Amd El L, generally; add S92-t, St Fin L; amd S658, Tax L
Enacts the "2010 Campaign Finance Reform Act"; provides for optional partial public financing of certain election campaigns in this state; limits personal use of campaign funds; establishes certain contribution limits; requires identification of the source of certain political communications and provides for a state board of elections enforcement unit and counsel.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10927
SPONSOR: Brodsky TITLE OF BILL: An act enacting the "2010 Campaign Finance Reform
Act"; to amend the election law, the state finance law and the tax law,
in relation to providing for optional partial public financing of
certain election campaigns in this state; and to amend the election law,
in relation to limiting personal use of campaign funds, establishing
certain contribution limits, identification of the source of certain
political communications and providing for a state board of elections
enforcement unit and counsel
SUMMARY AND DESCRIPTION OF PROVISIONS:
PUBLIC FINANCING:
The bill adds a new Title II to Article 14 to provide for public financ-
ing of primary and general election campaigns for statewide office,
primary, general and special election campaigns for state legislative
office and primary and general election campaigns for constitutional
convention delegates.
CRITERIA FOR PARTICIPATION:
To be eligible for public financing, a candidate for nomination or
election to a statewide office, state legislative office or as a consti-
tutional convention delegate must satisfy the legal requirements for
having his or her name on the ballot, elect to participate in the public
financing system, meet the threshold for eligibility and agree to file
required statements, authorize a single participating committee; and
identify the source of all campaign material.
ELIGIBILITY THRESHOLD:
Governor: Must collect not less than $900,000 from at least 9,000 match-
able contributions made up of sums of up to $250 per individual contrib-
utor who resides in New York state.
Lt. Governor (primary only), Attorney Gen, & Comptroller: Must collect
not less than $300,000 from at least 3,000 matchable contributions made
up of sums of up to $250 per individual contributor who resides in New
York state.
Senate: Must collect not less than $25,000 from at least 250 matchable
contributions made up of sums of up to $250 per individual contributor
who resides in New York state including at least $12,500 from at least
125 individual contributors who reside in the senate district in which
the seat is to be filled.
Assembly: Must collect not less than $10,000 from at least 100 matchable
contributions made up of sums of up to $250 per individual contributor
who resides in New York State including at least $5,000 from at least 50
individual contributors who reside in the assembly district in which the
seat is to be filled.
At-large Delegate to a Constitutional Convention: Must collect not less
than $25,000 from at least 250 matchable contributions made up of sums
of up to $250 per individual contributor who resides in New York state.
District Delegate to a Constitutional Convention: Must collect not less
than $5,000 from at least 50 matchable contributions made up of sums of
up to $250 per individual contributor who resides in the district in
which the seat is to be filled.
Matchable Contributions: May be collected after January first of the
year of the primary or general election. For a special election, may be
collected up to six months before the election. Consist of the net
amount of contributions after deduction of the value of any food, drink
or entertainment provided in exchange for the contribution. Only
contributions from persons who reside in New York State are matchable.
The Match: Eligible contributions up to $250 are matched at the rate of
$4 for every $1.
Triggers: If, however, a candidate who does not elect to receive public
funds raises, spends or contributes his or her own personal funds in an
amount greater than the expenditure limit established for such office
for candidates participating in the public financing system, an addi-
tional grant of public funds is given to the participating candidate.
Grants: A participating candidate may receive up to four grants equaling
25% of the amount of public funds previously received by the candidate
as a match for matchable contributions obtained and reported to the
state board of elections. Each of the grants is added to the original
expenditure limit, effectively creating a new TRIGGER for the next grant
when the nonparticipating candidate raises, spends or contributes his or
her own personal funds in an amount greater than the new expenditure
limit.
Misc. Rules: To receive public funds for a primary election, a partic-
ipating candidate must agree to receive public funding for the general
election.
Participating candidates who are unopposed in a primary election may not
receive public funds. Participating candidates whose opponents don't
raise or spend 10% of the expenditure limit are deemed unopposed.
Participating candidates that are unopposed may raise private funds of
up to 50% of the expenditure limit if there is a contest in the primary
for at least one other party for such office. Such funds may only be
raised with contributions of up to $2000 per contributor.
Candidates who are challenged in a primary and who do not seek public
funds are not eligible for public funds for the general election.
Candidates who are unopposed in a general or special election may not
receive public funds.
Permissible and Prohibited Uses of Public Funds: Public funds may be
used only for qualified campaign expenditures during the year of the
primary or general election. For a special election, such funds may only
be used in the three months prior to the election. They may not be used
for expenditures in violation of law, for payments to a candidate or to
a relative of the candidate (or to any business entity of which such a
person is an officer or employee or has a ten percent or greater owner-
ship interest), for payments in excess of fair market value, for any
expenditure after the candidate or the candidate's only remaining oppo-
nent has been disqualified (until and unless reversed), to challenge an
opponent's petitions or certificates, for non-campaign related food,
drink or entertainment, or for gifts (except brochures, buttons, signs
and other campaign material).
Contribution Limit: All candidates who choose to participate in the
public financing system have a contribution limit of $2,000 per contrib-
utor.
Expenditure Limits: The following expenditure limits apply to all candi-
dates who participate in the public financing system:
General Election Primary
$12,000,000 $1.1 per
enrolled voter or
$600,000, whichever
is more, but not to
exceed $6,000,000
Lt. Governor --- $1.1 per enrolled
voter or $300,000,
whichever is more,
but not to exceed
$3,000,000
Attorney General & $ 8,000,000 Same as Lt.
Governor
Comptroller
State Senator $ 375,000 $2.50 per enrolled
whichever is more,
but not to exceed
$350,000
Member of Assembly $ 150,000 $2.50 per enrolled
voter or $15,000
whichever is more,
but not to exceed
$150,000
At-Large Delegate $ 350,000 $.15 per enrolled
voter or $75,000,
whichever is more,
but not to exceed
$175,000
District Delegate $ 75,000 $1.10 per enrolled
voter in the district
or $5,000, whichever
is more, but not to
exceed $50,000
Party Expenditures in Support of participating Candidates:
Notwithstanding the expenditure limits for participating candidates,
state party committees may make the following expenditures for services
to participating candidates:
Gov. and Lt. Gov. $2,500,000
Att. Gen or Comp. $1,000,000
Senate $ 100,000
State Assembly $ 50,000
At-large Delegate $ 50,000
District Delegate $ 10,000
* Transfers to a participating candidate may constitute up to 25% of
such party expenditures.
Tax Check-off: The bill provides an income tax check-off of $5. Such
monies would be paid into a separate fund, known as the New York
State Campaign Finance Fund. The taxpayers' tax liability would not
be affected by making this designation. If the state campaign finance
fund lacks the money to pay all properly certified claims, the
deficiency will be paid from the general fund.
TITLE I
The bill amends Article 14 of the election law to designate the
existing law Title I, and adds the following:
* Identification of Independent Political Communications: The bill
requires all independent political communications that expressly
advocate for the election or defeat of a candidate or the Success or
defeat of a ballot proposal to identify the source of the funding for
such communication.
* Independent Expenditures: The bill requires reporting of independent
expenditures that cost more than $1000 and expressly advocates for
the election or defeat of a clearly identified candidate or the
success or defeat of a ballot proposal. Independent expenditures made
after the last filing before an election must be reported within 24
hours.
* The bill adds an identification requirement for independent
political communications, a filing requirement for independent
expenditures and a requirement that certain candidates disclose their
intent to spend personal funds in a campaign.
* Lowering Contribution Limits: The bill sets contribution limits for
campaigns for statewide office or citywide office in New York City at
$2,400 for candidates for election and $2,400 for candidates for
nomination (or between $2,000 and $6,000 for minor party candidates,
based on an existing formula that is unchanged by this bill). The
bill would set campaign contribution limits for candidates for State
Senate and State Assembly at $2,400 per election (or a total of
$4,800 for a primary and general election cycle), the current federal
level. This bill would not affect local laws currently in place in
New York City, which currently set limits for citywide candidates
that are lower than the limits in state law.
* Disclosure of the Intent to Use Personal Funds: Within 3 days of the
last day to file designating petitions, all candidates for statewide
office, state legislative office or constitutional convention
delegate must file a statement with the state board of elections
disclosing whether the candidate has or will contribute personal
funds to his or her committee and estimating the amount of such funds.
* Personal Use of Campaign Funds: Delineates how candidates for
elected office can and cannot use their campaign funds, establish
rules and methods for the disposal of excess campaign funds and for
the timing of such disposal, require that they specifically detail
campaign contributions by lobbyists and prohibit the soliciting or
receiving of contribution for campaigns for state or federal office
by senior policy makers in the executive and legislative branch.
* Campaign Finance Enforcement: The bill codifies an enforcement unit
within the State Board of Elections (SBOE) with a mandate that at
least 35 percent of the SBOE's annual budget be dedicated to the unit
to promote increased enforcement of campaign finance laws.
The bill expands the jurisdiction of the enforcement unit and promote
the independence of the enforcement counsel by making the office a 4
year term, and the office of special counsel, the other legal unit at
the SBOE, a four-year term and codifies the requirement that the
deputy in each unit be a member of the opposite political party than
the counsel.
The bill changes the way that campaign finance enforcement matters are
processed at the SBOE by requiring three of the four SBOE
commissioners to vote to stop an investigation by the enforcement
counsel, rather than requiring, as current law does, three votes to
begin an investigation.
The bill mandates that all votes to stop an investigation, or to act
on the recommendation of the enforcement counsel after an
investigation, Occur in public, as currently all discussion and all
determinations made regarding campaign finance enforcement matters
Occur in executive session and not in public.
Penalties:
TITLE I
The knowing and willful failure to identify the source of independent
expenditures will subject the person or entity to a civil fine equal
to $1000 or the cost of the communication, whichever is greater.
A failure to file the statements required for an independent
expenditure shall subject the person or entity to a civil fine of $500.
A knowing and willful failure to file the statement required regarding
the use of personal funds in a campaign shall subject the candidate
to a civil fine of up to $5000.
TITLE II
The failure to make proper campaign finance filings, as required by
Title II and rules and regulations promulgated thereunder, shall
subject the offender to a civil penalty of up to $5000.
If a participating candidate's aggregate expenditures exceed the
expenditure limitations, the candidate is liable for a civil penalty
in an amount equal to three times the amount of the excess.
LEGISLATIVE HISTORY:
New bill.
JUSTIFICATION:
PUBLIC FINANCING:
This bill provides a comprehensive yet balanced approach to the public
financing of political campaigns. It contains significant but
realistic limitations on expenditures and contribution receipts, a
means for recovering public funds when they are unspent, excessive
or used for prohibited purposes, and penalties for violations of the
filing requirements or the expenditure limitations for participants.
The hybrid "matching plus grant" structure of the program has several
advantages. It will reduce the amount of time a candidate must spend
raising money, leaving more time to address the issues that are
important to the public. The matching component allows for
participation by private citizens throughout the campaign while also
conserving resources by ensuring that only candidates who can show
substantial voter support and face opposition will be eligible to
receive public funds. The grant components, containing four separate
triggers, allow candidates that are outspent to remain competitive
without giving a participating candidate an unnecessary windfall.
The identification requirement for independent political
communications, the filing requirement for independent expenditures
and the requirement that candidates disclose their intent to spend
personal funds in a campaign provide both participants and
nonparticipants with a more transparent and fairer political dynamic.
The opportunity for party committees to make limited expenditures in
support of participating candidates provides flexibility to both the
candidates and the parties.
Overall, the bill strikes a balance that allows challengers and
incumbents to compete fairly while capping the amount of public funds
that will be expended.
CONTRIBUTION LIMITS FOR NON-PARTICIPATING CANDIDATES:
Presently a single contributor may give up to $55,900 to a candidate
during a single election cycle ($18,100 for the primary and $37,800
for the general election). This figure is the highest among any of
the 45 states that place limits on campaign contributions. It is
important that the legislature take steps to reduce the excessive
contributions currently permitted by law.
PERSONAL USE OF CAMPAIGN FUNDS:
This bill addresses a number of concerns with how campaign funds are
raised and expended. Currently, New York's election law, allowing
candidates to spend campaign funds for "any lawful purpose," is
among the most lax in the nation. While spending campaign funds for
personal use is technically prohibited, the lack of any definition
for what constitutes a personal use renders the provision
meaningless. This
shortcoming in the law is striking when compared to the detailed
restrictions issued by the Federal Election Commission. And when it
is combined with the provision that allows elected officials to
retain campaign funds for any use related to the holding of public
office, it gives legislators virtual carte blanche for expenditures
that are, at best, tangentially related to their campaigns and
official duties.
Examples of successful, unsuccessful or former candidates using excess
campaign funds for luxury vehicles, sky boxes, extravagant meals,
international travel and home improvements have regularly appeared in
newspapers across the state. There is a growing and justifiable
public perception that campaign funds are being used to enhance the
post election lifestyles of candidates for public office. Such
largesse turns the ideal of representatives serving the public on its
head.
Campaign donors have a reasonable expectation that their contributions
will be used for the candidate's election efforts and the execution
of his or her duties. They do not expect their contributions to
subsidize personal spending. This legislation addresses these abuses
while preserving elected officials' ability to fund the legitimate
work of their offices.
By adding a detailed list, both in generalities and specific examples,
to the current language, the line as to what can and cannot be done
is brightly drawn. In addition to the obvious need to spend campaign
funds on campaigns, the expanded definition makes it clear that
expenditures related to holding public office are restricted to those
costs that would not otherwise be incurred if an individual was a
private citizen.
In addition, the bill sets limits on how long campaign committees can
be maintained by former candidates. Reports of committees continuing
years after campaigns were ended are all too common. By setting time
limits and also specifying how excess funds can be disbursed, this
abuse will be eliminated.
The bill also requires campaign committees to identify contributions
from registered lobbyists. This is in response to concerns that
recent changes in the interpretation of what constitutes an illegal
gift by the commission will result in the use of campaign funds from
lobbyists in place of the prohibited gifts from lobbyists. Coupled
with the more stringent standard for the personal use of campaign
funds, the detailing of lobbyists contributions will make it all
the more difficult to justify such expenditures.
Finally the bill prohibits the soliciting or receiving of
contributions for a campaign for state or federal office while in a
senior policy position in the legislative or executive branch. This
is in response to the recent disclosure that the head of an executive
agency who acknowledged that he was not a candidate for any office,
continued to raise and spend campaign funds to enhance his life style.
To engage in such actions while overseeing an industry which is
actively and at great expense lobbies state government, at the very
least gives the impression that favorable decisions were being sold
and, true or not, feeds public cynicism. The legislation, again in
conjunction with the new, more clearly delineated limits on the use
of campaign funds, prohibits such misuse of campaign funds.
STRENGTHENED CAMPAIGN FINANCE ENFORCEMENT:
To promote increased enforcement of campaign finance reform laws, the
legislation creates an enforcement unit within the New York State
Board of Elections (BOE). Additionally, it expands the jurisdiction
of the enforcement unit and promotes the independence of the
enforcement counsel by making the office a four-year term.
The bill also requires that at least 35% of the annual State Board of
Elections budget go toward paying the expenses of the enforcement unit.
FISCAL IMPLICATIONS:
There would be no cost in 2011, 2012 and 2013.
In 2014, there could be costs associated with participating candidates
seeking election to a statewide office and constitutional delegate.
There will be no cost in 2015. In 2016, there could be costs
associated with participating candidates seeking election to state
legislative office. There would be no cost in 2017. In 2018, there
could be costs associated with participating candidates seeking
election to a statewide office, state legislative office and
constitutional delegate. Other states that have public financing
systems in place have had very low participation rates at first, with
increasing participation in later elections. The long-term cost of
the system in New York is unknown.
EFFECTIVE DATE:
This act takes effect immediately; provided, however,
that all statewide candidates and constitutional delegates will be
eligible to participate in 2014 and state legislative candidates will
be eligible to participate in 2016.
STATE OF NEW YORK
________________________________________________________________________
10927
IN ASSEMBLY
May 3, 2010
___________
Introduced by M. of A. BRODSKY -- read once and referred to the Commit-
tee on Election Law
AN ACT enacting the "2010 Campaign Finance Reform Act"; to amend the
election law, the state finance law and the tax law, in relation to
providing for optional partial public financing of certain election
campaigns in this state; and to amend the election law, in relation to
limiting personal use of campaign funds, establishing certain contrib-
ution limits, identification of the source of certain political commu-
nications and providing for a state board of elections enforcement
unit and counsel
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "2010 Campaign Finance Reform Act".
3 § 2. Legislative findings and declaration. The legislature declares
4 that it is in the public interest to create and ensure a truly democrat-
5 ic political system in which citizens, irrespective of their income,
6 status, or financial connections, are enabled and encouraged to compete
7 for public office. Therefore, the legislature finds it necessary to
8 establish a system of public financing for all qualified candidates for
9 state elective offices and constitutional convention delegates.
10 § 3. The article heading of article 14 of the election law is amended
11 to read as follows:
12 CAMPAIGN RECEIPTS AND EXPENDITURES; PUBLIC FINANCING
13 § 4. Section 14-100 of the election law is amended by adding three new
14 subdivisions 12, 13 and 14 to read as follows:
15 12. "clearly identified candidate" means that:
16 (a) the name of the candidate involved appears;
17 (b) a photograph or drawing of the candidate appears; or
18 (c) the identity of the candidate is apparent by unambiguous refer-
19 ence.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16792-02-0
A. 10927 2
1 13. "general public audience" means an audience composed of members of
2 the public, including a targeted subgroup of members of the public;
3 provided, however, it does not mean an audience solely comprised of
4 members, retirees and staff of a labor organization or their immediate
5 family members or an audience solely comprised of employees of a busi-
6 ness entity.
7 14. "labor organization" means any organization of any kind which
8 exists for the purpose, in whole or in part, of representing employees
9 employed within the state of New York in dealing with employers or
10 employer organizations or with a state government, or any political or
11 civil subdivision or other agency thereof, concerning terms and condi-
12 tions of employment, grievances, labor disputes, or other matters inci-
13 dental to the employment relationship. For the purposes of this arti-
14 cle, each local, parent national or parent international organization of
15 a statewide labor organization, and each statewide federation receiving
16 dues from subsidiary labor organizations, shall be considered a separate
17 labor organization.
18 § 5. Section 14-106 of the election law, as amended by chapter 8 of
19 the laws of 1978, is amended to read as follows:
20 § 14-106. Political [advertisements and literature] communication.
21 The statements required to be filed under the provisions of this [arti-
22 cle] title next succeeding a primary, general or special election shall
23 be accompanied by a [facsimile or] copy of all broadcast, cable or
24 satellite schedules and scripts, advertisements, pamphlets, circulars,
25 flyers, brochures, letterheads and other printed matter purchased or
26 produced [and a schedule of all radio or television time, and scripts
27 used therein], and reproductions of statements or information conveyed
28 to five hundred or more members of a general public audience by computer
29 or other electronic device, purchased in connection with such election
30 by or under the authority of the person filing the statement or the
31 committee or the person on whose behalf it is filed, as the case may be.
32 Such [facsimiles,] copies, schedules and scripts shall be preserved by
33 the officer with whom or the board with which it is required to be filed
34 for a period of one year from the date of filing thereof.
35 § 6. The election law is amended by adding a new section 14-107 to
36 read as follows:
37 § 14-107. Independent expenditure reporting. 1. For purposes of this
38 title:
39 (a) "Independent expenditure" means an expenditure made by a person
40 for an audio or video communication to a general public audience via
41 broadcast, cable or satellite or a written communication to a general
42 public audience via advertisements, pamphlets, circulars, flyers,
43 brochures, letterheads or other printed matter and statements or infor-
44 mation conveyed to five hundred or more members of a general public
45 audience by computer or other electronic devices which: (i) expressly
46 advocates the election or defeat of a clearly identified candidate or
47 the success or defeat of a ballot proposal and (ii) such candidate, the
48 candidate's political committee or its agents, or a political committee
49 formed to promote the success or defeat of a ballot proposal or its
50 agents, did not authorize, request, suggest, foster or cooperate in any
51 such communication.
52 (b) Independent expenditures do not include:
53 (i) a communication appearing in a written news story, commentary, or
54 editorial or distributed through the facilities of any broadcasting
55 station, cable or satellite unless such publication or facilities are
A. 10927 3
1 owned or controlled by any political party, political committee or
2 candidate; or
3 (ii) a communication that constitutes a candidate debate or forum; or
4 (iii) a communication which constitutes an expenditure made by an
5 entity required to report such expenditure with a board of elections.
6 (c) For purposes of this section, the term "person" shall mean person,
7 group of persons, entity, organization, corporation or association.
8 2. Whenever any person makes one or more independent expenditures that
9 in the aggregate exceeds one thousand dollars in any calendar year, such
10 communication described in subdivision one of this section shall clearly
11 state, with respect to communications regarding candidates, that the
12 communication is not authorized by any candidate, any candidate's poli-
13 tical committee or any of its agents. A knowing and willful violation
14 of the provisions of this subdivision shall subject the person to a
15 civil penalty equal to one thousand dollars or the cost of the communi-
16 cation, whichever is greater, in a special proceeding or civil action
17 brought by the state board of elections.
18 3. (a) Any person which makes independent expenditures that cost more
19 than one thousand dollars in the aggregate shall report such independent
20 expenditures to the state board of elections in the manner specified in
21 section 14-108 of this title.
22 (b) Any independent expenditure made after the close of the period to
23 be covered in the last statement filed before any primary, general or
24 special election, but before such election, shall be reported within
25 twenty-four hours in the same manner as provided for in subdivision two
26 of section 14-108 of this title.
27 4. Each such statement shall include:
28 (a) the name and address of the person making the statement;
29 (b) the name and address of the person making the independent expendi-
30 ture;
31 (c) the name and address of any person or entity providing a gift,
32 loan, advance or deposit of one hundred dollars or more for the inde-
33 pendent expenditure, or the provision of services for the same, and the
34 date it was given; provided, however, the name and address of a member
35 of a labor organization is not required for a gift, loan, advance or
36 deposit of one hundred dollars or more to a labor organization or a
37 labor organization political action committee;
38 (d) the dollar amount paid for each independent expenditure, the name
39 and address of the person or entity receiving the payment, the date the
40 payment was made and a description of the independent expenditure; and
41 (e) the election to which the independent expenditure pertains and the
42 name of the clearly identified candidate or the ballot proposal refer-
43 enced.
44 5. Any report made pursuant to this section shall include a copy of
45 all materials that pertain to the independent expenditure, including but
46 not limited to broadcast, cable or satellite schedule and scripts,
47 advertisements, pamphlets, circulars, flyers, brochures, letterheads and
48 other printed matter.
49 6. Any report of a loan that is made for an independent expenditure
50 shall include written evidence of the indebtedness.
51 7. Every statement required to be filed pursuant to this section shall
52 be filed by electronic reporting process or overnight mail to the state
53 board of elections.
54 8. The state board of elections shall promulgate regulations with
55 respect to the statements required to be filed by this section and shall
56 provide forms suitable for such statements.
A. 10927 4
1 § 7. Section 14-112 of the election law, as amended by chapter 930 of
2 the laws of 1981, is amended to read as follows:
3 § 14-112. Political committee authorization statement. 1. Any poli-
4 tical committee aiding or taking part in the election or nomination of
5 any candidate, other than by making contributions, shall file, in the
6 office in which the statements of such committee are to be filed pursu-
7 ant to this [article] title, either a sworn verified statement by the
8 treasurer of such committee that the candidate has authorized the poli-
9 tical committee to aid or take part in his election or that the candi-
10 date has not authorized the committee to aid or take part in his
11 election.
12 2. No later than three days after the last day to file designating
13 petitions, a candidate for statewide office, state legislative office or
14 constitutional convention delegate shall file a statement with the state
15 board of elections stating whether the candidate has or will contribute
16 personal funds to his or her authorized committee for use in such
17 election and an estimate of the amount of personal funds contributed or
18 to be contributed. The knowing and willful failure to file the state-
19 ment required by this subdivision shall subject the candidate to a civil
20 penalty not to exceed five thousand dollars in a special proceeding or
21 civil action brought by the state board of elections.
22 § 8. Section 14-126 of the election law, as amended by chapter 8 of
23 the laws of 1978, subdivision 1 as amended by chapter 128 of the laws of
24 1994, subdivisions 2, 3 and 4 as redesignated by chapter 9 of the laws
25 of 1978, is amended to read as follows:
26 § 14-126. Violations; penalties. 1. Any person who fails to file a
27 statement required to be filed by this [article] title shall be subject
28 to a civil penalty, not in excess of five hundred dollars, to be recov-
29 erable in a special proceeding or civil action to be brought by the
30 state board of elections or other board of elections.
31 2. Any person who knowingly and willfully fails to identify independ-
32 ent expenditures as required by subdivision two of section 14-107 of
33 this title or knowingly and willfully fails to file the statement
34 required by subdivision two of section 14-112 of this title shall be
35 subject to a civil penalty in a special proceeding or civil action
36 brought by the state board of elections.
37 [2.] 3. Any person who knowingly and willfully fails to file a state-
38 ment required to be filed by this [article] title within ten days after
39 the date provided for filing such statement or any person who knowingly
40 and willfully violates any other provision of this [article] title shall
41 be guilty of a misdemeanor.
42 [3.] 4. Any person who knowingly and willfully contributes, accepts or
43 aids or participates in the acceptance of a contribution in an amount
44 exceeding an applicable maximum specified in this [article] title shall
45 be guilty of a misdemeanor.
46 [4.] 5. Any person who shall, acting on behalf of a candidate or poli-
47 tical committee, knowingly and willfully solicit, organize or coordinate
48 the formation of activities of one or more unauthorized committees, make
49 expenditures in connection with the nomination for election or election
50 of any candidate, or solicit any person to make any such expenditures,
51 for the purpose of evading the contribution limitations of this [arti-
52 cle] title, shall be guilty of a class E felony.
53 § 9. Sections 14-100 through 14-132 of article 14 of the election law
54 are designated title 1 and a new title heading is added to read as
55 follows:
56 CAMPAIGN RECEIPTS AND EXPENDITURES
A. 10927 5
1 § 10. Article 14 of the election law is amended by adding a new title
2 2 to read as follows:
3 TITLE II
4 PUBLIC FINANCING
5 Section 14-200. Definitions.
6 14-202. Eligibility.
7 14-204. Qualified campaign expenditures.
8 14-206. Optional public financing.
9 14-208. Contribution and receipt limitations.
10 14-210. Expenditure limitations.
11 14-212. Examinations and audits; repayments.
12 14-214. Civil penalties.
13 § 14-200. Definitions. As used in this title, unless another meaning
14 is clearly indicated:
15 1. The term "state board" shall mean the state board of elections.
16 2. The term "eligible candidate" shall mean a candidate for nomination
17 or election to any of the offices of governor, lieutenant governor,
18 comptroller, attorney general, member of the state legislature, at-large
19 delegate to a constitutional convention or district delegate to a
20 constitutional convention.
21 3. The term "participating committee" shall mean a single political
22 committee which a candidate certifies is the committee that will solely
23 be used to participate in the public financing system established by
24 this title after January first of the year in which the primary, general
25 or special election is held for the public office sought. A multi-can-
26 didate committee may not be a participating committee.
27 4. The term "participating candidate" shall mean a candidate who is
28 eligible to participate in the optional public financing system estab-
29 lished by this title, has met the threshold for eligibility and has
30 elected to participate in the public financing system.
31 5. The term "matchable contributions" shall mean that portion of the
32 aggregate contributions made (a) in the case of a primary or general
33 election, after January first of the year in which the primary or gener-
34 al election is held for the public office sought or (b) in the case of a
35 special election, within six months of such election by natural persons
36 resident in the state of New York to a candidate for nomination or
37 election to any of the offices covered by the provisions of this title
38 which do not exceed two hundred fifty dollars, which have been reported
39 in full by the candidate's participating committee to the state board,
40 including the contributor's full name and residential address. "Matcha-
41 ble contributions" shall be the net amount of any monetary contribution
42 realized by a candidate or designated committee after deducting the
43 reasonable value of any goods or services provided the contributor in
44 connection with the contribution, except that contributions from any
45 person who has received a payment or anything of value from such commit-
46 tee or from a person who is an officer, director or employee of, or a
47 person who has a ten percent or greater ownership interest in any entity
48 which has received such a payment or thing of value shall not be matcha-
49 ble. A loan may not be treated as a matchable contribution.
50 6. The term "qualified campaign expenditure" shall mean an expenditure
51 for which public funds may be used.
52 7. The term "fund" shall mean the New York state campaign finance
53 fund.
54 8. The term "threshold for eligibility" shall mean the amount of total
55 matchable contributions that the participating committee of an otherwise
56 eligible candidate must receive, as required by section 14-202 of this
A. 10927 6
1 title, in order to qualify for optional public financing pursuant to
2 this title.
3 9. The term "contribution" shall have the same meaning as in subdivi-
4 sion nine of section 14-100 of this article.
5 § 14-202. Eligibility. 1. To be eligible for optional public financing
6 under this title, a candidate for nomination or election must:
7 (a) Meet all the requirements of this chapter and other provisions of
8 law to have his or her name on the ballot;
9 (b) Be a candidate for statewide office, the state legislature or
10 delegate to a constitutional convention at a primary, general or special
11 election and meet the threshold for eligibility set forth in subdivision
12 two of this section;
13 (c) Elect to participate in the public financing system established by
14 this title not later than seven days after the last day to file desig-
15 nating petitions for the office such candidate is seeking or, in the
16 case of a special election, not later than the last day to file nominat-
17 ing certificates for such office;
18 (d) Agree to obtain and furnish to the state board any evidence it may
19 reasonably request relating to his or her campaign expenditures or
20 contributions and furnish such other proof of compliance with this title
21 as may be requested by the state board;
22 (e) Have a single authorized political committee which he or she
23 certifies as the participating committee for the purposes of this title;
24 and
25 (f) Agree to identify accurately in all campaign materials the person
26 or entity that paid for such campaign material.
27 2. The threshold for eligibility for public funding for candidates in
28 a primary, general or special election for the following offices shall
29 be:
30 (a) Governor in a primary or general election. Not less than nine
31 hundred thousand dollars from at least nine thousand matchable contrib-
32 utions made up of sums of up to two hundred fifty dollars per individual
33 contributor who resides in New York state.
34 (b) Lieutenant governor in a primary election and comptroller or
35 attorney general in a primary or general election. Not less than three
36 hundred thousand dollars from at least three thousand matchable contrib-
37 utions made up of sums of up to two hundred fifty dollars per individual
38 contributor who resides in New York state.
39 (c) Members of the state senate in a primary, general or special
40 election. Not less than twenty-five thousand dollars from at least two
41 hundred fifty matchable contributions made up of sums of up to two
42 hundred fifty dollars per individual contributor who resides in New York
43 state including at least twelve thousand five hundred dollars from at
44 least one hundred twenty-five individual contributors who reside in the
45 senate district in which the seat is to be filled.
46 (d) Members of the assembly in a primary, general or special election.
47 Not less than ten thousand dollars from at least one hundred matchable
48 contributions made up of sums of up to two hundred fifty dollars per
49 individual contributor who resides in New York state including at least
50 five thousand dollars from at least fifty individuals who reside in the
51 assembly district in which the seat is to be filled.
52 (e) At-large delegate to a constitutional convention in a primary or
53 general election. Not less than twenty-five thousand dollars from at
54 least two hundred fifty matchable contributions made up of sums of up to
55 two hundred fifty dollars per individual contributor who resides in New
56 York state.
A. 10927 7
1 (f) District delegate to a constitutional convention in a primary or
2 general election. Not less than five thousand dollars from at least
3 fifty matchable contributions made up of sums of up to two hundred fifty
4 dollars per individual contributor who resides in the district in which
5 the seat is to be filled.
6 3. In order to be eligible to receive public funds in a primary
7 election a candidate must agree, that in the event such candidate is a
8 candidate for such office in the general election in such year, that
9 such candidate will be bound by the provisions of this title, including,
10 but not limited to, the receipt and expenditure limits of this title.
11 4. Candidates who are contested in a primary election and who do not
12 seek public funds shall not be eligible for public funds for the general
13 election in that year. The provisions of this subdivision shall not
14 apply to candidates for the office of lieutenant governor.
15 5. Candidates who are unopposed in a general or special election shall
16 not be eligible to receive public funds.
17 6. No candidate for election to an office in a primary, general or
18 special election who has elected to participate in the public financing
19 system shall be deemed opposed and receive public funds unless at least
20 one other candidate for such office in such election who also elected to
21 participate in the public financing system, or such candidate's commit-
22 tee, or at least one other candidate for such office in such election
23 who has not elected to participate, or such candidate's committee, have
24 either spent, contracted or obligated to spend, or have contributed such
25 candidate's personal funds to such candidate's committee or have
26 received in loans or contributions, an amount exceeding ten percent of
27 the expenditure limit for such office in such election which is fixed by
28 this title for candidates who have elected to accept such public funds.
29 If any candidate for an office and the committee of such candidate
30 reaches the threshold to qualify to receive public funds, or spends,
31 contracts or obligates to spend, or contributes such candidate's
32 personal funds to such candidate's committee or receives in loans or
33 contributions, an amount exceeding ten percent of the expenditure limit
34 for such office in such election at any time after the filing deadline
35 for the last report required to be filed before the first distribution
36 of public funds for such election, such candidate or committee must
37 notify the state board of that fact within twenty-four hours in the same
38 manner as provided in subdivision two of section 14-108 of this article.
39 § 14-204. Qualified campaign expenditures. 1. Public funds provided
40 under the provisions of this title may only be used for expenditures by
41 the participating committee authorized by the candidate to make expendi-
42 tures on such candidate's behalf, to further the candidate's nomination
43 or election after January first of the year in which the primary or
44 general election is held for the office sought, for services, materials,
45 facilities or other things of value used during that campaign cycle or,
46 in the case of a special election, for expenditures during the period
47 commencing three months before and ending one month after such special
48 election. The total of all expenditures made by the candidate and such
49 candidate's participating committee, including all payments received
50 from the fund, shall not exceed the expenditure limitations established
51 in section 14-210 of this title, except insofar as such payments are
52 made to repay loans used to pay campaign expenditures.
53 2. Such public funds may not be used for:
54 (a) An expenditure in violation of any law of the United States or of
55 this state;
A. 10927 8
1 (b) Payments or anything of value given or made to the candidate, a
2 relative of the candidate, or to a business entity in which any such
3 person has a ten percent or greater ownership interest or of which any
4 such person is an officer, director or employee;
5 (c) Payment in excess of the fair market value of services, materials,
6 facilities or other things of value received in exchange;
7 (d) Any expenditure made after the participating candidate, or the
8 only remaining opponent of such candidate, has been disqualified or had
9 such candidate's petitions declared invalid by a board of elections or a
10 court of competent jurisdiction until and unless such finding is
11 reversed by a higher authority.
12 (e) Any expenditure made to challenge the validity of any petition of
13 designation or nomination or any certificate of nomination, acceptance,
14 authorization, declination or substitution;
15 (f) Expenditure for noncampaign related food, drink or entertainment;
16 and
17 (g) Gifts, except brochures, buttons, signs and other campaign materi-
18 al.
19 § 14-206. Optional public financing. 1. Participating candidates for
20 nomination or election in primary, general and special elections may
21 obtain payment to a participating committee from public funds for quali-
22 fied campaign expenditures. No such public funds shall be paid to a
23 participating committee until the candidate has qualified to appear on
24 the ballot and filed a sworn statement with the state board electing to
25 participate in the optional public financing system and agreeing to
26 abide by the requirements of this title. Payments shall not exceed the
27 amounts specified in this title, and shall be made only in accordance
28 with the provisions of this title. Such payments may only be made to a
29 participating candidate's participating committee. No public funds shall
30 be used except as reimbursement or payment for qualified campaign
31 expenditures actually and lawfully incurred or to repay loans used to
32 pay qualified campaign expenditures.
33 2. The participating committee of each participating candidate shall
34 be entitled to four dollars in public funds for each one dollar of
35 matchable contributions obtained and reported to the state board in
36 accordance with the provisions of this title, provided, however, such
37 public funds shall only be used for qualified campaign expenditures.
38 3. (a) However, if any candidate in any election for an office for
39 which public funds are available pursuant to the provisions of this
40 title, elects not to accept public funds and such candidate or such
41 candidate's committee either spends, contracts or obligates to spend, or
42 contributes such candidate's personal funds to such candidate's commit-
43 tee or receives in loans or contributions, an amount exceeding the
44 expenditure limit for such office, as fixed by this title for candidates
45 who have elected to accept public funds, then (i) such candidate or
46 committee must notify the state board of the fact within twenty-four
47 hours via the internet using the electronic filing system established by
48 the state board, or if such candidate does not file electronically via
49 the internet, by facsimile or overnight mail; and (ii) the participating
50 committee of each participating candidate for such office shall be enti-
51 tled to a grant of public funds equal to twenty-five percent of the
52 total amount of public funds received by the participating candidate for
53 matchable contributions obtained and reported to the state board. Such
54 grant shall be paid within two business days and shall only be used for
55 qualified campaign expenditures.
A. 10927 9
1 (b) However, if any candidate in any election for an office for which
2 public funds are available pursuant to the provisions of this title,
3 elects not to accept public funds and such candidate or such candidate's
4 committee either spends, contracts or obligates to spend, or contributes
5 such candidate's personal funds to such candidate's committee or
6 receives in loans or contributions, an amount exceeding the total of the
7 expenditure limit for such office, as fixed by this title for candidates
8 who have elected to accept public funds, plus the twenty-five percent
9 grant already received by the participating candidate, then (i) such
10 candidate or committee must notify the state board of the fact within
11 twenty-four hours via the internet using the electronic filing system
12 established by the state board, or if such candidate does not file elec-
13 tronically via the internet, by facsimile or overnight mail; and (ii)
14 the participating committee of each participating candidate for such
15 office shall be entitled to an additional grant of public funds equal to
16 twenty-five percent of the total amount of public funds received by the
17 participating candidate for matchable contributions obtained and
18 reported to the state board. Such grant shall be paid within two busi-
19 ness days and shall only be used for qualified campaign expenditures.
20 (c) However, if any candidate in any election for an office for which
21 public funds are available pursuant to the provisions of this title,
22 elects not to accept public funds and such candidate or such candidate's
23 committee either spends, contracts or obligates to spend, or contributes
24 such candidate's personal funds to such candidate's committee or
25 receives in loans or contributions, an amount exceeding the total of the
26 expenditure limit for such office, as fixed by this title for candidates
27 who have elected to accept public funds, plus the fifty percent total
28 aggregate grant already received by the participating candidate, then
29 (i) such candidate or committee must notify the state board of the fact
30 within twenty-four hours via the internet using the electronic filing
31 system established by the state board, or if such candidate does not
32 file electronically via the internet, by facsimile or overnight mail;
33 and (ii) the participating committee of each participating candidate for
34 such office shall be entitled to an additional grant of public funds
35 equal to twenty-five percent of the total amount of public funds
36 received by the participating candidate for matchable contributions
37 obtained and reported to the state board. Such grant shall be paid with-
38 in two business days and shall only be used for qualified campaign
39 expenditures.
40 (d) However, if any candidate in any election for an office for which
41 public funds are available pursuant to the provisions of this title,
42 elects not to accept public funds and such candidate or such candidate's
43 committee either spends, contracts or obligates to spend, or contributes
44 such candidate's personal funds to such candidate's committee or
45 receives in loans or contributions, an amount exceeding the total of the
46 expenditure limit for such office, as fixed by this title for candidates
47 who have elected to accept public funds, plus the seventy-five percent
48 total aggregate grant already received by the participating candidate,
49 then (i) such candidate or committee must notify the state board of the
50 fact within twenty-four hours via the internet using the electronic
51 filing system established by the state board, or if such candidate does
52 not file electronically via the internet, by facsimile or overnight
53 mail; and (ii) the participating committee of each participating candi-
54 date for such office shall be entitled to an additional grant of public
55 funds equal to twenty-five percent of the total amount of public funds
56 received by the participating candidate for matchable contributions
A. 10927 10
1 obtained and reported to the state board. Such grant shall be paid with-
2 in two business days and may only be used for qualified campaign expend-
3 itures.
4 4. (a) No participating candidate for nomination for an office who is
5 unopposed in a primary election shall be entitled to payment from the
6 fund for qualified campaign expenditures.
7 (b) Where there is a contest in such primary for the nomination of at
8 least one other party for such office, the participating committee of an
9 unopposed participating candidate for nomination may raise and spend an
10 amount equal to one-half the expenditure limit for such office, as fixed
11 by this title for candidates who have elected to accept public funds,
12 with contributions of up to two thousand dollars per contributor. Such
13 payment can only be expended for property, services or facilities used
14 on or before the date of such primary election.
15 5. The state board shall promptly examine all reports of contributions
16 to determine whether, on their face, they meet the requirements for
17 matchable contributions, and shall keep a record of such contributions.
18 6. The state board shall promulgate regulations for the certification
19 of the amount of funds payable by the comptroller, from the fund estab-
20 lished pursuant to section ninety-two-t of the state finance law, to a
21 participating candidate that has qualified to receive such payment.
22 These regulations shall include the promulgation and distribution of
23 forms on which contributions and expenditures are to be reported, the
24 periods during which such reports must be filed and the verification
25 required. The state board shall institute procedures which will make
26 possible payment by the fund within four business days after receipt of
27 the required forms and verifications.
28 § 14-208. Contribution and receipt limitations. 1. In any primary,
29 special or general election for any statewide office, state legislative
30 office or constitutional convention delegate no contributor may make a
31 contribution to any participating candidate or such candidate's partic-
32 ipating committee, and no participating candidate or participating
33 committee may accept any contribution from any contributor which, in the
34 aggregate amount, is greater than two thousand dollars.
35 2. (a) Notwithstanding the expenditure limit for such office as fixed
36 by this title for candidates who have elected to accept public funds, a
37 participating candidate for governor or lieutenant governor in a primary
38 or general election or such candidate's participating committee may
39 accept from a state party committee which has nominated such candidate
40 services in an amount which, in the aggregate, does not exceed two
41 million five hundred thousand dollars; provided, however, that twenty-
42 five percent of such amount may be accepted in the form of a transfer.
43 (b) Notwithstanding the expenditure limit for such office as fixed by
44 this title for candidates who have elected to accept public funds, a
45 participating candidate for attorney general or comptroller in a primary
46 or general election or such candidate's participating committee may
47 accept from a state party committee which has nominated such candidate
48 services in an amount which, in the aggregate, does not exceed one
49 million dollars; provided, however, that twenty-five percent of such
50 amount may be accepted in the form of a transfer.
51 (c) Notwithstanding the expenditure limit for such office as fixed by
52 this title for candidates who have elected to accept public funds, a
53 participating candidate for state senator in a primary, general or
54 special election or such candidate's participating committee may accept
55 from a state party committee which has nominated such candidate services
56 in an amount which, in the aggregate, does not exceed one hundred thou-
A. 10927 11
1 sand dollars; provided, however, that twenty-five percent of such amount
2 may be accepted in the form of a transfer.
3 (d) Notwithstanding the expenditure limit for such office as fixed by
4 this title for candidates who have elected to accept public funds, a
5 participating candidate for member of the assembly in a primary, general
6 or special election or such candidate's participating committee may
7 accept from a state party committee which has nominated such candidate
8 services in an amount which, in the aggregate, does not exceed fifty
9 thousand dollars; provided, however, that twenty-five percent of such
10 amount may be accepted in the form of a transfer.
11 (e) Notwithstanding the expenditure limit for such office as fixed by
12 this title for candidates who have elected to accept public funds, a
13 participating candidate for delegate at-large to a constitutional
14 convention in a general election or such candidate's participating
15 committee may accept from a state party committee which has nominated
16 such candidate services in an amount which, in the aggregate, does not
17 exceed fifty thousand dollars; provided, however, that twenty-five
18 percent of such amount may be accepted in the form of a transfer.
19 (f) Notwithstanding the expenditure limit for such office as fixed by
20 this title for candidates who have elected to accept public funds, a
21 participating candidate for district delegate to a constitutional
22 convention in a general election or such candidate's participating
23 committee may accept from a state party committee which has nominated
24 such candidate services in an amount which, in the aggregate, does not
25 exceed ten thousand dollars; provided, however, that twenty-five percent
26 of such amount may be accepted in the form of a transfer.
27 (g) For purposes of this subdivision, the term state party committee
28 includes any of its subcommittees.
29 3. Notwithstanding any expenditure limit in this subdivision, each
30 county committee of any party which nominates a candidate for statewide
31 office or state legislative office, including within the term county
32 committee any of its subcommittees, may expend in support of each such
33 candidate for statewide office of such party who has agreed to accept
34 public financing, an amount which shall not exceed the sum of two cents
35 for each voter registered in such county as determined by the records of
36 the appropriate board of elections as of the preceding general election.
37 4. In computing the aggregate amount expended for purposes of this
38 section, expenditures made by a state party committee or a county
39 committee in support of more than one candidate shall be allocated among
40 such candidates supported by the committee in accordance with formulas
41 promulgated by the state board or, in the absence of such official
42 formulas, in accordance with a formula based upon reasonable standards.
43 The statements filed by such party committee in accordance with this
44 chapter shall set forth, in addition to the other information required,
45 the total amount expended by the party committee on behalf of all such
46 candidates and the amount allocated to each candidate by dollar amount
47 and percentage. Expenditures by a party for activities which do not
48 support or oppose the election of any candidate or candidates by name or
49 by clear inference shall not be regarded as expenditures on behalf of or
50 in opposition to a candidate.
51 5. A participating candidate for a public office for which public
52 funds are available pursuant to this title shall not accept any contrib-
53 utions any earlier than one day after the previous general election for
54 the office which such candidate is seeking, or any later than the day of
55 the general election for the office sought, except that a participating
56 candidate or participating committee which has a deficit on the day of
A. 10927 12
1 the general election may, after such date, accept contributions which do
2 not exceed the amount of such deficit and the expenses incurred in rais-
3 ing such contributions or the expenditure limit for such office as fixed
4 by this title for candidates who have elected to accept public funds.
5 Contributions to a participating candidate or participating committee
6 which were received before January first of the year in which the prima-
7 ry or general election is held for the public office sought or, in the
8 case of a special election received more than six months before the
9 special election, may not be expended in any election for any such
10 office.
11 6. Except for the limitations specifically set forth in this section,
12 participating candidates shall be subject to the provisions of this
13 article.
14 § 14-210. Expenditure limitations. The following expenditure limita-
15 tions apply to all expenditures by participating candidates and their
16 participating committees receiving public funds pursuant to the
17 provisions of this title:
18 1. (a) In any primary election, expenditures by participating candi-
19 dates and by their participating committees shall not exceed:
20 (i) for governor, the sum of one dollar and ten cents for each voter
21 enrolled in the candidate's party in the state; provided, however, such
22 sum shall not be less than nine hundred thousand dollars nor more than
23 nine million dollars;
24 (ii) for lieutenant governor, comptroller or attorney general, the sum
25 of one dollar and ten cents for each voter enrolled in the candidate's
26 party in the state; provided, however, such sum shall not be less than
27 six hundred thousand dollars nor more than six million dollars;
28 (iii) for senator, the sum of two dollars and fifty cents for each
29 voter enrolled in the candidate's party in the senate district;
30 provided, however, such sum shall not be less than thirty-five thousand
31 dollars nor more than three hundred seventy-five thousand dollars;
32 (iv) for member of the assembly, the sum of two dollars and fifty
33 cents for each voter enrolled in the candidate's party in the assembly
34 district; provided, however, such sum shall not be less than fifteen
35 thousand dollars nor more than one hundred fifty thousand dollars;
36 (v) for at-large delegate to a constitutional convention, the sum of
37 fifteen cents for each voter enrolled in the candidate's party in the
38 state; provided, however, such sum shall not be less than seventy-five
39 thousand dollars nor more than one hundred seventy-five thousand
40 dollars;
41 (vi) for district delegates to a constitutional convention, the sum of
42 one dollar and ten cents for each voter enrolled in the candidate's
43 party in the district; provided, however, such sum shall not be less
44 than five thousand dollars nor more than fifty thousand dollars;
45 (b) The enrollment numbers used to calculate the expenditure limits
46 provided for in this subdivision shall be the enrollments duly reported
47 by the appropriate board or boards of election as of the last general
48 election preceding the primary election.
49 2. In any general or special election, expenditures by participating
50 candidates for the following offices and by their participating commit-
51 tees shall not exceed the following amounts:
52 Candidates for election to the office of:
53 Governor and lieutenant governor (combined) $12,000,000
54 Attorney general $8,000,000
55 Comptroller $8,000,000
56 Member of senate $375,000
A. 10927 13
1 Member of assembly $150,000
2 Delegate at-large to a constitutional convention $350,000
3 District delegate to a constitutional convention $75,000
4 3. Participating candidates for office who are unopposed in the prima-
5 ry election may expend before the primary election, for services, mate-
6 rials or facilities used on or before the date of such primary election,
7 an amount equal to half the sum such candidates would be entitled to
8 spend if their nomination was contested in such primary election
9 provided there is a primary contest for the nomination of at least one
10 other party for such office.
11 4. Expenditures for legal fees and reasonable expenses to defend the
12 validity of petitions of designation or nomination or certificates of
13 nomination, acceptance, authorization, declination or substitution, or
14 to successfully challenge any such petition or certificate on grounds of
15 fraud, or for expenses incurred to comply with the campaign finance
16 reporting requirements of this article, shall not be subject to the
17 expenditure limits of this subdivision.
18 § 14-212. Examinations and audits; repayments. 1. The state board
19 shall conduct a thorough examination and audit of the contributions and
20 qualified campaign expenses of the participating committee of every
21 participating candidate who received payments pursuant to section 14-206
22 of this title.
23 2. (a) If the state board determines that any portion of the payment
24 made to a participating committee from the fund was in excess of the
25 aggregate amount of payments to which such eligible candidate was enti-
26 tled pursuant to section 14-206 of this title, it shall notify such
27 committee of the excess amount and such committee shall pay to the state
28 board an amount equal to the amount of excess payments.
29 (b) If the state board determines that any amount of payment made to a
30 participating committee from the fund was used for purposes other than
31 to defray qualified campaign expenses, it shall notify such participat-
32 ing committee of the amount disqualified and such participating commit-
33 tee shall pay to the state board an amount equal to such disqualified
34 amount.
35 (c) If the total of contributions and payments from the fund received
36 by any participating candidate and such candidate's participating
37 committee, exceeds the campaign expenditures of such candidate and
38 committee, such candidate and committee shall use such excess funds to
39 reimburse the fund for payments received by such committee from the fund
40 not later than ten days after all permissible liabilities have been paid
41 and in any event, not later than March thirty-first of the year follow-
42 ing the year of the election for which such payments were intended. No
43 such excess funds shall be used for any other purpose.
44 3. If a court of competent jurisdiction disqualifies a candidate whose
45 participating committee has received public funds on the grounds that
46 such candidate committed fraudulent acts in order to obtain a place on
47 the ballot and such decision is not reversed by a higher court, such
48 candidate and such candidate's participating committee shall pay to the
49 state board an amount equal to the total of public funds received by
50 such participating committee.
51 4. The state board must provide written notice of all payments due
52 from a participating candidate or such candidate's committee to the
53 state board and provide an opportunity for the candidate or committee to
54 rebut, in whole or in part, the alleged amount due. Upon a final written
55 determination by the state board, the amount due shall be paid to the
56 state board within thirty days of such determination.
A. 10927 14
1 5. All payments received by the state board pursuant to this section
2 shall be deposited in the New York state campaign finance fund estab-
3 lished by section ninety-two-t of the state finance law.
4 § 14-214. Civil penalties. 1. Any person who fails to file a statement
5 or record required to be filed by this title or the rules or regulations
6 of the state board in implementation thereof shall be subject to a civil
7 penalty, not in excess of five thousand dollars, to be recoverable in a
8 special proceeding or civil action brought by the state board.
9 2. If the aggregate amount of expenditures by a participating candi-
10 date and such candidate's participating committee exceeds the expendi-
11 ture limitations contained in this title such participating candidate
12 shall be liable for a civil penalty in an amount equal to three times
13 the sum by which such expenditures exceed the permitted amount, to be
14 recoverable in a special proceeding or civil action brought by the state
15 board.
16 3. All payments received by the state board pursuant to this section
17 shall be deposited in the New York state campaign finance fund estab-
18 lished by section ninety-two-t of the state finance law.
19 § 11. The election law is amended by adding a new section 16-103 to
20 read as follows:
21 § 16-103. Proceedings as to public financing. 1. The determination of
22 eligibility pursuant to section 14-202 of this chapter and any question
23 or issue relating to payments for qualified campaign expenditures pursu-
24 ant to section 14-206 of this chapter may be contested in a proceeding
25 instituted in the Supreme court, Albany county, by any aggrieved candi-
26 date.
27 2. A proceeding with respect to such a determination of eligibility or
28 payment for qualified campaign expenditures pursuant to section 14-206
29 of this chapter shall be instituted within seven days after such deter-
30 mination was made. The state board shall be made a party to any such
31 proceeding.
32 3. Upon the state board's failure to receive the amount due from a
33 participating candidate or such candidate's committee after the issuance
34 of written notice of such amount due, as required by subdivision four of
35 section 14-212 of this chapter, the state board is authorized to insti-
36 tute a special proceeding or civil action in Supreme Court, Albany coun-
37 ty, to obtain a judgment for any amounts determined to be payable to the
38 state board as a result of an examination and audit made pursuant to
39 title II of article fourteen of this chapter.
40 4. The state board is authorized to institute a special proceeding or
41 civil action in Supreme Court, Albany county, to obtain a judgment for
42 civil penalties determined to be payable to the state board pursuant to
43 section 14-214 of this chapter.
44 § 12. The election law is amended by adding a new section 4-115 to
45 read as follows:
46 § 4-115. Notice to the state board of elections of candidates for the
47 legislature. 1. Each board of elections with which petitions are filed
48 for member of the state legislature shall, not later than one week after
49 the last day to file such petitions, send notice to the state board of
50 elections of such information about each such petition as the state
51 board shall require.
52 2. Each such county board of elections shall, not later than the day
53 after the last day to file a petition or certificate of nomination for a
54 general or special election or a certificate of acceptance, declination
55 or substitution for a general, primary or special election for any such
A. 10927 15
1 office, send to the state board of elections such information about each
2 such petition or certificate as the state board shall require.
3 3. If any such county board of elections should disqualify any such
4 candidate or rule the petition or certificate designating or nominating
5 any such candidate invalid, it shall forthwith notify the state board of
6 elections of such decision.
7 4. If any such county board of elections shall be notified of a deci-
8 sion of a court of competent jurisdiction disqualifying any such candi-
9 date or declaring any such petition invalid or reversing any such deci-
10 sion by such board of elections or another court, such board of
11 elections shall forthwith notify the state board of elections of such
12 decision.
13 5. The state board of elections may prescribe forms for the notices
14 required by this section and shall prescribe the manner in which such
15 notices shall be given.
16 § 13. The state finance law is amended by adding a new section 92-t to
17 read as follows:
18 § 92-t. New York state campaign finance fund. 1. There is hereby
19 established in the joint custody of the state comptroller and the
20 commissioner of taxation and finance a fund to be known as the New York
21 state campaign finance fund.
22 2. Such fund shall consist of all revenues received from the New York
23 state campaign finance fund check-off pursuant to subsection (f) of
24 section six hundred fifty-eight of the tax law, from the general fund,
25 and from all other moneys credited or transferred thereto from any other
26 fund or source pursuant to law.
27 3. Moneys of the fund, following appropriation by the legislature, may
28 be expended for the purposes of making payments to candidates pursuant
29 to title II of article fourteen of the election law. Moneys shall be
30 paid out of the fund on the audit and warrant of the state comptroller
31 on vouchers certified or approved by the state board of elections, or
32 its duly designated representative, in the manner prescribed by law, not
33 more than four working days after such voucher is received by the state
34 comptroller.
35 4. Notwithstanding any provision of law to the contrary, if, in any
36 state fiscal year, the state campaign finance fund lacks the amount of
37 money to pay all claims vouchered by eligible candidates and certified
38 or approved by the state board of elections, any such deficiency shall
39 be paid, upon audit and warrant of the state comptroller, from funds
40 deposited in the general fund of the state not more than four working
41 days after such voucher is received by the state comptroller.
42 5. Commencing in two thousand fifteen, if the surplus in the fund on
43 April first of the year after a year in which a governor is elected
44 exceeds twenty-five percent of the disbursements from the fund over the
45 previous four years, the excess shall revert to the general fund of the
46 state.
47 6. No public funds shall be paid to any participating candidates in a
48 primary election any earlier than the day that such candidate is certi-
49 fied as being on the ballot for such primary election.
50 7. No public funds shall be paid to any participating candidates in a
51 general election any earlier than the day after the day of the primary
52 election held to nominate candidates for such election.
53 8. No public funds shall be paid to any participating candidates in a
54 special election any earlier than the day after the last day to file
55 certificates of party nomination for such special election.
A. 10927 16
1 9. No public funds shall be paid to any participating candidate who
2 has been disqualified or whose designating petitions have been declared
3 invalid by the appropriate board of elections or a court of competent
4 jurisdiction until and unless such finding is reversed by a higher
5 authority. No payment from the fund in the possession of such a candi-
6 date or such candidate's participating committee on the date of such
7 disqualification or invalidation may thereafter be expended for any
8 purpose except the payment of liabilities incurred before such date. All
9 such moneys shall be repaid to the fund.
10 § 14. Section 658 of the tax law is amended by adding a new subsection
11 (f) to read as follows:
12 (f) New York state campaign finance fund check-off. (1) For each
13 taxable year beginning on and after January first, two thousand ten,
14 every individual whose New York state income tax liability for the taxa-
15 ble year for which the return is filed is five dollars or more may
16 designate on such return that five dollars be paid into the New York
17 state campaign finance fund established by section ninety-two-t of the
18 state finance law. Where a husband and wife file a joint return and
19 have a New York state income tax liability for the taxable year for
20 which the return is filed of ten dollars or more, or file separate
21 returns on a single form, each such taxpayer may make separate desig-
22 nations on such return of five dollars to be paid into the New York
23 state campaign finance fund.
24 (2) The commissioner shall transfer to the New York state campaign
25 finance fund, established pursuant to section ninety-two-t of the state
26 finance law, an amount equal to five dollars multiplied by the number of
27 designations.
28 (3) For purposes of this subsection, the income tax liability of an
29 individual for any taxable year is the amount of tax imposed under this
30 article reduced by the sum of the credits (as shown in his or her
31 return) allowable under this article.
32 (4) The department shall include a place on every personal income tax
33 return form to be filed by an individual for a tax year beginning on or
34 after January first, two thousand ten, immediately above the certif-
35 ication under which the taxpayer is required to sign such form, for such
36 taxpayer to make the designations described in paragraph one of this
37 subsection. Such return form shall contain a concise explanation of the
38 purpose of such optional designations.
39 § 15. Campaign finance review panel. 1. There is hereby created and
40 established the "campaign finance review panel". The panel shall consist
41 of the commissioner of taxation and finance, the director of the divi-
42 sion of the budget, the state comptroller and the two members of the
43 state board of elections who rotate as chairperson of the board. The
44 commissioner of taxation and finance shall be chairperson.
45 2. The panel is empowered and it shall be its duty to monitor and
46 review the implementation of the 2010 Campaign Finance Reform Act. The
47 panel shall report to the governor and the legislature on March 31, 2012
48 and on March 31, 2014. The report shall include: (a) the number of
49 candidates qualifying and opting for public financing, the amounts
50 expended for this purpose in the preceding fiscal year and a projection
51 of the number of candidates likely to qualify and opt for public financ-
52 ing and their expenditures in future elections; (b) an analysis of the
53 effect of the 2010 Campaign Finance Reform Act on political campaigns,
54 including its effect on the sources and amounts of private financing,
55 the level of campaign expenditures, voter participation, the number of
56 candidates and the candidate's ability to campaign effectively for
A. 10927 17
1 public office; (c) a review of the procedures utilized in providing
2 public funds to candidates; and (d) such recommended changes in the 2010
3 Campaign Finance Reform Act as it deems appropriate.
4 § 16. Subdivision 9 of section 14-100 of the election law is amended
5 by adding a new paragraph 4 to read as follows:
6 (4) the term "contribution" does not include expenditures by a bona
7 fide membership organization in support of the following activities by
8 members of the organization who are volunteering their time on behalf of
9 a candidate, not to exceed twenty-five dollars per member who volun-
10 teers, for: transportation of volunteers to and from campaign activ-
11 ities; cost of feeding volunteers while volunteering for the campaign;
12 and materials such as badges and clothing that identifies the name of
13 the organization and/or candidate.
14 § 17. Paragraphs a and b of subdivision 1 of section 14-114 of the
15 election law, as amended by chapter 659 of the laws of 1994, are amended
16 to read as follows:
17 a. In any election for a public office to be voted on by the voters of
18 the entire state, or for nomination to any such office, no contributor
19 may make a contribution to any candidate or political committee, and no
20 candidate or political committee may accept any contribution from any
21 contributor, which is in the aggregate amount greater than: (i) in the
22 case of any nomination to public office, the product of the total number
23 of enrolled voters in the candidate's party in the state, excluding
24 voters in inactive status, multiplied by $.005, but such amount shall be
25 not [less] more than [four] two thousand four hundred dollars [nor more
26 than twelve thousand dollars] as increased or decreased by the cost of
27 living adjustment described in paragraph c of this subdivision, and (ii)
28 in the case of any election to a public office, [twenty-five] two thou-
29 sand four hundred dollars as increased or decreased by the cost of
30 living adjustment described in paragraph c of this subdivision; provided
31 however, that the maximum amount which may be so contributed or
32 accepted, in the aggregate, from any candidate's child, parent, grand-
33 parent, brother and sister, and the spouse of any such persons, shall
34 not exceed in the case of any nomination to public office an amount
35 equivalent to the product of the number of enrolled voters in the candi-
36 date's party in the state, excluding voters in inactive status, multi-
37 plied by $.025, and in the case of any election for a public office, an
38 amount equivalent to the product of the number of registered voters in
39 the state excluding voters in inactive status, multiplied by $.025.
40 b. In any other election for party position or for election to a
41 public office or for nomination for any such office, no contributor may
42 make a contribution to any candidate or political committee and no
43 candidate or political committee may accept any contribution from any
44 contributor, which is in the aggregate amount greater than: (i) in the
45 case of any election for party position, or for nomination to public
46 office, the product of the total number of enrolled voters in the candi-
47 date's party in the district in which he or she is a candidate, exclud-
48 ing voters in inactive status, multiplied by $.05, and (ii) in the case
49 of any election for a public office, the product of the total number of
50 registered voters in the district, excluding voters in inactive status,
51 multiplied by $.05, however in the case of a nomination within the city
52 of New York for the office of mayor, public advocate or comptroller,
53 such amount shall be not [less] more than [four] two thousand four
54 hundred dollars [nor more than twelve thousand dollars] as increased or
55 decreased by the cost of living adjustment described in paragraph c of
56 this subdivision; in the case of an election within the city of New York
A. 10927 18
1 for the office of mayor, public advocate or comptroller, [twenty-five]
2 two thousand four hundred dollars as increased or decreased by the cost
3 of living adjustment described in paragraph c of this subdivision; in
4 the case of a nomination for state senator, [four] two thousand four
5 hundred dollars as increased or decreased by the cost of living adjust-
6 ment described in paragraph c of this subdivision; in the case of an
7 election for state senator, [six] two thousand [two] four hundred
8 [fifty] dollars as increased or decreased by the cost of living adjust-
9 ment described in paragraph c of this subdivision; in the case of an
10 election or nomination for a member of the assembly, [twenty-five] two
11 thousand four hundred dollars as increased or decreased by the cost of
12 living adjustment described in paragraph c of this subdivision; [but in
13 no event shall any such maximum exceed fifty thousand dollars or be less
14 than one thousand dollars;] provided however, that the maximum amount
15 which may be so contributed or accepted, in the aggregate, from any
16 candidate's child, parent, grandparent, brother and sister, and the
17 spouse of any such persons, shall not exceed in the case of any election
18 for party position or nomination for public office an amount equivalent
19 to the number of enrolled voters in the candidate's party in the
20 district in which he or she is a candidate, excluding voters in inactive
21 status, multiplied by $.25 and in the case of any election to public
22 office, an amount equivalent to the number of registered voters in the
23 district, excluding voters in inactive status, multiplied by $.25; or
24 twelve hundred fifty dollars, whichever is greater, or in the case of a
25 nomination or election of a state senator, twenty thousand dollars,
26 whichever is greater, or in the case of a nomination or election of a
27 member of the assembly, twelve thousand five hundred dollars, whichever
28 is greater, but in no event shall any such maximum exceed one hundred
29 thousand dollars.
30 § 18. Section 14-130 of the election law, as added by chapter 152 of
31 the laws of 1985, is amended to read as follows:
32 § 14-130. Campaign funds for personal use. 1. Contributions received
33 by a candidate or a political committee may only be expended for [any
34 lawful purpose. Such funds shall not be converted by any person to a
35 personal use which is unrelated to a political campaign or the holding
36 of a public office or party position] bona fide purposes directly
37 related to either:
38 a. promoting the nomination or election of a candidate; or
39 b. performing those duties of public office or party position which
40 are not paid for or eligible for reimbursement by the state or any poli-
41 tical subdivision or private party.
42 2. Permissible ordinary and necessary expenses relating to the holding
43 of public office or party position shall include:
44 a. production and circulation of flyers or other written materials
45 related to duties of officeholder; the placement of holiday greetings
46 and congratulatory ads and memorial notices in local newspapers, maga-
47 zines, journals or other publication;
48 b. sponsorship or hosting of community meetings; tickets or donations
49 to local charitable, non-profit or political events, organizations or
50 activities that promote the welfare of constituents or political
51 campaigns;
52 c. incidental expenditures for the operation of legislative offices,
53 including purchase of items such as memorial or get-well gifts, flowers
54 or similar items of nominal value for constituents or others;
A. 10927 19
1 d. membership in organizations related to official duties and costs of
2 attending informational meetings attended in connection with such
3 duties; and
4 e. travel related to duties of office, provided that the travel is not
5 undertaken for any purpose resulting in a personal or financial benefit
6 to the candidate or officeholder. If such expenses involve both personal
7 activity and campaign or official activities, the incremental expenses
8 associated with the personal activities are personal uses unless the
9 campaign is reimbursed for such sums from other than campaign funds
10 within thirty days of the expenditure.
11 Nothing in this section shall prohibit a candidate from purchasing
12 office equipment with personal funds and leasing or renting such equip-
13 ment or property to a committee working with or for the candidate,
14 provided the candidate or the campaign treasurer sign a written lease or
15 rental agreement and files it with the appropriate required campaign
16 financial filing which shall include the lease or rental price which
17 shall not exceed the fair lease or rental value of the equipment or in
18 the aggregate exceed the cost of its purchase.
19 3. Campaign funds shall not be converted to personal use, which shall
20 be defined as expenditures that:
21 a. are for the personal benefit of or to defray normal living expenses
22 of the candidate, officeholder, immediate family or partner of either or
23 any other person;
24 b. are used to fulfill any commitment, obligation, or expense that
25 would exist irrespective of the candidate's campaign or duties as an
26 officeholder; or
27 c. are put to any use for which the candidate or officeholder would be
28 required to treat the amount of the expenditure as gross income under
29 section 61 of the Internal Revenue Code.
30 4. Expenditures for personal use shall also include, but are not
31 limited to, expenditures for:
32 a. residential or household items, supplies, maintenance or other
33 expenditures, including mortgage, rent, utilities, repairs, or improve-
34 ments for any part of any personal residence of a candidate or office-
35 holder, his or her immediate family or partner;
36 b. rent or utility payments that exceed fair market value for use of
37 any part of any non-residential property owned by a candidate, or a
38 member of a candidate's family or partner used for campaign purposes;
39 c. salary and other fees for bona fide services to a campaign or
40 legislative office that exceed fair and reasonable market value of such
41 services;
42 d. interest or any other finance charges for monies loaned to the
43 campaign by the candidate or the spouse or partner of such candidate;
44 e. tuition payments;
45 f. dues, fees, or gratuities at private clubs, recreational facilities
46 or other nonpolitical organizations, unless connected to a specific
47 widely attended fundraising event that takes place on the organization's
48 premises;
49 g. automobile purchases or long term leases; short term car rentals
50 and cellular equipment and services not used exclusively for campaign
51 purposes or duties as an officeholder;
52 h. admission to sporting events, concerts, theaters, or other forms of
53 entertainment, unless part of a specific campaign or officeholder
54 related activity; and
55 i. payment of any fines, fees, or penalties assessed pursuant to this
56 chapter.
A. 10927 20
1 5. No campaign funds shall be used to pay attorney's fees or any costs
2 of defending against any civil or criminal investigation or prosecution
3 for alleged violations of state or federal law alleged to have been
4 committed while holding public office or as a candidate for office where
5 the candidate or public or party official, members of their immediate
6 families or partners or the campaign is the target of such investigation
7 or prosecution unless such expenditure is used exclusively for costs
8 related to civil or criminal actions for alleged violations related to
9 activities promoting the nomination or election of a candidate.
10 § 19. The election law is amended by adding a new section 14-132 to
11 read as follows:
12 § 14-132. Disposition of campaign funds. 1. An authorized continuing
13 candidate committee must dispose of all funds and close within two years
14 after the later of (a) the end of the individual's most recent term of
15 office, or (b) the date of the election in which the individual last was
16 a filed candidate.
17 2. Any candidate or political committee required to dispose of funds
18 pursuant to this section shall, at the option of the candidate, or the
19 treasurer of a political committee formed solely to promote the passage
20 or defeat of a ballot proposal, dispose of such funds by any of the
21 following means, or any combination thereof:
22 a. returning, pro rata, to each contributor the funds that have not
23 been spent or obligated;
24 b. donating the funds to a charitable organization or organizations
25 that meet the qualifications of section 501(c)(3) of the Internal Reven-
26 ue Code;
27 c. donating the funds to the state university;
28 d. donating the funds to the state's general fund;
29 e. transferring the funds to a political party committee registered
30 with the state board of elections; or
31 f. contributing the funds to a candidate or political committee such
32 that this does not exceed the limits set forth in section 14-114 of this
33 title.
34 3. No candidate or political committee shall dispose of campaign funds
35 by making expenditures for personal use as defined in section 14-130 of
36 this title.
37 4. Upon the death of a candidate, former candidate or holder of elec-
38 tive office, who received campaign contributions, all contributions
39 shall be disposed of according to this section within twelve months of
40 the death of the candidate.
41 § 20. Subdivision 1 of section 14-102 of the election law, as amended
42 by chapter 8 and redesignated by chapter 9 of the laws of 1978, is
43 amended to read as follows:
44 1. The treasurer of every political committee which, or any officer,
45 member or agent of any such committee who, in connection with any
46 election, receives or expends any money or other valuable thing or
47 incurs any liability to pay money or its equivalent shall file state-
48 ments sworn, or subscribed and bearing a form notice that false state-
49 ments made therein are punishable as a class A misdemeanor pursuant to
50 section 210.45 of the penal law, at the times prescribed by this [arti-
51 cle] title setting forth all the receipts, contributions to and the
52 expenditures by and liabilities of the committee, and of its officers,
53 members and agents in its behalf. Such statements shall include the
54 dollar amount of any receipt, contribution or transfer, or the fair
55 market value of any receipt, contribution or transfer, which is other
56 than of money, the name and address of the transferor, contributor or
A. 10927 21
1 person from whom received, if the contributor is a lobbyist registered
2 pursuant to article one-A of the legislative law and if the transferor,
3 contributor or person is a political committee; the name of and the
4 political unit represented by the committee, the date of its receipt,
5 the dollar amount of every expenditure, the name and address of the
6 person to whom it was made or the name of and the political unit repres-
7 ented by the committee to which it was made and the date thereof, and
8 shall state clearly the purpose of such expenditure. Any statement
9 reporting a loan shall have attached to it a copy of the evidence of
10 indebtedness. Expenditures in sums under fifty dollars need not be
11 specifically accounted for by separate items in said statements, and
12 receipts and contributions aggregating not more than ninety-nine
13 dollars, from any one contributor need not be specifically accounted for
14 by separate items in said statements, provided however, that such
15 expenditures, receipts and contributions shall be subject to the other
16 provisions of section 14-118 of this [article] title.
17 § 21. Subdivision 3 of section 3-100 of the election law, as amended
18 by chapter 220 of the laws of 2005, is amended to read as follows:
19 3. The commissioners of the state board of elections shall have no
20 other public employment. The commissioners shall receive an annual sala-
21 ry of twenty-five thousand dollars, within the amounts made available
22 therefor by appropriation. The board shall, for the purposes of sections
23 seventy-three and seventy-four of the public officers law, be a "state
24 agency", and such commissioners shall be "officers" of the state board
25 of elections for the purposes of such sections. Within the amounts made
26 available by appropriation therefor, the state board of elections shall
27 appoint two co-executive directors, [counsel] an enforcement counsel, a
28 deputy enforcement counsel, who shall be a member of a different major
29 political party than the enforcement counsel, a special counsel, a depu-
30 ty special counsel, who shall be a member of a different major political
31 party than the special counsel, a director of election operations, a
32 deputy director of election operations, who shall be a member of a
33 different major political party than the director of election oper-
34 ations, a director of public information, a deputy director of public
35 information, who shall be a member of a different major political party
36 than the director of public information and such other staff members as
37 are necessary in the exercise of its functions, and may fix their
38 compensation. [Anytime after the effective date of the chapter of the
39 laws of two thousand five which amended this subdivision, the] The
40 commissioners or, in the case of a vacancy on the board, the commission-
41 er of each of the major political parties shall appoint one co-executive
42 director. Each co-executive director shall serve a term of four years.
43 The enforcement counsel and the special counsel shall each serve a term
44 of four years and may only be removed for cause. Any time after the
45 effective date of the chapter of the laws of two thousand ten amending
46 this subdivision, the commissioners, or in the case of a vacancy on the
47 board, the commissioner, of each of the same major political party as
48 the incumbent enforcement counsel, deputy enforcement counsel, special
49 counsel, deputy special counsel, director of election operations, deputy
50 director of election operations, director of public information and
51 deputy director of public information, shall appoint such counsels,
52 directors and deputies. Any vacancy in the office of co-executive direc-
53 tor, enforcement counsel, deputy enforcement counsel, special counsel,
54 deputy special counsel, director of election operations, deputy director
55 of election operations, director of public information and deputy direc-
56 tor of public information, shall be filled by the commissioners or, in
A. 10927 22
1 the case of a vacancy on the board, the commissioner of the same major
2 political party as the vacating incumbent for the remaining period of
3 the term of such vacating incumbent, for the remaining period of the
4 term of such vacating incumbent.
5 § 22. Subdivision 3, paragraph (c) of subdivision 9-A and subdivision
6 17 of section 3-102 of the election law, subdivisions 3 and 17 as
7 amended by chapter 9 of the laws of 1978, paragraph (c) of subdivision
8 9-A as added by chapter 430 of the laws of 1997 and subdivision 17 as
9 renumbered by chapter 23 of the laws of 2005, are amended to read as
10 follows:
11 3. conduct any investigation necessary to carry out the provisions of
12 this chapter, provided, however, that the state board of elections
13 enforcement counsel, established pursuant to section 3-104 of this arti-
14 cle, shall conduct any investigation necessary to enforce the provisions
15 of article fourteen of this chapter on behalf of the board of elections;
16 (c) establish [a] an educational and training program on all reporting
17 requirements including but not limited to the electronic reporting proc-
18 ess and make it easily and readily available to any such candidate or
19 committee and notify any such candidate or committee of the availability
20 of the most recent campaign finance handbook;
21 17. hear and consider the recommendations of the state board of
22 elections enforcement counsel regarding the enforcement of violations of
23 article fourteen of this chapter;
24 18. perform such other acts as may be necessary to carry out the
25 purposes of this chapter.
26 § 23. Section 3-104 of the election law, subdivisions 1, 3, 4 and 5 as
27 redesignated and subdivision 2 as amended by chapter 9 of the laws of
28 1978, is amended to read as follows:
29 § 3-104. State board of elections and the state board of elections
30 enforcement counsel; enforcement powers. 1. (a) There shall be a unit
31 known as the state board of elections enforcement unit established with-
32 in the state board of elections. The head of such unit shall be the
33 enforcement counsel.
34 (b) The state board of elections shall have jurisdiction of, and be
35 responsible for, the execution and enforcement of the provisions of
36 [article fourteen of this chapter and other] statutes governing
37 campaigns, elections and related procedures; provided however that the
38 enforcement counsel shall have sole authority within the state board of
39 elections to investigate on his or her own initiative or upon complaint,
40 alleged violations of article fourteen of this chapter and all
41 complaints alleging article fourteen violations shall be forwarded to
42 the enforcement unit. Nothing in this section shall be construed to
43 diminish or alter the state board of elections' jurisdiction pursuant to
44 this chapter.
45 2. Whenever [the state board of elections or other] a local board of
46 elections shall determine, on its own initiative or upon complaint, or
47 otherwise, that there is substantial reason to believe a violation of
48 this chapter or any code or regulation promulgated thereunder has
49 [occurred] been committed by a candidate or political committee that
50 files statements or is required to do so pursuant to article fourteen of
51 this chapter solely with such local board, it shall expeditiously make
52 an investigation which shall also include investigation of reports and
53 statements made or failed to be made by the complainant and any poli-
54 tical committee supporting his candidacy if the complainant is a candi-
55 date or, if the complaint was made by an officer or member of a poli-
56 tical committee, of reports and statements made or failed to be made by
A. 10927 23
1 such political committee and any candidates supported by it. [The state
2 board of elections, in lieu of making such an investigation, may direct
3 the appropriate board of elections to make an investigation.] The state
4 board of elections may request, and shall receive, the assistance of the
5 state police in any investigation it shall conduct.
6 3. [If, after an investigation, the state or other board of elections
7 finds reasonable cause to believe that a violation warranting criminal
8 prosecution has taken place, it shall forthwith refer the matter to the
9 district attorney of the appropriate county and shall make available to
10 such district attorney all relevant papers, documents, testimony and
11 findings relevant to its investigation.
12 4. The state or other board of elections may, where appropriate,
13 commence a judicial proceeding with respect to the filing or failure to
14 file any statement of receipts, expenditures, or contributions, under
15 the provisions of this chapter, and the state board of elections may
16 direct the appropriate other board of elections to commence such
17 proceeding.
18 5.] If the enforcement counsel determines that a violation of subdi-
19 vision one of section 14-126 of this chapter has occurred which could
20 warrant a civil penalty, the enforcement counsel shall, upon his or her
21 discretion, seek to resolve the matter extra-judicially or commence a
22 special proceeding in the supreme court pursuant to section 16-114 of
23 this chapter.
24 4. Upon receipt of a complaint and supporting information or an inter-
25 nal referral from the enforcement unit alleging any other violation of
26 article fourteen of this chapter, the enforcement counsel shall analyze
27 the facts and the law relevant to such complaint or referral to deter-
28 mine if an investigation should be undertaken. The enforcement counsel
29 shall, if necessary, request additional information from the complainant
30 to assist such counsel in making this determination. Such analysis shall
31 include the following: first, whether the allegations, if true, would
32 constitute a violation of article fourteen of this chapter and, second,
33 whether the allegations are supported by credible evidence.
34 5. If the enforcement counsel determines that the allegations
35 contained in a complaint, if true, would not constitute a violation of
36 article fourteen of this chapter or that the allegations are not
37 supported by credible evidence, he or she shall: (a) notify the deputy
38 enforcement counsel of such determination and (b) publicly notify the
39 state board of elections of such determination. If the state board of
40 elections publicly determines, as provided in this title, that the alle-
41 gations, if true, would constitute a violation of article fourteen of
42 this chapter and that the allegations appear to be supported by credible
43 evidence, it shall direct that the enforcement counsel conduct an inves-
44 tigation. Lacking such a determination, the enforcement counsel shall
45 issue a letter to the complainant dismissing the complaint.
46 6. If the enforcement counsel determines that the allegations, if
47 true, would constitute a violation of article fourteen of this chapter
48 and that the allegations appear to be supported by credible evidence, he
49 or she shall: (a) notify the deputy enforcement counsel of (i) his or
50 her intent to resolve the matter extra-judicially due to the de minimus
51 nature of the violation; or (ii) his or her intent to commence an inves-
52 tigation, and (b) publicly notify the state board of elections of such
53 intent no later than the board's next regularly scheduled meeting.
54 Notification shall summarize the relevant facts and the applicable law
55 and shall, to the extent possible, protect from public disclosure the
56 identity of the complainant and the individual subject to the complaint.
A. 10927 24
1 The deputy enforcement counsel shall have the opportunity to review the
2 entire file of any preliminary investigation conducted by the enforce-
3 ment counsel a minimum of ten days prior to said regularly scheduled
4 meeting of the board and to submit a public, written concurrence with or
5 dissent from the enforcement counsel's proposal.
6 7. If, upon considering the enforcement counsel's notice of intent to
7 commence an investigation and the deputy enforcement counsel's recommen-
8 dation, the state board of elections believes that the allegations, if
9 true, would not constitute a violation of article fourteen of this chap-
10 ter, or the allegations are not supported by credible evidence or, that
11 on balance, the equities favor a dismissal of the complaint, the board
12 shall publicly direct that an investigation not be undertaken no later
13 than sixty days after the receipt of notification from the enforcement
14 counsel of his or her intent to commence an investigation. In determin-
15 ing whether the equities favor a dismissal of the complaint, the state
16 board of elections shall consider the following factors: (a) whether the
17 complaint alleges a de minimus violation of article fourteen of this
18 chapter; (b) whether the subject of the complaint has made a good faith
19 effort to correct the violation; and (c) whether the subject of the
20 complaint has a history of similar violations. Determinations of the
21 state board of elections to dismiss a complaint and not proceed with a
22 formal investigation shall be voted upon as provided in subdivision four
23 of section 3-100 of this title at an open meeting pursuant to article
24 seven of the public officers law, and shall be made on a fair and equi-
25 table basis and without regard to the status of the subject of the
26 complaint.
27 8. Absent a timely determination by the state board of elections that
28 an investigation shall not be undertaken, the enforcement counsel shall
29 commence an investigation on a timely basis. If the enforcement counsel
30 determines that additional investigative powers, as provided for in
31 subdivisions four, five and six of section 3-102 of this title, are
32 needed to complete the counsel's investigation, he or she shall request
33 such additional powers from the state board of elections. Such powers
34 shall be granted by the board in public only when the board finds that
35 further investigation is warranted and justified.
36 9. At the conclusion of its investigation, the enforcement counsel
37 shall provide the deputy enforcement counsel and the state board of
38 elections with a written recommendation as to: (a) whether substantial
39 reason exists to believe a violation of article fourteen of this chapter
40 has occurred and, if so, the nature of the violation and any applicable
41 penalty, as defined in section 14-126 of this chapter, based on the
42 nature of the violation; (b) whether the matter should be resolved
43 extra-judicially; (c) whether a special proceeding should be commenced
44 in the supreme court to recover a civil penalty; and (d) whether a
45 referral should be made to a district attorney pursuant to subdivision
46 eleven of this section because reasonable cause exists to believe a
47 violation warranting criminal prosecution has taken place. The deputy
48 enforcement counsel shall have the opportunity to review the entire file
49 of any investigation conducted by the enforcement counsel a minimum of
50 ten days prior to said regularly scheduled meeting of the board and to
51 submit a public, written concurrence with or dissent from the enforce-
52 ment counsel's recommendation.
53 10. The state board of elections shall accept, modify or reject the
54 enforcement counsel's recommendation no later than sixty days after
55 receipt of such recommendation. In making its determination, the board
56 shall again consider: (a) whether the complaint alleges a de minimus
A. 10927 25
1 violation of article fourteen of this chapter; (b) whether the subject
2 of the complaint has made a good faith effort to correct the violation;
3 and (c) whether the subject of the complaint has a history of similar
4 violations. All such determinations shall be voted upon as provided in
5 subdivision four of section 3-100 of this title at an open meeting
6 pursuant to article seven of the public officers law, and shall be made
7 on a fair and equitable basis, without regard to the status of the
8 subject of the complaint.
9 11. (a) If the state board of elections determines, as provided in
10 subdivision ten of this section, that substantial reason exists to
11 believe that a person, acting as or on behalf of a candidate or poli-
12 tical committee under circumstances evincing an intent to violate such
13 law, has unlawfully accepted a contribution in excess of a contribution
14 limitation established in article fourteen of this chapter, which could
15 warrant a civil penalty as provided for in subdivision three of section
16 14-126 of this chapter, the board shall direct the commencement of a
17 special proceeding in the supreme court.
18 (b) If the state board of elections determines, as provided in subdi-
19 vision ten of this section that reasonable cause exists to believe a
20 violation warranting criminal prosecution has taken place, the board
21 shall refer the matter to a district attorney and shall make available
22 to such district attorney all papers, documents, testimony and findings
23 relevant to its investigation.
24 12. Upon notification that a special proceeding has been commenced by
25 a party other than the state board of elections, pursuant to section
26 16-114 of this chapter, the state board of elections shall direct the
27 enforcement counsel to investigate the alleged violations unless other-
28 wise directed by the court.
29 13. The enforcement counsel shall prepare a report, to be included in
30 the annual report to the governor and legislature, summarizing the
31 activities of the unit during the previous year. Such report shall
32 include: (a) the number of complaints received; (b) the number of
33 complaints that were found to need investigation and the nature of each
34 complaint; and (c) the number of matters that have been resolved. The
35 report shall not contain any information for which disclosure is not
36 permitted.
37 14. The state board of elections may promulgate rules and regulations
38 consistent with law to effectuate the provisions of this section.
39 § 24. The state of New York shall appropriate during each fiscal year
40 to the New York state board of elections enforcement unit, not less than
41 thirty-five percent of the appropriation available from the general fund
42 for the state board of elections to pay for the expenses of such
43 enforcement unit.
44 § 25. Severability. If any clause, sentence, subdivision, paragraph,
45 section or part of title II of article 14 of the election law, as added
46 by section nineteen of this act be adjudged by any court of competent
47 jurisdiction to be invalid, such judgment shall not affect, impair or
48 invalidate the remainder thereof, but shall be confined in its operation
49 to the clause, sentence, subdivision, paragraph, section or part thereof
50 directly involved in the controversy in which such judgment shall have
51 been rendered.
52 § 26. This act shall take effect immediately; provided, however, all
53 state candidates and constitutional convention delegates will be eligi-
54 ble to participate in the public financing system beginning with the
55 2014 election and state legislature candidates will be eligible to
A. 10927 26
1 participate in the public financing system beginning with the 2016
2 election.
