act-2006-0-134•Pennsylvania Act 2006-134 — PUBLIC OFFICERS (65 PA.C.S.) - LOBBYING DISCLOSURE
Pennsylvania Act 2006-134 — PUBLIC OFFICERS (65 PA.C.S.) - LOBBYING DISCLOSURE
act-2006-0-1342006 Pa. Act 134Law
Act text
PUBLIC OFFICERS (65 PA.C.S.) - LOBBYING DISCLOSURE
Act of Nov. 1, 2006, P.L. 1213, No. 134 Cl. 65
Session of 2006
No. 2006-134
HB 700
AN ACT
Amending Title 65 (Public Officers) of the Pennsylvania
Consolidated Statutes, further providing for ethical
standards definitions and for lobby regulation and
disclosure.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1102 of Title 65 of the Pennsylvania
Consolidated Statutes is amended by adding definitions to read:
§ 1102. Definitions.
The following words and phrases when used in this chapter
shall have, unless the context clearly indicates otherwise, the
meanings given to them in this section:
* * *
"Gift." [Anything which is received without consideration of
equal or greater value. The term shall not include a political
contribution otherwise reported as required by law or a
commercially reasonable loan made in the ordinary course of
business.] As defined in section 13A03 (relating to
definitions).
* * *
"Hospitality." As defined in section 13A03 (relating to
definitions).
* * *
Section 1.1. Section 1105(b)(7) of Title 65 is amended to
read:
§ 1105. Statement of financial interests.
* * *
(b) Required information.--The statement shall include the
following information for the prior calendar year with regard to
the person required to file the statement:
* * *
(7) The name and address of the source and the amount of
any payment for or reimbursement of actual expenses for
transportation and lodging or hospitality received in
connection with public office or employment where such actual
expenses for transportation and lodging or hospitality exceed
$650 in [the course of a single occurrence] an aggregate
amount per year. This paragraph shall not apply to expenses
reimbursed by a governmental body or to expenses reimbursed
by an organization or association of public officials or
employees of political subdivisions which the public official
or employee serves in an official capacity.
* * *
Section 2. Chapter 13 heading and sections 1301, 1302, 1303,
1304, 1305, 1306, 1307, 1308, 1309, 1310 and 1311 of Title 65
are amended to read:
[CHAPTER 13
LOBBY REGULATION AND DISCLOSURE
§ 1301. Short title of chapter.
This chapter shall be known and may be cited as the Lobbying
Disclosure Act.
§ 1302. Statement of intent and jurisdiction.
(a) Intent.--The Constitution of Pennsylvania recognizes the
principle that all free government is founded upon the authority
of the people. It further provides that the power to make law in
this Commonwealth is vested in the General Assembly and the
power to enforce law is vested in the Executive Department. The
ability of the people to exercise their fundamental authority
and to have confidence in the integrity of the process by which
laws are made and enforced in this Commonwealth demands that the
identity and the scope of activity of those employed to
influence the actions of the General Assembly and the Executive
Department be publicly and regularly disclosed.
(b) Jurisdiction.--The authority to regulate persons
employed to influence the actions of the General Assembly and
the Executive Department lies within the jurisdiction of those
branches of government. To insure that the intent of this
chapter is not evaded and that all such persons are regulated in
a fair and equitable manner, lobbyists and the practice of
lobbying shall be subject to this chapter, which shall prevail
over any other regulation of professional activity when that
activity constitutes lobbying. This chapter is not intended to
govern professional activities which do not include lobbying and
which are properly the subject of regulation by the judicial
branch of government or by any government agency. Membership in
a regulated profession shall not excuse a lobbyist from
compliance with the provisions of this chapter.
§ 1303. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Administrative action." Any of the following:
(1) An agency's:
(i) proposal, consideration, promulgation or
rescission of a regulation;
(ii) development or modification of a guideline or a
statement of policy; or
(iii) approval or rejection of a regulation.
(2) The review, revision, approval or disapproval of a
regulation under the act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(3) The Governor's approval or veto of legislation.
(4) The nomination or appointment of an individual as an
officer or employee of the Commonwealth.
(5) The proposal, consideration, promulgation or
rescission of an executive order.
"Affiliated political action committee." A political action
committee as defined in section 1621(l) of the act of June 3,
1937 (P.L.1333, No.320), known as the Pennsylvania Election
Code, which has a chairman, a treasurer or another officer who
is a principal, an employee of a principal, a lobbyist or an
employee of a lobbyist, provided if an employee of a registrant
serves as the officer of a political action committee in what is
clearly a personal capacity and the goals and mission of that
political action committee clearly have no relationship to the
goals and mission of the registrant, such political action
committee shall not be considered an affiliated political action
committee for the purposes of this definition.
"Agency." A State agency, board, commission, authority or
department.
"Commission." The State Ethics Commission.
"Compensation." Anything of value, including benefits,
received or to be received from a principal by one acting as a
lobbyist.
"Direct communication." An effort, whether written, oral or
by any other medium, made by a lobbyist or principal, directed
to a State official or employee, the purpose or foreseeable
effect of which is to influence legislative action or
administrative action.
"Economic consideration." Anything of value offered or
received.
"Fund." The Lobbying Disclosure Fund established in section
1310(b) (relating to filing fees; fund established;
regulations).
"Gift." As defined in section 1102 (relating to
definitions).
"Immediate family." An individual's spouse, an individual's
child and an individual's parent, brother, sister or like
relative-in-law.
"Indirect communication." An effort, whether written, oral
or by any other medium, to encourage others, including the
general public, to take action, the purpose or foreseeable
effect of which is to directly influence legislative action or
administrative action. The term includes letter-writing
campaigns, mailings, telephone banks, print and electronic media
advertising, billboards, publications and educational campaigns
on public issues. The term does not include regularly published
periodic newsletters primarily designed for and distributed to
members of a bona fide association or charitable or fraternal
nonprofit corporation.
"Legislation." Bills, resolutions, amendments and
nominations pending or proposed in either the Senate or the
House of Representatives. The term includes any other matter
which may become the subject of action by either chamber of the
General Assembly.
"Legislative action." An action taken by a State official or
employee involving the preparation, research, drafting,
introduction, consideration, modification, amendment, approval,
passage, enactment, tabling, postponement, defeat or rejection
of legislation; legislative motions; overriding or sustaining a
veto by the Governor; or confirmation of appointments by the
Governor or of appointments to public boards or commissions by a
member of the General Assembly.
"Lobbying." An effort to influence legislative action or
administrative action. The term includes:
(1) providing any gift, entertainment, meal,
transportation or lodging to a State official or employee for
the purpose of advancing the interest of the lobbyist or
principal; and
(2) direct or indirect communication.
"Lobbyist." Any individual, firm, association, corporation,
partnership, business trust or business entity that engages in
lobbying on behalf of a principal for economic consideration.
The term includes an attorney who engages in lobbying.
"Principal." Any individual, firm, association, corporation,
partnership, business trust or business entity:
(1) on whose behalf a lobbyist influences or attempts to
influence an administrative action or a legislative action;
or
(2) that engages in lobbying on the principal's own
behalf.
"Registrant." A registered lobbyist or a registered
principal.
"Regulation." Any rule, regulation or order in the nature of
a rule or regulation, including formal and informal opinions of
the Attorney General, of general application and future effect,
promulgated by an agency under statutory authority in the
administration of a statute administered by or relating to the
agency, or prescribing the practice or procedure before the
agency.
"State official or employee." An individual elected or
appointed to a position in State government or employed by State
government, whether compensated or uncompensated, who is
involved in legislative action or administrative action.
§ 1304. Registration.
(a) General rule.--Unless excluded under section 1306
(relating to exemption from registration and reporting), a
lobbyist or a principal must register with the commission within
ten days of acting in any capacity as a lobbyist or principal.
Registration shall be biennial and be coincident with the terms
of the members of the House of Representatives.
(b) Principals.--
(1) A principal required to register shall file the
following information with the commission:
(i) Name.
(ii) Permanent address.
(iii) Daytime telephone number.
(iv) Name and nature of business.
(v) Name, registration number and acronyms of
affiliated political action committees.
(vi) Name and permanent business address of each
individual who will for economic consideration engage in
lobbying on the principal's behalf.
(2) If an organization or association is a principal,
the number of dues-paying members in the past calendar year
shall also be disclosed.
(c) Lobbyist.--
(1) A lobbyist who is required to register shall file
the following information with the commission:
(i) Name.
(ii) Permanent business address.
(iii) Daytime telephone number.
(iv) A recent picture of the lobbyist.
(v) Name, permanent business address and daytime
telephone number of the principal the lobbyist
represents.
(vi) Name, registration number and acronyms of
affiliated political action committees.
(2) Each lobbyist shall file a separate registration
statement for each principal he or she represents.
(d) Amendments.--
(1) When there is a change of information required for
the registration statement under subsection (b)(1) or (c), an
amended statement shall be filed with the commission within
14 days after the change occurs.
(2) When there is a change in information required for
the registration statement under subsection (b)(2), an
amended statement shall be filed with the commission within
14 days of the end of the year in which the change occurs.
(e) Termination.--A lobbyist or a principal may terminate
registration by filing notice with the commission. Within 30
days of filing the notice, the lobbyist or principal shall file
a termination report, which shall include all information
required by section 1305 (relating to reporting) through the
final day of lobbying activity. After a reasonable review of the
termination report but not later than 90 days after receipt of
the notice, the commission shall issue to the lobbyist or
principal a letter stating that the registrant has terminated
registration. The filing of notice or a termination report shall
not affect the commission's authority to conduct investigations
and hearings pursuant to section 1308(h) (relating to
administration and enforcement). No lobbying may occur after the
filing of notice unless the lobbying is pursuant to a separate
registration statement which is filed with the commission and
which, at the time of the lobbying, has not been terminated.
§ 1305. Reporting.
(a) General rule.--A lobbyist as required by subsection
(b)(6) or a registered principal shall, under oath or
affirmation, file quarterly expense reports with the commission.
(b) Content.--
(1) Reports must list the names of all lobbyists by whom
the lobbying is conducted and the general subject matter or
issue being lobbied.
(2) Expense reports must contain the following
categories:
(i) A single aggregate good faith estimate of the
total amount spent for personnel and office expenses
related to lobbying. This subparagraph includes salaries
and other forms of compensation, benefits, vehicle
allowances, bonuses and reimbursable expenses for those
involved in lobbying. If compensation is to be reported
by or for an individual or entity whose lobbying is
incidental to regular employment, it shall be sufficient
to report a good faith prorated estimate based on the
value of the time devoted to lobbying. Reportable
personnel costs include costs for lobbying staff,
research and monitoring staff, consultants, lawyers,
lobbyists, publications and public relations staff,
technical staff and clerical and administrative support
staff who engage in lobbying but are exempt from
reporting under section 1306(6) (relating to exemption
from registration and reporting). This subparagraph
includes costs for offices, equipment and supplies
utilized for lobbying.
(ii) A single aggregate good faith estimate of the
total amount spent for direct communication.
(iii) The total costs for gifts, entertainment,
meals, transportation, lodging and receptions given to or
provided to State officials or employees or their
immediate families.
(iv) A single aggregate good faith estimate of the
total amount spent for indirect communication.
(3) In addition to reporting the totals required under
this subsection, the expense report must identify, by name,
position and each occurrence, a State official or employee
who receives from a principal or lobbyist anything of value
which must be included in the statement under section
1105(b)(6) or (7) (relating to statement of financial
interests) as implemented by section 1105(d).
(i) For purposes of this chapter, the amount
referred to in section 1105(b)(7) shall be considered an
aggregate amount per year.
(ii) Written notice must be given to each public
official or employee of inclusion in the expense report
within seven days of the report's submission to the
commission. Notice under this subparagraph shall include
the information which will enable the public official or
employee to comply with section 1105(b)(6) and (7). For
purposes of this chapter and Chapter 11 (relating to
ethics standards and financial disclosure), section
1105(b)(6) and (7) shall constitute mutually exclusive
categories.
(iii) Regulations shall be promulgated under section
1310(c) (relating to filing fees; fund established;
regulations) to define mutually exclusive categories
under section 1105(b)(6) and (7) and to determine whether
a thing of value is subject to disclosure under section
1105(b)(6) or (7).
(4) A lobbyist must sign the reports submitted by each
principal represented to attest to the validity and accuracy
to the best of the lobbyist's knowledge. A lobbyist may
attach a statement to the report of any principal, describing
the limits of the lobbyist's knowledge concerning the
expenditures contained in the report.
(5) The expense report shall also include the name,
permanent business address and daytime telephone number of
any individual, firm, association, corporation, partnership,
business trust or business entity which contributed more than
10% of the total resources received by the principal during
the reporting period.
(6) A lobbyist shall submit a separate report if, during
the reporting period, the lobbyist engaged in lobbying which
was not contained in the reports filed by the principal or
principals represented by the lobbyist. A separate lobbyist
report shall contain the identity of the principal for whom
such lobbying was performed and shall contain all information
required under paragraphs (2) and (3).
(7) A registered principal or registered lobbyist that
attempts to influence an agency's preparing, bidding,
entering into or approving a contract shall ensure that the
related expenses are included under paragraph (2).
(c) Records retention.--A registrant shall retain all
documents reasonably necessary to substantiate the reports to be
made under this section for four years from the date of filing
the subject report. Upon request by the Office of the Attorney
General or the commission, these materials shall be made
available for inspection within a reasonable period of time.
(d) Thresholds for reporting.--An expense report shall be
filed when total expenses for lobbying exceed $500 for a
registered principal or a registered lobbyist in a reporting
period. In a reporting period in which total expenses are $500
or less, a statement to that effect shall be filed.
(e) Voluntary disclosure.--Nothing in this section shall
prevent a principal or lobbyist from disclosing expenses in
greater detail than required.
§ 1306. Exemption from registration and reporting.
The following individuals and activities shall be exempt from
registration under section 1304 (relating to registration) and
reporting under section 1305 (relating to reporting):
(1) An individual who limits lobbying activities to
preparing testimony and testifying before a committee of the
legislature or participating in an administrative proceeding
of an agency.
(2) An individual who is an employee of an entity
engaged in the business of publishing, broadcasting or
televising while engaged in the gathering and dissemination
of news and comment thereon to the general public in the
ordinary course of business.
(3) Any of the following:
(i) An individual who does not receive compensation,
other than traveling expenses, for lobbying.
(ii) An individual whose compensation for lobbying,
from all principals represented, does not exceed $2,500
in the aggregate during any reporting period.
(iii) An individual who engages in lobbying on
behalf of the individual's employer and where lobbying
activity represents less than the equivalent of $2,500 of
the employee's time during any reporting period, based on
an hourly proration of the employee's compensation.
(iv) A principal whose total expenses for lobbying
purposes do not exceed $2,500 during any reporting
period.
(4) Any of the following:
(i) An elected State officer acting in an official
capacity.
(ii) A State executive officer appointed by the
Governor acting in an official capacity.
(iii) An elected or appointed official or employee
of a political subdivision acting in an official
capacity.
(iv) An employee of the Commonwealth or independent
agency of the Commonwealth acting in an official
capacity.
(5) An individual representing a bona fide church of
which the individual is a member and the purpose of the
lobbying is solely for the purpose of protecting the
constitutional right to the free exercise of religion.
(6) An employee, who is not a registered lobbyist, of a
corporation which:
(i) is registered as a principal under section 1304;
(ii) has one or more registered lobbyists; and
(iii) includes in its reports under section 1305 all
of the employee's expenses related to lobbying.
§ 1307. Prohibited activities.
(a) Contingent compensation.--
(1) No one may compensate or incur an obligation to
compensate any lobbyist, principal or individual to engage in
lobbying for compensation contingent in whole or in part upon
any of the following:
(i) Passage or defeat, or approval or veto, of
legislation.
(ii) Occurrence or nonoccurrence of an
administrative action.
(2) No lobbyist, principal or individual may engage or
agree to engage in lobbying for compensation contingent in
whole or in part upon any of the following:
(i) Passage or defeat, or approval or veto, of
legislation.
(ii) Occurrence or nonoccurrence of an
administrative action.
(b) Political committees.--A lobbyist may not serve as a
treasurer or another officer for a candidate's political
committee or a candidate's political action committee.
(c) Fee restrictions.--A lobbyist may not charge a fee or
receive compensation or economic consideration based upon an
understanding, either written or oral, that any part of the fee,
compensation or economic consideration will be converted into a
contribution to a candidate for public office or a political
committee.
(d) Falsification.--No lobbyist or principal may, for the
purpose of influencing legislative action or administrative
action, transmit, utter or publish to any State official or
employee any communication, knowing that such communication or
any signature on the communication is false, forged, counterfeit
or fictitious.
§ 1308. Administration and enforcement.
(a) Criminal enforcement.--If the commission believes an
intentional violation of this chapter has been committed, it
shall refer all relevant documents and other information to the
Office of Attorney General.
(b) Attorney General.--In addition to the authority
conferred upon the Attorney General under the act of October 15,
1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act,
the Attorney General has the authority to investigate and
prosecute a violation of this chapter.
(c) Advice and opinions.--The commission shall provide
advice and opinions in accordance with procedures set forth in
section 1107 (relating to powers and duties of commission) to a
lobbyist, principal or State official or employee who has a
question regarding compliance with this chapter. A principal, a
lobbyist or an individual who acts in good faith based on the
written advice or opinion of the commission shall not be held
liable for a violation of this chapter.
(d) Public inspection and copying.--The commission shall
make completed registration statements, expense reports,
termination notices and termination reports which have been
filed with the commission available for public inspection and
provide copies of these documents at a price which shall not
exceed the actual cost of copying. Documents that are maintained
and reproducible in an electronic format shall be provided in
that format upon request.
(e) Annual reporting.--The commission shall prepare and
publish an annual report on lobbying activities in this
Commonwealth. The commission shall also annually publish a
listing of principals, identifying affiliated political action
committees and lobbyists, and a listing of lobbyists,
identifying affiliated political action committees and
principals.
(f) Retention of records.--Completed registration
statements, expense reports, termination notices and termination
reports shall remain on file with the commission for a four-year
period.
(g) Audits.--The commission shall initiate, by lottery,
random annual audits of the registration statements and
disclosure reports in sufficient number to ensure compliance
with this chapter. The audit report and findings shall be
confidential; however, the commission shall include the relevant
portion of an audit as part of its findings of fact in a
commission order which results from an investigation arising out
of an audit.
(h) Investigation and hearings.--The commission, through its
executive director, may initiate an investigation and hold a
hearing concerning negligent conduct by a lobbyist or principal
in accordance with sections 1107 and 1108 (relating to
investigations by commission).
(i) Directory.--On or before May 1 of each odd-numbered
year, the commission shall produce and distribute a directory of
all registered lobbyists, including photographs. Copies of this
directory shall be made available to the public at a price not
to exceed the actual cost of production. All revenue received by
the commission from the sales of this directory shall be
deposited into the fund.
(j) Computer file.--The Legislative Data Processing
Committee shall maintain updated registration statements,
expense reports, termination notices and termination reports.
(k) Cost-of-living adjustment.--On a biennial basis
commencing in January 2002, the commission shall review the
threshold for reporting under section 1305(d) (relating to
reporting) and the threshold for exemption under section
1306(3)(ii) through (iv) (relating to exemption from
registration and reporting) and may increase these amounts to
rates deemed reasonable for assuring appropriate disclosure. The
commission shall publish any such adjusted threshold amounts in
the Pennsylvania Bulletin by June 1, 2002, and every two years
thereafter as necessary.
§ 1309. Penalties.
(a) Notice of noncompliance.--The commission shall issue a
notice of noncompliance to any lobbyist, principal or individual
that has failed to register or report as required by this
chapter. The notice shall state the nature of the alleged
noncompliance and the civil and criminal penalties for failure
to register, failure to file or filing a report containing a
false statement. The notice shall also advise of the right to a
hearing before the commission and the time and manner in which
to request a hearing.
(b) Hearing.--If a hearing is requested, the commission
shall determine at the hearing whether the recipient of the
notice is required to register or report under this chapter,
whether the failure to register or report was negligent and, if
the failure was negligent, the amount of the civil penalty to be
imposed. If the commission finds that the failure to register or
report was intentional, it shall refer the matter to the
Attorney General for investigation and prosecution. Hearings
under this subsection shall be conducted by the commission in
accordance with sections 1107(14) (relating to powers and duties
of commission) and 1108(e) (relating to investigations by
commission).
(c) Negligent failure to register or report.--Negligent
failure to register or report as required by this chapter is
punishable by a civil penalty not exceeding $50 for each late
day. After a hearing under subsection (b), in the case of
negligent failure to register or report, the commission may,
upon the majority vote of its members, levy a civil penalty as
provided for in this subsection. The total amount of the civil
penalty levied shall not be limited by any other provision of
law. The commission shall have standing to apply to Commonwealth
Court to seek enforcement of an order imposing a civil penalty
under this section.
(d) Failure to comply after notice.--After notice of
noncompliance and after a hearing, if one is requested, a
lobbyist or principal who fails to comply with the requirements
of this chapter may be prohibited from lobbying for up to five
years. The prohibition shall be imposed as provided by
subsection (e)(4).
(e) Intentional violations.--
(1) Any lobbyist, principal or individual that
intentionally fails to register or report as required by this
chapter commits a misdemeanor of the second degree.
(2) A registrant that files a report under this chapter
with knowledge that the report contains a false statement
commits a misdemeanor of the second degree.
(3) Except as set forth in paragraph (1) or (2), any
lobbyist, principal or individual that intentionally violates
this chapter commits a misdemeanor of the third degree.
(4) In addition to the criminal penalties imposed by
this subsection, the commission may prohibit a lobbyist or
principal from lobbying for up to five years for doing an act
which constitutes an offense under this subsection. No
criminal prosecution or conviction shall be required for the
imposition of the prohibition authorized by this paragraph.
The prohibition under this paragraph shall not be imposed
unless the defendant has been afforded the opportunity for a
hearing, which shall be conducted by the commission in
accordance with sections 1107(14) and 1108(e).
§ 1310. Filing fees; fund established; regulations.
(a) Filing fees.--A principal or lobbyist required to be
registered under this chapter shall pay a biennial filing fee of
$100 to the commission.
(b) Fund established.--All money received from filing fees
under subsection (a) shall be deposited in a restricted receipts
account to be known as the Lobbying Disclosure Fund. The money
deposited in the fund is hereby appropriated to the commission
as a continuing appropriation for the exclusive purpose of
carrying out the provisions of this chapter.
(c) Regulations.--A committee comprised of the Secretary of
the Senate, the Chief Clerk of the House of Representatives, the
chairman of the State Ethics Commission, the Attorney General,
the Secretary of the Commonwealth, the Auditor General and the
General Counsel, or their designees, shall have continuing
authority to promulgate regulations necessary to carry out this
chapter. The chairman of the commission shall be designated as
the chairman of the committee. The initial proposed regulations
shall be submitted within 180 days of the effective date of this
section to the Independent Regulatory Review Commission under
section 5 of the act of June 25, 1982 (P.L.633, No.181), known
as the Regulatory Review Act. Any meeting at which the committee
plans to approve proposed regulations shall be held in
accordance with Chapter 7 (relating to open meetings). The
committee shall also prepare and publish a manual setting forth
guidelines for accounting and reporting. The regulations and
manual shall be drafted to accommodate the use of computerized
recordkeeping, electronic filing of the reports provided for
under this chapter and retention of registration statements and
reports provided for under this chapter by electronic means. The
Department of State shall provide sufficient staff and other
administrative support to assist the committee.
§ 1311. Severability.
(a) General rule.--Except as provided in subsection (b):
(1) The provisions of this chapter are severable.
(2) If any provision of this chapter or its application
to any person or circumstance is held invalid, the invalidity
shall not affect other provisions or applications of this
chapter which can be given effect without the invalid
provision or application.
(b) Practice of law.--If any provision of this chapter or
its application to any person or circumstance is held invalid on
the basis of improper regulation of the practice of law, the
remaining provisions or applications of this chapter are void.]
Section 3. Title 65 is amended by adding a chapter to read:
CHAPTER 13A
LOBBYING DISCLOSURE
Sec.
13A01. Scope of chapter.
13A02. Statement of intent and jurisdiction.
13A03. Definitions.
13A04. Registration.
13A05. Reporting.
13A06. Exemption from registration and reporting.
13A07. Prohibited activities.
13A08. Administration.
13A09. Penalties.
13A10. Registration fees; fund established; system;
regulations.
13A11. Nonapplicability.
§ 13A01. Scope of chapter.
This chapter relates to lobbying disclosure.
§ 13A02. Statement of intent and jurisdiction.
(a) Intent.--The Constitution of Pennsylvania recognizes
that all free governments are founded upon the authority of the
people. It further provides that the power to make law in this
Commonwealth is vested in the General Assembly, and the power to
enforce law is vested in the Executive Department. The
Constitution also guarantees the people the right to petition
those invested with the powers of government for redress of
grievances. The ability of the people to exercise their
fundamental authority and to have confidence in the integrity of
the processes by which laws are made and enforced in this
Commonwealth demands that the identity and scope of activity of
those who are paid to influence the actions of the General
Assembly and the Executive Department be publicly and regularly
disclosed.
(b) Jurisdiction.--The authority to regulate persons
employed to influence the actions of the General Assembly and
the Executive Department lies within the jurisdiction of those
branches of government. To ensure that the intent of this
chapter is not evaded and that all such persons are regulated in
a fair and equitable manner, lobbyists and the practice of
lobbying shall be subject to this chapter, which shall prevail
over any other regulation of professional activity when that
activity constitutes lobbying. This chapter is not intended to
govern professional activities which do not include lobbying and
are properly the subject of regulation by the judicial branch of
government or by any government agency.
(c) Regulated profession.--Membership in a regulated
profession shall not excuse a lobbyist from compliance with this
chapter.
(d) Administrative agency law.--Proceedings of the
commission are subject to 2 Pa.C.S. Chs. 5 Subch. A (relating to
practice and procedure of Commonwealth agencies) and 7 Subch. A
(relating to judicial review of Commonwealth agency action).
§ 13A03. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Administrative action." Any of the following:
(1) An agency's:
(i) proposal, consideration, promulgation or
rescission of a regulation;
(ii) development or modification of a statement of
policy;
(iii) approval or rejection of a regulation; or
(iv) procurement of supplies, services and
construction under 62 Pa.C.S. (relating to procurement).
(2) The review, revision, approval or disapproval of a
regulation under the act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(3) The Governor's approval or veto of legislation.
(4) The nomination or appointment of an individual as an
officer or employee of the Commonwealth.
(5) The proposal, consideration, promulgation or
rescission of an executive order.
"Affiliated political action committee." As follows:
(1) Except as set forth in paragraph (2), a "political
action committee" as defined in section 1621(l) of the act of
June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
Election Code, which has an officer who:
(i) must be included in a registration statement
under section 1624(b)(2) and (3) of the Pennsylvania
Election Code; and
(ii) is:
(A) a principal;
(B) an officer or an employee of a principal;
(C) a lobbyist; or
(D) an employee of a lobbyist.
(2) If an employee of a registrant serves as the officer
of a political action committee in what is clearly a personal
capacity and the goals and mission of that political action
committee clearly have no relationship to the goals and
mission of the registrant, that political action committee
shall not be considered an affiliated political action
committee for the purposes of this definition.
"Agency." An agency, board, commission, authority or
department of the executive department of the Commonwealth.
"Attorney at law." An individual admitted to practice law by
a court of record of this Commonwealth.
"Bidder." As defined in 62 Pa.C.S. § 103 (relating to
definitions).
"Board." The Disciplinary Board of the Supreme Court of
Pennsylvania.
"Commission." The State Ethics Commission.
"Compensation." Anything of value, including benefits,
received or to be received from a principal by one acting as a
lobbyist.
"Contractor." As defined in 62 Pa.C.S. § 103 (relating to
definitions).
"Department." The Department of State of the Commonwealth.
"Direct communication." An effort, whether written, oral or
by any other medium, made by a lobbyist or principal, directed
to a State official or employee, the purpose or foreseeable
effect of which is to influence legislative action or
administrative action. The term may include personnel expenses
and office expenses.
"Economic consideration." Anything of value offered or
received. The term includes compensation and reimbursement for
expenses.
"Fund." The Lobbying Disclosure Fund established in section
13A10 (b) (relating to registration fees; fund established;
system; regulations).
"Gift." Anything which is received without consideration of
equal or greater value. The term shall not include a political
contribution otherwise reportable as required by law or a
commercially reasonable loan made in the ordinary course of
business. The term shall not include hospitality, transportation
or lodging.
"Hospitality." Includes all of the following:
(1) Meals.
(2) Beverages.
(3) Recreation and entertainment.
The term shall not include gifts, transportation or lodging.
"Immediate family." An individual's spouse, child, parent,
brother, sister and like relative-in-law.
"Indirect communication." An effort, whether written, oral
or by any other medium, to encourage others, including the
general public, to take action, the purpose or foreseeable
effect of which is to directly influence legislative action or
administrative action.
(1) The term includes letter-writing campaigns,
mailings, telephone banks, print and electronic media
advertising, billboards, publications and educational
campaigns on public issues.
(2) The term does not include regularly published
periodic newsletters primarily designed for and distributed
to members of a bona fide association or charitable or
fraternal nonprofit corporation.
(3) The term may include personnel expenses and office
expenses.
"Legislation." Bills, resolutions, amendments and
nominations pending or proposed in either the Senate or the
House of Representatives. The term includes any other matter
which may become the subject of action by either chamber of the
General Assembly.
"Legislative action." An action taken by a State official or
employee involving the preparation, research, drafting,
introduction, consideration, modification, amendment, approval,
passage, enactment, tabling, postponement, defeat or rejection
of:
(1) legislation;
(2) legislative motions;
(3) a veto by the Governor; or
(4) confirmation of appointments by the Governor or
appointments to public boards or commissions by a member of
the General Assembly.
"Lobbying." An effort to influence legislative action or
administrative action in this Commonwealth. The term includes:
(1) direct or indirect communication;
(2) office expenses; and
(3) providing any gift, hospitality, transportation or
lodging to a State official or employee for the purpose of
advancing the interest of the lobbyist or principal.
"Lobbying firm." An entity that engages in lobbying for
economic consideration on behalf of a principal other than the
entity itself.
"Lobbyist." Any individual, association, corporation,
partnership, business trust or other entity that engages in
lobbying on behalf of a principal for economic consideration.
The term includes an attorney at law while engaged in lobbying.
"Offeror." As defined in 62 Pa.C.S. § 103 (relating to
definitions).
"Office expense." An expenditure for an office, equipment or
supplies, utilized for lobbying.
"Personnel expense." An expenditure for salaries or other
forms of compensation, benefits, vehicle allowances, bonuses and
reimbursable expenses paid to lobbyists, lobbying staff,
research and monitoring staff, consultants, publications and
public relations staff, technical staff, clerical and
administrative support staff and includes individuals who engage
in lobbying but are exempt from reporting under section 13A06
(relating to exemption from registration and reporting). For an
individual for whom lobbying is incidental to regular
employment, the term means a good faith prorated estimate based
on the value of the time devoted to lobbying.
"Principal." An individual, association, corporation,
partnership, business trust or other entity:
(1) on whose behalf a lobbying firm or lobbyist engages
in lobbying; or
(2) that engages in lobbying on the principal's own
behalf.
"Registrant." A registered lobbyist, registered lobbying
firm or registered principal.
"Regulation." Any rule, regulation or order in the nature of
a rule or regulation, including formal and informal opinions of
the Attorney General, of general application and future effect,
promulgated by an agency under statutory authority in the
administration of a statute administered by or relating to the
agency or prescribing the practice or procedure before the
agency.
"Reporting period." Any of the following periods:
(1) January 1 through March 31.
(2) April 1 through June 30.
(3) July 1 through September 30.
(4) October 1 through December 31.
"State budget process." The consideration and passage of
acts relating to expenditures of funds and the generation of
revenues by the General Assembly.
"Statement of policy." The term includes a guideline.
"State official or employee." An individual elected or
appointed to a position in State government or employed by State
government, whether compensated or uncompensated, who is
involved in legislative action or administrative action.
"Vendor." Any offeror, bidder or contractor that, for
economic consideration, sells or provides a service or supply or
engages in construction. The term does not include an attorney
at law, a lobbyist or a lobbying firm.
§ 13A04. Registration.
(a) General rule.--Unless excluded under section 13A06
(relating to exemption from registration and reporting), a
lobbyist, lobbying firm or a principal must register with the
department within ten days of acting in any capacity as a
lobbyist, lobbying firm or principal. Registration shall be
biennial and shall begin January 1, 2007.
(b) Principals and lobbying firms.--
(1) A principal or lobbying firm required to register
under subsection (a) shall file a single registration
statement setting forth the following information with the
department:
(i) Name.
(ii) Permanent address.
(iii) Daytime telephone number.
(iv) E-mail address, if available.
(v) Name and nature of business.
(vi) Name, registration number and acronym of any
affiliated political action committees.
(vii) Name and permanent business address of each
individual who will for economic consideration engage in
lobbying on behalf of the principal or lobbying firm.
(viii) Registration number when available.
(2) A lobbying firm shall include in its statement under
paragraph (1) the following information for each
principal it represents:
(i) Name.
(ii) Permanent business address.
(iii) Telephone number.
(iv) Registration number when available.
(3) A principal that is an association or organization
shall include in its statement under paragraph (1) the number
of dues-paying members of the association or organization in
the most recently completed calendar year.
(c) Lobbyist.--A lobbyist who is required to register under
subsection (a) shall file a single registration statement
setting forth the following information with the department:
(1) Name.
(2) Permanent business address.
(3) Daytime telephone number.
(4) E-mail address, if available.
(5) A recent photograph of the lobbyist.
(6) Name, permanent business address, daytime telephone
number and registration number when available of each
principal for whom the lobbyist will engage in lobbying.
(7) Name and registration number when available of any
lobbying firm with which the lobbyist has a relationship
involving economic consideration.
(8) Name, registration number and acronym of any
affiliated political action committees.
(9) Name, registration number and acronym of any
candidate political committee of which the lobbyist is an
officer who must be included in a registration statement
under section 1624(b)(2) and (3) of the act of June 3, 1937
(P.L.1333, No.320), known as the Pennsylvania Election Code.
(d) Amendments.--
(1) If there is a change of information required for the
registration statement under subsection (b)(1) or (2) or (c),
an amended registration statement shall be filed with the
department within 14 days after the change occurs.
(2) When there is a change in information required for
the registration statement under subsection (b)(3), an
amended registration statement shall be filed with the
department within 14 days of the end of the year in which the
change occurs.
(e) Termination.--
(1) A lobbyist, lobbying firm or principal may terminate
registration by filing notice of termination with the
department.
(2) After a review of the notice of termination, but no
later than 15 days after receipt of the notice, the
department shall issue to the lobbyist, lobbying firm or
principal a letter stating that the registrant has terminated
registration. The filing of notice shall not affect the
commission's authority to conduct investigations and hearings
under section 13A08(g) (relating to administration).
(3) No lobbying may occur after the filing of notice of
termination unless the lobbying is pursuant to a separate
registration statement which is filed with the department and
which, at the time of the lobbying, has not been terminated.
(4) Nothing in this subsection shall be construed to
exempt a lobbyist, lobbying firm or principal from any of the
requirements in section 13A05 (relating to reporting).
§ 13A05. Reporting.
(a) General rule.--A registered principal shall, under oath
or affirmation, file quarterly expense reports with the
department no later than 30 days after the last day of the
quarter.
(b) Content.--
(1) Each expense report must list the names and
registration numbers when available of all lobbyists by whom
lobbying is conducted on behalf of the principal and the
general subject matter or issue being lobbied.
(2) Each expense report shall include the total costs of
all lobbying for the period. The total shall include all
office expenses, personnel expenses, expenditures related to
gifts, hospitality, transportation and lodging to State
officials or employees, and any other lobbying costs. The
total amount reported under this paragraph shall be allocated
in its entirety among the following categories:
(i) The costs for gifts, hospitality, transportation
and lodging given to or provided to State officials or
employees or their immediate families.
(ii) The costs for direct communication.
(iii) The costs for indirect communication.
(iv) Expenses required to be reported under this
subsection shall be allocated to one of the three
categories listed under this section and shall not be
included in more than one category.
(2.1) For purposes of filing an expense report under
this subsection, a registrant may use any reasonable methods
of estimation and allocation.
(3) The following apply:
(i) In addition to reporting the totals required
under this subsection, the expense report must identify,
by name, position and each occurrence, a State official
or employee who receives from a principal or lobbyist
anything of value which must be included in the statement
under section 1105(b)(6) or (7) (relating to statement of
financial interests) as implemented by section 1105(d).
(ii) For purposes of this chapter, the amount
referred to in section 1105(b)(7) shall be considered an
aggregate amount per year.
(iii) For purposes of this chapter, the amount
referred to in section 1105(b)(7) shall not include the
cost of a reception which the State official or employee
attends in connection with public office or employment.
(iv) Written notice must be given to each State
official or employee who is listed in an expense report
under this paragraph at least seven days prior to the
report's submission to the department. Notice under this
subparagraph shall include the information which will
enable the State official or employee to comply with
section 1105(b)(6) and (7). For purposes of this chapter
and Chapter 11 (relating to ethics standards and
financial disclosure), section 1105(b)(6) and (7) shall
constitute mutually exclusive categories. For each
category enumerated in paragraph (2)(i), each notice
shall include both the amount incurred during the quarter
and the cumulative amount incurred from January 1 through
the end of the applicable quarter.
(v) This paragraph shall not apply to anything of
value received from immediate family when the
circumstances make it clear that motivation for the
action was the personal or family relationship.
(4) A lobbying firm or a lobbyist not associated with a
lobbying firm shall sign the reports submitted by each
principal for whom the lobbying firm or lobbyist is
registered to attest to the validity and accuracy to the best
of the attestor's knowledge. A lobbying firm or lobbyist may
attach a statement to the report of a principal, describing
the limits of the knowledge of the lobbying firm or lobbyist
concerning the information contained in the expense report.
(5) The expense report shall also include the name,
permanent business address and daytime telephone number of
any individual, association, corporation, partnership,
business trust or other business entity which contributed
more than 10% of the total resources received by the
principal during the reporting period.
(6) A lobbying firm or a lobbyist not associated with a
lobbying firm shall submit an expense report if during the
reporting period the lobbying firm or lobbyist engaged in
lobbying which was not contained in any expense report filed
by a principal or principals represented.
(7) A registered principal that attempts or that retains
a lobbying firm or lobbyist to attempt to influence an
agency's preparing, bidding, entering into or approving a
contract shall ensure that the related expenses are included
under paragraph (2).
(8) A lobbying firm or a lobbyist not associated with a
lobbying firm shall submit a report if the lobbying firm or
lobbyist engaged in lobbying on behalf of any entity that is
exempt under section 13A06(7), (8), (9) or (10) (relating to
exemption from registration and reporting).
(c) Records retention.--A registrant shall retain all
documents reasonably necessary to substantiate the reports to be
made under this section for four years from the date of filing
the subject report. Upon request by the Office of Attorney
General, the board, the commission or the department, these
materials shall be made available for inspection within a
reasonable period of time.
(d) Thresholds for reporting.--An expense report required
under this section shall be filed when total expenses for
lobbying exceed $2,500 for a registered principal in a reporting
period. In a reporting period in which total expenses are $2,500
or less, a statement to that effect shall be filed.
(e) Indirect communication disclosure.--Whenever any person
makes an expenditure for indirect communication under this
chapter, for the purpose of disseminating or initiating a
communication, such as a mailing, telephone bank, print or
electronic media advertisement, billboard, publication or
education campaign, the communication shall clearly and
conspicuously state the name of the person who made or financed
the expenditure for the communication.
§ 13A06. Exemption from registration and reporting.
The following persons and activities shall be exempt from
registration under section 13A04 (relating to registration) and
reporting under section 13A05 (relating to reporting):
(1) An individual who limits lobbying to preparing
testimony and testifying before a committee of the General
Assembly or participating in an administrative proceeding of
an agency.
(2) An individual who is an employee of an entity
engaged in the business of publishing or broadcasting while
engaged in the gathering and dissemination of news and
comment on the news to the general public in the ordinary
course of business.
(3) An individual who does not receive economic
consideration for lobbying.
(4) An individual whose economic consideration for
lobbying, from all principals represented, does not exceed
$2,500 in the aggregate during any reporting period.
(5) An individual who engages in lobbying on behalf of
the individual's employer if the lobbying represents less
than 20 hours during any reporting period.
(6) Except as required under section 13A05(d), a
principal whose total expenses for lobbying purposes do not
exceed $2,500 during any reporting period.
(7) An elected State official who acts in an official
capacity.
(8) An appointed State official acting in an official
capacity.
(9) An elected or appointed official of a political
subdivision who is acting in an official capacity for the
political subdivision.
(10) An employee of the Commonwealth or an agency of the
Commonwealth who is acting in an official capacity for the
Commonwealth or agency.
(11) An individual representing a bona fide church or
bona fide religious body of which the individual is a member
where the lobbying is solely for the purpose of protecting
the constitutional right to the free exercise of religion.
(12) An individual who is not a registered lobbyist and
who serves on an advisory board, working group or task force
at the request of an agency or the General Assembly.
(13) Participating as a party or as an attorney at law
or representative of a party, case or controversy in any
administrative adjudication pursuant to 2 Pa.C.S. (relating
to administrative law and procedure).
(14) Expenditures and other transactions subject to
reporting under Article XVI of the act of June 3, 1937
(P.L.1333, No.320), known as the Pennsylvania Election Code.
(15) Vendor activities under 62 Pa.C.S. §§ 514 (relating
to small procurements), 516 (relating to emergency
procurements) and efforts directly related to responding to
publicly advertised invitations to bid and requests for
proposals.
§ 13A07. Prohibited activities.
(a) Political committees.--A lobbyist may not serve as a
treasurer or other officer who must be included in a
registration statement under section 1624(b)(2) and (3) of the
act of June 3, 1937 (P.L.1333, No.320), known as the
Pennsylvania Election Code, for a candidate's political
committee or a candidate's political action committee if the
candidate is seeking a Statewide office or the office of Senator
or Representative in the General Assembly.
(b) Fee restrictions.--A lobbyist may not charge a fee or
receive economic consideration based on a contract, either
written or oral, that any part of the fee or economic
consideration will be converted into a contribution to a
candidate for public office or a political committee subject to
reporting under Article XVI of the Pennsylvania Election Code.
(c) Falsification.--A lobbyist, lobbying firm or principal
may not, for the purpose of influencing legislative action or
administrative action, transmit, utter or publish to a State
official or employee a communication, knowing that the
communication or a signature on the communication is false,
forged, counterfeit or fictitious.
(d) Conflicts of interest.--
(1) Except as permitted by paragraph (2), a registrant
may not lobby on behalf of a principal on any subject matter
in which the principal's interests are directly adverse to
the interests of another principal currently represented by
the lobbyist or previously represented by the lobbyist during
the current session of the General Assembly or the lobbyist's
own interests.
(2) A lobbyist may represent a principal in
circumstances described in paragraph (1) if:
(i) the lobbyist reasonably believes that the
lobbyist will be able to provide competent and diligent
representation to each affected principal;
(ii) the lobbyist provides written notice to each
affected principal upon becoming aware of the conflict;
and
(iii) each affected principal provides informed
consent waiving the conflict of interest.
(3) If a lobbyist represents a principal in violation of
this section or if multiple representation properly accepted
becomes improper under this section and the conflict is not
waived, the lobbyist shall promptly withdraw from one or more
representations to the extent necessary for remaining
representation to not be in violation of this section.
(4) If a lobbyist is prohibited by this section from
engaging in particular conduct, an employer of the lobbyist
or a partner or other person associated with the lobbyist may
not engage in the particular conduct.
(5) A principal or lobbyist required to report under
section 13A05 (relating to reporting) shall include in the
report a statement affirming that to the best of the
principal's or lobbyist's knowledge the principal or lobbyist
has complied with this section.
(6) Except as provided in paragraph (8), the commission
may receive complaints regarding violations of this
subsection. If the commission determines a violation of this
subsection has occurred, the commission, after investigation,
notice and hearing:
(i) shall impose an administrative penalty in an
amount not to exceed $2,000; and
(ii) may prohibit a lobbyist from lobbying for
economic consideration for up to five years.
(7) A lobbyist and principal shall maintain the records
relating to the conflict of interest set forth in paragraph
(2) for a four-year period beginning on the date the conflict
is discovered and, in the case of an investigation conducted
under paragraph (6), provide copies of the records to the
commission upon request.
(8) Complaints regarding violations of this subsection
involving a lobbyist or principal who is an attorney at law
shall be referred to the board to be investigated, considered
and resolved in a manner consistent with the Rules of
Professional Conduct.
(d.1) Multiple principals.--Nothing in this section shall be
construed to require a lobbyist representing multiple principals
who each have an interest in the State Budget process to comply
with subsection (d)(2) unless a conflict of interest exists
under subsection (d)(1).
(e) Contingent compensation.--
(1) A person may not compensate or incur an obligation
to compensate a person to engage in lobbying for compensation
contingent in whole or in part upon any of the following:
(i) Occurrence, nonoccurrence or amendment of
legislative action.
(ii) Occurrence, nonoccurrence or amendment of an
administrative action other than procurement described in
paragraph (1)(iv) of the definition of "administrative
action" under section 13A03 (relating to definitions).
(2) A person may not engage in or agree to engage in
lobbying for compensation contingent in whole or in part upon
any of:
(i) Occurrence, nonoccurrence or amendment of
legislative action.
(ii) Occurrence, nonoccurrence or amendment of an
administrative action other than procurement described in
paragraph (1)(iv) of the definition of "administrative
action" under section 13A03.
(3) This subsection shall not apply to vendors.
(f) Unlawful acts.--
(1) A lobbyist or principal may not:
(i) Instigate the introduction of legislation for
the purpose of obtaining employment to lobby in
opposition to that legislation.
(ii) Knowingly counsel a person to violate this
chapter or any other Federal or State statute.
(iii) Engage in or counsel a person to engage in
fraudulent conduct.
(iv) Attempt to influence a State official or
employee on legislative or administrative action by
making or facilitating the making of a loan to the State
official or employee.
(v) While engaging in lobbying on behalf of the
principal, refuse to disclose to a State official or
employee, upon request, the identity of the principal.
(vi) Commit a criminal offense arising from
lobbying.
(vii) Influence or attempt to influence, by
coercion, bribery or threat of economic sanction, a State
official or employee in the discharge of the duties of
office.
(viii) Extort or otherwise unlawfully retaliate
against a State official or employee by reason of the
State official's or employee's position with respect to
or vote on administrative or legislative action.
(ix) Attempt to influence a State official or
employee on legislative or administrative action by the
promise of financial support or the financing of
opposition to the candidacy of the State official or
employee at a future election.
(x) Engage in conduct which brings the practice of
lobbying or the legislative or executive branches of
State government into disrepute.
(2) The commission may receive complaints regarding
violations of this subsection. If the commission determines a
violation of this subsection has occurred, the commission,
after investigation, notice and hearing:
(i) shall impose an administrative penalty in an
amount not to exceed $2,000; and
(ii) may prohibit a lobbyist from lobbying for
economic consideration for up to five years.
(3) The commission:
(i) may, as it deems appropriate, refer an alleged
violation of this subsection to the Attorney General for
investigation and prosecution; and
(ii) shall, if the subject of the complaint is an
attorney at law, refer an alleged violation of this
subsection to the board.
§ 13A08. Administration.
(a) Advice and opinions.--The commission shall provide
advice and opinions under section 1107 (relating to powers and
duties of commission) to a lobbyist, a lobbying firm, a
principal, the department, the board or a State official or
employee, that seeks advice regarding compliance with this
chapter. A person that acts in good faith based on the written
advice or opinion of the commission shall not be held liable for
a violation of this chapter if the material facts are as stated
in the request.
(b) Forms.--The department shall prescribe registration and
reporting forms to be used under this chapter. The forms shall
be available on a publicly accessible Internet website. All
information requested on the forms shall be provided to the best
of the knowledge, information and belief of the person required
to file and shall be signed under oath or equivalent
affirmation.
(c) Public inspection and copying.--The department shall
make completed registration statements, expense reports and
notices of termination, which have been filed with the
department, available for public inspection and provide copies
of these documents at a price not in excess of the actual cost
of copying. The department shall make all registrations and
reports available on a publicly accessible Internet website.
Documents maintained and reproducible in an electronic format
shall be provided in that format upon request.
(d) Annual reporting.--
(1) The department shall prepare and publish an annual
report on lobbying activities in this Commonwealth.
(2) The department shall at least annually publish a
list of all of the following:
(i) Registered principals. The department shall
identify affiliated political action committees and
lobbying firms and lobbyists that are registered to lobby
for the principal.
(ii) Lobbying firms and lobbyists not associated
with lobbying firms. The department shall identify
affiliated political action committees and the principals
for whom the lobbying firm or lobbyist is registered to
lobby.
(iii) Registered lobbyists for each lobbying firm.
(e) Retention of records.--Completed registration
statements, expense reports and notices of termination shall be
available for public inspection with the department for a four-
year period commencing on the date of filing.
(f) Audits.--The following shall apply:
(1) Every two years the Secretary of the Commonwealth
shall contract for the services of one or more certified
public accountants or certified public accounting firms. The
contract shall be awarded in a manner consistent with the
provisions of 62 Pa.C.S. Pt. I (relating to Commonwealth
Procurement Code), and no certified public accountant or
certified public accounting firm shall be eligible to obtain
a contract for two successive contract periods.
(2) The secretary shall randomly select, at a public
drawing 60 days following the close of each fourth quarter
reporting period, 3% of all completed registrations and
expense reports filed with the department under this chapter.
(3) The certified public accountant shall conduct the
audits in accordance with generally accepted auditing
standards and shall test as to whether each registration or
expense report is materially correct.
(4) The audit report and findings shall be confidential,
except that the department shall make an audit report and
findings available to the commission if the commission is
investigating an alleged violation of this chapter involving
the audited registration or expense report. The commission
shall include the relevant portion of an audit as part of its
findings of fact in a commission order which results from an
investigation arising out of an audit.
(g) Investigation and hearings.--The commission, through its
executive director, may initiate an investigation and hold a
hearing concerning an alleged violation of this chapter by a
lobbyist or principal in accordance with sections 1107 (relating
to powers and duties of commission) and 1108 (relating to
investigations by commission).
(h) Directory.--By May 1 of each odd-numbered year, the
department shall produce and distribute a directory of all
registered lobbyists, including photographs and registered
lobbying firms. Copies of the directory shall be made available
to the public at a price not to exceed the actual cost of
production. All revenue received by the department from the
sales of the directory shall be deposited into the fund.
(i) Computer file.--The department shall provide the
Legislative Data Processing Committee data relating to
registration statements and amendments to registration
statements, expense reports and notices of termination. The
committee shall make information under this subsection available
on a publicly accessible Internet website.
(j) Inflation adjustment.--On a biennial basis commencing in
January 2009, the department shall review the threshold under
section 13A06 (relating to exemption from registration and
reporting) for registration under section 13A04 (relating to
registration) and the threshold for reporting under section
13A05(d) (relating to reporting) and shall increase these
amounts to rates deemed reasonable for assuring appropriate
disclosure. On a biennial basis commencing in January 2009, the
department shall review the filing fee established under section
13A10 (relating to registration fees; fund established; system;
regulations) and may by regulation adjust this amount if the
department determines that a higher fee is needed to cover the
costs of carrying out the provisions of this chapter. The
department shall publish adjusted amounts in the Pennsylvania
Bulletin by June 1, 2009, and by June 1 every two years
thereafter as necessary.
§ 13A09. Penalties.
(a) Notice of alleged noncompliance.--
(1) The commission shall issue a notice of alleged
noncompliance to a person that has failed to register or
report as required by this chapter.
(2) The notice shall state:
(i) the nature of the alleged noncompliance; and
(ii) the administrative and criminal penalties for:
(A) failure to register;
(B) failure to file; or
(C) filing a report which contains a false
statement or which is incomplete.
(3) The notice shall advise that if the person disagrees
with the alleged noncompliance, the person may appeal the
determination before the commission.
(4) The notice shall set forth the deadline and manner
in which to request a hearing.
(5) If the person does not request a hearing in
accordance with the notice, the alleged noncompliance shall
be deemed to constitute noncompliance with this chapter, and
the commission shall impose a penalty in accordance with
subsection (b)(3) or (4).
(b) Hearing.--
(1) If a hearing is requested, the commission shall
determine at the hearing:
(i) whether the recipient of the notice is required
to register or report under this chapter;
(ii) whether the recipient of the notice is an
attorney at law; and
(iii) whether the failure to register or report was
negligent or intentional.
(2) If the commission finds that failure to register or
report was intentional, it shall refer the matter to the
Attorney General and, if the person is an attorney at law, to
the board.
(3) If the commission finds that failure to register or
report was negligent, it shall determine the amount of the
administrative penalty to be imposed.
(4) A hearing under this subsection shall be conducted
by the commission in accordance with sections 1107(14)
(relating to powers and duties of commission) and 1108(e)
(relating to investigations by commission).
(5) Appeals of the commission's determination shall be
in accordance with section 1108(i). If a court of competent
jurisdiction determines that any complaint or investigation
which involves an attorney at law is under the jurisdiction
of the board, the matter shall be referred by the court to
the board to be investigated, considered and resolved in a
manner consistent with the Rules of Professional Conduct.
(c) Negligent failure to register or report.--
(1) Negligent failure to register or report as required
by this chapter is punishable by an administrative penalty
not exceeding $50 for each late day.
(2) After a hearing under subsection (b), the commission
may, upon the majority vote of all of its members, levy an
administrative penalty. The total amount of the
administrative penalty levied shall not be limited by any
other provision of law.
(3) The commission shall notify the board of any
lobbyist or principal who is an attorney at law against whom
a civil penalty is imposed.
(4) The commission has standing to apply to the
Commonwealth Court to seek enforcement of an order imposing
an administrative penalty under this section.
(d) Failure to comply after notice.--A person that fails to
comply with the requirements of this chapter, after notice of
noncompliance and after a hearing if one is requested, may be
prohibited from lobbying for economic consideration for up to
five years. The prohibition shall be imposed under subsection
(e)(4).
(e) Intentional violations.--
(1) A person that intentionally fails to register or
report as required by this chapter commits a misdemeanor of
the second degree.
(2) A registrant who files a report under this chapter
with knowledge that the report contains a false statement or
is incomplete commits a misdemeanor of the second degree.
(3) Except as set forth in paragraph (1) or (2), a
person that intentionally violates this chapter commits a
misdemeanor of the third degree. In addition to any other
penalties imposed under this chapter, the court may impose a
fine not to exceed $25,000 against a principal who is found
guilty under this paragraph.
(4) In addition to any criminal penalties imposed under
this chapter, the commission may prohibit a person from
lobbying for economic consideration for up to five years for
conduct which constitutes an offense under this subsection.
Criminal prosecution or conviction is not required for the
imposition of the prohibition authorized by this paragraph.
The commission shall not impose the prohibition under this
paragraph unless the person has been afforded the opportunity
for a hearing, which shall be conducted by the commission in
accordance with sections 1107(14) and 1108(e).
(f) Attorneys.--Nothing in this chapter shall be construed
as restricting the board's authority to discipline an attorney
at law who is acting as a lobbyist or principal.
(g) Affirmative defense.--Any of the following is an
affirmative defense to an action brought under Chapter 11
(relating to ethics standards and financial disclosure) or this
chapter:
(1) The respondent or defendant relied on advice and
opinions of the commission.
(2) The respondent or defendant relied on notice under
section 13A05(b)(3)(iv).
(3) The respondent or defendant did not receive notice
under section 13A05(b)(3)(iv).
(h) Criminal enforcement.--If the department or commission
has reason to believe an intentional violation of this chapter
has been committed, it shall refer all relevant documents and
other information to the Office of Attorney General and, if the
lobbyist or principal is an attorney at law, to the board. The
Attorney General shall have exclusive jurisdiction to prosecute
criminal violations under this chapter.
(i) Attorney General.--In addition to the authority
conferred upon the Attorney General under the act of October 15,
1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act,
the Attorney General has the authority to investigate and
prosecute a violation of this chapter.
§ 13A10. Registration fees; fund established; system;
regulations.
(a) Registration fees.--At the time of registration, a
person required to be registered under this chapter shall pay a
biennial registration fee of $100 to the department.
(b) Fund.--
(1) The Lobbying Disclosure Fund is established as a
special fund in the State Treasury.
(2) Money received from registration fees under
subsection (a) shall be deposited in the fund. Money
remaining in the fund established under former 65 Pa.C.S. §
1310(b) shall be transferred to the fund.
(3) Money deposited in the fund is appropriated to the
department as a continuing appropriation for the exclusive
purpose of carrying out this chapter.
(c) Computerized filing system.--The department shall
implement a fully accessible system to accommodate the use of
computerized filing. Each registrant shall elect on an annual
basis whether the registrant will file all of the documents
required by this chapter either electronically or on paper with
the department.
(d) Regulations.--
(1) A committee comprised of the chairman of the
commission, the Attorney General, the chief counsel of the
board, the Secretary of the Commonwealth, an individual
appointed by the President pro Tempore of the Senate, an
individual appointed by the Minority Leader of the Senate, an
individual appointed by the Speaker of the House of
Representatives, an individual appointed by the Minority
Leader of the House of Representatives, or their designees,
and a lobbyist appointed by the Governor shall have authority
to promulgate regulations necessary to carry out this
chapter. The Attorney General shall be chairman of this
committee. A vacancy occurring among the appointed members of
the committee shall be filled in the same manner as the
original appointment. A committee member who is a member of
the General Assembly shall serve for a term that is
coincident with the member's term of office.
(2) The committee shall submit the initial proposed
regulations within 180 days of the effective date of this
section to the Independent Regulatory Review Commission under
section 5 of the act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(3) A meeting at which the committee plans to approve
proposed regulations or other official actions shall be held
in accordance with Chapter 7 (relating to open meetings).
(4) The department shall provide sufficient staff and
other administrative support to assist the committee.
(5) The committee shall prepare and publish a manual
setting forth guidelines for accounting and reporting.
(6) The regulations and manual shall be drafted to
accommodate the use of computerized recordkeeping, electronic
filing of required registrations and reports under this
chapter and retention of registration statements and reports
under this chapter by electronic means.
§ 13A11. Nonapplicability.
Nothing in this chapter shall be construed to affect 18
Pa.C.S. § 7515 (relating to contingent compensation).
Section 4. The Secretary of the Commonwealth shall transmit
to the Legislative Reference Bureau, for publication in the
Pennsylvania Bulletin, notice of full implementation of the
computerized filing system required under 65 Pa.C.S. § 13A10(c).
Section 5. Any funds remaining in the restricted receipts
account created under 65 Pa.C.S. § 1310(b) may be utilized by
the Department of State to implement the provisions of 65
Pa.C.S. Ch. 13A.
Section 6. This act shall take effect as follows:
(1) The following provisions shall take effect
immediately:
(i) 65 Pa.C.S. § 13A08(b) and § 13A10(d).
(ii) This section.
(2) The remainder of this act shall take effect January
1, 2007.
APPROVED--The 1st day of November, A. D. 2006.
EDWARD G. RENDELL
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