PRINTER'S NO. 3487

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2678 Session of 1994


        INTRODUCED BY FAJT, APRIL 11, 1994

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 11, 1994

                                     AN ACT

     1  Limiting contributions and expenditures associated with
     2     political campaigns; imposing penalties; and making a repeal.

     3                         TABLE OF CONTENTS
     4  Chapter 1.  General Provisions
     5  Section 101.  Short title.
     6  Section 102.  Definitions.
     7  Chapter 3.  Contributions
     8  Section 301.  Limitations on contributions from a person.
     9  Section 302.  Limitations on contributions from political
    10                 parties and legislative caucuses.
    11  Section 303.  Limitations on total nonindividual contributions
    12                 a candidate committee may accept.
    13  Section 304.  Prohibition on contributions by a corporation
    14                 and an organization.
    15  Section 305.  Prohibition on transfer of funds between
    16                 committees.
    17  Section 306.  Aggregation of contributions.


     1  Section 307.  Attribution and aggregation of family
     2                 contributions.
     3  Section 308.  Restrictions on loans.
     4  Section 309.  Anonymous contributions.
     5  Section 310.  Contributions on behalf of another.
     6  Section 311.  Cash contributions.
     7  Section 312.  Certain contributions required to be by written
     8                 instrument.
     9  Section 313.  Miscellaneous restrictions.
    10  Chapter 5.  Expenditures.
    11  Section 501.  Limitation on expenditures.
    12  Section 502.  Petty cash fund.
    13  Section 503.  Independent expenditures.
    14  Chapter 7.  Penalties
    15  Section 701.  Penalties.
    16  Chapter 9.  Miscellaneous Provisions
    17  Section 901.  Repeal.
    18  Section 902.  Applicability.
    19  Section 903.  Effective date.
    20     The General Assembly of the Commonwealth of Pennsylvania
    21  hereby enacts as follows:
    22                             CHAPTER 1
    23                         GENERAL PROVISIONS
    24  Section 101.  Short title.
    25     This act shall be known and may be cited as the Campaign
    26  Finance Reform Law.
    27  Section 102.  Definitions.
    28     The following words and phrases when used in this act shall
    29  have the meanings given to them in this section unless the
    30  context clearly indicates otherwise:
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     1     "Accounts receivable."  An unfulfilled pledge, subscription,
     2  agreement or promise, whether or not legally enforceable, to
     3  make a contribution.
     4     "Ballot measure."  An initiative, referendum or any
     5  proposition or measure submitted to voters for their approval.
     6     "Candidate."  An individual who seeks nomination or election
     7  to elective office. An individual is a candidate when the
     8  individual:
     9         (1)  Files a statement of candidacy or petition for
    10     nomination for office with the appropriate filing officer.
    11         (2)  Is nominated for office by:
    12             (i)  a party at a primary;
    13             (ii)  nominating convention; or
    14             (iii)  petition for nomination.
    15         (3)  Solicits or receives and accepts contributions,
    16     makes expenditures or gives consent to an individual,
    17     organization, political party or committee to solicit or
    18     receive and accept contributions or make expenditures to
    19     secure nomination or election to any office at any time,
    20     whether or not the office for which the individual will seek
    21     nomination or election is known when:
    22             (i)  the solicitation is made;
    23             (ii)  the contribution is received and retained; or
    24             (iii)  the expenditure is made.
    25     "Candidate committee."  The committee designated by a
    26  candidate to:
    27         (1)  Promote the candidate's candidacy.
    28         (2)  Serve as the recipient of all contributions and the
    29     disburser of all expenditures.
    30     "Committee."  Includes a candidate committee, controlled
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     1  committee, legislative caucus committee, party committee and a
     2  political committee.
     3     "Contribution."
     4         (1)  Includes the following:
     5             (i)  A gift, subscription, loan, guarantee or
     6         forgiveness of a loan, conveyance, advance, payment,
     7         distribution or deposit of money or anything of value
     8         made to a political party or for influencing the results
     9         of an election, including a ballot measure election, or
    10         reducing the debt of a candidate for nomination or
    11         election to public office.
    12             (ii)  A written contract, promise or agreement to
    13         make a contribution for any purpose described in
    14         paragraph (1).
    15             (iii)  An expenditure made by a person or committee,
    16         other than a candidate committee, with the cooperation of
    17         or in consultation with a committee, a candidate,
    18         candidate committee or candidate's agent or made in
    19         concert with or at the request or suggestion of a
    20         candidate, candidate committee or candidate's agent.
    21             (iv)  The payment to a person other than a candidate
    22         or committee of compensation for personal services that
    23         are rendered to a candidate or committee at a rate less
    24         than the reasonable and customary charge to the candidate
    25         or committee for those services.
    26             (v)  Funds or anything of value received by a
    27         committee that are transferred from another committee or
    28         other source.
    29             (vi)  The purchase of tickets for an event such as a
    30         meal, reception, rally and a similar fundraising event.
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     1             (vii)  The candidate's own money used on behalf of
     2         that candidate's candidacy.
     3             (viii)  The granting of a discount or rebate:
     4                 (A)  not extended to the public generally; or
     5                 (B)  by a television or radio station not
     6             extended equally to all candidates for the same
     7             office.
     8         (2)  The term does not include the following:
     9             (i)  Volunteer personal services.
    10             (ii)  A payment made by an individual for the
    11         individual's own travel expenses if the payment is made
    12         voluntarily without an understanding or agreement that
    13         the payment will be repaid to the individual.
    14             (iii)  A payment made by an occupant of a residence
    15         or office for costs related to a meeting or fundraising
    16         event held in the occupant's residence or office if the
    17         costs for the meeting or fundraising event do not exceed
    18         $500. However, if the occupant hosts more than one event
    19         in an election cycle for the same beneficiary, all
    20         subsequent payments that exceed $500 in the aggregate are
    21         a contribution.
    22             (iv)  A loan of money made in the ordinary course of
    23         business by a financial institution authorized to
    24         transact business in this Commonwealth at terms and
    25         interest rates generally available to a member of the
    26         public without regard to that person's status as a public
    27         official or public employee by the institution.
    28             (v)  Nonpartisan voter registration activities.
    29             (vi)  A communication by a corporation, organization
    30         or association aimed at its members, owners, stockholders
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     1         or executive administrative personnel or their families.
     2             (vii)  An offer or tender of a contribution if the
     3         offer or tender is:
     4                 (A)  expressly and unconditionally rejected and
     5             returned to the contributor within two days; and
     6                 (B)  is not negotiated, deposited or used,
     7             including as collateral, or is escheated to the
     8             Commonwealth if the contribution is an anonymous
     9             contribution.
    10     "Controlled committee."  A committee which in connection with
    11  the making of expenditures:
    12         (1)  is controlled directly or indirectly by a candidate;
    13         or
    14         (2)  acts jointly with a candidate or controlled
    15     committee.
    16  A candidate controls a committee if the candidate, the
    17  candidate's agent or any other committee the candidate controls
    18  has a significant influence on the actions or decisions of the
    19  committee.
    20     "Corporation."  An entity organized in the corporate form
    21  under Federal or State law.
    22     "Election."  A primary, general or special election in which
    23  a candidate or ballot measure is on the ballot.
    24     "Election cycle."  A period beginning the day after the
    25  general election, up to and including the following general
    26  election, including a primary, special primary and the following
    27  special general election.
    28     "Elective official."  An individual elected to a State,
    29  regional, county or municipal office or an individual who is
    30  appointed to fill a vacancy in the office.
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     1     "Expenditure."  A purchase, payment, distribution, loan,
     2  forgiveness of a loan or payment of a loan by a third party,
     3  advance, deposit, transfer of funds between committees, a
     4  promise to make a payment, or a gift of money or anything of
     5  value made to influence the results of an election or reducing
     6  the debt of a candidate for nomination or election to office.
     7  The term does not include the following:
     8         (1)  A loan of money, made in the ordinary course of
     9     business, by a financial institution authorized to transact
    10     business in this Commonwealth.
    11         (2)  Nonpartisan voter registration activities.
    12         (3)  A communication by a corporation, organization or
    13     association aimed at its members, owners, stockholders or
    14     executive administrative personnel or their families, except
    15     an extraordinary committee promoting or opposing a candidate
    16     or candidates.
    17         (4)  Uncompensated services provided by an individual
    18     volunteering the individual's time.
    19         (5)  A payment made by an occupant of a residence or
    20     office for costs related to a meeting or fundraising event
    21     held in the occupant's residence or office if the costs for
    22     the meeting or fundraising event do not exceed $500. However,
    23     if the occupant hosts more than one event per election for
    24     the same beneficiary, all subsequent payments that exceed
    25     $500 in the aggregate are an expenditure.
    26         (6)  An offer or tender of an expenditure if the offer or
    27     tender is expressly and unconditionally rejected and returned
    28     to the person making the expenditure within the time
    29     prescribed by this act.
    30     "Expenditures incurred."  An amount owed to a creditor for
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     1  purchase of delivered goods or completed services.
     2     "Immediate family."  An unemancipated child residing in a
     3  candidate's household, a spouse of a candidate or an individual
     4  claimed by that candidate or that candidate's spouse as a
     5  dependent for Federal income tax purposes.
     6     "Independent expenditure."  An expenditure made by a person
     7  to advocate the election or defeat of a clearly identified
     8  candidate or, taken as a whole and in context, expressly urges a
     9  particular result in an election, but which is not made to,
    10  controlled by, coordinated with, requested by or made upon
    11  consultation with a candidate, committee or agent of a candidate
    12  or committee.
    13     "In-kind contribution or expenditure."  Goods or services
    14  provided to or by a person at no charge or for less than their
    15  fair market value.
    16     "Intermediary."  An individual who transmits a contribution
    17  to a candidate or committee from another person unless the
    18  contribution is from the individual's employer, immediate family
    19  or an association to which the individual belongs. A treasurer
    20  or a candidate is not an intermediary for purposes of the
    21  committee that the treasurer or candidate serves. A professional
    22  fundraiser is not an intermediary if the fundraiser is
    23  compensated for fundraising services at the usual and customary
    24  rate. A volunteer hosting a fundraising event at the
    25  individual's home is not an intermediary for purposes of that
    26  event.
    27     "Legislative caucus committee."  A committee controlled by
    28  the caucus of each political party of each house of the General
    29  Assembly. Each party of each house may establish only one such
    30  committee. A legislative caucus committee is not a candidate-
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     1  controlled committee.
     2     "Loan."  A transfer of money, property, guarantee or anything
     3  of value in exchange for an obligation, conditional or not, to
     4  repay in whole or part.
     5     "Organization."  Includes a:
     6         (1)  Labor organization.
     7         (2)  Collective bargaining organization.
     8         (3)  National, State or local organization to which a
     9     labor organization pays membership or per capita fees based
    10     upon its affiliation and membership.
    11         (4)  Trade or professional association that receives its
    12     funds exclusively from membership dues or service fees,
    13     whether organized within or outside this Commonwealth.
    14     "Party committee."  The generally recognized organization
    15  which, according to the bylaws of the political party, is
    16  responsible for the daily operation of the party at a State or
    17  local level.
    18     "Person."  An individual, proprietorship, firm, partnership,
    19  joint venture, joint-stock company, syndicate, business trust,
    20  estate, company, corporation, association, club, committee,
    21  organization or group of persons acting in concert.
    22     "Political committee."  A person or a combination of persons
    23  which:
    24         (1)  receives and accepts contributions aggregating at
    25     least $500 in a calendar year;
    26         (2)  makes independent expenditures aggregating at least
    27     $500 in a calendar year; or
    28         (3)  makes contributions aggregating at least $5,000 in a
    29     calendar year to or at the request of a candidate or
    30     committee.
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     1  The term does not include a party committee or legislative
     2  caucus committee.
     3     "Public property."  Resources such as stationery, postage,
     4  equipment, vehicles, office space, publications and lists
     5  compiled or obtained by a government entity.
     6     "Public time."  The use of a public employee's time during
     7  regular working hours or while on duty or use of a public
     8  official's time while on duty, regardless of whether the
     9  elective official is compensated.
    10     "Regulated industry."  A telephone, telegraph, electric, gas,
    11  water, sewer or other utility whose rates are determined by the
    12  Commonwealth or a political subdivision. The term includes an
    13  insurance company, national or State bank or credit union,
    14  corporation organized in whole or in part to operate a lottery
    15  or pari-mutuel wagering facilities, or a public or quasi-public
    16  board, commission, agency or entity recognized and funded by
    17  State law.
    18     "State office."  An office other than a Federal office
    19  eligible to be voted upon by all electors of this Commonwealth
    20  and the General Assembly.
    21     "Transfer."  The movement or exchange of funds or anything of
    22  value between political committees, party committees or
    23  candidate committees, except the disposition of surplus funds or
    24  material assets by a candidate committee to a party committee in
    25  accordance with the dissolution procedures of this act.
    26     "Volunteer."  An individual who:
    27         (1)  is not self-employed who provides services free of
    28     charge outside the individual's normal working hours; or
    29         (2)  is self-employed who provides services free of
    30     charge if the individual does not ordinarily sell or
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     1     otherwise charge for services.
     2                             CHAPTER 3
     3                           CONTRIBUTIONS
     4  Section 301.  Limitations on contributions from a person.
     5     (a)  Limitations.--The following limitations shall apply:
     6         (1)  For each election in which the candidate is on the
     7     ballot or is a write-in candidate, a person or political
     8     committee may not make to a candidate committee, and a
     9     candidate committee may not accept from a person or political
    10     committee, contributions aggregating more than:
    11                      Office              Limit of contributions
    12             (i)  Governor or elective               $5,000
    13                  officials of counties
    14                  or municipalities of
    15                  more than 100,000 in
    16                  population.
    17             (ii)  Other Statewide offices.          $2,500
    18             (iii)  Senator.                         $1,000
    19             (iv)  Member of the House of            $  500
    20                   Representatives.
    21         (2)  A person or political committee may not make to a
    22     political committee, and a political committee may not
    23     accept, contributions from one person or political committee
    24     aggregating more than $1,000 per calendar year.
    25         (3)  A person may not make to a political party
    26     committee, and a party committee or legislative caucus
    27     committee may not accept from a person, contributions
    28     aggregating more than $5,000 in a calendar year.
    29         (4)  A person may not make to candidate committees or
    30     political committees supporting or opposing candidates
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     1     contributions aggregating more than $25,000 in an election
     2     cycle.
     3         (5)  A political committee may not make to candidate
     4     committees or political committees supporting or opposing
     5     candidates contributions aggregating more than $100,000 in an
     6     election cycle.
     7     (b)  Nonapplication.--Subsection (a)(1) shall not apply to:
     8         (1)  a candidate making a contribution to the candidate's
     9     own campaign;
    10         (2)  contributions to a political committee;
    11         (3)  contributions to or from a legislative caucus
    12     committee; or
    13         (4)  contributions to or from a political party
    14     committee.
    15  Section 302.  Limitations on contributions from political
    16                 parties and legislative caucuses.
    17     A candidate committee may not accept contributions from a
    18  party committee or legislative caucus committee in each election
    19  year of more than:
    20                      Office              Limit of contributions
    21             (1)  Governor or elective               $100,000
    22                  officials of counties
    23                  or municipalities of
    24                  more than 100,000 in
    25                  population.
    26             (2)  Non-Federal Statewide              $ 50,000
    27                   offices.
    28             (3)  Senator.                           $ 35,000
    29             (4)  Member of the House of             $ 15,000
    30                   Representatives.
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     1  Section 303.  Limitations on total nonindividual contributions a
     2                 candidate committee may accept.
     3     A candidate committee may not accept contributions from
     4  organizations and political committees in an election of more
     5  than:
     6                      Office              Limit of contributions
     7             (1)  Governor or elective               $500,000
     8                  officials of counties
     9                  or municipalities of
    10                  more than 100,000 in
    11                  population.
    12             (2)  Non-Federal Statewide              $100,000
    13                   offices.
    14             (3)  Senator.                           $ 35,000
    15             (4)  Member of the House of             $ 15,000
    16                   Representatives.
    17  Section 304.  Prohibition on contributions by a corporation and
    18                 an organization.
    19     (a)  General rule.--A corporation or an organization may not
    20  make a contribution or expenditure to or for the benefit of a
    21  candidate or committee in connection with an election, except
    22  that this provision shall not apply to any of the following:
    23         (1)  a campaign or committee solely for or against a
    24     ballot measure;
    25         (2)  communications by a corporation to its shareholders,
    26     directors and executive or administrative personnel and their
    27     families;
    28         (3)  communications by an organization to its directors,
    29     members and their families on any subject;
    30         (4)  nonpartisan voter registration and get-out-the-vote
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     1     campaigns by a corporation to its shareholders, directors and
     2     executive or administrative personnel and their families;
     3         (5)  nonpartisan voter registration and get-out-the-vote
     4     campaigns by an organization to its directors, members and
     5     their families on any subject; and
     6         (6)  the establishment, administration and solicitation
     7     of contributions to a political committee to be utilized for
     8     political purposes by a corporation or organization.
     9     (b)  Unlawful acts.--It shall be unlawful for:
    10         (1)  A political committee to make a contribution or
    11     expenditure by using anything of value secured by physical
    12     force, job discrimination, financial reprisals or threat of
    13     the same, or by dues, fees or other moneys required as a
    14     condition of membership in a labor organization or as a
    15     condition of employment, or by moneys obtained in a
    16     commercial transaction.
    17         (2)  A person who is soliciting an employee for a
    18     contribution to fail to inform the employee of the political
    19     purposes of the committee and of the employee's right to
    20     refuse to contribute without any advantage or promise of an
    21     advantage conditioned upon making the contribution or
    22     reprisal or threat of reprisal related to the failure to make
    23     the contribution.
    24         (3)  A corporation or political committee of a
    25     corporation to solicit contributions to the political
    26     committee from a person other than its shareholders,
    27     directors, executive and administrative personnel and their
    28     families.
    29         (4)  An organization or political committee of an
    30     organization to solicit contributions to such a committee
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     1     from a person other than its members and their families.
     2  Section 305.  Prohibition on transfer of funds between
     3                 committees.
     4     (a)  General rule.--A candidate committee or a committee
     5  controlled by a candidate may not make a contribution to another
     6  candidate or make an independent expenditure on behalf of
     7  another candidate.
     8     (b)  Construction of section.--This section does not prohibit
     9  a candidate from making a contribution from the candidate's own
    10  funds on behalf of the candidate's candidacy or to the committee
    11  of another candidate for a different office. This section does
    12  not prohibit a candidate committee from providing its surplus
    13  funds or material assets to a party committee in accordance with
    14  the procedures for dissolution of a candidate committee under
    15  this act.
    16  Section 306.  Aggregation of contributions.
    17     For purposes of the contribution limitations, the following
    18  apply:
    19         (1)  All contributions made by a political committee
    20     whose contribution or expenditure activity is financed,
    21     maintained or controlled by a corporation, labor
    22     organization, association, political party or any other
    23     person or committee, including a parent, subsidiary, branch,
    24     division, department or local unit of the corporation, labor
    25     organization, association, political party or any other
    26     person or by a group of such persons are considered made by
    27     the same political committee.
    28         (2)  Two or more entities are treated as a single entity
    29     if the entities:
    30             (i)  share the majority of members on their boards of
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     1         directors;
     2             (ii)  share two or more officers;
     3             (iii)  are owned or controlled by the same majority
     4         shareholder or shareholders;
     5             (iv)  are in a parent-subsidiary relationship; or
     6             (v)  have bylaws so stating.
     7         (3)  A candidate committee and a committee other than a
     8     candidate committee are treated as a single committee if the
     9     committees both have the candidate or member of the
    10     candidate's immediate family as an officer.
    11  Section 307.  Attribution and aggregation of family
    12                 contributions.
    13     Contributions by a husband and wife are considered separate
    14  contributions and not aggregated. Contributions by unemancipated
    15  children under 18 years of age are considered contributions by
    16  their parents and attributed proportionately to each parent.
    17  Fifty percent of the contributions are attributed to each parent
    18  or, in the case of a single custodial parent, the total amount
    19  is attributed to the parent.
    20  Section 308.  Restrictions on loans.
    21     (a)  Restrictions.--A loan is considered a contribution from
    22  the maker and the guarantor of the loan and is subject to the
    23  contribution limitations of this act. A loan to a candidate or
    24  the candidate committee must be by written agreement.
    25     (b)  Loans not subject to contribution limits.--The proceeds
    26  of a loan made to a candidate under all of the following
    27  circumstances are not subject to the contribution limits of this
    28  act:
    29         (1)  The loan is made by a commercial lending
    30     institution.
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     1         (2)  The loan is made in the regular course of business.
     2         (3)  The terms of the loan are the same terms ordinarily
     3     available to members of the public.
     4         (4)  The loan is secured or guaranteed.
     5  Section 309.  Anonymous contributions.
     6     A person may not make to a committee and a committee may not
     7  accept an anonymous contribution exceeding $100 in a calendar
     8  year. The recipient of an anonymous contribution of more than
     9  the disclosure threshold for a contribution may not keep the
    10  contribution but shall within two days remit the contribution to
    11  the State Treasurer and report the action to the Department of
    12  State.
    13  Section 310.  Contributions on behalf of another.
    14     A person, other than an individual, may not be an
    15  intermediary or an agent for a contribution. An individual may
    16  not make a contribution on behalf of another person, or while
    17  acting as the intermediary or agent of another person, without
    18  disclosing to the recipient of the contribution his full name,
    19  street address, occupation, name of employer, if any, or place
    20  of business if self-employed, and the same information for each
    21  contributor for whom the individual serves as intermediary or
    22  agent.
    23  Section 311.  Cash contributions.
    24     An individual may not make to a committee and a committee may
    25  not accept a contribution of more than $100 in cash. A committee
    26  may not make a contribution in cash.
    27  Section 312.  Certain contributions required to be by written
    28                 instrument.
    29     An individual may not make a contribution of more than $100,
    30  other than an in-kind contribution, except by written instrument
    19940H2678B3487                 - 17 -

     1  containing the name of the donor and the name of the payee. A
     2  committee may not make a contribution, other than in-kind,
     3  except by written instrument containing the name of the donor
     4  and the name of the payee.
     5  Section 313.  Miscellaneous restrictions.
     6     (a)  Public utilities.--A public utility may not include in
     7  operating expenses a contribution or expenditure to influence an
     8  election or to operate a political action committee.
     9     (b)  Employers.--An employer may not provide an advantage or
    10  disadvantage to an employee concerning the employee's employment
    11  or conditions of employment based on the employee's
    12  contribution, promise to contribute or failure to contribute to
    13  a candidate, committee or political party.
    14     (c)  Reimbursement.--A person may not, directly or
    15  indirectly, reimburse a person for a contribution to a
    16  candidate, committee or political party.
    17                             CHAPTER 5
    18                            EXPENDITURES
    19  Section 501.  Limitation on expenditures.
    20     The following limitations shall apply:
    21         (1)  An expenditure may not be authorized or made by a
    22     committee while there is a vacancy in the office of campaign
    23     treasurer.
    24         (2)  A candidate may make expenditures on behalf of the
    25     candidate's candidacy only through a contribution to the
    26     candidate's candidate committee.
    27         (3)  A candidate or the candidate's immediate family may
    28     not receive payments, other than reimbursements, from a
    29     committee. Committee funds may not be used to defray personal
    30     living expenses for the candidate or the candidate's
    19940H2678B3487                 - 18 -

     1     immediate family which are unrelated to the campaign or the
     2     office if the person is an officeholder.
     3         (4)  (i)  An expenditure may not be made and a person may
     4         not pay money or anything of value for speaking in
     5         furtherance of a candidate's candidacy.
     6             (ii)  The candidate or a person speaking for the
     7         candidate may not pay money or anything of value for the
     8         privilege.
     9             (iii)  This paragraph shall not apply to the payment
    10         of reasonable and necessary travel expenses or to food or
    11         beverages consumed by the candidate while at and in
    12         connection with the speaking engagement.
    13         (5)  An expenditure may only be made by a committee to
    14     influence or attempt to influence the actions of the voters
    15     for or against the nomination or election of a candidate to
    16     the office for which the candidate has filed, or for
    17     officeholder expenses. An expenditure may not be made if it
    18     is clear from the surrounding circumstances that it was not
    19     made for these purposes. This paragraph does not apply to:
    20             (i)  Thank you advertisements by a candidate after an
    21         election.
    22             (ii)  An election night victory party.
    23             (iii)  Fees of lawyers or accountants necessary to
    24         comply with this act or to represent the candidate or
    25         committee in a subsequent proceeding arising from the
    26         campaign.
    27         (6)  An expenditure of funds may not be made which the
    28     candidate or committee knows, has reason to believe or
    29     reasonably should know were contributed to the committee in
    30     violation of this act.
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     1         (7)  An expenditure of more than $25:
     2             (i)  May not be made in cash.
     3             (ii)  Must be made by written instrument drawn upon
     4         the campaign account containing the name of the committee
     5         and the name of the recipient.
     6         (8)  An expenditure of more than $25 must be accounted
     7     for by a written receipt indicating:
     8             (i)  The date of the expenditure.
     9             (ii)  The amount.
    10             (iii)  The name and address of the recipient.
    11             (iv)  The reason for the expenditure.
    12             (v)  The form of the expenditure, including cash,
    13         credit card, check or money order.
    14         (9)  An expenditure may not be made, other than for
    15     overhead or normal operating expenses, by an agent,
    16     independent contractor or advertising agency on behalf of or
    17     for the benefit of a committee unless the expenditure is
    18     reported by the committee as if the expenditure were made
    19     directly by the committee. The agent, independent contractor
    20     or advertising agency shall make all information required to
    21     be reported available to the committee.
    22         (10)  An expenditure may not be made that is clearly in
    23     excess of the fair market value of services, materials,
    24     facilities or other things of value received in exchange.
    25  Section 502.  Petty cash fund.
    26     (a)  General rule.--A campaign treasurer may withdraw from
    27  the campaign account not more than $500 to establish or
    28  replenish a petty cash fund for the candidate or committee at
    29  any time, but at no time may the fund exceed $500.
    30     (b)  Expenditures from petty cash fund.--An expenditure from
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     1  the petty cash fund:
     2         (1)  May not be made in an amount of more than $25.
     3         (2)  May be made only for office supplies, transportation
     4     expenses and other necessities.
     5         (3)  May not be used for the purchase of time, space or
     6     services from the media.
     7  Section 503.  Independent expenditures.
     8     (a)  Notice requirement.--A committee which makes an
     9  independent expenditure of $500 or more for a written
    10  communication to voters supporting or opposing a candidate shall
    11  include the following statement on the communication:
    12                          Notice to Voters
    13                         (Required by Law)
    14         This advertisement is not authorized or approved by any
    15         candidate. It is paid for by (name, address, city,
    16         state).
    17     (b)  Printing and broadcast requirements.--A statement under
    18  subsection (a) must:
    19         (1)  appear on each page or fold of the written
    20     communication in at least 10-point type or in type at least
    21     10% of the largest size type used in a written communication
    22     directed at more than one voter, such as a billboard or
    23     poster, whichever is larger;
    24         (2)  not be subject to the half-tone or screening
    25     process;
    26         (3)  be in a printed or drawn box set apart from any
    27     other printed matter; or
    28         (4)  be clearly spoken on any broadcast advertisement.
    29     (c)  Report of independent expenditures.--A committee that
    30  makes an independent expenditure of $500 or more after the
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     1  closing date of the preelection reporting period shall report
     2  the expenditure to the Department of State within 24 hours of
     3  making the expenditure by hand delivery, facsimile transmission,
     4  telegram or express delivery service. The expenditure must be
     5  itemized by name, address and purpose. This information must be
     6  included on the next report filed by the committee.
     7                             CHAPTER 7
     8                             PENALTIES
     9  Section 701.  Penalties.
    10     (a)  Unlawfully obtaining funds.--A person who violates the
    11  provisions of this act and who, as a result, obtains funds under
    12  this act to which he is not entitled commits a misdemeanor of
    13  the first degree and shall, upon conviction, be subject to a
    14  fine of not more than $10,000 or three times the amount of funds
    15  wrongfully obtained or to imprisonment for not more than five
    16  years, or both.
    17     (b)  Other violations.--Except as provided in subsection (a),
    18  a person who violates any provision of this act commits a
    19  misdemeanor of the third degree and shall, upon conviction, be
    20  subject to a fine of not more than $1,000 or to imprisonment for
    21  up to one year, or both.
    22                             CHAPTER 9
    23                      MISCELLANEOUS PROVISIONS
    24  Section 901.  Repeal.
    25     The act of June 3, 1937 (P.L.1333, No.320), known as the
    26  Pennsylvania Election Code, is repealed to the extent it is
    27  inconsistent with this act.
    28  Section 902.  Applicability.
    29     This act shall apply to candidates for elective office under
    30  this act beginning with the primary election of 1996.
    19940H2678B3487                 - 22 -

     1  Section 903.  Effective date.
     2     This act shall take effect immediately.



















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