Bill Text: NY S04231 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to campaign funds for personal use.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO ELECTIONS [S04231 Detail]
Download: New_York-2017-S04231-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4231 2017-2018 Regular Sessions IN SENATE February 6, 2017 ___________ Introduced by Sens. KRUEGER, ADDABBO, AVELLA, SQUADRON -- 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 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, is amended to read as 3 follows: 4 § 14-130. Campaign funds for personal use. 1. Contributions received 5 by a candidate or a political committee may only be expended for [any6lawful purpose. Such funds shall not be converted by any person to a7personal use which is unrelated to a political campaign or the holding8of a public office or party position] bona fide purposes directly 9 related to either. 10 [2. No contribution shall be used to pay interest or any other finance11charges upon monies loaned to the campaign by such candidate or the12spouse of such candidate.133. For the purposes of this section, contributions "converted by any14person to a personal use" are expenditures that are exclusively for the15personal benefit of the candidate or any other individual, not in16connection with a political campaign or the holding of a public office17or party position. "Converted by any person to a personal use", when18meeting the definition in this subdivision, shall include, but not be19limited to, expenses for the following:20(i) any residential or household items, supplies or expenditures,21including mortgage, rent or utility payments for any part of any22personal residence of a candidate or officeholder or a member of the23candidate's or officeholder's family that are not incurred as a result24of, or to facilitate, the individual's campaign, or the execution of hisEXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05523-01-7S. 4231 2 1or her duties of public office or party position. In the event that any2property or building is used for both personal and campaign use or as3part of the execution of his or her duties of public office or party4position, personal use shall constitute expenses that exceed the pro-5rated amount for such expenses based on fair-market value.6(ii) mortgage, rent, or utility payments to a candidate or officehold-7er for any part of any non-residential property that is owned by a8candidate or officeholder or a member of a candidate's or officeholder's9family and used for campaign purposes, to the extent the payments exceed10the fair market value of the property's usage for campaign activities;11(iii) clothing, other than items that are used in the campaign or in12the execution of the duties of public office or party position;13(iv) tuition payments unrelated to a political campaign or the holding14of a public office or party position;15(v) salary payments or other compensation provided to any person for16services where such services are not solely for campaign purposes or17provided in connection with the execution of the duties of public office18or party position;19(vi) salary payments or other compensation provided to a member of a20candidate's family, unless the family member is providing bona fide21services to the campaign. If a family member provides bona fide services22to a campaign, any salary payments or other compensation in excess of23the fair market value of the services provided shall be considered24payments for personal use;25(vii) admission to a sporting event, concert, theater, or other form26of entertainment, unless such event is part of, or in connection with, a27campaign or is related to the holding of public office or party posi-28tion;29(viii) payment of any fines or penalties assessed against the candi-30date pursuant to this chapter or in connection with a criminal31conviction or by the joint commission for public ethics pursuant to32section ninety-four of the executive law or sections seventy-three or33seventy-three-a of the public officers law or the legislative ethics34commission pursuant to section eighty of the legislative law;35(ix) dues, fees, or gratuities at a country club, health club, recre-36ational facility or other entities with a similar purpose, unless they37are expenses connected with a specific fundraising event or activity38associated with a political campaign or the holding of public office or39party position that takes place on the organization's premises; and40(x) travel expenses including automobile purchases or leases, unless41used for campaign purposes or in connection with the execution of the42duties of public office or party position and usage of such vehicle43which is incidental to such purposes or the execution of such duties.444. Nothing in this section shall prohibit a candidate from purchasing45equipment or property from his or her personal funds and leasing or46renting such equipment or property to a committee working directly or47indirectly with him to aid or participate in his or her nomination or48election, including an exploratory committee, provided that the candi-49date and his or her campaign treasurer sign a written lease or rental50agreement. Such agreement shall include the lease or rental price, which51shall not exceed the fair lease or rental value of the equipment. The52candidate shall not receive lease or rental payments which, in the53aggregate, exceed the cost of purchasing the equipment or property.545. Nothing in this section shall prohibit an elected public office-55holder from using campaign contributions to facilitate, support, orS. 4231 3 1otherwise assist in the execution or performance of the duties of his or2her public office.36. The state board of elections shall issue advisory opinions upon4request regarding expenditures that may or may not be considered5personal use of contributions. Any formal or informal advisory opinions6issued by a majority vote of the commissioners of the state board of7elections shall be binding on the board, the chief enforcement counsel8established by subdivision three-a of section 3-100 of this chapter, and9in any subsequent civil or criminal action or proceeding or administra-10tive proceeding.] 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. Campaign funds shall not be converted to personal use, which shall 17 be defined as expenditures that: 18 a. are for the personal benefit of or to defray normal living expenses 19 of the candidate, officeholder, immediate family or domestic partner of 20 either or any other person; 21 b. are used to fulfill any commitment, obligation, or expense that 22 would exist irrespective of the candidate's campaign or duties as an 23 officeholder; or 24 c. are put to any use for which the candidate or officeholder would be 25 required to treat the amount of the expenditure as gross income under 26 section 61 of the Internal Revenue Code. 27 3. Expenditures for personal use shall also include, but are not 28 limited to, expenditures for: 29 a. residential or household items, supplies, maintenance or other 30 expenditures, including mortgage, rent, utilities, repairs, or improve- 31 ments for any part of any personal residence of a candidate or office- 32 holder, his or her immediate family or domestic partner; 33 b. rent or utility payments that exceed fair market value for use of 34 any part of any non-residential property owned by a candidate, or a 35 member of a candidate's family or domestic partner used for campaign 36 purposes; 37 c. salary and other fees for bona fide services to a campaign or 38 legislative office that exceed fair and reasonable market value of such 39 services; 40 d. interest or any other finance charges for monies loaned to the 41 campaign by the candidate or the spouse or domestic partner of such 42 candidate; 43 e. tuition payments; 44 f. dues, fees, or gratuities at private clubs, recreational facilities 45 or other nonpolitical organizations, unless connected to a specific 46 widely attended fundraising event that takes place on the organization's 47 premises; 48 g. automobile purchases or long term leases; short term car rentals 49 and cellular equipment and services not used exclusively for campaign 50 purposes or duties as an officeholder; 51 h. admission to sporting events, concerts, theaters, or other forms of 52 entertainment, unless part of a specific campaign or officeholder 53 related activity; and 54 i. payment of any fines, fees, or penalties assessed pursuant to this 55 chapter.S. 4231 4 1 Nothing in this section shall prohibit a candidate from purchasing 2 office equipment with personal funds and leasing or renting such equip- 3 ment or property to a committee working with or for the candidate, 4 provided the candidate or the campaign treasurer signs a written lease 5 or rental agreement and files it with the appropriate required campaign 6 financial filing which shall include the lease or rental price which 7 shall not exceed the fair lease or rental value of the equipment or in 8 the aggregate exceed the cost of its purchase. 9 § 2. Section 14-132 of the election law, as added by section 2 of part 10 C of chapter 286 of the laws of 2016, is amended to read as follows: 11 § 14-132. Disposition of campaign funds. [1.] Upon the death of a 12 candidate, former candidate or holder of elective office, [where such13candidate or candidate's authorized committee] who received campaign 14 contributions, all [such funds] contributions shall be disposed of [by15any of the following means, or any combination thereof, within two years16of the death of such person:17(a) returning, pro rata, to each contributor the funds that have not18been spent or obligated;19(b) donating the funds to a charitable organization or organizations20that meet the qualifications of section 501(c)(3) of the Internal Reven-21ue Code;22(c) donating the funds to the state university of New York or the city23university of New York;24(d) donating the funds to the state's general fund; or25(e) contributing or transferring the funds to a candidate, party,26constituted or political committee in accordance with the applicable27limits, if any, set forth in this article.282. No such candidate's authorized political committee shall dispose of29campaign funds by making expenditures for personal use as defined in30section 14-130 of this article.313. If funds are not disposed of within the time required by this32section, such funds shall be recoverable by the chief enforcement coun-33sel of the state board of elections in a special proceeding in state34supreme court in the manner prescribed by section 16-116 of this chapter35and deposited into the state's general fund] within twelve months of the 36 death of the candidate pursuant to subdivision one of this section. 37 1. Any political committee required to dispose of funds pursuant to 38 this section shall, at the option of the representative of the estate of 39 the candidate, or the treasurer of a political committee formed solely 40 to promote the passage or defeat of a ballot proposal, dispose of such 41 funds by any of the following means, or any combination thereof: 42 a. returning, pro rata, to each contributor the funds that have not 43 been spent or obligated; 44 b. donating the funds to a charitable organization or organizations 45 that meet the qualifications of section 501(c) (3) of the Internal 46 Revenue Code; 47 c. donating the funds to the state university; 48 d. donating the funds to the state's general fund; 49 e. transferring the funds to a political party committee registered 50 with the state board of elections; or 51 f. contributing the funds to a candidate or political committee such 52 that this does not exceed the limits set forth in section 14-114 of this 53 title. 54 2. No representative of the estate of a candidate or political commit- 55 tee shall dispose of campaign funds by making expenditures for personal 56 use as defined in section 14-130 of this title.S. 4231 5 1 § 3. This act shall take effect on the sixtieth day after it shall 2 have become a law; provided, however, that if section 9 of part CC of 3 chapter 56 of the laws of 2015 shall not have taken effect on or before 4 such date then section two of this act shall take effect on the same 5 date and in the same manner as section 9 of part CC of chapter 56 of the 6 laws of 2015, takes effect; and provided, further, that the state board 7 of elections shall notify all registered campaign committees of the 8 applicable provisions of this act within thirty days after this act 9 shall have become a law.