SENATE DOCKET, NO. 1185        FILED ON: 1/20/2011

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1577

The Commonwealth of Massachusetts

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PRESENTED BY:

James B. Eldridge

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act restoring public confidence in government by eliminating "pay-to-play" opportunities.

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PETITION OF:

SENATE DOCKET, NO. 1185        FILED ON: 1/20/2011

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1577

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE SENATE, NO. 347 OF 2009-2010.]

The Commonwealth of Massachusetts

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In the Year Two Thousand Eleven

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An Act restoring public confidence in government by eliminating "pay-to-play" opportunities.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

      SECTION 1.  This Act may be cited as the “Lobbyist and State Contractor Political Responsibility Act of 2011”

      SECTION 2.  Chapter 55 of the General Laws is hereby amended by inserting after section 13 the following two sections:-

      Section 13A.  (a) No legislative or executive agent, as defined by section 39 of chapter 3, shall directly or indirectly make, solicit or receive any contribution, or coordinate contributions for: (1) any candidate or candidates for governor, lieutenant governor, governor’s council, attorney general, state secretary, auditor, treasurer, district attorney, state senator or state representative; or (2) any political committee organized to promote any such candidate.  This section shall not prevent these legislative or executive agents from being members of political organizations or political committees. The soliciting or receiving of any gift, payment, contribution, assessment, subscription or promise of money or other thing of value by a non-elected political committee organized to promote the candidacy for public office of any of these legislative or executive agents shall not be considered a direct or indirect solicitation or receipt of a contribution by such a legislative or executive agent.

      (b) No legislative or executive agent, as defined by section 39 of chapter 3, shall make, or promise, expressly or impliedly, to make any independent expenditure or electioneering communication in support of or opposition to any candidate or candidates for governor, lieutenant governor, governor’s council, attorney general, state secretary, auditor, treasurer, district attorney, state senator or state representative.

      (c) Violation of any provision of this section shall be punished by imprisonment for not more than one year or by a fine of not more than $10,000.

      Section 13B. (a) As used in this section, the following terms shall have the following meanings:

      (1) “Quasi-public agency” shall mean any authority or entity established by the General Court to serve  a public purpose including, but not limited to, Bay State Skills Corporation, Boston Metropolitan District, Centers of Excellence Corporation, Community Economic Development Assistance Corporation, Community Development Finance Corporation, Government Land Bank, Massachusetts Bay Transportation Authority, Massachusetts Business Development Corporation, Massachusetts Convention Center Authority, Massachusetts Corporations for Educational Telecommunications, Massachusetts Educational Loan Authority, Massachusetts Health and Educational Facilities Authority, Massachusetts Horse Racing Authority, Massachusetts Housing Finance Agency, Massachusetts Industrial Finance Agency, Massachusetts Industrial Service Program, Massachusetts Port Authority, Massachusetts Product Development Corporation, Massachusetts Technology Development Corporation, Massachusetts Technology Park Corporation, Massachusetts Turnpike Authority, Massachusetts Water Resources Authority, Pension Reserves Investment Management Board, State College Building Authority, Southeastern Massachusetts University Building Authority, Thrift Institutions Fund for Economic Development, University of Lowell Building Authority, University of Massachusetts Building Authority, and the Water Pollution Abatement Trust

      (2) “State agency” shall mean any office, department, board, council, commission, institution or other agency in the executive, legislative or judicial branch of state government.

      (3) “State contract” shall mean any agreement or contract with the state or any state agency or any quasi-public agency for: (i) the rendition of personal services; (ii) the furnishing of any material, supplies or equipment; (iii) the construction, alteration or repair of any public building or public work; (iv) the acquisition, sale or lease of any land or building; (v) a licensing arrangement; or (vi) a grant, loan or loan guarantee.

      (4) “State contractor” shall mean any individual, group, association, corporation or other entity that enters into a state contract. Such person, business entity or nonprofit organization shall be deemed to be a state contractor until the termination of said contract. “State contractor” does not include a municipality or any other political subdivision of the state, or an employee in the executive, legislative or judicial branch of state government or a quasi-public agency, whether in the classified or unclassified service and full or part-time, in such person's capacity as a state or quasi-public agency employee.

      (5) “Prospective state contractor” shall mean a any individual, group, association, corporation or other entity that submits a bid in response to a bid solicitation by the state, a state agency or a quasi-public agency, or a proposal in response to a request for proposals by the state, a state agency or a quasi-public agency, until the contract has been entered into. “Prospective state contractor” does not include a municipality or any other political subdivision of the state, or an employee in the executive, legislative or judicial branch of state government or a quasi-public agency, whether in the classified or unclassified service and full or part-time, in such person's capacity as a state or quasi-public agency employee.

      (6) “Principal of a state contractor” shall mean: (i) any individual who is a member of the board of directors of, or has an ownership interest of seven and a half per cent or more in, a state contractor, except for an individual who is a member of the board of directors of a nonprofit organization qualified under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended; (ii) any individual who is employed by a state contractor as president, treasurer or executive or senior vice president; (iii) any employee of any state contractor who has managerial or discretionary responsibilities with respect to a state contract; (iv) the spouse or any dependent child of an individual described in this paragraph, or (v) any political committee established by or on behalf of an individual described in this paragraph.

      (7) “Principal of a prospective state contractor” shall mean: (i) any individual who is a member of the board of directors of, or has an ownership interest of seven and a half per cent or more in, a prospective state contractor, except for an individual who is a member of the board of directors of a nonprofit organization qualified under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended; (ii) any individual who is employed by a prospective state contractor as president, treasurer or executive or senior vice president; (iii) any employee of any prospective state contractor who has managerial or discretionary responsibilities with respect to a state contract; (iv) the spouse or any dependent child of an individual described in this paragraph, or (v) any political committee established by or on behalf of an individual described in this paragraph.

      (b) No state contractor, prospective state contractor, principal of a state contractor or principal of a prospective state contractor, shall, during the period between the initial bid solicitation by the state to the termination of the contract: 

(1) Directly or indirectly make any contribution or promise expressly or impliedly to make any contribution to any political party, political committee or candidate, or to any person for any political purpose or use;

(2) Knowingly solicit any contribution from any person for any purpose during any period;

(3) Coordinate contributions to any political party, political committee or candidate, or to any person for any political purpose or use; or

(4) Promise, expressly or impliedly, to make any independent expenditure or electioneering communication in support of, or opposition to, any candidate, political party or political committee.

      (c) If a state contractor or principal of a state contractor makes or solicits a contribution or makes an independent expenditure or electioneering communication prohibited under subsection (b) of this section, the contracting state agency or quasi-public agency shall void the existing contract with the state contractor, and no state agency or quasi-public agency shall award the state contractor a state contract or an extension or an amendment to a state contract for one year after the election for which any such contribution is made or solicited.  Each state contract shall include the provisions of subsection (b) and this subsection of this section as part of the conditions of the contract.

      (d) If a prospective state contractor or principal of a prospective state contractor makes or solicits a contribution or makes an independent expenditure or electioneering communication prohibited under subsection (b) of this section, no state agency or quasi-public agency shall award the prospective state contractor the contract described in the bid solicitation or request for proposals, or any other state contract for one year after the election for which such independent expenditure or electioneering communication is made or solicited. Each state agency and quasi-public agency shall include the provisions of subsection (b) and this subparagraph of this section in each bid solicitation and request for proposals issued by the agency. The chief executive officer of each prospective state contractor shall: (i) inform each individual described in paragraph (7) of subsection (a) of this section with regard to said prospective state contractor concerning the provisions of subsection (b) and this subsection; (ii) certify in a sworn statement that no such individual shall make or solicit a contribution in violation of the provisions of subsection (b) and this subsection; and (iii) acknowledge in writing that if any such contribution is made or solicited, the prospective state contractor shall be disqualified from being awarded the contract described in the bid solicitation or request for proposals or being awarded any other state contract for one year after the election for which such contribution is made or solicited.

      (e) No candidate or political committee may directly or indirectly solicit contributions from a state contractor, prospective state contractor, principal of a state contractor or principal of a prospective state contractor.

      (f) The provisions of this section shall not restrict a principal of a state contractor or principal of a prospective state contractor from soliciting contributions for that principal's own campaign or any political committee organized to promote that principal’s own campaign. 

      (g) Each state agency and quasi-public agency shall prepare and forward to the Office of Campaign and Political Finance, on a form prescribed by the director: (i) a list of the state contracts for which the agency is a party; (ii) a list of the state contractors, and principals of state contractors associated with those state contractors, for those contracts for which the agency is a party; and (iii) a list of prospective state contractors, and the principals of prospective state contractors associated with those prospective state contractors, that have submitted a bid or proposal in response to a request for bids or proposals by the agency.  Each state agency and quasi-public agency shall forward to that Office, on a form prescribed by the director, any changes, additions or deletions to the lists.

      (h) The Office of Campaign and Political Finance shall: (i) compile a master list of state contractors, prospective state contractors, principals of state contractors and principals of prospective state contractors for all state agencies and quasi-public agencies, based on the information received under subsection (g) of this section; (ii) publish the master list on the Office's web site; and (iii) provide copies of the master list to any campaign treasurer upon request. The office shall update the master list every three months. Any campaign treasurer who acts in reliance on such master list in good faith shall have a complete defense in any action against the campaign treasurer for depositing a contribution in violation of subsection (e) of this section.

      (i) Violation of any provision of this section shall be punished by imprisonment for not more than one year or by a fine of not more than $10,000.