NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1248
SPONSOR: Cahill (MS) TITLE OF BILL: An act to amend the election law and the public offi-
cers law, in relation to campaign funds for personal use
PURPOSE OR GENERAL IDEA OF BILL:
This legislation will more clearly delineate how candidates for elected
office can and cannot use their campaign funds, establish rules and
methods for the disposal of excess campaign funds and for the timing of
such disposal, require that they specifically detail campaign contrib-
utions by lobbyists and prohibit the soliciting or receiving of contrib-
utions for campaigns for state or federal office by senior policy makers
in the executive and legislative branch.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends section 14-130 of the election law, delineating how
campaign funds can be spent; Section 2 adds a new section 14-132 to the
election law, delineating when and how candidates must dispose of left
over campaign funds; Section 3 amends section 14-102 of the election
law, requiring that campaign filings state whether a contributor is a
lobbyist required to register pursuant to article one-A of the legisla-
tive law; and Section 4 amends subdivision 3 of section 74 of the public
officers law, prohibiting any employee of a state agency or legislative
employee required to file an annual statement of financial disclosure
from soliciting or receiving contributions for a campaign for state or
federal office.
JUSTIFICATION:
This bill addresses a number of concerns with how campaign funds are
raised and expended. Currently, New York's election law, allowing candi-
dates to spend campaign funds for "any lawful purpose," is among the
most lax in the nation. While spending campaign funds for personal use
is technically prohibited, the lack of any definition for what consti-
tutes a personal use renders the provision meaningless. This shortcoming
in the law is striking when compared to the detailed restrictions issued
by the Federal Election Commission. And when it is combined with the
provision that allows elected officials to retain campaign funds for any
use related to the holding of a public office, it gives legislators
virtual carte blanche for expenditures that are, at best, tangentially
related to their campaigns and official duties.
Examples of successful, unsuccessful or former candidates using excess
campaign funds for luxury vehicles, sky boxes, extravagant meals, inter-
national travel and home improvements have regularly appeared in newspa-
pers across the state. There is a growing and justifiable public percep-
tion that campaign funds are being used to enhance the post election
life styles of candidates for public office. Such largesse turns the
ideal of representatives serving the public on its head.
Campaign donors have a reasonable expectation that their contributions
will be used for the candidate's election efforts and the execution of
his or her duties. They do not expect their contributions to subsidize
personal spending. This legislation addresses these abuses while
preserving elected officials' ability to fund the legitimate work of
their offices.
By adding a detailed list, both in generalities and specific examples,
to the current language, the line as to what can and cannot be done is
brightly drawn. In addition to the obvious need to spend campaign funds
on campaigns, the expanded definition makes it clear that expenditures
related to holding public office are restricted to those costs that
would not otherwise be incurred if an individual was a private citizen.
In addition, the bill sets limits on how long campaign committees can be
maintained by former candidates. Reports of committees continuing years
after campaigns were ended are all too common. By setting time limits
and also specifying how excess funds can be disbursed, this abuse will
be eliminated.
The bill also requires campaign committees to identify contributions
from lobbyists registered with the Temporary State Lobbying Commission.
This is in response to concerns that recent changes in the interpreta-
tion of what constitutes an illegal gift by the commission will result
in the use of campaign funds from lobbyists in place of the prohibited
gifts from lobbyists. Coupled with the more stringent standard for the
personal use of campaign funds, the detailing of lobbyists contributions
will make it all the more difficult to justify such expenditures.
Finally, the bill prohibits the soliciting or receiving of contributions
for a campaign for state or federal office while in a senior policy
position in the legislative or executive branch. This is in response to
the recent disclosure that the head of an executive agency who acknowl-
edged that he was not a candidate for any office, continued to raise and
spend campaign funds to enhance his life style. To engage in such
actions while overseeing an industry which actively and at great expense
lobbies state government, at the very least gives the impression that
favorable decisions were being sold and, true or not, feeds public cyni-
cism. The legislation, again in conjunction with the new, more clearly
delineated limits on the use of campaign funds, prohibits such misuse of
campaign funds.
PRIOR LEGISLATIVE HISTORY:
2011-2012: A.321 - Referred to Election Law
2009-2010: A.812-C Referred to Election Law
2007-2008: A.7717 Referred to Election Law
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
