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                                                      PRINTER'S NO. 4545

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2825 Session of 2008


        INTRODUCED BY FREEMAN, ARGALL, BENNINGTON, BOYD, BRENNAN,
           GEORGE, MAHONEY, MELIO, MOUL, NAILOR, M. O'BRIEN, ROCK,
           SIPTROTH, K. SMITH, GIBBONS, SONNEY, GINGRICH, BENNINGHOFF
           AND MURT, OCTOBER 15, 2008

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, OCTOBER 15, 2008

                                     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," defining "mass mailing," "public communication,"
    12     "electioneering communication" and "targeting to relevant
    13     electorate"; providing for disclosure of electioneering
    14     communications; and further providing for contributions or
    15     expenditures by national banks, corporations or
    16     unincorporated associations.

    17     The General Assembly of the Commonwealth of Pennsylvania
    18  hereby enacts as follows:
    19     Section 1.  Section 1621 of the act of June 3, 1937
    20  (P.L.1333, No.320), known as the Pennsylvania Election Code, is
    21  amended by adding definitions to read:
    22     Section 1621.  Definitions.--As used in this article, the
    23  following words have the following meanings:
    24     * * *

     1     (c.1)  The words "electioneering communication" shall mean
     2  the following:
     3     (1)  Any broadcast, cable or satellite communication which:
     4     (i)  refers to a clearly identified candidate; and
     5     (ii)  is made within:
     6     (A)  sixty (60) days before a municipal, general or special
     7  election for the office sought by the candidate or thirty (30)
     8  days before a primary of a political party that has authority to
     9  nominate a candidate for the office sought by the candidate; and
    10     (B)  is targeted to the relevant electorate.
    11     (2)  The term shall not include:
    12     (i)  a communication appearing in a news story, commentary or
    13  editorial distributed through the facilities of any broadcasting
    14  station, unless such facilities are owned or controlled by any
    15  political party, political committee or candidate;
    16     (ii)  a communication which constitutes an expenditure or an
    17  independent expenditure under this act;
    18     (iii)  a communication which constitutes a candidate debate
    19  or forum or which solely promotes such a debate or forum and is
    20  made by or on behalf of the person sponsoring the debate or
    21  forum;
    22     (iv)  a communication made regarding a candidate for any
    23  local office, including the office of judge of the court of
    24  common pleas;
    25     (v)  a communication made regarding a candidate for any
    26  political party office; or
    27     (vi)  any other communication exempted under such regulations
    28  as the Secretary of the Commonwealth may promulgate to ensure
    29  appropriate implementation of this article, except that under
    30  any regulation, a communication may not be exempted if it meets
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     1  the requirements of this subclause and is a public communication
     2  that refers to a clearly identified candidate for office that
     3  promotes or supports a candidate for that office, or attacks or
     4  opposes a candidate for that office, regardless of whether the
     5  communication expressly advocates a vote for or against a
     6  candidate.
     7     * * *
     8     (f.1)  The words "mass mailing" shall mean a mailing by
     9  United States mail or a facsimile of more than five hundred
    10  (500) pieces of mail matter of an identical or substantially
    11  similar nature within any thirty-day period.
    12     * * *
    13     (i.1)  The words "public communication" shall mean a
    14  communication by means of any broadcast, cable, satellite
    15  communication, newspaper, magazine, outdoor advertising
    16  facility, mass mailing, telephone bank to the general public or
    17  any other form of general public political advertising.
    18     * * *
    19     (j.1)  The words "targeting to relevant electorate" shall
    20  mean a communication which refers to a clearly identified
    21  candidate, if the communication can be received by:
    22     (1)  fifty thousand (50,000) or more persons in this
    23  Commonwealth in the case of a candidate for a Statewide office;
    24     (2)  twenty thousand (20,000) or more persons in the district
    25  the candidate seeks to represent in the case of a candidate for
    26  the Senate of the Commonwealth of Pennsylvania; or
    27     (3)  five thousand (5,000) or more persons in the district
    28  the candidate seeks to represent in the case of a candidate for
    29  the House of Representatives of the Commonwealth of
    30  Pennsylvania.
    20080H2825B4545                  - 3 -     

     1     * * *
     2     Section 2.  The act is amended by adding a section to read:
     3     Section 1626.2.  Disclosure of Electioneering
     4  Communications.--
     5     (a)  Every person who makes a disbursement for the direct
     6  costs of producing and airing electioneering communications in
     7  an aggregate amount in excess of ten thousand dollars ($10,000)
     8  during any calendar year shall, within twenty-four (24) hours of
     9  each disclosure date, file with the appropriate supervisor a
    10  statement containing the information described in subsection
    11  (b). If the twenty-four-hour period ends on a Saturday, Sunday,
    12  holiday or any time after the close of business, the statement
    13  shall be filed on the next business day.
    14     (b)  Each statement required to be filed under this section
    15  shall be made under penalty of perjury and shall contain the
    16  following information:
    17     (1)  If the person making the disbursement is an individual,
    18  the name, home address, occupation and employer of the
    19  individual.
    20     (2)  If the person making the disbursement is not an
    21  individual, the name and address of the person's principal place
    22  of business.
    23     (3)  The name of any person sharing or exercising direction
    24  or control of the person named under clause (1) or (2), as well
    25  as the name of the custodian of the accounts of the person named
    26  under clause (1) or (2).
    27     (4)  The amount of each disbursement of more than two hundred
    28  fifty dollars ($250) during the period covered by the statement
    29  and the name of the person to whom the disbursement was made.
    30     (5)  The elections to which the electioneering communications
    20080H2825B4545                  - 4 -     

     1  pertain and the names, if known, of the candidates identified or
     2  to be identified.
     3     (6)  If the disbursements were paid out of a segregated bank
     4  account which consists of funds contributed solely by
     5  individuals who are United States citizens or nationals or
     6  lawfully admitted for permanent residence, as defined in section
     7  101(a)(20) of the Immigration and Nationality Act (66 Stat. 163,
     8  8 U.S.C. § 101(a)(20)), the names and addresses of all
     9  contributors who contributed an aggregate amount of one thousand
    10  dollars ($1,000) or more during the period beginning on the
    11  first day of the preceding calendar year and ending on the
    12  disclosure date. Nothing in this clause shall be construed to
    13  prohibit the use of funds in the segregated account for a
    14  purpose other than electioneering communications.
    15     (7)  If the disbursements were paid out of funds not
    16  described in clause (6), the names and addresses of all
    17  contributors who contributed an aggregate amount of one thousand
    18  dollars ($1,000) or more to the person making the disbursement
    19  during the period beginning on the first day of the preceding
    20  calendar year and ending on the disclosure date.
    21     (c)  For purposes of this section, a person shall be treated
    22  as having made a disbursement if the person has executed a
    23  contract to make the disbursement.
    24     (d)  Any requirement to report under this section shall be in
    25  addition to any other reporting requirement under this act.
    26     (e)  Nothing in this section may be construed to establish,
    27  modify or otherwise affect the definition of "political
    28  activities" or "electioneering activities," including the
    29  definition of "participating in, intervening in or influencing
    30  or attempting to influence a political campaign on behalf of or
    20080H2825B4545                  - 5 -     

     1  in opposition to any candidate for public office," for purposes
     2  of the Internal Revenue Code of 1986 (Public Law 99-514, 26
     3  U.S.C. § 1 et seq.).
     4     (f)  A person who fails to make a statement as required under
     5  this section shall be subject to prosecution under 18 Pa.C.S. §
     6  4902 (relating to perjury).
     7     (g)  For purposes of this section, the following words and
     8  phrases shall have the meaning ascribed in this subsection:
     9     The words "disclosure date" shall mean the first date during
    10  any calendar year by which a person has made disbursements for
    11  the direct costs of producing or airing electioneering
    12  communications aggregating in excess of ten thousand dollars
    13  ($10,000); and any other date during such calendar year by which
    14  a person has made disbursements for the direct costs of
    15  producing or airing electioneering communications aggregating in
    16  excess of ten thousand dollars ($10,000) since the most recent
    17  disclosure date for the calendar year.
    18     Section 3.  Section 1633 of the act is amended by adding a
    19  subsection to read:
    20     Section 1633.  Contributions or Expenditures by National
    21  Banks, Corporations or Unincorporated Associations.--* * *
    22     (e)  (1)  The following shall apply:
    23     (i)  An electioneering communication shall be treated as made
    24  by an entity described in subsection (a) if an entity pursuant
    25  to subsection (a) directly or indirectly disburses any amount
    26  for any of the costs of the communication.
    27     (ii)  A section 501(c)(4) organization that derives amounts
    28  from business activities or receives funds from any entity
    29  pursuant to subsection (a) of this section shall be considered
    30  to have paid for any communication out of such amounts unless
    20080H2825B4545                  - 6 -     

     1  such organization paid for the communication out of a segregated
     2  account to which only individuals can contribute, as described
     3  in section 1626.2(b)(6) of this act.
     4     (iii)  An electioneering communication does not include a
     5  communication by a section 501(c)(4) organization or a political
     6  organization, as defined in section 527(e)(1) of the Internal
     7  Revenue Code of 1986 (Public Law 95-514, 26 U.S.C. § 1527(e))
     8  made under section 1626.2(b)(6) or (7) of this act if the
     9  communication is paid for exclusively by funds provided directly
    10  by individuals who are United States citizens or nationals or
    11  lawfully admitted for permanent residence, as defined in section
    12  101(a)(20) of the Immigration and Nationality Act (66 Stat. 163,
    13  8 U.S.C. § 101(a)(20)). For purposes of this subclause, the term
    14  "provided directly by individuals" does not include funds the
    15  source of which is an entity described in subsection (a) of this
    16  section.
    17     (2)  Nothing in this subsection shall be construed to
    18  authorize an organization exempt from taxation under section
    19  501(a) of the Internal Revenue Code of 1986 (Public Law 99-514,
    20  26 U.S.C. § 501(a)) to carry out any activity which is
    21  prohibited under Federal law.
    22     (3)  An entity described in subsection (a) is prohibited from
    23  expressly advocating for the election or defeat of a candidate.
    24  A communication includes indicia of express advocacy if it
    25  mentions any election, candidate, political party, opposing
    26  candidate or voting by the general public or takes a position on
    27  any candidate's or office holder's character, qualifications or
    28  fitness for office. Content that would support a determination
    29  that a communication has an interpretation other than as an
    30  appeal to vote for or against a clearly identified candidate
    20080H2825B4545                  - 7 -     

     1  includes content that:
     2     (i)  focuses on a public policy issue and either urges a
     3  candidate to take a position on the issue or urges the public to
     4  contact the candidate about the issue;
     5     (ii)  proposes a commercial transaction, such as purchase of
     6  a book, video or other product or service, or such as
     7  attendance, for a fee, at a film exhibition or other event; or
     8     (iii)  includes a call to action or other appeal that,
     9  interpreted in conjunction with the rest of the communication,
    10  urges an action other than voting for or against or contributing
    11  to a clearly identified candidate or political party.
    12     (4)  A person shall be treated as having made a disbursement
    13  if the person has executed a contract to make the disbursement.
    14     (5)  For purposes of this subsection, the following words and
    15  phrases shall have the meaning ascribed in this clause:
    16     The words "section 501(c)(4) organization" shall mean an
    17  organization which:
    18     (i)  is described in section 501(c)(4) of the Internal
    19  Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. 26 §
    20  501(c)(4)) and is exempt from taxation under section 501(a) of
    21  the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
    22  § 501(a)); or
    23     (ii)  has submitted an application to the Internal Revenue
    24  Service for determination of its status as an organization
    25  described in subclause (i).
    26     The words "targeted communication" shall mean an
    27  electioneering communication that is distributed from a
    28  television or radio broadcast station or provider of cable or
    29  satellite television service and is targeted to the relevant
    30  electorate.
    20080H2825B4545                  - 8 -     

     1     Section 4.  This act shall take effect in 60 days.




















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