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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY GODSHALL, BAKER, BARRAR, CALTAGIRONE, CHRISTIANA, CLYMER, CREIGHTON, CUTLER, DeLUCA, FLECK, GROVE, HAHN, HARHART, KAUFFMAN, KNOWLES, MUSTIO, PICKETT, READSHAW, REICHLEY, ROAE, ROCK, SAYLOR, SCHRODER, STERN, STEVENSON, SWANGER AND VULAKOVICH, JANUARY 20, 2011 |
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| REFERRED TO COMMITTEE ON STATE GOVERNMENT, JANUARY 20, 2011 |
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| AN ACT |
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1 | Prohibiting campaign contributions by certain persons that |
2 | contract with the Commonwealth or its political subdivisions. |
3 | The General Assembly of the Commonwealth of Pennsylvania |
4 | hereby enacts as follows: |
5 | CHAPTER 1 |
6 | PRELIMINARY PROVISIONS |
7 | Section 101. Short title. |
8 | This act shall be known and may be cited as the Public |
9 | Contract Integrity Act. |
10 | Section 102. Declaration of policy. |
11 | The General Assembly finds and declares as follows: |
12 | (1) In a representative form of government, it is |
13 | essential that individuals who are elected to public office |
14 | have the trust, respect and confidence of the citizenry. |
15 | (2) All individuals and businesses have a right to |
16 | participate in the political process, including making |
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1 | contributions to candidates or soliciting contributions on |
2 | behalf of candidates, political parties and those holding |
3 | office within this Commonwealth. |
4 | (3) However, when an individual or business makes |
5 | contributions or solicits major contributions to obtain a |
6 | contract awarded by a government agency, it constitutes a |
7 | violation of the public trust and raises legitimate public |
8 | concerns about whether the contract awarded was based on |
9 | merit. |
10 | (4) While the right of individuals and businesses to |
11 | make contributions is unequivocal, that right may be limited, |
12 | even abrogated, when the contributions promote the actuality |
13 | or appearance of public corruption. |
14 | (5) The Commonwealth has a duty to protect the integrity |
15 | of contractual decisions made by elected officials at all |
16 | levels of government. |
17 | (6) It is essential that the citizenry have confidence |
18 | that the selection of contractors is based on merit and not |
19 | the extent of contributions made by contractors. |
20 | (7) It is essential that the citizenry trust the process |
21 | through which taxpayer dollars are spent. |
22 | (8) The Commonwealth has a duty to promote the honesty |
23 | and integrity of the process of selecting contractors and a |
24 | duty to guard against favoritism, improvidence, extravagance |
25 | and corruption in the selection process. |
26 | Section 103. Definitions. |
27 | The following words and phrases when used in this act shall |
28 | have the meanings given to them in this section unless the |
29 | context clearly indicates otherwise: |
30 | "Candidate." The term includes the Governor, an individual |
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1 | seeking the office of Governor, the Lieutenant Governor, an |
2 | individual seeking the office of Lieutenant Governor, an |
3 | individual appointed by the Governor to head a department, |
4 | board, commission or authority who is responsible for awarding |
5 | public contracts, an individual holding elected office in a |
6 | local agency and an individual seeking elected office in a local |
7 | agency. The term also includes a committee of a political party |
8 | organized at the level of the Commonwealth or the level of a |
9 | political subdivision of this Commonwealth and a political |
10 | action committee or other entity formed to provide contributions |
11 | to the Governor, an individual seeking the office of Governor, |
12 | the Lieutenant Governor, an individual seeking the office of |
13 | Lieutenant Governor, an individual holding elected office in a |
14 | local agency or an individual seeking elected office in a local |
15 | agency. |
16 | "Contribution." A payment, gift, subscription, assessment, |
17 | contract, payment for services, dues, loan, forbearance or |
18 | deposit of money or valuable thing to a candidate before or |
19 | after an election. The term includes the purchase of tickets for |
20 | events, including dinners, luncheons, rallies and other |
21 | fundraising events and the granting of discounts or rebates not |
22 | available to the general public. |
23 | "Executive agency." The Governor and the departments, |
24 | boards, commissions, authorities and other officers and agencies |
25 | of the Commonwealth. The term does not include any court or |
26 | other officer or agency of the unified judicial system, the |
27 | General Assembly and its officers and agencies or any |
28 | independent agency or State-affiliated entity. |
29 | "Local agency." The governing authority of a county, |
30 | township, borough or other political subdivision of the |
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1 | Commonwealth. |
2 | "Person." The term includes a corporation, partnership, |
3 | limited liability company, business trust, other association, |
4 | estate, trust, foundation or individual seeking a public |
5 | contract. The term also includes the spouse of an individual or |
6 | a child of an individual living in the home of an individual |
7 | seeking a public contract, and a principal in a business entity |
8 | who owns at least 10% of the equity of that business entity in |
9 | the case of a corporation, partnership, limited liability |
10 | company, business trust or other association of a business |
11 | entity seeking a public contract. |
12 | "Public contract." An agreement, contract or amendment to an |
13 | existing agreement or contract or other transaction, including |
14 | an agreement or contract for legal or engineering services, |
15 | awarded without public bidding. |
16 | Section 104. Scope of act. |
17 | This act shall apply to the Commonwealth and its political |
18 | subdivisions. |
19 | CHAPTER 3 |
20 | VIOLATIONS |
21 | Section 301. Unlawful acts. |
22 | (a) Certain public contracts prohibited.--Notwithstanding |
23 | any other provision of law to the contrary, it is unlawful for |
24 | an executive agency or a local agency to enter into a public |
25 | contract with a person who has made a contribution to or |
26 | solicited a contribution on behalf of a candidate exceeding the |
27 | limits set forth under subsection (b) within one year |
28 | immediately preceding the awarding of a public contract. |
29 | (b) Certain contributions unlawful.--Notwithstanding any |
30 | other provision of law to the contrary, it is unlawful for a |
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1 | person seeking a public contract to make a contribution to any |
2 | one candidate or solicit a contribution on behalf of any one |
3 | candidate which exceeds $300 within one year immediately |
4 | preceding the awarding of a public contract or to make a |
5 | contribution to two or more candidates or solicit a contribution |
6 | on behalf of two or more candidates which exceed $3,000 in the |
7 | aggregate within one year immediately preceding the awarding of |
8 | a public contract. |
9 | (c) After public contract awarded.--Notwithstanding any |
10 | other provision of law to the contrary, it is unlawful for a |
11 | person awarded a public contract to make a contribution to a |
12 | candidate or to solicit a contribution on behalf of a candidate |
13 | during the duration of that public contract. |
14 | Section 302. Breach of public contract. |
15 | (a) Breach of contract.--It shall be a breach of a public |
16 | contract for a person seeking or awarded a public contract to |
17 | violate a provision of this act or to: |
18 | (1) Make or solicit a contribution in violation of this |
19 | act. |
20 | (2) Conceal or misrepresent a contribution given to a |
21 | candidate. |
22 | (3) Make or solicit a contribution through |
23 | intermediaries for the purpose of concealing or |
24 | misrepresenting the source of the contribution. |
25 | (4) Fund a contribution made by a third party which, if |
26 | made or solicited by the person, would violate this act. |
27 | (5) Directly or indirectly, whether by the person or an |
28 | intermediary, perform an act which would violate this act. |
29 | (b) Terms.--A public contract shall include a provision |
30 | setting forth the prohibitions contained in this act and shall |
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1 | contain a provision that it is a breach of the terms of the |
2 | public contract for a person to violate this act or to: |
3 | (1) Make or solicit a contribution in violation of this |
4 | act. |
5 | (2) Conceal or misrepresent a contribution given to a |
6 | candidate. |
7 | (3) Make or solicit a contribution through |
8 | intermediaries for the purpose of concealing or |
9 | misrepresenting the source of the contribution. |
10 | (4) Fund a contribution made by a third party which, if |
11 | made or solicited by the person, would violate this act. |
12 | (5) Directly or indirectly, whether by the person or an |
13 | intermediary, perform an act which would violate this act. |
14 | Section 303. Certification required. |
15 | Prior to awarding a public contract, a person awarded the |
16 | contract shall provide a written certification that the person |
17 | has not made a contribution to or solicited a contribution on |
18 | behalf of a candidate in violation of this act. The |
19 | certification shall be made part of the person's application for |
20 | a public contract. A certification which contains materially |
21 | false information shall subject the person to prosecution under |
22 | 18 Pa.C.S. § 4904 (relating to unsworn falsification to |
23 | authorities) and to a fine of $5,000. |
24 | CHAPTER 5 |
25 | ENFORCEMENT |
26 | Section 501. Remedies. |
27 | (a) Executive or local agency.--A public contract which is |
28 | entered into by an executive agency or a local agency in |
29 | violation of this act shall be void. |
30 | (b) Person seeking public contract.--A person who makes a |
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1 | contribution to a candidate or solicits a contribution on behalf |
2 | of a candidate in violation of this act shall be subject to a |
3 | fine of $5,000. Each contribution made to a candidate or |
4 | solicited on behalf of a candidate shall constitute a separate |
5 | offense. |
6 | (c) Courts.--The several courts of common pleas and the |
7 | Commonwealth Court shall have jurisdiction to prevent and |
8 | restrain violations of sections 301, 302(a) and 303 by issuing |
9 | appropriate orders, including, but not limited to: |
10 | (1) Ordering any candidate to divest himself of a |
11 | contribution made in violation of this act. |
12 | (2) Making due provision for the rights of taxpayers by |
13 | voiding the public contract or ordering the denial, |
14 | suspension or revocation of licenses, permits or other |
15 | approval granted to the person in connection with the public |
16 | contract or prohibiting the person from engaging in any act. |
17 | (d) Injunctions.--In any proceeding under subsection (c), |
18 | the court shall proceed as soon as is practicable to the hearing |
19 | and determination thereof. Pending final determination, the |
20 | court may enter preliminary or special injunctions, or take such |
21 | other actions, including the acceptance of satisfactory |
22 | performance bonds, as it may deem proper. Proceedings under |
23 | subsection (c) at pretrial, trial and appellate levels shall be |
24 | governed by the Pennsylvania Rules of Civil Procedure and all |
25 | other rules and procedures relating to civil actions, except to |
26 | the extent inconsistent with the provisions of this section. |
27 | Section 502. Enforcement. |
28 | (a) Attorney General.--The Attorney General shall have the |
29 | power and duty to enforce the provisions of this act, including |
30 | the power to institute proceedings under section 501 and to take |
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1 | such actions as may be necessary to ascertain and investigate |
2 | alleged violations of sections 301, 302(a) and 303. |
3 | (b) District attorneys.--The district attorneys of the |
4 | several counties shall have concurrent authority to institute |
5 | proceedings under section 501 and to take such actions as may be |
6 | necessary to ascertain and investigate alleged violations of |
7 | sections 301, 302(a) and 303. |
8 | (c) Construction.--Nothing in this section shall be |
9 | construed to limit the regulatory or investigative authority of |
10 | any department or agency of the Commonwealth or a political |
11 | subdivision of the Commonwealth, including the Inspector |
12 | General, whose function might relate to persons, candidates or |
13 | matters falling within the scope of this act. |
14 | CHAPTER 21 |
15 | MISCELLANEOUS PROVISIONS |
16 | Section 2101. Repeal. |
17 | All acts and parts of acts are repealed insofar as they are |
18 | inconsistent with this act. |
19 | Section 2102. Applicability. |
20 | This act shall apply to all contributions made to candidates |
21 | or solicitations on behalf of candidates by persons seeking |
22 | public contracts on or after the effective date of this act. |
23 | Section 2103. Effective date. |
24 | This act shall take effect immediately. |
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