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                                                      PRINTER'S NO. 1975

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1620 Session of 1999


        INTRODUCED BY LEVDANSKY, MASLAND, DeWEESE, VITALI, BATTISTO,
           FREEMAN, CURRY, TRELLO, HANNA, MARKOSEK, GRUCELA, RUFFING,
           MELIO, SCRIMENTI, TIGUE, LAUGHLIN, MICHLOVIC, M. COHEN,
           STEELMAN, STURLA, RAMOS, VAN HORNE, TANGRETTI, KAISER,
           JOSEPHS, GORDNER, EACHUS, DALEY AND WILLIAMS, JUNE 9, 1999

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 9, 1999

                                     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 definitions; creating the
    12     Pennsylvania State Board of Elections and defining its powers
    13     and duties; providing for a fair campaign code, for
    14     regulations at polling places, for independent expenditures,
    15     for political action committees and affiliated committees,
    16     for in-kind contributions, for committee organizations, for
    17     reporting by candidates and political committees, for
    18     quarterly reports, for contribution limitations and
    19     independent expenditures, for partnership contributions and
    20     for powers and duties; creating the Pennsylvania Fair
    21     Campaign Fund and its administration; providing for funding
    22     limitations and use and for transfers; making an
    23     appropriation; and making repeals.

    24     The General Assembly of the Commonwealth of Pennsylvania
    25  hereby enacts as follows:
    26     Section 1.  Section 102 of the act of June 3, 1937 (P.L.1333,
    27  No.320), known as the Pennsylvania Election Code, is amended by

     1  adding a clause to read:
     2     Section 102.  Definitions.--The following words, when used in
     3  this act, shall have the following meanings, unless otherwise
     4  clearly apparent from the context:
     5     * * *
     6     (z.5)  The words "State board" or "State board of elections"
     7  shall mean the Pennsylvania State Board of Elections.
     8     Section 2.  Sections 201, 201.1, 202 and 203 of the act are
     9  repealed.
    10     Section 3.  The act is amended by adding sections to read:
    11     Section 201.  The Pennsylvania State Board of Elections.--(a)
    12  The Pennsylvania State board of elections is hereby established
    13  as an independent board within the executive branch of the
    14  Commonwealth. The State board of elections shall consist of six
    15  members appointed by the Governor with the advice and consent of
    16  two-thirds of all members of the Senate. No more than three
    17  members of the State board appointed under this subsection may
    18  be affiliated with the same political party. No two members
    19  shall reside in the same county.
    20     (b)  Members of the State board of elections shall serve for
    21  a term of six years except that of the members first appointed
    22  (i) two of the members not affiliated with the same political
    23  party shall be appointed for terms of two years; (ii) two of the
    24  members not affiliated with the same political party shall be
    25  appointed for four-year terms; and (iii) two of the members not
    26  affiliated with the same political party shall be appointed for
    27  six-year terms.
    28     (c)  No member shall be appointed to more than one full six-
    29  year term; Provided, however, That a member of the State board
    30  of elections may serve until his successor has been appointed
    19990H1620B1975                  - 2 -

     1  and qualified.
     2     (d)  Members shall be chosen on the basis of their maturity,
     3  experience, integrity, impartiality and good judgment and shall
     4  be chosen from among individuals, who, at the time of their
     5  appointment, are not elected or appointed officers or employes
     6  in the executive, legislative or judicial branch of the
     7  government of the Commonwealth of Pennsylvania or any of its
     8  political subdivisions. Each person appointed as a member of the
     9  State board of elections shall be a citizen and legal resident
    10  of the Commonwealth for a period of not less than one year.
    11     (e)  No individual, while a member or employe of the State
    12  board shall:
    13     (1)  Hold public office or campaign for any public office.
    14     (2)  Hold office in any political party or political
    15  committee.
    16     (3)  Actively participate in any political campaign.
    17     (4) Directly or indirectly attempt to influence any decision
    18  by a governmental body, other than a court of law, or as a
    19  representative of the State board on a matter within the
    20  jurisdiction of the State board.
    21     (5)  Be employed by the Commonwealth in any other capacity
    22  whether or not for compensation.
    23     (f)  A majority of the State board by resolution, shall
    24  declare vacant the position on the State board of any member who
    25  takes part in activities prohibited by subsection (e). An
    26  individual appointed to fill a vacancy occurring other than by
    27  the expiration of a term of office shall be appointed for the
    28  unexpired term of the member he succeeds and is eligible for
    29  appointment to one full six-year term thereafter.
    30     (g)  The State board shall elect a chairman and a vice
    19990H1620B1975                  - 3 -

     1  chairman from among its members for a term of one year. No
     2  member may serve as chairman more often than once during any
     3  term of office to which he is appointed. The chairman and the
     4  vice chairman shall not be affiliated with the same political
     5  party. The vice chairman shall act as chairman in the absence or
     6  disability of the chairman or in the event of a vacancy in such
     7  office.
     8     (h)  The State board shall meet at least once a month and at
     9  such other times as it deems necessary.
    10     (i)  Four members of the State board shall constitute a
    11  quorum and the vote of a majority of the members present is
    12  required for any action or recommendation of the State board.
    13  The chairman and any four members of the State board may call a
    14  meeting, provided advance written notice is mailed to each
    15  member and to any person who requests notice of such meetings.
    16     (j)  Members of the State board shall be compensated at a
    17  rate of seventeen thousand five hundred dollars ($17,500) per
    18  year and shall receive reimbursement for their actual and
    19  necessary expenses while performing the business of the State
    20  board of elections.
    21     (k)  The State board shall employ an executive director, a
    22  general counsel and such other staff as is necessary to carry
    23  out its duties pursuant to this act. The executive director
    24  shall be responsible for the administrative operations of the
    25  State board of elections and shall perform such other duties as
    26  may be delegated or assigned to him by the members of the State
    27  board, except the State board shall not delegate the making of
    28  regulations to the executive director. A general counsel shall
    29  be the chief legal officer of the State board and shall have the
    30  same powers and duties as prescribed in Chapter 4 of the act of
    19990H1620B1975                  - 4 -

     1  October 15, 1980 (P.L.950, No.164), known as the "Commonwealth
     2  Attorneys Act." The State board of elections may obtain the
     3  services of experts and consultants as necessary to carry out
     4  its duties pursuant to this act.
     5     Section 202.  Powers and Duties of the Pennsylvania State
     6  Election Board.--The Pennsylvania State Election Board shall
     7  exercise in the manner provided by this act all powers granted
     8  to it by this act, and shall perform all the duties imposed upon
     9  it by this act, which shall include the following:
    10     (1)  The State board of elections shall assume all the powers
    11  and duties which this act, or any other act, imposes upon the
    12  Secretary of the Commonwealth or the Department of State
    13  relating to the conduct of elections and voter registration. The
    14  Secretary of the Commonwealth shall, however, retain those
    15  responsibilities placed on the office by Article XI of the
    16  Constitution of Pennsylvania.
    17     (2)  To issue instructions and promulgate rules and
    18  regulations relating to the administration of the election
    19  process, election campaign practices and campaign financing
    20  practices consistent with the provisions of law.
    21     (3)  To determine the forms of nomination petitions and
    22  papers, expense accounts and all other forms and records, in
    23  accordance with this act.
    24     (4)  To examine and reexamine voting machines and electronic
    25  voting systems, and to approve or disapprove them for use in
    26  this Commonwealth, in accordance with the provisions of this
    27  act.
    28     (5)  To receive and determine, as hereinafter provided, the
    29  sufficiency of nomination petitions, certificates and papers of
    30  candidates for President of the United States, presidential
    19990H1620B1975                  - 5 -

     1  electors, United States senators, representatives in Congress
     2  and all State offices, including senators, representatives and
     3  judges of all courts of record, and delegates and alternate
     4  delegates to National Conventions and members of State
     5  committees.
     6     (6)  To certify to county boards of elections for primaries
     7  and elections the names of the candidates for President and
     8  Vice-President of the United States, presidential electors,
     9  United States senators, representatives in Congress and all
    10  State offices, including senators, representatives, and judges
    11  of all courts of record, and delegates and alternate delegates
    12  to National Conventions, and members of State committees, and
    13  the form and wording of constitutional amendments or other
    14  questions to be submitted to the electors of the State at large.
    15     (7)  To receive such reports from county boards of elections
    16  as are required by this act, and to demand such additional
    17  reports on special matters as it may deem necessary.
    18     (8)  To receive from county boards of elections the returns
    19  of primaries and elections, to canvass and compute the votes
    20  cast for candidates and upon questions as required by the
    21  provisions of this act; to proclaim the results of such
    22  primaries and elections, and to issue certificates of election
    23  to the successful candidates at such elections, except in cases
    24  where that duty is imposed by law on another officer or board.
    25     (9)  To serve as the State clearing house for information in
    26  respect to the administration of elections and pursuant to that
    27  duty, the State board shall enter into contracts for the purpose
    28  of conducting independent studies of the administration of
    29  elections. Studies made under this paragraph shall be published
    30  by the State board and copies made available to the General
    19990H1620B1975                  - 6 -

     1  Assembly and to the general public upon payment of the cost of
     2  duplication. Nothing in this paragraph shall be construed to
     3  authorize the State board to include comments or recommendations
     4  in any study. If the need arises for any comment or
     5  recommendations, they shall be included as an appendix to such
     6  study.
     7     (10)  To visit county boards of elections, examine their
     8  procedures and records and direct that any such procedures be
     9  modified in any manner consistent with the provisions of this
    10  act.
    11     (11)  To conduct any investigation necessary to carryout the
    12  provisions of this act.
    13     (12)  To conduct private or public hearings.
    14     (13)  To administer oaths or affirmations, subpoena
    15  witnesses, compel their attendance, examine them under oath or
    16  affirmation and require the production of any books, records,
    17  documents or other evidence it may deem relevant or material.
    18     (14)  To seek immunity in accordance with the provisions of
    19  42 Pa.C.S. § 5946 (relating to competency of certain witnesses
    20  where political subdivision is a party), in any investigation
    21  relating to any crime or offense with respect to which, by
    22  express provisions of statute, a competent authority is
    23  authorized to confer immunity; Provided, however, That such
    24  immunity shall be conferred only after the Attorney General and
    25  appropriate district attorney are afforded the opportunity to be
    26  heard respecting any objections which either may have to the
    27  conferring thereof; and provided, further, that if either the
    28  Attorney General or any such appropriate district attorney shall
    29  object to the conferring of immunity, immunity may be conferred
    30  only by unanimous vote of all six members of the State board.
    19990H1620B1975                  - 7 -

     1     (15)  To institute or direct a county board of elections to
     2  institute such judicial proceedings as may be necessary to
     3  enforce compliance with any provision of this act or any
     4  regulation promulgated thereunder including, but not limited to,
     5  application, on notice served upon the respondent in the manner
     6  directed by the court at least six hours prior to the time of
     7  return thereon, to the court of common pleas, for an order
     8  prohibiting the continued or threatened violation thereof of for
     9  such other or further relief as the court may deem just and
    10  proper.
    11     (16)  To develop an electronic reporting system to process
    12  the statements of campaign receipts, contributions, transfers
    13  and expenditures required to be filed with the State board of
    14  elections pursuant to the provisions of this act.
    15     (17)  To establish a training program on the electronic
    16  reporting system required in subsection 16 and make it available
    17  to any candidate or committee.
    18     (18)  To recommend legislation and administrative measures as
    19  it finds appropriate to promote fair, honest and efficiently
    20  administered elections.
    21     (19)  To monitor the adequacy and effectiveness of the
    22  election laws and report thereon at least annually to the
    23  Governor and the General Assembly.
    24     (20)  To compile the information required with respect to the
    25  operation of the National Voter Registration Act of 1993 (Public
    26  Law 103-31, 42 U.S.C. § 1973gg et Seq.) and the act of June 30,
    27  1995 (P.L.170, No.25), known as the "Pennsylvania Voter
    28  Registration Act," and report the information annually to the
    29  Governor, the General Assembly and the Federal Election
    30  Commission together with an assessment of the operation of such
    19990H1620B1975                  - 8 -

     1  acts and any recommendations for change and improvements in
     2  compliance.
     3     (21)  To take all appropriate steps to encourage the broadest
     4  possible voter participation in elections including the
     5  administration of a program of voter registration form
     6  distribution by participating State agencies as prescribed by
     7  the "Pennsylvania Voter Registration Act."
     8     (22)  To provide written advice to any person upon his
     9  request with respect to such person's duties under this act.
    10  Such advice shall be provided within five working days of the
    11  request, provided the time may be extended for good cause. It
    12  shall be evidence of good faith conduct in any civil or criminal
    13  proceeding, if the requester, at least five working days prior
    14  to the alleged violation requested written advice from the State
    15  board in good faith, disclosed truthfully all the material facts
    16  and committed the acts either in reliance of the advice or
    17  because of the failure of the State board to provide advice
    18  within five days of the requests or such later extended time.
    19     (23)  To perform such duties as may be prescribed by law.
    20     Section 203.  Explanation of Ballot Question.--Whenever a
    21  proposed constitutional amendment or other State-wide ballot
    22  question shall be submitted to the electors of the Commonwealth
    23  in referendum, the State board shall prepare a statement in
    24  plain English which indicates the purpose, limitations and
    25  effects of the ballot question on the people of the
    26  Commonwealth. The State board of elections shall certify the
    27  statement to the Secretary of the Commonwealth who shall include
    28  it in his publication of a proposed constitutional amendment as
    29  required by Article XI of the Constitution of Pennsylvania. The
    30  State board shall certify such statement to the county boards of
    19990H1620B1975                  - 9 -

     1  elections who shall publish such statement as a part of the
     2  notice of elections required by section 1201 or any other
     3  provision of this act. The county board of elections shall also
     4  require that at least three copies of such statement be posted
     5  in or about the voting room outside the enclosed space with the
     6  specimen ballots and other instructions and notices of
     7  penalties. In election questions which affect only one county or
     8  portion thereof, the county board of elections shall fulfill
     9  these requirements in the place of the Attorney General and the
    10  Secretary of the Commonwealth.
    11     Section 204.  Records and Documents to be Open to Public
    12  Inspection.--The records of the State board of elections and all
    13  returns, nomination petitions, certificates and papers, other
    14  petitions, accounts, contracts, reports and other documents and
    15  records in his custody shall be open to public inspection, and
    16  may be inspected and copied by any qualified elector of the
    17  State during ordinary business hours at any time when they are
    18  not necessarily being used by the State board, or its Executive
    19  Director or one of his authorized employes, and shall be subject
    20  to proper regulation for safekeeping of the records and
    21  documents, and subject to the further provisions of this act.
    22     Section 205.  Preservation of Records.--All documents and
    23  records in the office of the State board of elections shall be
    24  preserved therein for a period of five years, unless otherwise
    25  provided in this act.
    26     Section 206.  State Board of Elections; Enforcement Powers.--
    27  (a)  The State board of elections shall have jurisdiction of,
    28  and be responsible for, the execution and enforcement of the
    29  provisions of Articles XVI and XVI-A of this act and other
    30  statutes governing campaigns, elections and related procedures.
    19990H1620B1975                 - 10 -

     1     (b)  Whenever the State board of elections or other board of
     2  elections shall determine, on its own initiative or upon
     3  complaint, or otherwise, that there is substantial reason to
     4  believe a violation of this act or regulation promulgated
     5  thereunder has occurred, it shall expeditiously make an
     6  investigation which may include investigation of reports and
     7  statements made or failed to be made by the complainant and any
     8  political committee supporting his candidacy if the complainant
     9  is a candidate or, if the complaint was made by an officer or
    10  member of a political committee, of reports and statements made
    11  or failed to be made by such political committee and any
    12  candidates supported by it. A county board of elections shall
    13  have jurisdiction over campaign expense reports or statements
    14  filed in its office; Provided however, That the State board of
    15  elections, in lieu of making such an investigation, may direct
    16  the appropriate county board of elections to conduct an
    17  investigation. The State board of elections may request, and
    18  shall receive, the assistance of the Pennsylvania State Police
    19  in any investigation it shall conduct.
    20     (c)  If, after an investigation, the State board of elections
    21  or county board of elections finds reasonable grounds to believe
    22  that a violation warranting criminal prosecution has taken
    23  place, it shall forthwith refer the matter to the proper law
    24  enforcement officer in accordance with section 1642 (a) and (b)
    25  and shall make available to such district attorney all relevant
    26  papers, documents, testimony and findings relevant to its
    27  investigation. In the case where the State board has directed
    28  the county board to conduct an investigation, the county board
    29  shall report their findings to the State board who may refer the
    30  matter in accordance with this subsection.
    19990H1620B1975                 - 11 -

     1     (d)  The State board of elections or in the case of reports
     2  filed originally at the county, the county board of elections
     3  may, where appropriate, commence a judicial proceeding with
     4  respect to the filing or failure to file any statement of
     5  receipts, expenditures or contributions, under the provisions of
     6  this act. The State board of elections may direct the
     7  appropriate board of elections to commence the proceeding.
     8     (e)  The State board of elections may promulgate rules and
     9  regulations consistent with law to effectuate the provisions of
    10  this section.
    11     Section 207.  Fair Campaign Code.--(a)  In addition to the
    12  powers and duties elsewhere enumerated in this act, the State
    13  board of elections, after holding public hearings, shall adopt a
    14  "fair campaign code" setting forth ethical standards of conduct
    15  for persons, political parties and committees engaged in
    16  election campaigns.
    17     (b)  Copies of the code shall be provided to each candidate,
    18  political party or political committee, no later than March 31
    19  of each year, upon request, by the board of elections with which
    20  the candidate, political party or political committee must file
    21  campaign expense reports pursuant to Article XVI of this act.
    22     (c)  All candidates who voluntarily agree to adhere to the
    23  code shall file a signed copy of the code with the State board
    24  of elections or county board of elections as the case may be.
    25     Section 208.  Powers and Duties of State Board of Elections
    26  Respecting Elections and Crimes Against Elective Franchise.--
    27  Authority is hereby conferred upon the State board of elections
    28  to appoint a special investigator to institute investigation of
    29  cases arising under this act, and to appoint such additional
    30  special investigators and employes as it may deem necessary, and
    19990H1620B1975                 - 12 -

     1  fix their compensation, within the limits of appropriation
     2  available therefor and assign enforcing this act. Moneys
     3  appropriated for carrying out the provisions of this section
     4  shall be paid out of the State Treasury upon certification of
     5  the State board.
     6     The State board or any of its special investigators shall
     7  have power to issue subpoenas or subpoenas duces tecum,
     8  administer oaths and examine witnesses under oath, for the
     9  purpose of investigating any matter within the jurisdiction
    10  herein prescribed for the purpose of aiding the State board in
    11  enforcing the provisions of this act. Such subpoenas shall be
    12  issued in the name of the State board of elections. Such
    13  subpoenas may be served by any special investigator or by any
    14  police officer or peace officer.
    15     Any person who shall omit, neglect or refuse to obey a
    16  subpoena attested in the name of the State board of elections or
    17  who shall refuse to testify under or in pursuance thereof shall
    18  be forwarded to the court for contempt proceedings.
    19     Any special investigator may call upon any member of the
    20  police, sheriff, deputy sheriff, constable or other public
    21  officer, or any person, to assist him in carrying out the
    22  provisions of this section. Any officer or person who shall fail
    23  to render the assistance so demanded or who shall willfully
    24  hinder or delay such special investigator in the exercise of any
    25  power or the performance of any duty shall be guilty of a
    26  misdemeanor of the third degree.
    27     Section 4.  Section 1220(d) is amended and the section is
    28  amended by adding a subsection to read:
    29     Section 1220.  Regulations in Force at Polling Places.--* * *
    30     (d) All persons, except election officers, clerks, machine
    19990H1620B1975                 - 13 -

     1  inspectors, overseers, watchers, persons in the course of
     2  voting, persons lawfully giving assistance to voters,
     3  investigators or other representatives or members of the county
     4  or State board of elections, and peace and police officers, when
     5  permitted by the provisions of this act, must remain at least
     6  ten (10) feet distant from the polling place during the progress
     7  of the voting.
     8     * * *
     9     (g)  After the polls close, investigators or other
    10  representatives of members of the State or county board shall be
    11  permitted within the enclosed space in addition to other persons
    12  permitted by this act; Provided, however, That no member of the
    13  county board of elections who is a candidate for office or any
    14  other candidate shall be allowed in a polling place on election
    15  day except for the purpose of casting his own ballot.
    16     Section 5.  Section 1621(d), (e) and (l) of the act, added
    17  October 4, 1978 (P.L.893, No.171) and July 21, 1979 (P.L.189,
    18  No.63), are amended and the section is amended by adding clauses
    19  to read:
    20     Section 1621.  Definitions.--As used in this article, the
    21  following words have the following meanings:
    22     * * *
    23     (d)  The word "expenditure" shall mean:
    24     (1)  The payment, distribution, loan or advancement of money
    25  or any valuable thing by a candidate, political committee or
    26  other person for the purpose of influencing the outcome of an
    27  election; Provided, however, That such payment, distribution,
    28  loan or advancement of money or any valuable thing must be made
    29  only for legitimate and verifiable campaign expenses and not for
    30  any inherently personal purpose.
    19990H1620B1975                 - 14 -

     1     (2)  The payment, distribution, loan, advance or transfer of
     2  money or other valuable thing between or among political
     3  committees;
     4     (3)  The providing of a service or other valuable thing for
     5  the purpose of influencing the outcome of a nomination or
     6  election of any person to any public office to be voted for in
     7  this Commonwealth; or
     8     (4)  The payment or providing of money or other valuable
     9  thing by any person other than a candidate or political
    10  committee, to compensate any person for services rendered to a
    11  candidate or political committee. As used in this subsection,
    12  "inherently personal purpose" means a purpose that, by its
    13  nature, confers a personal benefit, including a home mortgage,
    14  rent, utility payment, clothing purchase, noncampaign automobile
    15  expense, country club membership, vacation or a trip of a
    16  noncampaign nature, household food items, tuition payments,
    17  admission to a sporting event, concert, theater or other form of
    18  entertainment.
    19     (5)  The term "expenditure" shall not include campaign
    20  expenditures made by a candidate for which the candidate is
    21  reimbursed by his or her political committee within the
    22  reporting period the expenditure was made. Such expenditure made
    23  by the candidate is subject, however, to the requirements of
    24  section 1626(c).
    25     (e)  [The words "independent expenditure" shall mean an
    26  expenditure by a person made for the purpose of influencing an
    27  election without cooperation or consultation with any candidate
    28  or any political committee authorized by that candidate and
    29  which is not made in concert with or at the request or
    30  suggestion of any candidate or political committee or agent
    19990H1620B1975                 - 15 -

     1  thereof.]
     2     The words "independent expenditure" shall mean an expenditure
     3  by a person for a communication expressly advocating the
     4  election or defeat of a clearly identified candidate which is
     5  not made with the cooperation or prior consent of, in
     6  consultation or concert with or at the request or suggestion of
     7  a candidate or any agent or authorized committee of the
     8  candidate. Mere knowledge alone of the occurrence of an
     9  expenditure shall not preclude it from being an independent
    10  expenditure. For purposes of this definition:
    11     (1)  The word "agent" shall mean any person who has actual
    12  oral or written authority, either express or implied, to make or
    13  to authorize the making of expenditures on behalf of a
    14  candidate, or shall mean any person who has been placed in a
    15  position within the campaign organization where it would
    16  reasonably appear that in the ordinary course of campaign-
    17  related activities he may authorize expenditures.
    18     (2)  The words "clearly identified candidate" shall mean that
    19  the name of the candidate appears, a photograph or drawing of
    20  the candidate appears or the identity of the candidate is
    21  otherwise apparent by unambiguous reference.
    22     (3)  The words "expressly advocating" shall mean any
    23  communication that advocates the election or defeat of a
    24  candidate by:
    25     (i)  containing the name of the candidate, a picture of the
    26  candidate or expressions such as "vote for", "elect", "support",
    27  "vote against", "defeat" or "reject" or a campaign slogan or
    28  words that in context can have no reasonable meaning other than
    29  to advocate the election or defeat of one or more clearly
    30  identified candidates;
    19990H1620B1975                 - 16 -

     1     (ii)  referring to one or more clearly identified candidates
     2  in a paid advertisement that is transmitted through radio or
     3  television within 60 calendar days preceding the date of an
     4  election of the candidate; or
     5     (iii)  expressing unmistakable and unambiguous support for or
     6  opposition to one or more clearly identified candidates when
     7  taken as a whole and with limited reference to external events
     8  such as the proximity to an election.
     9  The word "expressly advocating" does not include the publication
    10  or distribution of a communication that:
    11     (A)  Presents information in an educational manner solely
    12  about the voting record or position on a campaign issue of two
    13  (2) or more candidates.
    14     (B)  Is not made in coordination with a candidate, political
    15  party or agent of the candidate or party, or a candidate's agent
    16  or a person who is coordinating with a candidate or a
    17  candidate's agent.
    18     (C)  Does not contain a phrase such as "vote for," "reelect,"
    19  "support," "vote against," "defeat," or "reject" or other slogan
    20  or words along with the name or picture of the candidate that in
    21  context can have no reasonable meaning other than to urge the
    22  election or defeat of one or more clearly identified candidates.
    23     (4)  The words "made with the cooperation or prior consent
    24  of, in consultation or concert with or at the request or
    25  suggestion of a candidate or any agent or authorized committee
    26  of the candidate" shall mean any arrangement, coordination or
    27  direction by the candidate or his agent prior to the
    28  publication, distribution, display or broadcast of the
    29  communication. An expenditure shall be presumed to be so made
    30  when it is:
    19990H1620B1975                 - 17 -

     1     (i)  Based on information about the candidate's plans,
     2  projects or needs provided to the expending person by the
     3  candidate or by the candidate's agents, with a view toward
     4  having an expenditure made.
     5     (ii)  Made by or through any person who is or has been
     6  authorized to raise or expend funds, who is or has been an
     7  officer of an authorized committee, including a political party
     8  committee, or who is or has been receiving any form of
     9  compensation from the candidate, the candidate's committee or
    10  agent.
    11     * * *
    12     (l)  The words "Political Action Committee" shall mean any
    13  political committee as defined in subsection (h) which receives
    14  contributions and makes expenditures to, or on behalf of, any
    15  candidate other than a candidate's own authorized political
    16  committees or the political committees of any State, county,
    17  city, borough, township, ward or other regularly constituted
    18  party committee of any political party or political body. A
    19  political action committee which is established, maintained or
    20  controlled by a sponsoring organization such as a corporation,
    21  labor organization, membership association or trade association
    22  shall include in its registered name the full name of its
    23  sponsoring organization.
    24     * * *
    25     (n)  The words "affiliate" or "affiliated committee" shall
    26  include:
    27     (1)  Any committee established or authorized by a candidate
    28  as part of his or her campaign for the same election for office.
    29     (2)  Any committee established, financed, maintained or
    30  controlled by the same corporation, labor organization, person
    19990H1620B1975                 - 18 -

     1  or group of persons, including any parent, subsidiary, branch,
     2  division, department or local unit thereof. Local units may
     3  include, in appropriate cases, a franchisee, licensee or
     4  regional association.
     5     (o)  The words "in-kind contribution" shall mean a
     6  contribution of goods, services, property or any valuable thing
     7  offered free or at less than the usual and normal charge for
     8  such goods or services, but shall not include any legal or
     9  accounting services rendered to or on behalf of any political
    10  committee of a political party, an authorized committee of a
    11  candidate or any other political committee, if such services are
    12  solely for the purpose of ensuring compliance with this article.
    13  Such legal or accounting services, however, shall be reported
    14  pursuant to section 1631.
    15     Section 6.  Section 1622(b) of the act, added October 4, 1978
    16  (P.L.893, No.171), is amended to read:
    17     Section 1622.  Organization of Political Committees;
    18  Treasurer and Assistant Treasurer; Records of Candidate and
    19  Committees.--
    20     * * *
    21     (b)  Every candidate [who authorizes a committee or
    22  committees,] for public office must authorize a political
    23  committee to receive and disburse funds on behalf of this
    24  candidacy, and shall name a sole treasurer[, irrespective of the
    25  number of committees so authorized,] to receive and disburse all
    26  funds for said [committees.] committee. No more than one such
    27  committee shall be formed per office sought. Nothing herein
    28  shall be construed to prohibit a candidate from receiving or
    29  expending moneys on his behalf or a treasurer of a political
    30  party committee or a committee authorized to receive and
    19990H1620B1975                 - 19 -

     1  distribute funds on behalf of more than one (1) candidate from
     2  receiving or expending moneys on behalf of said candidates,
     3  notwithstanding the appointment of a sole treasurer. A sole
     4  treasurer may delegate authority, in writing, to any number of
     5  assistant treasurers to receive and disburse moneys collected on
     6  behalf of a candidate for election. Nothing in this section
     7  shall prohibit authorized individuals from selling tickets or
     8  soliciting funds when funds are deposited in the campaign
     9  account of the candidate.
    10     * * *
    11     Section 7.  Section 1626(a), (b), (d), (e) and (g) of the
    12  act, amended or added October 4, 1978 (P.L.893, No.171), July
    13  11, 1980 (P.L.600, No.128) and July 10, 1981 (P.L.256, No.84),
    14  are amended and the section is amended by adding a subsection to
    15  read:
    16     Section 1626.  Reporting by Candidate and Political
    17  Committees and other Persons.--
    18     (a)  Each treasurer of a political committee and each
    19  candidate for election to public office shall file with the
    20  appropriate supervisor reports of receipts and expenditures on
    21  forms, designed by the [Secretary of the Commonwealth] State
    22  board of elections, if the amount received or expended or
    23  liabilities incurred shall exceed the sum of two hundred fifty
    24  dollars ($250). Should such an amount not exceed two hundred
    25  fifty dollars ($250), then the candidate or, in the case of a
    26  political committee, the treasurer of the committee shall file a
    27  sworn statement to that effect with the appropriate supervisor
    28  rather than the report required by this section[.]: Provided,
    29  however, That if the amount received or expended by a candidate
    30  does not exceed two hundred fifty dollars ($250) he or she may
    19990H1620B1975                 - 20 -

     1  comply with this section by signing an affidavit to that effect
     2  on his/her political committee's report or statement.
     3     (b)  Each report shall include the following information:
     4     (1)  The full name, mailing address, specific occupation and
     5  specific name of the employer, if any, or the principal place of
     6  business, if self-employed, of each person who has made one or
     7  more contributions to or for such committee or candidate within
     8  the reporting period in an aggregate amount or value in excess
     9  of [two hundred fifty dollars ($250)] one hundred dollars
    10  ($100), together with the amount and date of such contributions.
    11  The accuracy of the information furnished to the candidate or
    12  committee shall be the responsibility of the contributor.
    13     (2)  The full name and mailing address of each person [who]
    14  and political committee that has made one or more contributions
    15  to or for such committee or candidate within the reporting
    16  period in an aggregate amount or value in excess of fifty
    17  dollars ($50), together with the amount and date of such
    18  contributions. The accuracy of the information furnished by the
    19  contributor shall be the responsibility of the contributor.
    20     (3)  The total sum of individual contributions made to or for
    21  such committee or candidate during the reporting period and not
    22  reported under clauses (1) and (2): Provided, however, That when
    23  individual contributions under fifty dollars ($50) made to one
    24  single fundraising event in which the total sum raised was two
    25  thousand five hundred dollars ($2,500) or more the report must
    26  list the names and addresses of all contributors to that
    27  fundraiser.
    28     (4)  Each and every expenditure, the date made, the full name
    29  and address of the person to whom made and the purpose for which
    30  such expenditure was made.
    19990H1620B1975                 - 21 -

     1     (5)  Any unpaid debts and liabilities, with the nature and
     2  amount of each, the date incurred and the full name and address
     3  of the person owed.
     4     (6)  The account shall include any unexpended balance of
     5  contributions or other receipts appearing from the last account
     6  filed.
     7     * * *
     8     (d)  [Pre-election reports] Reports by candidates for all
     9  public offices to be voted for [by the electors of the State at
    10  large] and all political committees, which have expended money
    11  for the purpose of influencing the election of such candidate,
    12  shall be filed not later than the sixth Tuesday before and the
    13  second Friday before an election, provided that the initial pre-
    14  election report [of each month and] shall be complete as of
    15  fifty (50) days prior to the election and the subsequent pre-
    16  election report shall be complete as of fifteen (15) days prior
    17  to the election. [Pre-election reports by all other candidates
    18  and political committees which have received contributions or
    19  made expenditures for the purpose of influencing an election
    20  shall be filed not later than the second Friday before an
    21  election, provided that such report be complete as of fifteen
    22  (15) days prior to the election.]
    23     (e)  All candidates or political committees, required to file
    24  under this section, shall also file [a] an initial post-election
    25  report not later than thirty (30) days after an election which
    26  shall be complete as of twenty (20) days after the election[.]
    27  and a subsequent post-election report on January 31 of the year
    28  after the election which shall be complete as of December 31 of
    29  the prior year. Candidates defeated in the primary election must
    30  file the initial post-election report by the deadline specified
    19990H1620B1975                 - 22 -

     1  in this subsection and continue to file reports in accordance
     2  with section 1627. In the case of a special election the initial
     3  post-election report shall be complete as of ten (10) days after
     4  such special election.
     5     * * *
     6     [(g)  Every person, other than a political committee or
     7  candidate, who makes independent expenditures expressly
     8  advocating the election or defeat of a clearly identified
     9  candidate, or question appearing on the ballot, other than by
    10  contribution to a political committee or candidate, in an
    11  aggregate amount in excess of one hundred dollars ($100) during
    12  a calendar year shall file with the appropriate supervisor, on a
    13  form prepared by the Secretary of the Commonwealth, a report
    14  which shall include the same information required of a candidate
    15  or political committee receiving such a contribution and,
    16  additionally, the name of the candidate or question supported or
    17  opposed. Reports required by this subsection shall be filed on
    18  dates on which reports by political committees making
    19  expenditures are required to report under this section.]
    20     * * *
    21     (k)  All reports filed with the State board of elections
    22  shall be filed via electronic media in the manner prescribed by
    23  the State board. All such reports shall be accompanied by the
    24  affidavit prescribed by section 1629 of this act. Any candidate
    25  or political committee not able to file the report or statement
    26  required by this section using electronic media shall request an
    27  exemption from the State board of elections. The candidate or
    28  political committee upon approval of the State board of
    29  elections shall file reports and statements on forms developed
    30  by the State board.
    19990H1620B1975                 - 23 -

     1     Section 8.  Section 1627 of the act, amended July 11, 1980
     2  (P.L.591, No.127) and July 11, 1980 (P.L.625, No.129), is
     3  amended to read:
     4     Section 1627.  [Annual Reports] Quarterly Reports;
     5  Termination of Committees.--
     6     (a)  All political committees and candidates, [including
     7  those committees and candidates] not filing reports under
     8  section 1626 (d) and (e), shall file [a report on January 31 of
     9  each year which shall be complete as of December 31 of the prior
    10  year. Such reports shall be filed annually at this time until
    11  there is no balance or debt in the report of the candidate or
    12  political committee. Such reports shall be cumulative. However,
    13  if there has been no change in the account, then the candidate
    14  or political committee shall file a statement to that effect
    15  with the appropriate supervisor. Each form designated by the
    16  Secretary of the Commonwealth for filing a report or statement
    17  required by section 1626(e) shall contain a block which may be
    18  marked by the candidate or political committee designating it a
    19  termination report or statement. If such report or statement is
    20  so designated, or if an authorized candidate elects to file no
    21  report or statement pursuant to section 1626.1, no annual report
    22  need be filed under this section unless contributions were
    23  received or expenditures made subsequent to the time period for
    24  filing of such termination report. However, no candidate or
    25  political committee may terminate by way of a statement where
    26  the unpaid balance indicated in the previous report was greater
    27  than two hundred fifty dollars ($250). In the case of annual
    28  reports said report shall cover the campaign activity of a
    29  candidate or political committee from the last prior report or
    30  statement.] quarterly reports. Such reports shall be filed on
    19990H1620B1975                 - 24 -

     1  the fifteenth day following the last day of the third, sixth,
     2  ninth and twelfth month of each year and shall be complete as of
     3  the end of such months. Reports must be filed until such time
     4  that there is no balance or debt in the report of the candidate
     5  or political committee. Such reports shall be cumulative. A
     6  report must be filed even if there was no change in the account
     7  since the last filing. Each form designated by the State board
     8  of elections for filing a report required by section 1626(e)
     9  shall contain a block which may be marked by the candidate or
    10  political committee designating it a termination report or
    11  statement. No candidate or political committee may terminate
    12  unless such candidate or committee has a zero balance. No
    13  candidate or committee may terminate by way of a statement. In
    14  the case of quarterly reports, said report shall cover the
    15  campaign activity of a candidate or political committee from the
    16  last prior report or statement. Once terminated, a political
    17  committee must comply with sections 1623 and 1624 before
    18  receiving contributions or making expenditures.
    19     [(b)  Any political committee required to be registered under
    20  this act and not reporting under section 1626 shall file an
    21  annual report under this section. However, if a political
    22  committee makes aggregate expenditures as defined in section
    23  1621 in an amount less than two hundred fifty dollars ($250) or
    24  incurs aggregate debt in an amount less than two hundred fifty
    25  dollars ($250) during the calendar year to influence an
    26  election, it need not file an annual report; provided that this
    27  exception shall not be applicable to a candidate's political
    28  committee or to a State or county committee of a political party
    29  or political body or to a political action committee of a
    30  corporation or unincorporated association.]
    19990H1620B1975                 - 25 -

     1     Section 9.  The act is amended by adding a section to read:
     2     Section 1627.1.  Limitations on Certain Contributions.--
     3     (a)  Aggregate contributions, including in-kind
     4  contributions, from any person to any candidate for the office
     5  of Senator or Representative in the General Assembly, court of
     6  common pleas or a county or local office, his authorized
     7  committee or agent shall not exceed two hundred dollars ($200)
     8  for each election. Furthermore, for each election, no such
     9  candidate, his authorized committee or agent shall accept or
    10  receive more than two hundred dollars ($200) in aggregate
    11  contributions, including in-kind contributions from any person.
    12     (b)  Aggregate contributions, including in-kind
    13  contributions, from any person to any candidate for Statewide
    14  office, his authorized committee or agent shall not exceed one
    15  thousand dollars ($1,000) for each election. Furthermore, for
    16  each election, no candidate, his authorized committee or agent
    17  shall accept or receive more than one thousand dollars ($1,000)
    18  in aggregate contributions, including in-kind contributions from
    19  any person.
    20     (c)  Aggregate contributions, including in-kind
    21  contributions, from a single political action committee, its
    22  affiliate or agent or candidate's political committee, its
    23  affiliate or agent to any candidate for the office of Senator or
    24  Representative in the General Assembly, court of common pleas or
    25  a county or local office, his authorized committee or agent
    26  shall not exceed one thousand dollars ($1,000) for each
    27  election. Furthermore, for each election, no candidate for such
    28  office, his authorized committee or agent shall accept or
    29  receive more than one thousand dollars ($1,000) in aggregate
    30  contributions, including in-kind contributions, from single
    19990H1620B1975                 - 26 -

     1  political action committee or agent or candidate's political
     2  committee.
     3     (d)  Aggregate contributions, including in-kind
     4  contributions, from single political action committee, its
     5  affiliate or agent or candidate's political committee to any
     6  candidate for Statewide office, his authorized committee or
     7  agent shall not exceed five thousand dollars ($5,000) for each
     8  election. Furthermore, for each election, no candidate, his
     9  authorized committee or agent shall accept or receive more than
    10  five thousand dollars ($5,000) in aggregate contributions,
    11  including in-kind contributions, from a single political action
    12  committee, its affiliate or agent or candidate's political
    13  committee.
    14     (e)  Aggregate contributions, including in-kind
    15  contributions, from a single political party committee, its
    16  affiliate or agent to any candidate for the office of Senator or
    17  Representative in the General Assembly, court of common pleas or
    18  a county or local office, his authorized committee or agent,
    19  shall not exceed five thousand dollars ($5,000) per election.
    20  Furthermore, no candidate for the office of Senator or
    21  Representative in the General Assembly, court of common pleas or
    22  a county or local office, his authorized committee or agent,
    23  shall accept or receive more than five thousand dollars ($5,000)
    24  in aggregate contributions from any single political party
    25  committee, its affiliate or agent.
    26     (f)  Aggregate contributions, including in-kind
    27  contributions, from a single political party committee, its
    28  affiliate or agent to any candidate for Statewide office, his
    29  authorized committee or agent, or any political action
    30  committee, its affiliate or agent or political party committee,
    19990H1620B1975                 - 27 -

     1  its affiliate or agent, or any other political committee, its
     2  affiliate or agent, shall not exceed twenty thousand dollars
     3  ($20,000) per election. Furthermore, no candidate for Statewide
     4  office, his authorized committee or agent or any political
     5  action committee or political committee shall accept or receive
     6  more than twenty thousand dollars ($20,000) in aggregate
     7  contributions from any single political party committee, its
     8  affiliate or agent.
     9     (g)  Aggregate contributions, including in-kind
    10  contributions, from any person or a single political action
    11  committee, its affiliate or agent or any single candidate's
    12  political committee, its affiliate or agent to a single
    13  political action committee, its affiliate or agent shall not
    14  exceed five thousand dollars ($5,000) during any calendar year.
    15  Furthermore, for each election, no political action committee,
    16  its affiliate or agent shall accept or receive more than five
    17  thousand dollars ($5,000) in aggregate contributions, including
    18  in-kind contributions, from a single political action committee,
    19  its affiliate or agent during any calendar year.
    20     (h)  Aggregate contributions from any person, a single
    21  candidate's political committee, its affiliate or agent or a
    22  single political action committee, its affiliate or agent or any
    23  other political committee to a single political party committee
    24  shall not exceed twenty thousand dollars ($20,000) in a calendar
    25  year. Furthermore, no single political party committee shall
    26  accept or receive more than twenty thousand dollars ($20,000) in
    27  aggregate contributions from any single candidate's political
    28  committee or agent or a single political action committee, its
    29  affiliate or agent or any political committee.
    30     (i)  No person shall make contributions in accordance with
    19990H1620B1975                 - 28 -

     1  this section aggregating more than twenty-five thousand dollars
     2  ($25,000) in any calendar year.
     3     (j)  A gift, subscription, loan, advance or deposit of money
     4  or anything of value to a candidate shall be considered a
     5  contribution both by the original source of the contribution and
     6  by any intermediary or conduit if the intermediary or conduit:
     7     (1)  exercises any direction over the making of the
     8  contribution; or
     9     (2)  solicits the contribution or arranges for the
    10  contribution made and directly or indirectly makes the candidate
    11  aware of such intermediary or conduit's role in soliciting or
    12  arranging the contribution for the candidate.
    13     (k)  For purposes of subsection (j), a contribution shall not
    14  be considered to be a contribution by an intermediary or conduit
    15  to the candidate if:
    16     (1)  the intermediary or conduit has been retained by the
    17  candidate's committee for the purpose of fundraising and is
    18  reimbursed for expenses incurred in soliciting contributions;
    19     (2)  in the case of an individual, the candidate has
    20  expressly authorized the intermediary or conduit to engage in
    21  fundraising, or the individual occupies a significant position
    22  within the candidate's campaign organization; or
    23     (3)  in the case of a political committee, the intermediary
    24  or conduit is the authorized committee of the candidate.
    25     (l)  No candidate for Statewide office who accepts public
    26  funding in accordance with Article XVI-A may contribute more
    27  than $25,000 per election from their personal funds. No
    28  candidate for the offices of Senator or Representative in the
    29  General Assembly who accepts public funding in accordance with
    30  Article XVI-A may contribute more than ten thousand dollars
    19990H1620B1975                 - 29 -

     1  ($10,000) per election from their personal funds.
     2     (m)  The provisions of this section are applicable to any
     3  contribution made for the purpose of influencing any election to
     4  all public offices except Federal offices.
     5     (n)  For purposes of this section, any contribution made to a
     6  candidate in a year other than the calendar year in which the
     7  election is held with respect to which such contribution is
     8  made, is considered to be made during the calendar year in which
     9  such election is held.
    10     Section 10.  Section 1628 of the act, amended February 13,
    11  1998 (P.L.72, No.18), is amended to read:
    12     Section 1628.  Late Contributions [and Independent
    13  Expenditures].--Any candidate or political committee, authorized
    14  by a candidate and created solely for the purpose of influencing
    15  an election on behalf of that candidate, which receives any
    16  contribution or pledge of five hundred dollars ($500) or more[,
    17  and any person making an independent expenditure, as defined by
    18  this act, of five hundred dollars ($500) or more] after the
    19  final pre-election report has been deemed completed shall report
    20  such contribution[, pledge or expenditure] or pledge to the
    21  appropriate supervisor. Such report shall be sent by the
    22  candidate, chairman or treasurer of the political committee
    23  within twenty-four (24) hours of receipt of the contribution.
    24  [It shall be the duty of the supervisor to confirm the substance
    25  of such report.] The report shall be made by telegram, mailgram,
    26  overnight mail [or], facsimile or other electronic transmission.
    27  Any candidate in his own behalf, or chairman, treasurer or
    28  candidate [in] on behalf of the political committee or the
    29  candidate's campaign committee may also comply with this section
    30  by appearing personally before such supervisor and reporting
    19990H1620B1975                 - 30 -

     1  such late contributions or pledges.
     2     Section 11.  The act is amended by adding a section to read:
     3     Section 1628.1.  Independent Expenditures.--
     4     (a)  An expenditure not defined under section 1621 as an
     5  independent expenditure shall be an in-kind contribution to the
     6  candidate and an expenditure by the candidate, unless otherwise
     7  exempted.
     8     (b)  The financing of the dissemination, distribution or
     9  republication, in whole or in part, of any broadcast or any
    10  written, graphic or other form of campaign materials prepared by
    11  the candidate, his campaign committees or their authorized
    12  agents shall be considered a contribution for the purpose of
    13  contribution limitations and reporting responsibilities by the
    14  person making the expenditure but shall not be considered an
    15  expenditure by the candidate or his authorized committees unless
    16  made with the cooperation or with the prior consent of, or in
    17  consultation with, or at the request or suggestion of, a
    18  candidate or any authorized agent or committee thereof.
    19     (c)  Every person who makes an independent expenditure
    20  aggregating in excess of two hundred fifty dollars ($250) during
    21  a calendar year in any election shall file a signed statement
    22  and a copy of the material paid for with the independent
    23  expenditure in accordance with the provisions of section 1631
    24  within twenty-four (24) hours of making the expenditure. In
    25  addition, the person who makes an independent expenditure shall
    26  send a copy of the material submitted to each candidate for
    27  whose benefit the expenditures were made in that race by
    28  overnight mail, facsimile or courier service.
    29     (d)  The signed statement submitted by the person making the
    30  expenditure shall include the following information:
    19990H1620B1975                 - 31 -

     1     (1)  The reporting person's name, mailing address, occupation
     2  and name of employer, if any, or in the case of a separate
     3  segregated committee, the name and address of the connected
     4  organization.
     5     (2)  The name and mailing address of the person to whom the
     6  expenditure was made.
     7     (3)  The amount, date and purpose of each expenditure.
     8     (4)  A statement which indicated whether the expenditure was
     9  in support of or in opposition to a candidate, together with the
    10  candidate's name and office sought.
    11     (5)  A notarized certification under penalty of perjury as to
    12  whether the expenditure was made with the cooperation or prior
    13  consent of, in consultation or concert with or at the request or
    14  suggestion of any candidate or any authorized committee or agent
    15  of any candidate.
    16     (6)  The identification of each person who made a
    17  contribution in excess of two hundred dollars ($200) to the
    18  person filing the report, which contribution was made for the
    19  purpose of furthering the reported independent expenditure.
    20     (e)  Within twenty-four (24) hours of receipt of the material
    21  described in subsection (d), each candidate for whose benefit
    22  the expenditure was made shall file a statement under the
    23  provisions of section 1631 if either of the following apply:
    24     (1)  the materials expressly advocate the election of his
    25  candidacy; or
    26     (2)  the materials expressly advocate the defeat of his
    27  opponent.
    28     (f)  The statement submitted by each candidate for whose
    29  benefit the expenditure was made shall identify the date of the
    30  expenditure as provided for by the expending person and include
    19990H1620B1975                 - 32 -

     1  a notarized certification under penalty of perjury as to whether
     2  the expenditure was made in cooperation, consultation or concert
     3  with the person making the expenditure or at the request or
     4  suggestion of the candidate or any authorized committee or agent
     5  of the candidate. The statement shall be signed by each
     6  candidate for whose benefit the expenditure was made.
     7     (g)  The statement submitted by a candidate shall identify
     8  the date of the expenditure as provided for by the expending
     9  person and include a notarized certification under penalty of
    10  perjury as to whether the expenditure was made in cooperation,
    11  consultation or concert with the person making the expenditure
    12  or at the request or suggestion of the candidate or any
    13  authorized committee or agent of the candidate. The statement
    14  shall be signed by the candidate.
    15     (h)  No expenditure by an authorized committee of a candidate
    16  on behalf of that candidate shall qualify as an independent
    17  expenditure.
    18     (i)  (1)  Any person who does not report an expenditure of
    19  funds as required under subsection (e) commits a misdemeanor of
    20  the first degree and shall, upon conviction, be subject to a
    21  fine of not more than ten thousand dollars ($10,000), or to
    22  imprisonment for up to five (5) years, or both.
    23     (2)  A person shall not be deemed elected to a public office
    24  under the laws of this Commonwealth, or enter upon the duties
    25  thereof, or receive any salary or emoluments therefrom, if the
    26  affidavit required in subsection (f) has not been submitted as
    27  described.
    28     (3)  Any candidate who does not submit the affidavit as
    29  required under subsection (f) commits a misdemeanor of the
    30  second degree and shall, upon conviction, be subject to a fine
    19990H1620B1975                 - 33 -

     1  of not more than five thousand dollars ($5,000), or to
     2  imprisonment for up to two (2) years, or both. All actions
     3  pursuant to enforcement of this subsection shall be initiated in
     4  the Commonwealth Court.
     5     Section 12.  Section 1632(a) and (c) of the act, amended or
     6  added December 13, 1979 (P.L.551, No.124) and July 11, 1980
     7  (P.L.591, No.127), are amended to read:
     8     Section 1632.  Late Filing Fee; Certificate of Filing.--
     9     (a)  A late filing fee for each report or statement of
    10  expenditures and contributions which is not filed within the
    11  prescribed period shall be imposed as follows. Such fee shall be
    12  [ten dollars ($10)] twenty dollars ($20) for each [day] of the
    13  first two days or part of a day excluding Saturdays, Sundays and
    14  holidays that a report is overdue. An additional fee of [ten
    15  dollars ($10)] one hundred dollars ($100) is due for each [of
    16  the first six (6) days] additional day that a report is overdue.
    17  The maximum fee payable with respect to a single report [is two
    18  hundred fifty dollars ($250)] shall not exceed the amount of
    19  contributions received during the prescribed reporting period. A
    20  supervisor shall receive an overdue report or statement even if
    21  any late filing fee due has not been paid but the report or
    22  statement shall not be considered filed until all fees have been
    23  paid upon the receipt by the supervisor of an overdue report. No
    24  further late filing fees shall be incurred once the report or
    25  statement is filed notwithstanding the fact that the report or
    26  statement is not considered filed. The late filing fee is the
    27  [personal] liability of the candidate or treasurer of a
    28  political committee [and cannot be paid from contributions to
    29  the candidate or committee, nor may such fee be considered an
    30  expenditure]. A report or statement of expenditures and
    19990H1620B1975                 - 34 -

     1  contributions shall be deemed to have been filed within the
     2  prescribed time if the letter transmitting the report or
     3  statement which is received by the supervisor is transmitted by
     4  first class mail and is postmarked by the United States Postal
     5  Service on the day prior to the final day on which the report or
     6  statement is to be received: Provided, That this sentence shall
     7  not be applicable to the reporting requirements contained in
     8  section 1628.
     9     * * *
    10     [(c)  No late filing fees shall be imposed under this section
    11  for pre-election filings due any primary, special, or municipal
    12  election held through November 6, 1979. Late filing fees paid
    13  for any primary, special, or municipal election held through
    14  November 6, 1979 shall be refunded after any candidate or
    15  committee in violation has filed the required pre-primary, pre-
    16  special, pre-municipal, post-primary, post-special, or post-
    17  municipal election report. No late filing fee shall be imposed
    18  under this section, for the required post-primary election
    19  report for the primary election held May 15, 1979 where such
    20  post-primary election report is filed on or before July 16,
    21  1979. No late filing fee shall be imposed under this section for
    22  the required pre-election or post-election report for the
    23  municipal election held November 6, 1979 where such report is
    24  filed on or before February 15, 1980: Provided, however, That no
    25  one shall be issued a commission or take the oath of office
    26  until all reports required on account of his or her candidacy
    27  shall be filed. Any pre-election or post-election late filing
    28  fees, collected for primary, special, or municipal elections
    29  held on or before November 6, 1979, shall be refunded within
    30  thirty (30) days.]
    19990H1620B1975                 - 35 -

     1     Section 13.  Section 1633(a) of the act, amended November 26,
     2  1978 (P.L.1313, No.318), is amended to read:
     3     Section 1633.  Contributions or Expenditures by National
     4  Banks, Corporations or Unincorporated Associations.--
     5     (a)  It is unlawful for any National or State bank,
     6  partnership or any corporation, incorporated under the laws of
     7  this or any other state or any foreign country or any
     8  unincorporated association, except those corporations formed
     9  primarily for political purposes or as a political committee, to
    10  make a contribution or expenditure in connection with the
    11  election of any candidate or for any political purpose whatever
    12  except in connection with any question to be voted on by the
    13  electors of this Commonwealth. Furthermore, it shall be unlawful
    14  for any candidate, political committee, or other person to
    15  knowingly accept or receive any contribution prohibited by this
    16  section, or for any officer or any director of any corporation,
    17  bank, or any unincorporated association to consent to any
    18  contribution or expenditure by the corporation, bank or
    19  unincorporated association, as the case may be, prohibited by
    20  this section.
    21     * * *
    22     Section 14.  Section 1635 of the act added or amended October
    23  4, 1978 (P.L.893, No.171) and July 11, 1980 (P.L.591, No.127),
    24  is amended to read:
    25     Section 1635.  Independent Audit.--
    26     (a)  [Every two (2) years, the Secretary of the Commonwealth
    27  shall contract for the services of a certified public accountant
    28  or certified public accounting firm. Such contract shall be
    29  awarded on a bid basis and no certified public accountant or
    30  certified public accounting firm shall be eligible to obtain
    19990H1620B1975                 - 36 -

     1  such a contract for two (2) successive contract periods.] The
     2  State board of elections shall employ as many auditors as are
     3  necessary to perform auditing functions required by this act.
     4     (b)  The [Secretary of the Commonwealth] State board of
     5  elections shall select by lottery, at a public drawing, forty
     6  (40) days after each primary, general and municipal election
     7  [three (3)] ten (10) per cent of all public offices for which
     8  candidates must file nominating petitions or papers with the
     9  [Secretary of the Commonwealth] State board of elections. For
    10  the purpose of this subsection, a legislative or senatorial
    11  district shall be considered a public office. Any public office
    12  filled at a special election occurring other than at a primary,
    13  general or municipal election shall be placed in the lottery of
    14  public offices for audit at the next succeeding primary, general
    15  or municipal election whichever occurs first. Any public office
    16  filled at a special election held at the same time as any other
    17  election shall be included in the lottery for that election.
    18     (c)  The [certified public accountant] State board shall
    19  audit the reports of all candidates for each public office
    20  selected in accordance with subsection (b) and those committees,
    21  authorized and created solely for the purposes of influencing an
    22  election on behalf of those candidates.
    23     (d)  The [accountants] State board shall conduct [their] its
    24  audit in accord with sound accounting principles and shall make
    25  findings of any possible violations of this act with respect to
    26  campaign contributions or expenses. All audited candidates and
    27  their committees shall furnish any records to the [accountants]
    28  State board which the [accountants deem] State board deems
    29  necessary for the completion of their work.
    30     (e)  The [accountant shall report his or her findings to the
    19990H1620B1975                 - 37 -

     1  Secretary of the Commonwealth who shall make public the report
     2  of the accountants.] State board shall make public the report of
     3  its findings. The results of the primary election audit shall
     4  not be released to the public until after the general or
     5  municipal election. Nothing in this subsection shall be
     6  construed to prohibit the initiation of prosecution for criminal
     7  violations by the appropriate agencies.
     8     (f)  The [accountants] State board shall also furnish a
     9  report of [their] its findings to the Attorney General for the
    10  institution of such criminal proceedings as he or she shall deem
    11  necessary.
    12     Section 15.  Sections 1639(6), (7), (8), (9) and (10) and
    13  1640 of the act, added October 4, 1978 (P.L.893, No.171), is
    14  amended to read:
    15     Section 1639.  Powers and Duties of the Supervisor.--It shall
    16  be the duty of the supervisor to:
    17     * * *
    18     [(6)  Make from time to time inquiries and filed
    19  investigations with respect to reports and statements filed
    20  under the provisions of this article and with respect to alleged
    21  failures to file any report or statement required under
    22  provisions of this article.
    23     (7)  Report apparent violations of this article to the
    24  appropriate law enforcement authorities.
    25     (8)] (6)  Collect any fines relating to the filing of late
    26  reports and transmit all such fines collected to the appropriate
    27  fiscal officer of the receiving supervisor.
    28     [(9)] (7)  Inform each candidate or committee which has
    29  failed to file of that fact.
    30     [(10)] (8)  Publish a list of all those candidates and their
    19990H1620B1975                 - 38 -

     1  committees who have failed to file reports as required by this
     2  act within six (6) days of their failure to comply.
     3     Section 1640.  Additional Powers and Duties of the [Secretary
     4  of the Commonwealth] State Board of Elections.--The [Secretary
     5  of the Commonwealth] State board of elections shall have the
     6  following additional powers and duties:
     7     [(1)  To serve as the State clearing house for information
     8  concerning the administration of this act.
     9     (2)  To prescribe suitable rules and regulations to carry out
    10  the provisions of this act.
    11     (3)] (1)  To develop the prescribed forms required by the
    12  provisions of this article for the making of the reports and
    13  statements required to be filed with the supervisor.
    14     [(4)] (2)  To prepare a manual setting forth recommended
    15  uniform methods of bookkeeping and reporting which shall be
    16  furnished by the supervisor to the person required to file such
    17  reports and statements as required by this article.
    18     [(5)] (3)  To examine the contributions to State legislative
    19  and Statewide candidates and publish a list of all those
    20  political committees who have contributed to candidates and who
    21  have failed to file reports as required by this act within six
    22  (6) days of their failure to comply.
    23     (4)  The State board shall develop a computer data base and
    24  electronic reporting system that shall contain all information
    25  necessary for the proper administration of this act, including
    26  information on contributions and expenditures by candidates and
    27  their authorized committees and distribution of moneys, and
    28  including direct access through personal computer and the
    29  Internet.
    30     (5)  The State board shall make the electronic reporting
    19990H1620B1975                 - 39 -

     1  process available to any such candidate or committee which is
     2  required to file reports and statements in accordance with this
     3  act on self-executing computer diskettes; and make available
     4  materials to facilitate the task of compliance with the
     5  disclosure and recordkeeping requirements of this article.
     6     (6)  The State board shall cause all information contained in
     7  such a statement filed with the State board which is not on such
     8  electronic reporting system to be entered into such system as
     9  soon as practicable but in no event later than four business
    10  days after its receipt by the State board.
    11     (7)  (i)  A list of campaign contributions and expenditures
    12  and reports must be made available for public inspection at the
    13  office of the supervisor no later than four business days after
    14  receipt.
    15     (ii)  The State board shall not require the viewer to provide
    16  any information or identification as a condition to view the
    17  computer data base.
    18     (iii)  The State board shall ensure that the documents and
    19  reports are available for copying or purchase at a reasonable
    20  cost, not to exceed the actual costs to the State board.
    21     Section 16.  Section 1641 of the act, amended July 12, 1980
    22  (P.L.649, No.134), is amended to read:
    23     Section 1641.  Reports by Business Entities; Publication by
    24  [Secretary of the Commonwealth] State Board of Elections.--
    25     (a)  Any business entity including but not limited to a
    26  corporation, company, association, partnership or sole
    27  proprietorship, which has been awarded non-bid contracts of any
    28  value or contracts over $50,000 from the Commonwealth or its
    29  political subdivisions during the preceding calendar year, any
    30  business entity or person applying for or receiving a permit to
    19990H1620B1975                 - 40 -

     1  operate a landfill from the Department of Environmental
     2  Protection shall report by February 15 of each year to the
     3  [Secretary of the Commonwealth] State board of elections an
     4  itemized list of all political contributions known to the
     5  business entity by virtue of the knowledge possessed by every
     6  officer, director, associate, partner, limited partner or
     7  individual owner that has been made by:
     8     (1)  any officer, director, associate, partner, limited
     9  partner, individual owner or members of their immediate family
    10  when the contributions exceed an aggregate of [one thousand
    11  dollars ($1,000)] five thousand dollars ($5,000) by any
    12  individual during the preceding year; or
    13     (2)  any employe or members of his immediate family whose
    14  political [contribution] contributions exceeded [one thousand
    15  dollars ($1,000)] five thousand dollars ($5,000) during the
    16  preceding year.
    17  For the purposes of this subsection, "immediate family" means a
    18  person's spouse and any unemancipated child.
    19     (b)  It shall be the duty of the [Secretary of the
    20  Commonwealth] State board of elections to publish sixty (60)
    21  days after February 15 of each year a complete itemized list of
    22  all contributions given under the provisions of subsection (a).
    23  This list shall be a matter of public record open to public
    24  inspection and copies made available at cost to any individual
    25  who requests them. The State board shall also make such data
    26  available on electronic media and the Internet within the
    27  deadline specified in this subsection.
    28     (c)  The Department of General Services shall provide
    29  information regarding the requirements of this section to all
    30  corporations, companies, associations, partnerships or sole
    19990H1620B1975                 - 41 -

     1  proprietorships receiving contracts from the Commonwealth prior
     2  to the finalization of such contracts.
     3     (d)  The Department of General Services shall provide a list
     4  of all corporations, companies, associations, partnerships or
     5  sole proprietorships receiving nonbid contracts and contracts in
     6  excess of fifty thousand dollars ($50,000) from the Commonwealth
     7  and the Department of Environmental Protection shall provide a
     8  list of any person of business entity applying for or receiving
     9  a landfill permit to the State board of elections no later than
    10  January 31 of each year for the preceding calendar year.
    11     (e)  The State board of elections shall compare all data
    12  received pursuant to this section and campaign expense reports
    13  filed for the same period to determine that all filing
    14  requirements of this act have been met. Results of this
    15  comparison shall be made available at its office and on the
    16  Internet within 60 days of February 15 of each year.
    17     Section 17.  The act is amended by adding an article to read:
    18                           ARTICLE XVI-A
    19                  Pennsylvania Fair Campaign Fund
    20     Section 1601-A.  Definitions.--As used in this article, the
    21  following words have the following meanings:
    22     "Declaration of candidacy" shall mean the point in a person's
    23  campaign for political office at which that person becomes in
    24  compliance with section 1622.
    25     "Fund" shall mean the Pennsylvania Fair Campaign Fund
    26  established under section 1604-A.
    27     "Major political party" shall mean a political party whose
    28  candidate for Governor received either the highest or second
    29  highest number of votes in the preceding gubernatorial election.
    30     Section 1602-A.  Application of Article.--(a)  The provisions
    19990H1620B1975                 - 42 -

     1  of this article shall be applicable to candidates for the
     2  following offices who elect to apply for campaign funding under
     3  this article:
     4     (1)  Governor.
     5     (2)  Lieutenant Governor.
     6     (3)  Attorney General.
     7     (4)  Auditor General.
     8     (5)  State Treasurer.
     9     (6)  Supreme Court Justice.
    10     (7)  Superior Court Judge.
    11     (8)  Commonwealth Court Judge.
    12     (9)  Senator in the General Assembly.
    13     (10)  Representative in the General Assembly.
    14     (b)  For the purposes of this article insofar as it relates
    15  to funding of nominated candidates in the general election, a
    16  political party's or political body's nominated candidates for
    17  Governor and Lieutenant Governor shall be considered as one
    18  candidacy and the provisions specifically applicable to the
    19  Governor shall be applicable to the combined candidacy.
    20     Section 1603-A.  Administration.--The provisions of this
    21  article shall be administered by the State board.
    22     Section 1604-A.  Pennsylvania Fair Campaign Fund
    23  Established.--There is hereby established a special restricted
    24  receipts fund in the State Treasury to be known as the
    25  Pennsylvania Fair Campaign Fund. Payments shall be made into
    26  this fund pursuant to section 1605-A and disbursements shall be
    27  made from the fund only upon the warrant of the State board and
    28  a warrant of the State Treasurer. As much of the moneys in the
    29  fund as are necessary to make payments to candidates as provided
    30  in this article are appropriated from the Pennsylvania Fair
    19990H1620B1975                 - 43 -

     1  Campaign Fund to the State board on a continuing basis for the
     2  purpose of such payments.
     3     Section 1605-A.  Funding the Pennsylvania Fair Campaign.--(a)
     4  Beginning with tax years commencing January 1, 1999, and
     5  thereafter, each individual subject to the tax imposed by
     6  Article III of the act of March 4, 1971 (P.L.6, No.2), known as
     7  the "Tax Reform Code of 1971," whose tax liability for the year
     8  is two dollars and fifty cents ($2.50) or more may designate two
     9  dollars and fifty cents ($2.50) of his personal income taxes to
    10  be paid into the Pennsylvania Fair Campaign Fund. In the case of
    11  married taxpayers filing a joint return, each spouse may
    12  designate two dollars and fifty cents ($2.50) to be paid into
    13  the Pennsylvania Fair Campaign Fund if their tax liability is
    14  five dollars ($5) or more. All of these designated tax revenues
    15  shall be paid into the fund. The check-off and instructions
    16  shall be prominently displayed on the first page of the return
    17  form. The instructions shall readily indicate that these
    18  designations neither increase nor decrease an individual's tax
    19  liability.
    20     (b)  The General Assembly shall each fiscal year appropriate
    21  money to the Fair Campaign Fund. The sum appropriated to the
    22  Fund for an election shall be equal to the maximum amount of
    23  funding available specified in section 1609-A (a) for each
    24  office appearing on the ballot multiplied by the number of
    25  candidates eligible to receive public funding pursuant to this
    26  act who appeared on the ballot at the last preceding election at
    27  which such office was voted for minus the tax proceeds collected
    28  in accordance with subsection (a).
    29     Section 1606-A.  Certification of Moneys in Fund.--By June 30
    30  of each year, the State Treasurer shall certify to the State
    19990H1620B1975                 - 44 -

     1  board of elections the current balance available in the fund.
     2     Section 1607-A.  Qualification for Funding.--(a)  Any
     3  candidate for offices described in section 1602-A may apply for
     4  funding under this article if the candidate meets the
     5  contributory thresholds established in subsection (b) and
     6  otherwise conforms to the requirements of this article. No
     7  candidate shall be obligated to apply for funding under this
     8  article and if any candidate elects not to apply, the provisions
     9  of this article pertaining to limits on expenditures or the use
    10  of his personal funds shall be inapplicable to the person and
    11  his candidacy. Any candidate electing to receive funding under
    12  this article shall declare his intention to do so and specify
    13  the office for which he is a candidate. No candidate may elect
    14  to receive funding under this article for a general or municipal
    15  election unless the candidate elected to receive funding under
    16  this article for the primary election. Any committee authorized
    17  to receive contributions or make expenditures for the candidate
    18  who has so declared shall abide by the provisions of section
    19  1612-A. Any candidate who for any reason has his name withdrawn
    20  from the ballot, after receipt of funds under this article,
    21  shall return all moneys received to the fund as well as offering
    22  back qualifying contributions for that office.
    23     (b)  (1)  In order to qualify for funding in a general
    24  election, a candidate must receive subsequent to the date of the
    25  primary election but prior to the date of the general election
    26  qualifying contributions of the following amounts:
    27         Office              Qualifying Contributions Required
    28     (i)  Governor/Lieutenant
    29              Governor                 $200,000
    30     (ii)  Lieutenant Governor           50,000 (for primary only)
    19990H1620B1975                 - 45 -

     1     (iii)  State Treasurer              50,000
     2     (iv)  Auditor General               50,000
     3     (v)  Attorney General               50,000
     4     (vi)  Supreme Court Justices        25,000
     5     (vii)  Superior Court Judges        25,000
     6     (viii)  Commonwealth Court Judges   25,000
     7     (ix)  Senator                       10,000
     8     (x)  Representative                 2,500
     9     (2)  In order to qualify for funding in a primary election, a
    10  candidate must receive prior to the date of the primary
    11  election, but subsequent to the immediately preceding general or
    12  municipal election, one-half of the amount specified in clause
    13  (1) for the appropriate office.
    14     (3)  (i)  The term "qualifying contribution" shall include
    15  any contribution, as defined in section 1621(b), which has all
    16  of the following characteristics:
    17     (A)  Made by an individual resident of Pennsylvania.
    18     (B)  Made by a written instrument which indicates the
    19  contributor's full name and mailing residence and is not
    20  intended to be returned to the contributor or transferred to
    21  another political committee or candidate.
    22     (ii)  If a contributor receives goods or services of value in
    23  return for his contribution, the qualifying contribution shall
    24  be calculated as the original contribution, minus the fair
    25  market value of the goods or services received.
    26     (iii)  Any contribution by an individual which exceeds one
    27  hundred dollars ($100) in the aggregate shall be deemed only a
    28  one hundred dollar ($100) qualifying contribution for the
    29  purposes of this section and for the matching payment provisions
    30  of section 1608-A.
    19990H1620B1975                 - 46 -

     1     (c)  Each candidate who elects to apply for funding under
     2  this article shall provide evidence that the candidate has
     3  raised the qualifying contributions required by this section
     4  which evidence shall be verified and certified as correct by the
     5  auditors of the State board.
     6     (d)  A candidate who has accepted public funding under this
     7  act may apply to the State Board of Elections for a waiver of
     8  the contribution limits set forth in section 1627.1 and/or the
     9  spending limits contained in section 1612-A if one or more of
    10  the following conditions exist:
    11     (1)  there are insufficient funds in the Fair Campaign Fund
    12  to provide funding to the candidate at the level specified in
    13  section 1609-A(b) and/or;
    14     (2)  the amount of independent expenditures for
    15  communications advocating the defeat of the candidate or
    16  election of his opponent require the candidate applying for the
    17  waiver to spend above the limits specified in section 1612-A in
    18  order to answer the communications paid for by the independent
    19  expenditure(s). The State board of elections shall issue
    20  regulations setting guidelines for granting or denying waivers
    21  submitted under this section.
    22     Section 1608-A.  Funding Formula.--(a)  Every candidate who
    23  qualifies for funding for an election pursuant to section 1607-A
    24  shall receive matching payments from the fund in the amount of
    25  two dollars ($2) for each dollar of qualifying contribution as
    26  defined in section 1607-A(b)(3).
    27     (b)  The two dollars ($2) for each dollar of qualifying
    28  contributions provided by this section shall be provided only
    29  for qualifying contributions raised which exceed the threshold
    30  amounts specified in section 1607-A(b) and not to those
    19990H1620B1975                 - 47 -

     1  qualifying contributions which are attributable to meeting the
     2  threshold amounts necessary to qualify for funding under this
     3  article.
     4     (c)  (1)  Only those qualifying contributions made during the
     5  period between a declaration of candidacy and the primary
     6  election shall be eligible for matching payments from the fund
     7  for the primary election.
     8     (2)  Only those qualifying contributions made during the
     9  period between the primary election and the general election
    10  shall be eligible for matching payments from the fund for the
    11  general election.
    12     (d)  Matching funds shall not be provided for any qualifying
    13  contributions unless the reporting requirements of section
    14  1626(b) are satisfied.
    15     Section 1609-A.  Limitations on Funding.--(a)  Every
    16  candidate who qualifies for and receives funding pursuant to the
    17  formula established in section 1608-A shall be entitled to
    18  receive no more than the maximum amount specified in subsection
    19  (b) for the office the candidate is seeking.
    20     (b)  (1)  The maximum amount of funding available for each
    21  candidate under this article shall be as follows:
    22             Office              Maximum Pennsylvania Fair
    23                                      Campaign Funding
    24     (i)  Governor/Lieutenant                    
    25             Governor                   $3,600,000
    26     (ii)  Attorney General                500,000
    27     (iii)  Auditor General, State
    28             Treasurer                     500,000
    29     (iv)  Lieutenant Governor             500,000 (primary only)
    30     (v)  Supreme Court Justices           350,000
    19990H1620B1975                 - 48 -

     1     (vi)  Superior Court Judges           350,000
     2     (vii)  Commonwealth Court Judges      350,000
     3     (viii)  Senator                       80,000
     4     (ix)  Representative                  25,000
     5     (2)  The maximum amount of funding available for the primary
     6  election for each candidate under this article shall be one-half
     7  the appropriate figure in clause (1).
     8     (c)  Notwithstanding any other provisions of this article no
     9  funding shall be provided to the following:
    10     (1)  Candidates in the general or municipal election who have
    11  received the nomination of both major political parties and have
    12  no opposition.
    13     (2)  Candidates in the primary election who are unopposed for
    14  the nomination.
    15     Section 1610-A.  Time of Payments.--(a)  Beginning ninety
    16  (90) days prior to the relevant election, the State board of
    17  elections shall make payments authorized by this article at
    18  least every two (2) weeks. However, except for the final
    19  payment, no payment shall be due or paid if the payment does not
    20  equal at least five thousand dollars ($5,000) in amount.
    21     (b)  If in the State board's opinion insufficient funds exist
    22  in the fund to provide the anticipated full funding to eligible
    23  candidates in a given election, the State board of elections
    24  shall distribute the available funds to qualified candidates on
    25  a pro-rata basis. In determining whether sufficient funds are
    26  available, the State board of elections shall not take into
    27  consideration the needs of any subsequent elections but shall
    28  base the decision solely on the immediate election at hand.
    29     Section 1611-A.  Use of Funds by Candidates.--(a)  Funds
    30  distributed to candidates pursuant to this article may be used
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     1  only for the election for which they are distributed and only
     2  for the purposes set forth in section 1621(d) except that no
     3  fund moneys may be used:
     4     (1)  To transfer to other candidates or to committees of
     5  other candidates or to political committees.
     6     (2)  To pay for expenditures incurred after the date of the
     7  general election.
     8     (b)  Funds distributed to a candidate pursuant to this
     9  article shall be placed in a single bank account. Expenditures
    10  from this account shall be made only for campaign expenses
    11  listed in subsection (a).
    12     Section 1612-A.  Expenditures.--(a)  Expenditures made by a
    13  candidate and his authorized committees, for all purposes and
    14  from all sources, including, but not limited to, amounts of
    15  funds distributed under this article, proceeds of loans, gifts,
    16  contributions from any source or personal funds, subsequent to
    17  the date of the primary election, but prior to the date of the
    18  general election, may not exceed the amounts specified below:
    19             Office                Total Expenditure Limits
    20     (1)  Governor/Lieutenant                    
    21             Governor                   $7,000,000
    22     (2)  Lieutenant Governor            1,000,000
    23                                     (for primary only)
    24     (3)  Attorney General               1,000,000
    25     (4)  State Treasurer                1,000,000
    26     (5)  Auditor General                1,000,000
    27     (6)  Justices and Judges
    28             of the Supreme Court,
    29             Superior Court and
    30             Commonwealth Court            700,000
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     1     (7)  Senator                          160,000
     2     (8)  Representative                    50,000
     3     (b)  Expenditures made by a candidate and his authorized
     4  committees, subsequent to January 1 but prior to the date of the
     5  primary election, may not exceed one-half of the amount
     6  specified in subsection (a).
     7     (c)  Notwithstanding any other provision of this article, a
     8  candidate who accepts public funding pursuant to the formula
     9  established in section 1608-A, but whose major political party
    10  opponent in a general or municipal election elects not to apply
    11  for the public funding, shall not be bound by the expenditure
    12  limits specified in this section. A candidate who accepts public
    13  funding shall be eligible to qualify for those fair campaign
    14  funds which would have otherwise been available to the opponent.
    15     (d)  Notwithstanding any other provision of this article, a
    16  candidate who accepts public funding pursuant to the formula
    17  established in section 1608-A, but whose major political party
    18  opponents in a primary election elect to not apply for the
    19  public funding, shall not be bound by the expenditure limits
    20  specified in this section. If there is more than one candidate
    21  in a major political party in a primary election, the fair
    22  campaign funds which would have otherwise been available to each
    23  opponent who has elected to not apply for the public funding
    24  shall be divided equally among the candidates who accept public
    25  financing.
    26     Section 1613-A.  Annual Report.--The State board shall report
    27  annually to the Governor and the General Assembly on the
    28  operations of funding as provided by this article. This report
    29  shall include, but not be limited to, the revenues and
    30  expenditures in the fund, the amounts distributed to candidates,
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     1  the results of any audits performed on candidates in compliance
     2  with this article and any prosecutions brought for violations of
     3  this article.
     4     Section 1614-A.  Return of Excess Funds.--(a)  All unexpended
     5  campaign funds in a candidate's and his authorized committees'
     6  possession sixty (60) days after a primary election shall be
     7  returned to the secretary for deposit in the Pennsylvania Fair
     8  Campaign Fund, up to the amount of the funds which were
     9  distributed to the candidate under this article for the primary
    10  election.
    11     (b)  All unexpended campaign funds in a candidate's and his
    12  authorized committee's possession sixty (60) days after a
    13  general or municipal election shall be returned to the State
    14  board for deposit in the Pennsylvania Fair Campaign Fund, up to
    15  the amount of the funds which were distributed to the candidate
    16  under this article for the general or municipal election.
    17     Section 1615-A.  Penalties.--(a)  A person who violates the
    18  provisions of this article and who, as a result, obtains funds
    19  under this article to which he is not entitled commits a
    20  misdemeanor of the first degree and shall, upon conviction, be
    21  subject to a fine not to exceed the greater of ten thousand
    22  dollars ($10,000), or three times the amount of funds wrongfully
    23  obtained or to imprisonment for up to five years, or both.
    24     (b)  A person who violates section 1611-A or 1612-A commits a
    25  misdemeanor of the first degree and shall, upon conviction, be
    26  subject to a fine not to exceed the greater of ten thousand
    27  dollars ($10,000), or three times the amount of funds that were
    28  wrongfully used or expended or to imprisonment for up to five
    29  years, or both.
    30     (c)  Except as provided in subsections (a) and (b), a person
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     1  who violates any provision of this article commits a misdemeanor
     2  of the third degree and shall, upon conviction, be subject to a
     3  fine of not more than one thousand dollars ($1,000), or to
     4  imprisonment for up to one year, or both.
     5     Section 18.  Article XVI-A shall be applicable to returns of
     6  taxpayers of calendar years commencing January 1, 1999, and
     7  thereafter. Funding from the Pennsylvania Fair Campaign Fund
     8  shall be provided to candidates for Statewide office beginning
     9  with the general election of 2000 and in each municipal and
    10  general election thereafter.
    11     Section 19.  The sum of $3,250,000 is hereby appropriated to
    12  the Pennsylvania State board of elections for Fiscal Year 1998-
    13  1999 and for every fiscal year thereafter subject to the
    14  provisions of this section. Such appropriation cannot be reduced
    15  but may be increased. The dollar figures contained in sections
    16  1627.1, 1607-A(b), 1609-A and 1612-A and the appropriation
    17  amount contained in this section shall be adjusted annually at a
    18  rate equal to the average percentage change in the All-Urban
    19  Consumer Price Index for the Pittsburgh, Philadelphia and
    20  Scranton standard metropolitan statistical areas as published by
    21  the Bureau of Labor Statistics of the United States Department
    22  of Labor, or any successor agency, occurring in the prior
    23  calendar year. The base year shall be 1997. The average shall be
    24  calculated and certified annually by the Pennsylvania State
    25  Board of Elections by adding the percentage increase in each of
    26  the three areas and dividing by three. The calculation and
    27  resulting new figures shall be published for the dollar figures
    28  contained in sections 1627.1, 1607-A, 1609-A and 1612-A in March
    29  in the Pennsylvania Bulletin.
    30     Section 20.  All allocations, appropriations, equipment,
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     1  files, records and other material which are used, employed or
     2  expended by the Department of State, in connection with the
     3  conduct of elections, are hereby transferred to the Pennsylvania
     4  State board of elections. Any personnel employed by the
     5  Department of State in connection with its powers, duties or
     6  functions relating to elections may be transferred to the
     7  Pennsylvania State Board of Elections.
     8     Section 21.  Any act or any part of an act which imposes
     9  duties on the Secretary of the Commonwealth or the Department of
    10  State insofar as it relates to the conduct of any election is
    11  repealed insofar as such act is inconsistent with the provisions
    12  of this act.
    13     Section 22.  The provisions of this act are severable. If any
    14  provision of this act or its application to any person or
    15  circumstance is held invalid, the invalidity shall not affect
    16  other provisions or applications of this act which can be given
    17  effect without the invalid provision or application.
    18     Section 23.  This act shall take effect as follows:
    19         (1)  The addition of section 201 of the act shall take
    20     effect immediately.
    21         (2)  The remainder of this act shall take effect in 120
    22     days.






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