NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2020A
SPONSOR: Kavanagh (MS) TITLE OF BILL: An act to amend the legislative law and the election
law, in relation to disclosures required for lobbyists, and to amend the
election law and the public officers law, in relation to campaign funds
for personal use
PURPOSE: This bill would require lobbyists and entities receiving
government contracts to report campaign contributions, relationships
with public officials, and employment relationships with relatives of
public officials.
SUMMARY OF PROVISIONS:
Section 1 of the bill provides that this act shall be known and cited as
the "Lobbyist Disclosure Campaign Fund Act".
Section 2 of the bill amends section 1-c of the legislative law by
adding a new subdivision (x) which defines the term "family member" for
the purpose of establishing new campaign financial disclosure rules for
lobbyists.
Section 3 of the bill amends paragraph 5 of subdivision b of section 1-h
of the legislative law by adding two new subparagraphs, (vi) and (vii).
The new paragraph (vi) states that bi-monthly lobbyist reports must
contain all campaign contributions made to any campaign or political
committee in New York State by lobbyists, their clients, or anyone
employed or designated by a lobbyist. The new paragraph (vii) states
that any amount of paid compensation made from lobbyists, their clients,
or employees to a family member of a public official also needs to be
included in bi-monthly lobbyist reports.
Section 4 of the bill amends subdivision b of section 1-h of the legis-
lative law by adding a new paragraph 6 that stipulates that the name,
address, and telephone number of any public official with whom a lobby-
ist has had any business relationship must also be included in the
bi-monthly lobbyist reports.
Section 5 of the bill amends paragraph 5 of subdivision b of section 1-j
of the legislative law by adding two new subparagraphs, (vi) and (vii),
which state that the same information added to the bimonthly lobbyist
reports, under section 2 of this bill, also be added to the semi-annual
lobbyist reports.
Section 6 of the bill amends subdivision b of section 1-j of the legis-
lative law by adding a new paragraph 6 which stipulates that the same
information added to the bi-monthly lobbyist reports, under section 3 of
this bill, also be added to the semi-annual lobbyist reports.
Section 7 of the bill amends the election law by adding three new
sections, 14-131, 14-132 and 14133, as follows.
Subdivision 1 of the new section 14-131 defines the terms "agent,"
"business entity," "immediate family," "housekeeping account," "candi-
date for state office," "behested payments," and "personal business
transaction" for the purposes of the new section 14-131.
Subdivision 2 of the new section 14-131 states that any lobbyist, person
who owns more than 10% of, or who holds a senior management position in
a business entity, or any immediate family member or political committee
established or controlled by any of the above who contributes money to a
candidate or their designated committee or party must file reports with
the state board of elections (BOE) within 7 days as required by subdivi-
sion 3 of this section.
Subdivision 3 of the new section 14-131 states that the BOE shall
prescribe all forms and procedures for the reporting required in subdi-
vision 2 of this section and establishes a list of minimum requirements
for such forms and filings.
Subdivision 4 of the new section 14-131 requires elected officials to
report, within 30 days, any behested payments from a single source
totaling five thousand dollars or more per calendar year.
Subdivision 5 of the new section 14-131 requires that all forms and
reports described in subdivision 2 of this section be available for
public inspection, both at the BOB office and through the BOE electronic
filing system for campaign finance disclosure (EFS).
Subdivision 6 of the new section 14-131 makes it unlawful for any
person, organization, group or business entity described in this section
to make contributions to a candidate for state office, a political
committee working to aid or participate in a such a candidate's election
or nomination, or a political committee established or controlled by a
candidate that exceed the following amounts: $500 for governor, lieuten-
ant governor, attorney general or comptroller; $350 for the senate; and
$250 for the assembly.
Subdivision 6 also limits aggregate contribution amounts from entities
mentioned in subdivision 2 of this section, to candidates or their
committees, to $4,000 per election for the aforementioned offices and
prohibits contributions from state or local committees of a political
party, or any housekeeping account, in an amount greater than $1,000 per
election and in an aggregate amount that exceeds $2,000 per election.
This subdivision also makes it illegal for the entities mentioned in
subdivision 2 of this section to transmit contributions to or solicit
contributions on behalf of a candidate, their designated committees, or
a state or local committee of a political party, act as an intermediary
or conduit of such contributions, participate in any fundraising activ-
ities for a particular candidate or committee, or serve as a chair-
person, treasurer or other officer of any of the groups mentioned in
this section. In addition, conducting any personal business transactions
with a public official in an amount over $2,000 per calendar year or
taking other steps to circumvent the restrictions in this section is
also illegal.
Subdivision 7 of the new section 14-131 states that no candidate for
state office, or their designated committees, shall accept contributions
from entities mentioned in subdivision 2 of this section in excess of
$500 for the offices of governor, lieutenant governor, attorney general
or comptroller, $350 for the senate and $250 for the assembly.
Subdivision 8 of the new section 14-131 prohibits state or local poli-
tical party committees, including any housekeeping accounts, from
accepting contributions in excess of $1,000 per election from any entity
mentioned in subdivision 2 of this section.
Subdivision 9 of the new section 14-131 prohibits any public official
holding any of the offices listed in paragraph a of subdivision 6 of
this section from conducting personal business transactions in excess of
$2,000 per calendar year with any of the entities listed in subdivision
2 of this section.
Subdivision 10 of the new section 14-131 provides that this section
shall not prohibit any person from informing another of a position taken
by a public official or a candidate for public office.
Subdivision 11 of the new section 14-131 states that the provisions of
subdivisions 2 and 6 of this section shall not apply to the campaign of
any person described in subdivision 2 who is a candidate for any office
listed in paragraph a of subdivision 6 of this section.
Subdivision 1 of the new section 14-132 defines the terms "agent,"
"business entity," "immediate family," "housekeeping account," "candi-
date for state office" and "personal business transaction" for the
purposes of this new section.
Subdivision 2 of the new section 14-132 states that any person, organ-
ization, group or business entity that has received $50,000 or more in
state contracts in a calendar year, a person who owns more than 10% of,
or who holds a senior management position in, such a business entity, or
any immediate family member or political committee established or
controlled by any of the above who contributes money to a candidate or
their designated committee or party within 36 days of an election must
file reports, as required by subdivision 3 of this section, with the
state board of elections (BOE) within 7 days of the date of contrib-
ution. Any contributions made at any other time must be reported to the
(BOE) within 36 days of the date or contribution or the date of any
applicable contract, whichever occurs later.
Subdivision 3 of the new section 14-132 states that the BOE shall
prescribe all forms and procedures for the reporting required in subdi-
vision 2 of this section and establishes a list of minimum requirements
for such forms and filings.
Subdivision 4 of the new section 14-132 requires that all forms and
reports described in subdivision 2 of this section be available for
public inspection, both at the BOE office and through the BOE electronic
filing system for campaign finance disclosure (EFS).
Subdivision 5 of the new section 14-132 makes it unlawful for any
person, organization, group or business entity described in subdivision
2 of this section to make contributions to a candidate for state office,
their designated committee or party, for a 12 month period, that exceed
the following amounts: $500 for governor, lieutenant governor, attorney
general or comptroller; $350 for the senate; and $250 for the assembly.
Subdivision 5 also limits aggregate contribution amounts from entities
mentioned in subdivision 2 of this section, to candidates or their
committees, to $4,000 per election for the aforementioned offices and
prohibits contributions from state or local committees of a political
party, or any housekeeping account, in an amount greater than $1,000 per
election and in an aggregate amount that exceeds $2,000 per election.
This subdivision also makes it illegal for the entities mentioned in
subdivision 2 of this section to transmit contributions to or solicit
contributions on behalf of a candidate, their designated committees, or
a state or local committee of a political party, act as an intermediary
or conduit of such contributions, participate in any fundraising activ-
ities for a particular candidate or committee, or serve as a chair-
person, treasurer or other officer of any of the groups mentioned in
this section. In addition, conducting any personal business transactions
with a public official in an amount over $2,000 per calendar year or
taking other steps to circumvent the restrictions in this section is
also illegal. This subdivision, however, does not affect any contrib-
utions made at a time when the entity contributing did not meet the
descriptions of paragraphs a through e of subdivision 2 of this section.
Subdivision 6 of the new section 14-132 prohibits the state or any state
department, public entity or authority with contract-making power from
entering into an agreement or contract to procure services, material,
supplies or equipment, or to acquire, sell, or lease any land or build-
ing from entities described in subdivision 2 of this section that have
made financial contributions prohibited in subdivision 5 of this
section. This subdivision also does not apply to contributions made at a
time when the entity contributing did not meet the descriptions of para-
graphs a through e of subdivision 2 of this section.
Subdivision 7 of this section mandates that every contract and bid
application and specifications promulgated by the state or any state
department, public entity or authority with contract-making power shall
include a provision describing the requirements of section 14,116 of
this article.
Subdivision 8 of the new section 14-132 mandates that the state shall
receive a sworn statement, made under the penalty of perjury, from any
contractor bidding on a state contract of any kind stating that the
entity has not made a contribution in violation of this section. These
statements must be received before entering into an agreement or
contract to procure services, material, supplies, equipment or real
estate from an entity described in subdivision 2 of this section.
Subdivision 9 of the new section 14-132 prohibits candidates for state-
wide office from accepting contributions from entities described in
subdivision 2 of this section in an amount exceeding those permitted in
paragraph a of subdivision 5 of this section for a 12 month period after
the completion of the applicable contract or the remainder of the candi-
date's term in office, whichever is longer. This provision does not
apply to contributions made at a time when the entity did not meet the
descriptions of paragraphs a through e of subdivision 2 of this section.
Subdivision 10 of the new section 14-132 prohibits any public official
holding any of the offices listed in paragraph a of subdivision 5 of
this section from conducting personal business transactions in excess of
$2,000 per calendar year with any of the entities listed in subdivision
2 of this section.
Subdivision 11 of the new section 14-132 provides that this section
shall not prohibit any person from informing another of a position taken
by a public official or a candidate for public office.
Subdivision 12 of the new section 14-132 states that the provisions of
subdivisions 2 and 5 of this section shall not apply to the campaign of
any person described in subdivision 2 who is a candidate for any office
listed in paragraph a of subdivision 5 of this section.
The new section 14-133 prohibits lobbyists, any person or business enti-
ty that has received $50,000 or more in the last 2 years in state
contracts, any state-appointed entity with contracting power or any
person who owns more than 10% of or who holds a senior management posi-
tion in such an entity from being appointed to a state public board or
commission with the authority to award state contracts, Immediate family
members of such individuals are also excluded.
Section 8 of the bill sets forth the effective date.
JUSTIFICATION: This legislation would increase the amount of informa-
tion shared with the public regarding relationships between lobbyists
and legislators and bring much needed sunlight into our governmental
process. Several provisions address difficulties in determining the
extent of lobbyists' contributions to political campaigns. Other
provisions address issues of business employment relationships between
lobbyists and public officials or their families. These relationships
should be disclosed to the public. Similarly, the public has a right to
know if close relatives of legislators are employed as lobbyists, so
citizens are in a position to evaluate whether such relationships result
in inappropriate influence over government decision making.
LEGISLATIVE HISTORY: 2012: A05868A (Kavanagh) - Governmental Oper-
ations 2011: A05868 (Kavanagh) - Governmental Operations 2010: A08814A
(Kavanagh) - Governmental Operations 2009: A08814 (Kavanagh) - Govern-
mental Operations
FISCAL IMPACT ON THE STATE: None.
EFFECTIVE DATE: This act shall take effect on the first of January
next succeeding the date on which it shall have become a law; provided
that section 14-132 of the election law as added by section six of this
act shall take effect two years after such effective date; and provided
further that sections seven, eight, nine and ten of this act shall take
effect on the sixtieth day after it shall have become a law; provided,
however, that the state board of elections shall notify all registered
campaign committees of the applicable provisions of sections seven,
eight, nine and ten of this act within thirty days after this act shall
have become a law.
