PRIOR PRINTER'S NO. 3823                      PRINTER'S NO. 4064

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2873 Session of 1994


        INTRODUCED BY KUKOVICH, DeWEESE, LEVDANSKY, MICHLOVIC, DeLUCA,
           BATTISTO, CAPPABIANCA, CHADWICK, COWELL, CURRY, FAJT,
           FREEMAN, HANNA, JOSEPHS, BEBKO-JONES, KAISER, KASUNIC, KREBS,
           LAUGHLIN, MANDERINO, MELIO, MIHALICH, MUNDY, PESCI, PETRARCA,
           RAYMOND, RITTER, ROBINSON, ROONEY, STEELMAN, STETLER, STISH,
           STURLA, TANGRETTI, TIGUE, NICKOL AND MASLAND, JUNE 7, 1994

        AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF
           REPRESENTATIVES, AS AMENDED, SEPTEMBER 26, 1994

                                     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," further providing for the form of official
    12     primary ballots; further defining "independent expenditure";
    13     further providing for reporting; providing for funding of
    14     certain Statewide elections; limiting certain contributions;
    15     imposing powers and duties on the Department of State; and
    16     providing penalties.

    17     The General Assembly of the Commonwealth of Pennsylvania
    18  hereby enacts as follows:
    19     Section 1.  Section 1002(b) of the act of June 3, 1937
    20  (P.L.1333, No.320), known as the Pennsylvania Election Code,
    21  amended December 2, 1976 (P.L.1221, No.269), is amended to read:
    22     Section 1002.  Form of Official Primary Ballot.--* * *


     1     (b)  On the back of each ballot shall be printed in prominent
     2  type the words "OFFICIAL PRIMARY BALLOT OF ........PARTY FOR"
     3  followed by the designation of the election district for which
     4  it is prepared, the date of the primary and the facsimile
     5  signatures of the members of the county board of elections.
     6  [The] Except in the case of candidates for State-wide judicial
     7  office, the names of candidates shall [in all cases] be arranged
     8  under the title of the office for which they are candidates, and
     9  be printed thereunder in the order determined by the casting of
    10  lots as provided by this act. The names of all candidates for a
    11  State-wide judicial office shall be arranged in a group under
    12  the title of that office and shall be rotated from one county to
    13  another. THE DEPARTMENT SHALL DEVELOP A LOTTERY SYSTEM TO ASSURE  <--
    14  THAT THE NAME OF EACH STATE-WIDE JUDICIAL CANDIDATE WILL BE
    15  ROTATED SO THAT IT WILL APPEAR, INSOFAR AS MAY BE REASONABLY
    16  POSSIBLE, SUBSTANTIALLY AN EQUAL NUMBER OF TIMES AT THE
    17  BEGINNING, AT THE END AND AT EACH INTERMEDIATE PLACE, IF ANY, OF
    18  THE GROUP IN WHICH SUCH NAME BELONGS. Under the title of such
    19  offices where more than one candidate is to be voted for, shall
    20  be printed "Vote for not more than ........" (the blank space to
    21  indicate the number of candidates to be voted for the particular
    22  office.) At the right of the name of each candidate there shall
    23  be a square of sufficient size for the convenient insertion of a
    24  cross (x) or check ( ) mark. There shall be left at the end of
    25  the list of candidates for each office (or under the title of
    26  the office itself in case there be no candidates who have filed
    27  nomination petitions therefor) as many blank spaces as there are
    28  persons to be voted for, for such office, in which space the
    29  elector may insert the name of any person whose name is not
    30  printed on the ballot as a candidate for such office. [Opposite
    19940H2873B4064                  - 2 -

     1  or under the name of each candidate, except candidates for the
     2  office of President of the United States and candidates for
     3  delegate or alternate delegate to a National Party Convention,
     4  who is to be voted for by the electors of more than one county,
     5  shall be printed the name of the county in which such candidate
     6  resides; and opposite or under the name of each candidate except
     7  candidates for delegate or alternate delegate to a National
     8  Party Convention who is to be voted for by the electors of an
     9  entire county or any congressional, senatorial or representative
    10  district within the county, shall be printed the name of the
    11  city, borough, township or ward, as the case may be, in which
    12  such candidate resides.]
    13     * * *
    14     Section 2.  Section 1621(e) of the act, added October 4, 1978
    15  (P.L.893, No.171), is amended to read:
    16     Section 1621.  Definitions.--As used in this article, the
    17  following words have the following meanings:
    18     * * *
    19     (e)  The words "independent expenditure" shall mean an
    20  expenditure by a person [made for the purpose of influencing an
    21  election without cooperation or consultation with any candidate
    22  or any political committee authorized by that candidate and
    23  which is not made in concert with or at the request or
    24  suggestion of any candidate or political committee or agent
    25  thereof.] or political committee, other than a candidate's
    26  campaign committee, that expressly advocates the election or
    27  defeat of a clearly identified candidate, that is made without
    28  cooperation or consultation with any candidate or committee or
    29  agent of the candidate and that is not made in concert with or
    30  at the request or suggestion of a candidate or any committee or
    19940H2873B4064                  - 3 -

     1  agent of the candidate. An expenditure is not an independent
     2  expenditure if any of the following applies:
     3     (1)  Any officer, member, employe or agent of the political
     4  committee making the expenditure is also an officer, member,
     5  employe or agent of the committee of the candidate whose
     6  election or whose opponent's defeat is being advocated by the
     7  expenditure or an agent of the candidate whose election or whose
     8  opponent's defeat is being advocated by the expenditure.
     9     (2)  There is an arrangement, coordination or direction with
    10  respect to the expenditure between the candidate or the
    11  candidate's agent and the person making the expenditure,
    12  including any officer, director, employe or agent of that
    13  person.
    14     (3)  In the same election, the person making the expenditure,
    15  including any officer, director, employe or agent of that
    16  person, is or has been:
    17     (i)  Authorized to raise or expend moneys on behalf of the
    18  candidate or the candidate's authorized committees.
    19     (ii)  Receiving any form of compensation or reimbursement
    20  from the candidate, the candidate's committees or the
    21  candidate's agent.
    22     (4)  The expenditure is based on information about the
    23  candidate's plans, projects or needs or those of his campaign
    24  committee, provided to the expending person by the candidate or
    25  by the candidate's agents or any officer, member or employe of
    26  the candidate's campaign committee with a view toward having the
    27  expenditure made.
    28     Section 3.  Section 1626(a) and (j) of the act, added October
    29  4, 1978 (P.L.893, No.171) and July 21, 1979 (P.L.189, No.63),
    30  are amended and the section is amended by adding a subsection to  <--
    19940H2873B4064                  - 4 -

     1  read:
     2     Section 1626.  Reporting by Candidate and Political
     3  Committees and other Persons.--
     4     (a)  Each treasurer of a political committee and each
     5  candidate for election to public office shall file with the
     6  appropriate supervisor reports of receipts and expenditures on
     7  forms, designed by the Secretary of the Commonwealth, if the
     8  amount received or expended or liabilities incurred shall exceed
     9  the sum of two hundred fifty dollars ($250) regardless if the
    10  amount received or expended is for one candidate or a number of
    11  candidates. Should such an amount not exceed two hundred fifty
    12  dollars ($250), then the candidate or the treasurer of the
    13  committee shall file a sworn statement to that effect with the
    14  appropriate supervisor rather than the report required by this
    15  section.
    16     * * *
    17     (j)  All "Political Action Committees" shall report to the
    18  Secretary of the Commonwealth and the respective county board of
    19  elections all expenditures to or made on behalf of, any State-
    20  wide candidate, candidate for the Pennsylvania House of
    21  Representatives, or candidate for the State Senate, in the same
    22  manner as indicated in this section as a candidate's political
    23  committee. This provision shall be in addition to any other
    24  filing and reporting provisions of this act which apply to such
    25  committees, their treasurers and chairmen.
    26     (k)  Any loan to a candidate's political committee from that   <--
    27  candidate shall be reported as required under subsection (b).
    28  The report shall include the candidate's account number from a
    29  national or State bank or any other lending institution
    30  regulated by the Commonwealth from which the loan was made. The
    19940H2873B4064                  - 5 -

     1  candidate's account number shall remain confidential and may not
     2  be disclosed to any person, except as necessary for purposes of
     3  review by the Secretary of the Commonwealth and the proper
     4  county board of elections in accordance with this act.
     5     Section 4.  Section 1628 of the act, amended July 11, 1980
     6  (P.L.600, No.128), is amended to read:
     7     Section 1628.  Late Contributions and Independent
     8  Expenditures.--
     9     (a)  Any candidate or political committee, authorized by a
    10  candidate and created solely for the purpose of influencing an
    11  election on behalf of that candidate, which receives any
    12  contribution or pledge of five hundred dollars ($500) or more,
    13  and any person making an independent expenditure, as defined by
    14  this act, of five hundred dollars ($500) or more after the final
    15  pre-election report has been deemed completed shall report such
    16  contribution, pledge or expenditure to the appropriate
    17  supervisor by telegram or mailgram. Such telegram or mailgram
    18  shall be sent by the candidate, chairman or treasurer of the
    19  political committee within twenty-four (24) hours of receipt of
    20  the contribution. It shall be the duty of the supervisor to
    21  confirm the substance of such telegram or mailgram. Any
    22  candidate in his own behalf, or chairman, treasurer or candidate
    23  in behalf of the political committee may also comply with this
    24  section by appearing personally before such supervisor and
    25  reporting such late contributions or pledges.
    26     (b)  In addition to the information concerning independent
    27  expenditures reported by a PERSON OR political committee under    <--
    28  section 1626, a PERSON OR political committee that makes          <--
    29  independent expenditures relating to any one candidate or office
    30  within thirty (30) days before the day of any election to which
    19940H2873B4064                  - 6 -

     1  the expenditures relate and which aggregate five hundred dollars
     2  ($500) shall report the independent expenditures within twenty-
     3  four (24) hours OR BY 5 O'CLOCK P.M. THE DAY FOLLOWING A WEEKEND  <--
     4  OR HOLIDAY OF WHEN THE EXPENDITURE IS MADE. If a person or
     5  political committee makes an independent expenditure for
     6  campaign literature or an advertisement, the PERSON OR political  <--
     7  committee making the expenditure shall also send by certified
     8  mail a copy of the campaign literature or advertisement to each
     9  candidate named or otherwise referred to in the literature or
    10  advertisement within twenty-four (24) hours OR BY 5 O'CLOCK P.M.  <--
    11  THE DAY FOLLOWING A WEEKEND OR HOLIDAY of the expenditure or
    12  distribution.
    13     (c)  An independent expenditure report filed under subsection
    14  (b) shall be filed with the officer SUPERVISOR prescribed in      <--
    15  section 1626 and shall contain all of the following:
    16     (1)  The name and address of any person to whom an
    17  independent expenditure was made.
    18     (2)  The date and amount of the independent expenditure.
    19     (3)  The purpose of the independent expenditure, including a
    20  description of what was purchased.
    21     (4)  The name of each candidate whose election or defeat was
    22  advocated by the expenditure and, for each candidate, the office
    23  sought by the candidate and the year of the election.
    24     (5)  The names, occupations, employers and amount contributed
    25  by each of the three (3) contributors that contributed the most   <--
    26  money within the preceding six (6) months. If any other
    27  contributor contributed the same amount during this time period
    28  as any of the top three (3) contributors, the information shall
    29  be provided for that contributor as well. BY ALL CONTRIBUTORS OF  <--
    30  TWO HUNDRED FIFTY DOLLARS ($250) OR MORE. If any of these
    19940H2873B4064                  - 7 -

     1  contributors is a political committee, the report shall include
     2  the names, occupations and employers of the committee's chairman
     3  and treasurer.
     4     (6)  Under penalty of perjury, a certification stating that
     5  the claimed independent expenditure is not made in cooperation,
     6  consultation or concert with or at the request or suggestion of
     7  any candidate or any campaign committee or agent of that
     8  candidate.
     9     (7)  A copy of any literature or advertisement or other
    10  communication, including an advertisement in an electronic or
    11  print medium, that was purchased with the independent
    12  expenditure.
    13     (d)  If a PERSON OR political committee makes an independent   <--
    14  expenditure of less than five hundred dollars ($500) for
    15  campaign literature or an advertisement for the purpose of
    16  influencing an election, including an advertisement in
    17  electronic or print media, in the last thirty (30) days
    18  preceding the election or if an independent expenditure is made
    19  for campaign literature or advertisements that are distributed
    20  during the last thirty (30) days preceding the election, the
    21  PERSON OR political committee making the expenditure shall file   <--
    22  a copy of the campaign literature or advertisement with the
    23  Secretary of the Commonwealth within twenty-four (24) hours of
    24  the expenditure or distribution.
    25     (e)  Filing by electronic facsimile or by telegram is
    26  permissible.
    27     (f)  An expenditure by a political committee or a person that
    28  does not meet the definition of an independent expenditure is an
    29  in-kind contribution to the candidate and a corresponding
    30  expenditure by the candidate unless otherwise exempted.
    19940H2873B4064                  - 8 -

     1     (g)  A person who violates this section is subject to a civil
     2  penalty of three (3) times the cost of the literature or
     3  advertisement that was distributed in violation of this section.
     4     Section 5.  Section 1633(a) of the act, amended November 26,   <--
     5  1978 (P.L.1313, No.318), is amended to read:
     6     Section 1633.  Contributions or Expenditures by National
     7  Banks, Corporations or Unincorporated Associations.--
     8     (a)  It is unlawful for any National or State bank,
     9  partnership or any corporation, incorporated under the laws of
    10  this or any other state or any foreign country or any
    11  unincorporated association, except those corporations formed
    12  primarily for political purposes or as a political committee, to
    13  make a contribution or expenditure in connection with the
    14  election of any candidate or for any political purpose whatever
    15  except in connection with any question to be voted on by the
    16  electors of this Commonwealth. Furthermore, it shall be unlawful
    17  for any candidate, political committee, or other person to
    18  knowingly accept or receive any contribution prohibited by this
    19  section, or for any officer or any director of any corporation,
    20  bank, or any unincorporated association to consent to any
    21  contribution or expenditure by the corporation, bank or
    22  unincorporated association, as the case may be, prohibited by
    23  this section.
    24     * * *
    25     SECTION 5.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:    <--
    26     SECTION 1633.1.  CONTRIBUTIONS OR EXPENDITURES BY
    27  PARTNERSHIPS.--IT IS UNLAWFUL FOR ANY PARTNERSHIP OPERATING
    28  UNDER THE LAWS OF THIS STATE OR ANY OTHER STATE OR ANY FOREIGN
    29  COUNTRY TO MAKE A CONTRIBUTION OR EXPENDITURE IN CONNECTION WITH
    30  ANY STATE-WIDE JUDICIAL OFFICE. FURTHERMORE, IT SHALL BE
    19940H2873B4064                  - 9 -

     1  UNLAWFUL FOR ANY CANDIDATE RUNNING FOR STATE-WIDE JUDICIAL
     2  OFFICE, POLITICAL COMMITTEE OR OTHER PERSON TO KNOWINGLY ACCEPT
     3  OR RECEIVE ANY CONTRIBUTION PROHIBITED BY THIS SECTION OR FOR
     4  ANY PARTNER OF ANY PARTNERSHIP TO CONSENT TO ANY CONTRIBUTION OR
     5  EXPENDITURE PROHIBITED BY THIS SECTION.
     6     Section 6.  The act is amended by adding an article to read:
     7                           ARTICLE XVI-A
     8                  Pennsylvania Fair Campaign Fund
     9     Section 1601-A.  Definitions.--As used in this article, the
    10  following words have the following meanings:
    11     "Declaration of candidacy" shall mean the point in a person's
    12  campaign for political office at which that person becomes in
    13  compliance with section 1622 of this act.
    14     "Department" shall mean the Department of State of the
    15  Commonwealth.
    16     "Fund" shall mean the Pennsylvania Fair Campaign Fund
    17  established under section 1604-A.
    18     "Major political party" shall mean a political party whose
    19  candidate for Governor received either the highest or second
    20  highest number of votes in the preceding gubernatorial election.
    21     "Secretary" shall mean the Secretary of the Commonwealth.
    22     Section 1602-A.  Application of Article.--Except as provided
    23  in section 1613-A(d) 1613-A, the provisions of this article       <--
    24  shall be applicable to candidates for the following State-wide
    25  offices who elect to apply for campaign funding under this
    26  article:
    27     (1)  Supreme Court Justice.
    28     (2)  Superior Court Judge.
    29     (3)  Commonwealth Court Judge.
    30     Section 1603-A.  Administration.--The provisions of this
    19940H2873B4064                 - 10 -

     1  article shall be administered by the department. The department
     2  may adopt rules and regulations as may be necessary for the
     3  implementation of this article.
     4     Section 1604-A.  Pennsylvania Fair Campaign Fund
     5  Established.--There is hereby established a special restricted
     6  receipts fund in the State Treasury to be known as the
     7  Pennsylvania Fair Campaign Fund. Payments shall be made into
     8  this fund pursuant to section 1605-A and disbursements shall be
     9  made from the fund only upon the warrant of the secretary and a
    10  warrant of the State Treasurer. As much of the moneys in the
    11  fund as are necessary to make payments to candidates as provided
    12  in this article are appropriated from the Pennsylvania Fair
    13  Campaign Fund to the Department of State on a continuing basis
    14  for the purpose of such payments. NO MONEYS OF THE GENERAL FUND   <--
    15  SHALL BE USED FOR THE PURPOSES OF THE PENNSYLVANIA FAIR CAMPAIGN
    16  FUND.
    17     Section 1605-A.  Allocation of Certain Tax Proceeds to
    18  Fund.--Beginning with tax years commencing January 1, 1995, and
    19  thereafter, each individual subject to the tax imposed by
    20  Article III of the act of March 4, 1971 (P.L.6, No.2), known as
    21  the "Tax Reform Code of 1971," whose tax liability for the year
    22  is one dollar ($1.00) or more may designate one dollar ($1.00)
    23  of his personal income taxes to be paid into the Pennsylvania
    24  Fair Campaign Fund. In the case of married taxpayers filing a
    25  joint return, each spouse may designate one dollar ($1.00) to be
    26  paid into the Pennsylvania Fair Campaign Fund if their tax
    27  liability is two dollars ($2.00) or more. All of these
    28  designated tax revenues shall be paid into the fund. The check-
    29  off and instructions shall be prominently displayed on the first
    30  page of the TAX return form. The instructions shall readily       <--
    19940H2873B4064                 - 11 -

     1  indicate that these designations neither increase nor decrease
     2  an individual's tax liability.
     3     Section 1606-A.  Certification of Moneys in Fund.--By June 30
     4  of each year, the State Treasurer shall certify to the
     5  department the current balance available in the fund.
     6     Section 1607-A.  Qualification for Funding.--(a)  Any
     7  candidate for State-wide office as described in section 1602-A    <--
     8  may apply for funding under this article if the candidate meets
     9  the contributory thresholds established in subsection (b) and
    10  otherwise conforms to the requirements of this article. No
    11  candidate shall be obligated to apply for funding under this
    12  article and if any candidate elects not to apply, the provisions
    13  of this article pertaining to limits on expenditures or the use
    14  of his personal funds shall be inapplicable to the person and
    15  his candidacy. Any candidate electing to receive funding under
    16  this article shall declare his intention to do so and specify
    17  the State office for which he is a candidate. No candidate may    <--
    18  elect to receive funding under this article for a general or
    19  municipal election unless the candidate elected to receive
    20  funding under this article for the primary election. A CANDIDATE  <--
    21  WHO IS NOMINATED BY HIS PARTY TO FILL A VACANCY WHICH OCCURS
    22  AFTER THE PRIMARY OR WHO IS PLACED ON THE BALLOT BY PETITION AND
    23  QUALIFIES FOR FUNDING PURSUANT TO SECTION 1607(B) IS ELIGIBLE TO
    24  RECEIVE FUNDING UNDER THIS ARTICLE FOR A GENERAL OR MUNICIPAL
    25  ELECTION. Any and all committees authorized to receive
    26  contributions or make expenditures for the candidate who has so
    27  declared shall abide by the provisions of section 1613-A. Any
    28  candidate who for any reason has his name withdrawn from the
    29  ballot for a State-wide AN election, after receipt of funds       <--
    30  under this article, shall return all moneys received to the fund  <--
    19940H2873B4064                 - 12 -

     1  as well as offering back qualifying contributions for that
     2  State-wide office. TO THE FUND ALL UNSPENT MONEY RECEIVED FROM    <--
     3  THE PENNSYLVANIA FAIR CAMPAIGN FUND.
     4     (b)  (1)  In order to qualify for funding in a general
     5  election, a candidate must receive subsequent to the date of the  <--
     6  THAT CANDIDATE'S primary election but prior to the date of the    <--
     7  THAT CANDIDATE'S general election qualifying contributions of     <--
     8  the following amounts:
     9         Office              Qualifying Contributions Required
    10     (i)  Supreme Court Justices        $25,000                     <--
    11     (ii)  Superior Court Judges         25,000
    12     (iii)  Commonwealth Court Judges    25,000
    13      (I)  SUPREME COURT JUSTICES        $30,000                    <--
    14      (II)  SUPERIOR COURT JUDGES         30,000
    15      (III)  COMMONWEALTH COURT JUDGES    30,000
    16     (2)  In order to qualify for funding in a primary election, a
    17  candidate must receive prior to the date of the primary
    18  election, but subsequent to the immediately preceding general or  <--
    19  municipal election JANUARY 1 OF THE YEAR IN WHICH THAT CANDIDATE  <--
    20  RUNS FOR OFFICE, one-half of the amount specified in clause (1)
    21  for the appropriate office.
    22     (3)  (i)  The term "qualifying contribution" shall include
    23  any contribution, as defined in section 1621(b), which has all
    24  of the following characteristics:
    25     (A)  Made by an individual resident of Pennsylvania.
    26     (B)  Made by a written instrument which indicates the
    27  contributor's full name and mailing residence ADDRESS and is not  <--
    28  intended to be returned to the contributor or transferred to
    29  another political committee or candidate.
    30     (ii)  If a contributor receives goods or services of value in
    19940H2873B4064                 - 13 -

     1  return for his contribution, the qualifying contribution shall
     2  be calculated as the original contribution, minus the fair
     3  market value of the goods or services received.
     4     (iii)  Any contribution CONTRIBUTIONS by an individual which   <--
     5  exceeds EXCEED two hundred fifty dollars ($250.00) in the         <--
     6  aggregate shall be deemed only a two hundred fifty dollar
     7  ($250.00) qualifying contribution for the purposes of this
     8  section and for the matching payment provisions of section 1608-
     9  A.
    10     (c)  The department shall select an auditor pursuant to the
    11  provisions of section 1635(a). Each candidate who elects to
    12  apply for funding under this article shall provide evidence that
    13  the candidate has raised the qualifying contributions required
    14  by this section which evidence shall be verified and certified
    15  as correct to the department by the auditor selected under this
    16  article. THE DEPARTMENT SHALL ESTABLISH A DEADLINE FOR THE        <--
    17  CERTIFICATION AND A PROCESS FOR VERIFICATION BY THE AUDITOR
    18  SELECTED UNDER THIS ARTICLE.
    19     Section 1608-A.  Funding Formula.--(a)  Every candidate who
    20  qualifies for funding for either the primary or the general
    21  election pursuant to section 1607-A shall receive matching
    22  payments from the fund in the amount of one dollar ($1.00) for
    23  each dollar of qualifying contribution as defined in section
    24  1607-A(b)(3).
    25     (b)  The one dollar ($1.00) for each dollar of qualifying      <--
    26  contributions provided by this section shall be provided only
    27  for qualifying contributions raised which exceed the threshold
    28  amounts specified in section 1607-A(b) and not to those
    29  qualifying contributions which are attributable to meeting the
    30  threshold amounts necessary to qualify for funding under this
    19940H2873B4064                 - 14 -

     1  article.
     2     (c) (B)  (1)  Only those qualifying contributions made during  <--
     3  the period between a declaration of candidacy JANUARY 1 OF THE    <--
     4  YEAR IN WHICH THE CANDIDATE RUNS FOR OFFICE and the primary
     5  election shall be eligible for matching payments from the fund
     6  for the primary election.
     7     (2)  Only those qualifying contributions made during the
     8  period between the primary election and the general election OF   <--
     9  THE YEAR IN WHICH THAT CANDIDATE RUNS FOR OFFICE shall be
    10  eligible for matching payments from the fund for the general
    11  election.
    12     (d) (C)  Matching funds shall not be provided for any          <--
    13  qualifying contributions unless the reporting requirements of
    14  section 1626(b) are satisfied.
    15     Section 1609-A.  Limitations on Funding.--(a)  Every
    16  candidate who qualifies for and receives funding pursuant to the
    17  formula established in section 1608-A shall be entitled to
    18  receive no more than the maximum amount specified in subsection
    19  (b) for the office the candidate is seeking.
    20     (b)  (1)  The maximum amount of funding available for the
    21  general election for each candidate under this article shall be
    22  as follows:
    23             Office              Maximum Pennsylvania Fair
    24                                      Campaign Funding
    25     (i)  Supreme Court Justices           $150,000
    26     (ii)  Superior Court Judges            150,000
    27     (iii)  Commonwealth Court Judges       150,000
    28     (2)  The maximum amount of funding available for the primary
    29  election for each candidate under this article shall be one-half
    30  the appropriate figure in clause (1).
    19940H2873B4064                 - 15 -

     1     (c)  Notwithstanding any other provisions of this article no
     2  funding shall be provided to the following:
     3     (1)  Candidates in the general election who have been
     4  nominated by both major political parties.
     5     (2)  Candidates in the primary election who are unopposed for
     6  the nomination.
     7     Section 1610-A.  Time of Payments.--(a)  Beginning ninety
     8  (90) days prior to the relevant primary or general election, the
     9  department shall make payments authorized by this article at
    10  least every two (2) weeks. However, except for the final
    11  payment, no payment shall be due or paid if the payment does not
    12  equal at least five thousand dollars ($5,000) in amount.
    13     (b)  If in the secretary's opinion insufficient funds exist
    14  in the fund to provide the anticipated full funding to eligible
    15  candidates in a given primary or general election, the
    16  department shall distribute the available funds to qualified
    17  candidates on a pro-rata basis. In determining whether
    18  sufficient funds are available, the secretary shall not take
    19  into consideration the needs of any subsequent primary or
    20  general elections but shall base the decision solely on the
    21  immediate primary or election at hand.
    22     Section 1611-A.  Use of Funds by Candidates.--(a)  Funds
    23  distributed to candidates pursuant to this article may be used
    24  only for the election for which they are distributed and only
    25  for the purposes set forth in section 1634.1 except that no fund
    26  moneys may be used:
    27     (1)  To transfer to other candidates or to committees of
    28  other candidates or to political committees.
    29     (2)  To pay for expenditures incurred after the date of the
    30  general election.
    19940H2873B4064                 - 16 -

     1     (b)  Funds distributed to a candidate pursuant to this
     2  article shall be placed in a single bank account. Expenditures
     3  from this account shall be made only for campaign expenses
     4  listed in subsection (a).
     5     Section 1612-A.  Expenditures.--(a)  Expenditures made by a
     6  candidate and his authorized committees, for all purposes and
     7  from all sources, including, but not limited to, amounts of
     8  funds distributed under this article, proceeds of loans, gifts,
     9  contributions from any source or personal funds, subsequent to
    10  the date of the primary election, but prior to the date of the
    11  general election, may not exceed the amounts specified below:
    12           Office                Total Expenditure Limits
    13     (i)  Justice of the
    14           Supreme Court               $300,000
    15     (ii)  Judge of the
    16           Superior Court               300,000 
    17     (iii)  Judge of the
    18           Commonwealth Court           300,000
    19     (b)  Expenditures made by a candidate and his authorized
    20  committees, subsequent to January 1 OF THE YEAR IN WHICH THE      <--
    21  CANDIDATE RUNS FOR OFFICE but prior to the date of the primary
    22  election, may not exceed one-half of the amount specified in
    23  subsection (a).
    24     (c)  Notwithstanding any other provision of this article, a
    25  candidate who accepts public funding pursuant to the formula
    26  established in section 1608-A, but whose major political party
    27  opponent in a general or municipal election elects not to apply
    28  for the public funding, shall not be bound by the expenditure
    29  limits specified in this section. A candidate who accepts public
    30  funding shall be eligible to qualify for those fair campaign
    19940H2873B4064                 - 17 -

     1  funds which would have otherwise been available to the opponent   <--
     2  AN OPPONENT WHO HAS CHOSEN NOT TO APPLY FOR FUNDING FROM THE      <--
     3  PENNSYLVANIA FAIR CAMPAIGN FUND.
     4     (d)  Notwithstanding any other provision of this article, a
     5  candidate who accepts public funding pursuant to the formula
     6  established in section 1608-A, but whose major political party
     7  opponents in a primary election elect to not apply for the
     8  public funding, shall not be bound by the expenditure limits
     9  specified in this section. If there is more than one candidate
    10  in a major political party in a primary election, the fair
    11  campaign funds which would have otherwise been available to each
    12  opponent who has elected to not apply for the public funding
    13  shall be divided equally among the candidates who accept public
    14  financing.
    15     Section 1613-A.  Limitations on Certain Contributions.--(a)
    16  Any candidate for the office of Justice of the Supreme Court or
    17  Judge of the Superior Court or Commonwealth Court shall not
    18  accept any contribution CONTRIBUTIONS from an individual or       <--
    19  political action committee in excess of WHICH IN THE AGGREGATE    <--
    20  EXCEED two hundred fifty dollars ($250), except that FOR ANY      <--
    21  PRIMARY, GENERAL OR SPECIAL ELECTION. HOWEVER, the candidate and
    22  spouse may contribute up to twenty-five thousand dollars          <--
    23  ($25,000) THIRTY THOUSAND DOLLARS ($30,000) IN THE AGGREGATE for  <--
    24  each primary, general or special election IN WHICH THAT           <--
    25  CANDIDATE IS RUNNING FOR OFFICE.
    26     (b)  Any candidate for the office of Governor, Lieutenant
    27  Governor, Auditor General, Attorney General, State Treasurer,
    28  Senate or House of Representatives shall not accept any           <--
    29  contribution exceeding CONTRIBUTIONS WHICH IN THE AGGREGATE       <--
    30  EXCEED the following limits FOR ANY PRIMARY, GENERAL OR SPECIAL   <--
    19940H2873B4064                 - 18 -

     1  ELECTION IN WHICH THAT CANDIDATE IS RUNNING FOR OFFICE:
     2             Contributor                          Limit
     3     (1)  Individual                             $ 1,000
     4     (2)  Political action committee
     5          as defined in section 1621(1)            5,000
     6     (c)  A gift, subscription, loan, advance or deposit of money
     7  or anything of value to a candidate shall be considered a
     8  contribution both by the original source of the contribution and
     9  by any intermediary or conduit if the intermediary or conduit--
    10  (1) exercises any control or any direction over the making of
    11  the contribution; or (2) solicits the contribution or arranges
    12  for the contribution to be made and directly or indirectly makes
    13  the candidate aware of such intermediary or conduit's role in
    14  soliciting or arranging the contribution for the candidate.
    15     (d)  For purposes of subsection (c), a contribution shall not
    16  be considered to be a contribution by an intermediary or conduit
    17  to the candidate if-- (1) the intermediary or conduit has been
    18  retained by the candidate's committee for the purpose of fund-
    19  raising and is reimbursed for expenses incurred in soliciting
    20  contributions; (2) in the case of an individual, the candidate
    21  has expressly authorized the intermediary or conduit to engage
    22  in fund-raising, or the individual occupies a significant
    23  position within the candidate's campaign organization; or (3) in
    24  the case of a political committee, the intermediary or conduit
    25  is an authorized committee of the candidate.
    26     (e)  This section shall apply to any candidate for any office
    27  set forth in subsection (a) THIS SECTION, regardless of whether   <--
    28  or not the candidate receives funding from the fund.
    29     Section 1614-A.  Inflation Indexing of Certain Limitations.--
    30  The dollar figures contained in sections 1607-A, 1609-A and
    19940H2873B4064                 - 19 -

     1  1612-A shall be adjusted annually during March at a rate equal
     2  to the average percentage change in the All-Urban Consumer Price
     3  Index for the Pittsburgh, Philadelphia and Scranton standard
     4  metropolitan statistical areas as published by the Bureau of
     5  Labor Statistics of the United States Department of Labor, or
     6  any successor agency, occurring in the prior calendar year. The
     7  base year shall be 1992 1994. The average shall be calculated     <--
     8  and certified by the secretary annually by adding the percentage
     9  increase in each of the three areas and dividing by three. The
    10  calculation and resulting new figures shall be published in the
    11  Pennsylvania Bulletin during March.
    12     Section 1615-A.  Annual Report.--The secretary shall report
    13  annually to the Governor and the General Assembly on the
    14  operations of funding as provided by this article. This report
    15  shall include, but not be limited to, the revenues and
    16  expenditures in the fund, the amounts distributed to candidates,
    17  the results of any audits performed on candidates in compliance
    18  with this article and any prosecutions brought for violations of
    19  this article.
    20     Section 1616-A.  Return of Excess Funds.--(a)  All unexpended
    21  campaign funds in a candidate's and his authorized committees'
    22  possession sixty (60) days after a primary election shall be
    23  returned to the secretary for deposit in the Pennsylvania Fair
    24  Campaign Fund, up to the amount of the funds which were
    25  distributed to the candidate under this article for the primary
    26  election.
    27     (b)  All unexpended campaign funds in a candidate's and his
    28  authorized committee's possession sixty (60) days after a
    29  general or municipal election shall be returned to the secretary
    30  for deposit in the Pennsylvania Fair Campaign Fund, up to the
    19940H2873B4064                 - 20 -

     1  amount of the funds which were distributed to the candidate
     2  under this article for the general or municipal election.
     3     Section 1617-A.  Penalties.--(a)  A person who violates the
     4  provisions of this article and who, as a result, obtains funds
     5  under this article to which he is not entitled commits a
     6  misdemeanor of the first degree and shall, upon conviction, be
     7  subject to a fine not to exceed the greater of ten thousand
     8  dollars ($10,000) or three times the amount of funds wrongfully
     9  obtained or to imprisonment for up to five years, or both.
    10     (b)  A person who violates section 1611-A or 1612-A commits a
    11  misdemeanor of the first degree and shall, upon conviction, be
    12  subject to a fine not to exceed the greater of ten thousand
    13  dollars ($10,000) or three times the amount of funds that were
    14  wrongfully used or expended or to imprisonment for up to five
    15  years, or both.
    16     (c)  Except as provided in subsections (a) and (b), a person
    17  who violates any provision of this act commits a misdemeanor of
    18  the third degree and shall, upon conviction, be subject to a
    19  fine of not more than one thousand dollars ($1,000) or to
    20  imprisonment for up to one year, or both.
    21     Section 7.  This act shall apply to returns of taxpayers of
    22  calendar years commencing January 1, 1994 1995, and thereafter.   <--
    23  Funding from the Pennsylvania Fair Campaign Fund shall be
    24  provided to candidates for Statewide office beginning with the    <--
    25  primary election of 1996 1997 and in each primary, municipal and  <--
    26  general election thereafter.
    27     Section 8.  This act shall take effect immediately JANUARY 1,  <--
    28  1996.


    E17L25DGS/19940H2873B4064       - 21 -