The bill amends the Pennsylvania Election Code to enhance transparency and accountability in political contributions and expenditures. It introduces new definitions and regulations for political committees, contributions, and expenditures, including a provision for biennial adjustments to contribution limits by the Secretary of the Commonwealth. Key insertions include a clarified definition of "expenditure," ensuring that funds are used solely for campaign-related expenses. The bill also establishes stricter reporting requirements for political committees and candidates, mandating the disclosure of contributors' names and occupations when contributions exceed certain thresholds. Additionally, it sets contribution limits for individuals and political action committees, with caps of $1,500 and $10,000 respectively, and restricts contributions from out-of-state political action committees unless they are registered in Pennsylvania.

Furthermore, the legislation emphasizes corporate political accountability by requiring corporations that spend over $10,000 on political activities to obtain shareholder approval and notify shareholders quarterly about their political expenditures. It also introduces new regulations for independent expenditures, mandating disclaimers on communications and requiring tax-exempt organizations to disclose their top contributors. The bill outlines penalties for noncompliance and allows for legal action in disputes regarding the department's determinations. Overall, the amendments aim to mitigate corruption risks in the electoral process by ensuring that all financial activities related to campaigns are properly reported and disclosed, thereby promoting fair electoral practices. The act is set to take effect on January 1, 2026, or immediately, whichever is later.

Statutes/Laws affected:
Printer's No. 538 (Feb 10, 2025): P.L.1333, No.320, P.L.1778, No.712
Printer's No. 0538: P.L.1333, No.320, P.L.1778, No.712