITH PRORATED ESTIMATE BASED ON THE 3 VALUE OF THE TIME DEVOTED TO LOBBYING. REPORTABLE 4 PERSONNEL COSTS INCLUDE COSTS FOR LOBBYING STAFF, 5 RESEARCH AND MONITORING STAFF, CONSULTANTS, LAWYERS, 6 LOBBYISTS, PUBLICATIONS AND PUBLIC RELATIONS STAFF, 7 TECHNICAL STAFF AND CLERICAL AND ADMINISTRATIVE SUPPORT 8 STAFF WHO ENGAGE IN LOBBYING BUT ARE EXEMPT FROM 9 REPORTING UNDER SECTION 1306(6) (RELATING TO EXEMPTION 10 FROM REGISTRATION AND REPORTING). THIS SUBPARAGRAPH 11 INCLUDES COSTS FOR OFFICES, EQUIPMENT AND SUPPLIES 12 UTILIZED FOR LOBBYING. 13 (II) A SINGLE AGGREGATE GOOD FAITH ESTIMATE OF THE 14 TOTAL AMOUNT SPENT FOR DIRECT COMMUNICATION. 15 (III) THE TOTAL COSTS FOR GIFTS, ENTERTAINMENT, 16 MEALS, TRANSPORTATION, LODGING AND RECEPTIONS GIVEN TO OR 17 PROVIDED TO STATE OFFICIALS OR EMPLOYEES OR THEIR 18 IMMEDIATE FAMILIES. 19 (IV) A SINGLE AGGREGATE GOOD FAITH ESTIMATE OF THE 20 TOTAL AMOUNT SPENT FOR INDIRECT COMMUNICATION. 21 (3) IN ADDITION TO REPORTING THE TOTALS REQUIRED UNDER 22 THIS SUBSECTION, THE EXPENSE REPORT MUST IDENTIFY, BY NAME, 23 POSITION AND EACH OCCURRENCE, A STATE OFFICIAL OR EMPLOYEE 24 WHO RECEIVES FROM A PRINCIPAL OR LOBBYIST ANYTHING OF VALUE 25 WHICH MUST BE INCLUDED IN THE STATEMENT UNDER SECTION 26 1105(B)(6) OR (7) (RELATING TO STATEMENT OF FINANCIAL 27 INTERESTS) AS IMPLEMENTED BY SECTION 1105(D). 28 (I) FOR PURPOSES OF THIS CHAPTER, THE AMOUNT 29 REFERRED TO IN SECTION 1105(B)(7) SHALL BE CONSIDERED AN 30 AGGREGATE AMOUNT PER YEAR. 20050H0700B4884 - 52 -
1 (II) WRITTEN NOTICE MUST BE GIVEN TO EACH PUBLIC 2 OFFICIAL OR EMPLOYEE OF INCLUSION IN THE EXPENSE REPORT 3 WITHIN SEVEN DAYS OF THE REPORT'S SUBMISSION TO THE 4 COMMISSION. NOTICE UNDER THIS SUBPARAGRAPH SHALL INCLUDE 5 THE INFORMATION WHICH WILL ENABLE THE PUBLIC OFFICIAL OR 6 EMPLOYEE TO COMPLY WITH SECTION 1105(B)(6) AND (7). FOR 7 PURPOSES OF THIS CHAPTER AND CHAPTER 11 (RELATING TO 8 ETHICS STANDARDS AND FINANCIAL DISCLOSURE), SECTION 9 1105(B)(6) AND (7) SHALL CONSTITUTE MUTUALLY EXCLUSIVE 10 CATEGORIES. 11 (III) REGULATIONS SHALL BE PROMULGATED UNDER SECTION 12 1310(C) (RELATING TO FILING FEES; FUND ESTABLISHED; 13 REGULATIONS) TO DEFINE MUTUALLY EXCLUSIVE CATEGORIES 14 UNDER SECTION 1105(B)(6) AND (7) AND TO DETERMINE WHETHER 15 A THING OF VALUE IS SUBJECT TO DISCLOSURE UNDER SECTION 16 1105(B)(6) OR (7). 17 (4) A LOBBYIST MUST SIGN THE REPORTS SUBMITTED BY EACH 18 PRINCIPAL REPRESENTED TO ATTEST TO THE VALIDITY AND ACCURACY 19 TO THE BEST OF THE LOBBYIST'S KNOWLEDGE. A LOBBYIST MAY 20 ATTACH A STATEMENT TO THE REPORT OF ANY PRINCIPAL, DESCRIBING 21 THE LIMITS OF THE LOBBYIST'S KNOWLEDGE CONCERNING THE 22 EXPENDITURES CONTAINED IN THE REPORT. 23 (5) THE EXPENSE REPORT SHALL ALSO INCLUDE THE NAME, 24 PERMANENT BUSINESS ADDRESS AND DAYTIME TELEPHONE NUMBER OF 25 ANY INDIVIDUAL, FIRM, ASSOCIATION, CORPORATION, PARTNERSHIP, 26 BUSINESS TRUST OR BUSINESS ENTITY WHICH CONTRIBUTED MORE THAN 27 10% OF THE TOTAL RESOURCES RECEIVED BY THE PRINCIPAL DURING 28 THE REPORTING PERIOD. 29 (6) A LOBBYIST SHALL SUBMIT A SEPARATE REPORT IF, DURING 30 THE REPORTING PERIOD, THE LOBBYIST ENGAGED IN LOBBYING WHICH 20050H0700B4884 - 53 -
1 WAS NOT CONTAINED IN THE REPORTS FILED BY THE PRINCIPAL OR 2 PRINCIPALS REPRESENTED BY THE LOBBYIST. A SEPARATE LOBBYIST 3 REPORT SHALL CONTAIN THE IDENTITY OF THE PRINCIPAL FOR WHOM 4 SUCH LOBBYING WAS PERFORMED AND SHALL CONTAIN ALL INFORMATION 5 REQUIRED UNDER PARAGRAPHS (2) AND (3). 6 (7) A REGISTERED PRINCIPAL OR REGISTERED LOBBYIST THAT 7 ATTEMPTS TO INFLUENCE AN AGENCY'S PREPARING, BIDDING, 8 ENTERING INTO OR APPROVING A CONTRACT SHALL ENSURE THAT THE 9 RELATED EXPENSES ARE INCLUDED UNDER PARAGRAPH (2). 10 (C) RECORDS RETENTION.--A REGISTRANT SHALL RETAIN ALL 11 DOCUMENTS REASONABLY NECESSARY TO SUBSTANTIATE THE REPORTS TO BE 12 MADE UNDER THIS SECTION FOR FOUR YEARS FROM THE DATE OF FILING 13 THE SUBJECT REPORT. UPON REQUEST BY THE OFFICE OF THE ATTORNEY 14 GENERAL OR THE COMMISSION, THESE MATERIALS SHALL BE MADE 15 AVAILABLE FOR INSPECTION WITHIN A REASONABLE PERIOD OF TIME. 16 (D) THRESHOLDS FOR REPORTING.--AN EXPENSE REPORT SHALL BE 17 FILED WHEN TOTAL EXPENSES FOR LOBBYING EXCEED $500 FOR A 18 REGISTERED PRINCIPAL OR A REGISTERED LOBBYIST IN A REPORTING 19 PERIOD. IN A REPORTING PERIOD IN WHICH TOTAL EXPENSES ARE $500 20 OR LESS, A STATEMENT TO THAT EFFECT SHALL BE FILED. 21 (E) VOLUNTARY DISCLOSURE.--NOTHING IN THIS SECTION SHALL 22 PREVENT A PRINCIPAL OR LOBBYIST FROM DISCLOSING EXPENSES IN 23 GREATER DETAIL THAN REQUIRED. 24 § 1306. EXEMPTION FROM REGISTRATION AND REPORTING. 25 THE FOLLOWING INDIVIDUALS AND ACTIVITIES SHALL BE EXEMPT FROM 26 REGISTRATION UNDER SECTION 1304 (RELATING TO REGISTRATION) AND 27 REPORTING UNDER SECTION 1305 (RELATING TO REPORTING): 28 (1) AN INDIVIDUAL WHO LIMITS LOBBYING ACTIVITIES TO 29 PREPARING TESTIMONY AND TESTIFYING BEFORE A COMMITTEE OF THE 30 LEGISLATURE OR PARTICIPATING IN AN ADMINISTRATIVE PROCEEDING 20050H0700B4884 - 54 -
1 OF AN AGENCY. 2 (2) AN INDIVIDUAL WHO IS AN EMPLOYEE OF AN ENTITY 3 ENGAGED IN THE BUSINESS OF PUBLISHING, BROADCASTING OR 4 TELEVISING WHILE ENGAGED IN THE GATHERING AND DISSEMINATION 5 OF NEWS AND COMMENT THEREON TO THE GENERAL PUBLIC IN THE 6 ORDINARY COURSE OF BUSINESS. 7 (3) ANY OF THE FOLLOWING: 8 (I) AN INDIVIDUAL WHO DOES NOT RECEIVE COMPENSATION, 9 OTHER THAN TRAVELING EXPENSES, FOR LOBBYING. 10 (II) AN INDIVIDUAL WHOSE COMPENSATION FOR LOBBYING, 11 FROM ALL PRINCIPALS REPRESENTED, DOES NOT EXCEED $2,500 12 IN THE AGGREGATE DURING ANY REPORTING PERIOD. 13 (III) AN INDIVIDUAL WHO ENGAGES IN LOBBYING ON 14 BEHALF OF THE INDIVIDUAL'S EMPLOYER AND WHERE LOBBYING 15 ACTIVITY REPRESENTS LESS THAN THE EQUIVALENT OF $2,500 OF 16 THE EMPLOYEE'S TIME DURING ANY REPORTING PERIOD, BASED ON 17 AN HOURLY PRORATION OF THE EMPLOYEE'S COMPENSATION. 18 (IV) A PRINCIPAL WHOSE TOTAL EXPENSES FOR LOBBYING 19 PURPOSES DO NOT EXCEED $2,500 DURING ANY REPORTING 20 PERIOD. 21 (4) ANY OF THE FOLLOWING: 22 (I) AN ELECTED STATE OFFICER ACTING IN AN OFFICIAL 23 CAPACITY. 24 (II) A STATE EXECUTIVE OFFICER APPOINTED BY THE 25 GOVERNOR ACTING IN AN OFFICIAL CAPACITY. 26 (III) AN ELECTED OR APPOINTED OFFICIAL OR EMPLOYEE 27 OF A POLITICAL SUBDIVISION ACTING IN AN OFFICIAL 28 CAPACITY. 29 (IV) AN EMPLOYEE OF THE COMMONWEALTH OR INDEPENDENT 30 AGENCY OF THE COMMONWEALTH ACTING IN AN OFFICIAL 20050H0700B4884 - 55 -
1 CAPACITY. 2 (5) AN INDIVIDUAL REPRESENTING A BONA FIDE CHURCH OF 3 WHICH THE INDIVIDUAL IS A MEMBER AND THE PURPOSE OF THE 4 LOBBYING IS SOLELY FOR THE PURPOSE OF PROTECTING THE 5 CONSTITUTIONAL RIGHT TO THE FREE EXERCISE OF RELIGION. 6 (6) AN EMPLOYEE, WHO IS NOT A REGISTERED LOBBYIST, OF A 7 CORPORATION WHICH: 8 (I) IS REGISTERED AS A PRINCIPAL UNDER SECTION 1304; 9 (II) HAS ONE OR MORE REGISTERED LOBBYISTS; AND 10 (III) INCLUDES IN ITS REPORTS UNDER SECTION 1305 ALL 11 OF THE EMPLOYEE'S EXPENSES RELATED TO LOBBYING. 12 § 1307. PROHIBITED ACTIVITIES. 13 (A) CONTINGENT COMPENSATION.-- 14 (1) NO ONE MAY COMPENSATE OR INCUR AN OBLIGATION TO 15 COMPENSATE ANY LOBBYIST, PRINCIPAL OR INDIVIDUAL TO ENGAGE IN 16 LOBBYING FOR COMPENSATION CONTINGENT IN WHOLE OR IN PART UPON 17 ANY OF THE FOLLOWING: 18 (I) PASSAGE OR DEFEAT, OR APPROVAL OR VETO, OF 19 LEGISLATION. 20 (II) OCCURRENCE OR NONOCCURRENCE OF AN 21 ADMINISTRATIVE ACTION. 22 (2) NO LOBBYIST, PRINCIPAL OR INDIVIDUAL MAY ENGAGE OR 23 AGREE TO ENGAGE IN LOBBYING FOR COMPENSATION CONTINGENT IN 24 WHOLE OR IN PART UPON ANY OF THE FOLLOWING: 25 (I) PASSAGE OR DEFEAT, OR APPROVAL OR VETO, OF 26 LEGISLATION. 27 (II) OCCURRENCE OR NONOCCURRENCE OF AN 28 ADMINISTRATIVE ACTION. 29 (B) POLITICAL COMMITTEES.--A LOBBYIST MAY NOT SERVE AS A 30 TREASURER OR ANOTHER OFFICER FOR A CANDIDATE'S POLITICAL 20050H0700B4884 - 56 -
1 COMMITTEE OR A CANDIDATE'S POLITICAL ACTION COMMITTEE. 2 (C) FEE RESTRICTIONS.--A LOBBYIST MAY NOT CHARGE A FEE OR 3 RECEIVE COMPENSATION OR ECONOMIC CONSIDERATION BASED UPON AN 4 UNDERSTANDING, EITHER WRITTEN OR ORAL, THAT ANY PART OF THE FEE, 5 COMPENSATION OR ECONOMIC CONSIDERATION WILL BE CONVERTED INTO A 6 CONTRIBUTION TO A CANDIDATE FOR PUBLIC OFFICE OR A POLITICAL 7 COMMITTEE. 8 (D) FALSIFICATION.--NO LOBBYIST OR PRINCIPAL MAY, FOR THE 9 PURPOSE OF INFLUENCING LEGISLATIVE ACTION OR ADMINISTRATIVE 10 ACTION, TRANSMIT, UTTER OR PUBLISH TO ANY STATE OFFICIAL OR 11 EMPLOYEE ANY COMMUNICATION, KNOWING THAT SUCH COMMUNICATION OR 12 ANY SIGNATURE ON THE COMMUNICATION IS FALSE, FORGED, COUNTERFEIT 13 OR FICTITIOUS. 14 § 1308. ADMINISTRATION AND ENFORCEMENT. 15 (A) CRIMINAL ENFORCEMENT.--IF THE COMMISSION BELIEVES AN 16 INTENTIONAL VIOLATION OF THIS CHAPTER HAS BEEN COMMITTED, IT 17 SHALL REFER ALL RELEVANT DOCUMENTS AND OTHER INFORMATION TO THE 18 OFFICE OF ATTORNEY GENERAL. 19 (B) ATTORNEY GENERAL.--IN ADDITION TO THE AUTHORITY 20 CONFERRED UPON THE ATTORNEY GENERAL UNDER THE ACT OF OCTOBER 15, 21 1980 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT, 22 THE ATTORNEY GENERAL HAS THE AUTHORITY TO INVESTIGATE AND 23 PROSECUTE A VIOLATION OF THIS CHAPTER. 24 (C) ADVICE AND OPINIONS.--THE COMMISSION SHALL PROVIDE 25 ADVICE AND OPINIONS IN ACCORDANCE WITH PROCEDURES SET FORTH IN 26 SECTION 1107 (RELATING TO POWERS AND DUTIES OF COMMISSION) TO A 27 LOBBYIST, PRINCIPAL OR STATE OFFICIAL OR EMPLOYEE WHO HAS A 28 QUESTION REGARDING COMPLIANCE WITH THIS CHAPTER. A PRINCIPAL, A 29 LOBBYIST OR AN INDIVIDUAL WHO ACTS IN GOOD FAITH BASED ON THE 30 WRITTEN ADVICE OR OPINION OF THE COMMISSION SHALL NOT BE HELD 20050H0700B4884 - 57 -
1 LIABLE FOR A VIOLATION OF THIS CHAPTER. 2 (D) PUBLIC INSPECTION AND COPYING.--THE COMMISSION SHALL 3 MAKE COMPLETED REGISTRATION STATEMENTS, EXPENSE REPORTS, 4 TERMINATION NOTICES AND TERMINATION REPORTS WHICH HAVE BEEN 5 FILED WITH THE COMMISSION AVAILABLE FOR PUBLIC INSPECTION AND 6 PROVIDE COPIES OF THESE DOCUMENTS AT A PRICE WHICH SHALL NOT 7 EXCEED THE ACTUAL COST OF COPYING. DOCUMENTS THAT ARE MAINTAINED 8 AND REPRODUCIBLE IN AN ELECTRONIC FORMAT SHALL BE PROVIDED IN 9 THAT FORMAT UPON REQUEST. 10 (E) ANNUAL REPORTING.--THE COMMISSION SHALL PREPARE AND 11 PUBLISH AN ANNUAL REPORT ON LOBBYING ACTIVITIES IN THIS 12 COMMONWEALTH. THE COMMISSION SHALL ALSO ANNUALLY PUBLISH A 13 LISTING OF PRINCIPALS, IDENTIFYING AFFILIATED POLITICAL ACTION 14 COMMITTEES AND LOBBYISTS, AND A LISTING OF LOBBYISTS, 15 IDENTIFYING AFFILIATED POLITICAL ACTION COMMITTEES AND 16 PRINCIPALS. 17 (F) RETENTION OF RECORDS.--COMPLETED REGISTRATION 18 STATEMENTS, EXPENSE REPORTS, TERMINATION NOTICES AND TERMINATION 19 REPORTS SHALL REMAIN ON FILE WITH THE COMMISSION FOR A FOUR-YEAR 20 PERIOD. 21 (G) AUDITS.--THE COMMISSION SHALL INITIATE, BY LOTTERY, 22 RANDOM ANNUAL AUDITS OF THE REGISTRATION STATEMENTS AND 23 DISCLOSURE REPORTS IN SUFFICIENT NUMBER TO ENSURE COMPLIANCE 24 WITH THIS CHAPTER. THE AUDIT REPORT AND FINDINGS SHALL BE 25 CONFIDENTIAL; HOWEVER, THE COMMISSION SHALL INCLUDE THE RELEVANT 26 PORTION OF AN AUDIT AS PART OF ITS FINDINGS OF FACT IN A 27 COMMISSION ORDER WHICH RESULTS FROM AN INVESTIGATION ARISING OUT 28 OF AN AUDIT. 29 (H) INVESTIGATION AND HEARINGS.--THE COMMISSION, THROUGH ITS 30 EXECUTIVE DIRECTOR, MAY INITIATE AN INVESTIGATION AND HOLD A 20050H0700B4884 - 58 -
1 HEARING CONCERNING NEGLIGENT CONDUCT BY A LOBBYIST OR PRINCIPAL 2 IN ACCORDANCE WITH SECTIONS 1107 AND 1108 (RELATING TO 3 INVESTIGATIONS BY COMMISSION). 4 (I) DIRECTORY.--ON OR BEFORE MAY 1 OF EACH ODD-NUMBERED 5 YEAR, THE COMMISSION SHALL PRODUCE AND DISTRIBUTE A DIRECTORY OF 6 ALL REGISTERED LOBBYISTS, INCLUDING PHOTOGRAPHS. COPIES OF THIS 7 DIRECTORY SHALL BE MADE AVAILABLE TO THE PUBLIC AT A PRICE NOT 8 TO EXCEED THE ACTUAL COST OF PRODUCTION. ALL REVENUE RECEIVED BY 9 THE COMMISSION FROM THE SALES OF THIS DIRECTORY SHALL BE 10 DEPOSITED INTO THE FUND. 11 (J) COMPUTER FILE.--THE LEGISLATIVE DATA PROCESSING 12 COMMITTEE SHALL MAINTAIN UPDATED REGISTRATION STATEMENTS, 13 EXPENSE REPORTS, TERMINATION NOTICES AND TERMINATION REPORTS. 14 (K) COST-OF-LIVING ADJUSTMENT.--ON A BIENNIAL BASIS 15 COMMENCING IN JANUARY 2002, THE COMMISSION SHALL REVIEW THE 16 THRESHOLD FOR REPORTING UNDER SECTION 1305(D) (RELATING TO 17 REPORTING) AND THE THRESHOLD FOR EXEMPTION UNDER SECTION 18 1306(3)(II) THROUGH (IV) (RELATING TO EXEMPTION FROM 19 REGISTRATION AND REPORTING) AND MAY INCREASE THESE AMOUNTS TO 20 RATES DEEMED REASONABLE FOR ASSURING APPROPRIATE DISCLOSURE. THE 21 COMMISSION SHALL PUBLISH ANY SUCH ADJUSTED THRESHOLD AMOUNTS IN 22 THE PENNSYLVANIA BULLETIN BY JUNE 1, 2002, AND EVERY TWO YEARS 23 THEREAFTER AS NECESSARY. 24 § 1309. PENALTIES. 25 (A) NOTICE OF NONCOMPLIANCE.--THE COMMISSION SHALL ISSUE A 26 NOTICE OF NONCOMPLIANCE TO ANY LOBBYIST, PRINCIPAL OR INDIVIDUAL 27 THAT HAS FAILED TO REGISTER OR REPORT AS REQUIRED BY THIS 28 CHAPTER. THE NOTICE SHALL STATE THE NATURE OF THE ALLEGED 29 NONCOMPLIANCE AND THE CIVIL AND CRIMINAL PENALTIES FOR FAILURE 30 TO REGISTER, FAILURE TO FILE OR FILING A REPORT CONTAINING A 20050H0700B4884 - 59 -
1 FALSE STATEMENT. THE NOTICE SHALL ALSO ADVISE OF THE RIGHT TO A 2 HEARING BEFORE THE COMMISSION AND THE TIME AND MANNER IN WHICH 3 TO REQUEST A HEARING. 4 (B) HEARING.--IF A HEARING IS REQUESTED, THE COMMISSION 5 SHALL DETERMINE AT THE HEARING WHETHER THE RECIPIENT OF THE 6 NOTICE IS REQUIRED TO REGISTER OR REPORT UNDER THIS CHAPTER, 7 WHETHER THE FAILURE TO REGISTER OR REPORT WAS NEGLIGENT AND, IF 8 THE FAILURE WAS NEGLIGENT, THE AMOUNT OF THE CIVIL PENALTY TO BE 9 IMPOSED. IF THE COMMISSION FINDS THAT THE FAILURE TO REGISTER OR 10 REPORT WAS INTENTIONAL, IT SHALL REFER THE MATTER TO THE 11 ATTORNEY GENERAL FOR INVESTIGATION AND PROSECUTION. HEARINGS 12 UNDER THIS SUBSECTION SHALL BE CONDUCTED BY THE COMMISSION IN 13 ACCORDANCE WITH SECTIONS 1107(14) (RELATING TO POWERS AND DUTIES 14 OF COMMISSION) AND 1108(E) (RELATING TO INVESTIGATIONS BY 15 COMMISSION). 16 (C) NEGLIGENT FAILURE TO REGISTER OR REPORT.--NEGLIGENT 17 FAILURE TO REGISTER OR REPORT AS REQUIRED BY THIS CHAPTER IS 18 PUNISHABLE BY A CIVIL PENALTY NOT EXCEEDING $50 FOR EACH LATE 19 DAY. AFTER A HEARING UNDER SUBSECTION (B), IN THE CASE OF 20 NEGLIGENT FAILURE TO REGISTER OR REPORT, THE COMMISSION MAY, 21 UPON THE MAJORITY VOTE OF ITS MEMBERS, LEVY A CIVIL PENALTY AS 22 PROVIDED FOR IN THIS SUBSECTION. THE TOTAL AMOUNT OF THE CIVIL 23 PENALTY LEVIED SHALL NOT BE LIMITED BY ANY OTHER PROVISION OF 24 LAW. THE COMMISSION SHALL HAVE STANDING TO APPLY TO COMMONWEALTH 25 COURT TO SEEK ENFORCEMENT OF AN ORDER IMPOSING A CIVIL PENALTY 26 UNDER THIS SECTION. 27 (D) FAILURE TO COMPLY AFTER NOTICE.--AFTER NOTICE OF 28 NONCOMPLIANCE AND AFTER A HEARING, IF ONE IS REQUESTED, A 29 LOBBYIST OR PRINCIPAL WHO FAILS TO COMPLY WITH THE REQUIREMENTS 30 OF THIS CHAPTER MAY BE PROHIBITED FROM LOBBYING FOR UP TO FIVE 20050H0700B4884 - 60 -
1 YEARS. THE PROHIBITION SHALL BE IMPOSED AS PROVIDED BY 2 SUBSECTION (E)(4). 3 (E) INTENTIONAL VIOLATIONS.-- 4 (1) ANY LOBBYIST, PRINCIPAL OR INDIVIDUAL THAT 5 INTENTIONALLY FAILS TO REGISTER OR REPORT AS REQUIRED BY THIS 6 CHAPTER COMMITS A MISDEMEANOR OF THE SECOND DEGREE. 7 (2) A REGISTRANT THAT FILES A REPORT UNDER THIS CHAPTER 8 WITH KNOWLEDGE THAT THE REPORT CONTAINS A FALSE STATEMENT 9 COMMITS A MISDEMEANOR OF THE SECOND DEGREE. 10 (3) EXCEPT AS SET FORTH IN PARAGRAPH (1) OR (2), ANY 11 LOBBYIST, PRINCIPAL OR INDIVIDUAL THAT INTENTIONALLY VIOLATES 12 THIS CHAPTER COMMITS A MISDEMEANOR OF THE THIRD DEGREE. 13 (4) IN ADDITION TO THE CRIMINAL PENALTIES IMPOSED BY 14 THIS SUBSECTION, THE COMMISSION MAY PROHIBIT A LOBBYIST OR 15 PRINCIPAL FROM LOBBYING FOR UP TO FIVE YEARS FOR DOING AN ACT 16 WHICH CONSTITUTES AN OFFENSE UNDER THIS SUBSECTION. NO 17 CRIMINAL PROSECUTION OR CONVICTION SHALL BE REQUIRED FOR THE 18 IMPOSITION OF THE PROHIBITION AUTHORIZED BY THIS PARAGRAPH. 19 THE PROHIBITION UNDER THIS PARAGRAPH SHALL NOT BE IMPOSED 20 UNLESS THE DEFENDANT HAS BEEN AFFORDED THE OPPORTUNITY FOR A 21 HEARING, WHICH SHALL BE CONDUCTED BY THE COMMISSION IN 22 ACCORDANCE WITH SECTIONS 1107(14) AND 1108(E). 23 § 1310. FILING FEES; FUND ESTABLISHED; REGULATIONS. 24 (A) FILING FEES.--A PRINCIPAL OR LOBBYIST REQUIRED TO BE 25 REGISTERED UNDER THIS CHAPTER SHALL PAY A BIENNIAL FILING FEE OF 26 $100 TO THE COMMISSION. 27 (B) FUND ESTABLISHED.--ALL MONEY RECEIVED FROM FILING FEES 28 UNDER SUBSECTION (A) SHALL BE DEPOSITED IN A RESTRICTED RECEIPTS 29 ACCOUNT TO BE KNOWN AS THE LOBBYING DISCLOSURE FUND. THE MONEY 30 DEPOSITED IN THE FUND IS HEREBY APPROPRIATED TO THE COMMISSION 20050H0700B4884 - 61 -
1 AS A CONTINUING APPROPRIATION FOR THE EXCLUSIVE PURPOSE OF 2 CARRYING OUT THE PROVISIONS OF THIS CHAPTER. 3 (C) REGULATIONS.--A COMMITTEE COMPRISED OF THE SECRETARY OF 4 THE SENATE, THE CHIEF CLERK OF THE HOUSE OF REPRESENTATIVES, THE 5 CHAIRMAN OF THE STATE ETHICS COMMISSION, THE ATTORNEY GENERAL, 6 THE SECRETARY OF THE COMMONWEALTH, THE AUDITOR GENERAL AND THE 7 GENERAL COUNSEL, OR THEIR DESIGNEES, SHALL HAVE CONTINUING 8 AUTHORITY TO PROMULGATE REGULATIONS NECESSARY TO CARRY OUT THIS 9 CHAPTER. THE CHAIRMAN OF THE COMMISSION SHALL BE DESIGNATED AS 10 THE CHAIRMAN OF THE COMMITTEE. THE INITIAL PROPOSED REGULATIONS 11 SHALL BE SUBMITTED WITHIN 180 DAYS OF THE EFFECTIVE DATE OF THIS 12 SECTION TO THE INDEPENDENT REGULATORY REVIEW COMMISSION UNDER 13 SECTION 5 OF THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN 14 AS THE REGULATORY REVIEW ACT. ANY MEETING AT WHICH THE COMMITTEE 15 PLANS TO APPROVE PROPOSED REGULATIONS SHALL BE HELD IN 16 ACCORDANCE WITH CHAPTER 7 (RELATING TO OPEN MEETINGS). THE 17 COMMITTEE SHALL ALSO PREPARE AND PUBLISH A MANUAL SETTING FORTH 18 GUIDELINES FOR ACCOUNTING AND REPORTING. THE REGULATIONS AND 19 MANUAL SHALL BE DRAFTED TO ACCOMMODATE THE USE OF COMPUTERIZED 20 RECORDKEEPING, ELECTRONIC FILING OF THE REPORTS PROVIDED FOR 21 UNDER THIS CHAPTER AND RETENTION OF REGISTRATION STATEMENTS AND 22 REPORTS PROVIDED FOR UNDER THIS CHAPTER BY ELECTRONIC MEANS. THE 23 DEPARTMENT OF STATE SHALL PROVIDE SUFFICIENT STAFF AND OTHER 24 ADMINISTRATIVE SUPPORT TO ASSIST THE COMMITTEE. 25 § 1311. SEVERABILITY. 26 (A) GENERAL RULE.--EXCEPT AS PROVIDED IN SUBSECTION (B): 27 (1) THE PROVISIONS OF THIS CHAPTER ARE SEVERABLE. 28 (2) IF ANY PROVISION OF THIS CHAPTER OR ITS APPLICATION 29 TO ANY PERSON OR CIRCUMSTANCE IS HELD INVALID, THE INVALIDITY 30 SHALL NOT AFFECT OTHER PROVISIONS OR APPLICATIONS OF THIS 20050H0700B4884 - 62 -
1 CHAPTER WHICH CAN BE GIVEN EFFECT WITHOUT THE INVALID 2 PROVISION OR APPLICATION. 3 (B) PRACTICE OF LAW.--IF ANY PROVISION OF THIS CHAPTER OR 4 ITS APPLICATION TO ANY PERSON OR CIRCUMSTANCE IS HELD INVALID ON 5 THE BASIS OF IMPROPER REGULATION OF THE PRACTICE OF LAW, THE 6 REMAINING PROVISIONS OR APPLICATIONS OF THIS CHAPTER ARE VOID.] 7 SECTION 3. TITLE 65 IS AMENDED BY ADDING A CHAPTER TO READ: 8 CHAPTER 13-A 9 LOBBYING DISCLOSURE 10 SEC. 11 1301-A. SCOPE OF CHAPTER. 12 1302-A. STATEMENT OF INTENT AND JURISDICTION. 13 1303-A. DEFINITIONS. 14 1304-A. REGISTRATION. 15 1305-A. REPORTING. 16 1306-A. EXEMPTION FROM REGISTRATION AND REPORTING. 17 1307-A. PROHIBITED ACTIVITIES. 18 1308-A. ADMINISTRATION. 19 1309-A. PENALTIES. 20 1310-A. REGISTRATION FEES; FUND ESTABLISHED; SYSTEM; 21 REGULATIONS. 22 1311-A. NONAPPLICABILITY. 23 § 1301-A. SCOPE OF CHAPTER. 24 THIS CHAPTER RELATES TO LOBBYING DISCLOSURE. 25 § 1302-A. STATEMENT OF INTENT AND JURISDICTION. 26 (A) INTENT.--THE CONSTITUTION OF PENNSYLVANIA RECOGNIZES 27 THAT ALL FREE GOVERNMENTS ARE FOUNDED UPON THE AUTHORITY OF THE 28 PEOPLE. IT FURTHER PROVIDES THAT THE POWER TO MAKE LAW IN THIS 29 COMMONWEALTH IS VESTED IN THE GENERAL ASSEMBLY, AND THE POWER TO 30 ENFORCE LAW IS VESTED IN THE EXECUTIVE DEPARTMENT. THE 20050H0700B4884 - 63 -
1 CONSTITUTION ALSO GUARANTEES THE PEOPLE THE RIGHT TO PETITION 2 THOSE INVESTED WITH THE POWERS OF GOVERNMENT FOR REDRESS OF 3 GRIEVANCES. THE ABILITY OF THE PEOPLE TO EXERCISE THEIR 4 FUNDAMENTAL AUTHORITY AND TO HAVE CONFIDENCE IN THE INTEGRITY OF 5 THE PROCESSES BY WHICH LAWS ARE MADE AND ENFORCED IN THIS 6 COMMONWEALTH DEMANDS THAT THE IDENTITY AND SCOPE OF ACTIVITY OF 7 THOSE WHO ARE PAID TO INFLUENCE THE ACTIONS OF THE GENERAL 8 ASSEMBLY AND THE EXECUTIVE DEPARTMENT BE PUBLICLY AND REGULARLY 9 DISCLOSED. 10 (B) JURISDICTION.--THE AUTHORITY TO REGULATE PERSONS 11 EMPLOYED TO INFLUENCE THE ACTIONS OF THE GENERAL ASSEMBLY AND 12 THE EXECUTIVE DEPARTMENT LIES WITHIN THE JURISDICTION OF THOSE 13 BRANCHES OF GOVERNMENT. TO ENSURE THAT THE INTENT OF THIS 14 CHAPTER IS NOT EVADED AND THAT ALL SUCH PERSONS ARE REGULATED IN 15 A FAIR AND EQUITABLE MANNER, LOBBYISTS AND THE PRACTICE OF 16 LOBBYING SHALL BE SUBJECT TO THIS CHAPTER, WHICH SHALL PREVAIL 17 OVER ANY OTHER REGULATION OF PROFESSIONAL ACTIVITY WHEN THAT 18 ACTIVITY CONSTITUTES LOBBYING. THIS CHAPTER IS NOT INTENDED TO 19 GOVERN PROFESSIONAL ACTIVITIES WHICH DO NOT INCLUDE LOBBYING AND 20 ARE PROPERLY THE SUBJECT OF REGULATION BY THE JUDICIAL BRANCH OF 21 GOVERNMENT OR BY ANY GOVERNMENT AGENCY. 22 (C) REGULATED PROFESSION.--MEMBERSHIP IN A REGULATED 23 PROFESSION SHALL NOT EXCUSE A LOBBYIST FROM COMPLIANCE WITH THIS 24 CHAPTER. 25 (D) ADMINISTRATIVE AGENCY LAW.--PROCEEDINGS OF THE 26 COMMISSION ARE SUBJECT TO 2 PA.C.S. CHS. 5 SUBCH. A (RELATING TO 27 PRACTICE AND PROCEDURE OF COMMONWEALTH AGENCIES) AND 7 SUBCH. A 28 (RELATING TO JUDICIAL REVIEW OF COMMONWEALTH AGENCY ACTION). 29 § 1303-A. DEFINITIONS. 30 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER 20050H0700B4884 - 64 -
1 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE 2 CONTEXT CLEARLY INDICATES OTHERWISE: 3 "ADMINISTRATIVE ACTION." ANY OF THE FOLLOWING: 4 (1) AN AGENCY'S: 5 (I) PROPOSAL, CONSIDERATION, PROMULGATION OR 6 RESCISSION OF A REGULATION; 7 (II) DEVELOPMENT OR MODIFICATION OF A STATEMENT OF 8 POLICY; 9 (III) APPROVAL OR REJECTION OF A REGULATION; OR 10 (IV) PROCUREMENT OF SUPPLIES, SERVICES AND 11 CONSTRUCTION UNDER 62 PA.C.S. (RELATING TO PROCUREMENT). 12 (2) THE REVIEW, REVISION, APPROVAL OR DISAPPROVAL OF A 13 REGULATION UNDER THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), 14 KNOWN AS THE REGULATORY REVIEW ACT. 15 (3) THE GOVERNOR'S APPROVAL OR VETO OF LEGISLATION. 16 (4) THE NOMINATION OR APPOINTMENT OF AN INDIVIDUAL AS AN 17 OFFICER OR EMPLOYEE OF THE COMMONWEALTH. 18 (5) THE PROPOSAL, CONSIDERATION, PROMULGATION OR 19 RESCISSION OF AN EXECUTIVE ORDER. 20 "AFFILIATED POLITICAL ACTION COMMITTEE." AS FOLLOWS: 21 (1) EXCEPT AS SET FORTH IN PARAGRAPH (2), A "POLITICAL 22 ACTION COMMITTEE" AS DEFINED IN SECTION 1621(L) OF THE ACT OF 23 JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS THE PENNSYLVANIA 24 ELECTION CODE, WHICH HAS AN OFFICER WHO: 25 (I) MUST BE INCLUDED IN A REGISTRATION STATEMENT 26 UNDER SECTION 1624(B)(2) AND (3) OF THE PENNSYLVANIA 27 ELECTION CODE; AND 28 (II) IS: 29 (A) A PRINCIPAL; 30 (B) AN OFFICER OR AN EMPLOYEE OF A PRINCIPAL; 20050H0700B4884 - 65 -
1 (C) A LOBBYIST; OR 2 (D) AN EMPLOYEE OF A LOBBYIST. 3 (2) IF AN EMPLOYEE OF A REGISTRANT SERVES AS THE OFFICER 4 OF A POLITICAL ACTION COMMITTEE IN WHAT IS CLEARLY A PERSONAL 5 CAPACITY AND THE GOALS AND MISSION OF THAT POLITICAL ACTION 6 COMMITTEE CLEARLY HAVE NO RELATIONSHIP TO THE GOALS AND 7 MISSION OF THE REGISTRANT, THAT POLITICAL ACTION COMMITTEE 8 SHALL NOT BE CONSIDERED AN AFFILIATED POLITICAL ACTION 9 COMMITTEE FOR THE PURPOSES OF THIS DEFINITION. 10 "AGENCY." AN AGENCY, BOARD, COMMISSION, AUTHORITY OR 11 DEPARTMENT OF THE EXECUTIVE DEPARTMENT OF THE COMMONWEALTH. 12 "ATTORNEY AT LAW." AN INDIVIDUAL ADMITTED TO PRACTICE LAW BY 13 A COURT OF RECORD OF THIS COMMONWEALTH. 14 "BIDDER." AS DEFINED IN 62 PA.C.S. § 103 (RELATING TO 15 DEFINITIONS). 16 "BOARD." THE DISCIPLINARY BOARD OF THE SUPREME COURT OF 17 PENNSYLVANIA. 18 "COMMISSION." THE STATE ETHICS COMMISSION. 19 "COMPENSATION." ANYTHING OF VALUE, INCLUDING BENEFITS, 20 RECEIVED OR TO BE RECEIVED FROM A PRINCIPAL BY ONE ACTING AS A 21 LOBBYIST. 22 "CONTRACTOR." AS DEFINED IN 62 PA.C.S. § 103 (RELATING TO 23 DEFINITIONS). 24 "DEPARTMENT." THE DEPARTMENT OF STATE OF THE COMMONWEALTH. 25 "DIRECT COMMUNICATION." AN EFFORT, WHETHER WRITTEN, ORAL OR 26 BY ANY OTHER MEDIUM, MADE BY A LOBBYIST OR PRINCIPAL, DIRECTED 27 TO A STATE OFFICIAL OR EMPLOYEE, THE PURPOSE OR FORESEEABLE 28 EFFECT OF WHICH IS TO INFLUENCE LEGISLATIVE ACTION OR 29 ADMINISTRATIVE ACTION. THE TERM MAY INCLUDE PERSONNEL EXPENSES 30 AND OFFICE EXPENSES. 20050H0700B4884 - 66 -
1 "ECONOMIC CONSIDERATION." ANYTHING OF VALUE OFFERED OR 2 RECEIVED. THE TERM INCLUDES COMPENSATION AND REIMBURSEMENT FOR 3 EXPENSES. 4 "FUND." THE LOBBYING DISCLOSURE FUND ESTABLISHED IN SECTION 5 1310-A (B) (RELATING TO REGISTRATION FEES; FUND ESTABLISHED; 6 SYSTEM; REGULATIONS). 7 "GIFT." ANYTHING WHICH IS RECEIVED WITHOUT CONSIDERATION OF 8 EQUAL OR GREATER VALUE. THE TERM SHALL NOT INCLUDE A POLITICAL 9 CONTRIBUTION OTHERWISE REPORTABLE AS REQUIRED BY LAW OR A 10 COMMERCIALLY REASONABLE LOAN MADE IN THE ORDINARY COURSE OF 11 BUSINESS. THE TERM SHALL NOT INCLUDE HOSPITALITY, TRANSPORTATION 12 OR LODGING. 13 "HOSPITALITY." INCLUDES ALL OF THE FOLLOWING: 14 (1) MEALS. 15 (2) BEVERAGES. 16 (3) RECREATION AND ENTERTAINMENT. 17 THE TERM SHALL NOT INCLUDE GIFTS, TRANSPORTATION OR LODGING. 18 "IMMEDIATE FAMILY." AN INDIVIDUAL'S SPOUSE, CHILD, PARENT, 19 BROTHER, SISTER AND LIKE RELATIVE-IN-LAW. 20 "INDIRECT COMMUNICATION." AN EFFORT, WHETHER WRITTEN, ORAL 21 OR BY ANY OTHER MEDIUM, TO ENCOURAGE OTHERS, INCLUDING THE 22 GENERAL PUBLIC, TO TAKE ACTION, THE PURPOSE OR FORESEEABLE 23 EFFECT OF WHICH IS TO DIRECTLY INFLUENCE LEGISLATIVE ACTION OR 24 ADMINISTRATIVE ACTION. 25 (1) THE TERM INCLUDES LETTER-WRITING CAMPAIGNS, 26 MAILINGS, TELEPHONE BANKS, PRINT AND ELECTRONIC MEDIA 27 ADVERTISING, BILLBOARDS, PUBLICATIONS AND EDUCATIONAL 28 CAMPAIGNS ON PUBLIC ISSUES. 29 (2) THE TERM DOES NOT INCLUDE REGULARLY PUBLISHED 30 PERIODIC NEWSLETTERS PRIMARILY DESIGNED FOR AND DISTRIBUTED 20050H0700B4884 - 67 -
1 TO MEMBERS OF A BONA FIDE ASSOCIATION OR CHARITABLE OR 2 FRATERNAL NONPROFIT CORPORATION. 3 (3) THE TERM MAY INCLUDE PERSONNEL EXPENSES AND OFFICE 4 EXPENSES. 5 "LEGISLATION." BILLS, RESOLUTIONS, AMENDMENTS AND 6 NOMINATIONS PENDING OR PROPOSED IN EITHER THE SENATE OR THE 7 HOUSE OF REPRESENTATIVES. THE TERM INCLUDES ANY OTHER MATTER 8 WHICH MAY BECOME THE SUBJECT OF ACTION BY EITHER CHAMBER OF THE 9 GENERAL ASSEMBLY. 10 "LEGISLATIVE ACTION." AN ACTION TAKEN BY A STATE OFFICIAL OR 11 EMPLOYEE INVOLVING THE PREPARATION, RESEARCH, DRAFTING, 12 INTRODUCTION, CONSIDERATION, MODIFICATION, AMENDMENT, APPROVAL, 13 PASSAGE, ENACTMENT, TABLING, POSTPONEMENT, DEFEAT OR REJECTION 14 OF: 15 (1) LEGISLATION; 16 (2) LEGISLATIVE MOTIONS; 17 (3) A VETO BY THE GOVERNOR; OR 18 (4) CONFIRMATION OF APPOINTMENTS BY THE GOVERNOR OR 19 APPOINTMENTS TO PUBLIC BOARDS OR COMMISSIONS BY A MEMBER OF 20 THE GENERAL ASSEMBLY. 21 "LOBBYING." AN EFFORT TO INFLUENCE LEGISLATIVE ACTION OR 22 ADMINISTRATIVE ACTION IN THIS COMMONWEALTH. THE TERM INCLUDES: 23 (1) DIRECT OR INDIRECT COMMUNICATION; 24 (2) OFFICE EXPENSES; AND 25 (3) PROVIDING ANY GIFT, HOSPITALITY, TRANSPORTATION OR 26 LODGING TO A STATE OFFICIAL OR EMPLOYEE FOR THE PURPOSE OF 27 ADVANCING THE INTEREST OF THE LOBBYIST OR PRINCIPAL. 28 "LOBBYING FIRM." AN ENTITY THAT ENGAGES IN LOBBYING FOR 29 ECONOMIC CONSIDERATION ON BEHALF OF A PRINCIPAL OTHER THAN THE 30 ENTITY ITSELF. 20050H0700B4884 - 68 -
1 "LOBBYIST." ANY INDIVIDUAL, ASSOCIATION, CORPORATION, 2 PARTNERSHIP, BUSINESS TRUST OR OTHER ENTITY THAT ENGAGES IN 3 LOBBYING ON BEHALF OF A PRINCIPAL FOR ECONOMIC CONSIDERATION. 4 THE TERM INCLUDES AN ATTORNEY AT LAW WHILE ENGAGED IN LOBBYING. 5 "OFFEROR." AS DEFINED IN 62 PA.C.S. § 103 (RELATING TO 6 DEFINITIONS). 7 "OFFICE EXPENSE." AN EXPENDITURE FOR AN OFFICE, EQUIPMENT OR 8 SUPPLIES, UTILIZED FOR LOBBYING. 9 "PERSONNEL EXPENSE." AN EXPENDITURE FOR SALARIES OR OTHER 10 FORMS OF COMPENSATION, BENEFITS, VEHICLE ALLOWANCES, BONUSES AND 11 REIMBURSABLE EXPENSES PAID TO LOBBYISTS, LOBBYING STAFF, 12 RESEARCH AND MONITORING STAFF, CONSULTANTS, PUBLICATIONS AND 13 PUBLIC RELATIONS STAFF, TECHNICAL STAFF, CLERICAL AND 14 ADMINISTRATIVE SUPPORT STAFF AND INCLUDES INDIVIDUALS WHO ENGAGE 15 IN LOBBYING BUT ARE EXEMPT FROM REPORTING UNDER SECTION 1306-A 16 (RELATING TO EXEMPTION FROM REGISTRATION AND REPORTING). FOR AN 17 INDIVIDUAL FOR WHOM LOBBYING IS INCIDENTAL TO REGULAR 18 EMPLOYMENT, THE TERM MEANS A GOOD FAITH PRORATED ESTIMATE BASED 19 ON THE VALUE OF THE TIME DEVOTED TO LOBBYING. 20 "PRINCIPAL." AN INDIVIDUAL, ASSOCIATION, CORPORATION, 21 PARTNERSHIP, BUSINESS TRUST OR OTHER ENTITY: 22 (1) ON WHOSE BEHALF A LOBBYING FIRM OR LOBBYIST ENGAGES 23 IN LOBBYING; OR 24 (2) THAT ENGAGES IN LOBBYING ON THE PRINCIPAL'S OWN 25 BEHALF. 26 "REGISTRANT." A REGISTERED LOBBYIST, REGISTERED LOBBYING 27 FIRM OR REGISTERED PRINCIPAL. 28 "REGULATION." ANY RULE, REGULATION OR ORDER IN THE NATURE OF 29 A RULE OR REGULATION, INCLUDING FORMAL AND INFORMAL OPINIONS OF 30 THE ATTORNEY GENERAL, OF GENERAL APPLICATION AND FUTURE EFFECT, 20050H0700B4884 - 69 -
1 PROMULGATED BY AN AGENCY UNDER STATUTORY AUTHORITY IN THE 2 ADMINISTRATION OF A STATUTE ADMINISTERED BY OR RELATING TO THE 3 AGENCY OR PRESCRIBING THE PRACTICE OR PROCEDURE BEFORE THE 4 AGENCY. 5 "REPORTING PERIOD." ANY OF THE FOLLOWING PERIODS: 6 (1) JANUARY 1 THROUGH MARCH 31. 7 (2) APRIL 1 THROUGH JUNE 30. 8 (3) JULY 1 THROUGH SEPTEMBER 30. 9 (4) OCTOBER 1 THROUGH DECEMBER 31. 10 "STATE BUDGET PROCESS." THE CONSIDERATION AND PASSAGE OF 11 ACTS RELATING TO EXPENDITURES OF FUNDS AND THE GENERATION OF 12 REVENUES BY THE GENERAL ASSEMBLY. 13 "STATEMENT OF POLICY." THE TERM INCLUDES A GUIDELINE. 14 "STATE OFFICIAL OR EMPLOYEE." AN INDIVIDUAL ELECTED OR 15 APPOINTED TO A POSITION IN STATE GOVERNMENT OR EMPLOYED BY STATE 16 GOVERNMENT, WHETHER COMPENSATED OR UNCOMPENSATED, WHO IS 17 INVOLVED IN LEGISLATIVE ACTION OR ADMINISTRATIVE ACTION. 18 "VENDOR." ANY OFFEROR, BIDDER OR CONTRACTOR THAT, FOR 19 ECONOMIC CONSIDERATION, SELLS OR PROVIDES A SERVICE OR SUPPLY OR 20 ENGAGES IN CONSTRUCTION. THE TERM DOES NOT INCLUDE AN ATTORNEY 21 AT LAW, A LOBBYIST OR A LOBBYING FIRM. 22 § 1304-A. REGISTRATION. 23 (A) GENERAL RULE.--UNLESS EXCLUDED UNDER SECTION 1306-A 24 (RELATING TO EXEMPTION FROM REGISTRATION AND REPORTING), A 25 LOBBYIST, LOBBYING FIRM OR A PRINCIPAL MUST REGISTER WITH THE 26 DEPARTMENT WITHIN TEN DAYS OF ACTING IN ANY CAPACITY AS A 27 LOBBYIST, LOBBYING FIRM OR PRINCIPAL. REGISTRATION SHALL BE 28 BIENNIAL AND SHALL BEGIN JANUARY 1, 2007. 29 (B) PRINCIPALS AND LOBBYING FIRMS.-- 30 (1) A PRINCIPAL OR LOBBYING FIRM REQUIRED TO REGISTER 20050H0700B4884 - 70 -
1 UNDER SUBSECTION (A) SHALL FILE A SINGLE REGISTRATION 2 STATEMENT SETTING FORTH THE FOLLOWING INFORMATION WITH THE 3 DEPARTMENT: 4 (I) NAME. 5 (II) PERMANENT ADDRESS. 6 (III) DAYTIME TELEPHONE NUMBER. 7 (IV) E-MAIL ADDRESS, IF AVAILABLE. 8 (V) NAME AND NATURE OF BUSINESS. 9 (VI) NAME, REGISTRATION NUMBER AND ACRONYM OF ANY 10 AFFILIATED POLITICAL ACTION COMMITTEES. 11 (VII) NAME AND PERMANENT BUSINESS ADDRESS OF EACH 12 INDIVIDUAL WHO WILL FOR ECONOMIC CONSIDERATION ENGAGE IN 13 LOBBYING ON BEHALF OF THE PRINCIPAL OR LOBBYING FIRM. 14 (VIII) REGISTRATION NUMBER WHEN AVAILABLE. 15 (2) A LOBBYING FIRM SHALL INCLUDE IN ITS STATEMENT UNDER 16 PARAGRAPH (1) THE FOLLOWING INFORMATION FOR EACH 17 PRINCIPAL IT REPRESENTS: 18 (I) NAME. 19 (II) PERMANENT BUSINESS ADDRESS. 20 (III) TELEPHONE NUMBER. 21 (IV) REGISTRATION NUMBER WHEN AVAILABLE. 22 (3) A PRINCIPAL THAT IS AN ASSOCIATION OR ORGANIZATION 23 SHALL INCLUDE IN ITS STATEMENT UNDER PARAGRAPH (1) THE NUMBER 24 OF DUES-PAYING MEMBERS OF THE ASSOCIATION OR ORGANIZATION IN 25 THE MOST RECENTLY COMPLETED CALENDAR YEAR. 26 (C) LOBBYIST.--A LOBBYIST WHO IS REQUIRED TO REGISTER UNDER 27 SUBSECTION (A) SHALL FILE A SINGLE REGISTRATION STATEMENT 28 SETTING FORTH THE FOLLOWING INFORMATION WITH THE DEPARTMENT: 29 (1) NAME. 30 (2) PERMANENT BUSINESS ADDRESS. 20050H0700B4884 - 71 -
1 (3) DAYTIME TELEPHONE NUMBER. 2 (4) E-MAIL ADDRESS, IF AVAILABLE. 3 (5) A RECENT PHOTOGRAPH OF THE LOBBYIST. 4 (6) NAME, PERMANENT BUSINESS ADDRESS, DAYTIME TELEPHONE 5 NUMBER AND REGISTRATION NUMBER WHEN AVAILABLE OF EACH 6 PRINCIPAL FOR WHOM THE LOBBYIST WILL ENGAGE IN LOBBYING. 7 (7) NAME AND REGISTRATION NUMBER WHEN AVAILABLE OF ANY 8 LOBBYING FIRM WITH WHICH THE LOBBYIST HAS A RELATIONSHIP 9 INVOLVING ECONOMIC CONSIDERATION. 10 (8) NAME, REGISTRATION NUMBER AND ACRONYM OF ANY 11 AFFILIATED POLITICAL ACTION COMMITTEES. 12 (9) NAME, REGISTRATION NUMBER AND ACRONYM OF ANY 13 CANDIDATE POLITICAL COMMITTEE OF WHICH THE LOBBYIST IS AN 14 OFFICER WHO MUST BE INCLUDED IN A REGISTRATION STATEMENT 15 UNDER SECTION 1624(B)(2) AND (3) OF THE ACT OF JUNE 3, 1937 16 (P.L.1333, NO.320), KNOWN AS THE PENNSYLVANIA ELECTION CODE. 17 (D) AMENDMENTS.-- 18 (1) IF THERE IS A CHANGE OF INFORMATION REQUIRED FOR THE 19 REGISTRATION STATEMENT UNDER SUBSECTION (B)(1) OR (2) OR (C), 20 AN AMENDED REGISTRATION STATEMENT SHALL BE FILED WITH THE 21 DEPARTMENT WITHIN 14 DAYS AFTER THE CHANGE OCCURS. 22 (2) WHEN THERE IS A CHANGE IN INFORMATION REQUIRED FOR 23 THE REGISTRATION STATEMENT UNDER SUBSECTION (B)(3), AN 24 AMENDED REGISTRATION STATEMENT SHALL BE FILED WITH THE 25 DEPARTMENT WITHIN 14 DAYS OF THE END OF THE YEAR IN WHICH THE 26 CHANGE OCCURS. 27 (E) TERMINATION.-- 28 (1) A LOBBYIST, LOBBYING FIRM OR PRINCIPAL MAY TERMINATE 29 REGISTRATION BY FILING NOTICE OF TERMINATION WITH THE 30 DEPARTMENT. 20050H0700B4884 - 72 -
1 (2) AFTER A REVIEW OF THE NOTICE OF TERMINATION, BUT NO 2 LATER THAN 15 DAYS AFTER RECEIPT OF THE NOTICE, THE 3 DEPARTMENT SHALL ISSUE TO THE LOBBYIST, LOBBYING FIRM OR 4 PRINCIPAL A LETTER STATING THAT THE REGISTRANT HAS TERMINATED 5 REGISTRATION. THE FILING OF NOTICE SHALL NOT AFFECT THE 6 COMMISSION'S AUTHORITY TO CONDUCT INVESTIGATIONS AND HEARINGS 7 UNDER SECTION 1308-A(G) (RELATING TO ADMINISTRATION). 8 (3) NO LOBBYING MAY OCCUR AFTER THE FILING OF NOTICE OF 9 TERMINATION UNLESS THE LOBBYING IS PURSUANT TO A SEPARATE 10 REGISTRATION STATEMENT WHICH IS FILED WITH THE DEPARTMENT AND 11 WHICH, AT THE TIME OF THE LOBBYING, HAS NOT BEEN TERMINATED. 12 (4) NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO 13 EXEMPT A LOBBYIST, LOBBYING FIRM OR PRINCIPAL FROM ANY OF THE 14 REQUIREMENTS IN SECTION 1305-A (RELATING TO REPORTING). 15 § 1305-A. REPORTING. 16 (A) GENERAL RULE.--A REGISTERED PRINCIPAL SHALL, UNDER OATH 17 OR AFFIRMATION, FILE QUARTERLY EXPENSE REPORTS WITH THE 18 DEPARTMENT NO LATER THAN 30 DAYS AFTER THE LAST DAY OF THE 19 QUARTER. 20 (B) CONTENT.-- 21 (1) EACH EXPENSE REPORT MUST LIST THE NAMES AND 22 REGISTRATION NUMBERS WHEN AVAILABLE OF ALL LOBBYISTS BY WHOM 23 LOBBYING IS CONDUCTED ON BEHALF OF THE PRINCIPAL AND THE 24 GENERAL SUBJECT MATTER OR ISSUE BEING LOBBIED. 25 (2) EACH EXPENSE REPORT SHALL INCLUDE THE TOTAL COSTS OF 26 ALL LOBBYING FOR THE PERIOD. THE TOTAL SHALL INCLUDE ALL 27 OFFICE EXPENSES, PERSONNEL EXPENSES, EXPENDITURES RELATED TO 28 GIFTS, HOSPITALITY, TRANSPORTATION AND LODGING TO STATE 29 OFFICIALS OR EMPLOYEES, AND ANY OTHER LOBBYING COSTS. THE 30 TOTAL AMOUNT REPORTED UNDER THIS PARAGRAPH SHALL BE ALLOCATED 20050H0700B4884 - 73 -
1 IN ITS ENTIRETY AMONG THE FOLLOWING CATEGORIES: 2 (I) THE COSTS FOR GIFTS, HOSPITALITY, TRANSPORTATION 3 AND LODGING GIVEN TO OR PROVIDED TO STATE OFFICIALS OR 4 EMPLOYEES OR THEIR IMMEDIATE FAMILIES. 5 (II) THE COSTS FOR DIRECT COMMUNICATION. 6 (III) THE COSTS FOR INDIRECT COMMUNICATION. 7 (IV) EXPENSES REQUIRED TO BE REPORTED UNDER THIS 8 SUBSECTION SHALL BE ALLOCATED TO ONE OF THE THREE 9 CATEGORIES LISTED UNDER THIS SECTION AND SHALL NOT BE 10 INCLUDED IN MORE THAN ONE CATEGORY. 11 (2.1) FOR PURPOSES OF FILING AN EXPENSE REPORT UNDER 12 THIS SUBSECTION, A REGISTRANT MAY USE ANY REASONABLE METHODS 13 OF ESTIMATION AND ALLOCATION. 14 (3) THE FOLLOWING APPLY: 15 (I) IN ADDITION TO REPORTING THE TOTALS REQUIRED 16 UNDER THIS SUBSECTION, THE EXPENSE REPORT MUST IDENTIFY, 17 BY NAME, POSITION AND EACH OCCURRENCE, A STATE OFFICIAL 18 OR EMPLOYEE WHO RECEIVES FROM A PRINCIPAL OR LOBBYIST 19 ANYTHING OF VALUE WHICH MUST BE INCLUDED IN THE STATEMENT 20 UNDER SECTION 1105(B)(6) OR (7) (RELATING TO STATEMENT OF 21 FINANCIAL INTERESTS) AS IMPLEMENTED BY SECTION 1105(D). 22 (II) FOR PURPOSES OF THIS CHAPTER, THE AMOUNT 23 REFERRED TO IN SECTION 1105(B)(7) SHALL BE CONSIDERED AN 24 AGGREGATE AMOUNT PER YEAR. 25 (III) FOR PURPOSES OF THIS CHAPTER, THE AMOUNT 26 REFERRED TO IN SECTION 1105(B)(7) SHALL NOT INCLUDE THE 27 COST OF A RECEPTION WHICH THE STATE OFFICIAL OR EMPLOYEE 28 ATTENDS IN CONNECTION WITH PUBLIC OFFICE OR EMPLOYMENT. 29 (IV) WRITTEN NOTICE MUST BE GIVEN TO EACH STATE 30 OFFICIAL OR EMPLOYEE WHO IS LISTED IN AN EXPENSE REPORT 20050H0700B4884 - 74 -
1 UNDER THIS PARAGRAPH AT LEAST SEVEN DAYS PRIOR TO THE 2 REPORT'S SUBMISSION TO THE DEPARTMENT. NOTICE UNDER THIS 3 SUBPARAGRAPH SHALL INCLUDE THE INFORMATION WHICH WILL 4 ENABLE THE STATE OFFICIAL OR EMPLOYEE TO COMPLY WITH 5 SECTION 1105(B)(6) AND (7). FOR PURPOSES OF THIS CHAPTER 6 AND CHAPTER 11 (RELATING TO ETHICS STANDARDS AND 7 FINANCIAL DISCLOSURE), SECTION 1105(B)(6) AND (7) SHALL 8 CONSTITUTE MUTUALLY EXCLUSIVE CATEGORIES. FOR EACH 9 CATEGORY ENUMERATED IN PARAGRAPH (2)(I), EACH NOTICE 10 SHALL INCLUDE BOTH THE AMOUNT INCURRED DURING THE QUARTER 11 AND THE CUMULATIVE AMOUNT INCURRED FROM JANUARY 1 THROUGH 12 THE END OF THE APPLICABLE QUARTER. 13 (V) THIS PARAGRAPH SHALL NOT APPLY TO ANYTHING OF 14 VALUE RECEIVED FROM IMMEDIATE FAMILY WHEN THE 15 CIRCUMSTANCES MAKE IT CLEAR THAT MOTIVATION FOR THE 16 ACTION WAS THE PERSONAL OR FAMILY RELATIONSHIP. 17 (4) A LOBBYING FIRM OR A LOBBYIST NOT ASSOCIATED WITH A 18 LOBBYING FIRM SHALL SIGN THE REPORTS SUBMITTED BY EACH 19 PRINCIPAL FOR WHOM THE LOBBYING FIRM OR LOBBYIST IS 20 REGISTERED TO ATTEST TO THE VALIDITY AND ACCURACY TO THE BEST 21 OF THE ATTESTOR'S KNOWLEDGE. A LOBBYING FIRM OR LOBBYIST MAY 22 ATTACH A STATEMENT TO THE REPORT OF A PRINCIPAL, DESCRIBING 23 THE LIMITS OF THE KNOWLEDGE OF THE LOBBYING FIRM OR LOBBYIST 24 CONCERNING THE INFORMATION CONTAINED IN THE EXPENSE REPORT. 25 (5) THE EXPENSE REPORT SHALL ALSO INCLUDE THE NAME, 26 PERMANENT BUSINESS ADDRESS AND DAYTIME TELEPHONE NUMBER OF 27 ANY INDIVIDUAL, ASSOCIATION, CORPORATION, PARTNERSHIP, 28 BUSINESS TRUST OR OTHER BUSINESS ENTITY WHICH CONTRIBUTED 29 MORE THAN 10% OF THE TOTAL RESOURCES RECEIVED BY THE 30 PRINCIPAL DURING THE REPORTING PERIOD. 20050H0700B4884 - 75 -
1 (6) A LOBBYING FIRM OR A LOBBYIST NOT ASSOCIATED WITH A 2 LOBBYING FIRM SHALL SUBMIT AN EXPENSE REPORT IF DURING THE 3 REPORTING PERIOD THE LOBBYING FIRM OR LOBBYIST ENGAGED IN 4 LOBBYING WHICH WAS NOT CONTAINED IN ANY EXPENSE REPORT FILED 5 BY A PRINCIPAL OR PRINCIPALS REPRESENTED. 6 (7) A REGISTERED PRINCIPAL THAT ATTEMPTS OR THAT RETAINS 7 A LOBBYING FIRM OR LOBBYIST TO ATTEMPT TO INFLUENCE AN 8 AGENCY'S PREPARING, BIDDING, ENTERING INTO OR APPROVING A 9 CONTRACT SHALL ENSURE THAT THE RELATED EXPENSES ARE INCLUDED 10 UNDER PARAGRAPH (2). 11 (8) A LOBBYING FIRM OR A LOBBYIST NOT ASSOCIATED WITH A 12 LOBBYING FIRM SHALL SUBMIT A REPORT IF THE LOBBYING FIRM OR 13 LOBBYIST ENGAGED IN LOBBYING ON BEHALF OF ANY ENTITY THAT IS 14 EXEMPT UNDER SECTION 1306-A (7), (8), (9) OR (10) (RELATING 15 TO EXEMPTION FROM REGISTRATION AND REPORTING). 16 (C) RECORDS RETENTION.--A REGISTRANT SHALL RETAIN ALL 17 DOCUMENTS REASONABLY NECESSARY TO SUBSTANTIATE THE REPORTS TO BE 18 MADE UNDER THIS SECTION FOR FOUR YEARS FROM THE DATE OF FILING 19 THE SUBJECT REPORT. UPON REQUEST BY THE OFFICE OF ATTORNEY 20 GENERAL, THE BOARD, THE COMMISSION OR THE DEPARTMENT, THESE 21 MATERIALS SHALL BE MADE AVAILABLE FOR INSPECTION WITHIN A 22 REASONABLE PERIOD OF TIME. 23 (D) THRESHOLDS FOR REPORTING.--AN EXPENSE REPORT REQUIRED 24 UNDER THIS SECTION SHALL BE FILED WHEN TOTAL EXPENSES FOR 25 LOBBYING EXCEED $2,500 FOR A REGISTERED PRINCIPAL IN A REPORTING 26 PERIOD. IN A REPORTING PERIOD IN WHICH TOTAL EXPENSES ARE $2,500 27 OR LESS, A STATEMENT TO THAT EFFECT SHALL BE FILED. 28 (E) INDIRECT COMMUNICATION DISCLOSURE.--WHENEVER ANY PERSON 29 MAKES AN EXPENDITURE FOR INDIRECT COMMUNICATION UNDER THIS 30 CHAPTER, FOR THE PURPOSE OF DISSEMINATING OR INITIATING A 20050H0700B4884 - 76 -
1 COMMUNICATION, SUCH AS A MAILING, TELEPHONE BANK, PRINT OR 2 ELECTRONIC MEDIA ADVERTISEMENT, BILLBOARD, PUBLICATION OR 3 EDUCATION CAMPAIGN, THE COMMUNICATION SHALL CLEARLY AND 4 CONSPICUOUSLY STATE THE NAME OF THE PERSON WHO MADE OR FINANCED 5 THE EXPENDITURE FOR THE COMMUNICATION. 6 § 1306-A. EXEMPTION FROM REGISTRATION AND REPORTING. 7 THE FOLLOWING PERSONS AND ACTIVITIES SHALL BE EXEMPT FROM 8 REGISTRATION UNDER SECTION 1304-A (RELATING TO REGISTRATION) AND 9 REPORTING UNDER SECTION 1305-A (RELATING TO REPORTING): 10 (1) AN INDIVIDUAL WHO LIMITS LOBBYING TO PREPARING 11 TESTIMONY AND TESTIFYING BEFORE A COMMITTEE OF THE GENERAL 12 ASSEMBLY OR PARTICIPATING IN AN ADMINISTRATIVE PROCEEDING OF 13 AN AGENCY. 14 (2) AN INDIVIDUAL WHO IS AN EMPLOYEE OF AN ENTITY 15 ENGAGED IN THE BUSINESS OF PUBLISHING OR BROADCASTING WHILE 16 ENGAGED IN THE GATHERING AND DISSEMINATION OF NEWS AND 17 COMMENT ON THE NEWS TO THE GENERAL PUBLIC IN THE ORDINARY 18 COURSE OF BUSINESS. 19 (3) AN INDIVIDUAL WHO DOES NOT RECEIVE ECONOMIC 20 CONSIDERATION FOR LOBBYING. 21 (4) AN INDIVIDUAL WHOSE ECONOMIC CONSIDERATION FOR 22 LOBBYING, FROM ALL PRINCIPALS REPRESENTED, DOES NOT EXCEED 23 $2,500 IN THE AGGREGATE DURING ANY REPORTING PERIOD. 24 (5) AN INDIVIDUAL WHO ENGAGES IN LOBBYING ON BEHALF OF 25 THE INDIVIDUAL'S EMPLOYER IF THE LOBBYING REPRESENTS LESS 26 THAN 20 HOURS DURING ANY REPORTING PERIOD. 27 (6) EXCEPT AS REQUIRED UNDER SECTION 1305-A(D), A 28 PRINCIPAL WHOSE TOTAL EXPENSES FOR LOBBYING PURPOSES DO NOT 29 EXCEED $2,500 DURING ANY REPORTING PERIOD. 30 (7) AN ELECTED STATE OFFICIAL WHO ACTS IN AN OFFICIAL 20050H0700B4884 - 77 -
1 CAPACITY. 2 (8) AN APPOINTED STATE OFFICIAL ACTING IN AN OFFICIAL 3 CAPACITY. 4 (9) AN ELECTED OR APPOINTED OFFICIAL OF A POLITICAL 5 SUBDIVISION WHO IS ACTING IN AN OFFICIAL CAPACITY FOR THE 6 POLITICAL SUBDIVISION. 7 (10) AN EMPLOYEE OF THE COMMONWEALTH OR AN AGENCY OF THE 8 COMMONWEALTH WHO IS ACTING IN AN OFFICIAL CAPACITY FOR THE 9 COMMONWEALTH OR AGENCY. 10 (11) AN INDIVIDUAL REPRESENTING A BONA FIDE CHURCH OR 11 BONA FIDE RELIGIOUS BODY OF WHICH THE INDIVIDUAL IS A MEMBER 12 WHERE THE LOBBYING IS SOLELY FOR THE PURPOSE OF PROTECTING 13 THE CONSTITUTIONAL RIGHT TO THE FREE EXERCISE OF RELIGION. 14 (12) AN INDIVIDUAL WHO IS NOT A REGISTERED LOBBYIST AND 15 WHO SERVES ON AN ADVISORY BOARD, WORKING GROUP OR TASK FORCE 16 AT THE REQUEST OF AN AGENCY OR THE GENERAL ASSEMBLY. 17 (13) PARTICIPATING AS A PARTY OR AS AN ATTORNEY AT LAW 18 OR REPRESENTATIVE OF A PARTY, CASE OR CONTROVERSY IN ANY 19 ADMINISTRATIVE ADJUDICATION PURSUANT TO 2 PA.C.S. (RELATING 20 TO ADMINISTRATIVE LAW AND PROCEDURE). 21 (14) EXPENDITURES AND OTHER TRANSACTIONS SUBJECT TO 22 REPORTING UNDER ARTICLE XVI OF THE ACT OF JUNE 3, 1937 23 (P.L.1333, NO.320), KNOWN AS THE PENNSYLVANIA ELECTION CODE. 24 (15) VENDOR ACTIVITIES UNDER 62 PA.C.S. §§ 514 (RELATING 25 TO SMALL PROCUREMENTS), 516 (RELATING TO EMERGENCY 26 PROCUREMENTS) AND EFFORTS DIRECTLY RELATED TO RESPONDING TO 27 PUBLICLY ADVERTISED INVITATIONS TO BID AND REQUESTS FOR 28 PROPOSALS. 29 § 1307-A. PROHIBITED ACTIVITIES. 30 (A) POLITICAL COMMITTEES.--A LOBBYIST MAY NOT SERVE AS A 20050H0700B4884 - 78 -
1 TREASURER OR OTHER OFFICER WHO MUST BE INCLUDED IN A 2 REGISTRATION STATEMENT UNDER SECTION 1624(B)(2) AND (3) OF THE 3 ACT OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS THE 4 PENNSYLVANIA ELECTION CODE, FOR A CANDIDATE'S POLITICAL 5 COMMITTEE OR A CANDIDATE'S POLITICAL ACTION COMMITTEE IF THE 6 CANDIDATE IS SEEKING A STATEWIDE OFFICE OR THE OFFICE OF SENATOR 7 OR REPRESENTATIVE IN THE GENERAL ASSEMBLY. 8 (B) FEE RESTRICTIONS.--A LOBBYIST MAY NOT CHARGE A FEE OR 9 RECEIVE ECONOMIC CONSIDERATION BASED ON A CONTRACT, EITHER 10 WRITTEN OR ORAL, THAT ANY PART OF THE FEE OR ECONOMIC 11 CONSIDERATION WILL BE CONVERTED INTO A CONTRIBUTION TO A 12 CANDIDATE FOR PUBLIC OFFICE OR A POLITICAL COMMITTEE SUBJECT TO 13 REPORTING UNDER ARTICLE XVI OF THE ACT OF JUNE 3, 1937 14 (P.L.1333, NO.320), KNOWN AS THE PENNSYLVANIA ELECTION CODE. 15 (C) FALSIFICATION.--A LOBBYIST, LOBBYING FIRM OR PRINCIPAL 16 MAY NOT, FOR THE PURPOSE OF INFLUENCING LEGISLATIVE ACTION OR 17 ADMINISTRATIVE ACTION, TRANSMIT, UTTER OR PUBLISH TO A STATE 18 OFFICIAL OR EMPLOYEE A COMMUNICATION, KNOWING THAT THE 19 COMMUNICATION OR A SIGNATURE ON THE COMMUNICATION IS FALSE, 20 FORGED, COUNTERFEIT OR FICTITIOUS. 21 (D) CONFLICTS OF INTEREST.-- 22 (1) EXCEPT AS PERMITTED BY PARAGRAPH (2), A REGISTRANT 23 MAY NOT LOBBY ON BEHALF OF A PRINCIPAL ON ANY SUBJECT MATTER 24 IN WHICH THE PRINCIPAL'S INTERESTS ARE DIRECTLY ADVERSE TO 25 THE INTERESTS OF ANOTHER PRINCIPAL CURRENTLY REPRESENTED BY 26 THE LOBBYIST OR PREVIOUSLY REPRESENTED BY THE LOBBYIST DURING 27 THE CURRENT SESSION OF THE GENERAL ASSEMBLY OR THE LOBBYIST'S 28 OWN INTERESTS. 29 (2) A LOBBYIST MAY REPRESENT A PRINCIPAL IN 30 CIRCUMSTANCES DESCRIBED IN PARAGRAPH (1) IF: 20050H0700B4884 - 79 -
1 (I) THE LOBBYIST REASONABLY BELIEVES THAT THE 2 LOBBYIST WILL BE ABLE TO PROVIDE COMPETENT AND DILIGENT 3 REPRESENTATION TO EACH AFFECTED PRINCIPAL; 4 (II) THE LOBBYIST PROVIDES WRITTEN NOTICE TO EACH 5 AFFECTED PRINCIPAL UPON BECOMING AWARE OF THE CONFLICT; 6 AND 7 (III) EACH AFFECTED PRINCIPAL PROVIDES INFORMED 8 CONSENT WAIVING THE CONFLICT OF INTEREST. 9 (3) IF A LOBBYIST REPRESENTS A PRINCIPAL IN VIOLATION OF 10 THIS SECTION OR IF MULTIPLE REPRESENTATION PROPERLY ACCEPTED 11 BECOMES IMPROPER UNDER THIS SECTION AND THE CONFLICT IS NOT 12 WAIVED, THE LOBBYIST SHALL PROMPTLY WITHDRAW FROM ONE OR MORE 13 REPRESENTATIONS TO THE EXTENT NECESSARY FOR REMAINING 14 REPRESENTATION TO NOT BE IN VIOLATION OF THIS SECTION. 15 (4) IF A LOBBYIST IS PROHIBITED BY THIS SECTION FROM 16 ENGAGING IN PARTICULAR CONDUCT, AN EMPLOYER OF THE LOBBYIST 17 OR A PARTNER OR OTHER PERSON ASSOCIATED WITH THE LOBBYIST MAY 18 NOT ENGAGE IN THE PARTICULAR CONDUCT. 19 (5) A PRINCIPAL OR LOBBYIST REQUIRED TO REPORT UNDER 20 SECTION 1305-A (RELATING TO REPORTING) SHALL INCLUDE IN THE 21 REPORT A STATEMENT AFFIRMING THAT TO THE BEST OF THE 22 PRINCIPAL'S OR LOBBYIST'S KNOWLEDGE THE PRINCIPAL OR LOBBYIST 23 HAS COMPLIED WITH THIS SECTION. 24 (6) EXCEPT AS PROVIDED IN PARAGRAPH (8), THE COMMISSION 25 MAY RECEIVE COMPLAINTS REGARDING VIOLATIONS OF THIS 26 SUBSECTION. IF THE COMMISSION DETERMINES A VIOLATION OF THIS 27 SUBSECTION HAS OCCURRED, THE COMMISSION, AFTER INVESTIGATION, 28 NOTICE AND HEARING: 29 (I) SHALL IMPOSE AN ADMINISTRATIVE PENALTY IN AN 30 AMOUNT NOT TO EXCEED $2,000; AND 20050H0700B4884 - 80 -
1 (II) MAY PROHIBIT A LOBBYIST FROM LOBBYING FOR 2 ECONOMIC CONSIDERATION FOR UP TO FIVE YEARS. 3 (7) A LOBBYIST AND PRINCIPAL SHALL MAINTAIN THE RECORDS 4 RELATING TO THE CONFLICT OF INTEREST SET FORTH IN PARAGRAPH 5 (2) FOR A FOUR-YEAR PERIOD BEGINNING ON THE DATE THE CONFLICT 6 IS DISCOVERED AND, IN THE CASE OF AN INVESTIGATION CONDUCTED 7 UNDER PARAGRAPH (6), PROVIDE COPIES OF THE RECORDS TO THE 8 COMMISSION UPON REQUEST. 9 (8) COMPLAINTS REGARDING VIOLATIONS OF THIS SUBSECTION 10 INVOLVING A LOBBYIST OR PRINCIPAL WHO IS AN ATTORNEY AT LAW 11 SHALL BE REFERRED TO THE BOARD TO BE INVESTIGATED, CONSIDERED 12 AND RESOLVED IN A MANNER CONSISTENT WITH THE RULES OF 13 PROFESSIONAL CONDUCT. 14 (D.1) MULTIPLE PRINCIPALS.--NOTHING IN THIS SECTION SHALL BE 15 CONSTRUED TO REQUIRE A LOBBYIST REPRESENTING MULTIPLE PRINCIPALS 16 WHO EACH HAVE AN INTEREST IN THE STATE BUDGET PROCESS TO COMPLY 17 WITH SUBSECTION (D)(2) UNLESS A CONFLICT OF INTEREST EXISTS 18 UNDER SUBSECTION (D)(1). 19 (E) CONTINGENT COMPENSATION.-- 20 (1) A PERSON MAY NOT COMPENSATE OR INCUR AN OBLIGATION 21 TO COMPENSATE A PERSON TO ENGAGE IN LOBBYING FOR COMPENSATION 22 CONTINGENT IN WHOLE OR IN PART UPON ANY OF THE FOLLOWING: 23 (I) OCCURRENCE, NONOCCURRENCE OR AMENDMENT OF 24 LEGISLATIVE ACTION. 25 (II) OCCURRENCE, NONOCCURRENCE OR AMENDMENT OF AN 26 ADMINISTRATIVE ACTION OTHER THAN PROCUREMENT DESCRIBED IN 27 PARAGRAPH (1)(IV) OF THE DEFINITION OF "ADMINISTRATIVE 28 ACTION" UNDER SECTION 1303-A (RELATING TO DEFINITIONS). 29 (2) A PERSON MAY NOT ENGAGE IN OR AGREE TO ENGAGE IN 30 LOBBYING FOR COMPENSATION CONTINGENT IN WHOLE OR IN PART UPON 20050H0700B4884 - 81 -
1 ANY OF 2 (I) OCCURRENCE, NONOCCURRENCE OR AMENDMENT OF 3 LEGISLATIVE ACTION. 4 (II) OCCURRENCE, NONOCCURRENCE OR AMENDMENT OF AN 5 ADMINISTRATIVE ACTION OTHER THAN PROCUREMENT DESCRIBED IN 6 PARAGRAPH (1)(IV) OF THE DEFINITION OF "ADMINISTRATIVE 7 ACTION" UNDER SECTION 1303-A. 8 (3) THIS SUBSECTION SHALL NOT APPLY TO VENDORS. 9 (F) TRAVEL ON STATE-OWNED PLANE OR OTHER AIRCRAFT.--A 10 LOBBYIST MAY NOT TRAVEL ON ANY STATE-OWNED PLANE OR OTHER STATE- 11 OWNED AIRCRAFT. 12 (G) UNLAWFUL ACTS.-- 13 (1) A LOBBYIST OR PRINCIPAL MAY NOT: 14 (I) INSTIGATE THE INTRODUCTION OF LEGISLATION FOR 15 THE PURPOSE OF OBTAINING EMPLOYMENT TO LOBBY IN 16 OPPOSITION TO THAT LEGISLATION. 17 (II) KNOWINGLY COUNSEL A PERSON TO VIOLATE THIS 18 CHAPTER OR ANY OTHER FEDERAL OR STATE STATUTE. 19 (III) ENGAGE IN OR COUNSEL A PERSON TO ENGAGE IN 20 FRAUDULENT CONDUCT. 21 (IV) ATTEMPT TO INFLUENCE A STATE OFFICIAL OR 22 EMPLOYEE ON LEGISLATIVE OR ADMINISTRATIVE ACTION BY 23 MAKING OR FACILITATING THE MAKING OF A LOAN TO THE STATE 24 OFFICIAL OR EMPLOYEE. 25 (V) WHILE ENGAGING IN LOBBYING ON BEHALF OF THE 26 PRINCIPAL, REFUSE TO DISCLOSE TO A STATE OFFICIAL OR 27 EMPLOYEE, UPON REQUEST, THE IDENTITY OF THE PRINCIPAL. 28 (VI) COMMIT A CRIMINAL OFFENSE ARISING FROM 29 LOBBYING. 30 (VII) INFLUENCE OR ATTEMPT TO INFLUENCE, BY 20050H0700B4884 - 82 -
1 COERCION, BRIBERY OR THREAT OF ECONOMIC SANCTION, A STATE 2 OFFICIAL OR EMPLOYEE IN THE DISCHARGE OF THE DUTIES OF 3 OFFICE. 4 (VIII) EXTORT OR OTHERWISE UNLAWFULLY RETALIATE 5 AGAINST A STATE OFFICIAL OR EMPLOYEE BY REASON OF THE 6 STATE OFFICIAL'S OR EMPLOYEE'S POSITION WITH RESPECT TO, 7 OR VOTE ON, ADMINISTRATIVE OR LEGISLATIVE ACTION. 8 (IX) ATTEMPT TO INFLUENCE A STATE OFFICIAL OR 9 EMPLOYEE ON LEGISLATIVE OR ADMINISTRATIVE ACTION BY THE 10 PROMISE OF FINANCIAL SUPPORT OR THE FINANCING OF 11 OPPOSITION TO THE CANDIDACY OF THE STATE OFFICIAL OR 12 EMPLOYEE AT A FUTURE ELECTION. 13 (X) ENGAGE IN CONDUCT WHICH BRINGS THE PRACTICE OF 14 LOBBYING OR THE LEGISLATIVE OR EXECUTIVE BRANCHES OF 15 STATE GOVERNMENT INTO DISREPUTE. 16 (2) THE COMMISSION MAY RECEIVE COMPLAINTS REGARDING 17 VIOLATIONS OF THIS SUBSECTION. IF THE COMMISSION DETERMINES A 18 VIOLATION OF THIS SUBSECTION HAS OCCURRED, THE COMMISSION, 19 AFTER INVESTIGATION, NOTICE AND HEARING: 20 (I) SHALL IMPOSE AN ADMINISTRATIVE PENALTY IN AN 21 AMOUNT NOT TO EXCEED $2,000; AND 22 (II) MAY PROHIBIT A LOBBYIST FROM LOBBYING FOR 23 ECONOMIC CONSIDERATION FOR UP TO FIVE YEARS. 24 (3) THE COMMISSION: 25 (I) MAY, AS IT DEEMS APPROPRIATE, REFER AN ALLEGED 26 VIOLATION OF THIS SUBSECTION TO THE ATTORNEY GENERAL FOR 27 INVESTIGATION AND PROSECUTION; AND 28 (II) SHALL, IF THE SUBJECT OF THE COMPLAINT IS AN 29 ATTORNEY AT LAW, REFER AN ALLEGED VIOLATION OF THIS 30 SUBSECTION TO THE BOARD. 20050H0700B4884 - 83 -
1 § 1308-A. ADMINISTRATION. 2 (A) ADVICE AND OPINIONS.--THE COMMISSION SHALL PROVIDE 3 ADVICE AND OPINIONS UNDER SECTION 1107 (RELATING TO POWERS AND 4 DUTIES OF COMMISSION) TO A LOBBYIST, A LOBBYING FIRM, A 5 PRINCIPAL, THE DEPARTMENT, THE BOARD OR A STATE OFFICIAL OR 6 EMPLOYEE, THAT SEEKS ADVICE REGARDING COMPLIANCE WITH THIS 7 CHAPTER. A PERSON THAT ACTS IN GOOD FAITH BASED ON THE WRITTEN 8 ADVICE OR OPINION OF THE COMMISSION SHALL NOT BE HELD LIABLE FOR 9 A VIOLATION OF THIS CHAPTER IF THE MATERIAL FACTS ARE AS STATED 10 IN THE REQUEST. 11 (B) FORMS.--THE DEPARTMENT SHALL PRESCRIBE REGISTRATION AND 12 REPORTING FORMS TO BE USED UNDER THIS CHAPTER. THE FORMS SHALL 13 BE AVAILABLE ON A PUBLICLY ACCESSIBLE INTERNET WEBSITE. ALL 14 INFORMATION REQUESTED ON THE FORMS SHALL BE PROVIDED TO THE BEST 15 OF THE KNOWLEDGE, INFORMATION AND BELIEF OF THE PERSON REQUIRED 16 TO FILE AND SHALL BE SIGNED UNDER OATH OR EQUIVALENT 17 AFFIRMATION. 18 (C) PUBLIC INSPECTION AND COPYING.--THE DEPARTMENT SHALL 19 MAKE COMPLETED REGISTRATION STATEMENTS, EXPENSE REPORTS AND 20 NOTICES OF TERMINATION, WHICH HAVE BEEN FILED WITH THE 21 DEPARTMENT, AVAILABLE FOR PUBLIC INSPECTION AND PROVIDE COPIES 22 OF THESE DOCUMENTS AT A PRICE NOT IN EXCESS OF THE ACTUAL COST 23 OF COPYING. THE DEPARTMENT SHALL MAKE ALL REGISTRATIONS AND 24 REPORTS AVAILABLE ON A PUBLICLY ACCESSIBLE INTERNET WEBSITE. 25 DOCUMENTS MAINTAINED AND REPRODUCIBLE IN AN ELECTRONIC FORMAT 26 SHALL BE PROVIDED IN THAT FORMAT UPON REQUEST. 27 (D) ANNUAL REPORTING.-- 28 (1) THE DEPARTMENT SHALL PREPARE AND PUBLISH AN ANNUAL 29 REPORT ON LOBBYING ACTIVITIES IN THIS COMMONWEALTH. 30 (2) THE DEPARTMENT SHALL AT LEAST ANNUALLY PUBLISH A 20050H0700B4884 - 84 -
1 LIST OF ALL OF THE FOLLOWING: 2 (I) REGISTERED PRINCIPALS. THE DEPARTMENT SHALL 3 IDENTIFY AFFILIATED POLITICAL ACTION COMMITTEES AND 4 LOBBYING FIRMS AND LOBBYISTS THAT ARE REGISTERED TO LOBBY 5 FOR THE PRINCIPAL. 6 (II) LOBBYING FIRMS AND LOBBYISTS NOT ASSOCIATED 7 WITH LOBBYING FIRMS. THE DEPARTMENT SHALL IDENTIFY 8 AFFILIATED POLITICAL ACTION COMMITTEES AND THE PRINCIPALS 9 FOR WHOM THE LOBBYING FIRM OR LOBBYIST IS REGISTERED TO 10 LOBBY. 11 (III) REGISTERED LOBBYISTS FOR EACH LOBBYING FIRM. 12 (E) RETENTION OF RECORDS.--COMPLETED REGISTRATION 13 STATEMENTS, EXPENSE REPORTS AND NOTICES OF TERMINATION SHALL BE 14 AVAILABLE FOR PUBLIC INSPECTION WITH THE DEPARTMENT FOR A FOUR- 15 YEAR PERIOD COMMENCING ON THE DATE OF FILING. 16 (F) AUDITS.--THE FOLLOWING SHALL APPLY: 17 (1) EVERY TWO YEARS, THE SECRETARY OF THE COMMONWEALTH 18 SHALL CONTRACT FOR THE SERVICES OF ONE OR MORE CERTIFIED 19 PUBLIC ACCOUNTANTS OR CERTIFIED PUBLIC ACCOUNTING FIRMS. THE 20 CONTRACT SHALL BE AWARDED IN A MANNER CONSISTENT WITH THE 21 PROVISIONS OF 62 PA.C.S. PT. I (RELATING TO COMMONWEALTH 22 PROCUREMENT CODE), AND NO CERTIFIED PUBLIC ACCOUNTANT OR 23 CERTIFIED PUBLIC ACCOUNTING FIRM SHALL BE ELIGIBLE TO OBTAIN 24 A CONTRACT FOR TWO SUCCESSIVE CONTRACT PERIODS. 25 (2) THE SECRETARY SHALL RANDOMLY SELECT, AT A PUBLIC 26 DRAWING 60 DAYS FOLLOWING THE CLOSE OF EACH FOURTH QUARTER 27 REPORTING PERIOD, 3% OF ALL COMPLETED REGISTRATIONS AND 28 EXPENSE REPORTS FILED WITH THE DEPARTMENT UNDER THIS CHAPTER. 29 (3) THE CERTIFIED PUBLIC ACCOUNTANT SHALL CONDUCT THE 30 AUDITS IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING 20050H0700B4884 - 85 -
1 STANDARDS AND SHALL TEST AS TO WHETHER EACH REGISTRATION OR 2 EXPENSE REPORT IS MATERIALLY CORRECT. 3 (4) THE AUDIT REPORT AND FINDINGS SHALL BE CONFIDENTIAL, 4 EXCEPT THAT THE DEPARTMENT SHALL MAKE AN AUDIT REPORT AND 5 FINDINGS AVAILABLE TO THE COMMISSION IF THE COMMISSION IS 6 INVESTIGATING AN ALLEGED VIOLATION OF THIS CHAPTER INVOLVING 7 THE AUDITED REGISTRATION OR EXPENSE REPORT. THE COMMISSION 8 SHALL INCLUDE THE RELEVANT PORTION OF AN AUDIT AS PART OF ITS 9 FINDINGS OF FACT IN A COMMISSION ORDER WHICH RESULTS FROM AN 10 INVESTIGATION ARISING OUT OF AN AUDIT. 11 (G) INVESTIGATION AND HEARINGS.--THE COMMISSION, THROUGH ITS 12 EXECUTIVE DIRECTOR, MAY INITIATE AN INVESTIGATION AND HOLD A 13 HEARING CONCERNING AN ALLEGED VIOLATION OF THIS CHAPTER BY A 14 LOBBYIST OR PRINCIPAL IN ACCORDANCE WITH SECTIONS 1107 (RELATING 15 TO POWERS AND DUTIES OF COMMISSION) AND 1108 (RELATING TO 16 INVESTIGATIONS BY COMMISSION). 17 (H) DIRECTORY.--BY MAY 1 OF EACH ODD-NUMBERED YEAR, THE 18 DEPARTMENT SHALL PRODUCE AND DISTRIBUTE A DIRECTORY OF ALL 19 REGISTERED LOBBYISTS, INCLUDING PHOTOGRAPHS AND REGISTERED 20 LOBBYING FIRMS. COPIES OF THE DIRECTORY SHALL BE MADE AVAILABLE 21 TO THE PUBLIC AT A PRICE NOT TO EXCEED THE ACTUAL COST OF 22 PRODUCTION. ALL REVENUE RECEIVED BY THE DEPARTMENT FROM THE 23 SALES OF THE DIRECTORY SHALL BE DEPOSITED INTO THE FUND. 24 (I) COMPUTER FILE.--THE DEPARTMENT SHALL PROVIDE THE 25 LEGISLATIVE DATA PROCESSING COMMITTEE DATA RELATING TO 26 REGISTRATION STATEMENTS AND AMENDMENTS TO REGISTRATION 27 STATEMENTS, EXPENSE REPORTS AND NOTICES OF TERMINATION. THE 28 COMMITTEE SHALL MAKE INFORMATION UNDER THIS SUBSECTION AVAILABLE 29 ON A PUBLICLY ACCESSIBLE INTERNET WEBSITE. 30 (J) INFLATION ADJUSTMENT.--ON A BIENNIAL BASIS COMMENCING IN 20050H0700B4884 - 86 -
1 JANUARY 2009, THE DEPARTMENT SHALL REVIEW THE THRESHOLD UNDER 2 SECTION 1306-A (RELATING TO EXEMPTION FROM REGISTRATION AND 3 REPORTING) FOR REGISTRATION UNDER SECTION 1304-A (RELATING TO 4 REGISTRATION) AND THE THRESHOLD FOR REPORTING UNDER SECTION 5 1305-A(D) (RELATING TO REPORTING) AND SHALL INCREASE THESE 6 AMOUNTS TO RATES DEEMED REASONABLE FOR ASSURING APPROPRIATE 7 DISCLOSURE. ON A BIENNIAL BASIS COMMENCING IN JANUARY 2009, THE 8 DEPARTMENT SHALL REVIEW THE FILING FEE ESTABLISHED UNDER SECTION 9 1310-A (RELATING TO REGISTRATION FEES; FUND ESTABLISHED; SYSTEM; 10 REGULATIONS) AND MAY BY REGULATION ADJUST THIS AMOUNT IF THE 11 DEPARTMENT DETERMINES THAT A HIGHER FEE IS NEEDED TO COVER THE 12 COSTS OF CARRYING OUT THE PROVISIONS OF THIS CHAPTER. THE 13 DEPARTMENT SHALL PUBLISH ADJUSTED AMOUNTS IN THE PENNSYLVANIA 14 BULLETIN BY JUNE 1, 2009, AND BY JUNE 1 EVERY TWO YEARS 15 THEREAFTER AS NECESSARY. 16 § 1309-A. PENALTIES. 17 (A) NOTICE OF ALLEGED NONCOMPLIANCE.-- 18 (1) THE COMMISSION SHALL ISSUE A NOTICE OF ALLEGED 19 NONCOMPLIANCE TO A PERSON THAT HAS FAILED TO REGISTER OR 20 REPORT AS REQUIRED BY THIS CHAPTER. 21 (2) THE NOTICE SHALL STATE: 22 (I) THE NATURE OF THE ALLEGED NONCOMPLIANCE; AND 23 (II) THE ADMINISTRATIVE AND CRIMINAL PENALTIES FOR: 24 (A) FAILURE TO REGISTER; 25 (B) FAILURE TO FILE; OR 26 (C) FILING A REPORT WHICH CONTAINS A FALSE 27 STATEMENT OR WHICH IS INCOMPLETE. 28 (3) THE NOTICE SHALL ADVISE THAT IF THE PERSON DISAGREES 29 WITH THE ALLEGED NONCOMPLIANCE, THE PERSON MAY APPEAL THE 30 DETERMINATION BEFORE THE COMMISSION. 20050H0700B4884 - 87 -
1 (4) THE NOTICE SHALL SET FORTH THE DEADLINE AND MANNER 2 IN WHICH TO REQUEST A HEARING. 3 (5) IF THE PERSON DOES NOT REQUEST A HEARING IN 4 ACCORDANCE WITH THE NOTICE, THE ALLEGED NONCOMPLIANCE SHALL 5 BE DEEMED TO CONSTITUTE NONCOMPLIANCE WITH THIS CHAPTER AND 6 THE COMMISSION SHALL IMPOSE A PENALTY IN ACCORDANCE WITH 7 SUBSECTION (B)(3) OR (4). 8 (B) HEARING.-- 9 (1) IF A HEARING IS REQUESTED, THE COMMISSION SHALL 10 DETERMINE AT THE HEARING: 11 (I) WHETHER THE RECIPIENT OF THE NOTICE IS REQUIRED 12 TO REGISTER OR REPORT UNDER THIS CHAPTER; 13 (II) WHETHER THE RECIPIENT OF THE NOTICE IS AN 14 ATTORNEY AT LAW; AND 15 (III) WHETHER THE FAILURE TO REGISTER OR REPORT WAS 16 NEGLIGENT OR INTENTIONAL. 17 (2) IF THE COMMISSION FINDS THAT FAILURE TO REGISTER OR 18 REPORT WAS INTENTIONAL, IT SHALL REFER THE MATTER TO THE 19 ATTORNEY GENERAL AND, IF THE PERSON IS AN ATTORNEY AT LAW, TO 20 THE BOARD. 21 (3) IF THE COMMISSION FINDS THAT FAILURE TO REGISTER OR 22 REPORT WAS NEGLIGENT, IT SHALL DETERMINE THE AMOUNT OF THE 23 ADMINISTRATIVE PENALTY TO BE IMPOSED. 24 (4) A HEARING UNDER THIS SUBSECTION SHALL BE CONDUCTED 25 BY THE COMMISSION IN ACCORDANCE WITH SECTIONS 1107(14) 26 (RELATING TO POWERS AND DUTIES OF COMMISSION) AND 1108(E) 27 (RELATING TO INVESTIGATIONS BY COMMISSION). 28 (5) APPEALS OF THE COMMISSION'S DETERMINATION SHALL BE 29 IN ACCORDANCE WITH SECTION 1108(I). IF A COURT OF COMPETENT 30 JURISDICTION DETERMINES THAT ANY COMPLAINT OR INVESTIGATION 20050H0700B4884 - 88 -
1 WHICH INVOLVES AN ATTORNEY AT LAW IS UNDER THE JURISDICTION 2 OF THE BOARD, THE MATTER SHALL BE REFERRED BY THE COURT TO 3 THE BOARD TO BE INVESTIGATED, CONSIDERED AND RESOLVED IN A 4 MANNER CONSISTENT WITH THE RULES OF PROFESSIONAL CONDUCT. 5 (C) NEGLIGENT FAILURE TO REGISTER OR REPORT.-- 6 (1) NEGLIGENT FAILURE TO REGISTER OR REPORT AS REQUIRED 7 BY THIS CHAPTER IS PUNISHABLE BY AN ADMINISTRATIVE PENALTY 8 NOT EXCEEDING $50 FOR EACH LATE DAY. 9 (2) AFTER A HEARING UNDER SUBSECTION (B), THE COMMISSION 10 MAY, UPON THE MAJORITY VOTE OF ALL OF ITS MEMBERS, LEVY AN 11 ADMINISTRATIVE PENALTY. THE TOTAL AMOUNT OF THE 12 ADMINISTRATIVE PENALTY LEVIED SHALL NOT BE LIMITED BY ANY 13 OTHER PROVISION OF LAW. 14 (3) THE COMMISSION SHALL NOTIFY THE BOARD OF ANY 15 LOBBYIST OR PRINCIPAL WHO IS AN ATTORNEY AT LAW AGAINST WHOM 16 A CIVIL PENALTY IS IMPOSED. 17 (4) THE COMMISSION HAS STANDING TO APPLY TO THE 18 COMMONWEALTH COURT TO SEEK ENFORCEMENT OF AN ORDER IMPOSING 19 AN ADMINISTRATIVE PENALTY UNDER THIS SECTION. 20 (D) FAILURE TO COMPLY AFTER NOTICE.--A PERSON THAT FAILS TO 21 COMPLY WITH THE REQUIREMENTS OF THIS CHAPTER, AFTER NOTICE OF 22 NONCOMPLIANCE AND AFTER A HEARING IF ONE IS REQUESTED, MAY BE 23 PROHIBITED FROM LOBBYING FOR ECONOMIC CONSIDERATION FOR UP TO 24 FIVE YEARS. THE PROHIBITION SHALL BE IMPOSED UNDER SUBSECTION 25 (E)(4). 26 (E) INTENTIONAL VIOLATIONS.-- 27 (1) A PERSON THAT INTENTIONALLY FAILS TO REGISTER OR 28 REPORT AS REQUIRED BY THIS CHAPTER COMMITS A MISDEMEANOR OF 29 THE SECOND DEGREE. 30 (2) A REGISTRANT WHO FILES A REPORT UNDER THIS CHAPTER 20050H0700B4884 - 89 -
1 WITH KNOWLEDGE THAT THE REPORT CONTAINS A FALSE STATEMENT OR 2 IS INCOMPLETE COMMITS A MISDEMEANOR OF THE SECOND DEGREE. 3 (3) EXCEPT AS SET FORTH IN PARAGRAPH (1) OR (2), A 4 PERSON THAT INTENTIONALLY VIOLATES THIS CHAPTER COMMITS A 5 MISDEMEANOR OF THE THIRD DEGREE. IN ADDITION TO ANY OTHER 6 PENALTIES IMPOSED UNDER THIS CHAPTER, THE COURT MAY IMPOSE A 7 FINE NOT TO EXCEED $25,000 AGAINST A PRINCIPAL WHO IS FOUND 8 GUILTY UNDER THIS PARAGRAPH. 9 (4) IN ADDITION TO ANY CRIMINAL PENALTIES IMPOSED UNDER 10 THIS CHAPTER, THE COMMISSION MAY PROHIBIT A PERSON FROM 11 LOBBYING FOR ECONOMIC CONSIDERATION FOR UP TO FIVE YEARS FOR 12 CONDUCT WHICH CONSTITUTES AN OFFENSE UNDER THIS SUBSECTION. 13 CRIMINAL PROSECUTION OR CONVICTION ARE NOT REQUIRED FOR THE 14 IMPOSITION OF THE PROHIBITION AUTHORIZED BY THIS PARAGRAPH. 15 THE COMMISSION SHALL NOT IMPOSE THE PROHIBITION UNDER THIS 16 PARAGRAPH UNLESS THE PERSON HAS BEEN AFFORDED THE OPPORTUNITY 17 FOR A HEARING WHICH SHALL BE CONDUCTED BY THE COMMISSION IN 18 ACCORDANCE WITH SECTIONS 1107(14) AND 1108(E). 19 (F) ATTORNEYS.--NOTHING IN THIS CHAPTER SHALL BE CONSTRUED 20 AS RESTRICTING THE BOARD'S AUTHORITY TO DISCIPLINE AN ATTORNEY 21 AT LAW WHO IS ACTING AS A LOBBYIST OR PRINCIPAL. 22 (G) AFFIRMATIVE DEFENSE.--ANY OF THE FOLLOWING IS AN 23 AFFIRMATIVE DEFENSE TO AN ACTION BROUGHT UNDER CHAPTER 11 24 (RELATING TO ETHICS STANDARDS AND FINANCIAL DISCLOSURE) OR THIS 25 CHAPTER: 26 (1) THE RESPONDENT OR DEFENDANT RELIED ON ADVICE AND 27 OPINIONS OF THE COMMISSION. 28 (2) THE RESPONDENT OR DEFENDANT RELIED ON NOTICE UNDER 29 SECTION 1305-A(B)(3)(IV). 30 (3) THE RESPONDENT OR DEFENDANT DID NOT RECEIVE NOTICE 20050H0700B4884 - 90 -
1 UNDER SECTION 1305-A(B)(3)(IV). 2 (H) CRIMINAL ENFORCEMENT.--IF THE DEPARTMENT OR COMMISSION 3 HAS REASON TO BELIEVE AN INTENTIONAL VIOLATION OF THIS CHAPTER 4 HAS BEEN COMMITTED, IT SHALL REFER ALL RELEVANT DOCUMENTS AND 5 OTHER INFORMATION TO THE OFFICE OF ATTORNEY GENERAL AND, IF THE 6 LOBBYIST OR PRINCIPAL IS AN ATTORNEY AT LAW, TO THE BOARD. THE 7 ATTORNEY GENERAL SHALL HAVE EXCLUSIVE JURISDICTION TO PROSECUTE 8 CRIMINAL VIOLATIONS UNDER THIS CHAPTER. 9 (I) ATTORNEY GENERAL.--IN ADDITION TO THE AUTHORITY 10 CONFERRED UPON THE ATTORNEY GENERAL UNDER THE ACT OF OCTOBER 15, 11 1980 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT, 12 THE ATTORNEY GENERAL HAS THE AUTHORITY TO INVESTIGATE AND 13 PROSECUTE A VIOLATION OF THIS CHAPTER. 14 § 1310-A. REGISTRATION FEES; FUND ESTABLISHED; SYSTEM; 15 REGULATIONS. 16 (A) REGISTRATION FEES.--AT THE TIME OF REGISTRATION, A 17 PERSON REQUIRED TO BE REGISTERED UNDER THIS CHAPTER SHALL PAY A 18 BIENNIAL REGISTRATION FEE OF $100 TO THE DEPARTMENT. 19 (B) FUND.-- 20 (1) THE LOBBYING DISCLOSURE FUND IS ESTABLISHED AS A 21 SPECIAL FUND IN THE STATE TREASURY. 22 (2) MONEY RECEIVED FROM REGISTRATION FEES UNDER 23 SUBSECTION (A) SHALL BE DEPOSITED IN THE FUND. MONEY 24 REMAINING IN THE FUND ESTABLISHED UNDER FORMER 65 PA.C.S. § 25 1310(B) SHALL BE TRANSFERRED TO THE FUND. 26 (3) MONEY DEPOSITED IN THE FUND IS APPROPRIATED TO THE 27 DEPARTMENT AS A CONTINUING APPROPRIATION FOR THE EXCLUSIVE 28 PURPOSE OF CARRYING OUT THIS CHAPTER. 29 (C) COMPUTERIZED FILING SYSTEM.--THE DEPARTMENT SHALL 30 IMPLEMENT A FULLY ACCESSIBLE SYSTEM TO ACCOMMODATE THE USE OF 20050H0700B4884 - 91 -
1 COMPUTERIZED FILING. EACH REGISTRANT SHALL ELECT ON AN ANNUAL 2 BASIS WHETHER THE REGISTRANT WILL FILE ALL OF THE DOCUMENTS 3 REQUIRED BY THIS CHAPTER EITHER ELECTRONICALLY OR ON PAPER WITH 4 THE DEPARTMENT. 5 (D) REGULATIONS.-- 6 (1) A COMMITTEE COMPRISED OF THE CHAIRMAN OF THE 7 COMMISSION, THE ATTORNEY GENERAL, THE CHIEF COUNSEL OF THE 8 BOARD, THE GENERAL COUNSEL, AN INDIVIDUAL APPOINTED BY THE 9 PRESIDENT PRO TEMPORE OF THE SENATE, AN INDIVIDUAL APPOINTED 10 BY THE MINORITY LEADER OF THE SENATE, AN INDIVIDUAL APPOINTED 11 BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, AN INDIVIDUAL 12 APPOINTED BY THE MINORITY LEADER OF THE HOUSE OF 13 REPRESENTATIVES, OR THEIR DESIGNEES, AND A LOBBYIST APPOINTED 14 BY THE GOVERNOR SHALL HAVE AUTHORITY TO PROMULGATE 15 REGULATIONS NECESSARY TO CARRY OUT THIS CHAPTER. THE ATTORNEY 16 GENERAL SHALL BE CHAIRMAN OF THIS COMMITTEE. A VACANCY 17 OCCURRING AMONG THE APPOINTED MEMBERS OF THE COMMITTEE SHALL 18 BE FILLED IN THE SAME MANNER AS THE ORIGINAL APPOINTMENT. A 19 COMMITTEE MEMBER WHO IS A MEMBER OF THE GENERAL ASSEMBLY 20 SHALL SERVE FOR A TERM THAT IS COINCIDENT WITH THE MEMBER'S 21 TERM OF OFFICE. 22 (2) THE COMMITTEE SHALL SUBMIT THE INITIAL PROPOSED 23 REGULATIONS WITHIN 180 DAYS OF THE EFFECTIVE DATE OF THIS 24 SECTION TO THE INDEPENDENT REGULATORY REVIEW COMMISSION UNDER 25 SECTION 5 OF THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), 26 KNOWN AS THE REGULATORY REVIEW ACT. 27 (3) A MEETING AT WHICH THE COMMITTEE PLANS TO APPROVE 28 PROPOSED REGULATIONS OR OTHER OFFICIAL ACTIONS SHALL BE HELD 29 IN ACCORDANCE WITH CHAPTER 7 (RELATING TO OPEN MEETINGS). 30 (4) THE DEPARTMENT SHALL PROVIDE SUFFICIENT STAFF AND 20050H0700B4884 - 92 -
1 OTHER ADMINISTRATIVE SUPPORT TO ASSIST THE COMMITTEE. 2 (5) THE COMMITTEE SHALL PREPARE AND PUBLISH A MANUAL 3 SETTING FORTH GUIDELINES FOR ACCOUNTING AND REPORTING. 4 (6) THE REGULATIONS AND MANUAL SHALL BE DRAFTED TO 5 ACCOMMODATE THE USE OF COMPUTERIZED RECORDKEEPING, ELECTRONIC 6 FILING OF REQUIRED REGISTRATIONS AND REPORTS UNDER THIS 7 CHAPTER AND RETENTION OF REGISTRATION STATEMENTS AND REPORTS 8 UNDER THIS CHAPTER BY ELECTRONIC MEANS. 9 § 1311-A. NONAPPLICABILITY. 10 (A) CONTINGENT COMPENSATION.--NOTHING IN THIS CHAPTER SHALL 11 BE CONSTRUED TO AFFECT 18 PA.C.S. § 7515 (RELATING TO CONTINGENT 12 COMPENSATION). 13 (B) SALES TAX.--AMOUNTS REPORTED UNDER THIS CHAPTER ARE NOT 14 INTENDED TO APPLY TO ARTICLE II OF THE ACT OF MARCH 4, 1971 15 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971. 16 SECTION 4. THE SECRETARY OF THE COMMONWEALTH SHALL TRANSMIT 17 TO THE LEGISLATIVE REFERENCE BUREAU, FOR PUBLICATION IN THE 18 PENNSYLVANIA BULLETIN, NOTICE OF FULL IMPLEMENTATION OF THE 19 COMPUTERIZED FILING SYSTEM REQUIRED UNDER 65 PA.C.S. § 1310- 20 A(C). 21 SECTION 5. ANY FUNDS REMAINING IN THE RESTRICTED RECEIPTS 22 ACCOUNT CREATED UNDER 65 PA.C.S. § 1310(B) MAY BE UTILIZED BY 23 THE DEPARTMENT OF STATE TO IMPLEMENT THE PROVISIONS OF 65 24 PA.C.S. CH. XIII-A. 25 SECTION 6. THIS ACT SHALL TAKE EFFECT AS FOLLOWS: 26 (1) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT 27 IMMEDIATELY: 28 (I) 65 PA.C.S. § 1308-A(B) AND § 1310-A(D). 29 (II) THIS SECTION. 30 (2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT JANUARY 20050H0700B4884 - 93 -
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