A08902 Summary:

BILL NOA08902A
 
SAME ASNo same as
 
SPONSORSilver (MS)
 
COSPNSRMillman, Carrozza, Wright, Weinstein, Gottfried, Espaillat, Peoples-Stokes
 
MLTSPNSRAlessi, Benedetto, Bing, Boyland, Brennan, Brodsky, Cahill, Canestrari, Christensen, Clark, Colton, Cook, DelMonte, Dinowitz, Englebright, Fields, Galef, Gantt, Gianaris, Glick, Gordon, Gunther, Hooper, Hoyt, Jacobs, John, Koon, Lancman, Latimer, Lavine, Lentol, Lifton, Lupardo, McEneny, Morelle, Nolan, O'Donnell, Ortiz, Paulin, Peralta, Perry, Pheffer, Pretlow, Reilly, Rivera P, Rosenthal, Scarborough, Sweeney, Weisenberg
 
Amd Art 14, add SS16-103 & 4-115, El L; add S92-t, St Fin L; amd S658, Tax L
 
Enacts the "2010 campaign finance reform 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 communications.
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A08902 Actions:

BILL NOA08902A
 
06/13/2009referred to election law
06/16/2009reported referred to codes
06/16/2009reference changed to ways and means
06/16/2009reported referred to rules
06/16/2009reported
06/16/2009rules report cal.394
06/16/2009ordered to third reading rules cal.394
06/16/2009passed assembly
06/16/2009delivered to senate
06/18/2009REFERRED TO RULES
01/06/2010DIED IN SENATE
01/06/2010RETURNED TO ASSEMBLY
01/06/2010ordered to third reading cal.631
01/20/2010committed to election law
05/06/2010amend and recommit to election law
05/06/2010print number 8902a
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A08902 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8902A
 
SPONSOR: Silver (MS)
  TITLE OF BILL: An act to amend the election law, in relation to enacting the "2010 Campaign Finance Reform 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 election law, in relation to identification of the source of certain political communications   SUBJECT AND PURPOSE: To provide optional public financing of campaigns for statewide offices, state legislative offices and constitu- tional convention delegates   SUMMARY AND DESCRIPTION OF PROVISIONS: The bill amends Article 14 of the election law to designate the existing law Title I and adds an iden- tification requirement for independent political communications, a filing requirement for independent expenditures and a requirement that certain candidates disclose their intent to spend personal funds in a campaign. It also adds a new Title II to Article 14 to provide for public financ- ing 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. TITLE I PROVISIONS Identification of Independent Political Communications: The bill requires all independent political communications that expressly advo- cate for the election or defeat of a clearly identified, candidate or the success or defeat of a ballot proposal and cost more than $1000 to identify the source of the funding for such communication. Independent Expenditures: The bill requires reporting of independent expenditures that cost more than $1000 and expressly advocates for the election or defeat of a clearly identified candidate or the success or defeat of a ballot proposal. Independent expenditures that occur after the last filing before an election must be reported within 24 hours. Disclosure of the Intent to Use Personal Funds: Within 3 days of the last day to file designating petitions, all candidates for statewide office, state legislative office or constitutional convention delegate must file a statement with the state board of elections disclosing whether the candidate has or will contribute personal funds to his or her committee and estimating the amount of such funds. TITLE II PROVISIONS   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, authorize a single participating committee; and identify the source of all campaign material.   ELIGIBILITY THRESHOLD: Governor: Must collect not less than $900,000 from at least 9,000 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 $300,000 from at least 3,000 matchable contributions made up of sums of up to $250 per individual contributor who resides in New York Sate. Senate: Must collect not less than $25,000 from at least 250 matchable contributions made up of sums of up to $250 per individual contributor who resides in New York state including at least $12,500 from at least 125 individual contributors who reside in the senate district in which the seat is to be filled. Assembly: Must collect not less than $10,300 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 in which the seat is to be filled. At-large Delegate to a Constitutional Convention: Must collect not less than $25,000 from at least 250 matchable contributions made up 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 in which the seat is to be filled.   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 $4 for every $1.   TRIGGERS: If, however, a candidate who dots not elect to receive public funds raises, spends or contributes his or her own personal funds in an amount greater than the expenditure limit established for such office for candidates participating in the public financing system, an additional grant of public funds is given to the participating candidate.   GRANTS: A participating candidate may receive up to four grants equaling 25% of the amount of public funds previously received by the candidate as a match for matchable contributions obtained and reported to the state board of elections. Each of the grants is added to the original expendi- ture limit, effectively creating a new TRIGGER for the next grant when the nonparticipating candidate raises, spends or contributes his or her own personal funds in an amount greater than the new expenditure limit.   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 whose opponents don't raise or spend 10% of the expenditure limit are deemed unopposed. 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), for payments in excess of fair market value, for any expenditure after the candidate or the candidate's only remaining opponent 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 (except brochures, buttons, signs and other campaign material).   CONTRIBUTION LIMIT: All candidates who choose to participate in the public financing system have a contribution limit of $2,000 per contributor. Expenditure Limits: The following expenditure limits apply to all candidates who participate in the public financing system: General Election Primary Governor $12,000,000 1.1 per enrolled voter or $600,000, whichever is more, but not to exceed $6,000,000 Lt. Governor -- $1.1 per enrolled voter o $300,000, whichever is more, but not to exceed $3,000,000 Attorney General & $6,000,000 Same as Lt, Governor Comptroller State Senator $350,000 $2.50 per enrolled voter or $35,000, whichever is more, but not to exceed $350,000 Member of Assembly $150,000 $2.50 per enrolled voter or $15,000, whichever is more, but not to exceed $150,000 At-Large Delegate $350,000 $.15 per enrolled voter or $75,000, whichever is more, but not to exceed $175,000 District Delegate $75,000 $1.10 per enrolled voter in the district or $5,000, whichever is more, but not to exceed $50,000   PARTY EXPENDITURES IN SUPPORT OF PARTICIPATING CANDIDATES: Notwithstanding the expenditure limits for participating candidates, state party committees may make the following expenditures for services to participating candidates: 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 tray constitute up to 25% of such party expenditures.   TAX CHECK-OFF: 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 Campaign Finance Fund. If the state campaign finance fund lacks the money to pay all properly certified claims, the deficiency will be paid from the general fund.   PENALTIES: TITLE: I The knowing and willful failure to identify the source of campaign communications will subject the candidate to a civil fine equal to $1000 or the cost of the communication, whichever is greater. A failure to file the statements required for an independent expenditure shall subject the person or entity to a cavil fine of $500. A knowing and willful failure to file the statement required regarding the use of personal funds in a campaign shall subject the candidate to a civil fine of up to $5000. TITLE II The failure to make proper campaign finance filings, as required by Title II and rules and regulations promulgated thereunder, shall subject the offender to a civil penalty of up to $5000. If a participating candidate's aggregate Expenditures exceed the expend- iture limitations, the candidate is liable for a civil penalty in an amount equal to three times- the amount of the excess.   LEGISLATIVE HISTORY: A11507-a of 2008.   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 participants. The hybrid "matching plus 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 impor- tant to the public. The matching component allows for participation by private citizens 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. The grant components containing 4 separate triggers, allows candidates that are outspent to remain competitive without giving a participating candidate an unnecessary windfall. The identification requirement for independent political communications, the filing requirement for independent expenditures and the requirement that candidates disclose their intent to spend personal funds in a campaign provide both participants and non-participants with information necessary to formulate their campaign strategy. The opportunity for party committees to make limited expenditures in support of participat- ing candidates provides flexibility to both the candidates and the parties. 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 will be no cost in 2009. In 2010, there could be costs associated with participating candidates seeking election to the office of State comptroller. There would be no cost in 2011, 2012 and 2013. In 2014, there could be costs associated with participating candidates seeking election to a statewide office and constitutional delegate. There will be no cost in 2015. In 2016, there could be costs associated with participating candidates seeking election to state legislative office. There would be no cost in 2017. In 2018, there could be costs associated with participating candidates seeking election to a statewide office, state legislative office and constitutional dele- gate. 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 2010 election, all state- wide candidates and constitutional delegates will be eligible to partic- ipate in 2014 and state legislative candidates will be eligible to participate in 2016.
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A08902 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         8902--A
 
                               2009-2010 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 13, 2009
                                       ___________
 
        Introduced  by  M.  of  A. SILVER, MILLMAN, CARROZZA, WRIGHT, WEINSTEIN,
          GOTTFRIED, ESPAILLAT, PEOPLES-STOKES -- Multi-Sponsored by -- M. of A.
          ALESSI, BENEDETTO, BING, BOYLAND,  BRENNAN,  BRODSKY,  CAHILL,  CANES-
          TRARI,  CHRISTENSEN,  CLARK,  COLTON, COOK, DelMONTE, DINOWITZ, ENGLE-
          BRIGHT, FIELDS, GALEF, GANTT, GIANARIS, GLICK, GORDON, GUNTHER,  HOOP-

          ER,  HOYT,  JACOBS,  JOHN,  KOON,  LANCMAN,  LATIMER,  LAVINE, LENTOL,
          LIFTON, LUPARDO, McENENY, MORELLE, NOLAN,  O'DONNELL,  ORTIZ,  PAULIN,
          PERRY,  PHEFFER,  PRETLOW,  REILLY, P. RIVERA, ROSENTHAL, SCARBOROUGH,
          SWEENEY, WEISENBERG -- read once and  referred  to  the  Committee  on
          Election  Law  --  committed  to Election Law -- committee discharged,
          bill amended, ordered reprinted as amended  and  recommitted  to  said
          committee
 
        AN  ACT  to  amend  the  election law, in relation to enacting the "2010
          Campaign Finance Reform 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 election law, in relation to identification of the
          source of certain political communications
 

          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 "2010 Campaign Finance Reform Act".
     3    § 2. Legislative findings and declaration.   The legislature  declares
     4  that it is in the public interest to create and ensure a truly democrat-
     5  ic  political  system  in  which citizens, irrespective of their income,
     6  status, or financial connections, are enabled and encouraged to  compete
     7  for  public  office.  Therefore,  the  legislature finds it necessary to
     8  establish a system of public financing for all qualified candidates  for
     9  state elective offices and constitutional convention delegates.
    10    §  3. The article heading of article 14 of the election law is amended
    11  to read as follows:
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14376-06-0

        A. 8902--A                          2
 
     1            CAMPAIGN RECEIPTS AND EXPENDITURES; PUBLIC FINANCING
 
     2    § 4. Section 14-100 of the election law is amended by adding three new
     3  subdivisions 12, 13, and 14 to read as follows:
     4    12. "clearly identified candidate" means that:
     5    (a) the name of the candidate involved appears;
     6    (b) a photograph or drawing of the candidate appears; or
     7    (c)  the  identity  of the candidate is apparent by unambiguous refer-
     8  ence.

     9    13. "general public audience" means an audience composed of members of
    10  the public, including a targeted subgroup  of  members  of  the  public;
    11  provided,  however,  it  does  not  mean an audience solely comprised of
    12  members, retirees and staff of a labor organization or  their  immediate
    13  family  members  or an audience solely comprised of employees of a busi-
    14  ness entity.
    15    14. "labor organization" means any  organization  of  any  kind  which
    16  exists  for  the purpose, in whole or in part, of representing employees
    17  employed within the state of New  York  in  dealing  with  employers  or
    18  employer  organizations  or with a state government, or any political or
    19  civil subdivision or other agency thereof, concerning terms  and  condi-

    20  tions  of employment, grievances, labor disputes, or other matters inci-
    21  dental to the employment relationship.  For the purposes of  this  arti-
    22  cle, each local, parent national or parent international organization of
    23  a  statewide labor organization, and each statewide federation receiving
    24  dues from subsidiary labor organizations, shall be considered a separate
    25  labor organization.
    26    § 5. Section 14-106 of the election law, as amended by  chapter  8  of
    27  the laws of 1978, is amended to read as follows:
    28    §  14-106.  Political  [advertisements  and literature] communication.
    29  The statements required to be filed under the provisions of this article
    30  next succeeding a primary, general or special election shall be accompa-

    31  nied by a [facsimile or] copy of all broadcast, cable or satellite sche-
    32  dules  and  scripts,  advertisements,  pamphlets,   circulars,   flyers,
    33  brochures,  letterheads  and  other printed matter purchased or produced
    34  [and a schedule of all radio or television time, and scripts used there-
    35  in], and reproductions of statements or  information  conveyed  to  five
    36  hundred  or  more  members  of  a general public audience by computer or
    37  other electronic device, purchased in connection with such  election  by
    38  or under the authority of the person filing the statement or the commit-
    39  tee  or the person on whose behalf it is filed, as the case may be. Such
    40  [facsimiles,] copies, schedules and scripts shall be  preserved  by  the

    41  officer with whom or the board with which it is required to be filed for
    42  a period of one year from the date of filing thereof.
    43    §  5-a.  The election law is amended by adding a new section 14-107 to
    44  read as follows:
    45    § 14-107. Independent expenditure reporting. 1. For purposes  of  this
    46  article:
    47    (a)  "Independent  expenditure"  means an expenditure made by a person
    48  for an audio or video communication to a  general  public  audience  via
    49  broadcast,  cable  or  satellite or a written communication to a general
    50  public  audience  via  advertisements,  pamphlets,  circulars,   flyers,
    51  brochures,  letterheads or other printed matter and statements or infor-
    52  mation conveyed to five hundred or more  members  of  a  general  public

    53  audience  by  computer  or other electronic devices which: (i) expressly
    54  advocates the election or defeat of a clearly  identified  candidate  or
    55  the  success or defeat of a ballot proposal and (ii) such candidate, the

        A. 8902--A                          3
 
     1  candidate's political committee or its agents, or a political  committee
     2  formed  to  promote  the  success  or defeat of a ballot proposal or its
     3  agents, did not authorize, request, suggest, foster or cooperate in  any
     4  such communication.
     5    (b) Independent expenditures do not include:
     6    (i)  a communication appearing in a written news story, commentary, or
     7  editorial or distributed through  the  facilities  of  any  broadcasting

     8  station,  cable  or  satellite unless such publication or facilities are
     9  owned or controlled by  any  political  party,  political  committee  or
    10  candidate; or
    11    (ii) a communication that constitutes a candidate debate or forum; or
    12    (iii)  a  communication  which  constitutes  an expenditure made by an
    13  entity required to report such expenditure with a board of elections.
    14    (c) For purposes of this section, the term "person" shall mean person,
    15  group of persons, entity, organization or association.
    16    2. Whenever any person makes an  independent  expenditure  that  costs
    17  more  than  one  thousand  dollars  in the aggregate, such communication
    18  shall clearly state the name of the person who paid  for,  or  otherwise

    19  published  or  distributed, the communication and state, with respect to
    20  communications regarding  candidates,  that  the  communication  is  not
    21  authorized  by any candidate, any candidate's political committee or any
    22  of its agents.  A knowing and willful violation  of  the  provisions  of
    23  this  subdivision  shall  subject the person to a civil penalty equal to
    24  one thousand dollars or the cost  of  the  communication,  whichever  is
    25  greater,  in  a  special proceeding or civil action brought by the state
    26  board of elections.
    27    3. (a) Any person which makes independent expenditures that cost  more
    28  than one thousand dollars in the aggregate shall report such independent
    29  expenditures  to  the state board of elections on statements as provided

    30  for in section 14-108 of this article.
    31    (b) Any independent expenditure made after the close of the period  to
    32  be  covered  in  the last statement filed before any primary, general or
    33  special election, but before such election,  shall  be  reported  within
    34  twenty-four  hours in the same manner as provided for in subdivision two
    35  of section 14-108 of this article.
    36    4. Each such statement shall include:
    37    (a) the name and address of the person making the statement;
    38    (b) the name and address of the person making the independent expendi-
    39  ture;
    40    (c) the name and address of any person or  entity  providing  a  gift,
    41  loan,  advance  or  deposit of one hundred dollars or more for the inde-

    42  pendent expenditure, or the provision of services for the same, and  the
    43  date  it  was given; provided, however, the name and address of a member
    44  of a labor organization is not required for a  gift,  loan,  advance  or
    45  deposit  of  one  hundred  dollars  or more to a labor organization or a
    46  labor organization political action committee;
    47    (d) the dollar amount paid for each independent expenditure, the  name
    48  and  address of the person or entity receiving the payment, the date the
    49  payment was made and a description of the independent expenditure; and
    50    (e) the election to which the independent expenditure pertains and the
    51  name of the clearly identified candidate or the ballot  proposal  refer-
    52  enced.

    53    5.  Any  report  made pursuant to this section shall include a copy of
    54  all materials that pertain to the independent expenditure, including but
    55  not limited to broadcast,  cable  or  satellite  schedule  and  scripts,

        A. 8902--A                          4
 
     1  advertisements, pamphlets, circulars, flyers, brochures, letterheads and
     2  other printed matter.
     3    6.  Any  report  of a loan that is made for an independent expenditure
     4  shall include written evidence of the indebtedness.
     5    7. Every statement required to be filed pursuant to this section shall
     6  be filed by electronic reporting process or overnight mail to the  state
     7  board of elections.

     8    8.  The  state  board  of  elections shall promulgate regulations with
     9  respect to the statements required to be filed by this section and shall
    10  provide forms suitable for such statements.
    11    § 5-b. Section 14-112 of the election law, as amended by  chapter  930
    12  of the laws of 1981, is amended to read as follows:
    13    §  14-112.  Political committee authorization statement.  1. Any poli-
    14  tical committee aiding or taking part in the election or  nomination  of
    15  any  candidate,  other  than by making contributions, shall file, in the
    16  office in which the statements of such committee are to be filed  pursu-
    17  ant  to this article, either a sworn verified statement by the treasurer
    18  of such committee  that  the  candidate  has  authorized  the  political
    19  committee  to aid or take part in his election or that the candidate has

    20  not authorized the committee to aid or take part in his election.
    21    2. No later than three days after the last  day  to  file  designating
    22  petitions, a candidate for statewide office, state legislative office or
    23  constitutional convention delegate shall file a statement with the state
    24  board  of elections stating whether the candidate has or will contribute
    25  personal funds to his or  her  authorized  committee  for  use  in  such
    26  election  and an estimate of the amount of personal funds contributed or
    27  to be contributed.  The knowing and willful failure to file  the  state-
    28  ment required by this subdivision shall subject the candidate to a civil
    29  penalty  not  to exceed five thousand dollars in a special proceeding or

    30  civil action brought by the state board of elections.
    31    § 5-c. Section 14-126 of the election law, as amended by chapter 8  of
    32  the laws of 1978, subdivision 1 as amended by chapter 128 of the laws of
    33  1994,  subdivisions 2, 3, and 4 as redesignated by chapter 9 of the laws
    34  of 1978, is amended to read as follows:
    35    § 14-126. Violations; penalties. 1. Any person who  fails  to  file  a
    36  statement  required  to  be  filed by this article shall be subject to a
    37  civil penalty, not in excess of five hundred dollars, to be  recoverable
    38  in a special proceeding or civil action to be brought by the state board
    39  of elections or other board of elections.
    40    2.  Any person who knowingly and willfully fails to identify independ-
    41  ent  expenditures  as  required  by subdivision two of section 14-107 or

    42  knowingly and willfully fails to file the statement required by subdivi-
    43  sion two of section 14-112 shall be subject to  a  civil  penalty  in  a
    44  special  proceeding  or  civil  action  brought  by  the  state board of
    45  elections.
    46    [2.] 3. Any person who knowingly and willfully fails to file a  state-
    47  ment required to be filed by this article within ten days after the date
    48  provided for filing such statement or any person who knowingly and will-
    49  fully  violates any other provision of this article shall be guilty of a
    50  misdemeanor.
    51    [3.] 4. Any person who knowingly and willfully contributes, accepts or
    52  aids or participates in the acceptance of a contribution  in  an  amount
    53  exceeding an applicable maximum specified in this article shall be guil-
    54  ty of a misdemeanor.

    55    [4.] 5. Any person who shall, acting on behalf of a candidate or poli-
    56  tical committee, knowingly and willfully solicit, organize or coordinate

        A. 8902--A                          5
 
     1  the formation of activities of one or more unauthorized committees, make
     2  expenditures  in connection with the nomination for election or election
     3  of any candidate, or solicit any person to make any  such  expenditures,
     4  for the purpose of evading the contribution limitations of this article,
     5  shall be guilty of a class E felony.
     6    §  6. Sections 14-100 through 14-130 of article 14 of the election law
     7  are designated title 1 and a new title  heading  is  added  to  read  as
     8  follows:
 
     9                     CAMPAIGN RECEIPTS AND EXPENDITURES
 
    10    § 7. Article 14 of the election law is amended by adding a new title 2

    11  to read as follows:
    12                                   TITLE II
    13                              PUBLIC FINANCING
    14  Section 14-200. Definitions.
    15          14-202. Eligibility.
    16          14-204. Qualified campaign expenditures.
    17          14-206. Optional public financing.
    18          14-208. Contribution and receipt limitations.
    19          14-210. Expenditure limitations.
    20          14-212. Examinations and audits; repayments.
    21          14-214. Civil penalties.
    22    §  14-200.  Definitions. As used in this title, unless another meaning
    23  is clearly indicated:
    24    1. The term "state board" shall mean the state board of elections.
    25    2. The term "eligible candidate" shall mean a candidate for nomination

    26  or election to any of the  offices  of  governor,  lieutenant  governor,
    27  comptroller, attorney general, member of the state legislature, at-large
    28  delegate  to  a  constitutional  convention  or  district  delegate to a
    29  constitutional convention.
    30    3. The term "participating committee" shall mean  a  single  political
    31  committee  which a candidate certifies is the committee that will solely
    32  be used to participate in the public  financing  system  established  by
    33  this title after January first of the year in which the primary, general
    34  or  special election is held for the public office sought.  A multi-can-
    35  didate committee may not be a participating committee.
    36    4. The term "participating candidate" shall mean a  candidate  who  is

    37  eligible  to  participate in the optional public financing system estab-
    38  lished by this title, has met the  threshold  for  eligibility  and  has
    39  elected to participate in the public financing system.
    40    5.  The  term "matchable contributions" shall mean that portion of the
    41  aggregate contributions made (a) in the case of  a  primary  or  general
    42  election, after January first of the year in which the primary or gener-
    43  al election is held for the public office sought or (b) in the case of a
    44  special  election, within six months of such election by natural persons
    45  resident in the state of New York  to  a  candidate  for  nomination  or
    46  election  to  any of the offices covered by the provisions of this title

    47  which do not exceed two hundred fifty dollars, which have been  reported
    48  in  full  by the candidate's participating committee to the state board,
    49  including the contributor's full name and residential address.  "Matcha-
    50  ble  contributions" shall be the net amount of any monetary contribution
    51  realized by a candidate or  designated  committee  after  deducting  the
    52  reasonable  value  of  any goods or services provided the contributor in
    53  connection with the contribution, except  that  contributions  from  any
    54  person who has received a payment or anything of value from such commit-

        A. 8902--A                          6
 
     1  tee  or  from  a person who is an officer, director or employee of, or a

     2  person who has a ten percent or greater ownership interest in any entity
     3  which has received such a payment or thing of value shall not be matcha-
     4  ble.  A loan may not be treated as a matchable contribution.
     5    6. The term "qualified campaign expenditure" shall mean an expenditure
     6  for which public funds may be used.
     7    7.  The  term  "fund"  shall  mean the New York state campaign finance
     8  fund.
     9    8. The term "threshold for eligibility" shall mean the amount of total
    10  matchable contributions that the participating committee of an otherwise
    11  eligible candidate must receive, as required by section 14-202  of  this
    12  title,  in  order  to  qualify for optional public financing pursuant to
    13  this title.

    14    9. The term "contribution" shall have the same meaning as in  subdivi-
    15  sion nine of section 14-100 of this article.
    16    § 14-202. Eligibility. 1. To be eligible for optional public financing
    17  under this title, a candidate for nomination or election must:
    18    (a)  Meet all the requirements of this chapter and other provisions of
    19  law to have his or her name on the ballot;
    20    (b) Be a candidate for statewide  office,  the  state  legislature  or
    21  delegate to a constitutional convention at a primary, general or special
    22  election and meet the threshold for eligibility set forth in subdivision
    23  two of this section;
    24    (c) Elect to participate in the public financing system established by

    25  this  title  not later than seven days after the last day to file desig-
    26  nating petitions for the office such candidate is  seeking  or,  in  the
    27  case of a special election, not later than the last day to file nominat-
    28  ing certificates for such office;
    29    (d) Agree to obtain and furnish to the state board any evidence it may
    30  reasonably  request  relating  to  his  or  her campaign expenditures or
    31  contributions and furnish such other proof of compliance with this title
    32  as may be requested by the state board;
    33    (e) Have a single authorized  political  committee  which  he  or  she
    34  certifies as the participating committee for the purposes of this title;
    35  and
    36    (f)  Agree to identify accurately in all campaign materials the person

    37  or entity that paid for such campaign material.
    38    2. The threshold for eligibility for public funding for candidates  in
    39  a  primary,  general or special election for the following offices shall
    40  be:
    41    (a) Governor in a primary or general  election.  Not  less  than  nine
    42  hundred  thousand dollars from at least nine thousand matchable contrib-
    43  utions made up of sums of up to two hundred fifty dollars per individual
    44  contributor who resides in New York state.
    45    (b) Lieutenant governor in  a  primary  election  and  comptroller  or
    46  attorney  general in a primary or general election.  Not less than three
    47  hundred thousand dollars from at least three thousand matchable contrib-

    48  utions made up of sums of up to two hundred fifty dollars per individual
    49  contributor who resides in New York state.
    50    (c) Members of the state senate  in  a  primary,  general  or  special
    51  election.  Not  less than twenty-five thousand dollars from at least two
    52  hundred fifty matchable contributions made up  of  sums  of  up  to  two
    53  hundred fifty dollars per individual contributor who resides in New York
    54  state  including  at  least twelve thousand five hundred dollars from at
    55  least one hundred twenty-five individual contributors who reside in  the
    56  senate district in which the seat is to be filled.

        A. 8902--A                          7
 
     1    (d) Members of the assembly in a primary, general or special election.

     2  Not  less  than ten thousand dollars from at least one hundred matchable
     3  contributions made up of sums of up to two  hundred  fifty  dollars  per
     4  individual  contributor who resides in New York state including at least
     5  five  thousand dollars from at least fifty individuals who reside in the
     6  assembly district in which the seat is to be filled.
     7    (e) At-large delegate to a constitutional convention in a  primary  or
     8  general  election.  Not  less  than twenty-five thousand dollars from at
     9  least two hundred fifty matchable contributions made up of sums of up to
    10  two hundred fifty dollars per individual contributor who resides in  New
    11  York state.
    12    (f)  District  delegate to a constitutional convention in a primary or

    13  general election. Not less than five  thousand  dollars  from  at  least
    14  fifty matchable contributions made up of sums of up to two hundred fifty
    15  dollars  per individual contributor who resides in the district in which
    16  the seat is to be filled.
    17    3. In order to be eligible  to  receive  public  funds  in  a  primary
    18  election  a  candidate must agree, that in the event such candidate is a
    19  candidate for such office in the general election  in  such  year,  that
    20  such candidate will be bound by the provisions of this title, including,
    21  but not limited to, the receipt and expenditure limits of this title.
    22    4.  Candidates  who are contested in a primary election and who do not
    23  seek public funds shall not be eligible for public funds for the general

    24  election in that year. The provisions  of  this  subdivision  shall  not
    25  apply to candidates for the office of lieutenant governor.
    26    5. Candidates who are unopposed in a general or special election shall
    27  not be eligible to receive public funds.
    28    6.  No  candidate  for  election to an office in a primary, general or
    29  special election who has elected to participate in the public  financing
    30  system  shall be deemed opposed and receive public funds unless at least
    31  one other candidate for such office in such election who also elected to
    32  participate in the public financing system, or such candidate's  commit-
    33  tee,  or  at  least one other candidate for such office in such election
    34  who has not elected to participate, or such candidate's committee,  have

    35  either spent, contracted or obligated to spend, or have contributed such
    36  candidate's  personal  funds  to  such  candidate's  committee  or  have
    37  received in loans or contributions, an amount exceeding ten  percent  of
    38  the expenditure limit for such office in such election which is fixed by
    39  this  title for candidates who have elected to accept such public funds.
    40  If any candidate for an office  and  the  committee  of  such  candidate
    41  reaches  the  threshold  to  qualify to receive public funds, or spends,
    42  contracts  or  obligates  to  spend,  or  contributes  such  candidate's
    43  personal  funds  to  such  candidate's committee or receives in loans or
    44  contributions, an amount exceeding ten percent of the expenditure  limit

    45  for  such  office in such election at any time after the filing deadline
    46  for the last report required to be filed before the  first  distribution
    47  of  public  funds  for  such  election, such candidate or committee must
    48  notify the state board of that fact within twenty-four hours in the same
    49  manner as provided in subdivision two of section 14-108 of this article.
    50    § 14-204. Qualified campaign expenditures. 1.  Public  funds  provided
    51  under  the provisions of this title may only be used for expenditures by
    52  the participating committee authorized by the candidate to make expendi-
    53  tures on such candidate's behalf, to further the candidate's  nomination
    54  or  election  after  January  first  of the year in which the primary or

    55  general election is held for the office sought, for services, materials,
    56  facilities or other things of value used during that campaign cycle  or,

        A. 8902--A                          8
 
     1  in  the  case  of a special election, for expenditures during the period
     2  commencing three months before and ending one month after  such  special
     3  election.  The  total of all expenditures made by the candidate and such
     4  candidate's  participating  committee,  including  all payments received
     5  from the fund, shall not exceed the expenditure limitations  established
     6  in  section  14-210  of  this title, except insofar as such payments are
     7  made to repay loans used to pay campaign expenditures.
     8    2. Such public funds may not be used for:

     9    (a) An expenditure in violation of any law of the United States or  of
    10  this state;
    11    (b)  Payments  or  anything of value given or made to the candidate, a
    12  relative of the candidate, or to a business entity  in  which  any  such
    13  person  has  a ten percent or greater ownership interest or of which any
    14  such person is an officer, director or employee;
    15    (c) Payment in excess of the fair market value of services, materials,
    16  facilities or other things of value received in exchange;
    17    (d) Any expenditure made after the  participating  candidate,  or  the
    18  only  remaining opponent of such candidate, has been disqualified or had
    19  such candidate's petitions declared invalid by a board of elections or a

    20  court of  competent  jurisdiction  until  and  unless  such  finding  is
    21  reversed by a higher authority.
    22    (e)  Any expenditure made to challenge the validity of any petition of
    23  designation or nomination or any certificate of nomination,  acceptance,
    24  authorization, declination or substitution;
    25    (f)  Expenditure for noncampaign related food, drink or entertainment;
    26  and
    27    (g) Gifts, except brochures, buttons, signs and other campaign materi-
    28  al.
    29    § 14-206. Optional public financing. 1. Participating  candidates  for
    30  nomination  or  election  in  primary, general and special elections may
    31  obtain payment to a participating committee from public funds for quali-

    32  fied campaign expenditures. No such public funds  shall  be  paid  to  a
    33  participating  committee  until the candidate has qualified to appear on
    34  the ballot and filed a sworn statement with the state board electing  to
    35  participate  in  the  optional  public  financing system and agreeing to
    36  abide by the requirements of this title.  Payments shall not exceed  the
    37  amounts  specified  in  this title, and shall be made only in accordance
    38  with the provisions of this title. Such payments may only be made  to  a
    39  participating candidate's participating committee. No public funds shall
    40  be  used  except  as  reimbursement  or  payment  for qualified campaign
    41  expenditures actually and lawfully incurred or to repay  loans  used  to

    42  pay qualified campaign expenditures.
    43    2.  The  participating committee of each participating candidate shall
    44  be entitled to four dollars in public  funds  for  each  one  dollar  of
    45  matchable  contributions  obtained  and  reported  to the state board in
    46  accordance with the provisions of this title,  provided,  however,  such
    47  public funds shall only be used for qualified campaign expenditures.
    48    3.  (a)  However,  if  any candidate in any election for an office for
    49  which public funds are available pursuant  to  the  provisions  of  this
    50  title,  elects  not  to  accept  public funds and such candidate or such
    51  candidate's committee either spends, contracts or obligates to spend, or

    52  contributes such candidate's personal funds to such candidate's  commit-
    53  tee  or  receives  in  loans  or  contributions, an amount exceeding the
    54  expenditure limit for such office, as fixed by this title for candidates
    55  who have elected to accept public funds,  then  (i)  such  candidate  or
    56  committee  must  notify  the  state board of the fact within twenty-four

        A. 8902--A                          9
 
     1  hours via the internet using the electronic filing system established by
     2  the state board, or if such candidate does not file  electronically  via
     3  the internet, by facsimile or overnight mail; and (ii) the participating
     4  committee of each participating candidate for such office shall be enti-

     5  tled  to  a  grant  of  public funds equal to twenty-five percent of the
     6  total amount of public funds received by the participating candidate for
     7  matchable contributions obtained and reported to the state  board.  Such
     8  grant  shall be paid within two business days and shall only be used for
     9  qualified campaign expenditures.
    10    (b) However, if any candidate in any election for an office for  which
    11  public  funds  are  available  pursuant to the provisions of this title,
    12  elects not to accept public funds and such candidate or such candidate's
    13  committee either spends, contracts or obligates to spend, or contributes
    14  such  candidate's  personal  funds  to  such  candidate's  committee  or

    15  receives in loans or contributions, an amount exceeding the total of the
    16  expenditure limit for such office, as fixed by this title for candidates
    17  who  have  elected  to accept public funds, plus the twenty-five percent
    18  grant already received by the participating  candidate,  then  (i)  such
    19  candidate  or  committee  must notify the state board of the fact within
    20  twenty-four hours via the internet using the  electronic  filing  system
    21  established by the state board, or if such candidate does not file elec-
    22  tronically  via  the  internet, by facsimile or overnight mail; and (ii)
    23  the participating committee of each  participating  candidate  for  such
    24  office shall be entitled to an additional grant of public funds equal to

    25  twenty-five  percent of the total amount of public funds received by the
    26  participating  candidate  for  matchable  contributions   obtained   and
    27  reported  to  the state board. Such grant shall be paid within two busi-
    28  ness days and shall only be used for qualified campaign expenditures.
    29    (c) However, if any candidate in any election for an office for  which
    30  public  funds  are  available  pursuant to the provisions of this title,
    31  elects not to accept public funds and such candidate or such candidate's
    32  committee either spends, contracts or obligates to spend, or contributes
    33  such  candidate's  personal  funds  to  such  candidate's  committee  or
    34  receives in loans or contributions, an amount exceeding the total of the

    35  expenditure limit for such office, as fixed by this title for candidates
    36  who  have  elected  to accept public funds, plus the fifty percent total
    37  aggregate grant already received by the  participating  candidate,  then
    38  (i)  such candidate or committee must notify the state board of the fact
    39  within twenty-four hours via the internet using  the  electronic  filing
    40  system  established  by  the  state board, or if such candidate does not
    41  file electronically via the internet, by facsimile  or  overnight  mail;
    42  and (ii) the participating committee of each participating candidate for
    43  such  office  shall  be  entitled to an additional grant of public funds
    44  equal to twenty-five  percent  of  the  total  amount  of  public  funds

    45  received  by  the  participating  candidate  for matchable contributions
    46  obtained and reported to the state board. Such grant shall be paid with-
    47  in two business days and shall  only  be  used  for  qualified  campaign
    48  expenditures.
    49    (d)  However, if any candidate in any election for an office for which
    50  public funds are available pursuant to the  provisions  of  this  title,
    51  elects not to accept public funds and such candidate or such candidate's
    52  committee either spends, contracts or obligates to spend, or contributes
    53  such  candidate's  personal  funds  to  such  candidate's  committee  or
    54  receives in loans or contributions, an amount exceeding the total of the
    55  expenditure limit for such office, as fixed by this title for candidates

    56  who have elected to accept public funds, plus the  seventy-five  percent

        A. 8902--A                         10
 
     1  total  aggregate  grant already received by the participating candidate,
     2  then (i) such candidate or committee must notify the state board of  the
     3  fact  within  twenty-four  hours  via  the internet using the electronic
     4  filing  system established by the state board, or if such candidate does
     5  not file electronically via the  internet,  by  facsimile  or  overnight
     6  mail;  and (ii) the participating committee of each participating candi-
     7  date for such office shall be entitled to an additional grant of  public
     8  funds  equal  to twenty-five percent of the total amount of public funds

     9  received by the  participating  candidate  for  matchable  contributions
    10  obtained and reported to the state board. Such grant shall be paid with-
    11  in two business days and may only be used for qualified campaign expend-
    12  itures.
    13    4.  (a) No participating candidate for nomination for an office who is
    14  unopposed in a primary election shall be entitled to  payment  from  the
    15  fund for qualified campaign expenditures.
    16    (b)  Where there is a contest in such primary for the nomination of at
    17  least one other party for such office, the participating committee of an
    18  unopposed participating candidate for nomination may raise and spend  an
    19  amount equal to one-half the expenditure limit for such office, as fixed

    20  by  this  title  for candidates who have elected to accept public funds,
    21  with contributions of up to two thousand dollars per contributor.   Such
    22  payment  can  only be expended for property, services or facilities used
    23  on or before the date of such primary election.
    24    5. The state board shall promptly examine all reports of contributions
    25  to determine whether, on their face,  they  meet  the  requirements  for
    26  matchable contributions, and shall keep a record of such contributions.
    27    6.  The state board shall promulgate regulations for the certification
    28  of the amount of funds payable by the comptroller, from the fund  estab-
    29  lished  pursuant  to section ninety-two-t of the state finance law, to a

    30  participating candidate that has  qualified  to  receive  such  payment.
    31  These  regulations  shall  include  the promulgation and distribution of
    32  forms on which contributions and expenditures are to  be  reported,  the
    33  periods  during  which  such  reports must be filed and the verification
    34  required. The state board shall institute  procedures  which  will  make
    35  possible  payment by the fund within four business days after receipt of
    36  the required forms and verifications.
    37    § 14-208. Contribution and receipt limitations. 1.   In  any  primary,
    38  special  or general election for any statewide office, state legislative
    39  office or constitutional convention delegate no contributor may  make  a

    40  contribution  to any participating candidate or such candidate's partic-
    41  ipating committee,  and  no  participating  candidate  or  participating
    42  committee may accept any contribution from any contributor which, in the
    43  aggregate amount, is greater than two thousand dollars.
    44    2.  (a) Notwithstanding the expenditure limit for such office as fixed
    45  by this title for candidates who have elected to accept public funds,  a
    46  participating candidate for governor or lieutenant governor in a primary
    47  or  general  election  or  such  candidate's participating committee may
    48  accept from a state party committee which has nominated  such  candidate
    49  services  in  an  amount  which,  in  the aggregate, does not exceed two

    50  million five hundred thousand dollars; provided, however,  that  twenty-
    51  five percent of such amount may be accepted in the form of a transfer.
    52    (b)  Notwithstanding the expenditure limit for such office as fixed by
    53  this title for candidates who have elected to  accept  public  funds,  a
    54  participating candidate for attorney general or comptroller in a primary
    55  or  general  election  or  such  candidate's participating committee may
    56  accept from a state party committee which has nominated  such  candidate

        A. 8902--A                         11
 
     1  services  in  an  amount  which,  in  the aggregate, does not exceed one
     2  million dollars; provided, however, that  twenty-five  percent  of  such

     3  amount may be accepted in the form of a transfer.
     4    (c)  Notwithstanding the expenditure limit for such office as fixed by
     5  this title for candidates who have elected to  accept  public  funds,  a
     6  participating  candidate  for  state  senator  in  a primary, general or
     7  special election or such candidate's participating committee may  accept
     8  from a state party committee which has nominated such candidate services
     9  in  an amount which, in the aggregate, does not exceed one hundred thou-
    10  sand dollars; provided, however, that twenty-five percent of such amount
    11  may be accepted in the form of a transfer.
    12    (d)  Notwithstanding the expenditure limit for such office as fixed by
    13  this title for candidates who have elected to  accept  public  funds,  a

    14  participating candidate for member of the assembly in a primary, general
    15  or  special  election  or  such  candidate's participating committee may
    16  accept from a state party committee which has nominated  such  candidate
    17  services  in  an  amount  which, in the aggregate, does not exceed fifty
    18  thousand dollars; provided, however, that twenty-five  percent  of  such
    19  amount may be accepted in the form of a transfer.
    20    (e)  Notwithstanding the expenditure limit for such office as fixed by
    21  this title for candidates who have elected to  accept  public  funds,  a
    22  participating  candidate  for  delegate  at-large  to  a  constitutional
    23  convention in a  general  election  or  such  candidate's  participating

    24  committee  may  accept  from a state party committee which has nominated
    25  such candidate services in an amount which, in the aggregate,  does  not
    26  exceed  fifty  thousand  dollars;  provided,  however,  that twenty-five
    27  percent of such amount may be accepted in the form of a transfer.
    28    (f) Notwithstanding the expenditure limit for such office as fixed  by
    29  this  title  for  candidates  who have elected to accept public funds, a
    30  participating  candidate  for  district  delegate  to  a  constitutional
    31  convention  in  a  general  election  or  such candidate's participating
    32  committee may accept from a state party committee  which  has  nominated
    33  such  candidate  services in an amount which, in the aggregate, does not

    34  exceed ten thousand dollars; provided, however, that twenty-five percent
    35  of such amount may be accepted in the form of a transfer.
    36    (g) For purposes of this subdivision, the term state  party  committee
    37  includes any of its subcommittees.
    38    3.  Notwithstanding  any  expenditure  limit in this subdivision, each
    39  county committee of any party which nominates a candidate for  statewide
    40  office  or  state  legislative  office, including within the term county
    41  committee any of its  subcommittees,  may  expend  in  support  of  such
    42  party's  candidates for statewide office or state legislative office who
    43  has agreed to accept public financing, an amount which shall not  exceed
    44  the  sum of two cents for each voter registered in such county as deter-

    45  mined by the records of the appropriate board of  elections  as  of  the
    46  preceding general election.
    47    4.  In  computing  the  aggregate amount expended for purposes of this
    48  section, expenditures made by  a  state  party  committee  or  a  county
    49  committee in support of more than one candidate shall be allocated among
    50  such  candidates  supported by the committee in accordance with formulas
    51  promulgated by the state board or,  in  the  absence  of  such  official
    52  formulas,  in accordance with a formula based upon reasonable standards.
    53  The statements filed by such party committee  in  accordance  with  this
    54  chapter  shall set forth, in addition to the other information required,
    55  the total amount expended by the party committee on behalf of  all  such

    56  candidates  and  the amount allocated to each candidate by dollar amount

        A. 8902--A                         12
 
     1  and percentage.  Expenditures by a party for  activities  which  do  not
     2  support or oppose the election of any candidate or candidates by name or
     3  by clear inference shall not be regarded as expenditures on behalf of or
     4  in opposition to a candidate.
     5    5.  A  participating  candidate  for  a public office for which public
     6  funds are available pursuant to this title shall not accept any contrib-
     7  utions any earlier than one day after the previous general election  for
     8  the office which such candidate is seeking, or any later than the day of
     9  the  general election for the office sought, except that a participating

    10  candidate or participating committee which has a deficit on the  day  of
    11  the general election may, after such date, accept contributions which do
    12  not exceed the amount of such deficit and the expenses incurred in rais-
    13  ing such contributions or the expenditure limit for such office as fixed
    14  by  this  title  for candidates who have elected to accept public funds.
    15  Contributions to a participating candidate  or  participating  committee
    16  which  were  received before the effective date of this title may not be
    17  expanded in any election for any such office.
    18    6. Except for the limitations specifically set forth in this  section,
    19  participating  candidates  shall  be  subject  to the provisions of this
    20  article.

    21    § 14-210. Expenditure limitations. The following  expenditure  limita-
    22  tions  apply  to  all expenditures by participating candidates and their
    23  participating  committees  receiving  public  funds  pursuant   to   the
    24  provisions of this title:
    25    1.  (a)  In any primary election, expenditures by participating candi-
    26  dates and by their participating committees shall not exceed:
    27    (i) for governor, the sum of one dollar and ten cents for  each  voter
    28  enrolled  in the candidate's party in the state; provided, however, such
    29  sum shall not be less than nine hundred thousand dollars nor  more  than
    30  nine million dollars;
    31    (ii) for lieutenant governor, comptroller or attorney general, the sum

    32  of  one  dollar and ten cents for each voter enrolled in the candidate's
    33  party in the state; provided, however, such sum shall not be  less  than
    34  six hundred thousand dollars nor more than six million dollars;
    35    (iii)  for  senator,  the  sum of two dollars and fifty cents for each
    36  voter  enrolled  in  the  candidate's  party  in  the  senate  district;
    37  provided,  however, such sum shall not be less than thirty-five thousand
    38  dollars nor more than three hundred fifty thousand dollars;
    39    (iv) for member of the assembly, the sum  of  two  dollars  and  fifty
    40  cents  for  each voter enrolled in the candidate's party in the assembly
    41  district; provided, however, such sum shall not  be  less  than  fifteen

    42  thousand dollars nor more than one hundred fifty thousand dollars;
    43    (v)  for  at-large delegate to a constitutional convention, the sum of
    44  fifteen cents for each voter enrolled in the candidate's  party  in  the
    45  state;  provided,  however, such sum shall not be less than seventy-five
    46  thousand  dollars  nor  more  than  one  hundred  seventy-five  thousand
    47  dollars;
    48    (vi) for district delegates to a constitutional convention, the sum of
    49  one  dollar  and  ten  cents  for each voter enrolled in the candidate's
    50  party in the district; provided, however, such sum  shall  not  be  less
    51  than five thousand dollars nor more than fifty thousand dollars;
    52    (b)  The  enrollment  numbers used to calculate the expenditure limits

    53  provided for in this subdivision shall be the enrollments duly  reported
    54  by  the  appropriate  board or boards of election as of the last general
    55  election preceding the primary election.

        A. 8902--A                         13
 
     1    2.  In any general or special election, expenditures by  participating
     2  candidates  for the following offices and by their participating commit-
     3  tees shall not exceed the following amounts:
     4    Candidates for election to the office of:
     5    Governor and lieutenant governor (combined)                $12,000,000
     6    Attorney general                                           $8,000,000
     7    Comptroller                                                $8,000,000

     8    Member of senate                                           $350,000
     9    Member of assembly                                         $150,000
    10    Delegate at-large to a constitutional convention           $350,000
    11    District delegate to a constitutional convention           $75,000
    12    3. Participating candidates for office who are unopposed in the prima-
    13  ry  election may expend before the primary election, for services, mate-
    14  rials or facilities used on or before the date of such primary election,
    15  an amount equal to half the sum such candidates  would  be  entitled  to
    16  spend  if  their  nomination  was  contested  in  such  primary election
    17  provided there is a primary contest for the nomination of at  least  one

    18  other party for such office.
    19    4.  Expenditures  for legal fees and reasonable expenses to defend the
    20  validity of petitions of designation or nomination  or  certificates  of
    21  nomination,  acceptance,  authorization, declination or substitution, or
    22  to successfully challenge any such petition or certificate on grounds of
    23  fraud, or for expenses incurred to  comply  with  the  campaign  finance
    24  reporting  requirements  of  this  article,  shall not be subject to the
    25  expenditure limits of this subdivision.
    26    § 14-212. Examinations and audits;  repayments.  1.  The  state  board
    27  shall  conduct a thorough examination and audit of the contributions and
    28  qualified campaign expenses of  the  participating  committee  of  every

    29  participating candidate who received payments pursuant to section 14-206
    30  of this title.
    31    2.  (a)  If the state board determines that any portion of the payment
    32  made to a participating committee from the fund was  in  excess  of  the
    33  aggregate  amount of payments to which such eligible candidate was enti-
    34  tled pursuant to section 14-206 of this  title,  it  shall  notify  such
    35  committee of the excess amount and such committee shall pay to the state
    36  board an amount equal to the amount of excess payments.
    37    (b) If the state board determines that any amount of payment made to a
    38  participating  committee  from the fund was used for purposes other than
    39  to defray qualified campaign expenses, it shall notify such  participat-

    40  ing  committee of the amount disqualified and such participating commit-
    41  tee shall pay to the state board an amount equal  to  such  disqualified
    42  amount.
    43    (c)  If the total of contributions and payments from the fund received
    44  by  any  participating  candidate  and  such  candidate's  participating
    45  committee,  exceeds  the  campaign  expenditures  of  such candidate and
    46  committee, such candidate and committee shall use such excess  funds  to
    47  reimburse the fund for payments received by such committee from the fund
    48  not later than ten days after all permissible liabilities have been paid
    49  and  in any event, not later than March thirty-first of the year follow-
    50  ing the year of the election for which such payments were  intended.  No

    51  such excess funds shall be used for any other purpose.
    52    3. If a court of competent jurisdiction disqualifies a candidate whose
    53  participating  committee  has  received public funds on the grounds that
    54  such candidate committed fraudulent acts in order to obtain a  place  on
    55  the  ballot  and  such  decision is not reversed by a higher court, such
    56  candidate and such candidate's participating committee shall pay to  the

        A. 8902--A                         14
 
     1  state  board  an  amount  equal to the total of public funds received by
     2  such participating committee.
     3    4.  The  state  board  must provide written notice of all payments due
     4  from a participating candidate or  such  candidate's  committee  to  the

     5  state board and provide an opportunity for the candidate or committee to
     6  rebut, in whole or in part, the alleged amount due. Upon a final written
     7  determination  by  the  state board, the amount due shall be paid to the
     8  state board within thirty days of such determination.
     9    5. All payments received by the state board pursuant to  this  section
    10  shall  be  deposited  in the New York state campaign finance fund estab-
    11  lished by section ninety-two-t of the state finance law.
    12    § 14-214. Civil penalties. 1. Any person who fails to file a statement
    13  or record required to be filed by this title or the rules or regulations
    14  of the state board in implementation thereof shall be subject to a civil

    15  penalty, not in excess of five thousand dollars, to be recoverable in  a
    16  special proceeding or civil action brought by the state board.
    17    2.  If  the aggregate amount of expenditures by a participating candi-
    18  date and such candidate's participating committee exceeds  the  expendi-
    19  ture  limitations  contained  in this title such participating candidate
    20  shall be liable for a civil penalty in an amount equal  to  three  times
    21  the  sum  by  which such expenditures exceed the permitted amount, to be
    22  recoverable in a special proceeding or civil action brought by the state
    23  board.
    24    3. All payments received by the state board pursuant to  this  section
    25  shall  be  deposited  in the New York state campaign finance fund estab-

    26  lished by section ninety-two-t of the state finance law.
    27    § 8. The election law is amended by adding a  new  section  16-103  to
    28  read as follows:
    29    §  16-103. Proceedings as to public financing. 1. The determination of
    30  eligibility pursuant to section 14-202 of this chapter and any  question
    31  or issue relating to payments for qualified campaign expenditures pursu-
    32  ant  to  section 14-206 of this chapter may be contested in a proceeding
    33  instituted in the Supreme court, Albany county, by any aggrieved  candi-
    34  date.
    35    2. A proceeding with respect to such a determination of eligibility or
    36  payment  for  qualified campaign expenditures pursuant to section 14-206
    37  of this chapter shall be instituted within seven days after such  deter-

    38  mination  was  made.  The  state board shall be made a party to any such
    39  proceeding.
    40    3. Upon the state board's failure to receive the  amount  due  from  a
    41  participating candidate or such candidate's committee after the issuance
    42  of written notice of such amount due, as required by subdivision four of
    43  section  14-212 of this chapter, the state board is authorized to insti-
    44  tute a special proceeding or civil action in Supreme Court, Albany coun-
    45  ty, to obtain a judgment for any amounts determined to be payable to the
    46  state board as a result of an examination and  audit  made  pursuant  to
    47  title II of article fourteen of this chapter.
    48    4.  The state board is authorized to institute a special proceeding or

    49  civil action in Supreme Court, Albany county, to obtain a  judgment  for
    50  civil  penalties determined to be payable to the state board pursuant to
    51  section 14-214 of this chapter.
    52    § 9. The election law is amended by adding a new section 4-115 to read
    53  as follows:
    54    § 4-115. Notice to the state board of elections of candidates for  the
    55  legislature.  1.  Each board of elections with which petitions are filed
    56  for member of the state legislature shall, not later than one week after

        A. 8902--A                         15
 
     1  the last day to file such petitions, send notice to the state  board  of
     2  elections  of  such  information  about  each such petition as the state
     3  board shall require.

     4    2.  Each  such county board of elections shall, not later than the day
     5  after the last day to file a petition or certificate of nomination for a
     6  general or special election or a certificate of acceptance,  declination
     7  or  substitution for a general, primary or special election for any such
     8  office, send to the state board of elections such information about each
     9  such petition or certificate as the state board shall require.
    10    3. If any such county board of elections should  disqualify  any  such
    11  candidate  or rule the petition or certificate designating or nominating
    12  any such candidate invalid, it shall forthwith notify the state board of
    13  elections of such decision.
    14    4. If any such county board of elections shall be notified of a  deci-

    15  sion  of a court of competent jurisdiction disqualifying any such candi-
    16  date or declaring any such petition invalid or reversing any such  deci-
    17  sion  by  such  board  of  elections  or  another  court,  such board of
    18  elections shall forthwith notify the state board of  elections  of  such
    19  decision.
    20    5.  The  state  board of elections may prescribe forms for the notices
    21  required by this section and shall prescribe the manner  in  which  such
    22  notices shall be given.
    23    § 10. The state finance law is amended by adding a new section 92-t to
    24  read as follows:
    25    §  92-t.  New  York  state campaign finance fund. 1.   There is hereby
    26  established in the joint  custody  of  the  state  comptroller  and  the

    27  commissioner  of taxation and finance a fund to be known as the New York
    28  state campaign finance fund.
    29    2. Such fund shall consist of all revenues received from the New  York
    30  state  campaign  finance  fund  check-off  pursuant to subsection (f) of
    31  section six hundred fifty-eight of the tax law, from the  general  fund,
    32  and from all other moneys credited or transferred thereto from any other
    33  fund or source pursuant to law.
    34    3. Moneys of the fund, following appropriation by the legislature, may
    35  be  expended  for the purposes of making payments to candidates pursuant
    36  to title II of article fourteen of the election  law.  Moneys  shall  be
    37  paid  out  of the fund on the audit and warrant of the state comptroller

    38  on vouchers certified or approved by the state board  of  elections,  or
    39  its duly designated representative, in the manner prescribed by law, not
    40  more  than four working days after such voucher is received by the state
    41  comptroller.
    42    4. Notwithstanding any provision of law to the contrary,  if,  in  any
    43  state  fiscal  year, the state campaign finance fund lacks the amount of
    44  money to pay all claims vouchered by eligible candidates  and  certified
    45  or  approved  by the state board of elections, any such deficiency shall
    46  be paid, upon audit and warrant of the  state  comptroller,  from  funds
    47  deposited  in  the  general fund of the state not more than four working
    48  days after such voucher is received by the state comptroller.

    49    5. Commencing in two thousand fifteen, if the surplus in the  fund  on
    50  April  first  of  the  year  after a year in which a governor is elected
    51  exceeds twenty-five percent of the disbursements from the fund over  the
    52  previous  four years, the excess shall revert to the general fund of the
    53  state.
    54    6. No public funds shall be paid to any participating candidates in  a
    55  primary  election any earlier than the day that such candidate is certi-
    56  fied as being on the ballot for such primary election.

        A. 8902--A                         16
 
     1    7. No public funds shall be paid to any participating candidates in  a
     2  general  election  any earlier than the day after the day of the primary

     3  election held to nominate candidates for such election.
     4    8.  No public funds shall be paid to any participating candidates in a
     5  special election any earlier than the day after the  last  day  to  file
     6  certificates of party nomination for such special election.
     7    9.  No  public  funds shall be paid to any participating candidate who
     8  has been disqualified or whose designating petitions have been  declared
     9  invalid  by  the  appropriate board of elections or a court of competent
    10  jurisdiction until and unless such  finding  is  reversed  by  a  higher
    11  authority.  No  payment from the fund in the possession of such a candi-
    12  date or such candidate's participating committee on  the  date  of  such

    13  disqualification  or  invalidation  may  thereafter  be expended for any
    14  purpose except the payment of liabilities incurred before such date. All
    15  such moneys shall be repaid to the fund.
    16    § 11. Section 658 of the tax law is amended by adding a new subsection
    17  (f) to read as follows:
    18    (f) New York state campaign finance fund  check-off.    (1)  For  each
    19  taxable  year  beginning  on  and after January first, two thousand ten,
    20  every individual whose New York state income tax liability for the taxa-
    21  ble year for which the return is filed  is  five  dollars  or  more  may
    22  designate  on  such  return  that five dollars be paid into the New York
    23  state campaign finance fund established by section ninety-two-t  of  the

    24  state  finance  law.    Where a husband and wife file a joint return and
    25  have a New York state income tax liability  for  the  taxable  year  for
    26  which  the  return  is  filed  of  ten dollars or more, or file separate
    27  returns on a single form, each such taxpayer may  make  separate  desig-
    28  nations  on  such  return  of  five dollars to be paid into the New York
    29  state campaign finance fund.
    30    (2) The commissioner shall transfer to the  New  York  state  campaign
    31  finance  fund, established pursuant to section ninety-two-t of the state
    32  finance law, an amount equal to five dollars multiplied by the number of
    33  designations.
    34    (3) For purposes of this subsection, the income tax  liability  of  an

    35  individual  for any taxable year is the amount of tax imposed under this
    36  article reduced by the sum of the  credits  (as  shown  in  his  or  her
    37  return) allowable under this article.
    38    (4)  The department shall include a place on every personal income tax
    39  return form to be filed by an individual for a tax year beginning on  or
    40  after  January  first,  two  thousand ten, immediately above the certif-
    41  ication under which the taxpayer is required to sign such form, for such
    42  taxpayer to make the designations described in  paragraph  one  of  this
    43  subsection.  Such return form shall contain a concise explanation of the
    44  purpose of such optional designations.
    45    § 12. Campaign finance review panel. 1. There is  hereby  created  and

    46  established the "campaign finance review panel". The panel shall consist
    47  of  the  commissioner of taxation and finance, the director of the divi-
    48  sion of the budget, the state comptroller and the  two  members  of  the
    49  state  board  of  elections  who rotate as chairperson of the board. The
    50  commissioner of taxation and finance shall be chairperson.
    51    2. The panel is empowered and it shall be  its  duty  to  monitor  and
    52  review  the  implementation of the 2010 Campaign Finance Reform Act. The
    53  panel shall report to the governor and the legislature on March 31, 2012
    54  and on March 31, 2014. The report  shall  include:  (a)  the  number  of
    55  candidates  qualifying  and  opting  for  public  financing, the amounts
    56  expended for this purpose in the preceding fiscal year and a  projection

        A. 8902--A                         17
 

     1  of the number of candidates likely to qualify and opt for public financ-
     2  ing  and  their expenditures in future elections; (b) an analysis of the
     3  effect of the 2010 Campaign Finance Reform Act on  political  campaigns,
     4  including  its  effect  on the sources and amounts of private financing,
     5  the level of campaign expenditures, voter participation, the  number  of
     6  candidates  and  the  candidate's  ability  to  campaign effectively for
     7  public office; (c) a review of  the  procedures  utilized  in  providing
     8  public funds to candidates; and (d) such recommended changes in the 2010
     9  Campaign Finance Reform Act as it deems appropriate.
    10    §  13.  Severability. If any clause, sentence, subdivision, paragraph,
    11  section or part of title II of article 14 of the election law, as  added
    12  by  section  seven  of  this  act  be adjudged by any court of competent

    13  jurisdiction to be invalid, such judgment shall not  affect,  impair  or
    14  invalidate the remainder thereof, but shall be confined in its operation
    15  to the clause, sentence, subdivision, paragraph, section or part thereof
    16  directly  involved  in the controversy in which such judgment shall have
    17  been rendered.
    18    § 14. This act  shall  take  effect  immediately;  provided,  however,
    19  candidates  for state comptroller will be eligible to participate in the
    20  public financing system beginning with  the  2010  election,  all  state
    21  candidates  and  constitutional convention delegates will be eligible to
    22  participate in the public  financing  system  beginning  with  the  2014
    23  election  and  state  legislature candidates will be eligible to partic-
    24  ipate in the public financing system beginning with the 2016 election.
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