Amd Art 14 Art Head, desig SS14-100 - 14-130 to be Title 1, add Title head, Title II SS14-200 - 14-216, El L;
add S359-gg, Gen Bus L; add S99-u, St Fin L; add S630-c, Tax L
Enacts the "Comptroller Campaign Finance Reform Act" to provide for public financing for campaigns for the office of the state comptroller; authorizes the imposition of an additional surcharge on recoveries for fraudulent practices regarding stocks, bonds and other securities; establishes the New York State campaign finance fund; provides for a New York State campaign finance fund check-off.
STATE OF NEW YORK
________________________________________________________________________
4239--A
2013-2014 Regular Sessions
IN SENATE
March 15, 2013
___________
Introduced by COMMITTEE ON RULES -- (at request of the State Comp-
troller) -- read twice and ordered printed, and when printed to be
committed to the Committee on Elections -- recommitted to the Commit-
tee on Elections in accordance with Senate Rule 6, sec. 8 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the election law, in relation to enacting the comp-
troller campaign finance reform act to provide for public financing
for campaigns for the office of state comptroller; to amend the gener-
al business law, in relation to authorizing the imposition of an addi-
tional surcharge on recoveries for fraudulent practices relating to
stocks, bonds and other securities; to amend the state finance law, in
relation to establishing the New York state campaign finance fund; and
to amend the tax law, in relation to providing for a New York state
campaign finance fund check-off
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The article heading of article 14 of the election law is
2 amended to read as follows:
3 CAMPAIGN [RECEIPTS AND EXPENDITURES] FINANCE
4 § 2. Sections 14-100 through 14-130 of article 14 of the election law
5 are designated title 1 and a new title heading is added to read as
6 follows:
7 CAMPAIGN RECEIPTS AND EXPENDITURES
8 § 3. Article 14 of the election law is amended by adding a new title 2
9 to read as follows:
10 TITLE II
11 COMPTROLLER CAMPAIGN FINANCE REFORM ACT
12 Section 14-200. Short title.
13 14-201. Declaration of legislative findings and intent.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04655-04-3
S. 4239--A 2
1 14-202. Applicability and definitions.
2 14-203. Reporting requirements.
3 14-204. Contribution and receipt limitations.
4 14-205. Proof of compliance.
5 14-206. Eligibility.
6 14-207. Voluntary expenditure limits for participating candi-
7 dates.
8 14-208. Payment of public matching funds.
9 14-209. Use of public matching funds; qualified campaign expend-
10 itures.
11 14-210. Campaign finance board; general powers and duties.
12 14-211. Audits and repayments.
13 14-212. Civil enforcement.
14 14-213. Criminal penalties.
15 14-214. Reports.
16 14-215. Debates.
17 14-216. Distributions from campaign finance fund.
18 § 14-200. Short title. This title shall be known and may be cited as
19 the "comptroller campaign finance reform act".
20 § 14-201. Declaration of legislative findings and intent. The legis-
21 lature is committed to reforming New York's campaign finance system for
22 the office of the state comptroller. As sole trustee of the New York
23 state and local retirement system and as chief fiscal officer for the
24 state of New York, the comptroller has a fiduciary duty to the members,
25 retirees and beneficiaries of the retirement system and to the people of
26 New York state.
27 In recognition of these issues, this act provides for the public
28 financing of the campaign for the office of the state comptroller. The
29 inclusion of voluntary expenditure caps combined with a minimum thresh-
30 old for participation in the campaign finance program and contribution
31 limits as provided for in this title furthers the state's interest in
32 encouraging qualified candidates to run for the office of state comp-
33 troller regardless of their access to wealth, thus increasing public
34 debate and participation in the democratic process.
35 Finally, the legislature finds that an independent entity within the
36 state board of elections to oversee this program is necessary to carry
37 out this act's mandates. This act creates a campaign finance board with-
38 in the state board of elections to monitor and enforce the program and
39 its provisions to ensure that the intent of this act is fully imple-
40 mented.
41 § 14-202. Applicability and definitions. This title shall apply exclu-
42 sively to campaign financing of candidates for the nomination for
43 election, and for election to, the office of state comptroller. For
44 purposes of this title, the following terms shall have the following
45 meanings:
46 1. "Authorized committee" means a political committee designated by a
47 candidate pursuant to section 14-203 of this title to receive contrib-
48 utions and make expenditures in support of such candidate's campaign. No
49 more than one authorized committee may be designated by a candidate in
50 any election cycle.
51 2. "Board" or "campaign finance board" means the board created by
52 section 14-210 of this title to administer the campaign finance fund.
53 3. "Candidate" means any candidate for nomination for election, or for
54 election to, the office of state comptroller whether such candidate is a
55 "participating candidate" or "nonparticipating candidate" as defined in
56 this section.
S. 4239--A 3
1 4. "Contribution" means:
2 (a) any gift, subscription, outstanding loan (to the extent provided
3 for in section 14-114 of this article), advance, or deposit of money or
4 anything of value, made in connection with the nomination for election,
5 or election, of any candidate, or made to promote the success or defeat
6 of a political party or principle, or of any ballot proposal;
7 (b) any funds received by a political committee from another political
8 committee to the extent such funds do not constitute a transfer; and
9 (c) any payment, by any person other than a candidate or an authorized
10 committee, made in connection with the nomination for election or
11 election of any candidate, or any payment made to promote the success or
12 defeat of a political party or principle, or of any ballot proposal
13 including but not limited to compensation for the personal services of
14 any individual which are rendered in connection with a candidate's
15 election or nomination without charge; provided however, that none of
16 the foregoing shall be deemed a contribution if it is made, taken or
17 performed by a candidate or his or her spouse or by a person or a poli-
18 tical committee independent of the candidate or his or her agents or
19 political committees. For purposes of this title, the term "independent
20 of the candidate or his or her agents or political committees" shall
21 mean that the candidate or his or her agents or political committee did
22 not authorize, request, suggest, foster or cooperate in any such activ-
23 ity; and provided further, that the term contribution shall not include:
24 (i) the value of services provided without compensation by individuals
25 who volunteer a portion or all of their time on behalf of a candidate or
26 political committee;
27 (ii) the use of real or personal property and the cost of invitations,
28 food and beverages voluntarily provided by an individual to a candidate
29 or political committee on the individual's residential premises for
30 candidate-related activities to the extent such services do not exceed
31 five hundred dollars in value;
32 (iii) the travel expenses of any individual who on his or her own
33 behalf volunteers his or her personal services to any candidate or poli-
34 tical committee to the extent such expenses are unreimbursed and do not
35 exceed five hundred dollars in value; and
36 (iv) expenditures by a bona fide membership organization in support of
37 the following activities by members of the organization who are volun-
38 teering their time on behalf of a candidate, not to exceed twenty-five
39 dollars per member who volunteer for: (1) transportation of volunteers
40 to and from campaign activities; (2) cost of feeding volunteers while
41 volunteering for the campaign; and (3) materials such as badges and
42 clothing that identifies the name of the organization or candidate.
43 5. "Contributor" means an entity, including, but not limited to,
44 natural persons, associations, bona fide membership organizations, part-
45 nerships and corporations, that makes a contribution, as defined in
46 subdivision four of this section.
47 6. "Covered election" means any primary election for nomination, or
48 general election for election, to the office of state comptroller.
49 7. "Election cycle" means the four-year period starting the day after
50 the general election and ending on the date of the next succeeding
51 general election for candidates for statewide office.
52 8. "Expenditure" means any gift, subscription, advance, payment, or
53 deposit of money or anything of value, or a contract to make any gift,
54 subscription, payment, or deposit of money or anything of value, made in
55 connection with the nomination for election, or election, of any candi-
S. 4239--A 4
1 date. Expenditures made by contract are deemed made when such funds are
2 obligated.
3 9. "Fund" means the campaign finance fund created by section ninety-
4 nine-v of the state finance law.
5 10. "Family or household members" mean the following individuals:
6 (a) persons related by consanguinity or affinity;
7 (b) persons legally married to one another;
8 (c) persons formerly married to one another regardless of whether they
9 still reside in the same household;
10 (d) persons who have a child in common regardless of whether such
11 persons are married or have lived together at any time; or
12 (e) persons who are not related by consanguinity or affinity and who
13 are or have been in an intimate relationship regardless of whether such
14 persons have lived together at any time.
15 11. "Item with significant value" means any item, including any item
16 valued at twenty-five dollars or more.
17 12. "Legislative leader" means any of the following: the temporary
18 president of the senate; the speaker of the assembly; the minority lead-
19 er of the senate; or the minority leader of the assembly.
20 13. "Matchable contribution" means a contribution, contributions or
21 such portion of a contribution or contributions made by a natural person
22 residing in the state of New York at the time of such contribution, with
23 a value not to exceed two hundred fifty dollars, to a participating
24 candidate for any primary and a contribution, contributions or such
25 portion of a contribution or contributions made by a natural person
26 residing in the state of New York at the time of such contribution with
27 a value not to exceed two hundred fifty dollars to a participating
28 candidate for a general election held in the same election cycle that
29 has been reported in full to the state board of elections in accordance
30 with sections 14-102 and 14-104 of this article by the candidate's
31 authorized committee and has been contributed on or before the date of
32 the applicable primary or general election. Any contribution, contrib-
33 utions, or such portion of a contribution or contributions determined to
34 be invalid for public matching funds by the board pursuant to the
35 provisions of this title may not be treated as a matchable contribution.
36 In addition, the following contributions are not matchable: (a) loans;
37 (b) in-kind contributions of property, goods, or services; (c) contrib-
38 utions in the form of the purchase price paid for an item with signif-
39 icant value; (d) anonymous contributions or contributions whose source
40 is not itemized as required by section 14-203 of this title; (e)
41 contributions received during a previous election cycle; (f) illegal
42 contributions; and (g) contributions from individuals under the age of
43 eighteen years at the time the contribution is made.
44 14. "Nonparticipating candidate" shall mean a candidate for the office
45 of state comptroller for a covered election who fails to file a written
46 certification in the form of an affidavit pursuant to section 14-206 of
47 this title.
48 15. "Participating candidate" shall mean any candidate for nomination
49 for election, or election, to the office of state comptroller who files
50 a written certification in the form of an affidavit pursuant to section
51 14-206 of this title.
52 16. "Political committee" means a committee as defined in section
53 14-100 of this article.
54 16-a. "Public matching funds" means monies paid from the campaign
55 finance fund to the authorized committee of participating candidates
56 pursuant to this title.
S. 4239--A 5
1 17. "Qualified campaign expenditure" shall mean an expenditure for
2 which public matching funds may be used.
3 18. "Threshold for eligibility" shall mean the amount of matchable
4 contributions that a candidate's authorized committee must receive in
5 total in order for such candidate to qualify for voluntary public
6 financing under this article.
7 19. "Transfer" shall mean any exchange of funds or any thing of value
8 between political committees authorized by the same candidate taking
9 part solely in his or her campaign, or any exchange of funds between a
10 party or constituted committee and a candidate or his or her designated
11 authorized political committees.
12 § 14-203. Reporting requirements. 1. Every participating candidate
13 shall designate only one authorized committee to be eligible to receive
14 contributions of public matching funds. Before receiving any such
15 contribution or making any expenditure therefrom for a covered election,
16 each participating candidate shall notify the state board of elections
17 and the board as to the existence of his or her eligible authorized
18 committee that has been designated and approved by such candidate. Such
19 authorized committee shall, before receiving any contribution or making
20 any expenditure for a covered election: (a) designate a treasurer; (b)
21 obtain a tax identification number from the internal revenue service;
22 and (c) submit to the state board of elections, either in writing or
23 electronically, the identification number of the committee designated to
24 be eligible to receive public matching funds.
25 2. Disclosure. (a) Every participating candidate shall submit such
26 reports to the state board of elections as required by title one of this
27 article. Copies of such reports shall also be submitted to the campaign
28 finance board created pursuant to this article at the same time such
29 reports are submitted to the state board of elections.
30 (b) The campaign finance board shall review each disclosure report
31 filed with the state board of elections pursuant to title one of this
32 article and shall inform participating candidates and political commit-
33 tees including the authorized committee, of relevant questions the board
34 has concerning: (i) compliance with requirements of this title and of
35 the rules issued by the board; and (ii) qualification for receiving
36 public matching funds pursuant to this title. In the course of such
37 review, the board shall give candidates and political committees includ-
38 ing the authorized committee, an opportunity to respond to and correct
39 potential violations and give candidates an opportunity to address ques-
40 tions the board has concerning their matchable contribution claims or
41 other issues concerning eligibility for receiving public matching funds
42 pursuant to this title. Nothing in this paragraph shall preclude the
43 board from subsequently reviewing such a disclosure report and taking
44 any action otherwise authorized by this title.
45 (c) Only itemized contributions contained in reports filed with the
46 state board of elections shall be eligible for matching funds pursuant
47 to this title.
48 § 14-204. Contribution and receipt limitations. 1. A participating
49 candidate and his or her authorized committee shall not accept, either
50 directly or indirectly:
51 (a) total contributions from any one contributor that exceed two thou-
52 sand dollars in any primary in an election cycle for the office of state
53 comptroller and two thousand dollars for a general election in an
54 election cycle; or
S. 4239--A 6
1 (b) any contribution from a political committee that has not regis-
2 tered with the state board of elections or has not registered with the
3 appropriate entity as required by law.
4 2. (a) Notwithstanding the expenditure limit for such office as fixed
5 by this title for candidates who have elected to accept public funds, a
6 participating candidate for state comptroller in a primary or general
7 election or such candidate's authorized committee may accept from a
8 state constituted committee which has nominated such candidate services
9 in an amount which, in the aggregate, does not exceed one million
10 dollars; provided, however, that twenty-five percent of such amount may
11 be accepted in the form of a transfer.
12 (b) For purposes of this subdivision, the term "state constituted
13 committee" includes any of its subcommittees.
14 3. Notwithstanding any expenditure limit set forth in this title, each
15 county committee of any party which nominates a candidate for state
16 comptroller, including within the term "county committee" any of its
17 subcommittees, may expend in support of each such candidate of such
18 party who has agreed to accept public financing, an amount which shall
19 not exceed the sum of two cents for each voter registered in such county
20 as determined by the record of the appropriate board of elections as of
21 the preceding general election.
22 4. In computing the aggregate amount expended for purposes of this
23 section, expenditures made by a state constituted committee or a county
24 committee in support of more than one candidate shall be allocated among
25 such candidates supported by the committee in accordance with formulas
26 promulgated by the state board of elections or, in the absence of such
27 official formulas, in accordance with a formula based upon reasonable
28 standards. The statements filed by such constituted committee in accord-
29 ance with this chapter shall set forth, in addition to the other infor-
30 mation required, the total amount expended by the constituted committee
31 on behalf of all such candidates and the amount allocated to each candi-
32 date by dollar amount and percentage. Expenditures by a party for activ-
33 ities which do not support or oppose the election of any candidate or
34 candidates by name or by clear inference shall not be regarded as
35 expenditures on behalf of or in opposition to a candidate.
36 5. Notwithstanding any other contribution limit specified in this
37 section, participating candidates may give, out of their own money,
38 three times the applicable contribution limit to their own campaigns,
39 provided that none of the money so contributed shall qualify for match-
40 ing funds.
41 6. All monetary contributions and all public matching funds accepted
42 by a candidate's authorized committee shall be deposited into an account
43 with a bank licensed by the New York state department of financial
44 services held in the name of the authorized political committee within
45 ten business days of receipt. Each authorized committee shall have no
46 more than one checking account. Monetary contributions, other than
47 public matching funds, may be invested in accordance with the provisions
48 of law relating thereto.
49 7. Contributions to candidates in covered elections shall, for each
50 election cycle, in all other respects, be subject to the limitations and
51 provisions of title one of this article.
52 § 14-205. Proof of compliance. Candidates and political committees
53 shall maintain such records of receipts and expenditures for a covered
54 election as may be required by the campaign finance board. Candidates
55 and political committees shall obtain and furnish to the board any
56 information it may request relating to financial transactions or
S. 4239--A 7
1 contributions and furnish such documentation and other proof of compli-
2 ance with this title as may be requested by the board. Candidates and
3 political committees shall maintain copies of such records for a period
4 of five years following the general election.
5 § 14-206. Eligibility. 1. To be eligible for public financing pursuant
6 to this title, a candidate must: (a) be a candidate in a covered
7 election; (b) satisfy all the requirements of law to have his or her
8 name on the ballot; (c) in the case of a covered general election, be
9 opposed by another candidate on the ballot who is not a write-in candi-
10 date; (d) submit a certification in the form of an affidavit, in such
11 form as may be prescribed by the campaign finance board, that sets forth
12 his or her agreement to comply with the terms and conditions for the
13 provision of such funds in each covered election which shall be filed
14 with such board by June first directly before the election; (e) be
15 certified as a participating candidate by such board not later than two
16 weeks after the filing of such affidavit; (f) not make, and not have
17 made, expenditures from, or use, his or her personal funds or property
18 or personal funds or property jointly held with his or her spouse,
19 domestic partner, or child in connection with his or her nomination for
20 election or election to a covered office except as a contribution to his
21 or her authorized committee in an amount that exceeds three times the
22 applicable contribution limit from an individual contributor to candi-
23 dates for the office that he or she is seeking; (g) meet the threshold
24 for eligibility set forth in subdivision two of this section; (h) abide
25 by the requirements set forth in this title and chapter during the post-
26 election period; and (i) not make, and not have made, and his or her
27 authorized committee must not make, and not have made expenditures that
28 in the aggregate exceed the applicable spending limit as provided in
29 this title.
30 2. (a) The threshold for eligibility for public funding for partic-
31 ipating candidates shall be the receipt of contributions totaling one
32 hundred fifty thousand dollars in matchable contributions in single
33 amounts of no less than ten dollars and no more than two hundred fifty
34 dollars, including at least fifty matchable contributions from natural
35 persons registered to vote in each of at least seventy-five percent of
36 the total number of congressional districts in the state at the time of
37 such covered election.
38 (b) Any participating candidate meeting the threshold for eligibility
39 in a primary election shall be deemed to have met the threshold for
40 eligibility for such office in any other election held in the same
41 election cycle.
42 § 14-207. Voluntary expenditure limits for participating candidates.
43 1. Participating candidates may spend no more than five million dollars
44 for the primary election. Expenditures made before or on the date of a
45 primary election shall be deemed to have been made for such primary
46 election. Expenses made after the date of a primary election shall be
47 deemed to have been made for such primary election if made for liabil-
48 ities incurred prior to such primary election.
49 2. Participating candidates may spend no more than seven million five
50 hundred thousand dollars in a general election campaign.
51 3. Expenditures made for the purpose of complying with this title or
52 chapter, including legal fees, accounting fees, the cost of record
53 creation and retention, and other necessary compliance expenditures, and
54 expenses to challenge or defend the validity of petitions of designation
55 or nomination or certificates of nomination, acceptance, authorization,
56 declination or substitution, and expenses related to the canvassing of
S. 4239--A 8
1 election results, shall not be limited by the spending limits of this
2 section. The burden is on the candidate to substantiate exempt expendi-
3 tures. The board shall promulgate rules to implement this section.
4 § 14-208. Payment of public matching funds. 1. No public matching
5 funds shall be paid to an authorized committee unless the campaign
6 finance board determines that the participating candidate has qualified
7 pursuant to this title. Payment shall not exceed the amounts specified
8 in this section and may be made only to the participating candidate's
9 authorized committee. No public matching funds shall be used except to
10 reimburse or pay for qualified campaign expenditures actually and
11 lawfully incurred or to repay loans used to pay qualified campaign
12 expenditures.
13 2. If the threshold for eligibility is met, the participating candi-
14 date's authorized committee shall receive payment for qualified campaign
15 expenditures of six dollars of public matching funds for each one dollar
16 of matchable contributions for a primary election and six dollars of
17 public matching funds for each one dollar of matchable contributions for
18 a general election received and reported to the board; provided, howev-
19 er, that the total amount of public matching funds shall not exceed two
20 million two hundred thousand dollars for each participating candidate
21 for a primary and shall not exceed three million two hundred thousand
22 dollars for each participating candidate for a general election in any
23 election cycle.
24 3. The commissioner of taxation and finance shall make all payments of
25 public matching funds to participating candidates as soon as practica-
26 ble, but no later than three days after submission by the participating
27 candidate of a campaign contribution report filed with the state board
28 of elections in compliance with this article. The campaign finance board
29 shall verify eligibility for and amount of public matching funds within
30 one day after receipt of such contribution report. Upon determination of
31 eligibility of a participating candidate for public matching funds and
32 of amount of such matching funds, the campaign finance board shall
33 submit within one day a duly approved, certified and executed voucher to
34 the department of taxation and finance requesting payment of such match-
35 ing funds and payment thereof shall be made to the participating candi-
36 date's authorized committee not less than one day after such voucher is
37 received by the department of taxation and finance. If any of the time
38 limits in this title for payment fall on a weekend or holiday, payment
39 shall be made on the next business day.
40 4. The campaign finance board and the department of taxation and
41 finance shall promulgate rules to facilitate electronic fund transfers
42 directly from the fund into an authorized committee's bank account.
43 § 14-209. Use of public matching funds; qualified campaign expendi-
44 tures. 1. Public matching funds provided under the provisions of this
45 title may be used only by an authorized committee for expenditures to
46 further the participating candidate's nomination for election, or
47 election, including paying for debts incurred within one year before an
48 election to further the participating candidate's nomination for
49 election or election.
50 2. Such public matching funds may not be used for: (a) an expenditure
51 that violates any law or regulation; (b) an expenditure in excess of the
52 fair market value of services, materials, facilities or other item of
53 significant value received in exchange; (c) an expenditure made after
54 the candidate has been finally disqualified from the ballot; (d) an
55 expenditure for an obligation incurred after the only remaining opponent
56 of the candidate has been finally disqualified from the ballot; (e) an
S. 4239--A 9
1 expenditure made by cash payment; (f) a contribution or loan made to
2 another candidate or political committee; (g) an expenditure to support
3 or oppose another candidate or political committee; (h) gifts, except
4 brochures, buttons, signs and other printed campaign material; (i) legal
5 fees to defend against a criminal charge; or (j) a payment to an immedi-
6 ate family member of the participating candidate.
7 § 14-210. Campaign finance board; general powers and duties. 1. There
8 shall be a board within the state board of elections known as the
9 "campaign finance board" composed of seven members, of which one member
10 shall be appointed by the governor, one member shall be appointed by
11 each legislative leader of the senate and assembly. Two additional
12 members who shall be representative of non-partisan citizens' groups
13 shall be appointed by the governor upon consultation with the legisla-
14 tive leaders and the governor shall designate one to be the chair. No
15 member of the campaign finance board shall hold elective office, nor
16 shall any member be a lobbyist as defined in subdivision (a) of section
17 one-c of the legislative law. The chair shall be responsible for manag-
18 ing the campaign finance board. The members shall each serve for a term
19 of four years.
20 2. Each member's term shall commence on June first, two thousand
21 fifteen. In case of a vacancy in the office of a member, a member shall
22 be appointed according to the original manner of appointment. Each
23 member shall be a resident of the state of New York and registered to
24 vote therein. Each member shall agree not to make and shall not make
25 contributions to any candidate or authorized committee for nomination
26 for election or for election to the office of state comptroller. No
27 member shall serve as an officer of a political party or committee or be
28 a candidate or participate in any capacity in a campaign by a candidate
29 for nomination for election, or for election to the office of state
30 comptroller. An officer or employee of the state or any state agency
31 shall not be eligible to be a member of the campaign finance board.
32 3. The members of the campaign finance board shall be entitled to
33 receive payment for actual and necessary expenses incurred in the
34 performance of their duties as members of such board.
35 4. The campaign finance board may employ or shall utilize existing
36 staff of the state board of elections as may be necessary, including an
37 executive director and a counsel, and make necessary expenditures
38 subject to appropriation. The campaign finance board shall retain an
39 independent auditor to perform ongoing audits of each covered election
40 by contract entered into pursuant to section one hundred sixty-three of
41 the state finance law.
42 5. A member of the campaign finance board may be removed for cause by
43 the appointing authority upon notice and an opportunity for a hearing.
44 6. In addition to the enforcement powers, and any other powers and
45 duties specified by law, the campaign finance board shall:
46 (a) (i) render advisory opinions with respect to questions arising
47 under this title upon the written request of a candidate, an officer of
48 a political committee or member of the public, or upon its own initi-
49 ative; (ii) promulgate rules regarding reasonable times to respond to
50 such requests; and (iii) make public the questions of interpretation for
51 which advisory opinions will be considered by the campaign finance board
52 and its advisory opinions, including by publication on its website;
53 (b) develop a program for informing candidates and the public as to
54 the purpose and effect of the provisions of this title, including by
55 means of a website;
S. 4239--A 10
1 (c) have the authority to promulgate such rules and regulations and
2 prescribe such forms as the campaign finance board deems necessary for
3 the administration of this title; and
4 (d) in conjunction with the state board of elections develop an inter-
5 active, searchable computer database that shall contain all information
6 necessary for the proper administration of this title including informa-
7 tion on contributions to and expenditures by candidates and their
8 authorized committees and distributions of moneys from the fund and
9 shall be accessible to the public on the state board of elections'
10 website.
11 7. Consistent with the provisions of the civil service law and subdi-
12 vision seventeen of section seventy-three of the public officers law,
13 and notwithstanding the provisions of any other law to the contrary, all
14 positions on the staff of the campaign finance board shall be classified
15 in the exempt class of the civil service and such positions shall be
16 filled, to the extent possible, with an equal number of persons from
17 each of the two political parties for which the highest and the next
18 highest number of votes were cast for the office of state comptroller at
19 the last preceding general election for such office.
20 8. The campaign finance board's administration of the fund shall be
21 governed by the provisions of this title and section ninety-nine-v of
22 the state finance law.
23 9. The campaign finance board and its proceedings shall be governed by
24 the state administrative procedure act and subject to articles six and
25 seven of the public officers law.
26 10. The campaign finance board may take such other actions as are
27 necessary and proper to carry out the purposes of this title.
28 § 14-211. Audits and repayments. 1. The campaign finance board is
29 hereby empowered to audit and examine all matters relating to the
30 performance of its functions and any other matter relating to the admin-
31 istration of this title. Such audits shall be conducted as frequently as
32 the campaign finance board deems necessary to ensure compliance with
33 this title. Every candidate who receives public matching funds under
34 this title shall also be audited by the campaign finance board post-e-
35 lection. The cost of complying with a post-election audit shall be borne
36 by the candidate's authorized committee. A candidate who has received
37 public matching funds under this title must maintain a reserve of at
38 least one percent of the total amount of matching funds received by such
39 candidate in his or her campaign account to comply with the post-elec-
40 tion audit. A candidate who runs in both a primary and a general
41 election, must maintain a reserve of one percent of the total amount of
42 public matching funds received by such candidate for both his or her
43 primary and general election. A candidate may use public matching funds,
44 private funds or a combination of public and private funds to comply
45 with a post-election audit. The campaign finance board shall issue to
46 each campaign audited the final post-election audit report that details
47 its findings and shall provide such audit to the governor and legisla-
48 tive leaders and make such audit report available on the state board of
49 elections' website.
50 2. If the campaign finance board determines that any portion of a
51 payment made to a candidate's authorized committee from the fund
52 exceeded the amount that such candidate was eligible to receive pursuant
53 to this title, the campaign finance board shall notify such committee
54 and such committee shall pay to the campaign finance board an amount
55 equal to the amount of the excess payment; provided, however, that if
56 the erroneous payment was due to an error made by the campaign finance
S. 4239--A 11
1 board, then the erroneous payment will be offset against any future
2 payment, if any. The participating candidate and the candidate's author-
3 ized committee shall be jointly and severally liable for any repayments
4 due to the campaign finance board for deposit by such board into the New
5 York state campaign finance fund.
6 3. If the campaign finance board determines that any portion of a
7 payment made to a candidate's authorized committee from the New York
8 state campaign finance fund was used for purposes other than qualified
9 campaign expenditures, the campaign finance board shall notify such
10 committee of the amount so disqualified and such committee shall pay to
11 the campaign finance board an amount equal to such disqualified amount.
12 Such monies shall be deposited into the New York state campaign finance
13 fund created pursuant to section ninety-nine-v of the state finance law.
14 The candidate and the candidate's authorized committee shall be jointly
15 and severally liable for any repayments due to the campaign finance
16 board.
17 4. If the total of contributions, other receipts, and payments from
18 the New York state campaign finance fund as matchable funds received by
19 a participating candidate and his or her authorized committee exceeds
20 the total campaign expenditures of such candidate and committee for all
21 covered elections held in the same calendar year, such candidate and
22 committee shall use such excess funds to reimburse the New York state
23 campaign finance fund for payments received by such committee from such
24 fund during such calendar year. A participating candidate shall pay to
25 the campaign finance board for deposit into the campaign finance fund
26 unspent matching funds for an election not later than thirty days after
27 all liabilities for the election campaign have been paid and in any
28 event, not later than twenty days after the date on which the campaign
29 finance board issues its final audit report for the participating candi-
30 date's committee; provided, however, that all unspent matching funds for
31 a participating candidate shall be immediately due and payable to the
32 campaign finance board for deposit into the New York state campaign
33 finance fund upon its determination that the participant willfully
34 delayed the post-election audit process. A participating candidate may
35 make post-election expenditures only for routine activities involving
36 nominal costs associated with winding up a campaign and responding to
37 the post-election audit. For accounting purposes, all private and
38 personal contributions shall be considered spent before revenue from the
39 fund is spent or committed.
40 § 14-212. Civil enforcement. 1. Any person or authorized committee who
41 knowingly and willfully fails to make a filing required by the
42 provisions of this title shall be subject to a fine to be imposed by the
43 campaign finance board in an amount not to exceed five thousand dollars.
44 2. Any person or authorized committee who knowingly and willfully
45 violates any other provision of this title or any rule promulgated here-
46 under shall be subject to a fine to be imposed by the campaign finance
47 board in an amount not to exceed ten thousand dollars.
48 3. Fines authorized under this section will be imposed by the campaign
49 finance board after a hearing at which the subject person or authorized
50 committee shall be given an opportunity to be heard. Such hearing shall
51 be held in such manner and upon such notice as may be prescribed by the
52 rules of the campaign finance board. For purposes of conducting such
53 hearings, the campaign finance board shall be deemed to be an agency
54 within the meaning of article three of the state administrative proce-
55 dure act and shall adopt rules governing the conduct of adjudicatory
56 proceedings and appeals taken pursuant to a proceeding commenced under
S. 4239--A 12
1 article seventy-eight of the civil practice law and rules relating to
2 the assessment of the fines herein authorized.
3 4. If the aggregate amount of expenditures by a participating candi-
4 date and such candidate's authorized committee exceed the expenditure
5 limit established by section 14-207 of this title, such candidate and
6 authorized committee shall be subject to a fine not to exceed three
7 times the sum by which such expenditures surpass the applicable spending
8 limit.
9 5. The campaign finance board shall publish on the state board of
10 elections' website the final order adjudicating any matter brought
11 pursuant to this section.
12 6. Any fines imposed by the campaign finance board pursuant to this
13 section shall be deposited into the New York state campaign finance
14 fund.
15 § 14-213. Criminal penalties. 1. Any person who knowingly and willful-
16 ly fails to make a filing required by the provisions of this title with-
17 in ten days after the date provided for such, or anyone that knowingly
18 and willfully violates any other provision of this title shall be guilty
19 of a misdemeanor and, in addition to such other penalties as may be
20 provided by law, shall be subject to a fine not to exceed the amount of
21 ten thousand dollars.
22 2. Any person who knowingly and willfully contributes, accepts or aids
23 or participates in the contribution or acceptance of a contribution in
24 an amount exceeding an applicable maximum specified in this article
25 shall be guilty of a misdemeanor and shall be subject to a fine not to
26 exceed the amount of ten thousand dollars.
27 3. Any person who knowingly makes a false statement or knowingly omits
28 a material fact to the campaign finance board or an auditor designated
29 by the campaign finance board during any audit conducted pursuant to
30 section 14-211 of this title shall be guilty of a class E felony.
31 4. In addition any other sentence lawfully imposed upon a finding of
32 guilt in a criminal prosecution commenced pursuant to the provisions of
33 this section, the court may order a defendant to repay to the campaign
34 finance board any public matching funds obtained as a result of any
35 criminal conduct.
36 5. All such prosecutions for criminal acts under this article shall be
37 prosecuted by the attorney general of the state of New York.
38 6. Any and all fines imposed pursuant to this section shall be made
39 payable to the campaign finance board for deposit into the New York
40 state campaign finance fund.
41 § 14-214. Reports. The campaign finance board shall submit a report to
42 the governor and legislative leaders on or before February first, two
43 thousand eighteen, and every four years thereafter, which shall include:
44 1. a list of the participating and nonparticipating candidates in
45 covered elections and the votes received by each candidate in those
46 elections;
47 2. the amount of contributions and loans received, and expenditures
48 made, on behalf of participating and nonparticipating candidates;
49 3. the amount of public matching funds each participating candidate
50 received, spent, and repaid pursuant to this article;
51 4. analysis of the effect of this title on the election campaign for
52 the office of state comptroller and the utility of applying the program
53 to other campaigns for statewide elective office, including its effect
54 on the sources and amounts of private financing, the level of campaign
55 expenditures, voter participation, the number of candidates, the candi-
S. 4239--A 13
1 dates' abilities to campaign effectively for public office, and the
2 diversity of candidates seeking and elected to office;
3 5. recommendations for changes or amendments to this title, including
4 changes in contribution limits, thresholds for eligibility and limits on
5 total matching funds as well as instituting a program of full public
6 campaign financing for election for all statewide offices; and
7 6. any other information that the campaign finance board deems rele-
8 vant.
9 § 14-215. Debates. The campaign finance board shall promulgate regu-
10 lations to facilitate debates among participating candidates. Partic-
11 ipating candidates are required to participate in at least one debate
12 before the primary election and in at least one debate before the gener-
13 al election for which the candidate receives public funds, unless the
14 participating candidate is running unopposed. A nonparticipating candi-
15 date may be a party to such debates.
16 § 14-216. Distributions from campaign finance fund. 1. This section
17 governs the campaign finance board's distribution of funds from the
18 campaign finance fund created by section ninety-nine-v of the state
19 finance law, except as otherwise provided in this title.
20 2. No moneys shall be paid to participating candidates in a primary
21 election any earlier than two weeks after the last day to file designat-
22 ing petitions for such primary election.
23 3. No moneys shall be paid to participating candidates in a general
24 election any earlier than a week after the primary election held to
25 nominate candidates for such election.
26 4. No moneys shall be paid to any participating candidate who has been
27 disqualified by the campaign finance board or whose designating
28 petitions have been declared invalid by the state board of elections or
29 a court of competent jurisdiction until and unless such finding is
30 reversed by an appellate court.
31 5. No payment from the fund in the possession of such a candidate or
32 such a candidate's authorized committee on the date of such disquali-
33 fication or invalidation may thereafter be expended for any purpose
34 except the payment of liabilities incurred before that date. All excess
35 public moneys paid to a disqualified candidate shall be returned to the
36 fund not less than thirty days after the general election for those
37 participating candidates who received public moneys for the general
38 election, and otherwise, not less than thirty days after the primary
39 election for those participating candidates who received public moneys
40 solely for the primary election.
41 6. (a) Participating candidates shall pay to the campaign finance
42 board unspent public campaign funds from an election not later than
43 thirty days after all liabilities for the election have been paid and,
44 in any event, not less than twenty days after the date upon which the
45 campaign finance board issues its final audit report for the participat-
46 ing candidate's committee; provided, however, that all unspent public
47 campaign funds for a participating candidate shall be immediately due
48 and payable to the campaign finance board upon its determination that
49 the participating candidate has, without just cause, delayed the post-e-
50 lection audit process. Unspent campaign funds determinations made by the
51 campaign finance board shall be based on the participating candidate
52 committee's receipts and expenditures. The campaign finance board may
53 also consider any other relevant information revealed in the course of
54 its audits or investigations or the investigations by any other agency.
55 (b) (i) A participating candidate may not use receipts for any purpose
56 other than disbursements in the preceding election until all unspent
S. 4239--A 14
1 public campaign funds have been repaid. A participating candidate shall
2 have the burden of demonstrating that a post-election expenditure is for
3 the preceding election.
4 (ii) Before repaying unspent public campaign funds, a participating
5 candidate may make post-election expenditures only for routine activ-
6 ities involving nominal costs associated with winding up a campaign and
7 responding to the post-election audit. Such expenditures may include:
8 payment of utility bills and rent; reasonable staff salaries and
9 consultant fees for responding to a post-election audit; reasonable
10 moving expenses related to closing a campaign office; a holiday card
11 mailing to contributors, campaign volunteers, and staff members; thank
12 you notes for contributors, campaign volunteers, and staff members;
13 payment of taxes and other reasonable expenses for compliance with
14 applicable tax laws; and interest expenses. Routine post-election
15 expenditures that may be paid for with unspent campaign funds do not
16 include such items as post-election mailings other than as specifically
17 provided for in this subparagraph; making contributions; making bonus
18 payments or gifts to staff members or volunteers, or holding any post-e-
19 lection day event, including, but not limited to, any meal or any party.
20 Unspent campaign funds may not be used for transition or inauguration
21 activities.
22 7. All monies received by the campaign finance board pursuant to this
23 section shall be deposited into the New York state campaign finance fund
24 pursuant to section ninety-nine-v of the state finance law.
25 § 4. The general business law is amended by adding a new section 359-
26 gg to read as follows:
27 § 359-gg. Additional surcharge. In addition to any penalty authorized
28 by section three hundred fifty-nine-g of this article or any damages or
29 other compensation recoverable including, but not limited to, any
30 settlement authorized by section sixty-three or sixty-three-c of the
31 executive law, there shall be assessed thereon an additional surcharge
32 in the amount of ten percent of the total amount of such penalty,
33 damages or settlement. Such surcharge shall be deposited in the New York
34 state campaign finance fund established by section ninety-nine-v of the
35 state finance law.
36 § 5. The state finance law is amended by adding a new section 99-v to
37 read as follows:
38 § 99-v. New York state campaign finance fund. 1. There is hereby
39 established in the custody of the commissioner of taxation and finance a
40 special fund to be known as the New York state campaign finance fund.
41 2. Such fund shall consist of all revenues received from the surcharge
42 imposed pursuant to section three hundred fifty-nine-gg of the general
43 business law, revenues received from campaign finance fund check-off
44 pursuant to section six hundred thirty-d of the tax law and all other
45 moneys credited or transferred thereto from any other fund or source
46 pursuant to law. Nothing contained in this section shall prevent the
47 state from receiving grants, gifts, bequests or voluntary contributions
48 for the purposes of the fund as defined in this section and depositing
49 them into the fund according to law. Monies in the fund shall be kept
50 separate from and not commingled with other funds held in the custody of
51 the commissioner of taxation and finance.
52 3. Moneys of the fund, following appropriation by the legislature, may
53 be expended for the purposes of making payments to candidates pursuant
54 to title two of article fourteen of the election law. Moneys shall be
55 paid out of the fund by the commissioner of taxation and finance on
56 vouchers certified or approved by the campaign finance board established
S. 4239--A 15
1 pursuant to title two of article fourteen of the election law, or the
2 duly designated representative of such board, in the manner prescribed
3 by law, not more than one working day after a voucher duly certified,
4 approved and executed by such board or its representative in the form
5 prescribed by the commissioner of taxation and finance is received by
6 the commissioner of taxation and finance.
7 4. Notwithstanding any provision of law to the contrary, if, in any
8 state fiscal year, the state campaign finance fund lacks the amount of
9 money to pay all claims vouchered by eligible candidates and certified
10 or approved by the campaign finance board, any such deficiency shall be
11 paid, upon audit and warrant of the state comptroller, from funds depos-
12 ited in the general fund of the state not more than one working day
13 after such voucher is received by the state comptroller.
14 5. Commencing in two thousand eighteen, if the surplus in the fund on
15 April first of the year after an election cycle exceeds twenty-five
16 percent of the disbursements from the fund over the previous four years,
17 the excess shall revert to the general fund of the state.
18 6. No public funds shall be paid to any participating candidates in a
19 primary election any earlier than the day that such candidate is certi-
20 fied as being on the ballot for such primary election.
21 7. No public funds shall be paid to any participating candidates in a
22 general election any earlier than the day after the day of the primary
23 election held to nominate candidates for such election.
24 8. No public funds shall be paid to any participating candidate who
25 has been disqualified or whose designating petitions have been declared
26 invalid by the appropriate board of elections or a court of competent
27 jurisdiction until and unless such finding is reversed by a higher
28 authority. No payment from the fund in the possession of such a candi-
29 date or such candidate's participating committee on the date of such
30 disqualification or invalidation may thereafter be expended for any
31 purpose except the payment of liabilities incurred before such date. All
32 such moneys shall be repaid to the fund.
33 § 6. The tax law is amended by adding a new section 630-d to read as
34 follows:
35 § 630-d. Contribution to New York state campaign finance fund. Effec-
36 tive for any taxable year commencing on or after January first, two-
37 thousand fourteen, an individual in any taxable year may elect to
38 contribute to the New York state campaign finance fund. Such contrib-
39 ution shall be in the amount of five dollars and shall not reduce the
40 amount of state tax owed by such individual. The commissioner shall
41 include space on the personal income tax return to enable a taxpayer to
42 make such contribution. Notwithstanding any other provision of law, all
43 revenues collected pursuant to this section shall be credited to the New
44 York state campaign finance fund and used only for those purposes
45 enumerated in section ninety-nine-v of the state finance law.
46 § 7. Severability. If any clause, sentence, subdivision, paragraph,
47 section or part of this act be adjudged by any court of competent juris-
48 diction to be invalid, such judgment shall not affect, impair or invali-
49 date the remainder thereof, but shall be confined in its operation to
50 the clause, sentence, subdivision, paragraph, section or part thereof
51 directly involved in the controversy in which such judgment shall have
52 been rendered.
53 § 8. This act shall take effect January 1, 2015.
