See other bills
under the
same topic
                                                      PRINTER'S NO. 2295

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1770 Session of 2003


        INTRODUCED BY MAHER, CLYMER, ARMSTRONG, DAILEY, HARPER,
           HENNESSEY, RUBLEY, STEIL, TIGUE, GORDNER AND VANCE,
           JUNE 30, 2003

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 30, 2003

                                     AN ACT

     1  Amending Title 65 (Public Officers) of the Pennsylvania
     2     Consolidated Statutes, reenacting and amending provisions
     3     relating to lobby regulation and disclosure.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  Section 1301 of Title 65 of the Pennsylvania
     7  Consolidated Statutes is reenacted to read:
     8  § 1301.  Short title of chapter.
     9     This chapter shall be known and may be cited as the Lobbying
    10  Disclosure Act.
    11     Section 2.  Sections 1302, 1303, 1304, 1305, 1306, 1307,
    12  1308, 1309, 1310 and 1311 of Title 65 are reenacted and amended
    13  to read:
    14  § 1302.  Statement of intent and jurisdiction.
    15     [(a)  Intent.--]The Constitution of Pennsylvania recognizes
    16  the principle that all free government is founded upon the
    17  authority of the people. It further provides that the power to
    18  make law in this Commonwealth is vested in the General Assembly

     1  and the power to enforce law is vested in the Executive
     2  Department. The ability of the people to exercise their
     3  fundamental authority and to have confidence in the integrity of
     4  the process by which laws are made and enforced in this
     5  Commonwealth demands that the identity and the scope of activity
     6  of those employed to influence the actions of the General
     7  Assembly and the Executive Department be publicly and regularly
     8  disclosed.
     9     [(b)  Jurisdiction.--The authority to regulate persons
    10  employed to influence the actions of the General Assembly and
    11  the Executive Department lies within the jurisdiction of those
    12  branches of government. To insure that the intent of this
    13  chapter is not evaded and that all such persons are regulated in
    14  a fair and equitable manner, lobbyists and the practice of
    15  lobbying shall be subject to this chapter, which shall prevail
    16  over any other regulation of professional activity when that
    17  activity constitutes lobbying. This chapter is not intended to
    18  govern professional activities which do not include lobbying and
    19  which are properly the subject of regulation by the judicial
    20  branch of government or by any government agency. Membership in
    21  a regulated profession shall not excuse a lobbyist from
    22  compliance with the provisions of this chapter.]
    23  § 1303.  Definitions.
    24     The following words and phrases when used in this chapter
    25  shall have the meanings given to them in this section unless the
    26  context clearly indicates otherwise:
    27     "Administrative action."  Any of the following:
    28         (1)  An agency's:
    29             (i)  proposal, consideration, promulgation or
    30         rescission of a regulation;
    20030H1770B2295                  - 2 -     

     1             (ii)  development or modification of a guideline or a
     2         statement of policy; or
     3             (iii)  approval or rejection of a regulation.
     4         (2)  The review, revision, approval or disapproval of a
     5     regulation under the act of June 25, 1982 (P.L.633, No.181),
     6     known as the Regulatory Review Act.
     7         (3)  The Governor's approval or veto of legislation.
     8         (4)  The nomination or appointment of an individual as an
     9     officer or employee of the Commonwealth.
    10         (5)  The proposal, consideration, promulgation or
    11     rescission of an executive order.
    12     "Affiliated political action committee."  A political action
    13  committee as defined in section 1621(l) of the act of June 3,
    14  1937 (P.L.1333, No.320), known as the Pennsylvania Election
    15  Code, which has a chairman, a treasurer or another officer who
    16  is a principal, an employee of a principal, a lobbyist or an
    17  employee of a lobbyist, provided if an employee of a registrant
    18  serves as the officer of a political action committee in what is
    19  clearly a personal capacity and the goals and mission of that
    20  political action committee clearly have no relationship to the
    21  goals and mission of the registrant, such political action
    22  committee shall not be considered an affiliated political action
    23  committee for the purposes of this definition.
    24     "Agency."  A State agency, board, commission, authority or
    25  department.
    26     "Commission."  The State Ethics Commission.
    27     "Compensation."  Anything of value, including benefits,
    28  received or to be received from a principal by one acting as a
    29  lobbyist.
    30     ["Direct communication."  An effort, whether written, oral or
    20030H1770B2295                  - 3 -     

     1  by any other medium, made by a lobbyist or principal, directed
     2  to a State official or employee, the purpose or foreseeable
     3  effect of which is to influence legislative action or
     4  administrative action.]
     5     "Economic consideration."  Anything of value offered or
     6  received.
     7     "Fund."  The Lobbying Disclosure Fund established in section
     8  1310(b) (relating to filing fees; fund established;
     9  regulations).
    10     "Gift."  As defined in section 1102 (relating to
    11  definitions).
    12     "Immediate family."  An individual's spouse, an individual's
    13  child and an individual's parent, brother, sister or like
    14  relative-in-law.
    15     ["Indirect communication."  An effort, whether written, oral
    16  or by any other medium, to encourage others, including the
    17  general public, to take action, the purpose or foreseeable
    18  effect of which is to directly influence legislative action or
    19  administrative action. The term includes letter-writing
    20  campaigns, mailings, telephone banks, print and electronic media
    21  advertising, billboards, publications and educational campaigns
    22  on public issues. The term does not include regularly published
    23  periodic newsletters primarily designed for and distributed to
    24  members of a bona fide association or charitable or fraternal
    25  nonprofit corporation.]
    26     "Legislation."  Bills, resolutions, amendments and
    27  nominations pending or proposed in either the Senate or the
    28  House of Representatives. The term includes any other matter
    29  which may become the subject of action by either chamber of the
    30  General Assembly.
    20030H1770B2295                  - 4 -     

     1     "Legislative action."  An action taken by a State official or
     2  employee involving the preparation, research, drafting,
     3  introduction, consideration, modification, amendment, approval,
     4  passage, enactment, tabling, postponement, defeat or rejection
     5  of legislation; legislative motions; overriding or sustaining a
     6  veto by the Governor; or confirmation of appointments by the
     7  Governor or of appointments to public boards or commissions by a
     8  member of the General Assembly.
     9     "Lobbying."  An effort to influence legislative action or
    10  administrative action. The term includes:
    11         (1)  providing any gift, entertainment, meal,
    12     transportation or lodging to a State official or employee for
    13     the purpose of advancing the interest of the lobbyist or
    14     principal; and
    15         (2)  [direct or indirect] reportable communication.
    16     "Lobbyist."  Any individual, firm, association, corporation,
    17  partnership, business trust or business entity that engages in
    18  lobbying on behalf of a principal for economic consideration.
    19  [The term includes an attorney who engages in lobbying.]
    20     "Principal."  Any individual, firm, association, corporation,
    21  partnership, business trust or business entity:
    22         (1)  on whose behalf a lobbyist influences or attempts to
    23     influence an administrative action or a legislative action;
    24     or
    25         (2)  that engages in lobbying on the principal's own
    26     behalf.
    27     "Registrant."  A [registered lobbyist or a] registered
    28  principal.
    29     "Regulation."  Any rule, regulation or order in the nature of
    30  a rule or regulation, including formal and informal opinions of
    20030H1770B2295                  - 5 -     

     1  the Attorney General, of general application and future effect,
     2  promulgated by an agency under statutory authority in the
     3  administration of a statute administered by or relating to the
     4  agency, or prescribing the practice or procedure before the
     5  agency.
     6     "Reportable communication."  An effort, whether written,
     7  oral, or by any other medium, made by a lobbyist engaged in
     8  lobbying on behalf of a principal or by a principal, directed to
     9  a State official or employee, or directed to others, including
    10  the general public, to take action, the purpose or foreseeable
    11  effect of which is to directly influence legislative action or
    12  administrative action. The term includes letter-writing
    13  campaigns, mailings, telephone banks, print and electronic media
    14  advertising, billboards, publications and educational campaigns
    15  on public issues. The term does not include regularly published
    16  periodic newsletters primarily designed for and distributed to
    17  members of a bona fide association or charitable or fraternal
    18  nonprofit corporation.
    19     "State official or employee."  An individual elected or
    20  appointed to a position in State government or employed by State
    21  government, whether compensated or uncompensated, who is
    22  involved in legislative action or administrative action.
    23  § 1304.  Registration.
    24     (a)  General rule.--Unless excluded under section 1306
    25  (relating to exemption from registration and reporting), [a
    26  lobbyist or] a principal must register with the commission
    27  within ten days of acting in any capacity as a lobbyist or
    28  principal. Registration shall be biennial and be coincident with
    29  the terms of the members of the House of Representatives.
    30     (b)  Principals.--
    20030H1770B2295                  - 6 -     

     1         (1)  A principal required to register shall file the
     2     following information with the commission:
     3             (i)  Name.
     4             (ii)  Permanent address.
     5             (iii)  Daytime telephone number.
     6             (iv)  Name and nature of business.
     7             (v)  Name, registration number and acronyms of
     8         affiliated political action committees.
     9             (vi)  Name and permanent business address, daytime
    10         telephone number and a recent photograph of each
    11         individual who will for economic consideration engage in
    12         lobbying on the principal's behalf.
    13         (2)  If an organization or association is a principal,
    14     the number of dues-paying members in the past calendar year
    15     shall also be disclosed.
    16     [(c)  Lobbyist.--
    17         (1)  A lobbyist who is required to register shall file
    18     the following information with the commission:
    19             (i)  Name.
    20             (ii)  Permanent business address.
    21             (iii)  Daytime telephone number.
    22             (iv)  A recent picture of the lobbyist.
    23             (v)  Name, permanent business address and daytime
    24         telephone number of the principal the lobbyist
    25         represents.
    26             (vi)  Name, registration number and acronyms of
    27         affiliated political action committees.
    28         (2)  Each lobbyist shall file a separate registration
    29     statement for each principal he or she represents.]
    30     (d)  Amendments.--
    20030H1770B2295                  - 7 -     

     1         (1)  When there is a change of information required for
     2     the registration statement under subsection (b)(1) [or (c)],
     3     an amended statement shall be filed with the commission
     4     within 14 days after the change occurs.
     5         (2)  When there is a change in information required for
     6     the registration statement under subsection (b)(2), an
     7     amended statement shall be filed with the commission within
     8     14 days of the end of the year in which the change occurs.
     9     (e)  Termination.--A [lobbyist or a] principal may terminate
    10  registration by filing notice with the commission. Within 30
    11  days of filing the notice, the [lobbyist or] principal shall
    12  file a termination report, which shall include all information
    13  required by section 1305 (relating to reporting) through the
    14  final day of lobbying activity. After a reasonable review of the
    15  termination report but not later than 90 days after receipt of
    16  the notice, the commission shall issue to the [lobbyist or]
    17  principal a letter stating that the registrant has terminated
    18  registration. The filing of notice or a termination report shall
    19  not affect the commission's authority to conduct investigations
    20  and hearings pursuant to section 1308(h) (relating to
    21  administration and enforcement). No lobbying may occur after the
    22  filing of notice unless the lobbying is pursuant to a separate
    23  registration statement which is filed with the commission and
    24  which, at the time of the lobbying, has not been terminated.
    25  § 1305.  Reporting.
    26     (a)  General rule.--A [lobbyist as required by subsection
    27  (b)(6) or a] registered principal shall, under oath or
    28  affirmation, file quarterly expense reports with the commission.
    29     (b)  Content.--
    30         (1)  Reports must list the names of all lobbyists on
    20030H1770B2295                  - 8 -     

     1     behalf of principals by whom the lobbying is conducted and
     2     the general subject matter or issue being lobbied.
     3         (2)  Expense reports must contain the following
     4     categories:
     5             [(i)  A single aggregate good faith estimate of the
     6         total amount spent for personnel and office expenses
     7         related to lobbying. This subparagraph includes salaries
     8         and other forms of compensation, benefits, vehicle
     9         allowances, bonuses and reimbursable expenses for those
    10         involved in lobbying. If compensation is to be reported
    11         by or for an individual or entity whose lobbying is
    12         incidental to regular employment, it shall be sufficient
    13         to report a good faith prorated estimate based on the
    14         value of the time devoted to lobbying. Reportable
    15         personnel costs include costs for lobbying staff,
    16         research and monitoring staff, consultants, lawyers,
    17         lobbyists, publications and public relations staff,
    18         technical staff and clerical and administrative support
    19         staff who engage in lobbying but are exempt from
    20         reporting under section 1306(6) (relating to exemption
    21         from registration and reporting). This subparagraph
    22         includes costs for offices, equipment and supplies
    23         utilized for lobbying.
    24             (ii)  A single aggregate good faith estimate of the
    25         total amount spent for direct communication.]
    26             (i)  The total cost for reportable communication.
    27         [(iii)] (ii)  The total costs for gifts, entertainment,
    28         meals, transportation, lodging and receptions given to or
    29         provided to State officials or employees or their
    30         immediate families.
    20030H1770B2295                  - 9 -     

     1             [(iv)  A single aggregate good faith estimate of the
     2         total amount spent for indirect communication.]
     3         (3)  In addition to reporting the totals required under
     4     this subsection, the expense report must identify, by name,
     5     position and each occurrence, a State official or employee
     6     who receives from a principal or lobbyist anything of value
     7     which must be included in the statement under section
     8     1105(b)(6) or (7) (relating to statement of financial
     9     interests) as implemented by section 1105(d).
    10             (i)  For purposes of this chapter, the amount
    11         referred to in section 1105(b)(7) shall be considered an
    12         aggregate amount per year.
    13             (ii)  Written notice must be given to each public
    14         official or employee of inclusion in the expense report
    15         within seven days of the report's submission to the
    16         commission. Notice under this subparagraph shall include
    17         the information which will enable the public official or
    18         employee to comply with section 1105(b)(6) and (7). For
    19         purposes of this chapter and Chapter 11 (relating to
    20         ethics standards and financial disclosure), section
    21         1105(b)(6) and (7) shall constitute mutually exclusive
    22         categories.
    23             (iii)  Regulations shall be promulgated under section
    24         1310(c) (relating to filing fees; fund established;
    25         regulations) to define mutually exclusive categories
    26         under section 1105(b)(6) and (7) and to determine whether
    27         a thing of value is subject to disclosure under section
    28         1105(b)(6) or (7).
    29         (4)  A lobbyist must sign the reports submitted by each
    30     principal represented to attest to the validity and accuracy
    20030H1770B2295                 - 10 -     

     1     to the best of the lobbyist's knowledge. A lobbyist may
     2     attach a statement to the report of any principal, describing
     3     the limits of the lobbyist's knowledge concerning the
     4     expenditures contained in the report.
     5         (5)  The expense report shall also include the name,
     6     permanent business address and daytime telephone number of
     7     any individual, firm, association, corporation, partnership,
     8     business trust or business entity which contributed more than
     9     10% of the total resources received by the principal during
    10     the reporting period.
    11         [(6)  A lobbyist shall submit a separate report if,
    12     during the reporting period, the lobbyist engaged in lobbying
    13     which was not contained in the reports filed by the principal
    14     or principals represented by the lobbyist. A separate
    15     lobbyist report shall contain the identity of the principal
    16     for whom such lobbying was performed and shall contain all
    17     information required under paragraphs (2) and (3).]
    18         (7)  A registered principal [or registered lobbyist] that
    19     attempts, or that retains a lobbyist to attempt, to influence
    20     an agency's preparing, bidding, entering into or approving a
    21     contract shall ensure that the related expenses are included
    22     under paragraph (2).
    23     (c)  Records retention.--A registrant shall retain all
    24  documents reasonably necessary to substantiate the reports to be
    25  made under this section for four years from the date of filing
    26  the subject report. Upon request by the Office of the Attorney
    27  General or the commission, these materials shall be made
    28  available for inspection within a reasonable period of time.
    29     (d)  Thresholds for reporting.--An expense report shall be
    30  filed when total expenses for lobbying exceed $500 for a
    20030H1770B2295                 - 11 -     

     1  registered principal [or a registered lobbyist] in a reporting
     2  period. In a reporting period in which total expenses are $500
     3  or less, a statement to that effect shall be filed.
     4     [(e)  Voluntary disclosure.--Nothing in this section shall
     5  prevent a principal or lobbyist from disclosing expenses in
     6  greater detail than required.]
     7  § 1306.  Exemption from registration and reporting.
     8     The following individuals and activities shall be exempt from
     9  registration under section 1304 (relating to registration) and
    10  reporting under section 1305 (relating to reporting):
    11         (1)  An individual who limits lobbying activities to
    12     preparing testimony and testifying before a committee of the
    13     legislature or participating in an administrative proceeding
    14     of an agency.
    15         (2)  An individual who is an employee of an entity
    16     engaged in the business of publishing, broadcasting or
    17     televising while engaged in the gathering and dissemination
    18     of news and comment thereon to the general public in the
    19     ordinary course of business.
    20         (3)  Any of the following:
    21             (i)  An individual who does not receive compensation,
    22         other than traveling expenses, for lobbying.
    23             [(ii)  An individual whose compensation for lobbying,
    24         from all principals represented, does not exceed $2,500
    25         in the aggregate during any reporting period.]
    26             (iii)  An individual who engages in lobbying on
    27         behalf of the individual's employer and where lobbying
    28         activity represents less than the equivalent of $2,500 of
    29         the employee's time during any reporting period, based on
    30         an hourly proration of the employee's compensation.
    20030H1770B2295                 - 12 -     

     1             (iv)  A principal whose total expenses for lobbying
     2         purposes do not exceed $2,500 during any reporting
     3         period.
     4         (4)  Any of the following:
     5             (i)  An elected State officer acting in an official
     6         capacity.
     7             (ii)  A State executive officer appointed by the
     8         Governor acting in an official capacity.
     9             (iii)  An elected or appointed official or employee
    10         of a political subdivision acting in an official
    11         capacity.
    12             (iv)  An employee of the Commonwealth or independent
    13         agency of the Commonwealth acting in an official
    14         capacity.
    15         (5)  An individual representing a bona fide church or
    16     religious body of which the individual is a member and the
    17     purpose of the lobbying is solely for the purpose of
    18     protecting the constitutional right to the free exercise of
    19     religion.
    20         (6)  An employee[, who is not a registered lobbyist,] of
    21     a corporation which:
    22             (i)  is registered as a principal under section 1304;
    23             (ii)  has retained one or more [registered]
    24         lobbyists; and
    25             (iii)  includes in its reports under section 1305 all
    26         of the employee's expenses related to lobbying.
    27  § 1307.  Prohibited activities.
    28     (a)  Contingent compensation.--
    29         (1)  No one may compensate or incur an obligation to
    30     compensate any lobbyist, principal or individual to engage in
    20030H1770B2295                 - 13 -     

     1     lobbying for compensation contingent in whole or in part upon
     2     any of the following:
     3             (i)  Passage or defeat, or approval or veto, of
     4         legislation.
     5             (ii)  Occurrence or nonoccurrence of an
     6         administrative action.
     7         (2)  No lobbyist, principal or individual may engage or
     8     agree to engage in lobbying for compensation contingent in
     9     whole or in part upon any of the following:
    10             (i)  Passage or defeat, or approval or veto, of
    11         legislation.
    12             (ii)  Occurrence or nonoccurrence of an
    13         administrative action.
    14     (b)  Political committees.--A lobbyist may not serve as a
    15  treasurer or another officer for a candidate's political
    16  committee or a candidate's political action committee when such
    17  political committee or political action committee is required to
    18  file reports authorized by Article XVI of the act of June 3,
    19  1937 (P.L.1333, No.320), known as the Pennsylvania Election
    20  Code, with the Secretary of the Commonwealth.
    21     (c)  Fee restrictions.--A [lobbyist] principal may not
    22  [charge a fee or receive] render payment of a fee, compensation
    23  or other economic consideration based upon an understanding,
    24  either written or oral, that any part of the fee, compensation
    25  or economic consideration will be converted into a contribution
    26  to a candidate for public office or a political committee.
    27     (d)  Falsification.--No lobbyist or principal may, for the
    28  purpose of influencing legislative action or administrative
    29  action, transmit, utter or publish to any State official or
    30  employee any communication, knowing that such communication or
    20030H1770B2295                 - 14 -     

     1  any signature on the communication is false, forged, counterfeit
     2  or fictitious.
     3  § 1308.  Administration and enforcement.
     4     (a)  Criminal enforcement.--If the commission believes an
     5  intentional violation of this chapter has been committed, it
     6  shall refer all relevant documents and other information to the
     7  Office of Attorney General.
     8     (b)  Attorney General.--In addition to the authority
     9  conferred upon the Attorney General under the act of October 15,
    10  1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act,
    11  the Attorney General has the authority to investigate and
    12  prosecute a violation of this chapter.
    13     (c)  Advice and opinions.--The commission shall provide
    14  advice and opinions in accordance with procedures set forth in
    15  section 1107 (relating to powers and duties of commission) to a
    16  lobbyist, principal or State official or employee who has a
    17  question regarding compliance with this chapter. A principal, a
    18  lobbyist or an individual who acts in good faith based on the
    19  written advice or opinion of the commission shall not be held
    20  liable for a violation of this chapter.
    21     (d)  Public inspection and copying.--The commission shall
    22  make completed registration statements, expense reports,
    23  termination notices and termination reports which have been
    24  filed with the commission available for public inspection and
    25  provide copies of these documents at a price which shall not
    26  exceed the actual cost of copying. Documents that are maintained
    27  and reproducible in an electronic format shall be provided in
    28  that format upon request.
    29     (e)  Annual reporting.--The commission shall prepare and
    30  publish an annual report on lobbying activities in this
    20030H1770B2295                 - 15 -     

     1  Commonwealth. The commission shall also annually publish a
     2  listing of principals, identifying affiliated political action
     3  committees and lobbyists, and a listing of lobbyists,
     4  identifying affiliated political action committees and
     5  principals.
     6     (f)  Retention of records.--Completed registration
     7  statements, expense reports, termination notices and termination
     8  reports shall remain on file with the commission for a four-year
     9  period.
    10     (g)  Audits.--The commission shall initiate, by lottery,
    11  random annual audits of the registration statements and
    12  disclosure reports in sufficient number to ensure compliance
    13  with this chapter. The audit report and findings shall be
    14  confidential; however, the commission shall include the relevant
    15  portion of an audit as part of its findings of fact in a
    16  commission order which results from an investigation arising out
    17  of an audit.
    18     (h)  Investigation and hearings.--The commission, through its
    19  executive director, may initiate an investigation and hold a
    20  hearing concerning [negligent conduct by a lobbyist or
    21  principal] any alleged violation of this chapter in accordance
    22  with sections 1107 and 1108 (relating to investigations by
    23  commission).
    24     (i)  Directory.--On or before May 1 of each odd-numbered
    25  year, the commission shall produce and distribute a directory of
    26  all [registered] lobbyists retained by registered principals,
    27  including photographs. Copies of this directory shall be made
    28  available to the public at a price not to exceed the actual cost
    29  of production. All revenue received by the commission from the
    30  sales of this directory shall be deposited into the fund.
    20030H1770B2295                 - 16 -     

     1     (j)  Computer file.--The Legislative Data Processing
     2  Committee shall maintain updated registration statements,
     3  expense reports, termination notices and termination reports.
     4     (k)  Cost-of-living adjustment.--On a biennial basis
     5  commencing in January [2002] 2004, the commission shall review
     6  the threshold for reporting under section 1305(d) (relating to
     7  reporting) and the threshold for exemption under section
     8  1306(3)(ii) through (iv) (relating to exemption from
     9  registration and reporting) and may increase these amounts to
    10  rates deemed reasonable for assuring appropriate disclosure. The
    11  commission shall publish any such adjusted threshold amounts in
    12  the Pennsylvania Bulletin by June 1, [2002] 2004, and every two
    13  years thereafter as necessary.
    14  § 1309.  Penalties.
    15     (a)  Notice of noncompliance.--The commission shall issue a
    16  notice of noncompliance to any [lobbyist,] principal or
    17  individual that has failed to register or report as required by
    18  this chapter. The notice shall state the nature of the alleged
    19  noncompliance and the civil and criminal penalties for failure
    20  to register, failure to file or filing a report containing a
    21  false statement. The notice shall also advise of the right to a
    22  hearing before the commission and the time and manner in which
    23  to request a hearing.
    24     (b)  Hearing.--If a hearing is requested, the commission
    25  shall determine at the hearing whether the recipient of the
    26  notice is required to register or report under this chapter,
    27  whether the failure to register or report was negligent and, if
    28  the failure was negligent, the amount of the civil penalty to be
    29  imposed. If the commission finds that the failure to register or
    30  report was intentional, it shall refer the matter to the
    20030H1770B2295                 - 17 -     

     1  Attorney General for investigation and prosecution. Hearings
     2  under this subsection shall be conducted by the commission in
     3  accordance with sections [1107(14)] 1107 (relating to powers and
     4  duties of commission) and [1108(e)] 1108 (relating to
     5  investigations by commission).
     6     (c)  Negligent failure to register or report.--Negligent
     7  failure to register or report as required by this chapter is
     8  punishable by a civil penalty not exceeding $50 for each late
     9  day. After a hearing under subsection (b), in the case of
    10  negligent failure to register or report, the commission may,
    11  upon the majority vote of its members, levy a civil penalty as
    12  provided for in this subsection. The total amount of the civil
    13  penalty levied shall not be limited by any other provision of
    14  law. The commission shall have standing to apply to Commonwealth
    15  Court to seek enforcement of an order imposing a civil penalty
    16  under this section.
    17     (d)  Failure to comply after notice.--After notice of
    18  noncompliance and after a hearing, if one is requested, a
    19  lobbyist or principal who fails to comply with the requirements
    20  of this chapter may be prohibited from lobbying for up to five
    21  years. The prohibition shall be imposed as provided by
    22  subsection (e)(4).
    23     (e)  Intentional violations.--
    24         (1)  Any [lobbyist,] principal or individual that
    25     intentionally fails to register or report as required by this
    26     chapter commits a misdemeanor of the second degree.
    27         (2)  A registrant that files a report under this chapter
    28     with knowledge that the report contains a false statement
    29     commits a misdemeanor of the second degree.
    30         (3)  Except as set forth in paragraph (1) or (2), any
    20030H1770B2295                 - 18 -     

     1     lobbyist, principal or individual that intentionally violates
     2     this chapter commits a misdemeanor of the third degree.
     3         (4)  In addition to the criminal penalties imposed by
     4     this subsection, the commission may prohibit a lobbyist or
     5     principal from lobbying for up to five years for doing an act
     6     which constitutes an offense under this subsection. No
     7     criminal prosecution or conviction shall be required for the
     8     imposition of the prohibition authorized by this paragraph.
     9     The prohibition under this paragraph shall not be imposed
    10     unless the defendant has been afforded the opportunity for a
    11     hearing, which shall be conducted by the commission in
    12     accordance with sections 1107(14) and 1108(e).
    13  § 1310.  Filing fees; fund established; regulations.
    14     (a)  Filing fees.--A principal or lobbyist required to be
    15  registered under this chapter shall pay a biennial filing fee of
    16  $100 to the commission.
    17     (b)  Fund established.--All money received from filing fees
    18  under subsection (a) shall be deposited in a restricted receipts
    19  account to be known as the Lobbying Disclosure Fund. The money
    20  deposited in the fund is hereby appropriated to the commission
    21  as a continuing appropriation for the exclusive purpose of
    22  carrying out the provisions of this chapter.
    23     (c)  Regulations.--A committee comprised of the Secretary of
    24  the Senate, the Chief Clerk of the House of Representatives, the
    25  chairman of the State Ethics Commission, the Attorney General,
    26  the Secretary of the Commonwealth, the Auditor General [and],
    27  the General Counsel, a member of the Senate appointed by the
    28  President pro tempore of the Senate and a member of the House of
    29  Representatives appointed by the Speaker of the House of
    30  Representatives, or their designees, shall have continuing
    20030H1770B2295                 - 19 -     

     1  authority to promulgate regulations necessary to carry out this
     2  chapter. The chairman of the commission shall be designated as
     3  the chairman of the committee. The initial proposed regulations
     4  shall be submitted within 180 days of the effective date of this
     5  section to the Independent Regulatory Review Commission under
     6  section 5 of the act of June 25, 1982 (P.L.633, No.181), known
     7  as the Regulatory Review Act. Any meeting at which the committee
     8  plans to approve proposed regulations shall be held in
     9  accordance with Chapter 7 (relating to open meetings). The
    10  committee shall also prepare and publish a manual setting forth
    11  guidelines for accounting and reporting. The regulations and
    12  manual shall be drafted to accommodate the use of computerized
    13  recordkeeping, electronic filing of the reports provided for
    14  under this chapter and retention of registration statements and
    15  reports provided for under this chapter by electronic means. The
    16  Department of State shall provide sufficient staff and other
    17  administrative support to assist the committee.
    18  § 1311.  Severability.
    19     [(a)  General rule.--Except as provided in subsection (b):
    20         (1)]  The provisions of this chapter are severable.
    21         [(2)]  If any provision of this chapter or its
    22     application to any person or circumstance is held invalid,
    23     the invalidity shall not affect other provisions or
    24     applications of this chapter which can be given effect
    25     without the invalid provision or application.
    26     [(b)  Practice of law.--If any provision of this chapter or
    27  its application to any person or circumstance is held invalid on
    28  the basis of improper regulation of the practice of law, the
    29  remaining provisions or applications of this chapter are void.]
    30     Section 3.  This act shall take effect immediately.
    F25L65SFL/20030H1770B2295       - 20 -