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A04980 Summary:

BILL NOA04980E
 
SAME ASSAME AS S04705-C
 
SPONSORSilver (MS)
 
COSPNSRMillman, Wright, Morelle, Weinstein, Gottfried, Peoples-Stokes, Kavanagh, Weprin, Scarborough, Lupardo, Schimel, Bronson, Thiele, Mosley, Davila
 
MLTSPNSRAbinanti, Benedetto, Braunstein, Brennan, Brindisi, Brook-Krasny, Buchwald, Cahill, Camara, Clark, Colton, Cook, Dinowitz, Englebright, Fahy, Farrell, Galef, Gantt, Glick, Gunther, Hevesi, Hooper, Jacobs, Jaffee, Kellner, Kim, Lavine, Lentol, Lifton, Markey, Mayer, McDonald, Moya, Nolan, O'Donnell, Ortiz, Otis, Paulin, Perry, Pichardo, Quart, Rosenthal, Rozic, Russell, Sepulveda, Simotas, Steck, Sweeney, Titus, Weisenberg
 
Amd El L, generally; add S359-gg, Gen Bus L; add S92-y, St Fin L; add S630-d, Tax L
 
Enacts the "2014 fair elections act"; relates to providing for optional partial public financing of certain election campaigns in this state; relates to identification of the source of certain political contributions.
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A04980 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A4980E
 
SPONSOR: Silver (MS)
  TITLE OF BILL: An act to amend the election law, in relation to enacting the "2014 Fair Elections Act"; to amend the election law, the state finance law and the tax law, in relation to providing for optional partial public financing of certain election campaigns in this state; and to amend the general business law, in relation to additional surcharges   SUBJECT AND PURPOSE: To provide optional public financing of campaigns for statewide and state legislative offices and constitutional convention delegates.   SUMMARY AND DESCRIPTION OF PROVISIONS: This bill would create an optional public financing system for certain elections within the state of New York. Specifically, the bill adds a new Title III to Article 14 to provide for public financing of Primary and general election campaigns for statewide office, primary, general and special election campaigns for state legislative office and primary and general election campaigns for constitutional convention delegates. The "E Print" updates this legislation to remove provisions contained in the original print which have since been enacted in the 2014-15 Execu- tive budget creating an independent office of campaign finance enforce- ment and regulating the disclosure of so called "independent expendi- tures." Under current law, the newly enacted office of campaign finance enforcement has jurisdiction over all of Article 14 in the Election law. The public financing system that would be enacted under the new Title III in this bill would be staffed and overseen by a fair elections board. A fair elections enforcement counsel would oversee regulation and enforcement of the new public financing system. The bill also contains provisions to require the disclosure of interme- diaries and contributions collected on behalf of donors for candidates by intermediaries. The so called LLC loophole which treats said organ- izations like natural people for purposes of contribution limits would also be closed.   OPTIONAL PUBLIC FINANCING OF ELECTIONS:   CRITERIA FOR PARTICIPATION: To be eligible for public financing, a candidate for nomination or election to a statewide office, state legislative office or as a consti- tutional convention delegate must satisfy the legal requirements for having his or her name on the ballot, elect to participate in the public financing system, meet the threshold for eligibility and agree to file required statements and authorize a single participating committee.   ELIGIBILITY THRESHOLD: Governor: Must collect not less than $650,000 from at least 6,500 match- able contributions made up of sums of up to $250 per individual contrib- utor who resides in New York State. Lt. Governor (primary only), Attorney Gen. & Comptroller: Must collect not less than $200,000 from at least 2,000 matchable contributions made up of sums of up to $250 per individual contributor who resides in New York State. Senate: Must collect not less than $20,000 from at least 200 matchable contributions made up of sums of up to $250 per individual contributor who resides in New York State including at least $10,000 from at least 100 individual contributors who reside in the senate district, or in any part of any county in the Senate district, in which the seat is to be filled. Assembly: Must collect not less than $10,000 from at least 100 matchable contributions made up of sums of up to $250 per individual contributor who resides in New York State including at least $5,000 from at least 50 individual contributors who reside in the assembly district, or in any part of any county in the Assembly district, in which the seat is to be filled. At-large Delegate to a Constitutional Convention: Must collect not less than $20,000 from at least 200 matchable contributions made an of sums of up to $250 per individual contributor who resides in New York State. District Delegate to a Constitutional Convention: Must collect not less than $5,000 from at least 50 matchable contributions made up of sums of up to $250 per individual contributor who resides in the district, or any part of any county in the district, in which the seat is to be filled.   MATCHABLE CONTRIBUTIONS: Matchable contributions may be collected after January first of the year of the primary or general-election. For a special election, may be collected up to six months before the election. Consist of the net amount of contributions after deduction of the value of any food, drink or entertainment provided in exchange for the contribution. Only contributions from persons who reside in New York State are matchable.   THE MATCH: Eligible contributions up to $250 are matched at the rate of $6 for every $1.   MISC. RULES: To receive public funds for a primary election, a participating candi- date must agree to receive public funding for the general election. Participating candidates who are unopposed in a primary election may not receive public funds. Participating candidates are deemed unopposed unless there is at least one other candidate, as defined by § 14-100(7) of the election law, in the race for the same office. Participating candidates that are unopposed may raise private funds of up to 50% of the expenditure limit if there is a contest in the primary for at least one other party for such office. Such funds may only be raised with contributions of up to $2000 per contributor. Candidates who are challenged in a primary and who do not seek public funds are not eligible for public funds for the general election. Candidates who are unopposed in a general or special election may not receive public funds.   PERMISSIBLE AND PROHIBITED USES OF PUBLIC FUNDS: Public funds may be used only for qualified campaign expenditures during the year of the primary or general election. For a special election, such funds may only be used in the 3 months prior to the election. They may not be used for expenditures in violation of law, for payments to a candidate or to a relative of the candidate (or to any business entity of which such a person is an officer or employee or has a. ten percent or greater ownership interest) in excess of the fair market value for services rendered, for payments in excess of fair market value, for any expenditure after the candidate or the candidate's only remaining oppo- nent has been disqualified (until and unless reversed), to challenge an opponent's petitions or certificates, for non-campaign related food, drink or entertainment, or for gifts. Public funds may not be given as a campaign contribution or a transfer.   CONTRIBUTION LIMIT: All candidates who choose to participate in the public financing system have a contribution limit of $2,000 per contributor.   PUBLIC FUNDS RECEIPT LIMITS: The following limits on public funds apply to all candidates who partic- ipate in the public financing system: General Election Primary Governor $12,000,000 $9,000,000 Lt. Governor --------- $6,000,000 Attorney General $8,000,000 Same as Lt. Governor & Comptroller State Senator $ 400,000 $350,000 Member of Assembly $ 200,000 $150,000 At-Large Delegate $ 350,000 $ 75,000 District Delegate $ 75,000 $ 50,000 NOTE: A participating candidate may raise unlimited amounts of private money subject to the $2,000 per contributor limitation.   PARTY EXPENDITURES IN SUPPORT OF PARTICIPATING CANDIDATES: Notwithstanding the expenditure limits for participating candidates, a state party committee may make the following expenditures for services to participating candidates the party has nominated: Gov. and Lt. Gov. $2,500,000 Att. Gen or Comp. $1,000,000 Senate $100,000 State Assembly $50,000 At-large Delegate $50,000 District Delegate $10,000 * Transfers to a participating candidate may constitute up to 25% of such party expenditures.   ENFORCEMENT: Enforcement of the new Title III will be handled by the fair elections board office of enforcement counsel and also a fair elections board which will sit within the state board of elections. The fair elections board will be comprised of five members. The members of the board will be appointed as follows: one by the Governor and one by each of the four legislative leaders. The fair elections board will appoint a counsel who will oversee and enforce all campaign finance laws, rules and regulations on behalf of the fair elections board. All actions, rules and regulations issued by the fair elections board are subject to review at the discretion of the state board of elections.   DEBATES: Participating candidates are required to participate in at least one debate before the primary election and in at least one debate before the General election for which the candidate receives public funds, unless The participating candidate is running unopposed. A non-participating candidate may be a party to such debates.   SOURCES OF FUNDING: The bill provides for three separate sources of funding for the public financing regime: 1) The bill provides an income tax check-off of $5. Such monies would be paid into a separate fund, known as the New York State Fair elections fund. The taxpayers' tax liability would not be affected by making this designation. 2) In addition, the bill imposes an additional 10% surcharge on recov- eries for fraudulent practices relating to stocks, bonds, other securi- ties as well as all other recoveries having to do with fraud by the Attorney General. 3) If the state fair elections fund lacks the money to pay all properly certified claims, the deficiency will be paid from the general fund.   PENALTIES: CIVIL: * The failure to make proper campaign finance filings, as required by Title III and rules and regulations promulgated thereunder, shall subject the offender to a civil penalty of up to $5000. * Any person or authorized committee who knowingly and willfully violates any other Provision of Title III or any regulations promulgated thereunder shall subject the offender to a civil penalty of up to $10, 000,   CRIMINAL: * All prosecutions under Title III. for criminal acts shall he prose- cuted by the Attorney General. * The failure to make proper campaign finance filings, as required by Title II within 10 days or anyone that willfully violates any other provision of this title shall he guilty of a misdemeanor, and in addi- tion to such other penalties as may be provided by law, shall be subject to a fine not to exceed the amount of $10,000. * Any person who knowingly and willfully contributes, accepts or aids or participates in the acceptance of a contribution in an amount exceeding an applicable maximum specified in this article shall be guilty of a misdemeanor and shall be subject to a fine not to exceed the amount of $10,000. * Any person who knowingly and willfully makes a false statement or knowingly omits a material fact to the fair election board or an auditor designated by the fair elections board during any audit conducted pursu- ant to new section 14-314 of the Election Law shall be guilty of a class E felony. * In addition to any other sentence lawfully imposed upon a finding of guilt in a criminal prosecution commenced under the provisions of this bill, a court may order a defendant to repay to the fair elections board any public matching funds obtained as a result of any criminal conduct. This bill also requires disclosure for "bundlers". Bundlers are those individuals or organizations who aggregate a number of contributions from others and deliver them to a candidate or a candidate's authorized committee.   LEGISLATIVE HISTORY: A9885--D of 2012 & A8902--A of 2009.   JUSTIFICATION: This public financing bill provides a comprehensive yet balanced approach to the public financing of political campaigns. It contains significant but realistic limitations on expenditures and contribution receipts, a means for recovering public funds when they are unspent, excessive or used for prohibited purposes, and penalties for violations of the filing requirements or the expenditure limitations for partic- ipants. The "matching grant" structure of the program has several advantages. It will reduce the amount of time a candidate must spend raising money, leaving more time to address the issues that are important to the public. The matching component allows for participation by private citi- zens throughout the campaign while also conserving resources by ensuring that only candidates who can show substantial voter support and face opposition will be eligible to receive public funds. Overall, the bill strikes a balance that allows challengers and incum- bents to compete fairly while capping the amount of public funds that will be expended.   FISCAL IMPLICATIONS: There could be a cost in 2014 if a comptroller candidate participates. In 2016, there could be costs associated with participating candidates seeking election to state legislative office. In 2018, there could be costs associated with participating candidates seeking election to a statewide office or as a constitutional delegate. Other states that have public financing systems in place have had very low participation rates at first with increasing participation in later elections. The long term cost of the system in New York is unknown.   EFFECTIVE DATE: This act takes effect immediately; provided, however, that candidates for state comptroller will be eligible to participate in the public financing system beginning with the 2014 election, state legislative candidates will be eligible to participate in 2016 and all statewide candidates and constitutional delegates will be eligible to participate in 2018.
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A04980 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         4980--E
                                                                Cal. No. 222
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 13, 2013
                                       ___________
 
        Introduced  by  M.  of  A.  SILVER, MILLMAN, WRIGHT, MORELLE, WEINSTEIN,
          GOTTFRIED, PEOPLES-STOKES,  KAVANAGH,  WEPRIN,  SCARBOROUGH,  LUPARDO,
          SCHIMEL,  BRONSON,  THIELE, MOSLEY, DAVILA -- Multi-Sponsored by -- M.
          of A.  ABINANTI, BENEDETTO, BRAUNSTEIN, BRENNAN, BRINDISI, BROOK-KRAS-

          NY, BUCHWALD, CAHILL, CAMARA, CLARK, COLTON,  COOK,  DINOWITZ,  ENGLE-
          BRIGHT,  FAHY,  FARRELL, GALEF, GANTT, GLICK, GUNTHER, HEVESI, HOOPER,
          JACOBS, JAFFEE, KELLNER, KIM, LAVINE, LENTOL, LIFTON,  MARKEY,  MAYER,
          McDONALD,  MOYA, NOLAN, O'DONNELL, ORTIZ, OTIS, PAULIN, PERRY, PICHAR-
          DO, QUART, ROSA, ROSENTHAL, ROZIC, RUSSELL, SEPULVEDA, SIMOTAS, STECK,
          SWEENEY, TITUS, WEISENBERG -- read once and referred to the  Committee
          on  Election  Law  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended  and  recommitted  to  said  committee  --  again
          reported  from  said  committee  with amendments, ordered reprinted as
          amended and recommitted to said committee -- reported and referred  to
          the  Committee on Codes -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee -- advanced  to

          a third reading, amended and ordered reprinted, retaining its place on
          the  order of third reading -- again amended on third reading, ordered
          reprinted, retaining its place on the order of third reading
 
        AN ACT to amend the election law, in relation to enacting the "2014 Fair
          Elections Act"; to amend the election law, the state finance  law  and
          the  tax  law,  in  relation  to providing for optional partial public
          financing of certain election campaigns in this state;  and  to  amend
          the general business law, in relation to additional surcharges
 
          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 "2014 Fair Elections Act".
     3    §  2.  Legislative findings and declarations. The legislature declares

     4  that is in the public interest to create and ensure a  truly  democratic
     5  political  system  in  which  citizens,  irrespective  of  their income,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02247-38-4

        A. 4980--E                          2
 
     1  status, or financial connections, are enabled and encouraged to  compete
     2  for  public  office.    Therefore, the legislature finds it necessary to
     3  establish a system of public financing for all qualified candidates  for
     4  state  elective  offices  and  constitutional  convention delegates. The
     5  legislature further finds that a new system of public financing would be
     6  best administered by a new "fair elections board" empowered with  effec-

     7  tive  oversight  and  enforcement capabilities dedicated to working with
     8  and assisting candidates excel in the public financing system.
     9    § 3.  Section 3-102 of the election law is amended  by  adding  2  new
    10  subdivisions 3-a and 16-b to read as follows:
    11    3-a.  notwithstanding  subdivision  three  of  this  section, the fair
    12  elections board enforcement counsel, established pursuant to subdivision
    13  six of section 14-316 of this chapter, as it may deem  necessary,  after
    14  the  fair  elections board has considered the matter or matters in ques-
    15  tion shall conduct any investigation necessary to enforce the provisions
    16  of title three of article fourteen of this  chapter  on  behalf  of  the
    17  board of elections.
    18    16-b.  hear  and  consider  the  recommendations of the fair elections

    19  board enforcement counsel regarding the  enforcement  of  violations  of
    20  title  three  of article fourteen of this chapter, as it may deem neces-
    21  sary, after the fair  elections  board  has  considered  the  matter  or
    22  matters in question;
    23    §  4. Subdivision 1 of section 3-104 of the election law is amended by
    24  adding a new paragraph (a-1) to read as follows:
    25    (a-1) There shall also be a unit known as the fair elections  enforce-
    26  ment unit established within the fair elections board.  The head of such
    27  unit  shall  be  the  enforcement  counsel.    Such unit shall have sole
    28  authority within the state board of  elections  to  investigate  alleged
    29  violations  and complaints arising under title three of article fourteen
    30  of this chapter.

    31    § 5. Section 3-104 of the election law is amended by adding twelve new
    32  subdivisions 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19 and 20 to read as
    33  follows:
    34    9. If the fair election board enforcement counsel  determines  that  a
    35  violation  of  title  three  of  article  fourteen  of  this chapter has
    36  occurred which could warrant a civil penalty,  the  enforcement  counsel
    37  shall,  upon his or her discretion, seek to resolve the matter extra-ju-
    38  dicially or commence a special proceeding in the supreme court  pursuant
    39  to section 16-114 of this chapter.
    40    10.    Upon receipt of a complaint and supporting information alleging
    41  any other violation of title three of article fourteen of this  chapter,

    42  the fair elections board enforcement counsel shall analyze the complaint
    43  to  determine  if  an  investigation  should  be  undertaken.  The  fair
    44  elections board enforcement counsel shall, if necessary,  request  addi-
    45  tional information from the complainant to assist such counsel in making
    46  this  determination.  Such  analysis shall include the following: first,
    47  whether the allegations, if true, would constitute a violation of  arti-
    48  cle  fourteen  of  this chapter and, second, whether the allegations are
    49  supported by credible evidence.
    50    11. If the fair elections board enforcement  counsel  determines  that
    51  the  allegations,  if  true,  would  not constitute a violation of title

    52  three of article fourteen of this chapter or that  the  allegations  are
    53  not  supported  by  credible evidence, he or she shall issue a letter to
    54  the complainant dismissing the complaint.
    55    12. If the fair elections board enforcement  counsel  determines  that
    56  the allegations, if true, would constitute a violation of title three of

        A. 4980--E                          3
 
     1  article  fourteen  of this chapter and that the allegations appear to be
     2  supported by  credible  evidence,  he  or  she  shall  notify  the  fair
     3  elections board of (a) his or her intent to resolve the matter extra-ju-
     4  dicially  due  to  the de minimus nature of the violation; or (b) his or

     5  her intent  to  commence  an  investigation,  no  later  than  the  fair
     6  elections  board's next regularly scheduled meeting.  Notification shall
     7  summarize the relevant facts and the applicable law and  shall,  to  the
     8  extent  possible,  protect  from  public  disclosure the identity of the
     9  complainant and the individual subject to the complaint.
    10    13. If, upon considering the fair elections  board  enforcement  coun-
    11  sel's  notice of intent to commence an investigation, the fair elections
    12  board believes that the allegations, if true,  would  not  constitute  a
    13  violation  of  article  fourteen of this chapter, or the allegations are
    14  not supported by credible evidence or, that  on  balance,  the  equities

    15  favor a dismissal of the complaint, the board shall publicly direct that
    16  an  investigation  not  be undertaken no later than sixty days after the
    17  receipt of notification from the fair elections board enforcement  coun-
    18  sel  of  his or her intent to commence an investigation.  In determining
    19  whether the equities favor  a  dismissal  of  the  complaint,  the  fair
    20  elections  board  shall  consider the following factors: (a) whether the
    21  complaint alleges a de minimus violation of  article  fourteen  of  this
    22  chapter;  (b) whether the subject of the complaint has made a good faith
    23  effort to correct the violation; and (c)  whether  the  subject  of  the
    24  complaint  has  a  history of similar violations.  Determinations of the

    25  fair elections board to dismiss a  complaint  and  not  proceed  with  a
    26  formal  investigation  shall  be  voted  upon as provided in subdivision
    27  twelve of section 14-316 of this chapter at an open meeting pursuant  to
    28  article  seven  of  the public officers law, and shall be made on a fair
    29  and equitable basis and without regard to the status of the  subject  of
    30  the complaint.
    31    14.  Absent a timely determination by the fair elections board that an
    32  investigation shall not be undertaken, the fair elections board enforce-
    33  ment counsel shall commence an investigation on a timely basis.  If  the
    34  fair  elections  board  enforcement  counsel  determines that additional
    35  investigative powers, as provided for in subdivisions four, five and six

    36  of section 3-102 of this title, are needed  to  complete  the  counsel's
    37  investigation,  he  or  she  shall  request,  upon  approval of the fair
    38  elections  board,  such  additional  powers  from  the  state  board  of
    39  elections.  Such  powers  shall  be  granted  by the board in public, as
    40  provided in subdivision four of section 3-100 of this title,  only  when
    41  the board finds that further investigation is warranted and justified.
    42    15.  At  the conclusion of its investigation, the fair elections board
    43  enforcement counsel shall provide the fair elections board with a  writ-
    44  ten  recommendation  as  to:  (a)  whether  substantial reason exists to
    45  believe a violation of title three of article fourteen of  this  chapter

    46  has  occurred and, if so, the nature of the violation and any applicable
    47  penalty, as defined in section 14-126, 14-320 or 14-322 of this chapter,
    48  based on the nature of the violation; (b) whether the matter  should  be
    49  resolved  extra-judicially;  (c)  whether a special proceeding should be
    50  commenced in the supreme court to  recover  a  civil  penalty;  and  (d)
    51  whether a referral should be made to a district attorney or the attorney
    52  general  pursuant  to  subdivision  seventeen  of  this  section because
    53  reasonable cause exists to believe a violation warranting criminal pros-
    54  ecution has taken place.
    55    16. The fair elections  board  shall  accept,  modify  or  reject  the
    56  enforcement  counsel's  recommendation  no  later  than sixty days after

        A. 4980--E                          4
 
     1  receipt of such recommendation.  In making its determination, the  board
     2  shall  again  consider:  (a)  whether the complaint alleges a de minimus
     3  violation of article fourteen of this chapter; (b) whether  the  subject
     4  of  the complaint has made a good faith effort to correct the violation;
     5  and (c) whether the subject of the complaint has a  history  of  similar
     6  violations.  All  such determinations shall be voted upon as provided in
     7  subdivision twelve of section 14-316 of this chapter at an open  meeting
     8  pursuant  to article seven of the public officers law, and shall be made
     9  on a fair and equitable basis, without  regard  to  the  status  of  the
    10  subject of the complaint.

    11    17.  (a) If the fair elections board determines, as provided in subdi-
    12  vision sixteen of  this  section,  that  substantial  reason  exists  to
    13  believe  that  a  person, acting as or on behalf of a candidate or poli-
    14  tical committee under circumstances evincing an intent to  violate  such
    15  law,  has unlawfully accepted a contribution in excess of a contribution
    16  limitation established in title three of article fourteen of this  chap-
    17  ter,  which could warrant a civil penalty as provided for in subdivision
    18  three of section 14-126 or subdivision two of  section  14-322  of  this
    19  chapter, the board shall direct the commencement of a special proceeding
    20  in the supreme court.
    21    (b) If the fair elections board determines, as provided in subdivision

    22  sixteen  of  this  section  that  reasonable  cause  exists to believe a
    23  violation of title three of article fourteen of this chapter  warranting
    24  criminal  prosecution  has taken place, the board shall refer the matter
    25  to a district attorney and shall make available to such district  attor-
    26  ney all papers, documents, testimony and findings relevant to its inves-
    27  tigation.  Where reasonable cause exists to believe that a candidate for
    28  the office of attorney general has violated title three of article four-
    29  teen  of  this chapter, the board shall refer the matter to the district
    30  attorney of the appropriate county.
    31    (c) If the fair elections board determines, as provided in subdivision

    32  sixteen of this section  that  reasonable  cause  exists  to  believe  a
    33  violation of title three of article fourteen of this chapter, warranting
    34  criminal  prosecution  has  taken  place,  the  board  shall,  except as
    35  provided in paragraph (b) of this subdivision, refer the matter  to  the
    36  attorney  general and shall make available to the same all papers, docu-
    37  ments, testimony and findings relevant to its investigation.
    38    18. Upon notification that a special proceeding has been commenced  by
    39  a  party other than the fair elections board, pursuant to section 16-114
    40  of this  chapter,  the  fair  elections  board  shall  direct  the  fair
    41  elections   board   enforcement   counsel  to  investigate  the  alleged

    42  violations unless otherwise directed by the court.
    43    19. The fair elections  board  enforcement  counsel  shall  prepare  a
    44  report, to be included in the annual report to the governor and legisla-
    45  ture,  summarizing  the activities of the unit during the previous year.
    46  Such report shall include: (i) the number of complaints  received;  (ii)
    47  the  number  of complaints that were found to need investigation and the
    48  nature of each complaint; and (iii) the number of matters that have been
    49  resolved.   The report shall  not  contain  any  information  for  which
    50  disclosure is not permitted.
    51    20.  The  fair  elections  board  may promulgate rules and regulations
    52  consistent with law to effectuate the provisions of this section.

    53    § 6. The state of New York shall appropriate during each  fiscal  year
    54  to  the  New  York state fair elections board enforcement unit, not less
    55  than thirty-five percent of the appropriation available from the general
    56  fund for the state board of elections to pay for the  expenses  of  such

        A. 4980--E                          5
 
     1  enforcement  unit.    Notwithstanding  section  fifty-one  of  the state
     2  finance law, such funding shall not be decreased by interchange with any
     3  other appropriation.
     4    § 7. The election law is amended by adding a new section 3-111 to read
     5  as follows:
     6    § 3-111. Personal use of campaign funds. Upon written request from any
     7  person  who  is  subject  to  the requirements of section 14-130 of this

     8  chapter, the fair elections board shall render formal  opinions  on  the
     9  requirements  of said provision. An opinion rendered by the board, until
    10  and unless amended or revoked, shall be binding  on  the  board  in  any
    11  subsequent  proceeding  concerning  the person who requested the opinion
    12  and who acted in good faith,  unless  material  facts  were  omitted  or
    13  misstated  by the person in the request for an opinion. Such opinion may
    14  also be relied upon by such person, and may be introduced and  shall  be
    15  defense in any criminal or civil action. Such request shall be confiden-
    16  tial,  but  the board shall publish such opinions provided that the name
    17  of the requesting person and other  identifying  details  shall  not  be

    18  included in the publication.
    19    §  8.  Section  14-100  of the election law is amended by adding a new
    20  subdivision 15 to read as follows:
    21    15. "intermediary"  means  an  individual,  corporation,  partnership,
    22  political  committee,  labor  organization, or other entity which, other
    23  than in the regular course of business as a postal, delivery, or messen-
    24  ger service, delivers any contribution from another person or entity  to
    25  a candidate or an authorized committee.
    26    "Intermediary"  shall  not  include  spouses,  parents,  children,  or
    27  siblings of the person making such contribution.
    28    § 9. Subdivision 1 of section 14-102 of the election law,  as  amended
    29  by  chapter  8  and as redesignated by chapter 9 of the laws of 1978, is
    30  amended to read as follows:

    31    1. The treasurer of every political committee which, or  any  officer,
    32  member  or  agent  of  any  such  committee  who, in connection with any
    33  election, receives or expends any  money  or  other  valuable  thing  or
    34  incurs  any  liability  to pay money or its equivalent shall file state-
    35  ments sworn, or subscribed and bearing a form notice that  false  state-
    36  ments  made  therein are punishable as a class A misdemeanor pursuant to
    37  section 210.45 of the penal law, at the times prescribed by this  [arti-
    38  cle]  title  setting  forth  all  the receipts, contributions to and the
    39  expenditures by and liabilities of the committee, and of  its  officers,
    40  members  and  agents  in  its  behalf. Such statements shall include the
    41  dollar amount of any receipt, contribution  or  transfer,  or  the  fair

    42  market  value  of  any receipt, contribution or transfer, which is other
    43  than of money, the name and  address  of  the  transferor,  contributor,
    44  intermediary,  or  person  from  whom  received,  and if the transferor,
    45  contributor, intermediary, or person is a political committee; the  name
    46  of  and the political unit represented by the committee, the date of its
    47  receipt, the dollar amount of every expenditure, the name and address of
    48  the person to whom it was made or the name of  and  the  political  unit
    49  represented  by the committee to which it was made and the date thereof,
    50  and shall state clearly the purpose of such expenditure. An intermediary
    51  need not be reported for  a  contribution  that  was  collected  from  a
    52  contributor  in connection with a party or other candidate-related event

    53  held at the residence of the person delivering the contribution,  unless
    54  the  expenses  of such event at such residence for such candidate exceed
    55  five hundred dollars or the aggregate contributions received  from  that
    56  contributor  at  such  event  exceed five hundred dollars. Any statement

        A. 4980--E                          6
 
     1  reporting a loan shall have attached to it a copy  of  the  evidence  of
     2  indebtedness.  Expenditures  in  sums  under  fifty  dollars need not be
     3  specifically accounted for by separate items  in  said  statements,  and
     4  receipts   and  contributions  aggregating  not  more  than  ninety-nine
     5  dollars, from any one contributor need not be specifically accounted for
     6  by separate items  in  said  statements,  provided  however,  that  such

     7  expenditures,  receipts  and contributions shall be subject to the other
     8  provisions of section 14-118 of this [article] title.
     9    § 10. Section 14-110 of the election law, as amended by chapter 46  of
    10  the laws of 1984, is amended to read as follows:
    11    §  14-110.  Place  for  filing  statements.  The places for filing the
    12  statements required by this article shall be determined by rule or regu-
    13  lation of the state board of  elections;  provided,  however,  that  the
    14  statements  of a candidate for election to the office of governor, lieu-
    15  tenant governor, attorney general, comptroller, member of  the  legisla-
    16  ture,  delegate  to  a constitutional convention, justice of the supreme
    17  court or for nomination for any such office at a primary election and of
    18  any committee aiding or taking  part  in  the  designation,  nomination,

    19  election  or  defeat  of  candidates  for one or more of such offices or
    20  promoting the success or defeat of a question to  be  voted  on  by  the
    21  voters  of  the  entire  state  shall  be  filed with the state board of
    22  elections and in such other places as the state board of elections  may,
    23  by  rule  or  regulation  provide.    Upon  filing,  the  state board of
    24  elections shall make all statements filed  therewith  readily  available
    25  and accessible to the fair elections board.
    26    § 11. Section 14-112 of the election law, as amended by chapter 930 of
    27  the laws of 1981, is amended to read as follows:
    28    §  14-112.  Political committee authorization statement. Any political
    29  committee aiding or taking part in the election  or  nomination  of  any
    30  candidate, other than by making contributions, shall file, in the office

    31  in  which  the  statements of such committee are to be filed pursuant to
    32  this [article] title, either a sworn verified statement by the treasurer
    33  of such committee  that  the  candidate  has  authorized  the  political
    34  committee  to aid or take part in his election or that the candidate has
    35  not authorized the committee to aid or take part in his election.
    36    § 12. Section 14-116 of the election law, subdivision  1  as  redesig-
    37  nated  by  chapter 9 of the laws of 1978 and subdivision 2 as amended by
    38  chapter 260 of the laws of 1981, is amended to read as follows:
    39    § 14-116. Political contributions by certain  organizations.  1.    No
    40  corporation,  limited liability company or joint-stock association doing
    41  business in this state, except [a corporation or association] an  entity

    42  organized  or  maintained for political purposes only, shall directly or
    43  indirectly pay or use or offer, consent or agree to pay or use any money
    44  or property for or in aid of any political party, committee or organiza-
    45  tion, or for, or in aid of, any corporation, limited liability  company,
    46  joint-stock  or  other association organized or maintained for political
    47  purposes, or for, or in aid of, any candidate for  political  office  or
    48  for  nomination  for such office, or for any political purpose whatever,
    49  or for the reimbursement or indemnification of any person for moneys  or
    50  property so used. Any officer, director, stock-holder, attorney or agent
    51  of any corporation, limited liability company or joint-stock association
    52  which  violates  any of the provisions of this section, who participates
    53  in, aids, abets or advises or consents to any such violations,  and  any

    54  person  who  solicits  or  knowingly  receives  any money or property in
    55  violation of this section, shall be guilty of a misdemeanor.

        A. 4980--E                          7
 
     1    2. Notwithstanding the provisions of subdivision one of this  section,
     2  any  corporation or an organization financially supported in whole or in
     3  part, by such corporation, and any limited liability  company  may  make
     4  expenditures,  including contributions, not otherwise prohibited by law,
     5  for political purposes, in an amount not to exceed five thousand dollars
     6  in  the  aggregate in any calendar year; provided that no public utility
     7  shall use revenues received from the rendition of public service  within
     8  the  state  for contributions for political purposes unless such cost is
     9  charged to the shareholders of such a public service corporation.

    10    § 13. Subdivision 3 of section 14-124 of the election law, as  amended
    11  by chapter 71 of the laws of 1988, is amended to read as follows:
    12    3. The contribution and receipt limits of this article shall not apply
    13  to monies received and expenditures made by a party committee or consti-
    14  tuted committee to maintain a permanent headquarters and staff and carry
    15  on  ordinary activities which are not for the express purpose of promot-
    16  ing the candidacy  of  specific  candidates.  Provided  that  the  funds
    17  described  in  this  subdivision  shall  be prohibited from being trans-
    18  ferred. Provided further, that expenditures made by a party committee or
    19  constituted committee for a political communication in  accordance  with
    20  the  provisions of this subdivision shall not include the name, likeness

    21  or voice of any candidate or elected official.
    22    § 14. Title 1 of article 14 of the election law is amended by adding a
    23  new section 14-132 to read as follows:
    24    § 14-132. Use of contributions in violation of  federal  postal  regu-
    25  lations  prohibited.  No  party  or constituted committee which has been
    26  designated as a not-for-profit organization by the United States  Inter-
    27  nal  Revenue  Service  shall  make  expenditures,  of direct or indirect
    28  contributions or transfers received by such committee, in  violation  of
    29  United States Postal Service regulations.
    30    §  15. Article 14 of the election law is amended by adding a new title
    31  3 to read as follows:
    32                                  TITLE III
    33                              PUBLIC FINANCING

    34  Section 14-300. Applicability of title.
    35          14-302. Definitions.
    36          14-304. Reporting requirements.
    37          14-306. Eligibility.
    38          14-308. Qualified campaign expenditures.
    39          14-310. Optional public financing.
    40          14-312. Contribution and receipt limitations.
    41          14-314. Limitations on the receipt of public funds.
    42          14-316. Fair elections board; general powers and duties.
    43          14-318. Examinations and audits.
    44          14-320. Civil enforcement.
    45          14-322. Criminal penalties.
    46          14-324. Reports.
    47          14-326. Debates.
    48          14-328. Distributions from fair elections fund.

    49    § 14-300. Applicability of title. This title shall only apply to those
    50  candidates who elect to participate in  the  optional  public  financing
    51  system.
    52    §  14-302.  Definitions. As used in this title, unless another meaning
    53  is clearly indicated:
    54    1. The term "board" or "fair elections board" means the board  created
    55  by section 14-316 of this title to administer the fair elections fund.

        A. 4980--E                          8
 
     1    2. The term "eligible candidate" shall mean a candidate for nomination
     2  or  election  to  any  of  the offices of governor, lieutenant governor,
     3  comptroller, attorney general, member of the state legislature, at-large

     4  delegate to a  constitutional  convention  or  district  delegate  to  a
     5  constitutional convention.
     6    3.  The  term "participating committee" shall mean a single authorized
     7  political committee which a candidate certifies is  the  committee  that
     8  will solely be used to participate in the public financing system estab-
     9  lished by this title after January first of the year in which the prima-
    10  ry, general or special election is held for the public office sought.  A
    11  multi-candidate committee may not be a participating committee.
    12    4.  The  term  "participating candidate" shall mean a candidate who is
    13  eligible to participate in the optional public financing  system  estab-
    14  lished  by  this  title,  has  met the threshold for eligibility and has

    15  elected to participate in the public financing system.
    16    5. The term "nonparticipating candidate" shall mean  a  candidate  for
    17  any office eligible for optional public financing under this title for a
    18  covered election who fails to file a statement in the form of an affida-
    19  vit pursuant to section 14-310 of this title.
    20    6.  The  term "matchable contributions" shall mean that portion of the
    21  aggregate contributions made (a) in the case of  a  primary  or  general
    22  election, after January first of the year in which the primary or gener-
    23  al election is held for the public office sought or (b) in the case of a
    24  special  election, within six months of such election by natural persons
    25  resident in the state of New York  to  a  candidate  for  nomination  or

    26  election  to  any of the offices covered by the provisions of this title
    27  which do not exceed two hundred fifty dollars, which have been  reported
    28  in full by the candidate's participating committee to the fair elections
    29  board, including the contributor's full name and residential address.  A
    30  loan  may  not  be  treated as a matchable contribution.   The following
    31  contributions are not matchable:
    32    (a) in-kind contributions of property, goods, or services;
    33    (b) contributions in the form of the purchase price paid for  an  item
    34  with significant intrinsic and enduring value;
    35    (c) contributions in the form of the purchase price paid for or other-
    36  wise induced by a chance to participate in a raffle, lottery, or similar

    37  drawing for valuable prizes;
    38    (d)  money  order  contributions from any one contributor that are, in
    39  the aggregate, greater than one hundred dollars;
    40    (e) contributions from individuals under the age of eighteen years;
    41    (f) contributions from individual vendors to  whom  the  participating
    42  candidate  or  his  or  her principal committee makes an expenditure, in
    43  furtherance of the nomination for election or election  covered  by  the
    44  candidate's  certification,  unless  such  expenditure is reimbursing an
    45  advance.
    46    (g) All contributions received  between  the  day  after  the  general
    47  election  in which the participating candidate is seeking office and the

    48  thirty-first day of December of the year before the year  in  which  the
    49  next general election is to be held, inclusively.
    50    7. The term "qualified campaign expenditure" shall mean an expenditure
    51  for which public funds may be used.
    52    8.  The  term "fund" shall mean the New York state fair elections fund
    53  created by section ninety-two-y of the state finance law.
    54    9. The term "threshold for eligibility" shall mean the amount of total
    55  matchable contributions that the participating committee of an otherwise
    56  eligible candidate must receive, as required by section 14-306  of  this

        A. 4980--E                          9
 
     1  title,  in  order  to  qualify for optional public financing pursuant to
     2  this title.

     3    10. The term "contribution" shall have the same meaning as in subdivi-
     4  sion nine of section 14-100 of this article.
     5    11.  The term "election cycle" shall mean the two year period starting
     6  the day after the last general election for  candidates  for  the  state
     7  legislature  and  shall mean the four year period starting after the day
     8  after the last general election for candidates for statewide office.
     9    § 14-304. Reporting requirements.  1.  Every  participating  candidate
    10  shall not designate more than one authorized committee. Before receiving
    11  any  contribution or making any expenditure for a covered election, each
    12  participating candidate shall notify the fair elections board as to  the

    13  existence  of  his  or her authorized committee that has been designated
    14  and approved by such candidate. Each such  authorized  committee  shall,
    15  before  opening  a committee bank account, receiving any contribution or
    16  making any expenditure for a covered election:
    17    (a) designate a treasurer; and
    18    (b) obtain a tax  identification  number  from  the  internal  revenue
    19  service.
    20    2.  Disclosure. (a) Every participating candidate shall file financial
    21  disclosure reports with the state board  of  elections  as  required  by
    22  title  one of this article. Copies of such reports shall also be submit-
    23  ted to the fair elections board created pursuant to this article at  the

    24  same time such reports are filed with the state board of elections.
    25    (b) The fair elections board shall review each disclosure report filed
    26  with  the state board of elections pursuant to title one of this article
    27  and shall  inform  participating  candidates  and  political  committees
    28  including  the  authorized  committee,  of  relevant  questions the fair
    29  elections board has concerning: (i) compliance with requirements of this
    30  title and of the rules issued by the  fair  elections  board;  and  (ii)
    31  qualification  for  receiving  public  matching  funds  pursuant to this
    32  title. In the course of such review, the fair elections board shall give
    33  candidates and political committees including the authorized  committee,

    34  an  opportunity  to respond to and correct potential violations and give
    35  candidates an opportunity to address questions the board has  concerning
    36  their matchable contribution claims or other issues concerning eligibil-
    37  ity  for receiving public matching funds pursuant to this title. Nothing
    38  in this paragraph shall preclude the board from  subsequently  reviewing
    39  such  a  disclosure report and taking any action otherwise authorized by
    40  this title.
    41    (c) Only itemized contributions contained in reports  filed  with  the
    42  fair  elections  board  shall be eligible for matching funds pursuant to
    43  this title.
    44    § 14-306. Eligibility. 1. To be eligible for optional public financing

    45  under this title, a candidate for nomination or election must:
    46    (a) Meet all the requirements of this chapter and other provisions  of
    47  law to have his or her name on the ballot;
    48    (b)  Be  a  candidate  for  statewide office, the state legislature or
    49  delegate to a constitutional convention at a primary, general or special
    50  election and meet the threshold for eligibility set forth in subdivision
    51  two of this section;
    52    (c) Elect to participate in the public financing system established by
    53  this title not later than seven days after the last day to  file  desig-
    54  nating  petitions  for  the  office such candidate is seeking or, in the
    55  case of a special election, not later than the last day to file nominat-

    56  ing certificates for such office;

        A. 4980--E                         10
 
     1    (d) Agree to obtain and  furnish  to  the  fair  elections  board  any
     2  evidence  it  may  reasonably  request  relating  to his or her campaign
     3  expenditures or contributions and furnish such other proof of compliance
     4  with this title as may be requested by the board;
     5    (e)  Have  a  single  authorized  political  committee which he or she
     6  certifies as the participating committee for the purposes of this title;
     7    (f) Agree to identify accurately in all campaign materials the  person
     8  or entity that paid for such campaign material; and
     9    (g)  For  any candidate electing to participate in the optional public

    10  financing system in the year in which  such  optional  public  financing
    11  system  is  first effective, for the covered office being sought by such
    12  candidate, and, in each subsequent year, those candidates  who  did  not
    13  elect to participate in the optional public financing system in the year
    14  immediately preceding the current year, agree not to expend for campaign
    15  purposes  any  portion  of  any pre-existing funds raised for any public
    16  office or party position prior to the date of electing to participate in
    17  the public financing system as set forth in paragraph (c) of this subdi-
    18  vision.  Nothing in this paragraph shall be construed to limit,  in  any
    19  way,  any  candidate  or  public  official from expending any portion of

    20  pre-existing campaign funds for any  lawful  purpose  other  than  those
    21  related to his or her campaign.
    22    (h)  Agree  not  to  accept  contributions in excess of the limits set
    23  forth in section 14-312 of this title from the time he or she elects  to
    24  participate  in  the  optional  public financing system, as set forth by
    25  paragraph (c) of this section, through the thirty-first day of  December
    26  of  the year before the year in which the next general election is to be
    27  held.
    28    2. The threshold for eligibility for public funding for candidates  in
    29  a  primary,  general or special election for the following offices shall
    30  be:
    31    (a) Governor in a primary or  general  election.  Not  less  than  six

    32  hundred  fifty  thousand dollars from at least six thousand five hundred
    33  matchable contributions made up of sums  of  up  to  two  hundred  fifty
    34  dollars per individual contributor who resides in New York state.
    35    (b)  Lieutenant  governor  in  a  primary  election and comptroller or
    36  attorney general in a primary or general election.   Not less  than  two
    37  hundred  thousand  dollars from at least two thousand matchable contrib-
    38  utions made up of sums of up to two hundred fifty dollars per individual
    39  contributor who resides in New York state.
    40    (c) Members of the state senate  in  a  primary,  general  or  special
    41  election.  Not  less  than  twenty  thousand  dollars  from at least two

    42  hundred matchable contributions made up of sums of  up  to  two  hundred
    43  fifty  dollars  per individual contributor who resides in New York state
    44  including at least ten thousand dollars from at least one hundred  indi-
    45  vidual  contributors  who reside in the senate district or reside in any
    46  portion of any county which constitutes any measure of the  district  in
    47  which the seat is to be filled.
    48    (d) Members of the assembly in a primary, general or special election.
    49  Not  less  than ten thousand dollars from at least one hundred matchable
    50  contributions made up of sums of up to two  hundred  fifty  dollars  per
    51  individual  contributor who resides in New York state including at least

    52  five thousand dollars from at least fifty individuals who reside in  the
    53  assembly  district  or reside in any portion of any county which consti-
    54  tutes any measure of the district in which the seat is to be filled.
    55    (e) At-large delegate to a constitutional convention in a  primary  or
    56  general  election.  Not  less than twenty thousand dollars from at least

        A. 4980--E                         11
 
     1  two hundred matchable contributions made up of sums of up to two hundred
     2  fifty dollars per individual contributor who resides in New York state.
     3    (f)  District  delegate to a constitutional convention in a primary or
     4  general election. Not less than five  thousand  dollars  from  at  least

     5  fifty matchable contributions made up of sums of up to two hundred fifty
     6  dollars per individual contributor who resides in the district or in the
     7  constituent county or resides in any portion of any county which consti-
     8  tutes any measure of the district in which the seat is to be filled.
     9    3.  In  order  to  be  eligible  to  receive public funds in a primary
    10  election a candidate must agree, that in the event such candidate  is  a
    11  candidate  for  such  office  in the general election in such year, that
    12  such candidate will be bound by the provisions of this title, including,
    13  but not limited to, the public funds receipt limits of this title.
    14    4. Candidates who are contested in a primary election and who  do  not

    15  seek public funds shall not be eligible for public funds for the general
    16  election  in  that  year.  The  provisions of this subdivision shall not
    17  apply to candidates for the office of lieutenant governor.
    18    5. Candidates who are unopposed in a general or special election shall
    19  not be eligible to receive public funds.
    20    6. No candidate for election to an office in  a  primary,  general  or
    21  special  election who has elected to participate in the public financing
    22  system shall be deemed opposed and receive public funds unless there  is
    23  at least one other candidate, as defined by subdivision seven of section
    24  14-100 of this article for such office in such election.
    25    §  14-308.  Qualified  campaign expenditures. 1. Public funds provided

    26  under the provisions of this title may only be used for expenditures  by
    27  the participating committee authorized by the candidate to make expendi-
    28  tures  on such candidate's behalf, to further the candidate's nomination
    29  or election after January first of the year  in  which  the  primary  or
    30  general election is held for the office sought, for services, materials,
    31  facilities  or other things of value used during that election cycle or,
    32  in the case of a special election, for expenditures  during  the  period
    33  commencing  three  months before and ending one month after such special
    34  election.
    35    2. Such public funds may not be used for:
    36    (a) An expenditure in violation of any law of the United States or  of
    37  this state;

    38    (b)  Payments  or  anything of value given or made to the candidate, a
    39  relative of the candidate, or to a business entity  in  which  any  such
    40  person  has  a ten percent or greater ownership interest or of which any
    41  such person is an officer, director or employee in excess  of  the  fair
    42  market  value of such services, materials, facilities or other things of
    43  value received in exchange;
    44    (c) Payment in excess of the fair market value of services, materials,
    45  facilities or other things of value received in exchange;
    46    (d) Any expenditure made after the  participating  candidate,  or  the
    47  only  remaining opponent of such candidate, has been disqualified or had
    48  such candidate's petitions declared invalid by a board of elections or a

    49  court of  competent  jurisdiction  until  and  unless  such  finding  is
    50  reversed by a higher authority.
    51    (e)  Any expenditure made to challenge the validity of any petition of
    52  designation or nomination or any certificate of nomination,  acceptance,
    53  authorization, declination or substitution;
    54    (f) Expenditure for noncampaign related food, drink or entertainment;
    55    (g) Gifts, except brochures, buttons, signs, or other printed campaign
    56  materials; and

        A. 4980--E                         12
 
     1    (h) Contributions or transfers to a political committee.
     2    §  14-310.  Optional public financing. 1. Participating candidates for
     3  nomination or election in primary, general  and  special  elections  may

     4  obtain payment to a participating committee from public funds for quali-
     5  fied  campaign  expenditures.  No  such  public funds shall be paid to a
     6  participating committee until the candidate has qualified to  appear  on
     7  the  ballot  and  filed  a sworn statement with the fair elections board
     8  electing to participate in the  optional  public  financing  system  and
     9  agreeing to abide by the requirements of this title.  Payments shall not
    10  exceed  the  amounts  specified in this title, and shall be made only in
    11  accordance with the provisions of this title. Such payments may only  be
    12  made  to  a participating candidate's participating committee. No public
    13  funds shall be used except as reimbursement  or  payment  for  qualified

    14  campaign  expenditures  actually and lawfully incurred or to repay loans
    15  used to pay qualified campaign expenditures.
    16    2. The participating committee of each participating  candidate  shall
    17  be entitled to six dollars in public funds for each one dollar of match-
    18  able  contributions obtained and reported to the fair elections board in
    19  accordance with the provisions of this title,  provided,  however,  such
    20  public funds shall only be used for qualified campaign expenditures.
    21    3.  (a) No participating candidate for nomination for an office who is
    22  unopposed in a primary election shall be entitled to  payment  from  the
    23  fund for qualified campaign expenditures.
    24    (b)  Where there is a contest in such primary for the nomination of at

    25  least one other party for such office, the participating committee of an
    26  unopposed participating candidate for nomination may raise and spend  an
    27  amount equal to one-half the public funds receipt limit for such office,
    28  as  fixed by this title for candidates who have elected to accept public
    29  funds, with contributions of up to two thousand dollars per contributor.
    30  Such payment can only be expended for property, services  or  facilities
    31  used on or before the date of such primary election.
    32    4.  The  fair  elections  board  shall promptly examine all reports of
    33  contributions to  determine  whether,  on  their  face,  they  meet  the
    34  requirements  for  matchable  contributions,  and shall keep a record of
    35  such contributions.

    36    5. The fair elections  board  shall  promulgate  regulations  for  the
    37  certification  of  the  amount of funds payable by the comptroller, from
    38  the fund established pursuant  to  section  ninety-two-y  of  the  state
    39  finance  law, to a participating candidate that has qualified to receive
    40  such payment. These  regulations  shall  include  the  promulgation  and
    41  distribution  of forms on which contributions and expenditures are to be
    42  reported, the periods during which such reports must be  filed  and  the
    43  verification  required.  The board shall institute procedures which will
    44  make possible payment by the fund within two business days after receipt
    45  of the required forms and verifications.

    46    § 14-312. Contribution and receipt limitations. 1.   In  any  primary,
    47  special  or general election for any statewide office, state legislative
    48  office or constitutional convention delegate no contributor may  make  a
    49  contribution  to any participating candidate or such candidate's partic-
    50  ipating committee,  and  no  participating  candidate  or  participating
    51  committee may accept any contribution from any contributor which, in the
    52  aggregate amount, is greater than two thousand dollars.
    53    2.  (a) Notwithstanding the public funds receipt limit for such office
    54  as fixed by this title for candidates who have elected to accept  public
    55  funds,  a participating candidate for governor or lieutenant governor in

    56  a primary or general election or such candidate's participating  commit-

        A. 4980--E                         13
 
     1  tee  may  accept  from a state constituted committee which has nominated
     2  such candidate services in an amount which, in the aggregate,  does  not
     3  exceed  two  million  five  hundred thousand dollars; provided, however,
     4  that twenty-five percent of such amount may be accepted in the form of a
     5  transfer.
     6    (b)  Notwithstanding the public funds receipt limit for such office as
     7  fixed by this title for candidates who have  elected  to  accept  public
     8  funds,  a participating candidate for attorney general or comptroller in
     9  a primary or general election or such candidate's participating  commit-

    10  tee  may  accept  from a state constituted committee which has nominated
    11  such candidate services in an amount which, in the aggregate,  does  not
    12  exceed  one million dollars; provided, however, that twenty-five percent
    13  of such amount may be accepted in the form of a transfer.
    14    (c) Notwithstanding the public funds receipt limit for such office  as
    15  fixed  by  this  title  for candidates who have elected to accept public
    16  funds, a participating candidate for state senator in a primary, general
    17  or special election or  such  candidate's  participating  committee  may
    18  accept  from  a  state  constituted  committee  which has nominated such
    19  candidate services in   an amount which,  in  the  aggregate,  does  not

    20  exceed one hundred thousand dollars; provided, however, that twenty-five
    21  percent of such amount may be accepted in the form of a transfer.
    22    (d)  Notwithstanding the public funds receipt limit for such office as
    23  fixed by this title for candidates who have  elected  to  accept  public
    24  funds,  a participating candidate for member of the assembly in a prima-
    25  ry, general  or  special  election  or  such  candidate's  participating
    26  committee  may accept from a state constituted committee which has nomi-
    27  nated such candidate services in an amount which, in the aggregate, does
    28  not exceed fifty thousand dollars; provided, however,  that  twenty-five
    29  percent of such amount may be accepted in the form of a transfer.

    30    (e)  Notwithstanding the public funds receipt limit for such office as
    31  fixed by this title for candidates who have  elected  to  accept  public
    32  funds,  a  participating  candidate for delegate at-large to a constitu-
    33  tional convention in a general election or such candidate's  participat-
    34  ing  committee  may  accept from a state constituted committee which has
    35  nominated such candidate services in an amount which, in the  aggregate,
    36  does  not exceed fifty thousand dollars; provided, however, that twenty-
    37  five percent of such amount may be accepted in the form of a transfer.
    38    (f) Notwithstanding the public funds receipt limit for such office  as
    39  fixed  by  this  title  for candidates who have elected to accept public

    40  funds, a participating candidate for district delegate  to  a  constitu-
    41  tional  convention in a general election or such candidate's participat-
    42  ing committee may accept from a state constituted  committee  which  has
    43  nominated  such candidate services in an amount which, in the aggregate,
    44  does not exceed ten thousand dollars; provided,  however,  that  twenty-
    45  five percent of such amount may be accepted in the form of a transfer.
    46    (g)  For  purposes  of  this  subdivision,  the term state constituted
    47  committee includes any of its subcommittees.
    48    3. Notwithstanding any public funds receipt limit in this subdivision,
    49  each county committee of any  party  which  nominates  a  candidate  for

    50  statewide  office or state legislative office, including within the term
    51  county committee any of its subcommittees, may expend in support of such
    52  party's candidates for statewide office or state legislative office  who
    53  has  agreed to accept public financing, an amount which shall not exceed
    54  the sum of two cents for each voter registered in such county as  deter-
    55  mined  by  the  records  of the appropriate board of elections as of the
    56  preceding general election.

        A. 4980--E                         14
 
     1    4. In computing the aggregate amount expended  for  purposes  of  this
     2  section,  expenditures made by a state constituted committee or a county
     3  committee in support of more than one candidate shall be allocated among

     4  such candidates supported by the committee in accordance  with  formulas
     5  promulgated by the fair elections board or, in the absence of such offi-
     6  cial formulas, in accordance with a formula based upon reasonable stand-
     7  ards.  The  statements filed by such constituted committee in accordance
     8  with this chapter shall set forth, in addition to the other  information
     9  required,  the total amount expended by the party committee on behalf of
    10  all such candidates and the amount allocated to each candidate by dollar
    11  amount and percentage.  Expenditures by a party for activities which  do
    12  not  support  or  oppose  the election of any candidate or candidates by
    13  name or by clear inference shall not  be  regarded  as  expenditures  on

    14  behalf of or in opposition to a candidate.
    15    5.  A  participating  candidate  for  a public office for which public
    16  funds are available pursuant to this title shall not accept any contrib-
    17  utions any earlier than one day after the previous general election  for
    18  the office which such candidate is seeking, or any later than the day of
    19  the  general election for the office sought, except that a participating
    20  candidate or participating committee which has a deficit on the  day  of
    21  the general election may, after such date, accept contributions which do
    22  not exceed the amount of such deficit and the expenses incurred in rais-
    23  ing such contributions or the expenditure limit for such office as fixed

    24  by this title for candidates who have elected to accept public funds.
    25    6.  Except for the limitations specifically set forth in this section,
    26  participating candidates shall be subject  to  the  provisions  of  this
    27  article.
    28    §  14-314.  Limitations on the receipt of public funds.  The following
    29  limitations apply to the total  amount  of  public  funds  that  may  be
    30  provided  to  a  participating  candidate's  authorized committee for an
    31  election cycle:
    32    1. In any primary election, receipt of public funds  by  participating
    33  candidates and by their participating committees shall not exceed:
    34    (i) for governor, the sum of nine million dollars;
    35    (ii) for lieutenant governor, comptroller or attorney general, the sum

    36  of six million dollars;
    37    (iii) for senator, the sum of three hundred fifty thousand dollars;
    38    (iv) for member of the assembly, the sum of one hundred fifty thousand
    39  dollars;
    40    (v)  for  at-large delegate to a constitutional convention, the sum of
    41  one hundred seventy-five thousand dollars;
    42    (vi) for district delegates to a constitutional convention, the sum of
    43  fifty thousand dollars;
    44    2. In any general or special election,  receipt  of  public  funds  by
    45  participating  candidates for the following offices and by their partic-
    46  ipating committees shall not exceed the following amounts:
    47    Candidates for election to the office of:

    48    Governor and lieutenant governor (combined)                $12,000,000
    49    Attorney general                                           $8,000,000
    50    Comptroller                                                $8,000,000
    51    Member of senate                                           $400,000
    52    Member of assembly                                         $200,000
    53    Delegate at-large to a constitutional convention           $350,000
    54    District delegate to a constitutional convention           $75,000
    55    3. Participating candidates for office who are unopposed in the prima-
    56  ry election may receive public funds before the  primary  election,  for


        A. 4980--E                         15
 
     1  services,  materials  or  facilities  used on or before the date of such
     2  primary election, an amount equal to half the sum such candidates  would
     3  be entitled to receive if their nomination was contested in such primary
     4  election  provided  there  is a primary contest for the nomination of at
     5  least one other party for such office.
     6    4. Nothing in this section shall be construed to limit the  amount  of
     7  private  funds  a  participating  candidate  may  receive subject to the
     8  contribution limits contained in section 14-312 of this title.
     9    5. At the beginning of each second calendar year,  commencing  in  two
    10  thousand  sixteen, the fair elections board shall determine the percent-

    11  age of the difference between the most recent available monthly consumer
    12  price index for all urban consumers published by the the  United  States
    13  bureau  of  labor statistics and such consumer price index published for
    14  the same month four years previously. The amount of  each  public  funds
    15  receipt limitation fixed in this section shall be adjusted by the amount
    16  of  such percentage difference to the closest one hundred dollars by the
    17  state board which, not later than the first day of February in each such
    18  year, shall issue a  regulation  publishing  the  amount  of  each  such
    19  contribution  limit. Each public fund receipt limit as so adjusted shall
    20  be the public funds receipt limit in effect for any election held before
    21  the next such adjustment.

    22    § 14-316. Fair elections board; general powers and duties. 1.    There
    23  shall  be a board within the state board of elections known as the "fair
    24  elections board" composed of five members, of which one member shall  be
    25  appointed  by  the  governor  and  one member shall be appointed by each
    26  legislative leader of the senate and assembly.   No member of  the  fair
    27  elections  board  shall  hold elective office, nor shall any member be a
    28  lobbyist as defined in subdivision (a) of section one-c of the  legisla-
    29  tive law. The chair shall be responsible for managing the fair elections
    30  board. The members shall each serve for a term of four years.
    31    2.  The members of the fair elections board shall designate the chair-

    32  man  of  the  fair  elections  board from among the members thereof, who
    33  shall serve as chairman at the pleasure  of  the  members  of  the  fair
    34  elections board. The chairman or any three members of the fair elections
    35  board may call a meeting.
    36    3.  Each  member's  term shall commence on January first, two thousand
    37  fifteen. In case of a vacancy in the office of a member, a member  shall
    38  be  appointed  according  to  the  original  manner of appointment. Each
    39  member shall be a resident of the state of New York  and  registered  to
    40  vote  therein.  Each  member  shall agree not to make and shall not make
    41  contributions to any candidate or authorized  committee  for  nomination
    42  for  election.  No member shall serve as an officer of a political party

    43  or committee or be a candidate or  participate  in  any  capacity  in  a
    44  campaign  by  a  candidate  for  nomination  for election. An officer or
    45  employee of the state or any state agency shall not be eligible to be  a
    46  member of the fair elections board.
    47    4.  The  members  of  the  fair  elections  board shall be entitled to
    48  receive payment for  actual  and  necessary  expenses  incurred  in  the
    49  performance of their duties as members of such board.
    50    5.  A  member  of the fair elections board may be removed for cause by
    51  the appointing authority upon notice and an opportunity for a hearing.
    52    6.  The fair elections board shall appoint a counsel, a  deputy  coun-
    53  sel, who shall be a member of a different major political party than the

    54  counsel,  a  special  counsel,  a deputy special counsel, who shall be a
    55  member of a different major political party than the special counsel,  a
    56  director of public information, a deputy director of public information,

        A. 4980--E                         16
 
     1  who  shall  be  a  member  of a different major political party than the
     2  director of public information.  The fair elections  board  may  utilize
     3  existing  staff of the state board of elections as may be necessary, and
     4  make  necessary  expenditures subject to appropriation, provided however
     5  that the counsel, in consultation with the fair elections  board,  shall
     6  have  the authority to hire at least four new fair elections board staff

     7  members. Such fair elections board staff members shall be  dedicated  to
     8  training  and  assisting  participating candidates in complying with the
     9  requirements of optional public financing  as  provided  for  under  the
    10  provisions of title two of this article.  The fair elections board shall
    11  retain  an independent auditor to perform ongoing audits of each covered
    12  election by contract  entered  into  pursuant  to  section  one  hundred
    13  sixty-three of the state finance law.
    14    7. The counsel and the special counsel shall each serve a term of four
    15  years  and  may  only be removed for cause. Any time after the effective
    16  date of this section, the members, or in the case of a  vacancy  on  the

    17  fair  elections  board, the members, of each of the same major political
    18  party as the incumbent counsel, deputy counsel, shall appoint such coun-
    19  sels, and deputies. Any vacancy in the office of counsel,  deputy  coun-
    20  sel,  special counsel, special deputy counsel, director of public infor-
    21  mation and deputy director of public information shall be filled by  the
    22  members  of  the fair elections board or in the case of a vacancy on the
    23  board, the members of the same major political  party  as  the  vacating
    24  incumbent  for  the remaining period of the term of such vacating incum-
    25  bent.
    26    8. The fair elections board shall:
    27    (a)(i) render advisory opinions  with  respect  to  questions  arising

    28  under  this  article upon the written request of a candidate, an officer
    29  of a political committee or member of the public, or upon its own initi-
    30  ative; (ii) promulgate rules regarding reasonable times  to  respond  to
    31  such requests; and (iii) make public the questions of interpretation for
    32  which  advisory  opinions will be considered by the fair elections board
    33  and its advisory opinions, including by publication on its website;
    34    (b) develop a program for informing and training  candidates  and  the
    35  public  as  to  the  purpose and effect of the provisions of this title,
    36  including by means of a website;
    37    (c) have the authority to promulgate such rules  and  regulations  and
    38  prescribe such forms as the fair elections board deems necessary for the

    39  administration of this title; and
    40    (d) in conjunction with the state board of elections develop an inter-
    41  active,  searchable computer database that shall contain all information
    42  necessary for the proper administration of this title including informa-
    43  tion on contributions  to  and  expenditures  by  candidates  and  their
    44  authorized  committees  and  distributions  of  moneys from the fund and
    45  shall be accessible to the public  on  the  state  board  of  elections'
    46  website.
    47    9.  Consistent with the provisions of the civil service law and subdi-
    48  vision seventeen of section seventy-three of the  public  officers  law,
    49  and notwithstanding the provisions of any other law to the contrary, all

    50  positions  on  the staff of the fair elections board shall be classified
    51  in the exempt class of the civil service and  such  positions  shall  be
    52  filled,  to  the  extent  possible, with an equal number of persons from
    53  each of the two political parties for which the  highest  and  the  next
    54  highest number of votes were cast for the office of state comptroller at
    55  the last preceding general election for such office.

        A. 4980--E                         17
 
     1    10.  The  fair  elections  board's administration of the fund shall be
     2  governed by the provisions of this title and section ninety-two-y of the
     3  state finance law.
     4    11.  The fair elections board and its proceedings shall be governed by

     5  the state administrative procedure act and subject to articles  six  and
     6  seven of the public officers law.
     7    12.    For the purposes of meetings, three commissioners shall consti-
     8  tute a quorum. The affirmative vote  of  three  commissioners  shall  be
     9  required for any action of the fair elections board.
    10    13. The fair elections board may take such other actions as are neces-
    11  sary and proper to carry out the purposes of this title.
    12    §  14-318.  Examinations  and  audits. 1. The fair elections board may
    13  conduct a thorough examination and pre-election audit  of  the  contrib-
    14  utions and qualified campaign expenses of the participating committee of
    15  every  participating candidate who received payments pursuant to section

    16  14-310 of this title.  Such audits shall be conducted as  frequently  as
    17  the  fair elections board deems necessary to ensure compliance with this
    18  title. The fair elections board shall notify,  in  writing,  any  candi-
    19  date's  authorized committee prior to the commencement of such pre-elec-
    20  tion audit. No pre-election audit shall commence in the absence  of  the
    21  notice  requirement  of this subdivision.   Every candidate who receives
    22  public matching funds under this title shall also be audited by the fair
    23  elections board post-election. The cost of complying with  a  post-elec-
    24  tion  audit  shall  be  borne by the candidate's authorized committee. A
    25  candidate who has received public matching funds under this  title  must

    26  maintain a reserve of at least one percent of the total amount of match-
    27  ing  funds  received by such candidate in his or her campaign account to
    28  comply with the post-election audit. A candidate  who  runs  in  both  a
    29  primary  and  a general election, must maintain a reserve of one percent
    30  of the total amount of public matching funds received by such  candidate
    31  for  both  his  or her primary and general election. A candidate may use
    32  public matching funds, private funds or  a  combination  of  public  and
    33  private  funds  to comply with a post-election audit. The fair elections
    34  board shall issue to each campaign audited the final post-election audit
    35  report that details its findings and shall provide  such  audit  to  the

    36  governor and legislative leaders and make such audit report available on
    37  the  state  board  of  elections'  website.    Final post-election audit
    38  reports shall be completed no later than twelve months after the date of
    39  the election or elections for which the candidate received public funds.
    40  This audit deadline shall not apply in cases involving  potential  camp-
    41  aign-related  fraud,  knowing  and willful violations of this article or
    42  criminal activity.
    43    2. (a) If the fair elections board determines that any portion of  the
    44  payment made to a participating committee from the fund was in excess of
    45  the  aggregate  amount  of payments to which such eligible candidate was
    46  entitled pursuant to section 14-310 of this title, it shall notify  such

    47  committee  of the excess amount and such committee shall pay to the fair
    48  elections board an amount  equal  to  the  amount  of  excess  payments;
    49  provided,  however,  that  if  the erroneous payment was due to an error
    50  made by the fair elections board, then the  erroneous  payment  will  be
    51  offset  against  any future payment, if any. The participating candidate
    52  and his or her participating committee shall be  jointly  and  severally
    53  liable for any repayments due to the fair elections board for deposit by
    54  such board into the New York state campaign fund.
    55    (b)  If  the  board  determines  that  any amount of payment made to a
    56  participating committee from the fund was used for purposes  other  than


        A. 4980--E                         18
 
     1  to  defray qualified campaign expenses, it shall notify such participat-
     2  ing committee of the amount disqualified and such participating  commit-
     3  tee  shall  pay  to  the  fair  elections  board an amount equal to such
     4  disqualified  amount.   Such monies shall be deposited into the New York
     5  state fair elections fund created pursuant to  section  ninety-two-y  of
     6  the  state  finance  law.   The candidate and the candidate's authorized
     7  committee shall be jointly and severally liable for any  repayments  due
     8  to the fair elections board.
     9    (c)  If the total of contributions and payments from the fund received
    10  by  any  participating  candidate  and  such  candidate's  participating

    11  committee,  exceeds the public funding receipt limitation of such candi-
    12  date and committee, such candidate and committee shall use  such  excess
    13  funds to reimburse the fund for payments received by such committee from
    14  the  fund not later than ten days after all permissible liabilities have
    15  been paid and in any event, not later than twenty days after the date on
    16  which the fair elections board issues its final  audit  report  for  the
    17  participating candidate's committee; provided, however, that all unspent
    18  matching  funds  for  a participating candidate shall be immediately due
    19  and payable to the fair elections board for deposit into  the  New  York
    20  state  fair  elections  fund upon its determination that the participant

    21  willfully delayed  the  post-election  audit  process.  A  participating
    22  candidate  may  make  post-election expenditures only for routine activ-
    23  ities involving nominal costs associated  with  ending  a  campaign  and
    24  responding  to the post-election audit. Nothing in this section shall be
    25  construed to prohibit the post-election expenditure of public funds  for
    26  debts  incurred during the campaign for which public funds were eligible
    27  to be used.
    28    3. If a court of competent jurisdiction disqualifies a candidate whose
    29  participating committee has received public funds on  the  grounds  that
    30  such  candidate  committed fraudulent acts in order to obtain a place on
    31  the ballot and such decision is not reversed by  a  higher  court,  such

    32  candidate  and such candidate's participating committee shall pay to the
    33  fair elections board an amount  equal  to  the  total  of  public  funds
    34  received by such participating committee.
    35    4.  The  board  must provide written notice of all payments due from a
    36  participating candidate or such candidate's committee to the  board  and
    37  provide an opportunity for the candidate or committee to rebut, in whole
    38  or  in  part, the alleged amount due. Upon a final written determination
    39  by the board, the amount due shall be paid to the  board  within  thirty
    40  days of such determination.
    41    5.  All  payments received by the board pursuant to this section shall
    42  be deposited in the New York state fair elections  fund  established  by

    43  section ninety-two-y of the state finance law.
    44    6.  Any  advice provided by the staff or members of the fair elections
    45  board to a participating or non-participating  candidate  in  connection
    46  with  any  action  under  this  article, when relied upon in good faith,
    47  shall be presumptive evidence that such candidate or his or her  commit-
    48  tee did not knowingly and willfully violate the provisions of this arti-
    49  cle.
    50    § 14-320. Civil enforcement. 1. Any person or authorized committee who
    51  knowingly and wilfully fails to make a filing required by the provisions
    52  of  this  title  shall  be  subject to a civil penalty not to exceed the
    53  amount of five thousand dollars.

    54    2. Any person or authorized committee who knowingly and  intentionally
    55  violates any other provision of this title or any rule promulgated here-

        A. 4980--E                         19
 
     1  under  shall  be  subject to a civil penalty not to exceed the amount of
     2  ten thousand dollars.
     3    3.  Fines  authorized  under  this section will be imposed by the fair
     4  elections board after a hearing at which the subject person  or  author-
     5  ized  committee  shall be given an opportunity to be heard. Such hearing
     6  shall be held in such manner and upon such notice as may  be  prescribed
     7  by  the  rules  of  the fair elections board. For purposes of conducting
     8  such hearings, the fair elections 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 civil penalties herein authorized.
    14    4.  The  fair  elections  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.  All payments received by the fair elections board pursuant to this
    18  section shall be deposited in the New York  state  fair  elections  fund
    19  established by section ninety-two-y of the state finance law.

    20    § 14-322. 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 and willfully makes a false statement or
    33  knowingly omits a material fact to the fair elections board or an  audi-
    34  tor  designated  by  the fair elections board during any audit conducted
    35  pursuant to section 14-318 of this title shall be guilty of  a  class  E
    36  felony.
    37    4.  In  addition to any other sentence lawfully imposed upon a finding
    38  of guilt in a criminal prosecution commenced pursuant to the  provisions
    39  of  this  section,  the court may order a defendant to repay to the fair
    40  elections board any public matching funds obtained as a  result  of  any
    41  criminal conduct.
    42    5.  All  such prosecutions for criminal acts under this title shall be

    43  prosecuted by the attorney general of the state of New York.
    44    6. Any and all fines imposed pursuant to this section  shall  be  made
    45  payable  to the fair elections board for deposit into the New York state
    46  fair elections fund.
    47    § 14-324. Reports. The fair elections board shall submit a  report  to
    48  the  governor  and  legislative leaders on or before February first, two
    49  thousand sixteen, and every four years thereafter, which shall include:
    50    1. a list of the  participating  and  nonparticipating  candidates  in
    51  covered  elections  and  the  votes  received by each candidate in those
    52  elections;
    53    2. the amount of contributions and loans  received,  and  expenditures

    54  made, on behalf of participating and nonparticipating candidates;
    55    3.  the  amount  of public matching funds each participating candidate
    56  received, spent, and repaid pursuant to this article;

        A. 4980--E                         20
 
     1    4. analysis of the effect of this title on the election campaigns  for
     2  all  offices  covered  under section 14-306 of this title, including its
     3  effect on the sources and amounts of private  financing,  the  level  of
     4  campaign  expenditures,  voter  participation, the number of candidates,
     5  the candidates' abilities to campaign effectively for public office, and
     6  the diversity of candidates seeking and elected to office;
     7    5.  recommendations for changes or amendments to this title, including

     8  charges in contribution limits, thresholds for eligibility and limits on
     9  total matching funds as well as instituting a  program  of  full  public
    10  campaign financing for election for all statewide offices; and
    11    6. any other information that the fair elections board deems relevant.
    12    §  14-326.  Debates.  The  fair elections board shall promulgate regu-
    13  lations to facilitate debates among participating candidates.    Partic-
    14  ipating  candidates  are  required to participate in at least one debate
    15  before the primary election and in at least one debate before the gener-
    16  al election for which the candidate receives public  funds,  unless  the
    17  participating  candidate is running unopposed. A nonparticipating candi-

    18  date may be a party to such debates.
    19    § 14-328. Distributions from fair  elections  fund.  1.  This  section
    20  governs  the fair elections board's distribution  of funds from the fair
    21  elections fund created by section ninety-two-y of the state finance law,
    22  except as otherwise provided in this title.
    23    2. No moneys shall be paid to participating candidates  in  a  primary
    24  election any earlier than two weeks after the last day to file designat-
    25  ing petitions for such primary election.
    26    3.  No  moneys  shall be paid to participating candidates in a general
    27  election any earlier than a week after  the  primary  election  held  to
    28  nominate candidates for such election.

    29    4. No moneys shall be paid to any participating candidate who has been
    30  disqualified  by the fair elections board or whose designating petitions
    31  have been declared invalid by the state board of elections or a court of
    32  competent jurisdiction until and unless such finding is reversed  by  an
    33  appellate court.
    34    5.  No  payment from the fund in the possession of such a candidate or
    35  such a candidate's authorized committee on the date  of  such  disquali-
    36  fication  or  invalidation  may  thereafter  be expended for any purpose
    37  except the payment of liabilities incurred before that date. All  excess
    38  public  moneys paid to a disqualified candidate shall be returned to the
    39  fund not less than thirty days after  the  general  election  for  those

    40  participating  candidates  who  received  public  moneys for the general
    41  election, and otherwise, not less than thirty  days  after  the  primary
    42  election  for  those participating candidates who received public moneys
    43  solely for the primary election.
    44    6. (a) Participating candidates shall pay to the fair elections  board
    45  unspent  public  campaign  funds  from an election not later than thirty
    46  days after all liabilities for the election have been paid and,  in  any
    47  event,  not  less  than  twenty  days after the date upon which the fair
    48  elections board issues its final  audit  report  for  the  participating
    49  candidate's  committee;  provided,  however,  that  all  unspent  public

    50  campaign funds for a participating candidate shall  be  immediately  due
    51  and  payable to the fair elections board upon its determination that the
    52  participating candidate has, without just cause, delayed the  post-elec-
    53  tion  audit  process.  Unspent campaign funds determinations made by the
    54  fair elections board shall  be  based  on  the  participating  candidate
    55  committee's receipts and expenditures. The fair elections board may also

        A. 4980--E                         21
 
     1  consider  any  other  relevant information revealed in the course of its
     2  audits or investigations or the investigations by any other agency.
     3    (b)(i)  A participating candidate may not use receipts for any purpose

     4  other than disbursements in the preceding  election  until  all  unspent
     5  public  campaign funds have been repaid. A participating candidate shall
     6  have the burden of demonstrating that a post-election expenditure is for
     7  the preceding election.
     8    (ii) Before repaying unspent public campaign  funds,  a  participating
     9  candidate  may  make  post-election expenditures only for routine activ-
    10  ities involving nominal costs associated with winding up a campaign  and
    11  responding  to  the  post-election audit. Such expenditures may include:
    12  payment of  utility  bills  and  rent;  reasonable  staff  salaries  and
    13  consultant  fees  for  responding  to  a post-election audit; reasonable
    14  moving expenses related to closing a campaign  office;  a  holiday  card

    15  mailing  to  contributors, campaign volunteers, and staff members; thank
    16  you notes for contributors,  campaign  volunteers,  and  staff  members;
    17  payment  of  taxes  and  other  reasonable  expenses for compliance with
    18  applicable  tax  laws;  and  interest  expenses.  Routine  post-election
    19  expenditures  that  may  be  paid for with unspent campaign funds do not
    20  include such items as post-election mailings other than as  specifically
    21  provided  for  in  this subparagraph; making contributions; making bonus
    22  payments or gifts to staff members or volunteers; or holding any post-e-
    23  lection day event, including, but not limited to, any meal or any party.
    24  Unspent campaign funds may not be used for  transition  or  inauguration
    25  activities.

    26    7.  All  monies  received by the fair elections board pursuant to this
    27  section shall be deposited into the New York state fair  elections  fund
    28  pursuant to section ninety-two-y of the state finance law.
    29    8. Any candidate who accepts a contribution or contributions in excess
    30  of the limits set forth in section 14-312 of this title, prior to elect-
    31  ing to participate in the optional public financing system, as set forth
    32  by  paragraph  (c)  of  subdivision one of section 14-306 of this title,
    33  shall have his or her total public matching fund grant reduced  by  such
    34  excess  amount.  Such  amount shall be deducted beginning from the first
    35  allowable disbursement  from  the  fund  until  such  excess  amount  is

    36  reached,  at  which point the public fund disbursement shall be provided
    37  to the candidate consistent with the provisions of this section.
    38    § 16. The election law is amended by adding a new  section  16-103  to
    39  read as follows:
    40    §  16-103. Proceedings as to public financing. 1. The determination of
    41  eligibility pursuant to section 14-306 of this chapter and any  question
    42  or issue relating to payments for qualified campaign expenditures pursu-
    43  ant  to  section 14-310 of this chapter may be contested in a proceeding
    44  instituted in the Supreme court, Albany county, by any aggrieved  candi-
    45  date.
    46    2. A proceeding with respect to such a determination of eligibility or
    47  payment  for  qualified campaign expenditures pursuant to section 14-310

    48  of this chapter shall be instituted within seven days after such  deter-
    49  mination was made. The fair elections board shall be made a party to any
    50  such proceeding.
    51    3.  Upon  the fair elections board's failure to receive the amount due
    52  from a participating candidate or such candidate's committee  after  the
    53  issuance  of  written notice of such amount due, as required by subdivi-
    54  sion four of section 14-318 of this chapter, such board is authorized to
    55  institute a special proceeding or civil action in Supreme Court,  Albany
    56  county, to obtain a judgment for any amounts determined to be payable to

        A. 4980--E                         22
 
     1  the  fair  elections  board as a result of an examination and audit made

     2  pursuant to title two of article fourteen of this chapter.
     3    4.  The  fair  elections  board  is  authorized to institute a special
     4  proceeding or civil action in Supreme Court, Albany county, to obtain  a
     5  judgment  for  civil  penalties  determined  to  be  payable to the fair
     6  elections board pursuant to section 14-318 of this chapter.
     7    § 17. The election law is amended by adding a  new  section  4-115  to
     8  read as follows:
     9    §  4-115. Notice to the state board of elections of candidates for the
    10  legislature. 1. Each board of elections with which petitions  are  filed
    11  for member of the state legislature shall, not later than one week after
    12  the  last  day to file such petitions, send notice to the state board of

    13  elections of such information about each  such  petition  as  the  state
    14  board shall require.
    15    2.  Each  such county board of elections shall, not later than the day
    16  after the last day to file a petition or certificate of nomination for a
    17  general or special election or a certificate of acceptance,  declination
    18  or  substitution for a general, primary or special election for any such
    19  office, send to the state board of elections such information about each
    20  such petition or certificate as the state board shall require.
    21    3. If any such county board of elections should  disqualify  any  such
    22  candidate  or rule the petition or certificate designating or nominating
    23  any such candidate invalid, it shall forthwith notify the state board of

    24  elections of such decision.
    25    4. If any such county board of elections shall be notified of a  deci-
    26  sion  of a court of competent jurisdiction disqualifying any such candi-
    27  date or declaring any such petition invalid or reversing any such  deci-
    28  sion  by  such  board  of  elections  or  another  court,  such board of
    29  elections shall forthwith notify the state board of  elections  of  such
    30  decision.
    31    5.  The  state  board of elections may prescribe forms for the notices
    32  required by this section and shall prescribe the manner  in  which  such
    33  notices shall be given.
    34    §  18.  The  general  business  law is amended by adding a new section
    35  359-gg to read as follows:

    36    § 359-gg. Additional surcharge. In addition to any penalty  authorized
    37  by  section three hundred fifty-nine-g of this article or any damages or
    38  other compensation  recoverable  including,  but  not  limited  to,  any
    39  settlement  authorized  by  section  sixty-three or sixty-three-c of the
    40  executive law, there shall be assessed thereon an  additional  surcharge
    41  in  the  amount  of  ten  percent  of  the total amount of such penalty,
    42  damages or settlement. Such surcharge shall be deposited in the New York
    43  state fair elections fund established by  section  ninety-two-y  of  the
    44  state finance law.
    45    § 19. The state finance law is amended by adding a new section 92-y to
    46  read as follows:

    47    §  92-y. New York state fair elections fund. 1. There is hereby estab-
    48  lished in the custody of the commissioner  of  taxation  and  finance  a
    49  special fund to be known as the New York state fair elections fund.
    50    2. Such fund shall consist of all revenues received from the surcharge
    51  imposed  pursuant  to section three hundred fifty-nine-gg of the general
    52  business law, revenues  received  from  fair  elections  fund  check-off
    53  pursuant  to  section  six hundred thirty-d of the tax law and all other
    54  moneys credited or transferred thereto from any  other  fund  or  source
    55  pursuant  to  law.  Nothing  contained in this section shall prevent the
    56  state from receiving grants, gifts, bequests or voluntary  contributions


        A. 4980--E                         23
 
     1  for  the  purposes of the fund as defined in this section and depositing
     2  them into the fund according to law. Monies in the fund  shall  be  kept
     3  separate from and not commingled with other funds held in the custody of
     4  the commissioner of taxation and finance.
     5    3. Moneys of the fund, following appropriation by the legislature, may
     6  be  expended  for the purposes of making payments to candidates pursuant
     7  to title three of article fourteen of the election law. Moneys shall  be
     8  paid  out  of  the  fund  by the commissioner of taxation and finance on
     9  vouchers certified or approved by the fair elections  board  established
    10  pursuant  to title three of article fourteen of the election law, or the

    11  duly designated representative of such board, in the  manner  prescribed
    12  by  law,  not  more than one working day after a voucher duly certified,
    13  approved and executed by such board or its representative  in  the  form
    14  prescribed  by  the  commissioner of taxation and finance is received by
    15  the commissioner of taxation and finance.
    16    4. Notwithstanding any provision of law to the contrary,  if,  in  any
    17  state  fiscal  year,  the  state fair elections fund lacks the amount of
    18  money to pay all claims vouchered by eligible candidates  and  certified
    19  or  approved  by  the fair elections board, any such deficiency shall be
    20  paid, upon audit and warrant of the state comptroller, from funds depos-

    21  ited in the general fund of the state not  more  than  one  working  day
    22  after such voucher is received by the state comptroller.
    23    5.  Commencing  in two thousand sixteen, if the surplus in the fund on
    24  April first of the year after  an  election  cycle  exceeds  twenty-five
    25  percent of the disbursements from the fund over the previous four years,
    26  the excess shall revert to the general fund of the state.
    27    6.  No public funds shall be paid to any participating candidates in a
    28  primary election any earlier than the day that such candidate is  certi-
    29  fied as being on the ballot for such primary election.
    30    7.  No public funds shall be paid to any participating candidates in a
    31  general election any earlier than the day after the day of  the  primary

    32  election held to nominate candidates for such election.
    33    8.  No  public  funds shall be paid to any participating candidate who
    34  has been disqualified or whose designating petitions have been  declared
    35  invalid  by  the  appropriate board of elections or a court of competent
    36  jurisdiction until and unless such  finding  is  reversed  by  a  higher
    37  authority.  No  payment from the fund in the possession of such a candi-
    38  date or such candidate's participating committee on  the  date  of  such
    39  disqualification  or  invalidation  may  thereafter  be expended for any
    40  purpose except the payment of liabilities incurred before such date. All
    41  such moneys shall be repaid to the fund.
    42    § 20. The tax law is amended by adding a new section 630-d to read  as

    43  follows:
    44    §  630-d.  Contribution to New York state fair elections fund.  Effec-
    45  tive for any taxable year commencing on  or  after  January  first,  two
    46  thousand  fourteen,  an  individual  in  any  taxable  year may elect to
    47  contribute to the New York state fair elections fund. Such  contribution
    48  shall  be  in the amount of five dollars and shall not reduce the amount
    49  of state tax owed by such individual.  The  commissioner  shall  include
    50  space  on  the  personal  income tax return to enable a taxpayer to make
    51  such contribution. Notwithstanding any other provision of law all reven-
    52  ues collected pursuant to this section shall be credited to the New York
    53  state fair elections fund and used only for those purposes enumerated in

    54  section ninety-two-y of the state finance law.
    55    § 21. Severability. If any clause, sentence,  subdivision,  paragraph,
    56  section  or  part of title 3 of article 14 of the election law, as added

        A. 4980--E                         24
 
     1  by section fifteen of this act be adjudged by  any  court  of  competent
     2  jurisdiction  to  be  invalid, such judgment shall not affect, impair or
     3  invalidate the remainder thereof, but shall be confined in its operation
     4  to the clause, sentence, subdivision, paragraph, section or part thereof
     5  directly  involved  in the controversy in which such judgment shall have
     6  been rendered.
     7    § 22. This act  shall  take  effect  immediately;  provided,  however,
     8  candidates  for state comptroller will be eligible to participate in the
     9  public financing system beginning with  the  2014  election,  all  state

    10  legislature  candidates  will  be  eligible to participate in the public
    11  financing system beginning with the 2016 election and all  state  candi-
    12  dates  and  constitutional  convention  delegates  will  be  eligible to
    13  participate in the public  financing  system  beginning  with  the  2018
    14  election; provided, however, that the amendments to section 3-104 of the
    15  election  law  made  by  sections  four  and five of this act shall take
    16  effect on the same date and same manner as section 4  of  subpart  B  of
    17  part H of chapter 55 of the laws of 2014, takes effect.
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