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Pennsylvania governor signs bill

HARRISBURG, Pennsylvania – (PRESS RELEASE) -- Governor Edward G. Rendell today signed Senate Bill 862, legislation prohibiting public officials from owning any stake in slots, manufacturer and supplier licensees; giving the state Supreme Court exclusive jurisdiction in zoning and land use decisions made by local governments; and allowing casinos to continue operating in the event of a state budget stalemate.

The Governor also signed the Lobbyist Disclosure Act, House Bill 700, which will ensure that citizens can easily see who is lobbying their government officials, and protect the legislative process from the undue influence of lobbyists.

"This is a good day for Pennsylvania because today I am signing into law bills that reform two of the most highly visible public processes in this state - the deliberations of the Legislature and the licensing of gaming facilities," said Governor Rendell.

Improvements to the Gaming Act embodied in SB 862 will help keep the Pennsylvania gaming industry free of corruption. The Governor said the changes show that Pennsylvania is serious about operating an above-board gaming operation with zero tolerance for people who attempt to break the law.

"The legislation reaffirms our shared commitment to the strictest oversight of this new industry - an industry that will employ thousands of people and that will support reductions in the property tax burden of hundreds of thousands of Pennsylvania homeowners," said Governor Rendell.

"Pennsylvania's new gaming facilities must be operated in the most straightforward and ethical way possible. This new law removes any question of impropriety that the previous law may have created. It should also restore the public's faith in our ability to oversee a new industry that will employ thousands of people and greatly ease the property tax burden for hundreds of thousands of homeowners."

SB 862, among other things:

-- Prohibits public officials from accepting gifts or discounts from gaming interests;

-- Clarifies the appropriate role of the Attorney General with respect to the institution of criminal proceedings under the act, as well as more clearly delineates the different enforcement roles of the board, the Pennsylvania State Police and the Attorney General;

-- Restricts the Gaming Control Board from hiring any person who has not been through a full background investigation;

-- Codifies the requirement for the Gaming Control Board to adopt a Code of Conduct, which will ensure that future boards continue to operate under a strict ethics code;

-- Requires the waiver of benefits by slot license applicants for Category 2 and 3 facilities that are proposed to be located in Keystone Opportunity and related zones;

-- Makes the use of suppliers optional; and

-- Requires the board to hold public input hearings in municipalities where facilities are to be located.

"I am particularly pleased that the bill includes two of the four important changes to the Gaming Act that I proposed last summer, including prohibiting public officials and their immediate family members from owning any interests in any entity regulated by the Gaming Control Board, and confirming that local zoning processes have a role in choosing the locations of slot parlors," said Governor Rendell.

"Still not addressed, however, is an extension of the ban on political contributions to immediate family members of any person holding an interest in an entity regulated under Act 71, among other issues that I have outlined in my signing message to the legislature (attached), but I am optimistic that I can work with the General Assembly to continue to increase the integrity of our gaming laws."

Last March, after the General Assembly failed to pass legislation to require lobbying disclosure, Governor Rendell signed an executive order requiring that those who lobby the Executive Branch register and report their lobbying expenditures. Today, Governor Rendell signed HB 700 which ensures that both the Legislature and the Executive Branch will be held to the same standards and our citizens will be able to track who is attempting to influence any and all legislation.

"Finally Pennsylvania is no longer the only state without a bill requiring the disclosure of lobbying activities on its books," said Governor Rendell. "This lobbyist disclosure act not only gives citizens information that by rights they should be able to access easily, it establishes clear reporting requirements and limits on gifts to politicians.

"Prohibiting lobbyists from entering into contingent fee arrangements, under which they would be paid for their success in passing legislation, protects the integrity of votes cast by each member of the Legislature.

"I believe very strongly in the need for our public process to be transparent - that is the only way we can protect our commonwealth and our democracy from bad actors," said Governor Rendell.

HB 700 requires that:

-- Any lobbyist who is paid more than $2,500 in any quarter must register with the Department of State;

-- Any corporation or trade group that spends more than $2,500 in any quarter on a lobbyist must register with the Department of State;

-- Every quarter lobbyists and those that hire them must disclose spending for lobbying. These spending reports must categorize how money was spent for any sort of communications, gifts, salaries and benefits. The reports must also identify the general subject matter or issue for which they were lobbying;

-- Lobbyists must report the names of any state officials to whom they gave gifts worth more than $250 in a year or entertainment, such as tickets to an event, meals, transportation and other forms of hospitality worth more than $650 in a year;

-- All lobbying disclosure reports will be available on-line and random audits of lobbyists' reports are required;

-- Making it illegal for lobbyists to charge a fee with the understanding that any part of that fee would be converted to a campaign contribution;

-- Making it illegal for a lobbyist to serve as a political committee's treasurer; and

-- Lobbyists or corporations that violate this law may be fined and lobbyists may be prohibited from lobbying for up to five years. (Fines - Lobbyist $2,000 and Principals $25,000)

The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses.

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