Bill Text: NY S00456 | 2021-2022 | General Assembly | Introduced
Bill Title: Relates to transition and inauguration donations and expenses and funds for personal use.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-01-05 - REFERRED TO ELECTIONS [S00456 Detail]
Download: New_York-2021-S00456-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 456 2021-2022 Regular Sessions IN SENATE (Prefiled) January 6, 2021 ___________ Introduced by Sen. BIAGGI -- read twice and ordered printed, and when printed to be committed to the Committee on Elections AN ACT to amend the election law, in relation to transition and inaugu- ration donations and expenses and 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. The election law is amended by adding a new article 18 to 2 read as follows: 3 ARTICLE 18 4 TRANSITION AND INAUGURATION ENTITIES 5 Section 18-100. Definitions. 6 18-101. Transition and inauguration donations and expenses. 7 18-102. Transition and inauguration funds for personal use. 8 § 18-100. Definitions. For purposes of this article, the term "poli- 9 tical committee" shall have the same meaning as set forth in section 10 14-100 of this chapter. 11 § 18-101. Transition and inauguration donations and expenses. 1. 12 Candidates elected to office may authorize one or more entities, other 13 than a political committee, for the purpose of accepting donations and 14 loans, and for making expenditures, for transition or inauguration into 15 office. Such donations and loans may not be accepted and such expendi- 16 tures may not be made on behalf of such candidate prior to the registra- 17 tion with the board of elections of each such entity. The board of 18 elections shall promulgate rules to establish the time and manner for 19 such registration. 20 2. Candidates elected to office, and the entities such candidates 21 authorized pursuant to subdivision one of this section, shall not: 22 (a) use funds accepted by a political committee authorized by the 23 candidate for any election to make expenditures for transition or inau- 24 guration into office, and shall not transfer funds from a political EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01886-01-1S. 456 2 1 committee to an entity the candidate is required to register pursuant to 2 subdivision one of this section; 3 (b) accept any donation or donations of money, goods, or services from 4 any individual other than the candidate, political committee, employee 5 organization, or entity which in the aggregate exceeds the limit for the 6 applicable office contained in subdivision one of section 14-114 of this 7 chapter, as adjusted pursuant to such subdivision as applicable; and 8 (c) incur any liabilities after January thirty-first in the year 9 following the election, nor accept any donations after all liabilities 10 are paid. 11 3. Donations that do not exceed the limitations set forth in paragraph 12 (b) of subdivision two of this section may be accepted only from poli- 13 tical committees that register with the board of elections, as shall be 14 provided for in rules issued by such board. Any donation accepted from a 15 political committee that has not registered with the board of elections 16 prior to making the donation must be returned to the political commit- 17 tee. However, a subsequent donation may be accepted if such political 18 committee registers with the board of elections in accordance with the 19 rules issued by the board. 20 4. To the extent not repaid by the date of the candidate's inaugu- 21 ration into office, a loan received by such entity shall be deemed a 22 donation subject to the limits and restrictions set forth in paragraph 23 (b) of subdivision two and subdivision three of this section. 24 5. Entities required to be registered pursuant to subdivision one of 25 this section shall not incur liabilities for purposes other than transi- 26 tion or inauguration into office. 27 6. Notwithstanding any restriction in this section, a candidate may 28 self-fund his or her own entity. 29 § 18-102. Transition and inauguration funds for personal use. 1. 30 Contributions received by transition and inauguration entities may be 31 expended for any lawful purpose. Such funds shall not be converted by 32 any person to a personal use which is unrelated to transition or inaugu- 33 ration into office or the holding of a public office or party position. 34 2. No contribution shall be used to pay interest or any other finance 35 charges upon monies loaned to the transition or inauguration entity by 36 the candidate or the spouse of such candidate. 37 3. For the purposes of this section, contributions "converted by any 38 person to a personal use" are expenditures that are exclusively for the 39 personal benefit of the candidate or any other individual, not in 40 connection with transition or inauguration into office or the holding of 41 a public office or party position. "Converted by any person to a 42 personal use", when meeting the definition in this subdivision, shall 43 include, but not be limited to, expenses for the following: 44 (a) any residential or household items, supplies or expenditures, 45 including mortgage, rent or utility payments for any part of any 46 personal residence of a candidate or officeholder or a member of the 47 candidate's or officeholder's family that are not incurred as a result 48 of, or to facilitate, the individual's transition and inauguration into 49 office, or the execution of his or her duties of public office or party 50 position. In the event that any property or building is used for both 51 personal and the individual's transition and inauguration into office or 52 as part of the execution of his or her duties of public office or party 53 position, personal use shall constitute expenses that exceed the pro- 54 rated amount for such expenses based on fair-market value; 55 (b) mortgage, rent, or utility payments to a candidate or officeholder 56 for any part of any non-residential property that is owned by a candi-S. 456 3 1 date or officeholder or a member of a candidate's or officeholder's 2 family and used for the individual's transition and inauguration into 3 office, to the extent the payments exceed the fair market value of the 4 property's usage for transition and inauguration activities; 5 (c) clothing, other than items that are used in the transition and 6 inauguration into office or in the execution of the duties of public 7 office or party position; 8 (d) tuition payments unrelated to the individual's transition and 9 inauguration into office or the holding of a public office or party 10 position; 11 (e) salary payments or other compensation provided to any person for 12 services where such services are not solely for the transition and inau- 13 guration into office or provided in connection with the execution of the 14 duties of public office or party position; 15 (f) salary payments or other compensation provided to a member of a 16 candidate's family, unless the family member is providing bona fide 17 services to the transition and inauguration. If a family member provides 18 bona fide services to the transition and inauguration, any salary 19 payments or other compensation in excess of the fair market value of the 20 services provided shall be considered payments for personal use; 21 (g) admission to a sporting event, concert, theater, or other form of 22 entertainment, unless such event is part of, or in connection with, the 23 individual's transition and inauguration into office or is related to 24 the holding of public office or party position; 25 (h) payment of any fines or penalties assessed against the candidate 26 pursuant to this chapter or in connection with a criminal conviction or 27 by the joint commission for public ethics pursuant to section ninety- 28 four of the executive law or sections seventy-three or seventy-three-a 29 of the public officers law or the legislative ethics commission pursuant 30 to section eighty of the legislative law; 31 (i) dues, fees, or gratuities at a country club, health club, recre- 32 ational facility or other entities with a similar purpose, unless they 33 are expenses connected with a specific fundraising event or activity 34 associated with the individual's transition and inauguration into office 35 or the holding of public office or party position that takes place on 36 the organization's premises; and 37 (j) travel expenses including automobile purchases or leases, unless 38 used for transition and inauguration purposes or in connection with the 39 execution of the duties of public office or party position and usage of 40 such vehicle which is incidental to such purposes or the execution of 41 such duties. 42 4. Nothing in this section shall prohibit a candidate from purchasing 43 equipment or property from his or her personal funds and leasing or 44 renting such equipment or property to a committee working directly or 45 indirectly with him or her to aid or participate in his or her transi- 46 tion and inauguration into office, provided that the candidate and the 47 treasurer of the transition and inauguration entity sign a written lease 48 or rental agreement. Such agreement shall include the lease or rental 49 price, which shall not exceed the fair lease or rental value of the 50 equipment. The candidate shall not receive lease or rental payments 51 which, in the aggregate, exceed the cost of purchasing the equipment or 52 property. 53 5. Nothing in this section shall prohibit an elected public office- 54 holder from using transition and inauguration contributions to facili- 55 tate, support, or otherwise assist in the execution or performance of 56 the duties of his or her public office.S. 456 4 1 6. The state board of elections shall issue advisory opinions upon 2 request regarding expenditures that may or may not be considered 3 personal use of contributions. Any formal or informal advisory opinions 4 issued by a majority vote of the commissioners of the state board of 5 elections shall be binding on the board, the chief enforcement counsel 6 established by subdivision three-a of section 3-100 of this chapter, and 7 in any subsequent civil or criminal action or proceeding or administra- 8 tive proceeding. 9 § 2. This act shall take effect on the fifteenth of December next 10 succeeding the date on which it shall have become a law. Effective imme- 11 diately, the addition, amendment and/or repeal of any rule or regulation 12 necessary for the implementation of this act on its effective date are 13 authorized to be made and completed on or before such effective date.
