Regular Session 2017-2018 Senate Bill 0011 P.N. 0313

PRINTER'S NO. 313

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

Session of

2017

INTRODUCED BY COSTA, BLAKE, LEACH, FONTANA, BREWSTER, SCHWANK,

YUDICHAK, FARNESE, HAYWOOD, HUGHES AND BOSCOLA,

FEBRUARY 15, 2017

REFERRED TO STATE GOVERNMENT, FEBRUARY 15, 2017

AN ACT

Amending the act of June 3, 1937 (P.L.1333, No.320), entitled

"An act concerning elections, including general, municipal,

special and primary elections, the nomination of candidates,

primary and election expenses and election contests; creating

and defining membership of county boards of elections;

imposing duties upon the Secretary of the Commonwealth,

courts, county boards of elections, county commissioners;

imposing penalties for violation of the act, and codifying,

revising and consolidating the laws relating thereto; and

repealing certain acts and parts of acts relating to

elections," in Secretary of the Commonwealth, further

providing for powers and duties of the Secretary of the

Commonwealth; in primary and election expenses, further

providing for definitions, for organization of political

committees, for registration and for reporting, providing for

limitations on contributions, further providing for late

filing fees and certificates of filing, for contributions or

expenditures by national banks, corporations or

unincorporated associations and for reports by business

entities and publication and providing for independent

expenditures and for corporate political accountability.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The General Assembly finds and declares that:

(1) The Commonwealth has a compelling governmental

interest to protect the integrity of the government from

actual corruption or the appearance of corruption.

(2) When people, associations or other entities provide

unlimited monetary support for elected government officials

or candidates who are seeking governmental offices, there

arises the appearance of corruption.

(3) The appearance of corruption and actual corruption

can be prevented by regulating the contributions that can be

made to elected governmental officials and candidates who are

seeking governmental offices.

Section 2. Section 201 of the act of June 3, 1937 (P.L.1333,

No.320), known as the Pennsylvania Election Code, is amended by

adding a subsection to read:

Section 201. Powers and Duties of the Secretary of the

Commonwealth.--The Secretary of the Commonwealth shall exercise

in the manner provided by this act all powers granted to him by

this act, and shall perform all the duties imposed upon him by

this act, which shall include the following:

* * *

(i) To biennially adjust the limitations on contributions

under section 1627.1(r).

Section 3. Section 1621(d) of the act is amended and the

section is amended by adding subsections to read:

Section 1621. Definitions.--As used in this article, the

following words have the following meanings:

* * *

(d) The word "expenditure" shall mean any of the following:

(1) The payment, distribution, loan or advancement of money

or any valuable thing by a candidate, candidate committee,

political committee, political action committee, political party

committee or other person for the purpose of influencing the

outcome of a nomination or an election[;]: Provided, however,

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That such payment, distribution, loan or advancement of money or

any valuable thing shall be made only for expenses directly and

exclusively incurred for the campaign in which the candidate is

running in the contemporaneous election cycle and that no

expenditure of funds from campaign accounts shall be used for

any personal purpose.

(2) The payment, distribution, loan, advance or transfer of

money or other valuable thing between or among political

committees[;].

(3) The providing of a service or other valuable thing for

the purpose of influencing the outcome of a nomination or

election of any person to any public office to be voted for in

this Commonwealth[; or].

(4) The payment or providing of money or other valuable

thing by any person other than a candidate or political

committee, to compensate any person for services rendered to a

candidate or political committee.

* * *

(n) The words "affiliate" or "affiliated committee" shall

include:

(1) Any committee established or authorized by a candidate

as part of his or her campaign for a specific campaign for a

designated office.

(2) Any committee established, financed, maintained or

controlled by the same corporation, labor organization,

membership association, not-for-profit organization or trade or

professional association, person or group of persons, including

any parent, subsidiary, branch, division, department or local

unit thereof. Local units may include, in appropriate cases, a

franchisee, licensee or regional association.

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(o) The words "in-kind contribution" shall mean a

contribution of goods, services, property or any valuable thing

offered free or at less than the fair market value for such

goods, property or services, but shall not include any legal or

accounting services rendered to or on behalf of any political

committee of a political party, an authorized committee of a

candidate or any other political committee, if such services are

solely for the purpose of ensuring compliance with this article.

Such legal or accounting services, however, shall be reported

under section 1631.

(p) The words "personal purpose" shall mean a purpose that,

by its nature, confers a personal benefit, including

expenditures such as a home mortgage, home rent, utility

payment, clothing purchase, noncampaign automobile expense,

country club membership, vacation or a trip of a noncampaign

nature, household food items, tuition payments, admission to a

sporting event, concert, theater or other form of entertainment

and other such expenditures not specifically and directly

necessary for the conduct of the campaign.

(q) The words "clearly identified" are satisfied if:

(1) the name of the candidate appears;

(2) a photograph, drawing or other image of the candidate

appears; or

(3) the identity of the candidate or ballot question is

apparent by unambiguous reference.

(r) The word "person" shall include any corporation,

partnership, limited liability company, business trust, other

association, government entity, other than the Commonwealth,

estate, trust, foundation or natural person.

Section 4. Sections 1622 and 1624 of the act are amended to

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read:

Section 1622. Organization of Political Committees;

Treasurer and Assistant Treasurer; Records of Candidate and

Committees.--

(a) Every political committee shall have a treasurer and a

chairman. No contribution shall be received nor shall any

expenditure be made when there is a vacancy in either one of

these offices. All money received and disbursed by a political

committee must be done through the treasurer of the committee.

(b) Every candidate who authorizes a committee [or

committees,] to receive and disburse funds on behalf of this

candidacy, shall name a sole treasurer[, irrespective of the

number of committees so authorized,] to receive and disburse all

funds [for] of said [committees. Nothing herein shall be

construed to prohibit a candidate from receiving or expending

moneys on his behalf or a treasurer of a political party

committee or a committee authorized to receive and distribute

funds on behalf of more than one (1) candidate from receiving or

expending moneys on behalf of said candidates, notwithstanding

the appointment of a sole treasurer. A sole treasurer may

delegate authority, in writing, to any number of assistant

treasurers to receive and disburse moneys collected on behalf of

a candidate for election. Nothing in this section shall prohibit

authorized individuals from selling tickets or soliciting funds

when funds are deposited in the campaign account of the

candidate] committee.

names and addresses of each person from whom a contribution of

over ten dollars ($10) has been received and a record of all

other information required to be reported pursuant to this act.

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All such records shall be retained by the candidate or treasurer

for a period of three (3) years after such information is

reported as required by this act.

(d) Any person receiving any contribution on behalf of a

political committee or candidate shall turn such contributions

over to the treasurer of that committee or the candidate within

ten (10) days of its receipt.

Section 1624. Registration.--

(a) Any political committee which receives contributions in

an aggregate amount of two hundred fifty dollars ($250) or more

shall file a registration statement, designed by the Secretary

of the Commonwealth, with the appropriate supervisor within

twenty (20) days after the date on which it receives such

amount. Each committee in existence shall have sixty (60) days

from the effective date of this amendatory act to comply with

the requirements of this section.

(b) Each registration statement shall contain the following

information:

(1) The name, addresses and phone numbers of the political

committee.

(2) The name, address and phone number of the committee's

treasurer.

(3) The name, address and phone number of the committee's

chairman.

(4) The names, addresses and relationships of other

affiliated or connected organizations.

(5) The candidates, if any, and their names and addresses.

(6) The ballot question, if any, which the committee intends

to support or oppose.

(7) The banks, safety deposit boxes or other repositories

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and their addresses used by the committee.

(8) The proposed period of operation of the committee.

(9) A political committee which is established, financed,

maintained or controlled by a sponsoring organization such as a

corporation, labor organization, membership association, not-

for-profit organization or trade or professional association

shall include in its registered name the full name of its

sponsoring organization.

any changes in the information contained in subsection (b)

within thirty (30) days of that change.

(d) No political committee which receives an aggregate

amount of contributions of two hundred fifty dollars ($250) or

more may make a contribution to any candidate or political

committee unless it has registered with the appropriate

supervisor.

Section 5. Section 1626(a), (b), (d) and (g) of the act are

amended and the section is amended by adding a subsection to

read:

Section 1626. Reporting by Candidate and Political

Committees and other Persons.--

(a) Each treasurer of a political committee and each

candidate for election to public office shall file with the

appropriate supervisor reports of receipts and expenditures on

forms, designed by the Secretary of the Commonwealth, if the

amount received or expended or liabilities incurred shall exceed

the sum of two hundred fifty dollars ($250). Should such an

amount not exceed two hundred fifty dollars ($250), then the

candidate or, in the case of a political committee, the

treasurer of the committee shall file a sworn statement to that

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effect with the appropriate supervisor rather than the report

required by this section[.]: Provided, however, That if the

amount received or expended by a candidate does not exceed two

hundred fifty dollars ($250) he or she may comply with this

section by signing an affidavit to that effect on his or her

political committee's report or statement.

(b) Each report shall include the following information:

(1) The full name, mailing address, specific occupation and

specific name of the employer, if any, or the principal place of

business, if self-employed, of each person who has made one or

more contributions to or for such committee or candidate within

the reporting period in an aggregate amount or value in excess

of [two hundred fifty dollars ($250)] one hundred dollars

($100), together with the amount and date of such contributions.

The accuracy of the information furnished to the candidate or

committee shall be the responsibility of the contributor.

(2) The full name and mailing address of each person [who]

and political committee that has made one or more contributions

to or for such committee or candidate within the reporting

period in an aggregate amount or value in excess of fifty

dollars ($50), together with the amount and date of such

contributions. The accuracy of the information furnished by the

contributor shall be the responsibility of the contributor.

(3) The total sum of individual contributions made to or for

such committee or candidate during the reporting period and not

reported under clauses (1) and (2).

(4) Each and every expenditure, the date made, the full name

and address of the person to whom made and the purpose for which

such expenditure was made. In the event the creditor is a credit

card company or like instrumentality that is an intermediary for

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collecting payments due, it shall not be sufficient to list the

name of the collecting organization. The report shall identify

the credit card company and also the specific entities and

payments being paid through the credit card company or like

entity. In the event the payment is being made by a committee to

a creditor for expenses on behalf of one or more candidates, the

amounts of payments and purposes of the payments shall be broken

down to identify each candidate's share of the incurred

expenses.

(5) Any unpaid debts and liabilities, with the nature and

amount of each, the date incurred and the full name and address

of the person owed.

(6) The account shall include any unexpended balance of

contributions or other receipts appearing from the last account

filed.

(7) Identification of political committees:

(i) If the contributor is a political committee, the

official registration number of the committee must be included

on the contribution check or in the case of an electronic

transfer within the documentation sent to the candidate

providing notice to the electronic transfer of funds.

(ii) The official registration number of the committee shall

be included on the disclosure report filed by the committee.

(iii) The official committee registration number shall be

included on each entry for that committee on a candidate's

disclosure report.

* * *

(d) Pre-election reports by candidates for offices to be

voted for by the electors of the State at large, candidates for

the office of Senator in the General Assembly, candidates for

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the office of Representative in the General Assembly and all

political committees, which have expended money for the purpose

of influencing the election of such [candidate] candidates,

shall be filed not later than the sixth Tuesday before and the

second Friday before an election, provided that the initial pre-

election report shall be complete as of fifty (50) days prior to

the election and the subsequent pre-election report shall be

complete as of fifteen (15) days prior to the election. Pre-

election reports by all other candidates and political

committees which have received contributions or made

expenditures for the purpose of influencing an election shall be

filed not later than the second Friday before an election,

provided that such report be complete as of fifteen (15) days

prior to the election.

(d.1) During nonelection years in which subsection (d) is

not operative, an elected official or announced candidate for

any elective office shall file quarterly reports if he or she

receives more than two hundred fifty dollars ($250) during the

respective calendar quarter. Reports shall be due thirty (30)

days after the end of each calendar quarter and shall be

complete through the final day of the calendar quarter the

report covers.

* * *

(g) [Every] Except as provided under section 1644, every

person, other than a political committee or candidate, who makes

independent expenditures expressly advocating the election or

defeat of a clearly identified candidate, or question appearing

on the ballot, other than by contribution to a political

committee or candidate, in an aggregate amount in excess of [one

hundred dollars ($100)] one thousand dollars ($1,000) during a

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calendar year shall file with the appropriate supervisor, on a

form prepared by the Secretary of the Commonwealth, a report

which shall include the same information required of a candidate

or political committee receiving such a contribution and,

additionally, the name of the candidate or question supported or

opposed. Reports required by this subsection shall be filed on

dates on which reports by political committees making

expenditures are required to report under this section.

* * *

Section 6. The act is amended by adding a section to read:

Section 1627.1. Limitations on Certain Contributions.--

(a) Aggregate contributions, including in-kind

contributions, from any individual to any candidate for the

office of Senator or Representative in the General Assembly,

court of common pleas or a county or local office, or to the

candidate's committee or agent, may not exceed one thousand five

hundred dollars ($1,500) for each election. Furthermore, for

each election, a candidate and the candidate's committee or

agent may not accept or receive more than one thousand five

hundred dollars ($1,500) in aggregate contributions, including

in-kind contributions from any individual for each election.

(b) Aggregate contributions, including in-kind

contributions, from any individual to any candidate for

Statewide office, his authorized committee or agent, may not

exceed five thousand dollars ($5,000) for each election.

Furthermore, for each election, no candidate, his authorized

committee or agent may accept or receive more than five thousand

dollars ($5,000) in aggregate contributions, including in-kind

contributions from any individual for each election.

20170SB0011PN0313 - 11 -

kind contributions, from a single political action committee,

its affiliate or agent or candidate's political committee, its

affiliate or agent to any candidate for Statewide office, the

office of Senator or Representative in the General Assembly,

court of common pleas or a county or local office, his

authorized committee or agent, may not exceed ten thousand

dollars ($10,000). For each election, no candidate for such

office, nor the candidate's committee or agent, may accept or

receive more than the applicable amount or amounts as specified

in this subsection in aggregate contributions, including in-kind

contributions, from a single political action committee or agent

or candidate's political committee. A donor is an individual or

a single committee regardless of the number of contributions

made by that individual or committee during the election cycle.

(d) Contributions from political party committees to a

political action committee, other party committee or other

committee may not exceed ten thousand dollars ($10,000) for each

election.

(e) A candidate for the office of Senator or Representative

in the General Assembly, judge of a court of common pleas or a

county or local office, or the candidate's committee or agent

may not accept in excess of two hundred and fifty thousand

dollars ($250,000) in aggregate contributions, including in-kind

contributions from all political party committees, affiliates or

agents. Such contributions, in the aggregate, received by a

candidate, may not exceed the aggregate contributions made by

individuals per election.

(f) Except for a candidate for the office of Governor, a

candidate for Statewide office, his authorized committee or

agent may not accept in excess of one million dollars

20170SB0011PN0313 - 12 -

($1,000,000) in aggregate contributions, including in-kind

contributions from all political party committees, affiliates or

agents. A candidate for Governor, his authorized committee or

agent may not accept in excess of five million dollars

($5,000,000) in aggregate contributions, including in-kind

contributions from all political party committees, affiliates or

agents. Furthermore, such contributions in aggregate received by

a candidate may not exceed the aggregate contributions made by

individuals per election.

(g) Aggregate contributions, including in-kind

contributions, from any person or a single political action

committee, its affiliate or agent or any single candidate's

political committee, its affiliate or agent to a single

political action committee, its affiliate or agent, may not

exceed ten thousand dollars ($10,000) during any calendar year.

Furthermore, for each election, no political action committee,

its affiliate or agent may accept or receive more than ten

thousand dollars ($10,000) in aggregate contributions, including

in-kind contributions, from any individual person or a single

political action committee, its affiliate or agent during any

calendar year.

(h) Aggregate contributions from any individual, person or a

single candidate's political committee, its affiliate or agent

or a single political action committee, its affiliate or agent

or any other political committee to a single political party

committee may not exceed twenty-five thousand dollars ($25,000)

in a calendar year. Furthermore, no single political party

committee may accept or receive more than twenty-five thousand

dollars ($25,000) in aggregate contributions from any

individual, person, single candidate's political committee or

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agent or a single political action committee, its affiliate or

agent, any political committee or other committee in a calendar

year.

(i) A gift, subscription, loan, advance or deposit of money

or anything of value to a candidate shall be considered a

contribution both by the original source of the contribution and

by any intermediary or conduit if the intermediary or conduit:

(1) exercises any direction over the making of the

contribution; or

(2) solicits the contribution or arranges for the

contribution to be made and directly or indirectly makes the

candidate aware of such intermediary or conduit's role in

soliciting or arranging the contribution for the candidate.

(j) For purposes of subsection (i), a contribution shall not

be considered to be a contribution by an intermediary or conduit

to the candidate if any of the following situations occurs:

(1) The intermediary or conduit has been retained by the

candidate's committee for the purpose of fundraising and is

reimbursed for expenses incurred in soliciting contributions.

(2) In the case of an individual, the candidate has

expressly authorized the intermediary or conduit to engage in

fundraising, or the individual occupies a position within the

candidate's campaign organization and is authorized by the

organization to engage in fundraising.

(3) In the case of a political committee, the intermediary

or conduit is the authorized committee of the candidate.

(k) The following shall apply to out-of-State contributions:

(1) No candidate, candidate committee, party committee,

political action committee or political committee may accept a

campaign contribution from an out-of-State political action

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committee if the political action committee's home state has

less restrictive disclosure laws than this Commonwealth, except

as provided under paragraph (2).

(2) A candidate, candidate committee, party committee,

political action committee or political committee may accept a

campaign contribution from an out-of-State political action

committee if that political action committee is registered in

this Commonwealth with the Department of State and, by such

registration, has affirmed that the contributor will comply with

the contribution, expenditure and reporting requirements of this

act, as well as the regulations relating to contributions,

expenditures and reporting promulgated under this act by the

Department of State and the State Ethics Commission.

(3) The Secretary of the Commonwealth shall list and certify

those states that have less restrictive disclosure laws than the

Commonwealth. The list shall be compiled and updated annually

and published in the Pennsylvania Bulletin not later than

January 1, 2018, and each January 1 thereafter. The list shall

be made available on the Department of State's publicly

accessible Internet website and provided in hard copy in

campaign committee packets prepared by the department.

(l) The provisions of this section are applicable to any

contribution made for the purpose of influencing an election to

any public office in this Commonwealth except Federal offices.

(m) For purposes of this section, any contribution made to a

candidate in a year other than the calendar year in which the

election is held with respect to which such contribution is made

is considered to be made during the calendar year in which the

election is held.

(n) For purposes of this section, contribution limits shall

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apply to each election separately, whether a primary, special,

municipal or general election, unless an annual limit or other

limit is specified.

(o) No person who has a fiduciary contract for services with

the General Assembly may engage in campaign finance activity for

candidates of the General Assembly, including, but not limited

to, making of contributions, fundraising activities or

involvement in political action committees or candidate

political committees.

(p) Nothing in this section shall prohibit a municipality,

including a city of the first class, from instituting lower

limitations on contributions to candidates for elected offices

under the municipality's jurisdiction.

(q) A violation of the contribution limits set forth in this

section shall subject the violator to a fine equal to three

times the amount of money that exceeds the limits. This penalty

applies to both the person making the contribution and the

person receiving it.

(r) The Secretary of the Commonwealth shall biennially

adjust to the nearest one hundred dollars ($100) the limits in

subsections (a), (b), (c), (d), (e), (f), (g) and (h) by the

percentage change in the Consumer Price Index and publish the

new amounts in the Pennsylvania Bulletin. For the purposes of

this subsection, "Consumer Price Index" means the Consumer Price

Index for all urban consumers that is published by the United

States Department of Labor, Bureau of Labor Statistics.

(s) The limitations imposed by this section may not apply to

contributions from a candidate's personal resources to a

candidate committee, political committee or political action

committee acting on behalf of the candidate. However, if such

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contributions total one hundred thousand dollars ($100,000) or

more, regardless of the time period over which such

contributions are made, the contribution limits set forth in

this section shall quadruple.

Section 7. Sections 1632(a) and 1633(a) of the act are

amended to read:

Section 1632. Late Filing Fee; Certificate of Filing.--

(a) A late filing fee for each report or statement of

expenditures and contributions which is not filed within the

prescribed period shall be imposed as follows. Such fee shall be

[ten dollars ($10)] twenty dollars ($20) for each day or part of

a day excluding Saturdays, Sundays and holidays that a report is

overdue. An additional fee of ten dollars ($10) is due for each

of the first six (6) days that a report is overdue. [The maximum

fee payable with respect to a single report is two hundred fifty

dollars ($250).] A supervisor shall receive an overdue report or

statement even if any late filing fee due has not been paid but

the report or statement shall not be considered filed until all

fees have been paid upon the receipt by the supervisor of an

overdue report. No further late filing fees shall be incurred

once the report or statement is filed notwithstanding the fact

that the report or statement is not considered filed. The late

filing fee is the personal liability of the candidate or

treasurer of a political committee and cannot be paid from

contributions to the candidate or committee, nor may such fee be

considered an expenditure. A report or statement of expenditures

and contributions shall be deemed to have been filed within the

prescribed time if the letter transmitting the report or

statement which is received by the supervisor is transmitted by

first class mail and is postmarked by the United States Postal

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Service on the day prior to the final day on which the report or

statement is to be received: Provided, That this sentence shall

not be applicable to the reporting requirements contained in

section 1628. All Department of State filing and disclosure

requirements for prior campaign activity must have been met in

order for a candidate to obtain a place on the ballot.

* * *

Section 1633. Contributions or Expenditures by National

Banks, Corporations or Unincorporated Associations.--(a) It is

unlawful for any National or State bank, partnership or any

corporation, incorporated under the laws of this or any other

state or any foreign country or any unincorporated association,

except those corporations formed primarily for political

purposes or as a political committee, to make a contribution or

expenditure in connection with the election of any candidate or

for any political purpose whatever except in connection with any

question to be voted on by the electors of this Commonwealth.

Furthermore, it shall be unlawful for any candidate, political

committee, or other person to knowingly accept or receive any

contribution prohibited by this section, or for any officer or

any director of any corporation, bank, or any unincorporated

association to consent to any contribution or expenditure by the

corporation, bank or unincorporated association, as the case may

be, prohibited by this section. In the event any portion of this

section regarding bans on contributions or expenditures by

national banks, corporations, or unincorporated associations is

nullified by a court decision, then the contribution limits

established for individuals by this act also shall be applied to

the entities currently covered by this section.

* * *

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Section 8. Section 1641(a) of the act is amended and the

section is amended by adding a subsection to read:

Section 1641. Reports by Business Entities; Publication by

Secretary of the Commonwealth.--

(a) Any business entity including but not limited to a

corporation, company, association, partnership or sole

proprietorship, which has been awarded [non-bid] contracts or

grants over fifty thousand dollars ($50,000) from the

Commonwealth or its political subdivisions during the preceding

[calendar year] two-year period, shall report by February 15 of

each year to the Secretary of the Commonwealth a list including

the amount of the contract, description of the service provided

and location and an itemized list of all political contributions

known to the business entity by virtue of the knowledge

possessed by every officer, director, associate, partner,

limited partner or individual owner that has been made by:

(1) any officer, director, associate, partner, limited

partner, individual owner or members of their immediate family

when the contributions exceed an aggregate of one thousand

dollars ($1,000) by any individual during the preceding year; or

(2) any employe or members of his immediate family whose

aggregate political [contribution] contributions exceeded one

thousand dollars ($1,000) during the preceding year.

For the purposes of this subsection, "immediate family" means a

person's spouse and any unemancipated child.

* * *

Department of General Services, shall publish a list of all

business entities, corporations, companies, associations,

partnerships or sole proprietorships receiving grants and

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contracts in excess of fifty thousand dollars ($50,000) from the

Commonwealth not later than January 31 of each year for the

preceding two-year period. The list shall be updated quarterly.

Section 9. The act is amended by adding sections to read:

Section 1643. Independent Expenditures.--

(a) A person may make independent expenditures for the

purposes of advocating the election or defeat of a clearly

identified candidate or ballot question.

(b) The following shall apply to expenditures made for a

written, typed or other printed communication or a web-based,

written communication which promotes the success or defeat of a

candidate's campaign for nomination or election or the adoption

or defeat of a ballot question or solicits funds to benefit a

political committee:

(1) No person shall make, incur or contract for an

expenditure with the consent of, in coordination with or in

consultation with a candidate, candidate committee, political

committee or candidate's agent.

(2) No group of two or more individuals acting together that

receives funds or makes or incurs expenditures not exceeding one

thousand dollars ($1,000) in the aggregate which have not formed

a political committee shall make or incur an independent

expenditure.

(b.1) Communications under subsection (b) shall contain the

following language:

(1) The words "paid for and approved by" and one of the

following:

(i) For an individual, the name and address of the

individual.

(ii) For a committee other than a party committee, the name

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of the committee and its campaign treasurer.

(iii) For a party committee, the name of the committee.

(iv) For a group of two or more individuals that received

funds or makes or incurs expenditures not exceeding one thousand

dollars ($1,000) in the aggregate which have not formed a

political committee, the name of the group and the name and

address of its agent.

(2) The words "approved by" and one of the following:

(i) For an individual, group or political committee other

than a candidate committee making or incurring an expenditure

with the consent of, in coordination with or in consultation

with a candidate committee or candidate's agent, the name of the

candidate.

(ii) For a candidate committee, the name of the candidate.

(1) The following apply:

(i) No person shall make or incur an independent expenditure

for a written, typed or other printed communication or a web-

based, written communication which promotes the success or

defeat of a candidate for nomination or election or promotes or

opposes a political party or solicits funds to benefit a

political party or committee, unless the communication bears

upon its face the words "paid for and approved by" and the name

of the person, the name of its chief executive officer or

equivalent and its principal business address and the words

"This message was made independently of a candidate or political

party."

(ii) An entity which is a tax-exempt organization under

section 501 of the Internal Revenue Code of 1986 (Public Law 99-

514, 26 U.S.C. § 1 et seq.) or an incorporated tax-exempt

20170SB0011PN0313 - 21 -

political organization organized under section 527 of the

Internal Revenue Code of 1986, making or incurring an

independent expenditure under subparagraph (i), shall also bear

upon the face of the communication the words "Top Five

Contributors" followed by a list of the five persons making the

largest contributions to the organization during the twelve-

month period before the date of the communication.

(2) Disclosure requirements are as follows:

(i) In addition to the requirements of paragraph (1), no

person shall make or incur an independent expenditure for

television advertising, radio or Internet video advertising or

Internet radio advertising, that promotes the success or defeat

of a candidate for election or promotes or opposes a political

party or solicits funds to benefit a political party or

committee, unless at the end of the advertisement there appears

or includes simultaneously for a period of no less than four

seconds a clear identifiable audio, video, photographic or

similar image of the person's chief executive officer or

equivalent and a personal audio message, in the following form:

I am . . . (name of person's chief executive officer or

equivalent), . . . (title) of . . . (entity). This message

was made independently of any candidate, political committee

or political party, and I approve of its content.

(ii) A tax-exempt organization under section 501 of the

Internal Revenue Code of 1986 or an incorporated tax-exempt

political organization organized under section 527 of the

Internal Revenue Code of 1986, making or incurring an

independent expenditure under subparagraph (i), shall include on

the advertisement an easily readable written message in the

following form:

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"The Top Five Contributors to the organization for this

advertisement are" followed by a list of the five persons

making the largest contributions to the organization during

the twelve-month period before the date of the communication.

Section 1644. Independent Expenditure Evaluation.--

(a) When the Bureau of Commissions, Elections and

Legislation audits and evaluates an expenditure that is included

in a report under section 1643 to determine whether the

expenditure is an independent expenditure, there shall be a

rebuttable presumption that the following expenditures are not

independent expenditures:

(1) An expenditure made by a person in cooperation,

consultation or in concert with, at the request, suggestion or

direction of or pursuant to a general or particular

understanding with a candidate or political committee or other

agent acting on behalf of a candidate or political committee.

(2) An expenditure made by a person for the production,

dissemination, distribution or publication, in whole or in

substantial part, of a broadcast or a written, graphic or other

form of political advertising or campaign communications

prepared by a candidate or political committee or a consultant

or other agent acting on behalf of a candidate or political

committee.

(3) An expenditure made by a person based on information

about a candidate's or political committee's plans, projects or

needs, provided by a candidate or political committee or a

consultant or other agent acting on behalf of a candidate or

political committee with the intent that the expenditure be

made.

(4) An expenditure made by an individual who, in the same

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election cycle, is serving or has served as the campaign

chairperson, campaign treasurer or deputy treasurer of a

political committee benefiting from the expenditure, or another

executive or policymaking position, including as a member,

employe, fundraiser, consultant or other agent acting on behalf

of a candidate or political committee.

(5) An expenditure made by a person whose officer, director,

member, employe, fundraiser, consultant or other agent who

serves the person in an executive or policymaking position also

serves as or has served in the same election cycle as the

candidate or the campaign chairperson, campaign treasurer or

deputy treasurer of a candidate or political committee

benefiting from the expenditure, or in another executive or

policymaking position of the candidate or political committee.

(6) An expenditure made by a person for:

(i) fundraising activities with or for a candidate or

political committee or a consultant or other agent acting on

behalf of a candidate or political committee; or

(ii) the solicitation or receipt of contributions on behalf

of a candidate or political committee or a consultant or other

agent acting on behalf of a candidate or political committee.

(7) An expenditure made by a person based on information

about a candidate's campaign plans, projects or needs, that is

directly or indirectly provided by a candidate, the candidate's

committee or a political committee or a consultant or other

agent acting on behalf of the candidate or political committee

to the person making the expenditure or the person's agent, with

an express or tacit understanding that the person is considering

making the expenditure.

(8) An expenditure made by a person for a communication that

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clearly identifies a candidate or political committee during an

election campaign if the person making the expenditure, or the

person's agent, has informed the candidate who benefits from the

expenditure that the candidate or political committee or a

consultant or other agent acting on behalf of the benefiting

candidate or political committee concerning the communications

content, or of the intended audience, timing, location or mode

or frequency of the dissemination.

(9) An expenditure made by a person or an entity for

consultant or creative services, including services related to

communications strategy or design or campaign strategy, to be

used to promote or oppose a candidate's election to office if

the provision of these services is also providing consultant or

creative services to the candidate or to an opposing candidate

in the same election.

(b) As used in this section, the words "agent acting on

behalf of a candidate" include:

(1) an individual or a person paid by a candidate or a

candidate committee; and

(2) any consultant, printing firm, media production company,

Internet website director or webmaster, marketing firm,

advertising firm, filed organization firm or other company or

firm retained by a candidate or authorized by a candidate or a

candidate committee to act on the candidate's behalf.

Section 10. The act is amended by adding an article to read:

ARTICLE XVI-A

CORPORATE POLITICAL ACCOUNTABILITY

Section 1601-A. Definitions.

The following words and phrases when used in this article

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

20170SB0011PN0313 - 25 -

context clearly indicates otherwise:

"Contribution" or "expenditure." Includes any monetary and

nonmonetary political contributions and expenditures not

deductible under section 162(e)(1)(B) of the Internal Revenue

Code of 1986 (Public Law 99-514, 26 U.S.C. § 162(e)(1)(B)),

including, but not limited to, contributions to or expenditures

on behalf of political candidates, political parties, political

committees and other political entities organized and operating

under section 527 of the Internal Revenue Code of 1986 (26

U.S.C. § 527), and any portion of any dues or similar payments

made to any tax-exempt organization that is used for an

expenditure or contribution if, made directly by the corporation

would not be deductible under section 162(e)(1)(B) of the

Internal Revenue Code of 1986, any contribution or expenditure,

as those terms are defined in section 302 of the Federal

Election Campaign Act of 1971 (Public Law 92-225, 52 U.S.C. §

30101(8)(A)(9)(A)), as well as any contribution or expenditure

defined under this act. The term also includes any direct or

indirect payment, distribution, loan, advance, deposit or gift

of money, or any services, or anything of value, except a loan

of money by a national or State bank made in accordance with the

applicable banking laws and regulations and in the ordinary

course of business, to any candidate, campaign committee or

political party or organization, in connection with any election

to any office. The term does not include:

(1) Communications by a corporation to its stockholders

and executive or administrative personnel and their families

or by a labor organization to its members and their families

on any subject.

(2) Nonpartisan registration and get-out-the-vote

20170SB0011PN0313 - 26 -

campaigns by a corporation aimed at its stockholders and

executive or administrative personnel and their families or

by a labor organization aimed at its members and their

families.

(3) The establishment, administration and solicitation

of contributions to a separate segregated fund to be utilized

for political purposes by a corporation, labor organization,

membership organization, cooperative or corporation without

capital stock.

As used in this definition, the term "corporation" includes any

company, trade or professional union, not-for-profit association

and incorporated partnership organized as an incorporated entity

under the laws of any state within the United States.

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

"General treasury funds." Money in possession of a

corporation incorporated under the laws of this Commonwealth in

the normal course of business, including funds from sales,

accounts payable, loans, investments, bonds or debt instruments.

"Issue advocacy campaign." Contributions or expenditures for

any communication to the general public intended to encourage

the public to contact a government official regarding pending

legislation, public policy or a government rule or regulation.

The term does not include contributions or expenditures for

registered lobbyists or other persons employed by the

corporation to lobby directly Federal or State government

officials.

"Known at the time of the authorization vote." At the time

the corporation seeks authorization from shareholders to spend

corporate funds for political activities:

(1) the corporation's officers, directors or employees

20170SB0011PN0313 - 27 -

have identified a specific political activity for the

corporation to support or oppose;

(2) corporate officers, directors or employees have

taken steps to obligate funds to a political activity; or

(3) the corporation has a regularly scheduled payment to

a trade association or other entity to pay for a political

activity in the next 12 months.

"Majority of shareholders." Fifty percent plus one of all

outstanding voting securities. Shareholders not casting votes

shall not count toward affirmative authorization under this

article.

"Political activities." Any contributions or expenditures

made directly or indirectly to, or in support of or opposition

to, any candidate, political party, committee, electioneering

communication, ballot measure campaign or an issue advocacy

campaign. The term does not include activities defined as

lobbying under any Federal, State or local law.

"Separate segregated fund." A political action committee

formed by a corporation for the purpose of making contributions

to candidates for office or to political parties. A separate

segregated fund which supports Federal candidates shall have the

same meaning as that found in section 316 of the Federal

Election Campaign Act of 1971 (Public Law 92-225, 52 U.S.C. §

30118).

Section 1602-A. Shareholder vote on corporate political

activities.

(a) Annual vote.--

(1) Any corporation incorporated in this Commonwealth

that spends in the aggregate $10,000 or more of corporate

treasury funds on all political activities in this

20170SB0011PN0313 - 28 -

Commonwealth must comply with the requirements of this

section.

(2) Any proxy or consent or authorization for an annual

meeting of the shareholders of a corporation incorporated in

this Commonwealth, or a special meeting in lieu of such

meeting, where proxies are solicited in respect of any

security occurring on or after six months following the date

on which final regulations are published under subsection (d)

shall provide for a separate resolution subject to

shareholder vote to approve any spending of $10,000 or more

by the corporation for any political activity.

(3) Notwithstanding the requirement for an annual

shareholder vote to authorize any spending of $10,000 or more

by the corporation for any political activity, a corporation

may request authorization for spending on political

activities on a more frequent basis. Any authorization

request by the corporation that is not made during an annual

authorization shall be deemed a special authorization.

(4) If a corporation spends less than an aggregate of

$10,000 in a 12-month period for political activities, then

it does not have to seek shareholder authorization for such

spending.

(b) Shareholder approval.--

(1) When seeking shareholder authorization for

expenditures for political activities, the corporation shall

request the authority to spend a maximum dollar amount in the

next 12 months.

(2) If known at the time of the authorization vote, the

company shall articulate whether the corporate treasury funds

so authorized are intended to benefit or defeat specific

20170SB0011PN0313 - 29 -

candidates, ballot measures or issue advocacy campaigns or

whether it will be paid to specific nonprofits or trade

associations for political activities. The following apply:

(i) To be effective, the authorization vote must

garner support from a majority of shareholders.

(ii) A vote by the shareholders to approve or

disapprove any spending of $10,000 or more by a

corporation for a political activity shall be binding on

the corporation.

(iii) Notwithstanding the requirement for an annual

shareholder vote to authorize any spending of $10,000 or

more by the corporation for any political activity, a

corporation may request a special authorization for

additional spending on political activities, provided

that:

(A) all spending on political activities of

$10,000 or more must be authorized by a shareholder

majority vote; and

(B) for any special authorization, the company

shall articulate whether the corporate treasury funds

so authorized are intended to benefit or defeat

candidates, ballot measures or issue advocacy

campaigns or will be paid to specific nonprofits or

trade associations for political activities at the

time the special authorization is requested.

unauthorized contribution or expenditure for a political

activity, then the directors at the time that the unauthorized

contribution or expenditure was incurred are jointly and

severally liable to repay to the corporation the amount of the

20170SB0011PN0313 - 30 -

unauthorized expenditure, with interest at the rate of 8% per

year.

(d) Rulemaking.--The department shall promulgate final

regulations to implement this section no later than six months

after the effective date of this article.

(e) Sole proprietorships excluded.--Notwithstanding any

other provision of this section, nothing in this section shall

apply a new duty to the owner of a sole proprietorship.

Section 1603-A. Notification to shareholders of corporate

political activities.

(a) Notification to shareholders.--

(1) At least quarterly during each fiscal year, a

corporation incorporated in this Commonwealth that makes

contributions or expenditures for political activities must

notify its shareholders and the department in writing of the

nature of all its political activities, funded by either its

separate segregated fund or through its general corporate

treasury, including contributions or expenditures made

directly or indirectly.

(2) A report made under this section shall include the

following:

(i) The date of the contributions or expenditures.

(ii) The amount of the contributions or

expenditures.

(iii) The identity of the candidate, political

party, committee, electioneering communication, ballot

measure campaign or issue advocacy campaign.

(iv) If the contributions or expenditures were made

for or against a candidate, including an electioneering

communication as defined under Federal law, the office

20170SB0011PN0313 - 31 -

sought by the candidate and the political party

affiliation of the candidate.

(v) If the contributions or expenditures were made

for or against a ballot measure, the purpose of the

measure and whether the contributions or expenditures

were made in support or opposition to the ballot measure.

(vi) If the contributions or expenditures were made

for or against an issue advocacy campaign, the nature of

the political issue and whether the contributions were

made in support or opposition to the political issue.

(vii) All independent expenditures made by a

separate segregated fund affiliated with the corporation.

(b) Public disclosure.--

(1) The quarterly reports of political activities by a

corporation incorporated in this Commonwealth to shareholders

shall be public records.

(2) A copy of the reports filed under subsection (a)(1)

shall be:

(i) submitted to the department; and

(ii) posted for at least one year on the

corporation's publicly accessible Internet website, if

any.

Section 1604-A. Public disclosure of corporate political

activities by the department.

(a) Department duty.--The quarterly reports of political

activities by a corporation incorporated in this Commonwealth to

shareholders shall be made publicly available by the department.

(b) Electronic form.--A quarterly report required to be

filed under this section shall be filed in electronic form using

filing software approved or developed by the department in

20170SB0011PN0313 - 32 -

addition to filing in any other form that the department may

require by regulation and shall be published on the department's

publicly accessible Internet website.

greatest extent practicable, the quarterly reports on political

activities are publicly available through the department's

publicly accessible Internet website in a format that can be

searched, sorted and downloaded.

Section 1605-A. Report by Department of the Auditor General.

(a) Audit.--On an annual basis, the Department of the

Auditor General shall audit the extent of compliance or

noncompliance with the requirements of this article by

corporations incorporated under the laws of this Commonwealth,

their management and shareholders, as well as the effectiveness

of the department in meeting the reporting and disclosure

requirements of this article.

(b) Report.--No later than April 1 of each year, the

Department of the Auditor General shall submit to the Governor a

report on the review required by subsection (a) for the

preceding year.

Section 1606-A. Board approval for all corporate political

expenditures.

(a) Approval required.--Notwithstanding any other provision

of law, no corporation and no trade, business or professional

association shall make any campaign contribution or expenditure

unless specifically authorized to do so:

(1) by the vote of the board of directors of the

corporation or of the executive committee of the trade,

business or professional association at a regular or special

meeting thereof;

20170SB0011PN0313 - 33 -

(2) by the president, vice president, secretary or

treasurer of a corporation whom the board has specifically

empowered to authorize such contributions or expenditures; or

(3) for a corporation, by any other person designated by

resolution of the board of directors of a corporation to

authorize contributions or expenditures.

(b) Form of contribution.--No corporation, trade, business

or professional association shall make any contribution or

expenditure as defined under Federal or State law, other than an

in-kind contribution or expenditure, except by check.

Section 1607-A. Applicability to foreign corporations.

(a) General rule.--A foreign corporation, other than a

foreign association or foreign nonprofit corporation, but

including a foreign parent corporation even though it does not

itself transact intrastate business, is subject to the

requirements of sections 1602-A, 1603-A, 1604-A and 1605-A, if:

(1) the average of property, payroll and sales factors,

as defined in section 401 of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, with respect to

the foreign corporation, is more than 50% during its latest

full-income year; and

(2) more than one-half of its outstanding voting

securities are held of record by persons having addresses in

this Commonwealth appearing on the books of the corporation

on the record date for the latest meeting of shareholders

held during its latest full-income year or, if no meeting was

held during that year, on the last day of the latest full-

income year.

(b) Determination.--The determination of the property,

payroll and sales factors under subsection (a) with respect to

20170SB0011PN0313 - 34 -

any parent corporation shall be made on a consolidated basis,

including in a unitary computation, after elimination of

intercompany transactions, the property, payroll and sales of

the parent and all of its subsidiaries in which it owns directly

or indirectly more than 50% of the outstanding shares entitled

to vote for the election of directors, but deducting a

percentage of the property, payroll and sales of any subsidiary

equal to the percentage minority ownership, if any, in the

subsidiary. For the purpose of this section, any securities held

to the knowledge of the issuer in the names of broker-dealers,

nominees for broker-dealers, including clearing corporations or

banks, associations or other entities holding securities in a

nominee name or otherwise on behalf of a beneficial owner,

collectively "nominee holders," shall not be considered

outstanding. However, if the foreign corporation requests all

nominee holders to certify, with respect to all beneficial

owners for whom securities are held, the number of shares held

for those beneficial owners having addresses as shown on the

records of the nominee holder in this Commonwealth and outside

of this Commonwealth, then all shares so certified shall be

considered outstanding and held of record by persons having

addresses either in this Commonwealth or outside of this

Commonwealth as so certified, provided that the certification so

provided shall be retained with the record of shareholders and

made available for inspection and copying. A current list of

beneficial owners of a foreign corporation's securities provided

to the corporation by one or more nominee holders or agent

thereof under the requirements of 17 CFR § 240.14b-1(b)(3)

(relating to obligation of registered brokers and dealers in

connection with the prompt forwarding of certain communications

20170SB0011PN0313 - 35 -

to beneficial owners) or 240.14b-2(b)(3) (relating to obligation

of banks, associations and other entities that exercise

fiduciary powers in connection with the prompt forwarding of

certain communications to beneficial owners) promulgated under

the Securities Exchange Act of 1934 (Public Law 48-881, 15

U.S.C. § 78a et seq.) shall constitute an acceptable

certification with respect to beneficial owners for the purposes

of this subsection.

corporation:

(1) With outstanding securities listed on the New York

Stock Exchange or the American Stock Exchange.

(2) With outstanding securities designated as qualified

for trading on the Nasdaq Global Market of the Nasdaq Stock

Market, or any successor thereto.

(3) If all of its voting shares, other than directors'

qualifying shares, are owned directly or indirectly by a

corporation or corporations not subject to this section.

(d) Liability.--Any party who obtains a final determination

by a court of competent jurisdiction that the corporation failed

to provide to the party information required to be provided by

this article or provided the party information of the kind

required to be provided by this article that is incorrect, then

the court, in its discretion, shall have the power to include in

its judgment recovery by the party from the corporation of all

court costs and reasonable attorney fees incurred in that legal

proceeding to the extent they relate to obtaining that final

determination.

Section 11. The dollar figures contained in section 1627.1

of the act shall be adjusted biennially at a rate determined by

20170SB0011PN0313 - 36 -

the Federal Election Commission as authorized under 11 CFR §

110. The Secretary of the Commonwealth shall certify the

calculation of the rate as determined by the Federal Election

Commission and shall publish the new dollar figures in the

Pennsylvania Bulletin.

Section 12. The provisions of this act are severable. If any

provision of this act or its application to any person or

circumstance is held invalid, the invalidity shall not affect

other provisions or applications of this act which can be given

effect without the invalid provision or application.

Section 13. A comprehensive, fully searchable and user

friendly computerized database to track full implementation of

this act shall be made available to the public by the Department

of State through its publicly accessible Internet website on or

before December 31, 2018.

Section 14. This act shall take effect January 1, 2019.

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