Bill Text: PA HB2193 | 2011-2012 | Regular Session | Introduced

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Bill Title: Further providing for contributions or expenditures by national banks, corporations or unincorporated associations; providing limited campaign funding of Statewide judicial elections; establishing the Pennsylvania Fair Campaign Fund; limiting certain contributions; providing for powers and duties of the Secretary of the Commonwealth and the Department of State; and imposing penalties.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Introduced - Dead) 2012-02-13 - Referred to STATE GOVERNMENT [HB2193 Detail]

Download: Pennsylvania-2011-HB2193-Introduced.html

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PRINTER'S NO. 3090
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2193 Session of2012
INTRODUCED BY B. BOYLE, BOYD, K. BOYLE, JOSEPHS, KORTZ, M. O'BRIEN AND PASHINSKI, FEBRUARY 13, 2012
REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 13, 2012
AN ACT
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," further providing for contributions or
expenditures by national banks, corporations or
unincorporated associations; providing limited campaign
funding of Statewide judicial elections; establishing the
Pennsylvania Fair Campaign Fund; limiting certain
contributions; providing for powers and duties of the
Secretary of the Commonwealth and the Department of State;
and imposing penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1633 heading and (a) of the act of June
3, 1937, known as the Pennsylvania Election Code, amended
November 26, 1978 (P.L. 1313, No.318), are amended to read:
Section 1633. Contributions or Expenditures by National
Banks, Corporations, Partnerships, or Unincorporated
Associations.-–(a) It is unlawful for any National or State
bank, any 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, partnership or any unincorporated association to consent
to any contribution or expenditure by the corporation, bank,
partnership or unincorporated association, as the case may be,
prohibited by this section.
Section 2. The act is amended by adding an article to read:
ARTICLE XVI-A
PENNSYLVANIA FAIR CAMPAIGN FUNDING
Section 1601-A. Legislative intent.
This article is intended to protect against corruption or the
appearance of corruption.
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:
"Department." The Department of State of the Commonwealth.
"Fund." The Pennsylvania Fair Campaign Fund established in
section 1605-A.
"Secretary." The Secretary of the Commonwealth.
Section 1603-A. Application of article.
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The provisions of this article shall be applicable to
candidates for the following State-wide offices:
(1) Supreme Court Justice.
(2) Superior Court Judge.
(3) Commonwealth Court Judge.
Section 1604-A. Administration.
The provisions of this article shall be administered by the
secretary. The secretary may adopt such rules and regulations as
may be necessary for the implementation of this article.
Section 1605-A. Pennsylvania Fair Campaign Fund established.
There is hereby established a special restricted receipts
fund in the State Treasury to be known as the Pennsylvania Fair
Campaign Fund. Payments shall be made into the fund pursuant to
section 1606-A, and disbursements shall be made from the fund
only upon the warrant of the Secretary of the Commonwealth and a
warrant of the State Treasurer. As much of the moneys in the
fund as are necessary to make payments to candidates as provided
in this article are appropriated from the fund to the Department
of State for the purpose of such payments.
Section 1606-A. Allocation of certain tax proceeds to fund.
(a) Designation.--Beginning with tax years commencing
January 1, 2010, and thereafter, each individual subject to the
tax imposed by Article III of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, may designate that
$3 be added to the taxpayer's personal income tax liability and
be paid into the fund. In the case of married taxpayers filing a
joint return, each spouse may designate that $3 be added to that
spouse's personal income tax liability and be paid into the
fund. A taxpayer who designates a payment under this section
shall add the required amount to the payment due the
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Commonwealth or subtract the required amount from the refund due
the taxpayer, as appropriate. All such designated tax revenues
shall be paid into the fund. The check-off and instructions
shall be prominently displayed on the first page of the return
form. The instructions shall readily indicate that any such
designations neither increase or decrease an individual's tax
liability.
(b) Attorneys.--An attorney licensed to practice law in this
Commonwealth shall make a contribution to the fund of up to $50
when applying for or renewing a license to practice law. The
license form shall provide a check-off for the attorney to
designate the donation. The Court Administrator shall deposit
all contributions into the fund.
(c) Additional funds.--In the event that revenues generated
under subsections (a) and (b) are insufficient to fully fund the
fund, the General Assembly shall allocate sufficient additional
moneys from the General Fund to meet the fund's needs.
Section 1607-A. Certification of moneys in fund.
By June 30 of each year, the State Treasurer shall certify to
the secretary the current balance available in the fund.
Section 1608-A. Qualification for Pennsylvania Fair Campaign
funding.
(a) Qualifications.--
(1) Any candidate for Statewide judicial office as
described in section 1603-A may apply for Pennsylvania Fair
Campaign funding under this article if the candidate meets
the contributory thresholds established in subsection (b) and
otherwise conforms to the requirements of this article. No
candidate shall be obligated to apply for funding under this
article, and if any candidate elects not to apply, only the
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provisions of this article pertaining to limits on
contributions, as set forth in section 1614-A(a), shall be
applicable to such person and that person's candidacy. Any
candidate electing to receive Pennsylvania Fair Campaign
funding must declare the candidate's intention to do so and
specify the State office for which he is a candidate. A
candidate electing to receive Pennsylvania Fair Campaign
funding must declare the candidate's intention to do so upon
forming a political action committee.
(2) This declaration shall be filed on a form designed
and provided by the department and submitted with the
candidate's submission of the candidates' nominating petition
to the department. Any and all committees authorized to
receive contributions or make expenditures for the candidate
who has so declared must abide by the provisions of this
article, unless otherwise specified in this article. Any
candidate who for any reason has the candidate's name
withdrawn from the ballot for a Statewide judicial election,
after receipt of Pennsylvania Fair Campaign funds, shall
return all moneys received to the fund as well as offering
back qualifying contributions for that Statewide judicial
office.
(b) Qualifying contributions.--
(1) In order to qualify for Pennsylvania Fair Campaign
funding in the general election, a candidate must receive
subsequent to the date of the primary election but prior to
the date of the general election qualifying contributions of
the following amounts:
QualifyingContributions
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Office Required
(i) Supreme Court Justices $45,000
(ii) Superior Court Judges $45,000
(iii) Commonwealth Court Judges $45,000
(2) A candidate must receive contributions from at least
350 contributors in amounts of at least $10.
(3) In order to qualify for Pennsylvania Fair Campaign
funding in the primary election, a candidate must receive
prior to the date of the primary election, but subsequent to
the immediately preceding general election, one-half of the
amount specified in paragraph (1) for the appropriate office.
The threshold number of contributors shall be one-half the
number designated in paragraph (2).
(4) (i) The term "qualifying contribution" shall
include any contribution, as defined in section 1621(b),
which has all of the following characteristics:
(A) Made by an individual resident of
Pennsylvania or by a political action committee, as
defined in section 1621(l), whose address is in
Pennsylvania.
(B) Made by a written instrument which indicates
the contributor's full name and mailing residence and
is not intended to be returned to the contributor or
transferred to another political committee or
candidate.
(ii) If a contributor receives goods or services of
value in return for a contribution, the qualifying
contribution shall be calculated as the original
contribution, minus the fair market value of the goods or
services received.
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(iii) Any contribution which exceeds $500 in the
aggregate shall be deemed only a $500 qualifying
contribution for the purposes of this section and for the
matching payment provisions of section 1609-A.
(c) Auditor.--The secretary shall select an auditor pursuant
to the provisions of section 1635(a). Each candidate who elects
to apply for Pennsylvania Fair Campaign funding shall provide
evidence that the candidate has raised the qualifying
contributions required by this section, which evidence shall be
verified and certified as correct to the secretary by the
auditor selected under this subsection.
Section 1609-A. Pennsylvania Fair Campaign funding formula.
(a) Matching payments.--Every candidate who qualifies for
Pennsylvania Fair Campaign funding for either the primary or the
general election pursuant to section 1608-A shall receive
matching payments from the fund in the amount of $2.50 for each
dollar of qualifying contribution as defined in section 1608-
A(b)(3).
(b) Calculation.--The $2.50 matching payment for each dollar
of qualifying contributions provided by this section shall be
provided only for qualifying contributions raised which exceed
the threshold amounts specified in section 1608-A(b) and not to
those qualifying contributions which are attributable to meeting
such threshold amounts necessary to qualify for Pennsylvania
Fair Campaign funding.
(c) Time frames.--
(1) Only those contributions made during the period
between a declaration of candidacy and the primary election
shall be eligible for matching payments from the fund for the
primary election.
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(2) Only those contributions made during the period
between the primary election and the general election shall
be eligible for matching payments from the fund for the
general election.
Section 1610-A. Limitations on Pennsylvania Fair Campaign
funding.
(a) Limit.--Every candidate who qualifies for and receives
Pennsylvania Fair Campaign funding pursuant to the formula
established in section 1609-A shall be entitled to receive no
more than the maximum amount specified in subsection (b) for the
office the candidate is seeking.
(b) General election.--
(1) The maximum amount of Pennsylvania Fair Campaign
funding available for the general election for each candidate
under this article shall be as follows:
Office Maximum Pennsylvania FairCampaign Funding
(i) Supreme Court Justices $200,000
(ii) Superior Court Judges $200,000
(iii) Commonwealth Court Judges $200,000
(2) The maximum amount of Pennsylvania Fair Campaign
funding available for the primary election for each candidate
under this article shall be one-half of the appropriate
figure in paragraph (1).
(3) If a participating candidate is identified in
negative advertisements by an entity other than a candidate
for the same office, the participating candidate may qualify
for additional moneys from the fund up to an amount equal to
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50% of the maximum provided in paragraphs (1) and (2). The
secretary shall determine the appropriate supplemental amount
to be distributed by identifying the amount spent by the
noncandidate advertising campaign and dividing the amount by
two.
(c) Prohibitions.--Notwithstanding any other provisions of
this article, no Pennsylvania Fair Campaign funding shall be
provided to the following:
(1) Candidates in the general election who have been
nominated by both major political parties.
(2) Candidates in the primary election who are unopposed
for the nomination with the exception of those candidates who
are running in a judicial retention election.
(d) Definition.--As used in this section, "major political
party" shall mean a political party whose candidate for Governor
received either the highest or second highest number of votes in
the preceding gubernatorial election.
Section 1611-A. Time of payments.
(a) General rule.--Beginning 120 days prior to the relevant
primary or general election, the secretary shall make payments
authorized by this article at least every two weeks. However,
except for the final payment, no payment shall be due or paid if
the payment does not equal at least $5,000 in amount.
(b) Insufficient funds.--If in the secretary's opinion
insufficient funds exist in the fund to provide the anticipated
full funding to eligible candidates in a given primary or
general election, the secretary shall distribute the available
funds to qualified candidates on a pro rata basis. In
determining whether sufficient funds are available, the
secretary shall not take into consideration the needs of any
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subsequent primary or general elections but shall base the
decision solely on the immediate primary or election at hand.
Section 1612-A. Use of Pennsylvania Fair Campaign funds by
candidates.
(a) Use.--Pennsylvania Fair Campaign funds distributed to
candidates pursuant to this article may be used only for the
election for which they are distributed and only for direct
expenses incurred exclusively for influencing the outcome of the
election.
(b) Prohibitions.--No fund moneys may be used:
(1) To transfer to other candidates or to candidate
political committees, political action committees or
multicandidate committees.
(2) To pay for expenditures incurred after the date of
the general election.
(3) For anything not directly or tangibly related to the
participating candidate's campaign.
(c) Single account.--Pennsylvania Fair Campaign funds
distributed to a candidate pursuant to this article shall be
placed in a single bank account. Expenditures from this account
shall be made only for campaign expenses listed in subsection
(a).
Section 1613-A. Expenditures.
(a) Prior to general election.--Expenditures made by a
candidate who accepts Pennsylvania Fair Campaign funding and the
candidate's authorized committees, for all purposes and from all
sources, including, but not limited to, amounts of Pennsylvania
Fair Campaign funds distributed under this article, proceeds of
loans, gifts, contributions from any source or personal funds,
subsequent to the date of the primary election, but prior to the
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date of the general election, may not exceed $325,000.
(b) Prior to primary election.--Expenditures made by a
candidate and the candidate's authorized committees, subsequent
to January 1 but prior to the date of the primary election, may
not exceed one-half of the amount specified in subsection (a).
(c) Exception.--Notwithstanding any other provision of this
article, a candidate who accepts public funding pursuant to the
formula established in section 1609-A, but whose major political
party opponent elects not to apply for such public funding,
shall not be bound by the expenditure limits specified in this
section.
Section 1614-A. Limitations on certain contributions.
(a) Limits.--No candidate for a Statewide judicial office
shall accept contributions for any primary, general or special
election which exceed those specified limits as follows:
(1) Individual, up to $1,000 in the aggregate.
(2) Political action committees and candidate's
political committees as defined in section 1621(l), as
follows:
(i) those with ten or fewer donors up to the amount
established in paragraph (1) for an individual;
(ii) those with 11 to 50 donors up to double the
amount established in paragraph (1) for an individual;
(iii) those with 51 to 100 donors up to triple the
amount established in paragraph (1) for an individual;
(iv) those with 101 to 1000 donors up to quadruple
the amount established in paragraph (1) for an
individual; and
(v) those with 1001 or more donors up to quintuple
the amount established in paragraph (1) for an
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individual.
(3) For the purposes of this section, a "donor" is any
one individual or any one political committee, regardless of
the number of times the individual or committee has made
donations.
(4) Political party committees may contribute to any
judicial candidate an amount up to ten times that permitted
for the largest political action committee.
(b) Personal funds.--Any candidate for a Statewide judicial
office who accepts Pennsylvania Fair Campaign funding may not
spend in aggregate more than $25,000 of the candidate's own and
the candidate's spouse's personal funds for each primary,
general or special election. If the candidate does not accept
Pennsylvania Fair Campaign funding, this limit shall not apply.
(c) Aggregate contributions.--Aggregate contributions during
the year of the election by a political party committee or
candidate's political committee to candidates receiving
Pennsylvania Fair Campaign funds shall not exceed the sum of
contributions from individuals to the committee, provided that
whenever contributions in the aggregate during the year of the
election from an individual exceed $1,000 only $1,000 shall be
included in that sum.
(d) Prohibition.--No person shall make or offer, and no
candidate or political committee affiliated with a candidate
shall accept, any contribution after 5 p.m. on the day prior to
the general election. This prohibition shall remain in effect
until the year in which the judicial candidate next seeks
retention.
Section 1615-A. Inflation indexing of certain limitations.
The dollar figures contained in sections 1608-A, 1610-A and
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1613-A may be adjusted not more than once annually during March
at a rate equal to the average percentage change in the All-
Urban Consumer Price Index for the Pittsburgh, Philadelphia and
Scranton standard metropolitan statistical areas as published by
the Bureau of Labor Statistics of the United States Department
of Labor, or any successor agency, occurring in the prior
calendar year. The base year shall be 2010. The average shall be
calculated and certified by the secretary annually by adding the
percentage increase in each of the three areas and dividing by
three. The calculation and any resulting new figures shall be
published in the Pennsylvania Bulletin during March.
Section 1616-A. Annual report.
The secretary shall report annually to the Governor and the
General Assembly on the operations of Pennsylvania Fair Campaign
funds as provided by this article. The report shall include, but
not be limited to, the revenues and expenditures in the fund,
the amounts distributed to candidates, the results of any audits
performed on candidates in compliance with the provisions of
this article and any prosecutions brought for violations of this
article.
Section 1617-A. Return of excess funds.
All unexpended campaign funds in a candidate's and his
authorized committees' possession 60 days after the election
shall be returned to the secretary for deposit in the
Pennsylvania Fair Campaign Fund, up to the amount of the funds
which were distributed to the candidate under this article.
Section 1618-A. Penalties.
(a) Wrongful obtaining of funds.--A person who violates the
provisions of this article and who, as a result, obtains
Pennsylvania Fair Campaign funds to which the person is not
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entitled commits a misdemeanor of the first degree and shall,
upon conviction, be sentenced to pay a fine of not more than
$10,000 or three times the amount of funds wrongfully obtained
or to imprisonment for not more than five years, or both, and
forfeiture of office.
(b) Wrongful use or expenditure.--A person who violates
section 1612-A or 1613-A commits a misdemeanor of the first
degree, and shall, upon conviction, be sentenced to pay a fine
of not more than $10,000 or three times the amount of funds that
were wrongfully used or expended or to imprisonment for not more
than five years, or both, and forfeiture of office.
(c) Other violation.--Except as provided in subsections (a)
and (b), a person who violates any provision of this article
commits a misdemeanor of the third degree and shall, upon
conviction, be subject to a fine of not more than $1,000 or to
imprisonment for not more than one year, or both, and forfeiture
of office.
Section 3. The addition of Article XVI-A of the act shall
apply to returns of taxpayers for calendar years commencing
January 1, 2012, and thereafter. Pennsylvania Fair Campaign
funding shall be first provided for candidates for Statewide
judicial office in the general election of November 2013 and in
each primary, municipal and general election thereafter.
Section 4. This act shall take effect immediately.
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