THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

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

REFERRED TO COMMITTEE ON STATE GOVERNMENT, JANUARY 20, 2011  

AN ACT

Prohibiting campaign contributions by certain persons that

contract with the Commonwealth or its political subdivisions.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

PRELIMINARY PROVISIONS

Section 101.  Short title.

This act shall be known and may be cited as the Public

Contract Integrity Act.

Section 102.  Declaration of policy.

The General Assembly finds and declares as follows:

(1)  In a representative form of government, it is

essential that individuals who are elected to public office

have the trust, respect and confidence of the citizenry.

(2)  All individuals and businesses have a right to

participate in the political process, including making

contributions to candidates or soliciting contributions on

behalf of candidates, political parties and those holding

office within this Commonwealth.

(3)  However, when an individual or business makes

contributions or solicits major contributions to obtain a

contract awarded by a government agency, it constitutes a

violation of the public trust and raises legitimate public

concerns about whether the contract awarded was based on

merit.

(4)  While the right of individuals and businesses to

make contributions is unequivocal, that right may be limited,

even abrogated, when the contributions promote the actuality

or appearance of public corruption.

(5)  The Commonwealth has a duty to protect the integrity

of contractual decisions made by elected officials at all

levels of government.

(6)  It is essential that the citizenry have confidence

that the selection of contractors is based on merit and not

the extent of contributions made by contractors.

(7)  It is essential that the citizenry trust the process

through which taxpayer dollars are spent.

(8)  The Commonwealth has a duty to promote the honesty

and integrity of the process of selecting contractors and a

duty to guard against favoritism, improvidence, extravagance

and corruption in the selection process.

Section 103.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Candidate."  The term includes the Governor, an individual

seeking the office of Governor, the Lieutenant Governor, an

individual seeking the office of Lieutenant Governor, an

individual appointed by the Governor to head a department,

board, commission or authority who is responsible for awarding

public contracts, an individual holding elected office in a

local agency and an individual seeking elected office in a local

agency. The term also includes a committee of a political party

organized at the level of the Commonwealth or the level of a

political subdivision of this Commonwealth and a political

action committee or other entity formed to provide contributions

to the Governor, an individual seeking the office of Governor,

the Lieutenant Governor, an individual seeking the office of

Lieutenant Governor, an individual holding elected office in a

local agency or an individual seeking elected office in a local

agency.

"Contribution."  A payment, gift, subscription, assessment,

contract, payment for services, dues, loan, forbearance or

deposit of money or valuable thing to a candidate before or

after an election. The term includes the purchase of tickets for

events, including dinners, luncheons, rallies and other

fundraising events and the granting of discounts or rebates not

available to the general public.

"Executive agency."  The Governor and the departments,

boards, commissions, authorities and other officers and agencies

of the Commonwealth. The term does not include any court or

other officer or agency of the unified judicial system, the

General Assembly and its officers and agencies or any

independent agency or State-affiliated entity.

"Local agency."  The governing authority of a county,

township, borough or other political subdivision of the

Commonwealth.

"Person."  The term includes a corporation, partnership,

limited liability company, business trust, other association,

estate, trust, foundation or individual seeking a public

contract. The term also includes the spouse of an individual or

a child of an individual living in the home of an individual

seeking a public contract, and a principal in a business entity

who owns at least 10% of the equity of that business entity in

the case of a corporation, partnership, limited liability

company, business trust or other association of a business

entity seeking a public contract.

"Public contract."  An agreement, contract or amendment to an

existing agreement or contract or other transaction, including

an agreement or contract for legal or engineering services,

awarded without public bidding.

Section 104.  Scope of act.

This act shall apply to the Commonwealth and its political

subdivisions.

CHAPTER 3

VIOLATIONS

Section 301.  Unlawful acts.

(a)  Certain public contracts prohibited.--Notwithstanding

any other provision of law to the contrary, it is unlawful for

an executive agency or a local agency to enter into a public

contract with a person who has made a contribution to or

solicited a contribution on behalf of a candidate exceeding the

limits set forth under subsection (b) within one year

immediately preceding the awarding of a public contract. 

(b)  Certain contributions unlawful.--Notwithstanding any

other provision of law to the contrary, it is unlawful for a

person seeking a public contract to make a contribution to any

one candidate or solicit a contribution on behalf of any one

candidate which exceeds $300 within one year immediately

preceding the awarding of a public contract or to make a

contribution to two or more candidates or solicit a contribution

on behalf of two or more candidates which exceed $3,000 in the

aggregate within one year immediately preceding the awarding of

a public contract.

(c)  After public contract awarded.--Notwithstanding any

other provision of law to the contrary, it is unlawful for a

person awarded a public contract to make a contribution to a

candidate or to solicit a contribution on behalf of a candidate

during the duration of that public contract.

Section 302.  Breach of public contract.

(a)  Breach of contract.--It shall be a breach of a public

contract for a person seeking or awarded a public contract to

violate a provision of this act or to:

(1)  Make or solicit a contribution in violation of this

act.

(2)  Conceal or misrepresent a contribution given to a

candidate.

(3)  Make or solicit a contribution through

intermediaries for the purpose of concealing or

misrepresenting the source of the contribution.

(4)  Fund a contribution made by a third party which, if

made or solicited by the person, would violate this act.

(5)  Directly or indirectly, whether by the person or an

intermediary, perform an act which would violate this act.

(b)  Terms.--A public contract shall include a provision

setting forth the prohibitions contained in this act and shall

contain a provision that it is a breach of the terms of the

public contract for a person to violate this act or to:

(1)  Make or solicit a contribution in violation of this

act.

(2)  Conceal or misrepresent a contribution given to a

candidate.

(3)  Make or solicit a contribution through

intermediaries for the purpose of concealing or

misrepresenting the source of the contribution.

(4)  Fund a contribution made by a third party which, if

made or solicited by the person, would violate this act.

(5)  Directly or indirectly, whether by the person or an

intermediary, perform an act which would violate this act.

Section 303.  Certification required.

Prior to awarding a public contract, a person awarded the

contract shall provide a written certification that the person

has not made a contribution to or solicited a contribution on

behalf of a candidate in violation of this act. The

certification shall be made part of the person's application for

a public contract. A certification which contains materially

false information shall subject the person to prosecution under

18 Pa.C.S. § 4904 (relating to unsworn falsification to

authorities) and to a fine of $5,000.

CHAPTER 5

ENFORCEMENT

Section 501.  Remedies.

(a)  Executive or local agency.--A public contract which is

entered into by an executive agency or a local agency in

violation of this act shall be void.

(b)  Person seeking public contract.--A person who makes a

contribution to a candidate or solicits a contribution on behalf

of a candidate in violation of this act shall be subject to a

fine of $5,000. Each contribution made to a candidate or

solicited on behalf of a candidate shall constitute a separate

offense.

(c)  Courts.--The several courts of common pleas and the

Commonwealth Court shall have jurisdiction to prevent and

restrain violations of sections 301, 302(a) and 303 by issuing

appropriate orders, including, but not limited to:

(1)  Ordering any candidate to divest himself of a

contribution made in violation of this act.

(2)  Making due provision for the rights of taxpayers by

voiding the public contract or ordering the denial,

suspension or revocation of licenses, permits or other

approval granted to the person in connection with the public

contract or prohibiting the person from engaging in any act.

(d)  Injunctions.--In any proceeding under subsection (c),

the court shall proceed as soon as is practicable to the hearing

and determination thereof. Pending final determination, the

court may enter preliminary or special injunctions, or take such

other actions, including the acceptance of satisfactory

performance bonds, as it may deem proper. Proceedings under

subsection (c) at pretrial, trial and appellate levels shall be

governed by the Pennsylvania Rules of Civil Procedure and all

other rules and procedures relating to civil actions, except to

the extent inconsistent with the provisions of this section.

Section 502.  Enforcement.

(a)  Attorney General.--The Attorney General shall have the

power and duty to enforce the provisions of this act, including

the power to institute proceedings under section 501 and to take

such actions as may be necessary to ascertain and investigate

alleged violations of sections 301, 302(a) and 303.

(b)  District attorneys.--The district attorneys of the

several counties shall have concurrent authority to institute

proceedings under section 501 and to take such actions as may be

necessary to ascertain and investigate alleged violations of

sections 301, 302(a) and 303.

(c)  Construction.--Nothing in this section shall be

construed to limit the regulatory or investigative authority of

any department or agency of the Commonwealth or a political

subdivision of the Commonwealth, including the Inspector

General, whose function might relate to persons, candidates or

matters falling within the scope of this act.

CHAPTER 21

MISCELLANEOUS PROVISIONS

Section 2101.  Repeal.

All acts and parts of acts are repealed insofar as they are

inconsistent with this act.

Section 2102.  Applicability.

This act shall apply to all contributions made to candidates

or solicitations on behalf of candidates by persons seeking

public contracts on or after the effective date of this act.

Section 2103.  Effective date.

This act shall take effect immediately.