Amd SS1-c, 1-h & 1-j, Leg L; add SS14-131 - 14-133 & 14-134, amd SS14-130 & 14-102, El L; amd S74, Pub Off L
Requires additional disclosures from lobbyists including: campaign contributions to elected officials; existing business relationships or associations with public officials; and the names of family members of a public official to whom the lobbyist, or his or her employer, paid compensation of over $500 in the preceding calendar year and the amount of compensation paid.
STATE OF NEW YORK
________________________________________________________________________
2020--A
2013-2014 Regular Sessions
IN ASSEMBLY(Prefiled)
January 9, 2013
___________
Introduced by M. of A. KAVANAGH, GALEF -- read once and referred to the
Committee on Governmental Operations -- recommitted to the Committee
on Governmental Operations in accordance with Assembly Rule 3, sec. 2
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
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
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "Lobbyist
2 Disclosure Campaign Fund Act".
3 § 2. Section 1-c of the legislative law is amended by adding a new
4 subdivision (x) to read as follows:
5 (x) The term "family member" shall mean any of the following, includ-
6 ing parents, stepparents, spouse, domestic partners, grandparents,
7 brothers, sisters, uncles, and aunts, whether of the whole blood or half
8 blood or by or through legal sanction.
9 § 3. Paragraph 5 of subdivision (b) of section 1-h of the legislative
10 law is amended by adding two new subparagraphs (vi) and (vii) to read as
11 follows:
12 (vi) the campaign contributions made, in any form, to any campaign or
13 political committee in New York state by the client by whom or on whose
14 behalf the lobbyist is retained, employed or designated, by the lobby-
15 ist, and by any employees of the lobbyist.
16 (vii) the amount of compensation paid and the names of any family
17 members of a public official to whom a lobbyist and the client by whom
18 or on whose behalf the lobbyist is retained, employed or designated has
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03037-02-4
A. 2020--A 2
1 paid compensation of more than five hundred dollars in the preceding
2 calendar year for personal employment or professional services.
3 § 4. Subdivision (b) of section 1-h of the legislative law is amended
4 by adding a new paragraph 6 to read as follows:
5 (6) the name, address and telephone number of any public official with
6 whom the lobbyist has any business relationship.
7 § 5. Paragraph 5 of subdivision (b) of section 1-j of the legislative
8 law is amended by adding two new subparagraphs (vi) and (vii) to read as
9 follows:
10 (vi) the campaign contributions made, in any form, to any campaign or
11 political committee in New York state by the client by whom or on whose
12 behalf the lobbyist is retained, employed or designated, by the lobby-
13 ist, and by any employees of the lobbyist.
14 (vii) the amount of compensation paid and the names of any family
15 members of a public official to whom a lobbyist and the client by whom
16 or on whose behalf the lobbyist is retained, employed or designated has
17 paid compensation of more than five hundred dollars in the preceding
18 calendar year for personal employment or professional services.
19 § 6. Subdivision (b) of section 1-j of the legislative law is amended
20 by adding a new paragraph 7 to read as follows:
21 (7) the name, address and telephone number of any public official with
22 whom the lobbyist has any business relationship.
23 § 7. The election law is amended by adding three new sections 14-131,
24 14-132 and 14-133 to read as follows:
25 § 14-131. Lobbyist reporting and contribution limits. 1. Definitions.
26 The following definitions shall apply to this section:
27 a. "agent" means any person acting at the direction of or on behalf of
28 an individual or business entity;
29 b. "business entity" means a business corporation, professional
30 services corporation, limited liability company, partnership, limited
31 partnership, business trust, association or any other legal commercial
32 entity organized under the laws of this state or any other state or
33 foreign jurisdiction, including any subsidiary directly or indirectly
34 controlled by the business entity, and any political organization,
35 including but not limited to any political organization organized under
36 section 527 of the Internal Revenue Code, that is directly or indirectly
37 controlled by the business entity;
38 c. "immediate family" means any spouse or child of an individual or
39 any financially dependent relatives who reside in the individual's
40 household;
41 d. "housekeeping account" means an account maintained by a party
42 committee or constituted committee from which expenditures are made to
43 maintain a permanent headquarters and staff and carry on ordinary party
44 activities which are not for the express purpose of promoting the candi-
45 dacy of specific candidates;
46 e. "candidate for state office" means a candidate for the following
47 state offices: governor, lieutenant governor, attorney general, comp-
48 troller, senator, and member of the assembly;
49 f. "behested payments" means contributions or payments solicited by
50 state elected officials to be used for legislative, governmental or
51 charitable purposes, but not campaign purposes; and
52 g. "personal business transaction" means transactions for services
53 offered by the elected official in his or her capacity as a private
54 citizen to any member of the public.
55 2. The following persons and business entities who make a contribution
56 to a candidate for state office, a political committee working directly
A. 2020--A 3
1 or indirectly to aid or participate in such candidate's nomination or
2 election, a political committee established or controlled by such candi-
3 date, or a state or local committee of a political party, including a
4 housekeeping account, shall file reports as required by subdivision
5 three of this section with the state board of elections within seven
6 calendar days after the date of a contribution:
7 a. a lobbyist registered under section one-e of the legislative law,
8 including any person, organization, group of persons or business entity
9 that is so registered;
10 b. any person who owns more than ten percent of a business entity
11 described in paragraph a of this subdivision;
12 c. any person employed by an organization, group, or business entity
13 described in paragraph a of this subdivision who holds a senior manage-
14 ment position as defined by the commission on governmental ethics;
15 d. the immediate family member of a person who is described in para-
16 graph a, b or c of this subdivision; or
17 e. any political committee established or controlled by a person,
18 organization, group of persons or business entity described in para-
19 graphs a, b, c or d of this subdivision.
20 3. The board of elections shall prescribe forms and procedures for the
21 reporting required in subdivision two of this section which, at a mini-
22 mum, shall require electronic filing of the following information:
23 a. the name, address, employer and name of spouse of the person making
24 the contribution and the name of the spouse's employer;
25 b. the name of the candidate, political committee, or state or local
26 committee of a political party, including a housekeeping account,
27 receiving the contribution;
28 c. the amount and date of the contribution; and
29 d. if an organization, group of persons, or business entity is making
30 the contribution:
31 (i) the names and business addresses of all persons who own more than
32 ten percent of the organization, group or entity; or
33 (ii) the names and business addresses of all persons employed by the
34 organization, group, or business entity who hold a senior management
35 position as defined by the commission on governmental ethics.
36 4. Elected officials must report any behested payments they have
37 solicited if they total five thousand dollars or more per calendar year
38 from a single source within thirty days of the date the behested payment
39 is made on forms proscribed by the commission on governmental ethics.
40 5. The board of elections shall maintain completed forms and reports
41 described in subdivision two of this section for public inspection both
42 at the board of elections office and through the board of elections
43 electronic filing system for campaign finance disclosure (EFS).
44 6. It shall be unlawful for any person, organization, group of persons
45 or business entity described in paragraphs a, b, c, d and e of subdivi-
46 sion two of this section to:
47 a. make contributions to a candidate for state office, a political
48 committee working directly or indirectly to aid or participate in such
49 candidate's nomination or election, or a political committee established
50 or controlled by such candidate that exceed the following amounts per
51 election for the following offices:
52 (i) governor: five hundred dollars;
53 (ii) lieutenant governor: five hundred dollars;
54 (iii) attorney general: five hundred dollars;
55 (iv) comptroller: five hundred dollars;
56 (v) senator: three hundred fifty dollars; and
A. 2020--A 4
1 (vi) member of assembly: two hundred fifty dollars;
2 b. make contributions to:
3 (i) political committees working directly or indirectly to aid or
4 participate in the nomination or election of a candidate for the offices
5 described in subparagraphs (i), (ii), (iii), (iv), (v) and (vi) of para-
6 graph a of this subdivision, or other political committees established
7 or controlled by a candidate for the offices described in subparagraphs
8 (i), (ii), (iii), (iv), (v) and (vi) of paragraph a of this subdivision,
9 that in the aggregate exceed four thousand dollars per election; or
10 (ii) state or local committees of a political party, or any house-
11 keeping account, in an amount greater than one thousand dollars per
12 election, and in an aggregate to all state or local committees of poli-
13 tical parties in an aggregate that exceeds two thousand dollars per
14 election;
15 c. transmit a contribution on behalf of another to, or solicit a
16 contribution on behalf of:
17 (i) a candidate for any of the offices for which contributions are
18 limited under paragraph a of this subdivision;
19 (ii) any political committee working directly or indirectly to aid or
20 participate in the nomination or election of a candidate for office for
21 which their contributions are limited in paragraph a of this subdivi-
22 sion, or any other political committee established or controlled by a
23 candidate for the offices for which their contributions are limited
24 under paragraph a of this subdivision;
25 (iii) a state or local committee of a political party, including a
26 housekeeping account;
27 d. participate in any fund-raising activities for:
28 (i) a candidate for any of the offices for which contributions are
29 limited under paragraph a of this subdivision;
30 (ii) any political committee working directly or indirectly to aid or
31 participate in the nomination or election of a candidate for office for
32 which their contributions are limited in paragraph a of this subdivi-
33 sion, or any other political committee established or controlled by a
34 candidate for the offices for which their contributions are limited
35 under paragraph a of this subdivision;
36 (iii) a state or local committee of a political party, including a
37 housekeeping account;
38 e. serve as chairperson, treasurer, or any other officer of:
39 (i) any political committee working directly or indirectly to aid or
40 participate in the nomination or election of a candidate for office for
41 which their contributions are limited under paragraph a of this subdivi-
42 sion; or
43 (ii) any other political committee established or controlled by a
44 candidate for which their contributions are limited under paragraph a of
45 this subdivision;
46 f. conduct personal business transactions in an amount over two thou-
47 sand dollars in any calendar year with a public official holding the
48 offices for which their contributions are limited under paragraph a of
49 this subdivision;
50 g. deliver to any conduit or intermediary any contribution earmarked
51 for a particular candidate for the offices for which their contributions
52 are limited under paragraph a of this subdivision, or any committee
53 working directly or indirectly to aid or participate in such candidate's
54 nomination or election, or any other political committee established or
55 controlled by such candidate; or
A. 2020--A 5
1 h. knowingly take other steps to circumvent the restrictions in this
2 subsection.
3 7. No candidate for state office, committee working directly or indi-
4 rectly to aid or participate in such candidate's nomination or election,
5 or any other political committee established or controlled by such
6 candidate shall accept contributions from any person, organization,
7 group of persons, or business entity described in paragraph a, b, c, d
8 or e of subdivision two of this section that exceed the following
9 amounts per election for the following offices:
10 a. governor: five hundred dollars;
11 b. lieutenant governor: five hundred dollars;
12 c. comptroller: five hundred dollars;
13 d. attorney general: five hundred dollars;
14 e. senator: three hundred fifty dollars; and
15 f. member of assembly: two hundred fifty dollars.
16 8. No state or local political party committees, including any house-
17 keeping account, shall accept contributions in an amount greater than
18 one thousand dollars per election from any person, organization, group
19 of persons or business entity described in paragraph a, b, c, d or e of
20 subdivision two of this section.
21 9. No public official holding any of the offices listed in paragraph a
22 of subdivision six of this section shall conduct personal business tran-
23 sactions in an amount over two thousand dollars in any calendar year
24 with any person, organization, group of persons or business entity
25 described in paragraph a, b, c, d or e of subdivision two of this
26 section.
27 10. This section shall not prohibit any person from informing any
28 other person of a position taken by a public official or a candidate for
29 public office.
30 11. The provisions of subdivisions two and six of this section shall
31 not apply to the campaign of any person described in paragraph a, b, c
32 or d of subdivision two of this section who is a candidate for any of
33 those offices listed in paragraph a of subdivision six of this section.
34 § 14-132. Government contractor reporting and contribution limits. 1.
35 Definitions. The following definitions shall apply to this section:
36 a. "agent" means any person acting at the direction of or on behalf of
37 an individual or business entity;
38 b. "business entity" means a business corporation, professional
39 services corporation, limited liability company, partnership, limited
40 partnership, business trust, association or any other legal commercial
41 entity organized under the laws of this state or any other state or
42 foreign jurisdiction, including any subsidiary directly or indirectly
43 controlled by the business entity, and any political organization,
44 including but not limited to any political organization organized under
45 section 527 of the Internal Revenue Code, that is directly or indirectly
46 controlled by the business entity;
47 c. "immediate family" means any spouse or child of an individual or
48 any financially dependent relatives who reside in the individual's
49 household;
50 d. "housekeeping account" means an account maintained by a party
51 committee or constituted committee from which expenditures are made to
52 maintain a permanent headquarters and staff and carry on ordinary party
53 activities which are not for the express purpose of promoting the candi-
54 dacy of specific candidates;
A. 2020--A 6
1 e. "candidate for state office" means a candidate for the following
2 state offices: governor, lieutenant governor, attorney general, comp-
3 troller, senator, and member of the assembly; and
4 f. "personal business transaction" means transactions for services
5 offered by the elected official in his or her capacity as a private
6 citizen to any member of the public.
7 2. The following persons and business entities who make a contribution
8 to a candidate for state office, a political committee working directly
9 or indirectly to aid or participate in such candidate's nomination or
10 election, a political committee established or controlled by such candi-
11 date, or a state or local committee of a political party, including a
12 housekeeping account, shall file reports as required by subdivision
13 three of this section with the board of elections within seven calendar
14 days after the date of a contribution made within thirty-six days of an
15 election, or, for contributions made at any other time, within thirty-
16 six days of the date of the contribution or the date of any applicable
17 contract, whichever occurs later:
18 a. any person, organization, group of persons, or business entity that
19 has received, in a calendar year fifty thousand dollars or more through
20 contracts from the state or any state-appointed entity with contracting
21 power;
22 b. any person who owns more than ten percent of a business entity that
23 is described in paragraph a of this subdivision;
24 c. any person employed by an organization, group, or business entity
25 described in paragraph a of this subdivision who holds a senior manage-
26 ment position as defined by the state ethics commission;
27 d. the immediate family member of a person who is described in para-
28 graph a, b or c of this subdivision; or
29 e. any political committee established or controlled by a person,
30 organization, group of persons or business entity described in paragraph
31 a, b, c and d of this subdivision.
32 3. The board of elections shall prescribe forms and procedures for the
33 reporting required in subdivision two of this section which, at a mini-
34 mum, shall require the electronic filing of the following information:
35 a. the name, address, employer and the name of spouse of the person
36 making the contribution and the name of the spouse's employer;
37 b. the name of the candidate, political committee, or state or local
38 committee of a political party, including a housekeeping account,
39 receiving the contribution;
40 c. the amount of the contract with the state or other entity defined
41 in paragraph a of subdivision two of this section, and the dates and
42 other information identifying each contract for services or goods; and
43 d. if an organization, group of persons, or business entity is making
44 the contribution:
45 (i) the names and business addresses of all persons who own more than
46 ten percent of the organization, group or entity; or
47 (ii) the names and business addresses of all persons employed by the
48 organization, group, or business entity who hold a senior management
49 position as defined by the commission on governmental ethics.
50 4. The board of elections shall maintain completed forms and reports
51 described in subdivision two of this section for public inspection both
52 at the board of elections office and through the board of elections
53 electronic filing system for campaign finance disclosure (EFS).
54 5. From twelve months after a bid or proposal to the relevant agency
55 or contracting authority for a contract described in subdivision two of
56 this section and either twelve months after completion of the applicable
A. 2020--A 7
1 contract, or upon completion of the applicable elected official's term
2 in office, whichever is longer, it shall be unlawful for any person,
3 organization, group of persons or business entity described in para-
4 graphs a, b, c and d or e of subdivision two of this section to:
5 a. make contributions to a candidate for state office, any political
6 committee working directly or indirectly to aid or participate in such
7 candidate's nomination or election, or any other political committee
8 established or controlled by such candidate that exceed the following
9 amounts per election for the following offices:
10 (i) governor: five hundred dollars;
11 (ii) lieutenant governor: five hundred dollars;
12 (iii) comptroller: five hundred dollars;
13 (iv) attorney general: five hundred dollars;
14 (v) senator: three hundred fifty dollars; or
15 (vi) member of assembly: two hundred fifty dollars;
16 b. make contributions to:
17 (i) political committees working directly or indirectly to aid or
18 participate in the nomination or election of a candidate for the offices
19 described in subparagraphs (i), (ii), (iii), (iv), (v) and (vi) of para-
20 graph a of this subdivision, or other political committees established
21 or controlled by a candidate for the offices described in subparagraphs
22 (i), (ii), (iii), (iv), (v) and (vi) of paragraph a of this subdivision
23 that in the aggregate exceed four thousand dollars per election; or
24 (ii) state or local committees of a political party, or any house-
25 keeping account, in an amount greater than one thousand dollars per
26 election, and in an aggregate to all state or local committees of poli-
27 tical parties in an aggregate that exceeds two thousand dollars per
28 election;
29 c. solicit a contribution on behalf of, or transmit a contribution on
30 behalf of another to:
31 (i) a candidate for any of the offices for which contributions are
32 limited under paragraph a of this subdivision;
33 (ii) any political committee working directly or indirectly to aid or
34 participate in the nomination or election of a candidate for office for
35 which their contributions are limited in paragraph a of this subdivi-
36 sion, or any other political committee established or controlled by a
37 candidate for the offices for which their contributions are limited
38 under paragraph a of this subdivision;
39 (iii) a state or local committee of a political party including a
40 housekeeping account;
41 d. participate in any fund-raising activities for:
42 (i) a candidate for any of the offices for which contributions are
43 limited under paragraph a of this subdivision;
44 (ii) any political committee working directly or indirectly to aid or
45 participate in the nomination or election of a candidate for office for
46 which their contributions are limited in paragraph a of this subdivi-
47 sion, or any other political committee established or controlled by a
48 candidate for the offices for which their contributions are limited
49 under paragraph a of this subdivision;
50 (iii) a state or local committee of a political party, including a
51 housekeeping account;
52 e. serve as chairperson, treasurer, or any other officer of:
53 (i) any political committee working directly or indirectly to aid or
54 participate in the nomination or election of a candidate for office for
55 which their contributions are limited under paragraph a of this subdivi-
56 sion; or
A. 2020--A 8
1 (ii) any other political committee established or controlled by a
2 candidate for which their contributions are limited under paragraph a of
3 this subdivision;
4 f. conduct personal business transactions in an amount over two thou-
5 sand dollars in any calendar year with a public official holding the
6 offices for which their contributions are limited under paragraph a of
7 this subdivision;
8 g. deliver to any conduit or intermediary any contribution earmarked
9 for a particular candidate for the offices for which their contributions
10 are limited under paragraph a of this subdivision, or any committee
11 working directly or indirectly to aid or participate in such candidate's
12 nomination or election, or any other political committee established or
13 controlled by such candidate; or
14 h. knowingly take any step to circumvent the restrictions in this
15 subdivision.
16 i. the provisions of this section shall not apply for a contractor
17 making a contribution, or any disclosure thereof required by this arti-
18 cle, in any calendar year in which such contractor receives funds
19 disbursed by the state or any instrumentality thereof pursuant to a
20 federal statute, rule or regulation that would render the state or such
21 instrumentality or contractor ineligible to receive such funds by virtue
22 of the operation of this section.
23 This subdivision shall not be applicable to contributions made by any
24 person, organization, group of persons or business entity at a time when
25 the person, organization, group of persons or business entity did not
26 meet the descriptions of paragraphs a, b, c, d and e of subdivision two
27 of this section.
28 6. The state or any state department, public entity or authority with
29 contract-making power shall not enter into an agreement or otherwise
30 contract to procure services or any material, supplies or equipment, or
31 to acquire, sell, or lease any land or building from any person, organ-
32 ization, group of persons or business entity described in paragraphs a,
33 b, c and d of subdivision two of this section who has made a contrib-
34 ution prohibited in subdivision five of this section. This subdivision
35 shall not be applicable to contributions made by any person, organiza-
36 tion, group of persons or business entity at a time when the person,
37 organization, group of persons or business entity did not meet the
38 descriptions of paragraph a, b, c, d or e of subdivision two of this
39 section. Nothing in this section shall impair the power of the state or
40 any instrumentality thereof to enter into a contract with any contractor
41 where federal funds would support the payment or performance of such
42 contract and a federal statute, rule or regulation would render the
43 state or such instrumentality or contractor ineligible to receive such
44 funds by virtue of the operation of this section.
45 7. Every contract and bid application and specifications promulgated
46 by the state or any state department, public entity or authority with
47 contract-making power shall contain a provision describing the require-
48 ments of section 14-116 of this article.
49 8. Before entering into any agreement or any other contract to procure
50 from any person, organization, group of persons or business entity
51 services or any material, supplies or equipment, or to acquire, sell, or
52 lease any land or building, the state or any state department, public
53 entity or authority with contract-making power shall receive a sworn
54 statement from the contractor, made under penalty of perjury, that the
55 bidder or offerer has not made a contribution in violation of this
56 section.
A. 2020--A 9
1 9. No candidate for state office shall accept campaign contributions
2 from a person, organization, group of persons or business entity
3 described in paragraph a, b, c, d or e of subdivision two of this
4 section in an amount exceeding those permitted in paragraph a of subdi-
5 vision five of this section for twelve months after completion of the
6 applicable contract, or the remainder of the candidate's term in office,
7 whichever is longer. This subdivision shall not be applicable to
8 contributions made by any person, organization, group of persons or
9 business entity at a time when the person, organization, group of
10 persons or business entity did not meet the descriptions of paragraph a,
11 b, c, d or e of subdivision two of this section.
12 10. No public official holding any of the offices listed in paragraph
13 a of subdivision five of this section shall conduct personal business
14 transactions in an amount over two thousand dollars in any calendar year
15 with any person, organization, group of persons or business entity
16 described in paragraphs a, b, c and d of subdivision two of this
17 section.
18 11. This section shall not prohibit any person from informing any
19 other person of a position taken by a public official or a candidate for
20 public office.
21 12. The provisions of subdivisions two and five of this section shall
22 not apply to the campaign of any person described in paragraph a, b, c
23 or d of subdivision two of this section who is a candidate for any of
24 those offices listed in paragraph a of subdivision five of this section.
25 § 14-133. Commissioning authorities and licensing authorities. The
26 following persons shall not be appointed to a state public board or
27 commission which has the authority to award or audit any public
28 contract:
29 1. a lobbyist registered under section one-e of the legislative law;
30 2. any person or business entity who, in the previous two years, has
31 received fifty thousand dollars or more through one or more contracts
32 from the state or any state-appointed entity with contracting power;
33 3. any person who owns more than ten percent of a business entity that
34 is described in subdivision two of this section;
35 4. any person employed by an organization, group, or business entity
36 described in subdivision two of this section who holds a senior manage-
37 ment position as defined by the commission on governmental ethics; or
38 5. an immediate family member of a person described in subdivision
39 one, two, three, or four of this section.
40 § 8. Section 14-130 of the election law, as added by chapter 152 of
41 the laws of 1985, is amended to read as follows:
42 § 14-130. Campaign funds for personal use. 1. Contributions received
43 by a candidate or a political committee may only be expended for [any
44 lawful purpose. Such funds shall not be converted by any person to a
45 personal use which is unrelated to a political campaign or the holding
46 of a public office or party position] bona fide purposes directly
47 related to either:
48 a. promoting the nomination or election of a candidate; or
49 b. performing those duties of public office or party position which
50 are not paid for or eligible for reimbursement by the state or any poli-
51 tical subdivision or private party.
52 2. Permissible ordinary and necessary expenses relating to the holding
53 of public office or party position shall include:
54 a. production and circulation of flyers or other written materials
55 related to duties of officeholder; the placement of holiday greetings
A. 2020--A 10
1 and congratulatory ads and memorial notices in local newspapers, maga-
2 zines, journals or other publication;
3 b. sponsorship or hosting of community meetings; tickets or donations
4 to local charitable, non-profit or political events, organizations or
5 activities that promote the welfare of constituents or political
6 campaigns;
7 c. incidental expenditures for the operation of legislative offices,
8 including purchase of items such as memorial or get-well gifts, flowers
9 or similar items of nominal value for constituents or others;
10 d. membership in organizations related to official duties and costs of
11 attending informational meetings attended in connection with such
12 duties; and
13 e. travel related to duties of office, provided that the travel is not
14 undertaken for any purpose resulting in a personal or financial benefit
15 to the candidate or officeholder. If such expenses involve both personal
16 activity and campaign or official activities, the incremental expenses
17 associated with the personal activities are personal uses unless the
18 campaign is reimbursed for such sums from other than campaign funds
19 within thirty days of the expenditure.
20 Nothing in this section shall prohibit a candidate from purchasing
21 office equipment with personal funds and leasing or renting such equip-
22 ment or property to a committee working with or for the candidate,
23 provided the candidate or the campaign treasurer sign a written lease or
24 rental agreement and files it with the appropriate required campaign
25 financial filing which shall include the lease or rental price which
26 shall not exceed the fair lease or rental value of the equipment or in
27 the aggregate exceed the cost of its purchase.
28 3. Campaign funds shall not be converted to personal use, which shall
29 be defined as expenditures that:
30 a. are for the personal benefit of or to defray normal living expenses
31 of the candidate, officeholder, immediate family or partner of either or
32 any other person;
33 b. are used to fulfill any commitment, obligation, or expense that
34 would exist irrespective of the candidate's campaign or duties as an
35 officeholder; or
36 c. are put to any use for which the candidate or officeholder would be
37 required to treat the amount of the expenditure as gross income under
38 section 61 of the Internal Revenue Code.
39 4. Expenditures for personal use shall also include, but are not
40 limited to, expenditures for:
41 a. residential or household items, supplies, maintenance or other
42 expenditures, including mortgage, rent, utilities, repairs, or improve-
43 ments for any part of any personal residence of a candidate or office-
44 holder, his or her immediate family or partner;
45 b. rent or utility payments that exceed fair market value for use of
46 any part of any non-residential property owned by a candidate, or a
47 member of a candidate's family or partner used for campaign purposes;
48 c. salary and other fees for bona fide services to a campaign or
49 legislative office that exceed fair and reasonable market value of such
50 services;
51 d. interest or any other finance charges for monies loaned to the
52 campaign by the candidate or the spouse or partner of such candidate;
53 e. tuition payments;
54 f. dues, fees, or gratuities at private clubs, recreational facilities
55 or other nonpolitical organizations, unless connected to a specific
A. 2020--A 11
1 widely attended fundraising event that takes place on the organization's
2 premises;
3 g. automobile purchases or long term leases; short term car rentals
4 and cellular equipment and services not used exclusively for campaign
5 purposes or duties as an officeholder;
6 h. admission to sporting events, concerts, theaters, or other forms of
7 entertainment, unless part of a specific campaign or officeholder
8 related activity; and
9 i. payment of any fines, fees, or penalties assessed pursuant to this
10 chapter.
11 5. No campaign funds shall be used to pay attorney's fees or any costs
12 of defending against any civil or criminal investigation or prosecution
13 for alleged violations of state or federal law alleged to have been
14 committed while holding public office or as a candidate for office where
15 the candidate or public or party official, members of their immediate
16 families or partners or the campaign is the target of such investigation
17 or prosecution unless such expenditure is used exclusively for costs
18 related to civil or criminal actions for alleged violations related to
19 activities promoting the nomination or election of a candidate.
20 § 9. The election law is amended by adding a new section 14-134 to
21 read as follows:
22 § 14-134. Disposition of campaign funds. 1. An authorized continuing
23 candidate committee must dispose of all funds and close within four
24 years after the later of (a) the end of the individual's most recent
25 term of office, or (b) the date of the election in which the individual
26 last was a filed candidate.
27 2. Any candidate or political committee required to dispose of funds
28 pursuant to this section shall, at the option of the candidate, or the
29 treasurer of a political committee formed solely to promote the passage
30 or defeat of a ballot proposal, dispose of such funds by any of the
31 following means, or any combination thereof:
32 a. returning, pro rata, to each contributor the funds that have not
33 been spent or obligated;
34 b. donating the funds to a charitable organization or organizations
35 that meet the qualifications of section 501(c)(3) of the Internal Reven-
36 ue Code;
37 c. donating the funds to the state university;
38 d. donating the funds to the state's general fund;
39 e. transferring the funds to a political party committee registered
40 with the state board of elections; or
41 f. contributing the funds to a candidate or political committee such
42 that this does not exceed the limits set forth in section 14-114 of this
43 article.
44 3. No candidate or political committee shall dispose of campaign funds
45 by making expenditures for personal use as defined in section 14-130 of
46 this article.
47 4. Upon the death of a candidate, former candidate or holder of elec-
48 tive office, who received campaign contributions, all contributions
49 shall be disposed of according to this section within twelve months of
50 the death of the candidate.
51 § 10. Subdivision 1 of section 14-102 of the election law, as amended
52 by chapter 8 and redesignated by chapter 9 of the laws of 1978, is
53 amended to read as follows:
54 1. The treasurer of every political committee which, or any officer,
55 member or agent of any such committee who, in connection with any
56 election, receives or expends any money or other valuable thing or
A. 2020--A 12
1 incurs any liability to pay money or its equivalent shall file state-
2 ments sworn, or subscribed and bearing a form notice that false state-
3 ments made therein are punishable as a class A misdemeanor pursuant to
4 section 210.45 of the penal law, at the times prescribed by this article
5 setting forth all the receipts, contributions to and the expenditures by
6 and liabilities of the committee, and of its officers, members and
7 agents in its behalf. Such statements shall include the dollar amount of
8 any receipt, contribution or transfer, or the fair market value of any
9 receipt, contribution or transfer, which is other than of money, the
10 name and address of the transferor, contributor or person from whom
11 received, if the contributor is a lobbyist registered pursuant to arti-
12 cle one-A of the legislative law and if the transferor, contributor or
13 person is a political committee; the name of and the political unit
14 represented by the committee, the date of its receipt, the dollar amount
15 of every expenditure, the name and address of the person to whom it was
16 made or the name of and the political unit represented by the committee
17 to which it was made and the date thereof, and shall state clearly the
18 purpose of such expenditure. Any statement reporting a loan shall have
19 attached to it a copy of the evidence of indebtedness. Expenditures in
20 sums under fifty dollars need not be specifically accounted for by sepa-
21 rate items in said statements, and receipts and contributions aggregat-
22 ing not more than ninety-nine dollars, from any one contributor need not
23 be specifically accounted for by separate items in said statements,
24 provided however, that such expenditures, receipts and contributions
25 shall be subject to the other provisions of section 14-118 of this arti-
26 cle.
27 § 11. Subdivision 3 of section 74 of the public officers law is
28 amended by adding a new paragraph j to read as follows:
29 j. No officer or employee of a state agency required to file an annual
30 statement of financial disclosure pursuant to section seventy-three-a of
31 this article shall solicit or receive contributions for a campaign for
32 state or federal office.
33 § 12. This act shall take effect on the first of January next succeed-
34 ing the date on which it shall have become a law; provided that section
35 14-132 of the election law as added by section seven of this act shall
36 take effect two years after such effective date; and provided further
37 that sections eight, nine, ten and eleven of this act shall take effect
38 on the sixtieth day after it shall have become a law; provided, however,
39 that the state board of elections shall notify all registered campaign
40 committees of the applicable provisions of sections eight, nine, ten and
41 eleven of this act within thirty days after this act shall have become a
42 law.
