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