PRIOR PRINTER'S NO. 490 PRINTER'S NO. 1812
No. 452 Session of 1987
INTRODUCED BY KUKOVICH, MICHLOVIC, BURNS, KOSINSKI, TRELLO, MARKOSEK, ANGSTADT, CALTAGIRONE, McHALE, DAWIDA, ITKIN, DeLUCA, OLIVER, LEVDANSKY, PISTELLA, FREEMAN, LASHINGER, JOSEPHS, LAUGHLIN, J. L. WRIGHT, BORTNER, HARPER, CAWLEY, REBER AND RITTER, FEBRUARY 24, 1987
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 10, 1987
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 Fair 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. Section 1633(a) of the act of June 3, 1937 18 (P.L.1333, No.320), known as the Pennsylvania Election Code, 19 amended November 26, 1978 (P.L.1313, No.318), is amended to 20 read: 21 Section 1633. Contributions or Expenditures by National 22 Banks, Corporations or Unincorporated Associations.--
1 (a) It is unlawful for any National or State bank, 2 partnership or any corporation, incorporated under the laws of 3 this or any other state or any foreign country or any 4 unincorporated association, except those corporations formed 5 primarily for political purposes or as a political committee, to 6 make a contribution or expenditure in connection with the 7 election of any candidate or for any political purpose whatever 8 except in connection with any question to be voted on by the 9 electors of this Commonwealth. Furthermore, it shall be unlawful 10 for any candidate, political committee, or other person to 11 knowingly accept or receive any contribution prohibited by this 12 section, or for any officer or any director of any corporation, 13 bank, or any unincorporated association to consent to any 14 contribution or expenditure by the corporation, bank or 15 unincorporated association, as the case may be, prohibited by 16 this section. 17 * * * 18 Section 2. The act is amended by adding an article to read: 19 ARTICLE XVI-A 20 Campaign Cost Control 21 Section 1601-A. Application of Article.--(a) The provisions 22 of this article shall be applicable to candidates for the 23 following State-wide offices who elect to apply for Pennsylvania 24 Fair Campaign funding hereunder: 25 (1) Governor. 26 (2) Lieutenant Governor. 27 (3) Attorney General. 28 (4) Auditor General. 29 (5) State Treasurer. 30 (6) Supreme Court Justice. 19870H0452B1812 - 2 -
1 (7) Superior Court Judge. 2 (8) Commonwealth Court Judge. 3 (b) For the purposes of this article insofar as it relates 4 to Pennsylvania Fair Campaign funding of nominated candidates in 5 the general election, a political party's or political body's 6 nominated candidates for Governor and Lieutenant Governor shall 7 be considered as one candidacy and the provisions specifically 8 applicable to the Governor shall be applicable to such combined 9 candidacy. 10 Section 1602-A. Administration.--The provisions of this 11 article shall be administered by the Secretary of the 12 Commonwealth hereinafter referred to as the secretary. The 13 secretary may adopt such rules and regulations as may be 14 necessary for the implementation of this article. 15 Section 1603-A. Pennsylvania Fair Campaign Fund Created.-- 16 There is hereby created a special restricted receipts fund in 17 the State Treasury to be known as the "Pennsylvania Fair 18 Campaign Fund." Payments shall be made into said fund pursuant 19 to section 1604-A and disbursements shall be made from said fund 20 only upon the warrant of the Secretary of the Commonwealth and a 21 warrant of the State Treasurer. As much of the moneys in the 22 Pennsylvania Fair Campaign Fund as are necessary to make 23 payments to candidates as provided in this article are 24 appropriated from the Pennsylvania Fair Campaign Fund to the 25 Department of State for the purpose of such payments. 26 Section 1604-A. Allocation of Certain Tax Proceeds to 27 Pennsylvania Fair Campaign Fund.--Beginning with tax years 28 commencing January 1, 1987, and thereafter, each individual 29 subject to the tax imposed by Article III of the act of March 4, 30 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971," 19870H0452B1812 - 3 -
1 whose tax liability for any such year is two dollars and fifty 2 cents ($2.50) or more may designate two dollars and fifty cents 3 ($2.50) of his or her personal income taxes to be paid into the 4 Pennsylvania Fair Campaign Fund. In the case of married 5 taxpayers filing a joint return, each spouse may designate two 6 dollars and fifty cents ($2.50) to be paid into the Pennsylvania 7 Fair Campaign Fund if their tax liability is five dollars 8 ($5.00) or more. All such designated tax revenues shall be paid 9 into the Pennsylvania Fair Campaign Fund. The check-off and 10 instructions shall be prominently displayed on the first page of 11 the return form. The instructions shall readily indicate that 12 any such designations neither increase or decrease an 13 individual's tax liability. 14 Section 1605-A. Certification of Moneys in Pennsylvania Fair 15 Campaign Fund.--By June 30 of each year, the State Treasurer 16 shall certify to the secretary the current balance available in 17 the Pennsylvania Fair Campaign Fund. 18 Section 1606-A. Qualification for Pennsylvania Fair Campaign 19 Funding.--(a) Any candidate for State-wide office as described 20 in section 1601-A may apply for Pennsylvania Fair Campaign 21 funding under this article if such candidate meets the 22 contributory thresholds established in subsection (b) and 23 otherwise conforms to the requirements of this article. No 24 candidate shall be obligated to apply for funding hereunder and 25 if any candidate elects not to apply, the provisions of this 26 article pertaining to limits on expenditures or the use of their 27 personal funds shall be inapplicable to such person and their 28 candidacy. Any candidate electing to receive Pennsylvania Fair 29 Campaign funding must declare his intention to do so and specify 30 the State office for which he is a candidate. Any and all 19870H0452B1812 - 4 -
1 committees authorized to receive contributions or make 2 expenditures for the candidate who has so declared must abide by 3 the provisions of section 1612-A. Any candidate who for any 4 reason has his name withdrawn from the ballot for a State-wide 5 election, after receipt of Pennsylvania Fair Campaign funds, 6 shall return all moneys received to the Pennsylvania Fair 7 Campaign Fund as well as offering back qualifying contributions 8 for that State-wide office. 9 (b) (1) In order to qualify for Pennsylvania Fair Campaign 10 funding in the general election, a candidate must receive 11 subsequent to the date of the primary election but prior to the 12 date of the general election qualifying contributions of the 13 following amounts: 14 Office Qualifying Contributions Required 15 (i) Governor $100,000 16 (ii) Lieutenant Governor 25,000 (for primary only) 17 (iii) State Treasurer 50,000 18 (iv) Auditor General 50,000 19 (v) Attorney General 60,000 20 (vi) Supreme Court Justices 25,000 21 (vii) Superior Court Judges 25,000 22 (viii) Commonwealth Court Judges 25,000 23 (2) In order to qualify for Pennsylvania Fair Campaign 24 funding in the primary election, a candidate must receive prior 25 to the date of the primary election, but subsequent to the 26 immediately preceding general election, one-half of the amount 27 specified in clause (1) for the appropriate office. 28 (3) (i) The term "qualifying contribution" shall include 29 any contribution, as defined in section 1621(b), which has all 30 of the following characteristics: 19870H0452B1812 - 5 -
1 (A) Made by an individual resident of Pennsylvania. 2 (B) Made by a written instrument which indicates the 3 contributor's full name and mailing residence and is not 4 intended to be returned to the contributor or transferred to 5 another political committee or candidate. 6 (ii) If a contributor receives goods or services of value in 7 return for his contribution, the qualifying contribution shall 8 be calculated as the original contribution, minus the fair 9 market value of the goods or services received. 10 (iii) Any contribution by an individual which exceeds one 11 hundred dollars ($100.00) in the aggregate shall be deemed only 12 a one hundred dollar ($100.00) qualifying contribution for the 13 purposes of this section and for the matching payment provisions 14 of section 1607-A. 15 (c) The secretary shall select an auditor pursuant to the 16 provisions of section 1635(a). Each candidate who elects to 17 apply for Pennsylvania Fair Campaign funding shall provide 18 evidence that such candidate has raised the qualifying 19 contributions required by this section which evidence shall be 20 verified and certified as correct to the secretary by the 21 auditor selected hereunder. 22 Section 1607-A. Pennsylvania Fair Campaign Funding 23 Formula.--(a) Every candidate who qualifies for Pennsylvania 24 Fair Campaign funding for either the primary or the general 25 election pursuant to section 1606-A shall receive matching 26 payments from the Pennsylvania Fair Campaign Fund in the amount 27 of two dollars and fifty cents ($2.50) for each dollar of 28 qualifying contribution as defined in section 1606-A(b)(3). 29 (b) The two dollars and fifty cents ($2.50) for each dollar 30 of qualifying contributions provided by this section shall be 19870H0452B1812 - 6 -
1 provided only for qualifying contributions raised which exceed 2 the threshold amounts specified in section 1606-A(b) and not to 3 those qualifying contributions which are attributable to meeting 4 such threshold amounts necessary to qualify for Pennsylvania 5 Fair Campaign funding. 6 (c) (1) Only those qualifying contributions made during the 7 period between a declaration of candidacy and the primary 8 election shall be eligible for matching payments from the 9 Pennsylvania Fair Campaign Fund for the primary election. 10 (2) Only those qualifying contributions made during the 11 period between the primary election and the general election 12 shall be eligible for matching payments from the Pennsylvania 13 Fair Campaign Fund for the general election. 14 (d) Matching funds shall not be provided for any qualifying 15 contribution unless the reporting requirements of section 16 1626(b) are satisfied. 17 Section 1608-A. Limitations on Pennsylvania Fair Campaign 18 Funding.--(a) Every candidate who qualifies for and receives 19 Pennsylvania Fair Campaign funding pursuant to the formula 20 established in section 1607-A shall be entitled to receive no 21 more than the maximum amount specified in subsection (b) for the 22 office such candidate is seeking. 23 (b) (1) The maximum amount of Pennsylvania Fair Campaign 24 funding available for the general election for each candidate 25 under this article shall be as follows: 26 Office Maximum Pennsylvania Fair 27 Campaign Funding 28 (i) Governor $2,000,000 29 (ii) Attorney General 400,000 30 (iii) Auditor General, State 19870H0452B1812 - 7 -
1 Treasurer 300,000 2 (iv) Lieutenant Governor 100,000 (primary only) 3 (v) Supreme Court Justices 150,000 4 (vi) Superior Court Judges 150,000 5 (vii) Commonwealth Court Judges 150,000 6 (2) The maximum amount of Pennsylvania Fair Campaign funding 7 available for the primary election for each candidate under this 8 article shall be one-half the appropriate figure in clause (1). 9 (c) Notwithstanding any other provisions of this article no 10 Pennsylvania Fair Campaign funding shall be provided to the 11 following: 12 (1) Candidates in the general election who have been 13 nominated by both major political parties. 14 (2) Candidates in the primary election who are unopposed for 15 the nomination. 16 (d) As used in this article, "major political party" shall 17 mean a political party whose candidate for Governor received 18 either the highest or second highest number of votes in the 19 preceding gubernatorial election. 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 Fair 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 19870H0452B1812 - 8 -
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 Fair Campaign Funds by 6 Candidates.--(a) Pennsylvania Fair 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 purposes set forth in section 1634.1 except that no fund moneys 10 may be used: 11 (1) To transfer to other candidates or to committees of 12 other candidates or to political committees. 13 (2) To pay for expenditures incurred after the date of the 14 general election. 15 (b) Pennsylvania Fair Campaign funds distributed to a 16 candidate pursuant to this article shall be placed in a single 17 bank account. Expenditures from this account shall be made only 18 for campaign expenses listed in subsection (a). 19 Section 1611-A. Expenditures.--(a) Expenditures made by a 20 candidate and his authorized committees, for all purposes and 21 from all sources, including, but not limited to, amounts of 22 Pennsylvania Fair Campaign funds distributed under this article, 23 proceeds of loans, gifts, contributions from any source or 24 personal funds, subsequent to the date of the primary election, 25 but prior to the date of the general election, may not exceed 26 the amounts specified below: 27 Office Total Expenditure Limits 28 (i) Governor $4,000,000 29 (ii) Lieutenant Governor 200,000 (for primary only) 30 (iii) Attorney General 800,000 19870H0452B1812 - 9 -
1 (iv) State Treasurer 600,000 2 (v) Auditor General 600,000 3 (vi) Justices and Judges 4 of the Supreme Court, 5 Superior Court and 6 Commonwealth Court. 300,000 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 (c) Notwithstanding any other provision of this article, a 12 candidate who accepts public funding pursuant to the formula 13 established in 1607-A, but whose major political party opponent 14 elects not to apply for such public funding, shall not be bound 15 by the expenditure limits specified in this section and such 16 candidate or candidates who accept public funding shall be 17 eligible to qualify for those fair campaign funds which would 18 have otherwise been available to the opponent. 19 Section 1612-A. Limitations on Certain Contributions.--(a) 20 Any candidate for the office of Justice of the Supreme Court or 21 Judge of the Superior Court or Commonwealth Court shall not 22 accept any contribution from an individual or political action 23 committee in excess of two hundred fifty dollars ($250), except 24 that the candidate and spouse may contribute up to twenty-five 25 thousand dollars ($25,000) for each primary, general or special 26 election. Any non-judicial candidate for a State-wide office set 27 forth under this article shall not accept contributions for each 28 primary, general or special election which exceed those 29 specified limits as follows: 30 Contributor Limit 19870H0452B1812 - 10 -
1 (1) Individual $1,000 2 (2) Candidate and spouse 25,000 3 (3) Political action committee 4 as defined in section 1621(1) 1,000 5 (b) Aggregate contributions during the year of the election 6 by a political party committee or candidate's political 7 committee to candidates receiving Pennsylvania Fair Campaign 8 funding shall not exceed the sum of contributions from 9 individuals to the committee, provided that whenever 10 contributions in the aggregate during the year of the election 11 from an individual exceed one thousand dollars ($1,000), only 12 one thousand dollars ($1,000) shall be included in that sum. 13 (c) A gift, subscription, loan, advance or deposit of money 14 or anything of value to a candidate shall be considered a 15 contribution both by the original source of the contribution and 16 by any intermediary or conduit if the intermediary or conduit 17 (1) exercises any control or any direction over the making of 18 the contribution; or (2) solicits the contribution or arranges 19 for the contribution to be made and directly or indirectly makes 20 the candidate aware of such intermediary or conduit's role in 21 soliciting or arranging the contribution for such candidate. 22 (d) For purposes of subsection (c), a contribution shall not 23 be considered to be a contribution by an intermediary or conduit 24 to the candidate if (1) the intermediary or conduit has been 25 retained by the candidate's committee for the purpose of fund- 26 raising and is reimbursed for expenses incurred in soliciting 27 contributions; (2) in the case of an individual, the candidate 28 has expressly authorized the intermediary or conduit to engage 29 in fund-raising, or the individual occupies a significant 30 position within the candidate's campaign organization; or (3) in 19870H0452B1812 - 11 -
1 the case of a political committee, the intermediary or conduit 2 is an authorized committee of the candidate. 3 Section 1613-A. Inflation Indexing of Certain Limitations.-- 4 The dollar figures contained in sections 1606-A, 1608-A and 5 1611-A shall be adjusted annually during March at a rate equal 6 to the average percentage change in the All-Urban Consumer Price 7 Index for the Pittsburgh, Philadelphia and Scranton standard 8 metropolitan statistical areas as published by the Bureau of 9 Labor Statistics of the United States Department of Labor, or 10 any successor agency, occurring in the prior calendar year. The 11 base year shall be 1986. The average shall be calculated and 12 certified by the secretary annually by adding the percentage 13 increase in each of the three areas and dividing by three. The 14 calculation and resulting new figures shall be published in the 15 Pennsylvania Bulletin during March. 16 Section 1614-A. Annual Report.--The secretary shall report 17 annually to the General Assembly and the Governor on the 18 operations of Pennsylvania Fair Campaign funding as provided by 19 this article. Such report shall include, but not be limited to, 20 the revenues and expenditures in the Pennsylvania Fair Campaign 21 Fund, the amounts distributed to candidates, the results of any 22 audits performed on candidates in compliance with the provisions 23 of this article and any prosecutions brought for violations of 24 this article. 25 Section 1615-A. Repayment of Borrowed Funds.--Any funds 26 borrowed by any candidate or his campaign treasurer or committee 27 for the purpose of nomination or election of the candidate shall 28 be repaid in full by the candidate prior to the date of the 29 general election in which he is a candidate for office. 30 Section 1616-A. Return of Excess Funds.--All unexpended 19870H0452B1812 - 12 -
1 campaign funds in a candidate's and his authorized committees' 2 possession sixty (60) days after the election shall be returned 3 to the secretary for deposit in the Pennsylvania Fair Campaign 4 Fund, up to the amount of the funds which were distributed to 5 the candidate under this article. 6 Section 1617-A. Penalties.--(a) A person who violates the 7 provisions of this act and who, as a result, obtains 8 Pennsylvania Fair Campaign funds to which he is not entitled 9 commits a misdemeanor of the first degree and upon conviction 10 shall be subject to a fine not to exceed the greater of ten 11 thousand dollars ($10,000) or three times the amount of funds 12 wrongfully obtained, or imprisonment for up to five years or 13 both such fine and imprisonment. 14 (b) A person who violates section 1610-A or 1611-A of this 15 act commits a misdemeanor of the first degree and upon 16 conviction shall be subject to a fine not to exceed the greater 17 of ten thousand dollars ($10,000) or three times the amount of 18 funds that were wrongfully used or expended or to imprisonment 19 for up to five years, or to both such fine and imprisonment. 20 (c) Except as provided in subsections (a) and (b) of this 21 section, a person who violates any provision of this act commits 22 a misdemeanor of the third degree and upon conviction shall be 23 subject to a fine of not more than one thousand dollars ($1,000) 24 or imprisonment for up to one year or both. 25 Section 3. This act shall be applicable to returns of 26 taxpayers of calendar years commencing January 1, 1987, and 27 thereafter. Pennsylvania Fair Campaign funding shall be first 28 provided for candidates for Statewide office in the primary 29 election of 1988 1989 and in each primary, municipal and general <-- 30 election thereafter. 19870H0452B1812 - 13 -
1 Section 4. This act shall take effect immediately. B18L25JLW/19870H0452B1812 - 14 -