PRINTER'S NO. 4248
No. 2738 Session of 2008
INTRODUCED BY NICKOL, MANN, BAKER, BEAR, BOYD, CIVERA, CLYMER, FAIRCHILD, FLECK, GIBBONS, GODSHALL, HENNESSEY, KOTIK, MARSHALL, MELIO, R. MILLER, MILNE, NAILOR, PHILLIPS, PICKETT, QUINN, ROAE, ROCK, RUBLEY, SAYLOR, SCAVELLO, SONNEY, STERN, SWANGER AND WATSON, AUGUST 21, 2008
REFERRED TO COMMITTEE ON STATE GOVERNMENT, AUGUST 21, 2008
AN ACT 1 Amending the act of April 9, 1929 (P.L.343, No.176), entitled, 2 as amended, "An act relating to the finances of the State 3 government; providing for the settlement, assessment, 4 collection, and lien of taxes, bonus, and all other accounts 5 due the Commonwealth, the collection and recovery of fees and 6 other money or property due or belonging to the Commonwealth, 7 or any agency thereof, including escheated property and the 8 proceeds of its sale, the custody and disbursement or other 9 disposition of funds and securities belonging to or in the 10 possession of the Commonwealth, and the settlement of claims 11 against the Commonwealth, the resettlement of accounts and 12 appeals to the courts, refunds of moneys erroneously paid to 13 the Commonwealth, auditing the accounts of the Commonwealth 14 and all agencies thereof, of all public officers collecting 15 moneys payable to the Commonwealth, or any agency thereof, 16 and all receipts of appropriations from the Commonwealth, 17 authorizing the Commonwealth to issue tax anticipation notes 18 to defray current expenses, implementing the provisions of 19 section 7(a) of Article VIII of the Constitution of 20 Pennsylvania authorizing and restricting the incurring of 21 certain debt and imposing penalties; affecting every 22 department, board, commission, and officer of the State 23 government, every political subdivision of the State, and 24 certain officers of such subdivisions, every person, 25 association, and corporation required to pay, assess, or 26 collect taxes, or to make returns or reports under the laws 27 imposing taxes for State purposes, or to pay license fees or 28 other moneys to the Commonwealth, or any agency thereof, 29 every State depository and every debtor or creditor of the 30 Commonwealth," providing for limitations on investment 31 relationships and campaign contributions.
1 The General Assembly of the Commonwealth of Pennsylvania 2 hereby enacts as follows: 3 Section 1. The act of April 9, 1929 (P.L.343, No.176), known 4 as The Fiscal Code, is amended by adding a section to read: 5 Section 311. Limitations on Investment Relationships and 6 Campaign Contributions.--(a) (1) The Treasury Department shall 7 not enter into an investment relationship with a person who has 8 solicited any contribution on behalf of or made any contribution 9 to a candidate committee or election fund of the State Treasurer 10 or any candidate for State Treasurer. This prohibition shall 11 apply to solicitations and contributions made by the person, by 12 an individual representing the person or by a political action 13 committee controlled by the person. 14 (2) No person who has agreed to or entered into an 15 investment relationship with the Treasury Department shall 16 knowingly solicit or make any contribution to a candidate 17 committee or election fund of the State Treasurer or any 18 candidate for State Treasurer. This prohibition shall apply to 19 solicitations and contributions made by the person, by an 20 individual representing the person or by a political action 21 committee controlled by the person. 22 (b) Subsection (a) shall apply to the time period which 23 begins two years prior to the following dates and ends upon the 24 termination of the investment relationship: 25 (1) the date upon which the Treasury Department first 26 announces a procurement or search process that could lead to an 27 investment relationship which can reasonably be expected to 28 generate at least twenty-five thousand dollars ($25,000) 29 annually in income, fees or other revenue to the person; or 30 (2) the date upon which a person approaches the Treasury 20080H2738B4248 - 2 -
1 Department with a proposal to enter into an investment 2 relationship with the Treasury Department by discussing the 3 specific facts and financial terms of a particular investment 4 transaction or strategy. 5 (c) The State Ethics Commission shall cause an independent 6 investigation to be performed for any reported violation of this 7 section and report any documented violation to the State 8 Treasurer for action within ten business days of the conclusion 9 of the independent investigation. Copies of this report shall 10 also be submitted to the chairman of the Appropriations 11 Committee of the Senate and the chairman of the Appropriations 12 Committee of the House of Representatives within ten business 13 days of the conclusion of the independent investigation. The 14 State Ethics Commission shall submit the report to the 15 Legislative Reference Bureau for publication in the next 16 succeeding publication of the Pennsylvania Bulletin. 17 (d) If a person seeking an investment relationship with the 18 Treasury Department is found to be in violation of this section, 19 the person shall be prohibited from engaging in an investment 20 relationship with the Treasury Department for a period of two 21 years. A person who has an existing investment relationship with 22 the Treasury Department and who is found to be in violation of 23 the provisions of this section shall be prohibited from 24 providing any additional investment services for the Treasury 25 Department for a period of two years. 26 (e) If a person voluntarily reports a violation of this 27 section to the State Ethics Commission within ninety days of the 28 contribution's being made, and it is established pursuant to an 29 independent investigation that the violation was inadvertently, 30 unintentionally or unknowingly made and the contribution was 20080H2738B4248 - 3 -
1 returned, the provisions of subsection (d) shall not apply. 2 (f) As used in this section, the following words and phrases 3 shall have the meaning given to them in this subsection: 4 "Contribution." A contribution reportedly by the recipient 5 under Article XVI of the act of June 3, 1937 (P.L.1333, No.320), 6 known as the "Pennsylvania Election Code." 7 "Investment relationship." A relationship between a person 8 and the Treasury Department for the purpose of providing 9 investment services such as legal services, investment banking 10 services, investment advisory services, underwriting services, 11 financial advisory services or brokerage firm services for 12 brokerage, underwriting and financial advisory activities. 13 "Person." An individual, organization or partnership 14 currently engaged in or seeking to engage in an investment 15 relationship with the Treasury Department where the relationship 16 can reasonably be expected to generate at least twenty-five 17 thousand dollars ($25,000) annually in income, fees or other 18 revenue to the individual, organization or partnership and shall 19 specifically include: 20 (1) Authorized or key personnel as defined or identified by 21 a contracting party by being attached to the contract. 22 (2) Persons who expect to or do experience a material 23 financial effect on their economic interests, including salary, 24 bonuses, options or other financial incentives directly deriving 25 from an investment relationship. 26 Section 2. The addition of section 311 of the act shall 27 apply to contributions and investment relationships made or 28 entered into after November 30, 2010. 29 Section 3. This act shall take effect in 60 days. G18L72MSP/20080H2738B4248 - 4 -