An “anti-pay-to-play” ordinance up for discussion at Tuesday’s Luzerne County Council work session would limit campaign contributions by businesses interested in no-bid county contracts.
County Councilwoman Kathy Dobash proposed the ordinance after citizen Mark Rabo alerted her to a similar ban in Lehigh County in the Allentown area, according to an email she sent to her council colleagues.
No-bid contracts refer to professional services — architectural, legal, engineering, consulting and management work, for example — that don’t have to be bid out and awarded to the lowest responsible bidder like those for food, paper, uniforms and other goods.
The county publicly seeks proposals for professional services, and county officials have latitude to select companies they deem the best fit for a job, which may not be those charging the lowest price.
Dobash’s ordinance would “protect the procurement process from any outside political or financial influences, often referred to as ‘pay-to-play,” it said.
Under the ordinance, businesses that contribute $250 or more to county elected officials or candidates per year would be ineligible to receive no-bid county contracts over $10,000.
Contributions to three county offices would be covered: the district attorney, controller and 11 county council seats.
Business entities would remain ineligible for no-bid contracts, including working as a subcontractor, for two years following the year of the campaign contribution, it says.
The ordinance includes an expansive list of barred contributions, including those made by:
• An officer, director, controlling partner or controlling shareholder of a business entity and members of their immediate family, excluding unpaid board members of a nonprofit.
• Parent, subsidiary or other affiliated entities of a business.
• A political action committee, or PAC, controlled by the business entity or its affiliates.
• A PAC controlled by an officer, director, controlling shareholder or partner of the business entity.
It takes it a step beyond, saying businesses contributions to a PAC will fall under the ordinance if that PAC turns around and makes contributions or provides financial support to a particular county office holder or group of county candidates.
If a business entity or its controlling individuals host a fundraising event for a county candidate, any contributions raised at that event will be considered contributions by that entity, the proposed ordinance said.
Businesses awarded contracts also must agree to refrain from making more than $250 in county office contributions while they are under contract. If this provision is violated, the county has the option to void the contractor and deem the contractor liable for damages totaling 10 percent of the maximum payments permitted under the contract, it says.
The county council would be responsible for reviewing campaign finance reports and performing compliance checks for the controller and controller candidates. The county controller would handle reviews in the other county offices.
Council members will have authority to waive any requirements in emergency situations or if no eligible business entities are available to perform work after soliciting proposals.
Rabo, of Hazleton, told Dobash many voters approved the county’s customized home rule government because they believed it would help stop corruption.
“This year is the five-year anniversary of home rule. I ask the council to pass this ordinance to ensure accountability and rebuild the public trust that has been lost since the ‘Kids for Cash’ scandal,” Rabo wrote.
