Bill Text: NY A05841 | 2017-2018 | General Assembly | Amended
Bill Title: Relates to matching financing; relates to the New York state campaign finance fund and the abandoned property fund.
Spectrum: Moderate Partisan Bill (Democrat 9-1)
Status: (Introduced - Dead) 2018-04-09 - print number 5841a [A05841 Detail]
Download: New_York-2017-A05841-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5841--A 2017-2018 Regular Sessions IN ASSEMBLY February 16, 2017 ___________ Introduced by M. of A. ABINANTI, GALEF, JAFFEE, COLTON, MONTESANO, SIMON, THIELE, GOTTFRIED, STECK -- read once and referred to the Committee on Election Law -- recommitted to the Committee on Election Law in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the election law, in relation to statements of campaign receipts, contributions, transfers and expenditures to and by poli- tical committees; to amend the election law, in relation to establish- ing a contribution limit for certain contributions to a party commit- tee or constituted committee; to amend the election law, in relation to public financing; to amend the state finance law, in relation to the New York state campaign finance fund; to amend the tax law, in relation to the New York state campaign finance fund check-off; to amend the election law, in relation to enforcement proceedings; and providing for the repeal of such provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1 of section 14-102 of the election law, as 2 amended by chapter 8 and as redesignated by chapter 9 of the laws of 3 1978, is amended to read as follows: 4 1. The treasurer of every political committee which, or any officer, 5 member or agent of any such committee who, in connection with any 6 election, receives or expends any money or other valuable thing or 7 incurs any liability to pay money or its equivalent shall file state- 8 ments sworn, or subscribed and bearing a form notice that false state- 9 ments made therein are punishable as a class A misdemeanor pursuant to 10 section 210.45 of the penal law, at the times prescribed by this [arti-11cle] title setting forth all the receipts, contributions to and the 12 expenditures by and liabilities of the committee, and of its officers, 13 members and agents in its behalf. Such statements shall include the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08884-03-8A. 5841--A 2 1 dollar amount of any receipt, contribution or transfer, or the fair 2 market value of any receipt, contribution or transfer, which is other 3 than of money, the name and address of the transferor, contributor, or 4 person from whom received, and if the transferor, contributor or person 5 is a political committee; the name of and the political unit represented 6 by the committee, the date of its receipt, the dollar amount of every 7 expenditure, the name and address of the person to whom it was made or 8 the name of and the political unit represented by the committee to which 9 it was made and the date thereof, and shall state clearly the purpose of 10 such expenditure. Any statement reporting a loan shall have attached to 11 it a copy of the evidence of indebtedness. Expenditures in sums under 12 fifty dollars need not be specifically accounted for by separate items 13 in said statements, and receipts and contributions aggregating not more 14 than ninety-nine dollars, from any one contributor need not be specif- 15 ically accounted for by separate items in said statements, provided 16 however, that such expenditures, receipts and contributions shall be 17 subject to the other provisions of section 14-118 of this [article] 18 title. 19 § 2. The article heading of article 14 of the election law is amended 20 to read as follows: 21 [Campaign Receipts and Expenditures] 22 CAMPAIGN RECEIPTS AND EXPENDITURES; 23 PUBLIC FINANCING 24 § 3. Paragraph b of subdivision 1 of section 14-114 of the election 25 law, as amended by chapter 659 of the laws of 1994, is amended and a new 26 paragraph d is added to read as follows: 27 b. In any other election for party position or for election to a 28 public office or for nomination for any such office, no contributor may 29 make a contribution to any candidate or political committee and no such 30 candidate or political committee may accept any contribution from any 31 contributor, which is in the aggregate amount greater than: (i) in the 32 case of any election for party position, or for nomination to public 33 office, the product of the total number of enrolled voters in the candi- 34 date's party in the district in which he is a candidate, excluding 35 voters in inactive status, multiplied by $.05, and (ii) in the case of 36 any election for a public office, the product of the total number of 37 registered voters in the district, excluding voters in inactive status, 38 multiplied by $.05, except in the case of a candidate for supreme court 39 justice or district attorney not participating in the state's judicial 40 public campaign financing system defined in title two of this article, 41 multiplied by $.03 and in the case of a candidate for supreme court 42 justice or district attorney participating in the state's judicial 43 public campaign financing system defined in title two of this article, 44 multiplied by $.01, however in the case of a nomination within the city 45 of New York for the office of mayor, public advocate or comptroller, 46 such amount shall be not less than four thousand dollars nor more than 47 twelve thousand dollars as increased or decreased by the cost of living 48 adjustment described in paragraph c of this subdivision; in the case of 49 an election within the city of New York for the office of mayor, public 50 advocate or comptroller, twenty-five thousand dollars as increased or 51 decreased by the cost of living adjustment described in paragraph c of 52 this subdivision; in the case of a nomination for state senator, four 53 thousand dollars as increased or decreased by the cost of living adjust- 54 ment described in paragraph c of this subdivision; in the case of an 55 election for state senator, six thousand two hundred fifty dollars as 56 increased or decreased by the cost of living adjustment described inA. 5841--A 3 1 paragraph c of this subdivision; in the case of an election or nomi- 2 nation for a member of the assembly, twenty-five hundred dollars as 3 increased or decreased by the cost of living adjustment described in 4 paragraph c of this subdivision; but in no event shall any such maximum 5 exceed fifty thousand dollars or be less than one thousand dollars; 6 provided however, that the maximum amount which may be so contributed or 7 accepted, in the aggregate, from any candidate's child, parent, grand- 8 parent, brother and sister, and the spouse of any such persons, shall 9 not exceed in the case of any election for party position or nomination 10 for public office an amount equivalent to the number of enrolled voters 11 in the candidate's party in the district in which he is a candidate, 12 excluding voters in inactive status, multiplied by $.25 and in the case 13 of any election to public office, an amount equivalent to the number of 14 registered voters in the district, excluding voters in inactive status, 15 multiplied by $.25; or twelve hundred fifty dollars, whichever is great- 16 er, or in the case of a nomination or election of a state senator, twen- 17 ty thousand dollars, whichever is greater, or in the case of a nomi- 18 nation or election of a member of the assembly twelve thousand five 19 hundred dollars, whichever is greater, but in no event shall any such 20 maximum exceed one hundred thousand dollars. 21 d. Notwithstanding any other contribution limit in this section, 22 participating candidates as defined in subdivision fourteen of section 23 14-201 of this article may contribute, out of their own money, three 24 times the applicable contribution limit for non-participating candidates 25 to their own authorized political committee. 26 § 4. Sections 14-100 through 14-132 of the election law are designated 27 title I and a new title heading is added to read as follows: 28 CAMPAIGN RECEIPTS AND EXPENDITURES 29 § 5. Article 14 of the election law is amended by adding a new title 30 II to read as follows: 31 TITLE II 32 PUBLIC FINANCING 33 Section 14-200. Legislative findings and intent. 34 14-201. Definitions. 35 14-202. Reporting requirements. 36 14-203. Contributions. 37 14-204. Proof of compliance. 38 14-205. Eligibility. 39 14-206. Limits on public financing. 40 14-207. Payment of public matching funds. 41 14-208. Use of public matching funds; qualified campaign expend- 42 itures. 43 14-209. Powers and duties of the board. 44 14-210. Audits and repayments. 45 14-211. Enforcement and penalties for violations and other 46 proceedings. 47 14-212. Reports. 48 14-213. Severability. 49 § 14-200. Legislative findings and intent. The legislature finds and 50 determines that the judiciary and prosecutors for the state fulfill a 51 unique role in government, substantively distinct from non-judicial and 52 prosecutorial offices.A. 5841--A 4 1 The legislature also finds and determines that justices and district 2 attorneys are not elected to represent the views of voters, but rather 3 are elected to uphold the law. 4 The legislature additionally finds and determines that judicial and 5 prosecutorial impartiality and independence are critical to maintaining 6 public confidence and the rule of law. 7 The legislature additionally finds and determines that judges and 8 district attorneys must maintain impartiality and independence and the 9 appearance of impartiality and independence, unlike non-judicial or 10 prosecutorial offices. 11 The legislature additionally finds and determines that the rules of 12 judicial conduct and the rules of prosecutorial conduct recognize the 13 distinct nature of the judicial branch and responsibilities of prosecu- 14 tors, in contrast to the legislative and executive branches, by 15 restricting judges and justices from engaging in various campaign-relat- 16 ed political activity not imposed on non-judicial offices. 17 The legislature additionally finds and determines that many state and 18 federal judicial offices are not elected, but rather appointed posi- 19 tions, due to the nonpolitical nature of the office. 20 The legislature additionally finds and determines that raising the 21 funds necessary to run for the office of the supreme court, in a manner 22 that comports with judicial rules of conduct, further distinguishes the 23 office of supreme court from other elective offices and would be appro- 24 priate to apply to the office of district attorney. 25 The legislature additionally finds and determines that raising the 26 necessary funds to run for the office of the supreme court or district 27 attorney has the potential to reduce the appearance of judicial or 28 prosecutorial impartiality and the confidence of those appearing before 29 the court. 30 The legislature additionally finds and determines that the heightened 31 restrictions imposed on judicial candidates, and appropriate for candi- 32 dates for district attorney, necessary to maintain impartiality, are 33 furthered by a judicial and prosecutorial public campaign finance 34 system. 35 The legislature additionally finds and determines that a judicial and 36 prosecutorial public campaign finance system for candidates for the 37 office of supreme court justice and district attorney reduces the poten- 38 tial for judicial or prosecutorial partiality or the appearance of judi- 39 cial or prosecutorial partiality of those appearing before the court. 40 § 14-201. Definitions. For the purposes of this title, the following 41 terms shall have the following meanings: 42 1. The term "authorized political committee" shall mean the single 43 political committee designated by a candidate pursuant to section 14-202 44 of this title to receive contributions and make expenditures in support 45 of the candidate's campaign. 46 2. The term "board" shall mean the state board of elections. 47 3. The term "contribution" shall have the same meaning as appears in 48 subdivision nine of section 14-100 of this article. 49 4. The term "contributor" shall mean any person or entity that makes a 50 contribution. 51 5. The term "covered election" shall mean any general election for the 52 office of supreme court justice or district attorney. 53 6. The term "election cycle" shall mean the window period defined in 54 22 NYCRR Part 100 for the office of supreme court justice and, for the 55 office of district attorney, any primary or general election for nomi- 56 nation for election or election, to the office of district attorney.A. 5841--A 5 1 7. The term "expenditure" shall mean any gift, subscription, advance, 2 payment, or deposit of money or anything of value, or a contract to make 3 any gift, subscription, payment, or deposit of money or anything of 4 value, made in connection with the nomination for election, or election, 5 of any candidate. Expenditures made by contract are deemed made when 6 such funds are obligated. 7 8. The term "fund" shall mean the New York state judicial campaign 8 finance fund or the district attorney campaign fund. 9 9. The term "immediate family" shall mean a spouse, domestic partner, 10 child, sibling or parent. 11 10. The term "intermediary" shall mean an individual, corporation, 12 partnership, political committee, employee organization or other entity 13 which bundles, causes to be delivered or otherwise delivers any contrib- 14 ution from another person or entity to a candidate's authorized poli- 15 tical committee, other than in the regular course of business as a 16 postal, delivery or messenger service. Provided, however, that an 17 "intermediary" shall not include spouses, domestic partners, parents, 18 children or siblings of the person making such contribution or a staff 19 member or volunteer of the campaign identified in writing to the state 20 board of elections. 21 11. The term "item with significant intrinsic and enduring value" 22 shall mean any item, including tickets to an event, that are valued at 23 twenty-five dollars or more. 24 12. (a) The term "matchable contribution" shall mean a lawful contrib- 25 ution, contributions or a portion of a contribution or contributions for 26 any covered elections held in the same election cycle, made by a natural 27 person and resident of the district in which the office is to be filled 28 to a participating candidate's authorized political committee, that has 29 been reported in full to the board in accordance with sections 14-102 30 and 14-104 of this article by the candidate's authorized political 31 committee and has been contributed on or before the day of the applica- 32 ble general election. Any contribution, contributions, or a portion of a 33 contribution determined to be invalid for matching funds by the board 34 may not be treated as a matchable contribution for any purpose. 35 (b) The following contributions are not matchable: 36 (i) loans; 37 (ii) in-kind contributions of property, goods, or services; 38 (iii) contributions in the form of the purchase price paid for an item 39 with significant intrinsic and enduring value; 40 (iv) transfers from a party or constituted committee; 41 (v) contributions whose source is not itemized as required by section 42 14-202 of this title; 43 (vi) contributions gathered during a previous election cycle; 44 (vii) illegal contributions; 45 (viii) contributions from minors; 46 (ix) contributions from vendors for campaigns; and 47 (x) contributions from lobbyists registered pursuant to subdivision 48 (a) of section one-c of the legislative law. 49 13. The term "nonparticipating candidate" shall mean a candidate for a 50 covered election who does not file a written certification in the form 51 of an affidavit under section 14-205 of this title by the applicable 52 deadline. 53 14. The term "participating candidate" shall mean any candidate for 54 election to the office of supreme court justice or district attorney, 55 who files a written certification in the form of an affidavit pursuant 56 to section 14-205 of this title.A. 5841--A 6 1 15. The term "post-election period" shall mean the six months follow- 2 ing an election. 3 16. The term "qualified campaign expenditure" shall mean an expendi- 4 ture for which public matching funds may be used. 5 17. The term "threshold for eligibility" shall mean the amount of 6 matchable contributions that a candidate's authorized political commit- 7 tee must receive in total in order for such candidate to qualify for 8 voluntary public financing under this title. 9 18. The term "transfer" shall mean any exchange of funds between a 10 party or constituted committee and a candidate or any of his or her 11 authorized political committees. 12 § 14-202. Reporting requirements. 1. Political committee registra- 13 tion. Political committees as defined pursuant to subdivision one of 14 section 14-100 of this article shall register with the board before 15 making any contribution or expenditure. The board shall publish a cumu- 16 lative list of political committees that have registered, including on 17 its webpage, and regularly update it. 18 2. Only one authorized political committee per candidate per elective 19 office sought. Before receiving any contribution or making any expendi- 20 ture for a covered election, each candidate shall notify the board as to 21 the existence of his or her authorized political committee that has been 22 approved by such candidate. Each candidate shall have one and only one 23 authorized political committee per elective office sought. Each author- 24 ized political committee shall have a treasurer and is subject to the 25 restrictions found in section 14-112 of this article. 26 3. (a) Detailed reporting. In addition to each authorized political 27 committee reporting to the board every contribution and loan received 28 and every expenditure made in the time and manner prescribed by sections 29 14-102, 14-104 and 14-108 of this article, each authorized political 30 committee of a candidate intending to participate in the judicial public 31 financing system shall also submit disclosure reports on March fifteenth 32 and May fifteenth of each election year reporting to the board every 33 contribution and loan received and every expenditure made. For contrib- 34 utors who make contributions of five hundred dollars or more, each 35 authorized political committee shall report to the board the occupation, 36 and employer of each contributor, lender, and intermediary. The board 37 shall revise, prepare and post forms on its webpage that facilitate 38 compliance with the requirements of this section. 39 (b) Board review. The board shall review each disclosure report filed 40 and shall inform the treasurer of the authorized political committee of 41 relevant questions it has concerning: (i) compliance with requirements 42 of this title and of the rules issued by the board; and (ii) qualifica- 43 tion for receiving public matching funds pursuant to this title. In the 44 course of this review, it shall give authorized political committees an 45 opportunity to respond to and correct potential violations and give 46 candidates an opportunity to address questions it has concerning their 47 matchable contribution claims or other issues concerning eligibility for 48 receiving public matching funds pursuant to this title. Upon completion 49 of the compliance review, nothing in this paragraph shall preclude the 50 chief enforcement counsel from subsequently reviewing such disclosure 51 reports and taking any action otherwise authorized under this title. 52 (c) Itemization. Contributions that are not itemized in reports filed 53 with the board shall not be matchable. 54 (d) Option to file more frequently. Participating candidates may file 55 reports of contributions as frequently as once a week on Monday so that 56 their matching funds may be paid at the earliest allowable date.A. 5841--A 7 1 § 14-203. Contributions. Recipients of funds pursuant to this title 2 shall be subject to the applicable contribution limits set forth in 3 section 14-114 of this article. 4 § 14-204. Proof of compliance. Authorized political committees shall 5 maintain such records of receipts and expenditures for a covered 6 election as required by the board. The treasurer of an authorized poli- 7 tical committee shall obtain and furnish to the board any information it 8 may request relating to financial transactions or contributions and 9 furnish such documentation and other proof of compliance with this title 10 as may be requested. In compliance with section 14-108 of this article, 11 authorized political committees shall maintain copies of such records 12 for a period of five years. 13 § 14-205. Eligibility. 1. Terms and conditions. To be eligible for 14 voluntary public financing under this title, a candidate must: 15 (a) be a candidate in a covered election; 16 (b) meet all the requirements of law to have his or her name on the 17 ballot; 18 (c) in the case of a covered election, be opposed by another candidate 19 on the ballot who is not a write-in candidate; 20 (d) submit a certification in the form of an affidavit, in such form 21 as may be prescribed by the board, that sets forth his or her acceptance 22 of and agreement to comply with the terms and conditions for the 23 provision of such funds in each covered election and such certification 24 shall be submitted at least four months before the election but no 25 earlier than nine months before the nomination pursuant to a schedule 26 promulgated by the board; 27 (e) be certified as a participating candidate by the board; 28 (f) not make, and not have made, expenditures from or use his or her 29 personal funds or property or the personal funds or property jointly 30 held with his or her spouse, or unemancipated children in connection 31 with his or her election to a covered office, but may make a contrib- 32 ution to his or her authorized political committee in an amount that 33 does not exceed three times the applicable contribution limit from an 34 individual contributor to non-participating candidates for the office 35 that he or she is seeking; 36 (g) meet the threshold for eligibility set forth in subdivision two of 37 this section; 38 (h) continue to abide by all requirements during the post-election 39 period; 40 (i) not have accepted contributions in amounts exceeding the contrib- 41 ution limits set forth for participating candidates in paragraph b of 42 subdivision one of section 14-114 of this article during the election 43 cycle for which the candidate seeks certification; 44 (i) Provided however, that, if a candidate accepted contributions 45 exceeding such limits before certification, such acceptance shall not 46 prevent the candidate from being certified by the board if the candidate 47 immediately pays to the fund or returns to the contributor the portion 48 of any contribution that exceeded the applicable contribution limit. 49 (ii) If the candidate is unable to return such funds immediately 50 because they have already been spent, acceptance of contributions 51 exceeding the limits shall not prevent the candidate from being certi- 52 fied by the board if the candidate submits an affidavit agreeing to pay 53 to the fund from non-public funds all portions of any contributions that 54 exceeded the limit no later than thirty days before the general 55 election. If a candidate provides the board with such an affidavit, any 56 disbursement of public funds to the candidate made under section 14-207A. 5841--A 8 1 of this title shall be reduced by no more than twenty-five percent until 2 the total amount owed by the candidate is repaid. 3 (iii) Contributions received and expenditures made by the candidate's 4 authorized political committee prior to the effective date of this title 5 shall not constitute a violation of this title; and 6 (j) comply with the rules governing judicial conduct pursuant to 22 7 NYCRR Part 100 and the rules governing prosecutorial conduct pursuant to 8 Rule 3.8 of Part 1200, Rules of Professional Conduct of the New York 9 State Unified Court System, as applicable. 10 2. Threshold for eligibility. The threshold for eligibility for public 11 funding for participating candidates shall be not less than ten thousand 12 dollars in matchable contributions including at least one hundred match- 13 able contributions comprised of sums between ten and two hundred fifty 14 dollars per contributor, from residents of the district in which the 15 office is to be filled. 16 § 14-206. Limits on public financing. In any general election, 17 receipt of public funds by a participating candidate's authorized poli- 18 tical committee shall not exceed the sum of one hundred fifty thousand 19 dollars. 20 § 14-207. Payment of public matching funds. 1. Determination of eligi- 21 bility. No public matching funds shall be paid to an authorized poli- 22 tical committee unless the board determines that the participating 23 candidate has met the eligibility requirements of this title. Payment 24 shall not exceed the amounts specified in subdivision two of this 25 section, and shall be made only in accordance with the provisions of 26 this title. Such payment may be made only to the participating candi- 27 date's authorized political committee. No public matching funds shall be 28 used except as reimbursement or payment for qualified campaign expendi- 29 tures actually and lawfully incurred or to repay loans used to pay qual- 30 ified campaign expenditures. 31 2. Calculation of payment. If the threshold for eligibility is met, 32 the participating candidate's authorized political committee shall 33 receive payment for qualified campaign expenditures of two dollars of 34 public matching funds for each one dollar of matchable contributions, 35 for the first two hundred fifty dollars of eligible private funds per 36 contributor, obtained and reported to the board in accordance with the 37 provisions of this title. The maximum payment of public matching funds 38 shall be limited to the amounts set forth in section 14-206 of this 39 title for the covered election. 40 3. Timing of payment. The board shall make any payment of public 41 matching funds to participating candidate's authorized political commit- 42 tees as soon as is practicable. But in all cases, it shall verify eligi- 43 bility for public matching funds within four business days, excluding 44 weekends and holidays, of receiving a campaign contribution report filed 45 in compliance with section 14-104 of this article. Within two business 46 days of determining that a candidate for a covered office is eligible 47 for public matching funds, it shall authorize payment of the applicable 48 matching funds owed to the candidate. However, it shall not make any 49 payments of public money earlier than the earliest dates for making such 50 payments as provided by this title. If any of such payments would 51 require payment on a weekend or federal holiday, payment shall be made 52 on the next business day. 53 4. Electronic funds transfer. The board shall, in consultation with 54 the office of the comptroller, promulgate rules to facilitate electronic 55 funds transfers directly from the campaign finance fund into an author- 56 ized committee's bank account.A. 5841--A 9 1 § 14-208. Use of public matching funds; qualified campaign expendi- 2 tures. 1. Public matching funds provided under the provisions of this 3 title may be used only by an authorized political committee for expendi- 4 tures to further the participating candidate's election, including 5 paying for debts incurred within nine months prior to a nomination to 6 further the participating candidate's election. 7 2. Such public matching funds may not be used for: 8 (a) an expenditure in violation of any law; 9 (b) an expenditure in excess of the fair market value of services, 10 materials, facilities or other things of value received in exchange; 11 (c) an expenditure made after the candidate has been finally disquali- 12 fied from the ballot and all judicial remedies have been exhausted; 13 (d) an expenditure made after the only remaining opponent of the 14 candidate has been finally disqualified from the general election ballot 15 and all judicial remedies have been exhausted; 16 (e) an expenditure made by cash payment; 17 (f) a contribution or loan or transfer made to or expenditure to 18 support another candidate or political committee or party, committee or 19 constituted committee; 20 (g) an expenditure to support or oppose a candidate for an office 21 other than that which the participating candidate seeks; 22 (h) gifts, except brochures, buttons, signs and other printed campaign 23 material; 24 (i) legal fees to defend against a criminal charge; 25 (j) payments to immediate family members of the participating candi- 26 date; 27 (k) any expenditure made to challenge the validity of any petition of 28 designation or nomination or any certificate of nomination, declination 29 or substitution; 30 (l) any impermissible personal use under section 14-130 of this arti- 31 cle; or 32 (m) any use which would violate the rules governing judicial conduct 33 pursuant to 22 NYCRR Part 100 or prosecutorial conduct pursuant to Rule 34 3.8 of Part 1200, Rules of Professional Conduct of the New York State 35 Unified Court System, as applicable. 36 § 14-209. Powers and duties of the board. 1. Advisory opinions. The 37 board shall render advisory opinions with respect to questions arising 38 under this title upon the written request of a candidate, an officer of 39 a political committee or member of the public, or upon its own initi- 40 ative. The board shall promulgate rules regarding reasonable times to 41 respond to such requests. The board shall make public the questions of 42 interpretation for which advisory opinions will be considered by the 43 board and its advisory opinions, including by publication on its webpage 44 with identifying information redacted as the board determines to be 45 appropriate. 46 2. Public information and candidate education. The board shall develop 47 a program for informing candidates and the public as to the purpose and 48 effect of the provisions of this title, including by means of a webpage. 49 The board shall prepare in plain language and make available educational 50 materials, including compliance manuals and summaries and explanations 51 of the purposes and provisions of this title. The board shall prepare or 52 have prepared and make available materials, including access to an elec- 53 tronic recordkeeping and filing system, to facilitate the task of 54 compliance with the disclosure and recordkeeping requirements of this 55 title.A. 5841--A 10 1 3. Rules and regulations. The board shall have the authority to 2 promulgate such rules and regulations and provide such forms as it deems 3 necessary for the administration of this title. 4 4. Database. The board shall develop an interactive, searchable 5 computer database that shall contain all information necessary for the 6 proper administration of this title including information on contrib- 7 utions to and expenditures by candidates and their authorized political 8 committee, independent expenditures in support or opposition of candi- 9 dates for covered offices, and distributions of moneys from the fund. 10 Such database shall be accessible to the public on the board's webpage 11 no later than June first, two thousand twenty. 12 § 14-210. Audits and repayments. 1. Audits. The board shall audit and 13 examine all matters relating to the proper administration of this title 14 and shall complete such audit no later than six months after the 15 election in question. Every candidate who receives public funds under 16 this title shall be audited by the board. The cost of complying with a 17 post-election audit shall be borne by the candidate's authorized poli- 18 tical committee using public funds, private funds or any combination of 19 such funds. The authorized political committee of a participating 20 candidate must maintain a reserve of three percent of the public funds 21 received to comply with the post-election audit. Any public reserve 22 funds not used shall be remitted to the New York state judicial campaign 23 finance fund. The board shall issue to each campaign audited a final 24 audit report that details its findings. 25 2. Repayments. (a) If the board determines that any portion of the 26 payment made to a candidate's authorized political committee from the 27 fund was in excess of the aggregate amount of payments that such candi- 28 date was eligible to receive pursuant to this title, it shall notify 29 such committee and such committee shall pay to the board an amount equal 30 to the amount of excess payments. Provided, however, that if the errone- 31 ous payment was the result of an error by the board, then the erroneous 32 payment will be deducted from any future payment, if any, and if no 33 payment is to be made then neither the candidate nor the committee shall 34 be liable to repay the excess amount to the board. The candidate, the 35 treasurer and the candidate's authorized political committee are jointly 36 and severally liable for any repayments to the board. 37 (b) If the board determines that any portion of the payment made to a 38 candidate's authorized political committee from the fund was used for 39 purposes other than qualified campaign expenditures and such expendi- 40 tures were not approved by the board, it shall notify such committee of 41 the amount so disqualified and such committee shall pay to the board an 42 amount equal to such disqualified amount. The candidate, the treasurer 43 and the candidate's authorized political committee are jointly and 44 severally liable for any repayments to the board. 45 (c) If the total of payments from the fund received by a participating 46 candidate's authorized political committee exceed the total campaign 47 expenditures of such candidate's authorized political committee, such 48 candidate's authorized political committee shall use such excess funds 49 to reimburse the fund for payments received by such authorized political 50 committee from the fund during such calendar year. Participating candi- 51 dates' authorized political committees shall pay to the board unspent 52 public campaign funds from an election not later than twenty-seven days 53 after all liabilities for the election have been paid and in any event, 54 not later than the day on which the board issues its final audit report 55 for the participating candidate's authorized political committee; 56 provided, however, that all unspent public campaign funds for a partic-A. 5841--A 11 1 ipating candidate shall be immediately due and payable to the board upon 2 a determination by the board that the participant has delayed the post- 3 election audit. A participating candidate's authorized political commit- 4 tee may make post-election expenditures with public funds only for 5 routine activities involving nominal cost associated with winding up a 6 campaign and responding to the post-election audit. Nothing in this 7 title shall be construed to prevent a candidate or his or her authorized 8 political committee from using campaign contributions received from 9 private contributors for otherwise lawful expenditures. 10 3. Rules and regulations. The board shall promulgate regulations for 11 the certification of the amount of funds payable by the comptroller, 12 from the fund established pursuant to section ninety-two-t of the state 13 finance law, to a participating candidate's authorized political commit- 14 tee that has qualified to receive such payment. These regulations shall 15 include the periods during which such reports must be filed and the 16 verification required, and the board shall develop forms on which 17 contributions and expenditures are to be reported. The board shall 18 institute procedures which will make possible payment by the fund within 19 four business days after receipt of the required forms and verifica- 20 tions. 21 § 14-211. Enforcement and penalties for violations and other 22 proceedings. 1. Civil penalties. Any person who, acting as or on behalf 23 of a candidate or such candidate's authorized political committee, 24 violates any provision of this title, under circumstances evincing an 25 intent to violate such provision, shall be subject to a civil penalty in 26 an amount not in excess of ten thousand dollars, to be recoverable in a 27 special proceeding or civil action to be brought by the chief enforce- 28 ment counsel pursuant to sections 3-104 and 3-104-a of this chapter. 29 2. Criminal conduct. Any person who knowingly and willfully furnishes 30 or submits false statements or information to the board in connection 31 with its administration of this title, shall be guilty of a misdemeanor 32 in addition to any other penalty as may be imposed under this chapter or 33 pursuant to any other law. Any referral for prosecution under this 34 subdivision shall be made pursuant to section 3-104 of this chapter. 35 Upon conviction, the chief enforcement counsel shall initiate a special 36 proceeding or civil action to recover any public matching funds obtained 37 as a result of such criminal conduct. 38 3. Proceedings as to public financing. (a) The determination of eligi- 39 bility pursuant to this title and any question or issue relating to 40 payments for campaign expenditures pursuant to this title may be 41 contested in a proceeding instituted in the Supreme court, Albany coun- 42 ty, by an aggrieved judicial candidate. 43 (b) A proceeding with respect to such a determination of eligibility 44 or payment for qualified campaign expenditures pursuant to this chapter 45 shall be instituted within fourteen days after such determination was 46 made. The board shall be made a party to any such proceeding. 47 (c) Upon the board's failure to receive the amount due from a partic- 48 ipating candidate or such candidate's authorized political committee 49 after the issuance of written notice of such amount due, as required by 50 this title, the chief enforcement counsel is authorized to seek recovery 51 of such amount pursuant to sections 3-104 and 3-104-a of this chapter. 52 (d) Any such funds obtained or collected through judgment or settle- 53 ment shall be remitted to the New York state judicial and district 54 attorney campaign finance fund. 55 § 14-212. Reports. The board shall review and evaluate the effect of 56 this title upon the conduct of election campaigns and shall submit anA. 5841--A 12 1 annual report to the governor and the legislature on or before May 2 first, two thousand twenty-one, and on or before May first of every year 3 thereafter, and at any other time upon the request of the governor and 4 at such other times as the board deems appropriate. These reports shall 5 include: 6 1. a list of the participating and nonparticipating candidates in 7 covered elections and the votes received by each candidate in those 8 elections; 9 2. the amount of contributions and loans received, and expenditures 10 made, on behalf of these candidates; 11 3. the amount of public matching funds each participating candidate 12 received, spent, and repaid pursuant to this title; 13 4. analysis of the effect of this title on political campaigns, 14 including its effect on the sources and amounts of private financing, 15 the level of campaign expenditures, voter participation, the number of 16 candidates, the candidates' ability to campaign effectively for public 17 office, and the diversity of candidates seeking and elected to office; 18 and 19 5. recommendations for amendments to this title, including changes in 20 contribution limits, thresholds for eligibility, and any other features 21 of the system. 22 § 14-213. Severability. If any clause, sentence, subdivision, para- 23 graph, section or part of this title be adjudged by any court of compe- 24 tent jurisdiction to be invalid, such judgment shall not affect, impair 25 or invalidate the remainder thereof, but shall be confined in its opera- 26 tion to the clause, sentence, subdivision, paragraph, section or part 27 thereof directly involved in the controversy in which such judgment 28 shall have been rendered. 29 Nothing in this title shall be construed to require candidates or 30 candidates' authorized political committees to commit any act which 31 would violate the rules governing judicial conduct pursuant to 22 NYCRR 32 Part 100. To the extent that any provision in this title conflicts with 33 such rules, the rules shall control. 34 § 6. The state finance law is amended by adding a new section 92-t to 35 read as follows: 36 § 92-t. New York state judicial and district attorney campaign finance 37 fund. 1. There is hereby established in the joint custody of the state 38 comptroller and the commissioner of taxation and finance a fund to be 39 known as the New York state judicial and district attorney campaign 40 finance fund. 41 2. Such fund shall consist of all revenues received from the New York 42 state judicial and district attorney campaign finance fund check-off 43 pursuant to subsection (h) of section six hundred fifty-eight of the tax 44 law, from the abandoned property fund pursuant to section ninety-five of 45 this article, from the general fund, and from all other moneys credited 46 or transferred thereto from any other fund or source pursuant to law. 47 Such fund shall also receive contributions from private individuals, 48 organizations, or other persons to fulfill the purposes of the judicial 49 public financing system, as well as any funds remitted pursuant to 50 section 14-211 of the election law. 51 3. Moneys of the fund, following appropriation by the legislature, may 52 be expended for the purposes of making payments to candidates pursuant 53 to title II of article fourteen of the election law and for administra- 54 tive expenses related to the implementation of article fourteen of the 55 election law. Moneys shall be paid out of the fund by the state comp- 56 troller on vouchers certified or approved by the state board ofA. 5841--A 13 1 elections, or its duly designated representative, in the manner 2 prescribed by law, not more than five business days after such voucher 3 is received by the state comptroller. 4 4. Notwithstanding any provision of law to the contrary, if, in any 5 state fiscal year, the state judicial and district attorney campaign 6 finance fund lacks the amount of money to pay all claims vouchered by 7 eligible candidates and certified or approved by the state board of 8 elections, any such deficiency shall be paid by the state comptroller, 9 from funds deposited in the general fund of the state not more than four 10 business days after such voucher is received by the state comptroller. 11 5. Commencing in two thousand twenty-one, if the surplus in the fund 12 on April first of the year after a year in which a governor is elected 13 exceeds twenty-five percent of the disbursements from the fund over the 14 previous four years, the excess shall revert to the general fund of the 15 state. 16 6. No public funds shall be paid to any participating candidates in a 17 general election any earlier than the last day to decline a judicial or 18 district attorney nomination pursuant to subdivision seven of section 19 6-158 of the election law. 20 7. No public funds shall be paid to the authorized political committee 21 of any participating candidate who has been disqualified or whose nomi- 22 nation has been declared invalid by the appropriate board of elections 23 or a court of competent jurisdiction until and unless such finding is 24 reversed by a higher court in a final judgment. No payment from the 25 fund in the possession of such participating candidate's authorized 26 political committee on the date of such disqualification or invalidation 27 may thereafter be expended for any purpose except the payment of liabil- 28 ities incurred before such date. All other such moneys shall be repaid 29 to the fund. 30 § 7. Section 95 of the state finance law is amended by adding a new 31 subdivision 5 to read as follows: 32 5. (a) As often as necessary, the co-chairs of the state board of 33 elections shall certify the amount such co-chairs have determined neces- 34 sary to fund estimated payments from the fund established by section 35 ninety-two-t of this article for the general election. 36 (b) Notwithstanding any provision of this section authorizing the 37 transfer of any moneys in the abandoned property fund to the general 38 fund, the comptroller, after receiving amounts sufficient to pay claims 39 against the abandoned property fund, shall, based upon a certification 40 of the state board of elections pursuant to paragraph (a) of this subdi- 41 vision, and at the direction of the director of the budget, transfer the 42 requested amount from remaining available monies in the abandoned prop- 43 erty fund to the New York state judicial and district attorney campaign 44 finance fund established by section ninety-two-t of this article. 45 § 8. Section 658 of the tax law is amended by adding a new subsection 46 (h) to read as follows: 47 (h) New York state judicial and district attorney campaign finance 48 fund check-off. (1) For each taxable year beginning on and after January 49 first, two thousand nineteen, every resident taxpayer whose New York 50 state income tax liability for the taxable year for which the return is 51 filed is forty dollars or more may designate on such return that forty 52 dollars be paid into the New York state judicial and district attorney 53 campaign finance fund established by section ninety-two-t of the state 54 finance law. Where a husband and wife file a joint return and have a New 55 York state income tax liability for the taxable year for which the 56 return is filed is eighty dollars or more, or file separate returns on aA. 5841--A 14 1 single form, each such taxpayer may make separate designations on such 2 return of forty dollars to be paid into the New York state judicial and 3 district attorney campaign finance fund. 4 (2) The commissioner shall transfer to the New York state judicial and 5 district attorney campaign finance fund, established pursuant to section 6 ninety-two-t of the state finance law, an amount equal to forty dollars 7 multiplied by the number of designations. 8 (3) For purposes of this subsection, the income tax liability of an 9 individual for any taxable year is the amount of tax imposed under this 10 article reduced by the sum of the credits (as shown in his or her 11 return) allowable under this article. 12 (4) The department shall include a place on every personal income tax 13 return form to be filed by an individual for a tax year beginning on or 14 after January first, two thousand nineteen, for such taxpayer to make 15 the designations described in paragraph one of this subsection. Such 16 return form shall contain a concise explanation of the purpose of such 17 optional designations. 18 § 9. Section 16-120 of the election law, as added by section 5 of 19 part E of chapter 399 of the laws of 2011, is amended to read as 20 follows: 21 § 16-120. Enforcement proceedings. 1. The supreme court or a justice 22 thereof, in a proceeding instituted by the state board of elections, may 23 impose a civil penalty, as provided for in subdivisions one and two of 24 section 14-126 of this chapter and as provided for in subdivision one of 25 section 14-211 of this chapter. 26 2. Upon proof that a violation of article fourteen of this chapter, as 27 provided in subdivision one of this section, has occurred, the court may 28 impose a civil penalty, pursuant to subdivisions one and two of section 29 14-126 of this chapter and pursuant to subdivision one of section 14-211 30 of this chapter, after considering, among other factors, the severity of 31 the violation or violations, whether the subject of the violation made a 32 good faith effort to correct the violation and whether the subject of 33 the violation has a history of similar violations. All such determi- 34 nations shall be made on a fair and equitable basis without regard to 35 the status of the candidate or political committee. 36 3. The supreme court or a justice thereof, in a proceeding to recover 37 public funds instituted pursuant to subdivision two of section 14-211 of 38 this chapter, may order the recovery of such public funds. 39 § 10. Severability. If any clause, sentence, subdivision, paragraph, 40 section or part of title II of article 14 of the election law, as added 41 by section five of this act be adjudged by any court of competent juris- 42 diction to be invalid, such judgment shall not affect, impair or invali- 43 date the remainder thereof, but shall be confined in its operation to 44 the clause, sentence, subdivision, paragraph, section or part thereof 45 directly involved in the controversy in which such judgment shall have 46 been rendered. 47 § 11. This act shall take effect immediately; provided, however, all 48 affected candidates will be eligible to participate in voluntary public 49 financing beginning with the 2020 election and provided, further, this 50 act shall expire June 1, 2023 when upon such date the provisions of this 51 act shall be deemed repealed.
