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                                                      PRINTER'S NO. 2015

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1650 Session of 1999


        INTRODUCED BY VITALI, LEVDANSKY, MASLAND, FREEMAN, KREBS,
           M. COHEN, HANNA, JAMES, CAPPABIANCA, JOSEPHS, MANDERINO,
           CURRY, WILLIAMS, STEELMAN, DALEY, LAUGHLIN, SURRA, TIGUE,
           VAN HORNE, MELIO, PETRONE, MICHLOVIC, SANTONI, TRICH AND
           WALKO, JUNE 14, 1999

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 14, 1999

                                     AN ACT

     1  Providing for public financing for candidates for the office of
     2     Governor and Lieutenant Governor; establishing the
     3     Pennsylvania Fair Campaign Fund; providing qualifications for
     4     funding, for payments, for use of funds, for authorized
     5     expenditures, for limitation on contributions, for return of
     6     funds and for penalties.

     7                         TABLE OF CONTENTS
     8  Section 1.  Short title.
     9  Section 2.  Definitions.
    10  Section 3.  Application of act.
    11  Section 4.  Administration.
    12  Section 5.  Pennsylvania Fair Campaign Fund established.
    13  Section 6.  Funding the Pennsylvania Fair Campaign.
    14  Section 7.  Certification of moneys in fund.
    15  Section 8.  Qualification for funding.
    16  Section 9.  Funding formula.
    17  Section 10.  Limitations on funding.
    18  Section 11.  Time of payments.


     1  Section 12.  Use of funds by candidates.
     2  Section 13.  Expenditures.
     3  Section 14.  Annual report.
     4  Section 15.  Return of excess funds.
     5  Section 16.  Limitations on certain contributions.
     6  Section 17.  Interactive gubernatorial primary and general
     7                 election debates; participation by candidates.
     8  Section 18.  Time and contents; sponsors.
     9  Section 19.  Failure of candidate to participate in debates;
    10                 complaint; hearing; determination.
    11  Section 20.  Penalties.
    12  Section 21.  Appropriation.
    13  Section 22.  Severability.
    14  Section 23.  Applicability.
    15  Section 24.  Effective date.
    16     The General Assembly of the Commonwealth of Pennsylvania
    17  hereby enacts as follows:
    18  Section 1.  Short title.
    19     This act shall be known and may be cited as the Pennsylvania
    20  Gubernatorial Public Financing Act.
    21  Section 2.  Definitions.
    22     The following words and phrases when used in this act shall
    23  have the meanings given to them in this section unless the
    24  context clearly indicates otherwise:
    25     "Commission."  The State Ethics Commission.
    26     "Contribution."  Any payment, gift, subscription, assessment,
    27  contract, payment for services, dues, loan, forbearance, advance
    28  or deposit of money or any valuable thing to a candidate or
    29  political committee made for the purpose of influencing any
    30  election in this Commonwealth or for paying debts incurred by or
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     1  for a candidate or committee before or after any election. The
     2  term includes the purchase of tickets for events such as
     3  dinners, luncheons, rallies and all other fund-raising events;
     4  the granting of discounts or rebates not available to the
     5  general public; the granting of discounts or rebates by
     6  television and radio stations and newspapers not extended on an
     7  equal basis to all candidates for the same office; and any
     8  payments provided for the benefit of any candidate, including
     9  any payments for the services of any person serving as an agent
    10  of a candidate or committee by a person other than the candidate
    11  or committee or a person whose expenditures the candidate or
    12  committee must report under the act of June 3, 1937 (P.L.1333,
    13  No.320), known as the Pennsylvania Election Code. The word
    14  "contribution" includes any receipt or use of anything of value
    15  received by a political committee from another political
    16  committee and also includes any return on investments by a
    17  political committee.
    18     "Declaration of candidacy."  The point in a person's campaign
    19  for political office at which that person becomes in compliance
    20  with section 1622 of the act of June 3, 1937 (P.L.1333, No.320),
    21  known as the Pennsylvania Election Code.
    22     "Expenditure."
    23         (1)  The payment, distribution, loan or advancement of
    24     money or any valuable thing by a candidate, political
    25     committee or other person for the purpose of influencing the
    26     outcome of an election.
    27         (2)  The payment, distribution, loan, advance or transfer
    28     of money or other valuable thing between or among political
    29     committees.
    30         (3)  The providing of a service or other valuable thing
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     1     for the purpose of influencing the outcome of a nomination or
     2     election of any person to any public office to be voted for
     3     in this Commonwealth.
     4         (4)  The payment or providing of money or other valuable
     5     thing by any person other than a candidate or political
     6     committee to compensate any person for services rendered to a
     7     candidate or political committee.
     8     "Fund."  The Pennsylvania Fair Campaign Fund established in
     9  section 5.
    10     "Independent expenditure."  An expenditure by a person made
    11  for the purpose of influencing an election without cooperation
    12  or consultation with any candidate or any political committee
    13  authorized by that candidate and which is not made in concert
    14  with or at the request or suggestion of any candidate or
    15  political committee or agent thereof.
    16     "Major political party."  A political party whose candidate
    17  for Governor received either the highest or second highest
    18  number of votes in the preceding gubernatorial election.
    19  Section 3.  Application of act.
    20     (a)  Limits.--The provisions of this act shall be applicable
    21  to candidates for the offices of Governor and Lieutenant
    22  Governor.
    23     (b)  Single candidacy.--For the purposes of this act insofar
    24  as it relates to funding of nominated candidates in the general
    25  election, a political party's or political body's nominated
    26  candidates for Governor and Lieutenant Governor shall be
    27  considered as one candidacy, and the provisions specifically
    28  applicable to the Governor shall be applicable to the combined
    29  candidacy.
    30  Section 4.  Administration.
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     1     The provisions of this act shall be administered by the State
     2  Ethics Commission. The commission may adopt rules and
     3  regulations as may be required to implement the provisions of
     4  this act and to carry out its purpose.
     5  Section 5.  Pennsylvania Fair Campaign Fund established.
     6     There is hereby established a special restricted receipts
     7  fund in the State Treasury to be known as the Pennsylvania Fair
     8  Campaign Fund. Payments shall be made into this fund pursuant to
     9  section 6, and disbursements shall be made from the fund only
    10  upon the warrant of the commission and a warrant of the State
    11  Treasurer. As much of the moneys in the fund as are necessary to
    12  make payments to candidates as provided in this act are
    13  appropriated from the Pennsylvania Fair Campaign Fund on a
    14  continuing basis for the purpose of such payments.
    15  Section 6.  Funding the Pennsylvania Fair Campaign.
    16     (a)  Designation of taxes.--Beginning with tax years
    17  commencing January 1, 1999, and thereafter, each individual
    18  subject to the tax imposed by Article III of the act of March 4,
    19  1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, whose
    20  tax liability for the year is $5 or more may designate $5 of his
    21  personal income taxes to be paid into the fund. In the case of
    22  married taxpayers filing a joint return, each spouse may
    23  designate $5 to be paid into the fund if their tax liability is
    24  $10 or more. All of these designated tax revenues shall be paid
    25  into the fund. The check-off and instructions shall be
    26  prominently displayed on the first page of the return form. The
    27  instructions shall readily indicate that these designations
    28  neither increase nor decrease an individual's tax liability.
    29     (b)  Appropriation.--The General Assembly shall appropriate
    30  money to the Fair Campaign Fund sufficient to fully fund all
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     1  requirements of this act including the administrative,
     2  investigative and enforcement responsibilities of the State
     3  Ethics Commission. Upon notice by the commission, the General
     4  Assembly shall appropriate to the commission out of the General
     5  Fund such additional sums as may be required to carry out the
     6  purposes of this act if the sums first appropriated become
     7  inadequate.
     8  Section 7.  Certification of moneys in fund.
     9     By June 30 of each year, the State Treasurer shall certify to
    10  the commission the current balance available in the fund.
    11  Section 8.  Qualification for funding.
    12     (a)  General rule.--Any candidate for the offices of Governor
    13  and Lieutenant Governor may apply for funding under this act if
    14  the candidate meets the contributory thresholds established in
    15  subsection (b) and otherwise conforms to the requirements of
    16  this act. No candidate shall be obligated to apply for funding
    17  under this act and if any candidate elects not to apply, the
    18  provisions of this act pertaining to limits on expenditures or
    19  the use of his personal funds shall be inapplicable to the
    20  person and his candidacy. Any candidate electing to receive
    21  funding under this act shall declare his intention to do so and
    22  specify the office for which he is a candidate. No candidate for
    23  the office of Governor may elect to receive funding under this
    24  act for a general election unless the candidate elected to
    25  receive funding under this act for the primary election. Any
    26  committee authorized to receive contributions or make
    27  expenditures for the candidate who has so declared shall abide
    28  by the provisions of section 16. Any candidate who for any
    29  reason has his name withdrawn from the ballot, after receipt of
    30  funds under this act, shall return to the fund all unspent money
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     1  received from the fund.
     2     (b)  Qualification amounts.--
     3         (1)  In order to qualify for funding in a general
     4     election, a candidate for Governor must receive subsequent to
     5     the date of that candidate's primary election but prior to
     6     the date of the candidate's general election $200,000 in
     7     qualifying contributions.
     8         (2)  In order to qualify for funding in a primary
     9     election, a candidate must receive prior to the date of the
    10     primary election, but subsequent to January 1 of the year in
    11     which that candidate runs for office. The following amounts:
    12         Office              Qualifying Contributions Required
    13     (i)  Governor                     $100,000
    14     (ii)  Lieutenant Governor           50,000
    15         (3)  Definition:
    16             (i)  The term "qualifying contribution" includes any
    17         contribution which has all of the following
    18         characteristics:
    19                 (A)  Made by an individual resident of
    20             Pennsylvania.
    21                 (B)  Made by a written instrument which indicates
    22             the contributor's full name and mailing residence and
    23             is not intended to be returned to the contributor or
    24             transferred to another political committee or
    25             candidate.
    26             (ii)  If a contributor receives goods or services of
    27         value in return for his contribution, the qualifying
    28         contribution shall be calculated as the original
    29         contribution, minus the fair market value of the goods or
    30         services received.
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     1     (c)  Evidence of qualifying contributions.--Each candidate
     2  who elects to apply for funding under this act shall provide
     3  evidence that the candidate has raised the qualifying
     4  contributions required by this section which evidence shall be
     5  verified and certified as correct by the auditors of the State
     6  Ethics Commission.
     7     (d)  Waiver.--A candidate who has accepted public funding
     8  under this act may apply to the commission for a waiver of the
     9  contribution limits set forth in section 10 and/or the spending
    10  limits contained in section 13 if the amount of independent
    11  expenditures for communications advocating the defeat of the
    12  candidate or election of his opponent require the candidate
    13  applying for the waiver to spend above the limits specified in
    14  section 13 in order to answer the communications paid for by the
    15  independent expenditures. The commission shall issue regulations
    16  setting guidelines for granting or denying requests for a waiver
    17  submitted under this section.
    18     (e)  Audit.--The commission shall conduct a complete audit of
    19  all candidates receiving funds under this act. Such audits shall
    20  be conducted the year following the election for which funds
    21  were distributed. The Secretary of the Commonwealth shall
    22  provide the commission at no cost all reports of contributions
    23  and expenditures filed pursuant to Article XVI of the act of
    24  June 3, 1937 (P.L.1333, No.320) known as the Pennsylvania
    25  Election Code, by candidates for Governor and Lieutenant
    26  Governor, their political committees and all other political
    27  committees who have contributed to such candidates.
    28     (f)  Findings.--The auditors shall conduct their audit in
    29  accord with sound accounting principles and shall make findings
    30  of any possible violations of this act. All audited candidates
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     1  and their committees shall furnish any records to the
     2  accountants which the accountants deem necessary for the
     3  completion of their work.
     4     (g)  Public report.--The commission shall make public the
     5  report of the auditors and shall provide a copy to the Attorney
     6  General for the institution of such criminal proceedings as he
     7  or she shall deem necessary.
     8  Section 9.  Funding formula.
     9     (a)  Matching payments.--Every candidate who qualifies for
    10  funding for an election pursuant to section 8 shall receive
    11  matching payments from the fund in the amount of $2 for each
    12  dollar of qualifying contribution.
    13     (b)  Threshold amounts.--The $2 for each dollar of qualifying
    14  contributions provided by this section shall be provided only
    15  for qualifying contributions raised which exceed the threshold
    16  amounts specified in section 8 and not to those qualifying
    17  contributions which are attributable to meeting the threshold
    18  amounts necessary to qualify for funding under this act.
    19     (c)  Eligibility.--
    20         (1)  Only those qualifying contributions made during the
    21     period between January 1 of the year in which the candidate
    22     runs for office and the primary election shall be eligible
    23     for matching payments from the fund for the primary election.
    24         (2)  Only those qualifying contributions made during the
    25     period between the primary election and the general election
    26     of the year in which that candidate runs for office shall be
    27     eligible for matching payments from the fund for the general
    28     election.
    29     (d)  Reporting requirements.--Matching funds shall not be
    30  provided for any qualifying contributions unless the reporting
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     1  requirements required by the commission are satisfied.
     2  Section 10.  Limitations on funding.
     3     (a)  General rule.--Every candidate who qualifies for and
     4  receives funding pursuant to the formula established by this act
     5  shall be entitled to receive no more than the maximum amount
     6  specified in subsection (b) for the office the candidate is
     7  seeking.
     8     (b)  Maximum amount.--
     9         (1)  The maximum amount of funding available for each
    10     candidate for Governor at a general election under this act
    11     shall be $5,200,000.
    12         (2)  The maximum amount of funding available for the
    13     primary election for each candidate under this act shall be
    14     as follows:
    15             Office              Maximum Pennsylvania Fair
    16                                      Campaign Funding
    17       (i)  Governor                      $2,600,000
    18      (ii)  Lieutenant Governor             600,000
    19     (c)  Restrictions on funding.--Notwithstanding any other
    20  provisions of this act, no funding shall be provided to the
    21  following:
    22         (1)  Candidates in the general election who have received
    23     the nomination of both major political parties and have no
    24     opposition.
    25         (2)  Candidates in the primary election who are unopposed
    26     for the nomination.
    27  Section 11.  Time of payments.
    28     Beginning 90 days prior to the relevant election, the
    29  commission shall make payments authorized by this act at least
    30  every two weeks. However, except for the final payment, no
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     1  payment shall be due or paid if the payment does not equal at
     2  least $5,000.
     3  Section 12.  Use of funds by candidates.
     4     (a)  General rule.--Funds distributed to candidates pursuant
     5  to this act may be used only for the election for which they are
     6  distributed and only for the purposes set forth in this act
     7  except that no fund moneys may be used:
     8         (1)  To transfer to other candidates or to committees of
     9     other candidates or to political committees.
    10         (2)  To pay for expenditures incurred after the date of
    11     the general election.
    12     (b)  Restricted account.--Funds distributed to a candidate
    13  pursuant to this act shall be placed in a single bank account.
    14  Expenditures from this account shall be made only for campaign
    15  expenses listed in subsection (a).
    16  Section 13.  Expenditures.
    17     (a)  Total limits.--Expenditures made by a candidate for
    18  Governor and his authorized committees, for all purposes and
    19  from all sources, including, but not limited to, amounts of
    20  funds distributed under this act, proceeds of loans, gifts,
    21  contributions from any source or personal funds, subsequent to
    22  the date of the primary election but prior to the date of the
    23  general election, may not exceed $8,000,000.
    24     (b)  Primary election.--Expenditures made by a candidate and
    25  his authorized committees, subsequent to January 1 of the year
    26  in which the candidate runs for office but prior to the date of
    27  the primary election, may not exceed the following unless
    28  otherwise provided:
    29             Office                Total Expenditure Limits
    30     (1)  Governor                      $4,000,000
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     1     (2)  Lieutenant Governor            1,000,000
     2     (c)  Exception.--Notwithstanding any other provision of this
     3  act, a candidate who accepts public funding pursuant to the
     4  formula established, but whose major political party opponent in
     5  a general election elects not to apply for the public funding,
     6  shall not be bound by the expenditure limits specified in this
     7  section. A candidate who accepts public funding shall be
     8  eligible to qualify for those fair campaign funds which would
     9  have otherwise been available to the opponent who has chosen not
    10  to apply for funding from the fund.
    11     (d)  Multiple candidates.--Notwithstanding any other
    12  provision of this act, a candidate who accepts public funding
    13  pursuant to the formula established, but whose major political
    14  party opponents in a primary election elect to not apply for the
    15  public funding, shall not be bound by the expenditure limits
    16  specified in this section. If there is more than one candidate
    17  in a major political party in a primary election, the fair
    18  campaign funds which would have otherwise been available to each
    19  opponent who has elected to not apply for the public funding
    20  shall be divided equally among the candidates who accept public
    21  financing.
    22  Section 14.  Annual report.
    23     The commission shall report annually to the Governor and the
    24  General Assembly on the operations of funding as provided by
    25  this act. This report shall include, but not be limited to, the
    26  revenues and expenditures in the fund, the amounts distributed
    27  to candidates, the results of any audits performed on candidates
    28  in compliance with this act and any prosecutions brought for
    29  violations of this act.
    30  Section 15.  Return of excess funds.
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     1     (a)  Unexpended funds, primary election.--All unexpended
     2  campaign funds in a candidate's and his authorized committees'
     3  possession 60 days after a primary election shall be returned to
     4  the State board for deposit in the fund, up to the amount of the
     5  funds which were distributed to the candidate under this act for
     6  the primary election.
     7     (b)  Unexpended funds, general election.--All unexpended
     8  campaign funds in a candidate's and his authorized committees'
     9  possession 60 days after a general or municipal election shall
    10  be returned to the State board for deposit in the fund, up to
    11  the amount of the funds which were distributed to the candidate
    12  under this act for the general election.
    13  Section 16.  Limitations on certain contributions.
    14     (a)  From individual persons and political committees.--
    15  Aggregate contributions, including in-kind contributions, from
    16  any person or political committee to any candidate for Governor
    17  or Lieutenant Governor, his authorized committee or agent shall
    18  not exceed $2,000 for each election. Furthermore, for each
    19  election, no candidate, his authorized committee or agent shall
    20  accept or receive more than $2,000 in aggregate contributions,
    21  including in-kind contributions from any person.
    22     (b)  Source.--A gift, subscription, loan, advance or deposit
    23  of money or anything of value to a candidate shall be considered
    24  a contribution both by the original source of the contribution
    25  and by any intermediary or conduit if the intermediary or
    26  conduit:
    27         (1)  exercises any direction over the making of the
    28     contribution; or
    29         (2)  solicits the contribution or arranges for the
    30     contribution made and directly or indirectly makes the
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     1     candidate aware of such intermediary or conduit's role in
     2     soliciting or arranging the contribution for the candidate.
     3     (c)  Exception.--For purposes of subsection (g), a
     4  contribution shall not be considered to be a contribution by an
     5  intermediary or conduit to the candidate if:
     6         (1)  the intermediary or conduit has been retained by the
     7     candidate's committee for the purpose of fundraising and is
     8     reimbursed for expenses incurred in soliciting contributions;
     9         (2)  in the case of an individual, the candidate has
    10     expressly authorized the intermediary or conduit to engage in
    11     fundraising, or the individual occupies a significant
    12     position within the candidate's campaign organization; or
    13         (3)  in the case of a political committee, the
    14     intermediary or conduit is the authorized committee of the
    15     candidate.
    16     (d)  Personal funds.--No candidate for Governor or Lieutenant
    17  Governor who accepts public funding in accordance with this act
    18  may contribute more than $25,000 per election from personal
    19  funds.
    20     (e)  Applicability.--The provisions of this section apply to
    21  any contribution made for the purpose of influencing any
    22  election to the office of Governor or Lieutenant Governor.
    23     (f)  Year contributed.--For purposes of this section, any
    24  contribution made to a candidate for Governor or Lieutenant
    25  Governor in a year other than the calendar year in which the
    26  election is held with respect to which such contribution is made
    27  is considered to be made during the calendar year in which such
    28  election is held.
    29  Section 17.  Interactive gubernatorial primary and general
    30                 election debates; participation by candidates.
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     1     (a)  Debates, general election.--In any year in which a
     2  primary election is to be held to nominate candidates for the
     3  offices of Governor and Lieutenant Governor, there shall be held
     4  among the several candidates for each nomination a series of
     5  interactive primary debates in which all candidates who have
     6  filed nomination petitions in accordance with the act of June 3,
     7  1937 (P.L.1333, No.320), known as the Pennsylvania Election
     8  Code, for these offices and have applied or intend to apply to
     9  receive money for election campaign expenses from the fund shall
    10  participate and in which any other candidate for that nomination
    11  may elect to participate, provided that the other candidate
    12  notifies the commission of the candidate's intent to participate
    13  no later than 20 days before the date of the debate. In any year
    14  in which no candidate or only one candidate for a nomination is
    15  required or elects to participate, no primary debate shall be
    16  required to be held under this subsection.
    17     (b)  Participation by candidates.--In any year in which a
    18  general election is to be held for the offices of Governor and
    19  Lieutenant Governor, there shall be held a series of interactive
    20  debates in which all candidates who have received nominations
    21  for these offices at the primary or through the filing of
    22  nomination papers in accordance with the Pennsylvania Election
    23  Code and have applied or intend to apply to receive money for
    24  election campaign expenses from the fund shall participate and
    25  in which any other candidate for election may participate,
    26  provided that the other candidate notifies the commission of the
    27  candidate's intent to participate no later than 20 days before
    28  the date of the debate. In any year in which no candidate or
    29  only one such candidate for a nomination is required or elects
    30  to participate, no debate shall be required to be held under
    19990H1650B2015                 - 15 -

     1  this subsection.
     2  Section 18.  Time and contents; sponsors.
     3     (a)  Number of debates, primary election.--There shall be two
     4  gubernatorial and two lieutenant gubernatorial primary debates.
     5  Each of the debates shall be at least one hour in duration. The
     6  first debate shall occur not earlier than the date on which the
     7  names of candidates to appear on the primary ballot are
     8  certified by the Secretary of the Commonwealth in accordance
     9  with section 916 of the act of June 3, 1937 (P.L.1333, No.320),
    10  known as the Pennsylvania Election Code, and the second debate
    11  shall occur not later than the Tuesday preceding the primary
    12  election.
    13     (b)  Number of debates, general elections.--There shall be
    14  three gubernatorial and three lieutenant gubernatorial debates.
    15  Each of the debates shall be at least one hour. The first debate
    16  shall occur not earlier than 50 days before the date of the
    17  general election, and the second debate shall occur not later
    18  than the Tuesday preceding the election.
    19     (c)  Independent debates.--Private organizations which are
    20  not affiliated with any political party or with any holder of or
    21  candidate for public office, which have not endorsed any
    22  candidate in the pending primary or general election for the
    23  office of Governor, and which have previously sponsored one or
    24  more televised debates for Statewide office since 1986 shall be
    25  eligible to sponsor one or more interactive gubernatorial
    26  primary debates or interactive gubernatorial election debates
    27  under subsection (a) or (b), respectively.
    28     (d)  Applications for private sponsor.--The commission shall
    29  accept applications from eligible private organizations to
    30  sponsor one or more of the interactive debates. Applications to
    19990H1650B2015                 - 16 -

     1  sponsor debates under subsection (a) shall be submitted to the
     2  commission no later than March 15 of any year in which a primary
     3  election is to be held to nominate candidates for the office of
     4  Governor and Lieutenant Governor, and applications to sponsor
     5  debates under subsection (b) shall be submitted to the
     6  commission no later than July 1 of any year in which a general
     7  election is to be held to fill the office of Governor.
     8     (e)  Limitations.--Where the number of eligible applicants to
     9  sponsor primary debates or election debates exceed the number
    10  prescribed under subsection (a) and (b), respectively, the
    11  commission shall select the private organizations from among the
    12  applicants within 30 days of the last day for submitting those
    13  applications, as provided under this subsection. To the maximum
    14  extent practicable and feasible, the commission shall select a
    15  different private organization to sponsor each of the
    16  interactive gubernatorial debates, but shall not be precluded
    17  from selecting the same private organization to sponsor more
    18  than one debate.
    19     (f)  Debate rules, location, date, time.--The private
    20  organizations selected by the commission shall be responsible
    21  for selecting the date, time and location of the debates,
    22  subject to the limitations set forth in this section. The rules
    23  for conducting each debate shall be solely the responsibility of
    24  the private organizations so selected, but shall not be made
    25  final without consultation with both the chairman of the State
    26  committee of each political party in the case of primary
    27  debates, and with a representative designated by each of the
    28  participating candidates in the case of election debates.
    29  Section 19.  Failure of candidate to participate in debates;
    30                 complaint; hearing; determination; penalties.
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     1     (a)  Hearing.--The commission shall have the power and duty,
     2  upon receipt of a complaint against a candidate for nomination
     3  for election or for election for the office of Governor or
     4  Lieutenant Governor who is required to participate in primary
     5  debates or election debates, respectively, to hold a hearing to
     6  determine whether that candidate has failed to participate in
     7  debates. If, at the conclusion of a hearing under this section,
     8  the commission determines by majority vote that a candidate
     9  required to participate under this act has failed to do so, the
    10  chairman shall immediately inform the candidate in writing of
    11  that determination, identifying in that writing the date and
    12  circumstances of the failure. If, after having found that a
    13  candidate required to participate in a primary or election
    14  debate has failed to do so, the commission further finds that
    15  the failure occurred under circumstances which were beyond the
    16  control of the candidate and were of such a nature that a
    17  reasonable person, taking into account the purposes of this act
    18  and the relevant facts of the case, would find the failure
    19  justifiable or excusable, then the candidate shall not be
    20  subject to any penalty or liability for failing to participate.
    21  The candidate charged with failure to participate shall have the
    22  burden of showing justification or excuse.
    23     (b)  Failure to participate.--The campaign of any candidate
    24  or former candidate who shall have been required to participate
    25  in a primary debate or election debate under this act, but who
    26  has been found to have failed to do so without reasonable
    27  justification or excuse, shall be liable for return of moneys
    28  previously received for use by the candidate to pay primary
    29  election campaign expenses or general election campaign
    30  expenses, respectively. The commission shall determine the total
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     1  amount of moneys for election campaign expenses in that year by
     2  the commission to the candidate under this act, as appropriate,
     3  and shall notify the campaign treasurer of the candidate of the
     4  liability as of the date of the notice, for the repayment of
     5  those moneys plus interest on the unpaid amount of that
     6  liability from that date at the rate of 1% for each month or
     7  fractional a part of a month during which that amount remains
     8  unpaid.
     9  Section 20.  Penalties.
    10     (a)  General rule.--A person who violates the provisions of
    11  this act and who, as a result, obtains funds under this act to
    12  which he is not entitled commits a misdemeanor of the first
    13  degree and shall, upon conviction, be subject to a fine not to
    14  exceed the greater of $10,000, or three times the amount of
    15  funds wrongfully obtained or to imprisonment for up to five
    16  years, or both.
    17     (b)  Use of funds and expenditures.--A person who violates
    18  section 12 or 13 commits a misdemeanor of the first degree and
    19  shall, upon conviction, be subject to a fine not to exceed the
    20  greater of $10,000, or three times the amount of funds that were
    21  wrongfully used or expended or to imprisonment for up to five
    22  years, or both.
    23     (c)  Other offenses.--Except as provided in subsections (a)
    24  and (b), a person who violates any provision of this act commits
    25  a misdemeanor of the third degree and shall, upon conviction, be
    26  subject to a fine of not more than $1,000, or to imprisonment
    27  for up to one year, or both.
    28     (d)  Fines and penalties.--All fines and penalties assessed
    29  pursuant to this act shall be deposited in the Pennsylvania Fair
    30  Campaign Fund.
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     1  Section 21.  Appropriation.
     2     (a)  Appropriation.--The sum of $750,000 is hereby
     3  appropriated to the State Ethics Commission for fiscal year
     4  1999-2000 to implement the requirements of this act.
     5     (b)  Adjustments.--The dollar figures contained in this act
     6  shall be adjusted annually at a rate equal to the average
     7  percentage change in the All-Urban Consumer Price Index for the
     8  Pittsburgh, Philadelphia and Scranton standard metropolitan
     9  statistical areas as published by the Bureau of Labor Statistics
    10  of the United States Department of Labor, or any successor
    11  agency, occurring in the prior calendar year. The base year
    12  shall be 1998. The average shall be calculated and certified
    13  annually by the commission by adding the percentage increase in
    14  each of the three areas and dividing by three. The calculation
    15  and resulting new dollar figures shall be published in March in
    16  the Pennsylvania Bulletin. The checkoff referred to in section 6
    17  shall be rounded to the nearest dollar.
    18  Section 22.  Severability.
    19     The provisions of this act are severable. If any provision of
    20  this act or its application to any person or circumstance is
    21  held invalid, the invalidity shall not affect other provisions
    22  or applications of this act which can be given effect without
    23  the invalid provision or application.
    24  Section 23.  Applicability.
    25     This act shall be applicable to returns of taxpayers of
    26  calendar years commencing January 1, 2000, and thereafter.
    27  Funding from the Pennsylvania Fair Campaign Fund shall be
    28  provided to candidates for Statewide office beginning with the
    29  primary election of 2002 and in each gubernatorial primary and
    30  election thereafter.
    19990H1650B2015                 - 20 -

     1  Section 24.  Effective date.
     2     This act shall take effect in 120 days.



















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