Regular Session 2021-2022 Senate Bill 0140 P.N. 0117

PRINTER'S NO. 117

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

140

Session of

2021

INTRODUCED BY BROWNE, MENSCH, YAW, J. WARD, LANGERHOLC,

SCAVELLO, BAKER, KEARNEY, COSTA AND FONTANA, JANUARY 28, 2021

REFERRED TO STATE GOVERNMENT, JANUARY 28, 2021

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 primary and election expenses, further

providing for reporting by candidate and political committees

and other persons, for late contributions and independent

expenditures, for oath of compliance, perjury,

disqualification from office and commercial use, for residual

funds and for place of filing, providing for manner of filing

and for inability to file reports or statements

electronically by deadline and further providing for late

filing fee and certificate of filing, for additional powers

and duties of the Secretary of the Commonwealth and for

reports by business entities and publication by Secretary of

the Commonwealth.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 1626(a) and (h) of the act of June 3,

1937 (P.L.1333, No.320), known as the Pennsylvania Election

Code, 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 the treasurer of the committee shall file a [sworn]

statement to that effect with the appropriate supervisor rather

than the report required by this section.

* * *

(h) All reports or statements required to be filed pursuant

to this section shall be filed pursuant to [section 1630]

sections 1629 and 1631.1. All reports and statements required by

this section shall cover the campaign activity of a candidate

only from the last prior report or statement.

* * *

(k) (1) All reports or statements required to be filed with

the Secretary of the Commonwealth shall be filed electronically

using the electronic filing system developed by the Secretary of

the Commonwealth that is consistent with the purposes of this

subsection. A report or statement submitted electronically must:

(i) require an electronic signature from the treasurer or

assistant treasurer at the time of the filing of the report or

statement . In addition, a report filed by a political committee,

authorized by a candidate and created solely for the purpose of

influencing an election on behalf of that candidate must be

signed, using an electronic signature, stating that, to the best

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of the candidate's knowledge, the political committee has not

violated a provision of this act; and

(ii) be made subject to the penalties of 18 Pa.C.S. § 4904

(relating to unsworn falsification to authorities) .

(2) (i) A candidate or political committee not able to file

electronically the report or statement required by this

subsection shall request an exemption from the Secretary of the

Commonwealth. The candidate or political committee upon approval

of the Secretary of the Commonwealth shall file reports and

statements on forms developed by the Secretary of the

Commonwealth.

(ii) In order to request an exemption for electronic

submissions or reports or statements, the candidate or political

committee must demonstrate technological hardship. As used in

this subclause, the term "technological hardship" means a lack

of computer or Internet access or a disability that prevents

electronic filing.

Section 2. Sections 1628, 1629 heading, (a) and (b), 1630

and 1631(1) of the act are amended to read:

Section 1628. Late Contributions and Independent

Expenditures.--Any candidate or political committee, authorized

by a candidate and created solely for the purpose of influencing

an election on behalf of that candidate, which receives any

contribution or pledge of five hundred dollars ($500) or more,

and any person making an independent expenditure, as defined by

this act, of five hundred dollars ($500) or more after the final

pre-election report has been deemed completed shall report such

contribution, pledge or expenditure to the appropriate

supervisor. Such report shall be sent by the candidate, chairman

or treasurer of the political committee within twenty-four (24)

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hours of receipt of the contribution. It shall be the duty of

the supervisor to confirm the substance of such report. [The

report shall be made by telegram, mailgram, overnight mail or

facsimile transmission. Any] The reports filed with the

Secretary of the Commonwealth shall be filed electronically in

accordance with section 1631.1. If the candidate or political

committee is not required to file electronically, the report

shall be filed by facsimile, electronic mail or overnight mail

courier service. Except for reports required to be filed

electronically, a candidate in his own behalf, or chairman,

treasurer or candidate [in] on behalf of the political committee

may also comply with this section by appearing personally before

such supervisor and reporting such late contributions or

pledges.

Section 1629. [Oath of Compliance] Unsworn Falsification;

Perjury; Disqualification from Office; Commercial Use.--

[(a) Each report shall be subscribed and sworn to by the

individual submitting the report. In addition, any report filed

by a political committee, authorized by a candidate and created

solely for the purpose of influencing an election on behalf of

that candidate, must be accompanied by an affidavit from that

candidate which provides that, to the best of the candidate's

knowledge, the political committee has not violated any

provision of this act.]

(b) Any wilfully false, fraudulent or misleading statement

or entry made by any candidate or treasurer in any statement or

report [under oath] as required by this article, shall

constitute the crime of [perjury] unsworn falsification to

authorities, and be punishable as such according to the laws of

this Commonwealth.

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* * *

Section 1630. Residual Funds.--

(a) In the event that a candidate or political committee

terminates its financial activity as such, then the disbursement

of any residual funds remaining in such an account shall be made

in the following manner:

(1) any such funds may be used for any expenditure as

defined by this article; [and]

(2) may be returned, pro rata, to the contributors by the

candidate or treasurer of the political committee[. A final

report must be made by the next January 31 in accordance with

section 1627.]; or

(3) may be donated to a nonprofit organization.

(b) A final report must be made by the next January 31 in

accordance with section 1627.

(1) "Affiliated" means serving as an officer of, on the

board of directors of, as a paid employee of or a contractor of

a nonprofit organization.

(2) "Family member" means a spouse or child.

(3) "Nonprofit organization" means an organization that is

qualified by the Internal Revenue Service as meeting the

requirements of section 501(c)(3) of the Internal Revenue Code

of 1986 (Public Law 99-514, 26 U.S.C. 501(c)(3)) organized under

the laws of this Commonwealth and is not affiliated with a

candidate or the chairman or treasurer of a political committee,

including a family member of the candidate, chairman or

treasurer.

Section 1631. Place of Filing.--

Any statement or report required by this article to be filed,

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shall be done in the following manner:

(1) (i) Any candidate, individual, or committee required to

file a report concerning any candidate shall file that statement

or report in the office of the supervisor with whom the

candidate filed a nomination paper, nomination certificate,

nomination petitions or with the supervisor with whom the

candidate would have filed such if he had sought nomination in

that manner.

[(ii) All candidates and political committees, authorized by

candidates and created solely for the purpose of influencing the

election of such candidates, who must file reports with the

Secretary of the Commonwealth, shall also file copies of their

reports in the county in which the candidate resides.]

(ii) All candidates and political committees, authorized by

candidates and created solely for the purpose of influencing the

election of such candidates, who must file reports with the

Secretary of the Commonwealth as required by this subsection,

must only file reports electronically with the Secretary of the

Commonwealth.

* * *

Section 3. The act is amended by adding sections to read:

Section 1631.1. Manner of Filing.--

(a) All reports and statements required to be filed with the

Secretary of the Commonwealth pursuant to sections 1626, 1627,

1628 and 1641 shall be filed with the Secretary of the

Commonwealth using the electronic filing system developed by the

Secretary of the Commonwealth .

(b) A report or statement filed electronically shall:

(1) be made subject to the penalties of 18 Pa.C.S. § 4904

(relating to unsworn falsification to authorities);

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(2) include the electronic signature of the treasurer or

assistant treasurer of the political committee serving at the

time of the filing of the report or statement; and

(3) for a report or statement filed by a candidate or a

candidate's political committee, include the electronic

signature of the candidate, stating that, to the best of the

candidate's knowledge, the political committee has not violated

a provision of this act.

the contents of the report or statement, including entry of data

into the electronic filing system as required under subsection

(a).

(2) Each principal authorizing another to act under clause

(1) must:

(i) review the contents of the report or statement prepared

under clause (1); and

(ii) file with the electronic filing system the approval of

the contents of the report or statement and verification of its

accuracy, in accordance with subsection (b). The approval shall

be transmitted personally by the principal and not on the

principal's behalf by any other person.

(3) No report or statement shall be considered complete or

filed until all necessary approvals and verifications shall have

been submitted by each principal required to file.

(4) As used in this subsection, "principal" shall mean any

person required to file any report or statement electronically

with the Secretary of the Commonwealth in accordance with this

section.

Section 1631.2. Inability to File Reports or Statements

Electronically by Deadline.--

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(a) All reports or statements filed with the Secretary of

the Commonwealth under section 1631.1 are subject to the

following:

(1) If a candidate or political committee cannot file a

report or statement on the day the report or statement is due

because of the unavailability of the Department of State's

electronic filing system at the time the candidate or political

committee attempts to file the report or statement, the

principal shall immediately notify the Department of State in a

manner designated by the Secretary of the Commonwealth. If the

Internet website is unavailable and the candidate or political

committee has notified the department, the candidate or

political committee shall have until 11:59 o'clock P.M. on the

next day following the deadline to file the report or statement

electronically and the principal shall file a statement

affirming that the principal was unable to file the report or

statement on time because of the unavailability of the

Department of State's electronic filing system at the time the

principal attempted to file the report or statement on the day

the report or statement was due. The affirmation statement shall

be due at the same time as the statement or report filed under

this subsection. The report or statement shall not be considered

filed until the affirmation statement is filed.

(2) If a candidate or political committee is unable to file

as required under clause (1) because the Department of State's

electronic filing system remains unavailable, the principal

shall notify the Department of State each day a report or

statement cannot be filed due to the unavailability of the

Department of State's electronic filing system. The candidate or

political committee shall have until 11:59 o'clock P.M. on the

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next day to electronically file the report or statement or

notify the Department of State a second time of the

inaccessibility of the department's electronic filing system.

The principal shall file a statement affirming that the

principal was unable to file the report or statement on time

because of the unavailability of the Department of State's

electronic filing system. The affirmation statement shall be

due at the same time as the statement or report filed under this

subsection. The report or statement shall not be considered

filed until the affirmation statement is filed.

(b) The Department of State may provide for an alternative

method of electronic filing if the department's electronic

filing system remains unavailable.

waive late filing fees for reports or statements filed after the

deadline but which are the subject of notifications as

prescribed by this section.

(d) As used in this section, "unavailability of the

Department of State's electronic filing system" shall mean a

failure of the system within the Department of State's technical

environment that does not allow access to the system by an

individual. The term does not include:

(1) a network issue between the user's computer and the

Department of State's environment; or

(2) a failure of any part of the user's computer or internal

network.

Section 4. Section 1632(a) of the act is amended and the

section is amended by adding a subsection to read:

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

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

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expenditures and contributions required to be filed with the

county board of elections which is not filed within the

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

ten dollars ($10) for each day or part of a day excluding

Saturdays, Sundays and holidays that a report or statement is

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

of the first six (6) days that a report or statement is overdue.

The maximum fee payable with respect to a single report or

statement is two hundred fifty dollars ($250). [A supervisor]

The county board of elections 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] county

board of elections of an overdue report. No further late filing

fees shall be incurred 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] county board of elections is transmitted by

first class mail and is postmarked by the United States Postal

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.

(a.1) For reports or statements required to be

electronically filed with the Secretary of the Commonwealth, the

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penalty for each report or statement that is not filed within

the prescribed period shall be fifty dollars ($50) a day for the

first six (6) days the report or statement is late and one

hundred dollars ($100) a day for day seven (7) and each day

thereafter. The maximum penalty for late reports or statements

is two thousand dollars ($2,000) for each required filing. The

late filing fee shall be the personal responsibility of the

candidate or treasurer of a political committee and cannot be

paid from contributions to the candidate or committee nor may

the fee be considered an expenditure. The Secretary of the

Commonwealth shall receive an overdue report or statement

notwithstanding whether a late filing fee due has not been paid.

A report or statement shall not be considered filed until all

fees have been paid upon the receipt by the Secretary of the

Commonwealth of an overdue report or statement.

* * *

Section 5. Sections 1640 and 1641(a) of the act are amended

to read:

Section 1640. Additional Powers and Duties of the Secretary

of the Commonwealth.--The Secretary of the Commonwealth shall

have the following additional powers and duties:

(1) To serve as the State clearing house for information

concerning the administration of this act.

(2) To prescribe suitable rules and regulations to carry out

the provisions of this act.

(3) To develop the prescribed forms required by the

provisions of this article for the making of the reports and

statements required to be filed with the supervisor.

(4) To prepare a manual setting forth recommended uniform

methods of bookkeeping and reporting which shall be furnished by

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the supervisor to the person required to file such reports and

statements as required by this article.

(5) To examine the contributions to State legislative and

Statewide candidates and publish a list of all those political

committees who have contributed to candidates and who have

failed to file reports as required by this act within six (6)

days of their failure to comply.

(6) To maintain a searchable computer database and

electronic reporting system that contains the information

necessary for the proper administration of this article,

including information on contributions and expenditures by all

candidates and all political committees and distribution of

money, and including public access through the Internet. The

database must be designed with an emergency recovery system to

ensure that campaign expense records are not lost in the case of

an emergency, natural disaster or other event that could cause

the system to malfunction.

(7) To establish a training program on the electronic

reporting system and make it available to a candidate or

political committee.

(8) To ensure all information contained in a statement or

report filed, that is not on the electronic reporting system, be

entered into the electronic reporting system as soon as

practicable but no later than four (4) business days after its

receipt by the Secretary of the Commonwealth.

(9) The Department of State shall issue to the registrant an

electronic receipt that includes a confirmation number and the

date and time of filing.

Section 1641. Reports by Business Entities; Publication by

Secretary of the Commonwealth.--

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

corporation, company, association, partnership or sole

proprietorship, which has been awarded non-bid contracts from

the Commonwealth or its political subdivisions during the

preceding calendar year, shall report electronically in

accordance with section 1631.1 by February 15 of each year to

the Secretary of the Commonwealth 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

political contribution 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.

* * *

Section 6. The Secretary of the Commonwealth shall transmit

notice to the Legislative Reference Bureau for publication in

the Pennsylvania Bulletin when the electronic filing system

developed by the Secretary of the Commonwealth is available for

use.

Section 7. This act shall take effect as follows:

(1) The following provisions shall take effect

immediately:

(i) This section.

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(ii) Section 6 of this act.

(2) The remainder of this act shall take effect 120 days

after publication in the Pennsylvania Bulletin of the notice

under section 6 of this act.

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