See other bills
under the
same topic
PRINTER'S NO. 3412
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1953
Session of
2020
INTRODUCED BY BOYLE, MARCH 4, 2020
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MARCH 4, 2020
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," providing for small dollar financing of State
legislative campaigns; establishing the Freedom from
Influence Fund; and imposing an additional assessment
relative to civil and criminal penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of June 3, 1937 (P.L.1333, No.320), known
as the Pennsylvania Election Code, is amended by adding an
article to read:
ARTICLE XVI-A
SMALL DOLLAR FINANCING OF STATE
LEGISLATIVE CAMPAIGNS
Section 1601-A. Scope of article.
This article relates to public financing of campaigns for
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
State legislative offices.
Section 1602-A. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Fund." The Freedom From Influence Fund established under
section 1610-A(a).
"Qualified small dollar contribution." With respect to a
candidate for the office of Senator or Representative in the
General Assembly and the authorized committees of the candidate,
a contribution that meets the requirements of section 1606-A.
"Secretary." The Secretary of the Commonwealth.
"Small dollar democracy qualifying period." With respect to
a candidate for the office of Senator or Representative in the
General Assembly, the 180-day period during the election cycle
for the office which begins on the date on which the candidate
files a statement of intent under section 1607-A(a)(1), except
that the period may not continue after the date that is 30 days
before the date of the general election for the office.
Section 1603-A. Benefits and eligibility requirements for
candidates.
(a) General rule.--If a candidate for election to the office
of Senator or Representative in the General Assembly is
certified as a participating candidate under this article with
respect to an election for the office, the candidate shall be
entitled to payments as provided under this article.
(b) Amount of payment.--The amount of a payment made under
this article shall be equal to 600% of the amount of qualified
small dollar contributions received by the candidate since the
most recent payment made to the candidate under this article
20200HB1953PN3412 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
during the election cycle without regard to whether or not the
candidate received any of the contributions before, during or
after the small dollar democracy qualifying period applicable to
the candidate.
(c) Limit on aggregate amount of payments.--The aggregate
amount of payments made to a participating candidate under this
article with respect to an election cycle may not exceed 50% of
the average of the 20 highest amounts of disbursements made by
the authorized committees of any winning candidate for the same
type of office during the most recent election cycle, rounded to
the nearest $10,000.
Section 1604-A. Procedures for making payments.
(a) General rule.--The secretary shall make a payment under
this article to a candidate who is certified as a participating
candidate upon receipt from the candidate of a request for a
payment which includes all of the following:
(1) A statement of the number and amount of qualified
small dollar contributions received by the candidate since
the most recent payment made to the candidate under this
article during the election cycle.
(2) A statement of the amount of the payment the
candidate anticipates receiving with respect to the request.
(3) A statement of the total amount of payments the
candidate has received under this article as of the date of
the statement.
(4) Any other information and assurances as the
secretary may require.
(b) Restrictions on submission of requests.--A candidate may
not submit a request under subsection (a) unless each of the
following applies:
20200HB1953PN3412 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) The amount of the qualified small dollar
contributions in the statement referred to in subsection (a)
(1) is equal to or greater than $1,000, unless the request is
submitted during the 30-day period which ends on the date of
a general election.
(2) The candidate did not receive a payment under this
article during the seven-day period which ends on the date
the candidate submits the request.
Section 1605-A. Use of funds.
(a) Use of funds for authorized campaign expenditures.--A
candidate shall use payments made under this article, including
payments provided with respect to a previous election cycle
which are withheld from remittance to the secretary in
accordance with this article, only for making direct payments
for the receipt of goods and services which constitute
authorized expenditures as determined in accordance with this
act in connection with the election cycle involved.
(b) Prohibiting use of funds for legal expenses, fines or
penalties.--A candidate may not use payments made under this
article for the payment of expenses incurred in connection with
any action, claim or other matter before the secretary or before
any court, hearing officer, arbitrator or other dispute
resolution entity, or for the payment of any fine or civil
monetary penalty.
Section 1606-A. Qualified small dollar contributions.
A contribution is a qualified small dollar contribution if
the contribution meets the following requirements:
(1) The contribution is in an amount that:
(i) is not less than $1 nor more than $200; and
(ii) for an individual contributing more than $200
20200HB1953PN3412 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
to the same candidate, consists of the first $200
received by the candidate from that individual.
(2) The contribution is made directly by an individual
to the candidate or an authorized committee of the candidate
and is not received by the candidate or committee with the
knowledge that the contribution was made with funds provided
to the contributor by another person or reimbursed to the
contributor by another person.
Section 1607-A. Eligibility.
(a) General rule.--A candidate for the office of Senator or
Representative in the General Assembly is eligible to be
certified as a participating candidate under this article with
respect to an election if the candidate meets the following
requirements:
(1) The candidate files with the secretary a statement
of intent to seek certification as a participating candidate.
(2) The candidate meets the qualifying requirements of
section 1608-A.
(3) Not later than the last day of the small dollar
democracy qualifying period, the candidate files with the
secretary an affidavit signed by the candidate and the
treasurer of the candidate's principal campaign committee
declaring that the candidate:
(i) has complied and, if certified, will comply with
the contribution and expenditure requirements of this
act;
(ii) if certified, will run only as a participating
candidate for all elections for the office that the
candidate is seeking during that election cycle; and
(iii) has either qualified or will take steps to
20200HB1953PN3412 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
qualify under State law to be on the ballot.
(b) General election.--Notwithstanding the provisions of
subsection (a), a candidate shall not be eligible to be
certified as a participating candidate for a general election
unless the candidate's party nominated the candidate to be
placed on the ballot for the general election or the candidate
is otherwise qualified to be on the ballot under State law.
Section 1608-A. Qualifying requirements.
(a) Receipt of qualified small dollar contributions.--A
candidate for the office of Senator or Representative in the
General Assembly meets the requirement of this section if,
during the small dollar democracy qualifying period, each of the
following occurs:
(1) No fewer than 50 individuals make a qualified small
dollar contribution to the candidate.
(2) The candidate obtains a total dollar amount of
qualified small dollar contributions which is equal to or
greater than $10,000.
(b) Requirements relating to receipt of qualified small
dollar contribution.--Each qualified small dollar contribution:
(1) may be made by means of a personal check, money
order, debit card, credit card, electronic payment account or
any other method deemed appropriate by the secretary;
(2) shall be accompanied by a signed statement or, in
the case of a contribution made online or through other
electronic means, an electronic equivalent, containing the
contributor's name and address; and
(3) shall be acknowledged by a receipt that is sent to
the contributor, with a copy in paper or electronic form kept
by the candidate for the secretary.
20200HB1953PN3412 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(c) Verification of contributions.--The secretary shall
establish procedures for the auditing and verification of the
contributions received and expenditures made by participating
candidates under this article, including procedures for random
audits, to ensure that contributions and expenditures meet the
requirements of this article.
Section 1609-A. Certification.
(a) Deadline.--No later than five business days after a
candidate files an affidavit under section 1607-A(a)(3), the
secretary shall determine whether or not the candidate meets the
requirements for certification as a participating candidate.
(b) Certification of candidate.--If the secretary determines
that the candidate meets the requirements for certification as a
participating candidate, the secretary shall certify the
candidate as a participating candidate.
(c) Notification.--The secretary shall notify the candidate
of the secretary's determination as to whether or not the
candidate meets the requirements for certification as a
participating candidate.
(d) Deemed certification.--If the secretary certifies a
candidate as a participating candidate with respect to the first
election of the election cycle involved, the secretary shall be
deemed to have certified the candidate as a participating
candidate with respect to all subsequent elections of the
election cycle.
(e) Revocation of certification.--The secretary shall revoke
a certification under subsection (b) if any of the following
occur:
(1) A candidate fails to qualify to appear on the ballot
at any time after the date of certification, other than a
20200HB1953PN3412 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
candidate certified as a participating candidate with respect
to a primary election who fails to qualify to appear on the
ballot for a subsequent election in that election cycle.
(2) A candidate ceases to be a candidate for the office
involved, as determined on the basis of an official
announcement by an authorized committee of the candidate or
on the basis of a reasonable determination by the secretary.
(3) A candidate otherwise fails to comply with the
requirements of this article, including any regulatory
requirements prescribed by the secretary.
Section 1610-A. Freedom From Influence Fund.
(a) Establishment.--The Freedom From Influence Fund is
established as a special fund in the State Treasury.
(b) Fund sources.--The sources of the fund are as follows:
(1) Amounts deposited under section 1611-A(b).
(2) Interest accrued by the fund.
(c) Use of fund to make payments to participating
candidates.--
(1) Amounts in the fund shall be available without
further appropriation to make payments to participating
candidates as provided under this article.
(2) Beginning with the first election cycle that begins
after the effective date of this article, not later than 90
days before the first day of each election cycle, the
secretary shall:
(i) Audit the fund to determine whether the amounts
in the fund will be sufficient to make payments to
participating candidates in the amounts provided in this
article during the election cycle.
(ii) Submit a report to the General Assembly
20200HB1953PN3412 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
describing the results of the audit.
(3) If, on the basis of the audit, the secretary
determines that the amount anticipated to be available in the
fund with respect to the election cycle involved is not, or
may not be, sufficient to satisfy the full entitlements of
participating candidates to payments under this article for
the election cycle, the secretary shall reduce each amount
which would otherwise be paid to all participating candidates
under this article by a pro rata amount as may be necessary
to ensure that the aggregate amount of payments anticipated
to be made with respect to the election cycle will not exceed
the amount anticipated to be available for payments with
respect to the election cycle.
(4) If, after reducing the amounts paid to participating
candidates with respect to an election cycle, the secretary
determines that there are sufficient amounts in the fund to
restore the amount or any portion of the amount by which the
payments were reduced, to the extent that funds are
available, the secretary may make a payment on a pro rata
basis to each participating candidate with respect to the
election cycle in the amount or portion of the amount by
which the candidate's payments were reduced.
(d) Use of money from other sources.--In any case in which
the secretary determines that there is insufficient money in the
fund to make payments to participating candidates under this
article, money shall not be made available from any other source
for the purpose of making the payments.
Section 1611-A. Additional assessments.
(a) Levy and imposition.--In addition to any fines, fees or
penalties levied or imposed as provided by law, whether civil or
20200HB1953PN3412 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
criminal, under this act or any other statute, an additional
assessment shall be levied for disposition in accordance with
subsection (b) as follows:
(1) Upon conviction of a business entity, including a
corporation or unincorporated association, limited liability
partnership or company or other legal entity, for any
violation of the provisions of this act or other statute of
the Commonwealth, the court shall assess the entity convicted
an amount equal to 2.75% of any fine imposed on the entity
for the conviction.
(2) Upon a business entity, including a corporation or
unincorporated association, limited liability partnership or
company or other legal entity, entering into a settlement
agreement or consent decree with the Commonwealth in
satisfaction of any allegation that the entity committed a
criminal offense under the provisions of this act or other
statute of the Commonwealth, the court shall assess the
entity entering into the settlement agreement or consent
decree an amount equal to 2.75% of the amount of the
settlement.
(3) Upon a business entity, including a corporation or
unincorporated association, limited liability partnership or
company or other legal entity, being assessed a civil or
administrative penalty for a violation of this act or other
statute of the Commonwealth or a regulation promulgated under
this act or other statute of the Commonwealth, the
administrative agency shall assess the entity which engaged
in the violation an amount equal to 2.75% of the amount of
the civil or administrative penalty imposed.
(4) Upon a business entity, including a corporation or
20200HB1953PN3412 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
unincorporated association, limited liability partnership or
company or other legal entity, entering into a settlement
agreement or consent decree with an administrative agency in
satisfaction of any allegation of an action or omission by
the entity which would be subject to a civil penalty or
administrative penalty, the administrative agency shall
assess the entity entering into the settlement agreement or
consent decree an amount equal to 2.75% of the amount of the
settlement.
(b) Disposition.--Notwithstanding any other statutory
provision:
(1) All additional assessments levied and collected
under subsection (a) by any division of the unified judicial
system or an administrative agency shall be remitted to the
Commonwealth for deposit in the fund.
(2) If the fines, fees or penalties are being paid in
installments, the additional assessment shall be remitted on
each installment on a pro rata basis.
Section 1612-A. Study and report.
No later than two years after the completion of the first
election cycle in which small dollar financing is in effect, the
secretary shall do the following:
(1) Assess:
(i) the amount of payment referred to in section
1603-A(b); and
(ii) the amount of a qualified small dollar
contribution referred to in section 1606-A.
(2) Submit to the General Assembly a report on the
effectiveness of small dollar financing of State legislative
campaigns.
20200HB1953PN3412 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Section 2. The addition of section 1611-A of the act shall
apply with respect to convictions which occur on or after the
effective date of this section.
Section 3. This act shall take effect in 60 days.
20200HB1953PN3412 - 12 -
1
2
3
4