STATE OF NEW YORK
________________________________________________________________________
6512
IN SENATE
February 17, 2012
___________
Introduced by COMMITTEE ON RULES -- (at request of the State Comp-
troller) -- read twice and ordered printed, and when printed to be
committed to the Committee on Rules
AN ACT to amend the election law, in relation to enacting the comp-
troller campaign finance reform act to provide for public financing
for campaigns for the office of state comptroller; to amend the gener-
al business law, in relation to authorizing the imposition of an addi-
tional surcharge on recoveries for fraudulent practices relating to
stocks, bonds and other securities; to amend the state finance law, in
relation to establishing the New York state campaign finance fund; and
to amend the tax law, in relation to providing for a New York state
campaign finance fund check-off
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The article heading of article 14 of the election law is
2 amended to read as follows:
3 CAMPAIGN [RECEIPTS AND EXPENDITURES] FINANCE
4 § 2. Sections 14-100 through 14-130 of article 14 of the election law
5 are designated title 1 and a new title heading is added to read as
6 follows:
7 CAMPAIGN RECEIPTS AND EXPENDITURES
8 § 3. Article 14 of the election law is amended by adding a new title 2
9 to read as follows:
10 TITLE II
11 COMPTROLLER CAMPAIGN FINANCE REFORM ACT
12 Section 14-200. Short title.
13 14-201. Declaration of legislative findings and intent.
14 14-202. Applicability and definitions.
15 14-203. Reporting requirements.
16 14-204. Contribution and receipt limitations.
17 14-205. Proof of compliance.
18 14-206. Eligibility.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11990-05-2
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1 14-207. Voluntary expenditure limits for participating candi-
2 dates.
3 14-208. Payment of public matching funds.
4 14-209. Use of public matching funds; qualified campaign expend-
5 itures.
6 14-210. Campaign finance board; general powers and duties.
7 14-211. Audits and repayments.
8 14-212. Civil enforcement.
9 14-213. Criminal penalties.
10 14-214. Reports.
11 14-215. Debates.
12 14-216. Distributions from campaign finance fund.
13 § 14-200. Short title. This title shall be known and may be cited as
14 the "comptroller campaign finance reform act".
15 § 14-201. Declaration of legislative findings and intent. The legis-
16 lature is committed to reforming New York's campaign finance system for
17 the office of the state comptroller. As sole trustee of the New York
18 state and local retirement system and as chief fiscal officer for the
19 state of New York, the comptroller has a fiduciary duty to the members,
20 retirees and beneficiaries of the retirement system and to the people of
21 New York state.
22 In recognition of these issues, this act provides for the public
23 financing of the campaign for the office of the state comptroller. The
24 inclusion of voluntary expenditure caps combined with a minimum thresh-
25 old for participation in the campaign finance program and contribution
26 limits as provided for in this title furthers the state's interest in
27 encouraging qualified candidates to run for the office of state comp-
28 troller regardless of their access to wealth, thus increasing public
29 debate and participation in the democratic process.
30 Finally, the legislature finds that an independent entity within the
31 state board of elections to oversee this program is necessary to carry
32 out this act's mandates. This act creates a campaign finance board with-
33 in the state board of elections to monitor and enforce the program and
34 its provisions to ensure that the intent of this act is fully imple-
35 mented.
36 § 14-202. Applicability and definitions. This title shall apply exclu-
37 sively to campaign financing of candidates for the nomination for
38 election, and for election to, the office of state comptroller. For
39 purposes of this title, the following terms shall have the following
40 meanings:
41 1. "Authorized committee" means a political committee designated by a
42 candidate pursuant to section 14-203 of this title to receive contrib-
43 utions and make expenditures in support of such candidate's campaign. No
44 more than one authorized committee may be designated by a candidate in
45 any election cycle.
46 2. "Board" or "campaign finance board" means the board created by
47 section 14-210 of this title to administer the campaign finance fund.
48 3. "Candidate" means any candidate for nomination for election, or for
49 election to, the office of state comptroller whether such candidate is a
50 "participating candidate" or "nonparticipating candidate" as defined in
51 this section.
52 4. "Contribution" means:
53 (a) any gift, subscription, outstanding loan (to the extent provided
54 for in section 14-114 of this article), advance, or deposit of money or
55 anything of value, made in connection with the nomination for election,
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1 or election, of any candidate, or made to promote the success or defeat
2 of a political party or principle, or of any ballot proposal;
3 (b) any funds received by a political committee from another political
4 committee to the extent such funds do not constitute a transfer; and
5 (c) any payment, by any person other than a candidate or an authorized
6 committee, made in connection with the nomination for election or
7 election of any candidate, or any payment made to promote the success or
8 defeat of a political party or principle, or of any ballot proposal
9 including but not limited to compensation for the personal services of
10 any individual which are rendered in connection with a candidate's
11 election or nomination without charge; provided however, that none of
12 the foregoing shall be deemed a contribution if it is made, taken or
13 performed by a candidate or his or her spouse or by a person or a poli-
14 tical committee independent of the candidate or his or her agents or
15 political committees. For purposes of this title, the term "independent
16 of the candidate or his or her agents or political committees" shall
17 mean that the candidate or his or her agents or political committee did
18 not authorize, request, suggest, foster or cooperate in any such activ-
19 ity; and provided further, that the term contribution shall not include:
20 (i) the value of services provided without compensation by individuals
21 who volunteer a portion or all of their time on behalf of a candidate or
22 political committee;
23 (ii) the use of real or personal property and the cost of invitations,
24 food and beverages voluntarily provided by an individual to a candidate
25 or political committee on the individual's residential premises for
26 candidate-related activities to the extent such services do not exceed
27 five hundred dollars in value;
28 (iii) the travel expenses of any individual who on his or her own
29 behalf volunteers his or her personal services to any candidate or poli-
30 tical committee to the extent such expenses are unreimbursed and do not
31 exceed five hundred dollars in value; and
32 (iv) expenditures by a bona fide membership organization in support of
33 the following activities by members of the organization who are volun-
34 teering their time on behalf of a candidate, not to exceed twenty-five
35 dollars per member who volunteer for: (1) transportation of volunteers
36 to and from campaign activities; (2) cost of feeding volunteers while
37 volunteering for the campaign; and (3) materials such as badges and
38 clothing that identifies the name of the organization or candidate.
39 5. "Contributor" means an entity, including, but not limited to,
40 natural persons, associations, bona fide membership organizations, part-
41 nerships and corporations, that makes a contribution, as defined in
42 subdivision four of this section.
43 6. "Covered election" means any primary election for nomination, or
44 general election for election, to the office of state comptroller.
45 7. "Election cycle" means the four-year period starting after the day
46 after the last general election for candidates for statewide office.
47 8. "Expenditure" means any gift, subscription, advance, payment, or
48 deposit of money or anything of value, or a contract to make any gift,
49 subscription, payment, or deposit of money or anything of value, made in
50 connection with the nomination for election, or election, of any candi-
51 date. Expenditures made by contract are deemed made when such funds are
52 obligated.
53 9. "Fund" means the campaign finance fund created by section ninety-
54 nine-u of the state finance law.
55 10. "Immediate family" means a spouse, domestic partner, child,
56 sibling or parent.
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1 11. "Item with significant value" means any item, including any item
2 valued at twenty-five dollars or more.
3 12. "Legislative leader" means any of the following: the temporary
4 president of the senate; the speaker of the assembly; the minority lead-
5 er of the senate; or the minority leader of the assembly.
6 13. "Matchable contribution" means a contribution, contributions or
7 such portion of a contribution or contributions made by a natural person
8 residing in the state of New York at the time of such contribution, with
9 a value not to exceed two hundred fifty dollars, to a participating
10 candidate for any primary and a contribution, contributions or such
11 portion of a contribution or contributions made by a natural person
12 residing in the state of New York at the time of such contribution with
13 a value not to exceed two hundred fifty dollars to a participating
14 candidate for a general election held in the same election cycle that
15 has been reported in full to the state board of elections in accordance
16 with sections 14-102 and 14-104 of this article by the candidate's
17 authorized committee and has been contributed on or before the date of
18 the applicable primary or general election. Any contribution, contrib-
19 utions, or such portion of a contribution or contributions determined to
20 be invalid for public matching funds by the board pursuant to the
21 provisions of this title may not be treated as a matchable contribution.
22 In addition, the following contributions are not matchable: (a) loans;
23 (b) in-kind contributions of property, goods, or services; (c) contrib-
24 utions in the form of the purchase price paid for an item with signif-
25 icant value; (d) anonymous contributions or contributions whose source
26 is not itemized as required by section 14-203 of this title; (e)
27 contributions gathered during a previous election cycle; (f) illegal
28 contributions; and (g) contributions from individuals under the age of
29 eighteen years.
30 14. "Nonparticipating candidate" shall mean a candidate for the office
31 of state comptroller for a covered election who fails to file a written
32 certification in the form of an affidavit pursuant to section 14-206 of
33 this title.
34 15. "Participating candidate" shall mean any candidate for nomination
35 for election, or election, to the office of state comptroller who files
36 a written certification in the form of an affidavit pursuant to section
37 14-206 of this title.
38 16. "Political committee" means a committee designated by a candidate
39 pursuant to section 14-100 of this article.
40 16-a. "Public matching funds" means monies paid from the campaign
41 finance fund to the authorized committee of participating candidates
42 pursuant to this title.
43 17. "Qualified campaign expenditure" shall mean an expenditure for
44 which public matching funds may be used.
45 18. "Threshold for eligibility" shall mean the amount of matchable
46 contributions that a candidate's authorized committee must receive in
47 total in order for such candidate to qualify for voluntary public
48 financing under this article.
49 19. "Transfer" shall mean any exchange of funds or any thing of value
50 between political committees authorized by the same candidate taking
51 part solely in his or her campaign, or any exchange of funds between a
52 party or constituted committee and a candidate or his or her designated
53 authorized political committees.
54 § 14-203. Reporting requirements. 1. Every participating candidate
55 shall not designate more than one authorized committee. Before receiving
56 any contribution or making any expenditure for a covered election, each
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1 participating candidate shall notify the state board of elections and
2 the board as to the existence of his or her authorized committee that
3 has been designated and approved by such candidate. Each such authorized
4 committee shall, before opening a committee bank account, receiving any
5 contribution or making any expenditure for a covered election: (a)
6 designate a treasurer; and (b) obtain a tax identification number from
7 the internal revenue service.
8 2. Disclosure. (a) Every participating candidate shall submit such
9 reports to the state board of elections as required by title one of this
10 article. Copies of such reports shall also be submitted to the campaign
11 finance board created pursuant to this article at the same time such
12 reports are submitted to the state board of elections.
13 (b) The campaign finance board shall review each disclosure report
14 filed with the state board of elections pursuant to title one of this
15 article and shall inform participating candidates and political commit-
16 tees including the authorized committee, of relevant questions the board
17 has concerning: (i) compliance with requirements of this title and of
18 the rules issued by the board; and (ii) qualification for receiving
19 public matching funds pursuant to this title. In the course of such
20 review, the board shall give candidates and political committees includ-
21 ing the authorized committee, an opportunity to respond to and correct
22 potential violations and give candidates an opportunity to address ques-
23 tions the board has concerning their matchable contribution claims or
24 other issues concerning eligibility for receiving public matching funds
25 pursuant to this title. Nothing in this paragraph shall preclude the
26 board from subsequently reviewing such a disclosure report and taking
27 any action otherwise authorized by this title.
28 (c) Only itemized contributions contained in reports filed with the
29 state board of elections shall be eligible for matching funds pursuant
30 to this title.
31 § 14-204. Contribution and receipt limitations. 1. A participating
32 candidate and his or her authorized committee shall not accept, either
33 directly or indirectly:
34 (a) total contributions from any one contributor that exceed two thou-
35 sand dollars in any primary in an election cycle for the office of state
36 comptroller and two thousand dollars for a general election in an
37 election cycle; or
38 (b) any contribution from a political committee that has not regis-
39 tered with the state board of elections.
40 2. (a) Notwithstanding the expenditure limit for such office as fixed
41 by this title for candidates who have elected to accept public funds, a
42 participating candidate for state comptroller in a primary or general
43 election or such candidate's authorized committee may accept from a
44 state party committee which has nominated such candidate services in an
45 amount which, in the aggregate, does not exceed one million dollars;
46 provided, however, that twenty-five percent of such amount may be
47 accepted in the form of a transfer.
48 (b) For purposes of this subdivision, the term "state party committee"
49 includes any of its subcommittees.
50 3. Notwithstanding any expenditure limit set forth in this title, each
51 county committee of any party which nominates a candidate for state
52 comptroller, including within the term "county committee" any of its
53 subcommittees, may expend in support of each such candidate of such
54 party who has agreed to accept public financing, an amount which shall
55 not exceed the sum of two cents for each voter registered in such county
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1 as determined by the record of the appropriate board of elections as of
2 the preceding general election.
3 4. In computing the aggregate amount expended for purposes of this
4 section, expenditures made by a state party committee or a county
5 committee in support of more than one candidate shall be allocated among
6 such candidates supported by the committee in accordance with formulas
7 promulgated by the state board of elections or, in the absence of such
8 official formulas, in accordance with a formula based upon reasonable
9 standards. The statements filed by such party committee in accordance
10 with this chapter shall set forth, in addition to the other information
11 required, the total amount expended by the party committee on behalf of
12 all such candidates and the amount allocated to each candidate by dollar
13 amount and percentage. Expenditures by a party for activities which do
14 not support or oppose the election of any candidate or candidates by
15 name or by clear inference shall not be regarded as expenditures on
16 behalf of or in opposition to a candidate.
17 5. Notwithstanding any other contribution limit specified in this
18 section, participating candidates may give, out of their own money,
19 three times the applicable contribution limit to their own campaigns,
20 provided that none of the money so contributed shall qualify for match-
21 ing funds.
22 6. All monetary contributions and all public matching funds accepted
23 by a candidate's authorized committee shall be deposited into an account
24 with a bank licensed by the New York state department of financial
25 services held in the name of the authorized political committee within
26 ten business days of receipt. Each authorized committee shall have no
27 more than one checking account.
28 7. Contributions to candidates in covered elections shall, for each
29 election cycle, in all other respects, be subject to the limitations and
30 provisions of title one of this article.
31 § 14-205. Proof of compliance. Candidates and political committees
32 shall maintain such records of receipts and expenditures for a covered
33 election as may be required by the campaign finance board. Candidates
34 and political committees shall obtain and furnish to the board any
35 information it may request relating to financial transactions or
36 contributions and furnish such documentation and other proof of compli-
37 ance with this title as may be requested by the board. Candidates and
38 political committees shall maintain copies of such records for a period
39 of five years following the general election.
40 § 14-206. Eligibility. 1. To be eligible for public financing pursuant
41 to this title, a candidate must: (a) be a candidate in a covered
42 election; (b) satisfy all the requirements of law to have his or her
43 name on the ballot; (c) in the case of a covered general election, be
44 opposed by another candidate on the ballot who is not a write-in candi-
45 date; (d) submit a certification in the form of an affidavit, in such
46 form as may be prescribed by the campaign finance board, that sets forth
47 his or her agreement to comply with the terms and conditions for the
48 provision of such funds in each covered election which shall be filed
49 with such board by June first directly before the election; (e) be
50 certified as a participating candidate by such board not later than two
51 weeks after the filing of such affidavit; (f) not make, and not have
52 made, expenditures from, or use, his or her personal funds or property
53 or personal funds or property jointly held with his or her spouse,
54 domestic partner, or child in connection with his or her nomination for
55 election or election to a covered office except as a contribution to his
56 or her authorized committee in an amount that exceeds three times the
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1 applicable contribution limit from an individual contributor to candi-
2 dates for the office that he or she is seeking; (g) meet the threshold
3 for eligibility set forth in subdivision two of this section; (h) abide
4 by the requirements set forth in this title and chapter during the post-
5 election period; and (i) not make, and not have made, and his or her
6 authorized committee must not make, and not have made expenditures that
7 in the aggregate exceed the applicable spending limit as provided in
8 this title.
9 2. (a) The threshold for eligibility for public funding for partic-
10 ipating candidates shall be the receipt of contributions totaling one
11 hundred fifty thousand dollars in matchable contributions in single
12 amounts of no less than ten dollars and no more than two hundred fifty
13 dollars, including at least fifty matchable contributions from natural
14 persons registered to vote in each of at least seventy-five percent of
15 the total number of congressional districts in the state at the time of
16 such covered election.
17 (b) Any participating candidate meeting the threshold for eligibility
18 in a primary election shall be deemed to have met the threshold for
19 eligibility for such office in any other election held in the same
20 election cycle.
21 § 14-207. Voluntary expenditure limits for participating candidates.
22 1. Participating candidates may spend no more than five million dollars
23 for the primary election. Expenditures made before or on the date of a
24 primary election shall be deemed to have been made for such primary
25 election.
26 2. Participating candidates may spend no more than seven million five
27 hundred thousand dollars in a general election campaign.
28 3. Expenditures made for the purpose of complying with this title or
29 chapter, including legal fees, accounting fees, the cost of record
30 creation and retention, and other necessary compliance expenditures, and
31 expenses to challenge or defend the validity of petitions of designation
32 or nomination or certificates of nomination, acceptance, authorization,
33 declination or substitution, and expenses related to the canvassing of
34 election results, shall not be limited by the spending limits of this
35 section. The burden is on the candidate to substantiate exempt expendi-
36 tures. The board shall promulgate rules to implement this section.
37 § 14-208. Payment of public matching funds. 1. No public matching
38 funds shall be paid to an authorized committee unless the campaign
39 finance board determines that the participating candidate has qualified
40 pursuant to this title. Payment shall not exceed the amounts specified
41 in this section and may be made only to the participating candidate's
42 authorized committee. No public matching funds shall be used except to
43 reimburse or pay for qualified campaign expenditures actually and
44 lawfully incurred or to repay loans used to pay qualified campaign
45 expenditures.
46 2. If the threshold for eligibility is met, the participating candi-
47 date's authorized committee shall receive payment for qualified campaign
48 expenditures of six dollars of public matching funds for each one dollar
49 of matchable contributions for a primary election and six dollars of
50 public matching funds for each one dollar of matchable contributions for
51 a general election received and reported to the board; provided, howev-
52 er, that the total amount of public matching funds shall not exceed two
53 million two hundred thousand dollars for each participating candidate
54 for a primary and shall not exceed three million two hundred thousand
55 dollars for each participating candidate for a general election in any
56 election cycle.
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1 3. The commissioner of taxation and finance shall make all payments of
2 public matching funds to participating candidates as soon as practica-
3 ble, but no later than three days after submission by the participating
4 candidate of a campaign contribution report filed with the state board
5 of elections in compliance with this article. The campaign finance board
6 shall verify eligibility for and amount of public matching funds within
7 one day after receipt of such contribution report. Upon determination of
8 eligibility of a participating candidate for public matching funds and
9 of amount of such matching funds, the campaign finance board shall
10 submit within one day a duly approved, certified and executed voucher to
11 the department of taxation and finance requesting payment of such match-
12 ing funds and payment thereof shall be made to the participating candi-
13 date's authorized committee not less than one day after such voucher is
14 received by the department of taxation and finance. If any of the time
15 limits in this title for payment fall on a weekend or holiday, payment
16 shall be made on the next business day.
17 4. The campaign finance board and the department of taxation and
18 finance shall promulgate rules to facilitate electronic fund transfers
19 directly from the fund into an authorized committee's bank account.
20 § 14-209. Use of public matching funds; qualified campaign expendi-
21 tures. 1. Public matching funds provided under the provisions of this
22 title may be used only by an authorized committee for expenditures to
23 further the participating candidate's nomination for election, or
24 election, including paying for debts incurred within one year before an
25 election to further the participating candidate's nomination for
26 election or election.
27 2. Such public matching funds may not be used for: (a) an expenditure
28 that violates any law or regulation; (b) an expenditure in excess of the
29 fair market value of services, materials, facilities or other item of
30 significant value received in exchange; (c) an expenditure made after
31 the candidate has been finally disqualified from the ballot; (d) an
32 expenditure for an obligation incurred after the only remaining opponent
33 of the candidate has been finally disqualified from the ballot; (e) an
34 expenditure made by cash payment; (f) a contribution or loan made to
35 another candidate or political committee; (g) an expenditure to support
36 or oppose another candidate or political committee; (h) gifts, except
37 brochures, buttons, signs and other printed campaign material; (i) legal
38 fees to defend against a criminal charge; or (j) a payment to an immedi-
39 ate family member of the participating candidate.
40 § 14-210. Campaign finance board; general powers and duties. 1. There
41 shall be a board within the state board of elections known as the
42 "campaign finance board" composed of seven members, of which one member
43 shall be appointed by the governor, one member shall be appointed by
44 each legislative leader of the senate and assembly. Two additional
45 members who shall be representative of non-partisan citizens' groups
46 shall be appointed by the governor upon consultation with the legisla-
47 tive leaders and the governor shall designate one to be the chair. No
48 member of the campaign finance board shall hold elective office, nor
49 shall any member be a lobbyist as defined in subdivision (a) of section
50 one-c of the legislative law. The chair shall be responsible for manag-
51 ing the campaign finance board. The members shall each serve for a term
52 of four years.
53 2. Each member's term shall commence on June first, two thousand thir-
54 teen. In case of a vacancy in the office of a member, a member shall be
55 appointed according to the original manner of appointment. Each member
56 shall be a resident of the state of New York and registered to vote
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1 therein. Each member shall agree not to make and shall not make contrib-
2 utions to any candidate or authorized committee for nomination for
3 election or for election to the office of state comptroller. No member
4 shall serve as an officer of a political party or committee or be a
5 candidate or participate in any capacity in a campaign by a candidate
6 for nomination for election, or for election to the office of state
7 comptroller. An officer or employee of the state or any state agency
8 shall not be eligible to be a member of the campaign finance board.
9 3. The members of the campaign finance board shall be entitled to
10 receive payment for actual and necessary expenses incurred in the
11 performance of their duties as members of such board.
12 4. The campaign finance board may employ or shall utilize existing
13 staff of the state board of elections as may be necessary, including an
14 executive director and a counsel, and make necessary expenditures
15 subject to appropriation. The campaign finance board shall retain an
16 independent auditor to perform ongoing audits of each covered election
17 by contract entered into pursuant to section one hundred sixty-three of
18 the state finance law.
19 5. A member of the campaign finance board may be removed for cause by
20 the appointing authority upon notice and an opportunity for a hearing.
21 6. In addition to the enforcement powers, and any other powers and
22 duties specified by law, the campaign finance board shall:
23 (a) (i) render advisory opinions with respect to questions arising
24 under this title upon the written request of a candidate, an officer of
25 a political committee or member of the public, or upon its own initi-
26 ative; (ii) promulgate rules regarding reasonable times to respond to
27 such requests; and (iii) make public the questions of interpretation for
28 which advisory opinions will be considered by the campaign finance board
29 and its advisory opinions, including by publication on its website;
30 (b) develop a program for informing candidates and the public as to
31 the purpose and effect of the provisions of this title, including by
32 means of a website;
33 (c) have the authority to promulgate such rules and regulations and
34 prescribe such forms as the campaign finance board deems necessary for
35 the administration of this title; and
36 (d) in conjunction with the state board of elections develop an inter-
37 active, searchable computer database that shall contain all information
38 necessary for the proper administration of this title including informa-
39 tion on contributions to and expenditures by candidates and their
40 authorized committees and distributions of moneys from the fund and
41 shall be accessible to the public on the state board of elections'
42 website.
43 7. Consistent with the provisions of the civil service law and subdi-
44 vision seventeen of section seventy-three of the public officers law,
45 and notwithstanding the provisions of any other law to the contrary, all
46 positions on the staff of the campaign finance board shall be classified
47 in the exempt class of the civil service and such positions shall be
48 filled, to the extent possible, with an equal number of persons from
49 each of the two political parties for which the highest and the next
50 highest number of votes were cast for the office of state comptroller at
51 the last preceding general election for such office.
52 8. The campaign finance board's administration of the fund shall be
53 governed by the provisions of this title and section ninety-nine-u of
54 the state finance law.
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1 9. The campaign finance board and its proceedings shall be governed by
2 the state administrative procedure act and subject to articles six and
3 seven of the public officers law.
4 10. The campaign finance board may take such other actions as are
5 necessary and proper to carry out the purposes of this title.
6 § 14-211. Audits and repayments. 1. The campaign finance board is
7 hereby empowered to audit and examine all matters relating to the
8 performance of its functions and any other matter relating to the admin-
9 istration of this title. Such audits shall be conducted as frequently as
10 the campaign finance board deems necessary to ensure compliance with
11 this title. Every candidate who receives public matching funds under
12 this title shall also be audited by the campaign finance board post-e-
13 lection. The cost of complying with a post-election audit shall be borne
14 by the candidate's authorized committee. A candidate who has received
15 public matching funds under this title must maintain a reserve of at
16 least one percent of the total amount of matching funds received by such
17 candidate in his or her campaign account to comply with the post-elec-
18 tion audit. A candidate who runs in both a primary and a general
19 election, must maintain a reserve of one percent of the total amount of
20 public matching funds received by such candidate for both his or her
21 primary and general election. A candidate may use public matching funds,
22 private funds or a combination of public and private funds to comply
23 with a post-election audit. The campaign finance board shall issue to
24 each campaign audited the final post-election audit report that details
25 its findings and shall provide such audit to the governor and legisla-
26 tive leaders and make such audit report available on the state board of
27 elections' website.
28 2. If the campaign finance board determines that any portion of a
29 payment made to a candidate's authorized committee from the fund
30 exceeded the amount that such candidate was eligible to receive pursuant
31 to this title, the campaign finance board shall notify such committee
32 and such committee shall pay to the campaign finance board an amount
33 equal to the amount of the excess payment; provided, however, that if
34 the erroneous payment was due to an error made by the campaign finance
35 board, then the erroneous payment will be offset against any future
36 payment, if any. The participating candidate and the candidate's author-
37 ized committee shall be jointly and severally liable for any repayments
38 due to the campaign finance board for deposit by such board into the New
39 York state campaign finance fund.
40 3. If the campaign finance board determines that any portion of a
41 payment made to a candidate's authorized committee from the New York
42 state campaign finance fund was used for purposes other than qualified
43 campaign expenditures, the campaign finance board shall notify such
44 committee of the amount so disqualified and such committee shall pay to
45 the campaign finance board an amount equal to such disqualified amount.
46 Such monies shall be deposited into the New York state campaign finance
47 fund created pursuant to section ninety-nine-u of the state finance law.
48 The candidate and the candidate's authorized committee shall be jointly
49 and severally liable for any repayments due to the campaign finance
50 board.
51 4. If the total of contributions, other receipts, and payments from
52 the New York state campaign finance fund as matchable funds received by
53 a participating candidate and his or her authorized committee exceeds
54 the total campaign expenditures of such candidate and committee for all
55 covered elections held in the same calendar year, such candidate and
56 committee shall use such excess funds to reimburse the New York state
S. 6512 11
1 campaign finance fund for payments received by such committee from such
2 fund during such calendar year. A participating candidate shall pay to
3 the campaign finance board for deposit into the campaign finance fund
4 unspent matching funds for an election not later than thirty days after
5 all liabilities for the election campaign have been paid and in any
6 event, not later than twenty days after the date on which the campaign
7 finance board issues its final audit report for the participating candi-
8 date's committee; provided, however, that all unspent matching funds for
9 a participating candidate shall be immediately due and payable to the
10 campaign finance board for deposit into the New York state campaign
11 finance fund upon its determination that the participant willfully
12 delayed the post-election audit process. A participating candidate may
13 make post-election expenditures only for routine activities involving
14 nominal costs associated with winding up a campaign and responding to
15 the post-election audit. For accounting purposes, all private and
16 personal contributions shall be considered spent before revenue from the
17 fund is spent or committed.
18 § 14-212. Civil enforcement. 1. Any person or authorized committee who
19 knowingly and intentionally fails to make a filing required by the
20 provisions of this title shall be subject to a civil penalty not to
21 exceed the amount of five thousand dollars.
22 2. Any person or authorized committee who knowingly and intentionally
23 violates any other provision of this title or any rule promulgated here-
24 under shall be subject to a civil penalty not to exceed the amount of
25 ten thousand dollars.
26 3. Fines authorized under this section will be imposed by the campaign
27 finance board after a hearing at which the subject person or authorized
28 committee shall be given an opportunity to be heard. Such hearing shall
29 be held in such manner and upon such notice as may be prescribed by the
30 rules of the campaign finance board. For purposes of conducting such
31 hearings, the campaign finance board shall be deemed to be an agency
32 within the meaning of article three of the state administrative proce-
33 dure act and shall adopt rules governing the conduct of adjudicatory
34 proceedings and appeals taken pursuant to a proceeding commenced under
35 article seventy-eight of the civil practice law and rules relating to
36 the assessment of the civil penalties herein authorized.
37 4. If the aggregate amount of expenditures by a participating candi-
38 date and such candidate's authorized committee exceed the expenditure
39 limit established by section 14-207 of this title, such candidate and
40 authorized committee shall be subject to a civil penalty not to exceed
41 three times the sum by which such expenditures surpass the applicable
42 spending limit.
43 5. The campaign finance board shall publish on the state board of
44 elections' website the final order adjudicating any matter brought
45 pursuant to this section.
46 6. Any civil penalties imposed by the campaign finance board pursuant
47 to this section shall be deposited into the New York state campaign
48 finance fund.
49 § 14-213. Criminal penalties. 1. Any person who knowingly and willful-
50 ly fails to make a filing required by the provisions of this title with-
51 in ten days after the date provided for such, or anyone that knowingly
52 and willfully violates any other provision of this title shall be guilty
53 of a misdemeanor and, in addition to such other penalties as may be
54 provided by law, shall be subject to a fine not to exceed the amount of
55 ten thousand dollars.
S. 6512 12
1 2. Any person who knowingly and willfully contributes, accepts or aids
2 or participates in the contribution or acceptance of a contribution in
3 an amount exceeding an applicable maximum specified in this article
4 shall be guilty of a misdemeanor and shall be subject to a fine not to
5 exceed the amount of ten thousand dollars.
6 3. Any person who knowingly makes a false statement or knowingly omits
7 a material fact to the campaign finance board or an auditor designated
8 by the campaign finance board during any audit conducted pursuant to
9 section 14-211 of this title shall be guilty of a class E felony.
10 4. In addition any other sentence lawfully imposed upon a finding of
11 guilt in a criminal prosecution commenced pursuant to the provisions of
12 this section, the court may order a defendant to repay to the campaign
13 finance board any public matching funds obtained as a result of any
14 criminal conduct.
15 5. All such prosecutions for criminal acts under this article shall be
16 prosecuted by the attorney general of the state of New York.
17 6. Any and all fines imposed pursuant to this section shall be made
18 payable to the campaign finance board for deposit into the New York
19 state campaign finance fund.
20 § 14-214. Reports. The campaign finance board shall submit a report to
21 the governor and legislative leaders on or before February first, two
22 thousand sixteen, and every four years thereafter, which shall include:
23 1. a list of the participating and nonparticipating candidates in
24 covered elections and the votes received by each candidate in those
25 elections;
26 2. the amount of contributions and loans received, and expenditures
27 made, on behalf of participating and nonparticipating candidates;
28 3. the amount of public matching funds each participating candidate
29 received, spent, and repaid pursuant to this article;
30 4. analysis of the effect of this title on the election campaign for
31 the office of state comptroller and the utility of applying the program
32 to other campaigns for statewide elective office, including its effect
33 on the sources and amounts of private financing, the level of campaign
34 expenditures, voter participation, the number of candidates, the candi-
35 dates' abilities to campaign effectively for public office, and the
36 diversity of candidates seeking and elected to office;
37 5. recommendations for changes or amendments to this title, including
38 changes in contribution limits, thresholds for eligibility and limits on
39 total matching funds as well as instituting a program of full public
40 campaign financing for election for all statewide offices; and
41 6. any other information that the campaign finance board deems rele-
42 vant.
43 § 14-215. Debates. The campaign finance board shall promulgate regu-
44 lations to facilitate debates among participating candidates. Partic-
45 ipating candidates are required to participate in at least one debate
46 before the primary election and in at least one debate before the gener-
47 al election for which the candidate receives public funds, unless the
48 participating candidate is running unopposed. A nonparticipating candi-
49 date may be a party to such debates.
50 § 14-216. Distributions from campaign finance fund. 1. This section
51 governs the campaign finance board's distribution of funds from the
52 campaign finance fund created by section ninety-nine-u of the state
53 finance law, except as otherwise provided in this title.
54 2. No moneys shall be paid to participating candidates in a primary
55 election any earlier than two weeks after the last day to file designat-
56 ing petitions for such primary election.
S. 6512 13
1 3. No moneys shall be paid to participating candidates in a general
2 election any earlier than a week after the primary election held to
3 nominate candidates for such election.
4 4. No moneys shall be paid to any participating candidate who has been
5 disqualified by the campaign finance board or whose designating
6 petitions have been declared invalid by the state board of elections or
7 a court of competent jurisdiction until and unless such finding is
8 reversed by an appellate court.
9 5. No payment from the fund in the possession of such a candidate or
10 such a candidate's authorized committee on the date of such disquali-
11 fication or invalidation may thereafter be expended for any purpose
12 except the payment of liabilities incurred before that date. All excess
13 public moneys paid to a disqualified candidate shall be returned to the
14 fund not less than thirty days after the general election for those
15 participating candidates who received public moneys for the general
16 election, and otherwise, not less than thirty days after the primary
17 election for those participating candidates who received public moneys
18 solely for the primary election.
19 6. (a) Participating candidates shall pay to the campaign finance
20 board unspent public campaign funds from an election not later than
21 thirty days after all liabilities for the election have been paid and,
22 in any event, not less than twenty days after the date upon which the
23 campaign finance board issues its final audit report for the participat-
24 ing candidate's committee; provided, however, that all unspent public
25 campaign funds for a participating candidate shall be immediately due
26 and payable to the campaign finance board upon its determination that
27 the participating candidate has, without just cause, delayed the post-e-
28 lection audit process. Unspent campaign funds determinations made by the
29 campaign finance board shall be based on the participating candidate
30 committee's receipts and expenditures. The campaign finance board may
31 also consider any other relevant information revealed in the course of
32 its audits or investigations or the investigations by any other agency.
33 (b) (i) A participating candidate may not use receipts for any purpose
34 other than disbursements in the preceding election until all unspent
35 public campaign funds have been repaid. A participating candidate shall
36 have the burden of demonstrating that a post-election expenditure is for
37 the preceding election.
38 (ii) Before repaying unspent public campaign funds, a participating
39 candidate may make post-election expenditures only for routine activ-
40 ities involving nominal costs associated with winding up a campaign and
41 responding to the post-election audit. Such expenditures may include:
42 payment of utility bills and rent; reasonable staff salaries and
43 consultant fees for responding to a post-election audit; reasonable
44 moving expenses related to closing a campaign office; a holiday card
45 mailing to contributors, campaign volunteers, and staff members; thank
46 you notes for contributors, campaign volunteers, and staff members;
47 payment of taxes and other reasonable expenses for compliance with
48 applicable tax laws; and interest expenses. Routine post-election
49 expenditures that may be paid for with unspent campaign funds do not
50 include such items as post-election mailings other than as specifically
51 provided for in this subparagraph; making contributions; making bonus
52 payments or gifts to staff members or volunteers, or holding any post-e-
53 lection day event, including, but not limited to, any meal or any party.
54 Unspent campaign funds may not be used for transition or inauguration
55 activities.
S. 6512 14
1 7. All monies received by the campaign finance board pursuant to this
2 section shall be deposited into the New York state campaign finance fund
3 pursuant to section ninety-nine-u of the state finance law.
4 § 4. The general business law is amended by adding a new section 359-
5 gg to read as follows:
6 § 359-gg. Additional surcharge. In addition to any penalty authorized
7 by section three hundred fifty-nine-g of this article or any damages or
8 other compensation recoverable including, but not limited to, any
9 settlement authorized by section sixty-three or sixty-three-c of the
10 executive law, there shall be assessed thereon an additional surcharge
11 in the amount of ten percent of the total amount of such penalty,
12 damages or settlement. Such surcharge shall be deposited in the New York
13 state campaign finance fund established by section ninety-nine-u of the
14 state finance law.
15 § 5. The state finance law is amended by adding a new section 99-u to
16 read as follows:
17 § 99-u. New York state campaign finance fund. 1. There is hereby
18 established in the custody of the commissioner of taxation and finance a
19 special fund to be known as the New York state campaign finance fund.
20 2. Such fund shall consist of all revenues received from the surcharge
21 imposed pursuant to section three hundred fifty-nine-gg of the general
22 business law, revenues received from campaign finance fund check-off
23 pursuant to subsection (f) of section six hundred fifty-eight of the tax
24 law and all other moneys credited or transferred thereto from any other
25 fund or source pursuant to law. Nothing contained in this section shall
26 prevent the state from receiving grants, gifts, bequests or voluntary
27 contributions for the purposes of the fund as defined in this section
28 and depositing them into the fund according to law. Monies in the fund
29 shall be kept separate from and not commingled with other funds held in
30 the custody of the commissioner of taxation and finance.
31 3. Moneys of the fund, following appropriation by the legislature, may
32 be expended for the purposes of making payments to candidates pursuant
33 to title two of article fourteen of the election law. Moneys shall be
34 paid out of the fund by the commissioner of taxation and finance on
35 vouchers certified or approved by the campaign finance board established
36 pursuant to title two of article fourteen of the election law, or the
37 duly designated representative of such board, in the manner prescribed
38 by law, not more than one working day after a voucher duly certified,
39 approved and executed by such board or its representative in the form
40 prescribed by the commissioner of taxation and finance is received by
41 the commissioner of taxation and finance.
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 campaign finance board, any such deficiency shall be
46 paid, upon audit and warrant of the state comptroller, from funds depos-
47 ited in the general fund of the state not more than one working day
48 after such voucher is received by the state comptroller.
49 5. Commencing in two thousand sixteen, if the surplus in the fund on
50 April first of the year after an election cycle exceeds twenty-five
51 percent of the disbursements from the fund over the previous four years,
52 the excess shall revert to the general fund of the state.
53 6. No public funds shall be paid to any participating candidates in a
54 primary election any earlier than the day that such candidate is certi-
55 fied as being on the ballot for such primary election.
S. 6512 15
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 candidate who
5 has been disqualified or whose designating petitions have been declared
6 invalid by the appropriate board of elections or a court of competent
7 jurisdiction until and unless such finding is reversed by a higher
8 authority. No payment from the fund in the possession of such a candi-
9 date or such candidate's participating committee on the date of such
10 disqualification or invalidation may thereafter be expended for any
11 purpose except the payment of liabilities incurred before such date. All
12 such moneys shall be repaid to the fund.
13 § 6. Section 658 of the tax law is amended by adding a new subsection
14 (f) to read as follows:
15 (f) New York state campaign finance fund check-off. (1) For each taxa-
16 ble year beginning on and after January first, two thousand thirteen,
17 every individual whose New York state income tax liability for the taxa-
18 ble year for which the return is filed is five dollars or more may
19 designate on such return that five dollars be paid into the New York
20 state campaign finance fund established by section ninety-nine-u of the
21 state finance law. Where a husband and wife file a joint return and have
22 a New York state income tax liability for the taxable year for which the
23 return is filed of ten dollars or more, or file separate returns on a
24 single form, each such taxpayer may make separate designations on such
25 return of five dollars to be paid into the New York state campaign
26 finance fund.
27 (2) The commissioner shall transfer to the New York state campaign
28 finance fund, established pursuant to section ninety-nine-u of the state
29 finance law, an amount equal to five dollars multiplied by the number of
30 designations.
31 (3) For purposes of this subsection, the income tax liability of an
32 individual for any taxable year is the amount of tax imposed under this
33 article reduced by the sum of the credits (as shown in his or her
34 return) allowable under this article.
35 (4) The department shall include a place on every personal income tax
36 return form to be filed by an individual for a tax year beginning on or
37 after January first, two thousand thirteen, immediately above the
38 certification under which the taxpayer is required to sign such form,
39 for such taxpayer to make the designations described in paragraph one of
40 this subsection. Such return form shall contain a concise explanation of
41 the purpose of such optional designations.
42 § 7. Severability. If any clause, sentence, subdivision, paragraph,
43 section or part of this act be adjudged by any court of competent juris-
44 diction to be invalid, such judgment shall not affect, impair or invali-
45 date the remainder thereof, but shall be confined in its operation to
46 the clause, sentence, subdivision, paragraph, section or part thereof
47 directly involved in the controversy in which such judgment shall have
48 been rendered.
49 § 8. This act shall take effect January 1, 2013.
