PRIOR PRINTER'S NOS. 1684, 2453               PRINTER'S NO. 3426

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1379 Session of 1985


        INTRODUCED BY KUKOVICH, PICCOLA, ITKIN, SWEET, BELFANTI,
           DeWEESE, FREEMAN, AFFLERBACH, DAWIDA, PISTELLA, DALEY,
           J. L. WRIGHT, MANMILLER, LEVDANSKY, LASHINGER, GREENWOOD,
           STABACK, MICHLOVIC, MURPHY AND VAN HORNE, JUNE 5, 1985

        AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, MAY 5, 1986

                                     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 Fair 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 Fair Campaign Funding
    22     Section 1601-A.  Application of Article.--The provisions of


     1  this article shall be applicable to candidates for the following
     2  State-wide offices who elect to apply for Pennsylvania Fair
     3  Campaign funding hereunder:
     4     (1)  Supreme Court Justice.
     5     (2)  Superior Court Judge.
     6     (3)  Commonwealth Court Judge.
     7     Section 1602-A.  Administration.--The provisions of this
     8  article shall be administered by the Secretary of the
     9  Commonwealth hereinafter referred to as the secretary. The
    10  secretary may adopt such rules and regulations as may be
    11  necessary for the implementation of this article.
    12     Section 1603-A.  Pennsylvania Fair Campaign Fund Created.--
    13  There is hereby created a special restricted receipts fund in
    14  the State Treasury to be known as the "Pennsylvania Fair
    15  Campaign Fund." Payments shall be made into said fund pursuant
    16  to section 1604-A and disbursements shall be made from said fund
    17  only upon the warrant of the Secretary of the Commonwealth and a
    18  warrant of the State Treasurer. As much of the moneys in the
    19  Pennsylvania Fair Campaign Fund as are necessary to make
    20  payments to candidates as provided in this article are
    21  appropriated from said fund to the Department of State for the
    22  purpose of such payments.
    23     Section 1604-A.  Allocation of Certain Tax Proceeds to
    24  Pennsylvania Fair Campaign Fund.--Beginning with tax years
    25  commencing January 1, 1985 1986, and thereafter, each individual  <--
    26  subject to the tax imposed by Article III of the act of March 4,
    27  1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971,"
    28  whose tax liability for any such year is one dollar and fifty
    29  cents ($1.50) or more may designate one dollar and fifty cents
    30  ($1.50) of his or her personal income taxes to be paid into the
    19850H1379B3426                  - 2 -

     1  Pennsylvania Fair Campaign Fund. In the case of married
     2  taxpayers filing a joint return, each spouse may designate one
     3  dollar and fifty cents ($1.50) to be paid into said fund if
     4  their tax liability is three dollars ($3.00) or more. All such
     5  designated tax revenues shall be paid into the Pennsylvania Fair
     6  Campaign Fund. The check-off and instructions shall be
     7  prominently displayed on the first page of the return form. The
     8  instructions shall readily indicate that any such designations
     9  neither increase or decrease an individual's tax liability.
    10     Section 1605-A.  Certification of Moneys in Pennsylvania Fair
    11  Campaign Fund.--By June 30 of each year, the State Treasurer
    12  shall certify to the secretary the current balance available in
    13  the Pennsylvania Fair Campaign Fund.
    14     Section 1606-A.  Qualification for Pennsylvania Fair Campaign
    15  Funding.--(a)  Any candidate for State-wide judicial office as
    16  described in section 1601-A may apply for Pennsylvania Fair
    17  Campaign funding under this article if such candidate meets the
    18  contributory thresholds established in subsection (b) and
    19  otherwise conforms to the requirements of this article. No
    20  candidate shall be obligated to apply for funding hereunder and
    21  if any candidate elects not to apply, the provisions of this
    22  article shall be inapplicable to such person and their
    23  candidacy. Any candidate electing to receive Pennsylvania Fair
    24  Campaign funding must declare his intention to do so and specify
    25  the State office for which he is a candidate. Any and all
    26  committees authorized to receive contributions or make
    27  expenditures for the candidate who has so declared must abide by
    28  the provisions of section 1612-A. Any candidate who for any
    29  reason has his name withdrawn from the ballot for a State-wide
    30  judicial election, after receipt of Pennsylvania Fair Campaign
    19850H1379B3426                  - 3 -

     1  funds, shall return all moneys received to the fund as well as
     2  offering back qualifying contributions for that State-wide
     3  judicial office.
     4     (b)  (1)  In order to qualify for Pennsylvania Fair Campaign
     5  funding in the general election, a candidate must receive
     6  subsequent to the date of the primary election but prior to the
     7  date of the general election qualifying contributions of the
     8  following amounts:
     9         Office              Qualifying Contributions Required
    10     (i)  Supreme Court Justices         $25,000
    11     (ii)  Superior Court Judges          25,000
    12     (iii)  Commonwealth Court Judges     25,000
    13     (2)  In order to qualify for Pennsylvania Fair Campaign
    14  funding in the primary election, a candidate must receive prior
    15  to the date of the primary election, but subsequent to the
    16  immediately preceding general election, one-half of the amount
    17  specified in clause (1) for the appropriate office.
    18     (3)  (i)  The term "qualifying contribution" shall include
    19  any contribution, as defined in section 1621(b), which has all
    20  of the following characteristics:
    21     (A)  Made by an individual resident of Pennsylvania OR BY A    <--
    22  POLITICAL ACTION COMMITTEE, AS DEFINED IN SECTION 1621(L), WHOSE
    23  ADDRESS IS IN PENNSYLVANIA.
    24     (B)  Made by a written instrument which indicates the
    25  contributor's full name and mailing residence and is not
    26  intended to be returned to the contributor or transferred to
    27  another political committee or candidate.
    28     (ii)  If a contributor receives goods or services of value in
    29  return for his contribution, the qualifying contribution shall
    30  be calculated as the original contribution, minus the fair
    19850H1379B3426                  - 4 -

     1  market value of the goods or services received.
     2     (iii)  Any contribution by an individual which exceeds one     <--
     3  hundred dollars ($100.00) in the aggregate shall be deemed only
     4  a one hundred dollar ($100.00) qualifying contribution for the
     5  purposes of this section and for the matching payment provisions
     6  of section 1607-A.
     7     (c)  The secretary shall select an auditor pursuant to the
     8  provisions of section 1635(a). Each candidate who elects to
     9  apply for Pennsylvania Fair Campaign funding shall provide
    10  evidence that such candidate has raised the qualifying
    11  contributions required by this section which evidence shall be
    12  verified and certified as correct to the secretary by the
    13  auditor selected hereunder.
    14     Section 1607-A.  Pennsylvania Fair Campaign Funding
    15  Formula.--(a)  Every candidate who qualifies for Pennsylvania
    16  Fair Campaign funding for either the primary or the general
    17  election pursuant to section 1606-A shall receive matching
    18  payments from said fund in the amount of two dollars and fifty
    19  cents ($2.50) for each dollar of qualifying contribution as
    20  defined in section 1606-A(b)(3).
    21     (b)  The two dollars and fifty cents ($2.50) for each dollar
    22  of qualifying contributions provided by this section shall be
    23  provided only for qualifying contributions raised which exceed
    24  the threshold amounts specified in section 1606-A(b) and not to
    25  those qualifying contributions which are attributable to meeting
    26  such threshold amounts necessary to qualify for Pennsylvania
    27  Fair Campaign funding.
    28     (c)  (1)  Only those qualifying contributions made during the
    29  period between a declaration of candidacy and the primary
    30  election shall be eligible for matching payments from said fund
    19850H1379B3426                  - 5 -

     1  for the primary election.
     2     (2)  Only those qualifying contributions made during the
     3  period between the primary election and the general election
     4  shall be eligible for matching payments from said fund for the
     5  general election.
     6     Section 1608-A.  Limitations on Pennsylvania Fair Campaign
     7  Funding.--(a)  Every candidate who qualifies for and receives
     8  Pennsylvania Fair Campaign funding pursuant to the formula
     9  established in section 1607-A shall be entitled to receive no
    10  more than the maximum amount specified in subsection (b) for the
    11  office such candidate is seeking.
    12     (b)  (1)  The maximum amount of Pennsylvania Fair Campaign
    13  funding available for the general election for each candidate
    14  under this article shall be as follows:
    15             Office                       Maximum Pennsylvania
    16                                         Fair Campaign Funding
    17     (i) Supreme Court Justices              $100,000
    18     (ii)  Superior Court Judges              100,000
    19     (iii)  Commonwealth Court Judges         100,000
    20     (2)  The maximum amount of Pennsylvania Fair Campaign funding
    21  available for the primary election for each candidate under this
    22  article shall be one-half the appropriate figure in clause (1).
    23     (c)  Notwithstanding any other provisions of this article, no
    24  Pennsylvania Fair Campaign funding shall be provided to the
    25  following:
    26     (1)  Candidates in the general election who have been
    27  nominated by both major political parties.
    28     (2)  Candidates in the primary election who are unopposed for
    29  the nomination with the exception of those candidates who are
    30  running in a judicial retention election.
    19850H1379B3426                  - 6 -

     1     (d)  As used in this article, "major political party" shall
     2  mean a political party whose candidate for Governor received
     3  either the highest or second highest number of votes in the
     4  preceding gubernatorial election.
     5     Section 1609-A.  Time of Payments.--(a)  Beginning ninety
     6  (90) days prior to the relevant primary or general election, the
     7  secretary shall make payments authorized by this article at
     8  least every two (2) weeks. However, except for the final
     9  payment, no payment shall be due or paid if the payment does not
    10  equal at least five thousand dollars ($5,000) in amount.
    11     (b)  If in the secretary's opinion insufficient funds exist
    12  in the Pennsylvania Fair Campaign Fund to provide the
    13  anticipated full funding to eligible candidates in a given
    14  primary or general election, the secretary shall distribute the
    15  available funds to qualified candidates on a pro-rata basis. In
    16  determining whether sufficient funds are available, the
    17  secretary shall not take into consideration the needs of any
    18  subsequent primary or general elections but shall base the
    19  decision solely on the immediate primary or election at hand.
    20     Section 1610-A.  Use of Pennsylvania Fair Campaign Funds by
    21  Candidates.--(a)  Pennsylvania Fair Campaign funds distributed
    22  to candidates pursuant to this article may be used only for the
    23  election for which they are distributed and only for the
    24  purposes set forth in section 1634.1, except that no fund moneys
    25  may be used:
    26     (1)  To transfer to other candidates or to committees of
    27  other candidates, but this prohibition shall not apply to funds
    28  transferred to committees of major political parties.
    29     (2)  To pay for expenditures incurred after the date of the
    30  general election.
    19850H1379B3426                  - 7 -

     1     (b)  Pennsylvania Fair Campaign funds distributed to a
     2  candidate pursuant to this article shall be placed in a single
     3  bank account. Expenditures from this account shall be made only
     4  for campaign expenses listed in subsection (a).
     5     Section 1611-A.  Expenditures.--(a)  Expenditures made by a
     6  candidate and his authorized committees, for all purposes and
     7  from all sources, including, but not limited to, amounts of
     8  Pennsylvania Fair Campaign funds distributed under this article,
     9  proceeds of loans, gifts, contributions from any source or
    10  personal funds, subsequent to the date of the primary election,
    11  but prior to the date of the general election, may not exceed
    12  three hundred thousand dollars ($300,000).
    13     (b)  Expenditures made by a candidate and his authorized
    14  committees, subsequent to January 1 but prior to the date of the
    15  primary election, may not exceed one-half of the amount
    16  specified in subsection (a).
    17     (c)  Notwithstanding any other provision of this article, a
    18  candidate who accepts public funding pursuant to the formula
    19  established in section 1607-A, but whose major political party
    20  opponent elects not to apply for such public funding, shall not
    21  be bound by the expenditure limits specified in this section.
    22     Section 1612-A.  Limitations on Certain Contributions.--(a)
    23  Any candidate for a State-wide judicial office shall not accept
    24  contributions for each primary, general or special election
    25  which exceed those specified limits as follows:
    26             Contributor                           Limit            <--
    27     (1)  Individual                              $500
    28     (2)  Candidate and spouse                    25,000
    29     (3)  Political action committee
    30          as defined in section 1621(1)            500
    19850H1379B3426                  - 8 -

     1     (4)  Partnerships                             500
     2     (1)  CANDIDATE AND SPOUSE, UP TO TWENTY-FIVE THOUSAND DOLLARS  <--
     3  ($25,000).
     4     (2)  INDIVIDUAL, UP TO TWO HUNDRED FIFTY DOLLARS ($250).
     5     (3)  PARTNERSHIPS, UP TO TWO HUNDRED FIFTY DOLLARS ($250).
     6     (4)  POLITICAL ACTION COMMITTEES AS DEFINED IN SECTION
     7  1621(L), NO MORE THAN TWO HUNDRED FIFTY DOLLARS ($250) PER
     8  POLITICAL ACTION COMMITTEE OR NO MORE THAN A TOTAL AMOUNT BASED
     9  UPON FIFTY CENTS (50¢) PER CONTRIBUTING MEMBER OF THE POLITICAL
    10  ACTION COMMITTEE, WHICHEVER AMOUNT IS HIGHER; THE MEMBERSHIP OF
    11  THE POLITICAL ACTION COMMITTEE TO BE BASED UPON THE NUMBER OF
    12  CONTRIBUTING MEMBERS IN THE IMMEDIATELY PRECEDING CALENDAR YEAR:
    13  PROVIDED, HOWEVER, THAT A CONTRIBUTION BASED UPON A TOTAL AMOUNT
    14  OF FIFTY CENTS (50¢) PER CONTRIBUTING MEMBER OF THE POLITICAL
    15  ACTION COMMITTEE CANNOT EXCEED FIVE THOUSAND DOLLARS ($5,000).
    16     (b)  Aggregate contributions during the year of the election
    17  by a political party committee or candidate's political
    18  committee to candidates receiving Pennsylvania Fair Campaign
    19  funds shall not exceed the sum of contributions from individuals
    20  to the committee, provided that whenever contributions in the
    21  aggregate during the year of the election from an individual
    22  exceed one thousand dollars ($1,000), only one thousand dollars
    23  ($1,000) shall be included in that sum.
    24     Section 1613-A.  Inflation Indexing of Certain Limitations.--
    25  The dollar figures contained in sections 1606-A, 1608-A and
    26  1611-A shall be adjusted annually during March at a rate equal
    27  to the average percentage change in the All-Urban Consumer Price
    28  Index for the Pittsburgh, Philadelphia and Scranton standard
    29  metropolitan statistical areas as published by the Bureau of
    30  Labor Statistics of the United States Department of Labor, or
    19850H1379B3426                  - 9 -

     1  any successor agency, occurring in the prior calendar year. The
     2  base year shall be 1984. The average shall be calculated and
     3  certified by the secretary annually by adding the percentage
     4  increase in each of the three areas and dividing by three. The
     5  calculation and resulting new figures shall be published in the
     6  Pennsylvania Bulletin during March.
     7     Section 1614-A.  Annual Report.--The secretary shall report
     8  annually to the General Assembly and the Governor on the
     9  operations of Pennsylvania Fair Campaign funds as provided by
    10  this article. Such report shall include, but not be limited to,
    11  the revenues and expenditures in the fund, the amounts
    12  distributed to candidates, the results of any audits performed
    13  on candidates in compliance with the provisions of this article
    14  and any prosecutions brought for violations of this article.
    15     Section 1615-A.  Return of Excess Funds.--All unexpended
    16  campaign funds in a candidate's and his authorized committees'
    17  possession sixty (60) days after the election shall be returned
    18  to the secretary for deposit in the Pennsylvania Fair Campaign
    19  Fund, up to the amount of the funds which were distributed to
    20  the candidate under this article.
    21     Section 1616-A.  Penalties.--(a)  A person who violates the
    22  provisions of this act and who, as a result, obtains
    23  Pennsylvania Fair Campaign funds to which he is not entitled
    24  shall be guilty of a misdemeanor of the first degree and upon
    25  conviction shall be subject to a fine not to exceed the greater
    26  of ten thousand dollars ($10,000) or three times the amount of
    27  funds wrongfully obtained, or imprisonment for up to five years
    28  or both such fine and imprisonment.
    29     (b)  A person who violates section 1610-A or 1611-A of this
    30  act shall be guilty of a misdemeanor of the first degree and
    19850H1379B3426                 - 10 -

     1  upon conviction shall be subject to a fine not to exceed the
     2  greater of ten thousand ($10,000) or three times the amount of
     3  funds that were wrongfully used or expended or to imprisonment
     4  for up to five years, or to both such fine and imprisonment.
     5     (c)  Except as provided in subsections (a) and (b) of this
     6  section, a person who violates any provision of this act shall
     7  be guilty of a misdemeanor of the third degree and upon
     8  conviction shall be subject to a fine of not more than one
     9  thousand dollars ($1,000) or imprisonment for up to one year or
    10  both.
    11     Section 2.  This act shall be applicable to returns of
    12  taxpayers of calendar years commencing January 1, 1985 1986, and  <--
    13  thereafter. Pennsylvania Fair Campaign funding shall be first
    14  provided for candidates for Statewide judicial office in the
    15  primary election in April of 1986 GENERAL ELECTION OF NOVEMBER    <--
    16  1987 and in each primary, municipal and general election
    17  thereafter.
    18     Section 3.  This act shall take effect immediately.








    E30L25JLW/19850H1379B3426       - 11 -