Bill Text: NY A08329 | 2021-2022 | General Assembly | Amended

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Bill Title: Relates to campaign funds for personal use.

Spectrum: Slight Partisan Bill (Democrat 7-3)

Status: (Introduced - Dead) 2022-01-27 - print number 8329a [A08329 Detail]

Download: New_York-2021-A08329-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         8329--A

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    October 20, 2021
                                       ___________

        Introduced by M. of A. SIMON, SEAWRIGHT, THIELE, McDONALD, CLARK, GALEF,
          ENGLEBRIGHT, LAWLER, MONTESANO, MORINELLO -- 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 campaign funds for
          personal use

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. Section 14-130 of the election law, as amended by section 9
     2  of part CC of chapter 56 of the laws of 2015, paragraphs (ix) and (x) of
     3  subdivision 3 as amended and paragraph (xi) of subdivision 3 as added by
     4  chapter 136 of the laws of 2019, is amended to read as follows:
     5    §  14-130.  Campaign funds for personal use. 1. Contributions received
     6  by a candidate or a political committee may only be  expended  for  [any
     7  lawful  purpose.  Such  funds  shall not be converted by any person to a
     8  personal use which is unrelated to a political campaign or  the  holding
     9  of  a  public  office  or  party  position.] bona fide purposes directly
    10  related to either:
    11    (a) promoting the nomination or election of a candidate; or
    12    (b) performing duties of public office or party position which are not
    13  paid for or eligible for reimbursement by the  state  or  any  political
    14  subdivision or private party, and ordinary and necessary expenses relat-
    15  ing to the holding of public office or party position.
    16    2. [No contribution shall be used to pay interest or any other finance
    17  charges  upon  monies  loaned  to  the campaign by such candidate or the
    18  spouse of such candidate.] Campaign funds  shall  not  be  converted  to
    19  personal use, which shall be defined as expenditures that:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08382-03-2
        A. 8329--A                          2

     1    (a)  are  for  the  personal  benefit  of  or  to defray normal living
     2  expenses of the candidate, officeholder, immediate  family  or  domestic
     3  partner of either or any other person;
     4    (b)  are  used  to fulfill any commitment, obligation, or expense that
     5  would exist irrespective of the candidate's campaign  or  duties  as  an
     6  officeholder; or
     7    (c)  are  put to any use for which the candidate or officeholder would
     8  be required  to  treat  the amount of the expenditure  as  gross  income
     9  under section 61 of the Internal Revenue Code.
    10    3.  For  the purposes of this section, contributions "converted by any
    11  person to a personal use" are expenditures that are exclusively for  the
    12  personal  benefit  of  the  candidate  or  any  other individual, not in
    13  connection with a political campaign or the holding of a  public  office
    14  or  party  position.  "Converted  by any person to a personal use", when
    15  meeting the definition in this subdivision, shall include,  but  not  be
    16  limited to, expenses for the following:
    17    (i)  any  residential  or  household  items, supplies or expenditures,
    18  including mortgage, rent  or  utility  payments  for  any  part  of  any
    19  personal  residence  of  a  candidate or officeholder or a member of the
    20  candidate's or officeholder's family that are not incurred as  a  result
    21  of, or to facilitate, the individual's campaign, or the execution of his
    22  or  her duties of public office or party position. In the event that any
    23  property or building is used for both personal and campaign  use  or  as
    24  part  of  the  execution  of his or her duties of public office or party
    25  position, personal use shall constitute expenses that  exceed  the  pro-
    26  rated amount for such expenses based on fair-market value.
    27    (ii) mortgage, rent, or utility payments to a candidate or officehold-
    28  er  for  any  part  of  any  non-residential property that is owned by a
    29  candidate or officeholder or a member of a candidate's or officeholder's
    30  family and used for campaign purposes, to the extent the payments exceed
    31  the fair market value of the property's usage for campaign activities;
    32    (iii) clothing, other than items that are used in the campaign  or  in
    33  the execution of the duties of public office or party position;
    34    (iv) tuition payments unrelated to a political campaign or the holding
    35  of a public office or party position;
    36    (v)  salary  payments, benefits, or other compensation provided to any
    37  person for services where such services  are  not  solely  for  campaign
    38  purposes  or  provided in connection with the execution of the duties of
    39  public office or party position;
    40    (vi) salary payments or other compensation provided to a member  of  a
    41  candidate's  family,  unless  the  family  member is providing bona fide
    42  services to the campaign. If a family member provides bona fide services
    43  to a campaign, any salary payments or other compensation  in  excess  of
    44  the  fair  market  value  of  the  services provided shall be considered
    45  payments for personal use;
    46    (vii) admission to a sporting event, concert, theater, or  other  form
    47  of entertainment, unless such event is part of, or in connection with, a
    48  campaign  or  is  related to the holding of public office or party posi-
    49  tion;
    50    (viii) payment of any fines or penalties assessed against  the  candi-
    51  date  pursuant  to  this  chapter  or  in  connection  with  a  criminal
    52  conviction or by the joint commission  for  public  ethics  pursuant  to
    53  section  ninety-four  of  the executive law or sections seventy-three or
    54  seventy-three-a of the public officers law  or  the  legislative  ethics
    55  commission pursuant to section eighty of the legislative law;
        A. 8329--A                          3

     1    (ix)  dues, fees, or gratuities at a country club, health club, recre-
     2  ational facility or other entities with a similar purpose,  unless  they
     3  are  expenses  connected  with  a specific fundraising event or activity
     4  associated with a political campaign or the holding of public office  or
     5  party position that takes place on the organization's premises;
     6    (x)  travel  expenses including automobile purchases or leases, unless
     7  used for campaign purposes or in connection with the  execution  of  the
     8  duties  of  public  office  or  party position and usage of such vehicle
     9  which is incidental to such purposes or the execution  of  such  duties;
    10  [and]
    11    (xi)  childcare expenses, other than expenses incurred in the campaign
    12  or in the execution of the duties of public office  or  party  position;
    13  and
    14    (xii)  automobile purchases or long term leases; short term car rental
    15  and cellular equipment and services not used  exclusively  for  campaign
    16  purposes or duties as an officeholder.
    17    4.  Nothing in this section shall prohibit a candidate from purchasing
    18  equipment or property from his or her  personal  funds  and  leasing  or
    19  renting  such  equipment  or property to a committee working directly or
    20  indirectly with him or her to aid or participate in  his  or  her  nomi-
    21  nation  or  election,  including an exploratory committee, provided that
    22  the candidate and his or her campaign treasurer sign a written lease  or
    23  rental  agreement.  Such  agreement  shall  include  the lease or rental
    24  price, which shall not exceed the fair lease  or  rental  value  of  the
    25  equipment.  The  candidate  shall  not  receive lease or rental payments
    26  which, in the aggregate, exceed the cost of purchasing the equipment  or
    27  property.
    28    5.  Nothing  in  this section shall prohibit an elected public office-
    29  holder from using campaign  contributions  to  facilitate,  support,  or
    30  otherwise assist in the execution or performance of the duties of his or
    31  her public office.
    32    6.  The  state  board  of elections shall issue advisory opinions upon
    33  request regarding  expenditures  that  may  or  may  not  be  considered
    34  personal  use of contributions. Any formal or informal advisory opinions
    35  issued by a majority vote of the commissioners of  the  state  board  of
    36  elections  shall  be binding on the board, the chief enforcement counsel
    37  established by subdivision three-a of section 3-100 of this chapter, and
    38  in any subsequent civil or criminal action or proceeding or  administra-
    39  tive proceeding.
    40    § 2. Section 14-132 of the election law, as added by section 2 of part
    41  C of chapter 286 of the laws of 2016, is amended to read as follows:
    42    §  14-132.  Disposition  of  campaign  funds. [1.] Upon the death of a
    43  candidate, former candidate or holder of elective  office,  [where  such
    44  candidate  or  candidate's  authorized  committee] who received campaign
    45  contributions, all [such funds] contributions shall be disposed  of  [by
    46  any of the following means, or any combination thereof, within two years
    47  of the death of such person:
    48    (a)  returning,  pro rata, to each contributor the funds that have not
    49  been spent or obligated;
    50    (b) donating the funds to a charitable organization  or  organizations
    51  that meet the qualifications of section 501(c)(3) of the Internal Reven-
    52  ue Code;
    53    (c) donating the funds to the state university of New York or the city
    54  university of New York;
    55    (d) donating the funds to the state's general fund; or
        A. 8329--A                          4

     1    (e)  contributing  or  transferring  the  funds to a candidate, party,
     2  constituted or political committee in  accordance  with  the  applicable
     3  limits, if any, set forth in this article.
     4    2. No such candidate's authorized political committee shall dispose of
     5  campaign  funds  by  making  expenditures for personal use as defined in
     6  section 14-130 of this article.
     7    3. If funds are not disposed of  within  the  time  required  by  this
     8  section,  such funds shall be recoverable by the chief enforcement coun-
     9  sel of the state board of elections in a  special  proceeding  in  state
    10  supreme court in the manner prescribed by section 16-116 of this chapter
    11  and deposited into the state's general fund] within twelve months of the
    12  death of the candidate pursuant to subdivision one of this section.
    13    1.  Any  political  committee required to dispose of funds pursuant to
    14  this section shall, at the option of the representative of the estate of
    15  the candidate, or the treasurer of a political committee  formed  solely
    16  to  promote  the passage or defeat of a ballot proposal, dispose of such
    17  funds by any of the following means, or any combination thereof:
    18    a. returning, pro rata, to each contributor the funds  that  have  not
    19  been spent or obligated;
    20    b.  donating  the  funds to a charitable organization or organizations
    21  that meet the qualifications of  section  501(c)  (3)  of  the  Internal
    22  Revenue Code;
    23    c. donating the funds to the state university;
    24    d. donating the funds to the state's general fund;
    25    e.  transferring  the  funds to a political party committee registered
    26  with the state board of elections; or
    27    f. contributing the funds to a candidate or political  committee  such
    28  that this does not exceed the limits set forth in section 14-114 of this
    29  title.
    30    2. No representative of the estate of a candidate or political commit-
    31  tee  shall dispose of campaign funds by making expenditures for personal
    32  use as defined in section 14-130 of this title.
    33    § 3. This act shall take effect on the sixtieth  day  after  it  shall
    34  have  become  a  law;  provided, that the state board of elections shall
    35  notify all registered campaign committees of the  applicable  provisions
    36  of this act within thirty days after this act shall have become a law.