PRINTER'S NO. 2845
No. 2133 Session of 2001
INTRODUCED BY LEVDANSKY, BROWNE, DeWEESE, HARHART, FREEMAN, VEON, STEELMAN, GORDNER, MANDERINO, GRUCELA, HANNA, JOSEPHS, WOJNAROSKI AND YUDICHAK, NOVEMBER 13, 2001
REFERRED TO COMMITTEE ON STATE GOVERNMENT, NOVEMBER 13, 2001
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; establishing the 12 Pennsylvania Fair Campaign Fund and its administration; 13 providing for funding limitations and use and for transfers; 14 and making an appropriation. 15 The General Assembly of the Commonwealth of Pennsylvania 16 hereby enacts as follows: 17 Section 1. Section 102 of the act of June 3, 1937 (P.L.1333, 18 No.320), known as the Pennsylvania Election Code, is amended by 19 adding a clause to read: 20 Section 102. Definitions.--The following words, when used in 21 this act, shall have the following meanings, unless otherwise 22 clearly apparent from the context: 23 * * *
1 (z.5) The word "department" shall mean the Department of 2 State of the Commonwealth. 3 Section 2. The act is amended by adding an article to read: 4 ARTICLE XVI-A 5 Pennsylvania Fair Campaign Fund 6 Section 1601-A. Definitions.--As used in this article, the 7 following words have the following meanings: 8 "Declaration of candidacy" shall mean the point in a person's 9 campaign for political office at which that person becomes in 10 compliance with section 1622. 11 "Fund" shall mean the Pennsylvania Fair Campaign Fund 12 established under section 1604-A. 13 "Major political party" shall mean a political party whose 14 candidate for Governor received either the highest or second 15 highest number of votes in the preceding gubernatorial election. 16 Section 1602-A. Application of Article.--(a) The provisions 17 of this article shall be applicable to candidates for the 18 following offices who elect to apply for campaign funding under 19 this article: 20 (1) Governor. 21 (2) Lieutenant Governor. 22 (3) Attorney General. 23 (4) Auditor General. 24 (5) State Treasurer. 25 (6) Supreme Court Justice. 26 (7) Superior Court Judge. 27 (8) Commonwealth Court Judge. 28 (9) Senator in the General Assembly. 29 (10) Representative in the General Assembly. 30 (b) For the purposes of this article insofar as it relates 20010H2133B2845 - 2 -
1 to funding of nominated candidates in the general election, a 2 political party's or political body's nominated candidates for 3 Governor and Lieutenant Governor shall be considered as one 4 candidacy and the provisions specifically applicable to the 5 Governor shall be applicable to the combined candidacy. 6 Section 1603-A. Administration.--The provisions of this 7 article shall be administered by the department. 8 Section 1604-A. Pennsylvania Fair Campaign Fund 9 Established.--There is hereby established a special restricted 10 receipts fund in the State Treasury to be known as the 11 Pennsylvania Fair Campaign Fund. Payments shall be made into 12 this fund pursuant to section 1605-A and disbursements shall be 13 made from the fund only upon the warrant of the department and a 14 warrant of the State Treasurer. As much of the moneys in the 15 fund as are necessary to make payments to candidates as provided 16 in this article are appropriated from the Pennsylvania Fair 17 Campaign Fund to the department on a continuing basis for the 18 purpose of such payments. 19 Section 1605-A. Funding the Pennsylvania Fair Campaign.--(a) 20 Beginning with tax years commencing January 1, 2001, and 21 thereafter, each individual subject to the tax imposed by 22 Article III of the act of March 4, 1971 (P.L.6, No.2), known as 23 the "Tax Reform Code of 1971," whose tax liability for the year 24 is two dollars and fifty cents ($2.50) or more may designate two 25 dollars and fifty cents ($2.50) of his personal income taxes to 26 be paid into the Pennsylvania Fair Campaign Fund. In the case of 27 married taxpayers filing a joint return, each spouse may 28 designate two dollars and fifty cents ($2.50) to be paid into 29 the Pennsylvania Fair Campaign Fund if their tax liability is 30 five dollars ($5) or more. All of these designated tax revenues 20010H2133B2845 - 3 -
1 shall be paid into the fund. The check-off and instructions 2 shall be prominently displayed on the first page of the return 3 form. The instructions shall readily indicate that these 4 designations neither increase nor decrease an individual's tax 5 liability. 6 (b) The General Assembly shall each fiscal year appropriate 7 money to the Fair Campaign Fund. The sum appropriated to the 8 Fund for an election shall be equal to the maximum amount of 9 funding available specified in section 1609-A (a) for each 10 office appearing on the ballot multiplied by the number of 11 candidates eligible to receive public funding pursuant to this 12 act who appeared on the ballot at the last preceding election at 13 which such office was voted for minus the tax proceeds collected 14 in accordance with subsection (a). 15 Section 1606-A. Certification of Moneys in Fund.--By June 30 16 of each year, the State Treasurer shall certify to the 17 department the current balance available in the fund. 18 Section 1607-A. Qualification for Funding.--(a) Any 19 candidate for offices described in section 1602-A may apply for 20 funding under this article if the candidate meets the 21 contributory thresholds established in subsection (b) and 22 otherwise conforms to the requirements of this article. No 23 candidate shall be obligated to apply for funding under this 24 article and if any candidate elects not to apply, the provisions 25 of this article pertaining to limits on expenditures or the use 26 of his personal funds shall be inapplicable to the person and 27 his candidacy. Any candidate electing to receive funding under 28 this article shall declare his intention to do so and specify 29 the office for which he is a candidate. No candidate may elect 30 to receive funding under this article for a general or municipal 20010H2133B2845 - 4 -
1 election unless the candidate elected to receive funding under 2 this article for the primary election. Any committee authorized 3 to receive contributions or make expenditures for the candidate 4 who has so declared shall abide by the provisions of section 5 1612-A. Any candidate who for any reason has his name withdrawn 6 from the ballot, after receipt of funds under this article, 7 shall return all moneys received to the fund as well as offering 8 back qualifying contributions for that office. 9 (b) (1) In order to qualify for funding in a general 10 election, a candidate must receive subsequent to the date of the 11 primary election but prior to the date of the general election 12 qualifying contributions of the following amounts: 13 Office Qualifying Contributions Required 14 (i) Governor/Lieutenant 15 Governor $200,000 16 (ii) Lieutenant Governor 50,000 (for primary only) 17 (iii) State Treasurer 50,000 18 (iv) Auditor General 50,000 19 (v) Attorney General 50,000 20 (vi) Supreme Court Justices 25,000 21 (vii) Superior Court Judges 25,000 22 (viii) Commonwealth Court Judges 25,000 23 (ix) Senator 10,000 24 (x) Representative 2,500 25 (2) In order to qualify for funding in a primary election, a 26 candidate must receive prior to the date of the primary 27 election, but subsequent to the immediately preceding general or 28 municipal election, one-half of the amount specified in clause 29 (1) for the appropriate office. 30 (3) (i) The term "qualifying contribution" shall include 20010H2133B2845 - 5 -
1 any contribution, as defined in section 1621(b), which has all 2 of the following characteristics: 3 (A) Made by an individual resident of Pennsylvania. 4 (B) Made by a written instrument which indicates the 5 contributor's full name and mailing residence and is not 6 intended to be returned to the contributor or transferred to 7 another political committee or candidate. 8 (ii) If a contributor receives goods or services of value in 9 return for his contribution, the qualifying contribution shall 10 be calculated as the original contribution, minus the fair 11 market value of the goods or services received. 12 (iii) Any contribution by an individual which exceeds one 13 hundred dollars ($100) in the aggregate shall be deemed only a 14 one hundred dollar ($100) qualifying contribution for the 15 purposes of this section and for the matching payment provisions 16 of section 1608-A. 17 (c) Each candidate who elects to apply for funding under 18 this article shall provide evidence that the candidate has 19 raised the qualifying contributions required by this section 20 which evidence shall be verified and certified as correct by the 21 auditors of the department. 22 (d) A candidate who has accepted public funding under this 23 act may apply to the department for a waiver of the contribution 24 limits set forth in section 1627.1 and/or the spending limits 25 contained in section 1612-A if one or more of the following 26 conditions exist: 27 (1) there are insufficient funds in the Fair Campaign Fund 28 to provide funding to the candidate at the level specified in 29 section 1609-A(b) and/or; 30 (2) the amount of independent expenditures for 20010H2133B2845 - 6 -
1 communications advocating the defeat of the candidate or 2 election of his opponent require the candidate applying for the 3 waiver to spend above the limits specified in section 1612-A in 4 order to answer the communications paid for by the independent 5 expenditure(s). The department shall issue regulations setting 6 guidelines for granting or denying waivers submitted under this 7 section. 8 Section 1608-A. Funding Formula.--(a) Every candidate who 9 qualifies for funding for an election pursuant to section 1607-A 10 shall receive matching payments from the fund in the amount of 11 two dollars ($2) for each dollar of qualifying contribution as 12 defined in section 1607-A(b)(3). 13 (b) The two dollars ($2) for each dollar of qualifying 14 contributions provided by this section shall be provided only 15 for qualifying contributions raised which exceed the threshold 16 amounts specified in section 1607-A(b) and not to those 17 qualifying contributions which are attributable to meeting the 18 threshold amounts necessary to qualify for funding under this 19 article. 20 (c) (1) Only those qualifying contributions made during the 21 period between a declaration of candidacy and the primary 22 election shall be eligible for matching payments from the fund 23 for the primary election. 24 (2) Only those qualifying contributions made during the 25 period between the primary election and the general election 26 shall be eligible for matching payments from the fund for the 27 general election. 28 (d) Matching funds shall not be provided for any qualifying 29 contributions unless the reporting requirements of section 30 1626(b) are satisfied. 20010H2133B2845 - 7 -
1 Section 1609-A. Limitations on Funding.--(a) Every 2 candidate who qualifies for and receives funding pursuant to the 3 formula established in section 1608-A shall be entitled to 4 receive no more than the maximum amount specified in subsection 5 (b) for the office the candidate is seeking. 6 (b) (1) The maximum amount of funding available for each 7 candidate under this article shall be as follows: 8 Office Maximum Pennsylvania Fair 9 Campaign Funding 10 (i) Governor/Lieutenant 11 Governor $3,600,000 12 (ii) Attorney General 500,000 13 (iii) Auditor General, State 14 Treasurer 500,000 15 (iv) Lieutenant Governor 500,000 (primary only) 16 (v) Supreme Court Justices 350,000 17 (vi) Superior Court Judges 350,000 18 (vii) Commonwealth Court Judges 350,000 19 (viii) Senator 80,000 20 (ix) Representative 25,000 21 (2) The maximum amount of funding available for the primary 22 election for each candidate under this article shall be one-half 23 the appropriate figure in clause (1). 24 (c) Notwithstanding any other provisions of this article no 25 funding shall be provided to the following: 26 (1) Candidates in the general or municipal election who have 27 received the nomination of both major political parties and have 28 no opposition. 29 (2) Candidates in the primary election who are unopposed for 30 the nomination. 20010H2133B2845 - 8 -
1 Section 1610-A. Time of Payments.--(a) Beginning ninety 2 (90) days prior to the relevant election, the department shall 3 make payments authorized by this article at least every two (2) 4 weeks. However, except for the final payment, no payment shall 5 be due or paid if the payment does not equal at least five 6 thousand dollars ($5,000) in amount. 7 (b) If in the department's opinion insufficient funds exist 8 in the fund to provide the anticipated full funding to eligible 9 candidates in a given election, the department shall distribute 10 the available funds to qualified candidates on a pro-rata basis. 11 In determining whether sufficient funds are available, the 12 department shall not take into consideration the needs of any 13 subsequent elections but shall base the decision solely on the 14 immediate election at hand. 15 Section 1611-A. Use of Funds by Candidates.--(a) Funds 16 distributed to candidates pursuant to this article may be used 17 only for the election for which they are distributed and only 18 for the purposes set forth in section 1621(d) except that no 19 fund moneys may be used: 20 (1) To transfer to other candidates or to committees of 21 other candidates or to political committees. 22 (2) To pay for expenditures incurred after the date of the 23 general election. 24 (b) Funds distributed to a candidate pursuant to this 25 article shall be placed in a single bank account. Expenditures 26 from this account shall be made only for campaign expenses 27 listed in subsection (a). 28 Section 1612-A. Expenditures.--(a) Expenditures made by a 29 candidate and his authorized committees, for all purposes and 30 from all sources, including, but not limited to, amounts of 20010H2133B2845 - 9 -
1 funds distributed under this article, proceeds of loans, gifts, 2 contributions from any source or personal funds, subsequent to 3 the date of the primary election, but prior to the date of the 4 general election, may not exceed the amounts specified below: 5 Office Total Expenditure Limits 6 (1) Governor/Lieutenant 7 Governor $7,000,000 8 (2) Lieutenant Governor 1,000,000 9 (for primary only) 10 (3) Attorney General 1,000,000 11 (4) State Treasurer 1,000,000 12 (5) Auditor General 1,000,000 13 (6) Justices and Judges 14 of the Supreme Court, 15 Superior Court and 16 Commonwealth Court 700,000 17 (7) Senator 160,000 18 (8) Representative 50,000 19 (b) Expenditures made by a candidate and his authorized 20 committees, subsequent to January 1 but prior to the date of the 21 primary election, may not exceed one-half of the amount 22 specified in subsection (a). 23 (c) Notwithstanding any other provision of this article, a 24 candidate who accepts public funding pursuant to the formula 25 established in section 1608-A, but whose major political party 26 opponent in a general or municipal election elects not to apply 27 for the public funding, shall not be bound by the expenditure 28 limits specified in this section. A candidate who accepts public 29 funding shall be eligible to qualify for those fair campaign 30 funds which would have otherwise been available to the opponent. 20010H2133B2845 - 10 -
1 (d) Notwithstanding any other provision of this article, a 2 candidate who accepts public funding pursuant to the formula 3 established in section 1608-A, but whose major political party 4 opponents in a primary election elect to not apply for the 5 public funding, shall not be bound by the expenditure limits 6 specified in this section. If there is more than one candidate 7 in a major political party in a primary election, the fair 8 campaign funds which would have otherwise been available to each 9 opponent who has elected to not apply for the public funding 10 shall be divided equally among the candidates who accept public 11 financing. 12 Section 1613-A. Annual Report.--The State board shall report 13 annually to the Governor and the General Assembly on the 14 operations of funding as provided by this article. This report 15 shall include, but not be limited to, the revenues and 16 expenditures in the fund, the amounts distributed to candidates, 17 the results of any audits performed on candidates in compliance 18 with this article and any prosecutions brought for violations of 19 this article. 20 Section 1614-A. Return of Excess Funds.--(a) All unexpended 21 campaign funds in a candidate's and his authorized committees' 22 possession sixty (60) days after a primary election shall be 23 returned to the department for deposit in the Pennsylvania Fair 24 Campaign Fund, up to the amount of the funds which were 25 distributed to the candidate under this article for the primary 26 election. 27 (b) All unexpended campaign funds in a candidate's and his 28 authorized committee's possession sixty (60) days after a 29 general or municipal election shall be returned to the State 30 board for deposit in the Pennsylvania Fair Campaign Fund, up to 20010H2133B2845 - 11 -
1 the amount of the funds which were distributed to the candidate 2 under this article for the general or municipal election. 3 Section 1615-A. Penalties.--(a) A person who violates the 4 provisions of this article and who, as a result, obtains funds 5 under this article to which he is not entitled commits a 6 misdemeanor of the first degree and shall, upon conviction, be 7 subject to a fine not to exceed the greater of ten thousand 8 dollars ($10,000), or three times the amount of funds wrongfully 9 obtained or to imprisonment for up to five years, or both. 10 (b) A person who violates section 1611-A or 1612-A commits a 11 misdemeanor of the first degree and shall, upon conviction, be 12 subject to a fine not to exceed the greater of ten thousand 13 dollars ($10,000), or three times the amount of funds that were 14 wrongfully used or expended or to imprisonment for up to five 15 years, or both. 16 (c) Except as provided in subsections (a) and (b), a person 17 who violates any provision of this article commits a misdemeanor 18 of the third degree and shall, upon conviction, be subject to a 19 fine of not more than one thousand dollars ($1,000), or to 20 imprisonment for up to one year, or both. 21 Section 3. Article XVI-A shall be applicable to returns of 22 taxpayers of calendar years filed January 1, 2002, and 23 thereafter. Funding from the Pennsylvania Fair Campaign Fund 24 shall be provided to candidates for Statewide office beginning 25 with the general election of 2002 and in each municipal and 26 general election thereafter. 27 Section 4. The dollar figures contained in sections 1607- 28 A(b), 1609-A and 1612-A shall be adjusted annually at a rate 29 equal to the average percentage change in the All-Urban Consumer 30 Price Index for the Pittsburgh, Philadelphia and Scranton 20010H2133B2845 - 12 -
1 standard metropolitan statistical areas as published by the 2 Bureau of Labor Statistics of the United States Department of 3 Labor, or any successor agency, occurring in the prior calendar 4 year. The base year shall be 2001. The average shall be 5 calculated and certified annually by the Pennsylvania State 6 Board of Elections by adding the percentage increase in each of 7 the three areas and dividing by three. The calculation and 8 resulting new figures shall be published for the dollar figures 9 contained in sections 1607-A, 1609-A and 1612-A in March in the 10 Pennsylvania Bulletin. 11 Section 5. The provisions of this act are severable. If any 12 provision of this act or its application to any person or 13 circumstance is held invalid, the invalidity shall not affect 14 other provisions or applications of this act which can be given 15 effect without the invalid provision or application. 16 Section 6. This act shall take effect in 120 days. H23L25MSP/20010H2133B2845 - 13 -