Bill Text: NY S07506 | 2015-2016 | General Assembly | Introduced
Bill Title: Enacts the "integrity in elections act of 2016"; requires the majority vote of the entire party committee for the jurisdiction in which a candidate for public office is running, in order to nominate such candidate as the party candidate; prohibits the transfer of funds between a candidate and committees not formed for the purposes of such candidate; limits independent expenditures for political purposes; limits contributions to $2,600 to any single candidate during an election cycle; enacts campaign finance reform to provide for matching funds for the campaigns of state elected officials; authorizes the imposition of an additional surcharge on recoveries for fraudulent practices regarding stocks, bonds and other securities; establishes the New York state campaign finance fund; provides for a New York state campaign finance fund check-off.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2016-05-05 - REFERRED TO ELECTIONS [S07506 Detail]
Download: New_York-2015-S07506-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7506 IN SENATE May 5, 2016 ___________ Introduced by Sens. KLEIN, AVELLA, CARLUCCI, SAVINO, VALESKY -- 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 overhauling campaign financing and providing a voluntary financing program for campaigns for state officers; to amend the general business law, in relation to authorizing the imposition of an additional surcharge on recoveries for fraudulent practices relating to stocks, bonds and other securi- ties; to amend the state finance law, in relation to establishing the New York state campaign finance fund and providing for transfers ther- eto from the abandoned property fund; to amend the tax law, in relation to providing for a New York state campaign finance fund check-off; and to repeal certain provisions of the election law relat- ing thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "integrity in elections act of 2016". 3 § 2. Legislative intent. The legislature declares that it is in the 4 public interest to create and ensure a truly democratic political 5 system, one of the highest integrity, in which citizens, regardless of 6 their income, status or financial wealth, are enabled and encouraged to 7 compete for public office. The legislature further declares that large 8 and unregulated independent expenditures may grant the financial backers 9 of such independent expenditures undue influence in election based on 10 ability to pay. Finally, the legislature further declares that present 11 campaign finance laws must be amended to ensure that the voices of indi- 12 vidual small contributors are heard and that elections are conducted in 13 a fair and open manner. 14 Therefore, the legislature finds it necessary to establish a voluntary 15 system for the financing of campaigns for all qualified candidates for 16 state elective offices and constitutional convention delegates. The 17 legislature further finds that this new system which provides matching 18 funds for small contributions from individuals allows increased citizen EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13343-03-6S. 7506 2 1 participation in state elections. The legislature also creates a new 2 campaign finance board placed within and working hand in hand with the 3 state board of elections to provide effective oversight and enforcement 4 of the voluntary campaign financing system. Finally, the legislature 5 lowers contribution limits for all contributors, whether or not the 6 candidate participates in the voluntary system, thereby removing the 7 influence of large contributions in state and local elections. 8 § 3. Subdivision 10 of section 14-100 of the election law, as added by 9 chapter 8 of the laws of 1978 and as redesignated by chapter 9 of the 10 laws of 1978, is amended and a new subdivision 15 is added to read as 11 follows: 12 10. "transfer" means any exchange of funds or any thing of value 13 between political committees authorized by the same candidate and taking 14 part solely in his or her campaign[, or any exchange of funds between a15party or constituted committee and a candidate or any of his authorized16political committees]. 17 15. "board", "state board" or "state board of elections" means the 18 campaign finance board as established in title two of this article. 19 § 4. Subdivision 1 of section 14-102 of the election law, as amended 20 by chapter 8 of the laws of 1978 and as redesignated by chapter 9 of the 21 laws of 1978, is amended to read as follows: 22 1. The treasurer of every political committee which, or any officer, 23 member or agent of any such committee who, in connection with any 24 election, receives or expends any money or other valuable thing or 25 incurs any liability to pay money or its equivalent shall file state- 26 ments sworn, or subscribed and bearing a form notice that false state- 27 ments made therein are punishable as a class A misdemeanor pursuant to 28 section 210.45 of the penal law, at the times prescribed by this [arti-29cle] title setting forth all the receipts, contributions to and the 30 expenditures by and liabilities of the committee, and of its officers, 31 members and agents in its behalf. Such statements shall include the 32 dollar amount of any receipt[,] or contribution [or transfer], or the 33 fair market value of any receipt[,] or contribution [or transfer], which 34 is other than of money, the name and address of the [transferor,] 35 contributor or person from whom received, and [if the transferor,36contributor or person is] for any transfer, contribution or receipt made 37 by a political committee; the name of and the political unit represented 38 by the committee, the date of its receipt, the dollar amount of every 39 expenditure, the name and address of the person to whom it was made or 40 the name of and the political unit represented by the committee to which 41 it was made and the date thereof, and shall state clearly the purpose of 42 such expenditure. Any statement reporting a loan shall have attached to 43 it a copy of the evidence of indebtedness. Expenditures in sums under 44 fifty dollars need not be specifically accounted for by separate items 45 in said statements, and receipts and contributions aggregating not more 46 than ninety-nine dollars, from any one contributor need not be specif- 47 ically accounted for by separate items in said statements, provided 48 however, that such expenditures, receipts and contributions shall be 49 subject to the other provisions of section 14-118 of this [article] 50 title. 51 § 5. Section 14-107 of the election law as added by section 4 of 52 subpart C of part H of chapter 55 of the laws of 2014, subdivision 1 as 53 amended by section 8 of part CC of chapter 56 of the laws of 2015, is 54 amended to read as follows: 55 § 14-107. Independent expenditure reporting. 1. For purposes of this 56 article:S. 7506 3 1 (a) "Independent expenditure" means an expenditure made by a person 2 conveyed to five hundred or more members of a general public audience in 3 the form of (i) an audio or video communication via broadcast, cable or 4 satellite, (ii) a written communication via advertisements, pamphlets, 5 circulars, flyers, brochures, letterheads or (iii) other published 6 statements which: (i) irrespective of when such communication is made, 7 contains words such as "vote," "oppose," "support," "elect," "defeat," 8 or "reject," which call for the election or defeat of the clearly iden- 9 tified candidate, (ii) refers to and advocates for or against a clearly 10 identified candidate or ballot proposal on or after January first of the 11 year of the election in which such candidate is seeking office or such 12 proposal shall appear on the ballot, or (iii) within sixty days before a 13 general or special election for the office sought by the candidate or 14 thirty days before a primary election, includes or references a clearly 15 identified candidate. An independent expenditure shall not include 16 communications where such candidate, the candidate's political committee 17 or its agents, a party committee or its agents, or a constituted commit- 18 tee or its agents or a political committee formed to promote the success 19 or defeat of a ballot proposal or its agents, did authorize, request, 20 suggest, foster or cooperate in such communication. 21 (b) "Independent spender" means an individual or entity that makes an 22 independent expenditure or electioneering communication. 23 (c) "Electioneering communication" means: 24 (i) an audio or video communication to a general public audience via 25 broadcast, cable or satellite, or a communication made by paid advertis- 26 ing that is published on the internet or in a newspaper or periodical 27 distributed to a general public audience, or a communication to five 28 hundred or more members of a general public audience by phone, computer 29 or other electronic devices; 30 (ii) which is broadcast or published within sixty days of a general 31 election or thirty days of a primary election; 32 (iii) which refers to a clearly identified candidate or ballot 33 proposal; and 34 (iv) such candidate, the candidate's political committee or its 35 agents, or a political committee formed to promote the success or defeat 36 of a ballot proposal or its agents, did not authorize, request, suggest, 37 foster or cooperate in any such communication. 38 (d) Independent expenditures [do] and electioneering communications 39 shall not include [expenditures in connection with]: 40 (i) a written news story, commentary, or editorial or a news story, 41 commentary, or editorial distributed through the facilities of any 42 broadcasting station, cable or satellite unless such publication or 43 facilities are owned or controlled by any political party, political 44 committee or candidate; or 45 (ii) a communication that constitutes a candidate debate or forum; or 46 (iii) internal communication by members to other members of a member- 47 ship organization of not more than five hundred members, for the purpose 48 of supporting or opposing a candidate or candidates for elective office, 49 provided such expenditures are not used for the costs of campaign mate- 50 rial or communications used in connection with broadcasting, telecast- 51 ing, newspapers, magazines, or other periodical publication, billboards, 52 or similar types of general public communications; or 53 (iv) internal communications by members to other members of a member- 54 ship organization of not more than five hundred members or communi- 55 cations by a corporation organized for charitable purposes pursuant to 56 §501(c)(3) of the internal revenue code, within sixty days before aS. 7506 4 1 general or special election for the office sought by the candidate or 2 thirty days before a primary election, that includes or references a 3 clearly identified candidate but does not otherwise qualify as an inde- 4 pendent expenditure under this section. 5 (v) a communication published on the Internet, unless the communi- 6 cation is a paid advertisement. 7 [(c)] (e) For purposes of this section, the term "person" shall mean 8 person, group of persons, corporation, unincorporated business entity, 9 labor organization or business, trade or professional association or 10 organization, or political committee; provided, however, that such defi- 11 nition shall not include any party or constituted committee, that is 12 required to file disclosure reports under this chapter. 13 2. Whenever any person makes an independent expenditure that costs 14 more than one thousand dollars in the aggregate, such communication 15 shall clearly state the name of the person who paid for, or otherwise 16 published or distributed the communication and state, with respect to 17 communications regarding candidates, that the communication was not 18 expressly authorized or requested by any candidate, or by any candi- 19 date's political committee or any of its agents. 20 3. (a) Any person prior to making any independent expenditure shall 21 first register with the state board of elections as a political commit- 22 tee in conformance with this article. Such person shall comply with all 23 disclosure obligations required for political committees by law. 24 (b) Any person who has registered with the state board of elections 25 pursuant to paragraph (a) of this subdivision shall disclose to the 26 state board of elections electronically, once a week on Friday any 27 contribution to such person over one thousand dollars or expenditures by 28 such person over five thousand dollars made prior to thirty days before 29 any primary, general, or special election. 30 (c) Any person who has registered with the state board of elections 31 pursuant to paragraph (a) of this subdivision shall disclose to the 32 state board of elections electronically, within twenty-four hours of 33 receipt, any contribution to such person over one thousand dollars or 34 expenditure by such person over five thousand dollars made within thirty 35 days before any primary, general, or special election. 36 (d) Any independent expenditure or electioneering communication made 37 after the close of the period to be covered in the last statement filed 38 before any primary, general or special election, but before such 39 election, shall be reported within twenty-four hours in the same manner 40 as provided for in subdivision two of section 14-108 of this title. 41 [(d)] (e) A knowing and willful violation of the provisions of this 42 subdivision shall subject the person to a civil penalty equal to five 43 thousand dollars or the cost of the communication, whichever is greater, 44 in a special proceeding or civil action brought by the board or imposed 45 directly by the board of elections. 46 4. The disclosures required by subdivision three of this section shall 47 include, in addition to any other information required by law: 48 (a) the name, address, occupation and employer of the person making 49 the statement; 50 (b) the name, address, occupation and employer of the person making 51 the independent expenditure; 52 (c) the name, address, occupation and employer of any person providing 53 a contribution, gift, loan, advance or deposit of one thousand dollars 54 or more for the independent expenditure, or the provision of services 55 for the same, and the date it was given;S. 7506 5 1 (d) the dollar amount paid for each independent expenditure or electi- 2 oneering communication, the name and address of the person or entity 3 receiving the payment, the date the payment was made and a description 4 of the independent expenditure; [and] 5 (e) the election to which the independent expenditure or electioneer- 6 ing communication pertains and the name of the clearly identified candi- 7 date or the ballot proposal referenced[.]; 8 (f) if the independent spender makes independent expenditures or elec- 9 tioneering communications using exclusively funds in a segregated bank 10 account consisting of funds that were paid directly to such account by 11 persons other than the independent spender that controls the account, 12 for each such payment to the account, the aggregate amount of all such 13 payments made by the person after January first of the year in which the 14 primary, general, or special election is held for a ballot proposal or 15 the public office sought; but only if such payment was made by a person 16 who made payments to the account in an aggregate amount of one thousand 17 dollars or more after January first of the year in which the primary, 18 general, or special election is held for a ballot proposal or the public 19 office sought; and 20 (g) if the independent spender makes independent expenditures or elec- 21 tioneering communications using funds other than funds in a segregated 22 bank account described in paragraph (f) of this subdivision, for each 23 payment to the independent spender: 24 (i) the name and address of each person who made such payment during 25 the period covered by the statement; 26 (ii) the date and amount of such payment; and 27 (iii) the aggregate amount of all such payments made by the person 28 after January first of the year in which the primary, general, or 29 special election is held for a ballot proposal or the public office 30 sought; but only if such payment was made by a person who made payments 31 to the independent spender in an aggregate amount of one thousand 32 dollars or more after January first of the year in which the primary, 33 general, or special election is held for a ballot proposal or the public 34 office sought. 35 5. A copy of all political communications paid for by the independent 36 expenditure, including but not limited to broadcast, cable or satellite 37 schedules and scripts, advertisements, pamphlets, circulars, flyers, 38 brochures, letterheads and other printed matter and statements or infor- 39 mation conveyed to one thousand or more members of a general public 40 audience by computer or other electronic devices shall be filed with the 41 state board of elections with the statements required by this section. 42 6. Any report of a loan that is made for an independent expenditure 43 shall include written evidence of the indebtedness. 44 7. (a) When an independent spender that is an entity making independ- 45 ent expenditures or electioneering communications of one hundred dollars 46 or more aggregating five thousand dollars or more in the twelve months 47 preceding the election for communications that refer to any single 48 candidate, it is required to report: 49 (i) all contributions from other entities since the first day of the 50 calendar year preceding the year of the election; and 51 (ii) all contributions aggregating one thousand dollars or more 52 accepted from an individual during the twelve months preceding the 53 election. 54 (b) Each contribution shall be disclosed in the reporting period in 55 which it was received. For each contribution, the independent spender 56 shall provide:S. 7506 6 1 (i) for each contribution accepted from another entity, the entity's 2 name, address and type of organization; 3 (ii) for each contribution accepted from an individual, the individ- 4 ual's name and address; and 5 (iii) the date of receipt and amount of each such contribution. 6 (c) Contributions that are earmarked for an explicitly stated non-e- 7 lectoral purpose are not required to be reported; provided, however, 8 that records of these contributions must be maintained and may be 9 requested by the board to verify their qualifications for this 10 exemption. 11 8. Every statement required to be filed pursuant to this section shall 12 be filed electronically with the state board of elections. 13 [7.] 9. The state board of elections shall promulgate regulations with 14 respect to the statements required to be filed by this section and shall 15 provide forms suitable for such statements. 16 § 6. Subdivisions 1 and 3 of section 14-114 of the election law, 17 subdivision 1 as amended by chapter 79 of the laws of 1992, paragraphs a 18 and b of subdivision 1 as amended by chapter 659 of the laws of 1994 and 19 subdivision 3 as amended by chapter 517 of the laws of 1986, are amended 20 to read as follows: 21 1. The following limitations apply to all contributions to candidates 22 for election to any public office or for nomination for any such office, 23 or for election to any party positions, and to all contributions to 24 political committees working directly or indirectly with any candidate 25 to aid or participate in such candidate's nomination or election, other 26 than any contributions to any party committee or constituted committee: 27 a. In any election for a public office to be voted on by the voters of 28 the entire state, or for nomination to any such office, no contributor 29 may make a contribution to any candidate or political committee, and no 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 nomination to public office, [the product of the total33number of enrolled voters in the candidate's party in the state, exclud-34ing voters in inactive status, multiplied by $.005, but such amount35shall be not less than four thousand dollars nor more than twelve] two 36 thousand six hundred dollars [as increased or decreased by the cost of37living adjustment described in paragraph c of this subdivision], and 38 (ii) in the case of any election to a public office, [twenty-five] two 39 thousand six hundred dollars [as increased or decreased by the cost of40living adjustment described in paragraph c of this subdivision]; 41 provided however, that the maximum amount contributed by any contributor 42 or accepted by any candidate or political committee for both a primary 43 and a general election shall not exceed two thousand six hundred 44 dollars; and provided further that the maximum amount which may be so 45 contributed or accepted[, in the aggregate,] from any candidate's child, 46 parent, grandparent, brother [and] or sister, [and] or the spouse of any 47 such persons, shall not exceed [in the case of any nomination to public48office an amount equivalent to the product of the number of enrolled49voters in the candidate's party in the state, excluding voters in inac-50tive status, multiplied by $.025, and in the case of any election for a51public office, an amount equivalent to the product of the number of52registered voters in the state excluding voters in inactive status,53multiplied by $.025] two thousand six hundred dollars. For the purposes 54 of this subdivision, the term "child" shall include persons eighteen 55 years of age or older.S. 7506 7 1 b. In any other election for party position or for election to a 2 public office or for nomination for any such office, no contributor may 3 make a contribution to any candidate or political committee and no 4 candidate or political committee may accept any contribution from any 5 contributor, which [is in the aggregate amount greater than] shall not 6 exceed: (i) in the case of any election for party position, or for 7 nomination to public office, the product of the total number of enrolled 8 voters in the candidate's party in the district in which he is a candi- 9 date, excluding voters in inactive status, multiplied by $.05, or two 10 thousand six hundred dollars, and (ii) in the case of any election for a 11 public office, the product of the total number of registered voters in 12 the district, excluding voters in inactive status, multiplied by $.05, 13 or two thousand six hundred dollars, however in the case of a nomination 14 within the city of New York for the office of mayor, public advocate or 15 comptroller, such amount shall be not less than four thousand dollars 16 nor more than twelve thousand dollars [as increased or decreased by the17cost of living adjustment described in paragraph c of this subdivision]; 18 in the case of an election within the city of New York for the office of 19 mayor, public advocate or comptroller, twenty-five thousand dollars [as20increased or decreased by the cost of living adjustment described in21paragraph c of this subdivision]; in the case of a nomination for state 22 senator, [four] two thousand six hundred dollars [as increased or23decreased by the cost of living adjustment described in paragraph c of24this subdivision]; in the case of an election for state senator, [six] 25 two thousand [two] six hundred [fifty] dollars [as increased or26decreased by the cost of living adjustment described in paragraph c of27this subdivision]; in the case of an election or nomination for a member 28 of the assembly, [twenty-five] two thousand six hundred dollars [as29increased or decreased by the cost of living adjustment described in30paragraph c of this subdivision]; but in no event shall any such maximum 31 [exceed fifty thousand dollars or] be less than one thousand dollars; 32 provided however, that the maximum amount which may be so contributed or 33 accepted[, in the aggregate,] from any candidate's child, parent, grand- 34 parent, brother [and] or sister, [and] or the spouse of any such 35 persons, shall not exceed in the case of any election for party position 36 or nomination for public office an amount equivalent to the number of 37 enrolled voters in the candidate's party in the district in which he is 38 a candidate, excluding voters in inactive status, multiplied by $.25 and 39 in the case of any election to public office, an amount equivalent to 40 the number of registered voters in the district, excluding voters in 41 inactive status, multiplied by $.25; or [twelve], two thousand six 42 hundred [fifty] dollars, [whichever is greater,] or in the case of a 43 nomination or election of a state senator, [twenty] two thousand six 44 hundred dollars, [whichever is greater,] or in the case of a nomination 45 or election of a member of the assembly [twelve] two thousand [five] six 46 hundred dollars[, whichever is greater, but in no event shall any such47maximum exceed one hundred thousand dollars]; provided, however, that 48 the maximum amount contributed by any contributor or accepted by any 49 candidate or political committee for both a primary and a general 50 election shall not exceed two thousand six hundred dollars; and 51 provided, further that the maximum amount which may be so contributed or 52 accepted from any candidate's child, parent, grandparent, brother or 53 sister, or the spouse of any such persons, shall not exceed two thousand 54 six hundred dollars for the nomination and election to a public office. 55 For the purposes of this subdivision, the term "child" shall mean 56 persons eighteen years of age or older.S. 7506 8 1 [c. At the beginning of each fourth calendar year, commencing in nine-2teen hundred ninety-five, the state board shall determine the percentage3of the difference between the most recent available monthly consumer4price index for all urban consumers published by the United States5bureau of labor statistics and such consumer price index published for6the same month four years previously. The amount of each contribution7limit fixed in this subdivision shall be adjusted by the amount of such8percentage difference to the closest one hundred dollars by the state9board which, not later than the first day of February in each such year,10shall issue a regulation publishing the amount of each such contribution11limit. Each contribution limit as so adjusted shall be the contribution12limit in effect for any election held before the next such adjustment.] 13 3. As used in this section the term "contributor" shall [not] include 14 a party committee supporting the candidate of such party or a consti- 15 tuted committee supporting the candidate of such party. 16 § 7. Subdivision 6 of section 14-114 of the election law is REPEALED. 17 § 8. Subdivision 10 of section 14-114 of the election law, as added by 18 chapter 79 of the laws of 1992, is amended to read as follows: 19 10.[a.] No contributor may make a contribution to a party or consti- 20 tuted committee and no such committee may accept a contribution from any 21 contributor which, in the aggregate, is greater than [sixty-two] ten 22 thousand [five hundred] dollars per annum. 23 [b. At the beginning of each fourth calendar year, commencing in nine-24teen hundred ninety-five, the state board shall determine the percentage25of the difference between the most recent available monthly consumer26price index for all urban consumers published by the United States27bureau of labor statistics and such consumer price index published for28the same month four years previously. The amount of such contribution29limit fixed in paragraph a of this subdivision shall be adjusted by the30amount of such percentage difference to the closest one hundred dollars31by the state board which, not later than the first day of February in32each such year, shall issue a regulation publishing the amount of such33contribution limit. Such contribution limit as so adjusted shall be the34contribution limit in effect for any election held before the next such35adjustment.] 36 § 9. Subdivision 2 of section 14-116 of the election law, as amended 37 by chapter 260 of the laws of 1981, is amended to read as follows: 38 2. a. Notwithstanding [the provisions of subdivision one of this39section, any corporation or an organization financially supported in40whole or in part, by such corporation may make expenditures, including41contributions, not otherwise prohibited by law, for political purposes,42in an amount not to exceed five thousand dollars in the aggregate in any43calendar year; provided that no public utility shall use revenues44received from the rendition of public service within the state for45contributions for political purposes unless such cost is charged to the46shareholders of such a public service corporation] any other provision 47 of law to the contrary, no contribution, loan, loan guarantee or other 48 security for such a loan from any corporation, limited liability compa- 49 ny, limited liability partnership or partnership, other than in the 50 regular course of the lender's business, may be accepted by a candidate 51 or a political committee, other than a corporation, limited liability 52 company, limited liability partnership or partnership that is a poli- 53 tical committee, for all nominations to any office or election to any 54 office. 55 b. A loan made to a candidate or political committee, other than a 56 constituted committee, by any person, firm or association shall beS. 7506 9 1 repaid by the date of the primary, special or general election, as the 2 case may be, or such loan shall be considered a contribution by such 3 person, firm or association including any person endorsing, cosigning, 4 guaranteeing, collateralizing or other providing security for the loan. 5 § 10. Subdivision 3 of section 14-124 of the election law is REPEALED. 6 § 11. The election law is amended by adding a new section 14-125 to 7 read as follows: 8 § 14-125. New York state business contract database. 1. a. As used in 9 this section: 10 (i) the term "business relationships with the state" shall mean any 11 contract for the procurement of goods, services or construction that is 12 entered into or in effect with the state of New York or any agency or 13 entity affiliated thereto not awarded through a competitive bid process 14 pursuant to articles nine and eleven of the state finance law. Business 15 relationships with the state shall not mean any person or entity 16 rejected from participation in such a contract or any person or entity 17 not participating in such a contract within twenty-four months of any 18 election. 19 (ii) the term "New York state business contract database" shall mean a 20 database created, operated, maintained and updated by the state comp- 21 troller accessible to the public which contains the names of persons who 22 have business relationships with the state. Such database shall be 23 created, operated, maintained and updated by the state comptroller in a 24 manner so as to ensure its reasonable accuracy and completeness; 25 provided, however, that in no event shall such database be updated less 26 frequently than once a month in any general election year. Such database 27 shall enable members of the public to determine if a given person has a 28 business relationship with the state. 29 (iii) the term "person" shall include any chief executive officer, 30 chief financial officer or chief operating officer of such entity or 31 persons serving in an equivalent capacity, any person employed in a 32 senior managerial capacity regarding such entity, or any person with an 33 interest in such entity which exceeds ten percent of the value of such 34 entity at fair market value. 35 (iv) the term "senior managerial capacity" shall mean a high level 36 supervisory capacity, either by virtue of title or duties, in which 37 substantial discretion and oversight is exercised over the solicitation, 38 letting or administration of business transactions with the state, 39 including contracts, franchises, concession, grants, economic develop- 40 ment agreements and application for land use approvals. 41 b. Any database maintained by the comptroller as of the effective date 42 of this section may serve as the New York state business contract data- 43 base upon certification by the comptroller to the chairman of the 44 campaign finance board that such database fulfills the requirements of 45 this section. Every state agency or authority of the state including any 46 entity affiliated thereto shall provide the comptroller with such infor- 47 mation as is necessary to construct, modify and maintain such database 48 in a timely manner. 49 2. a. Neither a candidate participating in the voluntary campaign 50 finance program established pursuant to this article, nor a political 51 committee of such candidate shall accept contributions for a covered 52 election which in the aggregate exceeds four hundred dollars from a 53 person or entity who has a business relationship with the state. 54 b. Neither a candidate who does not participate in a voluntary 55 campaign finance program pursuant to this article nor a political 56 committee of such candidate shall accept contributions for a coveredS. 7506 10 1 election which in the aggregate exceeds four hundred dollars from a 2 person or entity who has a business relationship with the state. 3 c. No contribution pursuant to this section to a candidate or to a 4 political committee of such candidate shall be eligible for matching 5 contributions pursuant to title two of this article. 6 d. If the campaign finance board determines that any contribution to a 7 candidate or to the political committee of such candidate violates the 8 provisions of this section, the campaign finance board shall notify such 9 candidate within twenty days of such determination and such candidate or 10 candidate's political committee shall make a reasonable attempt to 11 return such contribution to the contributor; provided, however, that if 12 such candidate or the political committee of such candidate is unable to 13 return such contribution, such monies shall be paid to the campaign 14 finance board for payment into the New York state campaign finance fund 15 pursuant to section ninety-nine-z of the state finance law. 16 e. The state comptroller and the chairman of the campaign finance 17 board shall promulgate such rules and regulations as the comptroller and 18 the chairman deem necessary for the administration of this section. 19 § 12. The article heading of article 14 of the election law is amended 20 to read as follows: 21 CAMPAIGN [RECEIPTS AND EXPENDITURES] FINANCE 22 § 13. Sections 14-100 through 14-130 of article 14 of the election law 23 are designated title 1 and a new title heading is added to read as 24 follows: 25 CAMPAIGN RECEIPTS AND EXPENDITURES 26 § 14. Article 14 of the election law is amended by adding a new title 27 2 to read as follows: 28 TITLE II 29 MATCHING FINANCING 30 Section 14-200. Applicability and definitions. 31 14-202. Reporting requirements. 32 14-204. Contribution and receipt limitations. 33 14-206. Proof of compliance. 34 14-208. Eligibility. 35 14-212. Payment of matching funds. 36 14-214. Use of matching funds; qualified campaign expenditures. 37 14-216. Campaign finance board; general powers and duties. 38 14-218. Audits and repayments. 39 14-220. Civil enforcement. 40 14-222. Criminal penalties. 41 14-224. Reports. 42 14-226. Debates. 43 14-228. Distributions from campaign finance fund. 44 § 14-200. Applicability and definitions. This title shall apply exclu- 45 sively to the financing of campaigns of candidates for the nomination 46 for election, and for election to, the offices of governor, lieutenant 47 governor, state comptroller, attorney general, member of the assembly, 48 state senator and delegate to a constitutional convention. For purposes 49 of this title, the following terms shall have the following meanings: 50 1. "Authorized committee" means a political committee designated by a 51 candidate pursuant to section 14-202 of this title to receive contrib- 52 utions and make expenditures in support of such candidate's campaign. NoS. 7506 11 1 more than one authorized committee may be designated by a candidate in 2 any election cycle. 3 2. "Board" or "campaign finance board" means the board created by 4 section 14-216 of this title to administer the campaign finance fund. 5 3. "Candidate" means any candidate for nomination for election, or for 6 election to, the offices of governor, lieutenant governor, state comp- 7 troller, attorney general, member of the assembly, state senator and 8 delegate to a constitutional convention whether such candidate is a 9 "participating candidate" or "nonparticipating candidate" as defined in 10 this section. 11 4. "Contribution" means: 12 (a) any gift, subscription, outstanding loan (to the extent provided 13 for in section 14-114 of this article), advance, or deposit of money or 14 anything of value, made in connection with the nomination for election, 15 or election, of any candidate, or made to promote the success or defeat 16 of a political party or principle, or of any ballot proposal; 17 (b) any payment, by any person other than a candidate or an authorized 18 committee, made in connection with the nomination for election or 19 election of any candidate, or any payment made to promote the success or 20 defeat of a political party or principle, or of any ballot proposal 21 including but not limited to compensation for the personal services of 22 any individual which are rendered in connection with a candidate's 23 election or nomination without charge; provided however, that none of 24 the foregoing shall be deemed a contribution if it is made, taken or 25 performed by a candidate or his or her spouse or by a person or a poli- 26 tical committee independent of the candidate or his or her agents or 27 political committees. For purposes of this title, the term "independent 28 of the candidate or his or her agents or political committees" shall 29 mean that the candidate or his or her agents or political committee did 30 not authorize, request, suggest, foster or cooperate in any such activ- 31 ity; and provided further, that the term contribution shall not include: 32 (i) the value of services provided without compensation by individuals 33 who volunteer a portion or all of their time on behalf of a candidate or 34 political committee; 35 (ii) the use of real or personal property and the cost of invitations, 36 food and beverages voluntarily provided by an individual to a candidate 37 or political committee on the individual's residential premises for 38 candidate-related activities to the extent such services do not exceed 39 five hundred dollars in value; 40 (iii) the travel expenses of any individual who on his or her own 41 behalf volunteers his or her personal services to any candidate or poli- 42 tical committee to the extent such expenses are unreimbursed and do not 43 exceed five hundred dollars in value; and 44 (iv) expenditures by a bona fide membership organization in support of 45 the following activities by members of the organization who are volun- 46 teering their time on behalf of a candidate, not to exceed twenty-five 47 dollars per member who volunteer for: (1) transportation of volunteers 48 to and from campaign activities; (2) cost of feeding volunteers while 49 volunteering for the campaign; and (3) materials such as badges and 50 clothing that identifies the name of the organization or candidate; and 51 (c) any funds received by a political committee from another political 52 committee to the extent such funds do not constitute a transfer. 53 5. "Contributor" means an entity, including, but not limited to, 54 natural persons, associations and bona fide membership organizations, 55 that makes a contribution, as defined in subdivision four of this 56 section and pursuant to section 14-116 of this article.S. 7506 12 1 6. "Covered election" means any primary election for nomination, 2 special or general election for election, to the offices of governor, 3 lieutenant governor, state comptroller, attorney general, member of the 4 assembly, state senator and delegate to a constitutional convention. 5 7. "Election cycle" means (a) the four year period starting the day 6 after the general election and ending on the day of the next succeeding 7 general election for the offices of governor, lieutenant governor, state 8 comptroller and attorney general, (b) the two year period starting the 9 day after the general election and ending on the date of the next 10 succeeding general election for candidates for the offices of state 11 senator and member of the assembly, and (c) six months prior to any 12 special election ending on the day after such special election. 13 8. "Expenditure" means any gift, subscription, advance, payment, or 14 deposit of money or anything of value, or a contract to make any gift, 15 subscription, payment, or deposit of money or anything of value, made in 16 connection with the nomination for election, or election, of any candi- 17 date. Expenditures made by contract are deemed made when such funds are 18 obligated. 19 9. "Fund" means the campaign finance fund created by section ninety- 20 nine-z of the state finance law. 21 10. "Family or household members" mean the following individuals: 22 (a) persons related by consanguinity or affinity; 23 (b) persons legally married to one another; 24 (c) persons formerly married to one another regardless of whether they 25 still reside in the same household; 26 (d) persons who have a child in common regardless of whether such 27 persons are married or have lived together at any time; or 28 (e) persons who are not related by consanguinity or affinity and who 29 are or have been in an intimate relationship regardless of whether such 30 persons have lived together at any time. 31 11. "Item with significant value" means any item, including any item 32 valued at twenty-five dollars or more. 33 12. "Legislative leader" means any of the following: the temporary 34 president of the senate; the speaker of the assembly; the minority lead- 35 er of the senate; or the minority leader of the assembly. 36 13. "Matchable contribution" means a contribution, contributions or 37 such portion of a contribution or contributions made by a natural person 38 residing in the state of New York at the time of such contribution, with 39 a value not to exceed two hundred fifty dollars, to a participating 40 candidate for any primary and a contribution, contributions or such 41 portion of a contribution or contributions made by a natural person 42 residing in the state of New York at the time of such contribution with 43 a value not to exceed two hundred fifty dollars to a participating 44 candidate for a general election held in the same election cycle or to a 45 participating candidate in a special election that has been reported in 46 full to the state board of elections in accordance with sections 14-102, 47 14-104 and 14-108 of this article by the candidate's authorized commit- 48 tee and has been contributed on or before the date of the applicable 49 primary or general or special election in any election cycle. Any 50 contribution, contributions, or such portion of a contribution or 51 contributions determined to be invalid for matching funds by the 52 campaign finance board pursuant to the provisions of this title may not 53 be treated as a matchable contribution. In addition, the following 54 contributions are not matchable: (a) loans; (b) in-kind contributions of 55 property, goods, or services; (c) contributions in the form of the 56 purchase price paid for an item with significant value; (d) anonymousS. 7506 13 1 contributions or contributions whose source is not itemized as required 2 by section 14-202 of this title; (e) contributions received during a 3 previous election cycle; (f) illegal contributions; and (g) contrib- 4 utions from individuals under the age of eighteen years at the time the 5 contribution is made. 6 14. "Nonparticipating candidate" shall mean a candidate for the office 7 of governor, lieutenant governor, state comptroller, attorney general, 8 member of the assembly, state senator or delegate to a constitutional 9 convention for a covered election who fails to file a written certif- 10 ication in the form of an affidavit pursuant to section 14-208 of this 11 title. 12 15. "Participating candidate" shall mean any candidate for nomination 13 for election, or election, to the offices of governor, lieutenant gover- 14 nor, state comptroller, attorney general, member of the assembly, state 15 senator and delegate to a constitutional convention who files a written 16 certification in the form of an affidavit pursuant to section 14-208 of 17 this title. 18 16. "Political committee" means a committee as defined in section 19 14-100 of this article. 20 17. "Matching funds" means monies paid from the campaign finance fund 21 to the authorized committee of participating candidates pursuant to this 22 title. 23 18. "Qualified campaign expenditure" shall mean an expenditure for 24 which matching funds may be used. 25 19. "Threshold for eligibility" shall mean the amount of matchable 26 contributions that a candidate's authorized committee must receive in 27 total in order for such candidate to qualify for matching funds under 28 this article. 29 20. "Transfer" shall mean any exchange of funds or any thing of value 30 between political committees authorized by the same candidate taking 31 part solely in his or her campaign. 32 § 14-202. Reporting requirements. 1. Every participating candidate 33 shall designate only one authorized committee to be eligible to receive 34 contributions of matching funds. Before receiving any such contribution 35 or making any expenditure therefrom for a covered election, each partic- 36 ipating candidate shall notify the state board of elections and the 37 campaign finance board as to the existence of his or her eligible 38 authorized committee that has been designated and approved by such 39 candidate. Such authorized committee shall, before receiving any 40 contribution or making any expenditure for a covered election: (a) 41 designate a treasurer; (b) obtain a tax identification number from the 42 internal revenue service; and (c) submit to the state board of 43 elections, either in writing or electronically, the identification 44 number of the committee designated to be eligible to receive matching 45 funds. 46 2. Disclosure. (a) Every participating candidate shall submit such 47 reports to the state board of elections as required by title one of this 48 article. Copies of such reports shall also be submitted to the campaign 49 finance board created pursuant to this article at the same time such 50 reports are submitted to the state board of elections. 51 (b) The campaign finance board shall review each disclosure report 52 filed with the state board of elections pursuant to title one of this 53 article and shall inform participating candidates and political commit- 54 tees including the authorized committee, of relevant questions the board 55 has concerning: (i) compliance with requirements of this title and of 56 the rules issued by the board; and (ii) qualifications for receivingS. 7506 14 1 public matching funds pursuant to this title. In the course of such 2 review, the board shall give candidates and political committees includ- 3 ing the authorized committee, an opportunity to respond to and correct 4 potential violations and give candidates an opportunity to address ques- 5 tions the board has concerning their matchable contribution claims or 6 other issues concerning eligibility for receiving matching funds pursu- 7 ant to this title. Nothing in this paragraph shall preclude the board 8 from subsequently reviewing such a disclosure report and taking any 9 action otherwise authorized by this title. 10 (c) Only itemized contributions contained in reports filed with the 11 state board of elections shall be eligible for matching funds pursuant 12 to this title. 13 § 14-204. Contribution and receipt limitations. 1. A participating 14 candidate and his or her authorized committee shall not accept, either 15 directly or indirectly: 16 (a) total contributions from any one contributor that exceed two thou- 17 sand six hundred dollars in any primary in an election cycle for the 18 offices of governor, lieutenant governor, state comptroller, attorney 19 general, member of the assembly, state senator and delegate to a consti- 20 tutional convention and two thousand six hundred dollars for a general 21 or special election in an election cycle for the offices of governor, 22 lieutenant governor, state comptroller, attorney general, member of the 23 assembly, state senator or delegate to a constitutional convention, 24 provided, however, that not more than two thousand six hundred dollars 25 may be received by a candidate from a contributor per election cycle; or 26 (b) any contribution from a political committee that has not regis- 27 tered with the state board of elections or has not registered with the 28 appropriate entity as required by law. 29 2. All monetary contributions and all matching funds accepted by a 30 candidate's authorized committee shall be deposited into an account with 31 a bank licensed by the department of financial services held in the name 32 of the authorized political committee within ten business days of 33 receipt. Each authorized committee shall have no more than one checking 34 account. Monetary contributions, other than matching funds, may be 35 invested in accordance with the provisions of law relating thereto. 36 3. Contributions to candidates in covered elections shall, for each 37 election cycle, in all other respects, be subject to the limitations and 38 provisions of title one of this article. 39 § 14-206. Proof of compliance. Candidates and political committees 40 shall maintain such records of receipts and expenditures for a covered 41 election as may be required by the campaign finance board. Candidates 42 and political committees shall obtain and furnish to the board any 43 information it may request relating to the financial transactions or 44 contributions of candidates and political committees and furnish such 45 documentation and other proof of compliance with this title as may be 46 requested by the board. Candidates and political committees shall main- 47 tain copies of such records for a period of five years following a 48 general election. 49 § 14-208. Eligibility. 1. To be eligible for matching funds pursuant 50 to this title, a candidate must: (a) be a candidate for the offices of 51 governor, lieutenant governor, state comptroller, attorney general, 52 member of the assembly, state senator or delegate to a constitutional 53 convention in a covered election; (b) satisfy all the requirements of 54 law to have his or her name on the ballot; (c) in the case of a covered 55 general election, be opposed by another candidate on the ballot who is 56 not a write-in candidate; (d) submit a certification in the form of anS. 7506 15 1 affidavit, in such form as may be prescribed by the campaign finance 2 board, that sets forth his or her agreement to comply with the terms and 3 conditions for the provision of such funds in each covered election 4 which shall be filed with such board no later than June first of an 5 election year; (e) be certified as a participating candidate by such 6 board not later than two weeks after the filing of such affidavit; (f) 7 not make, and not have made, expenditures from, or use, his or her 8 personal funds or property or personal funds or property jointly held 9 with his or her spouse, domestic partner, or child in connection with 10 his or her nomination for election or election to a covered office 11 except as a contribution to his or her authorized committee in an amount 12 that exceeds the applicable contribution limit of an individual contrib- 13 utor to candidates for the office that he or she is seeking; (g) meet 14 the threshold for eligibility set forth in subdivision two of this 15 section; and (h) abide by the requirements set forth in this title and 16 chapter during the post-election period. 17 2. The threshold for eligibility for matching funds for candidates in 18 a primary, general or special election for the following offices shall 19 be: 20 (a) governor in a primary or general election. The receipt of not less 21 than six hundred fifty thousand dollars from at least six thousand five 22 hundred matchable contributions in single amounts of no more than two 23 hundred fifty dollars from natural persons residing in the state; 24 (b) lieutenant governor in a primary election and state comptroller or 25 attorney general in a primary or general election. The receipt of not 26 less than two hundred thousand dollars from at least two thousand match- 27 able contributions in single amounts of no more than two hundred fifty 28 dollars from natural persons residing in the state; 29 (c) state senators in a primary, general or special election. The 30 receipt of not less than twenty thousand dollars in matchable contrib- 31 utions in single amounts of no more than two hundred fifty dollars from 32 natural persons residing in the state, including at least ten thousand 33 dollars from at least one hundred contributors who reside in the senate 34 district or reside in any portion of any county which constitutes any 35 measure of the district in which the seat is to be filled; 36 (d) members of the assembly in a primary, general or special election. 37 The receipt of not less than ten thousand dollars in matchable contrib- 38 utions in single amounts of no more than two hundred fifty dollars from 39 natural persons residing in the state, including at least five thousand 40 dollars from at least fifty contributors who reside in the assembly 41 district or reside in any portion of any county which constitutes any 42 measure of the district in which the seat is to be filled; 43 (e) at-large delegate to a constitutional convention in a primary or a 44 general election. The receipt of not less than twenty thousand dollars 45 in matchable contributions in single amounts of no more than two hundred 46 fifty dollars from natural persons residing in the state; and 47 (f) district delegate to a constitutional convention in a primary or 48 general election. The receipt of not less than five thousand dollars in 49 at least fifty matchable contributions in single amounts of no more than 50 two hundred fifty dollars from natural persons residing in the district 51 or in the constituent county or residing in any portion of any county 52 which constitutes any measure of the district in which the seat is to be 53 filled. 54 3. (a) Candidates who are contested in a primary election and who do 55 not seek matching funds shall not be eligible for matching funds for theS. 7506 16 1 general election in that year. The provisions of this subdivision shall 2 not apply to candidates for the office of lieutenant governor. 3 (b) Candidates who are unopposed in a general or special election 4 shall not be eligible to receive matching funds. 5 (c) No candidate for election to an office in a primary, general or 6 special election who has elected to participate in the voluntary 7 campaign financing system shall be deemed opposed and be eligible for 8 matching funds unless there is at least one other candidate, as defined 9 by subdivision seven of section 14-100 of this article for such office 10 for such election. 11 (d) Any participating candidate meeting the threshold for eligibility 12 in a primary election shall be deemed to have met the threshold for 13 eligibility for such office in any other election held in the same 14 election cycle. 15 (e) No participating candidate for nomination to an office who is 16 unopposed in a primary election shall be eligible for matching for qual- 17 ified campaign expenditures, provided, however, that where a contest 18 occurs in a primary for the nomination of at least one other party for 19 office, the authorized committee of an unopposed participating candidate 20 for nomination may raise and spend an amount equal to one-half of the 21 matching funds receipt limit for such office, as fixed by this title for 22 candidates who have elected to accept matching funds, with contributions 23 of up to two thousand six hundred dollars per contributor pursuant to 24 section 14-204 of this title. 25 § 14-212. Payment of matching funds. 1. No matching funds shall be 26 paid to an authorized committee unless the campaign finance board deter- 27 mines that the participating candidate has qualified pursuant to this 28 title. Payment shall not exceed the amounts specified in this section 29 and may be made only to the participating candidate's authorized commit- 30 tee. No matching funds shall be used except to reimburse or pay for 31 qualified campaign expenditures actually and lawfully incurred or to 32 repay loans used to pay qualified campaign expenditures. 33 2. If the threshold for eligibility is met, the participating candi- 34 date's authorized committee shall receive payment for qualified campaign 35 expenditures of six dollars of matching funds for each one dollar of 36 matchable contributions for a primary election and six dollars of match- 37 ing funds for each one dollar of matchable contributions for a general 38 or special election for all matchable contributions received after Janu- 39 ary first of the year in which such primary or general election to be 40 held and reported to the board. 41 3. (a) Matching funds received by participating candidates and their 42 authorized committees in a primary election shall not exceed: 43 (i) the sum of five million five hundred thousand dollars for the 44 office of governor; 45 (ii) the sum of two million seven hundred fifty thousand dollars for 46 the offices of lieutenant governor, state comptroller and attorney 47 general; 48 (iii) the sum of eight hundred twenty-five thousand dollars for the 49 office of state senator; 50 (iv) the sum of four hundred twelve thousand five hundred dollars for 51 the office of member of the assembly; 52 (v) the sum of one hundred seventy-five thousand dollars for an 53 at-large delegate to a constitutional convention; and 54 (vi) the sum of fifty thousand dollars for a district delegate to a 55 constitutional convention.S. 7506 17 1 (b) Matching funds received by participating candidates and their 2 authorized committees in a general or special election shall not exceed: 3 (i) the sum of eight million two hundred fifty thousand dollars for 4 the offices of governor and lieutenant governor; 5 (ii) the sum of four million one hundred twenty-five thousand dollars 6 for the offices of state comptroller and attorney general; 7 (iii) the sum of eight hundred twenty-five thousand dollars for the 8 office of state senator; 9 (iv) the sum of four hundred twelve thousand five hundred dollars for 10 the office of member of the assembly; 11 (v) the sum of one hundred seventy-five thousand dollars for an 12 at-large delegate to a constitutional convention; and 13 (vi) the sum of fifty thousand dollars for a district delegate to a 14 constitutional convention. 15 4. No matching funds shall be paid to any participating candidates in 16 a primary election any earlier than the day that such candidate is 17 certified as being on the ballot for such primary election. 18 5. No matching funds shall be paid to any participating candidates in 19 a general election any earlier than the day after the day of the primary 20 election held to nominate candidates for such election. 21 6. No matching funds shall be paid to any participating candidate who 22 has been disqualified or whose designating petitions have been declared 23 invalid by the appropriate board of elections or a court of competent 24 jurisdiction until and unless such finding is reversed by a higher 25 authority. No payment from the fund in the possession of such a candi- 26 date or such candidate's participating committee on the date of such 27 disqualification or invalidation may thereafter be expended for any 28 purpose except the payment of liabilities incurred before such date. All 29 such moneys shall be repaid to the fund. 30 7. The commissioner of taxation and finance shall make all payments of 31 matching funds to participating candidates as soon as practicable, but 32 no later than five days after submission by the participating candidate 33 of a campaign contribution report filed with the state board of 34 elections in compliance with this article. The campaign finance board 35 shall verify eligibility for and amount of matching funds within three 36 days after receipt of such contribution report. Upon determination of 37 eligibility of a participating candidate for matching funds and of 38 amount of such matching funds, the campaign finance board shall submit 39 within one day a duly approved, certified and executed voucher to the 40 department of taxation and finance requesting payment of such matching 41 funds and payment thereof shall be made to the participating candidate's 42 authorized committee not less than one day after such voucher is 43 received by the department of taxation and finance. If any of the time 44 limits in this title for payment fall on a weekend or holiday, payment 45 shall be made on the next business day. 46 8. The campaign finance board and the department of taxation and 47 finance shall promulgate rules to facilitate electronic fund transfers 48 directly from the fund into an authorized committee's bank account. 49 § 14-214. Use of matching funds; qualified campaign expenditures. 1. 50 Matching funds provided under the provisions of this title may be used 51 only by an authorized committee for expenditures to further the partic- 52 ipating candidate's nomination for election, or election, including 53 payment for debts incurred within one year before an election to further 54 the participating candidate's nomination for election or election. 55 2. Such matching funds may not be used for: (a) an expenditure that 56 violates any law or regulation; (b) an expenditure in excess of the fairS. 7506 18 1 market value of services, materials, facilities or other item of signif- 2 icant value received in exchange; (c) an expenditure made after the 3 candidate has been finally disqualified from the ballot; (d) an expendi- 4 ture for an obligation incurred after the only remaining opponent of the 5 candidate has been finally disqualified from the ballot; (e) an expendi- 6 ture made by cash payment; (f) a contribution or loan made to another 7 candidate or political committee; (g) an expenditure to support or 8 oppose another candidate or political committee; (h) gifts, except 9 brochures, buttons, signs and other printed campaign material; (i) legal 10 fees to defend against a criminal charge; or (j) a payment to an immedi- 11 ate family member of the participating candidate. 12 § 14-216. Campaign finance board; general powers and duties. 1. There 13 shall be a board within the state board of elections known as the 14 "campaign finance board" composed of seven members, of which one member, 15 who shall be the chairperson, shall be appointed by the governor with 16 the advice and consent of the senate, one member shall be appointed by 17 the state comptroller, one member shall be appointed by the attorney 18 general, one member shall be appointed by the temporary president of the 19 senate, one member shall be appointed by the speaker of the assembly, 20 one member shall be appointed by the minority leader of the senate and 21 one member shall be appointed by the minority leader of the assembly. 22 No member of the campaign finance board shall hold elective office, nor 23 shall any member be a lobbyist as defined in subdivision (a) of section 24 one-c of the legislative law. The members shall first be appointed to 25 serve as follows: (a) two members, one appointed by the temporary presi- 26 dent of the senate and one appointed by the minority leader of the 27 assembly for a term of two years, (b) two members, one appointed by the 28 temporary president of the senate and one appointed by the speaker of 29 the assembly for a term of three years, (c) one member appointed by the 30 attorney general for a term of four years, (d) one member appointed by 31 the comptroller for a term of five years and (e) the chairperson shall 32 serve for a term of six years. Members appointed thereafter shall be 33 appointed for terms of six years. 34 2. Each initial member's term shall commence on January first, two 35 thousand seventeen. In case of a vacancy in the office of a member, a 36 member shall be appointed according to the original manner of appoint- 37 ment. Each member shall be a resident of the state of New York and 38 registered to vote therein. Each member shall agree not to make and 39 shall not make contributions to any candidate or authorized committee 40 for nomination for election or for election to the offices of governor, 41 lieutenant governor, state comptroller, attorney general, member of the 42 assembly, state senator and delegate to a constitutional convention. No 43 member shall serve as an officer of a political party or committee or be 44 a candidate or participate in any capacity in a campaign by a candidate 45 for nomination for election, or for election to the offices of governor, 46 lieutenant governor, state comptroller, attorney general, member of the 47 assembly, state senator and delegate to a constitutional convention. An 48 officer or employee of the state or any state agency shall not be eligi- 49 ble to be a member of the campaign finance board. 50 3. The members of the campaign finance board shall be entitled to 51 receive payment for actual and necessary expenses incurred in the 52 performance of their duties as members of such board. 53 4. A member of the campaign finance board may be removed by his or her 54 appointing authority solely for substantial neglect of duty, gross 55 misconduct in office, inability to discharge the powers or duties of the 56 office, or violation of the provisions of this chapter, after writtenS. 7506 19 1 notice and opportunity for a public hearing pursuant to rules developed 2 by the campaign finance board. 3 5. The campaign finance board may employ or shall utilize existing 4 staff of the state board of elections as may be necessary, including an 5 executive director and a counsel, and make necessary expenditures 6 subject to appropriation. The campaign finance board shall retain an 7 independent auditor to perform ongoing audits of each covered election 8 by contract entered into pursuant to section one hundred sixty-three of 9 the state finance law. 10 6. In addition to the enforcement powers, and any other powers and 11 duties specified by law, the campaign finance board shall: 12 (a) (i) render advisory opinions with respect to questions arising 13 under this title upon the written request of a candidate, an officer of 14 a political committee or member of the public, or upon its own initi- 15 ative; (ii) promulgate rules regarding reasonable times to respond to 16 such requests; and (iii) make public the questions of interpretation for 17 which advisory opinions will be considered by the campaign finance board 18 and its advisory opinions, including by publication on its website; 19 (b) develop a program for informing candidates and the public as to 20 the purpose and effect of the provisions of this title, including by 21 means of a website; 22 (c) have the authority to promulgate such rules and regulations and 23 prescribe such forms as the campaign finance board deems necessary for 24 the administration of this title; and 25 (d) in conjunction with the state board of elections develop an inter- 26 active, searchable computer database that shall contain all information 27 necessary for the proper administration of this title including informa- 28 tion on contributions to and expenditures by candidates and their 29 authorized committees and distributions of moneys from the fund and 30 shall be accessible to the public on the state board of elections' 31 website. 32 7. Consistent with the provisions of the civil service law and subdi- 33 vision seventeen of section seventy-three of the public officers law, 34 and notwithstanding the provisions of any other law to the contrary, all 35 positions on the staff of the campaign finance board shall be classified 36 in the exempt class of the civil service. 37 8. The campaign finance board's administration of the fund shall be 38 governed by the provisions of this title and section ninety-nine-z of 39 the state finance law. 40 9. The campaign finance board and its proceedings shall be governed by 41 the state administrative procedure act and subject to articles six and 42 seven of the public officers law. 43 10. The campaign finance board may take such other actions as are 44 necessary and proper to carry out the purposes of this title. 45 § 14-218. Audits and repayments. 1. The campaign finance board is 46 hereby empowered to audit and examine, pursuant to generally accepted 47 accounting principles, all matters relating to the performance of its 48 functions and any other matter relating to the administration of this 49 title. Such audits shall be conducted as frequently as the campaign 50 finance board deems necessary to ensure compliance with this title. 51 Every candidate who receives matching funds under this title shall also 52 be audited by the campaign finance board post-election. The cost of 53 complying with a post-election audit shall be borne by the candidate's 54 authorized committee. A candidate who has received matching funds under 55 this title must maintain a reserve of at least one percent of the total 56 amount of matching funds received by such candidate in his or herS. 7506 20 1 campaign account to comply with the post-election audit. A candidate who 2 runs in both a primary and a general election, must maintain a reserve 3 of one percent of the total amount of matching funds received by such 4 candidate for both his or her primary and general election. A candidate 5 may use matching funds, private funds or a combination of matching and 6 private funds to comply with a post-election audit. The campaign finance 7 board shall issue to each campaign audited the final post-election audit 8 report that details its findings and shall provide such audit to the 9 governor and legislative leaders and make such audit report available on 10 the state board of elections' website. 11 2. If the campaign finance board determines that any portion of a 12 payment made to a candidate's authorized committee from the fund 13 exceeded the amount that such candidate was eligible to receive pursuant 14 to this title, the campaign finance board shall notify such committee 15 and such committee shall pay to the campaign finance board an amount 16 equal to the amount of the excess payment; provided, however, that if 17 the erroneous payment was due to an error made by the campaign finance 18 board, then the erroneous payment will be offset against any future 19 payment, if any. The participating candidate and the candidate's author- 20 ized committee shall be jointly and severally liable for any repayments 21 due to the campaign finance board for deposit by such board into the New 22 York state campaign finance fund. 23 3. If the campaign finance board determines that any portion of a 24 payment made to a candidate's authorized committee from the New York 25 state campaign finance fund was used for purposes other than qualified 26 campaign expenditures, the campaign finance board shall notify such 27 committee of the amount so disqualified and such committee shall pay to 28 the campaign finance board an amount equal to such disqualified amount. 29 Such monies shall be deposited into the New York state campaign finance 30 fund established pursuant to section ninety-nine-z of the state finance 31 law. The candidate and the candidate's authorized committee shall be 32 jointly and severally liable for any repayments due to the campaign 33 finance board. 34 4. A participating candidate shall pay to the campaign finance board 35 for deposit into the campaign finance fund unspent matching funds for an 36 election not later than thirty days after all liabilities for the 37 election campaign have been paid and in any event, not later than twenty 38 days after the date on which the campaign finance board issues its final 39 audit report for the participating candidate's committee; provided, 40 however, that all unspent matching funds for a participating candidate 41 shall be immediately due and payable to the campaign finance board for 42 deposit into the New York state campaign finance fund upon its determi- 43 nation that the participant willfully delayed the post-election audit 44 process. A participating candidate may make post-election expenditures 45 only for routine activities involving nominal costs associated with 46 winding up a campaign and responding to the post-election audit pursuant 47 to section 14-228 of this title. For accounting purposes, all private 48 and personal contributions shall be considered spent before revenue from 49 the fund is spent or committed. 50 § 14-220. Civil enforcement. 1. Any person or authorized committee who 51 knowingly and willfully fails to make a filing as required by the 52 provisions of this title shall be subject to a fine to be imposed by the 53 campaign finance board in an amount not to exceed five thousand dollars. 54 2. Any person or authorized committee who knowingly and willfully 55 violates any other provision of this title or any rule promulgated here-S. 7506 21 1 under shall be subject to a fine to be imposed by the campaign finance 2 board in an amount not to exceed ten thousand dollars. 3 3. Fines authorized under this section will be imposed by the campaign 4 finance board after a hearing at which the subject person or authorized 5 committee shall be given an opportunity to be heard. Such hearing shall 6 be held in such manner and upon such notice as may be prescribed by the 7 rules of the campaign finance board. For purposes of conducting such 8 hearings, the campaign finance board shall be deemed to be an agency 9 within the meaning of article three of the state administrative proce- 10 dure act and shall adopt rules governing the conduct of adjudicatory 11 proceedings and appeals taken pursuant to a proceeding commenced under 12 article seventy-eight of the civil practice law and rules relating to 13 the assessment of the fines herein authorized. 14 4. The campaign finance board shall publish on the state board of 15 elections' website the final order adjudicating any matter brought 16 pursuant to this section. 17 5. Any fines imposed by the campaign finance board pursuant to this 18 section shall be deposited into the New York state campaign finance 19 fund. 20 § 14-222. Criminal penalties. 1. Any person who knowingly and willful- 21 ly fails to make a filing required by the provisions of this title with- 22 in ten days after the date provided for such, or anyone that knowingly 23 and willfully violates any other provision of this title shall be guilty 24 of a misdemeanor and, in addition to such other penalties as may be 25 provided by law, shall be subject to a fine not to exceed the amount of 26 ten thousand dollars. 27 2. Any person who knowingly and willfully contributes, accepts or aids 28 or participates in the contribution or acceptance of a contribution in 29 an amount exceeding an applicable maximum specified in this article 30 shall be guilty of a misdemeanor and shall be subject to a fine not to 31 exceed the amount of ten thousand dollars. 32 3. Any person who knowingly makes a false statement or knowingly omits 33 a material fact to the campaign finance board or an auditor designated 34 by the campaign finance board during any audit conducted pursuant to 35 section 14-218 of this title shall be guilty of a class E felony. 36 4. In addition any other sentence lawfully imposed upon a finding of 37 guilt in a criminal prosecution commenced pursuant to the provisions of 38 this section, the court may order a defendant to repay to the campaign 39 finance board any matching funds obtained as a result of any criminal 40 conduct. 41 5. All such prosecutions for criminal acts under this article shall be 42 prosecuted by the attorney general. 43 6. Any and all fines imposed pursuant to this section shall be made 44 payable to the campaign finance board for deposit into the New York 45 state campaign finance fund. 46 § 14-224. Reports. The campaign finance board shall submit a report to 47 the governor and legislative leaders on or before February first, two 48 thousand nineteen, and every two years thereafter, which shall include: 49 1. a list of the participating and nonparticipating candidates in 50 covered elections and the votes received by each candidate in those 51 elections; 52 2. the amount of contributions and loans received, and expenditures 53 made, on behalf of participating and nonparticipating candidates; 54 3. the amount of matching funds each participating candidate received, 55 spent and repaid pursuant to this article;S. 7506 22 1 4. analysis of the effect of this title on the election campaign for 2 the offices of governor, lieutenant governor, state comptroller, attor- 3 ney general, member of the assembly, state senator and delegate to a 4 constitutional convention, including its effect on the sources and 5 amounts of private financing, the level of campaign expenditures, voter 6 participation, the number of candidates, the candidates' abilities to 7 campaign effectively for public office, and the diversity of candidates 8 seeking and elected to office; 9 5. recommendations for changes or amendments to this title, including 10 changes in contribution limits, thresholds for eligibility and limits on 11 total matching funds; and 12 6. any other information that the campaign finance board deems rele- 13 vant. 14 § 14-226. Debates. The campaign finance board shall promulgate regu- 15 lations to facilitate debates among participating candidates. Partic- 16 ipating candidates are required to participate in at least one debate 17 before the primary election and in at least one debate before the gener- 18 al election for which the candidate receives public funds, unless the 19 participating candidate is running unopposed. A nonparticipating candi- 20 date may be a party to such debates. 21 § 14-228. Distributions from campaign finance fund. 1. This section 22 governs the campaign finance board's distribution of funds from the 23 campaign finance fund established by section ninety-nine-z of the state 24 finance law, except as otherwise provided in this title. 25 2. No moneys shall be paid to any participating candidate who has been 26 disqualified by the campaign finance board or whose designating 27 petitions have been declared invalid by the state board of elections or 28 a court of competent jurisdiction until and unless such finding is 29 reversed by an appellate court. 30 3. No payment from the fund in the possession of such a candidate or 31 such a candidate's authorized committee on the date of such disquali- 32 fication or invalidation may thereafter be expended for any purpose 33 except the payment of liabilities incurred before that date. All excess 34 matching moneys paid to a disqualified candidate shall be returned to 35 the fund not less than thirty days after the general election for those 36 participating candidates who received matching moneys for the general 37 election, and otherwise, not less than thirty days after the primary 38 election for those participating candidates who received matching moneys 39 solely for the primary election. 40 4. (a) Participating candidates shall pay to the campaign finance 41 board unspent matching campaign funds from an election not later than 42 thirty days after all liabilities for the election have been paid and, 43 in any event, not less than twenty days after the date upon which the 44 campaign finance board issues its final audit report for the participat- 45 ing candidate's committee; provided, however, that all unspent matching 46 campaign funds for a participating candidate shall be immediately due 47 and payable to the campaign finance board upon its determination that 48 the participating candidate has, without just cause, delayed the post-e- 49 lection audit process. Unspent matching campaign funds determinations 50 made by the campaign finance board shall be based on the participating 51 candidate committee's receipts and expenditures. The campaign finance 52 board may also consider any other relevant information revealed in the 53 course of its audits or investigations or the investigations by any 54 other agency. 55 (b) (i) A participating candidate may not use receipts for any purpose 56 other than disbursements in the preceding election until all unspentS. 7506 23 1 matching campaign funds have been repaid. A participating candidate 2 shall have the burden of demonstrating that a post-election expenditure 3 is for the preceding election. 4 (ii) Before repaying unspent matching campaign funds, a participating 5 candidate may make post-election expenditures only for routine activ- 6 ities involving nominal costs associated with winding up a campaign and 7 responding to the post-election audit. Such expenditures may include: 8 payment of utility bills and rent; reasonable staff salaries and 9 consultant fees for responding to a post-election audit; reasonable 10 moving expenses related to closing a campaign office; a holiday card 11 mailing to contributors, campaign volunteers, and staff members; thank 12 you notes for contributors, campaign volunteers, and staff members; 13 payment of taxes and other reasonable expenses for compliance with 14 applicable tax laws; and interest expenses. Routine post-election 15 expenditures that may be paid for with unspent matching campaign funds 16 do not include such items as post-election mailings other than as 17 specifically provided for in this subparagraph; making contributions; or 18 holding any post-election day event, including, but not limited to, any 19 meal or any party. Unspent campaign funds may not be used for transition 20 or inauguration activities. 21 5. All monies received by the campaign finance board pursuant to this 22 section shall be deposited into the New York state campaign finance fund 23 pursuant to section ninety-nine-z of the state finance law. 24 § 15. The election law is amended by adding a new section 16-103 to 25 read as follows: 26 § 16-103. Proceedings as to matching funds. 1. The determination of 27 eligibility pursuant to section 14-208 of this chapter and any question 28 or issue relating to payments for qualified campaign expenditures pursu- 29 ant to section 14-212 of this chapter may be contested in a proceeding 30 instituted in the supreme court, Albany county, by any aggrieved candi- 31 date. 32 2. A proceeding with respect to such a determination of eligibility or 33 payment for qualified campaign expenditures pursuant to section 14-212 34 of this chapter shall be instituted within seven days after such deter- 35 mination was made. The campaign finance board shall be made a party to 36 any such proceeding. 37 3. Upon the campaign finance board's failure to receive the amount due 38 from a participating candidate or such candidate's committee after the 39 issuance of written notice of such amount due, as required by subdivi- 40 sion four of section 14-218 of this chapter, such board is authorized to 41 institute a special proceeding or civil action in supreme court, Albany 42 county, to obtain a judgment for any amounts determined to be payable to 43 the campaign finance board as a result of an examination and audit made 44 pursuant to title two of article fourteen of this chapter. 45 4. The campaign finance board is authorized to institute a special 46 proceeding or civil action in supreme court, Albany county, to obtain a 47 judgment for civil penalties determined to be payable to the fair 48 elections board pursuant to section 14-218 of this chapter. 49 § 16. The general business law is amended by adding a new section 50 359-gg to read as follows: 51 § 359-gg. Additional surcharge. In addition to any penalty authorized 52 by section three hundred fifty-nine-g of this article or any damages or 53 other compensation recoverable including, but not limited to, any 54 settlement authorized by section sixty-three or sixty-three-c of the 55 executive law, there shall be assessed thereon an additional surcharge 56 in the amount of ten percent of the total amount of such penalty,S. 7506 24 1 damages or settlement. Such surcharge shall be deposited in the New York 2 state campaign finance fund established by section ninety-nine-z of the 3 state finance law. 4 § 17. The state finance law is amended by adding a new section 99-z to 5 read as follows: 6 § 99-z. New York state campaign finance fund. 1. There is hereby 7 established in the joint custody of the commissioner of taxation and 8 finance and the state comptroller a special fund to be known as the "New 9 York state campaign finance fund". 10 2. Such fund shall consist of all revenues received from the surcharge 11 imposed pursuant to section three hundred fifty-nine-gg of the general 12 business law, revenues received from campaign finance fund check-off 13 pursuant to section six hundred thirty-e of the tax law, revenues from 14 the abandoned property fund pursuant to section ninety-five of this 15 article, and all other moneys credited or transferred thereto from any 16 other fund or source pursuant to law. Nothing contained in this section 17 shall prevent the state from receiving grants, gifts, bequests or volun- 18 tary contributions for the purposes of the fund as defined in this 19 section and depositing them into the fund according to law. Monies in 20 the fund shall be kept separate from and not commingled with other funds 21 held in the joint custody of the commissioner of taxation and finance 22 and the state comptroller. 23 3. Moneys of the fund, following appropriation by the legislature, may 24 be expended for the purposes of making payments to candidates pursuant 25 to title two of article fourteen of the election law. Moneys shall be 26 paid out of the fund by the state comptroller on vouchers certified or 27 approved by the campaign finance board established pursuant to title two 28 of article fourteen of the election law, or the duly designated repre- 29 sentative of such board, in the manner prescribed by law, not more than 30 one working day after a voucher duly certified, approved and executed by 31 such board or its representative in the form prescribed by the state 32 comptroller is received by the state comptroller. 33 § 18. The tax law is amended by adding a new section 630-e to read as 34 follows: 35 § 630-e. Contribution to New York state campaign finance fund. Effec- 36 tive for any taxable year commencing on or after January first, two- 37 thousand seventeen, an individual in any taxable year may elect to 38 contribute to the New York state campaign finance fund. Such contrib- 39 ution shall be in the amount of five dollars and shall not reduce the 40 amount of state tax owed by such individual. The commissioner shall 41 include space on the personal income tax return to enable a taxpayer to 42 make such contribution. Notwithstanding any other provision of law, all 43 revenues collected pursuant to this section shall be credited to the New 44 York state campaign finance fund and used only for those purposes 45 enumerated in section ninety-nine-z of the state finance law. 46 § 19. Section 95 of the state finance law is amended by adding a new 47 subdivision 5 to read as follows: 48 5. Notwithstanding any provision of this section authorizing the 49 transfer of any moneys in the abandoned property fund to the general 50 fund, in January of each year in which a state general election is to be 51 held pursuant to law, or at least six weeks prior to any state special 52 election, the comptroller, upon warrant or voucher by the chair of the 53 campaign finance board or his or her duly appointed representative, 54 shall transfer moneys of the abandoned property fund into the campaign 55 finance fund pursuant to section ninety-nine-z of this article. On March 56 thirty-first of the year following such general election year, suchS. 7506 25 1 chair shall transfer to the general fund any surplus moneys of the 2 campaign finance fund as of such date. 3 § 20. Severability. If any clause, sentence, subdivision, paragraph, 4 section or part of this act be adjudged by any court of competent juris- 5 diction to be invalid, such judgment shall not affect, impair or invali- 6 date the remainder thereof, but shall be confined in its operation to 7 the clause, sentence, subdivision, paragraph, section or part thereof 8 directly involved in the controversy in which such judgment shall have 9 been rendered. 10 § 21. This act shall take effect January 1, 2017; provided, however, 11 that all candidates will be eligible to participate in the optional 12 campaign finance system beginning with the 2018 general election.
