Pennsylvania 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.

Bill Text

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
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
context clearly indicates otherwise:
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"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,
outstanding voting shares, membership units or other
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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
(v) a corporation in which a foreign investor holds,
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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 inclu