Fair Government Contracts Act
The Fair Government Contracts Model Act reduces pay-to-play risk by restricting political contributions from entities receiving public contracts or government financial benefits to officials who control or oversee those funds. The Act applies to executives and affiliated committees, requires disclosure and certification, and establishes penalties for violations. It separates taxpayer dollars from political fundraising to strengthen trust and fairness in contracting.
Key Provisions
Pay-to-Play Contribution Ban. Prohibits political contributions tied to officials with authority over contracts or subsidies.
Applies Across Government Levels. Covers state agencies and political subdivisions, including local governments and school districts.
Extended Coverage. Applies to executives, major owners, and affiliated political committees.
Disclosure and Certification. Requires applicants to certify compliance and disclose recent contributions.
Enforcement and Transparency. Establishes penalties, disqualification authority, and public reporting.
Model Language
Section 1. Short Title. This Act shall be known and may be cited as the “Fair Government Contracts Act.”
Section 2. Definitions. As used in this Act:
(a) “Covered entity” means any individual or legal entity that:
(1) Is a party to one or more contracts with the state or a political subdivision with an aggregate value exceeding a threshold established by statute or regulation within a calendar year; or
(2) Has received, is receiving, or is applying to receive a grant, loan, tax credit, tax abatement, subsidy, or economic development incentive from the state or a political subdivision.
(b) “Political subdivision” means any county, municipality, township, school district, special district, or other local governmental entity created under state law.
(c) “Covered official” means any elected official, agency head, or candidate for an office who has authority to approve, administer, influence, or oversee contracts or public financial benefits awarded by the state or a political subdivision.
(d) “Political contribution” means any contribution, donation, loan, advance, or thing of value made for the purpose of influencing the nomination or election of a candidate, or supporting or opposing a ballot measure, as defined under applicable campaign finance law.
Section 3. Prohibited Contributions.
(a) A covered entity shall not make, solicit, or arrange a political contribution to a covered official during any of the following periods: (1) The twelve months preceding the award or approval of a covered contract or public financial benefit; (2) The duration of the contract or benefit; or (3) The twelve months following the expiration, completion, or termination of the contract or benefit.
(b) The prohibitions in subsection (a) shall apply to: (1) Officers, directors, partners, or managerial employees of the covered entity; (2) Individuals owning or controlling a significant ownership interest in the covered entity; and (3) Any political committee established, financed, maintained, or controlled by the covered entity or such individuals.
(c) Nothing in this Act shall prohibit contributions to candidates or committees that do not have authority over the awarding or oversight of the covered contract or benefit.
Section 4. Certification and Disclosure.
(a) Each applicant for a covered contract or public financial benefit shall submit to the administering agency: (1) A written certification, under penalty of perjury, affirming compliance with this Act; and (2) A disclosure of political contributions made by the covered entity and covered individuals within the preceding twenty-four months.
(b) Failure to submit a complete certification or disclosure shall render the application incomplete and ineligible for approval.
Section 5. Enforcement and Penalties.
(a) A violation of this Act may result in one or more of the following: (1) Civil penalties; (2) Termination or voiding of the affected contract or benefit; (3) Disqualification from receiving contracts or public financial benefits for a specified period.
(b) The designated ethics or enforcement agency shall have authority to investigate alleged violations, issue subpoenas, and impose penalties consistent with due process.
Section 6. Transparency and Public Access.
(a) The administering agency shall maintain a publicly accessible database containing: (1) Covered contracts and public financial benefits awarded; (2) Certifications and disclosures filed under this Act; (3) Enforcement actions and penalties imposed.
(b) Information shall be published in a searchable and regularly updated format.
Section 7. Severability. If any provision of this Act or its application is held invalid, the remainder of the Act shall remain in effect.
Section 8. Effective Date. This Act shall take effect on [insert date] and apply to contracts, public financial benefits, and political contributions occurring on or after that date.