PRINTER'S NO. 1239
No. 1077 Session of 1985
INTRODUCED BY MICHLOVIC, KUKOVICH, LASHINGER, O'DONNELL, ITKIN,
DeWEESE, DAWIDA, PRATT, PISTELLA, FREEMAN, LEVDANSKY,
JOSEPHS, COHEN, BELFANTI, DALEY, BATTISTO, PRESTON, MURPHY
AND VAN HORNE, APRIL 30, 1985
REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 30, 1985
AN ACT
1 Amending the act of June 3, 1937 (P.L.1333, No.320), entitled
2 "An act concerning elections, including general, municipal,
3 special and primary elections, the nomination of candidates,
4 primary and election expenses and election contests; creating
5 and defining membership of county boards of elections;
6 imposing duties upon the Secretary of the Commonwealth,
7 courts, county boards of elections, county commissioners;
8 imposing penalties for violation of the act, and codifying,
9 revising and consolidating the laws relating thereto; and
10 repealing certain acts and parts of acts relating to
11 elections," providing limited Pennsylvania Clean Campaign
12 funding of certain Statewide elections; limiting certain
13 contributions; imposing powers and duties on the Department
14 of State; and providing penalties.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. The act of June 3, 1937 (P.L.1333, No.320), known
18 as the Pennsylvania Election Code, is amended by adding an
19 article to read:
20 ARTICLE XVI-A
21 Pennsylvania Clean Campaign Funding
22 Section 1601-A. Application of Article.--(a) The provisions
23 of this article shall be applicable to candidates for the
1 following State-wide offices who elect to apply for Pennsylvania
2 Clean Campaign funding hereunder:
3 (1) Governor.
4 (2) Lieutenant Governor.
5 (3) Attorney General.
6 (4) Auditor General.
7 (5) State Treasurer.
8 (b) For the purposes of this article insofar as it relates
9 to Pennsylvania Clean Campaign funding of nominated candidates
10 in the general election, a political party's or political body's
11 nominated candidates for Governor and Lieutenant Governor shall
12 be considered as one candidacy and the provisions specifically
13 applicable to the Governor shall be applicable to such combined
14 candidacy.
15 Section 1602-A. Administration.--The provisions of this
16 article shall be administered by the Secretary of the
17 Commonwealth hereinafter referred to as the secretary. The
18 secretary may adopt such rules and regulations as may be
19 necessary for the implementation of this article.
20 Section 1603-A. Pennsylvania Clean Campaign Fund Created.--
21 There is hereby created a special restricted receipts fund in
22 the State Treasury to be known as the "Pennsylvania Clean
23 Campaign Fund." Payments shall be made into said fund pursuant
24 to section 1604-A and disbursements shall be made from said fund
25 only upon the warrant of the Secretary of the Commonwealth and a
26 warrant of the State Treasurer. As much of the moneys in the
27 Pennsylvania Clean Campaign Fund as are necessary to make
28 payments to candidates as provided in this article are
29 appropriated from the Pennsylvania Clean Campaign Fund to the
30 Department of State for the purpose of such payments.
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1 Section 1604-A. Allocation of Certain Tax Proceeds to
2 Pennsylvania Clean Campaign Fund.--Beginning with tax years
3 commencing January 1, 1985, and thereafter, each individual
4 subject to the tax imposed by Article III of the act of March 4,
5 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971,"
6 whose tax liability for any such year is one dollar and fifty
7 cents ($1.50) or more may designate one dollar and fifty cents
8 ($1.50) of his or her personal income taxes to be paid into the
9 Pennsylvania Clean Campaign Fund. In the case of married
10 taxpayers filing a joint return, each spouse may designate one
11 dollar and fifty cents ($1.50) to be paid into the Pennsylvania
12 Clean Campaign Fund if their tax liability is three dollars
13 ($3.00) or more. All such designated tax revenues shall be paid
14 into the Pennsylvania Clean Campaign Fund. The check-off and
15 instructions shall be prominently displayed on the first page of
16 the return form. The instructions shall readily indicate that
17 any such designations neither increase or decrease an
18 individual's tax liability.
19 Section 1605-A. Certification of Moneys in Pennsylvania
20 Clean Campaign Fund.--By June 30 of each year, the State
21 Treasurer shall certify to the secretary the current balance
22 available in the Pennsylvania Clean Campaign Fund.
23 Section 1606-A. Qualification for Pennsylvania Clean
24 Campaign Funding.--(a) Any candidate for State-wide office as
25 described in section 1601-A may apply for Pennsylvania Clean
26 Campaign funding under this article if such candidate meets the
27 contributory thresholds established in subsection (b) and
28 otherwise conforms to the requirements of this article. No
29 candidate shall be obligated to apply for funding hereunder and
30 if any candidate elects not to apply, the provisions of this
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1 article shall be inapplicable to such person and their
2 candidacy. Any candidate electing to receive Pennsylvania Clean
3 Campaign funding must declare his intention to do so and specify
4 the State office for which he is a candidate. Any and all
5 committees authorized to receive contributions or make
6 expenditures for the candidate who has so declared must abide by
7 the provisions of section 1612-A. Any candidate who for any
8 reason has his name withdrawn from the ballot for a State-wide
9 election, after receipt of Pennsylvania Clean Campaign funds,
10 shall return all moneys received to the Pennsylvania Clean
11 Campaign Fund as well as offering back qualifying contributions
12 for that State-wide office.
13 (b) (1) In order to qualify for Pennsylvania Clean Campaign
14 funding in the general election, a candidate must receive
15 subsequent to the date of the primary election but prior to the
16 date of the general election qualifying contributions of the
17 following amounts:
18 Office Qualifying Contributions Required
19 (i) Governor $100,000
20 (ii) Lieutenant Governor 25,000 (for primary only)
21 (iii) State Treasurer 50,000
22 (iv) Auditor General 50,000
23 (v) Attorney General 50,000
24 (2) In order to qualify for Pennsylvania Clean Campaign
25 funding in the primary election, a candidate must receive prior
26 to the date of the primary election, but subsequent to the
27 immediately preceding general election, one-half of the amount
28 specified in clause (1) for the appropriate office.
29 (3) (i) The term "qualifying contribution" shall include
30 any contribution, as defined in section 1621(b), which has all
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1 of the following characteristics:
2 (A) Made by an individual resident of Pennsylvania.
3 (B) Made by a written instrument which indicates the
4 contributor's full name and mailing residence and is not
5 intended to be returned to the contributor or transferred to
6 another political committee or candidate.
7 (ii) If a contributor receives goods or services of value in
8 return for his contribution, the qualifying contribution shall
9 be calculated as the original contribution, minus the fair
10 market value of the goods or services received.
11 (iii) Any contribution by an individual which exceeds one
12 hundred dollars ($100.00) in the aggregate shall be deemed only
13 a one hundred dollar ($100.00) qualifying contribution for the
14 purposes of this section and for the matching payment provisions
15 of section 1607-A.
16 (c) The secretary shall select an auditor pursuant to the
17 provisions of section 1635(a). Each candidate who elects to
18 apply for Pennsylvania Clean Campaign funding shall provide
19 evidence that such candidate has raised the qualifying
20 contributions required by this section which evidence shall be
21 verified and certified as correct to the secretary by the
22 auditor selected hereunder.
23 Section 1607-A. Pennsylvania Clean Campaign Funding
24 Formula.--(a) Every candidate who qualifies for Pennsylvania
25 Clean Campaign funding for either the primary or the general
26 election pursuant to section 1606-A shall receive matching
27 payments from the Pennsylvania Clean Campaign Fund in the amount
28 of two dollars and fifty cents ($2.50) for each dollar of
29 qualifying contribution as defined in section 1606-A(b)(3).
30 (b) The two dollars and fifty cents ($2.50) for each dollar
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1 of qualifying contributions provided by this section shall be
2 provided only for qualifying contributions raised which exceed
3 the threshold amounts specified in section 1606-A(b) and not to
4 those qualifying contributions which are attributable to meeting
5 such threshold amounts necessary to qualify for Pennsylvania
6 Clean Campaign funding.
7 (c) (1) Only those qualifying contributions made during the
8 period between a declaration of candidacy and the primary
9 election shall be eligible for matching payments from the
10 Pennsylvania Clean Campaign Fund for the primary election.
11 (2) Only those qualifying contributions made during the
12 period between the primary election and the general election
13 shall be eligible for matching payments from the Pennsylvania
14 Clean Campaign Fund for the general election.
15 Section 1608-A. Limitations on Pennsylvania Clean Campaign
16 Funding.--(a) Every candidate who qualifies for and receives
17 Pennsylvania Clean Campaign funding pursuant to the formula
18 established in section 1607-A shall be entitled to receive no
19 more than the maximum amount specified in subsection (b) for the
20 office such candidate is seeking.
21 (b) (1) The maximum amount of Pennsylvania Clean Campaign
22 funding available for the general election for each candidate
23 under this article shall be as follows:
24 Office Maximum Pennsylvania Clean
25 Campaign Funding
26 (i) Governor $1,600,000
27 (ii) Attorney General 300,000
28 (iii) Auditor General, State
29 Treasurer 200,000
30 (iv) Lieutenant Governor 100,000 (primary only)
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1 (2) The maximum amount of Pennsylvania Clean Campaign
2 funding available for the primary election for each candidate
3 under this article shall be one-half the appropriate figure in
4 clause (1).
5 (c) Notwithstanding any other provisions of this article no
6 Pennsylvania Clean Campaign funding shall be provided to the
7 following:
8 (1) Candidates in the general election who have been
9 nominated by both major political parties.
10 (2) Candidates in the primary election who are unopposed for
11 the nomination.
12 (d) (1) As used in this article, "major political party"
13 shall mean a political party whose candidate for Governor
14 received either the highest or second highest number of votes in
15 the preceding gubernatorial election.
16 (2) For the purposes of this article, "unopposed" is defined
17 as any candidate who is the only candidate for election to an
18 office who reaches the qualifying contribution threshold
19 prescribed in section 1606-A(b).
20 Section 1609-A. Time of Payments.--(a) Beginning ninety
21 (90) days prior to the relevant primary or general election, the
22 secretary shall make payments authorized by this article at
23 least every two (2) weeks. However, except for the final
24 payment, no payment shall be due or paid if the payment does not
25 equal at least five thousand dollars ($5,000) in amount.
26 (b) If in the secretary's opinion insufficient funds exist
27 in the Pennsylvania Clean Campaign Fund to provide the
28 anticipated full funding to eligible candidates in a given
29 primary or general election, the secretary shall distribute the
30 available funds to qualified candidates on a pro-rata basis. In
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1 determining whether sufficient funds are available, the
2 secretary shall not take into consideration the needs of any
3 subsequent primary or general elections but shall base the
4 decision solely on the immediate primary or election at hand.
5 Section 1610-A. Use of Pennsylvania Clean Campaign Funds by
6 Candidates.--(a) Pennsylvania Clean Campaign funds distributed
7 to candidates pursuant to this article may be used only for the
8 election for which they are distributed and only for the
9 following purposes:
10 (1) Radio and television time.
11 (2) Billboard rental.
12 (3) Newspaper advertising.
13 (4) Production costs of advertising.
14 (5) Printing and mailing of campaign literature.
15 (6) Legal and accounting.
16 (7) Telephone expenses.
17 (8) Campaign office rental.
18 (9) Travel expenses.
19 (b) Pennsylvania Clean Campaign funds distributed to a
20 candidate pursuant to this article shall be placed in a single
21 bank account. Expenditures from this account shall be made only
22 for campaign expenses listed in subsection (a).
23 Section 1611-A. Expenditures.--(a) Expenditures made by a
24 candidate and his authorized committees, for all purposes and
25 from all sources, including, but not limited to, amounts of
26 Pennsylvania Clean Campaign funds distributed under this
27 article, proceeds of loans, gifts, contributions from any source
28 or personal funds, subsequent to the date of the primary
29 election, but prior to the date of the general election, may not
30 exceed the amounts specified below:
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1 Office Total Expenditure Limits
2 (i) Governor $3,000,000
3 (ii) Lieutenant Governor 200,000 (for primary only)
4 (iii) Attorney General 600,000
5 (iv) State Treasurer 400,000
6 (v) Auditor General 600,000
7 (b) Expenditures made by a candidate and his authorized
8 committees, subsequent to January 1 but prior to the date of the
9 primary election, may not exceed one-half of the amount
10 specified in subsection (a).
11 Section 1612-A. Limitations on Certain Contributions.--(a)
12 Any candidate who applies for and receives Pennsylvania Clean
13 Campaign funding under this article shall not accept
14 contributions for the election for which the Pennsylvania Clean
15 Campaign funds were provided which exceed those specified as
16 follows:
17 Contributor Limit
18 (1) Individual $2,500
19 (2) Candidate and spouse 25,000
20 (3) Political action committee
21 as defined in section 1621(1) 2,500
22 (4) Partnerships 2,500
23 (b) Aggregate contributions during the year of the election
24 by a political party committee or candidate's political
25 committee to candidates receiving Pennsylvania Clean Campaign
26 funding shall not exceed the sum of contributions from
27 individuals to the committee, provided that whenever
28 contributions in the aggregate during the year of the election
29 from an individual exceed one thousand dollars ($1,000), only
30 one thousand dollars ($1,000) shall be included in that sum.
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1 Section 1613-A. Inflation Indexing of Certain Limitations.--
2 The dollar figures contained in sections 1606-A, 1608-A and
3 1611-A shall be adjusted annually during March at a rate equal
4 to the average percentage change in the All-Urban Consumer Price
5 Index for the Pittsburgh, Philadelphia and Scranton standard
6 metropolitan statistical areas as published by the Bureau of
7 Labor Statistics of the United States Department of Labor, or
8 any successor agency, occurring in the prior calendar year. The
9 base year shall be 1984. The average shall be calculated and
10 certified by the secretary annually by adding the percentage
11 increase in each of the three areas and dividing by three. The
12 calculation and resulting new figures shall be published in the
13 Pennsylvania Bulletin during March.
14 Section 1614-A. Annual Report.--The secretary shall report
15 annually to the General Assembly and the Governor on the
16 operations of Pennsylvania Clean Campaign funding as provided by
17 this article. Such report shall include, but not be limited to,
18 the revenues and expenditures in the Pennsylvania Clean Campaign
19 Fund, the amounts distributed to candidates, the results of any
20 audits performed on candidates in compliance with the provisions
21 of this article and any prosecutions brought for violations of
22 this article.
23 Section 1615-A. Return of Excess Funds.--All unexpended
24 campaign funds in a candidate's and his authorized committees'
25 possession sixty (60) days after the election shall be returned
26 to the secretary for deposit in the Pennsylvania Clean Campaign
27 Fund, up to the amount of the funds which were distributed to
28 the candidate under this article.
29 Section 1616-A. Penalties.--(a) A person who violates the
30 provisions of this act and who, as a result, obtains
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1 Pennsylvania Clean Campaign funds to which he is not entitled
2 shall be guilty of a misdemeanor of the first degree and upon
3 conviction shall be subject to a fine not to exceed the greater
4 of ten thousand dollars ($10,000) or three times the amount of
5 funds wrongfully obtained, or imprisonment for up to five years
6 or both such fine and imprisonment.
7 (b) A person who violates section 1610-A or 1611-A of this
8 act shall be guilty of a misdemeanor of the first degree and
9 upon conviction shall be subject to a fine not to exceed the
10 greater of ten thousand ($10,000) or three times the amount of
11 funds that were wrongfully used or expended or to imprisonment
12 for up to five years, or to both such fine and imprisonment.
13 (c) Except as provided in subsections (a) and (b) of this
14 section, a person who violates any provision of this act shall
15 be guilty of a misdemeanor of the third degree and upon
16 conviction shall be subject to a fine of not more than one
17 thousand dollars ($1,000) or imprisonment for up to one year or
18 both.
19 Section 2. This act shall be applicable to returns of
20 taxpayers of calendar years commencing January 1, 1985, and
21 thereafter. Pennsylvania Clean Campaign funding shall be first
22 provided for candidates for Statewide office in the primary
23 election in April of 1986 and in each primary, municipal and
24 general election thereafter.
25 Section 3. This act shall take effect immediately.
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