Amd El L, generally; add S92-t, St Fin L; amd S658, Tax L
Enacts the "2013 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.
STATE OF NEW YORK
________________________________________________________________________
4009
2013-2014 Regular Sessions
IN SENATE
March 4, 2013
___________
Introduced by Sen. ADAMS -- read twice and ordered printed, and when
printed to be committed to the Committee on Elections
AN ACT enacting the "2013 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 "2013 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 four new
14 subdivisions 12, 13, 14 and 15 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09405-01-3
S. 4009 2
1 (c) the identity of the candidate is apparent by unambiguous refer-
2 ence.
3 13. "general public audience" means an audience composed of members of
4 the public, including a targeted subgroup of members of the public;
5 provided, however, it does not mean an audience solely comprised of
6 members, retirees and staff of a labor organization or their immediate
7 family members or an audience solely comprised of employees of a busi-
8 ness entity.
9 14. "labor organization" means any organization of any kind which
10 exists for the purpose, in whole or in part, of representing employees
11 employed within the state of New York in dealing with employers or
12 employer organizations or with a state government, or any political or
13 civil subdivision or other agency thereof, concerning terms and condi-
14 tions of employment, grievances, labor disputes, or other matters inci-
15 dental to the employment relationship. For the purposes of this arti-
16 cle, each local, parent national or parent international organization of
17 a statewide labor organization, and each statewide federation receiving
18 dues from subsidiary labor organizations, shall be considered a separate
19 labor organization.
20 15. "Intermediary" means an individual, corporation, partnership,
21 political committee, employee organization, or other entity which, other
22 than in the regular course of business as a postal, delivery, or messen-
23 ger service, delivers any contribution from another person or entity to
24 a candidate or an authorized committee. "Intermediary" shall not
25 include spouses, parents, children, or siblings of the person making
26 such contribution.
27 § 5. Section 14-106 of the election law, as amended by section 2 of
28 part E of chapter 399 of the laws of 2011, is amended to read as
29 follows:
30 § 14-106. Political communication. The statements required to be filed
31 under the provisions of this [article] title next succeeding a primary,
32 general or special election shall be accompanied by a copy of all broad-
33 cast, cable or satellite schedules and scripts, internet, print and
34 other types of advertisements, pamphlets, circulars, flyers, brochures,
35 letterheads and other printed matter purchased or produced, and reprod-
36 uctions of statements or information conveyed to five hundred or more
37 members of a general public audience by computer or other electronic
38 means, purchased in connection with such election by or under the
39 authority of the person filing the statement or the committee or the
40 person on whose behalf it is filed, as the case may be. Such copies,
41 schedules and scripts shall be preserved by the officer with whom or the
42 board with which it is required to be filed for a period of one year
43 from the date of filing thereof.
44 § 6. The election law is amended by adding a new section 14-107 to
45 read as follows:
46 § 14-107. Independent expenditure reporting. 1. For purposes of this
47 title:
48 (a) "Independent expenditure" means an expenditure made by a person
49 for an audio or video communication to a general public audience via
50 broadcast, cable or satellite or a written communication to a general
51 public audience via advertisements, pamphlets, circulars, flyers,
52 brochures, letterheads or other printed matter and statements or infor-
53 mation conveyed to five hundred or more members of a general public
54 audience by computer or other electronic devices which: (i) expressly
55 advocates the election or defeat of a clearly identified candidate or
56 the success or defeat of a ballot proposal and (ii) such candidate, the
S. 4009 3
1 candidate's political committee or its agents, or a political committee
2 formed to promote the success or defeat of a ballot proposal or its
3 agents, did not authorize, request, suggest, foster or cooperate in any
4 such communication.
5 (b) Independent expenditures do not include:
6 (i) a communication appearing in a written news story, commentary, or
7 editorial or distributed through the facilities of any broadcasting
8 station, cable or satellite unless such publication or facilities are
9 owned or controlled by any political party, political committee or
10 candidate; or
11 (ii) a communication that constitutes a candidate debate or forum; or
12 (iii) a communication which constitutes an expenditure made by an
13 entity required to report such expenditure with a board of elections.
14 (c) "Electioneering communication" means a communication that: (i) is
15 disseminated by means of a radio, television, cable, or satellite broad-
16 cast, a paid advertisement such as in a periodical or on a billboard, or
17 a mass mailing; (ii) is disseminated within thirty days of a covered
18 primary or special election, or within sixty days of a covered general
19 election; and (iii) refers to one or more clearly identified ballot
20 proposals and/or candidates for a covered election. Electioneering
21 communication shall not include a candidate-related communication made
22 by an organization operating and remaining in good standing under
23 Section 501(c)(3) of the Internal Revenue Code of 1986.
24 (d) For the purposes of this section, the term "mass mailing" means a
25 mailing by United States mail, common carrier, or facsimile of more than
26 five hundred pieces of mail matter of an identical or substantially
27 similar nature within any thirty-day period.
28 (e) For purposes of this section, the term "person" shall mean person,
29 group of persons, entity, organization, corporation or association.
30 (f) For purposes of this section, the term "independent spender" shall
31 mean an individual or entity that makes an independent expenditure.
32 2. Whenever any person makes one or more independent expenditures that
33 in the aggregate exceeds one thousand dollars in any calendar year, such
34 communication described in subdivision one of this section shall clearly
35 state, with respect to communications regarding candidates, that the
36 communication is not authorized by any candidate, any candidate's poli-
37 tical committee or any of its agents. A knowing and willful violation
38 of the provisions of this subdivision shall subject the person to a
39 civil penalty equal to one thousand dollars or the cost of the communi-
40 cation, whichever is greater, in a special proceeding or civil action
41 brought by the state board of elections.
42 3. (a) Any person which makes independent expenditures or electioneer-
43 ing communications that cost more than one thousand dollars in the
44 aggregate shall report such independent expenditures or electioneering
45 communications to the state board of elections in the manner specified
46 in section 14-108 of this title.
47 (b) Any independent expenditure or electioneering communication made
48 after the close of the period to be covered in the last statement filed
49 before any primary, general or special election, but before such
50 election, shall be reported within twenty-four hours in the same manner
51 as provided for in subdivision two of section 14-108 of this title.
52 4. Each such statement shall include:
53 (a) the name and address of the person making the statement;
54 (b) the name, address, occupation, and employer of the person making
55 the independent expenditure or electioneering communication;
S. 4009 4
1 (c) the name, address, occupation, and employer of any person or enti-
2 ty providing a gift, loan, advance or deposit of one hundred dollars or
3 more for the independent expenditure or electioneering communication, or
4 the provision of services for the same, and the date it was given;
5 provided, however, the name and address of a member of a labor organiza-
6 tion is not required for a gift, loan, advance or deposit of one hundred
7 dollars or more to a labor organization or a labor organization poli-
8 tical action committee;
9 (d) the dollar amount paid for each independent expenditure or electi-
10 oneering communication, the name and address of the person or entity
11 receiving the payment, the date the payment was made and a description
12 of the independent expenditure or electioneering communication; and
13 (e) the election to which the independent expenditure or electioneer-
14 ing communication pertains and the name of the clearly identified candi-
15 date or the ballot proposal referenced.
16 5. Any report made pursuant to this section shall include a copy of
17 all materials that pertain to the independent expenditure or electio-
18 neering communication, including but not limited to broadcast, cable or
19 satellite schedule and scripts, advertisements, pamphlets, circulars,
20 flyers, brochures, letterheads and other printed matter.
21 6. Any report of a loan that is made for an independent expenditure or
22 electioneering communication shall include written evidence of the
23 indebtedness.
24 7. Contributions:
25 (a) When an independent spender that is an entity makes covered
26 expenditures of one hundred dollars or more aggregating five thousand
27 dollars or more in the twelve months preceding the election for communi-
28 cations that refer to any single candidate, it is required to report:
29 (i) All contributions accepted from other entities since the first day
30 of the calendar year preceding the year of the covered election; and
31 (ii) All contributions aggregating one thousand dollars or more
32 accepted from an individual during the twelve months preceding the
33 election.
34 (b) Each contributions shall be disclosed in the reporting period in
35 which it was received. The independent spender shall provide:
36 (i) For each contribution accepted from another entity, the entity's
37 name, address, and type of organization;
38 (ii) For each contribution accepted from an individual, the individ-
39 ual's name, address, occupation, and employer information;
40 (iii) For each contribution the date of receipt and amount of each
41 such contribution accepted; and
42 (iv) For each contribution such other similar information as the state
43 board of elections may require.
44 (c) Contributions that are earmarked for an election that is not a
45 covered election, or for an explicitly stated non-electoral purpose, are
46 not required to be reported; provided, however that records of these
47 contributions must be maintained and may be requested by the state board
48 of elections to verify their qualification for this exemption.
49 8. Every statement required to be filed pursuant to this section shall
50 be filed by electronic reporting process or overnight mail to the state
51 board of elections.
52 9. The state board of elections shall promulgate regulations with
53 respect to the statements required to be filed by this section and shall
54 provide forms suitable for such statements.
55 § 7. Section 14-112 of the election law, as amended by chapter 930 of
56 the laws of 1981, is amended to read as follows:
S. 4009 5
1 § 14-112. Political committee authorization statement. Any political
2 committee aiding or taking part in the election or nomination of any
3 candidate, other than by making contributions, shall file, in the office
4 in which the statements of such committee are to be filed pursuant to
5 this [article] title, either a sworn verified statement by the treasurer
6 of such committee that the candidate has authorized the political
7 committee to aid or take part in his election or that the candidate has
8 not authorized the committee to aid or take part in his election.
9 § 8. Section 14-126 of the election law, as amended by section 3 of
10 part E of chapter 399 of the laws of 2011, is amended to read as
11 follows:
12 § 14-126. Violations; penalties. 1. Any person who fails to file a
13 statement required to be filed by this [article] title shall be subject
14 to a civil penalty, not in excess of one thousand dollars, to be recov-
15 erable in a special proceeding or civil action to be brought by the
16 state board of elections or other board of elections. Any person who,
17 three or more times within a given election cycle for such term of
18 office, fails to file a statement or statements required to be filed by
19 this [article] title, shall be subject to a civil penalty, not in excess
20 of ten thousand dollars, to be recoverable as provided for in this
21 subdivision.
22 2. Any person who knowingly and willfully fails to identify independ-
23 ent expenditures as required by subdivision two of section 14-107 of
24 this title or knowingly and willfully fails to file the statement
25 required by subdivision two of section 14-112 of this title shall be
26 subject to a civil penalty in a special proceeding or civil action
27 brought by the state board of elections.
28 3. Any person who, acting as or on behalf of a candidate or political
29 committee, under circumstances evincing an intent to violate such law,
30 unlawfully accepts a contribution in excess of a contribution limitation
31 established in this [article] title, shall be required to refund such
32 excess amount and shall be subject to a civil penalty equal to the
33 excess amount plus a fine of up to ten thousand dollars, to be recovera-
34 ble in a special proceeding or civil action to be brought by the state
35 board of elections.
36 [3.] 4. Any person who knowingly and willfully fails to file a state-
37 ment required to be filed by this [article] title within ten days after
38 the date provided for filing such statement or any person who knowingly
39 and willfully violates any other provision of this [article] title shall
40 be guilty of a misdemeanor.
41 [4.] 5. Any person who knowingly and willfully contributes, accepts or
42 aids or participates in the acceptance of a contribution in an amount
43 exceeding an applicable maximum specified in this [article] title shall
44 be guilty of a misdemeanor.
45 [5.] 6. Any person who shall, acting on behalf of a candidate or poli-
46 tical committee, knowingly and willfully solicit, organize or coordinate
47 the formation of activities of one or more unauthorized committees, make
48 expenditures in connection with the nomination for election or election
49 of any candidate, or solicit any person to make any such expenditures,
50 for the purpose of evading the contribution limitations of this [arti-
51 cle] title, shall be guilty of a class E felony.
52 § 9. Sections 14-100 through 14-132 of article 14 of the election law
53 are designated title 1 and a new title heading is added to read as
54 follows:
55 CAMPAIGN RECEIPTS AND EXPENDITURES
S. 4009 6
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. Limitations on the receipt of public funds.
11 14-212. Examinations and audits; repayments.
12 14-214. Civil penalties.
13 14-216. Debates.
14 § 14-200. Definitions. As used in this title, unless another meaning
15 is clearly indicated:
16 1. The term "state board" shall mean the state board of elections.
17 2. The term "eligible candidate" shall mean a candidate for nomination
18 or election to any of the offices of governor, lieutenant governor,
19 comptroller, attorney general, member of the state legislature, at-large
20 delegate to a constitutional convention or district delegate to a
21 constitutional convention.
22 3. The term "participating committee" shall mean a single political
23 committee which a candidate certifies is the committee that will solely
24 be used to participate in the public financing system established by
25 this title after January first of the year in which the primary, general
26 or special election is held for the public office sought. A multi-can-
27 didate committee may not be a participating committee.
28 4. The term "participating candidate" shall mean a candidate who is
29 eligible to participate in the optional public financing system estab-
30 lished by this title, has met the threshold for eligibility and has
31 elected to participate in the public financing system.
32 5. The term "matchable contributions" shall mean that portion of the
33 aggregate contributions made (a) in the case of a primary or general
34 election, after January first of the year in which the primary or gener-
35 al election is held for the public office sought or (b) in the case of a
36 special election, within six months of such election by natural persons
37 resident in the state of New York to a candidate for nomination or
38 election to any of the offices covered by the provisions of this title
39 which do not exceed one hundred seventy-five dollars, which have been
40 reported in full by the candidate's participating committee to the state
41 board, including the contributor's full name and residential address. A
42 loan may not be treated as a matchable contribution.
43 The following contributions are not matchable:
44 (i) in-kind contributions of property, goods, or services;
45 (ii) contributions in the form of the purchase price paid for an item
46 with significant intrinsic and enduring value;
47 (iii) contributions in the form of the purchase price paid for or
48 otherwise induced by a chance to participate in a raffle, lottery, or
49 similar drawing for valuable prizes;
50 (iv) money order contributions from any one contributor that are, in
51 the aggregate, greater than one hundred dollars;
52 (v) contributions from individuals under the age of eighteen years;
53 (vi) contributions from individual vendors to whom the participating
54 candidate or his or her principal committee makes an expenditure, in
55 furtherance of the nomination for election or election covered by the
S. 4009 7
1 candidate's certification, unless such expenditure is reimbursing an
2 advance; and
3 (vii) contribution from lobbyists registered pursuant to article one-A
4 of the legislative law.
5 6. The term "qualified campaign expenditure" shall mean an expenditure
6 for which public funds may be used.
7 7. The term "fund" shall mean the New York state campaign finance
8 fund.
9 8. The term "threshold for eligibility" shall mean the amount of total
10 matchable contributions that the participating committee of an otherwise
11 eligible candidate must receive, as required by section 14-202 of this
12 title, in order to qualify for optional public financing pursuant to
13 this title.
14 9. The term "contribution" shall have the same meaning as in subdivi-
15 sion nine of section 14-100 of this article.
16 10. The term "public funding limit" shall mean the total amount of
17 public funds that a participating candidate may receive for any primary
18 or general election.
19 § 14-202. Eligibility. 1. To be eligible for optional public financing
20 under this title, a candidate for nomination or election must:
21 (a) Meet all the requirements of this chapter and other provisions of
22 law to have his or her name on the ballot;
23 (b) Be a candidate for statewide office, the state legislature or
24 delegate to a constitutional convention at a primary, general or special
25 election and meet the threshold for eligibility set forth in subdivision
26 two of this section;
27 (c) Elect to participate in the public financing system established by
28 this title not later than seven days after the last day to file desig-
29 nating petitions for the office such candidate is seeking or, in the
30 case of a special election, not later than the last day to file nominat-
31 ing certificates for such office;
32 (d) Agree to obtain and furnish to the state board any evidence it may
33 reasonably request relating to his or her campaign expenditures or
34 contributions and furnish such other proof of compliance with this title
35 as may be requested by the state board;
36 (e) Have a single authorized political committee which he or she
37 certifies as the participating committee for the purposes of this title;
38 and
39 (f) Agree to identify accurately in all campaign materials the person
40 or entity that paid for such campaign material.
41 2. The threshold for eligibility for public funding for candidates in
42 a primary, general or special election for the following offices shall
43 be:
44 (a) Governor in a primary or general election. Not less than six
45 hundred fifty thousand dollars from at least six thousand five hundred
46 matchable contributions made up of sums of up to two hundred fifty
47 dollars per individual contributor who resides in New York state.
48 (b) Lieutenant governor in a primary election and comptroller or
49 attorney general in a primary or general election. Not less than two
50 hundred thousand dollars from at least two thousand matchable contrib-
51 utions made up of sums of up to two hundred fifty dollars per individual
52 contributor who resides in New York state.
53 (c) Members of the state senate in a primary, general or special
54 election. Not less than twenty-five thousand dollars from at least two
55 hundred fifty matchable contributions made up of sums of up to two
56 hundred fifty dollars per individual contributor who resides in New York
S. 4009 8
1 state including at least twelve thousand five hundred dollars from at
2 least one hundred twenty-five individual contributors who reside in the
3 senate district in which the seat is to be filled.
4 (d) Members of the assembly in a primary, general or special election.
5 Not less than ten thousand dollars from at least one hundred matchable
6 contributions made up of sums of up to two hundred fifty dollars per
7 individual contributor who resides in New York state including at least
8 five thousand dollars from at least fifty individuals who reside in the
9 assembly district in which the seat is to be filled.
10 (e) At-large delegate to a conditional convention in a primary or
11 general election. Not less than twenty thousand dollars from at least
12 two hundred matchable contributions made up of sums of up to two hundred
13 fifty dollars per individual contributor who resides in New York state.
14 (f) District delegate to a constitutional convention in a primary or
15 general election. Not less than five thousand dollars from at least
16 fifty matchable contributions made up of sums of up to two hundred fifty
17 dollars per individual contributor who resides in the district in which
18 the seat is to be filled.
19 3. In order to be eligible to receive public funds in a primary
20 election a candidate must agree, that in the event such candidate is a
21 candidate for such office in the general election in such year, that
22 such candidate will be bound by the provisions of this title.
23 4. Candidates who are contested in a primary election and who do not
24 seek public funds shall not be eligible for public funds for the general
25 election in that year. The provisions of this subdivision shall not
26 apply to candidates for the office of lieutenant governor.
27 5. Candidates who are unopposed in a general or special election shall
28 not be eligible to receive public funds.
29 6. No candidate for election to an office in a primary, general, or
30 special election who has elected to participate in the public financing
31 system shall be deemed opposed and receive public funds unless at least
32 one other candidate for such office in such election has also qualified
33 for the ballot.
34 § 14-204. Qualified campaign expenditures. 1. Public funds provided
35 under the provisions of this title may only be used for expenditures by
36 the participating committee authorized by the candidate to make expendi-
37 tures on such candidate's behalf, to further the candidate's nomination
38 or election after January first of the year in which the primary or
39 general election is held for the office sought, for services, materials,
40 facilities or other things of value used during that campaign cycle or,
41 in the case of a special election, for expenditures during the period
42 commencing three months before and ending one month after such special
43 election.
44 2. Such public funds may not be used for:
45 (a) An expenditure in violation of any law of the United States or of
46 this state;
47 (b) Payments for anything of value given or made to the candidate, a
48 relative of the candidate, or to a business entity in which any such
49 person has a ten percent or greater ownership interest or of which any
50 such person is an officer, director or employee, in excess of the fair
51 market value of the services, materials, facilities, or other things of
52 value received in exchange;
53 (c) Payment in excess of the fair market value of services, materials,
54 facilities or other things of value received in exchange;
55 (d) Any expenditure made after the participating candidate, or the
56 only remaining opponent of such candidate, has been disqualified or had
S. 4009 9
1 such candidate's petitions declared invalid by a board of elections or a
2 court of competent jurisdiction until and unless such finding is
3 reversed by a higher authority.
4 (e) Any expenditure made to challenge the validity of any petition of
5 designation or nomination or any certificate of nomination, acceptance,
6 authorization, declination or substitution;
7 (f) Expenditure for noncampaign related food, drink or entertainment;
8 and
9 (g) Gifts, except brochures, buttons, signs and other campaign materi-
10 al.
11 § 14-206. Optional public financing. 1. Participating candidates for
12 nomination or election in primary, general and special elections may
13 obtain payment to a participating committee from public funds for quali-
14 fied campaign expenditures. No such public funds shall be paid to a
15 participating committee until the candidate has qualified to appear on
16 the ballot and filed a sworn statement with the state board electing to
17 participate in the optional public financing system and agreeing to
18 abide by the requirements of this title. Payments shall not exceed the
19 amounts specified in this title, and shall be made only in accordance
20 with the provisions of this title. Such payments may only be made to a
21 participating candidate's participating committee. No public funds shall
22 be used except as reimbursement or payment for qualified campaign
23 expenditures actually and lawfully incurred or to repay loans used to
24 pay qualified campaign expenditures.
25 2. The participating committee of each participating candidate shall
26 be entitled to six dollars in public funds for each one dollar of match-
27 able contributions obtained and reported to the state board in accord-
28 ance with the provisions of this title, provided, however, such public
29 funds shall only be used for qualified campaign expenditures.
30 3. (a) No participating candidate for nomination for an office who is
31 unopposed in a primary election shall be entitled to payment from the
32 fund for qualified campaign expenditures.
33 (b) Where there is a contest in such primary for the nomination of at
34 least one other party for such office, the participating committee of an
35 unopposed participating candidate for nomination may raise and spend an
36 amount equal to one-half the expenditure limit for such office, as fixed
37 by this title for candidates who have elected to accept public funds,
38 with contributions of up to two thousand dollars per contributor. Such
39 payment can only be expended for property, services or facilities used
40 on or before the date of such primary election.
41 4. The state board shall promptly examine all reports of contributions
42 to determine whether they meet the requirements for matchable contrib-
43 utions, and shall keep a record of such contributions.
44 5. The state board shall promulgate regulations for the certification
45 of the amount of funds payable by the comptroller, from the fund estab-
46 lished pursuant to section ninety-two-t of the state finance law, to a
47 participating candidate that has qualified to receive such payment.
48 These regulations shall include the promulgation and distribution of
49 forms on which contributions and expenditures are to be reported, the
50 periods during which such reports must be filed and the verification
51 required. The state board shall institute procedures which will make
52 possible payment by the fund within four business days after receipt of
53 the required forms and verifications.
54 § 14-208. Contribution and receipt limitations. 1. In any primary,
55 special or general election for any statewide office, state legislative
56 office or constitutional convention delegate no contributor may make a
S. 4009 10
1 contribution to any participating candidate or such candidate's partic-
2 ipating committee, and no participating candidate or participating
3 committee may accept any contribution from any contributor which, in the
4 aggregate amount, is greater than two thousand dollars.
5 2. (a) Notwithstanding the expenditure limit for such office as fixed
6 by this title for candidates who have elected to accept public funds, a
7 participating candidate for governor or lieutenant governor in a primary
8 or general election or such candidate's participating committee may
9 accept from a state party committee which has nominated such candidate
10 services in an amount which, in the aggregate, does not exceed two
11 million five hundred thousand dollars; provided, however, that twenty-
12 five percent of such amount may be accepted in the form of a transfer.
13 (b) Notwithstanding the expenditure limit for such office as fixed by
14 this title for candidates who have elected to accept public funds, a
15 participating candidate for attorney general or comptroller in a primary
16 or general election or such candidate's participating committee may
17 accept from a state party committee which has nominated such candidate
18 services in an amount which, in the aggregate, does not exceed one
19 million dollars; provided, however, that twenty-five percent of such
20 amount may be accepted in the form of a transfer.
21 (c) Notwithstanding the expenditure limit for such office as fixed by
22 this title for candidates who have elected to accept public funds, a
23 participating candidate for state senator in a primary, general or
24 special election or such candidate's participating committee may accept
25 from a state party committee which has nominated such candidate,
26 services in an amount which, in the aggregate, does not exceed one
27 hundred thousand dollars; provided, however, that twenty-five percent of
28 such amount may be accepted in the form of a transfer.
29 (d) Notwithstanding the expenditure limit for such office as fixed by
30 this title for candidates who have elected to accept public funds, a
31 participating candidate for member of the assembly in a primary, general
32 or special election or such candidate's participating committee may
33 accept from a state party committee which has nominated such candidate,
34 services in an amount which, in the aggregate, does not exceed fifty
35 thousand dollars; provided, however, that twenty-five percent of such
36 amount may be accepted in the form of a transfer.
37 (e) Notwithstanding the expenditure limit for such office as fixed by
38 this title for candidates who have elected to accept public funds, a
39 participating candidate for delegate at-large to a constitutional
40 convention in a general election or such candidate's participating
41 committee may accept from a state party committee which has nominated
42 such candidate services in an amount which, in the aggregate, does not
43 exceed fifty thousand dollars; provided, however, that twenty-five
44 percent of such amount may be accepted in the form of a transfer.
45 (f) Notwithstanding the expenditure limit for such office as fixed by
46 this title for candidates who have elected to accept public funds, a
47 participating candidate for district delegate to a constitutional
48 convention in a general election or such candidate's participating
49 committee may accept from a state party committee which has nominated
50 such candidate, services in an amount which, in the aggregate, does not
51 exceed ten thousand dollars; provided, however, that twenty-five percent
52 of such amount may be accepted in the form of a transfer.
53 (g) For purposes of this subdivision, the term state party committee
54 includes any of its subcommittees.
55 3. Notwithstanding any expenditure limit in this subdivision, each
56 county committee of any party which nominates a candidate for statewide
S. 4009 11
1 office or state legislative office, including within the term county
2 committee any of its subcommittees, may expend in support of each such
3 candidate for statewide office of such party who has agreed to accept
4 public financing, an amount which shall not exceed the sum of two cents
5 for each voter registered in such county as determined by the records of
6 the appropriate board of elections as of the preceding general election.
7 4. In computing the aggregate amount expended for purposes of this
8 section, expenditures made by a state party committee or a county
9 committee in support of more than one candidate shall be allocated among
10 such candidates supported by the committee in accordance with formulas
11 promulgated by the state board or, in the absence of such official
12 formulas, in accordance with a formula based upon reasonable standards.
13 The statements filed by such party committee in accordance with this
14 chapter shall set forth, in addition to the other information required,
15 the total amount expended by the party committee on behalf of all such
16 candidates and the amount allocated to each candidate by dollar amount
17 and percentage. Expenditures by a party for activities which do not
18 support or oppose the election of any candidate or candidates by name or
19 by clear inference shall not be regarded as expenditures on behalf of or
20 in opposition to a candidate.
21 5. A participating candidate for a public office for which public
22 funds are available pursuant to this title shall not accept any contrib-
23 utions any earlier than one day after the previous general election for
24 the office which such candidate is seeking, or any later than the day of
25 the general election for the office sought, except that a participating
26 candidate or participating committee which has a deficit on the day of
27 the general election may, after such date, accept contributions which do
28 not exceed the amount of such deficit and the expenses incurred in rais-
29 ing such contributions. Contributions to a participating candidate or
30 participating committee which were received before January first of the
31 year in which the primary or general election is held for the public
32 office sought or, in the case of a special election received more than
33 six months before the special election, may not be expended in any
34 election for any such office.
35 6. Except for the limitations specifically set forth in this section,
36 participating candidates shall be subject to the provisions of this
37 article.
38 § 14-210. Limitations on the receipt of public funds. The following
39 expenditure limitations apply to the receipt of public funds by partic-
40 ipating candidates and their participating committees receiving such
41 public funds pursuant to the provisions of this title:
42 1. (a) in any primary election, receipt of public funds by participat-
43 ing candidates and by their participating committees shall not exceed:
44 (i) for governor, the sum of one dollar and ten cents for each voter
45 enrolled in the candidate's party in the state; provided, however, such
46 sum shall not be less than nine hundred thousand dollars nor more than
47 nine million dollars;
48 (ii) for lieutenant governor, comptroller or attorney general, the sum
49 of one dollar and ten cents for each voter enrolled in the candidate's
50 party in the state; provided, however, such sum shall not be less than
51 six hundred thousand dollars nor more than six million dollars;
52 (iii) for senator, the sum of two dollars and fifty cents for each
53 voter enrolled in the candidate's party in the senate district;
54 provided, however, such sum shall not be less than thirty-five thousand
55 dollars nor more than three hundred fifty thousand dollars;
S. 4009 12
1 (iv) for member of the assembly, the sum of two dollars and fifty
2 cents for each voter enrolled in the candidate's party in the assembly
3 district; provided, however, such sum shall not be less than fifteen
4 thousand dollars nor more than one hundred fifty thousand dollars;
5 (v) for at-large delegate to a constitutional convention, the sum of
6 fifteen cents for each voter enrolled in the candidate's party in the
7 state; provided, however, such sum shall not be less than seventy-five
8 thousand dollars nor more than one hundred seventy-five thousand
9 dollars;
10 (vi) for district delegates to a constitutional convention, the sum of
11 one dollar and ten cents for each voter enrolled in the candidate's
12 party in the district; provided, however, such sum shall not be less
13 than five thousand dollars nor more than fifty thousand dollars;
14 (b) the enrollment numbers used to calculate the public funds receipt
15 limits provided for in this subdivision shall be the enrollments duly
16 reported by the appropriate board or boards as of the last general
17 election preceding the primary election.
18 2. In any general or special election, receipt of public funds by
19 participating candidates for the following offices and by their partic-
20 ipating committees shall not exceed the following amounts:
21 Candidates for election to the office of:
22 Governor and Lieutenant Governor$12,000,000
23 (combined)
24 Attorney General$8,000,000
25 Comptroller$8,000,000
26 Member of Senate$350,000
27 Member of Assembly$150,000
28 Delegate At-Large to a Constitutional$350,000
29 Convention
30 District Delegate to a Constitutional$75,000
31 Convention
32 3. Participating candidates for office who are unopposed in the prima-
33 ry election may receive public funds before the primary election, for
34 services, materials or facilities used on or before the date of such
35 primary election, an amount equal to half the sum such candidates would
36 be entitled to receive if their nomination was contested in such primary
37 election provided there is a primary contest for the nomination of at
38 least one other party for such office.
39 4. Nothing in this section shall be construed to limit the amount of
40 private funds a participating candidate may receive subject to the
41 contribution limits contained in section 14-208 of this title.
42 5. Expenditures for legal fees and reasonable expenses to defend the
43 validity of petitions of designation or nomination or certificates of
44 nomination, acceptance, authorization, declination or substitution, or
45 to successfully challenge any such petition or certificate on grounds of
46 fraud, or for expenses incurred to comply with the campaign finance
47 reporting requirements of this article, shall not be subject to the
48 expenditure limits of this subdivision.
49 § 14-212. Examinations and audits; repayments. 1. The enforcement unit
50 of the state board shall conduct a thorough examination and audit of the
51 contributions and qualified campaign expenses of the participating
52 committee of every participating candidate who received payments pursu-
53 ant to section 14-206 of this title.
54 2. (a) If the state board determines that any portion of the payment
55 made to a participating committee from the fund was in excess of the
56 aggregate amount of payments to which such eligible candidate was enti-
S. 4009 13
1 tled pursuant to section 14-206 of this title, it shall notify such
2 committee of the excess amount and such committee shall pay to the state
3 board an amount equal to the amount of excess payments.
4 (b) If the state board determines that any amount of payment made to a
5 participating committee from the fund was used for purposes other than
6 to defray qualified campaign expenses, it shall notify such participat-
7 ing committee of the amount disqualified and such participating commit-
8 tee shall pay to the state board an amount equal to such disqualified
9 amount.
10 (c) If the total of contributions and payments from the fund received
11 by any participating candidate and such candidate's participating
12 committee, exceeds the campaign expenditures of such candidate and
13 committee, such candidate and committee shall use such excess funds to
14 reimburse the fund for payments received by such committee from the fund
15 not later than ten days after all permissible liabilities have been paid
16 and in any event, not later than March thirty-first of the year follow-
17 ing the year of the election for which such payments were intended. No
18 such excess funds shall be used for any other purpose.
19 3. If a court of competent jurisdiction disqualifies a candidate whose
20 participating committee has received public funds on the grounds that
21 such candidate committed fraudulent acts in order to obtain a place on
22 the ballot and such decision is not reversed by a higher court, such
23 candidate and such candidate's participating committee shall pay to the
24 state board an amount equal to the total of public funds received by
25 such participating committee.
26 4. The state board must provide written notice of all payments due
27 from a participating candidate or such candidate's committee to the
28 state board and provide an opportunity for the candidate or committee to
29 rebut, in whole or in part, the alleged amount due. Upon a final written
30 determination by the state board, the amount due shall be paid to the
31 state board within thirty days of such determination.
32 5. All payments received by the state board pursuant to this section
33 shall be deposited in the New York state campaign finance fund estab-
34 lished by section ninety-two-t of the state finance law.
35 § 14-214. Civil penalties. 1. Any person who fails to file a statement
36 or record required to be filed by this title or the rules or regulations
37 of the state board in implementation thereof shall be subject to a civil
38 penalty, not in excess of five thousand dollars, to be recoverable in a
39 special proceeding or civil action brought by the state board.
40 2. All payments received by the state board pursuant to this section
41 shall be deposited in the New York state campaign finance fund estab-
42 lished by section ninety-two-t of the state finance law.
43 § 14-216. Debates. The state board shall promulgate regulations to
44 facilitate debates among participating candidates. Participating candi-
45 dates are required to participate in at least one debate before the
46 primary election and in at least one debate before the general election
47 for which the candidate receives public funds, unless the participating
48 candidate is running unopposed. A nonparticipating candidate may be a
49 party to such debates.
50 § 11. The election law is amended by adding a new section 16-103 to
51 read as follows:
52 § 16-103. Proceedings as to public financing. 1. The determination of
53 eligibility pursuant to section 14-202 of this chapter and any question
54 or issue relating to payments for qualified campaign expenditures pursu-
55 ant to section 14-206 of this chapter may be contested in a proceeding
S. 4009 14
1 instituted in the Supreme Court, Albany county, by any aggrieved candi-
2 date.
3 2. A proceeding with respect to such a determination of eligibility or
4 payment for qualified campaign expenditures pursuant to section 14-206
5 of this chapter shall be instituted within seven days after such deter-
6 mination was made. The state board shall be made a party to any such
7 proceeding.
8 3. Upon the state board's failure to receive the amount due from a
9 participating candidate or such candidate's committee after the issuance
10 of written notice of such amount due, as required by subdivision four of
11 section 14-212 of this chapter, the state board is authorized to insti-
12 tute a special proceeding or civil action in Supreme Court, Albany coun-
13 ty, to obtain a judgment for any amounts determined to be payable to the
14 state board as a result of an examination and audit made pursuant to
15 title II of article fourteen of this chapter.
16 4. The state board is authorized to institute a special proceeding or
17 civil action in Supreme Court, Albany county, to obtain a judgment for
18 civil penalties determined to be payable to the state board pursuant to
19 section 14-214 of this chapter.
20 § 12. The election law is amended by adding a new section 4-115 to
21 read as follows:
22 § 4-115. Notice to the state board of elections of candidates for the
23 legislature. 1. Each board of elections with which petitions are filed
24 for member of the state legislature shall, not later than one week after
25 the last day to file such petitions, send notice to the state board of
26 elections of such information about each such petition as the state
27 board of elections shall require.
28 2. Each such county board of elections shall, not later than the day
29 after the last day to file a petition or certificate of nomination for a
30 general or special election or a certificate of acceptance, declination
31 or substitution for a general, primary or special election for any such
32 office, send to the state board of elections such information about each
33 such petition or certificate as the state board of elections shall
34 require.
35 3. If any such county board of elections should disqualify any such
36 candidate or rule the petition or certificate designating or nominating
37 any such candidate invalid, it shall forthwith notify the state board of
38 elections of such decision.
39 4. If any such county board of elections shall be notified of a deci-
40 sion of a court of competent jurisdiction disqualifying any such candi-
41 date or declaring any such petition invalid or reversing any such deci-
42 sion by such board of elections or another court, such board of
43 elections shall forthwith notify the state board of elections of such
44 decision.
45 5. The state board of elections may prescribe forms for the notices
46 required by this section and shall prescribe the manner in which such
47 notices shall be given.
48 § 13. The state finance law is amended by adding a new section 92-t to
49 read as follows:
50 § 92-t. New York state campaign finance fund. 1. There is hereby
51 established in the joint custody of the state comptroller and the
52 commissioner of taxation and finance a fund to be known as the New York
53 state campaign finance fund.
54 2. Such fund shall consist of all revenues received from the New York
55 state campaign finance fund check-off pursuant to subsection (f) of
56 section six hundred fifty-eight of the tax law, from the general fund,
S. 4009 15
1 and from all other moneys credited or transferred thereto from any other
2 fund or source pursuant to law.
3 3. Moneys of the fund, following appropriation by the legislature, may
4 be expended for the purposes of making payments to candidates pursuant
5 to title II of article fourteen of the election law. Moneys shall be
6 paid out of the fund on the audit and warrant of the state comptroller
7 on vouchers certified or approved by the state board of elections, or
8 its duly designated representative, in the manner prescribed by law, not
9 more than four working days after such voucher is received by the state
10 comptroller.
11 4. Notwithstanding any provision of law to the contrary, if, in any
12 state fiscal year, the state campaign finance fund lacks the amount of
13 money to pay all claims vouchered by eligible candidates and certified
14 or approved by the state board of elections, any such deficiency shall
15 be paid, upon audit and warrant of the state comptroller, from funds
16 deposited in the general fund of the state not more than four working
17 days after such voucher is received by the state comptroller.
18 5. Commencing in two thousand eighteen, if the surplus in the fund on
19 April first of the year after a year in which a governor is elected
20 exceeds twenty-five percent of the disbursements from the fund over the
21 previous four years, the excess shall revert to the general fund of the
22 state.
23 6. No public funds shall be paid to any participating candidates in a
24 primary election any earlier than the day that such candidate is certi-
25 fied as being on the ballot for such primary election.
26 7. No public funds shall be paid to any participating candidates in a
27 general election any earlier than the day after the day of the primary
28 election held to nominate candidates for such election.
29 8. No public funds shall be paid to any participating candidates in a
30 special election any earlier than the day after the last day to file
31 certificates of party nomination for such special election.
32 9. No public funds shall be paid to any participating candidate who
33 has been disqualified or whose designating petitions have been declared
34 invalid by the appropriate board of elections or a court of competent
35 jurisdiction until and unless such finding is reversed by a higher
36 authority. No payment from the fund in the possession of such a candi-
37 date or such candidate's participating committee on the date of such
38 disqualification or invalidation may thereafter be expended for any
39 purpose except the payment of liabilities incurred before such date. All
40 such moneys shall be repaid to the fund.
41 § 14. Section 658 of the tax law is amended by adding a new subsection
42 (f) to read as follows:
43 (f) New York state campaign finance fund check-off. (1) For each
44 taxable year beginning on and after January first, two thousand thir-
45 teen, every individual whose New York state income tax liability for the
46 taxable year for which the return is filed is five dollars or more may
47 designate on such return that five dollars be paid into the New York
48 state campaign finance fund established by section ninety-two-t of the
49 state finance law. Where a husband and wife file a joint return and
50 have a New York state income tax liability for the taxable year for
51 which the return is filed of ten dollars or more, or file separate
52 returns on a single form, each such taxpayer may make separate desig-
53 nations on such return of five dollars to be paid into the New York
54 state campaign finance fund.
55 (2) The commissioner shall transfer to the New York state campaign
56 finance fund, established pursuant to section ninety-two-t of the state
S. 4009 16
1 finance law, an amount equal to five dollars multiplied by the number of
2 designations.
3 (3) For purposes of this subsection, the income tax liability of an
4 individual for any taxable year is the amount of tax imposed under this
5 article reduced by the sum of the credits (as shown in his or her
6 return) allowable under this article.
7 (4) The department shall include a place on every personal income tax
8 return form to be filed by an individual for a tax year beginning on or
9 after January first, two thousand thirteen, immediately above the
10 certification under which the taxpayer is required to sign such form,
11 for such taxpayer to make the designations described in paragraph one of
12 this subsection. Such return form shall contain a concise explanation of
13 the purpose of such optional designations.
14 § 15. Campaign finance review panel. 1. There is hereby created and
15 established the "campaign finance review panel". The panel shall consist
16 of the commissioner of taxation and finance, the director of the divi-
17 sion of the budget, the state comptroller and the two members of the
18 state board of elections who rotate as chairperson of the board. The
19 commissioner of taxation and finance shall be chairperson.
20 2. The panel is empowered and it shall be its duty to monitor and
21 review the implementation of the 2012 Campaign Finance Reform Act. The
22 panel shall report to the governor and the legislature on March 31, 2014
23 and on March 31, 2016 and on March 31 of every other year thereafter.
24 The report shall include: (a) the number of candidates qualifying and
25 opting for public financing, the amounts expended for this purpose in
26 the preceding fiscal year and a projection of the number of candidates
27 likely to qualify and opt for public financing and their expenditures in
28 future elections; (b) an analysis of the effect of the 2012 Campaign
29 Finance Reform Act on political campaigns, including its effect on the
30 sources and amounts of private financing, the level of campaign expendi-
31 tures, voter participation, the number of candidates and the candidate's
32 ability to campaign effectively for public office; (c) a review of the
33 procedures utilized in providing public funds to candidates; and (d)
34 such recommended changes in the 2012 Campaign Finance Reform Act as it
35 deems appropriate.
36 § 16. Subdivision 9 of section 14-100 of the election law is amended
37 by adding a new paragraph 4 to read as follows:
38 (4) the term "contribution" does not include expenditures by a bona
39 fide membership organization in support of the following activities by
40 members of the organization who are volunteering their time on behalf of
41 a candidate, not to exceed twenty-five dollars per member who volun-
42 teers, for: transportation of volunteers to and from campaign activ-
43 ities; cost of feeding volunteers while volunteering for the campaign;
44 and materials such as badges and clothing that identifies the name of
45 the organization and/or candidate.
46 § 17. Paragraphs a and b of subdivision 1 of section 14-114 of the
47 election law, as amended by chapter 659 of the laws of 1994, are amended
48 to read as follows:
49 a. In any election for a public office to be voted on by the voters of
50 the entire state, or for nomination to any such office, no contributor
51 may make a contribution to any candidate or political committee, and no
52 candidate or political committee may accept any contribution from any
53 contributor, which is in the aggregate amount greater than: (i) in the
54 case of any nomination to public office, the product of the total number
55 of enrolled voters in the candidate's party in the state, excluding
56 voters in inactive status, multiplied by $.005, but such amount shall be
S. 4009 17
1 not [less] more than [four] two thousand dollars [nor more than twelve
2 thousand dollars] as increased or decreased by the cost of living
3 adjustment described in paragraph c of this subdivision, and (ii) in the
4 case of any election to a public office, [twenty-five] two thousand
5 dollars as increased or decreased by the cost of living adjustment
6 described in paragraph c of this subdivision; provided however, that the
7 maximum amount which may be so contributed or accepted, in the aggre-
8 gate, from any candidate's child, parent, grandparent, brother and
9 sister, and the spouse of any such persons, shall not exceed in the case
10 of any nomination to public office an amount equivalent to the product
11 of the number of enrolled voters in the candidate's party in the state,
12 excluding voters in inactive status, multiplied by $.025, and in the
13 case of any election for a public office, an amount equivalent to the
14 product of the number of registered voters in the state excluding voters
15 in inactive status, multiplied by $.025.
16 b. In any other election for party position or for election to a
17 public office or for nomination for any such office, no contributor may
18 make a contribution to any candidate or political committee and no
19 candidate or political committee may accept any contribution from any
20 contributor, which is in the aggregate amount greater than: (i) in the
21 case of any election for party position, or for nomination to public
22 office, the product of the total number of enrolled voters in the candi-
23 date's party in the district in which he or she is a candidate, exclud-
24 ing voters in inactive status, multiplied by $.05, and (ii) in the case
25 of any election for a public office, the product of the total number of
26 registered voters in the district, excluding voters in inactive status,
27 multiplied by $.05, however in the case of a nomination within the city
28 of New York for the office of mayor, public advocate or comptroller,
29 such amount shall be not [less] more than [four] two thousand dollars
30 [nor more than twelve thousand dollars] as increased or decreased by the
31 cost of living adjustment described in paragraph c of this subdivision;
32 in the case of an election within the city of New York for the office of
33 mayor, public advocate or comptroller, [twenty-five] two thousand
34 dollars as increased or decreased by the cost of living adjustment
35 described in paragraph c of this subdivision; in the case of a nomi-
36 nation for state senator, [four] two thousand dollars as increased or
37 decreased by the cost of living adjustment described in paragraph c of
38 this subdivision; in the case of an election for state senator, [six]
39 two thousand [two hundred fifty] dollars as increased or decreased by
40 the cost of living adjustment described in paragraph c of this subdivi-
41 sion; in the case of an election or nomination for a member of the
42 assembly, [twenty-five hundred] two thousand dollars as increased or
43 decreased by the cost of living adjustment described in paragraph c of
44 this subdivision; [but in no event shall any such maximum exceed fifty
45 thousand dollars or be less than one thousand dollars;] provided howev-
46 er, that the maximum amount which may be so contributed or accepted, in
47 the aggregate, from any candidate's child, parent, grandparent, brother
48 and sister, and the spouse of any such persons, shall not exceed in the
49 case of any election for party position or nomination for public office
50 an amount equivalent to the number of enrolled voters in the candidate's
51 party in the district in which he or she is a candidate, excluding
52 voters in inactive status, multiplied by $.25 and in the case of any
53 election to public office, an amount equivalent to the number of regis-
54 tered voters in the district, excluding voters in inactive status,
55 multiplied by $.25; or twelve hundred fifty dollars, whichever is great-
56 er, or in the case of a nomination or election of a state senator, twen-
S. 4009 18
1 ty thousand dollars, whichever is greater, or in the case of a nomi-
2 nation or election of a member of the assembly, twelve thousand five
3 hundred dollars, whichever is greater, but in no event shall any such
4 maximum exceed one hundred thousand dollars.
5 § 18. Section 14-130 of the election law, as added by chapter 152 of
6 the laws of 1985, is amended to read as follows:
7 § 14-130. Campaign funds for personal use. 1. Contributions received
8 by a candidate or a political committee may only be expended for [any
9 lawful purpose. Such funds shall not be converted by any person to a
10 personal use which is unrelated to a political campaign or the holding
11 of a public office or party position] bona fide purposes directly
12 related to either:
13 a. promoting the nomination or election of a candidate; or
14 b. performing those duties of public office or party position which
15 are not paid for or eligible for reimbursement by the state or any poli-
16 tical subdivision or private party.
17 2. Permissible ordinary and necessary expenses relating to the holding
18 of public office or party position shall include:
19 a. production and circulation of flyers or other written materials
20 related to duties of officeholder; the placement of holiday greetings
21 and congratulatory ads and memorial notices in local newspapers, maga-
22 zines, journals or other publication;
23 b. sponsorship or hosting of community meetings; tickets or donations
24 to local charitable, non-profit or political events, organizations or
25 activities that promote the welfare of constituents or political
26 campaigns;
27 c. incidental expenditures for the operation of legislative offices,
28 including purchase of items such as memorial or get-well gifts, flowers
29 or similar items of nominal value for constituents or others;
30 d. membership in organizations related to official duties and costs of
31 attending informational meetings attended in connection with such
32 duties; and
33 e. travel related to duties of office, provided that the travel is not
34 undertaken for any purpose resulting in a personal or financial benefit
35 to the candidate or officeholder. If such expenses involve both personal
36 activity and campaign or official activities, the incremental expenses
37 associated with the personal activities are personal uses unless the
38 campaign is reimbursed for such sums from other than campaign funds
39 within thirty days of the expenditure.
40 Nothing in this section shall prohibit a candidate from purchasing
41 office equipment with personal funds and leasing or renting such equip-
42 ment or property to a committee working with or for the candidate,
43 provided the candidate or the campaign treasurer sign a written lease or
44 rental agreement and files it with the appropriate required campaign
45 financial filing which shall include the lease or rental price which
46 shall not exceed the fair lease or rental value of the equipment or in
47 the aggregate exceed the cost of its purchase.
48 3. Campaign funds shall not be converted to personal use, which shall
49 be defined as expenditures that:
50 a. are for the personal benefit of or to defray normal living expenses
51 of the candidate, officeholder, immediate family or partner of either or
52 any other person;
53 b. are used to fulfill any commitment, obligation, or expense that
54 would exist irrespective of the candidate's campaign or duties as an
55 officeholder; or
S. 4009 19
1 c. are put to any use for which the candidate or officeholder would be
2 required to treat the amount of the expenditure as gross income under
3 section 61 of the Internal Revenue Code.
4 4. Expenditures for personal use shall also include, but are not
5 limited to, expenditures for:
6 a. residential or household items, supplies, maintenance or other
7 expenditures, including mortgage, rent, utilities, repairs, or improve-
8 ments for any part of any personal residence of a candidate or office-
9 holder, his or her immediate family or partner;
10 b. rent or utility payments that exceed fair market value for use of
11 any part of any non-residential property owned by a candidate, or a
12 member of a candidate's family or partner used for campaign purposes;
13 c. salary and other fees for bona fide services to a campaign or
14 legislative office that exceed fair and reasonable market value of such
15 services;
16 d. interest or any other finance charges for monies loaned to the
17 campaign by the candidate or the spouse or partner of such candidate;
18 e. tuition payments;
19 f. dues, fees, or gratuities at private clubs, recreational facilities
20 or other nonpolitical organizations, unless connected to a specific
21 widely attended fundraising event that takes place on the organization's
22 premises;
23 g. automobile purchases or long term leases; short term car rentals
24 and cellular equipment and services not used exclusively for campaign
25 purposes or duties as an officeholder;
26 h. admission to sporting events, concerts, theaters, or other forms of
27 entertainment, unless part of a specific campaign or officeholder
28 related activity; and
29 i. payment of any fines, fees, or penalties assessed pursuant to this
30 chapter.
31 5. No campaign funds shall be used to pay attorney's fees or any costs
32 of defending against any civil or criminal investigation or prosecution
33 for alleged violations of state or federal law alleged to have been
34 committed while holding public office or as a candidate for office where
35 the candidate or public or party official, members of their immediate
36 families or partners or the campaign is the target of such investigation
37 or prosecution unless such expenditure is used exclusively for costs
38 related to civil or criminal actions for alleged violations related to
39 activities promoting the nomination or election of a candidate.
40 § 19. The election law is amended by adding a new section 14-132 to
41 read as follows:
42 § 14-132. Disposition of campaign funds. 1. An authorized continuing
43 candidate committee must dispose of all funds and close within two years
44 after the later of (a) the end of the individual's most recent term of
45 office, or (b) the date of the election in which the individual last was
46 a filed candidate.
47 2. Any candidate or political committee required to dispose of funds
48 pursuant to this section shall, at the option of the candidate, or the
49 treasurer of a political committee formed solely to promote the passage
50 or defeat of a ballot proposal, dispose of such funds by any of the
51 following means, or any combination thereof:
52 a. returning, pro rata, to each contributor the funds that have not
53 been spent or obligated;
54 b. donating the funds to a charitable organization or organizations
55 that meet the qualifications of section 501(c)(3) of the Internal Reven-
56 ue Code;
S. 4009 20
1 c. donating the funds to the state university;
2 d. donating the funds to the state's general fund;
3 e. transferring the funds to a political party committee registered
4 with the state board of elections; or
5 f. contributing the funds to a candidate or political committee such
6 that this does not exceed the limits set forth in section 14-114 of this
7 title.
8 3. No candidate or political committee shall dispose of campaign funds
9 by making expenditures for personal use as defined in section 14-130 of
10 this title.
11 4. Upon the death of a candidate, former candidate or holder of elec-
12 tive office, who received campaign contributions, all contributions
13 shall be disposed of according to this section within twelve months of
14 the death of the candidate.
15 § 20. Subdivision 1 of section 14-102 of the election law, as amended
16 by chapter 8 and redesignated by chapter 9 of the laws of 1978, is
17 amended to read as follows:
18 1. The treasurer of every political committee which, or any officer,
19 member or agent of any such committee who, in connection with any
20 election, receives or expends any money or other valuable thing or
21 incurs any liability to pay money or its equivalent shall file state-
22 ments sworn, or subscribed and bearing a form notice that false state-
23 ments made therein are punishable as a class A misdemeanor pursuant to
24 section 210.45 of the penal law, at the times prescribed by this [arti-
25 cle] title setting forth all the receipts, contributions to and the
26 expenditures by and liabilities of the committee, and of its officers,
27 members and agents in its behalf. Such statements shall include the
28 dollar amount of any receipt, contribution or transfer, or the fair
29 market value of any receipt, contribution or transfer, which is other
30 than of money, the name and address of the transferor, contributor,
31 intermediary, or person from whom received, if the contributor is a
32 lobbyist registered pursuant to article one-A of the legislative law and
33 if the transferor, contributor, intermediary, or person is a political
34 committee; the name of and the political unit represented by the commit-
35 tee, the date of its receipt, the dollar amount of every expenditure,
36 the name and address of the person to whom it was made or the name of
37 and the political unit represented by the committee to which it was made
38 and the date thereof, and shall state clearly the purpose of such
39 expenditure. An intermediary need not be reported for a contribution
40 that was collected from a contributor in connection with a party or
41 other candidate-related event held at the residence of the person deliv-
42 ering the contribution, unless the expenses of such event at such resi-
43 dence for such candidate exceed five hundred dollars or the aggregate
44 contributions received from that contributor at such event exceed five
45 hundred dollars. Any statement reporting a loan shall have attached to
46 it a copy of the evidence of indebtedness. Expenditures in sums under
47 fifty dollars need not be specifically accounted for by separate items
48 in said statements, and receipts and contributions aggregating not more
49 than ninety-nine dollars, from any one contributor need not be specif-
50 ically accounted for by separate items in said statements, provided
51 however, that such expenditures, receipts and contributions shall be
52 subject to the other provisions of section 14-118 of this [article]
53 title.
54 § 21. Subdivision 3 of section 3-100 of the election law, as amended
55 by chapter 220 of the laws of 2005, is amended to read as follows:
S. 4009 21
1 3. The commissioners of the state board of elections shall have no
2 other public employment. The commissioners shall receive an annual sala-
3 ry of twenty-five thousand dollars, within the amounts made available
4 therefor by appropriation. The board shall, for the purposes of sections
5 seventy-three and seventy-four of the public officers law, be a "state
6 agency", and such commissioners shall be "officers" of the state board
7 of elections for the purposes of such sections. Within the amounts made
8 available by appropriation therefor, the state board of elections shall
9 appoint two co-executive directors, [counsel] an enforcement counsel, a
10 deputy enforcement counsel, who shall be a member of a different major
11 political party than the enforcement counsel, a special counsel, a depu-
12 ty special counsel, who shall be a member of a different major political
13 party than the special counsel, a director of election operations, a
14 deputy director of election operations, who shall be a member of a
15 different major political party than the director of election oper-
16 ations, a director of public information, a deputy director of public
17 information, who shall be a member of a different major political party
18 than the director of public information and such other staff members as
19 are necessary in the exercise of its functions, and may fix their
20 compensation. [Anytime after the effective date of the chapter of the
21 laws of two thousand five which amended this subdivision, the] The
22 commissioners or, in the case of a vacancy on the board, the commission-
23 er of each of the major political parties shall appoint one co-executive
24 director. Each co-executive director shall serve a term of four years.
25 The enforcement counsel and the special counsel shall each serve a term
26 of four years and may only be removed for cause. Any time after the
27 effective date of the chapter of the laws of two thousand thirteen
28 amending this subdivision, the commissioners, or in the case of a vacan-
29 cy on the board, the commissioner, of each of the same major political
30 party as the incumbent enforcement counsel, deputy enforcement counsel,
31 special counsel, deputy special counsel, director of election oper-
32 ations, deputy director of election operations, director of public
33 information and deputy director of public information, shall appoint
34 such counsels, directors and deputies. Any vacancy in the office of
35 co-executive director, enforcement counsel, deputy enforcement counsel,
36 special counsel, deputy special counsel, director of election oper-
37 ations, deputy director of election operations, director of public
38 information and deputy director of public information, shall be filled
39 by the commissioners or, in the case of a vacancy on the board, the
40 commissioner of the same major political party as the vacating incumbent
41 for the remaining period of the term of such vacating incumbent, for the
42 remaining period of the term of such vacating incumbent.
43 § 22. Subdivision 3, paragraph (c) of subdivision 9-A and subdivision
44 17 of section 3-102 of the election law, subdivisions 3 and 17 as
45 amended by chapter 9 of the laws of 1978, paragraph (c) of subdivision
46 9-A as added by chapter 430 of the laws of 1997 and subdivision 17 as
47 renumbered by chapter 23 of the laws of 2005, are amended to read as
48 follows:
49 3. conduct any investigation necessary to carry out the provisions of
50 this chapter, provided, however, that the state board of elections
51 enforcement counsel, established pursuant to section 3-104 of this arti-
52 cle, shall conduct any investigation necessary to enforce the provisions
53 of article fourteen of this chapter on behalf of the board of elections;
54 (c) establish [a] an educational and training program on all reporting
55 requirements including but not limited to the electronic reporting proc-
56 ess and make it easily and readily available to any such candidate or
S. 4009 22
1 committee and notify any such candidate or committee of the availability
2 of the most recent campaign finance handbook;
3 17. hear and consider the recommendations of the state board of
4 elections enforcement counsel regarding the enforcement of violations of
5 article fourteen of this chapter;
6 18. perform such other acts as may be necessary to carry out the
7 purposes of this chapter.
8 § 23. Section 3-104 of the election law, subdivisions 1, 3, 4 and 5 as
9 redesignated and subdivision 2 as amended by chapter 9 of the laws of
10 1978, is amended to read as follows:
11 § 3-104. State board of elections and the state board of elections
12 enforcement counsel; enforcement powers. 1. (a) There shall be a unit
13 known as the state board of elections enforcement unit established with-
14 in the state board of elections. The head of such unit shall be the
15 enforcement counsel.
16 (b) The state board of elections shall have jurisdiction of, and be
17 responsible for, the execution and enforcement of the provisions of
18 [article fourteen of this chapter and other] statutes governing
19 campaigns, elections and related procedures; provided however that the
20 enforcement counsel shall have sole authority within the state board of
21 elections to investigate on his or her own initiative or upon complaint,
22 alleged violations of article fourteen of this chapter and all
23 complaints alleging article fourteen violations shall be forwarded to
24 the enforcement unit. Nothing in this section shall be construed to
25 diminish or alter the state board of elections' jurisdiction pursuant to
26 this chapter.
27 2. Whenever [the state board of elections or other] a local board of
28 elections shall determine, on its own initiative or upon complaint, or
29 otherwise, that there is substantial reason to believe a violation of
30 this chapter or any code or regulation promulgated thereunder has
31 [occurred] been committed by a candidate or political committee that
32 files statements or is required to do so pursuant to article fourteen of
33 this chapter solely with such local board, it shall expeditiously make
34 an investigation which shall also include investigation of reports and
35 statements made or failed to be made by the complainant and any poli-
36 tical committee supporting his candidacy if the complainant is a candi-
37 date or, if the complaint was made by an officer or member of a poli-
38 tical committee, of reports and statements made or failed to be made by
39 such political committee and any candidates supported by it. [The state
40 board of elections, in lieu of making such an investigation, may direct
41 the appropriate board of elections to make an investigation.] The state
42 board of elections may request, and shall receive, the assistance of the
43 state police in any investigation it shall conduct.
44 3. [If, after an investigation, the state or other board of elections
45 finds reasonable cause to believe that a violation warranting criminal
46 prosecution has taken place, it shall forthwith refer the matter to the
47 district attorney of the appropriate county and shall make available to
48 such district attorney all relevant papers, documents, testimony and
49 findings relevant to its investigation.
50 4. The state or other board of elections may, where appropriate,
51 commence a judicial proceeding with respect to the filing or failure to
52 file any statement of receipts, expenditures, or contributions, under
53 the provisions of this chapter, and the state board of elections may
54 direct the appropriate other board of elections to commence such
55 proceeding.
S. 4009 23
1 5.] If the enforcement counsel determines that a violation of subdi-
2 vision one of section 14-126 of this chapter has occurred which could
3 warrant a civil penalty, the enforcement counsel shall, upon his or her
4 discretion, seek to resolve the matter extra-judicially or commence a
5 special proceeding in the supreme court pursuant to section 16-114 of
6 this chapter.
7 4. Upon receipt of a complaint and supporting information or an inter-
8 nal referral from the enforcement unit alleging any other violation of
9 article fourteen of this chapter, the enforcement counsel shall analyze
10 the facts and the law relevant to such complaint or referral to deter-
11 mine if an investigation should be undertaken. The enforcement counsel
12 shall, if necessary, request additional information from the complainant
13 to assist such counsel in making this determination. Such analysis shall
14 include the following: first, whether the allegations, if true, would
15 constitute a violation of article fourteen of this chapter and, second,
16 whether the allegations are supported by credible evidence.
17 5. If the enforcement counsel determines that the allegations
18 contained in a complaint, if true, would not constitute a violation of
19 article fourteen of this chapter or that the allegations are not
20 supported by credible evidence, he or she shall: (a) notify the deputy
21 enforcement counsel of such determination and (b) publicly notify the
22 state board of elections of such determination. If the state board of
23 elections publicly determines, as provided in this title, that the alle-
24 gations, if true, would constitute a violation of article fourteen of
25 this chapter and that the allegations appear to be supported by credible
26 evidence, it shall direct that the enforcement counsel conduct an inves-
27 tigation. Lacking such a determination, the enforcement counsel shall
28 issue a letter to the complainant dismissing the complaint.
29 6. If the enforcement counsel determines that the allegations, if
30 true, would constitute a violation of article fourteen of this chapter
31 and that the allegations appear to be supported by credible evidence, he
32 or she shall: (a) notify the deputy enforcement counsel of (i) his or
33 her intent to resolve the matter extra-judicially due to the de minimis
34 nature of the violation; or (ii) his or her intent to commence an inves-
35 tigation, and (b) publicly notify the state board of elections of such
36 intent no later than the board's next regularly scheduled meeting.
37 Notification shall summarize the relevant facts and the applicable law
38 and shall, to the extent possible, protect from public disclosure the
39 identity of the complainant and the individual subject to the complaint.
40 The deputy enforcement counsel shall have the opportunity to review the
41 entire file of any preliminary investigation conducted by the enforce-
42 ment counsel a minimum of ten days prior to said regularly scheduled
43 meeting of the board and to submit a public, written concurrence with or
44 dissent from the enforcement counsel's proposal.
45 7. If, upon considering the enforcement counsel's notice of intent to
46 commence an investigation and the deputy enforcement counsel's recommen-
47 dation, the state board of elections believes that the allegations, if
48 true, would not constitute a violation of article fourteen of this chap-
49 ter, or the allegations are not supported by credible evidence or, that
50 on balance, the equities favor a dismissal of the complaint, the board
51 shall publicly direct that an investigation not be undertaken no later
52 than sixty days after the receipt of notification from the enforcement
53 counsel of his or her intent to commence an investigation. In determin-
54 ing whether the equities favor a dismissal of the complaint, the state
55 board of elections shall consider the following factors: (a) whether the
56 complaint alleges a de minimis violation of article fourteen of this
S. 4009 24
1 chapter; (b) whether the subject of the complaint has made a good faith
2 effort to correct the violation; and (c) whether the subject of the
3 complaint has a history of similar violations. Determinations of the
4 state board of elections to dismiss a complaint and not proceed with a
5 formal investigation shall be voted upon as provided in subdivision four
6 of section 3-100 of this title at an open meeting pursuant to article
7 seven of the public officers law, and shall be made on a fair and equi-
8 table basis and without regard to the status of the subject of the
9 complaint.
10 8. Absent a timely determination by the state board of elections that
11 an investigation shall not be undertaken, the enforcement counsel shall
12 commence an investigation on a timely basis. If the enforcement counsel
13 determines that additional investigative powers, as provided for in
14 subdivisions four, five and six of section 3-102 of this title, are
15 needed to complete the counsel's investigation, he or she shall request
16 such additional powers from the state board of elections. Such powers
17 shall be granted by the board in public only when the board finds that
18 further investigation is warranted and justified.
19 9. At the conclusion of its investigation, the enforcement counsel
20 shall provide the deputy enforcement counsel and the state board of
21 elections with a written recommendation as to: (a) whether substantial
22 reason exists to believe a violation of article fourteen of this chapter
23 has occurred and, if so, the nature of the violation and any applicable
24 penalty, as defined in section 14-126 of this chapter, based on the
25 nature of the violation; (b) whether the matter should be resolved
26 extra-judicially; (c) whether a special proceeding should be commenced
27 in the supreme court to recover a civil penalty; and (d) whether a
28 referral should be made to a district attorney pursuant to subdivision
29 eleven of this section because reasonable cause exists to believe a
30 violation warranting criminal prosecution has taken place. The deputy
31 enforcement counsel shall have the opportunity to review the entire file
32 of any investigation conducted by the enforcement counsel a minimum of
33 ten days prior to said regularly scheduled meeting of the board and to
34 submit a public, written concurrence with or dissent from the enforce-
35 ment counsel's recommendation.
36 10. The state board of elections shall accept, modify or reject the
37 enforcement counsel's recommendation no later than sixty days after
38 receipt of such recommendation. In making its determination, the board
39 shall again consider: (a) whether the complaint alleges a de minimis
40 violation of article fourteen of this chapter; (b) whether the subject
41 of the complaint has made a good faith effort to correct the violation;
42 and (c) whether the subject of the complaint has a history of similar
43 violations. All such determinations shall be voted upon as provided in
44 subdivision four of section 3-100 of this title at an open meeting
45 pursuant to article seven of the public officers law, and shall be made
46 on a fair and equitable basis, without regard to the status of the
47 subject of the complaint.
48 11. (a) If the state board of elections determines, as provided in
49 subdivision ten of this section, that substantial reason exists to
50 believe that a person, acting as or on behalf of a candidate or poli-
51 tical committee under circumstances evincing an intent to violate such
52 law, has unlawfully accepted a contribution in excess of a contribution
53 limitation established in article fourteen of this chapter, which could
54 warrant a civil penalty as provided for in subdivision three of section
55 14-126 of this chapter, the board shall direct the commencement of a
56 special proceeding in the supreme court.
S. 4009 25
1 (b) If the state board of elections determines, as provided in subdi-
2 vision ten of this section that reasonable cause exists to believe a
3 violation warranting criminal prosecution has taken place, the board
4 shall refer the matter to a district attorney and shall make available
5 to such district attorney all papers, documents, testimony and findings
6 relevant to its investigation.
7 12. Upon notification that a special proceeding has been commenced by
8 a party other than the state board of elections, pursuant to section
9 16-114 of this chapter, the state board of elections shall direct the
10 enforcement counsel to investigate the alleged violations unless other-
11 wise directed by the court.
12 13. The enforcement counsel shall prepare a report, to be included in
13 the annual report to the governor and legislature, summarizing the
14 activities of the unit during the previous year. Such report shall
15 include: (a) the number of complaints received; (b) the number of
16 complaints that were found to need investigation and the nature of each
17 complaint; and (c) the number of matters that have been resolved. The
18 report shall not contain any information for which disclosure is not
19 permitted.
20 14. The state board of elections may promulgate rules and regulations
21 consistent with law to effectuate the provisions of this section.
22 § 24. The state of New York shall appropriate during each fiscal year
23 to the New York state board of elections enforcement unit, not less than
24 thirty-five percent of the appropriation available from the general fund
25 for the state board of elections to pay for the expenses of such
26 enforcement unit. The enforcement counsel shall have independent author-
27 ity over said appropriation including the power to hire necessary staff.
28 § 25. Severability. If any clause, sentence, subdivision, paragraph,
29 section or part of title II of article 14 of the election law, as added
30 by section ten of this act be adjudged by any court of competent juris-
31 diction to be invalid, such judgment shall not affect, impair or invali-
32 date the remainder thereof, but shall be confined in its operation to
33 the clause, sentence, subdivision, paragraph, section or part thereof
34 directly involved in the controversy in which such judgment shall have
35 been rendered.
36 § 26. This act shall take effect immediately; provided, however, all
37 state candidates and constitutional convention delegates will be eligi-
38 ble to participate in the public financing system beginning with the
39 2017 election and state legislature candidates will be eligible to
40 participate in the public financing system beginning with the 2019
41 election.
