Amendment 2042 to House Bill 1300 P.N. 1869, Regular Session 2021-2022

H1300B1869A02042 LKK:AAS 06/24/21 #90 A02042

AMENDMENTS TO HOUSE BILL NO. 1300

Sponsor: SENATOR COSTA

Printer's No. 1869

Amend Bill, page 2, by inserting between lines 37 and 38

in primary and election expenses, further providing for

definitions, for organization of political committees, for

organization of political committees and treasurer and

assistant treasurer and records of candidate and committees,

for registration, for reporting and for reporting by

candidate and political committees and other persons,

providing for limitations on contributions, further providing

for late filing fees and certificates of filing, for

contributions or expenditures by national banks, corporations

or unincorporated associations, for advertising and for

reports by business entities and publication by Secretary of

the Commonwealth and providing for independent expenditures

and for independent expenditure evaluation; and providing for

corporate political accountability;

Amend Bill, page 16, by inserting between lines 2 and 3

(i.1) To biennially adjust the limitations on contributions

under section 1627.1(r).

Amend Bill, page 124, by inserting between lines 10 and 11

Section 28. Section 1621(d), (e) and (f) of the act are

amended and the section is amended by adding subsections to

read:

Section 1621. Definitions.--As used in this article, the

following words have the following meanings:

* * *

(d) The word "expenditure" shall mean any of the following:

(1) The payment, distribution, loan or advancement of money

or any valuable thing by a candidate, candidate committee,

political committee, political action committee, political party

committee or other person for the purpose of influencing the

outcome of a nomination or an election[;]: provided, however,

that the payment, distribution, loan or advancement of money or

any valuable thing shall be made only for expenses directly and

exclusively incurred for the campaign in which the candidate is

running in the contemporaneous election cycle and that no

expenditure of funds from campaign accounts shall be used for

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any personal purpose.

(2) The payment, distribution, loan, advance or transfer of

money or other valuable thing between or among political

committees[;].

(3) The providing of a service or other valuable thing for

the purpose of influencing the outcome of a nomination or

election of any person to any public office to be voted for in

this Commonwealth[; or].

(4) The payment or providing of money or other valuable

thing by any person other than a candidate or political

committee, to compensate any person for services rendered to a

candidate or political committee.

(e) The words "independent expenditure" shall mean an

expenditure by a person, other than a political committee or

candidate, expressly advocating the election or defeat of a

clearly identified candidate for nomination or election or

promoting the success or defeat of a clearly identified ballot

question appearing on the ballot in each election district in

this Commonwealth, made for the purpose of influencing an

election without cooperation or consultation with any candidate

or any political committee authorized by that candidate and

which is not made in concert with or at the request or

suggestion of any candidate or political committee or agent

thereof.

(f) The word "lobbyist" shall mean any person who is

registered pursuant to the provisions of [the act of September

30, 1961 (P.L.1778, No.712), known as the "Lobbying Registration

and Regulation Act."] 65 Pa.C.S. Ch. 13A (relating to lobbying

disclosure).

* * *

(n) The words "affiliate" or "authorized committee" shall

include:

(1) Any committee established or authorized by a candidate

as part of his or her campaign for a specific campaign for a

designated office.

(2) Any committee established, financed, maintained or

controlled by the same corporation, labor organization,

membership association, not-for-profit organization or trade or

professional association, person or group of persons, including

any parent, subsidiary, branch, division, department or local

unit of an entity under this paragraph. Local units may include,

in appropriate cases, a franchisee, licensee or regional

association.

(o) The words "chief executive officer" shall mean the

highest ranking officer or decision-making individual with

authority over a corporation's affairs.

(p) The words "clearly identified" shall mean:

(1) with respect to a candidate, the name of the candidate

appears;

(2) with respect to a candidate, a photograph, drawing or

other image of the candidate appears; or

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(3) with respect to a candidate or ballot question, the

identity of the candidate or ballot question is apparent by

unambiguous reference.

(q) The words "electioneering communication" shall mean a

broadcast, cable, mail, satellite, the Internet, social media or

print communication by a person, other than a political

committee or candidate, that refers to a clearly identified

candidate or clearly identified ballot question appearing on the

ballot in each election district in this Commonwealth and is

publicly distributed within ninety (90) days before an election

in which the candidate is seeking election or reelection or the

ballot question appears on the ballot. The term does not include

any of the following communications:

(1) A communication that is disseminated through a means

other than a broadcast station, radio station, cable television

system, telecommunications, Internet or satellite system,

newspaper, magazine, periodical, billboard advertisement or

mail.

(2) A communication to less than one hundred (100)

recipients.

(3) A news story, commentary, letter to the editor, news

release, column, op-ed or editorial broadcast by a television

station, radio station, cable television system or satellite

system or printed in a newspaper, magazine or other periodical

in general circulation.

(4) Expenditures or independent expenditures or

contributions that must otherwise be reported under this

article.

(5) A communication from a membership organization

exclusively to its members and their families, otherwise known

as a membership communication.

(6) Bona fide candidate debates or forums and advertising or

promotion of the same.

(r) The words "electioneering communication expenditure"

shall mean any expenditure made by a person, other than a

political committee or a candidate, as payment for an

electioneering communication.

(s) The words "foreign-influenced corporation" shall mean a

corporation for which:

(1) a foreign owner holds, owns, controls or otherwise has

directly or indirectly acquired beneficial ownership of equity

or voting shares in an amount that is equal to or greater than

five (5) per cent of the total equity or outstanding voting

shares; or

(2) foreign owners hold, own, control or have directly or

indirectly acquired beneficial ownership of equity or voting

shares in an amount that is equal to or greater than twenty (20)

per cent of the total equity or outstanding voting shares.

(t) The words "foreign national" shall mean:

(1) a foreign principal; or

(2) an individual who is not a citizen of the United States

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or a national of the United States and who is not lawfully

admitted for permanent residence.

(u) The words "foreign owner" shall mean a foreign national

or a corporation wherein a foreign national holds, owns,

controls or otherwise has directly or indirectly acquired

beneficial ownership of equity or voting shares in an amount

that is equal to or greater than fifty (50) per cent of the

total equity or outstanding voting shares.

(v) The words "foreign principal" shall mean:

(1) a government of a foreign country;

(2) a foreign political party; or

(3) a partnership, association, corporation, organization or

other combination of persons organized under the laws of or

having its principal place of business in a foreign country.

(w) The words "independent expenditure political action

committee" shall mean a political action committee that only

receives contributions to make independent expenditures.

(x) The words "in-kind contribution" shall mean a

contribution of goods, services, property or any valuable thing

offered free or at less than the fair market value for the

goods, property or services. The words shall not include any

legal or accounting services rendered to or on behalf of any

political committee of a political party, an authorized

committee of a candidate or any other political committee, if

the services are solely for the purpose of ensuring compliance

with this article. The legal or accounting services shall be

reported under section 1626.

(y) The words "personal purpose" shall mean a purpose that,

by its nature, confers a personal benefit, including

expenditures such as a home mortgage, home rent, utility

payment, clothing purchase, noncampaign automobile expense,

country club membership, vacation or a trip of a noncampaign

nature, household food items, tuition payments, admission to a

sporting event, concert, theater or other form of entertainment

and other expenditures not specifically and directly necessary

for the conduct of the campaign.

(z) The word "person" shall include any corporation,

partnership, limited liability company, business trust, other

association, government entity, other than the Commonwealth,

estate, trust, foundation or natural person.

Section 29. Sections 1622 and 1624(a) and (b) of the act are

amended to read:

Section 1622. Organization of Political Committees;

Treasurer and Assistant Treasurer; Records of Candidate and

Committees.--

(a) Every political committee shall have a treasurer and a

chairman. No contribution shall be received nor shall any

expenditure be made when there is a vacancy in either one of

these offices. All money received and disbursed by a political

committee must be done through the treasurer of the committee.

(b) Every candidate who authorizes a committee [or

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committees,] to receive and disburse funds on behalf of this

candidacy, shall name a sole treasurer[, irrespective of the

number of committees so authorized,] to receive and disburse all

funds [for] of said [committees. Nothing herein shall be

construed to prohibit a candidate from receiving or expending

moneys on his behalf or a treasurer of a political party

committee or a committee authorized to receive and distribute

funds on behalf of more than one (1) candidate from receiving or

expending moneys on behalf of said candidates, notwithstanding

the appointment of a sole treasurer. A sole treasurer may

delegate authority, in writing, to any number of assistant

treasurers to receive and disburse moneys collected on behalf of

a candidate for election. Nothing in this section shall prohibit

authorized individuals from selling tickets or soliciting funds

when funds are deposited in the campaign account of the

candidate] committee.

* * *

Section 1624. Registration.--

(a) Any political committee which receives contributions in

an aggregate amount of two hundred fifty dollars ($250) or more

shall file a registration statement, designed by the Secretary

of the Commonwealth, with the appropriate supervisor within

twenty (20) days after the date on which it receives such

amount. Each committee in existence shall have sixty (60) days

from the effective date of this amendatory act to comply with

the requirements of this section.

(b) Each registration statement shall contain the following

information:

(1) The name, addresses and phone numbers of the political

committee.

(2) The name, address and phone number of the committee's

treasurer.

(3) The name, address and phone number of the committee's

chairman.

(4) The names, addresses and relationships of other

affiliated or connected organizations.

(5) The candidates, if any, and their names and addresses.

(6) The ballot question, if any, which the committee intends

to support or oppose.

(7) The banks, safety deposit boxes or other repositories

and their addresses used by the committee.

(8) The proposed period of operation of the committee.

(9) A political committee which is established, financed,

maintained or controlled by a sponsoring organization such as a

corporation, labor organization, membership association, not-

for-profit organization or trade or professional association

shall include in its registered name the full name of its

sponsoring organization.

any changes in the information contained in subsection (b)

within thirty (30) days of that change.

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(d) No political committee which receives an aggregate

amount of contributions of two hundred fifty dollars ($250) or

more may make a contribution to any candidate or political

committee unless it has registered with the appropriate

supervisor.

Section 30. Section 1626(a), (b), (c), (d) and (g) of the

act are amended and the section is amended by adding subsections

to read:

Section 1626. Reporting by Candidate and Political

Committees and other Persons.--

(a) Each treasurer of a political committee and each

candidate for election to public office shall file with the

appropriate supervisor reports of receipts and expenditures on

forms, designed by the Secretary of the Commonwealth, if the

amount received or expended or liabilities incurred shall exceed

the sum of two hundred fifty dollars ($250). Should such an

amount not exceed two hundred fifty dollars ($250), then the

candidate or, in the case of a political committee, the

treasurer of the committee shall file a sworn statement to that

effect with the appropriate supervisor rather than the report

required by this section[.]: provided, however, that if the

amount received or expended by a candidate does not exceed two

hundred fifty dollars ($250) he or she may comply with this

section by signing an affidavit to that effect on his or her

political committee's report or statement.

(b) Each report shall include the following information:

(1) The full name, mailing address, specific occupation and

specific name of the employer, if any, or the principal place of

business, if self-employed, of each person who has made one or

more contributions to or for such committee or candidate within

the reporting period in an aggregate amount or value in excess

of [two hundred fifty dollars ($250)] one hundred dollars

($100), together with the amount and date of such contributions.

The accuracy of the information furnished to the candidate or

committee shall be the responsibility of the contributor.

(2) The full name and mailing address of each person [who]

and political committee that has made one or more contributions

to or for such committee or candidate within the reporting

period in an aggregate amount or value in excess of fifty

dollars ($50), together with the amount and date of such

contributions. The accuracy of the information furnished by the

contributor shall be the responsibility of the contributor.

(3) The total sum of individual contributions made to or for

such committee or candidate during the reporting period and not

reported under clauses (1) and (2).

(4) Each and every expenditure, the date made, the full name

and address of the person to whom made and the purpose for which

such expenditure was made. If the creditor is a credit card

company or similar instrumentality that is an intermediary for

collecting payments due, it shall not be sufficient to list the

name of the collecting organization. The report shall identify

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the credit card company and also the specific entities and

payments being paid through the credit card company or like

entity. If the payment is being made by a committee to a

creditor for expenses on behalf of one or more candidates, the

amounts of payments and purposes of the payments shall be broken

down to identify each candidate's share of the incurred

expenses. The report shall include copies of the political

committee's or candidate's itemized credit card statements

displaying the reportable expenditures included in the report.

(5) Any unpaid debts and liabilities, with the nature and

amount of each, the date incurred and the full name and address

of the person owed.

(6) The account shall include any unexpended balance of

contributions or other receipts appearing from the last account

filed.

(7) Identification of political committees:

(i) If the contributor is a political committee, the

official registration number of the committee must be included

on the contribution check or in the case of an electronic

transfer within the documentation sent to the candidate

providing notice to the electronic transfer of funds.

(ii) The official registration number of the committee shall

be included on the disclosure report filed by the committee.

(iii) The official committee registration number shall be

included on each entry for that committee on a candidate's

disclosure report.

amounting to more than twenty-five dollars ($25) shall be

retained by the candidate or the committee treasurer and shall

be available for public inspection and copying as herein

provided. Any person may inspect or copy such vouchers or copies

thereof by filing a written request with the appropriate

supervisory office which shall notify the candidate or political

committee of such request. The candidate or political committee

shall have the option of either forwarding such vouchers or copy

of the same to the supervisor for such purpose or making the

vouchers or copy of the same available to the requesting person.

If a candidate or a treasurer of a political committee shall

fail to make said vouchers or copies thereof available for

inspection and copying when requested by the appropriate

supervisory officer, such officer shall direct the candidate or

political committee to promptly deliver the vouchers or copies

thereof to the supervisory office for purposes of inspection and

copying. Costs of copying and costs of delivery by the candidate

or treasurer of the requested vouchers or copies thereof shall

be borne by the person requesting same.] (1) Vouchers or copies

of vouchers for all sums expended amounting to more than twenty-

five dollars ($25) shall be retained by the candidate or the

political committee treasurer for a period of three (3) years as

required under section 1622(c) and shall be available for public

inspection and copying.

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(2) Any person may inspect or copy such vouchers or copies

thereof by filing a written request with the appropriate

supervisory office which shall notify the candidate or political

committee of the request. The candidate or political committee

shall forward the vouchers or copy of the same to the supervisor

for such purpose within fifteen (15) days of the date of the

request. The supervisor shall make the vouchers or copies of the

vouchers available to the requesting person for inspection and

copying. Costs of copying and costs of delivery by the candidate

or treasurer of the requested vouchers or copies shall be borne

by the requesting person.

(3) If a candidate or a treasurer of a political committee

fails to forward the vouchers or copies of the vouchers to the

supervisory office when requested, the supervisory office shall

provide written notice of the violation to the candidate or

political committee. If the violation is not corrected within

thirty (30) days after receipt of a notice, the department shall

issue a notice of violation and, after a hearing, make a

determination and may assess penalties against the candidate or

treasurer of the political committee for noncompliance under

this act.

(4) An aggrieved candidate or treasurer of a political

committee or requesting person who was party to the department's

determination under paragraph (3) may file an action in court

seeking declaratory or injunctive relief. In an action under

this subsection, the court may allow the prevailing party

reasonable attorney fees, including litigation costs and

expenses. An action filed under this paragraph must be filed in

either:

(i) the Commonwealth Court in the case of any candidate or

treasurer of a candidate's political committee if the candidate

is running for a Statewide elected office or a legislative

office of the General Assembly; or

(ii) an appropriate court of common pleas in the case of all

other candidates or treasurers of political committees.

(5) Prior to granting a request for inspection and copying

vouchers, a candidate or political committee may require a

requester to prepay an estimate of the fees authorized under

this section if the costs of copying and costs of delivery

required to fulfill the request are expected to exceed one

hundred dollars ($100). If no prepayment is requested or made, a

candidate or political committee may require the requestor to

pay the actual costs of copying and costs of delivery prior to

the release of the requested documents.

(6) The Attorney General shall have prosecutorial

jurisdiction over a violation committed under this section. The

district attorney of any county in which a violation occurred

has concurrent powers and responsibilities with the Attorney

General over the violations.

(7) The supervisor of a candidate or political committee may

deny a requesting person access to a voucher or copies if the

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requesting person has made repeated requests for the same record

more than twice and the repeated requests have placed an

unreasonable burden on the candidate or political committee,

which is substantiated by repeated responses to substantively

similar requests. A denial under this paragraph shall not

restrict the ability to request a different record.

(d) Pre-election reports by candidates for offices to be

voted for by the electors of the State at large, candidates for

the office of Senator in the General Assembly, candidates for

the office of Representative in the General Assembly and all

political committees, which have expended money for the purpose

of influencing the election of such [candidate] candidates,

shall be filed not later than the sixth Tuesday before and the

second Friday before an election, provided that the initial pre-

election report shall be complete as of fifty (50) days prior to

the election and the subsequent pre-election report shall be

complete as of fifteen (15) days prior to the election. Pre-

election reports by all other candidates and political

committees which have received contributions or made

expenditures for the purpose of influencing an election shall be

filed not later than the second Friday before an election,

provided that such report be complete as of fifteen (15) days

prior to the election.

(d.1) During nonelection years in which subsection (d) is

not operative, an elected official or announced candidate for

any elective office shall file quarterly reports if he or she

receives more than two hundred fifty dollars ($250) during the

respective calendar quarter. Reports shall be due thirty (30)

days after the end of each calendar quarter and shall be

complete through the final day of the calendar quarter the

report covers.

* * *

(g) [Every] Except as provided under section 1644, every

person, other than a political committee or candidate, who makes

independent expenditures expressly advocating the election or

defeat of a clearly identified candidate, or question appearing

on the ballot, other than by contribution to a political

committee or candidate, in an aggregate amount in excess of [one

hundred dollars ($100)] one thousand dollars ($1,000) during a

calendar year shall file with the appropriate supervisor, on a

form prepared by the Secretary of the Commonwealth, a report

which shall include the same information required of a candidate

or political committee receiving such a contribution and,

additionally, the name of the candidate or question supported or

opposed. Reports required by this subsection shall be filed on

dates on which reports by political committees making

expenditures are required to report under this section.

* * *

(k) The following words and phrases when used in this

section shall have the meanings given to them in this subsection

unless the context clearly indicates otherwise:

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"Costs of copying." Up to twenty-five cents (25¢) per copy

for black and white copies, and up to fifty cents (50¢) per copy

for color copies. If a CD or DVD is provided, the cost of

copying will be up to the actual cost of the CD or DVD, not to

exceed three dollars ($3) per disc. For a flash drive the cost

of copying will be up to the actual cost of the flash drive.

"Costs of delivery." The cost of postage or shipping of

documents from the candidate or committee to the requester. The

allowable fee for postage or shipping will be up to the actual

cost of the United States Postal Service's first-class postage.

"Political committee." As defined in section 1621.

"Voucher." A document that reasonably describes the campaign

expense.

Section 31. The act is amended by adding a section to read:

Section 1627.1. Limitations on Certain Contributions.--

(a) Aggregate contributions, including in-kind

contributions, from any individual to any candidate for the

office of Senator or Representative in the General Assembly,

judge of court of common pleas or a county or municipal office,

or to the candidate's committee or agent, may not exceed one

thousand five hundred dollars ($1,500) for each election. For

each election, a candidate and the candidate's committee or

agent may not accept or receive more than one thousand five

hundred dollars ($1,500) in aggregate contributions, including

in-kind contributions from any individual for each election.

(b) Aggregate contributions, including in-kind

contributions, from any individual to any candidate for

Statewide office, his authorized committee or agent, may not

exceed five thousand dollars ($5,000) for each election. For

each election, no candidate, his authorized committee or agent

may accept or receive more than five thousand dollars ($5,000)

in aggregate contributions, including in-kind contributions from

any individual for each election.

kind contributions, from a single political action committee,

its affiliate or agent or candidate's political committee, its

affiliate or agent to any candidate for Statewide office, the

office of Senator or Representative in the General Assembly,

judge of court of common pleas or a county or municipal office,

his authorized committee or agent, may not exceed ten thousand

dollars ($10,000). For each election, no candidate for the

office, nor the candidate's committee or agent, may accept or

receive more than the applicable amount or amounts as specified

under this subsection in aggregate contributions, including in-

kind contributions, from a single political action committee or

agent or candidate's political committee. A donor shall be an

individual or a single committee regardless of the number of

contributions made by that individual or committee during the

election cycle.

(d) Contributions from political party committees to a

political action committee, other party committee or other

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committee may not exceed five thousand dollars ($5,000) for each

election.

(e) A candidate for the office of Senator or Representative

in the General Assembly, judge of a court of common pleas or a

county or municipal office, or the candidate's committee or

agent may not accept in excess of two hundred and fifty thousand

dollars ($250,000) in aggregate contributions, including in-kind

contributions from all political party committees, affiliates or

agents. Contributions, in the aggregate, received by a

candidate, may not exceed the aggregate contributions made by

individuals per election.

(f) Except for a candidate for the office of Governor, a

candidate for Statewide office, his authorized committee or

agent may not accept in excess of one million dollars

($1,000,000) in aggregate contributions, including in-kind

contributions from all political party committees, affiliates or

agents. A candidate for Governor, his authorized committee or

agent may not accept in excess of five million dollars

($5,000,000) in aggregate contributions, including in-kind

contributions from all political party committees, affiliates or

agents. Contributions in aggregate received by a candidate may

not exceed the aggregate contributions made by individuals per

election.

(g) Aggregate contributions, including in-kind

contributions, from any person or a single political action

committee, its affiliate or agent or any single candidate's

political committee, its affiliate or agent to a single

political action committee, its affiliate or agent, may not

exceed ten thousand dollars ($10,000) during any calendar year.

For each election, no political action committee, its affiliate

or agent may accept or receive more than ten thousand dollars

($10,000) in aggregate contributions, including in-kind

contributions, from any individual person or a single political

action committee, its affiliate or agent during any calendar

year.

(h) Aggregate contributions from any individual, person or a

single candidate's political committee, its affiliate or agent

or a single political action committee, its affiliate or agent

or any other political committee to a single political party

committee may not exceed ten thousand dollars ($10,000) in a

calendar year. A single political party committee may not accept

or receive more than ten thousand dollars ($10,000) in aggregate

contributions from any individual, person, single candidate's

political committee or agent or a single political action

committee, its affiliate or agent, any political committee or

other committee in a calendar year.

(h.1) The following shall apply to annual aggregate limits:

(1) No individual may make contributions to candidates,

political committees or other committees that have a combined

aggregate amount or value that exceeds twenty-five thousand

dollars ($25,000) in a calendar year.

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(2) No political action committee may make contributions to

candidates, political committees and party committees in an

aggregate amount or value that exceeds one hundred thousand

dollars ($100,000) in any calendar year.

(i) A gift, subscription, loan, advance or deposit of money

or anything of value to a candidate shall be considered a

contribution both by the original source of the contribution and

by any intermediary or conduit if the intermediary or conduit:

(1) exercises any direction over the making of the

contribution; or

(2) solicits the contribution or arranges for the

contribution to be made and directly or indirectly makes the

candidate aware of the intermediary or conduit's role in

soliciting or arranging the contribution for the candidate.

(j) For purposes of subsection (i), a contribution shall not

be considered to be a contribution by an intermediary or conduit

to the candidate if any of the following situations occurs:

(1) The intermediary or conduit has been retained by the

candidate's committee for the purpose of fundraising and is

reimbursed for expenses incurred in soliciting contributions.

(2) For an individual, the candidate has expressly

authorized the intermediary or conduit to engage in fundraising,

or the individual occupies a position within the candidate's

campaign organization and is authorized by the organization to

engage in fundraising.

(3) For a political committee, the intermediary or conduit

is the authorized committee of the candidate.

(k) The following shall apply to out-of-State contributions:

(1) A candidate, candidate committee, party committee,

political action committee or political committee may not accept

a campaign contribution from an out-of-State political action

committee if the political action committee's home state has

less restrictive disclosure laws than this Commonwealth, except

as provided under paragraph (2).

(2) A candidate, candidate committee, party committee,

political action committee or political committee may accept a

campaign contribution from an out-of-State political action

committee if that political action committee is registered in

this Commonwealth with the Department of State and, by the

registration, has affirmed that the contributor will comply with

the contribution, expenditure and reporting requirements of this

act, and the regulations relating to contributions, expenditures

and reporting promulgated under this act by the Department of

State and the State Ethics Commission.

(3) The Secretary of the Commonwealth shall list and certify

those states that have less restrictive disclosure laws than the

Commonwealth. The list shall be compiled and updated annually

and published in the Pennsylvania Bulletin not later than

January 1, 2020, and each January 1 thereafter. The list shall

be made available on the Department of State's publicly

accessible Internet website and provided in hard copy in

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campaign committee packets prepared by the department.

(l) This section shall apply to any contribution made for

the purpose of influencing an election to any public office in

this Commonwealth except Federal offices.

(m) For purposes of this section, any contribution made to a

candidate in a year other than the calendar year in which the

election is held with respect to which the contribution is made

shall be considered to be made during the calendar year in which

the election is held.

(n) For purposes of this section, contribution limits shall

apply to each election separately unless an annual limit or

other limit is specified.

(o) A person who has a fiduciary contract for services with

the General Assembly may not engage in campaign finance activity

for candidates of the General Assembly, including making of

contributions, fundraising activities or involvement in

political action committees or candidate political committees.

(p) Nothing under this section shall prohibit a

municipality, including a city of the first class, from

instituting lower limitations on contributions to candidates for

elected offices under the municipality's jurisdiction.

(q) A violation of the contribution limits under this

section shall subject the violator to a fine equal to three

times the amount of money that exceeds the limits. The penalty

shall apply to both the person making the contribution and the

person receiving it.

(r) The Secretary of the Commonwealth shall biennially

adjust to the nearest one hundred dollars ($100) the limits in

subsections (a), (b), (c), (d), (e), (f), (g) and (h) by the

percentage change in the Consumer Price Index and publish the

new amounts in the Pennsylvania Bulletin. For the purposes of

this subsection, "Consumer Price Index" means the Consumer Price

Index for all urban consumers that is published by the United

States Department of Labor, Bureau of Labor Statistics.

(s) The limitations imposed under this section may not apply

to contributions from a candidate's personal resources to a

candidate committee, political committee or political action

committee acting on behalf of the candidate, except that if the

contributions total one hundred thousand dollars ($100,000) or

more, regardless of the time period over which the contributions

are made, the contribution limits under this section shall

quadruple.

Section 32. Section 1632(a) of the act is amended to read:

Section 1632. Late Filing Fee; Certificate of Filing.--

(a) A late filing fee for each report or statement of

expenditures and contributions which is not filed within the

prescribed period shall be imposed as follows. Such fee shall be

[ten dollars ($10)] twenty dollars ($20) for each day or part of

a day excluding Saturdays, Sundays and holidays that a report is

overdue. An additional fee of ten dollars ($10) is due for each

of the first six (6) days that a report is overdue. [The maximum

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fee payable with respect to a single report is two hundred fifty

dollars ($250).] A supervisor shall receive an overdue report or

statement even if any late filing fee due has not been paid but

the report or statement shall not be considered filed until all

fees have been paid upon the receipt by the supervisor of an

overdue report. No further late filing fees shall be incurred

once the report or statement is filed notwithstanding the fact

that the report or statement is not considered filed. The late

filing fee is the personal liability of the candidate or

treasurer of a political committee and cannot be paid from

contributions to the candidate or committee, nor may such fee be

considered an expenditure. A report or statement of expenditures

and contributions shall be deemed to have been filed within the

prescribed time if the letter transmitting the report or

statement which is received by the supervisor is transmitted by

first class mail and is postmarked by the United States Postal

Service on the day prior to the final day on which the report or

statement is to be received: Provided, That this sentence shall

not be applicable to the reporting requirements contained in

section 1628. All Department of State filing and disclosure

requirements for prior campaign activity must have been met in

order for a candidate to obtain a place on the ballot.

* * *

Section 33. Section 1633(a) of the act is amended and the

section is amended by adding a subsection to read:

Section 1633. Contributions or Expenditures by National

Banks, Corporations or Unincorporated Associations.--(a) It is

unlawful for any National or State bank, partnership or any

corporation, incorporated under the laws of this or any other

state or any foreign country or any unincorporated association,

except those corporations formed primarily for political

purposes or as a political committee, to make a contribution or

expenditure in connection with the election of any candidate or

for any political purpose whatever except in connection with any

question to be voted on by the electors of this Commonwealth.

Furthermore, it shall be unlawful for any candidate, political

committee, or other person to knowingly accept or receive any

contribution prohibited by this section, or for any officer or

any director of any corporation, bank, or any unincorporated

association to consent to any contribution or expenditure by the

corporation, bank or unincorporated association, as the case may

be, prohibited by this section. If any portion of this section

regarding bans on contributions or expenditures by national

banks, corporations or unincorporated associations is nullified

by a court decision, the contribution limits established for

individuals under section 1627.1 shall also be applied to the

entities currently covered under this section.

* * *

(e) (1) A foreign-influenced corporation may not make an

independent expenditure, an electioneering communication

expenditure or a contribution to an independent expenditure

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political action committee.

(2) A corporation that makes an independent expenditure, an

electioneering communication expenditure or a contribution to an

independent expenditure political action committee shall, within

seven (7) business days after making the expenditure or

contribution, file with the Department of State a statement of

certification, signed by the chief executive officer under

penalty of perjury, avowing that, after due inquiry, the

corporation was not a foreign-influenced corporation on the date

the expenditure or contribution was made.

Section 34. Section 1638 of the act is amended by adding a

subsection to read:

Section 1638. Advertising.--

* * *

or electioneering communication, transmitted through paid radio,

television or Internet advertising, has received a statement of

certification as prescribed under section 1633(e) from each

contributing corporation that is among the top five (5)

contributors when ranked in order of amount of contribution made

to the person for the twelve-month period immediately preceding

the date of the communication, the advertisement shall include

the following statement:

Some of the funds used to pay for this message may have been

provided by foreign-influenced corporations.

(2) The person making the independent expenditure or

electioneering communication under this section shall be

entitled to rely on the statement of certification provided by

the contributor unless the person has actual knowledge that the

certification is false.

Section 35. Section 1641(a) of the act is amended and the

section is amended by adding a subsection to read:

Section 1641. Reports by Business Entities; Publication by

Secretary of the Commonwealth.--

(a) Any business entity including but not limited to a

corporation, company, association, partnership or sole

proprietorship, which has been awarded [non-bid] contracts or

grants over fifty thousand dollars ($50,000) from the

Commonwealth or its political subdivisions during the preceding

[calendar year] two-year period, shall report by February 15 of

each year to the Secretary of the Commonwealth a list including

the amount of the contract, description of the service provided

and location and an itemized list of all political contributions

known to the business entity by virtue of the knowledge

possessed by every officer, director, associate, partner,

limited partner or individual owner that has been made by:

(1) any officer, director, associate, partner, limited

partner, individual owner or members of their immediate family

when the contributions exceed an aggregate of one thousand

dollars ($1,000) by any individual during the preceding year; or

(2) any employe or members of his immediate family whose

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aggregate political [contribution] contributions exceeded one

thousand dollars ($1,000) during the preceding year.

For the purposes of this subsection, "immediate family" [means a

person's spouse and any unemancipated child] shall have the same

meaning as in 65 Pa.C.S. § 13A03 (relating to definitions).

* * *

Department of General Services, shall publish a list of all

business entities, corporations, companies, associations,

partnerships or sole proprietorships receiving grants and

contracts in excess of fifty thousand dollars ($50,000) from the

Commonwealth not later than January 31 of each year for the

preceding two-year period. The list shall be updated quarterly.

Section 36. The act is amended by adding sections to read:

Section 1643. Independent Expenditures.--

(a) Except as prohibited under section 1633(e)(1), a person

may make independent expenditures.

(b) The following shall apply to expenditures made for a

written, typed or other printed communication or an Internet-

based, written communication which promotes the success or

defeat of a candidate's campaign for nomination or election or

the adoption or defeat of a ballot question or solicits funds to

benefit a political committee:

(1) A person may not make, incur or contract for an

expenditure with the consent of, in coordination with or in

consultation with a candidate, candidate committee, political

committee or candidate's agent.

(2) A group of two or more individuals acting together that

receives funds or makes or incurs expenditures not exceeding one

thousand dollars ($1,000) in the aggregate which have not formed

a political committee may not make or incur an independent

expenditure.

following language:

(1) The words "paid for and approved by" and one of the

following:

(i) For an individual, the name and address of the

individual.

(ii) For a committee other than a party committee, the name

of the committee and its campaign treasurer.

(iii) For a party committee, the name of the committee.

(iv) For a group of two or more individuals that received

funds or makes or incurs expenditures not exceeding one thousand

dollars ($1,000) in the aggregate which have not formed a

political committee, the name of the group and the name and

address of its agent.

(2) The words "approved by" and one of the following:

(i) For an individual, group or political committee other

than a candidate committee making or incurring an expenditure

with the consent of, in coordination with or in consultation

with a candidate committee or candidate's agent, the name of the

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candidate.

(ii) For a candidate committee, the name of the candidate.

(d) Independent expenditures:

(1) The following apply:

(i) A person may not make or incur an independent

expenditure for a written, typed or other printed communication

or an Internet-based, written communication which promotes the

success or defeat of a candidate for nomination or election or

promotes or opposes a political party or solicits funds to

benefit a political party or committee, unless the communication

bears upon its face the words "paid for and approved by" and the

name of the person, the name of its chief executive officer or

equivalent and its principal business address and the words

"This message was made independently of a candidate or political

party."

(ii) An entity which is a tax-exempt organization under

Chapter 1, Subchapter F of the Internal Revenue Code of 1986

(Public Law 99-514, 26 U.S.C. § 1 et seq.) , making or incurring

an independent expenditure under subparagraph (i), shall also

bear upon the face of the communication the words "Top Five

Contributors" followed by a list of the five persons making the

largest contributions to the organization during the twelve-

month period before the date of the communication.

(2) Disclosure requirements are as follows:

(i) In addition to the requirements of paragraph (1), a

person may not make or incur an independent expenditure for

television advertising, radio or Internet video advertising or

Internet radio advertising, that promotes the success or defeat

of a candidate for election or promotes or opposes a political

party or solicits funds to benefit a political party or

committee, unless at the end of the advertisement there appears

or includes simultaneously for a period of no less than four

seconds a clear identifiable audio, video, photographic or

similar image of the person's chief executive officer or

equivalent and a personal audio message, in the following form:

I am . . . (name of person's chief executive officer or

equivalent), . . . (title) of . . . (entity). This message

was made independently of any candidate, political committee

or political party, and I approve of its content.

(ii) A tax-exempt organization under Chapter 1, Subchapter F

of the Internal Revenue Code of 1986, making or incurring an

independent expenditure under subparagraph (i), shall include on

the advertisement an easily readable written message in the

following form:

"The Top Five Contributors to the organization for this

advertisement are" followed by a list of the five persons

making the largest contributions to the organization during

the twelve-month period before the date of the communication.

Section 1644. Independent Expenditure Evaluation.--

(a) When the Bureau of Commissions, Elections and

Legislation audits and evaluates an expenditure that is included

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in a report under section 1643 to determine whether the

expenditure is an independent expenditure, there shall be a

rebuttable presumption that the following expenditures are not

independent expenditures:

(1) An expenditure made by a person in cooperation,

consultation or in concert with, at the request, suggestion or

direction of or pursuant to a general or particular

understanding with a candidate or political committee or other

agent acting on behalf of a candidate or political committee.

(2) An expenditure made by a person for the production,

dissemination, distribution or publication, in whole or in

substantial part, of a broadcast or a written, graphic or other

form of political advertising or campaign communications

prepared by a candidate or political committee or a consultant

or other agent acting on behalf of a candidate or political

committee.

(3) An expenditure made by a person based on information

about a candidate's or political committee's plans, projects or

needs, provided by a candidate or political committee or a

consultant or other agent acting on behalf of a candidate or

political committee with the intent that the expenditure be

made.

(4) An expenditure made by an individual who, in the same

election cycle, is serving or has served as the campaign

chairperson, campaign treasurer or deputy treasurer of a

political committee benefiting from the expenditure, or another

executive or policymaking position, including as a member,

employe, fundraiser, consultant or other agent acting on behalf

of a candidate or political committee.

(5) An expenditure made by a person whose officer, director,

member, employe, fundraiser, consultant or other agent who

serves the person in an executive or policymaking position also

serves as or has served in the same election cycle as the

candidate or the campaign chairperson, campaign treasurer or

deputy treasurer of a candidate or political committee

benefiting from the expenditure, or in another executive or

policymaking position of the candidate or political committee.

(6) An expenditure made by a person for:

(i) fundraising activities with or for a candidate or

political committee or a consultant or other agent acting on

behalf of a candidate or political committee; or

(ii) the solicitation or receipt of contributions on behalf

of a candidate or political committee or a consultant or other

agent acting on behalf of a candidate or political committee.

(7) An expenditure made by a person based on information

about a candidate's campaign plans, projects or needs, that is

directly or indirectly provided by a candidate, the candidate's

committee or a political committee or a consultant or other

agent acting on behalf of the candidate or political committee

to the person making the expenditure or the person's agent, with

an express or tacit understanding that the person is considering

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making the expenditure.

(8) An expenditure made by a person for a communication that

clearly identifies a candidate or political committee during an

election campaign if the person making the expenditure, or the

person's agent, has informed the candidate who benefits from the

expenditure that the candidate or political committee or a

consultant or other agent acting on behalf of the benefiting

candidate or political committee concerning the communications

content, or of the intended audience, timing, location or mode

or frequency of the dissemination.

(9) An expenditure made by a person or an entity for

consultant or creative services, including services related to

communications strategy or design or campaign strategy, to be

used to promote or oppose a candidate's election to office if

the provision of these services is also providing consultant or

creative services to the candidate or to an opposing candidate

in the same election.

(b) As used in this section, the words "agent acting on

behalf of a candidate" include:

(1) an individual or a person paid by a candidate or a

candidate committee; and

(2) any consultant, printing firm, media production company,

Internet website director or webmaster, marketing firm,

advertising firm, filed organization firm or other company or

firm retained by a candidate or authorized by a candidate or a

candidate committee to act on the candidate's behalf.

Section 37. The act is amended by adding an article to read:

ARTICLE XVI-A

CORPORATE POLITICAL ACCOUNTABILITY

Section 1601-A. Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Contribution" or "expenditure." As follows:

(1) The term includes:

(i) Any monetary and nonmonetary political

contributions and expenditures not deductible under

section 162(e)(1)(B) of the Internal Revenue Code of 1986

(Public Law 99-514, 26 U.S.C. § 162(e)(1)(B)), including:

(A) Contributions to or expenditures on behalf

of political candidates, political parties, political

committees and other entities organized and operating

under Chapter 1, Subchapter F of the Internal Revenue

Code of 1986 (26 U.S.C. Chapter 1, Subchapter F).

(B) Any portion of any dues or similar payments

made to any tax-exempt organization that is used for

an expenditure or contribution if, made directly by

the corporation would not be deductible under section

162(e)(1)(B) of the Internal Revenue Code of 1986.

terms are defined in section 301 of the Federal

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Election Campaign Act of 1971 (Public Law 92-225, 52

U.S.C. § 30101(8) and (9).

(D) Any contribution or expenditure defined

under this act.

(ii) Any direct or indirect payment, distribution,

loan, advance, deposit or gift of money, or any services,

or anything of value, except a loan of money by a

national or State bank made in accordance with the

applicable banking laws and regulations and in the

ordinary course of business, to any candidate, campaign

committee or political party or organization, in

connection with any election to any office.

(2) The term does not include:

(i) Communications by a corporation to its

stockholders and executive or administrative personnel

and their families or by a labor organization to its

members and their families on any subject.

(ii) Nonpartisan registration and get-out-the-vote

campaigns by a corporation aimed at its stockholders and

executive or administrative personnel and their families

or by a labor organization aimed at its members and their

families.

(iii) The establishment, administration and

solicitation of contributions to a separate segregated

fund to be utilized for political purposes by a

corporation, labor organization, membership organization,

cooperative or corporation without capital stock.

"Corporation." The term includes any company, trade or

professional union, not-for-profit association and incorporated

partnership organized as an incorporated entity under the laws

of any state.

"Department." The Department of State of the Commonwealth.

"Issue advocacy campaign." Contributions or expenditures for

any communication to the general public intended to encourage

the public to contact a government official regarding pending

legislation, public policy or a government rule or regulation.

The term does not include contributions or expenditures for

registered lobbyists or other persons employed by the

corporation to lobby directly Federal or State government

officials.

"Known at the time of the authorization vote." At the time

the corporation seeks authorization from shareholders to spend

corporate funds for political activities:

(1) the corporation's officers, directors or employees

have identified a specific political activity for the

corporation to support or oppose;

(2) corporate officers, directors or employees have

taken steps to obligate funds to a political activity; or

(3) the corporation has a regularly scheduled payment to

a trade association or other entity to pay for a political

activity in the next 12 months.

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"Majority of shareholders." Fifty percent plus one of all

outstanding voting securities. Shareholders not casting votes

shall not count toward affirmative authorization under this

article.

"Political activities." Any contributions or expenditures

made directly or indirectly to, or in support of or opposition

to, any candidate, political party, committee, electioneering

communication, ballot measure campaign or an issue advocacy

campaign. The term does not include activities defined as

lobbying under any Federal, State or local law.

"Separate segregated fund." A political action committee

formed by a corporation for the purpose of making contributions

to candidates for office or to political parties. A separate

segregated fund which supports Federal candidates shall have the

same meaning as in section 316 of the Federal Election Campaign

Act of 1971 (Public Law 92-225, 52 U.S.C. § 30118).

Section 1602-A. Shareholder vote on corporate political

activities.

(a) Annual vote.--

(1) Any corporation incorporated in this Commonwealth

that spends in the aggregate $10,000 or more of corporate

treasury funds on all political activities in this

Commonwealth must comply with the requirements of this

section.

(2) Any proxy or consent or authorization for an annual

meeting of the shareholders of a corporation incorporated in

this Commonwealth, or a special meeting in lieu of the

meeting, if proxies are solicited in respect of any security

occurring on or after six months following the date on which

final regulations are published under subsection (d) shall

provide for a separate resolution subject to shareholder vote

to approve any spending of $10,000 or more by the corporation

for any political activity.

(3) Notwithstanding the requirement for an annual

shareholder vote to authorize any spending of $10,000 or more

by the corporation for any political activity, a corporation

may request authorization for spending on political

activities on a more frequent basis. Any authorization

request by the corporation that is not made during an annual

authorization shall be deemed a special authorization.

(4) If a corporation spends less than an aggregate of

$10,000 in a 12-month period for political activities, it

shall not be required to seek shareholder authorization for

the spending.

(b) Shareholder approval.--

(1) When seeking shareholder authorization for

expenditures for political activities, the corporation shall

request the authority to spend a maximum dollar amount in the

next 12 months.

(2) If known at the time of the authorization vote, the

company shall articulate whether the corporate treasury funds

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so authorized are intended to benefit or defeat specific

candidates, ballot measures or issue advocacy campaigns or

whether it will be paid to specific nonprofits or trade

associations for political activities. The following apply:

(i) To be effective, the authorization vote must

garner support from a majority of shareholders.

(ii) A vote by the shareholders to approve or

disapprove any spending of $10,000 or more by a

corporation for a political activity shall be binding on

the corporation.

(iii) Notwithstanding the requirement for an annual

shareholder vote to authorize any spending of $10,000 or

more by the corporation for any political activity, a

corporation may request a special authorization for

additional spending on political activities, provided

that:

(A) all spending on political activities of

$10,000 or more must be authorized by a shareholder

majority vote; and

(B) for any special authorization, the company

shall articulate whether the corporate treasury funds

so authorized are intended to benefit or defeat

candidates, ballot measures or issue advocacy

campaigns or will be paid to specific nonprofits or

trade associations for political activities at the

time the special authorization is requested.

unauthorized contribution or expenditure for a political

activity, the directors at the time that the unauthorized

contribution or expenditure was incurred are jointly and

severally liable to repay to the corporation the amount of the

unauthorized expenditure, with interest at the rate of eight per

cent per year.

(d) Rulemaking.--The department shall promulgate final

regulations to implement this section no later than six months

after the effective date of this section.

(e) Sole proprietorships excluded.--Notwithstanding any

other provision of this section, nothing in this section shall

apply a new duty to the owner of a sole proprietorship.

Section 1603-A. Notification to shareholders of corporate

political activities.

(a) Notification to shareholders.--

(1) At least quarterly during each fiscal year, a

corporation incorporated in this Commonwealth that makes

contributions or expenditures for political activities must

notify its shareholders and the department in writing of the

nature of all its political activities, funded by either its

separate segregated fund or through its general corporate

treasury, including contributions or expenditures made

directly or indirectly.

(2) A report made under this section shall include the

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following:

(i) The date of the contributions or expenditures.

(ii) The amount of the contributions or

expenditures.

(iii) The identity of the candidate, political

party, committee, electioneering communication, ballot

measure campaign or issue advocacy campaign.

(iv) If the contributions or expenditures were made

for or against a candidate, including an electioneering

communication as defined under Federal law, the office

sought by the candidate and the political party

affiliation of the candidate.

(v) If the contributions or expenditures were made

for or against a ballot measure, the purpose of the

measure and whether the contributions or expenditures

were made in support or opposition to the ballot measure.

(vi) If the contributions or expenditures were made

for or against an issue advocacy campaign, the nature of

the political issue and whether the contributions were

made in support or opposition to the political issue.

(vii) All independent expenditures made by a

separate segregated fund affiliated with the corporation.

(b) Public disclosure.--

(1) The quarterly reports of political activities by a

corporation incorporated in this Commonwealth to shareholders

shall be public records.

(2) A copy of the reports filed under subsection (a)(2)

shall be:

(i) submitted to the department; and

(ii) posted for at least one year on the

corporation's publicly accessible Internet website, if

any.

Section 1604-A. Public disclosure of corporate political

activities by the department.

(a) Department duty.--The quarterly reports of political

activities by a corporation incorporated in this Commonwealth to

shareholders shall be made publicly available by the department.

(b) Electronic form.--A quarterly report required to be

filed under this section shall be filed in electronic form using

filing software approved or developed by the department in

addition to filing in any other form that the department may

require by regulation and shall be published on the department's

publicly accessible Internet website.

greatest extent practicable, the quarterly reports on political

activities are publicly available through the department's

publicly accessible Internet website in a format that can be

searched, sorted and downloaded.

Section 1605-A. Report by Department of the Auditor General.

(a) Audit.--On an annual basis, the Department of the

Auditor General shall audit the extent of compliance or

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noncompliance with the requirements of this article by

corporations incorporated under the laws of this Commonwealth,

their management and shareholders, and the effectiveness of the

department in meeting the reporting and disclosure requirements

of this article.

(b) Report.--No later than April 1 of each year, the

Department of the Auditor General shall submit to the Governor a

report on the review required by subsection (a) for the

preceding year.

Section 1606-A. Board approval for all corporate political

expenditures.

(a) Approval required.--Notwithstanding any other provision

of law, a corporation or trade, business or professional

association may not make any campaign contribution or

expenditure unless specifically authorized to do so:

(1) by the vote of the board of directors of the

corporation or of the executive committee of the trade,

business or professional association at a regular or special

meeting of the board of directors or the executive committee;

(2) by the president, vice president, secretary or

treasurer of a corporation whom the board has specifically

empowered to authorize the contributions or expenditures; or

(3) for a corporation, by any other person designated by

resolution of the board of directors of a corporation to

authorize contributions or expenditures.

(b) Form of contribution.--A corporation, trade, business or

professional association may not make any contribution or

expenditure as defined under Federal or State law, other than an

in-kind contribution or expenditure, except by check.

Section 1607-A. Applicability to foreign corporations.

(a) General rule.--A foreign corporation, other than a

foreign association or foreign nonprofit corporation, including

a foreign parent corporation even though it does not itself

transact intrastate business, shall be subject to the

requirements of sections 1602-A, 1603-A, 1604-A and 1605-A, if:

(1) the average of property factor, payroll factor and

sales factor, as described in section 401 of the act of March

4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,

with respect to the foreign corporation, is more than 50%

during its latest full-income year; and

(2) more than one-half of its outstanding voting

securities are held of record by persons having addresses in

this Commonwealth appearing on the books of the corporation

on the record date for the latest meeting of shareholders

held during its latest full-income year or, if no meeting was

held during that year, on the last day of the latest full-

income year.

(b) Determination.--

(1) The determination of the property factor, payroll

factor and sales factor under subsection (a) with respect to

any parent corporation shall be made on a consolidated basis,

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