Rpld S6-120, S14-114 sub 6, sub 10 b, S14-124 sub 3, amd El L, generally; add S359-gg, Gen Bus L; add S99-v,
amd S95, St Fin L; add S630-d, Tax L
Enacts the "integrity in elections act of 2013"; requires the majority vote of the entire party committee for the jurisdiction in which a candidate for public office is running, in order to nominate such candidate as the party candidate; prohibits the transfer of funds between a candidate and committees not formed for the purposes of such candidate; limits independent expenditures for political purposes; limits contributions to $2,600 to any single candidate during an election cycle; enacts the campaign finance reform to provide for matching funds for the campaigns of state elected officials; 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; authorizes transfers from the abandoned property fund to such campaign finance fund; provides for a New York state campaign finance fund check-off.
STATE OF NEW YORK
________________________________________________________________________
4897
2013-2014 Regular Sessions
IN SENATE
April 30, 2013
___________
Introduced by Sens. KLEIN, CARLUCCI, SAVINO, VALESKY -- read twice and
ordered printed, and when printed to be committed to the Committee on
Elections
AN ACT to amend the election law, in relation to overhauling campaign
financing and providing a voluntary financing program for campaigns
for state officers; to amend the general business law, in relation to
authorizing the imposition of an additional surcharge on recoveries
for fraudulent practices relating to stocks, bonds and other securi-
ties; to amend the state finance law, in relation to establishing the
New York state campaign finance fund and providing for transfers ther-
eto from the abandoned property fund; to amend the tax law, in
relation to providing for a New York state campaign finance fund
check-off; and to repeal certain provisions of the election law relat-
ing thereto
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 "integrity in elections act of 2013".
3 § 2. Legislative intent. The legislature declares that it is in the
4 public interest to create and ensure a truly democratic political
5 system, one of the highest integrity, in which citizens, regardless of
6 their income, status or financial wealth, are enabled and encouraged to
7 compete for public office. The legislature further declares that large
8 and unregulated independent expenditures may grant the financial backers
9 of such independent expenditures undue influence in election based on
10 ability to pay. Finally, the legislature further declares that present
11 campaign finance laws must be amended to ensure that the voices of indi-
12 vidual small contributors are heard and that elections are conducted in
13 a fair and open manner.
14 Therefore, the legislature finds it necessary to establish a voluntary
15 system for the financing of campaigns for all qualified candidates for
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10662-04-3
S. 4897 2
1 state elective offices and constitutional convention delegates. The
2 legislature further finds that this new system which provides matching
3 funds for small contributions from individuals allows increased citizen
4 participation in state elections. The legislature also creates a new
5 campaign finance board placed within and working hand in hand with the
6 state board of elections to provide effective oversight and enforcement
7 of the voluntary campaign financing system. Finally, the legislature
8 lowers contribution limits for all contributors, whether or not the
9 candidate participates in the voluntary system, thereby removing the
10 influence of large contributions in state and local elections.
11 § 3. Section 6-120 of the election law is REPEALED.
12 § 4. Subdivision 10 of section 14-100 of the election law, as added by
13 chapter 8 of the laws of 1978 and as redesignated by chapter 9 of the
14 laws of 1978, is amended and four new subdivisions 12, 13, 14 and 15 are
15 added to read as follows:
16 10. "transfer" means any exchange of funds or any thing of value
17 between political committees authorized by the same candidate and taking
18 part solely in his or her campaign[, or any exchange of funds between a
19 party or constituted committee and a candidate or any of his authorized
20 political committees].
21 12. "clearly identified candidate" means that:
22 (1) the name of the candidate involved appears;
23 (2) a photograph or drawing of the candidate appears; or
24 (3) the identity of the candidate is apparent by unambiguous refer-
25 ence.
26 13. "general public audience" means an audience composed of members of
27 the public, including a targeted subgroup of members of the public;
28 provided, however, such term shall not include an audience solely
29 comprised of members, retirees and staff of a labor organization, or
30 their immediate family members, or an audience solely comprised of
31 shareholders and executives of a business entity.
32 14. "labor organization" means any organization of any kind which
33 exists for the purpose, in whole or in part, of representing employees
34 employed within the state in dealing with employers or employer organ-
35 izations, or with the state government or any political or civil subdi-
36 vision or other agency thereof, concerning terms and conditions of
37 employment, grievances, labor disputes, or other matters incidental to
38 the employment relationship. For the purposes of this article, each
39 local, parent national or parent international organization, and each
40 national, state, area and labor central labor body receiving dues from
41 affiliated labor organizations, shall be considered a separate labor
42 organization.
43 15. "board", "state board" or "state board of elections" means the
44 campaign finance board as established in title two of this article.
45 § 5. Subdivision 1 of section 14-102 of the election law, as amended
46 by chapter 8 of the laws of 1978 and as redesignated by chapter 9 of the
47 laws of 1978, is amended to read as follows:
48 1. The treasurer of every political committee which, or any officer,
49 member or agent of any such committee who, in connection with any
50 election, receives or expends any money or other valuable thing or
51 incurs any liability to pay money or its equivalent shall file state-
52 ments sworn, or subscribed and bearing a form notice that false state-
53 ments made therein are punishable as a class A misdemeanor pursuant to
54 section 210.45 of the penal law, at the times prescribed by this [arti-
55 cle] title setting forth all the receipts, contributions to and the
56 expenditures by and liabilities of the committee, and of its officers,
S. 4897 3
1 members and agents in its behalf. Such statements shall include the
2 dollar amount of any receipt[,] or contribution [or transfer], or the
3 fair market value of any receipt[,] or contribution [or transfer], which
4 is other than of money, the name and address of the [transferor,]
5 contributor or person from whom received, and [if the transferor,
6 contributor or person is] for any transfer, contribution or receipt made
7 by a political committee; the name of and the political unit represented
8 by the committee, the date of its receipt, the dollar amount of every
9 expenditure, the name and address of the person to whom it was made or
10 the name of and the political unit represented by the committee to which
11 it was made and the date thereof, and shall state clearly the purpose of
12 such expenditure. Any statement reporting a loan shall have attached to
13 it a copy of the evidence of indebtedness. Expenditures in sums under
14 fifty dollars need not be specifically accounted for by separate items
15 in said statements, and receipts and contributions aggregating not more
16 than ninety-nine dollars, from any one contributor need not be specif-
17 ically accounted for by separate items in said statements, provided
18 however, that such expenditures, receipts and contributions shall be
19 subject to the other provisions of section 14-118 of this [article]
20 title.
21 § 6. The election law is amended by adding a new section 14-107 to
22 read as follows:
23 § 14-107. Independent expenditures. 1. Definitions. For the purposes
24 of this section:
25 a. "Independent expenditure" means an expenditure, made in support or
26 opposition of a candidate, for an audio or video communication to a
27 general public audience via broadcast, cable or satellite or a written
28 communication to a general public audience via advertisements,
29 pamphlets, circulars, brochures, letterheads or other printed matter and
30 communications conveyed to five hundred or more members of a general
31 public audience by phone, computer or other electronic devices which:
32 (i) expressly advocates the election or defeat of a clearly identified
33 candidate or the success or defeat of a ballot proposal and (ii) such
34 candidate, the candidate's political committee or its agents, or a poli-
35 tical committee formed to promote the success or defeat of a ballot
36 proposal or its agents, did not authorize, request, suggest, foster or
37 cooperate in any such communication.
38 b. "Independent spender" means an individual or entity that makes an
39 independent expenditure or electioneering communication.
40 c. "Electioneering communication" means:
41 (i) an audio or video communication to a general public audience via
42 broadcast, cable or satellite, or a communication made by paid advertis-
43 ing that is published on the internet or in a newspaper or periodical
44 distributed to a general public audience, or a communication to five
45 hundred or more members of a general public audience by phone, computer
46 or other electronic devices;
47 (ii) which is broadcast or published within sixty days of a general
48 election or thirty days of a primary election;
49 (iii) which refers to a clearly identified candidate or ballot
50 proposal; and
51 (iv) such candidate, the candidate's political committee or its
52 agents, or a political committee formed to promote the success or defeat
53 of a ballot proposal or its agents, did not authorize, request, suggest,
54 foster or cooperate in any such communication.
55 d. Independent expenditures and electioneering communications shall
56 not include:
S. 4897 4
1 (i) a communication appearing in a written news story, commentary or
2 editorial or distributed through the facilities of any broadcasting
3 station, cable or satellite unless such publication or facilities are
4 owned or controlled by any political party, political committee or
5 candidate; or
6 (ii) a communication that constitutes a candidate debate or forum; or
7 (iii) a communication which constitutes an expenditure made by an
8 entity required to report such expenditure to the state board of
9 elections.
10 e. "Person" means a person, a group of persons, an entity, an organ-
11 ization, an association or a combination thereof.
12 2. Whenever any person makes an independent expenditure or electio-
13 neering communication that costs more than one thousand dollars in the
14 aggregate, such communication shall clearly state the name of the person
15 who paid for, or otherwise published or distributed, the communication
16 and state, with respect to communications regarding candidates or a
17 ballot proposal, that the communication is not authorized by any candi-
18 date, any candidate's political committee, any of its agents or by any
19 political committee or its agents formed to promote the success or
20 defeat of a ballot proposal. A knowing and willful violation of the
21 provisions of this subdivision shall subject the person to a civil
22 penalty of one thousand dollars or the cost of the communication, which-
23 ever is greater, in a special proceeding or civil action brought by the
24 state board of elections.
25 3. a. Any person which makes independent expenditures or electioneer-
26 ing communications that cost more than one thousand dollars in the
27 aggregate shall report such independent expenditures or electioneering
28 communications to the state board of elections on statements as provided
29 for in section 14-108 of this title.
30 b. Any independent expenditure or electioneering communication made
31 after the close of the period to be covered in the last statement filed
32 before any primary, general or special election, but before such
33 election, shall be reported within twenty-four hours in the same manner
34 as provided for in subdivision two of section 14-108 of this title.
35 4. Each such statement, as required by this section, shall include:
36 a. the name and address of the person making the statement;
37 b. the name and address of the person making the independent expendi-
38 ture or electioneering communication;
39 c. if the independent spender makes independent expenditures or elec-
40 tioneering communications using exclusively funds in a segregated bank
41 account consisting of funds that were paid directly to such account by
42 persons other than the independent spender that controls the account,
43 for each such payment to the account:
44 (i) the name and address of each person who made such payment during
45 the period covered by the statement;
46 (ii) the date and amount of such payment; and
47 (iii) the aggregate amount of all such payments made by the person
48 after January first of the year in which the primary, general, or
49 special election is held for a ballot proposal or the public office
50 sought; but only if such payment was made by a person who made payments
51 to the account in an aggregate amount of one thousand dollars or more
52 after January first of the year in which the primary, general, or
53 special election is held for a ballot proposal or the public office
54 sought;
55 d. if the independent spender makes independent expenditures or elec-
56 tioneering communications using funds other than funds in a segregated
S. 4897 5
1 bank account described in paragraph c of this subdivision, for each
2 payment to the independent spender:
3 (i) the name and address of each person who made such payment during
4 the period covered by the statement;
5 (ii) the date and amount of such payment; and
6 (iii) the aggregate amount of all such payments made by the person
7 after January first of the year in which the primary, general, or
8 special election is held for a ballot proposal or the public office
9 sought; but only if such payment was made by a person who made payments
10 to the independent spender in an aggregate amount of one thousand
11 dollars or more after January first of the year in which the primary,
12 general, or special election is held for a ballot proposal or the public
13 office sought;
14 e. the dollar amount paid for each independent expenditure or electio-
15 neering communication, the name and address of the person or entity
16 receiving the payment, the date the payment was made and a description
17 of the independent expenditure or electioneering communication; and
18 f. the election to which the independent expenditure or electioneering
19 communication pertains and the name of the clearly identified candidate
20 or the ballot proposal referenced.
21 5. Any report made pursuant to this section shall include a copy of
22 all materials that pertain to the independent expenditure or electio-
23 neering communication, including but not limited to broadcast, cable or
24 satellite schedules and scripts, advertisements, pamphlets, circulars,
25 flyers, brochures, letterheads and other printed matter.
26 6. Any report of a loan that is made for an independent expenditure
27 shall include written evidence of the indebtedness.
28 7. a. When an independent spender that is an entity making independent
29 expenditures or electioneering communications of one hundred dollars or
30 more aggregating five thousand dollars or more in the twelve months
31 preceding the election for communications that refer to any single
32 candidate, it is required to report:
33 (i) all contributions from other entities since the first day of the
34 calendar year preceding the year of the election; and
35 (ii) all contributions aggregating one thousand dollars or more
36 accepted from an individual during the twelve months preceding the
37 election.
38 b. Each contribution shall be disclosed in the reporting period in
39 which it was received. For each contribution, the independent spender
40 shall provide:
41 (i) for each contribution accepted from another entity, the entity's
42 name, address and type of organization;
43 (ii) for each contribution accepted from an individual, the individ-
44 ual's name and address; and
45 (iii) the date of receipt and amount of each such contribution.
46 c. Contributions that are earmarked for an explicitly stated non-elec-
47 toral purpose are not required to be reported; provided, however, that
48 records of these contributions must be maintained and may be requested
49 by the board to verify their qualifications for this exemption.
50 8. Every statement required to be filed pursuant to this section shall
51 be filed by electronic reporting process or overnight mail to the state
52 board of elections.
53 9. The state board of elections shall promulgate regulations with
54 respect to the statements required to be filed by this section and shall
55 provide forms suitable for such statements.
S. 4897 6
1 § 7. Subdivisions 1 and 3 of section 14-114 of the election law,
2 subdivision 1 as amended by chapter 79 of the laws of 1992, paragraphs a
3 and b of subdivision 1 as amended by chapter 659 of the laws of 1994 and
4 subdivision 3 as amended by chapter 517 of the laws of 1986, are amended
5 to read as follows:
6 1. The following limitations apply to all contributions to candidates
7 for election to any public office or for nomination for any such office,
8 or for election to any party positions, and to all contributions to
9 political committees working directly or indirectly with any candidate
10 to aid or participate in such candidate's nomination or election, other
11 than any contributions to any party committee or constituted committee:
12 a. In any election for a public office to be voted on by the voters of
13 the entire state, or for nomination to any such office, no contributor
14 may make a contribution to any candidate or political committee, and no
15 candidate or political committee may accept any contribution from any
16 contributor, which is in the aggregate amount greater than: (i) in the
17 case of any nomination to public office, [the product of the total
18 number of enrolled voters in the candidate's party in the state, exclud-
19 ing voters in inactive status, multiplied by $.005, but such amount
20 shall be not less than four thousand dollars nor more than twelve] two
21 thousand six hundred dollars [as increased or decreased by the cost of
22 living adjustment described in paragraph c of this subdivision], and
23 (ii) in the case of any election to a public office, [twenty-five] two
24 thousand six hundred dollars [as increased or decreased by the cost of
25 living adjustment described in paragraph c of this subdivision];
26 provided however, that the maximum amount contributed by any contributor
27 or accepted by any candidate or political committee for both a primary
28 and a general election shall not exceed two thousand six hundred
29 dollars; and provided further that the maximum amount which may be so
30 contributed or accepted[, in the aggregate,] from any candidate's child,
31 parent, grandparent, brother [and] or sister, [and] or the spouse of any
32 such persons, shall not exceed [in the case of any nomination to public
33 office an amount equivalent to the product of the number of enrolled
34 voters in the candidate's party in the state, excluding voters in inac-
35 tive status, multiplied by $.025, and in the case of any election for a
36 public office, an amount equivalent to the product of the number of
37 registered voters in the state excluding voters in inactive status,
38 multiplied by $.025] two thousand six hundred dollars. For the purposes
39 of this subdivision, the term "child" shall include persons eighteen
40 years of age or older.
41 b. In any other election for party position or for election to a
42 public office or for nomination for any such office, no contributor may
43 make a contribution to any candidate or political committee and no
44 candidate or political committee may accept any contribution from any
45 contributor, which [is in the aggregate amount greater than] shall not
46 exceed: (i) in the case of any election for party position, or for
47 nomination to public office, the product of the total number of enrolled
48 voters in the candidate's party in the district in which he is a candi-
49 date, excluding voters in inactive status, multiplied by $.05, or two
50 thousand six hundred dollars, and (ii) in the case of any election for a
51 public office, the product of the total number of registered voters in
52 the district, excluding voters in inactive status, multiplied by $.05,
53 or two thousand six hundred dollars, however in the case of a nomination
54 within the city of New York for the office of mayor, public advocate or
55 comptroller, such amount shall be not less than four thousand dollars
56 nor more than twelve thousand dollars [as increased or decreased by the
S. 4897 7
1 cost of living adjustment described in paragraph c of this subdivision];
2 in the case of an election within the city of New York for the office of
3 mayor, public advocate or comptroller, twenty-five thousand dollars [as
4 increased or decreased by the cost of living adjustment described in
5 paragraph c of this subdivision]; in the case of a nomination for state
6 senator, [four] two thousand six hundred dollars [as increased or
7 decreased by the cost of living adjustment described in paragraph c of
8 this subdivision]; in the case of an election for state senator, [six]
9 two thousand [two] six hundred [fifty] dollars [as increased or
10 decreased by the cost of living adjustment described in paragraph c of
11 this subdivision]; in the case of an election or nomination for a member
12 of the assembly, [twenty-five] two thousand six hundred dollars [as
13 increased or decreased by the cost of living adjustment described in
14 paragraph c of this subdivision]; but in no event shall any such maximum
15 [exceed fifty thousand dollars or] be less than one thousand dollars;
16 provided however, that the maximum amount which may be so contributed or
17 accepted[, in the aggregate,] from any candidate's child, parent, grand-
18 parent, brother [and] or sister, [and] or the spouse of any such
19 persons, shall not exceed in the case of any election for party position
20 or nomination for public office an amount equivalent to the number of
21 enrolled voters in the candidate's party in the district in which he is
22 a candidate, excluding voters in inactive status, multiplied by $.25 and
23 in the case of any election to public office, an amount equivalent to
24 the number of registered voters in the district, excluding voters in
25 inactive status, multiplied by $.25; or [twelve], two thousand six
26 hundred [fifty] dollars, [whichever is greater,] or in the case of a
27 nomination or election of a state senator, [twenty] two thousand six
28 hundred dollars, [whichever is greater,] or in the case of a nomination
29 or election of a member of the assembly [twelve] two thousand [five] six
30 hundred dollars[, whichever is greater, but in no event shall any such
31 maximum exceed one hundred thousand dollars]; provided, however, that
32 the maximum amount contributed by any contributor or accepted by any
33 candidate or political committee for both a primary and a general
34 election shall not exceed two thousand six hundred dollars; and
35 provided, further that the maximum amount which may be so contributed or
36 accepted from any candidate's child, parent, grandparent, brother or
37 sister, or the spouse of any such persons, shall not exceed two thousand
38 six hundred dollars for the nomination and election to a public office.
39 For the purposes of this subdivision, the term "child" shall mean
40 persons eighteen years of age or older.
41 [c. At the beginning of each fourth calendar year, commencing in nine-
42 teen hundred ninety-five, the state board shall determine the percentage
43 of the difference between the most recent available monthly consumer
44 price index for all urban consumers published by the United States
45 bureau of labor statistics and such consumer price index published for
46 the same month four years previously. The amount of each contribution
47 limit fixed in this subdivision shall be adjusted by the amount of such
48 percentage difference to the closest one hundred dollars by the state
49 board which, not later than the first day of February in each such year,
50 shall issue a regulation publishing the amount of each such contribution
51 limit. Each contribution limit as so adjusted shall be the contribution
52 limit in effect for any election held before the next such adjustment.]
53 3. As used in this section the term "contributor" shall [not] include
54 a party committee supporting the candidate of such party or a consti-
55 tuted committee supporting the candidate of such party.
56 § 8. Subdivision 6 of section 14-114 of the election law is REPEALED.
S. 4897 8
1 § 9. Paragraph a of subdivision 10 of section 14-114 of the election
2 law, as added by chapter 79 of the laws of 1992, is amended to read as
3 follows:
4 a. No contributor may make a contribution to a party or constituted
5 committee and no such committee may accept a contribution from any
6 contributor which, in the aggregate, is greater than [sixty-two] ten
7 thousand [five hundred] dollars per annum.
8 § 9-a. Paragraph b of subdivision 10 of section 14-114 of the election
9 law is REPEALED.
10 § 10. Subdivision 2 of section 14-116 of the election law, as amended
11 by chapter 260 of the laws of 1981, is amended to read as follows:
12 2. a. Notwithstanding [the provisions of subdivision one of this
13 section, any corporation or an organization financially supported in
14 whole or in part, by such corporation may make expenditures, including
15 contributions, not otherwise prohibited by law, for political purposes,
16 in an amount not to exceed five thousand dollars in the aggregate in any
17 calendar year; provided that no public utility shall use revenues
18 received from the rendition of public service within the state for
19 contributions for political purposes unless such cost is charged to the
20 shareholders of such a public service corporation] any other provision
21 of law to the contrary, no contribution, loan, loan guarantee or other
22 security for such a loan from any corporation, limited liability compa-
23 ny, limited liability partnership or partnership, other than in the
24 regular course of the lender's business, may be accepted by a candidate
25 or a political committee, other than a corporation, limited liability
26 company, limited liability partnership or partnership that is a poli-
27 tical committee, for all nominations to any office or election to any
28 office.
29 b. A loan made to a candidate or political committee, other than a
30 constituted committee, by any person, firm or association shall be
31 repaid by the date of the primary, special or general election, as the
32 case may be, or such loan shall be considered a contribution by such
33 person, firm or association including any person endorsing, cosigning,
34 guaranteeing, collateralizing or other providing security for the loan.
35 § 11. Subdivision 3 of section 14-124 of the election law is REPEALED.
36 § 12. The election law is amended by adding a new section 14-125 to
37 read as follows:
38 § 14-125. New York state business contract database. 1. a. As used in
39 this section:
40 (i) the term "business relationships with the state" shall mean any
41 contract for the procurement of goods, services or construction that is
42 entered into or in effect with the state of New York or any agency or
43 entity affiliated thereto not awarded through a competitive bid process
44 pursuant to articles nine and eleven of the state finance law. Business
45 relationships with the state shall not mean any person or entity
46 rejected from participation in such a contract or any person or entity
47 not participating in such a contract within twenty-four months of any
48 election.
49 (ii) the term "New York state business contract database" shall mean a
50 database created, operated, maintained and updated by the state comp-
51 troller accessible to the public which contains the names of persons who
52 have business relationships with the state. Such database shall be
53 created, operated, maintained and updated by the state comptroller in a
54 manner so as to ensure its reasonable accuracy and completeness;
55 provided, however, that in no event shall such database be updated less
56 frequently than once a month in any general election year. Such database
S. 4897 9
1 shall enable members of the public to determine if a given person has a
2 business relationship with the state.
3 (iii) the term "person" shall include any chief executive officer,
4 chief financial officer or chief operating officer of such entity or
5 persons serving in an equivalent capacity, any person employed in a
6 senior managerial capacity regarding such entity, or any person with an
7 interest in such entity which exceeds ten percent of the value of such
8 entity at fair market value.
9 (iv) the term "senior managerial capacity" shall mean a high level
10 supervisory capacity, either by virtue of title or duties, in which
11 substantial discretion and oversight is exercised over the solicitation,
12 letting or administration of business transactions with the state,
13 including contracts, franchises, concession, grants, economic develop-
14 ment agreements and application for land use approvals.
15 b. Any database maintained by the comptroller as of the effective date
16 of this section may serve as the New York state business contract data-
17 base upon certification by the comptroller to the chairman of the
18 campaign finance board that such database fulfills the requirements of
19 this section. Every state agency or authority of the state including any
20 entity affiliated thereto shall provide the comptroller with such infor-
21 mation as is necessary to construct, modify and maintain such database
22 in a timely manner.
23 2. a. Neither a candidate participating in the voluntary campaign
24 finance program established pursuant to this article, nor a political
25 committee of such candidate shall accept contributions for a covered
26 election which in the aggregate exceeds four hundred dollars from a
27 person or entity who has a business relationship with the state.
28 b. Neither a candidate who does not participate in a voluntary
29 campaign finance program pursuant to this article nor a political
30 committee of such candidate shall accept contributions for a covered
31 election which in the aggregate exceeds four hundred dollars from a
32 person or entity who has a business relationship with the state.
33 c. No contribution pursuant to this section to a candidate or to a
34 political committee of such candidate shall be eligible for matching
35 contributions pursuant to title two of this article.
36 d. If the campaign finance board determines that any contribution to a
37 candidate or to the political committee of such candidate violates the
38 provisions of this section, the campaign finance board shall notify such
39 candidate within twenty days of such determination and such candidate or
40 candidate's political committee shall make a reasonable attempt to
41 return such contribution to the contributor; provided, however, that if
42 such candidate or the political committee of such candidate is unable to
43 return such contribution, such monies shall be paid to the campaign
44 finance board for payment into the New York state campaign finance fund
45 pursuant to section ninety-nine-v of the state finance law.
46 e. The state comptroller and the chairman of the campaign finance
47 board shall promulgate such rules and regulations as the comptroller and
48 the chairman deem necessary for the administration of this section.
49 § 13. The article heading of article 14 of the election law is amended
50 to read as follows:
51 CAMPAIGN [RECEIPTS AND EXPENDITURES] FINANCE
52 § 14. Sections 14-100 through 14-130 of article 14 of the election law
53 are designated title 1 and a new title heading is added to read as
54 follows:
S. 4897 10
1 CAMPAIGN RECEIPTS AND EXPENDITURES
2 § 15. Article 14 of the election law is amended by adding a new title
3 2 to read as follows:
4 TITLE II
5 VOLUNTARY CAMPAIGN FINANCE
6 Section 14-200. Applicability and definitions.
7 14-202. Reporting requirements.
8 14-204. Contribution and receipt limitations.
9 14-206. Proof of compliance.
10 14-208. Eligibility.
11 14-212. Payment of matching funds.
12 14-214. Use of matching funds; qualified campaign expenditures.
13 14-216. Campaign finance board; general powers and duties.
14 14-218. Audits and repayments.
15 14-220. Civil enforcement.
16 14-222. Criminal penalties.
17 14-224. Reports.
18 14-226. Debates.
19 14-228. Distributions from campaign finance fund.
20 § 14-200. Applicability and definitions. This title shall apply exclu-
21 sively to the financing of campaigns of candidates for the nomination
22 for election, and for election to, the offices of governor, lieutenant
23 governor, state comptroller, attorney general, member of the assembly,
24 state senator and delegate to a constitutional convention. For purposes
25 of this title, the following terms shall have the following meanings:
26 1. "Authorized committee" means a political committee designated by a
27 candidate pursuant to section 14-202 of this title to receive contrib-
28 utions and make expenditures in support of such candidate's campaign. No
29 more than one authorized committee may be designated by a candidate in
30 any election cycle.
31 2. "Board" or "campaign finance board" means the board created by
32 section 14-216 of this title to administer the campaign finance fund.
33 3. "Candidate" means any candidate for nomination for election, or for
34 election to, the offices of governor, lieutenant governor, state comp-
35 troller, attorney general, member of the assembly, state senator and
36 delegate to a constitutional convention whether such candidate is a
37 "participating candidate" or "nonparticipating candidate" as defined in
38 this section.
39 4. "Contribution" means:
40 (a) any gift, subscription, outstanding loan (to the extent provided
41 for in section 14-114 of this article), advance, or deposit of money or
42 anything of value, made in connection with the nomination for election,
43 or election, of any candidate, or made to promote the success or defeat
44 of a political party or principle, or of any ballot proposal;
45 (b) any payment, by any person other than a candidate or an authorized
46 committee, made in connection with the nomination for election or
47 election of any candidate, or any payment made to promote the success or
48 defeat of a political party or principle, or of any ballot proposal
49 including but not limited to compensation for the personal services of
50 any individual which are rendered in connection with a candidate's
51 election or nomination without charge; provided however, that none of
52 the foregoing shall be deemed a contribution if it is made, taken or
53 performed by a candidate or his or her spouse or by a person or a poli-
54 tical committee independent of the candidate or his or her agents or
55 political committees. For purposes of this title, the term "independent
S. 4897 11
1 of the candidate or his or her agents or political committees" shall
2 mean that the candidate or his or her agents or political committee did
3 not authorize, request, suggest, foster or cooperate in any such activ-
4 ity; and provided further, that the term contribution shall not include:
5 (i) the value of services provided without compensation by individuals
6 who volunteer a portion or all of their time on behalf of a candidate or
7 political committee;
8 (ii) the use of real or personal property and the cost of invitations,
9 food and beverages voluntarily provided by an individual to a candidate
10 or political committee on the individual's residential premises for
11 candidate-related activities to the extent such services do not exceed
12 five hundred dollars in value;
13 (iii) the travel expenses of any individual who on his or her own
14 behalf volunteers his or her personal services to any candidate or poli-
15 tical committee to the extent such expenses are unreimbursed and do not
16 exceed five hundred dollars in value; and
17 (iv) expenditures by a bona fide membership organization in support of
18 the following activities by members of the organization who are volun-
19 teering their time on behalf of a candidate, not to exceed twenty-five
20 dollars per member who volunteer for: (1) transportation of volunteers
21 to and from campaign activities; (2) cost of feeding volunteers while
22 volunteering for the campaign; and (3) materials such as badges and
23 clothing that identifies the name of the organization or candidate; and
24 (c) any funds received by a political committee from another political
25 committee to the extent such funds do not constitute a transfer.
26 5. "Contributor" means an entity, including, but not limited to,
27 natural persons, associations and bona fide membership organizations,
28 that makes a contribution, as defined in subdivision four of this
29 section and pursuant to section 14-116 of this article.
30 6. "Covered election" means any primary election for nomination,
31 special or general election for election, to the offices of governor,
32 lieutenant governor, state comptroller, attorney general, member of the
33 assembly, state senator and delegate to a constitutional convention.
34 7. "Election cycle" means (a) the four year period starting the day
35 after the general election and ending on the day of the next succeeding
36 general election for the offices of governor, lieutenant governor, state
37 comptroller and attorney general, (b) the two year period starting the
38 day after the general election and ending on the date of the next
39 succeeding general election for candidates for the offices of state
40 senator and member of the assembly, and (c) six months prior to any
41 special election ending on the day after such special election.
42 8. "Expenditure" means any gift, subscription, advance, payment, or
43 deposit of money or anything of value, or a contract to make any gift,
44 subscription, payment, or deposit of money or anything of value, made in
45 connection with the nomination for election, or election, of any candi-
46 date. Expenditures made by contract are deemed made when such funds are
47 obligated.
48 9. "Fund" means the campaign finance fund created by section ninety-
49 nine-v of the state finance law.
50 10. "Family or household members" mean the following individuals:
51 (a) persons related by consanguinity or affinity;
52 (b) persons legally married to one another;
53 (c) persons formerly married to one another regardless of whether they
54 still reside in the same household;
55 (d) persons who have a child in common regardless of whether such
56 persons are married or have lived together at any time; or
S. 4897 12
1 (e) persons who are not related by consanguinity or affinity and who
2 are or have been in an intimate relationship regardless of whether such
3 persons have lived together at any time.
4 11. "Item with significant value" means any item, including any item
5 valued at twenty-five dollars or more.
6 12. "Legislative leader" means any of the following: the temporary
7 president of the senate; the speaker of the assembly; the minority lead-
8 er of the senate; or the minority leader of the assembly.
9 13. "Matchable contribution" means a contribution, contributions or
10 such portion of a contribution or contributions made by a natural person
11 residing in the state of New York at the time of such contribution, with
12 a value not to exceed two hundred fifty dollars, to a participating
13 candidate for any primary and a contribution, contributions or such
14 portion of a contribution or contributions made by a natural person
15 residing in the state of New York at the time of such contribution with
16 a value not to exceed two hundred fifty dollars to a participating
17 candidate for a general election held in the same election cycle or to a
18 participating candidate in a special election that has been reported in
19 full to the state board of elections in accordance with sections 14-102,
20 14-104 and 14-108 of this article by the candidate's authorized commit-
21 tee and has been contributed on or before the date of the applicable
22 primary or general or special election in any election cycle. Any
23 contribution, contributions, or such portion of a contribution or
24 contributions determined to be invalid for matching funds by the
25 campaign finance board pursuant to the provisions of this title may not
26 be treated as a matchable contribution. In addition, the following
27 contributions are not matchable: (a) loans; (b) in-kind contributions of
28 property, goods, or services; (c) contributions in the form of the
29 purchase price paid for an item with significant value; (d) anonymous
30 contributions or contributions whose source is not itemized as required
31 by section 14-202 of this title; (e) contributions received during a
32 previous election cycle; (f) illegal contributions; and (g) contrib-
33 utions from individuals under the age of eighteen years at the time the
34 contribution is made.
35 14. "Nonparticipating candidate" shall mean a candidate for the office
36 of governor, lieutenant governor, state comptroller, attorney general,
37 member of the assembly, state senator or delegate to a constitutional
38 convention for a covered election who fails to file a written certif-
39 ication in the form of an affidavit pursuant to section 14-208 of this
40 title.
41 15. "Participating candidate" shall mean any candidate for nomination
42 for election, or election, to the offices of governor, lieutenant gover-
43 nor, state comptroller, attorney general, member of the assembly, state
44 senator and delegate to a constitutional convention who files a written
45 certification in the form of an affidavit pursuant to section 14-208 of
46 this title.
47 16. "Political committee" means a committee as defined in section
48 14-100 of this article.
49 17. "Matching funds" means monies paid from the campaign finance fund
50 to the authorized committee of participating candidates pursuant to this
51 title.
52 18. "Qualified campaign expenditure" shall mean an expenditure for
53 which matching funds may be used.
54 19. "Threshold for eligibility" shall mean the amount of matchable
55 contributions that a candidate's authorized committee must receive in
S. 4897 13
1 total in order for such candidate to qualify for matching funds under
2 this article.
3 20. "Transfer" shall mean any exchange of funds or any thing of value
4 between political committees authorized by the same candidate taking
5 part solely in his or her campaign.
6 § 14-202. Reporting requirements. 1. Every participating candidate
7 shall designate only one authorized committee to be eligible to receive
8 contributions of matching funds. Before receiving any such contribution
9 or making any expenditure therefrom for a covered election, each partic-
10 ipating candidate shall notify the state board of elections and the
11 campaign finance board as to the existence of his or her eligible
12 authorized committee that has been designated and approved by such
13 candidate. Such authorized committee shall, before receiving any
14 contribution or making any expenditure for a covered election: (a)
15 designate a treasurer; (b) obtain a tax identification number from the
16 internal revenue service; and (c) submit to the state board of
17 elections, either in writing or electronically, the identification
18 number of the committee designated to be eligible to receive matching
19 funds.
20 2. Disclosure. (a) Every participating candidate shall submit such
21 reports to the state board of elections as required by title one of this
22 article. Copies of such reports shall also be submitted to the campaign
23 finance board created pursuant to this article at the same time such
24 reports are submitted to the state board of elections.
25 (b) The campaign finance board shall review each disclosure report
26 filed with the state board of elections pursuant to title one of this
27 article and shall inform participating candidates and political commit-
28 tees including the authorized committee, of relevant questions the board
29 has concerning: (i) compliance with requirements of this title and of
30 the rules issued by the board; and (ii) qualifications for receiving
31 public matching funds pursuant to this title. In the course of such
32 review, the board shall give candidates and political committees includ-
33 ing the authorized committee, an opportunity to respond to and correct
34 potential violations and give candidates an opportunity to address ques-
35 tions the board has concerning their matchable contribution claims or
36 other issues concerning eligibility for receiving matching funds pursu-
37 ant to this title. Nothing in this paragraph shall preclude the board
38 from subsequently reviewing such a disclosure report and taking any
39 action otherwise authorized by this title.
40 (c) Only itemized contributions contained in reports filed with the
41 state board of elections shall be eligible for matching funds pursuant
42 to this title.
43 § 14-204. Contribution and receipt limitations. 1. A participating
44 candidate and his or her authorized committee shall not accept, either
45 directly or indirectly:
46 (a) total contributions from any one contributor that exceed two thou-
47 sand six hundred dollars in any primary in an election cycle for the
48 offices of governor, lieutenant governor, state comptroller, attorney
49 general, member of the assembly, state senator and delegate to a consti-
50 tutional convention and two thousand six hundred dollars for a general
51 or special election in an election cycle for the offices of governor,
52 lieutenant governor, state comptroller, attorney general, member of the
53 assembly, state senator or delegate to a constitutional convention,
54 provided, however, that not more than two thousand six hundred dollars
55 may be received by a candidate from a contributor per election cycle; or
S. 4897 14
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. All monetary contributions and all matching funds accepted by a
5 candidate's authorized committee shall be deposited into an account with
6 a bank licensed by the department of financial services held in the name
7 of the authorized political committee within ten business days of
8 receipt. Each authorized committee shall have no more than one checking
9 account. Monetary contributions, other than matching funds, may be
10 invested in accordance with the provisions of law relating thereto.
11 3. Contributions to candidates in covered elections shall, for each
12 election cycle, in all other respects, be subject to the limitations and
13 provisions of title one of this article.
14 § 14-206. Proof of compliance. Candidates and political committees
15 shall maintain such records of receipts and expenditures for a covered
16 election as may be required by the campaign finance board. Candidates
17 and political committees shall obtain and furnish to the board any
18 information it may request relating to the financial transactions or
19 contributions of candidates and political committees and furnish such
20 documentation and other proof of compliance with this title as may be
21 requested by the board. Candidates and political committees shall main-
22 tain copies of such records for a period of five years following a
23 general election.
24 § 14-208. Eligibility. 1. To be eligible for matching funds pursuant
25 to this title, a candidate must: (a) be a candidate for the offices of
26 governor, lieutenant governor, state comptroller, attorney general,
27 member of the assembly, state senator or delegate to a constitutional
28 convention in a covered election; (b) satisfy all the requirements of
29 law to have his or her name on the ballot; (c) in the case of a covered
30 general election, be opposed by another candidate on the ballot who is
31 not a write-in candidate; (d) submit a certification in the form of an
32 affidavit, in such form as may be prescribed by the campaign finance
33 board, that sets forth his or her agreement to comply with the terms and
34 conditions for the provision of such funds in each covered election
35 which shall be filed with such board no later than June first of an
36 election year; (e) be certified as a participating candidate by such
37 board not later than two weeks after the filing of such affidavit; (f)
38 not make, and not have made, expenditures from, or use, his or her
39 personal funds or property or personal funds or property jointly held
40 with his or her spouse, domestic partner, or child in connection with
41 his or her nomination for election or election to a covered office
42 except as a contribution to his or her authorized committee in an amount
43 that exceeds the applicable contribution limit of an individual contrib-
44 utor to candidates for the office that he or she is seeking; (g) meet
45 the threshold for eligibility set forth in subdivision two of this
46 section; and (h) abide by the requirements set forth in this title and
47 chapter during the post-election period.
48 2. The threshold for eligibility for matching funds for candidates in
49 a primary, general or special election for the following offices shall
50 be:
51 (a) governor in a primary or general election. The receipt of not less
52 than six hundred fifty thousand dollars from at least six thousand five
53 hundred matchable contributions in single amounts of no more than two
54 hundred fifty dollars from natural persons residing in the state;
55 (b) lieutenant governor in a primary election and state comptroller or
56 attorney general in a primary or general election. The receipt of not
S. 4897 15
1 less than two hundred thousand dollars from at least two thousand match-
2 able contributions in single amounts of no more than two hundred fifty
3 dollars from natural persons residing in the state;
4 (c) state senators in a primary, general or special election. The
5 receipt of not less than twenty thousand dollars in matchable contrib-
6 utions in single amounts of no more than two hundred fifty dollars from
7 natural persons residing in the state, including at least ten thousand
8 dollars from at least one hundred contributors who reside in the senate
9 district or reside in any portion of any county which constitutes any
10 measure of the district in which the seat is to be filled;
11 (d) members of the assembly in a primary, general or special election.
12 The receipt of not less than ten thousand dollars in matchable contrib-
13 utions in single amounts of no more than two hundred fifty dollars from
14 natural persons residing in the state, including at least five thousand
15 dollars from at least fifty contributors who reside in the assembly
16 district or reside in any portion of any county which constitutes any
17 measure of the district in which the seat is to be filled;
18 (e) at-large delegate to a constitutional convention in a primary or a
19 general election. The receipt of not less than twenty thousand dollars
20 in matchable contributions in single amounts of no more than two hundred
21 fifty dollars from natural persons residing in the state; and
22 (f) district delegate to a constitutional convention in a primary or
23 general election. The receipt of not less than five thousand dollars in
24 at least fifty matchable contributions in single amounts of no more than
25 two hundred fifty dollars from natural persons residing in the district
26 or in the constituent county or residing in any portion of any county
27 which constitutes any measure of the district in which the seat is to be
28 filled.
29 3. (a) Candidates who are contested in a primary election and who do
30 not seek matching funds shall not be eligible for matching funds for the
31 general election in that year. The provisions of this subdivision shall
32 not apply to candidates for the office of lieutenant governor.
33 (b) Candidates who are unopposed in a general or special election
34 shall not be eligible to receive matching funds.
35 (c) No candidate for election to an office in a primary, general or
36 special election who has elected to participate in the voluntary
37 campaign financing system shall be deemed opposed and be eligible for
38 matching funds unless there is at least one other candidate, as defined
39 by subdivision seven of section 14-100 of this article for such office
40 for such election.
41 (d) Any participating candidate meeting the threshold for eligibility
42 in a primary election shall be deemed to have met the threshold for
43 eligibility for such office in any other election held in the same
44 election cycle.
45 (e) No participating candidate for nomination to an office who is
46 unopposed in a primary election shall be eligible for matching for qual-
47 ified campaign expenditures, provided, however, that where a contest
48 occurs in a primary for the nomination of at least one other party for
49 office, the authorized committee of an unopposed participating candidate
50 for nomination may raise and spend an amount equal to one-half of the
51 matching funds receipt limit for such office, as fixed by this title for
52 candidates who have elected to accept matching funds, with contributions
53 of up to two thousand six hundred dollars per contributor pursuant to
54 section 14-204 of this title.
55 § 14-212. Payment of matching funds. 1. No matching funds shall be
56 paid to an authorized committee unless the campaign finance board deter-
S. 4897 16
1 mines that the participating candidate has qualified pursuant to this
2 title. Payment shall not exceed the amounts specified in this section
3 and may be made only to the participating candidate's authorized commit-
4 tee. No matching funds shall be used except to reimburse or pay for
5 qualified campaign expenditures actually and lawfully incurred or to
6 repay loans used to pay qualified campaign expenditures.
7 2. If the threshold for eligibility is met, the participating candi-
8 date's authorized committee shall receive payment for qualified campaign
9 expenditures of six dollars of matching funds for each one dollar of
10 matchable contributions for a primary election and six dollars of match-
11 ing funds for each one dollar of matchable contributions for a general
12 or special election for all matchable contributions received after Janu-
13 ary first of the year in which such primary or general election to be
14 held and reported to the board.
15 3. (a) Matching funds received by participating candidates and their
16 authorized committees in a primary election shall not exceed:
17 (i) the sum of five million five hundred thousand dollars for the
18 office of governor;
19 (ii) the sum of two million seven hundred fifty thousand dollars for
20 the offices of lieutenant governor, state comptroller and attorney
21 general;
22 (iii) the sum of eight hundred twenty-five thousand dollars for the
23 office of state senator;
24 (iv) the sum of four hundred twelve thousand five hundred dollars for
25 the office of member of the assembly;
26 (v) the sum of one hundred seventy-five thousand dollars for an
27 at-large delegate to a constitutional convention; and
28 (vi) the sum of fifty thousand dollars for a district delegate to a
29 constitutional convention.
30 (b) Matching funds received by participating candidates and their
31 authorized committees in a general or special election shall not exceed:
32 (i) the sum of eight million two hundred fifty thousand dollars for
33 the offices of governor and lieutenant governor;
34 (ii) the sum of four million one hundred twenty-five thousand dollars
35 for the offices of state comptroller and attorney general;
36 (iii) the sum of eight hundred twenty-five thousand dollars for the
37 office of state senator;
38 (iv) the sum of four hundred twelve thousand five hundred dollars for
39 the office of member of the assembly;
40 (v) the sum of one hundred seventy-five thousand dollars for an
41 at-large delegate to a constitutional convention; and
42 (vi) the sum of fifty thousand dollars for a district delegate to a
43 constitutional convention.
44 4. No matching funds shall be paid to any participating candidates in
45 a primary election any earlier than the day that such candidate is
46 certified as being on the ballot for such primary election.
47 5. No matching funds shall be paid to any participating candidates in
48 a general election any earlier than the day after the day of the primary
49 election held to nominate candidates for such election.
50 6. No matching funds shall be paid to any participating candidate who
51 has been disqualified or whose designating petitions have been declared
52 invalid by the appropriate board of elections or a court of competent
53 jurisdiction until and unless such finding is reversed by a higher
54 authority. No payment from the fund in the possession of such a candi-
55 date or such candidate's participating committee on the date of such
56 disqualification or invalidation may thereafter be expended for any
S. 4897 17
1 purpose except the payment of liabilities incurred before such date. All
2 such moneys shall be repaid to the fund.
3 7. The commissioner of taxation and finance shall make all payments of
4 matching funds to participating candidates as soon as practicable, but
5 no later than five days after submission by the participating candidate
6 of a campaign contribution report filed with the state board of
7 elections in compliance with this article. The campaign finance board
8 shall verify eligibility for and amount of matching funds within three
9 days after receipt of such contribution report. Upon determination of
10 eligibility of a participating candidate for matching funds and of
11 amount of such matching funds, the campaign finance board shall submit
12 within one day a duly approved, certified and executed voucher to the
13 department of taxation and finance requesting payment of such matching
14 funds and payment thereof shall be made to the participating candidate's
15 authorized committee not less than one day after such voucher is
16 received by the department of taxation and finance. If any of the time
17 limits in this title for payment fall on a weekend or holiday, payment
18 shall be made on the next business day.
19 8. The campaign finance board and the department of taxation and
20 finance shall promulgate rules to facilitate electronic fund transfers
21 directly from the fund into an authorized committee's bank account.
22 § 14-214. Use of matching funds; qualified campaign expenditures. 1.
23 Matching funds provided under the provisions of this title may be used
24 only by an authorized committee for expenditures to further the partic-
25 ipating candidate's nomination for election, or election, including
26 payment for debts incurred within one year before an election to further
27 the participating candidate's nomination for election or election.
28 2. Such matching funds may not be used for: (a) an expenditure that
29 violates any law or regulation; (b) an expenditure in excess of the fair
30 market value of services, materials, facilities or other item of signif-
31 icant value received in exchange; (c) an expenditure made after the
32 candidate has been finally disqualified from the ballot; (d) an expendi-
33 ture for an obligation incurred after the only remaining opponent of the
34 candidate has been finally disqualified from the ballot; (e) an expendi-
35 ture made by cash payment; (f) a contribution or loan made to another
36 candidate or political committee; (g) an expenditure to support or
37 oppose another candidate or political committee; (h) gifts, except
38 brochures, buttons, signs and other printed campaign material; (i) legal
39 fees to defend against a criminal charge; or (j) a payment to an immedi-
40 ate family member of the participating candidate.
41 § 14-216. Campaign finance board; general powers and duties. 1. There
42 shall be a board within the state board of elections known as the
43 "campaign finance board" composed of seven members, of which one member,
44 who shall be the chairperson, shall be appointed by the governor with
45 the advice or consent of the senate, one member shall be appointed by
46 the state comptroller, one member shall be appointed by the attorney
47 general, one member shall be appointed by the temporary president of the
48 senate, one member shall be appointed by the speaker of the assembly,
49 one member shall be appointed by the minority leader of the senate and
50 one member shall be appointed by the minority leader of the assembly.
51 No member of the campaign finance board shall hold elective office, nor
52 shall any member be a lobbyist as defined in subdivision (a) of section
53 one-c of the legislative law. The members shall first be appointed to
54 serve as follows: (a) two members, one appointed by the temporary presi-
55 dent of the senate and one appointed by the minority leader of the
56 assembly for a term of two years, (b) two members, one appointed by the
S. 4897 18
1 majority leader of the senate and one appointed by the speaker of the
2 assembly for a term of three years, (c) one member appointed by the
3 attorney general for a term of four years, (d) one member appointed by
4 the comptroller for a term of five years and (e) the chairperson shall
5 serve for a term of six years. Members appointed thereafter shall be
6 appointed for terms of six years.
7 2. Each initial member's term shall commence on January first, two
8 thousand fourteen. In case of a vacancy in the office of a member, a
9 member shall be appointed according to the original manner of appoint-
10 ment. Each member shall be a resident of the state of New York and
11 registered to vote therein. Each member shall agree not to make and
12 shall not make contributions to any candidate or authorized committee
13 for nomination for election or for election to the offices of governor,
14 lieutenant governor, state comptroller, attorney general, member of the
15 assembly, state senator and delegate to a constitutional convention. No
16 member shall serve as an officer of a political party or committee or be
17 a candidate or participate in any capacity in a campaign by a candidate
18 for nomination for election, or for election to the offices of governor,
19 lieutenant governor, state comptroller, attorney general, member of the
20 assembly, state senator and delegate to a constitutional convention. An
21 officer or employee of the state or any state agency shall not be eligi-
22 ble to be a member of the campaign finance board.
23 3. The members of the campaign finance board shall be entitled to
24 receive payment for actual and necessary expenses incurred in the
25 performance of their duties as members of such board.
26 4. A member of the campaign finance board may be removed by his or her
27 appointing authority solely for substantial neglect of duty, gross
28 misconduct in office, inability to discharge the powers or duties of the
29 office, or violation of the provisions of this chapter, after written
30 notice and opportunity for a public hearing pursuant to rules developed
31 by the campaign finance board.
32 5. The campaign finance board may employ or shall utilize existing
33 staff of the state board of elections as may be necessary, including an
34 executive director and a counsel, and make necessary expenditures
35 subject to appropriation. The campaign finance board shall retain an
36 independent auditor to perform ongoing audits of each covered election
37 by contract entered into pursuant to section one hundred sixty-three of
38 the state finance law.
39 6. In addition to the enforcement powers, and any other powers and
40 duties specified by law, the campaign finance board shall:
41 (a) (i) render advisory opinions with respect to questions arising
42 under this title upon the written request of a candidate, an officer of
43 a political committee or member of the public, or upon its own initi-
44 ative; (ii) promulgate rules regarding reasonable times to respond to
45 such requests; and (iii) make public the questions of interpretation for
46 which advisory opinions will be considered by the campaign finance board
47 and its advisory opinions, including by publication on its website;
48 (b) develop a program for informing candidates and the public as to
49 the purpose and effect of the provisions of this title, including by
50 means of a website;
51 (c) have the authority to promulgate such rules and regulations and
52 prescribe such forms as the campaign finance board deems necessary for
53 the administration of this title; and
54 (d) in conjunction with the state board of elections develop an inter-
55 active, searchable computer database that shall contain all information
56 necessary for the proper administration of this title including informa-
S. 4897 19
1 tion on contributions to and expenditures by candidates and their
2 authorized committees and distributions of moneys from the fund and
3 shall be accessible to the public on the state board of elections'
4 website.
5 7. Consistent with the provisions of the civil service law and subdi-
6 vision seventeen of section seventy-three of the public officers law,
7 and notwithstanding the provisions of any other law to the contrary, all
8 positions on the staff of the campaign finance board shall be classified
9 in the exempt class of the civil service.
10 8. The campaign finance board's administration of the fund shall be
11 governed by the provisions of this title and section ninety-nine-v of
12 the state finance law.
13 9. The campaign finance board and its proceedings shall be governed by
14 the state administrative procedure act and subject to articles six and
15 seven of the public officers law.
16 10. The campaign finance board may take such other actions as are
17 necessary and proper to carry out the purposes of this title.
18 § 14-218. Audits and repayments. 1. The campaign finance board is
19 hereby empowered to audit and examine, pursuant to generally accepted
20 accounting principles, all matters relating to the performance of its
21 functions and any other matter relating to the administration of this
22 title. Such audits shall be conducted as frequently as the campaign
23 finance board deems necessary to ensure compliance with this title.
24 Every candidate who receives matching funds under this title shall also
25 be audited by the campaign finance board post-election. The cost of
26 complying with a post-election audit shall be borne by the candidate's
27 authorized committee. A candidate who has received matching funds under
28 this title must maintain a reserve of at least one percent of the total
29 amount of matching funds received by such candidate in his or her
30 campaign account to comply with the post-election audit. A candidate who
31 runs in both a primary and a general election, must maintain a reserve
32 of one percent of the total amount of matching funds received by such
33 candidate for both his or her primary and general election. A candidate
34 may use matching funds, private funds or a combination of matching and
35 private funds to comply with a post-election audit. The campaign finance
36 board shall issue to each campaign audited the final post-election audit
37 report that details its findings and shall provide such audit to the
38 governor and legislative leaders and make such audit report available on
39 the state board of elections' website.
40 2. If the campaign finance board determines that any portion of a
41 payment made to a candidate's authorized committee from the fund
42 exceeded the amount that such candidate was eligible to receive pursuant
43 to this title, the campaign finance board shall notify such committee
44 and such committee shall pay to the campaign finance board an amount
45 equal to the amount of the excess payment; provided, however, that if
46 the erroneous payment was due to an error made by the campaign finance
47 board, then the erroneous payment will be offset against any future
48 payment, if any. The participating candidate and the candidate's author-
49 ized committee shall be jointly and severally liable for any repayments
50 due to the campaign finance board for deposit by such board into the New
51 York state campaign finance fund.
52 3. If the campaign finance board determines that any portion of a
53 payment made to a candidate's authorized committee from the New York
54 state campaign finance fund was used for purposes other than qualified
55 campaign expenditures, the campaign finance board shall notify such
56 committee of the amount so disqualified and such committee shall pay to
S. 4897 20
1 the campaign finance board an amount equal to such disqualified amount.
2 Such monies shall be deposited into the New York state campaign finance
3 fund established pursuant to section ninety-nine-v of the state finance
4 law. The candidate and the candidate's authorized committee shall be
5 jointly and severally liable for any repayments due to the campaign
6 finance board.
7 4. A participating candidate shall pay to the campaign finance board
8 for deposit into the campaign finance fund unspent matching funds for an
9 election not later than thirty days after all liabilities for the
10 election campaign have been paid and in any event, not later than twenty
11 days after the date on which the campaign finance board issues its final
12 audit report for the participating candidate's committee; provided,
13 however, that all unspent matching funds for a participating candidate
14 shall be immediately due and payable to the campaign finance board for
15 deposit into the New York state campaign finance fund upon its determi-
16 nation that the participant willfully delayed the post-election audit
17 process. A participating candidate may make post-election expenditures
18 only for routine activities involving nominal costs associated with
19 winding up a campaign and responding to the post-election audit pursuant
20 to section 14-228 of this title. For accounting purposes, all private
21 and personal contributions shall be considered spent before revenue from
22 the fund is spent or committed.
23 § 14-220. Civil enforcement. 1. Any person or authorized committee who
24 knowingly and willfully fails to make a filing as required by the
25 provisions of this title shall be subject to a fine to be imposed by the
26 campaign finance board in an amount not to exceed five thousand dollars.
27 2. Any person or authorized committee who knowingly and willfully
28 violates any other provision of this title or any rule promulgated here-
29 under shall be subject to a fine to be imposed by the campaign finance
30 board in an amount not to exceed ten thousand dollars.
31 3. Fines authorized under this section will be imposed by the campaign
32 finance board after a hearing at which the subject person or authorized
33 committee shall be given an opportunity to be heard. Such hearing shall
34 be held in such manner and upon such notice as may be prescribed by the
35 rules of the campaign finance board. For purposes of conducting such
36 hearings, the campaign finance board shall be deemed to be an agency
37 within the meaning of article three of the state administrative proce-
38 dure act and shall adopt rules governing the conduct of adjudicatory
39 proceedings and appeals taken pursuant to a proceeding commenced under
40 article seventy-eight of the civil practice law and rules relating to
41 the assessment of the fines herein authorized.
42 4. The campaign finance board shall publish on the state board of
43 elections' website the final order adjudicating any matter brought
44 pursuant to this section.
45 5. Any fines imposed by the campaign finance board pursuant to this
46 section shall be deposited into the New York state campaign finance
47 fund.
48 § 14-222. Criminal penalties. 1. Any person who knowingly and willful-
49 ly fails to make a filing required by the provisions of this title with-
50 in ten days after the date provided for such, or anyone that knowingly
51 and willfully violates any other provision of this title shall be guilty
52 of a misdemeanor and, in addition to such other penalties as may be
53 provided by law, shall be subject to a fine not to exceed the amount of
54 ten thousand dollars.
55 2. Any person who knowingly and willfully contributes, accepts or aids
56 or participates in the contribution or acceptance of a contribution in
S. 4897 21
1 an amount exceeding an applicable maximum specified in this article
2 shall be guilty of a misdemeanor and shall be subject to a fine not to
3 exceed the amount of ten thousand dollars.
4 3. Any person who knowingly makes a false statement or knowingly omits
5 a material fact to the campaign finance board or an auditor designated
6 by the campaign finance board during any audit conducted pursuant to
7 section 14-218 of this title shall be guilty of a class E felony.
8 4. In addition any other sentence lawfully imposed upon a finding of
9 guilt in a criminal prosecution commenced pursuant to the provisions of
10 this section, the court may order a defendant to repay to the campaign
11 finance board any matching funds obtained as a result of any criminal
12 conduct.
13 5. All such prosecutions for criminal acts under this article shall be
14 prosecuted by the attorney general.
15 6. Any and all fines imposed pursuant to this section shall be made
16 payable to the campaign finance board for deposit into the New York
17 state campaign finance fund.
18 § 14-224. Reports. The campaign finance board shall submit a report to
19 the governor and legislative leaders on or before February first, two
20 thousand seventeen, and every two years thereafter, which shall include:
21 1. a list of the participating and nonparticipating candidates in
22 covered elections and the votes received by each candidate in those
23 elections;
24 2. the amount of contributions and loans received, and expenditures
25 made, on behalf of participating and nonparticipating candidates;
26 3. the amount of matching funds each participating candidate received,
27 spent and repaid pursuant to this article;
28 4. analysis of the effect of this title on the election campaign for
29 the offices of governor, lieutenant governor, state comptroller, attor-
30 ney general, member of the assembly, state senator and delegate to a
31 constitutional convention, including its effect on the sources and
32 amounts of private financing, the level of campaign expenditures, voter
33 participation, the number of candidates, the candidates' abilities to
34 campaign effectively for public office, and the diversity of candidates
35 seeking and elected to office;
36 5. recommendations for changes or amendments to this title, including
37 changes in contribution limits, thresholds for eligibility and limits on
38 total matching funds; and
39 6. any other information that the campaign finance board deems rele-
40 vant.
41 § 14-226. Debates. The campaign finance board shall promulgate regu-
42 lations to facilitate debates among participating candidates. Partic-
43 ipating candidates are required to participate in at least one debate
44 before the primary election and in at least one debate before the gener-
45 al election for which the candidate receives public funds, unless the
46 participating candidate is running unopposed. A nonparticipating candi-
47 date may be a party to such debates.
48 § 14-228. Distributions from campaign finance fund. 1. This section
49 governs the campaign finance board's distribution of funds from the
50 campaign finance fund established by section ninety-nine-v of the state
51 finance law, except as otherwise provided in this title.
52 2. No moneys shall be paid to any participating candidate who has been
53 disqualified by the campaign finance board or whose designating
54 petitions have been declared invalid by the state board of elections or
55 a court of competent jurisdiction until and unless such finding is
56 reversed by an appellate court.
S. 4897 22
1 3. No payment from the fund in the possession of such a candidate or
2 such a candidate's authorized committee on the date of such disquali-
3 fication or invalidation may thereafter be expended for any purpose
4 except the payment of liabilities incurred before that date. All excess
5 matching moneys paid to a disqualified candidate shall be returned to
6 the fund not less than thirty days after the general election for those
7 participating candidates who received matching moneys for the general
8 election, and otherwise, not less than thirty days after the primary
9 election for those participating candidates who received matching moneys
10 solely for the primary election.
11 4. (a) Participating candidates shall pay to the campaign finance
12 board unspent matching campaign funds from an election not later than
13 thirty days after all liabilities for the election have been paid and,
14 in any event, not less than twenty days after the date upon which the
15 campaign finance board issues its final audit report for the participat-
16 ing candidate's committee; provided, however, that all unspent matching
17 campaign funds for a participating candidate shall be immediately due
18 and payable to the campaign finance board upon its determination that
19 the participating candidate has, without just cause, delayed the post-e-
20 lection audit process. Unspent matching campaign funds determinations
21 made by the campaign finance board shall be based on the participating
22 candidate committee's receipts and expenditures. The campaign finance
23 board may also consider any other relevant information revealed in the
24 course of its audits or investigations or the investigations by any
25 other agency.
26 (b) (i) A participating candidate may not use receipts for any purpose
27 other than disbursements in the preceding election until all unspent
28 matching campaign funds have been repaid. A participating candidate
29 shall have the burden of demonstrating that a post-election expenditure
30 is for the preceding election.
31 (ii) Before repaying unspent matching campaign funds, a participating
32 candidate may make post-election expenditures only for routine activ-
33 ities involving nominal costs associated with winding up a campaign and
34 responding to the post-election audit. Such expenditures may include:
35 payment of utility bills and rent; reasonable staff salaries and
36 consultant fees for responding to a post-election audit; reasonable
37 moving expenses related to closing a campaign office; a holiday card
38 mailing to contributors, campaign volunteers, and staff members; thank
39 you notes for contributors, campaign volunteers, and staff members;
40 payment of taxes and other reasonable expenses for compliance with
41 applicable tax laws; and interest expenses. Routine post-election
42 expenditures that may be paid for with unspent matching campaign funds
43 do not include such items as post-election mailings other than as
44 specifically provided for in this subparagraph; making contributions; or
45 holding any post-election day event, including, but not limited to, any
46 meal or any party. Unspent campaign funds may not be used for transition
47 or inauguration activities.
48 5. All monies received by the campaign finance board pursuant to this
49 section shall be deposited into the New York state campaign finance fund
50 pursuant to section ninety-nine-v of the state finance law.
51 § 16. The election law is amended by adding a new section 16-103 to
52 read as follows:
53 § 16-103. Proceedings as to matching funds. 1. The determination of
54 eligibility pursuant to section 14-208 of this chapter and any question
55 or issue relating to payments for qualified campaign expenditures pursu-
56 ant to section 14-212 of this chapter may be contested in a proceeding
S. 4897 23
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 14-212
5 of this chapter shall be instituted within seven days after such deter-
6 mination was made. The campaign finance board shall be made a party to
7 any such proceeding.
8 3. Upon the campaign finance board's failure to receive the amount due
9 from a participating candidate or such candidate's committee after the
10 issuance of written notice of such amount due, as required by subdivi-
11 sion four of section 14-218 of this chapter, such board is authorized to
12 institute a special proceeding or civil action in supreme Court, Albany
13 county, to obtain a judgment for any amounts determined to be payable to
14 the campaign finance board as a result of an examination and audit made
15 pursuant to title two of article fourteen of this chapter.
16 4. The campaign finance board is authorized to institute a special
17 proceeding or civil action in Supreme Court, Albany county, to obtain a
18 judgment for civil penalties determined to be payable to the fair
19 elections board pursuant to section 14-218 of this chapter.
20 § 17. The general business law is amended by adding a new section
21 359-gg to read as follows:
22 § 359-gg. Additional surcharge. In addition to any penalty authorized
23 by section three hundred fifty-nine-g of this article or any damages or
24 other compensation recoverable including, but not limited to, any
25 settlement authorized by section sixty-three or sixty-three-c of the
26 executive law, there shall be assessed thereon an additional surcharge
27 in the amount of ten percent of the total amount of such penalty,
28 damages or settlement. Such surcharge shall be deposited in the New York
29 state campaign finance fund established by section ninety-nine-v of the
30 state finance law.
31 § 18. The state finance law is amended by adding a new section 99-v to
32 read as follows:
33 § 99-v. New York state campaign finance fund. 1. There is hereby
34 established in the custody of the commissioner of taxation and finance a
35 special fund to be known as the New York state campaign finance fund.
36 2. Such fund shall consist of all revenues received from the surcharge
37 imposed pursuant to section three hundred fifty-nine-gg of the general
38 business law, revenues received from campaign finance fund check-off
39 pursuant to section six hundred thirty-d of the tax law, revenues from
40 the abandoned property fund pursuant to section ninety-five of this
41 article, and all other moneys credited or transferred thereto from any
42 other fund or source pursuant to law. Nothing contained in this section
43 shall prevent the state from receiving grants, gifts, bequests or volun-
44 tary contributions for the purposes of the fund as defined in this
45 section and depositing them into the fund according to law. Monies in
46 the fund shall be kept separate from and not commingled with other funds
47 held in the custody of the commissioner of taxation and finance.
48 3. Moneys of the fund, following appropriation by the legislature, may
49 be expended for the purposes of making payments to candidates pursuant
50 to title two of article fourteen of the election law. Moneys shall be
51 paid out of the fund by the commissioner of taxation and finance on
52 vouchers certified or approved by the campaign finance board established
53 pursuant to title two of article fourteen of the election law, or the
54 duly designated representative of such board, in the manner prescribed
55 by law, not more than one working day after a voucher duly certified,
56 approved and executed by such board or its representative in the form
S. 4897 24
1 prescribed by the commissioner of taxation and finance is received by
2 the commissioner of taxation and finance.
3 § 19. The tax law is amended by adding a new section 630-d to read as
4 follows:
5 § 630-d. Contribution to New York state campaign finance fund. Effec-
6 tive for any taxable year commencing on or after January first, two-
7 thousand thirteen, an individual in any taxable year may elect to
8 contribute to the New York state campaign finance fund. Such contrib-
9 ution shall be in the amount of five dollars and shall not reduce the
10 amount of state tax owed by such individual. The commissioner shall
11 include space on the personal income tax return to enable a taxpayer to
12 make such contribution. Notwithstanding any other provision of law, all
13 revenues collected pursuant to this section shall be credited to the New
14 York state campaign finance fund and used only for those purposes
15 enumerated in section ninety-nine-v of the state finance law.
16 § 20. Section 95 of the state finance law is amended by adding a new
17 subdivision 5 to read as follows:
18 5. Notwithstanding any provision of this section authorizing the
19 transfer of any moneys in the abandoned property fund to the general
20 fund, in January of each year in which a state general election is to be
21 held pursuant to law, or at least six weeks prior to any state special
22 election, the comptroller, upon warrant or voucher by the chairman of
23 the campaign finance board or his or her duly appointed representative,
24 shall transfer moneys of the abandoned property fund into the campaign
25 finance fund pursuant to section ninety-nine-v of this article. On March
26 thirty-first of the year following such general election year, such
27 chairman shall transfer to the general fund any surplus moneys of the
28 campaign finance fund as of such date.
29 § 21. Severability. If any clause, sentence, subdivision, paragraph,
30 section or part 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 § 22. This act shall take effect January 1, 2014; provided, however,
37 that candidates for state comptroller will be eligible to participate in
38 the optional campaign finance system beginning with the 2014 general
39 election, all state legislative candidates will be eligible to partic-
40 ipate in the optional campaign finance system beginning with the 2016
41 general election and all other state candidates and constitutional
42 convention delegates will be eligible to participate in the optional
43 campaign finance system beginning with the 2018 general election;
44 provided, further, that all contributions made to a candidate for state
45 comptroller or his or her political committee and received by such
46 candidate or his or her political committee prior to the effective date
47 of this act and after the last general election for state comptroller
48 shall be available for such 2014 general election pursuant to the
49 provisions of the election law as they existed immediately prior to the
50 effective date of this act.
