Amending Title 65 (Public Officers) of the Pennsylvania Consolidated Statutes, in ethics standards and financial disclosure, further providing for restricted activities, statements of financial interests and penalties; providing for public-contract transparency and an independent Public Integrity Office; and imposing duties on public agencies and contractors.
Section 1. Short title.
This act shall be known and may be cited as the Pennsylvania Public Integrity and Anti-Corruption Act.
Section 2. Legislative findings.
The General Assembly finds and declares that:

1. Public office is a public trust, and government decisions must be made for the benefit of the people of this Commonwealth.
2. Corruption, self-dealing, undisclosed conflicts of interest, bid-rigging, pay-to-play practices and retaliation against whistleblowers undermine public confidence and waste taxpayer resources.
3. The Commonwealth has an interest in ensuring transparent contracting, timely disclosure of financial interests and meaningful protection for individuals who report wrongdoing in good faith.
4. This act shall be construed to promote ethical conduct, accountability and public access to information while preserving due-process rights.
   Section 3. Definitions.
   As used in this act:
   “Covered official.” An elected Commonwealth official, member of the General Assembly, agency head, senior executive employee, procurement official, municipal elected official, school-board member, public authority board member or employee with authority to influence a contract, grant, zoning decision, permit or expenditure of public funds.
   “Immediate family.” A spouse, domestic partner, parent, child, sibling or dependent of a covered official.
   “Material financial interest.” An ownership interest, employment relationship, consulting arrangement, creditor relationship, prospective employment arrangement or other direct financial interest exceeding $1,000 in value in a calendar year.
   “Public contract.” A contract, subcontract, grant, lease, concession, procurement, tax-abatement agreement or other agreement involving public funds or public property.
   “Thing of value.” Money, a gift, meal, travel, lodging, service, loan, promise of employment, campaign-related benefit or any other benefit, whether tangible or intangible.
   Section 4. Conflict-of-interest disclosure and recusal.
   (a) A covered official shall disclose, in writing and on the public record, any actual or potential material financial interest held by the official or the official’s immediate family before participating in a matter involving:
5. A public contract.
6. A grant, subsidy, tax incentive or public investment.
7. A land-use, zoning, permit or licensing decision.
8. A regulatory, enforcement or procurement action.
9. Any decision reasonably likely to provide a direct financial benefit to the official, immediate family member or associated business.
   (b) Upon disclosure, the covered official shall recuse from deliberation, recommendation, negotiation, vote, approval and other official action on the matter.
   (c) No covered official may use confidential government information acquired through public office for personal gain or for the gain of another person.
   (d) A knowing violation of this section constitutes a violation of the Public Official and Employee Ethics Act and may result in civil penalties, restitution, removal from the affected matter and referral for criminal investigation.
   Section 5. Gifts, gratuities and pay-to-play restrictions.
   (a) A covered official may not solicit or accept a thing of value from a person, business or organization that:
10. Has a pending or active public contract with the official’s agency or municipality.
11. Is seeking a contract, grant, permit, license, zoning approval or tax incentive from the official’s agency or municipality.
12. Is subject to regulation, inspection or enforcement by the official or the official’s agency.
    (b) This section does not prohibit:
13. Items of nominal value made available to the general public.
14. Food or refreshments provided at a widely attended public event, if disclosed as required by law.
15. Gifts from immediate family members, unless given as a conduit for a prohibited source.
16. Campaign contributions reported in accordance with election law.
    (c) A person or entity that knowingly offers a prohibited thing of value with intent to influence official action shall be subject to civil penalties and referral for prosecution under applicable criminal law. Pennsylvania’s existing bribery statute makes offering or accepting a benefit in exchange for official discretion a third-degree felony.[justia]
    Section 6. Public-contract transparency.
    (a) A Commonwealth or local agency may not award a public contract valued at $25,000 or more unless the agency posts the following on a publicly searchable website:
17. The request for proposals, invitation to bid or procurement notice.
18. The names of all bidders or applicants.
19. Bid amounts or proposed pricing, subject to lawful confidential-commercial-information protections.
20. The selected contractor and total contract value.
21. Amendments, change orders and renewals.
22. A plain-language explanation of the selection decision.
23. The names of beneficial owners holding 5% or more of a contractor seeking or receiving a public contract valued at $100,000 or more.
    (b) Agencies shall update contract information within 30 days after award, amendment, renewal or termination.
    (c) A contractor shall certify, under penalty of perjury, that it has disclosed all beneficial owners required under this section and that neither the contractor nor a beneficial owner has offered a prohibited payment or benefit related to the contract.
    Section 7. Independent Public Integrity Office.
    (a) The Public Integrity Office is established within the Office of Attorney General for the purpose of receiving and reviewing allegations of public corruption, procurement fraud, conflicts of interest, misuse of public funds and retaliation against whistleblowers.
    (b) The office shall:
24. Maintain a secure, confidential reporting system that permits anonymous submissions.
25. Refer allegations to the appropriate law-enforcement, ethics, inspector-general or prosecutorial authority.
26. Provide guidance and training to State and local agencies regarding ethics, procurement controls and anti-retaliation obligations.
27. Publish an annual report containing aggregate complaint data, referrals, outcomes and policy recommendations, without identifying protected whistleblowers or compromising active investigations.
    (c) Nothing in this act limits the authority of the Attorney General, district attorneys, the State Ethics Commission, inspectors general or other agencies with jurisdiction over misconduct. The Office of Attorney General’s Criminal Law Division already investigates and prosecutes public-corruption matters within its statutory authority.[attorneygeneral]
    Section 8. Whistleblower protection.
    (a) No public employer, government contractor or recipient of public funds may discharge, demote, threaten, harass, discriminate against or otherwise retaliate against a person for making a good-faith report of wrongdoing, waste, fraud, corruption or a violation of this act.
    (b) A person alleging retaliation may file a complaint with the Public Integrity Office within 180 days after the alleged retaliatory act.
    (c) Available remedies may include reinstatement, back pay, compensatory damages, reasonable attorney fees, restoration of benefits and a civil penalty of up to $25,000 for a knowing violation.
    (d) A person who knowingly makes a materially false report with malicious intent is not protected by this section.
    Pennsylvania’s Whistleblower Law already prohibits retaliation for good-faith reports of wrongdoing or waste; this section would expressly extend those protections to covered contractors and corruption reports under this act.[kkc +1]
    Section 9. Penalties and debarment.
    (a) A covered official who knowingly violates section 4 or 5 shall be subject to:
28. A civil penalty of not more than $10,000 for a first violation.
29. A civil penalty of not more than $25,000 for a subsequent violation.
30. Restitution of any financial benefit received.
31. Referral to the State Ethics Commission and appropriate prosecutorial authority.
    (b) A business found, after notice and opportunity for hearing, to have knowingly engaged in bribery, bid-rigging, fraudulent certification or intentional concealment under this act may be barred from receiving Commonwealth contracts for up to five years.
    (c) Penalties under this act are in addition to any criminal, civil or administrative remedy otherwise provided by law.
    Section 10. Implementation.
    (a) Within 180 days of the effective date, the Attorney General, State Ethics Commission and Department of General Services shall issue guidance and regulations necessary to implement this act.
    (b) The public-contract transparency requirements shall apply to contracts solicited on or after one year following the effective date.
    Section 11. Effective date.
    This act shall take effect in 180 days.
    Positioning the bill
    This version is strongest as a preventive transparency and enforcement bill, rather than merely increasing criminal penalties. Existing law already covers bribery and provides public-record access, so a sponsor could frame the proposal around closing gaps before taxpayer funds are misused: disclosures, recusal, beneficial-ownership reporting, public contracting data and retaliation protection.[justia +2]