Senator Costa Introduces Comprehensive Campaign Finance Reform Legislation

Harrisburg, Pa. – January 19, 2021 – Again this session, Senate Democratic Leader Jay Costa is seeking cosponsors for comprehensive campaign finance reform legislation.

“Pennsylvania is one of the most poorly regulated states as it relates to campaign finance laws,” said Senator Costa. “Now more than ever, we need to do more to restore faith in government and that can come from increased transparency and less money infecting our processes. I am hopeful that this year, the legislation will garner bipartisan support.”

Senator Costa will introduce a bill similar to what he has proposed in previous sessions to address comprehensive campaign finance reform, but with several additions based on feedback from constituents and recent media reports.

The bill will address independent expenditures by incorporated entities. The Citizens United decision by the U.S. Supreme Court in 2010 has made independent expenditures a leading campaign finance issue in many states.  The so-called “uncoordinated” and “independent” political expenditures now permitted by incorporated entities under this decision should be treated in a similar manner as PAC expenditures for reporting purposes. Connecticut and Maryland both have recently enacted legislation regarding this issue. 
 
Senate Bill 11 will address corporate shareholder approval of political activity.  The bill will require approval by the majority of shareholders when corporations make political contributions that exceed $10,000.  Also included would be a provision requiring corporations to notify shareholders of any political/campaign activity.  

The bill amends the Election Code to limit the expenditures of a candidate, political committee, political action committee, political party committee or other person;.the proposed limits are as follows, and are within the middle of limits imposed by other states. 

Lastly, media reports have shown examples of the use of credit cards and gift cards by campaign committees.  This expenditure method is clearly used to obscure how political action committee money is being used from public view. In many cases, the expenses may be crossing the line into personal use, but because it is difficult or impossible to see what the expense are, there is no accountability. To that end, the new legislation will require credit card statements to be filed with campaign finance reports, ban the purchase of gift cards with PAC money, and define “personal purpose.”

“The people deserve to be fully informed about a candidate’s financial backers,” Costa said. “My bill would restore the people’s confidence that their elections are not bought and paid for by corporate entities, neither domestic nor foreign.”

View More information on the bill →

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Senator Costa to Introduce Legislation Reforming Campaign Finance, Improving Transparency

Harrisburg, Pa. − October 25, 2019 − Senate Democratic Leader Jay Costa, Jr. today circulated a memo to his colleagues in the Senate seeking cosponsors on legislation that would reform Pennsylvania’s campaign finance laws and ensure better transparency and accountability moving forward.

The legislation will be similar to bills he has introduced in every session since 2010, but with several additions. Previous iterations of the bill (introduced as SB 11) included:

  • Limiting the expenditures of a candidate, political committee, political action committee, political party committee or other person, for the purpose of influencing the outcome of an election
  • Requiring disclosure of the now-unlimited campaign contributions. While corporate political contributions to candidates remain illegal, these expenditures can now be made to influence the outcome of election, per Citizen’s United. The legislation will require that these expenditures be disclosed and made public to educate the public on the financial backers of candidates
  • Prohibition on the use of campaign funds for personal use
  • Ban campaign funds to be used in the purchase of gift cards

New additions to Senator Costa’s campaign finance plan include:

  • A requirement for full disclosure of itemized credit card expenses
  • Mandating that campaign committees provide access to expense receipts with an appeal available to the Department of State for assistance in determining whether the record should be accessible

Senator Costa also introduced legislation barring foreign contributions to campaigns as SB 1068 last session. This will be reintroduced with the components of SB 11.

A summary of the legislation can be found here and will be formally introduced again this session as Senate Bill 11.

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