THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY LEVDANSKY, MOUL, JOSEPHS, R. TAYLOR, FREEMAN, VITALI, ROAE, MANDERINO, DePASQUALE, McILVAINE SMITH, READSHAW, GOODMAN, MURT, HORNAMAN, WAGNER, MUNDY, M. SMITH, CARROLL, PASHINSKI, GRUCELA, GIBBONS, MIRABITO, WHITE, McGEEHAN AND DeWEESE, JULY 6, 2009

REFERRED TO COMMITTEE ON STATE GOVERNMENT, JULY 6, 2009  

AN ACT

Amending the act of June 3, 1937 (P.L.1333, No.320), entitled

"An act concerning elections, including general, municipal,

special and primary elections, the nomination of candidates,

primary and election expenses and election contests; creating

and defining membership of county boards of elections;

imposing duties upon the Secretary of the Commonwealth,

courts, county boards of elections, county commissioners;

imposing penalties for violation of the act, and codifying,

revising and consolidating the laws relating thereto; and

repealing certain acts and parts of acts relating to

elections," further defining "expenditure" and "political

action committee"; adding definitions of "affiliate" or

"affiliated committee" and "in-kind contributions"; providing

for contribution limitations and independent expenditures;

further providing for reporting by candidate and political

committees and other persons, for pre-election reports by

certain candidates, for late filing fees, for contributions

or expenditures by national banks, corporations or

unincorporated associations and for reports by business

entities and for publication by Secretary of the

Commonwealth.

The General Assembly finds and declares as follows:

The Commonwealth has a compelling governmental interest to

protect the integrity of the government from actual corruption

or the perception of corruption. The General Assembly recognizes

that when people, associations or entities provide monetary

support for elected government officials or candidates who are

seeking governmental offices, there arises the perception of, if

not actual, corruption. The perception of corruption and actual

corruption can be prevented by regulating the contributions that

can be made to elected governmental officials and candidates who

are seeking governmental offices.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1621(d) and (l) of the act of June 3,

1937 (P.L.1333, No.320), known as the Pennsylvania Election

Code, amended or added October 4, 1978 (P.L.893, No.171) and

July 21, 1979 (P.L.189, No.63), are amended and the section is

amended by adding subsections to read:

Section 1621.  Definitions.--As used in this article, the

following words have the following meanings:

* * *

(d)  The word "expenditure" shall mean:

(1)  The payment, distribution, loan or advancement of money

or any valuable thing by a candidate, political committee or

other person for the purpose of influencing the outcome of an

election; Provided, however, That such payment, distribution,

loan or advancement of money or any valuable thing must be made

only for legitimate and verifiable expenses directly and

exclusively incurred for the campaign in which the candidate is

running in the contemporaneous election cycle and not for any

inherently personal purpose. "Inherently personal purpose" means

a purpose that, by its nature, confers a personal benefit,

including expenditures such as a home mortgage, rent, utility

payment, clothing purchase, noncampaign automobile expense,

country club membership, vacation or a trip of a noncampaign

nature, household food items, tuition payments, admission to a

sporting event, concert, theater or other form of entertainment

and other such expenditures not specifically and directly

necessary for the conduct of the campaign.

(2)  The payment, distribution, loan, advance or transfer of

money or other valuable thing between or among political

committees;

(3)  The providing of a service or other valuable thing for

the purpose of influencing the outcome of a nomination or

election of any person to any public office to be voted for in

this Commonwealth; or

(4)  The payment or providing of money or other valuable

thing by any person other than a candidate or political

committee, to compensate any person for services rendered to a

candidate or political committee.

(5)  The term "expenditure" shall not include campaign

expenditures made by a candidate for which the candidate is

reimbursed by his or her political committee within the

reporting period the expenditure was made. Such expenditure made

by the candidate is subject, however, to the requirements of

section 1626(c).

* * *

(l)  The words "Political Action Committee" shall mean any

political committee as defined in subsection (h) which receives

contributions and makes expenditures to, or on behalf of, any

candidate other than a candidate's own authorized political

committees or the political committees of any State, county,

city, borough, township, ward or other regularly constituted

party committee of any political party or political body. A

political action committee which is established, maintained or

controlled by a sponsoring organization such as a corporation,

labor organization, membership association, not-for-profit

organization or trade or professional association shall include

in its registered name the full name of its sponsoring

organization.

* * *

(n)  The words "affiliate" or "affiliated committee" shall

include:

(1)  Any committee established or authorized by a candidate

as part of his or her campaign for the same election for office.

(2)  Any committee established, financed, maintained or

controlled by the same corporation, labor organization,

membership association, not-for-profit organization or trade or

professional association, person or group of persons, including

any parent, subsidiary, branch, division, department or local

unit thereof. Local units may include, in appropriate cases, a

franchisee, licensee or regional association.

(o)  The words "in-kind contribution" shall mean a

contribution of goods, services, property or any valuable thing

offered free or at less than the usual and normal charge for

such goods or services, but shall not include any legal or

accounting services rendered to or on behalf of any political

committee of a political party, an authorized committee of a

candidate or any other political committee, if such services are

solely for the purpose of ensuring compliance with this article.

Such legal or accounting services, however, shall be reported

pursuant to section 1631.

Section 2.  Section 1626(a), (b) and (d) of the act, amended

or added October 4, 1978 (P.L.893, No.171) and July 11, 1980

(P.L.600, No.128) are amended to read:

Section 1626.  Reporting by Candidate and Political

Committees and other Persons.--

(a)  Each treasurer of a political committee and each

candidate for election to public office shall file with the

appropriate supervisor reports of receipts and expenditures on

forms, designed by the Secretary of the Commonwealth, if the

amount received or expended or liabilities incurred shall exceed

the sum of two hundred fifty dollars ($250). Should such an

amount not exceed two hundred fifty dollars ($250), then the

candidate or, in the case of a political committee, the

treasurer of the committee shall file a sworn statement to that

effect with the appropriate supervisor rather than the report

required by this section[.]: Provided, however, That if the

amount received or expended by a candidate does not exceed two

hundred fifty dollars ($250) he or she may comply with this

section by signing an affidavit to that effect on his/her

political committee's report or statement.

(b)  Each report shall include the following information:

(1)  The full name, mailing address, specific occupation and

specific name of the employer, if any, or the principal place of

business, if self-employed, of each person who has made one or

more contributions to or for such committee or candidate within

the reporting period in an aggregate amount or value in excess

of [two hundred fifty dollars ($250)] one hundred dollars

($100), together with the amount and date of such contributions.

The accuracy of the information furnished to the candidate or

committee shall be the responsibility of the contributor.

(2)  The full name and mailing address of each person [who]

and political committee that has made one or more contributions

to or for such committee or candidate within the reporting

period in an aggregate amount or value in excess of fifty

dollars ($50), together with the amount and date of such

contributions. The accuracy of the information furnished by the

contributor shall be the responsibility of the contributor.

(3)  The total sum of individual contributions made to or for

such committee or candidate during the reporting period and not

reported under clauses (1) and (2): Provided, however, That when

individual contributions under fifty dollars ($50) made to one

single fundraising event in which the total sum raised was two

thousand five hundred dollars ($2,500) or more the report must

list the names and addresses of all contributors to that event.

(4)  Each and every expenditure, the date made, the full name

and address of the person to whom made and the purpose for which

such expenditure was made. In the event the creditor is a credit

card company or like instrumentality that is an intermediary for

collecting payments due, it shall not be sufficient to list the

name of the collecting organization. Rather, the report shall

identify the credit card company and also the specific entities

and payments being paid through the credit card company or like

entity. In the event the payment is being made by a committee to

a creditor for expenses on behalf of more than one candidate,

the amounts of payments and purposes of the payments shall be

broken down to identify each candidate's share of the incurred

expenses.

(5)  Any unpaid debts and liabilities, with the nature and

amount of each, the date incurred and the full name and address

of the person owed.

(6)  The account shall include any unexpended balance of

contributions or other receipts appearing from the last account

filed.

* * *

(d)  Pre-election reports by candidates for offices to be

voted for by the electors of the State at large, candidates for

the office of Senator in the General Assembly, candidates for

the office of Representative in the General Assembly and all

political committees, which have expended money for the purpose

of influencing the election of such [candidate] candidates,

shall be filed not later than the sixth Tuesday before and the

second Friday before an election, provided that the initial pre-

election report shall be complete as of fifty (50) days prior to

the election and the subsequent pre-election report shall be

complete as of fifteen (15) days prior to the election. Pre-

election reports by all other candidates and political

committees which have received contributions or made

expenditures for the purpose of influencing an election shall be

filed not later than the second Friday before an election,

provided that such report be complete as of fifteen (15) days

prior to the election.

(d.1)  During non-election years in which subsection (d) is

not operative, an elected official or announced candidate for

elective office shall file quarterly reports if he or she

receives more than two hundred fifty dollars ($250) during the

respective calendar quarter. Reports shall be due at the end of

each calendar quarter.

* * *

Section 3.  The act is amended by adding a section to read:

Section 1627.1.  Limitations on Certain Contributions.--

(a)  Aggregate contributions, including in-kind

contributions, from any person to any candidate for the office

of Senator or Representative in the General Assembly, court of

common pleas or a county or local office, his authorized

committee or agent shall not exceed five hundred dollars ($500)

for each election. Furthermore, for each election, no such

candidate, his authorized committee or agent shall accept or

receive more than five hundred dollars ($500) in aggregate

contributions, including in-kind contributions from any person.

(b)  Aggregate contributions, including in-kind

contributions, from any person to any candidate for Statewide

office, his authorized committee or agent shall not exceed two

thousand four hundred dollars ($2,400) for each election.

Furthermore, for each election, no candidate, his authorized

committee or agent shall accept or receive more than two

thousand dollars ($2,000) in aggregate contributions, including

in-kind contributions from any person.

(c)  Aggregate contributions, including in-kind

contributions, from a single political action committee, its

affiliate or agent or candidate's political committee, its

affiliate or agent to any candidate for Statewide office, the

office of Senator or Representative in the General Assembly,

court of common pleas or a county or local office, his

authorized committee or agent shall not exceed:

(1)  one thousand dollars ($1,000) from a political action

committee having ten or fewer donors;

(2)  two thousand dollars ($2,000) from a political action

committee having at least eleven but not more than fifty donors;

(3)  three thousand dollars ($3,000) from a political action

committee having at least fifty-one but not more than one

hundred donors;

(4)  four thousand dollars ($4,000) from a political action

committee having at least one hundred one but not more than one

thousand donors;

(5)  five thousand dollars ($5,000) from a political action

committee having more than one thousand donors. Furthermore, for

each election, no candidate for such office, his authorized

committee or agent shall accept or receive more than the

applicable amount or amounts as specified in this subsection in

aggregate contributions, including in-kind contributions, from a

single political action committee or agent or candidate's

political committee; and

(6)  for the purposes of subsection (c), a donor is a single

person or single committee regardless of the number of

contributions made by that person or committee during the

election cycle.

(d)  Aggregate contributions, including in-kind

contributions, from all political party committees, affiliates

or agents to any candidate for the office of Senator or

Representative in the General Assembly, court of common pleas or

a county or local office, his authorized committee or agent,

shall not exceed one hundred thousand dollars ($100,000) per

election.

(e)  Aggregate contributions, including in-kind

contributions, from all political party committees, affiliates

or agents to any candidate for Statewide office, his authorized

committee or agent, or any political action committee, its

affiliate or agent or political party committee, its affiliate

or agent, or any other political committee, its affiliate or

agent, shall not exceed two hundred fifty thousand dollars

($250,000) per election.

(f)  Aggregate contributions, including in-kind

contributions, from any individual person or a single political

action committee, its affiliate or agent or any single

candidate's political committee, its affiliate or agent to a

single political action committee, its affiliate or agent shall

not exceed five thousand dollars ($5,000) during any calendar

year. Furthermore, for each election, no political action

committee, its affiliate or agent shall accept or receive more

than five thousand dollars ($5,000) in aggregate contributions,

including in-kind contributions, from any individual person or a

single political action committee, its affiliate or agent during

any calendar year.

(g)  Aggregate contributions from any person, a single

candidate's political committee, its affiliate or agent or a

single political action committee, its affiliate or agent or any

other political committee to a single political party committee

shall not exceed ten thousand dollars ($10,000) in a calendar

year. Furthermore, no single political party committee shall

accept or receive more than ten thousand dollars ($10,000) in

aggregate contributions from any single candidate's political

committee or agent or a single political action committee, its

affiliate or agent or any political committee.

(h)  No person shall make contributions to candidates,

political committees and party committees that have a combined

aggregate value that exceeds twenty-five thousand dollars

($25,000) in any calendar year.

(i)  A gift, subscription, loan, advance or deposit of money

or anything of value to a candidate shall be considered a

contribution both by the original source of the contribution and

by any intermediary or conduit if the intermediary or conduit:

(1)  exercises any direction over the making of the

contribution; or

(2)  solicits the contribution or arranges for the

contribution made and directly or indirectly makes the candidate

aware of such intermediary or conduit's role in soliciting or

arranging the contribution for the candidate.

(j)  For purposes of subsection (i), a contribution shall not

be considered to be a contribution by an intermediary or conduit

to the candidate if:

(1)  the intermediary or conduit has been retained by the

candidate's committee for the purpose of fundraising and is

reimbursed for expenses incurred in soliciting contributions;

(2)  in the case of an individual, the candidate has

expressly authorized the intermediary or conduit to engage in

fundraising, or the individual occupies a position within the

candidate's campaign organization and is authorized by the

organization to engage in fundraising; or

(3)  in the case of a political committee, the intermediary

or conduit is the authorized committee of the candidate.

(k)  (1)  Neither candidates nor their committees shall

accept a campaign contribution from an out-of-State political

action committee.

(2)  Neither candidates nor their committees shall accept a

campaign contribution from an individual whose home state has

less restrictive disclosure laws than this Commonwealth. The

Secretary of the Commonwealth shall list and certify those

states that have less restrictive disclosure laws than this

Commonwealth. The list shall be compiled and updated annually,

and published in the Pennsylvania Bulletin no later than January

1 of each year, beginning in 2010.

(l)  The provisions of this section are applicable to any

contribution made for the purpose of influencing any election to

all public offices except Federal offices.

(m)  For purposes of this section, any contribution made to a

candidate in a year other than the calendar year in which the

election is held with respect to which such contribution is

made, is considered to be made during the calendar year in which

such election is held.

Section 4.  Section 1632(a) of the act, amended or added

October 4, 1978 (P.L.893, No.171) and July 11, 1980 (P.L.591,

No.127) is amended to read:

Section 1632.  Late Filing Fee; Certificate of Filing.--

(a)  A late filing fee for each report or statement of

expenditures and contributions which is not filed within the

prescribed period shall be imposed as follows. Such fee shall be

[ten dollars ($10)] twenty dollars ($20) for each day or part of

a day excluding Saturdays, Sundays and holidays that a report is

overdue. [An additional fee of ten dollars ($10) is due for each

of the first six (6) days that a report is overdue. The maximum

fee payable with respect to a single report [is two hundred

fifty dollars ($250).] A supervisor shall receive an overdue

report or statement even if any late filing fee due has not been

paid but the report or statement shall not be considered filed

until all fees have been paid upon the receipt by the supervisor

of an overdue report. No further late filing fees shall be

incurred once the report or statement is filed notwithstanding

the fact that the report or statement is not considered filed.

The late filing fee is the personal liability of the candidate

or treasurer of a political committee and cannot be paid from

contributions to the candidate or committee, nor may such fee be

considered an expenditure. A report or statement of expenditures

and contributions shall be deemed to have been filed within the

prescribed time if the letter transmitting the report or

statement which is received by the supervisor is transmitted by

first class mail and is postmarked by the United States Postal

Service on the day prior to the final day on which the report or

statement is to be received: Provided, That this sentence shall

not be applicable to the reporting requirements contained in

section 1628.

* * *

Section 5.  Section 1633(a) of the act, amended November 26,

1978 (P.L.1313, No.318), is amended to read:

Section 1633.  Contributions or Expenditures by National

Banks, Corporations or Unincorporated Associations.--

(a)  It is unlawful for any National or State bank,

partnership or any corporation, incorporated under the laws of

this or any other state or any foreign country or any

unincorporated association, except those corporations formed

primarily for political purposes or as a political committee, to

make a contribution or expenditure in connection with the

election of any candidate or for any political purpose whatever

except in connection with any question to be voted on by the

electors of this Commonwealth. Furthermore, it shall be unlawful

for any candidate, political committee, or other person to

knowingly accept or receive any contribution prohibited by this

section, or for any officer or any director of any corporation,

bank, or any unincorporated association to consent to any

contribution or expenditure by the corporation, bank or

unincorporated association, as the case may be, prohibited by

this section.

* * *

Section 6.  Section 1641(a) of the act, amended July 12, 1980

(P.L.649, No.134) is amended and the section is amended by

adding a subsection to read:

Section 1641.  Reports by Business Entities; Publication by

Secretary of the Commonwealth.--(a)  Any business entity

including but not limited to a corporation, company,

association, partnership or sole proprietorship, which has been

awarded [non-bid] contracts or contracts over fifty thousand

dollars ($50,000) from the Commonwealth or its political

subdivisions during the preceding calendar year, or any business

entity or person applying for or receiving a permit to operate a

landfill from the Department of Environmental Protection shall

report by February 15 of each year to the Secretary of the

Commonwealth a list including the amount of the contract,

description of the service provided and location and an itemized

list of all political contributions known to the business entity

by virtue of the knowledge possessed by every officer, director,

associate, partner, limited partner or individual owner that has

been made by:

(1)  any officer, director, associate, partner, limited

partner, individual owner or members of their immediate family

when the contributions exceed an aggregate of one thousand

dollars ($1,000) by any individual during the preceding year; or

(2)  any employe or members of his immediate family whose

political [contribution] contributions exceeded one thousand

dollars ($1,000) during the preceding year.

For the purposes of this subsection, "immediate family" means a

person's spouse and any unemancipated child.

* * *

(c)  The Department of General Services shall provide a list

of all corporations, companies, associations, partnerships or

sole proprietorships receiving contracts and contracts in excess

of fifty thousand dollars ($50,000) from the Commonwealth and

the Department of Environmental Protection shall provide a list

of any person or business entity applying for or receiving a

landfill permit to the State board of elections not later than

January 31 of each year for the preceding calendar year.

Section 7.  The dollar figures contained in section 1627.1 of

the act shall be adjusted annually at a rate equal to the amount

contained in 11 CFR § 110. The calculation and resulting new

figures shall be published for the dollar figures contained in

11 CFR § 110 in March in the Pennsylvania Bulletin.

Section 8.  The provisions of this act are severable. If any

provision of this act or its application to any person or

circumstance is held invalid, the invalidity shall not affect

other provisions or applications of this act which can be given

effect without the invalid provision or application.

Section 9.  This act shall take effect in 120 days.