PRINTER'S NO.  3090

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

2193

Session of

2012

  

  

INTRODUCED BY B. BOYLE, BOYD, K. BOYLE, JOSEPHS, KORTZ, M. O'BRIEN AND PASHINSKI, FEBRUARY 13, 2012

  

  

REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 13, 2012  

  

  

  

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

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repealing certain acts and parts of acts relating to

11

elections," further providing for contributions or

12

expenditures by national banks, corporations or

13

unincorporated associations; providing limited campaign

14

funding of Statewide judicial elections; establishing the

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Pennsylvania Fair Campaign Fund; limiting certain

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contributions; providing for powers and duties of the

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Secretary of the Commonwealth and the Department of State;

18

and imposing penalties.

19

The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

21

Section 1.  Section 1633 heading and (a) of the act of June

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3, 1937, known as the Pennsylvania Election Code, amended

23

November 26, 1978 (P.L. 1313, No.318), are amended to read:

24

Section 1633.  Contributions or Expenditures by National

25

Banks, Corporations, Partnerships, or Unincorporated

26

Associations.-–(a)  It is unlawful for any National or State

 


1

bank, any partnership or any corporation, incorporated under the

2

laws of this or any other state or any foreign country, or any

3

unincorporated association, except those corporations formed

4

primarily for political purposes or as a political committee, to

5

make a contribution or expenditure in connection with the

6

election of any candidate or for any political purpose whatever

7

except in connection with any question to be voted on by the

8

electors of this Commonwealth. Furthermore, it shall be unlawful

9

for any candidate, political committee, or other person to

10

knowingly accept or receive any contribution prohibited by this

11

section, or for any officer or any director of any corporation,

12

bank, partnership or any unincorporated association to consent

13

to any contribution or expenditure by the corporation, bank,

14

partnership or unincorporated association, as the case may be,

15

prohibited by this section.

16

Section 2.  The act is amended by adding an article to read:

17

ARTICLE XVI-A

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PENNSYLVANIA FAIR CAMPAIGN FUNDING

19

Section 1601-A.  Legislative intent.

20

This article is intended to protect against corruption or the

21

appearance of corruption.

22

Section 1602-A.  Definitions.

23

The following words and phrases when used in this article

24

shall have the meanings given to them in this section unless the

25

context clearly indicates otherwise:

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

27

"Fund."  The Pennsylvania Fair Campaign Fund established in

28

section 1605-A.

29

"Secretary."  The Secretary of the Commonwealth.

30

Section 1603-A.  Application of article.

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1

The provisions of this article shall be applicable to

2

candidates for the following State-wide offices:

3

(1)  Supreme Court Justice.

4

(2)  Superior Court Judge.

5

(3)  Commonwealth Court Judge.

6

Section 1604-A.  Administration.

7

The provisions of this article shall be administered by the

8

secretary. The secretary may adopt such rules and regulations as

9

may be necessary for the implementation of this article.

10

Section 1605-A.  Pennsylvania Fair Campaign Fund established.

11

There is hereby established a special restricted receipts

12

fund in the State Treasury to be known as the Pennsylvania Fair

13

Campaign Fund. Payments shall be made into the fund pursuant to

14

section 1606-A, and disbursements shall be made from the fund

15

only upon the warrant of the Secretary of the Commonwealth and a

16

warrant of the State Treasurer. As much of the moneys in the

17

fund as are necessary to make payments to candidates as provided

18

in this article are appropriated from the fund to the Department

19

of State for the purpose of such payments.

20

Section 1606-A.  Allocation of certain tax proceeds to fund.

21

(a)  Designation.--Beginning with tax years commencing

22

January 1, 2010, and thereafter, each individual subject to the

23

tax imposed by Article III of the act of March 4, 1971 (P.L.6,

24

No.2), known as the Tax Reform Code of 1971, may designate that

25

$3 be added to the taxpayer's personal income tax liability and

26

be paid into the fund. In the case of married taxpayers filing a

27

joint return, each spouse may designate that $3 be added to that

28

spouse's personal income tax liability and be paid into the

29

fund. A taxpayer who designates a payment under this section

30

shall add the required amount to the payment due the

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1

Commonwealth or subtract the required amount from the refund due

2

the taxpayer, as appropriate. All such designated tax revenues

3

shall be paid into the fund. The check-off and instructions

4

shall be prominently displayed on the first page of the return

5

form. The instructions shall readily indicate that any such

6

designations neither increase or decrease an individual's tax

7

liability.

8

(b)  Attorneys.--An attorney licensed to practice law in this

9

Commonwealth shall make a contribution to the fund of up to $50

10

when applying for or renewing a license to practice law. The

11

license form shall provide a check-off for the attorney to

12

designate the donation. The Court Administrator shall deposit

13

all contributions into the fund.

14

(c)  Additional funds.--In the event that revenues generated

15

under subsections (a) and (b) are insufficient to fully fund the

16

fund, the General Assembly shall allocate sufficient additional

17

moneys from the General Fund to meet the fund's needs.

18

Section 1607-A.  Certification of moneys in fund.

19

By June 30 of each year, the State Treasurer shall certify to

20

the secretary the current balance available in the fund.

21

Section 1608-A.  Qualification for Pennsylvania Fair Campaign

22

funding.

23

(a)  Qualifications.--

24

(1)  Any candidate for Statewide judicial office as

25

described in section 1603-A may apply for Pennsylvania Fair

26

Campaign funding under this article if the candidate meets

27

the contributory thresholds established in subsection (b) and

28

otherwise conforms to the requirements of this article. No

29

candidate shall be obligated to apply for funding under this

30

article, and if any candidate elects not to apply, only the

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1

provisions of this article pertaining to limits on

2

contributions, as set forth in section 1614-A(a), shall be

3

applicable to such person and that person's candidacy. Any

4

candidate electing to receive Pennsylvania Fair Campaign

5

funding must declare the candidate's intention to do so and

6

specify the State office for which he is a candidate. A

7

candidate electing to receive Pennsylvania Fair Campaign

8

funding must declare the candidate's intention to do so upon

9

forming a political action committee.

10

(2)  This declaration shall be filed on a form designed

11

and provided by the department and submitted with the

12

candidate's submission of the candidates' nominating petition

13

to the department. Any and all committees authorized to

14

receive contributions or make expenditures for the candidate

15

who has so declared must abide by the provisions of this

16

article, unless otherwise specified in this article. Any

17

candidate who for any reason has the candidate's name

18

withdrawn from the ballot for a Statewide judicial election,

19

after receipt of Pennsylvania Fair Campaign funds, shall

20

return all moneys received to the fund as well as offering

21

back qualifying contributions for that Statewide judicial

22

office.

23

(b)  Qualifying contributions.--

24

(1)  In order to qualify for Pennsylvania Fair Campaign

25

funding in the general election, a candidate must receive

26

subsequent to the date of the primary election but prior to

27

the date of the general election qualifying contributions of

28

the following amounts:

29

30

  

  

Qualifying

Contributions

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1

Office

Required

2

(i)  Supreme Court Justices

$45,000

3

(ii)  Superior Court Judges

$45,000

4

(iii)  Commonwealth Court Judges

$45,000

5

(2)  A candidate must receive contributions from at least

6

350 contributors in amounts of at least $10.

7

(3)  In order to qualify for Pennsylvania Fair Campaign

8

funding in the primary election, a candidate must receive

9

prior to the date of the primary election, but subsequent to

10

the immediately preceding general election, one-half of the

11

amount specified in paragraph (1) for the appropriate office.

12

The threshold number of contributors shall be one-half the

13

number designated in paragraph (2).

14

(4)  (i)  The term "qualifying contribution" shall

15

include any contribution, as defined in section 1621(b),

16

which has all of the following characteristics:

17

(A)  Made by an individual resident of

18

Pennsylvania or by a political action committee, as

19

defined in section 1621(l), whose address is in

20

Pennsylvania.

21

(B)  Made by a written instrument which indicates

22

the contributor's full name and mailing residence and

23

is not intended to be returned to the contributor or

24

transferred to another political committee or

25

candidate.

26

(ii)  If a contributor receives goods or services of

27

value in return for a contribution, the qualifying

28

contribution shall be calculated as the original

29

contribution, minus the fair market value of the goods or

30

services received.

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(iii)  Any contribution which exceeds $500 in the

2

aggregate shall be deemed only a $500 qualifying

3

contribution for the purposes of this section and for the

4

matching payment provisions of section 1609-A.

5

(c)  Auditor.--The secretary shall select an auditor pursuant

6

to the provisions of section 1635(a). Each candidate who elects

7

to apply for Pennsylvania Fair Campaign funding shall provide

8

evidence that the candidate has raised the qualifying

9

contributions required by this section, which evidence shall be

10

verified and certified as correct to the secretary by the

11

auditor selected under this subsection.

12

Section 1609-A.  Pennsylvania Fair Campaign funding formula.

13

(a)  Matching payments.--Every candidate who qualifies for

14

Pennsylvania Fair Campaign funding for either the primary or the

15

general election pursuant to section 1608-A shall receive

16

matching payments from the fund in the amount of $2.50 for each

17

dollar of qualifying contribution as defined in section 1608-

18

A(b)(3).

19

(b)  Calculation.--The $2.50 matching payment for each dollar

20

of qualifying contributions provided by this section shall be

21

provided only for qualifying contributions raised which exceed

22

the threshold amounts specified in section 1608-A(b) and not to

23

those qualifying contributions which are attributable to meeting

24

such threshold amounts necessary to qualify for Pennsylvania

25

Fair Campaign funding.

26

(c)  Time frames.--

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(1)  Only those contributions made during the period

28

between a declaration of candidacy and the primary election

29

shall be eligible for matching payments from the fund for the

30

primary election.

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1

(2)  Only those contributions made during the period

2

between the primary election and the general election shall

3

be eligible for matching payments from the fund for the

4

general election.

5

Section 1610-A.  Limitations on Pennsylvania Fair Campaign

6

funding.

7

(a)  Limit.--Every candidate who qualifies for and receives

8

Pennsylvania Fair Campaign funding pursuant to the formula

9

established in section 1609-A shall be entitled to receive no

10

more than the maximum amount specified in subsection (b) for the

11

office the candidate is seeking.

12

(b)  General election.--

13

(1)  The maximum amount of Pennsylvania Fair Campaign

14

funding available for the general election for each candidate

15

under this article shall be as follows:

16

17

18

  

  

Office

Maximum 

Pennsylvania Fair

Campaign Funding

19

(i)  Supreme Court Justices

$200,000

20

(ii)  Superior Court Judges

$200,000

21

22

(iii)  Commonwealth Court

Judges

$200,000

23

(2)  The maximum amount of Pennsylvania Fair Campaign

24

funding available for the primary election for each candidate

25

under this article shall be one-half of the appropriate

26

figure in paragraph (1).

27

(3)  If a participating candidate is identified in

28

negative advertisements by an entity other than a candidate

29

for the same office, the participating candidate may qualify

30

for additional moneys from the fund up to an amount equal to

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1

50% of the maximum provided in paragraphs (1) and (2). The

2

secretary shall determine the appropriate supplemental amount

3

to be distributed by identifying the amount spent by the

4

noncandidate advertising campaign and dividing the amount by

5

two.

6

(c)  Prohibitions.--Notwithstanding any other provisions of

7

this article, no Pennsylvania Fair Campaign funding shall be

8

provided to the following:

9

(1)  Candidates in the general election who have been

10

nominated by both major political parties.

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(2)  Candidates in the primary election who are unopposed

12

for the nomination with the exception of those candidates who

13

are running in a judicial retention election.

14

(d)  Definition.--As used in this section, "major political

15

party" shall mean a political party whose candidate for Governor

16

received either the highest or second highest number of votes in

17

the preceding gubernatorial election.

18

Section 1611-A.  Time of payments.

19

(a)  General rule.--Beginning 120 days prior to the relevant

20

primary or general election, the secretary shall make payments

21

authorized by this article at least every two weeks. However,

22

except for the final payment, no payment shall be due or paid if

23

the payment does not equal at least $5,000 in amount.

24

(b)  Insufficient funds.--If in the secretary's opinion

25

insufficient funds exist in the fund to provide the anticipated

26

full funding to eligible candidates in a given primary or

27

general election, the secretary shall distribute the available

28

funds to qualified candidates on a pro rata basis. In

29

determining whether sufficient funds are available, the

30

secretary shall not take into consideration the needs of any

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1

subsequent primary or general elections but shall base the

2

decision solely on the immediate primary or election at hand.

3

Section 1612-A.  Use of Pennsylvania Fair Campaign funds by

4

candidates.

5

(a)  Use.--Pennsylvania Fair Campaign funds distributed to

6

candidates pursuant to this article may be used only for the

7

election for which they are distributed and only for direct

8

expenses incurred exclusively for influencing the outcome of the

9

election.

10

(b)  Prohibitions.--No fund moneys may be used:

11

(1)  To transfer to other candidates or to candidate

12

political committees, political action committees or

13

multicandidate committees.

14

(2)  To pay for expenditures incurred after the date of

15

the general election.

16

(3)  For anything not directly or tangibly related to the

17

participating candidate's campaign.

18

(c)  Single account.--Pennsylvania Fair Campaign funds

19

distributed to a candidate pursuant to this article shall be

20

placed in a single bank account. Expenditures from this account

21

shall be made only for campaign expenses listed in subsection

22

(a).

23

Section 1613-A.  Expenditures.

24

(a)  Prior to general election.--Expenditures made by a

25

candidate who accepts Pennsylvania Fair Campaign funding and the

26

candidate's authorized committees, for all purposes and from all

27

sources, including, but not limited to, amounts of Pennsylvania

28

Fair Campaign funds distributed under this article, proceeds of

29

loans, gifts, contributions from any source or personal funds,

30

subsequent to the date of the primary election, but prior to the

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1

date of the general election, may not exceed $325,000.

2

(b)  Prior to primary election.--Expenditures made by a

3

candidate and the candidate's authorized committees, subsequent

4

to January 1 but prior to the date of the primary election, may

5

not exceed one-half of the amount specified in subsection (a).

6

(c)  Exception.--Notwithstanding any other provision of this

7

article, a candidate who accepts public funding pursuant to the

8

formula established in section 1609-A, but whose major political

9

party opponent elects not to apply for such public funding,

10

shall not be bound by the expenditure limits specified in this

11

section.

12

Section 1614-A.  Limitations on certain contributions.

13

(a)  Limits.--No candidate for a Statewide judicial office

14

shall accept contributions for any primary, general or special

15

election which exceed those specified limits as follows:

16

(1)  Individual, up to $1,000 in the aggregate.

17

(2)  Political action committees and candidate's

18

political committees as defined in section 1621(l), as

19

follows:

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(i)  those with ten or fewer donors up to the amount

21

established in paragraph (1) for an individual;

22

(ii)  those with 11 to 50 donors up to double the

23

amount established in paragraph (1) for an individual;

24

(iii)  those with 51 to 100 donors up to triple the

25

amount established in paragraph (1) for an individual;

26

(iv)  those with 101 to 1000 donors up to quadruple

27

the amount established in paragraph (1) for an

28

individual; and

29

(v)  those with 1001 or more donors up to quintuple

30

the amount established in paragraph (1) for an

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1

individual.

2

(3)  For the purposes of this section, a "donor" is any

3

one individual or any one political committee, regardless of

4

the number of times the individual or committee has made

5

donations.

6

(4)  Political party committees may contribute to any

7

judicial candidate an amount up to ten times that permitted

8

for the largest political action committee.

9

(b)  Personal funds.--Any candidate for a Statewide judicial

10

office who accepts Pennsylvania Fair Campaign funding may not

11

spend in aggregate more than $25,000 of the candidate's own and

12

the candidate's spouse's personal funds for each primary,

13

general or special election. If the candidate does not accept

14

Pennsylvania Fair Campaign funding, this limit shall not apply.

15

(c)  Aggregate contributions.--Aggregate contributions during

16

the year of the election by a political party committee or

17

candidate's political committee to candidates receiving

18

Pennsylvania Fair Campaign funds shall not exceed the sum of

19

contributions from individuals to the committee, provided that

20

whenever contributions in the aggregate during the year of the

21

election from an individual exceed $1,000 only $1,000 shall be

22

included in that sum.

23

(d)  Prohibition.--No person shall make or offer, and no

24

candidate or political committee affiliated with a candidate

25

shall accept, any contribution after 5 p.m. on the day prior to

26

the general election. This prohibition shall remain in effect

27

until the year in which the judicial candidate next seeks

28

retention.

29

Section 1615-A.  Inflation indexing of certain limitations.

30

The dollar figures contained in sections 1608-A, 1610-A and

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1

1613-A may be adjusted not more than once annually during March

2

at a rate equal to the average percentage change in the All-

3

Urban Consumer Price Index for the Pittsburgh, Philadelphia and

4

Scranton standard metropolitan statistical areas as published by

5

the Bureau of Labor Statistics of the United States Department

6

of Labor, or any successor agency, occurring in the prior

7

calendar year. The base year shall be 2010. The average shall be

8

calculated and certified by the secretary annually by adding the

9

percentage increase in each of the three areas and dividing by

10

three. The calculation and any resulting new figures shall be

11

published in the Pennsylvania Bulletin during March.

12

Section 1616-A.  Annual report.

13

The secretary shall report annually to the Governor and the

14

General Assembly on the operations of Pennsylvania Fair Campaign

15

funds as provided by this article. The report shall include, but

16

not be limited to, the revenues and expenditures in the fund,

17

the amounts distributed to candidates, the results of any audits

18

performed on candidates in compliance with the provisions of

19

this article and any prosecutions brought for violations of this

20

article.

21

Section 1617-A.  Return of excess funds.

22

All unexpended campaign funds in a candidate's and his

23

authorized committees' possession 60 days after the election

24

shall be returned to the secretary for deposit in the

25

Pennsylvania Fair Campaign Fund, up to the amount of the funds

26

which were distributed to the candidate under this article.

27

Section 1618-A.  Penalties.

28

(a)  Wrongful obtaining of funds.--A person who violates the

29

provisions of this article and who, as a result, obtains

30

Pennsylvania Fair Campaign funds to which the person is not

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1

entitled commits a misdemeanor of the first degree and shall,

2

upon conviction, be sentenced to pay a fine of not more than

3

$10,000 or three times the amount of funds wrongfully obtained

4

or to imprisonment for not more than five years, or both, and

5

forfeiture of office.

6

(b)  Wrongful use or expenditure.--A person who violates

7

section 1612-A or 1613-A commits a misdemeanor of the first

8

degree, and shall, upon conviction, be sentenced to pay a fine

9

of not more than $10,000 or three times the amount of funds that

10

were wrongfully used or expended or to imprisonment for not more

11

than five years, or both, and forfeiture of office.

12

(c)  Other violation.--Except as provided in subsections (a)

13

and (b), a person who violates any provision of this article

14

commits a misdemeanor of the third degree and shall, upon

15

conviction, be subject to a fine of not more than $1,000 or to

16

imprisonment for not more than one year, or both, and forfeiture

17

of office.

18

Section 3.  The addition of Article XVI-A of the act shall

19

apply to returns of taxpayers for calendar years commencing

20

January 1, 2012, and thereafter. Pennsylvania Fair Campaign

21

funding shall be first provided for candidates for Statewide

22

judicial office in the general election of November 2013 and in

23

each primary, municipal and general election thereafter.

24

Section 4.  This act shall take effect immediately.

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