PRINTER'S NO. 3991
No. 2782 Session of 2000
INTRODUCED BY MASLAND, BARRAR, BELFANTI, M. COHEN, CURRY, FRANKEL, FREEMAN, HANNA, HENNESSEY, KREBS, LEVDANSKY, MANDERINO, MICHLOVIC, R. MILLER, NICKOL AND TIGUE, SEPTEMBER 27, 2000
REFERRED TO COMMITTEE ON STATE GOVERNMENT, SEPTEMBER 27, 2000
AN ACT 1 Providing for public financing for Statewide judicial 2 candidates; establishing the Pennsylvania Fair Campaign Fund; 3 providing qualifications for funding, for payments, for use 4 of funds, for authorized expenditures, for limitation on 5 contributions, for return of funds and for penalties; and 6 making an appropriation. 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. 13 Section 6. Funding. 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. 19 Section 12. Use of funds by candidates.
1 Section 13. Expenditures. 2 Section 14. Annual report. 3 Section 15. Return of excess funds. 4 Section 16. Limitations on certain contributions. 5 Section 17. Penalties. 6 Section 18. Annual adjustments. 7 Section 19. Appropriation. 8 Section 20. Applicability. 9 Section 21. Effective date. 10 The General Assembly of the Commonwealth of Pennsylvania 11 hereby enacts as follows: 12 Section 1. Short title. 13 This act shall be known and may be cited as the Pennsylvania 14 Statewide Judicial Candidate Public Financing Act. 15 Section 2. Definitions. 16 The following words and phrases when used in this act shall 17 have the meanings given to them in this section unless the 18 context clearly indicates otherwise: 19 "Commission." The State Ethics Commission. 20 "Contribution." Any payment, gift, subscription, assessment, 21 contract, payment for services, dues, loan, forbearance, advance 22 or deposit of money or any valuable thing to a candidate or 23 political committee made for the purpose of influencing any 24 election in this Commonwealth or for paying debts incurred by or 25 for a candidate or committee before or after any election. The 26 term includes the purchase of tickets for events such as 27 dinners, luncheons, rallies and all other fundraising events; 28 the granting of discounts or rebates not available to the 29 general public; the granting of discounts or rebates by 30 television and radio stations and newspapers not extended on an 20000H2782B3991 - 2 -
1 equal basis to all candidates for the same office; and any 2 payments provided for the benefit of any candidate, including 3 any payments for the services of any person serving as an agent 4 of a candidate or committee by a person other than the candidate 5 or committee or a person whose expenditures the candidate must 6 report under the act of June 3, 1937 (P.L.1333, No.320), known 7 as the Pennsylvania Election Code. The word "contribution" 8 includes any receipt or use of anything of value received by a 9 political committee from another political committee and also 10 includes any return on investments by a political committee. 11 "Declaration of candidacy." The point in a person's campaign 12 for political office at which that person becomes in compliance 13 with section 1622 of the act of June 3, 1937 (P.L.1333, No.320), 14 known as the Pennsylvania Election Code. 15 "Expenditure." 16 (1) The payment, distribution, loan or advancement of 17 money or any valuable thing by a candidate, political 18 committee or other person for the purpose of influencing the 19 outcome of an election. 20 (2) The payment, distribution, loan, advance or transfer 21 of money or other valuable thing between or among political 22 committees. 23 (3) The providing of a service or other valuable thing 24 for the purpose of influencing the outcome of a nomination or 25 election of any person to any public office to be voted for 26 in this Commonwealth. 27 (4) The payment or providing of money or other valuable 28 thing by any person other than a candidate or political 29 committee to compensate any person for services rendered to a 30 candidate or political committee. 20000H2782B3991 - 3 -
1 "Fund." The Pennsylvania Fair Campaign Fund established in 2 section 5. 3 "Independent expenditure." An expenditure by a person made 4 for the purpose of influencing an election without cooperation 5 or consultation with any candidate or any political committee 6 authorized by that candidate and which is not made in concert 7 with or at the request or suggestion of any candidate or 8 political committee or agent thereof. 9 "Major political party." A political party whose candidate 10 for Statewide judicial office received either the highest or 11 second highest number of votes in the preceding election. 12 Section 3. Application of act. 13 The provisions of this act shall be applicable to Statewide 14 judicial candidates. 15 Section 4. Administration. 16 The commission shall administer this act and may adopt rules 17 and regulations as may be required to implement this act and to 18 carry out its purpose. 19 Section 5. Pennsylvania Fair Campaign Fund. 20 There is hereby established a special restricted receipts 21 fund in the State Treasury to be known as the Pennsylvania Fair 22 Campaign Fund. Payments shall be made into this fund pursuant to 23 section 6, and disbursements shall be made from the fund only 24 upon the warrant of the commission and a warrant of the State 25 Treasurer. As much of the moneys in the fund as are necessary to 26 make payments to candidates as provided in this act are 27 appropriated from the fund on a continuing basis for the purpose 28 of such payments. 29 Section 6. Funding. 30 (a) Designation of taxes.--Beginning with tax years 20000H2782B3991 - 4 -
1 commencing January 1, 2001, and thereafter, each individual 2 subject to the tax imposed by Article III of the act of March 4, 3 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, whose 4 tax liability for the year is $25 or more may designate up to 5 $25 of that individual's personal income taxes to be paid into 6 the fund. In the case of married taxpayers filing a joint 7 return, each spouse may designate up to $25 to be paid into the 8 fund if their tax liability is $50 or more. All of these 9 designated tax revenues shall be paid into the fund. The 10 checkoff and instructions shall be prominently displayed on the 11 first page of the return form. The instructions shall readily 12 indicate that these designations neither increase nor decrease 13 an individual's tax liability. 14 (b) Appropriation.--The General Assembly shall appropriate 15 money to the fund sufficient to fully fund all requirements of 16 this act, including the administrative, investigative and 17 enforcement responsibilities of the commission. Upon notice by 18 the commission, the General Assembly shall appropriate to the 19 commission out of the General Fund such additional sums as may 20 be required to carry out the purposes of this act if the sums 21 first appropriated become inadequate. 22 (c) Commencement of funding.--Funding from the fund shall be 23 provided to candidates for Statewide judicial office beginning 24 with the primary election of 2005 and in each judicial primary 25 and general election thereafter. 26 Section 7. Certification of moneys in fund. 27 By June 30 of each year, the State Treasurer shall certify to 28 the commission the current balance available in the fund. 29 Section 8. Qualification for funding. 30 (a) General qualifications.-- 20000H2782B3991 - 5 -
1 (1) Any Statewide judicial candidate may apply for 2 funding under this act if the candidate meets the 3 contributory thresholds established in subsection (b) and 4 otherwise conforms to the requirements of this act. No 5 candidate shall be obligated to apply for funding under this 6 act, and if any candidate elects not to apply, the provisions 7 of this act pertaining to limits on expenditures or the use 8 of the candidate's personal funds shall be inapplicable to 9 the person and the person's candidacy. 10 (2) Any candidate electing to receive funding under this 11 act shall declare the candidate's intention to do so and 12 specify the office for which the person is a candidate. 13 (3) No Statewide judicial candidate may elect to receive 14 funding under this act for a general election unless the 15 candidate elected to receive funding under this act for the 16 primary election. 17 (4) Any committee authorized to receive contributions or 18 make expenditures for the candidate who has so declared shall 19 abide by the provisions of section 16. 20 (5) Any candidate who for any reason has that 21 candidate's name withdrawn from the ballot after receipt of 22 funds under this act shall return to the fund all unspent 23 money received from the fund. 24 (b) Qualification amounts.-- 25 (1) In order to qualify for funding in a primary 26 election, a candidate must receive a minimum amount of 27 $100,000 at least 60 days prior to the date of the primary 28 election, but subsequent to the day after the immediately 29 preceding general election. 30 (2) In order to qualify for funding in a general 20000H2782B3991 - 6 -
1 election, a Statewide judicial candidate must receive, 2 subsequent to the date of that candidate's primary election 3 but at least 60 days prior to the date of the candidate's 4 general election, $100,000 in qualifying contributions. 5 (3) (i) The term "qualifying contribution" shall only be 6 a contribution which has all of the following 7 characteristics: 8 (A) Made by an individual resident of 9 Pennsylvania. 10 (B) Made by a written instrument which indicates 11 the contributor's full name and mailing residence and 12 is not intended to be returned to the contributor or 13 transferred to another political committee or 14 candidate. 15 (ii) If a contributor receives goods or services of 16 value in return for his contribution, the qualifying 17 contribution shall be calculated as the original 18 contributions minus the fair market value of the goods or 19 services received. 20 (c) Evidence of qualifying contributions.--A candidate who 21 elects to apply for funding under this act shall provide 22 evidence that the candidate has raised the qualifying 23 contributions required by this section, which evidence shall be 24 verified and certified as correct by the auditors of the 25 commission. 26 (d) Waiver.--A candidate who has accepted public funding 27 under this act may apply to the commission for a waiver of the 28 contribution limits set forth in section 10, the spending limits 29 contained in section 13 or both of those limits if the amount of 30 independent expenditures for communications advocating the 20000H2782B3991 - 7 -
1 defeat of the candidate or election of the candidate's opponent 2 require the candidate applying for the waiver to spend above the 3 limits specified in section 13 in order to answer the 4 communications paid for by the independent expenditures. The 5 commission shall issue regulations setting guidelines for 6 granting or denying requests for a waiver submitted under this 7 section. 8 (e) Audit.--The commission shall conduct a complete audit of 9 all candidates receiving funds under this act. The audits shall 10 be conducted the year following the election for which funds 11 were distributed. The Secretary of the Commonwealth shall 12 provide the commission at no cost all reports of contributions 13 and expenditures filed pursuant to Article XVI of the act of 14 June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania 15 Election Code, by Statewide judicial candidates, their political 16 committees and all other political committees who have 17 contributed to those candidates. 18 (f) Findings.--The auditors shall conduct their audit in 19 accordance with sound accounting principles and shall make 20 findings of any possible violations of this act. All audited 21 candidates and their committees shall furnish any records to the 22 accountants that the accountants deem necessary for the 23 completion of their work. 24 (g) Public report.--The commission shall make public the 25 report of the auditors and shall provide a copy to the Attorney 26 General for the institution of such criminal proceedings as the 27 Attorney General deems necessary. 28 (h) Additional qualifications.--A candidate seeking funding 29 under this act may not authorize or control more than one 30 candidate's political committee per office sought. 20000H2782B3991 - 8 -
1 Section 9. Funding formula. 2 (a) Matching payments.--Each candidate who qualifies for 3 funding for an election pursuant to section 8 shall receive 4 matching payments from the fund in the amount of $2 for each 5 dollar of qualifying contribution. 6 (b) Threshold amounts.--The $2 for each dollar of qualifying 7 contributions authorized in subsection (a) shall be provided for 8 all qualifying contributions raised. 9 (c) Eligibility.-- 10 (1) Only those qualifying contributions made during the 11 period between the day after the immediately preceding 12 general election and the day prior to 30 days before the 13 primary election shall be eligible for matching payments from 14 the fund for the primary election. 15 (2) Only those qualifying contributions made during the 16 period prior to 30 days before the primary election and the 17 general election of the year in which that candidate runs for 18 office shall be eligible for matching payments from the fund 19 for the general election. 20 (d) Reporting requirements.--Matching funds may not be 21 provided for any qualifying contributions unless the reporting 22 requirements required by the commission are satisfied. 23 Section 10. Limitations on funding. 24 (a) General rule.--Each candidate who qualifies for and 25 receives funding pursuant to the formula established by this act 26 shall be entitled to receive no more than the maximum amount 27 specified in subsection (b) for the office the candidate seeks. 28 (b) Maximum amount.-- 29 (1) The maximum amount of funding available for each 30 Statewide judicial candidate at a general election under this 20000H2782B3991 - 9 -
1 act shall be $1,000,000. 2 (2) The maximum amount of funding available for the 3 primary election for each candidate under this act shall be 4 $500,000. 5 (c) Restrictions on funding.--Notwithstanding any other 6 provisions of this act to the contrary, no funding shall be 7 provided to the following: 8 (1) A candidate in a general election who has received 9 the nomination of both major political parties and has no 10 opposition. 11 (2) A candidate in a primary election who is unopposed 12 for the nomination. 13 (3) A candidate in a retention election. 14 Section 11. Time of payments. 15 Beginning 45 days prior to the relevant election, the 16 commission shall make payments authorized by this act at least 17 every two weeks. Except for the final payment due a candidate, 18 no payment to a candidate shall be disbursed from the fund 19 unless the payment exceeds $5,000. Payments to a candidate that 20 are $5,000 or less shall be aggregated and disbursed as a single 21 payment. 22 Section 12. Use of funds by candidates. 23 (a) General rule.--Payments disbursed to candidates pursuant 24 to this act may be used only for the election for which they are 25 distributed and only for the purposes set forth in this act 26 except that no fund moneys may be used: 27 (1) To transfer to other candidates or to committees of 28 other candidates or to political committees. 29 (2) To pay for expenditures incurred more than 30 days 30 after the date of the general election provided any 20000H2782B3991 - 10 -
1 expenditures incurred after the date of the general election 2 are incurred as a direct result of the general election. 3 (b) Restricted account.--Funds distributed to a candidate 4 pursuant to this act shall be placed in a single bank account. 5 Expenditures from this account shall be made only for campaign 6 expenses listed in subsection (a). 7 Section 13. Expenditures. 8 (a) Primary election.--Expenditures made by a candidate or 9 the candidate's authorized committee between the day after the 10 immediately preceding general election and the date of the 11 primary election may not exceed $1,500,000 unless otherwise 12 provided. 13 (b) General election.--Expenditures made by a candidate 14 receiving funding pursuant to section 8 of this act and the 15 candidate's authorized committee for all purposes and from all 16 sources, including, but not limited to, amounts of funds 17 distributed under this act, proceeds of loans, gifts, 18 contributions from any source or personal funds, subsequent to 19 the date of the primary election and up to 30 days subsequent to 20 the general election, may not exceed $3,000,000. 21 (c) Exception.-- 22 (1) Notwithstanding any other provision of this act to 23 the contrary, a candidate who accepts public funding pursuant 24 to the formula established by this act, but whose opponent in 25 a general election elects not to apply for the public 26 funding, shall not be bound by the expenditure limits 27 specified in this section. 28 (2) A candidate who accepts public funding shall be 29 eligible to qualify for those fair campaign funds which would 30 have otherwise been available to the opponent who has chosen 20000H2782B3991 - 11 -
1 not to apply for funding from the fund. 2 (3) Contribution and expenditure limits in sections 10 3 and 13 shall not apply to such candidate. 4 (d) Multiple candidates.-- 5 (1) Notwithstanding any other provision of this act to 6 the contrary, a candidate who accepts public funding pursuant 7 to the formula established by this act, but whose opponents 8 in a primary election elect not to apply for the public 9 funding, shall not be bound by the expenditure limits 10 specified in this section. 11 (2) If there is more than one candidate in a primary 12 election, the fair campaign funds which would have otherwise 13 been available to each opponent who has elected not to apply 14 for the public funding shall be divided equally among the 15 candidates who accept public financing. 16 (3) Contribution and expenditure limits in sections 10 17 and 13 shall not apply to such candidate. 18 Section 14. Annual report. 19 The commission shall report annually to the Governor and the 20 General Assembly on the operations of funding as provided by 21 this act. This report shall include, but not be limited to, the 22 revenues and expenditures of the fund, the amounts distributed 23 to candidates, the results of any audits performed on candidates 24 in compliance with this act and any prosecutions brought for 25 violations of this act. 26 Section 15. Return of excess funds. 27 (a) Unexpended funds, primary election.--All unexpended 28 campaign funds in the candidate's authorized committee's 29 possession 60 days after a primary election shall be returned to 30 the State Treasury for deposit in the fund, up to the amount of 20000H2782B3991 - 12 -
1 the funds which were distributed to the candidate under this act 2 for the primary election. For every $2 remaining in the 3 possession of the candidate's authorized committee, $1 shall be 4 returned pursuant to this section. 5 (b) Unexpended funds, general election.--All unexpended 6 campaign funds in the candidate's authorized committee's 7 possession 60 days after a general or municipal election shall 8 be returned to the State Treasury for deposit in the fund, up to 9 the amount of the funds which were distributed to the candidate 10 under this act for the general election. For every $2 remaining 11 in the possession of the candidate's authorized committee, $1 12 shall be returned pursuant to this section. 13 Section 16. Limitations on certain contributions. 14 (a) From individual persons.-- 15 (1) Aggregate contributions, including in-kind 16 contributions, from any person to any Statewide judicial 17 candidate, the candidate's authorized committee or agent 18 shall not exceed $1,000 for each election. 19 (2) For each election, the candidate's authorized 20 committee or agent may not accept or receive more than $1,000 21 in aggregate contributions per election, including in-kind 22 contributions from any person. 23 (b) From State political parties.-- 24 (1) Aggregate contributions, including in-kind 25 contributions, from any State political party to the 26 candidate's authorized committee or agent may not exceed 27 $10,000 for each election. 28 (2) For each election, the candidate's authorized 29 committee or agent may not accept or receive more than 30 $10,000 in aggregate contributions, including in-kind 20000H2782B3991 - 13 -
1 contributions from any State political party. 2 (c) From political action committees.-- 3 (1) Aggregate contributions, including in-kind 4 contributions, from any State political action committee to 5 the candidate's authorized committee or agent may not exceed 6 $5,000 for each election. 7 (2) For each election, the candidate's authorized 8 committee or agent may not accept or receive more than $5,000 9 in aggregate contributions, including in-kind contributions 10 from any State political party. 11 (d) Source.--A gift, subscription, loan, advance or deposit 12 of money or anything of value to a candidate, the candidate's 13 authorized committee or agent shall be considered a contribution 14 both by the original source of the contribution and by any 15 intermediary or conduit if the intermediary or conduit: 16 (1) exercises any direction over the making of the 17 contribution; or 18 (2) solicits the contribution or arranges for the 19 contribution made and directly or indirectly makes the 20 candidate aware of such intermediary or conduit's role in 21 soliciting or arranging the contribution for the candidate. 22 (e) Exception.--For purposes of subsection (d), a 23 contribution shall not be considered to be a contribution by an 24 intermediary or conduit to the candidate if: 25 (1) the intermediary or conduit has been retained by the 26 candidate's committee for the purpose of fundraising and is 27 reimbursed for expenses incurred in soliciting contributions; 28 (2) in the case of an individual, the candidate has 29 expressly authorized the intermediary or conduit to engage in 30 fundraising or the individual occupies a significant position 20000H2782B3991 - 14 -
1 within the candidate's campaign organization; or 2 (3) in the case of a political committee, the 3 intermediary or conduit is the authorized committee of the 4 candidate. 5 (f) Personal funds.--No Statewide judicial candidate who 6 accepts public funding in accordance with this act may 7 contribute more than $1,000 per election from the candidate's 8 personal funds. 9 (g) Year contributed.--For purposes of this section, any 10 contribution made to a Statewide judicial candidate in a year 11 other than the calendar year in which the election is held with 12 respect to which such contribution is made is considered to be 13 made during the calendar year in which such election is held. 14 Section 17. Penalties. 15 (a) General rule.--A person who violates the provisions of 16 this act and who, as a result, obtains funds under this act to 17 which the person is not entitled commits a misdemeanor of the 18 first degree and shall, upon conviction, be subject to a fine of 19 not more than the greater of $10,000, or three times the amount 20 of funds wrongfully obtained. 21 (b) Use of funds and expenditures.--A person who violates 22 section 12 or 13 commits a misdemeanor of the first degree and 23 shall, upon conviction, be subject to a fine of not more than 24 the greater of $10,000, or three times the amount of funds that 25 were wrongfully used. 26 (c) Fines and penalties.--All fines and penalties assessed 27 pursuant to this act shall be deposited in the fund. 28 Section 18. Annual adjustments. 29 (a) Duty to commission.--The dollar amounts set forth in 30 sections 6, 8(b), 9, 10, 13 and 16 shall be adjusted annually at 20000H2782B3991 - 15 -
1 a rate equal to the average percentage change in the All-Urban 2 Consumer Price Index for the Pittsburgh, Philadelphia and 3 Scranton standard metropolitan statistical areas as published by 4 the Bureau of Labor Statistics of the United States Department 5 of Labor, or any successor agency, occurring in the prior 6 calendar year. The base year shall be 2000. The checkoff 7 referred to in section 6 shall be rounded to the next nearest 8 dollar. 9 (b) Publication.--The average shall be calculated and 10 certified annually by the commission by adding in the percentage 11 increase, and resulting new dollar amounts shall be published by 12 the commission in March as a notice in the Pennsylvania 13 Bulletin. 14 Section 19. Appropriation. 15 The sum of $750,000 is hereby appropriated to the State 16 Ethics Commission for fiscal year 2001-2002 to implement the 17 requirements of this act. 18 Section 20. Applicability. 19 This act shall be applicable to returns of taxpayers of 20 calendar years commencing January 1, 2003, and thereafter. 21 Section 21. Effective date. 22 This act shall take effect in 120 days. G25L25SFL/20000H2782B3991 - 16 -