PRINTER'S NO. 1562
No. 1094 Session of 2006
INTRODUCED BY A. WILLIAMS, KITCHEN, FUMO AND C. WILLIAMS, MARCH 16, 2006
REFERRED TO STATE GOVERNMENT, MARCH 16, 2006
AN ACT 1 Amending the act of June 3, 1937 (P.L.1333, No.320), entitled 2 "An act concerning elections, including general, municipal, 3 special and primary elections, the nomination of candidates, 4 primary and election expenses and election contests; creating 5 and defining membership of county boards of elections; 6 imposing duties upon the Secretary of the Commonwealth, 7 courts, county boards of elections, county commissioners; 8 imposing penalties for violation of the act, and codifying, 9 revising and consolidating the laws relating thereto; and 10 repealing certain acts and parts of acts relating to 11 elections," providing for funding of certain Statewide 12 elections; establishing the Philadelphia Public Campaign 13 Financing Fund; limiting certain contributions; imposing 14 powers and duties on the Department of State; and imposing 15 penalties. 16 The General Assembly of the Commonwealth of Pennsylvania 17 hereby enacts as follows: 18 Section 1. The act of June 3, 1937 (P.L.1333, No.320), known 19 as the Pennsylvania Election Code, is amended by adding an 20 article to read: 21 ARTICLE XVI-A 22 Philadelphia Public Campaign Financing Fund 23 Section 1601-A. Definitions. 24 The following words and phrases when used in this article
1 shall have the meanings given to them in this section unless the 2 context clearly indicates otherwise: 3 "Declaration of candidacy." The point in a person's campaign 4 for political office at which that person becomes in compliance 5 with section 1622 of this act. 6 "Department." The Department of State of the Commonwealth. 7 "Fund." The Philadelphia Public Campaign Financing Fund 8 established under section 1604-A. 9 "Major political party." A political party whose candidate 10 for Governor received either the highest or second highest 11 number of votes in the preceding gubernatorial election. 12 "Secretary." The Secretary of the Commonwealth. 13 Section 1602-A. Application of article. 14 Except as provided in section 1613-A, the provisions of this 15 article shall be applicable to candidates for the following 16 offices who elect to apply for campaign funding under this 17 article: 18 (1) Common Pleas Court Judge. 19 (2) Municipal Court Judge. 20 Section 1603-A. Administration. 21 The provisions of this article shall be administered by the 22 department. The department may adopt rules and regulations as 23 may be necessary for the implementation of this article. 24 Section 1604-A. Philadelphia Public Campaign Financing Fund 25 established. 26 There is hereby established a special restricted receipts 27 fund in the State Treasury to be known as the Philadelphia 28 Public Campaign Financing Fund. Payments shall be made into the 29 fund pursuant to section 1605-A and disbursements shall be made 30 from the fund only upon the warrant of the secretary and a 20060S1094B1562 - 2 -
1 warrant of the State Treasurer. As much of the moneys in the 2 fund as are necessary to make payments to candidates as provided 3 in this article are appropriated from the fund to the Department 4 of State on a continuing basis for the purpose of such payments. 5 No moneys of the General Fund shall be used for the purposes of 6 the fund. 7 Section 1605-A. Sources of funding. 8 Money received from all of the following sources must be 9 deposited in the fund: 10 (1) Beginning with tax years commencing January 1, 2006, 11 and thereafter, each individual subject to the tax imposed by 12 Article III of the act of March 4, 1971 (P.L.6, No.2), known 13 as the Tax Reform Code of 1971, whose tax liability for the 14 year is $10 or more may designate $10 of his personal income 15 taxes to be paid into the fund. In the case of married 16 taxpayers filing a joint return, each spouse may designate 17 $10 to be paid into the fund if their tax liability is $20 or 18 more. All of these designated tax revenues shall be paid into 19 the fund. The check-off and instructions shall be prominently 20 displayed on the first page of the tax return form. The 21 instructions shall readily indicate that these designations 22 neither increase nor decrease an individual's tax liability. 23 (2) Fund revenues distributed for an election that 24 remain unspent or uncommitted at the time the recipient is no 25 longer a certified candidate in the election. 26 (3) Any contribution made by individual residents of a 27 city of the first class. 28 (4) Voluntary donations made directly to the fund. 29 Corporations, other business entities, labor unions and 30 professional associations may make donations to the fund. 20060S1094B1562 - 3 -
1 Section 1606-A. Certification of moneys in fund. 2 By June 30 of each year, the State Treasurer shall certify to 3 the department the current balance available in the fund. 4 Section 1607-A. Qualification for funding. 5 (a) General rule.--Any candidate for office as described in 6 section 1602-A may apply for funding under this article if the 7 candidate meets the contributory thresholds established in 8 subsection (b) and otherwise conforms to the requirements of 9 this article. No candidate shall be obligated to apply for 10 funding under this article and if any candidate elects not to 11 apply, the provisions of this article pertaining to limits on 12 expenditures or the use of his personal funds shall be 13 inapplicable to the person and his candidacy. Any candidate 14 electing to receive funding under this article shall declare his 15 intention to do so and specify the office for which he is a 16 candidate. No candidate may elect to receive funding under this 17 article for a general election unless the candidate elected to 18 receive funding under this article for the primary election. A 19 candidate who is nominated by his party to fill a vacancy which 20 occurs after the primary or who is placed on the ballot by 21 petition and qualifies for funding pursuant to subsection (b) is 22 eligible to receive funding under this article for a general 23 election. Any and all committees authorized to receive 24 contributions or make expenditures for the candidate who has so 25 declared shall abide by the provisions of section 1613-A. Any 26 candidate who for any reason has his name withdrawn from the 27 ballot for an election, after receipt of funds under this 28 article, shall return to the fund all unspent money received 29 from the fund. 30 (b) Qualifications.-- 20060S1094B1562 - 4 -
1 (1) In order to qualify for funding in a general 2 election, a candidate must receive subsequent to the date of 3 that candidate's primary election but prior to the date of 4 that candidate's general election qualifying contributions of 5 the following amounts: 6 Qualifying 7 Office Contributions Required 8 Common Pleas Court Judge $15,000 9 Municipal Court Judge 15,000 10 (2) In order to qualify for funding in a primary 11 election, a candidate must receive prior to the date of the 12 primary election but subsequent to January 1 of the year in 13 which that candidate runs for office one-half of the amount 14 specified in paragraph (1) for the appropriate office. 15 (3) (i) The term "qualifying contribution" shall 16 include any contribution, as defined in section 1621(b), 17 which has all of the following characteristics: 18 (A) Made by an individual resident of a city of 19 the first class. 20 (B) Made by a written instrument which indicates 21 the contributor's full name and mailing address and 22 is not intended to be returned to the contributor or 23 transferred to another political committee or 24 candidate. 25 (ii) If a contributor receives goods or services of 26 value in return for his contribution, the qualifying 27 contribution shall be calculated as the original 28 contribution, minus the fair market value of the goods or 29 services received. 30 (iii) Contributions by an individual which exceed 20060S1094B1562 - 5 -
1 $500 in the aggregate shall be deemed only a $500 2 qualifying contribution for the purposes of this section 3 and for the matching payment provisions of section 1608- 4 A. 5 (c) Audit.--The department shall select an auditor pursuant 6 to the provisions of section 1635(a). Each candidate who elects 7 to apply for funding under this article shall provide evidence 8 that the candidate has raised the qualifying contributions 9 required by this section which evidence shall be verified and 10 certified as correct to the department by the auditor selected 11 under this article. The department shall establish a deadline 12 for the certification and a process for verification by the 13 auditor selected under this article. 14 Section 1608-A. Funding formula. 15 (a) General rule.--Every candidate who qualifies for funding 16 for either the primary or the general election pursuant to 17 section 1607-A shall receive matching payments from the fund in 18 the amount of $1 for each dollar of qualifying contribution as 19 defined in section 1607-A(b)(3). 20 (b) Payments.-- 21 (1) Only those qualifying contributions made during the 22 period between January 1 of the year in which the candidate 23 runs for office and the primary election shall be eligible 24 for matching payments from the fund for the primary election. 25 (2) Only those qualifying contributions made during the 26 period between the primary election and the general election 27 of the year in which that candidate runs for office shall be 28 eligible for matching payments from the fund for the general 29 election. 30 (c) Reporting requirements.--Matching funds shall not be 20060S1094B1562 - 6 -
1 provided for any qualifying contributions unless the reporting 2 requirements of section 1626(b) are satisfied. 3 Section 1609-A. Limitations on funding. 4 (a) General rule.--Every candidate who qualifies for and 5 receives funding pursuant to the formula established in section 6 1608-A shall be entitled to receive no more than the maximum 7 amount specified in subsection (b) for the office the candidate 8 is seeking. 9 (b) Maximum.-- 10 (1) The maximum amount of funding available for the 11 general election for each candidate under this article shall 12 be as follows: 13 Maximum Philadelphia Public 14 Office Campaign Financing 15 Common Pleas Court Judges $100,000 16 Municipal Court Judges 100,000 17 (2) The maximum amount of funding available for the 18 primary election for each candidate under this article shall 19 be one-half the appropriate figure in paragraph (1). 20 (c) Restrictions.--Notwithstanding any other provisions of 21 this article, no funding shall be provided to the following: 22 (1) Candidates in the general election who have been 23 nominated by both major political parties. 24 (2) Candidates in the primary election who are unopposed 25 for the nomination. 26 Section 1610-A. Time of payments. 27 (a) General rule.--Beginning 90 days prior to the relevant 28 primary or general election, the department shall make payments 29 authorized by this article at least every two weeks. However, 30 except for the final payment, no payment shall be due or paid if 20060S1094B1562 - 7 -
1 the payment does not equal at least $5,000 in amount. 2 (b) Insufficient funds.--If in the secretary's opinion 3 insufficient funds exist in the fund to provide the anticipated 4 full funding to eligible candidates in a given primary or 5 general election, the department shall distribute the available 6 funds to qualified candidates on a pro rata basis. In 7 determining whether sufficient funds are available, the 8 secretary shall not take into consideration the needs of any 9 subsequent primary or general elections but shall base the 10 decision solely on the immediate primary or election at hand. 11 Section 1611-A. Use of funds by candidates. 12 (a) General rule.--Funds distributed to candidates pursuant 13 to this article may be used only for the election for which they 14 are distributed and only for the purposes set forth in section 15 1634.1 except that no fund moneys may be used: 16 (1) To transfer to other candidates or to committees of 17 other candidates or to political committees. 18 (2) To pay for expenditures incurred after the date of 19 the general election. 20 (b) Distribution.--Funds distributed to a candidate pursuant 21 to this article shall be placed in a single bank account. 22 Expenditures from this account shall be made only for campaign 23 expenses listed in subsection (a). 24 Section 1612-A. Expenditures. 25 (a) General rule.--Expenditures made by a candidate and his 26 authorized committees, for all purposes and from all sources, 27 including, but not limited to, amounts of funds distributed 28 under this article, proceeds of loans, gifts, contributions from 29 any source or personal funds, subsequent to the date of the 30 primary election, but prior to the date of the general election, 20060S1094B1562 - 8 -
1 may not exceed the amounts specified below: 2 Office Total Expenditure Limits 3 Court of Common 4 Pleas Judge $200,000 5 Municipal 6 Court Judge 200,000 7 (b) Primary expenditures.--Expenditures made by a candidate 8 and his authorized committees, subsequent to January 1 of the 9 year in which the candidate runs for office but prior to the 10 date of the primary election, may not exceed one-half of the 11 amount specified in subsection (a). 12 (c) Exception for single candidate.--Notwithstanding any 13 other provision of this article, a candidate who accepts public 14 funding pursuant to the formula established in section 1608-A, 15 but whose major political party opponent in a general or 16 municipal election elects not to apply for the public funding, 17 shall not be bound by the expenditure limits specified in this 18 section. A candidate who accepts public funding shall be 19 eligible to qualify for those public campaign funds which would 20 have otherwise been available to an opponent who has chosen not 21 to apply for funding from the fund. 22 (d) Exception for multiple candidates.--Notwithstanding any 23 other provision of this article, a candidate who accepts public 24 funding pursuant to the formula established in section 1608-A, 25 but whose major political party opponents in a primary election 26 elect to not apply for the public funding, shall not be bound by 27 the expenditure limits specified in this section. If there is 28 more than one candidate in a major political party in a primary 29 election, the fair campaign funds which would have otherwise 30 been available to each opponent who has elected to not apply for 20060S1094B1562 - 9 -
1 the public funding shall be divided equally among the candidates 2 who accept public financing. 3 Section 1613-A. Limitations on certain contributions. 4 (a) General rule.--Any candidate for the office of Common 5 Pleas Court Judge or Municipal Court Judge shall not accept 6 contributions from an individual or political action committee 7 which in the aggregate exceed $500 for any primary, general or 8 special election. However, the candidate, spouse and immediate 9 family members may contribute up to $10,000 in the aggregate for 10 each primary, general or special election in which that 11 candidate is running for office. 12 (b) Contribution.--A gift, subscription, loan, advance or 13 deposit of money or anything of value to a candidate shall be 14 considered a contribution both by the original source of the 15 contribution and by any intermediary or conduit if the 16 intermediary or conduit does one of the following: 17 (1) Exercises any control or any direction over the 18 making of the contribution. 19 (2) Solicits the contribution or arranges for the 20 contribution to be made and directly or indirectly makes the 21 candidate aware of such intermediary or conduit's role in 22 soliciting or arranging the contribution for the candidate. 23 (c) Specific contributions.--For purposes of subsection (b), 24 a contribution shall not be considered to be a contribution by 25 an intermediary or conduit to the candidate if: 26 (1) The intermediary or conduit has been retained by the 27 candidate's committee for the purpose of fundraising and is 28 reimbursed for expenses incurred in soliciting contributions. 29 (2) In the case of an individual, the candidate has 30 expressly authorized the intermediary or conduit to engage in 20060S1094B1562 - 10 -
1 fundraising, or the individual occupies a significant 2 position within the candidate's campaign organization. 3 (3) In the case of a political committee, the 4 intermediary or conduit is an authorized committee of the 5 candidate. 6 (d) Applicability.--This section shall apply to any 7 candidate for any office set forth in this section, regardless 8 of whether or not the candidate receives funding from the fund. 9 Section 1614-A. Inflation indexing of certain limitations. 10 The dollar figures contained in sections 1607-A, 1609-A and 11 1612-A shall be adjusted annually during March at a rate equal 12 to the average percentage change in the All-Urban Consumer Price 13 Index for the Philadelphia standard metropolitan statistical 14 area as published by the Bureau of Labor Statistics of the 15 United States Department of Labor, or any successor agency, 16 occurring in the prior calendar year. The base year shall be 17 1998. The average shall be calculated and certified by the 18 secretary annually by adding the percentage increase in each of 19 the three areas and dividing by three. The calculation and 20 resulting new figures shall be published in the Pennsylvania 21 Bulletin during March. 22 Section 1615-A. Annual report. 23 The secretary shall report annually to the Governor and the 24 General Assembly on the operations of funding as provided by 25 this article. This report shall include, but not be limited to, 26 the revenues and expenditures in the fund, the amounts 27 distributed to candidates, the results of any audits performed 28 on candidates in compliance with this article and any 29 prosecutions brought for violations of this article. 30 Section 1616-A. Return of excess funds. 20060S1094B1562 - 11 -
1 (a) General rule.--All unexpended campaign funds in a 2 candidate's and his authorized committee's possession 60 days 3 after a primary election shall be returned to the secretary for 4 deposit in the fund, up to the amount of the funds which were 5 distributed to the candidate under this article for the primary 6 election. 7 (b) Return of funds.--All unexpended campaign funds in a 8 candidate's and his authorized committee's possession 60 days 9 after a general or municipal election shall be returned to the 10 secretary for deposit in the fund, up to the amount of the funds 11 which were distributed to the candidate under this article for 12 the general or municipal election. 13 Section 1617-A. Penalties. 14 (a) General rule.--A person who violates the provisions of 15 this article and who, as a result, obtains funds under this 16 article to which he is not entitled commits a misdemeanor of the 17 first degree and shall, upon conviction, be subject to a fine of 18 not more than the greater of $10,000 or three times the amount 19 of funds wrongfully obtained or to imprisonment for up to five 20 years, or both. 21 (b) Misdemeanor of the first degree.--A person who violates 22 section 1611-A or 1612-A commits a misdemeanor of the first 23 degree and shall, upon conviction, be subject to a fine of not 24 more than the greater of $10,000 or three times the amount of 25 funds that were wrongfully used or expended or to imprisonment 26 for up to five years, or both. 27 (c) Misdemeanor of the third degree.--Except as provided in 28 subsections (a) and (b), a person who violates any provision of 29 this act commits a misdemeanor of the third degree and shall, 30 upon conviction, be subject to a fine of not more than $1,000 or 20060S1094B1562 - 12 -
1 to imprisonment for up to one year, or both.
2 Section 2. This act shall apply to returns of taxpayers of
3 calendar years commencing January 1, 2006, and thereafter.
4 Funding from the Philadelphia Public Campaign Financing Fund
5 shall be provided to candidates for office beginning with the
6 primary election of 2008 and in each primary, municipal and
7 general election thereafter.
8 Section 3. This act shall take effect immediately.
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