PRINTER'S NO. 1684

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1379 Session of 1985


        INTRODUCED BY KUKOVICH, PICCOLA, ITKIN, SWEET, BELFANTI,
           DeWEESE, FREEMAN, AFFLERBACH, PRATT, DAWIDA, PISTELLA, DALEY,
           J. L. WRIGHT, MANMILLER, LEVDANSKY, LASHINGER, GREENWOOD,
           STABACK, MICHLOVIC, MURPHY AND VAN HORNE, JUNE 10, 1985

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 10, 1985

                                     AN ACT

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

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  The act of June 3, 1937 (P.L.1333, No.320), known
    18  as the Pennsylvania Election Code, is amended by adding an
    19  article to read:
    20                           ARTICLE XVI-A
    21                Pennsylvania Clean Campaign Funding
    22     Section 1601-A.  Application of Article.--The provisions of
    23  this article shall be applicable to candidates for the following

     1  State-wide offices who elect to apply for Pennsylvania Clean
     2  Campaign funding hereunder:
     3     (1)  Supreme Court Justice.
     4     (2)  Superior Court Judge.
     5     (3)  Commonwealth Court Judge.
     6     Section 1602-A.  Administration.--The provisions of this
     7  article shall be administered by the Secretary of the
     8  Commonwealth hereinafter referred to as the secretary. The
     9  secretary may adopt such rules and regulations as may be
    10  necessary for the implementation of this article.
    11     Section 1603-A.  Pennsylvania Clean Campaign Fund Created.--
    12  There is hereby created a special restricted receipts fund in
    13  the State Treasury to be known as the "Pennsylvania Clean
    14  Campaign Fund." Payments shall be made into said fund pursuant
    15  to section 1604-A and disbursements shall be made from said fund
    16  only upon the warrant of the Secretary of the Commonwealth and a
    17  warrant of the State Treasurer. As much of the moneys in the
    18  Pennsylvania Clean Campaign Fund as are necessary to make
    19  payments to candidates as provided in this article are
    20  appropriated from said fund to the Department of State for the
    21  purpose of such payments.
    22     Section 1604-A.  Allocation of Certain Tax Proceeds to
    23  Pennsylvania Clean Campaign Fund.--Beginning with tax years
    24  commencing January 1, 1985, and thereafter, each individual
    25  subject to the tax imposed by Article III of the act of March 4,
    26  1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971,"
    27  whose tax liability for any such year is one dollar and fifty
    28  cents ($1.50) or more may designate one dollar and fifty cents
    29  ($1.50) of his or her personal income taxes to be paid into the
    30  Pennsylvania Clean Campaign Fund. In the case of married
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     1  taxpayers filing a joint return, each spouse may designate one
     2  dollar and fifty cents ($1.50) to be paid into said fund if
     3  their tax liability is three dollars ($3.00) or more. All such
     4  designated tax revenues shall be paid into the Pennsylvania
     5  Clean Campaign Fund. The check-off and instructions shall be
     6  prominently displayed on the first page of the return form. The
     7  instructions shall readily indicate that any such designations
     8  neither increase or decrease an individual's tax liability.
     9     Section 1605-A.  Certification of Moneys in Pennsylvania
    10  Clean Campaign Fund.--By June 30 of each year, the State
    11  Treasurer shall certify to the secretary the current balance
    12  available in the Pennsylvania Clean Campaign Fund.
    13     Section 1606-A.  Qualification for Pennsylvania Clean
    14  Campaign Funding.--(a)  Any candidate for State-wide judicial
    15  office as described in section 1601-A may apply for Pennsylvania
    16  Clean Campaign funding under this article if such candidate
    17  meets the contributory thresholds established in subsection (b)
    18  and otherwise conforms to the requirements of this article. No
    19  candidate shall be obligated to apply for funding hereunder and
    20  if any candidate elects not to apply, the provisions of this
    21  article shall be inapplicable to such person and their
    22  candidacy. Any candidate electing to receive Pennsylvania Clean
    23  Campaign funding must declare his intention to do so and specify
    24  the State office for which he is a candidate. Any and all
    25  committees authorized to receive contributions or make
    26  expenditures for the candidate who has so declared must abide by
    27  the provisions of section 1612-A. Any candidate who for any
    28  reason has his name withdrawn from the ballot for a State-wide
    29  judicial election, after receipt of Pennsylvania Clean Campaign
    30  funds, shall return all moneys received to the fund as well as
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     1  offering back qualifying contributions for that State-wide
     2  judicial office.
     3     (b)  (1)  In order to qualify for Pennsylvania Clean Campaign
     4  funding in the general election, a candidate must receive
     5  subsequent to the date of the primary election but prior to the
     6  date of the general election qualifying contributions of the
     7  following amounts:
     8         Office              Qualifying Contributions Required
     9     (i)  Supreme Court Justices         $25,000
    10     (ii)  Superior Court Judges          25,000
    11     (iii)  Commonwealth Court Judges     25,000
    12     (2)  In order to qualify for Pennsylvania Clean Campaign
    13  funding in the primary election, a candidate must receive prior
    14  to the date of the primary election, but subsequent to the
    15  immediately preceding general election, one-half of the amount
    16  specified in clause (1) for the appropriate office.
    17     (3)  (i)  The term "qualifying contribution" shall include
    18  any contribution, as defined in section 1621(b), which has all
    19  of the following characteristics:
    20     (A)  Made by an individual resident of Pennsylvania.
    21     (B)  Made by a written instrument which indicates the
    22  contributor's full name and mailing residence and is not
    23  intended to be returned to the contributor or transferred to
    24  another political committee or candidate.
    25     (ii)  If a contributor receives goods or services of value in
    26  return for his contribution, the qualifying contribution shall
    27  be calculated as the original contribution, minus the fair
    28  market value of the goods or services received.
    29     (iii)  Any contribution by an individual which exceeds one
    30  hundred dollars ($100.00) in the aggregate shall be deemed only
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     1  a one hundred dollar ($100.00) qualifying contribution for the
     2  purposes of this section and for the matching payment provisions
     3  of section 1607-A.
     4     (c)  The secretary shall select an auditor pursuant to the
     5  provisions of section 1635(a). Each candidate who elects to
     6  apply for Pennsylvania Clean Campaign funding shall provide
     7  evidence that such candidate has raised the qualifying
     8  contributions required by this section which evidence shall be
     9  verified and certified as correct to the secretary by the
    10  auditor selected hereunder.
    11     Section 1607-A.  Pennsylvania Clean Campaign Funding
    12  Formula.--(a)  Every candidate who qualifies for Pennsylvania
    13  Clean Campaign funding for either the primary or the general
    14  election pursuant to section 1606-A shall receive matching
    15  payments from said fund in the amount of two dollars and fifty
    16  cents ($2.50) for each dollar of qualifying contribution as
    17  defined in section 1606-A(b)(3).
    18     (b)  The two dollars and fifty cents ($2.50) for each dollar
    19  of qualifying contributions provided by this section shall be
    20  provided only for qualifying contributions raised which exceed
    21  the threshold amounts specified in section 1606-A(b) and not to
    22  those qualifying contributions which are attributable to meeting
    23  such threshold amounts necessary to qualify for Pennsylvania
    24  Clean Campaign funding.
    25     (c)  (1)  Only those qualifying contributions made during the
    26  period between a declaration of candidacy and the primary
    27  election shall be eligible for matching payments from said fund
    28  for the primary election.
    29     (2)  Only those qualifying contributions made during the
    30  period between the primary election and the general election
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     1  shall be eligible for matching payments from said fund for the
     2  general election.
     3     Section 1608-A.  Limitations on Pennsylvania Clean Campaign
     4  Funding.--(a)  Every candidate who qualifies for and receives
     5  Pennsylvania Clean Campaign funding pursuant to the formula
     6  established in section 1607-A shall be entitled to receive no
     7  more than the maximum amount specified in subsection (b) for the
     8  office such candidate is seeking.
     9     (b)  (1)  The maximum amount of Pennsylvania Clean Campaign
    10  funding available for the general election for each candidate
    11  under this article shall be as follows:
    12             Office                  Maximum Pennsylvania Clean
    13                                         Campaign Funding
    14     (i) Supreme Court Justices              $100,000
    15     (ii)  Superior Court Judges              100,000
    16     (iii)  Commonwealth Court Judges         100,000
    17     (2)  The maximum amount of Pennsylvania Clean Campaign
    18  funding available for the primary election for each candidate
    19  under this article shall be one-half the appropriate figure in
    20  clause (1).
    21     (c)  Notwithstanding any other provisions of this article no
    22  Pennsylvania Clean Campaign funding shall be provided to the
    23  following:
    24     (1)  Candidates in the general election who have been
    25  nominated by both major political parties.
    26     (2)  Candidates who are running in a judicial retention
    27  election.
    28     (3)  Candidates in the primary election who are unopposed for
    29  the nomination.
    30     (d)  As used in this article, "major political party" shall
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     1  mean a political party whose candidate for Governor received
     2  either the highest or second highest number of votes in the
     3  preceding gubernatorial election.
     4     Section 1609-A.  Time of Payments.--(a)  Beginning ninety
     5  (90) days prior to the relevant primary or general election, the
     6  secretary shall make payments authorized by this article at
     7  least every two (2) weeks. However, except for the final
     8  payment, no payment shall be due or paid if the payment does not
     9  equal at least five thousand dollars ($5,000) in amount.
    10     (b)  If in the secretary's opinion insufficient funds exist
    11  in the Pennsylvania Clean Campaign Fund to provide the
    12  anticipated full funding to eligible candidates in a given
    13  primary or general election, the secretary shall distribute the
    14  available funds to qualified candidates on a pro-rata basis. In
    15  determining whether sufficient funds are available, the
    16  secretary shall not take into consideration the needs of any
    17  subsequent primary or general elections but shall base the
    18  decision solely on the immediate primary or election at hand.
    19     Section 1610-A.  Use of Pennsylvania Clean Campaign Funds by
    20  Candidates.--(a)  Pennsylvania Clean Campaign funds distributed
    21  to candidates pursuant to this article may be used only for the
    22  election for which they are distributed and only for the
    23  following purposes:
    24     (1)  Radio and television time.
    25     (2)  Billboard rental.
    26     (3)  Newspaper advertising.
    27     (4)  Production costs of advertising.
    28     (5)  Printing and mailing of campaign literature.
    29     (6)  Legal and accounting.
    30     (7)  Telephone expenses.
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     1     (8)  Campaign office rental.
     2     (9)  Travel expenses.
     3     (b)  Pennsylvania Clean Campaign funds distributed to a
     4  candidate pursuant to this article shall be placed in a single
     5  bank account. Expenditures from this account shall be made only
     6  for campaign expenses listed in subsection (a).
     7     Section 1611-A.  Expenditures.--(a)  Expenditures made by a
     8  candidate and his authorized committees, for all purposes and
     9  from all sources, including, but not limited to, amounts of
    10  Pennsylvania Clean Campaign funds distributed under this
    11  article, proceeds of loans, gifts, contributions from any source
    12  or personal funds, subsequent to the date of the primary
    13  election, but prior to the date of the general election, may not
    14  exceed three hundred thousand dollars ($300,000).
    15     (b)  Expenditures made by a candidate and his authorized
    16  committees, subsequent to January 1 but prior to the date of the
    17  primary election, may not exceed one-half of the amount
    18  specified in subsection (a).
    19     (c)  Notwithstanding any other provision of this article, a
    20  candidate who accepts public funding pursuant to the formula
    21  established in section 1607-A, but whose major political party
    22  opponent elects not to apply for such public funding, shall not
    23  be bound by the expenditure limits specified in this section.
    24     Section 1612-A.  Limitations on Certain Contributions.--(a)
    25  Any candidate for a State-wide judicial office shall not accept
    26  contributions for each primary, general or special election
    27  exceeds those specified limits as follows:
    28             Contributor                           Limit
    29     (1)  Individual                              $1,000
    30     (2)  Candidate and spouse                    25,000
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     1     (3)  Political action committee
     2          as defined in section 1621(1)            1,000
     3     (4)  Partnerships                             1,000
     4     (b)  Aggregate contributions during the year of the election
     5  by a political party committee or candidate's political
     6  committee to candidates receiving Pennsylvania Clean Campaign
     7  funds shall not exceed the sum of contributions from individuals
     8  to the committee, provided that whenever contributions in the
     9  aggregate during the year of the election from an individual
    10  exceed one thousand dollars ($1,000), only one thousand dollars
    11  ($1,000) shall be included in that sum.
    12     Section 1613-A.  Inflation Indexing of Certain Limitations.--
    13  The dollar figures contained in sections 1606-A, 1608-A and
    14  1611-A shall be adjusted annually during March at a rate equal
    15  to the average percentage change in the All-Urban Consumer Price
    16  Index for the Pittsburgh, Philadelphia and Scranton standard
    17  metropolitan statistical areas as published by the Bureau of
    18  Labor Statistics of the United States Department of Labor, or
    19  any successor agency, occurring in the prior calendar year. The
    20  base year shall be 1984. The average shall be calculated and
    21  certified by the secretary annually by adding the percentage
    22  increase in each of the three areas and dividing by three. The
    23  calculation and resulting new figures shall be published in the
    24  Pennsylvania Bulletin during March.
    25     Section 1614-A.  Annual Report.--The secretary shall report
    26  annually to the General Assembly and the Governor on the
    27  operations of Pennsylvania Clean Campaign funds as provided by
    28  this article. Such report shall include, but not be limited to,
    29  the revenues and expenditures in the fund, the amounts
    30  distributed to candidates, the results of any audits performed
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     1  on candidates in compliance with the provisions of this article
     2  and any prosecutions brought for violations of this article.
     3     Section 1615-A.  Return of Excess Funds.--All unexpended
     4  campaign funds in a candidate's and his authorized committees'
     5  possession sixty (60) days after the election shall be returned
     6  to the secretary for deposit in the Pennsylvania Clean Campaign
     7  Fund, up to the amount of the funds which were distributed to
     8  the candidate under this article.
     9     Section 1616-A.  Penalties.--(a)  A person who violates the
    10  provisions of this act and who, as a result, obtains
    11  Pennsylvania Clean Campaign funds to which he is not entitled
    12  shall be guilty of a misdemeanor of the first degree and upon
    13  conviction shall be subject to a fine not to exceed the greater
    14  of ten thousand dollars ($10,000) or three times the amount of
    15  funds wrongfully obtained, or imprisonment for up to five years
    16  or both such fine and imprisonment.
    17     (b)  A person who violates section 1610-A or 1611-A of this
    18  act shall be guilty of a misdemeanor of the first degree and
    19  upon conviction shall be subject to a fine not to exceed the
    20  greater of ten thousand ($10,000) or three times the amount of
    21  funds that were wrongfully used or expended or to imprisonment
    22  for up to five years, or to both such fine and imprisonment.
    23     (c)  Except as provided in subsections (a) and (b) of this
    24  section, a person who violates any provision of this act shall
    25  be guilty of a misdemeanor of the third degree and upon
    26  conviction shall be subject to a fine of not more than one
    27  thousand dollars ($1,000) or imprisonment for up to one year or
    28  both.
    29     Section 2.  This act shall be applicable to returns of
    30  taxpayers of calendar years commencing January 1, 1985, and
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     1  thereafter. Pennsylvania Clean Campaign funding shall be first
     2  provided for candidates for Statewide judicial office in the
     3  primary election in April of 1986 and in each primary, municipal
     4  and general election thereafter.
     5     Section 3.  This act shall take effect immediately.

















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