1Restricting certain activities of employees, appointees and
2officials in the Executive Branch.

3The General Assembly of the Commonwealth of Pennsylvania
4hereby enacts as follows:

5Section 1. Short title.

6This act shall be known and may be cited as the Governor's
7Code of Conduct Act.

8Section 2. Definitions.

9The following words and phrases when used in this act shall
10have the meanings given to them in this section unless the
11context clearly indicates otherwise:

12"Covered person." The term includes the Governor, Lieutenant
13Governor and an employee, appointee or official in the executive
14branch.

15"Regulated gaming entity." An entity regulated by 4 Pa.C.S.
16Part II (relating to gaming).

17Section 3. Adverse pecuniary interest.

1A covered person may not engage in any of the following:

2(1) Engage directly or indirectly in business
3transactions or private arrangement for profit which accrues
4from or is based on the covered person's official position of
5authority.

6(2) Participate in the negotiation of a decision to
7award contracts, the settlement of claims or charges in
8contracts, the making of loans, the granting of subsidies,
9the fixing of rates or the issuance of permits, certificates,
10guarantees or other things of value to, with or for an entity
11in which the covered person has a financial or personal
12interest.

13(3) Hold any pecuniary interest in, or own shares or
14securities issued by, a regulated gaming entity. This
15paragraph does not apply to interests held:

16(i) In mutual funds when the value of the interest
17owned does not exceed 1% of the total fair market value
18of a regulated gaming entity.

19(ii) Through defined benefit pension plans.

20(iii) Through a deferred compensation plan organized
21and operated under section 457 of the Internal Revenue
22Code of 1986 (Public Law 99-514, 26 U.S.C. § 457 et
23seq.).

24(iv) Through a tuition account plan organized and
25operated under section 529 of the Internal Revenue Code
26of 1986 (Public Law 99-514, 26 U.S.C. § 529 et seq.).

27(v) Through a plan described in section 401(k) of
28the Internal Revenue Code of 1986 (Public Law 99-514, 26
29U.S.C § 401(k) et seq.).

30(vi) In an employer profit-sharing plan qualified

1under the Internal Revenue Code.

2(vii) In a regulated gaming entity prior to July 6,
32004, by individuals other than the following:

4(A) Employees of the Pennsylvania State Police
5or the Department of Revenue whose duties include any
6aspect of the gaming industry.

7(B) Members of the State Horse Racing Commission
8or the State Harness Racing Commission and their
9respective staff.

10(C) Public officials appointed by the Governor
11and Commonwealth employees under the Governor's
12jurisdiction.

13(D) Members of the board of the Public School
14Employees' Retirement System and its employees.

15(E) Members of the board of the State Employees'
16Retirement System and its employees.

17(F) Members of the board of the Independent
18Regulatory Review Commission and its employees.

19Section 4. Representation of interests.

20No covered person may represent or act as agent for a private
21interest, whether for compensation or not, in a transaction in
22which the State has a direct and substantial interest and which
23could be reasonably expected to result in a conflict between a
24private interest of the covered person and the covered person's
25official State responsibility.

26Section 5. Gifts and favors.

27(a) General rule.--No covered person may solicit or accept
28for the personal use of himself or another, a gift, gratuity,
29favor, entertainment, loan or other thing of monetary value from
30a person who:

1(1) is seeking to obtain business from or has financial
2relations with the Commonwealth;

3(2) conducts operations or activities that are regulated
4by the Commonwealth;

5(3) is engaged, either as principal or attorney, in
6proceedings before the Commonwealth or in court proceedings
7in which the Commonwealth is an adverse party; or

8(4) has interests that may be substantially affected by
9the performance or nonperformance of the official duty of the
10covered person.

11(b) Exceptions.--Subsection (a) shall not apply to any of
12the following:

13(1) The solicitation or acceptance of something of
14monetary value from a friend, parent, spouse, child or other
15close relative when the circumstances make it clear that the
16motivation for the action is a personal or family
17relationship.

18(2) Acceptance of food and refreshment of nominal value
19on infrequent occasions in the ordinary course of a luncheon
20or dinner meeting or other meeting.

21(3) The acceptance of loans from banks or other
22financial institutions on customary terms of finance for
23proper and usual activities, such as home mortgage loans.

24(4) Acceptance of unsolicited advertising or promotional
25material, such as pens, pencils, note pads, calendars and
26other items of nominal intrinsic value.

27(5) Receipts of bona fide reimbursement for actual
28expenses for travel and other necessary subsistence as is
29compatible with other restrictions enumerated in this act and
30for which no Commonwealth payment or reimbursement is made. A

1covered person may not be reimbursed, and payment may not be
2made on his behalf, for excessive personal living expenses,
3gifts, entertainment or other personal benefits nor may a
4covered employee be reimbursed by a person for travel on
5official business under Commonwealth orders.

6(6) Participation in the affairs of or acceptance of an
7award for a meritorious public contribution or achievement
8from a charitable, religious, professional, social, fraternal
9or nonprofit educational, recreational, public service or
10civic organization.

11(7) A voluntary gift of nominal value or donation in a
12nominal amount made on a special occasion such as marriage,
13illness or retirement.

14(8) A plaque, memento or gift of nominal value offered
15as a token of esteem or appreciation on the occasion of a
16public appearance, visit, speech or similar activity.

17Section 6. Misuse of information.

18No covered person may for his own personal gain or for the
19gain of others use information obtained as a result of service
20or employment with the Commonwealth and not available to the
21public at large or divulge the information in advance of the
22time prescribed for its authorized release.

23Section 7. Misuse of office facilities and equipment.

24No covered employee may use any Commonwealth equipment,
25supplies or properties for his own private gain or for other
26than officially designated purposes.

27Section 8. Supplementary employment.

28(a) General rule.--No covered employee may engage in or
29accept private employment or render services for a private
30interest unless the employment or service is approved in advance

1by the head of the agency to which the covered person is
2assigned. Supplementary employment may be undertaken only when
3not in conflict with the conditions of employment regulations
4promulgated by the Executive Board, if applicable, the Civil
5Service Commission and the government agency by which the
6covered person is employed.

7(b) Construction.--This section shall not be construed to
8prohibit individuals appointed to serve part time on boards and
9commissions from pursuing their usual occupation, provided that
10they do not perform services or receive compensation from
11persons or institutions which they regulate or otherwise conduct
12themselves in a manner inconsistent with the impartial
13administration of their official duties.

14Section 9. Honoraria.

15(a) General rule.--No covered person shall accept honoraria,
16speaking fees or any other valuable consideration.

17(b) Compensation.--

18(1) No covered person may receive compensation for
19consultation which draws upon ideas or data derived from his
20official duties.

21(2) Notwithstanding paragraph (1), a covered person may
22designate nonprofit, charitable organizations to be
23recipients of honoraria or speaking fees offered to the
24covered person by groups which customarily offer such
25honoraria to guest speakers.

26(3) Paragraph (2) does not apply to individuals
27appointed to serve on boards and commissions who may not,
28however, accept such honoraria from groups that are regulated
29by the board or commission on which they serve or which could
30otherwise raise a legitimate question about their ability to

1fairly and impartially perform their official duties.

2Section 10. Political activity.

3No covered person may:

4(1) Engage in any political activity such as
5campaigning, fundraising, canvassing or poll watching during
6the covered person's specified working hours or which is
7determined by the Secretary of Administration to conflict or
8interfere with the ability of the affected official or
9employee to effectively and efficiently carry out the duties
10and functions of the covered person's position.

11(2) In any manner coerce another person in government
12service or employment to contribute time, money or services
13to a political candidate or campaign.

14Section 11. Enforcement.

15A covered person who refuses or fails to comply with this act
16shall be subjected to disciplinary action, including, but not
17limited to, reprimands, suspensions and termination.

18Section 12. Effective date.

19This act shall take effect in 60 days.