STATE OF NEW YORK
________________________________________________________________________
8594
IN SENATE
June 18, 2008
___________
Introduced by Sen. GRIFFO -- (at request of the Governor) -- read twice
and ordered printed, and when printed to be committed to the Committee
on Rules
AN ACT to amend the election law, in relation to enacting the "campaign
finance reform act of 2008"; to amend the legislative law, in relation
to restrictions on political contributions from lobbyists; and repeal-
ing certain provisions of the election law
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings and declarations. The legislature
2 finds that it is vitally important to democratic government in this
3 state to prevent corruption, special privileges, and favoritism in
4 connection with the financing and other operations of statewide poli-
5 tical campaigns and to also avoid the appearance of these abuses. The
6 public's perception is that government is held hostage to special inter-
7 ests and wealthy donors. As the United States Supreme Court found in
8 Buckley v. Valeo, states have a compelling interest "to reduce the dele-
9 terious effect of large contributions on our political process." There-
10 fore, the legislature declares that it is in the public interest and a
11 valid public purpose to lower contribution limits, ban contributions
12 from special interests, such as lobbyists, improve transparency and
13 accountability, facilitate compliance with campaign finance reporting
14 requirements, expand the enforcement powers of the state board of
15 elections and increase penalties for campaign finance violations. This
16 comprehensive reform package will reduce the influence of special inter-
17 ests and the appearance of corruption while restoring the public's
18 confidence in elected officials.
19 § 2. Short title. This act shall be known and may be cited as the
20 "campaign finance reform act of 2008".
21 § 3. Section 3-100 of the election law, subdivisions 1, 2 and 3 as
22 amended by chapter 220 of the laws of 2005, subdivisions 4 and 5 as
23 redesignated by chapter 9 of the laws of 1978, is amended to read as
24 follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD12070-04-8
S. 8594 2
1 § 3-100. New York state board of elections; membership; organization.
2 1. There is hereby created within the executive department a New York
3 state board of elections, hereafter referred to as the "state board of
4 elections", composed of [four] five commissioners appointed by the
5 governor as follows: (a) two commissioners, one each from among not
6 fewer than two persons recommended by the chairman of the state commit-
7 tee of each of the major political parties; [and] (b) two [other]
8 commissioners, one upon the joint recommendation of the legislative
9 leaders, of one major political party, in each house of the legislature
10 and one upon the joint recommendation of the legislative leaders, of the
11 other major political party, in each house of the legislature, and (c)
12 one commissioner upon the joint recommendation of the two commissioners
13 selected pursuant to paragraph (b) of this subdivision. The commission-
14 ers shall be appointed for terms of two years each and in the same
15 manner as their respective predecessors. A commissioner appointed to the
16 board to fill a vacancy caused other than by expiration of a term, shall
17 serve for the balance of the unexpired term. In the event that there is
18 a vacancy in the office of the commissioner appointed [on the recommen-
19 dation of such legislative leaders] pursuant to paragraph (b) of this
20 subdivision caused by expiration of term or otherwise, [such] the legis-
21 lative leaders responsible for making the joint recommendation to fill
22 such vacancy shall jointly recommend an individual to fill such vacancy
23 and the governor shall make the appointment from such joint recommenda-
24 tion within thirty days of receiving such joint recommendation. In the
25 event the governor does not act on such joint recommendation within
26 thirty days or objects to such joint recommendation, then the legisla-
27 tive leaders making such joint recommendation shall have the option of:
28 [(a)] (i) appointing the individual so jointly recommended as a commis-
29 sioner, or [(b)] (ii) jointly recommending another individual for
30 appointment by the governor according to the procedure outlined in this
31 subdivision. In the event that there is a vacancy in the office of the
32 commissioner appointed pursuant to paragraph (c) of this subdivision
33 caused by expiration of term or otherwise, the commissioners responsible
34 for making the joint recommendation to fill such vacancy shall jointly
35 recommend an individual to fill such vacancy and the governor shall make
36 the appointment from such joint recommendation within thirty days of
37 receiving such joint recommendation. In the event the governor does not
38 act on such joint recommendation within thirty days, then the commis-
39 sioners making such joint recommendation shall have the option of: (i)
40 appointing the individual so jointly recommended as a commissioner, or
41 (ii) jointly recommending another individual for appointment by the
42 governor according to the procedure outlined in this subdivision. The
43 provisions of section five of the public officers law shall not apply to
44 any member appointed pursuant to paragraph (c) of this subdivision.
45 2. The two commissioners of the board appointed upon the recommenda-
46 tion of the legislative leaders shall be co-chairs of the state board of
47 elections.
48 3. The commissioners of the state board of elections shall have no
49 other public employment. The commissioners shall receive an annual sala-
50 ry of twenty-five thousand dollars, within the amounts made available
51 therefor by appropriation. The board shall, for the purposes of sections
52 seventy-three and seventy-four of the public officers law, be a "state
53 agency", and such commissioners shall be "officers" of the state board
54 of elections for the purposes of such sections. Within the amounts made
55 available by appropriation therefor, the state board of elections shall
56 appoint two co-executive directors, counsel and such other staff members
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1 as are necessary in the exercise of its functions, and may fix their
2 compensation. Anytime after the effective date of [the] chapter two
3 hundred twenty of the laws of two thousand five [which amended this
4 subdivision], the commissioners or, in the case of a vacancy on the
5 board, the commissioner of each of the major political parties shall
6 appoint one co-executive director. Each co-executive director shall
7 serve a term of four years. Any vacancy in the office of co-executive
8 director shall be filled by the commissioners or, in the case of a
9 vacancy on the board, the commissioner of the same major political party
10 as the vacating incumbent for the remaining period of the term of such
11 vacating incumbent.
12 4. For the purposes of meetings, three commissioners shall constitute
13 a quorum. The affirmative vote of three commissioners shall be required
14 for any official action of the state board of elections.
15 5. The principal office of the state board of elections shall be in
16 the county of Albany.
17 § 4. Subdivisions 3, 7, 9-A, 12, 16 and 17 of section 3-102 of the
18 election law, subdivisions 3, 7 and 17 as amended and subdivision 12 as
19 redesignated by chapter 9 of the laws of 1978, subdivision 9-A as added
20 by chapter 430 of the laws of 1997, paragraph (a) of subdivision 9-A as
21 amended by chapter 406 of the laws of 2005 and paragraph (d) of subdivi-
22 sion 9-A as amended by chapter 249 of the laws of 2003, subdivision 16
23 as added and subdivision 17 as renumbered by chapter 23 of the laws of
24 2005, are amended to read as follows:
25 3. conduct, through the enforcement unit established pursuant to
26 section 3-104 of this title any investigation necessary to carry out the
27 provisions of this chapter, except when a special investigator is
28 appointed pursuant to section 3-107 of this title;
29 7. institute[, or direct a board of elections to institute] such judi-
30 cial proceedings as may be necessary to enforce compliance with any
31 provision of article fourteen of this chapter or any regulation promul-
32 gated thereunder including, but not limited to, application, on notice
33 served upon the respondent in the manner directed by the court at least
34 six hours prior to the time of return thereon, to a justice of the
35 supreme court within the judicial district in which an alleged violation
36 of any such provision or regulation occurred or is threatened, for an
37 order prohibiting the continued or threatened violation thereof or for
38 such other or further relief as the court may deem just and proper;
39 9-A. (a) develop an electronic reporting system, which is a web-based
40 computer application for filing over the internet, to process the state-
41 ments of campaign receipts, contributions, transfers and expenditures
42 required to be filed with any board of elections pursuant to the
43 provisions of sections 14-102 and 14-104 of this chapter;
44 (b) prescribe the information required in the form for each statement
45 to be filed;
46 (c) establish a training program on the electronic reporting process
47 and make it available to any such candidate or committee, including but
48 not limited to the development and implementation of an internet-based
49 campaign finance disclosure training program. Such campaign finance
50 disclosure training program shall include (i) New York state specific
51 information and instructions to enable candidates and committees to
52 comply with the financial disclosure requirements in article fourteen of
53 this chapter and applicable regulations, (ii) information and instruc-
54 tion that is appropriate to the targeted audience, is "role-based," and
55 provides curriculum based on expected duties, and (iii) an interactive,
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1 multimedia (video, graphics, audio, text) experience which will appeal
2 to adult learning styles;
3 (d) make the electronic reporting process available to any such candi-
4 date or committee which is required to file or which agrees to file such
5 statements by such electronic reporting process;
6 (e) cause all information contained in such a statement filed with the
7 state board of elections which is not on such electronic reporting
8 system to be entered into such system as soon as practicable but in no
9 event later than ten business days after its receipt by the state board
10 of elections; and
11 (f) make all data [from] collected pursuant to the electronic report-
12 ing process required by this section available at all times on the
13 internet.
14 12. monitor the adequacy and effectiveness of the election laws and
15 report thereon [at least] annually to the governor and the legislature.
16 Such report shall include a summary setting forth the number of
17 complaints received and investigations conducted by the state board of
18 elections and the number and nature of actions commenced and all matters
19 resolved and penalties imposed by the courts during the preceding twelve
20 month period;
21 16. administer the administrative complaint procedure as provided for
22 in section 3-105 of this [article.] title;
23 17. hear and consider the recommendations of the state board of
24 elections enforcement unit regarding the enforcement of violations of
25 article fourteen of this chapter or recommendations regarding immunity
26 made in connection with an investigation conducted pursuant to section
27 3-104 of this title;
28 18. perform such other acts as may be necessary to carry out the
29 purposes of this chapter.
30 § 5. Section 3-104 of the election law is REPEALED and a new section
31 3-104 is added to read as follows:
32 § 3-104. State board of elections enforcement unit. 1. There shall be
33 a unit known as the state board of elections enforcement unit estab-
34 lished within the state board of elections.
35 2. The state board of elections enforcement unit shall have sole
36 authority within the state board of elections to investigate on its own
37 initiative or upon complaint, alleged violations of article fourteen of
38 this chapter and all complaints alleging article fourteen violations
39 shall be forwarded to this unit. Nothing in this section shall be
40 construed to diminish or alter the state board of election's jurisdic-
41 tion pursuant to this chapter.
42 3. Upon receipt of a complaint and supporting information alleging a
43 violation of article fourteen of this chapter, the state board of
44 elections enforcement unit shall analyze the complaint to determine if
45 an investigation should be undertaken. The state board of elections
46 enforcement unit shall, if necessary, request additional information
47 from the complainant to assist it in making this determination. Such
48 analysis shall consist of a two prong test: first, whether the allega-
49 tions, if true, would constitute a violation of article fourteen of this
50 chapter and, second, whether the allegations are supported by credible
51 evidence.
52 4. If the state board of elections enforcement unit determines that
53 the allegations, if true, would not constitute a violation of article
54 fourteen of this chapter or that the allegations are not supported by
55 credible evidence, it shall issue a letter to the complainant dismissing
56 the complaint.
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1 5. If the state board of elections enforcement unit determines that
2 the allegations, if true, would constitute a violation of article four-
3 teen of this chapter and that the allegations appear to be supported by
4 credible evidence, it shall publicly report its intent to commence an
5 investigation to the state board of elections no later than the board's
6 next regularly scheduled meeting. Such report shall summarize the rele-
7 vant facts and the applicable law and shall, to the extent possible,
8 maintain the confidentiality of the complainant and the individual
9 subject to the complaint.
10 6. If, upon considering the enforcement unit's recommendation to
11 commence an investigation, the state board of elections believes that
12 the allegations, if true, would not constitute a violation of article
13 fourteen of this chapter, or the allegations are not supported by credi-
14 ble evidence or, that on balance, the equities favor a dismissal of the
15 complaint, the board shall publicly direct that an investigation not be
16 undertaken. In determining whether the equities favor a dismissal of the
17 complaint, the state board of elections shall consider the following
18 factors: (a) whether the complaint alleges a de minimus violation of
19 article fourteen of this chapter; or (b) whether the subject of the
20 complaint has made a good faith effort to correct the violation; or (c)
21 whether the subject of the complaint has a history of similar
22 violations. Determinations of the state board of elections to dismiss a
23 complaint and not proceed with a formal investigation shall be voted
24 upon as provided in subdivision four of section 3-100 of this title at
25 an open meeting pursuant to article seven of the public officers law,
26 and shall be made on a fair and equitable basis and without regard to
27 the status of the subject of the complaint.
28 7. Absent a determination by the state board of elections that an
29 investigation shall not be undertaken, the state board of elections
30 enforcement unit shall commence an investigation on a timely basis. If
31 the state board of elections enforcement unit determines that additional
32 investigative powers, as provided for in subdivisions four, five and six
33 of section 3-102 of this title, are needed to complete its investi-
34 gation, it shall request such additional powers from the state board of
35 elections. Such powers shall be granted by the board in public, as
36 provided in subdivision six of this section, only when the board finds
37 that further investigation is warranted and justified.
38 8. At the conclusion of its investigation, the state board of
39 elections enforcement unit shall provide the state board of elections
40 with a written recommendation as to: (a) whether substantial reason
41 exists to believe a violation of article fourteen of this chapter has
42 occurred and, if so, the nature of the violation, and the appropriate
43 penalty, as defined in section 14-126 of this chapter, based on the
44 nature of the violation; and (b) whether a referral should be made to a
45 district attorney or attorney general pursuant to subdivision ten of
46 this section because substantial reason exists to believe a violation
47 warranting criminal prosecution has taken place.
48 9. The state board of elections shall accept, modify or reject the
49 state board of elections enforcement unit recommendation. In making its
50 determination, the board shall again consider: (a) whether the complaint
51 alleges a de minimus violation of article fourteen of this chapter; or
52 (b) whether the subject of the complaint has made a good faith effort to
53 correct the violation; or (c) whether the subject of the complaint has a
54 history of similar violations. All such determinations shall be voted
55 upon as provided in subdivision four of section 3-100 of this title at
56 an open meeting pursuant to article seven of the public officers law,
S. 8594 6
1 and shall be made on a fair and equitable basis, without regard to the
2 status of the subject of the complaint.
3 10. (a) If the state board of elections enforcement unit concludes
4 that substantial reason exists to believe that a violation of subdivi-
5 sion one of section 14-126 of this chapter has occurred which could
6 warrant a civil penalty, the state board of elections and enforcement
7 unit shall commence a special proceeding in the supreme court pursuant
8 to section 16-114 of this chapter.
9 (b) If the state board of elections concludes, as provided in subdivi-
10 sion four of section 3-100 of this title at an open meeting pursuant to
11 article seven of the public officers law, that substantial reason exists
12 to believe that a person, acting as or on behalf of a candidate or poli-
13 tical committee under circumstances evincing an intent to violate such
14 law, has unlawfully (i) accepted a monetary contribution in excess of a
15 contribution limitation established in article fourteen of this chapter,
16 (ii) expended campaign funds for a personal use in violation of section
17 14-130 of this chapter, or (iii) in the case of a political committee,
18 conducted activities prohibited by article fourteen of this chapter,
19 which could warrant a civil penalty as provided for in subdivisions two
20 and three of section 14-126 of this chapter, the board shall direct the
21 commencement of a special proceeding in the supreme court pursuant to
22 section 16-120 of this chapter.
23 (c) If the state board of elections concludes, as provided in subdivi-
24 sion four of section 3-100 of this title at an open meeting pursuant to
25 article seven of the public officers law, that substantial reason exists
26 to believe a violation warranting criminal prosecution has taken place,
27 the board shall refer the matter to a district attorney or attorney
28 general and shall make available to such district attorney all papers,
29 documents, testimony and findings relevant to its investigation.
30 11. Upon notification that a special proceeding has been commenced by
31 a party other than the state board of elections, pursuant to section
32 16-114 of this chapter, the state board of elections shall direct the
33 state board of elections enforcement unit to investigate the alleged
34 violations unless otherwise directed by the court.
35 12. The state board of elections shall promulgate rules and regu-
36 lations consistent with law to effectuate the provisions of this
37 section.
38 § 6. The election law is amended by adding a new section 3-228 to read
39 as follows:
40 § 3-228. State board of elections website; public access. Every board
41 of elections shall make at least one computer available to the public,
42 including candidates for public office or party position, for the
43 purpose of accessing the state board of elections website. Such access
44 shall allow candidates to file their statements of campaign receipts,
45 contributions, transfers and expenditures as required by section 14-110
46 of this chapter.
47 § 7. Subdivision 1 of section 14-100 of the election law, as amended
48 by chapter 71 of the laws of 1988, is amended to read as follows:
49 1. "political committee" means any [corporation] business entity
50 aiding or promoting and any committee, political club or combination of
51 one or more persons operating or co-operating to aid or to promote the
52 success or defeat of a political party or principle, or of any ballot
53 proposal; or to aid or take part in the election or defeat of a candi-
54 date for public office or to aid or take part in the election or defeat
55 of a candidate for nomination at a primary election or convention,
56 including all proceedings prior to such primary election, or of a candi-
S. 8594 7
1 date for any party position voted for at a primary election, or to aid
2 or defeat the nomination by petition of an independent candidate for
3 public office; or any political action committee established, financed,
4 maintained or controlled by any business entity, labor organization or
5 any other person or entity which makes no expenditure to aid or take
6 part in the election or defeat of a candidate, other than in the form of
7 contributions; but nothing in this article shall apply to any committee
8 or organization for the discussion or advancement of political questions
9 or principles without connection with any vote or to a national commit-
10 tee organized for the election of presidential or vice-presidential
11 candidates; provided, however, that a person or [corporation] business
12 entity making a contribution or contributions to a candidate or a poli-
13 tical committee which has filed pursuant to section 14-118 shall not, by
14 that fact alone, be deemed to be a political committee as herein
15 defined.
16 § 7-a. Paragraph 2 of subdivision 9 of section 14-100 of the election
17 law, as amended by chapter 70 of the laws of 1983, is amended to read as
18 follows:
19 (2) any funds received by a political committee from another political
20 committee [to the extent such funds do not constitute a] by any means
21 including transfer,
22 § 7-b. Section 14-100 of the election law is amended by adding three
23 new subdivisions 12, 13 and 14 to read as follows:
24 12. "related limited liability company" means a limited liability
25 company that is an affiliate of a corporation within the meaning of
26 paragraph (a) of section nine hundred twelve of the business corporation
27 law. As used in this article, corporation means both a for-profit corpo-
28 ration within the meaning of subparagraph four of paragraph (a) of
29 section one hundred two of the business corporation law as well as a
30 nonprofit corporation within the meaning of subparagraph five of para-
31 graph (a) of section one hundred two of the not-for-profit corporation
32 law.
33 13. (1) "related limited liability partnership," consistent with
34 section ten of the partnership law, means a partnership without limited
35 partners operating under an agreement governed by the laws of this
36 state, which (A) is not a professional partnership under this section,
37 (B) is affiliated with a professional service limited liability company,
38 foreign professional service limited liability company, professional
39 service corporation, foreign professional service corporation, regis-
40 tered limited liability partnership that is a professional partnership
41 under this section or a foreign limited liability partnership under
42 clause (i) or (ii) of the eighth undesignated paragraph of section two
43 of the partnership law, and (C) renders services related or complementa-
44 ry to the professional services rendered by, or provides services or
45 facilities to, such professional service limited liability company,
46 foreign professional service limited liability company, professional
47 service corporation, foreign professional service corporation, regis-
48 tered limited liability partnership or foreign limited liability part-
49 nership.
50 (2) For purposes of this subdivision, such a partnership is affiliated
51 with a professional service limited liability company, foreign profes-
52 sional service limited liability company, professional service corpo-
53 ration, foreign professional service corporation, registered limited
54 liability partnership or foreign limited liability partnership if (A) at
55 least a majority of partners in one partnership are partners in the
56 other partnership, (B) at least a majority of the partners in each part-
S. 8594 8
1 nership also are partners, hold interests or are members in a limited
2 liability company or other business entity, and each partnership renders
3 services pursuant to an agreement with such limited liability company or
4 other business entity, or (C) the partnerships or the partnership and
5 such professional service limited liability company, such foreign
6 professional service limited liability company, such professional
7 service corporation, or such foreign professional service corporation
8 are affiliates within the meaning of paragraph (a) of section nine
9 hundred twelve of the business corporation law.
10 14. "single source" means any person, persons in combination, or enti-
11 ty who or which establishes, maintains, or controls another entity and
12 every entity so established, maintained, or controlled, including every
13 political committee established, maintained, or controlled by the same
14 person, persons in combination, or entity. If a candidate accepts more
15 than one contribution from a single source, the contributions shall be
16 totaled to determine the participant's or candidate's compliance with
17 the applicable contribution limit. A general partner or general manager
18 and each partnership and limited liability company it controls shall be
19 presumed, in the absence of evidence demonstrating the contrary, to be a
20 single source for the purpose of compliance with the applicable contrib-
21 ution limit.
22 § 8. Subdivisions 1 and 3 of section 14-102 of the election law, as
23 amended by chapter 8 of the laws of 1978, subdivision 1 as redesignated
24 by chapter 9 of the laws of 1978 and subdivision 3 as renumbered by
25 chapter 70 of the laws of 1983, are amended to read as follows:
26 1. The treasurer of every political committee which, or any officer,
27 member or agent of any such committee who, in connection with any
28 election, receives or expends any money or other [valuable thing] item
29 of value or incurs any liability to pay money or its equivalent shall
30 file statements sworn, or subscribed and bearing a form notice that
31 false statements made therein are punishable as a class A misdemeanor
32 pursuant to section 210.45 of the penal law, at the times prescribed by
33 this article setting forth all the receipts, contributions to and the
34 expenditures by and liabilities of the committee, and of its officers,
35 members and agents in its behalf. Such statements shall include the
36 dollar amount of any receipt, contribution or transfer, or the fair
37 market value of any receipt, contribution or transfer, which is other
38 than of money, the name [and], address and occupation of the transferor,
39 contributor or person from whom received, other than in the regular
40 course of a lender's business, and for a natural person contributing two
41 hundred dollars or more, the name and address of such person's employer,
42 and the business address of each political committee or other entity
43 making such contribution, or any loan, guarantee, or other security for
44 such a loan and if the transferor, contributor or person is a political
45 committee; the name of and the political unit represented by the commit-
46 tee, the date of its receipt, the dollar amount of every expenditure,
47 the name and address of the person to whom it was made or the name of
48 and the political unit represented by the committee to which it was made
49 and the date thereof, and shall state clearly the purpose of such
50 expenditure. If any one expenditure is made for more than one purpose,
51 or as payment for goods or services supplied by more than one supplier,
52 such statement shall set forth separately each such purpose or supplier
53 and the amount expended for each such purpose or to each such supplier.
54 Any statement reporting a loan shall have attached to it a copy of the
55 evidence of indebtedness. Expenditures in sums under fifty dollars need
56 not be specifically accounted for by separate items in said statements,
S. 8594 9
1 and receipts and contributions aggregating not more than ninety-nine
2 dollars, from any one contributor need not be specifically accounted for
3 by separate items in said statements, provided however, that such
4 expenditures, receipts and contributions shall be subject to the other
5 provisions of section 14-118 of this article.
6 3. The state board of elections shall promulgate regulations with
7 respect to the accounting methods to be applied in complying with, and
8 in preparing the statements required by, the provisions of this article
9 and shall provide forms suitable for such statements. Such regulations
10 shall be drawn to assure such compliance and obtain the maximum possible
11 disclosure.
12 § 9. Subdivision 1 of section 14-104 of the election law, as amended
13 by chapter 430 of the laws of 1997, is amended to read as follows:
14 1. Any candidate for election to public office, or for nomination for
15 public office at a contested primary election or convention, or for
16 election to a party position at a primary election, shall file state-
17 ments sworn, or subscribed and bearing a form notice that false state-
18 ments made therein are punishable as a class A misdemeanor pursuant to
19 section 210.45 of the penal law, at the times prescribed by this article
20 setting forth the particulars specified by section 14-102 of this arti-
21 cle, as to all moneys or other valuable things, paid, given, expended or
22 promised by him or her to aid his or her own nomination or election, or
23 to promote the success or defeat of a political party, or to aid or
24 influence the nomination or election or the defeat of any other candi-
25 date to be voted for at the election or primary election or at a conven-
26 tion, including contributions to political committees, officers, members
27 or agents thereof, and transfers, receipts and contributions to him or
28 her to be used for any of the purposes above specified, or in lieu ther-
29 eof, any such candidate may file such a sworn statement at the first
30 filing period, on a form prescribed by the state board of elections that
31 such candidate has made no such expenditures and does not intend to make
32 any such expenditures, except through a political committee authorized
33 by such candidate pursuant to this article. A committee authorized by
34 such a candidate may fulfill all of the filing requirements of this
35 [act] article on behalf of such candidate.
36 § 10. The election law is amended by adding a new section 14-105 to
37 read as follows:
38 § 14-105. Contribution delivery activities by an intermediary. 1. For
39 purposes of this section "intermediary" means an individual, corpo-
40 ration, partnership, political committee, employee organization or other
41 entity which:
42 (a) other than in the regular course of business as a postal, delivery
43 or messenger service, delivers any contribution from another person or
44 entity to a candidate or authorized committee; or
45 (b) solicits contributions to a candidate or other authorized commit-
46 tee where such solicitation is known to such candidate or his or her
47 authorized committee. For purposes of paragraph (b) of this subdivision,
48 only persons clearly identified as the solicitor of a contribution to
49 the candidate or his or her authorized committee shall be presumed to be
50 known to such candidate or his or her authorized committee. "Interme-
51 diary" shall not include spouses, domestic partners, parents, children
52 or siblings of the person making such contribution, or any paid or
53 volunteer full-time campaign workers or commercial fundraising firms
54 retained by the candidate and the agents thereof.
55 2. When contributions totaling one thousand dollars or more are deliv-
56 ered by the intermediary to the recipient candidate, authorized candi-
S. 8594 10
1 date committee or party committee, the intermediary shall indicate in
2 writing to the recipient candidate, authorized candidate committee or
3 party committee the following information:
4 (a) the name, mailing address and occupation of each contributor who
5 makes a contribution over ninety-nine dollars, and the amount of each
6 contribution, and for each contribution of two hundred dollars or more,
7 the name and address of such contributor's employer;
8 (b) the total aggregate amount of contributions of ninety-nine dollars
9 or less; and
10 (c) the date the contribution was received by the intermediary and the
11 date the contributions were delivered to the recipient candidate,
12 authorized candidate committee or party committee.
13 3. The recipient candidate, authorized candidate committee or party
14 committee shall report to the state board of elections the intermediary
15 who delivers contributions totaling one thousand dollars or more on the
16 statements required by this article.
17 4. The state board of elections shall provide a section for interme-
18 diary reporting as required by this section, which shall include:
19 (a) the name, mailing address, occupation and employer of the interme-
20 diary; and
21 (b) the total amount of contributions delivered by the intermediary to
22 the candidate, the candidate's authorized committee or a party commit-
23 tee.
24 § 11. Section 14-106 of the election law, as amended by chapter 8 of
25 the laws of 1978, is amended to read as follows:
26 § 14-106. Political [advertisements and literature] communication;
27 filing and identification. 1. The statements required to be filed under
28 the provisions of this article next succeeding a primary, general or
29 special election shall be accompanied by a [facsimile or] copy of all
30 broadcast, cable or satellite schedules and scripts, advertisements,
31 pamphlets, circulars, flyers, brochures, letterheads and other printed
32 matter purchased or produced [and a schedule of all radio or television
33 time, and scripts used therein], scripts of or recordings of automated
34 telephonic calls, and reproductions of statements or information
35 conveyed by computer or other electronic device to five hundred or more
36 members of a general public audience, purchased in connection with such
37 election by or under the authority of the person filing the statement or
38 the committee or the person on whose behalf it is filed, as the case may
39 be. Such [facsimiles,] copies, schedules and scripts shall be preserved
40 by the officer with whom or the board with which it is required to be
41 filed for a period of one year from the date of filing thereof.
42 2. Whenever any person makes an expenditure greater than one thousand
43 dollars in the aggregate for the purpose of financing, or otherwise
44 publishes or distributes, communications to a general public audience
45 that expressly advocates the election or defeat of a clearly identified
46 candidate or promotes the success or defeat of a ballot proposal, such
47 communication:
48 (a) if paid for and authorized by a candidate, an authorized political
49 committee of a candidate, or its agents, shall clearly state that the
50 communication has been paid for by such candidate, authorized political
51 committee, or agent; or
52 (b) if paid for by other persons but authorized by a candidate, an
53 authorized political committee of a candidate, or its agents, shall
54 clearly state that the communication is paid for by such other persons
55 and authorized by such candidate, authorized political committee, or
56 agent.
S. 8594 11
1 (c) for purposes of this subdivision, the term "person" includes an
2 individual or any other organization or group of persons.
3 3. Whenever any political committee makes an expenditure or expendi-
4 tures in excess of five hundred dollars in the aggregate for the purpose
5 of financing, or otherwise publishes or distributes, communications to a
6 general public audience that expressly advocates the election or defeat
7 of a clearly identified candidate or promotes the success or defeat of a
8 ballot proposal and such communication is not authorized by a candidate,
9 an authorized political committee of a candidate, or its agents, such
10 communication shall clearly state the name of the political committee
11 who paid for, or otherwise published or distributed, the communication
12 and state, with respect to communications regarding candidates, that the
13 communication is not authorized by any candidate or candidate's commit-
14 tee.
15 4. For purposes of this section, a communication expressly advocates
16 the election or defeat of a clearly identified candidate if:
17 (a) the communication contains terms such as the following or their
18 synonyms:
19 (1) "Vote for";
20 (2) "Elect";
21 (3) "Support";
22 (4) "Cast your ballot for";
23 (5) "Candidate name for Assembly";
24 (6) "Candidate name '08";
25 (7) "Veterans for candidate name";
26 (8) "Vote against";
27 (9) "Oppose";
28 (10) "Defeat";
29 (11) "Reject"; or
30 (b) the communication is susceptible of no reasonable interpretation
31 other than as an appeal to vote for or against a specific candidate. A
32 communication is susceptible of no reasonable interpretation other than
33 as an appeal to elect or defeat a specific candidate if the communi-
34 cation:
35 (1) refers to two or more clearly identified candidates who are
36 competing with each other in an election;
37 (2) supports or condemns a clearly identified candidate's record on an
38 issue (as opposed to taking a position on the issue and exhorting the
39 recipients of the communication to contact an office-holder to advance
40 that position);
41 (3) takes a position on any clearly identified candidate's character,
42 qualifications, or fitness for office; or
43 (4) refers to a clearly identified candidate for judicial office.
44 5. For purposes of this section, the term "communication" includes any
45 audio or video communications via broadcast, cable or satellite, any
46 written communications via advertisements, pamphlets, circulars, flyers,
47 brochures, letterheads or other printed matter, telephonic calls and
48 statements or information conveyed by computer or other electronic
49 devices to five hundred or more members of a general public audience.
50 6. A knowing and willful violation of the provisions of this section
51 shall constitute a class A misdemeanor.
52 § 12. The election law is amended by adding a new section 14-107 to
53 read as follows:
54 § 14-107. Electioneering communication. 1. Electioneering communi-
55 cation means any broadcast, cable, satellite communication, or any news-
56 paper, magazine or billboard advertisement that:
S. 8594 12
1 (a) refers to a clearly identified candidate for state office;
2 (b) is publicly distributed within sixty days before a general
3 election for the office sought by the candidate; or within sixty days
4 before a primary or preference election, or a convention or caucus of a
5 political party that has authority to nominate a candidate, for the
6 office sought by the candidate, and the candidate referenced is seeking
7 the nomination of that political party;
8 (c) is targeted to the relevant electorate, in the case of a candidate
9 for state senate or state assembly; and
10 (d) is not a commercial advertisement that refers to an owner, direc-
11 tor or officer of a business entity who is also a candidate and is an
12 advertisement that was previously broadcast or first appeared when the
13 owner, director or officer was not yet a candidate.
14 2. For purposes of this section: (a) "broadcast, cable, or satellite
15 communication" means a communication that is publicly distributed by a
16 television station, radio station, cable television system, or satellite
17 system.
18 (b) "refers to a clearly identified candidate" means that the candi-
19 date's name, nickname, photograph, or drawing appears, or the identity
20 of the candidate is otherwise apparent through an unambiguous reference
21 such as "the state Senator," "your Assemblyperson," or "the incumbent,"
22 or through an unambiguous reference to his or her status as a candidate
23 such as "the Democratic candidate for state house" or "the Republican
24 candidate for state Senate."
25 (c) "publicly distributed" means aired, broadcast, cablecast or other-
26 wise disseminated through the facilities of a television station, radio
27 station, cable television system, or satellite system.
28 (d) a "special election" or a "runoff election" is a primary election
29 if held to nominate a candidate. A special election or a runoff election
30 is a general election if held to elect a candidate.
31 (e) "targeted to the relevant electorate" means the communication can
32 be received by three hundred or more persons in the district the candi-
33 date seeks to represent.
34 § 13. Subdivision 1 of section 14-108 of the election law, as amended
35 by chapter 955 of the laws of 1983, is amended to read as follows:
36 1. The statements required by this article shall be filed at such
37 times as the state board of elections, by rule or regulation, shall
38 specify; provided, however, that in no event shall the board provide for
39 fewer than three filings in the aggregate in connection with any prima-
40 ry, general or special election, or in connection with a question to be
41 voted on and two of said filings shall be before any such election,
42 including one such filing not less than thirty days nor more than
43 forty-five days prior to such election and one such filing not less than
44 eleven days nor more than fifteen days prior to such election. In addi-
45 tion, the board shall provide that every political committee which has
46 filed a statement of treasurer and depository shall make [at least] one
47 filing [every six months between the time such statement of treasurer
48 and depository is filed and the time such committee goes out of busi-
49 ness] on January thirty-first, one filing on April thirtieth and one
50 filing on July thirty-first of each year. If any candidate or committee
51 shall be required by the provisions of this section, or by rule or regu-
52 lation hereunder, to effect two filings within a period of five days,
53 the state board of elections may, by rule or regulation, waive the
54 requirement of filing the earlier of such statements. If a statement
55 filed by a candidate or committee after the election to which it
56 pertains is not a final statement showing satisfaction of all liabil-
S. 8594 13
1 ities and disposition of all assets, such candidate or committee shall
2 file such additional statements as the board shall, by rule or regu-
3 lation provide until such a final statement is filed.
4 § 14. Subdivision 6 of section 14-108 of the election law, as amended
5 by chapter 323 of the laws of 1977 and as redesignated by chapter 9 of
6 the laws of 1978, is amended to read as follows:
7 6. A statement shall be deemed properly filed when deposited in an
8 established post-office within the prescribed time, duly stamped, certi-
9 fied and directed to the officer with whom or to the board with which
10 the statement is required to be filed, but in the event it is not
11 received, a duplicate of such statement shall be promptly filed upon
12 notice by such officer or such board of its non-receipt; provided,
13 however, all statements required to be filed during the period of
14 fifteen days before any election shall be filed electronically or by
15 guaranteed overnight delivery through the United States postal service
16 or some other overnight delivery service.
17 § 15. Section 14-112 of the election law, as amended by chapter 930 of
18 the laws of 1981, is amended to read as follows:
19 § 14-112. [Political] Authorized committee; political committee
20 authorization statement. 1. Any political committee aiding or taking
21 part in the election or nomination of any candidate[, other than by
22 making contributions,] shall file, in the office in which the statements
23 of such committee are to be filed pursuant to this article, either a
24 sworn verified statement by the treasurer of such committee and the
25 candidate that [the] such candidate has authorized the political commit-
26 tee to aid or take part in his or her election or a sworn verified
27 statement by the treasurer of such committee that the candidate has not
28 authorized the committee to aid or take part in his or her election.
29 2. No candidate may authorize more than one political committee for
30 any one election. Any candidate who, on December first, two thousand
31 eight, has authorized more than one political committee for any one
32 election shall, not later than thirty days after said date, disavow all
33 but one of such committees, in writing, to the state board of elections.
34 This subdivision shall not apply to the authorization of an exploratory
35 committee by an elected public official. A multi-candidate committee may
36 not be an authorized committee.
37 3. Campaign funds remaining in any disavowed committee shall be
38 disposed of pursuant to section 14-132 of this article.
39 § 16. Subdivision 1 of section 14-114 of the election law, as amended
40 by chapter 79 of the laws of 1992, paragraphs a and b as amended by
41 chapter 659 of the laws of 1994, is amended to read as follows:
42 1. The following limitations apply to all contributions to candidates
43 for election to any public office or for nomination for any such office,
44 or for election to any party positions, and to all contributions to
45 political committees working directly or indirectly with any candidate
46 to aid or participate in such candidate's nomination or election, other
47 than any contributions to any party committee or constituted committee:
48 a. In any election for a public office to be voted on by the voters of
49 the entire state, or for nomination to any such office, no contributor
50 may make a contribution to any candidate or political committee, and no
51 candidate or political committee may accept any contribution from any
52 contributor, which is in the aggregate amount greater than: (i) in the
53 case of any nomination to public office, the product of the total number
54 of enrolled voters in the candidate's party in the state, excluding
55 voters in inactive status, multiplied by $.005, but such amount shall be
56 not less than four thousand dollars nor more than [twelve] five thousand
S. 8594 14
1 dollars as increased or decreased by the cost of living adjustment
2 described in paragraph c of this subdivision, and (ii) in the case of
3 any election to a public office, [twenty-five] five thousand dollars as
4 increased or decreased by the cost of living adjustment described in
5 paragraph c of this subdivision[; provided however, that the maximum
6 amount which may be so contributed or accepted, in the aggregate, from
7 any candidate's child, parent, grandparent, brother and sister, and the
8 spouse of any such persons, shall not exceed in the case of any nomi-
9 nation to public office an amount equivalent to the product of the
10 number of enrolled voters in the candidate's party in the state, exclud-
11 ing voters in inactive status, multiplied by $.025, and in the case of
12 any election for a public office, an amount equivalent to the product of
13 the number of registered voters in the state excluding voters in inac-
14 tive status, multiplied by $.025].
15 b. In any other election for party position or for election to a
16 public office or for nomination for any such office, no contributor may
17 make a contribution to any candidate or political committee and no
18 candidate or political committee may accept any contribution from any
19 contributor, which is in the aggregate amount greater than: (i) in the
20 case of any election for party position, or for nomination to public
21 office, the product of the total number of enrolled voters in the candi-
22 date's party in the district in which he is a candidate, excluding
23 voters in inactive status, multiplied by $.05, and (ii) in the case of
24 any election for a public office, the product of the total number of
25 registered voters in the district, excluding voters in inactive status,
26 multiplied by $.05[,]; but in no event shall any such maximum exceed
27 three thousand dollars or be less than one thousand dollars; however in
28 the case of a nomination or election within the city of New York for the
29 office of mayor, public advocate [or], comptroller, borough president or
30 member of the city council, such amount shall be [not less than four
31 thousand dollars nor more than twelve thousand dollars as increased or
32 decreased by the cost of living adjustment described in paragraph c of
33 this subdivision; in the case of an election within the city of New York
34 for the office of mayor, public advocate or comptroller, twenty-five
35 thousand dollars as increased or decreased by the cost of living adjust-
36 ment described in paragraph c of this subdivision] equal to the contrib-
37 ution limits set forth in paragraph (f) of subdivision one of section
38 3-703 of the administrative code of the city of New York; provided
39 however in the case of a nomination or election for state senator,
40 [four] two thousand three hundred dollars as increased or decreased by
41 the cost of living adjustment described in paragraph c of this subdivi-
42 sion; [in the case of an election for state senator, six thousand two
43 hundred fifty dollars as increased or decreased by the cost of living
44 adjustment described in paragraph c of this subdivision;] in the case of
45 [an election or] a nomination or election for a member of the assembly,
46 [twenty-five hundred] one thousand one hundred fifty dollars as
47 increased or decreased by the cost of living adjustment described in
48 paragraph c of this subdivision[; but in no event shall any such maximum
49 exceed fifty thousand dollars or be less than one thousand dollars;
50 provided however, that the maximum amount which may be so contributed or
51 accepted, in the aggregate, from any candidate's child, parent, grand-
52 parent, brother and sister, and the spouse of any such persons, shall
53 not exceed in the case of any election for party position or nomination
54 for public office an amount equivalent to the number of enrolled voters
55 in the candidate's party in the district in which he is a candidate,
56 excluding voters in inactive status, multiplied by $.25 and in the case
S. 8594 15
1 of any election to public office, an amount equivalent to the number of
2 registered voters in the district, excluding voters in inactive status,
3 multiplied by $.25; or twelve hundred fifty dollars, whichever is great-
4 er, or in the case of a nomination or election of a state senator, twen-
5 ty thousand dollars, whichever is greater, or in the case of a nomi-
6 nation or election of a member of the assembly twelve thousand five
7 hundred dollars, whichever is greater, but in no event shall any such
8 maximum exceed one hundred thousand dollars].
9 c. At the beginning of each fourth calendar year, commencing in [nine-
10 teen hundred ninety-five] two thousand twelve, the state board shall
11 determine the percentage of the difference between the [most recent
12 available monthly] consumer price index for all urban consumers
13 published by the United States bureau of labor statistics and such
14 consumer price index published for the same month four years previously.
15 The amount of each contribution limit fixed in this subdivision shall be
16 adjusted by the amount of such percentage difference to the closest one
17 hundred dollars by the state board which, not later than the first day
18 of February in each such year, shall issue a regulation publishing the
19 amount of each such contribution limit. Each contribution limit as so
20 adjusted shall be the contribution limit in effect for any election held
21 before the next such adjustment.
22 § 17. Section 14-114 of the election law is amended by adding a new
23 subdivision 11 to read as follows:
24 11. a. For the purposes of this subdivision: (1) "self-financed candi-
25 date" shall mean a candidate who expends personal funds in excess of the
26 threshold amount established for the office for which such individual is
27 a candidate; (2) "non-self-financed candidate" means any candidate who
28 is not a self-financed candidate and who has an opponent who is a self-
29 financed candidate; (3) "personal funds" means all funds owned by a
30 candidate or a candidate's spouse that are expended in furtherance of
31 his or her candidacy including, but not limited to, monetary and in-kind
32 contributions and loans or loan guarantees from the candidate to his or
33 her political committee; and (4) "threshold amount" shall mean twenty
34 times the contribution limit under paragraphs a and b of subdivision one
35 of this section for the office the candidate seeks.
36 b. Subject to the provisions of paragraph d of this subdivision, the
37 contribution limits under paragraphs a and b of subdivision one of this
38 section for a non-self-financed candidate shall be as follows: (1) ten
39 thousand dollars for a public office to be voted on by the voters of the
40 entire state; (2) four thousand six hundred dollars for a state senator;
41 and (3) two thousand three hundred dollars for a member of the assembly;
42 provided that such limitations shall be increased or decreased by the
43 cost of living adjustment described in paragraph c of subdivision one of
44 this section.
45 c. (1) Upon the establishment of a candidate committee, a candidate
46 must estimate on a statement to be filed with the state board of
47 elections the amount by which their personal spending on the campaign
48 will exceed the threshold amount and send a copy of such statement filed
49 with the board to each known opponent.
50 (2) Within twenty-four hours, a self-financed candidate must report to
51 the state board of elections and any known opponent:
52 (i) any expenditure of personal funds above the contribution limit for
53 the office he or she seeks, including the receipt of services in
54 exchange for the payment for such services in the future from personal
55 funds;
S. 8594 16
1 (ii) each additional one thousand dollar expenditure of personal
2 funds, including the receipt of services in exchange for the payment for
3 such services in the future from personal funds; and
4 (iii) when the aggregate expenditure of personal funds, including the
5 receipt of services in exchange for the payment for such services in the
6 future from personal funds, exceeds the threshold amount.
7 (3) The expenditure of personal funds higher than the contribution
8 limit of the candidate who has failed to timely file or report the
9 statements required by this paragraph is prohibited.
10 d. A candidate and the candidate's authorized committee shall not
11 accept any contribution under the increased limit authorized by para-
12 graph a of this subdivision until the candidate has received notifica-
13 tion from the self-financed opponent or the state board of elections
14 that cumulative expenditures from personal funds have been made that
15 exceed the threshold amount.
16 e. (1) A candidate who is an opponent of a self-financed candidate
17 shall not accept any more contributions at the increased limit when the
18 aggregate amount of contributions collected as a result of the increased
19 limit is equal to one hundred percent of the personal funds expended by
20 the self-financed candidate.
21 (2) A candidate and a candidate's authorized committee shall not
22 accept any contribution under the increased limit under paragraph a of
23 this subdivision after the date on which an opposing self-financing
24 candidate ceases to be a candidate to the extent that the amount of such
25 increased limit is attributable to such an opposing candidate.
26 f. The aggregate amount of contributions accepted by a candidate or a
27 candidate's authorized committee as a result of the increased limit
28 under paragraph a of this subdivision and not otherwise expended in
29 connection with the election with respect to which such contributions
30 relate, shall, not later than seventy-five days after the date of such
31 election, be returned to the person or persons who made the contrib-
32 ution.
33 § 18. Subdivision 8 of section 14-114 of the election law, as amended
34 by chapter 8 of the laws of 1978 and as redesignated by chapter 9 of the
35 laws of 1978, is amended to read as follows:
36 8. a. Except as may otherwise be provided [for] by a candidate [and
37 his family] for his or her own campaign, no natural person may contrib-
38 ute, loan or guarantee in excess of [one hundred fifty] twenty-five
39 thousand dollars within the state of New York in any calendar year in
40 connection with the nomination or election of [persons to] candidates
41 for state [and] or local public offices [and] or party positions [within
42 the state of New York in any one calendar year].
43 b. For the purposes of this subdivision "loan" or "guarantee" shall
44 mean a loan or guarantee which is not repaid or discharged in the calen-
45 dar year in which it is made.
46 § 19. Subdivision 10 of section 14-114 of the election law, as added
47 by chapter 79 of the laws of 1992, is amended to read as follows:
48 10. a. No contributor may make a contribution to a party or consti-
49 tuted committee and no such committee may accept a contribution from any
50 contributor which, in the aggregate, is greater than [sixty-two] twen-
51 ty-five thousand [five hundred] dollars per annum.
52 b. At the beginning of each fourth calendar year, commencing in [nine-
53 teen hundred ninety-five] two thousand twelve, the state board shall
54 determine the percentage of the difference between the most recent
55 available monthly consumer price index for all urban consumers published
56 by the United States bureau of labor statistics and such consumer price
S. 8594 17
1 index published for the same month four years previously. The amount of
2 such contribution limit fixed in paragraph a of this subdivision shall
3 be adjusted by the amount of such percentage difference to the closest
4 one hundred dollars by the state board which, not later than the first
5 day of February in each such year, shall issue a regulation publishing
6 the amount of such contribution limit. Such contribution limit as so
7 adjusted shall be the contribution limit in effect for any election held
8 before the next such adjustment.
9 § 20. Subdivisions 1 and 2 of section 14-116 of the election law,
10 subdivision 1 as redesignated by chapter 9 of the laws of 1978 and
11 subdivision 2 as amended by chapter 260 of the laws of 1981, are amended
12 and a new subdivision 3 is added to read as follows:
13 1. No corporation [or], joint-stock association, limited liability
14 company, professional limited liability company, partnership or limited
15 liability partnership doing business in this state, except [a corpo-
16 ration or association] an entity organized or maintained for political
17 purposes only, shall directly or indirectly pay or use or offer, consent
18 or agree to pay or use any money or property for or in aid of any poli-
19 tical party, committee or organization, or for, or in aid of, any
20 [corporation, joint-stock or other association] entity organized or
21 maintained for political purposes, or for, or in aid of, any candidate
22 for political office or for nomination for such office, or for any poli-
23 tical purpose whatever, or for the reimbursement or indemnification of
24 any person for moneys or property so used. Any officer, director, stock-
25 holder, member, partner, attorney or agent of any corporation [or],
26 joint-stock association, limited liability company, professional limited
27 liability company, partnership or limited liability partnership which
28 violates any of the provisions of this section, who participates in,
29 aids, abets or advises or consents to any such violations, and any
30 person who solicits or knowingly receives any money or property in
31 violation of this section, shall be guilty of a misdemeanor.
32 2. Notwithstanding the provisions of subdivision one of this section,
33 any corporation or an organization financially supported in whole or in
34 part, by such corporation, or any limited liability company, profes-
35 sional limited liability company, partnership or limited liability part-
36 nership may make expenditures, including contributions, not otherwise
37 prohibited by law, for political purposes, in an amount not to exceed
38 five thousand dollars in the aggregate in any calendar year; provided
39 that no public utility shall use revenues received from the rendition of
40 public service within the state for contributions for political purposes
41 unless such cost is charged to the shareholders of such a public service
42 corporation.
43 3. For the purposes of subdivision two of this section, all of the
44 component members of a controlled group of corporations within the mean-
45 ing of section one thousand five hundred sixty-three of the internal
46 revenue code of the United States shall be deemed to be one corporation,
47 and provided further, contributions given by a subsidiary of a corpo-
48 ration that is wholly or in part controlled by the corporation, a
49 related limited liability partnership that is wholly or in part
50 controlled by the corporation, or a related limited liability company
51 that is wholly or in part controlled by the corporation, are deemed to
52 be a contribution by the corporation. All single sources of contrib-
53 utions, including from affiliated corporate entities, within the meaning
54 of paragraph (a) of section nine hundred twelve of the business corpo-
55 ration law, together may make contributions, not otherwise prohibited by
S. 8594 18
1 law, for political purposes, in an amount not to exceed five thousand
2 dollars in the aggregate in any calendar year.
3 § 21. Subdivision 1 of section 14-118 of the election law, as amended
4 by chapter 70 of the laws of 1983, is amended to read as follows:
5 1. Every political committee shall have a treasurer and a depository,
6 and shall cause the treasurer to keep detailed, bound accounts of all
7 receipts, transfers, loans, liabilities, contributions and expenditures,
8 made by the committee or any of its officers, members or agents acting
9 under its authority or in its behalf. All such accounts shall be
10 retained by a treasurer for a period of five years from the date of the
11 filing of the final statement with respect to the election, primary
12 election or convention to which they pertain. No officer, member or
13 agent of any political committee shall receive any receipt, transfer or
14 contribution, or make any expenditure or incur any liability until the
15 committee shall have chosen a treasurer and depository and filed their
16 names in accordance with this subdivision. There shall be filed in the
17 office in which the committee is required to file its statements under
18 section 14-110 of this article, within five days after the choice of a
19 treasurer and depository, a statement giving the name and address of the
20 treasurer chosen, the name and address of any person authorized to sign
21 checks by such treasurer, the name and address of the depository chosen
22 and the candidate or candidates or ballot proposal or proposals the
23 success or defeat of which the committee is to aid or take part;
24 provided, however, that such statement shall not be required of a
25 constituted committee [and provided further that a political committee
26 which makes no expenditures, to aid or take part in the election or
27 defeat of a candidate, other than in the form of contributions, shall
28 not be required to list the candidates being supported or opposed by
29 such committee]. Such a statement from any committee other than a party
30 or authorized committee also shall clearly identify the economic or
31 other special interest, if identifiable, of a majority of its contribu-
32 tors, and if a majority of its contributors share a common employer,
33 shall identify such employer. If the economic or other special interest
34 or common employer are not identifiable, such statement of a multi-can-
35 didate committee shall clearly identify the economic or other special
36 interest, if identifiable, of a majority of its organizers, and if a
37 majority of its organizers share a common employer, shall identify such
38 employer, and if organized, controlled or maintained by an individual,
39 shall identify such individual. Such statement shall be signed by the
40 treasurer and all other persons authorized to sign checks. Any change in
41 the information required in any statement shall be reported, in an
42 amended statement filed in the same manner and in the same office as an
43 original statement filed under this section, within two days after it
44 occurs. Only a banking organization authorized to do business in this
45 state may be designated a depository hereunder.
46 § 22. Subdivision 2 of section 14-120 of the election law, as added by
47 chapter 79 of the laws of 1992, is amended and a new subdivision 3 is
48 added to read as follows:
49 2. Notwithstanding subdivision one of this section, a partnership, as
50 defined in section ten of the partnership law, [may be considered a
51 separate entity for the purposes of this section, and as such] may make
52 contributions in the name of said partnership without attributing such
53 contributions to the individual members of the partnership provided that
54 any such contribution made by a partnership to a candidate or to a poli-
55 tical committee, shall not exceed[, twenty-five hundred dollars. In the
56 event that such partnership contribution to any such candidate or poli-
S. 8594 19
1 tical committee exceeds twenty-five hundred dollars, the aggregate
2 amount of such contribution shall be attributed to each partner whose
3 share of the contribution exceeds ninety-nine dollars] five thousand
4 dollars. Any partnership that is related to a corporation will have its
5 contributions aggregated with that related corporation for the purposes
6 of calculating the contributions given. Individuals may not establish a
7 partnership, as defined in section ten of the partnership law, for the
8 sole purpose of evading the contribution limits that would otherwise
9 apply to such individual.
10 3. Notwithstanding subdivision one of this section, every contribution
11 made by a limited liability company is considered to be a contribution
12 by the limited liability company as a whole. Individuals may not estab-
13 lish a limited liability company for the sole purpose of evading the
14 contribution limits that would otherwise apply to such individual.
15 § 23. Subdivision 3 of section 14-124 of the election law is REPEALED.
16 § 24. Section 14-126 of the election law, as amended by chapter 8 of
17 the laws of 1978, subdivision 1 as amended by chapter 128 of the laws of
18 1994 and subdivisions 2, 3 and 4 as redesignated by chapter 9 of the
19 laws of 1978, is amended to read as follows:
20 § 14-126. Violations; penalties. 1. Any person who fails to file a
21 statement required to be filed by this article shall be subject to a
22 civil penalty, not in excess of [five hundred] one thousand dollars, to
23 be recoverable in a special proceeding or civil action to be brought by
24 the state board of elections [or other board of elections] pursuant to
25 section 16-114 of this chapter.
26 2. Any person who, acting as or on behalf of a candidate or political
27 committee, under circumstances evincing an intent to violate such law,
28 unlawfully accepts a monetary contribution in excess of a contribution
29 limitation established in this article, shall be required to refund such
30 excess amount and shall be subject to a civil penalty equal to two times
31 the excess amount plus a fine of up to ten thousand dollars, to be
32 recoverable in a special proceeding or civil action to be brought by the
33 state board of elections pursuant to section 16-120 of this chapter.
34 3. Any person who, acting as or on behalf of a candidate or political
35 committee, under circumstances evincing an intent to violate such law,
36 unlawfully (a) expends campaign funds for a personal use in violation of
37 this article, or (b) conducts activities prohibited by this article,
38 shall be subject to a civil penalty, not in excess of ten thousand
39 dollars, to be recoverable in a special proceeding or civil action to be
40 brought by the state board of elections pursuant to section 16-120 of
41 this chapter.
42 4. Any person who knowingly and willfully fails to file a statement
43 required to be filed by this article within ten days after the date
44 provided for filing such statement or any person who knowingly and will-
45 fully violates any other provision of this article shall be guilty of a
46 misdemeanor.
47 [3.] 5. Any person who knowingly and willfully contributes, accepts or
48 aids or participates in the acceptance of a contribution in an amount
49 exceeding an applicable maximum specified in this article shall be guil-
50 ty of a misdemeanor.
51 [4.] 6. Any person who shall, acting on behalf of a candidate or poli-
52 tical committee, knowingly and willfully solicit, organize or coordinate
53 the formation of activities of one or more unauthorized committees, make
54 expenditures in connection with the nomination for election or election
55 of any candidate, or solicit any person to make any such expenditures,
S. 8594 20
1 for the purpose of evading the contribution limitations of this article,
2 shall be guilty of a class E felony.
3 7. Any person who, under circumstances evincing an intent to violate
4 this article, establishes a partnership for the sole purpose of evading
5 the contribution limits that would otherwise apply to that individual in
6 violation of subdivision two of section 14-120 of this article shall be
7 subject to a civil penalty equal to two times the amount contributed by
8 the partnership in excess of the contribution limits that would other-
9 wise apply to that individual plus a fine of up to ten thousand dollars,
10 to be recoverable in a special proceeding or civil action to be brought
11 by the state board of elections pursuant to section 16-120 of this chap-
12 ter.
13 8. Any person who, under circumstances evincing an intent to violate
14 this article, establishes a limited liability company for the sole
15 purpose of evading the contribution limits that would otherwise apply to
16 that individual in violation of subdivision three of section 14-120 of
17 this article shall be subject to a civil penalty equal to two times the
18 amount contributed by the limited liability company in excess of the
19 contribution limits that would otherwise apply to that individual plus a
20 fine of up to ten thousand dollars, to be recoverable in a special
21 proceeding or civil action to be brought by the state board of elections
22 pursuant to section 16-120 of this chapter.
23 § 25. Section 14-130 of the election law, as added by chapter 152 of
24 the laws of 1985, is amended to read as follows:
25 § 14-130. Campaign funds for personal use. 1. Contributions received
26 by a candidate or a political committee may be expended for any lawful
27 purpose that is directly related to promoting the nomination or election
28 of a candidate. Such funds shall not be converted by any person to a
29 personal use [which is unrelated to a political campaign or the holding
30 of a public office or party position].
31 2. No contribution shall be used to pay interest or any other finance
32 charges upon monies loaned to the campaign by such candidate or the
33 spouse of such candidate.
34 3. No contribution shall be used to pay attorney's fees or any costs
35 of defending against civil or criminal investigation or prosecution for
36 alleged violations of state or federal law committed while holding
37 public office or being a candidate for such office.
38 4. (a) As used in this section, expenditures for "personal use" are
39 defined as expenditures that:
40 (i) are for the personal benefit of the candidate or any other indi-
41 vidual;
42 (ii) defray normal living expenses of the candidate, immediate family
43 of the candidate or any other individual;
44 (iii) are used to fulfill any commitment, obligation or expense of a
45 person that would exist irrespective of the candidate's election
46 campaign including, but not limited to, any expense incurred more than
47 thirty days after the candidate ceases to be a candidate; or
48 (iv) are put to any use for which the candidate would be required to
49 treat the amount of the expenditure as gross income under section 61 of
50 the Internal Revenue Code, or any subsequent corresponding section of
51 the Internal Revenue Code.
52 (b) Expenditures for personal use shall include, but are not limited
53 to, expenses for the following:
54 (i) any residential or household items, supplies or expenditures,
55 including mortgage, rent or utility payments for any part of any
56 personal residence of a candidate or officeholder or a member of the
S. 8594 21
1 candidate's or officeholder's family. In the event that any property or
2 building is used for both personal and campaign use, personal use shall
3 constitute expenses relating to that property or building incurred more
4 than thirty days after the candidate ceases to be a candidate or that
5 exceed the pro-rated amount for such expenses based on fair-market
6 value.
7 (ii) mortgage, rent or utility payments for any part of any non-resi-
8 dential property that is owned by a candidate or officeholder or a
9 member of a candidate's or officeholder's family and used for campaign
10 purposes, to the extent the payments exceed the fair market value of the
11 property usage;
12 (iii) funeral, cremation or burial expenses, including any expenses
13 related to a death within a candidate's or officeholder's family;
14 (iv) clothing, or other than items of de minimis value that are used
15 in the campaign;
16 (v) tuition payments;
17 (vi) childcare costs;
18 (vii) dues, fees or gratuities at a country club, health club, recre-
19 ational facility or other nonpolitical organization, unless they are
20 part of a specific fundraising event that takes place on the organiza-
21 tion's premises;
22 (viii) salary payments to any person whose services are not solely for
23 campaign purposes;
24 (ix) salary payments to a member of a candidate's family, unless the
25 family member is providing bona fide services to the campaign. If a
26 family member provides bona fide services to a campaign, any salary
27 payments in excess of the fair market value of the services provided
28 shall be considered payments for personal use;
29 (x) admission to a sporting event, concert, theater or other form of
30 entertainment, unless part of a specific campaign or officeholder activ-
31 ity;
32 (xi) payment of any fines, fees or penalties assessed pursuant to this
33 chapter;
34 (xii) automobile purchases;
35 (xiii) automobile leases;
36 (xiv) travel expenses, unless used solely for campaign purposes. If a
37 candidate uses campaign funds to pay expenses associated with travel
38 that involves both personal activities and campaign activities, the
39 incremental expenses that result from the personal activities shall be
40 considered for personal use unless the person or persons benefiting from
41 the use reimburses the campaign account within thirty days for the full
42 amount of the incremental expenses; and
43 (xv) any other expenditures designated by the state ethics commission
44 as constituting personal use.
45 5. Nothing in this section shall prohibit a candidate from purchasing
46 equipment or property from his personal funds and leasing or renting
47 such equipment or property to a committee working directly or indirectly
48 with him to aid or participate in his nomination or election, including
49 an exploratory committee; provided that the candidate and his campaign
50 treasurer sign a written lease or rental agreement. Such agreement shall
51 include the lease or rental price, which shall not exceed the fair lease
52 or rental value of the equipment. The candidate shall not receive lease
53 or rental payments which, in the aggregate, exceed the cost of purchas-
54 ing the equipment or property.
55 § 26. The election law is amended by adding a new section 14-132 to
56 read as follows:
S. 8594 22
1 § 14-132. Disposition of campaign funds. 1. A political committee
2 aiding or taking part in the election or nomination of any candidate,
3 other than by making contributions, authorized by a candidate, must
4 dispose of all campaign funds and close within six months after the
5 later of (a) the end of the individual's most recent term of office, or
6 (b) the date of the election in which the individual last was a filed
7 candidate.
8 2. Notwithstanding the provisions of subdivision one of this section,
9 a committee disavowed pursuant to section 14-112 of this article shall
10 dispose of all campaign funds no later than December thirty-first, two
11 thousand eight.
12 3. Any candidate committee required to dispose of funds pursuant to
13 this section shall, at the option of the candidate, dispose of such
14 funds by any of the following means, or any combination thereof:
15 (a) returning, pro rata, to each contributor the funds that have not
16 been spent or obligated;
17 (b) donating the funds to a charitable organization or organizations
18 that meet the qualifications of section 501(c)(3) of the Internal Reven-
19 ue Code;
20 (c) donating the funds to the state university of New York;
21 (d) donating the funds to the state's general fund;
22 (e) transferring the funds to a political party committee registered
23 with the state board of elections; or
24 (f) contributing the funds to a candidate or political committee such
25 that this does not exceed the limits set forth in section 14-114 of this
26 article.
27 4. No political committee shall dispose of campaign funds by making
28 expenditures for personal use as defined in section 14-130 of this arti-
29 cle.
30 5. Upon the death of a candidate, former candidate or holder of elec-
31 tive office, who received campaign contributions, all contributions
32 shall be disposed of according to this section within twelve months of
33 the death of the candidate.
34 § 27. Section 16-100 of the election law is amended to read as
35 follows:
36 § 16-100. Jurisdiction; supreme court, county court. 1. The supreme
37 court is vested with jurisdiction to summarily determine any question of
38 law or fact arising as to any subject set forth in this article, which
39 shall be construed liberally.
40 2. The county court is vested with jurisdiction to summarily determine
41 any question of law or fact except proceedings as to a nomination or
42 election at a primary election or a nomination at a judicial convention,
43 proceedings as to the casting and canvass of ballots [and], proceedings
44 for examination or preservation of ballots and proceedings to enforce
45 the provisions of article fourteen of this chapter as provided in
46 section 16-120 of this article.
47 § 28. Subdivision 4 of section 16-114 of the election law, as redesig-
48 nated by chapter 9 of the laws of 1978, is amended to read as follows:
49 4. In every proceeding instituted under this section, except a
50 proceeding to compel the filing of a statement by a candidate for nomi-
51 nation to a public office at a primary election or for election thereto,
52 or by the treasurer of a political committee, who has failed to file any
53 statement, the petitioner or petitioners, upon the institution of the
54 proceeding shall file with the county clerk an undertaking in a sum to
55 be determined and with sureties to be approved by a justice of the
56 supreme court conditioned to pay any costs imposed against him or her or
S. 8594 23
1 them; provided, however, that no such undertaking shall be required in a
2 proceeding instituted by the state or other board of elections.
3 § 29. The election law is amended by adding a new section 16-120 to
4 read as follows:
5 § 16-120. Enforcement proceedings. 1. The supreme court or a justice
6 thereof, in a proceeding instituted by the state board of elections, may
7 impose a civil penalty, as provided for in subdivisions two and three of
8 section 14-126 of this chapter, upon any person who, acting as or on
9 behalf of a candidate or political committee under circumstances evinc-
10 ing an intent to violate such law, has unlawfully (a) accepted a mone-
11 tary contribution in excess of a contribution limitation established in
12 article fourteen of this chapter, (b) expended campaign funds for a
13 personal use in violation of this article or (c) in the case of a poli-
14 tical committee, conducted activities prohibited by article fourteen of
15 this chapter.
16 2. Upon proof that a violation of article fourteen, as provided in
17 subdivision one of this section, has occurred, the court may impose a
18 civil penalty, pursuant to subdivisions two and three of section 14-126
19 of this chapter, after considering, among other factors, the severity of
20 the violation or violations, whether the subject of the violation made a
21 good faith effort to correct the violation and whether the subject of
22 the violation has a history of similar violations. All such determi-
23 nations shall be made on a fair and equitable basis without regard to
24 the status of the candidate or political committee.
25 § 30. Sections 1-u and 1-v of the legislative law are redesignated
26 sections 1-w and 1-x and two new sections 1-u and 1-v are added to read
27 as follows:
28 § 1-u. Restrictions on political contributions by lobbyists. A lobby-
29 ist shall not solicit, make or transmit a contribution or a request for
30 a contribution from or to any person, including a political committee
31 for the benefit of a public official or party committee, for election to
32 any state or municipal corporation office; except that a lobbyist may
33 make a political contribution up to two hundred fifty dollars per candi-
34 date per election.
35 § 1-v. Restrictions on acceptance of political contributions by public
36 officials. A public official shall not knowingly accept, solicit, or
37 transmit a contribution or a request for a contribution for himself or
38 herself or any public official, political committee, or candidate from
39 or on behalf of any lobbyist regulated by this article, except that a
40 public official may accept political contributions from a lobbyist, up
41 to two hundred fifty dollars per election.
42 § 31. The legislative law is amended by adding a new article 1-B to
43 read as follows:
44 ARTICLE 1-B
45 PARTICIPATION IN FUNDRAISERS DURING
46 A LEGISLATIVE SESSION
47 Section 1-aa. Definitions.
48 1-bb. Participation in fundraisers during a legislative session.
49 § 1-aa. Definitions. As used in this article, the following terms
50 shall have the following meanings:
51 1. "Fundraiser" shall mean an event or function at which or in
52 connection with funds are solicited for or on behalf of (a) a governor,
53 lieutenant governor, comptroller, attorney general, member or members of
54 the state legislature, or a candidate for any of the foregoing offices;
55 (b) a political committee organized to support or oppose the election of
56 any such person or persons; (c) a state committee or a subcommittee of
S. 8594 24
1 such state committee, provided that the term "fundraiser" when applied
2 to an event or function held by a state committee or subcommittee there-
3 of shall not include an event or function at which funds are raised
4 exclusively to support or oppose a candidate or candidates for federal
5 elective office, or a political committee authorized by such a candidate
6 or candidates, where such funds are not used for any other purpose; or
7 (d) any lobbyist or client political committee, where such an event or
8 function is held for the explicit purpose of raising funds for or on
9 behalf of any of the foregoing entities.
10 2. "Lobbyist or client political committee" shall mean a political
11 committee organized to support the activities of a lobbyist or client
12 provided, however, that the term "lobbyist or client political commit-
13 tee" as used in this article, shall not include a fundraising event or
14 function hosted by such a committee to raise funds for the committee's
15 general use where such an event or function is not targeted to benefit
16 any of the specific persons or entities described in subdivision one of
17 this section.
18 3. The term "legislative session" shall mean the period beginning on
19 the Wednesday succeeding the first Monday of January and ending on the
20 later of (a) the thirtieth day of June or (b) two weeks after the day on
21 which the legislature has taken final action on all of the appropriation
22 bills submitted by the governor pursuant to article seven of the state
23 constitution, thereby enacting a state budget that provided sufficient
24 appropriation authority for the ongoing operation and support of state
25 government and local assistance for the ensuing fiscal year.
26 § 1-bb. Participation in fundraisers during a legislative session. 1.
27 Except as otherwise provided in this section, no person or entity shall
28 hold, participate in, contribute to, purchase a ticket for, or attend
29 any fundraiser within forty miles of the New York state capitol during
30 the legislative session.
31 2. This section shall not apply to fundraisers within the district of
32 members of the legislature or candidates therefor whose districts are
33 located in whole or in part within forty miles of the New York state
34 capitol, provided, however that such fundraisers shall be solely for the
35 benefit of the legislator or the candidate or the authorized political
36 committee of such legislator or candidate and no other elected official,
37 political committee or candidate for elected office; and further
38 provided that such fundraisers shall not be held on any day when a
39 quorum of either house of the legislature is in attendance of a session
40 of their respective house.
41 § 32. Severability clause. If any clause, sentence, paragraph, subdi-
42 vision, section or part of this act shall be adjudged by any court of
43 competent jurisdiction to be invalid, such judgment shall not affect,
44 impair or invalidate the remainder thereof, but shall be confined in its
45 operation to the clause, sentence, paragraph, subdivision, section or
46 part thereof directly involved in the controversy in which such judgment
47 shall have been rendered. It is hereby declared to be the intent of the
48 legislature that this act would have been enacted even if such invalid
49 provisions had not been included herein.
50 § 33. This act shall take effect on the sixtieth day after it shall
51 have become a law; provided, however, that all amendments to article 14
52 of the election law made by this act, which establish new contribution
53 limits, shall take effect January 1, 2009; provided, further, that
54 contributions legally received prior to the effective date of this act
55 may be retained and expended for lawful purposes and shall not provide
56 the basis for a violation of article 14 of the election law, as amended
S. 8594 25
1 by this act; and provided, further, that the state board of elections
2 shall notify all candidates and political committees of the applicable
3 provisions of this act within thirty days after this act shall have
4 become a law.
