Pennsylvania Act 1968-154 — LEGISLATIVE CODE OF ETHICS

Act text

LEGISLATIVE CODE OF ETHICS
                 Act of Jul. 10, 1968, P.L. 316, No. 154              Cl. 46
                                  AN ACT

     Establishing a code of ethics for the General Assembly, its
        officers and employes, and providing remedies for its
        enforcement and penalties.

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

        Section 1.  Short Title.--This act shall be known and may be
     cited as the "Legislative Code of Ethics."
        Section 2.  Legislative Findings and Declaration of Policy.--
     The General Assembly finds as follows:
        (1)  Where government is based on the consent of the
     governed, every citizen is entitled to have complete confidence
     in the integrity of his government.
        (2)  It is deemed by the General Assembly to be the duty of
     each member, officer, or employe of the legislative branch to
     help earn and honor that trust by his own integrity and conduct
     in all official actions.
        (3)  Although the vast majority of these public servants are
     dedicated and serve with high integrity, most of them would
     welcome a code of ethics to clearly guide them in areas which
     are not now clearly defined, and
        (4)  It is the desire of the General Assembly to protect the
     public confidence in its Legislature, to establish a guide for
     all legislative members, officers and employes in decisions of
     personal interest conflicts and to curb any tendencies for
     exploitation of official position.
        Section 3.  Definitions.--Unless the context clearly
     indicates otherwise, the following words and terms when used
     herein shall have the respective meanings defined as follows:
        (1)  "Agency" means any department, agency, commission,
     board, committee, authority or other instrumentality which is
     created by or under the Constitution or laws of the Commonwealth
     of Pennsylvania or by executive order, except local political
     subdivisions or agencies, the majority of the members of whose
     governing bodies are locally elected or appointed.
        (2)  "Agency head" and "head of any agency" mean the chief
     executive or administrative officer of each of the State
     agencies.
        (3)  "Assist" means to act, or agree to act, in such a way as
     to help, aid, advise, furnish information to, or otherwise
     provide assistance to another person believing that such action
     is of help, aid, advice, or assistance to such person and with
     intent to so assist such person.
        (4)  "Compensation" means any thing of economic value,
     however designated, which is paid, loaned, granted, given,
     donated or transferred, or to be paid, loaned, granted, given,
     donated or transferred for or in consideration of personal
     services to any person, official or to the State.
        (5)  "Gift," as used in section 5, includes any thing of
     economic value with the exception of public awards,
     insignificant nonpecuniary gifts, political contributions for
     which an accounting is required by and is made pursuant to the
     election laws, or compensation or gifts not connected with or
     related to either the legislative processes or the donee's
     services as a member.
        (6)  "Member" shall include a Senator, Representative,
     officer or employe of the General Assembly or any committee
     thereof; but not a person employed on a contractual basis or
     without compensation for a particular project.
        (7)  "State action" means any action on the part of the
     Commonwealth or a Commonwealth agency, including, but not
     limited to: (i) any decision, determination, finding, ruling or
     order, including the judgment or verdict of a court or a quasi-
     judicial board, in which the Commonwealth or any of its
     agencies, boards and commissions has an interest, except in such
     matters, involving criminal prosecutions; (ii) any grant,
     payment, award, license, contract, transaction, decision,
     sanction or approval, or the denial thereof, or the failure to
     act with respect thereto, in which the Commonwealth or any of
     its agencies has an interest, except in such matters involving
     criminal prosecutions; (iii) any disposition of any matter by
     the General Assembly or any committee thereof.
        (8)  "Participate" in connection with a transaction involving
     the Commonwealth means to take part in State action or a
     proceeding personally as a Commonwealth official, through
     approval, disapproval, decision, recommendation, the rendering
     of advice, investigation, or the failure to act or perform a
     duty.
        (9)  "Person" means: (i) an individual, other than a
     Commonwealth agency or official; (ii) a partnership,
     association, corporation, firm, institution, trust, foundation
     or other legal entity (other than an agency), whether or not
     operated for profit; (iii) a district, county, municipality or
     other political subdivision of the State, or any subdivision
     thereof, provided such is not an agency; (iv) a foreign country
     or subdivision thereof, or (v) any other entity which is not a
     Commonwealth agency or official.
        (10)  "Responsibility" in connection with a transaction
     involving the Commonwealth means the direct administration or
     operating authority whether intermediate or final, and either
     exercisable alone or with others, and either personally or
     through or with others or subordinates, to effectively approve,
     disapprove, fail to act or perform a duty, or otherwise direct
     State action in respect of such transaction.
        (11)  "Thing of economic value" means any money or other
     thing having economic value except food, drink or refreshments
     consumed by an official including reasonable transportation and
     entertainment incident thereto, while the personal guest of some
     person, and includes, without limiting the generality of the
     foregoing: (i) any loan, except a bone fide loan made by a duly
     licensed bank or savings and loan association at the normal rate
     of interest, any property interest, interest in a contract,
     merchandise, service and any employment or other arrangement
     involving a right to compensation; (ii) any option to obtain a
     thing of economic value, irrespective of the conditions to the
     exercise of such option; and (iii) any promise or undertaking
     for the present or future delivery or procurement of a thing of
     economic value.
        In the case of an option, promise or undertaking, the time of
     receipt of the thing of economic value shall be deemed to be,
     respectively, the time the right to the option becomes fixed,
     regardless of the conditions to its exercise, and the time when
     the promise or undertaking is made, regardless of the conditions
     to its performance.
        (12)  "Transaction involving the Commonwealth" means any
     proceeding, application, submission, request for a ruling or
     other determination, contract, claim, case or other such
     particular matter which the official in question believes, or
     has reason to believe: (i) is, or will be, the subject of State
     action, or (ii) is one to which the Commonwealth is or will be a
     party, or (iii) is one in which the Commonwealth has a direct
     interest.
        Section 4.  Standards of Conduct.--In addition to the other
     provisions of this act and in supplement thereto, the following
     are established as standards of conduct for members. No member
     shall:
        (1)  Accept employment or engage in any business or
     professional activity which will require him to disclose
     confidential information which he has gained by reason of his
     official position or authority.
        (2)  Improperly disclose confidential information acquired by
     him in the course of his official duties nor use such
     information to further his personal interests.
        (3)  Use or attempt to use his official position to secure
     unwarranted privileges or exemptions for himself or others.
        Section 5.  Prohibitions.--(a) No member shall knowingly
     solicit, accept, or receive any gift or compensation other than
     that to which he is duly entitled from the Commonwealth which is
     intended to influence the performance of his official duties or
     which would influence the performance of his official duties nor
     shall any member solicit, accept, or receive any such gift or
     compensation for advocating the passage or defeat of any
     legislation or for doing any act intended to influence the
     passage or defeat of legislation including, in the case of a
     Senator or Representative, his vote thereon.
        (b)  No member shall receive compensation or any thing of
     economic value for any consultation, the subject matter of
     which:
        (1)  Is devoted substantially to the responsibilities,
     programs, or operations of the General Assembly, or
        (2)  Draws substantially upon official data or ideas which
     have not become part of the body of public information.
        (c)  No member shall participate as a principal in any
     transaction involving the Commonwealth or any Commonwealth
     agency in which he, his spouse or child, or any person of which
     he is an officer, director, trustee, partner or employe has a
     substantial personal economic interest as distinguished from
     that of a general class or general group of persons of which he
     may reasonably be expected to know.
        (d)  No member shall receive any compensation or enter into
     any agreement with any person for compensation for services
     rendered or to be rendered, for assisting any person in any
     transaction involving the Commonwealth or any of its officials
     or agencies unless he shall file with the Chief Clerk of the
     House of Representatives or Secretary of the Senate, as the case
     may be, a written statement, giving the following information:
        (1)  Name and address of member.
        (2)  The name and address of the person employing or
     retaining the member to perform such services.
        (3)  Whether the amount of compensation for services rendered
     or to be rendered is (i) one thousand dollars ($1000), or more,
     or (ii) less than one thousand dollars ($1000).
        (4)  A brief description of the transaction in reference to
     which service is rendered or is to be rendered, and of the
     nature of the service.
        The sworn statement shall be filed with the chief clerk or
     secretary within ten days from the date such agreement, express
     or implied, was entered into, or the compensation was received.
     Such statement of disclosure shall be deemed confidential and
     privileged and shall only be made public in connection with a
     public hearing for an alleged violation of this code where such
     would be relevant to the charges made and for which the member
     is being tried.
        (e)  Subsections (a), (b), (c) and (d) of this section 5,
     shall not apply to:
        (1)  Receipt of bona fide reimbursement, to the extent
     permitted by law, for actual expenses for travel and such other
     necessary subsistence as is compatible with this act and for
     which no Commonwealth payment or reimbursement is made.
        (2)  Participation in the affairs of charitable, religious,
     nonprofit educational, public service or civic organizations, or
     the activities of national or State political parties not
     proscribed by law.
        (3)  Awards for meritorious public contribution given by
     public service or civic organizations.
        (4)  Sharing in any compensation received from the
     Commonwealth or from any political subdivision of the
     Commonwealth by a person of which such member owns or controls
     any portion thereof, provided such compensation was received by
     such person as a result of having made the lowest competitive
     bid on a Commonwealth contract or subcontract and having had
     such bid accepted by the Commonwealth or the general contractor,
     or by reason of an engagement by the Commonwealth in emergency
     circumstances where dispensation with bidding is permitted by
     law, and provided such member did not assist in the procurement
     of the Commonwealth's or the subdivision's or the general
     contractor's acceptance of such low bid or engagement without
     bidding.
        (5)  Campaign contributions for use in meeting campaign
     expenses by any official who is or becomes a candidate for
     election to the same or another public office.
        (6)  Receipt of compensation from the Commonwealth, directly
     or indirectly, where: (i) the total interest of the member and
     his immediate family in the person receiving said compensation
     is less than ten percent, or (ii) the member or the person in
     which he has an interest is the exclusive supplier of the real
     or personal property or service purchased by the Commonwealth,
     or (iii) the service purchased is newspaper advertising required
     by law.
        (7)  Receipt of compensation, directly or indirectly, by a
     member who is an attorney-at-law, for services in a proceeding
     where he represents an interest adverse to that of the
     Commonwealth, where the proceeding is before any court, where
     the Commonwealth has a right to judicial review in a proceeding
     not initially before a court, or where the proceeding involves
     only the uncontested and routine action of administrative
     officers or employes of the Commonwealth in issuing or renewing
     a license, charter, certificate or similar document.
        (f)  No member shall use for private gain any information not
     available to the public at large and acquired by him solely by
     virtue of his position.
        (g)  No information described in subsection (f) of this
     section 5 shall be disclosed by a member to others for purposes
     of their use for private gain, in circumstances where the use of
     such information by the member would violate subsection (f) of
     this section 5.
        Section 6.  Penalties.--(a) Any person violating section 5 of
     this act shall be guilty of a misdemeanor, and upon conviction
     thereof be sentenced to pay a fine of not more than one thousand
     dollars ($1000) and costs and, in default of the payment of such
     fine and costs, shall undergo imprisonment for not more than two
     years.
        (b)  All fines and penalties imposed under the provisions of
     this section shall be paid into the General Fund of the
     Commonwealth.
        Section 7.  Civil Remedies.--(a) Any agency head having final
     authority to approve or execute a contract between the
     Commonwealth and a private party may cancel or rescind any such
     contract without further liability to the Commonwealth where he
     finds that a violation of this act has influenced the making of
     said contract; provided, such rescission shall be limited so as
     not to affect adversely the interests of innocent third parties;
     and provided further, that no such action shall be initiated
     before the affirmative finding of the appropriate House or
     Senate Committee on Ethics that a violation has occurred.
        (b)  The finding referred to in subsection (a) supra shall be
     made in accordance with the act of June 4, 1945 (P.L.1388), as
     amended, known as the "Administrative Agency Law," and shall be
     subject to judicial review, provided that the executive officer
     may suspend the contract pending determination of the merits of
     the controversy.
        (c)  The Attorney General may bring a civil action against
     any member or former member in the judicial district in which
     said person is domiciled, who shall, to his economic advantage,
     have acted in violation of this act, to recover on behalf of the
     Commonwealth an amount equal to such economic advantage, with
     interest; provided, that no such action shall be brought before
     the affirmative finding of the appropriate House or Senate
     Committee on Ethics that a violation has occurred.
        (d)  No action under subsection (c) of this section 7 shall
     be commenced after the expiration of two years following the
     discovery by an agency head or an Ethics Committee of the
     General Assembly of the occurrence of the alleged violation, or
     four years after the occurrence of the alleged violation,
     whichever period is shorter.
        (e)  The Senator or Representative having responsibility for
     hiring an employe of the General Assembly may, and if so ordered
     by the Ethics Committee of his respective house, shall, dismiss,
     suspend or take such other action as may be appropriate under
     the circumstances with respect to any employe upon a finding by
     the Senator or Representative or by said committee that such
     employe has violated any of the provisions of this act.
        Section 8.  Severability Clause.--The provisions of this act
     are severable and if any provision or part thereof shall be held
     invalid or unconstitutional or inapplicable to any person or
     circumstances, such invalidity, unconstitutionality or
     inapplicability shall not affect or impair the remaining
     provisions of the act.