FOR IMMEDIATE RELEASE
February 10, 2009
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Senator Pileggi: Bill Would Prohibit Contingency Fees for Lobbying on Procurement Issues

Senate Majority Leader Dominic Pileggi (R-9) has introduced legislation to prohibit lobbyists from charging contingency fees for work done to obtain state grants, loans, and other Commonwealth funds, or to win contracts under the state's Procurement Code.

"The goal of this bill is to ensure that state grants designed to support needed capital investments and other economic development projects are used for those purposes," said Sen. Pileggi. "Any payment to lobbyists should by covered by the applicant's administrative budget, not the grant itself."

Current law prohibits lobbyists from charging contingency fees based on whether or not a bill becomes law, whether or not an amendment is adopted, or the occurrence or nonoccurrence of an administrative action.

However, contingency fees are currently legal for lobbyists who help municipalities, school districts and other local agencies seek grants, loans, capital funds, or other state funds. Contingency fees can also be charged by lobbyists who help companies win contracts for services or products under the state's Procurement Code.

"Because this is already the rule for most lobbying activities, many people assume that contingency fees for lobbying are prohibited across the board," Sen. Pileggi said. "That is not the case, but it should be – and this bill would make the rule uniform."

More information about state issues can be found on Sen. Pileggi's web site, www.senatorpileggi.com.

CONTACT

Erik Arneson
earneson@pasen.gov
(717) 787-4712