PRINTER'S NO. 3351
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2433
Session of
2024
INTRODUCED BY WEBSTER, PROBST, KHAN, GUENST, HILL-EVANS, GIRAL,
SCHLOSSBERG, PIELLI, SANCHEZ, CIRESI, SHUSTERMAN, OTTEN AND
DELLOSO, JUNE 20, 2024
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 20, 2024
AN ACT
Amending the act of June 3, 1937 (P.L.1333, No.320), entitled
"An act concerning elections, including general, municipal,
special and primary elections, the nomination of candidates,
primary and election expenses and election contests; creating
and defining membership of county boards of elections;
imposing duties upon the Secretary of the Commonwealth,
courts, county boards of elections, county commissioners;
imposing penalties for violation of the act, and codifying,
revising and consolidating the laws relating thereto; and
repealing certain acts and parts of acts relating to
elections," providing for corporate political contributions;
and imposing penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of June 3, 1937 (P.L.1333, No.320), known
as the Pennsylvania Election Code, is amended by adding an
article to read:
ARTICLE XVI-B
CORPORATE POLITICAL CONTRIBUTIONS
Section 1601-B. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
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context clearly indicates otherwise:
"Association." A group of two or more persons, who are not
all members of an immediate family, acting in concert.
"Chief executive officer." The highest-ranking officer or
decision-making individual with authority over a corporation's
affairs.
"Contribution." An expenditure to promote or defeat the
election or nomination of a candidate to a political office that
is made with the authorization or expressed or implied consent
of, in cooperation or in concert with or at the request or
suggestion of a candidate or committee established to support or
oppose a candidate. The term does not include an independent
expenditure.
"Corporation." The following:
(1) a domestic or foreign corporation for profit; or
(2) a domestic or foreign limited liability company
formed under 15 Pa.C.S. Ch. 88 (relating to limited liability
companies), or under similar laws of another state.
"Expenditure." As defined in section 1621(d).
"Foreign-influenced corporation." The following:
(1) A corporation for which at least one of the
following conditions is met:
(i) a single foreign investor holds, owns, controls
or otherwise has direct or indirect beneficial ownership
of 1% or more of the total equity, outstanding voting
shares, membership units or other applicable ownership
interests of the corporation;
(ii) two or more foreign investors in aggregate
hold, own, control or otherwise have direct or indirect
beneficial ownership of 5% or more of the total equity,
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outstanding voting shares, membership units or other
applicable ownership interests of the corporation; or
(iii) a foreign investor participates directly or
indirectly in the corporation's decision-making process
with respect to the corporation's political activities in
the United States.
(2) The calculation of a person's ownership interest for
purposes of paragraph (1)(i) and (ii) shall exclude any
portion of the person's direct or indirect beneficial
ownership of equity, outstanding voting shares, membership
units or otherwise applicable ownership interests of a
corporation that are held or owned in a mutual fund based in
the United States.
"Foreign investor." A person that:
(1) holds, owns, controls or otherwise has direct or
indirect beneficial ownership of equity, outstanding voting
shares, membership units or otherwise applicable ownership
interests of a corporation; and
(2) is any of the following:
(i) a government of a foreign country;
(ii) a political party organized in a foreign
country;
(iii) a partnership, association, corporation,
organization or other combination of persons organized
under the laws of or having its principal place of
business in a foreign country;
(iv) an individual outside of the United States who
is not a citizen or national of the United States and who
is not lawfully admitted for permanent residence in the
United States; or
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(v) a corporation in which a foreign investor holds,
owns, controls or otherwise has directly or indirectly
acquired beneficial ownership of equity or voting shares
in an amount that is equal to or greater than 50% of the
total equity or outstanding voting shares.
"General treasury money." Money that an association
accumulates through membership dues and fees, donations to the
association for its general purposes and income from the
operation of a business. The term does not include money
collected to influence the nomination or election of candidates
or to promote or defeat a ballot question.
"Independent expenditure." As defined in section 1621(e).
Section 1602-B. Foreign-influenced corporations.
(a) Prohibition.--Notwithstanding section 1633, a foreign-
influenced corporation may not make:
(1) an expenditure, or offer or agree to make an
expenditure, to promote or defeat the candidacy of an
individual for nomination, election or appointment to a
public office;
(2) contributions or expenditures to promote or defeat a
ballot question or to support or oppose a question for
placement on the ballot;
(3) a contribution to a candidate for nomination,
election or appointment to a public office or to a
candidate's political committee; or
(4) a contribution to a political party, political body,
State committee or political committee.
(b) Other persons.--A foreign-influenced corporation may not
make a contribution or donation to any other person with the
express or implied condition that the contribution or donation,
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or any part of it, be used for any of the purposes prohibited by
this section.
(c) Associations.--This section does not prohibit donations
to an association for its general purposes, such that the funds
qualify as general treasury money, nor does it impose any
additional limitations on the use of the funds.
Section 1603-B. Certification of compliance.
A corporation that makes a contribution or expenditure shall
submit a certification to the Department of State that the
corporation was not a foreign-influenced corporation as of the
date the contribution or expenditure was made. The certification
shall be submitted within seven business days after the
contribution or expenditure is made and shall be signed by the
corporation's chief executive officer after reasonable inquiry
under penalty of perjury. If the activity requiring
certification was a contribution to a political committee or
political action committee that makes independent expenditures,
the corporation shall additionally provide a copy of the
certification to that committee. For purposes of the
certification, the corporation shall use due diligence to
ascertain beneficial ownership if it is registered on a national
securities exchange, as provided under 17 CFR 240.13d-3
(relating to determination of beneficial owner) and 240.13d-5
(relating to acquisition of beneficial ownership). The
corporation shall provide a copy of the statement of
certification to any candidate or committee to which it
contributes and, upon request of the recipient, to any other
person to which it contributes.
Section 1604-B. News media.
This article does not prohibit publication or broadcasting of
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news items or editorial comments by the news media.
Section 1605-B. Penalty for individuals.
(a) Civil penalty.--An officer, manager, stockholder,
member, agent, employee, attorney or other representative of a
corporation acting on behalf of the corporation who violates
this article shall be subject to a civil penalty of up to 10
times the amount of the violation, but in no case more than
$10,000, imposed by the Department of State.
(b) Fine and imprisonment.--An officer, manager,
stockholder, member, agent, employee, attorney or other
representative of a corporation acting on behalf of the
corporation who is convicted of knowingly violating this article
is subject to a fine of not more than $20,000, or imprisonment
for a term of not more than five years, or both.
Section 1606-B. Penalty for corporations.
(a) Civil penalty.--A corporation that violates this article
is subject to a civil penalty of up to 10 times the amount of
the violation, but in no case more than $10,000, imposed by the
court or Department of State.
(b) Fines and other penalties.--A corporation convicted of
knowingly violating this article is subject to a fine of not
more than $40,000. A convicted domestic corporation may be
dissolved as well as fined. If a foreign or nonresident
corporation is convicted, in addition to the fine, the
corporation's right to do business in this Commonwealth may be
declared forfeited.
Section 1607-B. Knowing violations.
An individual or a corporation knowingly violates this
article if, at the time of a transaction, the individual or the
corporation knew that:
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(1) the transaction causing the violation constituted a
contribution; and
(2) the contributor was a foreign-influenced corporation
subject to the prohibitions of section 1602-B.
Section 1608-B. Permitted activity.
It is not a violation of this article for:
(1) A political party or political body to form a
nonprofit corporation for the sole purpose of holding real
property to be used exclusively as the party's headquarters.
(2) A corporation to contribute to or conduct public
media projects to encourage individuals to register to vote
or vote if the projects are not controlled by or operated for
the advantage of a candidate, political party, political body
or political committee.
(3) A corporation to provide meeting facilities to a
political committee, political party, political body or
candidate on a nondiscriminatory and nonpreferential basis.
(4) A corporation selling products or services to the
public to post on its public premises messages that promote
participation, voter registration or elections if the
messages are not controlled by or operated for the advantage
of a candidate, political party, political body or political
committee.
Section 1609-B. Aiding violation.
(a) Individuals.--An individual who aids, abets or advises a
violation of this article commits a misdemeanor and, upon
conviction, shall be sentenced to pay a fine of not less than
$1,000 nor more than $10,000.
(b) Director, officers, agents and employees.--A director,
officer, agent or employee of a corporation or unincorporated
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association who aids, abets or advises a violation of this
article commits a misdemeanor and, upon conviction, shall be
sentenced to pay a fine not exceeding $10,000, or to undergo a
term of imprisonment of not more than two years, or both, in the
discretion of the court.
Section 1610-B. Prosecutions, jurisdiction and venue.
(a) Jurisdiction.--The Attorney General shall have
prosecutorial jurisdiction over all violations committed under
this article.
(b) Concurrent jurisdiction.--The district attorney of any
county in which a violation occurs has concurrent powers and
responsibilities with the Attorney General over violations.
(c) Venue.--Violations of this article may be prosecuted in
the county where the payment or contribution was made, where
services were rendered or where money was paid or distributed.
Section 2. This act shall take effect in 60 days.
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