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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY COSTA, FARNESE, FONTANA, KITCHEN, BLAKE, KASUNIC, BOSCOLA, SOLOBAY, BRUBAKER, BREWSTER, TARTAGLIONE, BROWNE, HUGHES, SCHWANK AND LEACH, SEPTEMBER 28, 2011 |
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| REFERRED TO STATE GOVERNMENT, SEPTEMBER 28, 2011 |
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| AN ACT |
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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," in primary and election expenses, further |
12 | providing for definitions, for organization of political |
13 | committees, for registration and for reporting; in primary |
14 | and election expenses, providing for limitations on |
15 | contributions; in primary and election expenses, further |
16 | providing for late filing fees and certificates of filing, |
17 | for contributions or expenditures by national banks, |
18 | corporations or unincorporated associations and for reports |
19 | by business entities and publication; in primary and election |
20 | expenses, providing for independent expenditures; and |
21 | providing for corporate political accountability. |
22 | The General Assembly finds and declares as follows: |
23 | The Commonwealth has a compelling governmental interest to |
24 | protect the integrity of the government from actual corruption |
25 | or the appearance of corruption. The General Assembly recognizes |
26 | that when people, associations or other entities provide |
27 | unlimited monetary support for elected government officials or |
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1 | candidates who are seeking governmental offices, there arises |
2 | the appearance of corruption. The appearance of corruption and |
3 | actual corruption can be prevented by regulating the |
4 | contributions that can be made to elected governmental officials |
5 | and candidates who are seeking governmental offices. |
6 | The General Assembly of the Commonwealth of Pennsylvania |
7 | hereby enacts as follows: |
8 | Section 1. Section 1621(d) of the act of June 3, 1937 |
9 | (P.L.1333, No.320), known as the Pennsylvania Election Code, |
10 | added October 4, 1978 (P.L.893, No.171), is amended and the |
11 | section is amended by adding subsections to read: |
12 | Section 1621. Definitions.--As used in this article, the |
13 | following words have the following meanings: |
14 | * * * |
15 | (d) The word "expenditure" shall mean any of the following: |
16 | (1) The payment, distribution, loan or advancement of money |
17 | or any valuable thing by a candidate, candidate committee, |
18 | political committee, political action committee, political party |
19 | committee or other person for the purpose of influencing the |
20 | outcome of a nomination or an election[;]: Provided, however, |
21 | That such payment, distribution, loan or advancement of money or |
22 | any valuable thing shall be made only for expenses directly and |
23 | exclusively incurred for the campaign in which the candidate is |
24 | running in the contemporaneous election cycle and that no |
25 | expenditure of funds from campaign accounts shall be used for |
26 | any personal purpose. |
27 | (2) The payment, distribution, loan, advance or transfer of |
28 | money or other valuable thing between or among political |
29 | committees[;]. |
30 | (3) The providing of a service or other valuable thing for |
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1 | the purpose of influencing the outcome of a nomination or |
2 | election of any person to any public office to be voted for in |
3 | this Commonwealth[; or]. |
4 | (4) The payment or providing of money or other valuable |
5 | thing by any person other than a candidate or political |
6 | committee, to compensate any person for services rendered to a |
7 | candidate or political committee. |
8 | * * * |
9 | (n) The words "affiliate" or "affiliated committee" shall |
10 | include: |
11 | (1) Any committee established or authorized by a candidate |
12 | as part of his or her campaign for a specific campaign for a |
13 | designated office. |
14 | (2) Any committee established, financed, maintained or |
15 | controlled by the same corporation, labor organization, |
16 | membership association, not-for-profit organization or trade or |
17 | professional association, person or group of persons, including |
18 | any parent, subsidiary, branch, division, department or local |
19 | unit thereof. Local units may include, in appropriate cases, a |
20 | franchisee, licensee or regional association. |
21 | (o) The words "in-kind contribution" shall mean a |
22 | contribution of goods, services, property or any valuable thing |
23 | offered free or at less than the fair market value for such |
24 | goods, property or services, but shall not include any legal or |
25 | accounting services rendered to or on behalf of any political |
26 | committee of a political party, an authorized committee of a |
27 | candidate or any other political committee, if such services are |
28 | solely for the purpose of ensuring compliance with this article. |
29 | Such legal or accounting services, however, shall be reported |
30 | pursuant to section 1631. |
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1 | (p) The words "personal purpose" mean a purpose that, by its |
2 | nature, confers a personal benefit, including expenditures such |
3 | as a home mortgage, home rent, utility payment, clothing |
4 | purchase, noncampaign automobile expense, country club |
5 | membership, vacation or a trip of a noncampaign nature, |
6 | household food items, tuition payments, admission to a sporting |
7 | event, concert, theater or other form of entertainment and other |
8 | such expenditures not specifically and directly necessary for |
9 | the conduct of the campaign. |
10 | (q) The words "clearly identified" are satisfied by: |
11 | (1) the name of the candidate appears; |
12 | (2) a photograph, drawing or other image of the candidate |
13 | appears; or |
14 | (3) the identity of the candidate or ballot question is |
15 | apparent by unambiguous reference. |
16 | (r) The word "person" shall include any corporation, |
17 | partnership, limited liability company, business trust, other |
18 | association, government entity, other than the Commonwealth, |
19 | estate, trust, foundation or natural person. |
20 | Section 1.1. Section 1622 of the act, amended or added |
21 | October 4, 1978 (P.L.893, No.171) and July 11, 1980 (P.L.591, |
22 | No.127), is amended to read: |
23 | Section 1622. Organization of Political Committees; |
24 | Treasurer and Assistant Treasurer; Records of Candidate and |
25 | Committees.-- |
26 | (a) Every political committee shall have a treasurer and a |
27 | chairman. No contribution shall be received nor shall any |
28 | expenditure be made when there is a vacancy in either one of |
29 | these offices. All money received and disbursed by a political |
30 | committee must be done through the treasurer of the committee. |
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1 | (b) Every candidate who authorizes a committee [or |
2 | committees,] to receive and disburse funds on behalf of this |
3 | candidacy, shall name a sole treasurer[, irrespective of the |
4 | number of committees so authorized,] to receive and disburse all |
5 | funds [for] of said [committees. Nothing herein shall be |
6 | construed to prohibit a candidate from receiving or expending |
7 | moneys on his behalf or a treasurer of a political party |
8 | committee or a committee authorized to receive and distribute |
9 | funds on behalf of more than one (1) candidate from receiving or |
10 | expending moneys on behalf of said candidates, notwithstanding |
11 | the appointment of a sole treasurer. A sole treasurer may |
12 | delegate authority, in writing, to any number of assistant |
13 | treasurers to receive and disburse moneys collected on behalf of |
14 | a candidate for election. Nothing in this section shall prohibit |
15 | authorized individuals from selling tickets or soliciting funds |
16 | when funds are deposited in the campaign account of the |
17 | candidate] committee. |
18 | (c) Each candidate and committee shall keep records of the |
19 | names and addresses of each person from whom a contribution of |
20 | over ten dollars ($10) has been received and a record of all |
21 | other information required to be reported pursuant to this act. |
22 | All such records shall be retained by the candidate or treasurer |
23 | for a period of three (3) years after such information is |
24 | reported as required by this act. |
25 | (d) Any person receiving any contribution on behalf of a |
26 | political committee or candidate shall turn such contributions |
27 | over to the treasurer of that committee or the candidate within |
28 | ten (10) days of its receipt. |
29 | Section 1.2. Section 1624 of the act, added October 4, 1978 |
30 | (P.L.893, No.171), is amended to read: |
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1 | Section 1624. Registration.-- |
2 | (a) Any political committee which receives contributions in |
3 | an aggregate amount of two hundred fifty dollars ($250) or more |
4 | shall file a registration statement, designed by the Secretary |
5 | of the Commonwealth, with the appropriate supervisor within |
6 | twenty (20) days after the date on which it receives such |
7 | amount. Each committee in existence shall have sixty (60) days |
8 | from the effective date of this amendatory act to comply with |
9 | the requirements of this section. |
10 | (b) Each registration statement shall contain the following |
11 | information: |
12 | (1) The name, addresses and phone numbers of the political |
13 | committee. |
14 | (2) The name, address and phone number of the committee's |
15 | treasurer. |
16 | (3) The name, address and phone number of the committee's |
17 | chairman. |
18 | (4) The names, addresses and relationships of other |
19 | affiliated or connected organizations. |
20 | (5) The candidates, if any, and their names and addresses. |
21 | (6) The ballot question, if any, which the committee intends |
22 | to support or oppose. |
23 | (7) The banks, safety deposit boxes or other repositories |
24 | and their addresses used by the committee. |
25 | (8) The proposed period of operation of the committee. |
26 | (9) A political committee which is established, financed, |
27 | maintained or controlled by a sponsoring organization such as a |
28 | corporation, labor organization, membership association, not- |
29 | for-profit organization or trade or professional association |
30 | shall include in its registered name the full name of its |
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1 | sponsoring organization. |
2 | (c) The committee shall inform the appropriate supervisor of |
3 | any changes in the information contained in subsection (b) |
4 | within thirty (30) days of that change. |
5 | (d) No political committee which receives an aggregate |
6 | amount of contributions of two hundred fifty dollars ($250) or |
7 | more may make a contribution to any candidate or political |
8 | committee unless it has registered with the appropriate |
9 | supervisor. |
10 | Section 2. Section 1626(a), (b), (d) and (g) of the act, |
11 | amended or added October 4, 1978 (P.L.893, No.171) and July 11, |
12 | 1980 (P.L.600, No.128), are amended and the section is amended |
13 | by adding a subsection to read: |
14 | Section 1626. Reporting by Candidate and Political |
15 | Committees and other Persons.-- |
16 | (a) Each treasurer of a political committee and each |
17 | candidate for election to public office shall file with the |
18 | appropriate supervisor reports of receipts and expenditures on |
19 | forms, designed by the Secretary of the Commonwealth, if the |
20 | amount received or expended or liabilities incurred shall exceed |
21 | the sum of two hundred fifty dollars ($250). Should such an |
22 | amount not exceed two hundred fifty dollars ($250), then the |
23 | candidate or, in the case of a political committee, the |
24 | treasurer of the committee shall file a sworn statement to that |
25 | effect with the appropriate supervisor rather than the report |
26 | required by this section[.]: Provided, however, That if the |
27 | amount received or expended by a candidate does not exceed two |
28 | hundred fifty dollars ($250) he or she may comply with this |
29 | section by signing an affidavit to that effect on his/her |
30 | political committee's report or statement. |
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1 | (b) Each report shall include the following information: |
2 | (1) The full name, mailing address, specific occupation and |
3 | specific name of the employer, if any, or the principal place of |
4 | business, if self-employed, of each person who has made one or |
5 | more contributions to or for such committee or candidate within |
6 | the reporting period in an aggregate amount or value in excess |
7 | of [two hundred fifty dollars ($250)] one hundred dollars |
8 | ($100), together with the amount and date of such contributions. |
9 | The accuracy of the information furnished to the candidate or |
10 | committee shall be the responsibility of the contributor. |
11 | (2) The full name and mailing address of each person [who] |
12 | and political committee that has made one or more contributions |
13 | to or for such committee or candidate within the reporting |
14 | period in an aggregate amount or value in excess of fifty |
15 | dollars ($50), together with the amount and date of such |
16 | contributions. The accuracy of the information furnished by the |
17 | contributor shall be the responsibility of the contributor. |
18 | (3) The total sum of individual contributions made to or for |
19 | such committee or candidate during the reporting period and not |
20 | reported under clauses (1) and (2). |
21 | (4) Each and every expenditure, the date made, the full name |
22 | and address of the person to whom made and the purpose for which |
23 | such expenditure was made. In the event the creditor is a credit |
24 | card company or like instrumentality that is an intermediary for |
25 | collecting payments due, it shall not be sufficient to list the |
26 | name of the collecting organization. The report shall identify |
27 | the credit card company and also the specific entities and |
28 | payments being paid through the credit card company or like |
29 | entity. In the event the payment is being made by a committee to |
30 | a creditor for expenses on behalf of one or more candidates, the |
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1 | amounts of payments and purposes of the payments shall be broken |
2 | down to identify each candidate's share of the incurred |
3 | expenses. |
4 | (5) Any unpaid debts and liabilities, with the nature and |
5 | amount of each, the date incurred and the full name and address |
6 | of the person owed. |
7 | (6) The account shall include any unexpended balance of |
8 | contributions or other receipts appearing from the last account |
9 | filed. |
10 | (7) Identification of political committees: |
11 | (i) If the contributor is a political committee, the |
12 | official registration number of the committee must be included |
13 | on the contribution check or in the case of an electronic |
14 | transfer within the documentation sent to the candidate |
15 | providing notice to the electronic transfer of funds. |
16 | (ii) The official registration number of the committee shall |
17 | be included on the disclosure report filed by the committee. |
18 | (iii) The official committee registration number shall be |
19 | included on each entry for that committee on a candidate's |
20 | disclosure report. |
21 | * * * |
22 | (d) Pre-election reports by candidates for offices to be |
23 | voted for by the electors of the State at large, candidates for |
24 | the office of Senator in the General Assembly, candidates for |
25 | the office of Representative in the General Assembly and all |
26 | political committees, which have expended money for the purpose |
27 | of influencing the election of such [candidate] candidates, |
28 | shall be filed not later than the sixth Tuesday before and the |
29 | second Friday before an election, provided that the initial pre- |
30 | election report shall be complete as of fifty (50) days prior to |
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1 | the election and the subsequent pre-election report shall be |
2 | complete as of fifteen (15) days prior to the election. Pre- |
3 | election reports by all other candidates and political |
4 | committees which have received contributions or made |
5 | expenditures for the purpose of influencing an election shall be |
6 | filed not later than the second Friday before an election, |
7 | provided that such report be complete as of fifteen (15) days |
8 | prior to the election. |
9 | (d.1) During nonelection years in which subsection (d) is |
10 | not operative, an elected official or announced candidate for |
11 | any elective office shall file quarterly reports if he or she |
12 | receives more than two hundred fifty dollars ($250) during the |
13 | respective calendar quarter. Reports shall be due thirty days |
14 | after the end of each calendar quarter and shall be complete |
15 | through the final day of the calendar quarter the report covers. |
16 | * * * |
17 | (g) [Every] Except as provided under section 1644, every |
18 | person, other than a political committee or candidate, who makes |
19 | independent expenditures expressly advocating the election or |
20 | defeat of a clearly identified candidate, or question appearing |
21 | on the ballot, other than by contribution to a political |
22 | committee or candidate, in an aggregate amount in excess of [one |
23 | hundred dollars ($100)] one thousand dollars ($1,000) during a |
24 | calendar year shall file with the appropriate supervisor, on a |
25 | form prepared by the Secretary of the Commonwealth, a report |
26 | which shall include the same information required of a candidate |
27 | or political committee receiving such a contribution and, |
28 | additionally, the name of the candidate or question supported or |
29 | opposed. Reports required by this subsection shall be filed on |
30 | dates on which reports by political committees making |
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1 | expenditures are required to report under this section. |
2 | * * * |
3 | Section 3. The act is amended by adding a section to read: |
4 | Section 1627.1. Limitations on Certain Contributions.-- |
5 | (a) Aggregate contributions, including in-kind |
6 | contributions, from any individual to any candidate for the |
7 | office of Senator or Representative in the General Assembly, |
8 | court of common pleas or a county or local office, or to the |
9 | candidate's committee or agent, may not exceed five hundred |
10 | dollars ($500) for each election. Furthermore, for each |
11 | election, a candidate and the candidate's committee or agent may |
12 | not accept or receive more than five hundred dollars ($500) in |
13 | aggregate contributions, including in-kind contributions from |
14 | any individual for each election. |
15 | (b) Aggregate contributions, including in-kind |
16 | contributions, from any individual to any candidate for |
17 | Statewide office, his authorized committee or agent may not |
18 | exceed two thousand five hundred dollars ($2,500) for each |
19 | election. Furthermore, for each election, no candidate, his |
20 | authorized committee or agent may accept or receive more than |
21 | two thousand five hundred dollars ($2,500) in aggregate |
22 | contributions, including in-kind contributions from any |
23 | individual for each election. |
24 | (c) For each election aggregate contributions, including in- |
25 | kind contributions, from a single political action committee, |
26 | its affiliate or agent or candidate's political committee, its |
27 | affiliate or agent to any candidate for Statewide office, the |
28 | office of Senator or Representative in the General Assembly, |
29 | court of common pleas or a county or local office, his |
30 | authorized committee or agent may not exceed five thousand |
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1 | dollars ($5,000). For each election, no candidate for such |
2 | office, nor the candidate's committee or agent may accept or |
3 | receive more than the applicable amount or amounts as specified |
4 | in this subsection in aggregate contributions, including in-kind |
5 | contributions, from a single political action committee or agent |
6 | or candidate's political committee. A donor is an individual or |
7 | a single committee regardless of the number of contributions |
8 | made by that individual or committee during the election cycle. |
9 | (d) Contributions from political party committees to a |
10 | political action committee, other party committee or other |
11 | committee may not exceed five thousand dollars ($5,000) for each |
12 | election. |
13 | (e) A candidate for the office of Senator or Representative |
14 | in the General Assembly, judge of a court of common pleas or a |
15 | county or local office, or the candidate's committee or agent |
16 | may not accept in excess of one hundred thousand dollars |
17 | ($100,000) in aggregate contributions, including in-kind |
18 | contributions from all political party committees, affiliates or |
19 | agents. Such contributions, in the aggregate, received by a |
20 | candidate, may not exceed the aggregate contributions made by |
21 | individuals per election. |
22 | (f) Except for a candidate for the office of Governor, a |
23 | candidate for Statewide office, his authorized committee or |
24 | agent may not accept in excess of two hundred fifty thousand |
25 | dollars ($250,000) in aggregate contributions, including in-kind |
26 | contributions from all political party committees, affiliates or |
27 | agents. A candidate for Governor, his authorized committee or |
28 | agent may not accept in excess of one million dollars |
29 | ($1,000,000) in aggregate contributions, including in-kind |
30 | contributions from all political party committees, affiliates or |
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1 | agents. Furthermore, such contributions in aggregate received by |
2 | a candidate may not exceed the aggregate contributions made by |
3 | individuals per election. |
4 | (g) Aggregate contributions, including in-kind |
5 | contributions, from any person or a single political action |
6 | committee, its affiliate or agent or any single candidate's |
7 | political committee, its affiliate or agent to a single |
8 | political action committee, its affiliate or agent may not |
9 | exceed five thousand dollars ($5,000) during any calendar year. |
10 | Furthermore, for each election, no political action committee, |
11 | its affiliate or agent may accept or receive more than five |
12 | thousand dollars ($5,000) in aggregate contributions, including |
13 | in-kind contributions, from any individual person or a single |
14 | political action committee, its affiliate or agent during any |
15 | calendar year. |
16 | (h) Aggregate contributions from any individual, person or a |
17 | single candidate's political committee, its affiliate or agent |
18 | or a single political action committee, its affiliate or agent |
19 | or any other political committee to a single political party |
20 | committee may not exceed ten thousand dollars ($10,000) in a |
21 | calendar year. Furthermore, no single political party committee |
22 | may accept or receive more than ten thousand dollars ($10,000) |
23 | in aggregate contributions from any individual, person, single |
24 | candidate's political committee or agent or a single political |
25 | action committee, its affiliate or agent, any political |
26 | committee or other committee in a calendar year. |
27 | (i) The following shall apply to annual aggregate limits: |
28 | (1) No individual may make contributions to candidates, |
29 | political committees or other committees that have a combined |
30 | aggregate amount or value that exceeds twenty-five thousand |
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1 | dollars ($25,000) in a calendar year. |
2 | (2) No political action committee may make contributions to |
3 | candidates, political committees and party committees in an |
4 | aggregate amount or value that exceeds one hundred thousand |
5 | dollars ($100,000) in any calendar year. |
6 | (j) A gift, subscription, loan, advance or deposit of money |
7 | or anything of value to a candidate shall be considered a |
8 | contribution both by the original source of the contribution and |
9 | by any intermediary or conduit if the intermediary or conduit: |
10 | (1) exercises any direction over the making of the |
11 | contribution; or |
12 | (2) solicits the contribution or arranges for the |
13 | contribution to be made and directly or indirectly makes the |
14 | candidate aware of such intermediary or conduit's role in |
15 | soliciting or arranging the contribution for the candidate. |
16 | (k) For purposes of subsection (j), a contribution shall not |
17 | be considered to be a contribution by an intermediary or conduit |
18 | to the candidate if any of the following situations occurs: |
19 | (1) The intermediary or conduit has been retained by the |
20 | candidate's committee for the purpose of fundraising and is |
21 | reimbursed for expenses incurred in soliciting contributions. |
22 | (2) In the case of an individual, the candidate has |
23 | expressly authorized the intermediary or conduit to engage in |
24 | fundraising, or the individual occupies a position within the |
25 | candidate's campaign organization and is authorized by the |
26 | organization to engage in fundraising. |
27 | (3) In the case of a political committee, the intermediary |
28 | or conduit is the authorized committee of the candidate. |
29 | (l) The following shall apply to out-of-State contributions: |
30 | (1) No candidate, candidate committee, party committee, |
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1 | political action committee or political committee may accept a |
2 | campaign contribution from an out-of-State political action |
3 | committee if the political action committee's home state has |
4 | less restrictive disclosure laws than this Commonwealth, except |
5 | as provided under paragraph (2). |
6 | (2) A candidate, candidate committee, party committee, |
7 | political action committee or political committee may accept a |
8 | campaign contribution from an out-of-State political action |
9 | committee if that political action committee is registered in |
10 | this Commonwealth with the Department of State and, by such |
11 | registration, has affirmed that the contributor will comply with |
12 | the contribution, expenditure and reporting requirements of this |
13 | act, as well as the regulations relating to contributions, |
14 | expenditures and reporting promulgated under this act by the |
15 | Department of State and the State Ethics Commission. |
16 | (3) The Secretary of the Commonwealth shall list and certify |
17 | those states that have less restrictive disclosure laws than |
18 | this Commonwealth. The list shall be compiled and updated |
19 | annually and published in the Pennsylvania Bulletin not later |
20 | than January 1, 2012, and each January 1 thereafter. The list |
21 | should be made available on the Department of State Internet |
22 | website and provided in hard copy in campaign committee packets |
23 | prepared by the department. |
24 | (m) The provisions of this section are applicable to any |
25 | contribution made for the purpose of influencing an election to |
26 | any public office in this Commonwealth except Federal offices. |
27 | (n) For purposes of this section, any contribution made to a |
28 | candidate in a year other than the calendar year in which the |
29 | election is held with respect to which such contribution is |
30 | made, is considered to be made during the calendar year in which |
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1 | the election is held. |
2 | (o) For purposes of this section, contribution limits shall |
3 | apply to each election separately, whether a primary, special, |
4 | municipal or general election, unless an annual limit or other |
5 | limit is specified. |
6 | (p) No person who has a fiduciary contract for services with |
7 | the General Assembly may engage in campaign finance activity for |
8 | candidates of the General Assembly, including, but not limited |
9 | to, making of contributions, fund raising activities, or |
10 | involvement in political action committees or candidate |
11 | political committees. |
12 | (q) Nothing in this section shall prohibit a municipality, |
13 | including a city of the first class, from instituting lower |
14 | limitations on contributions to candidates for elected offices |
15 | under the municipality's jurisdiction. |
16 | (r) A violation of the contribution limits set forth in this |
17 | section shall subject the violator to a fine equal to three |
18 | times the amount of money that exceeds the limits. This penalty |
19 | applies to both the person making the contribution and the |
20 | person receiving it. |
21 | Section 4. Section 1632(a) of the act, amended July 11, 1980 |
22 | (P.L.591, No.127), is amended to read: |
23 | Section 1632. Late Filing Fee; Certificate of Filing.-- |
24 | (a) A late filing fee for each report or statement of |
25 | expenditures and contributions which is not filed within the |
26 | prescribed period shall be imposed as follows. Such fee shall be |
27 | [ten dollars ($10)] twenty dollars ($20) for each day or part of |
28 | a day excluding Saturdays, Sundays and holidays that a report is |
29 | overdue. An additional fee of ten dollars ($10) is due for each |
30 | of the first six (6) days that a report is overdue. [The maximum |
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1 | fee payable with respect to a single report is two hundred fifty |
2 | dollars ($250).] A supervisor shall receive an overdue report or |
3 | statement even if any late filing fee due has not been paid but |
4 | the report or statement shall not be considered filed until all |
5 | fees have been paid upon the receipt by the supervisor of an |
6 | overdue report. No further late filing fees shall be incurred |
7 | once the report or statement is filed notwithstanding the fact |
8 | that the report or statement is not considered filed. The late |
9 | filing fee is the personal liability of the candidate or |
10 | treasurer of a political committee and cannot be paid from |
11 | contributions to the candidate or committee, nor may such fee be |
12 | considered an expenditure. A report or statement of expenditures |
13 | and contributions shall be deemed to have been filed within the |
14 | prescribed time if the letter transmitting the report or |
15 | statement which is received by the supervisor is transmitted by |
16 | first class mail and is postmarked by the United States Postal |
17 | Service on the day prior to the final day on which the report or |
18 | statement is to be received: Provided, That this sentence shall |
19 | not be applicable to the reporting requirements contained in |
20 | section 1628. All Department of State filing and disclosure |
21 | requirements for prior campaign activity must have been met in |
22 | order for a candidate to obtain a place on the ballot. |
23 | * * * |
24 | Section 5. Section 1633(a) of the act, amended November 26, |
25 | 1978 (P.L.1313, No.318), is amended to read: |
26 | Section 1633. Contributions or Expenditures by National |
27 | Banks, Corporations or Unincorporated Associations.--(a) It is |
28 | unlawful for any National or State bank, partnership or any |
29 | corporation, incorporated under the laws of this or any other |
30 | state or any foreign country or any unincorporated association, |
|
1 | except those corporations formed primarily for political |
2 | purposes or as a political committee, to make a contribution or |
3 | expenditure in connection with the election of any candidate or |
4 | for any political purpose whatever except in connection with any |
5 | question to be voted on by the electors of this Commonwealth. |
6 | Furthermore, it shall be unlawful for any candidate, political |
7 | committee, or other person to knowingly accept or receive any |
8 | contribution prohibited by this section, or for any officer or |
9 | any director of any corporation, bank, or any unincorporated |
10 | association to consent to any contribution or expenditure by the |
11 | corporation, bank or unincorporated association, as the case may |
12 | be, prohibited by this section. In the event any portion of this |
13 | section regarding bans on contributions or expenditures by |
14 | national banks, corporations, or unincorporated associations is |
15 | nullified by a court decision, then the contribution limits |
16 | established for individuals by this act also shall be applied to |
17 | the entities currently covered by this section. |
18 | * * * |
19 | Section 6. Section 1641(a) of the act, amended July 12, 1980 |
20 | (P.L.649, No.134), is amended and the section is amended by |
21 | adding a subsection to read: |
22 | Section 1641. Reports by Business Entities; Publication by |
23 | Secretary of the Commonwealth.-- |
24 | (a) Any business entity including but not limited to a |
25 | corporation, company, association, partnership or sole |
26 | proprietorship, which has been awarded [non-bid] contracts or |
27 | grants over fifty thousand dollars ($50,000) from the |
28 | Commonwealth or its political subdivisions during the preceding |
29 | [calendar year] two-year period, shall report by February 15 of |
30 | each year to the Secretary of the Commonwealth a list including |
|
1 | the amount of the contract, description of the service provided |
2 | and location and an itemized list of all political contributions |
3 | known to the business entity by virtue of the knowledge |
4 | possessed by every officer, director, associate, partner, |
5 | limited partner or individual owner that has been made by: |
6 | (1) any officer, director, associate, partner, limited |
7 | partner, individual owner or members of their immediate family |
8 | when the contributions exceed an aggregate of one thousand |
9 | dollars ($1,000) by any individual during the preceding year; or |
10 | (2) any employe or members of his immediate family whose |
11 | aggregate political [contribution] contributions exceeded one |
12 | thousand dollars ($1,000) during the preceding year. |
13 | For the purposes of this subsection, "immediate family" means a |
14 | person's spouse and any unemancipated child. |
15 | * * * |
16 | (c) The Department of State, in consultation with the |
17 | Department of General Services, shall publish a list of all |
18 | business entities, corporations, companies, associations, |
19 | partnerships or sole proprietorships receiving grants, contracts |
20 | and contracts in excess of fifty thousand dollars ($50,000) from |
21 | the Commonwealth not later than January 31 of each year for the |
22 | preceding two-year period. The list shall be updated quarterly. |
23 | Section 7. The act is amended by adding sections to read: |
24 | Section 1643. Independent Expenditures. |
25 | (a) A person may make independent expenditures for the |
26 | purposes of advocating the election or defeat of a clearly |
27 | identified candidate or ballot question. |
28 | (b) The following shall apply to expenditures made for a |
29 | written, typed or other printed communication or a web-based, |
30 | written communication which promotes the success or defeat of a |
|
1 | candidate's campaign for nomination or election or the adoption |
2 | or defeat of a ballot question or solicits funds to benefit a |
3 | political committee: |
4 | (1) No person shall make, incur or contract for an |
5 | expenditure with the consent of, in coordination with or in |
6 | consultation with a candidate, candidate committee, political |
7 | committee or candidate's agent. |
8 | (2) No group of two or more individuals acting together that |
9 | receives funds or makes or incurs expenditures not exceeding one |
10 | thousand dollars ($1,000) in the aggregate which have not formed |
11 | a political committee shall make or incur an independent |
12 | expenditure. |
13 | (b.1) Communications under subsection (b) shall contain the |
14 | following language: |
15 | (1) The words "paid for and approved by" and one of the |
16 | following: |
17 | (i) For an individual, the name and address of the |
18 | individual. |
19 | (ii) For a committee other than a party committee, the name |
20 | of the committee and its campaign treasurer. |
21 | (iii) For a party committee, the name of the committee. |
22 | (iv) For a group of two or more individuals that received |
23 | funds or makes or incurs expenditures not exceeding one thousand |
24 | dollars ($1,000) in the aggregate which have not formed a |
25 | political committee, the name of the group and the name and |
26 | address of its agent. |
27 | (2) The words "approved by" and one of the following: |
28 | (i) For an individual, group or political committee other |
29 | than a candidate committee making or incurring an expenditure |
30 | with the consent of, in coordination with or in consultation |
|
1 | with a candidate committee or candidate's agent, the name of the |
2 | candidate. |
3 | (ii) For a candidate committee, the name of the candidate. |
4 | (c) Expenditures: |
5 | (1) The following apply: |
6 | (i) No person shall make or incur an independent expenditure |
7 | for a written, typed or other printed communication or a web- |
8 | based, written communication which promotes the success or |
9 | defeat of a candidate for nomination or election or promotes or |
10 | opposes a political party or solicits funds to benefit a |
11 | political party or committee, unless the communication bears |
12 | upon its face the words "paid for and approved by" and the name |
13 | of the person, the name of its chief executive officer or |
14 | equivalent and its principal business address and the words |
15 | "This message was made independently of a candidate or political |
16 | party." |
17 | (ii) An entity which is a tax-exempt organization under |
18 | section 501 of the Internal Revenue Code of 1986 (Public Law |
19 | 99-514) or an incorporated tax exempt political organization |
20 | organized under section 527 of the Internal Revenue Code of 1986 |
21 | (Public Law 99-514), making or incurring an independent |
22 | expenditure under subparagraph (i), shall also bear upon the |
23 | face of the communication the words "Top Five Contributors" |
24 | followed by a list of the five persons making the largest |
25 | contributions to the organization during the 12-month period |
26 | before the date of the communication. |
27 | (2) Disclosure requirements are as follows: |
28 | (i) In addition to the requirements of paragraph (1), no |
29 | person shall make or incur an independent expenditure for |
30 | television advertising, radio or Internet video advertising or |
|
1 | Internet radio advertising, that promotes the success or defeat |
2 | of a candidate for election or promotes or opposes a political |
3 | party or solicits funds to benefit a political party or |
4 | committee, unless at the end of the advertisment there appears |
5 | or includes simultaneously for a period of no less than four |
6 | seconds a clear identifiable audio, video, photographic or |
7 | similar image of the person's chief executive officer or |
8 | equivalent and a personal audio message, in the following form: |
9 | "I am . . . (name of person's chief executive officer or |
10 | equivalent), . . . (title) of . . . (entity). This message was |
11 | made independently of any candidate, political committee or |
12 | political party, and I approve of its content." |
13 | (ii) A tax exempt organization under section 501 of the |
14 | Internal Revenue Code of 1986 (Public Law 99-514) or an |
15 | incorporated tax exempt political organization organized under |
16 | section 527 of the Internal Revenue Code of 1986 (Public Law |
17 | 99-514), making or incurring an independent expenditure under |
18 | subparagraph (i), shall include on the advertisement an easily |
19 | readable written message in the following form: |
20 | "The Top Five Contributors to the organization for this |
21 | advertisement are" followed by a list of the five persons making |
22 | the largest contributions to the organization during the 12- |
23 | month period before the date of the communication." |
24 | Section 1644. Independent Expenditure Evaluation.-- |
25 | (a) When the Bureau of Elections audits and evaluates an |
26 | expenditure that is included in a report under section ???? to |
27 | determine whether the expenditure is an interdependent |
28 | expenditure, there shall be a rebuttable presumption that the |
29 | following expenditures are not independent expenditures: |
30 | (1) An expenditure made by a person in cooperation, |
|
1 | consultation or in concert with, at the request, suggestion or |
2 | direction of or pursuant to a general or particular |
3 | understanding with a candidate or political committee or other |
4 | agent acting on behalf of a candidate or political committee. |
5 | (2) An expenditure made by a person for the production, |
6 | dissemination, distribution or publication, in whole or in |
7 | substantial part, of a broadcast or a written, graphic or other |
8 | form of political advertising or campaign communications |
9 | prepared by a candidate or political committee or a consultant |
10 | or other agent acting on behalf of a candidate or political |
11 | committee. |
12 | (3) An expenditure made by a person based on information |
13 | about a candidate's or political committee's plans, projects or |
14 | needs, provided by a candidate or political committee or a |
15 | consultant or other agent acting on behalf of a candidate or |
16 | political committee with the intent that the expenditure be |
17 | made. |
18 | (4) An expenditure made by an individual who, in the same |
19 | election cycle, is serving or has served as the campaign |
20 | chairperson, campaign treasurer or deputy treasurer of a |
21 | political committee benefiting from the expenditure, or another |
22 | executive or policymaking position, including as a member, |
23 | employe, fundraiser, consultant or other agent acting on behalf |
24 | of a candidate or political committee. |
25 | (5) An expenditure made by a person whose officer, director, |
26 | member, employe, fundraiser, consultant or other agent who |
27 | serves the person in an executive or policymaking position also |
28 | serves as or has served in the same election cycle as the |
29 | candidate or the campaign chairperson, campaign treasurer or |
30 | deputy treasurer of a candidate or political committee |
|
1 | benefiting from the expenditure, or in another executive or |
2 | policymaking position of the candidate or political committee. |
3 | (6) An expenditure made by a person for: |
4 | (i) fundraising activities with or for a candidate or |
5 | political committee or a consultant or other agent acting on |
6 | behalf of a candidate or political committee; or |
7 | (ii) for the solicitation or receipt of contributions on |
8 | behalf of a candidate or political committee or a consultant or |
9 | other agent acting on behalf of a candidate or political |
10 | committee. |
11 | (7) An expenditure made by a person based on information |
12 | about a candidate's campaign plans, projects or needs, that is |
13 | directly or indirectly provided by a candidate, the candidate's |
14 | committee or a political committee or a consultant or other |
15 | agent acting on behalf of the candidate or political committee |
16 | to the person making the expenditure or the person's agent, with |
17 | an express or tacit understanding that the person is considering |
18 | making the expenditure. |
19 | (8) An expenditure made by a person for a communication that |
20 | clearly identifies a candidate or political committee during an |
21 | election campaign if the person making the expenditure, or the |
22 | person's agent, has informed the candidate who benefits from the |
23 | expenditure that the candidate or political committee or a |
24 | consultant or other agent acting on behalf of the benefiting |
25 | candidate or political committee concerning the communications |
26 | content, or of the intended audience, timing, location or mode |
27 | or frequency of the dissemination. |
28 | (9) An expenditure made by a person or an entity for |
29 | consultant or creative services, including services related to |
30 | communications strategy or design or campaign strategy, to be |
|
1 | used to promote or oppose a candidate's election to office if |
2 | the provision of these services is also providing consultant or |
3 | creative services to the candidate or to an opposing candidate |
4 | in the same election. |
5 | (b) As used in this section, the words "agent acting on |
6 | behalf of a candidate" include: |
7 | (1) an individual or a person paid by a candidate or a |
8 | candidate committee; and |
9 | (2) any consultant, printing firm, media production company, |
10 | Internet website director or webmaster, marketing firm, |
11 | advertising firm, filed organization firm or other company or |
12 | firm retained by a candidate or authorized by a candidate or a |
13 | candidate committee to act on the candidate's behalf. |
14 | Section 8. The act is amended by adding an article to read: |
15 | ARTICLE XVI-A |
16 | CORPORATE POLITICAL ACCOUNTABILITY |
17 | Section 1601-A. Definitions. |
18 | The following words and phrases when used in this article |
19 | shall have the meanings given to them in this section unless the |
20 | context clearly indicates otherwise: |
21 | "Contribution" or "expenditure." Includes any monetary and |
22 | nonmonetary political contributions and expenditures not |
23 | deductible under section 162(e)(1)(B) of the Internal Revenue |
24 | Code of 1986 (Public Law 99-514, 26 U.S.C. § 162(e)(1)(B)), |
25 | including, but not limited to, contributions to or expenditures |
26 | on behalf of political candidates, political parties, political |
27 | committees and other political entities organized and operating |
28 | under section 527 of the Internal Revenue Code of 1986 (26 |
29 | U.S.C. § 527), and any portion of any dues or similar payments |
30 | made to any tax-exempt organization that is used for an |
|
1 | expenditure or contribution if made directly by the corporation |
2 | would not be deductible under section 162(e)(1)(B) of the |
3 | Internal Revenue Code of 1986, any contribution or expenditure, |
4 | as those terms are defined in section 302 of the Federal |
5 | Election Campaign Act of 1971 (Public Law 92-225, 2 U.S.C. § |
6 | 431), as well as any contribution or expenditure defined under |
7 | this act. The term also includes any direct or indirect payment, |
8 | distribution, loan, advance, deposit or gift of money, or any |
9 | services, or anything of value, except a loan of money by a |
10 | national or State bank made in accordance with the applicable |
11 | banking laws and regulations and in the ordinary course of |
12 | business, to any candidate, campaign committee or political |
13 | party or organization, in connection with any election to any |
14 | office. The term does not include: |
15 | (1) Communications by a corporation to its stockholders |
16 | and executive or administrative personnel and their families |
17 | or by a labor organization to its members and their families |
18 | on any subject. |
19 | (2) Nonpartisan registration and get-out-the-vote |
20 | campaigns by a corporation aimed at its stockholders and |
21 | executive or administrative personnel and their families or |
22 | by a labor organization aimed at its members and their |
23 | families. |
24 | (3) The establishment, administration and solicitation |
25 | of contributions to a separate segregated fund to be utilized |
26 | for political purposes by a corporation, labor organization, |
27 | membership organization, cooperative or corporation without |
28 | capital stock. |
29 | As used in this definition, the term "corporation" includes any |
30 | company, trade or professional union, not-for-profit association |
|
1 | and incorporated partnership organized as an incorporated entity |
2 | under the laws of any state within the United States. |
3 | "Department." The Department of State of the Commonwealth. |
4 | "General treasury funds." Those moneys in possession of a |
5 | corporation incorporated under the laws of Pennsylvania in the |
6 | normal course of business, including funds from sales, accounts |
7 | payable, loans, investments, bonds or debt instruments. |
8 | "Issue advocacy campaign." Contributions or expenditures for |
9 | any communication to the general public intended to encourage |
10 | the public to contact a government official regarding pending |
11 | legislation, public policy or a government rule or regulation. |
12 | The term does not include contributions or expenditures for |
13 | registered lobbyists or other persons employed by the |
14 | corporation to lobby directly Federal or State government |
15 | officials. |
16 | "Known at the time of the authorization vote." At the time |
17 | the corporation seeks authorization from shareholders to spend |
18 | corporate funds for political activities: |
19 | (1) the corporation's officers, directors or employees |
20 | have identified a specific political activity for the |
21 | corporation to support or oppose; |
22 | (2) corporate officers, directors or employees have |
23 | taken steps to obligate funds to a political activity; or |
24 | (3) the corporation has a regularly scheduled payment to |
25 | a trade association or other entity to pay for a political |
26 | activity in the next 12 months. |
27 | "Majority of shareholders." Fifty percent plus one of all |
28 | outstanding voting securities. Shareholders not casting votes |
29 | shall not count toward affirmative authorization under this |
30 | section. |
|
1 | "Political activities." Any contributions or expenditures |
2 | made directly or indirectly to, or in support of or opposition |
3 | to, any candidate, political party, committee, electioneering |
4 | communication, ballot measure campaign or an issue advocacy |
5 | campaign. The term does not include activities defined as |
6 | lobbying under any Federal, State or local law. |
7 | "Separate segregated fund." A political action committee |
8 | formed by a corporation for the purpose of making contributions |
9 | to candidates for office or to political parties. A separate |
10 | segregated fund which supports Federal candidates shall have the |
11 | same meaning as that found in section 316 of the Federal |
12 | Election Campaign Act of 1971 (Public Law 92-225, 2 U.S.C. § |
13 | 441b). |
14 | Section 1602-A. Shareholder vote on corporate political |
15 | activities. |
16 | (a) Annual vote.-- |
17 | (1) Any corporation incorporated in this Commonwealth |
18 | that spends in the aggregate $10,000 or more of corporate |
19 | treasury funds on all political activities in this |
20 | Commonwealth must comply with the requirements of this |
21 | section. |
22 | (2) Any proxy or consent or authorization for an annual |
23 | meeting of the shareholders of a corporation incorporated in |
24 | this Commonwealth, or a special meeting in lieu of such |
25 | meeting, where proxies are solicited in respect of any |
26 | security occurring on or after six months following the date |
27 | on which final regulations are published under subsection (d) |
28 | shall provide for a separate resolution subject to |
29 | shareholder vote to approve any spending of $10,000 or more |
30 | by the corporation for any political activity. |
|
1 | (3) Notwithstanding the requirement for an annual |
2 | shareholder vote to authorize any spending of $10,000 or more |
3 | by the corporation for any political activity, a corporation |
4 | may request authorization for spending on political |
5 | activities on a more frequent basis. Any authorization |
6 | request by the corporation that is not made during an annual |
7 | authorization shall be deemed a special authorization. |
8 | (4) If a corporation spends less than an aggregate of |
9 | $10,000 in a 12-month period for political activities, then |
10 | it does not have to seek shareholder authorization for such |
11 | spending. |
12 | (b) Shareholder approval.-- |
13 | (1) When seeking shareholder authorization for |
14 | expenditures for political activities, the corporation shall |
15 | request the authority to spend a maximum dollar amount in the |
16 | next 12 months. |
17 | (2) If known at the time of the authorization vote, the |
18 | company shall articulate whether the corporate treasury funds |
19 | so authorized are intended to benefit or defeat specific |
20 | candidates, ballot measures or issue advocacy campaigns or |
21 | whether it will be paid to specific nonprofits or trade |
22 | associations for political activities. The following apply: |
23 | (i) To be effective, the authorization vote must |
24 | garner support from a majority of shareholders. |
25 | (ii) A vote by the shareholders to approve or |
26 | disapprove any spending of $10,000 or more by a |
27 | corporation for a political activity shall be binding on |
28 | the corporation. |
29 | (iii) Notwithstanding the requirement for an annual |
30 | shareholder vote to authorize any spending of $10,000 or |
|
1 | more by the corporation for any political activity, a |
2 | corporation may request a special authorization for |
3 | additional spending on political activities, provided |
4 | that: |
5 | (A) all spending on political activities of |
6 | $10,000 or more must be authorized by a shareholder |
7 | majority vote; and |
8 | (B) for any special authorization, the company |
9 | shall articulate whether the corporate treasury funds |
10 | so authorized are intended to benefit or defeat |
11 | candidates, ballot measures or issue advocacy |
12 | campaigns or will be paid to specific nonprofits or |
13 | trade associations for political activities at the |
14 | time the special authorization is requested. |
15 | (c) Director liability.--If a corporation makes an |
16 | unauthorized contribution or expenditure for a political |
17 | activity, then the directors at the time that the unauthorized |
18 | contribution or expenditure was incurred are jointly and |
19 | severally liable to repay to the corporation the amount of the |
20 | unauthorized expenditure, with interest at the rate of 8% per |
21 | year. |
22 | (d) Rulemaking.--No later than six months after the |
23 | effective date of this article, the department shall promulgate |
24 | final regulations to implement this section. |
25 | (e) Sole proprietorships excluded.--Notwithstanding any |
26 | other provision of this section, nothing in this section shall |
27 | apply a new duty to the owner of a sole proprietorship. |
28 | Section 1603-A. Notification to shareholders of corporate |
29 | political activities. |
30 | (a) Notification to shareholders.-- |
|
1 | (1) At least quarterly during each fiscal year, a |
2 | corporation incorporated in this Commonwealth that makes |
3 | contributions or expenditures for political activities must |
4 | notify its shareholders and the department in writing of the |
5 | nature of all its political activities, funded by either its |
6 | separate segregated fund or through its general corporate |
7 | treasury, including contributions or expenditures made |
8 | directly or indirectly. |
9 | (2) A report made pursuant to this section shall include |
10 | the following: |
11 | (i) The date of the contributions or expenditures. |
12 | (ii) The amount of the contributions or |
13 | expenditures. |
14 | (iii) The identity of the candidate, political |
15 | party, committee, electioneering communication, ballot |
16 | measure campaign or issue advocacy campaign. |
17 | (iv) If the contributions or expenditures were made |
18 | for or against a candidate, including an electioneering |
19 | communication as defined under Federal law, the office |
20 | sought by the candidate and the political party |
21 | affiliation of the candidate. |
22 | (v) If the contributions or expenditures were made |
23 | for or against a ballot measure, the purpose of the |
24 | measure and whether the contributions or expenditures |
25 | were made in support or opposition to the ballot measure. |
26 | (vi) If the contributions or expenditures were made |
27 | for or against an issue advocacy campaign, the nature of |
28 | the political issue and whether the contributions were |
29 | made in support or opposition to the political issue. |
30 | (vii) All independent expenditures made by a |
|
1 | separate segregated fund affiliated with the corporation. |
2 | (b) Public disclosure.-- |
3 | (1) The quarterly reports of political activities by a |
4 | corporation incorporated in this Commonwealth to shareholders |
5 | shall be public records. |
6 | (2) A copy of the reports filed pursuant to subsection |
7 | (a)(1) shall be: |
8 | (i) submitted to the department; and |
9 | (ii) posted for at least one year on the |
10 | corporation's Internet website, if any. |
11 | Section 1604-A. Public disclosure of corporate political |
12 | activities by the department. |
13 | (a) Department duty.--The quarterly reports of political |
14 | activities by a corporation incorporated in this Commonwealth to |
15 | shareholders shall be made publicly available by the department. |
16 | (b) Electronic form.--A quarterly report required to be |
17 | filed under this section shall be filed in electronic form using |
18 | filing software approved or developed by the department in |
19 | addition to filing in any other form that the department may |
20 | require by regulation and shall be published on the department's |
21 | Internet website. |
22 | (c) Format.--The department shall ensure that, to the |
23 | greatest extent practicable, the quarterly reports on political |
24 | activities are publicly available through the department's |
25 | Internet website in a format that can be searched, sorted and |
26 | downloaded. |
27 | Section 1605-A. Report by Department of the Auditor General. |
28 | (a) Audit.--On an annual basis, the Department of the |
29 | Auditor General shall audit the extent of compliance or |
30 | noncompliance with the requirements of this article by |
|
1 | corporations incorporated in this Commonwealth, their management |
2 | and shareholders, as well as the effectiveness of the department |
3 | in meeting the reporting and disclosure requirements of this |
4 | article. |
5 | (b) Report.--No later than April 1 of each year, the |
6 | Department of the Auditor General shall submit to the Governor a |
7 | report on the review required by subsection (a) for the |
8 | preceding year. |
9 | Section 1606-A. Board approval for all corporate political |
10 | expenditures. |
11 | (a) Approval required.--Notwithstanding any other provision |
12 | of law, no corporation and no trade, business or professional |
13 | association shall make any campaign contribution or expenditure |
14 | unless specifically authorized to do so: |
15 | (1) by the vote of the board of directors of the |
16 | corporation or of the executive committee of the trade, |
17 | business or professional association at a regular or special |
18 | meeting thereof; |
19 | (2) by the president, vice president, secretary or |
20 | treasurer of a corporation whom the board has specifically |
21 | empowered to authorize such contributions or expenditures; or |
22 | (3) for a corporation, by any other person designated by |
23 | resolution of the board of directors of a corporation to |
24 | authorize contributions or expenditures. |
25 | (b) Form of contribution.--No corporation, trade, business |
26 | or professional association shall make any contribution or |
27 | expenditure as defined under Federal or State law, other than an |
28 | in-kind contribution or expenditure, except by check. |
29 | Section 1607-A. Applicability to foreign corporations. |
30 | (a) General rule.--A foreign corporation, other than a |
|
1 | foreign association or foreign nonprofit corporation, but |
2 | including a foreign parent corporation even though it does not |
3 | itself transact intrastate business, is subject to the |
4 | requirements of sections 1602-A, 1603-A, 1604-A and 1605-A, if: |
5 | (1) the average of property, payroll and sales factors, |
6 | as defined in section 401 of the act of March 4, 1971 (P.L.6, |
7 | No.2), known as the Tax Reform Code of 1971, with respect to |
8 | the foreign corporation, is more than 50% during its latest |
9 | full income year; and |
10 | (2) more than one-half of its outstanding voting |
11 | securities are held of record by persons having addresses in |
12 | this Commonwealth appearing on the books of the corporation |
13 | on the record date for the latest meeting of shareholders |
14 | held during its latest full income year or, if no meeting was |
15 | held during that year, on the last day of the latest full |
16 | income year. |
17 | (b) Determination.--The determination of the property, |
18 | payroll and sales factors under subsection (a) with respect to |
19 | any parent corporation shall be made on a consolidated basis, |
20 | including in a unitary computation, after elimination of |
21 | intercompany transactions, the property, payroll and sales of |
22 | the parent and all of its subsidiaries in which it owns directly |
23 | or indirectly more than 50% of the outstanding shares entitled |
24 | to vote for the election of directors, but deducting a |
25 | percentage of the property, payroll and sales of any subsidiary |
26 | equal to the percentage minority ownership, if any, in the |
27 | subsidiary. For the purpose of this section, any securities held |
28 | to the knowledge of the issuer in the names of broker-dealers, |
29 | nominees for broker-dealers, including clearing corporations or |
30 | banks, associations or other entities holding securities in a |
|
1 | nominee name or otherwise on behalf of a beneficial owner, |
2 | collectively "nominee holders," shall not be considered |
3 | outstanding. However, if the foreign corporation requests all |
4 | nominee holders to certify, with respect to all beneficial |
5 | owners for whom securities are held, the number of shares held |
6 | for those beneficial owners having addresses as shown on the |
7 | records of the nominee holder in this Commonwealth and outside |
8 | of this Commonwealth, then all shares so certified shall be |
9 | considered outstanding and held of record by persons having |
10 | addresses either in this Commonwealth or outside of this |
11 | Commonwealth as so certified, provided that the certification so |
12 | provided shall be retained with the record of shareholders and |
13 | made available for inspection and copying. A current list of |
14 | beneficial owners of a foreign corporation's securities provided |
15 | to the corporation by one or more nominee holders or agent |
16 | thereof under the requirements of 17 CFR § 240.14b-1(b)(3) |
17 | (relating to obligation of registered brokers and dealers in |
18 | connection with the prompt forwarding of certain communications |
19 | to beneficial owners) or 240.14b-2(b)(3) (relating to obligation |
20 | of banks, associations and other entities that exercise |
21 | fiduciary powers in connection with the prompt forwarding of |
22 | certain communications to beneficial owners) promulgated under |
23 | the Securities Exchange Act of 1934 (Public Law 48-881, 15 |
24 | U.S.C. § 78a et seq.) shall constitute an acceptable |
25 | certification with respect to beneficial owners for the purposes |
26 | of this subsection. |
27 | (c) Applicability.--This section does not apply to any |
28 | corporation: |
29 | (1) With outstanding securities listed on the New York |
30 | Stock Exchange or the American Stock Exchange. |
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1 | (2) With outstanding securities designated as qualified |
2 | for trading on the Nasdaq National Market of the Nasdaq Stock |
3 | Market, or any successor thereto. |
4 | (3) If all of its voting shares, other than directors' |
5 | qualifying shares, are owned directly or indirectly by a |
6 | corporation or corporations not subject to this section. |
7 | (d) Liability.--Any party who obtains a final determination |
8 | by a court of competent jurisdiction that the corporation failed |
9 | to provide to the party information required to be provided by |
10 | this article or provided the party information of the kind |
11 | required to be provided by this article that is incorrect, then |
12 | the court, in its discretion, shall have the power to include in |
13 | its judgment recovery by the party from the corporation of all |
14 | court costs and reasonable attorney fees incurred in that legal |
15 | proceeding to the extent they relate to obtaining that final |
16 | determination. |
17 | Section 9. The dollar figures contained in section 1627.1 of |
18 | the act shall be adjusted biennially at a rate determined by the |
19 | Federal Election Commission as authorized under 11 CFR § 110. |
20 | The Secretary of the Commonwealth shall certify the calculation |
21 | of the rate as determined by the Federal Election Commission and |
22 | shall publish the new dollar figures in the Pennsylvania |
23 | Bulletin. |
24 | Section 10. The provisions of this act are severable. If any |
25 | provision of this act or its application to any person or |
26 | circumstance is held invalid, the invalidity shall not affect |
27 | other provisions or applications of this act which can be given |
28 | effect without the invalid provision or application. |
29 | Section 11. A comprehensive, fully searchable and user |
30 | friendly computerized database to track full implementation of |
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1 | this act shall be made available to the public by the Department |
2 | of State through its Internet website on or before December 31, |
3 | 2011. |
4 | Section 12. This act shall take effect January 1, 2012. |
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