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                                                      PRINTER'S NO. 1269

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 600 Session of 2001


        INTRODUCED BY VITALI, DeWEESE, M. COHEN, LEVDANSKY, KREBS,
           STEELMAN, FREEMAN, SURRA, BEBKO-JONES, BLAUM, BROWNE,
           CALTAGIRONE, CAPPABIANCA, COLAFELLA, FRANKEL, GORDNER,
           GRUCELA, HANNA, JAMES, JOSEPHS, LAUGHLIN, MANDERINO, MELIO,
           MICHLOVIC, NAILOR, PETRONE, ROEBUCK, SANTONI, THOMAS, TIGUE,
           WALKO, WANSACZ, C. WILLIAMS AND YUDICHAK, MARCH 21, 2001

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, MARCH 21, 2001

                                     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 public financing for candidates for
    12     the office of Governor and Lieutenant Governor; establishing
    13     the Pennsylvania Fair Campaign Fund; providing qualifications
    14     for funding, for payments, for use of funds, for authorized
    15     expenditures, for limitation on contributions, for return of
    16     funds and for penalties; and making an appropriation.

    17     The General Assembly of the Commonwealth of Pennsylvania
    18  hereby enacts as follows:
    19     Section 1.  The act of June 3, 1937 (P.L.1333, No.320), known
    20  as the Pennsylvania Election Code, is amended by adding an
    21  article to read:
    22                           ARTICLE XVI-A
    23            Pennsylvania Gubernatorial Public Financing

     1     Section 1601-A.  Short Title.--This article shall be known
     2  and may be cited as the Pennsylvania Gubernatorial Public
     3  Financing Act.
     4     Section 1602-A.  Definitions.--As used in this article:
     5     (a)  The word "candidate" means any of the following:
     6     (1)  an individual seeking nomination or election to the
     7  office of Governor or Lieutenant Governor who has filed a
     8  nomination petition or nomination paper;
     9     (2)  an individual who receives contributions or makes
    10  expenditures in connection with seeking nomination or election
    11  to the office of Governor or Lieutenant Governor; or
    12     (3)  an individual on behalf of whom a registration statement
    13  must be filed in accordance with section 1624.
    14     (b)  The word "commission" shall mean the State Ethics
    15  Commission.
    16     (c)  The word "contribution" shall mean a contribution as
    17  defined by section 1621.
    18     (d)  The word "expenditure" shall mean an expenditure as
    19  defined by section 1621.
    20     (e)  The word "fund" shall mean the Pennsylvania Fair
    21  Campaign Fund established in section 1605-A.
    22     (f)  The words "independent expenditure" shall mean an
    23  expenditure by a person made for the purpose of influencing an
    24  election without cooperation or consultation with any candidate
    25  or any political committee authorized by that candidate and
    26  which is not made in concert with or at the request or
    27  suggestion of any candidate or political committee or agent
    28  thereof.
    29     (g)  The words "major political party" shall mean a political
    30  party whose candidate for Governor received either the highest
    20010H0600B1269                  - 2 -

     1  or second highest number of votes in the preceding gubernatorial
     2  election.
     3     Section 1603-A.  Application and Administration of Article.--
     4     (a)  The provisions of this article shall be applicable to
     5  candidates for the offices of Governor and Lieutenant Governor.
     6     (b)  For the purposes of this article insofar as it relates
     7  to funding of nominated candidates in the general election, a
     8  political party's or political body's nominated candidates for
     9  Governor and Lieutenant Governor shall be considered as one
    10  candidacy, and the provisions specifically applicable to the
    11  Governor shall be applicable to the combined candidacy.
    12     (c)  The provisions of this article shall be administered by
    13  the State Ethics Commission. The commission may adopt rules and
    14  regulations as may be required to implement the provisions of
    15  this article and to carry out its purpose.
    16     Section 1604-A.  Campaign Committee Required.--Each candidate
    17  for Governor or Lieutenant Governor shall form a campaign
    18  committee through which all campaign contributions shall be
    19  received and all campaign expenditures shall be disbursed.
    20     Section 1605-A.  Pennsylvania Fair Campaign Fund
    21  Established.--There is hereby established a special restricted
    22  receipts fund in the State Treasury to be known as the
    23  Pennsylvania Fair Campaign Fund. Payments shall be made into
    24  this fund pursuant to section 1606-A, and disbursements shall be
    25  made from the fund only upon the warrant of the commission and a
    26  warrant of the State Treasurer. As much of the moneys in the
    27  fund as are necessary to make payments to candidates as provided
    28  in this article are appropriated from the Pennsylvania Fair
    29  Campaign Fund on a continuing basis for the purpose of such
    30  payments.
    20010H0600B1269                  - 3 -

     1     Section 1606-A.  Funding the Pennsylvania Fair Campaign.--
     2     (a)  Beginning with tax years commencing January 1, 2001, and
     3  thereafter, each individual subject to the tax imposed by
     4  Article III of the act of March 4, 1971 (P.L.6, No.2), known as
     5  the "Tax Reform Code of 1971," whose tax liability for the year
     6  is five dollars ($5) or more may designate five dollars ($5) of
     7  his personal income taxes to be paid into the fund. In the case
     8  of married taxpayers filing a joint return, each spouse may
     9  designate five dollars ($5) to be paid into the fund if their
    10  tax liability is ten dollars ($10) or more. All of these
    11  designated tax revenues shall be paid into the fund. The check-
    12  off and instructions shall be prominently displayed on the first
    13  page of the return form. The instructions shall readily indicate
    14  that these designations neither increase nor decrease an
    15  individual's tax liability.
    16     (b)  The General Assembly shall appropriate money to the Fair
    17  Campaign Fund sufficient to fully fund all requirements of this
    18  article including the administrative, investigative and
    19  enforcement responsibilities of the State Ethics Commission.
    20  Upon notice by the commission, the General Assembly shall
    21  appropriate to the commission out of the General Fund such
    22  additional sums as may be required to carry out the purposes of
    23  this article if the sums first appropriated become inadequate.
    24     Section 1607-A.  Certification of Moneys in Fund.--By June 30
    25  of each year, the State Treasurer shall certify to the
    26  commission the current balance available in the fund.
    27     Section 1608-A.  Qualification for Funding.--
    28     (a)  Any candidate for the offices of Governor and Lieutenant
    29  Governor may apply for funding under this article if the
    30  candidate meets the contributory thresholds established in
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     1  subsection (b) and otherwise conforms to the requirements of
     2  this article. No candidate shall be obligated to apply for
     3  funding under this article and if any candidate elects not to
     4  apply, the provisions of this article pertaining to limits on
     5  expenditures or the use of his personal funds shall be
     6  inapplicable to the person and his candidacy. Any candidate
     7  electing to receive funding under this article shall declare his
     8  intention to do so and specify the office for which he is a
     9  candidate. No candidate for the office of Governor, nominated at
    10  a primary election, may elect to receive funding under this
    11  article for a general election unless the candidate elected to
    12  receive funding under this article for the primary election. Any
    13  candidate who for any reason has his name withdrawn from the
    14  ballot, after receipt of funds under this article, shall return
    15  to the fund all unspent money received from the fund.
    16     (b)  (1)  In order to qualify for funding in a general
    17  election, a candidate for Governor must receive subsequent to
    18  the date of that candidate's primary election but prior to the
    19  date of the candidate's general election two hundred thousand
    20  dollars ($200,000) in qualifying contributions.
    21     (2)  In order to qualify for funding in a primary election, a
    22  candidate must receive, prior to the date of the primary
    23  election but after becoming a candidate, the following amounts:
    24         Office              Qualifying Contributions Required
    25     (i)  Governor                     $100,000
    26     (ii)  Lieutenant Governor           50,000
    27     (3)  Definition:
    28     (i)  The term "qualifying contribution" includes any
    29  contribution which has all of the following characteristics:
    30     (A)  Made by an individual resident of Pennsylvania.
    20010H0600B1269                  - 5 -

     1     (B)  Made by a written instrument which indicates the
     2  contributor's full name and mailing address and is not intended
     3  to be returned to the contributor or transferred to another
     4  political committee or candidate.
     5     (ii)  If a contributor receives goods or services of value in
     6  return for his contribution, the qualifying contribution shall
     7  be calculated as the original contribution, minus the fair
     8  market value of the goods or services received.
     9     (c)  Each candidate who elects to apply for funding under
    10  this article shall provide evidence that the candidate has
    11  raised the qualifying contributions required by this section
    12  which evidence shall be verified and certified as correct by the
    13  auditors of the State Ethics Commission.
    14     (d)  A candidate who has accepted public funding under this
    15  article may apply to the commission for a waiver of the funding
    16  limits set forth in section 1610-A and/or the spending limits
    17  contained in section 1613-A if the amount of independent
    18  expenditures for communications advocating the defeat of the
    19  candidate or election of his opponent require the candidate
    20  applying for the waiver to spend above the limits specified in
    21  section 1613-A in order to answer the communications paid for by
    22  the independent expenditures. The commission shall issue
    23  regulations setting guidelines for granting or denying requests
    24  for a waiver submitted under this section.
    25     (e)  The commission shall conduct a complete audit of all
    26  candidates receiving funds under this article. Such audits shall
    27  be conducted the year following the election for which funds
    28  were distributed. The Secretary of the Commonwealth shall
    29  provide the commission at no cost all reports of contributions
    30  and expenditures filed pursuant to Article XVI by candidates for
    20010H0600B1269                  - 6 -

     1  Governor and Lieutenant Governor, their political committees and
     2  all other political committees who have contributed to such
     3  candidates.
     4     (f)  The auditors shall conduct their audit in accord with
     5  sound accounting principles and shall make findings of any
     6  possible violations of this article. All audited candidates and
     7  their committees shall furnish any records to the accountants
     8  which the accountants deem necessary for the completion of their
     9  work.
    10     (g)  The commission shall make public the report of the
    11  auditors and shall provide a copy to the Attorney General for
    12  the institution of such criminal proceedings as he or she shall
    13  deem necessary.
    14     Section 1609-A.  Funding Formula.--
    15     (a)  Every candidate who qualifies for funding for an
    16  election pursuant to section 1608-A shall receive matching
    17  payments from the fund in the amount of two dollars ($2) for
    18  each dollar of qualifying contribution.
    19     (b)  The two dollars ($2) for each dollar of qualifying
    20  contributions provided by this section shall be provided both
    21  for qualifying contributions raised which exceed the threshold
    22  amounts specified in section 1608-A and for those qualifying
    23  contributions which are attributable to meeting the threshold
    24  amounts necessary to qualify for funding under this article.
    25     (c)  (1)  Only those qualifying contributions made during the
    26  period between the date of becoming a candidate and the date of
    27  the primary election shall be eligible for matching payments
    28  from the fund for the primary election.
    29     (2)  Only those qualifying contributions made during the
    30  period between the primary election and the general election of
    20010H0600B1269                  - 7 -

     1  the year in which that candidate runs for office shall be
     2  eligible for matching payments from the fund for the general
     3  election.
     4     (d)  Matching funds shall not be provided for any qualifying
     5  contributions unless the reporting requirements required by the
     6  commission are satisfied.
     7     Section 1610-A.  Limitations on Funding.--
     8     (a)  Every candidate who qualifies for and receives funding
     9  pursuant to the formula established by this article shall be
    10  entitled to receive no more than the maximum amount specified in
    11  subsection (b) for the office the candidate is seeking.
    12     (b)  (1)  The maximum amount of funding available for each
    13  candidate for Governor at a general election under this article
    14  shall be five million two hundred thousand dollars ($5,200,000).
    15     (2)  The maximum amount of funding available for the primary
    16  election for each candidate under this article shall be as
    17  follows:
    18             Office              Maximum Pennsylvania Fair
    19                                      Campaign Funding
    20       (i)  Governor                      $2,600,000
    21      (ii)  Lieutenant Governor             600,000
    22     Section 1611-A.  Time of Payments.--A candidate for Governor
    23  and Lieutenant Governor in the case of a primary election may
    24  begin to receive public funding payments after he or she has
    25  received the qualifying contribution amounts required by section
    26  1608-A(b)(2) in the case of a primary election and section 1608-
    27  A(b)(1) in the case of a general election. The commission shall
    28  make payments authorized by this article at least every two (2)
    29  weeks. However, except for the final payment, no payment shall
    30  be due or paid if the payment does not equal at least five
    20010H0600B1269                  - 8 -

     1  thousand dollars ($5,000).
     2     Section 1612-A.  Use of Funds by Candidates.--
     3     (a)  Funds distributed to candidates pursuant to this article
     4  may be used only for the election for which they are distributed
     5  and only for the purposes set forth in this article except that
     6  no fund moneys may be used:
     7     (1)  To transfer to other candidates or to committees of
     8  other candidates or to political committees.
     9     (2)  To pay for expenditures incurred as follows:
    10     (i)  after the date of the primary election in the case of an
    11  unsuccessful primary candidate; or
    12     (ii)  after the date of the general election in the case of
    13  all other candidates.
    14     (b)  Funds distributed to a candidate pursuant to this
    15  article shall be placed in a single bank account. Expenditures
    16  from this account shall be made only for campaign expenses
    17  listed in subsection (a).
    18     Section 1613-A.  Expenditures.--
    19     (a)  Expenditures made by a candidate for Governor, for all
    20  purposes and from all sources, including but not limited to
    21  amounts of funds distributed under this article, proceeds of
    22  loans, gifts, contributions from any source or personal funds,
    23  subsequent to the date of the primary election but prior to the
    24  date of the general election, may not exceed eight million
    25  dollars ($8,000,000).
    26     (b)  Expenditures made by a candidate prior to the date of
    27  the primary election may not exceed the following unless
    28  otherwise provided:
    29             Office                Total Expenditure Limits
    30     (1)  Governor                      $4,000,000
    20010H0600B1269                  - 9 -

     1     (2)  Lieutenant Governor            1,000,000
     2     (c)  The expenditure limits of this section apply only to
     3  candidates who receive public funding pursuant to this article,
     4  except that a candidate who accepts public funding but whose
     5  political party opponent in a general election elects not to
     6  apply for the public funding shall not be bound by the
     7  expenditure limits of this section. A candidate who accepts
     8  public funding shall be eligible to qualify for those fair
     9  campaign funds which would have otherwise been available to the
    10  opponent who has chosen not to apply for funding from the fund.
    11     (d)  Notwithstanding any other provision of this article, a
    12  candidate who accepts public funding pursuant to the formula
    13  established, but whose major political party opponents in a
    14  primary election elect to not apply for the public funding,
    15  shall not be bound by the expenditure limits specified in this
    16  section. If there is more than one candidate in a political
    17  party in a primary election, the fair campaign funds which would
    18  have otherwise been available to each opponent who has elected
    19  to not apply for the public funding shall be divided equally
    20  among the candidates who accept public financing.
    21     Section 1614-A.  Annual Report.--The commission shall report
    22  annually to the Governor and the General Assembly on the
    23  operations of funding as provided by this article. This report
    24  shall include, but not be limited to, the revenues and
    25  expenditures in the fund, the amounts distributed to candidates,
    26  the results of any audits performed on candidates in compliance
    27  with this article and any prosecutions brought for violations of
    28  this article.
    29     Section 1615-A.  Return of Excess Funds.--
    30     (a)  All unexpended campaign funds in a candidate's and his
    20010H0600B1269                 - 10 -

     1  authorized committees' possession sixty (60) days after a
     2  primary election shall be returned to the State board for
     3  deposit in the fund, up to the amount of the funds which were
     4  distributed to the candidate under this article for the primary
     5  election.
     6     (b)  All unexpended campaign funds in a candidate's and his
     7  authorized committees' possession sixty (60) days after a
     8  general election shall be returned to the State board for
     9  deposit in the fund, up to the amount of the funds which were
    10  distributed to the candidate under this article for the general
    11  election.
    12     Section 1616-A.  Limitations on Certain Contributions.--
    13     (a)  The provisions of this section apply to any contribution
    14  made for the purpose of influencing any election to the office
    15  of Governor or Lieutenant Governor regardless of whether the
    16  candidate for that office has applied for or received funding
    17  under this article.
    18     (b)  Aggregate contributions, including in-kind
    19  contributions, from any person or political committee to any
    20  candidate for Governor or Lieutenant Governor, his authorized
    21  committee or agent shall not exceed two thousand dollars
    22  ($2,000) for the candidate's primary election and two thousand
    23  dollars ($2,000) for the candidate's general election.
    24  Furthermore, for each election, no candidate, his authorized
    25  committee or agent shall accept or receive more than two
    26  thousand dollars ($2,000) for the candidate's primary election
    27  and two thousand dollars ($2,000) for the candidate's general
    28  election in aggregate contributions, including in-kind
    29  contributions, from any person.
    30     (c)  A gift, subscription, loan, advance or deposit of money
    20010H0600B1269                 - 11 -

     1  or anything of value to a candidate shall be considered a
     2  contribution both by the original source of the contribution and
     3  by any intermediary or conduit if the intermediary or conduit:
     4     (1)  exercises any direction over the making of the
     5  contribution; or
     6     (2)  solicits the contribution or arranges for the
     7  contribution made and directly or indirectly makes the candidate
     8  aware of such intermediary or conduit's role in soliciting or
     9  arranging the contribution for the candidate.
    10     (d)  For purposes of subsection (c), a contribution shall not
    11  be considered to be a contribution by an intermediary or conduit
    12  to the candidate if:
    13     (1)  the intermediary or conduit has been retained by the
    14  candidate's committee for the purpose of fundraising and is
    15  reimbursed for expenses incurred in soliciting contributions;
    16     (2)  in the case of an individual, the candidate has
    17  expressly authorized the intermediary or conduit to engage in
    18  fundraising, or the individual occupies a significant position
    19  within the candidate's campaign organization; or
    20     (3)  in the case of a political committee, the intermediary
    21  or conduit is the authorized committee of the candidate.
    22     (e)  No candidate for Governor or Lieutenant Governor who
    23  accepts public funding in accordance with this article may
    24  contribute from personal funds more than an aggregate of twenty-
    25  five thousand dollars ($25,000) in connection with his or her
    26  primary and general election campaigns.
    27     Section 1617-A.  Interactive Gubernatorial Primary and
    28  General Election Debates; Participation by Candidates.--
    29     (a)  In any year in which a primary election is to be held to
    30  nominate candidates for the offices of Governor and Lieutenant
    20010H0600B1269                 - 12 -

     1  Governor, there shall be held among the several candidates for
     2  each nomination a series of interactive primary debates in which
     3  all candidates who have filed nomination petitions in accordance
     4  with this act for these offices and have applied or intend to
     5  apply to receive money for election campaign expenses from the
     6  fund shall participate and in which any other candidate who
     7  would have otherwise qualified for public funding under section
     8  1608-A(b)(2) twenty (20) days before the date of the debate,
     9  provided that the other candidate notifies the commission of the
    10  candidate's intent to participate no later than twenty (20) days
    11  before the date of the debate. In any year in which no candidate
    12  or only one candidate for a nomination is required or elects to
    13  participate, no primary debate shall be required to be held
    14  under this subsection.
    15     (b)  In any year in which a general election is to be held
    16  for the offices of Governor and Lieutenant Governor, there shall
    17  be held a series of interactive debates in which all candidates
    18  who have received nominations for these offices at the primary
    19  or through the filing of nomination papers in accordance with
    20  this act and have applied or intend to apply to receive money
    21  for election campaign expenses from the fund shall participate
    22  and in which any other candidate, who would have otherwise
    23  qualified for public funding under section 1608-A(b)(1) twenty
    24  (20) days before the date of the debate, may participate,
    25  provided that the other candidate notifies the commission of the
    26  candidate's intent to participate no later than twenty (20) days
    27  before the date of the debate.
    28     Section 1618-A.  Time and Contents; Sponsors.--
    29     (a)  There shall be two gubernatorial and two lieutenant
    30  gubernatorial primary debates. Each of the debates shall be at
    20010H0600B1269                 - 13 -

     1  least one hour in duration. The first debate shall occur not
     2  earlier than the date on which the names of candidates to appear
     3  on the primary ballot are certified by the Secretary of the
     4  Commonwealth in accordance with section 916 and the second
     5  debate shall occur not later than the Tuesday preceding the
     6  primary election.
     7     (b)  There shall be three gubernatorial and three lieutenant
     8  gubernatorial debates. Each of the debates shall be at least one
     9  (1) hour. The first debate shall occur not earlier than fifty
    10  (50) days before the date of the general election, and the
    11  second debate shall occur not later than the Tuesday preceding
    12  the election.
    13     (c)  Private organizations which are not affiliated with any
    14  political party or with any holder of or candidate for public
    15  office and which have not endorsed any candidate in the pending
    16  primary or general election for the office of Governor shall be
    17  eligible to sponsor one or more interactive gubernatorial
    18  primary debates or interactive gubernatorial election debates
    19  under subsection (a) or (b), respectively.
    20     (d)  The commission shall accept applications from eligible
    21  private organizations to sponsor one or more of the interactive
    22  debates. Applications to sponsor debates under subsection (a)
    23  shall be submitted to the commission no later than March 15 of
    24  any year in which a primary election is to be held to nominate
    25  candidates for the office of Governor and Lieutenant Governor,
    26  and applications to sponsor debates under subsection (b) shall
    27  be submitted to the commission no later than July 1 of any year
    28  in which a general election is to be held to fill the office of
    29  Governor.
    30     (e)  Where the number of eligible applicants to sponsor
    20010H0600B1269                 - 14 -

     1  primary debates or election debates exceed the number prescribed
     2  under subsections (a) and (b), respectively, the commission
     3  shall select the private organizations from among the applicants
     4  within thirty (30) days of the last day for submitting those
     5  applications, as provided under this subsection. To the maximum
     6  extent practicable and feasible, the commission shall select a
     7  different private organization to sponsor each of the
     8  interactive gubernatorial debates, but shall not be precluded
     9  from selecting the same private organization to sponsor more
    10  than one debate.
    11     (f)  The private organizations selected by the commission
    12  shall be responsible for selecting the date, time and location
    13  of the debates, subject to the limitations set forth in this
    14  section. The rules for conducting each debate shall be solely
    15  the responsibility of the private organizations so selected, but
    16  shall not be made final without consultation with both the
    17  chairman of the State committee of each political party in the
    18  case of primary debates, and with a representative designated by
    19  each of the participating candidates in the case of general
    20  election debates.
    21     Section 1619-A.  Failure of Candidate to Participate in
    22  Debates; Complaint; Hearing; Determination; Penalties.
    23     (a)  The commission shall have the power and duty, upon
    24  receipt of a complaint against a candidate for nomination for
    25  election or for election for the office of Governor or
    26  Lieutenant Governor who is required to participate in primary
    27  debates or election debates, respectively, to hold a hearing to
    28  determine whether that candidate has failed to participate in
    29  debates. If, at the conclusion of a hearing under this section,
    30  the commission determines by majority vote that a candidate
    20010H0600B1269                 - 15 -

     1  required to participate under this act has failed to do so, the
     2  chairman shall immediately inform the candidate in writing of
     3  that determination, identifying in that writing the date and
     4  circumstances of the failure. If, after having found that a
     5  candidate required to participate in a primary or election
     6  debate has failed to do so, the commission further finds that
     7  the failure occurred under circumstances which were beyond the
     8  control of the candidate and were of such a nature that a
     9  reasonable person, taking into account the purposes of this act
    10  and the relevant facts of the case, would find the failure
    11  justifiable or excusable, then the candidate shall not be
    12  subject to any penalty or liability for failing to participate.
    13  The candidate charged with failure to participate shall have the
    14  burden of showing justification or excuse.
    15     (b)  The campaign of any candidate or former candidate who
    16  shall have been required to participate in a primary debate or
    17  election debate under this article, but who has been found to
    18  have failed to do so without reasonable justification or excuse,
    19  shall be liable for return of moneys previously received for use
    20  by the candidate to pay primary election campaign expenses or
    21  general election campaign expenses, respectively. The commission
    22  shall determine the total amount of moneys for election campaign
    23  expenses in that year by the commission to the candidate under
    24  this article, as appropriate, and shall notify the campaign
    25  treasurer of the candidate of the liability as of the date of
    26  the notice, for the repayment of those moneys plus interest on
    27  the unpaid amount of that liability from that date at the rate
    28  of one (1) per cent for each month or fractional a part of a
    29  month during which that amount remains unpaid.
    30     Section 1620-A.  Penalties.--
    20010H0600B1269                 - 16 -

     1     (a)  A person who violates the provisions of this article and
     2  who, as a result, obtains funds under this article to which he
     3  is not entitled commits a misdemeanor of the first degree and
     4  shall, upon conviction, be subject to a fine not to exceed the
     5  greater of ten thousand dollars ($10,000), or three (3) times
     6  the amount of funds wrongfully obtained or to imprisonment for
     7  up to five (5) years, or both.
     8     (b)  A person who violates section 1612-A or 1613-A commits a
     9  misdemeanor of the first degree and shall, upon conviction, be
    10  subject to a fine not to exceed the greater of ten thousand
    11  dollars ($10,000), or three (3) times the amount of funds that
    12  were wrongfully used or expended or to imprisonment for up to
    13  five (5) years, or both.
    14     (c)  Except as provided in subsections (a) and (b), a person
    15  who violates any provision of this article commits a misdemeanor
    16  of the third degree and shall, upon conviction, be subject to a
    17  fine of not more than one thousand dollars ($1,000), or to
    18  imprisonment for up to one (1) year, or both.
    19     (d)  All fines and penalties assessed pursuant to this
    20  article shall be deposited in the Pennsylvania Fair Campaign
    21  Fund.
    22     Section 1621-A.  Severability.--The provisions of this
    23  article are severable. If any provision of this article or its
    24  application to any person or circumstance is held invalid, the
    25  invalidity shall not affect other provisions or applications of
    26  this article which can be given effect without the invalid
    27  provision or application.
    28     Section 1622-A.  Applicability.--Funding from the
    29  Pennsylvania Fair Campaign Fund shall be provided to candidates
    30  for Statewide office beginning with the primary election of 2002
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     1  and in each gubernatorial primary and election thereafter.
     2     Section 2.  (a)  The sum of $750,000 is hereby appropriated
     3  to the State Ethics Commission for fiscal year 2000-2001 to
     4  implement the requirements of Article XVI-A of the act of June
     5  3, 1937 (P.L.1333, No.320), known as the Pennsylvania Election
     6  Code.
     7     (b)  The dollar figures contained in this act shall be
     8  adjusted annually at a rate equal to the average percentage
     9  change in the All-Urban Consumer Price Index for the Pittsburgh,
    10  Philadelphia and Scranton standard metropolitan statistical
    11  areas as published by the Bureau of Labor Statistics of the
    12  United States Department of Labor, or any successor agency,
    13  occurring in the prior calendar year. The base year shall be
    14  2001. The average shall be calculated and certified annually by
    15  the commission by adding the percentage increase in each of the
    16  three areas and dividing by three. The calculation and resulting
    17  new dollar figures shall be published in March in the
    18  Pennsylvania Bulletin. The checkoff referred to in section 1606-
    19  A of the Pennsylvania Election Code shall be rounded to the
    20  nearest dollar.
    21     Section 3.  This act shall be retroactive to January 1, 2001.
    22     Section 4.  This act shall take effect immediately.






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