1Amending the act of June 3, 1937 (P.L.1333, No.320), entitled
2"An act concerning elections, including general, municipal,
3special and primary elections, the nomination of candidates,
4primary and election expenses and election contests; creating
5and defining membership of county boards of elections;
6imposing duties upon the Secretary of the Commonwealth,
7courts, county boards of elections, county commissioners;
8imposing penalties for violation of the act, and codifying,
9revising and consolidating the laws relating thereto; and
10repealing certain acts and parts of acts relating to
11elections," further providing for contributions or
12expenditures by national banks, corporations or
13unincorporated associations; providing limited campaign
14funding of Statewide judicial elections; establishing the
15Pennsylvania Fair Campaign Fund; limiting certain
16contributions; providing for powers and duties of the
17Secretary of the Commonwealth and the Department of State;
18and imposing penalties.

19The General Assembly of the Commonwealth of Pennsylvania
20hereby enacts as follows:

21Section 1.  Section 1633 heading and (a) of the act of June
223, 1937, known as the Pennsylvania Election Code, amended
23November 26, 1978 (P.L.1313, No.318), are amended to read:

24Section 1633.  Contributions or Expenditures by National
25Banks, Corporations, Partnerships, or Unincorporated
26Associations.--(a)  It is unlawful for any National or State

1bank, any partnership or any corporation, incorporated under the
2laws of this or any other state or any foreign country, or any
3unincorporated association, except those corporations formed
4primarily for political purposes or as a political committee, to
5make a contribution or expenditure in connection with the
6election of any candidate or for any political purpose whatever
7except in connection with any question to be voted on by the
8electors of this Commonwealth. Furthermore, it shall be unlawful
9for any candidate, political committee, or other person to
10knowingly accept or receive any contribution prohibited by this
11section, or for any officer or any director of any corporation,
12bank, partnership or any unincorporated association to consent
13to any contribution or expenditure by the corporation, bank, 
14partnership or unincorporated association, as the case may be,
15prohibited by this section.

16Section 2.  The act is amended by adding an article to read:

17ARTICLE XVI-A

18PENNSYLVANIA FAIR CAMPAIGN FUNDING

19Section 1601-A.  Legislative intent.

20This article is intended to protect against corruption or the
21appearance of corruption.

22Section 1602-A.  Definitions.

23The following words and phrases when used in this article
24shall have the meanings given to them in this section unless the
25context clearly indicates otherwise:

26"Department."  The Department of State of the Commonwealth.

27"Fund."  The Pennsylvania Fair Campaign Fund established in
28section 1605-A.

29"Secretary."  The Secretary of the Commonwealth.

30Section 1603-A.  Application of article.

1The provisions of this article shall be applicable to
2candidates for the following State-wide offices:

3(1)  Supreme Court Justice.

4(2)  Superior Court Judge.

5(3)  Commonwealth Court Judge.

6Section 1604-A.  Administration.

7The provisions of this article shall be administered by the
8secretary. The secretary may adopt such rules and regulations as
9may be necessary for the implementation of this article.

10Section 1605-A.  Pennsylvania Fair Campaign Fund established.

11There is hereby established a special restricted receipts
12fund in the State Treasury to be known as the Pennsylvania Fair
13Campaign Fund. Payments shall be made into the fund pursuant to
14section 1606-A, and disbursements shall be made from the fund
15only upon the warrant of the Secretary of the Commonwealth and a
16warrant of the State Treasurer. As much of the moneys in the
17fund as are necessary to make payments to candidates as provided
18in this article are appropriated from the fund to the Department
19of State for the purpose of such payments.

20Section 1606-A.  Allocation of certain tax proceeds to fund.

21(a)  Designation.--Beginning with tax years commencing
22January 1, 2013, and thereafter, each individual subject to the
23tax imposed by Article III of the act of March 4, 1971 (P.L.6,
24No.2), known as the Tax Reform Code of 1971, may designate that
25$3 be added to the taxpayer's personal income tax liability and
26be paid into the fund. In the case of married taxpayers filing a
27joint return, each spouse may designate that $3 be added to that
28spouse's personal income tax liability and be paid into the
29fund. A taxpayer who designates a payment under this section
30shall add the required amount to the payment due the

1Commonwealth or subtract the required amount from the refund due
2the taxpayer, as appropriate. All such designated tax revenues
3shall be paid into the fund. The check-off and instructions
4shall be prominently displayed on the first page of the return
5form. The instructions shall readily indicate that any such
6designations neither increase or decrease an individual's tax
7liability.

8(b)  Attorneys.--An attorney licensed to practice law in this
9Commonwealth shall make a contribution to the fund of up to $50
10when applying for or renewing a license to practice law. The
11license form shall provide a check-off for the attorney to
12designate the donation. The Court Administrator shall deposit
13all contributions into the fund.

14(c)  Additional funds.--In the event that revenues generated
15under subsections (a) and (b) are insufficient to fully fund the
16fund, the General Assembly shall allocate sufficient additional
17moneys from the General Fund to meet the fund's needs.

18Section 1607-A.  Certification of moneys in fund.

19By June 30 of each year, the State Treasurer shall certify to
20the secretary the current balance available in the fund.

21Section 1608-A.  Qualification for Pennsylvania Fair Campaign
22funding.

23(a)  Qualifications.--

24(1)  Any candidate for Statewide judicial office as
25described in section 1603-A may apply for Pennsylvania Fair
26Campaign funding under this article if the candidate meets
27the contributory thresholds established in subsection (b) and
28otherwise conforms to the requirements of this article. No
29candidate shall be obligated to apply for funding under this
30article, and if any candidate elects not to apply, only the

1provisions of this article pertaining to limits on
2contributions, as set forth in section 1614-A(a), shall be
3applicable to such person and that person's candidacy. Any
4candidate electing to receive Pennsylvania Fair Campaign
5funding must declare the candidate's intention to do so and
6specify the State office for which he is a candidate. A
7candidate electing to receive Pennsylvania Fair Campaign
8funding must declare the candidate's intention to do so upon
9forming a political action committee.

10(2)  This declaration shall be filed on a form designed
11and provided by the department and submitted with the
12candidate's submission of the candidates' nominating petition
13to the department. Any and all committees authorized to
14receive contributions or make expenditures for the candidate
15who has so declared must abide by the provisions of this
16article, unless otherwise specified in this article. Any
17candidate who for any reason has the candidate's name
18withdrawn from the ballot for a Statewide judicial election,
19after receipt of Pennsylvania Fair Campaign funds, shall
20return all moneys received to the fund as well as offering
21back qualifying contributions for that Statewide judicial
22office.

23(b)  Qualifying contributions.--

24(1)  In order to qualify for Pennsylvania Fair Campaign
25funding in the general election, a candidate must receive
26subsequent to the date of the primary election but prior to
27the date of the general election qualifying contributions of
28the following amounts:

29  30  20130HB0175PN0183 -5-     1Office	Qualifying Contributions Required
2(i)  Supreme Court Justices	$45,000
3(ii)  Superior Court Judges	$45,000
4(iii)  Commonwealth Court Judges	$45,000

5(2)  A candidate must receive contributions from at least
6350 contributors in amounts of at least $10.

7(3)  In order to qualify for Pennsylvania Fair Campaign
8funding in the primary election, a candidate must receive
9prior to the date of the primary election, but subsequent to
10the immediately preceding general election, one-half of the
11amount specified in paragraph (1) for the appropriate office.
12The threshold number of contributors shall be one-half the
13number designated in paragraph (2).

14(4)  (i)  The term "qualifying contribution" shall
15include any contribution, as defined in section 1621(b),
16which has all of the following characteristics:

17(A)  Made by an individual resident of
18Pennsylvania or by a political action committee, as
19defined in section 1621(l), whose address is in
20Pennsylvania.

21(B)  Made by a written instrument which indicates
22the contributor's full name and mailing residence and
23is not intended to be returned to the contributor or
24transferred to another political committee or
25candidate.

26(ii)  If a contributor receives goods or services of
27value in return for a contribution, the qualifying
28contribution shall be calculated as the original
29contribution, minus the fair market value of the goods or
30services received.

1(iii)  Any contribution which exceeds $500 in the
2aggregate shall be deemed only a $500 qualifying
3contribution for the purposes of this section and for the
4matching payment provisions of section 1609-A.

5(c)  Auditor.--The secretary shall select an auditor pursuant
6to the provisions of section 1635(a). Each candidate who elects
7to apply for Pennsylvania Fair Campaign funding shall provide
8evidence that the candidate has raised the qualifying
9contributions required by this section, which evidence shall be
10verified and certified as correct to the secretary by the
11auditor selected under this subsection.

12Section 1609-A.  Pennsylvania Fair Campaign funding formula.

13(a)  Matching payments.--Every candidate who qualifies for
14Pennsylvania Fair Campaign funding for either the primary or the
15general election pursuant to section 1608-A shall receive
16matching payments from the fund in the amount of $2.50 for each
17dollar of qualifying contribution as defined in section 1608-
18A(b)(3).

19(b)  Calculation.--The $2.50 matching payment for each dollar
20of qualifying contributions provided by this section shall be
21provided only for qualifying contributions raised which exceed
22the threshold amounts specified in section 1608-A(b) and not to
23those qualifying contributions which are attributable to meeting
24such threshold amounts necessary to qualify for Pennsylvania
25Fair Campaign funding.

26(c)  Time frames.--

27(1)  Only those contributions made during the period
28between a declaration of candidacy and the primary election
29shall be eligible for matching payments from the fund for the
30primary election.

1(2)  Only those contributions made during the period
2between the primary election and the general election shall
3be eligible for matching payments from the fund for the
4general election.

5Section 1610-A.  Limitations on Pennsylvania Fair Campaign
6funding.

7(a)  Limit.--Every candidate who qualifies for and receives
8Pennsylvania Fair Campaign funding pursuant to the formula
9established in section 1609-A shall be entitled to receive no
10more than the maximum amount specified in subsection (b) for the
11office the candidate is seeking.

12(b)  General election.--

13(1)  The maximum amount of Pennsylvania Fair Campaign
14funding available for the general election for each candidate
15under this article shall be as follows:

16  17  18Office	Maximum Pennsylvania Fair Campaign Funding
19(i)  Supreme Court Justices	$200,000
20(ii)  Superior Court Judges	$200,000
21(iii)  Commonwealth Court 22Judges	$200,000

23(2)  The maximum amount of Pennsylvania Fair Campaign
24funding available for the primary election for each candidate
25under this article shall be one-half of the appropriate
26figure in paragraph (1).

27(3)  If a participating candidate is identified in
28negative advertisements by an entity other than a candidate
29for the same office, the participating candidate may qualify
30for additional moneys from the fund up to an amount equal to

150% of the maximum provided in paragraphs (1) and (2). The
2secretary shall determine the appropriate supplemental amount
3to be distributed by identifying the amount spent by the
4noncandidate advertising campaign and dividing the amount by
5two.

6(c)  Prohibitions.--Notwithstanding any other provisions of
7this article, no Pennsylvania Fair Campaign funding shall be
8provided to the following:

9(1)  Candidates in the general election who have been
10nominated by both major political parties.

11(2)  Candidates in the primary election who are unopposed
12for the nomination with the exception of those candidates who
13are running in a judicial retention election.

14(d)  Definition.--As used in this section, "major political
15party" shall mean a political party whose candidate for Governor
16received either the highest or second highest number of votes in
17the preceding gubernatorial election.

18Section 1611-A.  Time of payments.

19(a)  General rule.--Beginning 120 days prior to the relevant
20primary or general election, the secretary shall make payments
21authorized by this article at least every two weeks. However,
22except for the final payment, no payment shall be due or paid if
23the payment does not equal at least $5,000.

24(b)  Insufficient funds.--If in the secretary's opinion
25insufficient funds exist in the fund to provide the anticipated
26full funding to eligible candidates in a given primary or
27general election, the secretary shall distribute the available
28funds to qualified candidates on a pro rata basis. In
29determining whether sufficient funds are available, the
30secretary shall not take into consideration the needs of any

1subsequent primary or general elections but shall base the
2decision solely on the immediate primary or election at hand.

3Section 1612-A.  Use of Pennsylvania Fair Campaign funds by
4candidates.

5(a)  Use.--Pennsylvania Fair Campaign funds distributed to
6candidates pursuant to this article may be used only for the
7election for which they are distributed and only for direct
8expenses incurred exclusively for influencing the outcome of the
9election.

10(b)  Prohibitions.--No fund moneys may be used:

11(1)  To transfer to other candidates or to candidate
12political committees, political action committees or

13multicandidate committees.

14(2)  To pay for expenditures incurred after the date of
15the general election.

16(3)  For anything not directly or tangibly related to the
17participating candidate's campaign.

18(c)  Single account.--Pennsylvania Fair Campaign funds
19distributed to a candidate pursuant to this article shall be
20placed in a single bank account. Expenditures from this account
21shall be made only for campaign expenses listed in subsection
22(a).

23Section 1613-A.  Expenditures.

24(a)  Prior to general election.--Expenditures made by a
25candidate who accepts Pennsylvania Fair Campaign funding and the
26candidate's authorized committees, for all purposes and from all
27sources, including, but not limited to, amounts of Pennsylvania
28Fair Campaign funds distributed under this article, proceeds of
29loans, gifts, contributions from any source or personal funds,
30subsequent to the date of the primary election, but prior to the

1date of the general election, may not exceed $325,000.

2(b)  Prior to primary election.--Expenditures made by a
3candidate and the candidate's authorized committees, subsequent
4to January 1 but prior to the date of the primary election, may
5not exceed one-half of the amount specified in subsection (a).

6(c)  Exception.--Notwithstanding any other provision of this
7article, a candidate who accepts public funding pursuant to the
8formula established in section 1609-A, but whose major political
9party opponent elects not to apply for such public funding,
10shall not be bound by the expenditure limits specified in this
11section.

12Section 1614-A.  Limitations on certain contributions.

13(a)  Limits.--No candidate for a Statewide judicial office
14shall accept contributions for any primary, general or special
15election which exceed those specified limits as follows:

16(1)  Individual, up to $1,000 in the aggregate.

17(2)  Political action committees and candidate's
18political committees as defined in section 1621(l), as
19follows:

20(i)  those with ten or fewer donors up to the amount
21established in paragraph (1) for an individual;

22(ii)  those with 11 to 50 donors up to double the
23amount established in paragraph (1) for an individual;

24(iii)  those with 51 to 100 donors up to triple the
25amount established in paragraph (1) for an individual;

26(iv)  those with 101 to 1,000 donors up to quadruple
27the amount established in paragraph (1) for an
28individual; and

29(v)  those with 1,001 or more donors up to quintuple
30the amount established in paragraph (1) for an

1individual.

2(3)  For the purposes of this section, a "donor" is any
3one individual or any one political committee, regardless of
4the number of times the individual or committee has made
5donations.

6(4)  Political party committees may contribute to any
7judicial candidate an amount up to ten times that permitted
8for the largest political action committee.

9(b)  Personal funds.--Any candidate for a Statewide judicial
10office who accepts Pennsylvania Fair Campaign funding may not
11spend in aggregate more than $25,000 of the candidate's own and
12the candidate's spouse's personal funds for each primary,
13general or special election. If the candidate does not accept
14Pennsylvania Fair Campaign funding, this limit shall not apply.

15(c)  Aggregate contributions.--Aggregate contributions during
16the year of the election by a political party committee or
17candidate's political committee to candidates receiving
18Pennsylvania Fair Campaign funds shall not exceed the sum of
19contributions from individuals to the committee, provided that
20whenever contributions in the aggregate during the year of the
21election from an individual exceed $1,000 only $1,000 shall be
22included in that sum.

23(d)  Prohibition.--No person shall make or offer, and no
24candidate or political committee affiliated with a candidate
25shall accept, any contribution after 5 p.m. on the day prior to
26the general election. This prohibition shall remain in effect
27until the year in which the judicial candidate next seeks
28retention.

29Section 1615-A.  Inflation indexing of certain limitations.

30The dollar figures contained in sections 1608-A, 1610-A and

11613-A may be adjusted not more than once annually during March
2at a rate equal to the average percentage change in the All-
3Urban Consumer Price Index for the Pittsburgh, Philadelphia and
4Scranton standard metropolitan statistical areas as published by
5the Bureau of Labor Statistics of the United States Department
6of Labor, or any successor agency, occurring in the prior
7calendar year. The base year shall be 2011. The average shall be
8calculated and certified by the secretary annually by adding the
9percentage increase in each of the three areas and dividing by
10three. The calculation and any resulting new figures shall be
11published in the Pennsylvania Bulletin during March.

12Section 1616-A.  Annual report.

13The secretary shall report annually to the Governor and the
14General Assembly on the operations of Pennsylvania Fair Campaign
15funds as provided by this article. The report shall include, but
16not be limited to, the revenues and expenditures in the fund,
17the amounts distributed to candidates, the results of any audits
18performed on candidates in compliance with the provisions of
19this article and any prosecutions brought for violations of this
20article.

21Section 1617-A.  Return of excess funds.

22All unexpended campaign funds in a candidate's and his
23authorized committees' possession 60 days after the election
24shall be returned to the secretary for deposit in the
25Pennsylvania Fair Campaign Fund, up to the amount of the funds
26which were distributed to the candidate under this article.

27Section 1618-A.  Penalties.

28(a)  Wrongful obtaining of funds.--A person who violates the
29provisions of this article and who, as a result, obtains
30Pennsylvania Fair Campaign funds to which the person is not

1entitled commits a misdemeanor of the first degree and shall,
2upon conviction, be sentenced to pay a fine of not more than
3$10,000 or three times the amount of funds wrongfully obtained
4or to imprisonment for not more than five years, or both, and
5forfeiture of office.

6(b)  Wrongful use or expenditure.--A person who violates
7section 1612-A or 1613-A commits a misdemeanor of the first
8degree, and shall, upon conviction, be sentenced to pay a fine
9of not more than $10,000 or three times the amount of funds that
10were wrongfully used or expended or to imprisonment for not more
11than five years, or both, and forfeiture of office.

12(c)  Other violation.--Except as provided in subsections (a)
13and (b), a person who violates any provision of this article
14commits a misdemeanor of the third degree and shall, upon
15conviction, be subject to a fine of not more than $1,000 or to
16imprisonment for not more than one year, or both, and forfeiture
17of office.

18Section 3.  The addition of Article XVI-A of the act shall
19apply to returns of taxpayers for calendar years commencing
20January 1, 2013, and thereafter. Pennsylvania Fair Campaign
21funding shall be first provided for candidates for Statewide
22judicial office in the general election of November 2014 and in
23each primary, municipal and general election thereafter.

24Section 4.  This act shall take effect immediately.