Bill > H2825

This bill, titled "Relative to prohibiting pay-to-play schemes," aims to prevent "pay-to-play" practices in government contracting, particularly concerning investment advisory services. It defines key terms such as "contribution" (any gift or loan made to influence an election or for transition expenses), "executive officer" (a high-level policy-making individual within a company), "government entity" (any state or local government body), "investment adviser" (a firm providing investment advice to a government entity, including to private investment companies that serve government entities), "official" (an elected official or someone who can influence the use of an investment adviser), "private investment company" (a specific type of investment fund), and "solicitor" (someone who refers clients to an investment adviser). The bill makes it illegal for an investment adviser to provide services to a government entity for compensation if a contribution has been made to an official of that entity by the adviser, its executives, or solicitors within the preceding two years. It also prohibits investment advisers from soliciting or coordinating such contributions and prevents government officials from soliciting or accepting contributions from investment advisers before awarding them contracts. Exceptions exist for small contributions made by individuals to officials they can vote for, and the Office of Campaign and Political Finance can grant exemptions under certain conditions, such as if the adviser had procedures in place to prevent violations and took steps to recover contributions. Violations can result in fines or imprisonment for both the investment adviser and the government official involved.