PRINTER'S NO. 971

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 876 Session of 1995


        INTRODUCED BY KUKOVICH, CURRY, LEVDANSKY, CONTI, BATTISTO,
           CAPPABIANCA, CAWLEY, COWELL, DeLUCA, FAJT, GORDNER, HANNA,
           JOSEPHS, LAUGHLIN, MANDERINO, MARKOSEK, MASLAND, MELIO,
           MICHLOVIC, MIHALICH, MUNDY, STABACK, STEELMAN, STETLER,
           STURLA, TANGRETTI, THOMAS, TIGUE, VAN HORNE, VITALI AND
           BELFANTI, FEBRUARY 27, 1995

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 27, 1995

                                     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," further defining "independent expenditure";
    12     further providing for reporting; providing for funding of
    13     certain Statewide elections; limiting certain contributions;
    14     imposing powers and duties on the Department of State; and
    15     providing penalties.

    16     The General Assembly of the Commonwealth of Pennsylvania
    17  hereby enacts as follows:
    18     Section 1.  Section 1621(e) of the act of June 3, 1937,
    19  (P.L.1333, No.320), known as the Pennsylvania Election Code,
    20  added October 4, 1978 (P.L.893, No.171), is amended to read:
    21     Section 1621.  Definitions.--As used in this article, the
    22  following words have the following meanings:


     1     * * *
     2     (e)  The words "independent expenditure" shall mean an
     3  expenditure by a person [made for the purpose of influencing an
     4  election without cooperation or consultation with any candidate
     5  or any political committee authorized by that candidate and
     6  which is not made in concert with or at the request or
     7  suggestion of any candidate or political committee or agent
     8  thereof.] or political committee, other than a candidate's
     9  campaign committee, that expressly advocates the election or
    10  defeat of a clearly identified candidate, that is made without
    11  cooperation or consultation with any candidate or committee or
    12  agent of the candidate and that is not made in concert with or
    13  at the request or suggestion of a candidate or any committee or
    14  agent of the candidate. An expenditure is not an independent
    15  expenditure if any of the following applies:
    16     (1)  Any officer, member, employe or agent of the political
    17  committee making the expenditure is also an officer, member,
    18  employe or agent of the committee of the candidate whose
    19  election or whose opponent's defeat is being advocated by the
    20  expenditure or an agent of the candidate whose election or whose
    21  opponent's defeat is being advocated by the expenditure.
    22     (2)  There is an arrangement, coordination or direction with
    23  respect to the expenditure between the candidate or the
    24  candidate's agent and the person making the expenditure,
    25  including any officer, director, employe or agent of that
    26  person.
    27     (3)  In the same election, the person making the expenditure,
    28  including any officer, director, employe or agent of that
    29  person, is or has been:
    30     (i)  Authorized to raise or expend moneys on behalf of the
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     1  candidate or the candidate's authorized committees.
     2     (ii)  Receiving any form of compensation or reimbursement
     3  from the candidate, the candidate's committees or the
     4  candidate's agent.
     5     (4)  The expenditure is based on information about the
     6  candidate's plans, projects or needs or those of his campaign
     7  committee, provided to the expending person by the candidate or
     8  by the candidate's agents or any officer, member or employe of
     9  the candidate's campaign committee with a view toward having the
    10  expenditure made.
    11     * * *
    12     Section 2.  Section 1626(a) and (j) of the act, added October
    13  4, 1978 (P.L.893, No.171) and July 21, 1979 (P.L.189, No.63),
    14  are amended to read:
    15     Section 1626.  Reporting by Candidate and Political
    16  Committees and other Persons.--
    17     (a)  Each treasurer of a political committee and each
    18  candidate for election to public office shall file with the
    19  appropriate supervisor reports of receipts and expenditures on
    20  forms, designed by the Secretary of the Commonwealth, if the
    21  amount received or expended or liabilities incurred shall exceed
    22  the sum of two hundred fifty dollars ($250) regardless if the
    23  amount received or expended is for one candidate or a number of
    24  candidates. Should such an amount not exceed two hundred fifty
    25  dollars ($250), then the candidate or the treasurer of the
    26  committee shall file a sworn statement to that effect with the
    27  appropriate supervisor rather than the report required by this
    28  section.
    29     * * *
    30     (j)  All "Political Action Committees" shall report to the
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     1  Secretary of the Commonwealth and the respective county board of
     2  elections all expenditures to or made on behalf of, any State-
     3  wide candidate, candidate for the Pennsylvania House of
     4  Representatives, or candidate for the State Senate, in the same
     5  manner as indicated in this section as a candidate's political
     6  committee. This provision shall be in addition to any other
     7  filing and reporting provisions of this act which apply to such
     8  committees, their treasurers and chairmen.
     9     Section 3.  Section 1628 of the act, amended July 11, 1980
    10  (P.L.600, No.128), is amended to read:
    11     Section 1628.  Late Contributions and Independent
    12  Expenditures.--
    13     (a)  Any candidate or political committee, authorized by a
    14  candidate and created solely for the purpose of influencing an
    15  election on behalf of that candidate, which receives any
    16  contribution or pledge of five hundred dollars ($500) or more,
    17  and any person making an independent expenditure, as defined by
    18  this act, of five hundred dollars ($500) or more after the final
    19  pre-election report has been deemed completed shall report such
    20  contribution, pledge or expenditure to the appropriate
    21  supervisor by telegram or mailgram. Such telegram or mailgram
    22  shall be sent by the candidate, chairman or treasurer of the
    23  political committee within twenty-four (24) hours of receipt of
    24  the contribution. It shall be the duty of the supervisor to
    25  confirm the substance of such telegram or mailgram. Any
    26  candidate in his own behalf, or chairman, treasurer or candidate
    27  in behalf of the political committee may also comply with this
    28  section by appearing personally before such supervisor and
    29  reporting such late contributions or pledges.
    30     (b)  In addition to the information concerning independent
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     1  expenditures reported by a person or political committee under
     2  section 1626, a person or political committee that makes
     3  independent expenditures relating to any one candidate or office
     4  within thirty (30) days before the day of any election to which
     5  the expenditures relate and which aggregate five hundred dollars
     6  ($500) shall report the independent expenditures within twenty-
     7  four (24) hours or by 5 o'clock P.M. the day following a weekend
     8  or holiday of when the expenditure is made. If a person or
     9  political committee makes an independent expenditure for
    10  campaign literature or an advertisement, the person or political
    11  committee making the expenditure shall also send by certified
    12  mail a copy of the campaign literature or advertisement to each
    13  candidate named or otherwise referred to in the literature or
    14  advertisement within twenty-four (24) hours or by 5 o'clock P.M.
    15  the day following a weekend or holiday of the expenditure or
    16  distribution.
    17     (c)  An independent expenditure report filed under subsection
    18  (b) shall be filed with the supervisor prescribed in section
    19  1626 and shall contain all of the following:
    20     (1)  The name and address of any person to whom an
    21  independent expenditure was made.
    22     (2)  The date and amount of the independent expenditure.
    23     (3)  The purpose of the independent expenditure, including a
    24  description of what was purchased.
    25     (4)  The name of each candidate whose election or defeat was
    26  advocated by the expenditure and, for each candidate, the office
    27  sought by the candidate and the year of the election.
    28     (5)  The names, occupations, employers and amount contributed
    29  by all contributors of two hundred fifty dollars ($250) or more.
    30  If any of these contributors is a political committee, the
    19950H0876B0971                  - 5 -

     1  report shall include the names, occupations and employers of the
     2  committee's chairman and treasurer.
     3     (6)  Under penalty of perjury, a certification stating that
     4  the claimed independent expenditure is not made in cooperation,
     5  consultation or concert with or at the request or suggestion of
     6  any candidate or any campaign committee or agent of that
     7  candidate.
     8     (7)  A copy of any literature or advertisement or other
     9  communication, including an advertisement in an electronic or
    10  print medium, that was purchased with the independent
    11  expenditure.
    12     (d)  If a person or political committee makes an independent
    13  expenditure of less than five hundred dollars ($500) for
    14  campaign literature or an advertisement for the purpose of
    15  influencing an election, including an advertisement in
    16  electronic or print media, in the last thirty (30) days
    17  preceding the election or if an independent expenditure is made
    18  for campaign literature or advertisements that are distributed
    19  during the last thirty (30) days preceding the election, the
    20  person or political committee making the expenditure shall file
    21  a copy of the campaign literature or advertisement with the
    22  Secretary of the Commonwealth within twenty-four (24) hours of
    23  the expenditure or distribution.
    24     (e)  Filing by electronic facsimile or by telegram is
    25  permissible.
    26     (f)  An expenditure by a political committee or a person that
    27  does not meet the definition of an independent expenditure is an
    28  in-kind contribution to the candidate and a corresponding
    29  expenditure by the candidate unless otherwise exempted.
    30     (g)  A person who violates this section is subject to a civil
    19950H0876B0971                  - 6 -

     1  penalty of three (3) times the cost of the literature or
     2  advertisement that was distributed in violation of this section.
     3     Section 4.  The act is amended by adding a section to read:
     4     Section 1633.1.  Contributions or Expenditures by
     5  Partnerships.--It is unlawful for any partnership operating
     6  under the laws of this State or any other state or any foreign
     7  country to make a contribution or expenditure in connection with
     8  any State-wide judicial office. Furthermore, it shall be
     9  unlawful for any candidate running for State-wide judicial
    10  office, political committee or other person to knowingly accept
    11  or receive any contribution prohibited by this section or for
    12  any partner of any partnership to consent to any contribution or
    13  expenditure prohibited by this section.
    14     Section 5.  The act is amended by adding an article to read:
    15                           ARTICLE XVI-A
    16                  Pennsylvania Fair Campaign Fund
    17     Section 1601-A.  Definitions.--As used in this article, the
    18  following words have the following meanings:
    19     "Declaration of candidacy" shall mean the point in a person's
    20  campaign for political office at which that person becomes in
    21  compliance with section 1622.
    22     "Department" shall mean the Department of State of the
    23  Commonwealth.
    24     "Fund" shall mean the Pennsylvania Fair Campaign Fund
    25  established under section 1604-A.
    26     "Major political party" shall mean a political party whose
    27  candidate for Governor received either the highest or second
    28  highest number of votes in the preceding gubernatorial election.
    29     "Secretary" shall mean the Secretary of the Commonwealth.
    30     Section 1602-A.  Application of Article.--Except as provided
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     1  in section 1613-A, the provisions of this article shall be
     2  applicable to candidates for the following State-wide offices
     3  who elect to apply for campaign funding under this article:
     4     (1)  Supreme Court Justice.
     5     (2)  Superior Court Judge.
     6     (3)  Commonwealth Court Judge.
     7     Section 1603-A.  Administration.--The provisions of this
     8  article shall be administered by the department. The department
     9  may adopt rules and regulations as may be necessary for the
    10  implementation of this article.
    11     Section 1604-A.  Pennsylvania Fair Campaign Fund
    12  Established.--There is hereby established a special restricted
    13  receipts fund in the State Treasury to be known as the
    14  Pennsylvania Fair Campaign Fund. Payments shall be made into
    15  this fund pursuant to section 1605-A and disbursements shall be
    16  made from the fund only upon the warrant of the secretary and a
    17  warrant of the State Treasurer. As much of the moneys in the
    18  fund as are necessary to make payments to candidates as provided
    19  in this article are appropriated from the Pennsylvania Fair
    20  Campaign Fund to the Department of State on a continuing basis
    21  for the purpose of such payments. No moneys of the General Fund
    22  shall be used for the purposes of the Pennsylvania Fair Campaign
    23  Fund.
    24     Section 1605-A.  Allocation of Certain Tax Proceeds to
    25  Fund.--Beginning with tax years commencing January 1, 1996, and
    26  thereafter, each individual subject to the tax imposed by
    27  Article III of the act of March 4, 1971 (P.L.6, No.2), known as
    28  the "Tax Reform Code of 1971," whose tax liability for the year
    29  is one dollar ($1)or more may designate one dollar ($1) of his
    30  personal income taxes to be paid into the Pennsylvania Fair
    19950H0876B0971                  - 8 -

     1  Campaign Fund. In the case of married taxpayers filing a joint
     2  return, each spouse may designate one dollar ($1) to be paid
     3  into the Pennsylvania Fair Campaign Fund if their tax liability
     4  is two dollars ($2) or more. All of these designated tax
     5  revenues shall be paid into the fund. The check-off and
     6  instructions shall be prominently displayed on the first page of
     7  the tax return form. The instructions shall readily indicate
     8  that these designations neither increase nor decrease an
     9  individual's tax liability.
    10     Section 1606-A.  Certification of Moneys in Fund.--By June 30
    11  of each year, the State Treasurer shall certify to the
    12  department the current balance available in the fund.
    13     Section 1607-A.  Qualification for Funding.--(a)  Any
    14  candidate for office as described in section 1602-A may apply
    15  for funding under this article if the candidate meets the
    16  contributory thresholds established in subsection (b) and
    17  otherwise conforms to the requirements of this article. No
    18  candidate shall be obligated to apply for funding under this
    19  article and if any candidate elects not to apply, the provisions
    20  of this article pertaining to limits on expenditures or the use
    21  of his personal funds shall be inapplicable to the person and
    22  his candidacy. Any candidate electing to receive funding under
    23  this article shall declare his intention to do so and specify
    24  the office for which he is a candidate. No candidate may elect
    25  to receive funding under this article for a general or municipal
    26  election unless the candidate elected to receive funding under
    27  this article for the primary election. A candidate who is
    28  nominated by his party to fill a vacancy which occurs after the
    29  primary or who is placed on the ballot by petition and qualifies
    30  for funding pursuant to section 1607(b) is eligible to receive
    19950H0876B0971                  - 9 -

     1  funding under this article for a general or municipal election.
     2  Any and all committees authorized to receive contributions or
     3  make expenditures for the candidate who has so declared shall
     4  abide by the provisions of section 1613-A. Any candidate who for
     5  any reason has his name withdrawn from the ballot for an
     6  election, after receipt of funds under this article, shall
     7  return to the fund all unspent money received from the
     8  Pennsylvania Fair Campaign Fund.
     9     (b)  (1)  In order to qualify for funding in a general
    10  election, a candidate must receive subsequent to the date of
    11  that candidate's primary election but prior to the date of that
    12  candidate's general election qualifying contributions of the
    13  following amounts:
    14         Office              Qualifying Contributions Required
    15      (i)  Supreme Court Justices        $30,000
    16      (ii)  Superior Court Judges         30,000
    17      (iii)  Commonwealth Court Judges    30,000
    18     (2)  In order to qualify for funding in a primary election, a
    19  candidate must receive prior to the date of the primary
    20  election, but subsequent to January 1 of the year in which that
    21  candidate runs for office, one-half of the amount specified in
    22  clause (1) for the appropriate office.
    23     (3)  (i)  The term "qualifying contribution" shall include
    24  any contribution, as defined in section 1621(b), which has all
    25  of the following characteristics:
    26     (A)  Made by an individual resident of Pennsylvania.
    27     (B)  Made by a written instrument which indicates the
    28  contributor's full name and mailing address and is not intended
    29  to be returned to the contributor or transferred to another
    30  political committee or candidate.
    19950H0876B0971                 - 10 -

     1     (ii)  If a contributor receives goods or services of value in
     2  return for his contribution, the qualifying contribution shall
     3  be calculated as the original contribution, minus the fair
     4  market value of the goods or services received.
     5     (iii)  Contributions by an individual which exceed two
     6  hundred fifty dollars ($250) in the aggregate shall be deemed
     7  only a two hundred fifty dollar ($250) qualifying contribution
     8  for the purposes of this section and for the matching payment
     9  provisions of section 1608-A.
    10     (c)  The department shall select an auditor pursuant to the
    11  provisions of section 1635(a). Each candidate who elects to
    12  apply for funding under this article shall provide evidence that
    13  the candidate has raised the qualifying contributions required
    14  by this section which evidence shall be verified and certified
    15  as correct to the department by the auditor selected under this
    16  article. The department shall establish a deadline for the
    17  certification and a process for verification by the auditor
    18  selected under this article.
    19     Section 1608-A.  Funding Formula.--(a)  Every candidate who
    20  qualifies for funding for either the primary or the general
    21  election pursuant to section 1607-A shall receive matching
    22  payments from the fund in the amount of one dollar ($1) for each
    23  dollar of qualifying contribution as defined in section 1607-
    24  A(b)(3).
    25     (b)  (1)  Only those qualifying contributions made during the
    26  period between January 1 of the year in which the candidate runs
    27  for office and the primary election shall be eligible for
    28  matching payments from the fund for the primary election.
    29     (2)  Only those qualifying contributions made during the
    30  period between the primary election and the general election of
    19950H0876B0971                 - 11 -

     1  the year in which that candidate runs for office shall be
     2  eligible for matching payments from the fund for the general
     3  election.
     4     (c)  Matching funds shall not be provided for any qualifying
     5  contributions unless the reporting requirements of section
     6  1626(b) are satisfied.
     7     Section 1609-A.  Limitations on Funding.--(a)  Every
     8  candidate who qualifies for and receives funding pursuant to the
     9  formula established in section 1608-A shall be entitled to
    10  receive no more than the maximum amount specified in subsection
    11  (b) for the office the candidate is seeking.
    12     (b)  (1)  The maximum amount of funding available for the
    13  general election for each candidate under this article shall be
    14  as follows:
    15             Office              Maximum Pennsylvania Fair
    16                                      Campaign Funding
    17     (i)  Supreme Court Justices           $150,000
    18     (ii)  Superior Court Judges            150,000
    19     (iii)  Commonwealth Court Judges       150,000
    20     (2)  The maximum amount of funding available for the primary
    21  election for each candidate under this article shall be one-half
    22  the appropriate figure in clause (1).
    23     (c)  Notwithstanding any other provisions of this article no
    24  funding shall be provided to the following:
    25     (1)  Candidates in the general election who have been
    26  nominated by both major political parties.
    27     (2)  Candidates in the primary election who are unopposed for
    28  the nomination.
    29     Section 1610-A.  Time of Payments.--(a)  Beginning ninety
    30  (90) days prior to the relevant primary or general election, the
    19950H0876B0971                 - 12 -

     1  department shall make payments authorized by this article at
     2  least every two (2) weeks. However, except for the final
     3  payment, no payment shall be due or paid if the payment does not
     4  equal at least five thousand dollars ($5,000) in amount.
     5     (b)  If in the secretary's opinion insufficient funds exist
     6  in the fund to provide the anticipated full funding to eligible
     7  candidates in a given primary or general election, the
     8  department shall distribute the available funds to qualified
     9  candidates on a pro-rata basis. In determining whether
    10  sufficient funds are available, the secretary shall not take
    11  into consideration the needs of any subsequent primary or
    12  general elections but shall base the decision solely on the
    13  immediate primary or election at hand.
    14     Section 1611-A.  Use of Funds by Candidates.--(a)  Funds
    15  distributed to candidates pursuant to this article may be used
    16  only for the election for which they are distributed and only
    17  for the purposes set forth in section 1634.1 except that no fund
    18  moneys may be used:
    19     (1)  To transfer to other candidates or to committees of
    20  other candidates or to political committees.
    21     (2)  To pay for expenditures incurred after the date of the
    22  general election.
    23     (b)  Funds distributed to a candidate pursuant to this
    24  article shall be placed in a single bank account. Expenditures
    25  from this account shall be made only for campaign expenses
    26  listed in subsection (a).
    27     Section 1612-A.  Expenditures.--(a)  Expenditures made by a
    28  candidate and his authorized committees, for all purposes and
    29  from all sources, including, but not limited to, amounts of
    30  funds distributed under this article, proceeds of loans, gifts,
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     1  contributions from any source or personal funds, subsequent to
     2  the date of the primary election, but prior to the date of the
     3  general election, may not exceed the amounts specified below:
     4           Office                Total Expenditure Limits
     5     (i)  Justice of the
     6           Supreme Court               $300,000
     7     (ii)  Judge of the
     8           Superior Court               300,000 
     9     (iii)  Judge of the
    10           Commonwealth Court           300,000
    11     (b)  Expenditures made by a candidate and his authorized
    12  committees, subsequent to January 1 of the year in which the
    13  candidate runs for office but prior to the date of the primary
    14  election, may not exceed one-half of the amount specified in
    15  subsection (a).
    16     (c)  Notwithstanding any other provision of this article, a
    17  candidate who accepts public funding pursuant to the formula
    18  established in section 1608-A, but whose major political party
    19  opponent in a general or municipal election elects not to apply
    20  for the public funding, shall not be bound by the expenditure
    21  limits specified in this section. A candidate who accepts public
    22  funding shall be eligible to qualify for those fair campaign
    23  funds which would have otherwise been available to an opponent
    24  who has chosen not to apply for funding from the Pennsylvania
    25  Fair Campaign Fund.
    26     (d)  Notwithstanding any other provision of this article, a
    27  candidate who accepts public funding pursuant to the formula
    28  established in section 1608-A, but whose major political party
    29  opponents in a primary election elect to not apply for the
    30  public funding, shall not be bound by the expenditure limits
    19950H0876B0971                 - 14 -

     1  specified in this section. If there is more than one candidate
     2  in a major political party in a primary election, the fair
     3  campaign funds which would have otherwise been available to each
     4  opponent who has elected to not apply for the public funding
     5  shall be divided equally among the candidates who accept public
     6  financing.
     7     Section 1613-A.  Limitations on Certain Contributions.--(a)
     8  Any candidate for the office of Justice of the Supreme Court or
     9  Judge of the Superior Court or Commonwealth Court shall not
    10  accept contributions from an individual or political action
    11  committee which in the aggregate exceed two hundred fifty
    12  dollars ($250) for any primary, general or special election.
    13  However, the candidate and spouse may contribute up to thirty
    14  thousand dollars ($30,000) in the aggregate for each primary,
    15  general or special election in which that candidate is running
    16  for office.
    17     (b)  Any candidate for the office of Governor, Lieutenant
    18  Governor, Auditor General, Attorney General, State Treasurer,
    19  Senate or House of Representatives shall not accept
    20  contributions which in the aggregate exceed the following limits
    21  for any primary, general or special election in which that
    22  candidate is running for office:
    23             Contributor                          Limit
    24     (1)  Individual                             $ 1,000
    25     (2)  Political action committee
    26          as defined in section 1621(1)            5,000
    27     (c)  A gift, subscription, loan, advance or deposit of money
    28  or anything of value to a candidate shall be considered a
    29  contribution both by the original source of the contribution and
    30  by any intermediary or conduit if the intermediary or conduit--
    19950H0876B0971                 - 15 -

     1  (1) exercises any control or any direction over the making of
     2  the contribution; or (2) solicits the contribution or arranges
     3  for the contribution to be made and directly or indirectly makes
     4  the candidate aware of such intermediary or conduit's role in
     5  soliciting or arranging the contribution for the candidate.
     6     (d)  For purposes of subsection (c), a contribution shall not
     7  be considered to be a contribution by an intermediary or conduit
     8  to the candidate if-- (1) the intermediary or conduit has been
     9  retained by the candidate's committee for the purpose of fund-
    10  raising and is reimbursed for expenses incurred in soliciting
    11  contributions; (2) in the case of an individual, the candidate
    12  has expressly authorized the intermediary or conduit to engage
    13  in fund-raising, or the individual occupies a significant
    14  position within the candidate's campaign organization; or (3) in
    15  the case of a political committee, the intermediary or conduit
    16  is an authorized committee of the candidate.
    17     (e)  This section shall apply to any candidate for any office
    18  set forth in this section, regardless of whether or not the
    19  candidate receives funding from the fund.
    20     Section 1614-A.  Inflation Indexing of Certain Limitations.--
    21  The dollar figures contained in sections 1607-A, 1609-A and
    22  1612-A shall be adjusted annually during March at a rate equal
    23  to the average percentage change in the All-Urban Consumer Price
    24  Index for the Pittsburgh, Philadelphia and Scranton standard
    25  metropolitan statistical areas as published by the Bureau of
    26  Labor Statistics of the United States Department of Labor, or
    27  any successor agency, occurring in the prior calendar year. The
    28  base year shall be 1994. The average shall be calculated and
    29  certified by the secretary annually by adding the percentage
    30  increase in each of the three areas and dividing by three. The
    19950H0876B0971                 - 16 -

     1  calculation and resulting new figures shall be published in the
     2  Pennsylvania Bulletin during March.
     3     Section 1615-A.  Annual Report.--The secretary shall report
     4  annually to the Governor and the General Assembly on the
     5  operations of funding as provided by this article. This report
     6  shall include, but not be limited to, the revenues and
     7  expenditures in the fund, the amounts distributed to candidates,
     8  the results of any audits performed on candidates in compliance
     9  with this article and any prosecutions brought for violations of
    10  this article.
    11     Section 1616-A.  Return of Excess Funds.--(a)  All unexpended
    12  campaign funds in a candidate's and his authorized committees'
    13  possession sixty (60) days after a primary election shall be
    14  returned to the secretary for deposit in the Pennsylvania Fair
    15  Campaign Fund, up to the amount of the funds which were
    16  distributed to the candidate under this article for the primary
    17  election.
    18     (b)  All unexpended campaign funds in a candidate's and his
    19  authorized committee's possession sixty (60) days after a
    20  general or municipal election shall be returned to the secretary
    21  for deposit in the Pennsylvania Fair Campaign Fund, up to the
    22  amount of the funds which were distributed to the candidate
    23  under this article for the general or municipal election.
    24     Section 1617-A.  Penalties.--(a)  A person who violates the
    25  provisions of this article and who, as a result, obtains funds
    26  under this article to which he is not entitled commits a
    27  misdemeanor of the first degree and shall, upon conviction, be
    28  subject to a fine not to exceed the greater of ten thousand
    29  dollars ($10,000) or three times the amount of funds wrongfully
    30  obtained or to imprisonment for up to five years, or both.
    19950H0876B0971                 - 17 -

     1     (b)  A person who violates section 1611-A or 1612-A commits a
     2  misdemeanor of the first degree and shall, upon conviction, be
     3  subject to a fine not to exceed the greater of ten thousand
     4  dollars ($10,000) or three times the amount of funds that were
     5  wrongfully used or expended or to imprisonment for up to five
     6  years, or both.
     7     (c)  Except as provided in subsections (a) and (b), a person
     8  who violates any provision of this act commits a misdemeanor of
     9  the third degree and shall, upon conviction, be subject to a
    10  fine of not more than one thousand dollars ($1,000) or to
    11  imprisonment for up to one year, or both.
    12     Section 6.  This act shall apply to returns of taxpayers of
    13  calendar years commencing January 1, 1996, and thereafter.
    14  Funding from the Pennsylvania Fair Campaign Fund shall be
    15  provided to candidates for office beginning with the primary
    16  election of 1998 and in each primary, municipal and general
    17  election thereafter.
    18     Section 7.  This act shall take effect immediately.








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