PRIOR PRINTER'S NOS. 1684, 2453, 3426         PRINTER'S NO. 3612

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 AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 10, 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, 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
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     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  MAY DESIGNATE THAT ONE DOLLAR AND FIFTY CENTS ($1.50) BE ADDED    <--
     6  TO HIS OR HER PERSONAL INCOME TAX LIABILITY AND BE PAID INTO THE
     7  PENNSYLVANIA FAIR CAMPAIGN FUND. IN THE CASE OF MARRIED
     8  TAXPAYERS FILING A JOINT RETURN, EACH SPOUSE MAY DESIGNATE THAT
     9  ONE DOLLAR AND FIFTY CENTS ($1.50) BE ADDED TO THEIR PERSONAL
    10  INCOME TAX LIABILITY AND BE PAID INTO SAID FUND. A TAXPAYER WHO
    11  DESIGNATES PAYMENT UNDER THIS SECTION SHALL ADD THE REQUIRED
    12  AMOUNT TO THE PAYMENT DUE THE COMMONWEALTH OR SUBTRACT THE
    13  REQUIRED AMOUNT FROM THE REFUND DUE THE TAXPAYER, AS
    14  APPROPRIATE. ALL SUCH designated tax revenues shall be paid into
    15  the Pennsylvania Fair Campaign Fund. The check-off and
    16  instructions shall be prominently displayed on the first page of
    17  the return form. The instructions shall readily indicate that
    18  any such designations neither increase or decrease an
    19  individual's tax liability.
    20     Section 1605-A.  Certification of Moneys in Pennsylvania Fair
    21  Campaign Fund.--By June 30 of each year, the State Treasurer
    22  shall certify to the secretary the current balance available in
    23  the Pennsylvania Fair Campaign Fund.
    24     Section 1606-A.  Qualification for Pennsylvania Fair Campaign
    25  Funding.--(a)  Any candidate for State-wide judicial office as
    26  described in section 1601-A may apply for Pennsylvania Fair
    27  Campaign funding under this article if such candidate meets the
    28  contributory thresholds established in subsection (b) and
    29  otherwise conforms to the requirements of this article. No
    30  candidate shall be obligated to apply for funding hereunder and
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     1  if any candidate elects not to apply, ONLY the provisions of      <--
     2  this article PERTAINING TO LIMITS ON CONTRIBUTIONS, AS SET FORTH  <--
     3  IN SECTION 1612-A(A) shall be inapplicable APPLICABLE to such     <--
     4  person and their candidacy. Any candidate electing to receive
     5  Pennsylvania Fair Campaign funding must declare his intention to
     6  do so and specify the State office for which he is a candidate.
     7  Any and all committees authorized to receive contributions or
     8  make expenditures for the candidate who has so declared must
     9  abide by the provisions of section 1612-A THIS ARTICLE, UNLESS    <--
    10  OTHERWISE SPECIFIED HEREIN. Any candidate who for any reason has
    11  his name withdrawn from the ballot for a State-wide judicial
    12  election, after receipt of Pennsylvania Fair Campaign funds,
    13  shall return all moneys received to the fund as well as offering
    14  back qualifying contributions for that State-wide judicial
    15  office.
    16     (b)  (1)  In order to qualify for Pennsylvania Fair Campaign
    17  funding in the general election, a candidate must receive
    18  subsequent to the date of the primary election but prior to the
    19  date of the general election qualifying contributions of the
    20  following amounts:
    21         Office              Qualifying Contributions Required
    22     (i)  Supreme Court Justices         $25,000
    23     (ii)  Superior Court Judges          25,000
    24     (iii)  Commonwealth Court Judges     25,000
    25     (2)  In order to qualify for Pennsylvania Fair Campaign
    26  funding in the primary election, a candidate must receive prior
    27  to the date of the primary election, but subsequent to the
    28  immediately preceding general election, one-half of the amount
    29  specified in clause (1) for the appropriate office.
    30     (3)  (i)  The term "qualifying contribution" shall include
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     1  any contribution, as defined in section 1621(b), which has all
     2  of the following characteristics:
     3     (A)  Made by an individual resident of Pennsylvania or by a
     4  political action committee, as defined in section 1621(l), whose
     5  address is in Pennsylvania.
     6     (B)  Made by a written instrument which indicates the
     7  contributor's full name and mailing residence and is not
     8  intended to be returned to the contributor or transferred to
     9  another political committee or candidate.
    10     (ii)  If a contributor receives goods or services of value in
    11  return for his contribution, the qualifying contribution shall
    12  be calculated as the original contribution, minus the fair
    13  market value of the goods or services received.
    14     (iii)  Any contribution which exceeds one hundred dollars
    15  ($100.00) in the aggregate shall be deemed only a one hundred
    16  dollar ($100.00) qualifying contribution for the purposes of
    17  this section and for the matching payment provisions of section
    18  1607-A.
    19     (c)  The secretary shall select an auditor pursuant to the
    20  provisions of section 1635(a). Each candidate who elects to
    21  apply for Pennsylvania Fair Campaign funding shall provide
    22  evidence that such candidate has raised the qualifying
    23  contributions required by this section which evidence shall be
    24  verified and certified as correct to the secretary by the
    25  auditor selected hereunder.
    26     Section 1607-A.  Pennsylvania Fair Campaign Funding
    27  Formula.--(a)  Every candidate who qualifies for Pennsylvania
    28  Fair Campaign funding for either the primary or the general
    29  election pursuant to section 1606-A shall receive matching
    30  payments from said fund in the amount of two dollars and fifty
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     1  cents ($2.50) for each dollar of qualifying contribution as
     2  defined in section 1606-A(b)(3).
     3     (b)  The two dollars and fifty cents ($2.50) for each dollar
     4  of qualifying contributions provided by this section shall be
     5  provided only for qualifying contributions raised which exceed
     6  the threshold amounts specified in section 1606-A(b) and not to
     7  those qualifying contributions which are attributable to meeting
     8  such threshold amounts necessary to qualify for Pennsylvania
     9  Fair Campaign funding.
    10     (c)  (1)  Only those qualifying contributions made during the
    11  period between a declaration of candidacy and the primary
    12  election shall be eligible for matching payments from said fund
    13  for the primary election.
    14     (2)  Only those qualifying contributions made during the
    15  period between the primary election and the general election
    16  shall be eligible for matching payments from said fund for the
    17  general election.
    18     Section 1608-A.  Limitations on Pennsylvania Fair Campaign
    19  Funding.--(a)  Every candidate who qualifies for and receives
    20  Pennsylvania Fair Campaign funding pursuant to the formula
    21  established in section 1607-A shall be entitled to receive no
    22  more than the maximum amount specified in subsection (b) for the
    23  office such candidate is seeking.
    24     (b)  (1)  The maximum amount of Pennsylvania Fair Campaign
    25  funding available for the general election for each candidate
    26  under this article shall be as follows:
    27             Office                       Maximum Pennsylvania
    28                                         Fair Campaign Funding
    29     (i) Supreme Court Justices              $100,000
    30     (ii)  Superior Court Judges              100,000
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     1     (iii)  Commonwealth Court Judges         100,000
     2     (2)  The maximum amount of Pennsylvania Fair Campaign funding
     3  available for the primary election for each candidate under this
     4  article shall be one-half the appropriate figure in clause (1).
     5     (c)  Notwithstanding any other provisions of this article, no
     6  Pennsylvania Fair Campaign funding shall be provided to the
     7  following:
     8     (1)  Candidates in the general election who have been
     9  nominated by both major political parties.
    10     (2)  Candidates in the primary election who are unopposed for
    11  the nomination with the exception of those candidates who are
    12  running in a judicial retention election.
    13     (d)  As used in this article, "major political party" shall
    14  mean a political party whose candidate for Governor received
    15  either the highest or second highest number of votes in the
    16  preceding gubernatorial election.
    17     Section 1609-A.  Time of Payments.--(a)  Beginning ninety
    18  (90) days prior to the relevant primary or general election, the
    19  secretary shall make payments authorized by this article at
    20  least every two (2) weeks. However, except for the final
    21  payment, no payment shall be due or paid if the payment does not
    22  equal at least five thousand dollars ($5,000) in amount.
    23     (b)  If in the secretary's opinion insufficient funds exist
    24  in the Pennsylvania Fair Campaign Fund to provide the
    25  anticipated full funding to eligible candidates in a given
    26  primary or general election, the secretary shall distribute the
    27  available funds to qualified candidates on a pro-rata basis. In
    28  determining whether sufficient funds are available, the
    29  secretary shall not take into consideration the needs of any
    30  subsequent primary or general elections but shall base the
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     1  decision solely on the immediate primary or election at hand.
     2     Section 1610-A.  Use of Pennsylvania Fair Campaign Funds by
     3  Candidates.--(a)  Pennsylvania Fair Campaign funds distributed
     4  to candidates pursuant to this article may be used only for the
     5  election for which they are distributed and only for the
     6  purposes set forth in section 1634.1, except that no fund moneys
     7  may be used:
     8     (1)  To transfer to other candidates or to committees of
     9  other candidates, but this prohibition shall not apply to funds
    10  transferred to committees of major political parties.
    11     (2)  To pay for expenditures incurred after the date of the
    12  general election.
    13     (b)  Pennsylvania Fair Campaign funds distributed to a
    14  candidate pursuant to this article shall be placed in a single
    15  bank account. Expenditures from this account shall be made only
    16  for campaign expenses listed in subsection (a).
    17     Section 1611-A.  Expenditures.--(a)  Expenditures made by a
    18  candidate WHO ACCEPTS PENNSYLVANIA FAIR CAMPAIGN FUNDING and his  <--
    19  authorized committees, for all purposes and from all sources,
    20  including, but not limited to, amounts of Pennsylvania Fair
    21  Campaign funds distributed under this article, proceeds of
    22  loans, gifts, contributions from any source or personal funds,
    23  subsequent to the date of the primary election, but prior to the
    24  date of the general election, may not exceed three hundred
    25  thousand dollars ($300,000).
    26     (b)  Expenditures made by a candidate and his authorized
    27  committees, subsequent to January 1 but prior to the date of the
    28  primary election, may not exceed one-half of the amount
    29  specified in subsection (a).
    30     (c)  Notwithstanding any other provision of this article, a
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     1  candidate who accepts public funding pursuant to the formula
     2  established in section 1607-A, but whose major political party
     3  opponent elects not to apply for such public funding, shall not
     4  be bound by the expenditure limits specified in this section.
     5     Section 1612-A.  Limitations on Certain Contributions.--(a)
     6  Any candidate for a State-wide judicial office WHO APPLIES FOR    <--
     7  AND RECEIVES PUBLIC FUNDING shall not accept contributions for
     8  each primary, general or special election which exceed those
     9  specified limits as follows:
    10     (1)  Candidate and spouse, up to twenty-five thousand dollars  <--
    11  ($25,000).
    12     (2) (1)  Individual, up to two hundred fifty dollars ($250)    <--
    13  ONE THOUSAND DOLLARS ($1,000).                                    <--
    14     (3) (2)  Partnerships, up to two hundred fifty dollars ($250)  <--
    15  ONE THOUSAND DOLLARS ($1,000).                                    <--
    16     (4) (3)  Political action committees as defined in section     <--
    17  1621(l), no more than two hundred fifty dollars ($250) per        <--
    18  political action committee or no more than a total amount based
    19  upon fifty cents (50¢) per contributing member of the political
    20  action committee, whichever amount is higher; the membership of
    21  the political action committee to be based upon the number of
    22  contributing members in the immediately preceding calendar year:
    23  Provided, however, That a contribution based upon a total amount
    24  of fifty cents (50¢) per contributing member of the political
    25  action committee cannot exceed five thousand dollars ($5,000) UP  <--
    26  TO ONE THOUSAND DOLLARS ($1,000).
    27     (B)  ANY CANDIDATE FOR A STATE-WIDE JUDICIAL OFFICE WHO
    28  ACCEPTS PENNSYLVANIA FAIR CAMPAIGN FUNDING MAY NOT SPEND OVER
    29  TWENTY-FIVE THOUSAND DOLLARS ($25,000) OF HIS OWN AND HIS
    30  SPOUSE'S PERSONAL FUNDS FOR EACH PRIMARY, GENERAL OR SPECIAL
    19850H1379B3612                  - 9 -

     1  ELECTION. IF SUCH CANDIDATE DOES NOT ACCEPT PENNSYLVANIA FAIR
     2  CAMPAIGN FUNDING, THIS LIMIT SHALL NOT APPLY.
     3     (b) (C)  Aggregate contributions during the year of the        <--
     4  election by a political party committee or candidate's political
     5  committee to candidates receiving Pennsylvania Fair Campaign
     6  funds shall not exceed the sum of contributions from individuals
     7  to the committee, provided that whenever contributions in the
     8  aggregate during the year of the election from an individual
     9  exceed one thousand dollars ($1,000), only one thousand dollars
    10  ($1,000) shall be included in that sum.
    11     Section 1613-A.  Inflation Indexing of Certain Limitations.--
    12  The dollar figures contained in sections 1606-A, 1608-A and
    13  1611-A shall be adjusted annually during March at a rate equal
    14  to the average percentage change in the All-Urban Consumer Price
    15  Index for the Pittsburgh, Philadelphia and Scranton standard
    16  metropolitan statistical areas as published by the Bureau of
    17  Labor Statistics of the United States Department of Labor, or
    18  any successor agency, occurring in the prior calendar year. The
    19  base year shall be 1984. The average shall be calculated and
    20  certified by the secretary annually by adding the percentage
    21  increase in each of the three areas and dividing by three. The
    22  calculation and resulting new figures shall be published in the
    23  Pennsylvania Bulletin during March.
    24     Section 1614-A.  Annual Report.--The secretary shall report
    25  annually to the General Assembly and the Governor on the
    26  operations of Pennsylvania Fair Campaign funds as provided by
    27  this article. Such report shall include, but not be limited to,
    28  the revenues and expenditures in the fund, the amounts
    29  distributed to candidates, the results of any audits performed
    30  on candidates in compliance with the provisions of this article
    19850H1379B3612                 - 10 -

     1  and any prosecutions brought for violations of this article.
     2     Section 1615-A.  Return of Excess Funds.--All unexpended
     3  campaign funds in a candidate's and his authorized committees'
     4  possession sixty (60) days after the election shall be returned
     5  to the secretary for deposit in the Pennsylvania Fair Campaign
     6  Fund, up to the amount of the funds which were distributed to
     7  the candidate under this article.
     8     Section 1616-A.  Penalties.--(a)  A person who violates the
     9  provisions of this act and who, as a result, obtains
    10  Pennsylvania Fair Campaign funds to which he is not entitled
    11  shall be guilty of a misdemeanor of the first degree and upon
    12  conviction shall be subject to a fine not to exceed the greater
    13  of ten thousand dollars ($10,000) or three times the amount of
    14  funds wrongfully obtained, or imprisonment for up to five years
    15  or both such fine and imprisonment.
    16     (b)  A person who violates section 1610-A or 1611-A of this
    17  act shall be guilty of a misdemeanor of the first degree and
    18  upon conviction shall be subject to a fine not to exceed the
    19  greater of ten thousand ($10,000) or three times the amount of
    20  funds that were wrongfully used or expended or to imprisonment
    21  for up to five years, or to both such fine and imprisonment.
    22     (c)  Except as provided in subsections (a) and (b) of this
    23  section, a person who violates any provision of this act shall
    24  be guilty of a misdemeanor of the third degree and upon
    25  conviction shall be subject to a fine of not more than one
    26  thousand dollars ($1,000) or imprisonment for up to one year or
    27  both.
    28     Section 2.  This act shall be applicable to returns of
    29  taxpayers of calendar years commencing January 1, 1986, and
    30  thereafter. Pennsylvania Fair Campaign funding shall be first
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     1  provided for candidates for Statewide judicial office in the
     2  general election of November 1987 and in each primary, municipal
     3  and general election thereafter.
     4     Section 3.  This act shall take effect immediately.


















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