HB 497 — An Act amending the act of June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania Election Code, providing for corporate political contributions; and imposing penalties.

PRINTER'S NO.   486

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 497
                                                 Session of
                                                   2025

     INTRODUCED BY WEBSTER, OTTEN, HILL-EVANS, PROBST, PIELLI, GIRAL,
        SANCHEZ, NEILSON, BOYD AND D. WILLIAMS, FEBRUARY 5, 2025

     REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 5, 2025


                                       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 corporate political contributions;
12      and imposing penalties.
13      The General Assembly of the Commonwealth of Pennsylvania
14   hereby enacts as follows:
15      Section 1.     The act of June 3, 1937 (P.L.1333, No.320), known
16   as the Pennsylvania Election Code, is amended by adding an
17   article to read:
18                               ARTICLE XVI-B
19                     CORPORATE POLITICAL CONTRIBUTIONS
20   Section 1601-B.    Definitions.
21      The following words and phrases when used in this article
22   shall have the meanings given to them in this section unless the
23   context clearly indicates otherwise:
 1      "Association."     A group of two or more persons, who are not
 2   all members of an immediate family, acting in concert.
 3      "Chief executive officer."     The highest-ranking officer or
 4   decision-making individual with authority over a corporation's
 5   affairs.
 6      "Contribution."     An expenditure to promote or defeat the
 7   election or nomination of a candidate to a political office that
 8   is made with the authorization or expressed or implied consent
 9   of, in cooperation or in concert with or at the request or
10   suggestion of a candidate or committee established to support or
11   oppose a candidate. The term does not include an independent
12   expenditure.
13      "Corporation."     The following:
14          (1)     a domestic or foreign corporation for profit; or
15          (2)     a domestic or foreign limited liability company
16      formed under 15 Pa.C.S. Ch. 88 (relating to limited liability
17      companies), or under similar laws of another state.
18      "Expenditure."     As defined in section 1621(d).
19      "Foreign-influenced corporation."     The following:
20          (1)     A corporation for which at least one of the
21      following conditions is met:
22                (i)    a single foreign investor holds, owns, controls
23          or otherwise has direct or indirect beneficial ownership
24          of 1% or more of the total equity, outstanding voting
25          shares, membership units or other applicable ownership
26          interests of the corporation;
27                (ii)   two or more foreign investors in aggregate
28          hold, own, control or otherwise have direct or indirect
29          beneficial ownership of 5% or more of the total equity,
30          outstanding voting shares, membership units or other

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 1        applicable ownership interests of the corporation; or
 2              (iii)    a foreign investor participates directly or
 3        indirectly in the corporation's decision-making process
 4        with respect to the corporation's political activities in
 5        the United States.
 6        (2)   The calculation of a person's ownership interest for
 7    purposes of paragraph (1)(i) and (ii) shall exclude any
 8    portion of the person's direct or indirect beneficial
 9    ownership of equity, outstanding voting shares, membership
10    units or otherwise applicable ownership interests of a
11    corporation that are held or owned in a mutual fund based in
12    the United States.
13    "Foreign investor."     A person that:
14        (1)   holds, owns, controls or otherwise has direct or
15    indirect beneficial ownership of equity, outstanding voting
16    shares, membership units or otherwise applicable ownership
17    interests of a corporation; and
18        (2)   is any of the following:
19              (i)    a government of a foreign country;
20              (ii)    a political party organized in a foreign
21        country;
22              (iii)    a partnership, association, corporation,
23        organization or other combination of persons organized
24        under the laws of or having its principal place of
25        business in a foreign country;
26              (iv)    an individual outside of the United States who
27        is not a citizen or national of the United States and who
28        is not lawfully admitted for permanent residence in the
29        United States; or
30              (v)    a corporation in which a foreign investor holds,

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 1            owns, controls or otherwise has directly or indirectly
 2            acquired beneficial ownership of equity or voting shares
 3            in an amount that is equal to or greater than 50% of the
 4            total equity or outstanding voting shares.
 5      "General treasury money."    Money that an association
 6   accumulates through membership dues and fees, donations to the
 7   association for its general purposes and income from the
 8   operation of a business. The term does not include money
 9   collected to influence the nomination or election of candidates
10   or to promote or defeat a ballot question.
11      "Independent expenditure."    As defined in section 1621(e).
12   Section 1602-B.    Foreign-influenced corporations.
13      (a)   Prohibition.--Notwithstanding section 1633, a foreign-
14   influenced corporation may not make:
15            (1)   an expenditure, or offer or agree to make an
16      expenditure, to promote or defeat the candidacy of an
17      individual for nomination, election or appointment to a
18      public office;
19            (2)   contributions or expenditures to promote or defeat a
20      ballot question or to support or oppose a question for
21      placement on the ballot;
22            (3)   a contribution to a candidate for nomination,
23      election or appointment to a public office or to a
24      candidate's political committee; or
25            (4)   a contribution to a political party, political body,
26      State committee or political committee.
27      (b)   Other persons.--A foreign-influenced corporation may not
28   make a contribution or donation to any other person with the
29   express or implied condition that the contribution or donation,
30   or any part of the contribution or donation, be used for any of

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 1   the purposes prohibited by this section.
 2      (c)   Associations.--This section does not prohibit donations
 3   to an association for its general purposes, such that the funds
 4   qualify as general treasury money, nor does it impose any
 5   additional limitations on the use of the funds.
 6   Section 1603-B.   Certification of compliance.
 7      A corporation that makes a contribution or expenditure shall
 8   submit a certification to the Department of State that the
 9   corporation was not a foreign-influenced corporation as of the
10   date the contribution or expenditure was made. The certification
11   shall be submitted within seven business days after the
12   contribution or expenditure is made and shall be signed by the
13   corporation's chief executive officer after reasonable inquiry
14   under penalty of perjury. If the activity requiring
15   certification was a contribution to a political committee or
16   political action committee that makes independent expenditures,
17   the corporation shall additionally provide a copy of the
18   certification to that committee. For purposes of the
19   certification, the corporation shall use due diligence to
20   ascertain beneficial ownership if it is registered on a national
21   securities exchange, as provided under 17 CFR 240.13d-3
22   (relating to determination of beneficial owner) and 240.13d-5
23   (relating to acquisition of beneficial ownership). The
24   corporation shall provide a copy of the statement of
25   certification to any candidate or committee to which it
26   contributes and, upon request of the recipient, to any other
27   person to which it contributes.
28   Section 1604-B.   News media.
29      This article does not prohibit publication or broadcasting of
30   news items or editorial comments by the news media.

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 1   Section 1605-B.    Penalty for individuals.
 2      (a)   Civil penalty.--An officer, manager, stockholder,
 3   member, agent, employee, attorney or other representative of a
 4   corporation acting on behalf of the corporation who violates
 5   this article shall be subject to a civil penalty of up to 10
 6   times the amount of the violation, but in no case more than
 7   $10,000, imposed by the Department of State.
 8      (b)   Fine and imprisonment.--An officer, manager,
 9   stockholder, member, agent, employee, attorney or other
10   representative of a corporation acting on behalf of the
11   corporation who is convicted of knowingly violating this article
12   is subject to a fine of not more than $20,000, or imprisonment
13   for a term of not more than five years, or both.
14   Section 1606-B.    Penalty for corporations.
15      (a)   Civil penalty.--A corporation that violates this article
16   is subject to a civil penalty of up to 10 times the amount of
17   the violation, but in no case more than $10,000, imposed by the
18   court or Department of State.
19      (b)   Fines and other penalties.--A corporation convicted of
20   knowingly violating this article is subject to a fine of not
21   more than $40,000. A convicted domestic corporation may be
22   dissolved as well as fined. If a foreign or nonresident
23   corporation is convicted, in addition to the fine, the
24   corporation's right to do business in this Commonwealth may be
25   declared forfeited.
26   Section 1607-B.    Knowing violations.
27      An individual or a corporation knowingly violates this
28   article if, at the time of a transaction, the individual or the
29   corporation knew that:
30            (1)   the transaction causing the violation constituted a

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 1      contribution; and
 2            (2)   the contributor was a foreign-influenced corporation
 3      subject to the prohibitions of section 1602-B.
 4   Section 1608-B.    Permitted activity.
 5      It is not a violation of this article for:
 6            (1)   A political party or political body to form a
 7      nonprofit corporation for the sole purpose of holding real
 8      property to be used exclusively as the party's headquarters.
 9            (2)   A corporation to contribute to or conduct public
10      media projects to encourage individuals to register to vote
11      or vote if the projects are not controlled by or operated for
12      the advantage of a candidate, political party, political body
13      or political committee.
14            (3)   A corporation to provide meeting facilities to a
15      political committee, political party, political body or
16      candidate on a nondiscriminatory and nonpreferential basis.
17            (4)   A corporation selling products or services to the
18      public to post on its public premises messages that promote
19      participation, voter registration or elections if the
20      messages are not controlled by or operated for the advantage
21      of a candidate, political party, political body or political
22      committee.
23   Section 1609-B.    Aiding violation.
24      (a)   Individuals.--An individual who aids, abets or advises a
25   violation of this article commits a misdemeanor and, upon
26   conviction, shall be sentenced to pay a fine of not less than
27   $1,000 nor more than $10,000.
28      (b)   Director, officers, agents and employees.--A director,
29   officer, agent or employee of a corporation or unincorporated
30   association who aids, abets or advises a violation of this

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 1   article commits a misdemeanor and, upon conviction, shall be
 2   sentenced to pay a fine not exceeding $10,000, or to undergo a
 3   term of imprisonment of not more than two years, or both, in the
 4   discretion of the court.
 5   Section 1610-B.    Prosecutions, jurisdiction and venue.
 6      (a)   Jurisdiction.--The Attorney General shall have
 7   prosecutorial jurisdiction over all violations committed under
 8   this article.
 9      (b)   Concurrent jurisdiction.--The district attorney of any
10   county in which a violation occurs has concurrent powers and
11   responsibilities with the Attorney General over violations.
12      (c)   Venue.--Violations of this article may be prosecuted in
13   the county where the payment or contribution was made, where
14   services were rendered or where money was paid or distributed.
15      Section 2.     This act shall take effect in 60 days.




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