Sen. Dominic Pileggi, R-9, recently introduced legislation that requires tax-exempt organizations that engage in political issue advocacy to file finance reports with the Pennsylvania Department of State.

Senate Bill 998 would require 501(c) and 527 organizations to file expense reports when they make expenditures of $1,000 or more, to influence Pennsylvania elections. These reports would include names of donors contributing at least $100 to the organization, said a press release from Pileggi's office.

Under current law, only groups that engage in political advertisement that expressly advocate for the election or defeat of a candidate are required to file reports with the Department of State. However, in recent years, since the United State Supreme Court decision in Citizens United v. Federal Election Commission, Pennsylvania has seen an influx of so-called issue advocacy, which is not subject to public disclosure, the release said.

According to the Center for Responsive Politics, in 2014 over $534 million was spent to influence state and local elections throughout the United States. Currently, these expenditures are not subject to public disclosure or reporting in Pennsylvania.

“Because of this loophole in the Election Code, the use of these tax-exempt organizations, which are not subject to the same rules as candidates or party committees, has risen dramatically,” Pileggi said in the release. “Senate Bill 998 subjects all persons making expenditures to influence elections, to disclosure requirements.”

The legislation, modeled after Delaware’s Election Disclosure Act, which was recently upheld by the U.S. Third Circuit Court of Appeals, would not change the current reporting requirements for candidate or party committees.

“Senator Pileggi’s efforts to help Pennsylvania voters understand who is working behind the scenes to influence the outcome of elections is extremely important.” Barry Kauffman, executive director of Common Cause PA, said in the release. “Common Cause PA applauds Senator Pileggi’s endeavors to evaluate the fairness and integrity for our elections through Senate Bill 998."

Senate Bill 998 has been referred to the Senate State Government Committee.

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