[Congressional Record Volume 157, Number 65 (Thursday, May 12, 2011)]
[Senate]
[Pages S2954-S2955]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KIRK (for himself, Mr. Menendez, Mr. Lautenberg, and Mr. 
        Durbin):
  S. 994. A bill to amend title 23, United States Code, to protect 
States that have in effect laws or orders with respect to pay-to-play 
reform, and for other purposes; to the Committee on Environment and 
Public Works.
  Mr. KIRK. Mr. President, I am pleased to join my colleagues Senators 
Menendez, Lautenberg and Durbin in introducing the State Ethics Law 
Protection Act. This legislation would ensure that States are allowed 
to pass meaningful ethics reform laws without being penalized by the 
Federal government.
  Current law allows the Federal Highway Administration, FHWA, to 
withhold Federal highway funds from States that ban pay-to-play 
contracting. At least 9 States and 60 cities have enacted anti pay-to-
play laws. These laws vary widely, but they generally limit political 
contributions from entities doing business with the state. The FHWA 
claims that these laws could reduce the number of potential bidders, 
thus violating an unrestricted bidding requirement set forth in Federal 
law. FHWA has selectively threatened to withhold money to certain 
States. In my home State of Illinois, the State legislature was forced 
to change its pay-to-play law just days after our former governor was 
indicted for allegedly engaging in numerous pay-to-play schemes. 
Illinois was forced to create a giant loophole in the ethics law so as 
not to lose out on millions in Federal transportation funds.
  States have the right to ensure their contracting processes adhere to 
the highest ethical standards and offer the best protection to the 
taxpayers. Selected Federal intervention is an unwarranted and 
unhelpful power grab by Federal regulators. Pay-to-play laws are 
designed to enhance, not undermine, competitive bidding. They are 
designed to ensure that the competitive bidding process is open and 
fair, not motivated by political considerations.
  Our legislation would allow States to pass ethics laws that are in 
their best interests, without fear of Federal retaliation, by amending 
FHWA's contracting requirements to explicitly provide that no State or 
locality shall be considered in violation of the competitive bidding 
requirements based on political contributions. The legislation does not 
prescribe any new requirements for states, nor does it advocate for the 
passage of any single ethics law. The bill simply allows States to 
enact meaningful anti-corruption laws if they choose to do so. As 
Federal budgets tighten in these challenging economic times, it is 
imperative that we not hamstring States even further by denying them 
Federal funds for trying to limit public corruption.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 994

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``State Ethics Law Protection 
     Act of 2011''.

     SEC. 2. PAY-TO-PLAY REFORM.

       Section 112 of title 23, United States Code, is amended by 
     adding at the end the following:

[[Page S2955]]

       ``(h) Pay-To-Play Reform.--A State transportation 
     department shall not be considered to have violated a 
     requirement of this section solely because the State in which 
     that State transportation department is located, or a local 
     government within that State, has in effect a law or an order 
     that limits the amount of money an individual or entity that 
     is doing business with a State or local agency with respect 
     to a Federal-aid highway project may contribute to a 
     political party, campaign, candidate, or elected official.''.
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