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Financial and employment interests - 4 Pa. Cons. Stat. § 1512

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     § 1512.  Financial and employment interests.
        (a)  Financial interests.--Except as may be provided for the
     judiciary by rule or order of the Pennsylvania Supreme Court, an
     executive-level public employee, public official or party
     officer, or an immediate family member thereof, shall not
     intentionally or knowingly hold a financial interest in an
     applicant or a slot machine licensee, manufacturer licensee,
     supplier licensee or licensed racing entity, or in a holding
     company, affiliate, intermediary or subsidiary thereof, while
     the individual is an executive-level public employee, public
     official or party officer and for one year following termination
     of the individual's status as an executive-level public
     employee, public official or party officer.
        (a.1)  Employment.--Except as may be provided by rule or
     order of the Pennsylvania Supreme Court, no executive-level
     public employee, public official or party officer, or an
     immediate family member thereof, shall be employed by an
     applicant or a slot machine licensee, manufacturer licensee,
     supplier licensee or licensed racing entity, or by any holding
     company, affiliate, intermediary or subsidiary thereof, while
     the individual is an executive-level public employee, public
     official or party officer and for one year following termination
     of the individual's status as an executive-level public
     employee, public official or party officer.
        (a.2)  Complimentary services.--
            (1)  No executive-level public employee, public official
        or party officer, or an immediate family member thereof,
        shall solicit or accept any complimentary service from an
        applicant or a slot machine licensee, manufacturer licensee,
        supplier licensee or licensed racing entity, or from any
        affiliate, intermediary, subsidiary or holding company
        thereof, which the executive-level public employee, public
        official or party officer, or an immediate family member
        thereof, knows or has reason to know is other than a service
        or discount which is offered to members of the general public
        in like circumstances.
            (2)  No applicant, slot machine licensee, manufacturer
        licensee, supplier licensee or licensed racing entity, or any
        affiliate, intermediary, subsidiary or holding company
        thereof, shall offer or deliver to an executive-level public
        employee, public official or party officer, or an immediate
        family member thereof, any complimentary service from the
        applicant or slot machine licensee, manufacturer licensee,
        supplier licensee or licensed racing entity, or an affiliate,
        intermediary, subsidiary or holding company thereof, that the
        applicant or slot machine licensee, manufacturer licensee,
        supplier licensee or licensed racing entity, or any
        affiliate, intermediary, subsidiary or holding company
        thereof, knows or has reason to know is other than a service
        or discount that is offered to members of the general public
        in like circumstances.
        (a.3)  Grading.--An individual who violates this section
     commits a misdemeanor and shall, upon conviction, be sentenced
     to pay a fine of not more than $1,000 or to imprisonment for not
     more than one year, or both.
        (a.4)  Divestiture.--An executive-level public employee,
     public official or party officer, or an immediate family member
     thereof, who holds a financial interest prohibited by this
     section shall divest the financial interest within three months
     of the effective date of the restrictions set forth in
     subsection (a), as applicable. Thereafter, any executive-level
     public employee, public official, party officer or immediate
     family member shall have 30 days from the date the individual
     knew or had reason to know of the violation or 30 days from the
     publication in the Pennsylvania Bulletin under § 1202(b)(27)
     (relating to general and specific powers) of the application or
     licensure of the executive-level public employee, public
     official, party officer or immediate family member, whichever
     occurs earlier, to divest the financial interest. The Ethics
     Commission may, for good cause, extend the time period under
     this subsection.
        (a.5)  Ethics Commission.--The Ethics Commission shall
     publish a list of all State, county, municipal and other
     government positions that meet the definitions of "public
     official" or "executive-level public employee" under subsection
     (b). The Office of Administration shall assist the Ethics
     Commission in the development of the list, which shall be
     published in the Pennsylvania Bulletin biennially and on the
     board's website. Upon request, each public official shall have a
     duty to provide the Ethics Commission with adequate information
     to accurately develop and maintain the list. The Ethics
     Commission may impose a civil penalty under 65 Pa.C.S. § 1109(f)
     (relating to penalties) upon any public official or executive-
     level public employee who fails to cooperate with the Ethics
     Commission under this subsection.
        (b)  Definitions.--As used in this section, the following
     words and phrases shall have the meanings given to them in this
     subsection:
        "Executive-level public employee."  The term shall include
     the following:
            (1)  Deputy Secretaries of the Commonwealth and the
        Governor's Office executive staff.
            (2)  An employee of the Executive Branch with
        discretionary power which may affect or influence the outcome
        of a State agency's action or decision and who is involved in
        the development of regulations or policies relating to a
        licensed entity or who is involved in other matters under
        this part. The term shall include an employee with law
        enforcement authority.
            (3)  An employee of a county or municipality with
        discretionary powers which may affect or influence the
        outcome of the county's or municipality's action or decision
        and who is involved in the development of law, regulation or
        policy relating to a licensed entity or who is involved in
        other matters under this part. The term shall include an
        employee with law enforcement authority.
            (4)  An employee of a department, agency, board,
        commission, authority or other governmental body not included
        in paragraph (1), (2) or (3) with discretionary power which
        may affect or influence the outcome of the governmental
        body's action or decision and who is involved in the
        development of regulation or policy relating to a licensed
        entity or who is involved in other matters under this part.
        The term shall include an employee with law enforcement
        authority.
        "Financial interest."  Owning or holding, or being deemed to
     hold, debt or equity securities or other ownership interest or
     profits interest. A financial interest shall not include any
     debt or equity security, or other ownership interest or profits
     interest, which is held or deemed to be held in any of the
     following:
            (1)  A blind trust over which the executive-level public
        employee, public official, party officer or immediate family
        member thereof may not exercise any managerial control or
        receive income during the tenure of office and the period
        under subsection (a). The provisions of this paragraph shall
        apply only to blind trusts established prior to the effective
        date of this paragraph.
            (2)  Securities that are held in a pension plan, profit-
        sharing plan, individual retirement account, tax-sheltered
        annuity, a plan established pursuant to section 457 of the
        Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
        1 et seq.) or any successor provision deferred compensation
        plan whether qualified or not qualified under the Internal
        Revenue Code of 1986 or any successor provision or other
        retirement plan that:
                (i)  is not self-directed by the individual; and
                (ii)  is advised by an independent investment adviser
            who has sole authority to make investment decisions with
            respect to contributions made by the individual to these
            plans.
            (3)  A tuition account plan organized and operated
        pursuant to section 529 of the Internal Revenue Code of 1986
        (Public Law 99-514, 26 U.S.C. § 529) that is not self-
        directed by the individual.
            (4)  A mutual fund where the interest owned by the mutual
        fund in a licensed entity does not constitute a controlling
        interest as defined in this part.
        "Immediate family."  A spouse, minor child or unemancipated
     child.
        "Law enforcement authority."  The power to conduct
     investigations of or to make arrests for criminal offenses.
        "Party officer."  A member of a national committee; a
     chairman, vice chairman, secretary, treasurer or counsel of a
     State committee or member of the executive committee of a State
     committee; a county chairman, vice chairman, counsel, secretary
     or treasurer of a county committee in which a licensed facility
     is located; or a city chairman, vice chairman, counsel,
     secretary or treasurer of a city committee of a city in which a
     licensed facility is located.
        "Public official."  The term shall include the following:
            (1)  The Governor, Lieutenant Governor, a member of the
        Governor's cabinet, Treasurer, Auditor General and Attorney
        General of the Commonwealth.
            (2)  A member of the Senate or House of Representatives
        of the Commonwealth.
            (3)  An individual elected or appointed to any office of
        a county or municipality that directly receives a
        distribution of revenue under this part.
            (4)  An individual elected or appointed to a department,
        agency, board, commission, authority or other governmental
        body not included in paragraph (1), (2) or (3) that directly
        receives a distribution of revenue under this part.
            (5)  An individual elected or appointed to a department,
        agency, board, commission, authority, county, municipality or
        other governmental body not included in paragraph (1), (2) or
        (3) with discretionary power which may influence or affect
        the outcome of an action or decision and who is involved in
        the development of regulation or policy relating to a
        licensed entity or who is involved in other matters under
        this part.
     The term does not include a member of a school board or an
     individual who held an uncompensated office with a governmental
     body prior to January 1, 2006, and who no longer holds the
     office as of January 1, 2006. The term includes a member of an
     advisory board or commission which makes recommendations
     relating to a licensed facility.
     (Nov. 1, 2006, P.L.1243, No.135, eff. imd.)

        Cross References.  Section 1512 is referred to in sections
     1201, 1305, 1325 of this title.

Last modified: November 27, 2007