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," providing for alternative campaign financing
12option, administration and requirement; establishing the
13Clean Election Fund; providing for terms of participation,
14for the power of Department of State to adopt rules and for
15study report; imposing duties on the Department of State and
16a duty on the Department of Revenue; and imposing penalties.

17The General Assembly of the Commonwealth of Pennsylvania
18hereby enacts as follows:

19Section 1. The act of June 3, 1937 (P.L.1333, No.320), known
20as the Pennsylvania Election Code, is amended by adding an
21article to read:

22ARTICLE XVI-A

23clean elections

24Section 1601-A. Scope of article.

25This article relates to clean elections.

1Section 1602-A. Definitions.

2The following words and phrases when used in this article
3shall have the meanings given to them in this section unless the
4context clearly indicates otherwise:

5"Certified candidate." A candidate running for Governor,
6Senator, Representative, Auditor General, Attorney General and
7State Treasurer who chooses to participate in this article and
8who is certified under section 1605-A(g).

9"Contribution." As defined in 4 Pa. Code § 172.1 (relating
10to definitions).

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

12"Fund." The Clean Election Fund established in section 1604-
13A(a).

14"Immediate family." A person's spouse, parent, grandparent,
15child, grandchild, sister, half-sister, brother, half-brother,
16stepparent, stepgrandparent, stepchild, stepgrandchild,
17stepsister, stepbrother, mother-in-law, father-in-law, brother-
18in-law, sister-in-law, son-in-law, daughter-in-law, guardian,
19former guardian, domestic partner, the half-brother or half-
20sister of a person's spouse or the spouse of a person's half-
21brother or half-sister.

22"Nonparticipating candidate." A candidate running for
23Governor, Senator, Representative, Auditor General, Attorney
24General and State Treasurer who does not choose to participate
25in this article and who is not seeking to be a certified
26candidate under section 1605-A(g).

27"Participating candidate." A candidate who is running for
28Governor, Senator, Representative, Auditor General, Attorney
29General and State Treasurer who is seeking to be a certified
30candidate under section 1605-A(g).

1"Qualifying contribution." A donation:

2(1) Of $5 in the form of a check or money order payable
3to the Clean Election Fund and signed by the contributor in
4support of a candidate or made over the Internet in support
5of a candidate according to the procedure established by the
6Department of State.

7(2) Made by a person registered to vote within the
8electoral boundaries of the office a candidate is seeking and
9whose voter registration has been verified according to
10procedures established by the department.

11(3) Made during the designated qualifying period.

12(4) That the contributor on forms provided by the
13department acknowledges was made with the contributor's
14personal funds and in support of the candidate and was not
15given in exchange for anything of value and that the
16candidate acknowledges was obtained with the candidate's
17knowledge and approval and that nothing of value was given in
18exchange for the contribution.

19"Qualifying period." Any of the following:

20(1) For a participating candidate for the offices of
21Governor, Auditor General, Attorney General and State
22Treasurer, the period begins October 15 immediately preceding
23the election year and ends at 5 p.m. on April 1 of the
24election year.

25(2) For Senate or House of Representatives participating
26candidates, the period begins January 1 of the election year
27and ends at 5 p.m. on April 20 of that election year or the
28next business day following April 20 if the Department of
29State is closed on April 20.

30"Seed money contribution." A contribution of no more than

1$100 per individual made to a participating candidate, including
2the candidate or the candidate's spouse or domestic partner.

3Section 1603-A. Alternative campaign financing option,
4administration and requirement.

5(a) Option.--This article establishes an alternative
6campaign financing option available to candidates running for
7Governor, Senator, Representative, Auditor General, Attorney
8General and State Treasurer. The alternative campaign financing
9option is available to candidates for elections to be held
10beginning in the year 2015.

11(b) Administration.--The department shall administer this
12article. The Department of Revenue shall administer the fund.
13Participating candidates shall comply with other applicable
14election and campaign laws and regulations.

15Section 1604-A. Clean Election Fund.

16(a) Establishment.--The Clean Election Fund is established
17in the State Treasury as a special, nonlapsing fund. The fund
18shall:

19(1) Finance the election campaigns of certified
20candidates for Governor, Senator, Representative, Auditor
21General, Attorney General and State Treasurer.

22(2) Pay administrative and enforcement costs of the
23department related to this article.

24(b) Interest.--Interest generated by the fund is credited to
25the fund.

26(c) (Reserved).

27(d) Determination of fund amount.--If the department
28determines that the fund will not have sufficient revenues to
29cover the likely demand for funds from the Clean Election Fund
30in an upcoming election, the department shall provide a report

1of its projections of the balances in the Clean Election Fund to
2the General Assembly and the Governor by January 1. The
3department may submit legislation to request additional funding
4or an advance on revenues to be transferred.

5Section 1605-A. Terms of participation.

6(a) Declaration of intent.--A participating candidate shall
7file a declaration of intent to seek status as a certified
8candidate and to comply with the requirements of this article.
9The declaration of intent shall be filed with the department
10prior to or during the qualifying period, except as provided in
11subsection (r), according to forms and procedures developed by
12the department. A participating candidate shall submit a
13declaration of intent within five business days of collecting
14qualifying contributions under this article. Qualifying
15contributions collected before the declaration of intent has
16been filed will not be counted toward the eligibility
17requirement in subsection (e).

18(b) Contribution limits for participating candidates.--
19Subsequent to becoming a candidate and prior to certification, a
20participating candidate may not accept contributions, except for
21seed money contributions and qualifying contributions. A
22participating candidate shall limit the candidate's total seed
23money contributions to the following amounts:

24(1) two hundred thousand dollars for a gubernatorial
25candidate;

26(2) twenty-five thousand dollars for a candidate for the
27Senate;

28(3) ten thousand dollars for a candidate for the House
29of Representatives;

30(4) two hundred thousand dollars for a candidate for

1Auditor General;

2(5) two hundred thousand dollars for a candidate for
3Attorney General; or

4(6) two hundred thousand dollars for a candidate for
5State Treasurer.

6The department may, by rule, revise these amounts to ensure the
7effective implementation of this article.

8(c) Seed money restrictions.--To be eligible for
9certification, a participating candidate may collect and spend
10only seed money contributions subsequent to becoming a candidate
11and prior to certification. A participating candidate may not
12solicit, accept or collect seed money contributions after
13becoming a certified candidate. The following apply:

14(1) Goods and services received prior to certification
15shall be paid for with seed money contributions, except for
16goods and services that are not a contribution. It is a
17violation of this article for a participating candidate to
18use fund revenues received after certification to pay for
19goods and services received prior to certification.

20(2) Prior to certification, a participating candidate
21may obligate an amount greater than the seed money collected,
22but may only receive that portion of goods and services that
23has been paid for or will be paid for with seed money. A
24participating candidate who accepted contributions or made
25expenditures that do not comply with the seed money
26restrictions under this article may petition the department
27to remain eligible for certification in accordance with
28department rules adopted pursuant to this article, if the
29failure to comply was unintentional and does not constitute a
30significant infraction of these restrictions.

1(3) Upon requesting certification, a participating
2candidate shall file a report of seed money contributions and
3expenditures. If the candidate is certified, unspent seed
4money shall be deducted from the amount distributed to the
5candidate as provided in subsection (o).

6(d) Seed money required for documentation.--For seed money
7contributions that a candidate collects, the candidate shall
8obtain the contributor's name, residence address, mailing
9address, telephone number if provided by the contributor and
10other information required for reporting under this act. For
11these contributions, the candidate shall submit to the
12department during the qualifying period:

13(1) A contribution acknowledgment form, as determined by
14the department, to be completed by each person that
15contributes seed money, that includes the name, residence
16address, mailing address, optional telephone number and
17signature of the person making the seed money contribution
18acknowledging that the contribution was made with the
19person's personal funds and will not be reimbursed by any
20source.

21(2) A list of the seed money contributions in a format
22determined by the department that includes the name and
23mailing address of the contributor.

24(3) For seed money contributions received by check or
25money order, photocopies of the check or money order.

26(4) For seed money contributions received by debit or
27credit card, a bank or merchant account statement that
28contains the cardholder's name and that otherwise meets the
29requirements specified by the department.

30The department may permit the submission of an online or

1electronic acknowledgment form as required by paragraph (1) for
2seed money contributions made via the Internet. The telephone
3numbers, e-mail addresses and bank account and credit card
4information of contributors that candidates submit to the
5department under this subsection are confidential, except that
6the department may disclose this information in a final audit or
7investigation report or determination if the information or
8record is materially relevant to a finding of fact or violation.

9(e) Qualifying contributions.--Participating candidates
10shall obtain qualifying contributions during the qualifying
11period as follows:

12(1) for a gubernatorial candidate, at least 3,250
13verified registered voters of this Commonwealth must support
14the candidacy by providing a qualifying contribution to the
15candidate;

16(2) for a candidate for the Senate, at least 175
17verified registered voters from the candidate's electoral
18district must support the candidacy by providing a qualifying
19contribution to the candidate;

20(3) for a candidate for the House of Representatives, at
21least 60 verified registered voters from the candidate's
22electoral district must support the candidacy by providing a
23qualifying contribution to the candidate; or

24(4) for a candidate for Auditor General, Attorney
25General and State Treasurer, at least 1,000 verified
26registered voters of this Commonwealth must support the
27candidacy by providing a qualifying contribution to the
28candidate.

29A payment, gift or anything of value may not be given in
30exchange for a qualifying contribution. A candidate may pay the

1fee for a money order that is a qualifying contribution in the
2amount of $5 as long as the donor making the qualifying
3contribution pays the $5 amount reflected on the money order.
4Money order fees paid by a participating candidate shall be paid
5for with seed money and reported in accordance with department
6rules adopted pursuant to this article. A money order shall be
7signed by the contributor to be a valid qualifying contribution.
8The department may establish by routine technical rule a
9procedure for a qualifying contribution to be made by a credit
10or debit transaction and by electronic funds transfer over the
11Internet. Records containing information provided by individuals
12who have made qualifying contributions over the Internet are
13confidential, except for the name of the individual making the
14contribution, the date of the contribution, the individual's
15residential address and the name and office sought by the
16candidate in whose support the contribution was made. It is a
17violation of this article for a participating candidate or an
18agent of the participating candidate to misrepresent the purpose
19of soliciting qualifying contributions and obtaining the
20contributor's signed acknowledgment.

21(f) Filing with the department.--A participating candidate
22shall submit qualifying contributions, receipt and
23acknowledgment forms, proof of verification of voter
24registration and a seed money report to the department during
25the qualifying period according to procedures developed by the
26department, except as provided under subsection (r).

27(g) Certification of candidates.--Upon receipt of a final
28submittal of qualifying contributions by a participating
29candidate, the department shall determine whether the candidate
30has:

1(1) Signed and filed a declaration of intent to
2participate under this article.

3(2) Submitted the appropriate number of valid qualifying
4contributions.

5(3) Qualified as a candidate by petition or other means.

6(4) (Reserved).

7(5) Not accepted contributions, except for seed money
8contributions, and otherwise complied with seed money
9restrictions.

10(6) Not run for the same office as a nonparticipating
11candidate in a primary election in the same election year.

12(7) Not been found to have made a material false 
13statement in a report or other document submitted to the 
14department.

15(8) Not otherwise substantially violated the provisions
16of this article or 4 Pa. Code Ch. 177 (relating to reports by 
17candidates, political committees and other persons).

18(9) Not failed to pay a civil penalty assessed by the
19department under this act, except that a candidate has three
20business days from the date of the request for certification
21to pay the outstanding penalty and remain eligible for
22certification.

23(10) Otherwise met the requirements for participation
24under this article.

25The department shall certify a candidate complying with the
26requirements of this section as soon as possible after final
27submittal of qualifying contributions and other supporting
28documents required under subsection (f), but no later than three
29business days for legislative candidates and five business days
30for gubernatorial candidates. The department may take additional

1time if further investigation is necessary to verify compliance
2with this article as long as it notifies the candidate regarding
3the anticipated schedule for conclusion of the investigation. A
4certified candidate shall comply with the requirements of this
5article after certification and throughout the primary and
6general election periods. Failure to do so is a violation of
7this article.

8(h) Revocation of certification.--The certification of a
9participating candidate may be revoked if the department
10determines that the candidate or an agent of the candidate:

11(1) did not submit the required number of valid
12qualifying contributions;

13(2) failed to qualify as a candidate by petition or
14other means;

15(3) submitted fraudulent qualifying contributions or
16qualifying contributions that were not made by the named
17contributor;

18(4) misrepresented to a contributor the purpose of the
19qualifying contribution or obtaining the contributor's
20signature on the receipt and acknowledgment form;

21(5) failed to fully comply with the seed money
22restrictions;

23(6) knowingly accepted contributions, including in-kind
24contributions, or used funds other than fund revenues
25distributed under this article to make campaign-related
26expenditures without the permission of the department;

27(7) knowingly made a false statement or material
28misrepresentation in a report or other document required to
29be filed under this article or 4 Pa. Code Ch. 177;

30(8) otherwise substantially violated the provisions of

1this article or 4 Pa. Code Ch. 177; or

2(9) failed to properly report seed money contributions
3as required for a gubernatorial candidate under this section.

4The determination to revoke the certification of a candidate 
5shall be made by the department after it has given the candidate 
6notice and opportunity for a hearing. A candidate whose 
7certification is revoked shall return the unspent funds to the 
8department within three days of the department's decision and 
9may be required to return the funds distributed to the 
10candidate. In addition to the requirement to return funds, the 
11candidate may be subject to a civil penalty under section 
121607-A. The candidate may appeal the department's decision to 
13revoke certification in the same manner provided in subsection 
14(x)(3).

15(i) Restrictions on serving as treasurer.--A certified
16candidate may not serve as a treasurer or deputy treasurer for
17his campaign.

18(j) Restrictions on contributions and expenditures for 
19certified candidates.--After certification, a candidate shall 
20limit his campaign expenditures and obligations, including 
21outstanding obligations, to the revenues distributed to the 
22candidate from the fund and may not accept contributions unless 
23specifically authorized by the department. Candidates may also 
24accept and spend interest earned on fund revenues in campaign 
25bank accounts. Revenues distributed to a certified candidate 
26from the fund shall be used for campaign-related purposes. The 
27candidate, the treasurer, the candidate's committee authorized 
28under 4 Pa. Code Ch. 176 (relating to registration and 
29organization of political committees) or any agent of the 
30candidate and committee may not use the revenues for anything
 

1but campaign-related purposes. A television advertisement 
2purchased with the revenues shall be closed-captioned when 
3closed-captioning is available from the broadcasting station 
4that will broadcast the advertisement. The department shall 
5publish guidelines outlining permissible campaign-related 
6expenditures.

7(k) Assisting a person to become an opponent.--A candidate
8or a person who later becomes a candidate and who is seeking
9certification under subsection (g), or an agent of that
10candidate, may not assist another person in qualifying as a
11candidate for the same office if the candidacy would result in
12the distribution of revenues under subsections (m) and (o) for
13certified candidates in a contested election.

14(l) Expenditures to the candidate or family or household
15members.--Expenditures to the candidate or immediate family
16member or household member of the candidate are governed as
17follows:

18(1) The candidate may not use fund revenues to 
19compensate the candidate or a sole proprietorship of the 
20candidate for campaign-related services.

21(2) A candidate may not make expenditures using fund
22revenues to pay a member of the candidate's immediate family
23or household, a business entity in which the candidate or a
24member of the candidate's immediate family or household holds
25a significant proprietary or financial interest or a
26nonprofit entity in which the candidate or a member of the
27candidate's immediate family or household is a director,
28officer, executive director or chief financial officer,
29unless the expenditure is made:

30(i) For a legitimate campaign-related purpose.

1(ii) To an individual or business that provides the
2goods or services being purchased in the normal course of
3the individual's occupation or business.

4(iii) In an amount that is reasonable taking into
5consideration current market value and other factors the
6department may choose to consider.

7For the purpose of this paragraph, the term "business entity"
8means a corporation, limited liability company, limited
9partnership, limited liability partnership or general
10partnership. If a candidate uses fund revenues for an
11expenditure covered by this paragraph, the candidate shall
12submit evidence demonstrating that the expenditure complies
13with the requirements of this paragraph if requested by the
14department. This subsection does not prohibit reimbursement
15to the candidate or a member of a candidate's household or
16immediate family when made in accordance with this article
17and department rules adopted pursuant to this article.

18(m) Timing of fund distribution.--The department shall
19distribute to certified candidates revenues from the fund in
20amounts determined under subsection (o) in the following manner:

21(1) Within three days after certification, for
22candidates certified prior to the day of the election cycle
23that the department designates as the first day to circulate
24nominating petitions of the election year, revenues from the
25fund shall be distributed as if the candidates are in an
26uncontested primary election.

27(2) (Reserved).

28(3) For candidates in contested primary elections
29receiving a distribution under paragraph (1), additional
30revenues from the fund shall be distributed within three days

1of the day of the election cycle that the department
2designates as the first day to circulate nominating petitions
3of the election year.

4(4) No later than three days after the primary election
5results are certified, for general election certified
6candidates, revenues from the fund shall be distributed
7according to whether the candidate is in a contested or
8uncontested general election.

9Funds may be distributed to certified candidates under this
10section by a mechanism that is expeditious, ensures
11accountability and safeguards the integrity of the fund.

12(n) Deposit into account.--The candidate or committee
13authorized under 4 Pa. Code Ch. 176 shall deposit the revenues
14from the fund and the seed money contributions in a campaign
15account with a bank or other financial institution. The campaign
16funds shall be segregated from, and may not be commingled with,
17any other funds.

18(o) Amount of fund distribution.--The department shall
19distribute the following amounts from the fund to a certified
20candidate to finance his election campaign:

21(1) For a gubernatorial candidate, $100,000 for the
22primary election and $400,000 for the general election.

23(2) For a candidate for the Senate, $50,000 for the
24primary election and $150,000 for the general election.

25(3) For a candidate for the House of Representatives,
26$20,000 for the primary election and $60,000 for the general
27election.

28(4) For a candidate for Auditor General, Attorney
29General and State Treasurer, $100,000 for the primary
30election and $400,000 for the general election.

1A candidate in a primary or general election that is not
2contested shall have the amounts in this subsection reduced by
375%. The department shall have the authority to adjust the
4amounts provided in this subsection as needed.

5(p) (Reserved).

6(q) Candidate not enrolled in a party.--An unenrolled 
7candidate for the General Assembly who submits the required 
8number of qualifying contributions and other required documents 
9under subsection (f) by 5 p.m. on April 15 preceding the primary 
10election and who is certified is eligible for revenues from the 
11fund in the same amounts and at the same time as an uncontested 
12primary election candidate and a general election candidate as 
13specified in subsections (m) and (o). Otherwise, an unenrolled 
14candidate for the General Assembly shall submit the required 
15number of qualifying contributions and the other required 
16documents under subsection (f) by 5 p.m. on June 2 preceding the 
17general election. If certified, the candidate is eligible for 
18revenues from the fund in the same amounts as a general election 
19candidate as specified in subsection (o). Revenues for the 
20general election shall be distributed to the candidate no later 
21than three days after certification. An unenrolled candidate for 
22Governor who submits the required number of qualifying 
23contributions and other required documents under subsections (d) 
24and (f) by 5 p.m. on April 1 preceding the primary election and 
25who is certified is eligible for revenues from the fund in the 
26same amounts and at the same time as an uncontested primary 
27election gubernatorial candidate and a general election 
28gubernatorial candidate as specified in subsections (m) and (o). 
29Revenues for the general election shall be distributed to the 
30candidate for Governor no later than three days after the

1primary election results are certified.

2(r) Other procedures.--The department shall establish by
3rule procedures for qualification, certification, disbursement
4of fund revenues and return of unspent fund revenues for races
5involving special elections, recounts, vacancies, withdrawals or
6replacement candidates.

7(s) Reporting and unspent revenue.--Notwithstanding any
8other provision of law, participating and certified candidates
9shall report money collected, campaign expenditures, obligations
10and related activities to the department according to procedures
11developed by the department. If a certified candidate pays fund
12revenues to a member of the candidate's immediate family or
13household or a business or nonprofit entity affiliated with a
14member of the candidate's immediate family or household, the
15candidate shall disclose the candidate's relationship to the
16payee in a manner prescribed by the department. Upon the filing
17of a final report for a primary election in which the candidate
18was defeated and for general elections that candidate shall
19return unspent fund revenues to the department. In developing
20these procedures, the department shall utilize existing campaign
21reporting procedures whenever practicable. The department shall
22ensure timely public access to campaign finance data and may
23utilize electronic means of reporting and storing information.

24(t) Required records.--The treasurer shall obtain and keep:

25(1) Bank or other account statements for the campaign
26account covering the duration of the campaign.

27(2) A vendor invoice stating the particular goods or
28services purchased for every expenditure of $50 or more.

29(3) A record proving that a vendor received payment for
30every expenditure of $50 or more in the form of a canceled

1check, cash receipt from the vendor or bank or credit card
2statement identifying the vendor as the payee.

3(4) A document such as an invoice, contract or time
4sheet that specifies in detail the services provided by a
5vendor who was paid $500 or more for the election cycle for
6providing campaign staff or consulting services to a
7candidate.

8The treasurer shall preserve the records for three years
9following the candidate's final campaign finance report for the
10election cycle. The candidate and treasurer shall submit
11photocopies of the records to the department upon its request.

12(u) Audit requirements for candidates for Governor.--The
13department shall audit the campaigns of candidates for Governor
14who receive funds under this article to verify compliance with
15election and campaign laws and rules. Within one month of
16declaring an intention to qualify for public financing, a
17candidate for Governor, the campaign's treasurer and other
18relevant campaign staff shall meet with the staff of the
19department to discuss audit standards, expenditure guidelines
20and recordkeeping requirements.

21(v) Payments to political committees.--If a certified
22candidate makes a payment of fund revenues to a political action
23committee or party committee, the candidate shall include in
24reports required under this section a detailed explanation of
25the goods or services purchased according to forms and
26procedures developed by the department that is sufficient to
27demonstrate that the payment was made solely to promote the
28candidate's election.

29(w) Distributions not to exceed amount in fund.--The
30department may not distribute revenues to certified candidates

1in excess of the total amount of money deposited in the fund as
2set forth in section 1604-A. Notwithstanding any other
3provisions of this article, if the department determines that
4the revenues in the fund are insufficient to meet distributions
5under subsection (o) or (p), the department may permit certified
6candidates to accept and spend contributions, reduced by seed
7money contributions, aggregating no more than $5,000 per donor
8per election for gubernatorial candidates, $1,000 per donor per
9election for Senate and House of Representatives candidates and
10$5,000 per donor per election for Auditor General, Attorney
11General and State Treasurer candidates, up to the applicable
12amounts set forth in subsection (o) or (p) according to
13department rules adopted pursuant to this article.

14(x) Appeals.--A candidate who has not been permitted to be a
15certified candidate, the opponent of a candidate who is a
16certified candidate or other interested persons may challenge a
17certification decision by the department as follows:

18(1) A challenger may appeal to the department within
19seven days of the certification decision. The appeal shall be
20in writing and set forth the reasons for the appeal.

21(2) Within five days after an appeal is properly made
22and after notice is given to the challenger and any opponent,
23the department shall hold a hearing, except that the
24department may extend this period upon agreement of the
25challenger and the candidate whose certification is the
26subject of the appeal, or in response to the request of
27either party upon showing good cause. The appellant has the
28burden of proving that the certification decision was in
29error as a matter of law or was based on factual error. The
30department shall rule on the appeal within five business days

1after the completion of the hearing.

2(3) A challenger may appeal the decision of the
3department in paragraph (2) by commencing an action in
4Commonwealth Court within five days of the date of the
5department's decision. The action shall be conducted in
6accordance with 42 Pa.C.S. § 763 (relating to direct appeals
7from government agencies), except that the court shall issue
8its written decision within 20 days of the date of the
9department's decision. An aggrieved party may appeal the
10decision of the Commonwealth Court by filing a notice of
11appeal within three days of the decision. The record on
12appeal shall be transmitted to the Supreme Court within three
13days after the notice of appeal is filed. After filing the
14notice of appeal, the parties have four days to file briefs
15and appendices with the prothonotary of the Supreme Court.
16The Supreme Court shall consider the case as soon as possible
17after the record and briefs have been filed and shall issue
18its decision within 14 days of the decision of the
19Commonwealth Court.

20(4) A certified candidate whose certification is
21reversed on appeal shall return to the department unspent
22revenues distributed from the fund. If the department or
23court finds that an appeal was made frivolously or to cause
24delay or hardship, the department or court may require the
25moving party to pay costs of the department, court and
26opposing parties, if any.

27Section 1606-A. Department to adopt rules.

28The department shall adopt rules to ensure effective
29administration of this article. The rules shall include, but not
30be limited to, procedures for obtaining qualifying

1contributions, the certification of candidates, circumstances
2involving special elections, vacancies, recounts, withdrawals or
3replacements, collection of revenues for the fund, distribution
4of fund revenue to certified candidates, return of unspent fund
5disbursements, disposition of equipment purchased with funds
6from the Clean Election Fund and compliance with this article.
7Rules of the department required by this section are major
8substantive rules.

9Section 1607-A. Violations.

10(a) Civil fine.--In addition to other penalties that may be
11applicable, a person who violates a provision of this article or
12rules of the department adopted under section 1606-A is subject
13to a fine of not more than $10,000 per violation payable to the
14fund. The department may assess a fine of up to $10,000 for a
15violation of the reporting requirements of 4 Pa. Code Ch. 177
16(relating to reports by candidates, political committees and
17other persons) if it determines that the failure to file a
18timely and accurate report resulted in the late payment of
19matching funds. In addition to a fine, for good cause shown, a
20candidate, treasurer, consultant or other agent of the candidate
21or the political committee authorized by the candidate under 4
22Pa. Code Ch. 176 (relating to registration and organization of
23political committees) found in violation of this article or
24department rules adopted pursuant to this article may be
25required to return to the fund the amounts distributed to the
26candidate from the fund or funds not used for campaign-related
27purposes. If the department makes a determination that a
28violation of this article or department rules adopted pursuant
29to this article has occurred, the department shall assess a fine
30or transmit the finding to the Attorney General for prosecution.

1A final determination by the department may be appealed to
2Commonwealth Court in accordance with 42 Pa.C.S. § 763 (relating
3to direct appeals from government agencies). Fines paid under
4this section shall be deposited in the fund. In determining
5whether or not a candidate is in violation of the expenditure
6limits of this article, the department may consider
7circumstances out of the candidate's control as a mitigating
8factor.

9(b) Misdemeanor.--A person who willfully or knowingly
10violates this article or department rules adopted pursuant to
11this article or who willfully or knowingly makes a false
12statement in a report required by this article commits a
13misdemeanor and shall, upon conviction, be sentenced to pay a
14fine of $1,000 or to imprisonment for not more than six months,
15or both. If the candidate is a certified candidate, he shall
16return the amounts distributed to him to the fund.

17Section 1608-A. Study report.

18By March 15, 2015, and every four years thereafter, the
19department shall prepare for the General Assembly a report
20documenting, evaluating and making recommendations relating to
21the administration, implementation and enforcement of this
22article and the Clean Election Fund.

23Section 2. This act shall take effect in 60 days.