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IN THE SENATE
SENATE BILL NO. 1244
BY WERK, BILYEU, BOCK, LEFAVOUR, SCHMIDT, STENNETT
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AN ACT
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RELATING TO CONTRIBUTIONS TO STATE ELECTED OFFICIALS; TO PROVIDE A SHORT TI-
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TIONS ON STATE CONTRACTORS OR PROSPECTIVE STATE CONTRACTORS, TO PROVIDE
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PROCEDURES, TO PROVIDE FOR NOTICE AND TO PROVIDE PROHIBITIONS ON STATE
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FOR INFORMATION PROVIDED TO THE SECRETARY OF STATE AND TO PROVIDE FOR
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RECT STATUTORY REFERENCE.
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SECTION 1. SHORT TITLE. This act shall be known as the "Pay to Play Act."
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hereby amended by the addition thereto of a NEW SECTION, to be known and des-
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67-5744A. DEFINITIONS. (1) As used in this section:
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(a) "Political subdivision" has the same meaning as provided in section
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(b) "State agency" means any office, department, board, council, com-
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mission, institution or other agency in the executive or legislative
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branch of state government.
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(c) "State contract" means an agreement or contract with the state or
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any state agency or other political subdivision, let through a procure-
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ment process or otherwise, having a value of fifty thousand dollars
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($50,000) or more, or a combination or series of such agreements or con-
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tracts having a value of one hundred thousand dollars ($100,000) or more
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in a calendar year, for:
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(i) The rendition of services;
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(ii) The furnishing of any goods, material, supplies, equipment
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or any items of any kind;
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(iii) The construction, alteration or repair of any public build-
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ing or public work;
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(iv) The acquisition, sale or lease of any land or building;
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(v) A licensing arrangement; or
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(vi) A grant, loan or loan guarantee.
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"State contract" does not include any agreement or contract with the
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state, any state agency or other political subdivision that is exclu-
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sively federally funded, an education loan, a loan to an individual for
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other than commercial purposes or any agreement or contract between the
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(d) "State contractor" means a person, business entity or nonprofit
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organization that enters into a state contract. Such person, business
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entity or nonprofit organization shall be deemed to be a state contrac-
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tor until December 31st of the year in which such contract terminates.
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"State contractor" does not include a municipality or any other polit-
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ical subdivision of the state, including any entities or associations
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duly created by the municipality or other political subdivision exclu-
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sively amongst themselves to further any purpose authorized by statute
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or ordinance, or an employee in the executive or legislative branch of
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state government or a political subdivision, whether in the classified
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or unclassified service and full-time or part-time, and only in such
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person's capacity as a state or political subdivision employee.
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(e) "Prospective state contractor" means a person, business entity or
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nonprofit organization that submits a response to a state contract so-
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licitation by the state, a state agency or a political subdivision, or
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a proposal in response to a request for proposals by the state, a state
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agency or a political subdivision, until the contract has been entered
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into. "Prospective state contractor" does not include a municipality
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or any other political subdivision of the state, including any entities
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or associations duly created by the municipality or political subdivi-
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sion exclusively amongst themselves to further any purpose authorized
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by statute or charter, or an employee in the executive or legislative
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branch of state government or a political subdivision, whether in the
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classified or unclassified service and full-time or part-time, and only
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in such person's capacity as a state or political subdivision employee.
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(f) "Principal of a state contractor" or "principal of a prospective
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state contractor" means:
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(i) Any individual who is a member of the board of directors of, or
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has an ownership interest of five percent (5%) or more in, a state
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contractor or prospective state contractor, which is a business
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entity, except for an individual who is a member of the board of di-
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rectors of a nonprofit organization;
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(ii) An individual who is employed by a state contractor or
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prospective state contractor, which is a business entity, as pres-
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ident, treasurer or executive vice president;
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(iii) An individual who is the chief executive officer of a state
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contractor or prospective state contractor, which is not a busi-
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ness entity, or if a state contractor or prospective state con-
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tractor has no such officer, then the officer who duly possesses
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comparable powers and duties;
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(iv) An officer or an employee of any state contractor or prospec-
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tive state contractor who has managerial or discretionary respon-
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sibilities with respect to a state contract;
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(v) The spouse or a dependent child who is eighteen (18) years of
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age or older of an individual described in this paragraph; or
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(vi) A political committee established or controlled by an indi-
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vidual described in this paragraph (f) or the business entity or
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nonprofit organization that is the state contractor or prospec-
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tive state contractor.
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(g) "Dependent child" means a child residing in an individual's house-
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hold who may legally be claimed as a dependent on the federal income tax
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return of such individual.
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(h) "Managerial or discretionary responsibilities with respect to a
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state contract" means having direct, extensive and substantive respon-
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sibilities with respect to the negotiation of the state contract and not
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peripheral, clerical or ministerial responsibilities.
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(i) "Rendition of services" means the provision of any service to a
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state agency or quasi-public agency in exchange for a fee, remuneration
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or compensation of any kind from the state or through an arrangement
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with the state.
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(j) "State contract solicitation" means a request by a state agency or
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other political subdivision, in whatever form issued, including, but
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not limited to, an invitation to bid, request for proposals, request
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for information or request for quotes, inviting bids, quotes or other
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(k) "Subcontractor" means any person, business entity or nonprofit or-
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ganization that contracts to perform part or all of the obligations of
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a state contractor's state contract. Such person, business entity or
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nonprofit organization shall be deemed to be a subcontractor until De-
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cember 31st of the year in which the subcontract terminates. "Subcon-
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tractor" does not include:
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(i) A municipality or any other political subdivision of the
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state, including any entities or associations duly created by the
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municipality or political subdivision exclusively amongst them-
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selves to further any purpose authorized by statute or charter; or
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(ii) An employee in the executive or legislative branch of state
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government or a political subdivision, whether in the classified
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or unclassified service and full-time or part-time, and only in
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such person's capacity as a state or political subdivision em-
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ployee.
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(l) "Principal of a subcontractor" means:
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(i) Any individual who is a member of the board of directors of,
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or has an ownership interest of five percent (5%) or more in, a sub-
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contractor, which is a business entity, except for an individual
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who is a member of the board of directors of a nonprofit organiza-
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tion;
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(ii) An individual who is employed by a subcontractor, which is a
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business entity, as president, treasurer or executive vice presi-
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dent;
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(iii) An individual who is the chief executive officer of a sub-
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contractor, which is not a business entity, or if a subcontractor
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has no such officer, then the officer who duly possesses compara-
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ble powers and duties;
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(iv) An officer or an employee of any subcontractor who has man-
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agerial or discretionary responsibilities with respect to a sub-
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contract with a state contractor;
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(v) The spouse or a dependent child who is eighteen (18) years of
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age or older of an individual described in this paragraph; or
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(vi) A political committee established or controlled by an indi-
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vidual described in this paragraph or the business entity or non-
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profit organization that is the subcontractor.
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(2)(a) No state contractor, prospective state contractor, principal
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of a state contractor or principal of a prospective state contractor,
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with regard to a state contract or a state contract solicitation with or
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from a state agency in the executive branch or a political subdivision,
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shall make a contribution to, or, on and after January 1, 2013, know-
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ingly solicit contributions from the state contractor's or prospective
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state contractor's employees or from a subcontractor or principals of
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the subcontractor on behalf of:
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(i) An exploratory committee or candidate committee established
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by a candidate for nomination or election to the office of gov-
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ernor, lieutenant governor, attorney general, state controller,
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secretary of state or state treasurer;
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(ii) A political committee authorized to make contributions or
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expenditures to or for the benefit of such candidates; or
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(iii) A political party committee.
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(b) No state contractor, prospective state contractor, principal of a
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state contractor or principal of a prospective state contractor, with
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regard to a state contract or a state contract solicitation with or from
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the state legislature, shall make a contribution to, or, on and after
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January 1, 2013, knowingly solicit contributions from the state con-
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tractor's or prospective state contractor's employees or from a subcon-
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tractor or principals of the subcontractor on behalf of:
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(i) An exploratory committee or candidate committee established
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by a candidate for nomination or election to the office of state
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senator or state representative;
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(ii) A political committee authorized to make contributions or
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expenditures to or for the benefit of such candidate; or
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(iii) A party committee.
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(c) If a state contractor or principal of a state contractor makes or
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solicits a contribution as prohibited under paragraph (a) or (b) of this
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subsection, as determined by the secretary of state, the contracting
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state agency or other political subdivision, in the case of a state con-
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tract executed on or after January 1, 2013, shall void the existing con-
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tract with said contractor, and no state agency or other political sub-
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division shall award the state contractor a state contract or an exten-
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sion or an amendment to a state contract for one (1) year after the elec-
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tion for which such contribution is made or solicited unless the secre-
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tary of state determines that mitigating circumstances exist concern-
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ing such violation. No violation of the prohibitions contained in para-
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graph (a) or (b) of this subsection shall be deemed to have occurred if,
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and only if, the improper contribution is returned to the principal by
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the later of thirty (30) days after receipt of such contribution by the
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recipient committee treasurer or the filing date that corresponds with
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the reporting period in which such contribution was made; and
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(d) If a prospective state contractor or principal of a prospective
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state contractor makes or solicits a contribution as prohibited under
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paragraph (a) or (b) of this subsection, as determined by the secretary
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of state, no state agency or other political subdivision shall award
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the prospective state contractor the contract described in the state
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contract solicitation or any other state contract for one (1) year after
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the election for which such contribution is made or solicited unless
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the secretary of state determines that mitigating circumstances exist
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administration shall provide notification of the provisions of this
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subsection and paragraphs (a) and (b) of this subsection on its website.
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(e) The secretary of state shall make available to each state agency and
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other political subdivisions a written notice advising state contrac-
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tors and prospective state contractors of the contribution and solici-
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tation prohibitions contained in paragraphs (a) and (b) of this subsec-
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tion. Such notice shall:
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(i) Direct each state contractor and prospective state contrac-
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tor to inform each individual described in paragraph (f) of sub-
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section (1) of this section, with regard to said state contrac-
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tor or prospective state contractor, about the provisions of para-
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graph (a) or (b) of this subsection, whichever is applicable, and
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this paragraph (e);
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(ii) Inform each state contractor and prospective state contrac-
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tor of the civil and criminal penalties that could be imposed for
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violations of such prohibitions if any such contribution is made
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or solicited;
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(iii) Inform each state contractor and prospective state contrac-
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tor that, in the case of a state contractor, if any such contribu-
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tion is made or solicited, the contract may be voided;
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(iv) Inform each state contractor and prospective state contrac-
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tor that, in the case of a prospective state contractor, if any
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such contribution is made or solicited, the contract described in
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the state contract solicitation shall not be awarded, unless the
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secretary of state determines that mitigating circumstances exist
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concerning such violation; and
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(v) Inform each state contractor and prospective state contrac-
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tor that the state will not award any other state contract to any-
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one found in violation of such prohibitions for a period of one (1)
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year after the election for which such contribution is made or so-
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licited, unless the secretary of state determines that mitigating
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circumstances exist concerning such violation. Each state agency
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and other political subdivision shall distribute such notice to
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the chief executive officer of its state contractors and prospec-
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tive state contractors, or an authorized signatory to a state con-
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tract, and shall obtain a written acknowledgment of the receipt of
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such notice.
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(3) (a) On and after January 1, 2013, neither the governor, lieutenant
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governor, attorney general, state controller, secretary of state,
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state treasurer, any candidate for any such office nor any agent of any
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such official or candidate shall knowingly, willfully or intentionally
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solicit contributions on behalf of an exploratory committee or candi-
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date committee established by a candidate for nomination or election
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to any public office, a political committee or a party committee, from
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a person who he or she knows is prohibited from making contributions,
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including a principal of a state contractor or prospective state con-
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tractor with regard to a state contract solicitation with or from a
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state agency in the executive branch or other political subdivision.
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ture, any candidate for any such office nor any agent of any such offi-
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cial or candidate shall knowingly, willfully or intentionally solicit
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contributions on behalf of an exploratory committee or candidate com-
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mittee established by a candidate for nomination or election to any pub-
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lic office, a political committee or a party committee, from a person
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who he or she knows is prohibited from making contributions, including
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a principal of a state contractor or prospective state contractor with
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regard to a state contract solicitation with or from the state legisla-
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ture.
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(c) Any person who violates the provisions of this subsection (3)
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shall be liable for a civil fine not to exceed two hundred fifty dollars
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($250).
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(4) The provisions of this section shall not apply to the campaign of a
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principal of a state contractor or prospective state contractor or to a prin-
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cipal of a state contractor or prospective state contractor who is an elected
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public official.
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(5) Each state contractor and prospective state contractor shall make
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reasonable efforts to comply with the provisions of this section. If the
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secretary of state determines that a state contractor or prospective state
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contractor has failed to make reasonable efforts to comply with this sec-
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tion, the secretary of state is hereby authorized to impose civil penalties
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against such state contractor or prospective state contractor. Such fine
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hereby amended by the addition thereto of a NEW SECTION, to be known and des-
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67-5744B. INFORMATION PROVIDED TO SECRETARY OF STATE. (1) Not later
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than thirty (30) days after January 1, 2013, each state agency and other po-
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litical subdivisions shall prepare and forward to the secretary of state, on
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a form prescribed by the secretary of state, a list of the names of the state
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contractors and prospective state contractors with which such agency or po-
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litical subdivision is a party to a contract, and state contract solicita-
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tions issued by the agency or political subdivision. Not less than once per
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month, each state agency and other political subdivision shall forward to
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the secretary of state, on a form prescribed by the secretary of state, any
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changes, additions or deletions to said lists not later than the fifteenth
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day of the month.
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(2) Not later than sixty (60) days after January 1, 2013, the secretary
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of state shall:
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(a) Compile a master list of state contractors and prospective state
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contractors for all state agencies and other political subdivisions,
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based on the information received pursuant to subsection (1) of this
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section; and
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(b) Publish the master list on the secretary of state's internet web-
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site and on the division of purchasing's internet website; and
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(c) Provide copies of the master list to campaign treasurers upon re-
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quest. The secretary of state shall update the master list every month.
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amended to read as follows:
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67-6625. VIOLATIONS -- CIVIL FINE -- MISDEMEANOR PENALTY -- PROSE-
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CUTION -- LIMITATION -- VENUE. (a) Any person who violates the provisions
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of section 67-5744A, 67-6603 through 67-6614A, 67-6617, 67-6619, 67-6620,
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civil fine not to exceed two hundred fifty dollars ($250) if an individual,
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and not more than two thousand five hundred dollars ($2,500) if a person
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other than an individual. The burden of proof for such civil liability shall
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be met by showing a preponderance of the evidence.
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Code, and any person who knowingly and willfully violates section 67-6603
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through 67-6614A, 67-6617, 67-6619, 67-6620, 67-6621(a), 67-6624, 67-6629
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addition to the fines set forth in subsection (a) of this section, may be
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imprisoned for not more than six (6) months or be both fined and imprisoned.
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(c) The attorney general or the appropriate prosecuting attorney may
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prosecute any violations of this act.
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(d) Prosecution for violation of this act must be commenced within two
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(2) years after the date on which the violation occurred.
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(e) Venue for prosecution under the provisions of this chapter shall be
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in the county of residence of the defendant if the defendant is a resident of
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