PRINTER'S NO. 972
No. 877 Session of 1995
INTRODUCED BY KUKOVICH, CURRY, LEVDANSKY, CONTI, BATTISTO,
CAPPABIANCA, CAWLEY, COLAFELLA, COWELL, DeLUCA, FAJT,
GORDNER, HANNA, ITKIN, JOSEPHS, LAUGHLIN, MANDERINO,
MARKOSEK, MELIO, MICHLOVIC, MIHALICH, MUNDY, STABACK,
STEELMAN, STETLER, STURLA, TANGRETTI, THOMAS, TIGUE,
VAN HORNE, VITALI AND BELFANTI, FEBRUARY 27, 1995
REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 27, 1995
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 for funding of certain Statewide
12 elections; limiting certain contributions; imposing powers
13 and duties on the Department of State; and providing
14 penalties.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. The act of June 3, 1937 (P.L.1333, No.320), known
18 as the Pennsylvania Election Code, is amended by adding an
19 article to read:
20 ARTICLE XVI-A
21 Pennsylvania Fair Campaign Fund
22 Section 1601-A. Definitions.--As used in this article, the
1 following words have the following meanings:
2 "Declaration of candidacy" shall mean the point in a person's
3 campaign for political office at which that person becomes in
4 compliance with section 1622 of this act.
5 "Department" shall mean the Department of State of the
6 Commonwealth.
7 "Fund" shall mean the Pennsylvania Fair Campaign Fund
8 established under section 1604-A.
9 "Major political party" shall mean a political party whose
10 candidate for Governor received either the highest or second
11 highest number of votes in the preceding gubernatorial election.
12 "Secretary" shall mean the Secretary of the Commonwealth.
13 Section 1602-A. Application of Article.--(a) The provisions
14 of this article shall be applicable to candidates for the
15 following State-wide offices who elect to apply for campaign
16 funding under this article:
17 (1) Governor.
18 (2) Lieutenant Governor.
19 (3) Attorney General.
20 (4) Auditor General.
21 (5) State Treasurer.
22 (6) Supreme Court Justice.
23 (7) Superior Court Judge.
24 (8) Commonwealth Court Judge.
25 (b) For the purposes of this article insofar as it relates
26 to funding of nominated candidates in the general election, a
27 political party's or political body's nominated candidates for
28 Governor and Lieutenant Governor shall be considered as one
29 candidacy and the provisions specifically applicable to the
30 Governor shall be applicable to the combined candidacy.
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1 Section 1603-A. Administration.--The provisions of this
2 article shall be administered by the department. The department
3 may adopt rules and regulations as may be necessary for the
4 implementation of this article.
5 Section 1604-A. Pennsylvania Fair Campaign Fund
6 Established.--There is hereby established a special restricted
7 receipts fund in the State Treasury to be known as the
8 Pennsylvania Fair Campaign Fund. Payments shall be made into
9 this fund pursuant to section 1605-A and disbursements shall be
10 made from the fund only upon the warrant of the secretary and a
11 warrant of the State Treasurer. As much of the moneys in the
12 fund as are necessary to make payments to candidates as provided
13 in this article are appropriated from the Pennsylvania Fair
14 Campaign Fund to the Department of State on a continuing basis
15 for the purpose of such payments.
16 Section 1605-A. Allocation of Certain Tax Proceeds to
17 Fund.--Beginning with tax years commencing January 1, 1996, and
18 thereafter, each individual subject to the tax imposed by
19 Article III of the act of March 4, 1971 (P.L.6, No.2), known as
20 the "Tax Reform Code of 1971," whose tax liability for the year
21 is two dollars and fifty cents ($2.50) or more may designate two
22 dollars and fifty cents ($2.50) of his personal income taxes to
23 be paid into the Pennsylvania Fair Campaign Fund. In the case of
24 married taxpayers filing a joint return, each spouse may
25 designate two dollars and fifty cents ($2.50) to be paid into
26 the Pennsylvania Fair Campaign Fund if their tax liability is
27 five dollars ($5) or more. All of these designated tax revenues
28 shall be paid into the fund. The check-off and instructions
29 shall be prominently displayed on the first page of the return
30 form. The instructions shall readily indicate that these
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1 designations neither increase nor decrease an individual's tax
2 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. Any and all
21 committees authorized to receive contributions or make
22 expenditures for the candidate who has so declared shall abide
23 by the provisions of section 1613-A. Any candidate who for any
24 reason has his name withdrawn from the ballot for a State-wide
25 election, after receipt of funds under this article, shall
26 return all moneys received to the fund as well as offering back
27 qualifying contributions for that State-wide office.
28 (b) (1) In order to qualify for funding in a general
29 election, a candidate must receive subsequent to the date of the
30 primary election but prior to the date of the general election
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1 qualifying contributions of the following amounts:
2 Office Qualifying Contributions Required
3 (i) Governor $100,000
4 (ii) Lieutenant Governor 50,000 (for primary only)
5 (iii) State Treasurer 50,000
6 (iv) Auditor General 50,000
7 (v) Attorney General 50,000
8 (vi) Supreme Court Justices 25,000
9 (vii) Superior Court Judges 25,000
10 (viii) Commonwealth Court Judges 25,000
11 (2) In order to qualify for funding in a primary election, a
12 candidate must receive prior to the date of the primary
13 election, but subsequent to the immediately preceding general or
14 municipal election, one-half of the amount specified in clause
15 (1) for the appropriate office.
16 (3) (i) The term "qualifying contribution" shall include
17 any contribution, as defined in section 1621(b), which has all
18 of the following characteristics:
19 (A) Made by an individual resident of Pennsylvania.
20 (B) Made by a written instrument which indicates the
21 contributor's full name and mailing residence and is not
22 intended to be returned to the contributor or transferred to
23 another political committee or candidate.
24 (ii) If a contributor receives goods or services of value in
25 return for his contribution, the qualifying contribution shall
26 be calculated as the original contribution, minus the fair
27 market value of the goods or services received.
28 (iii) Any contribution by an individual which exceeds two
29 hundred fifty dollars ($250) in the aggregate shall be deemed
30 only a two hundred fifty dollar ($250) qualifying contribution
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1 for the purposes of this section and for the matching payment
2 provisions of section 1608-A.
3 (c) The department shall select an auditor pursuant to the
4 provisions of section 1635(a). Each candidate who elects to
5 apply for funding under this article shall provide evidence that
6 the candidate has raised the qualifying contributions required
7 by this section which evidence shall be verified and certified
8 as correct to the department by the auditor selected under this
9 article.
10 Section 1608-A. Funding Formula.--(a) Every candidate who
11 qualifies for funding for either the primary or the general
12 election pursuant to section 1607-A shall receive matching
13 payments from the fund in the amount of two dollars and fifty
14 cents ($2.50) for each dollar of qualifying contribution as
15 defined in section 1607-A(b)(3).
16 (b) The two dollars and fifty cents ($2.50) for each dollar
17 of qualifying contributions provided by this section shall be
18 provided only for qualifying contributions raised which exceed
19 the threshold amounts specified in section 1607-A(b) and not to
20 those qualifying contributions which are attributable to meeting
21 the threshold amounts necessary to qualify for funding under
22 this article.
23 (c) (1) Only those qualifying contributions made during the
24 period between a declaration of candidacy and the primary
25 election shall be eligible for matching payments from the fund
26 for the primary election.
27 (2) Only those qualifying contributions made during the
28 period between the primary election and the general election
29 shall be eligible for matching payments from the fund for the
30 general election.
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1 (d) Matching funds shall not be provided for any qualifying
2 contributions unless the reporting requirements of section
3 1626(b) are satisfied.
4 Section 1609-A. Limitations on Funding.--(a) Every
5 candidate who qualifies for and receives funding pursuant to the
6 formula established in section 1608-A shall be entitled to
7 receive no more than the maximum amount specified in subsection
8 (b) for the office the candidate is seeking.
9 (b) (1) The maximum amount of funding available for the
10 general election for each candidate under this article shall be
11 as follows:
12 Office Maximum Pennsylvania Fair
13 Campaign Funding
14 (i) Governor $2,000,000
15 (ii) Attorney General 300,000
16 (iii) Auditor General, State
17 Treasurer 300,000
18 (iv) Lieutenant Governor 300,000 (primary only)
19 (v) Supreme Court Justices 150,000
20 (vi) Superior Court Judges 150,000
21 (vii) Commonwealth Court Judges 150,000
22 (2) The maximum amount of funding available for the primary
23 election for each candidate under this article shall be one-half
24 the appropriate figure in clause (1).
25 (c) Notwithstanding any other provisions of this article no
26 funding shall be provided to the following:
27 (1) Candidates in the general election who have been
28 nominated by both major political parties.
29 (2) Candidates in the primary election who are unopposed for
30 the nomination.
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1 Section 1610-A. Time of Payments.--(a) Beginning ninety
2 (90) days prior to the relevant primary or general election, the
3 department shall make payments authorized by this article at
4 least every two (2) weeks. However, except for the final
5 payment, no payment shall be due or paid if the payment does not
6 equal at least five thousand dollars ($5,000) in amount.
7 (b) If in the secretary's opinion insufficient funds exist
8 in the fund to provide the anticipated full funding to eligible
9 candidates in a given primary or general election, the
10 department shall distribute the available funds to qualified
11 candidates on a pro-rata basis. In determining whether
12 sufficient funds are available, the secretary shall not take
13 into consideration the needs of any subsequent primary or
14 general elections but shall base the decision solely on the
15 immediate primary or election at hand.
16 Section 1611-A. Use of Funds by Candidates.--(a) Funds
17 distributed to candidates pursuant to this article may be used
18 only for the election for which they are distributed and only
19 for the purposes set forth in section 1634.1 except that no fund
20 moneys may be used:
21 (1) To transfer to other candidates or to committees of
22 other candidates or to political committees.
23 (2) To pay for expenditures incurred after the date of the
24 general election.
25 (b) Funds distributed to a candidate pursuant to this
26 article shall be placed in a single bank account. Expenditures
27 from this account shall be made only for campaign expenses
28 listed in subsection (a).
29 Section 1612-A. Expenditures.--(a) Expenditures made by a
30 candidate and his authorized committees, for all purposes and
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1 from all sources, including, but not limited to, amounts of
2 funds distributed under this article, proceeds of loans, gifts,
3 contributions from any source or personal funds, subsequent to
4 the date of the primary election, but prior to the date of the
5 general election, may not exceed the amounts specified below:
6 Office Total Expenditure Limits
7 (i) Governor $4,000,000
8 (ii) Lieutenant Governor 600,000 (for primary only)
9 (iii) Attorney General 600,000
10 (iv) State Treasurer 600,000
11 (v) Auditor General 600,000
12 (vi) Justices and Judges
13 of the Supreme Court,
14 Superior Court and
15 Commonwealth Court 300,000
16 (b) Expenditures made by a candidate and his authorized
17 committees, subsequent to January 1 but prior to the date of the
18 primary election, may not exceed one-half of the amount
19 specified in subsection (a).
20 (c) Notwithstanding any other provision of this article, a
21 candidate who accepts public funding pursuant to the formula
22 established in section 1608-A, but whose major political party
23 opponent in a general or municipal election elects not to apply
24 for the public funding, shall not be bound by the expenditure
25 limits specified in this section. A candidate who accepts public
26 funding shall be eligible to qualify for those fair campaign
27 funds which would have otherwise been available to the opponent.
28 (d) Notwithstanding any other provision of this article, a
29 candidate who accepts public funding pursuant to the formula
30 established in section 1608-A, but whose major political party
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1 opponents in a primary election elect to not apply for the
2 public funding, shall not be bound by the expenditure limits
3 specified in this section. If there is more than one candidate
4 in a major political party in a primary election, the fair
5 campaign funds which would have otherwise been available to each
6 opponent who has elected to not apply for the public funding
7 shall be divided equally among the candidates who accept public
8 financing.
9 Section 1613-A. Limitations on Certain Contributions.--(a)
10 Any candidate for the office of Justice of the Supreme Court or
11 Judge of the Superior Court or Commonwealth Court shall not
12 accept any contribution from an individual or political action
13 committee in excess of two hundred fifty dollars ($250), except
14 that the candidate and spouse may contribute up to twenty-five
15 thousand dollars ($25,000) for each primary, general or special
16 election. Any non-judicial candidate for a State-wide office set
17 forth under this article shall not accept contributions for each
18 primary, general or special election which exceed those
19 specified limits as follows:
20 Contributor Limit
21 (1) Individual $ 1,000
22 (2) Candidate and spouse 25,000
23 (3) Political action committee
24 as defined in section 1621(1) 5,000
25 (b) A gift, subscription, loan, advance or deposit of money
26 or anything of value to a candidate shall be considered a
27 contribution both by the original source of the contribution and
28 by any intermediary or conduit if the intermediary or conduit--
29 (1) exercises any control or any direction over the making of
30 the contribution; or (2) solicits the contribution or arranges
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1 for the contribution to be made and directly or indirectly makes
2 the candidate aware of such intermediary or conduit's role in
3 soliciting or arranging the contribution for the candidate.
4 (c) For purposes of subsection (b), a contribution shall not
5 be considered to be a contribution by an intermediary or conduit
6 to the candidate if-- (1) the intermediary or conduit has been
7 retained by the candidate's committee for the purpose of fund-
8 raising and is reimbursed for expenses incurred in soliciting
9 contributions; (2) in the case of an individual, the candidate
10 has expressly authorized the intermediary or conduit to engage
11 in fund-raising, or the individual occupies a significant
12 position within the candidate's campaign organization; or (3) in
13 the case of a political committee, the intermediary or conduit
14 is an authorized committee of the candidate.
15 Section 1614-A. Inflation Indexing of Certain Limitations.--
16 The dollar figures contained in sections 1607-A, 1609-A and
17 1612-A shall be adjusted annually during March at a rate equal
18 to the average percentage change in the All-Urban Consumer Price
19 Index for the Pittsburgh, Philadelphia and Scranton standard
20 metropolitan statistical areas as published by the Bureau of
21 Labor Statistics of the United States Department of Labor, or
22 any successor agency, occurring in the prior calendar year. The
23 base year shall be 1994. The average shall be calculated and
24 certified by the secretary annually by adding the percentage
25 increase in each of the three areas and dividing by three. The
26 calculation and resulting new figures shall be published in the
27 Pennsylvania Bulletin during March.
28 Section 1615-A. Annual Report.--The secretary shall report
29 annually to the Governor and the General Assembly on the
30 operations of funding as provided by this article. This report
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1 shall include, but not be limited to, the revenues and
2 expenditures in the fund, the amounts distributed to candidates,
3 the results of any audits performed on candidates in compliance
4 with this article and any prosecutions brought for violations of
5 this article.
6 Section 1616-A. Return of Excess Funds.--(a) All unexpended
7 campaign funds in a candidate's and his authorized committees'
8 possession sixty (60) days after a primary election shall be
9 returned to the secretary for deposit in the Pennsylvania Fair
10 Campaign Fund, up to the amount of the funds which were
11 distributed to the candidate under this article for the primary
12 election.
13 (b) All unexpended campaign funds in a candidate's and his
14 authorized committee's possession sixty (60) days after a
15 general or municipal election shall be returned to the secretary
16 for deposit in the Pennsylvania Fair Campaign Fund, up to the
17 amount of the funds which were distributed to the candidate
18 under this article for the general or municipal election.
19 Section 1617-A. Penalties.--(a) A person who violates the
20 provisions of this article and who, as a result, obtains funds
21 under this article to which he is not entitled commits a
22 misdemeanor of the first degree and shall, upon conviction, be
23 subject to a fine not to exceed the greater of ten thousand
24 dollars ($10,000) or three times the amount of funds wrongfully
25 obtained or to imprisonment for up to five years, or both.
26 (b) A person who violates section 1611-A or 1612-A commits a
27 misdemeanor of the first degree and shall, upon conviction, be
28 subject to a fine not to exceed the greater of ten thousand
29 dollars ($10,000) or three times the amount of funds that were
30 wrongfully used or expended or to imprisonment for up to five
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1 years, or both.
2 (c) Except as provided in subsections (a) and (b), a person
3 who violates any provision of this act commits a misdemeanor of
4 the third degree and shall, upon conviction, be subject to a
5 fine of not more than one thousand dollars ($1,000) or to
6 imprisonment for up to one year, or both.
7 Section 4. This act shall be applicable to returns of
8 taxpayers of calendar years commencing January 1, 1996, and
9 thereafter. Funding from the Pennsylvania Fair Campaign Fund
10 shall be provided to candidates for Statewide office beginning
11 with the primary election of 1998 and in each primary, municipal
12 and general election thereafter.
13 Section 5. This act shall take effect immediately.
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