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S04009 Summary:

BILL NOS04009
 
SAME ASNo same as
 
SPONSORADAMS
 
COSPNSRADDABBO, AVELLA, SQUADRON
 
MLTSPNSR
 
Amd El L, generally; add S92-t, St Fin L; amd S658, Tax L
 
Enacts the "2013 Campaign Finance Reform Act"; provides for optional partial public financing of certain election campaigns in this state; limits personal use of campaign funds; establishes certain contribution limits; requires identification of the source of certain political communications and provides for a state board of elections enforcement unit and counsel.
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S04009 Actions:

BILL NOS04009
 
03/04/2013REFERRED TO ELECTIONS
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S04009 Floor Votes:

There are no votes for this bill in this legislative session.
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S04009 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4009
 
                               2013-2014 Regular Sessions
 
                    IN SENATE
 
                                      March 4, 2013
                                       ___________
 
        Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Elections
 
        AN ACT enacting the "2013 Campaign Finance Reform  Act";  to  amend  the
          election  law,  the  state finance law and the tax law, in relation to
          providing for optional partial public financing  of  certain  election

          campaigns in this state; and to amend the election law, in relation to
          limiting personal use of campaign funds, establishing certain contrib-
          ution limits, identification of the source of certain political commu-
          nications  and  providing  for  a state board of elections enforcement
          unit and counsel
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Short title.  This act shall be known and may be cited as
     2  the "2013 Campaign Finance Reform Act".
     3    § 2. Legislative findings and declaration.   The legislature  declares
     4  that it is in the public interest to create and ensure a truly democrat-
     5  ic  political  system  in  which citizens, irrespective of their income,
     6  status, or financial connections, are enabled and encouraged to  compete

     7  for  public  office.  Therefore,  the  legislature finds it necessary to
     8  establish a system of public financing for all qualified candidates  for
     9  state elective offices and constitutional convention delegates.
    10    §  3. The article heading of article 14 of the election law is amended
    11  to read as follows:
 
    12            CAMPAIGN RECEIPTS AND EXPENDITURES; PUBLIC FINANCING
 
    13    § 4. Section 14-100 of the election law is amended by adding four  new
    14  subdivisions 12, 13, 14 and 15 to read as follows:
    15    12. "clearly identified candidate" means that:
    16    (a) the name of the candidate involved appears;
    17    (b) a photograph or drawing of the candidate appears; or
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

                                                                   LBD09405-01-3

        S. 4009                             2
 
     1    (c)  the  identity  of the candidate is apparent by unambiguous refer-
     2  ence.
     3    13. "general public audience" means an audience composed of members of
     4  the  public,  including  a  targeted  subgroup of members of the public;
     5  provided, however, it does not mean  an  audience  solely  comprised  of
     6  members,  retirees  and staff of a labor organization or their immediate
     7  family members or an audience solely comprised of employees of  a  busi-
     8  ness entity.
     9    14.  "labor  organization"  means  any  organization of any kind which
    10  exists for the purpose, in whole or in part, of  representing  employees

    11  employed  within  the  state  of  New  York in dealing with employers or
    12  employer organizations or with a state government, or any  political  or
    13  civil  subdivision  or other agency thereof, concerning terms and condi-
    14  tions of employment, grievances, labor disputes, or other matters  inci-
    15  dental  to  the employment relationship.  For the purposes of this arti-
    16  cle, each local, parent national or parent international organization of
    17  a statewide labor organization, and each statewide federation  receiving
    18  dues from subsidiary labor organizations, shall be considered a separate
    19  labor organization.
    20    15.  "Intermediary"  means  an  individual,  corporation, partnership,
    21  political committee, employee organization, or other entity which, other

    22  than in the regular course of business as a postal, delivery, or messen-
    23  ger service, delivers any contribution from another person or entity  to
    24  a  candidate  or  an  authorized  committee.    "Intermediary" shall not
    25  include spouses, parents, children, or siblings  of  the  person  making
    26  such contribution.
    27    §  5.  Section  14-106 of the election law, as amended by section 2 of
    28  part E of chapter 399 of the  laws  of  2011,  is  amended  to  read  as
    29  follows:
    30    § 14-106. Political communication. The statements required to be filed
    31  under  the provisions of this [article] title next succeeding a primary,
    32  general or special election shall be accompanied by a copy of all broad-
    33  cast, cable or satellite schedules  and  scripts,  internet,  print  and

    34  other  types of advertisements, pamphlets, circulars, flyers, brochures,
    35  letterheads and other printed matter purchased or produced, and  reprod-
    36  uctions  of  statements  or information conveyed to five hundred or more
    37  members of a general public audience by  computer  or  other  electronic
    38  means,  purchased  in  connection  with  such  election  by or under the
    39  authority of the person filing the statement or  the  committee  or  the
    40  person  on  whose  behalf  it is filed, as the case may be. Such copies,
    41  schedules and scripts shall be preserved by the officer with whom or the
    42  board with which it is required to be filed for a  period  of  one  year
    43  from the date of filing thereof.
    44    §  6.  The  election  law is amended by adding a new section 14-107 to
    45  read as follows:

    46    § 14-107. Independent expenditure reporting. 1. For purposes  of  this
    47  title:
    48    (a)  "Independent  expenditure"  means an expenditure made by a person
    49  for an audio or video communication to a  general  public  audience  via
    50  broadcast,  cable  or  satellite or a written communication to a general
    51  public  audience  via  advertisements,  pamphlets,  circulars,   flyers,
    52  brochures,  letterheads or other printed matter and statements or infor-
    53  mation conveyed to five hundred or more  members  of  a  general  public
    54  audience  by  computer  or other electronic devices which: (i) expressly
    55  advocates the election or defeat of a clearly  identified  candidate  or
    56  the  success or defeat of a ballot proposal and (ii) such candidate, the

        S. 4009                             3
 
     1  candidate's political committee or its agents, or a political  committee
     2  formed  to  promote  the  success  or defeat of a ballot proposal or its
     3  agents, did not authorize, request, suggest, foster or cooperate in  any
     4  such communication.
     5    (b) Independent expenditures do not include:
     6    (i)  a communication appearing in a written news story, commentary, or
     7  editorial or distributed through  the  facilities  of  any  broadcasting
     8  station,  cable  or  satellite unless such publication or facilities are
     9  owned or controlled by  any  political  party,  political  committee  or
    10  candidate; or
    11    (ii) a communication that constitutes a candidate debate or forum; or

    12    (iii)  a  communication  which  constitutes  an expenditure made by an
    13  entity required to report such expenditure with a board of elections.
    14    (c) "Electioneering communication" means a communication that:  (i) is
    15  disseminated by means of a radio, television, cable, or satellite broad-
    16  cast, a paid advertisement such as in a periodical or on a billboard, or
    17  a mass mailing; (ii) is disseminated within thirty  days  of  a  covered
    18  primary  or  special election, or within sixty days of a covered general
    19  election; and (iii) refers to one  or  more  clearly  identified  ballot
    20  proposals  and/or  candidates  for  a covered election.   Electioneering
    21  communication shall not include a candidate-related  communication  made

    22  by  an  organization  operating  and  remaining  in  good standing under
    23  Section 501(c)(3) of the Internal Revenue Code of 1986.
    24    (d) For the purposes of this section, the term "mass mailing" means  a
    25  mailing by United States mail, common carrier, or facsimile of more than
    26  five  hundred  pieces  of  mail  matter of an identical or substantially
    27  similar nature within any thirty-day period.
    28    (e) For purposes of this section, the term "person" shall mean person,
    29  group of persons, entity, organization, corporation or association.
    30    (f) For purposes of this section, the term "independent spender" shall
    31  mean an individual or entity that makes an independent expenditure.
    32    2. Whenever any person makes one or more independent expenditures that

    33  in the aggregate exceeds one thousand dollars in any calendar year, such
    34  communication described in subdivision one of this section shall clearly
    35  state, with respect to communications  regarding  candidates,  that  the
    36  communication  is not authorized by any candidate, any candidate's poli-
    37  tical committee or any of its agents.  A knowing and  willful  violation
    38  of  the  provisions  of  this  subdivision shall subject the person to a
    39  civil penalty equal to one thousand dollars or the cost of the  communi-
    40  cation,  whichever  is  greater, in a special proceeding or civil action
    41  brought by the state board of elections.
    42    3. (a) Any person which makes independent expenditures or electioneer-

    43  ing communications that cost more  than  one  thousand  dollars  in  the
    44  aggregate  shall  report such independent expenditures or electioneering
    45  communications to the state board of elections in the  manner  specified
    46  in section 14-108 of this title.
    47    (b)  Any  independent expenditure or electioneering communication made
    48  after the close of the period to be covered in the last statement  filed
    49  before  any  primary,  general  or  special  election,  but  before such
    50  election, shall be reported within twenty-four hours in the same  manner
    51  as provided for in subdivision two of section 14-108 of this title.
    52    4. Each such statement shall include:
    53    (a) the name and address of the person making the statement;

    54    (b)  the  name, address, occupation, and employer of the person making
    55  the independent expenditure or electioneering communication;

        S. 4009                             4
 
     1    (c) the name, address, occupation, and employer of any person or enti-
     2  ty providing a gift, loan, advance or deposit of one hundred dollars  or
     3  more for the independent expenditure or electioneering communication, or
     4  the  provision  of  services  for  the  same, and the date it was given;
     5  provided, however, the name and address of a member of a labor organiza-
     6  tion is not required for a gift, loan, advance or deposit of one hundred
     7  dollars  or  more  to a labor organization or a labor organization poli-
     8  tical action committee;

     9    (d) the dollar amount paid for each independent expenditure or electi-
    10  oneering communication, the name and address of  the  person  or  entity
    11  receiving  the  payment, the date the payment was made and a description
    12  of the independent expenditure or electioneering communication; and
    13    (e) the election to which the independent expenditure or  electioneer-
    14  ing communication pertains and the name of the clearly identified candi-
    15  date or the ballot proposal referenced.
    16    5.  Any  report  made pursuant to this section shall include a copy of
    17  all materials that pertain to the independent  expenditure  or  electio-
    18  neering  communication, including but not limited to broadcast, cable or

    19  satellite schedule and scripts,  advertisements,  pamphlets,  circulars,
    20  flyers, brochures, letterheads and other printed matter.
    21    6. Any report of a loan that is made for an independent expenditure or
    22  electioneering  communication  shall  include  written  evidence  of the
    23  indebtedness.
    24    7. Contributions:
    25    (a) When an independent  spender  that  is  an  entity  makes  covered
    26  expenditures  of  one  hundred dollars or more aggregating five thousand
    27  dollars or more in the twelve months preceding the election for communi-
    28  cations that refer to any single candidate, it is required to report:
    29    (i) All contributions accepted from other entities since the first day

    30  of the calendar year preceding the year of the covered election; and
    31    (ii) All  contributions  aggregating  one  thousand  dollars  or  more
    32  accepted  from  an  individual  during  the  twelve months preceding the
    33  election.
    34    (b) Each contributions shall be disclosed in the reporting  period  in
    35  which it was received. The independent spender shall provide:
    36    (i)  For  each contribution accepted from another entity, the entity's
    37  name, address, and type of organization;
    38    (ii) For each contribution accepted from an individual,  the  individ-
    39  ual's name, address, occupation, and employer information;
    40    (iii)  For  each  contribution  the date of receipt and amount of each
    41  such contribution accepted; and

    42    (iv) For each contribution such other similar information as the state
    43  board of elections may require.
    44    (c) Contributions that are earmarked for an election  that  is  not  a
    45  covered election, or for an explicitly stated non-electoral purpose, are
    46  not  required  to  be  reported; provided, however that records of these
    47  contributions must be maintained and may be requested by the state board
    48  of elections to verify their qualification for this exemption.
    49    8. Every statement required to be filed pursuant to this section shall
    50  be filed by electronic reporting process or overnight mail to the  state
    51  board of elections.
    52    9.  The  state  board  of  elections shall promulgate regulations with

    53  respect to the statements required to be filed by this section and shall
    54  provide forms suitable for such statements.
    55    § 7. Section 14-112 of the election law, as amended by chapter 930  of
    56  the laws of 1981, is amended to read as follows:

        S. 4009                             5
 
     1    § 14-112.  Political committee authorization statement.  Any political
     2  committee  aiding  or  taking  part in the election or nomination of any
     3  candidate, other than by making contributions, shall file, in the office
     4  in which the statements of such committee are to be  filed  pursuant  to
     5  this [article] title, either a sworn verified statement by the treasurer
     6  of  such  committee  that  the  candidate  has  authorized the political
     7  committee to aid or take part in his election or that the candidate  has

     8  not authorized the committee to aid or take part in his election.
     9    §  8.  Section  14-126 of the election law, as amended by section 3 of
    10  part E of chapter 399 of the  laws  of  2011,  is  amended  to  read  as
    11  follows:
    12    §  14-126.  Violations;  penalties.  1. Any person who fails to file a
    13  statement required to be filed by this [article] title shall be  subject
    14  to  a civil penalty, not in excess of one thousand dollars, to be recov-
    15  erable in a special proceeding or civil action  to  be  brought  by  the
    16  state  board  of  elections or other board of elections. Any person who,
    17  three or more times within a given  election  cycle  for  such  term  of
    18  office,  fails to file a statement or statements required to be filed by
    19  this [article] title, shall be subject to a civil penalty, not in excess

    20  of ten thousand dollars, to be  recoverable  as  provided  for  in  this
    21  subdivision.
    22    2.  Any person who knowingly and willfully fails to identify independ-
    23  ent  expenditures  as  required  by subdivision two of section 14-107 of
    24  this title or knowingly  and  willfully  fails  to  file  the  statement
    25  required  by  subdivision  two  of section 14-112 of this title shall be
    26  subject to a civil penalty in  a  special  proceeding  or  civil  action
    27  brought by the state board of elections.
    28    3.  Any person who, acting as or on behalf of a candidate or political
    29  committee, under circumstances evincing an intent to violate  such  law,
    30  unlawfully accepts a contribution in excess of a contribution limitation

    31  established  in  this  [article] title, shall be required to refund such
    32  excess amount and shall be subject to  a  civil  penalty  equal  to  the
    33  excess amount plus a fine of up to ten thousand dollars, to be recovera-
    34  ble  in  a special proceeding or civil action to be brought by the state
    35  board of elections.
    36    [3.] 4. Any person who knowingly and willfully fails to file a  state-
    37  ment  required to be filed by this [article] title within ten days after
    38  the date provided for filing such statement or any person who  knowingly
    39  and willfully violates any other provision of this [article] title shall
    40  be guilty of a misdemeanor.
    41    [4.] 5. Any person who knowingly and willfully contributes, accepts or

    42  aids  or  participates  in the acceptance of a contribution in an amount
    43  exceeding an applicable maximum specified in this [article] title  shall
    44  be guilty of a misdemeanor.
    45    [5.] 6. Any person who shall, acting on behalf of a candidate or poli-
    46  tical committee, knowingly and willfully solicit, organize or coordinate
    47  the formation of activities of one or more unauthorized committees, make
    48  expenditures  in connection with the nomination for election or election
    49  of any candidate, or solicit any person to make any  such  expenditures,
    50  for  the  purpose of evading the contribution limitations of this [arti-
    51  cle] title, shall be guilty of a class E felony.
    52    § 9. Sections 14-100 through 14-132 of article 14 of the election  law

    53  are  designated  title  1  and  a  new title heading is added to read as
    54  follows:
    55                     CAMPAIGN RECEIPTS AND EXPENDITURES

        S. 4009                             6
 
     1    § 10. Article 14 of the election law is amended by adding a new  title
     2  2 to read as follows:
     3                                  TITLE II
     4                              PUBLIC FINANCING
     5  Section 14-200. Definitions.
     6          14-202. Eligibility.
     7          14-204. Qualified campaign expenditures.
     8          14-206. Optional public financing.
     9          14-208. Contribution and receipt limitations.
    10          14-210. Limitations on the receipt of public funds.
    11          14-212. Examinations and audits; repayments.

    12          14-214. Civil penalties.
    13          14-216. Debates.
    14    §  14-200.  Definitions. As used in this title, unless another meaning
    15  is clearly indicated:
    16    1. The term "state board" shall mean the state board of elections.
    17    2. The term "eligible candidate" shall mean a candidate for nomination
    18  or election to any of the  offices  of  governor,  lieutenant  governor,
    19  comptroller, attorney general, member of the state legislature, at-large
    20  delegate  to  a  constitutional  convention  or  district  delegate to a
    21  constitutional convention.
    22    3. The term "participating committee" shall mean  a  single  political
    23  committee  which a candidate certifies is the committee that will solely

    24  be used to participate in the public  financing  system  established  by
    25  this title after January first of the year in which the primary, general
    26  or  special election is held for the public office sought.  A multi-can-
    27  didate committee may not be a participating committee.
    28    4. The term "participating candidate" shall mean a  candidate  who  is
    29  eligible  to  participate in the optional public financing system estab-
    30  lished by this title, has met the  threshold  for  eligibility  and  has
    31  elected to participate in the public financing system.
    32    5.  The  term "matchable contributions" shall mean that portion of the
    33  aggregate contributions made (a) in the case of  a  primary  or  general

    34  election, after January first of the year in which the primary or gener-
    35  al election is held for the public office sought or (b) in the case of a
    36  special  election, within six months of such election by natural persons
    37  resident in the state of New York  to  a  candidate  for  nomination  or
    38  election  to  any of the offices covered by the provisions of this title
    39  which do not exceed one hundred seventy-five dollars,  which  have  been
    40  reported in full by the candidate's participating committee to the state
    41  board,  including the contributor's full name and residential address. A
    42  loan may not be treated as a matchable contribution.
    43    The following contributions are not matchable:
    44    (i) in-kind contributions of property, goods, or services;

    45    (ii) contributions in the form of the purchase price paid for an  item
    46  with significant intrinsic and enduring value;
    47    (iii)  contributions  in  the  form  of the purchase price paid for or
    48  otherwise induced by a chance to participate in a  raffle,  lottery,  or
    49  similar drawing for valuable prizes;
    50    (iv)  money  order contributions from any one contributor that are, in
    51  the aggregate, greater than one hundred dollars;
    52    (v) contributions from individuals under the age of eighteen years;
    53    (vi) contributions from individual vendors to whom  the  participating
    54  candidate  or  his  or  her principal committee makes an expenditure, in
    55  furtherance of the nomination for election or election  covered  by  the


        S. 4009                             7
 
     1  candidate's  certification,  unless  such  expenditure is reimbursing an
     2  advance; and
     3    (vii) contribution from lobbyists registered pursuant to article one-A
     4  of the legislative law.
     5    6. The term "qualified campaign expenditure" shall mean an expenditure
     6  for which public funds may be used.
     7    7.  The  term  "fund"  shall  mean the New York state campaign finance
     8  fund.
     9    8. The term "threshold for eligibility" shall mean the amount of total
    10  matchable contributions that the participating committee of an otherwise
    11  eligible candidate must receive, as required by section 14-202  of  this
    12  title,  in  order  to  qualify for optional public financing pursuant to

    13  this title.
    14    9. The term "contribution" shall have the same meaning as in  subdivi-
    15  sion nine of section 14-100 of this article.
    16    10.  The  term  "public  funding limit" shall mean the total amount of
    17  public funds that a participating candidate may receive for any  primary
    18  or general election.
    19    § 14-202. Eligibility. 1. To be eligible for optional public financing
    20  under this title, a candidate for nomination or election must:
    21    (a)  Meet all the requirements of this chapter and other provisions of
    22  law to have his or her name on the ballot;
    23    (b) Be a candidate for statewide  office,  the  state  legislature  or
    24  delegate to a constitutional convention at a primary, general or special

    25  election and meet the threshold for eligibility set forth in subdivision
    26  two of this section;
    27    (c) Elect to participate in the public financing system established by
    28  this  title  not later than seven days after the last day to file desig-
    29  nating petitions for the office such candidate is  seeking  or,  in  the
    30  case of a special election, not later than the last day to file nominat-
    31  ing certificates for such office;
    32    (d) Agree to obtain and furnish to the state board any evidence it may
    33  reasonably  request  relating  to  his  or  her campaign expenditures or
    34  contributions and furnish such other proof of compliance with this title
    35  as may be requested by the state board;

    36    (e) Have a single authorized  political  committee  which  he  or  she
    37  certifies as the participating committee for the purposes of this title;
    38  and
    39    (f)  Agree to identify accurately in all campaign materials the person
    40  or entity that paid for such campaign material.
    41    2.  The threshold for eligibility for public funding for candidates in
    42  a primary, general or special election for the following  offices  shall
    43  be:
    44    (a)  Governor  in  a  primary  or  general election. Not less than six
    45  hundred fifty thousand dollars from at least six thousand  five  hundred
    46  matchable  contributions  made  up  of  sums  of up to two hundred fifty
    47  dollars per individual contributor who resides in New York state.

    48    (b) Lieutenant governor in  a  primary  election  and  comptroller  or
    49  attorney  general  in  a  primary or general election. Not less than two
    50  hundred thousand dollars from at least two thousand  matchable  contrib-
    51  utions made up of sums of up to two hundred fifty dollars per individual
    52  contributor who resides in New York state.
    53    (c)  Members  of  the  state  senate  in a primary, general or special
    54  election. Not less than twenty-five thousand dollars from at  least  two
    55  hundred  fifty  matchable  contributions  made  up  of sums of up to two
    56  hundred fifty dollars per individual contributor who resides in New York

        S. 4009                             8
 

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

    11  general election. Not less than twenty thousand dollars  from  at  least
    12  two hundred matchable contributions made up of sums of up to two hundred
    13  fifty dollars per individual contributor who resides in New York state.
    14    (f)  District delegate to a constitutional convention in a primary  or
    15  general election. Not less than five  thousand  dollars  from  at  least
    16  fifty matchable contributions made up of sums of up to two hundred fifty
    17  dollars  per individual contributor who resides in the district in which
    18  the seat is to be filled.
    19    3. In order to be eligible  to  receive  public  funds  in  a  primary
    20  election  a  candidate must agree, that in the event such candidate is a
    21  candidate for such office in the general election  in  such  year,  that

    22  such candidate will be bound by the provisions of this title.
    23    4.  Candidates  who are contested in a primary election and who do not
    24  seek public funds shall not be eligible for public funds for the general
    25  election in that year. The provisions  of  this  subdivision  shall  not
    26  apply to candidates for the office of lieutenant governor.
    27    5. Candidates who are unopposed in a general or special election shall
    28  not be eligible to receive public funds.
    29    6.    No candidate for election to an office in a primary, general, or
    30  special election who has elected to participate in the public  financing
    31  system  shall be deemed opposed and receive public funds unless at least
    32  one other candidate for such office in such election has also  qualified

    33  for the ballot.
    34    §  14-204.  Qualified  campaign expenditures. 1. Public funds provided
    35  under the provisions of this title may only be used for expenditures  by
    36  the participating committee authorized by the candidate to make expendi-
    37  tures  on such candidate's behalf, to further the candidate's nomination
    38  or election after January first of the year  in  which  the  primary  or
    39  general election is held for the office sought, for services, materials,
    40  facilities  or other things of value used during that campaign cycle or,
    41  in the case of a special election, for expenditures  during  the  period
    42  commencing  three  months before and ending one month after such special
    43  election.
    44    2. Such public funds may not be used for:

    45    (a) An expenditure in violation of any law of the United States or  of
    46  this state;
    47    (b)  Payments  for anything of value given or made to the candidate, a
    48  relative of the candidate, or to a business entity  in  which  any  such
    49  person  has  a ten percent or greater ownership interest or of which any
    50  such person is an officer, director or employee, in excess of  the  fair
    51  market  value of the services, materials, facilities, or other things of
    52  value received in exchange;
    53    (c) Payment in excess of the fair market value of services, materials,
    54  facilities or other things of value received in exchange;
    55    (d) Any expenditure made after the  participating  candidate,  or  the

    56  only  remaining opponent of such candidate, has been disqualified or had

        S. 4009                             9
 
     1  such candidate's petitions declared invalid by a board of elections or a
     2  court of  competent  jurisdiction  until  and  unless  such  finding  is
     3  reversed by a higher authority.
     4    (e)  Any expenditure made to challenge the validity of any petition of
     5  designation or nomination or any certificate of nomination,  acceptance,
     6  authorization, declination or substitution;
     7    (f)  Expenditure for noncampaign related food, drink or entertainment;
     8  and
     9    (g) Gifts, except brochures, buttons, signs and other campaign materi-
    10  al.

    11    § 14-206. Optional public financing. 1. Participating  candidates  for
    12  nomination  or  election  in  primary, general and special elections may
    13  obtain payment to a participating committee from public funds for quali-
    14  fied campaign expenditures. No such public funds  shall  be  paid  to  a
    15  participating  committee  until the candidate has qualified to appear on
    16  the ballot and filed a sworn statement with the state board electing  to
    17  participate  in  the  optional  public  financing system and agreeing to
    18  abide by the requirements of this title.  Payments shall not exceed  the
    19  amounts  specified  in  this title, and shall be made only in accordance
    20  with the provisions of this title. Such payments may only be made  to  a

    21  participating candidate's participating committee. No public funds shall
    22  be  used  except  as  reimbursement  or  payment  for qualified campaign
    23  expenditures actually and lawfully incurred or to repay  loans  used  to
    24  pay qualified campaign expenditures.
    25    2.  The  participating committee of each participating candidate shall
    26  be entitled to six dollars in public funds for each one dollar of match-
    27  able contributions obtained and reported to the state board  in  accord-
    28  ance  with  the provisions of this title, provided, however, such public
    29  funds shall only be used for qualified campaign expenditures.
    30    3. (a) No participating candidate for nomination for an office who  is
    31  unopposed  in  a  primary election shall be entitled to payment from the

    32  fund for qualified campaign expenditures.
    33    (b) Where there is a contest in such primary for the nomination of  at
    34  least one other party for such office, the participating committee of an
    35  unopposed  participating candidate for nomination may raise and spend an
    36  amount equal to one-half the expenditure limit for such office, as fixed
    37  by this title for candidates who have elected to  accept  public  funds,
    38  with  contributions of up to two thousand dollars per contributor.  Such
    39  payment can only be expended for property, services or  facilities  used
    40  on or before the date of such primary election.
    41    4. The state board shall promptly examine all reports of contributions
    42  to  determine  whether they meet the requirements for matchable contrib-

    43  utions, and shall keep a record of such contributions.
    44    5. The state board shall promulgate regulations for the  certification
    45  of  the amount of funds payable by the comptroller, from the fund estab-
    46  lished pursuant to section ninety-two-t of the state finance law,  to  a
    47  participating  candidate  that  has  qualified  to receive such payment.
    48  These regulations shall include the  promulgation  and  distribution  of
    49  forms  on  which  contributions and expenditures are to be reported, the
    50  periods during which such reports must be  filed  and  the  verification
    51  required.  The  state  board  shall institute procedures which will make
    52  possible payment by the fund within four business days after receipt  of
    53  the required forms and verifications.

    54    §  14-208.  Contribution  and receipt limitations. 1.  In any primary,
    55  special or general election for any statewide office, state  legislative
    56  office  or  constitutional convention delegate no contributor may make a

        S. 4009                            10
 
     1  contribution to any participating candidate or such candidate's  partic-
     2  ipating  committee,  and  no  participating  candidate  or participating
     3  committee may accept any contribution from any contributor which, in the
     4  aggregate amount, is greater than two thousand dollars.
     5    2.  (a) Notwithstanding the expenditure limit for such office as fixed
     6  by this title for candidates who have elected to accept public funds,  a

     7  participating candidate for governor or lieutenant governor in a primary
     8  or  general  election  or  such  candidate's participating committee may
     9  accept from a state party committee which has nominated  such  candidate
    10  services  in  an  amount  which,  in  the aggregate, does not exceed two
    11  million five hundred thousand dollars; provided, however,  that  twenty-
    12  five percent of such amount may be accepted in the form of a transfer.
    13    (b)  Notwithstanding the expenditure limit for such office as fixed by
    14  this title for candidates who have elected to  accept  public  funds,  a
    15  participating candidate for attorney general or comptroller in a primary
    16  or  general  election  or  such  candidate's participating committee may

    17  accept from a state party committee which has nominated  such  candidate
    18  services  in  an  amount  which,  in  the aggregate, does not exceed one
    19  million dollars; provided, however, that  twenty-five  percent  of  such
    20  amount may be accepted in the form of a transfer.
    21    (c)  Notwithstanding the expenditure limit for such office as fixed by
    22  this title for candidates who have elected to  accept  public  funds,  a
    23  participating  candidate  for  state  senator  in  a primary, general or
    24  special election or such candidate's participating committee may  accept
    25  from  a  state  party  committee  which  has  nominated  such candidate,
    26  services in an amount which, in  the  aggregate,  does  not  exceed  one

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

    37    (e)  Notwithstanding the expenditure limit for such office as fixed by
    38  this title for candidates who have elected to  accept  public  funds,  a
    39  participating  candidate  for  delegate  at-large  to  a  constitutional
    40  convention in a  general  election  or  such  candidate's  participating
    41  committee  may  accept  from a state party committee which has nominated
    42  such candidate services in an amount which, in the aggregate,  does  not
    43  exceed  fifty  thousand  dollars;  provided,  however,  that twenty-five
    44  percent of such amount may be accepted in the form of a transfer.
    45    (f) Notwithstanding the expenditure limit for such office as fixed  by
    46  this  title  for  candidates  who have elected to accept public funds, a

    47  participating  candidate  for  district  delegate  to  a  constitutional
    48  convention  in  a  general  election  or  such candidate's participating
    49  committee may accept from a state party committee  which  has  nominated
    50  such  candidate, services in an amount which, in the aggregate, does not
    51  exceed ten thousand dollars; provided, however, that twenty-five percent
    52  of such amount may be accepted in the form of a transfer.
    53    (g) For purposes of this subdivision, the term state  party  committee
    54  includes any of its subcommittees.
    55    3.  Notwithstanding  any  expenditure  limit in this subdivision, each
    56  county committee of any party which nominates a candidate for  statewide

        S. 4009                            11
 

     1  office  or  state  legislative  office, including within the term county
     2  committee any of its subcommittees, may expend in support of  each  such
     3  candidate  for  statewide  office of such party who has agreed to accept
     4  public  financing, an amount which shall not exceed the sum of two cents
     5  for each voter registered in such county as determined by the records of
     6  the appropriate board of elections as of the preceding general election.
     7    4. In computing the aggregate amount expended  for  purposes  of  this
     8  section,  expenditures  made  by  a  state  party  committee or a county
     9  committee in support of more than one candidate shall be allocated among
    10  such candidates supported by the committee in accordance  with  formulas

    11  promulgated  by  the  state  board  or,  in the absence of such official
    12  formulas, in accordance with a formula based upon reasonable  standards.
    13  The  statements  filed  by  such party committee in accordance with this
    14  chapter shall set forth, in addition to the other information  required,
    15  the  total  amount expended by the party committee on behalf of all such
    16  candidates and the amount allocated to each candidate by  dollar  amount
    17  and  percentage.    Expenditures  by a party for activities which do not
    18  support or oppose the election of any candidate or candidates by name or
    19  by clear inference shall not be regarded as expenditures on behalf of or
    20  in opposition to a candidate.

    21    5. A participating candidate for a  public  office  for  which  public
    22  funds are available pursuant to this title shall not accept any contrib-
    23  utions  any earlier than one day after the previous general election for
    24  the office which such candidate is seeking, or any later than the day of
    25  the general election for the office sought, except that a  participating
    26  candidate  or  participating committee which has a deficit on the day of
    27  the general election may, after such date, accept contributions which do
    28  not exceed the amount of such deficit and the expenses incurred in rais-
    29  ing such contributions.  Contributions to a participating  candidate  or
    30  participating  committee which were received before January first of the

    31  year in which the primary or general election is  held  for  the  public
    32  office  sought  or, in the case of a special election received more than
    33  six months before the special election,  may  not  be  expended  in  any
    34  election for any such office.
    35    6.  Except for the limitations specifically set forth in this section,
    36  participating candidates shall be subject  to  the  provisions  of  this
    37  article.
    38    §  14-210.  Limitations  on the receipt of public funds. The following
    39  expenditure limitations apply to the receipt of public funds by  partic-
    40  ipating  candidates  and  their  participating committees receiving such
    41  public funds pursuant to the provisions of this title:

    42    1. (a) in any primary election, receipt of public funds by participat-
    43  ing candidates and by their participating committees shall not exceed:
    44    (i) for governor, the sum of one dollar and ten cents for  each  voter
    45  enrolled  in the candidate's party in the state; provided, however, such
    46  sum shall not be less than nine hundred thousand dollars nor  more  than
    47  nine million dollars;
    48    (ii) for lieutenant governor, comptroller or attorney general, the sum
    49  of  one  dollar and ten cents for each voter enrolled in the candidate's
    50  party in the state; provided, however, such sum shall not be  less  than
    51  six hundred thousand dollars nor more than six million dollars;
    52    (iii)  for  senator,  the  sum of two dollars and fifty cents for each

    53  voter  enrolled  in  the  candidate's  party  in  the  senate  district;
    54  provided,  however, such sum shall not be less than thirty-five thousand
    55  dollars nor more than three hundred fifty thousand dollars;

        S. 4009                            12
 
     1    (iv) for member of the assembly, the sum  of  two  dollars  and  fifty
     2  cents  for  each voter enrolled in the candidate's party in the assembly
     3  district; provided, however, such sum shall not  be  less  than  fifteen
     4  thousand dollars nor more than one hundred fifty thousand dollars;
     5    (v)  for  at-large delegate to a constitutional convention, the sum of
     6  fifteen cents for each voter enrolled in the candidate's  party  in  the

     7  state;  provided,  however, such sum shall not be less than seventy-five
     8  thousand  dollars  nor  more  than  one  hundred  seventy-five  thousand
     9  dollars;
    10    (vi) for district delegates to a constitutional convention, the sum of
    11  one  dollar  and  ten  cents  for each voter enrolled in the candidate's
    12  party in the district; provided, however, such sum  shall  not  be  less
    13  than five thousand dollars nor more than fifty thousand dollars;
    14    (b)  the enrollment numbers used to calculate the public funds receipt
    15  limits provided for in this subdivision shall be  the  enrollments  duly
    16  reported  by  the  appropriate  board  or  boards as of the last general
    17  election preceding the primary election.

    18    2. In any general or special election,  receipt  of  public  funds  by
    19  participating  candidates for the following offices and by their partic-
    20  ipating committees shall not exceed the following amounts:
    21  Candidates for election to the office of:
    22  Governor and Lieutenant Governor             $12,000,000
    23   (combined)
    24  Attorney General                             $8,000,000
    25  Comptroller                                  $8,000,000
    26  Member of Senate                             $350,000
    27  Member of Assembly                           $150,000
    28  Delegate At-Large to a Constitutional        $350,000
    29   Convention

    30  District Delegate to a Constitutional        $75,000
    31   Convention
    32    3. Participating candidates for office who are unopposed in the prima-
    33  ry election may receive public funds before the  primary  election,  for
    34  services,  materials  or  facilities  used on or before the date of such
    35  primary election, an amount equal to half the sum such candidates  would
    36  be entitled to receive if their nomination was contested in such primary
    37  election  provided  there  is a primary contest for the nomination of at
    38  least one other party for such office.
    39    4. Nothing in this section shall be construed to limit the  amount  of
    40  private  funds  a  participating  candidate  may  receive subject to the

    41  contribution limits contained in section 14-208 of this title.
    42    5. Expenditures for legal fees and reasonable expenses to  defend  the
    43  validity  of  petitions  of designation or nomination or certificates of
    44  nomination, acceptance, authorization, declination or  substitution,  or
    45  to successfully challenge any such petition or certificate on grounds of
    46  fraud,  or  for  expenses  incurred  to comply with the campaign finance
    47  reporting requirements of this article, shall  not  be  subject  to  the
    48  expenditure limits of this subdivision.
    49    § 14-212. Examinations and audits; repayments. 1. The enforcement unit
    50  of the state board shall conduct a thorough examination and audit of the

    51  contributions  and  qualified  campaign  expenses  of  the participating
    52  committee of every participating candidate who received payments  pursu-
    53  ant to section 14-206 of this title.
    54    2.  (a)  If the state board determines that any portion of the payment
    55  made to a participating committee from the fund was  in  excess  of  the
    56  aggregate  amount of payments to which such eligible candidate was enti-

        S. 4009                            13
 
     1  tled pursuant to section 14-206 of this  title,  it  shall  notify  such
     2  committee of the excess amount and such committee shall pay to the state
     3  board an amount equal to the amount of excess payments.
     4    (b) If the state board determines that any amount of payment made to a

     5  participating  committee  from the fund was used for purposes other than
     6  to defray qualified campaign expenses, it shall notify such  participat-
     7  ing  committee of the amount disqualified and such participating commit-
     8  tee shall pay to the state board an amount equal  to  such  disqualified
     9  amount.
    10    (c)  If the total of contributions and payments from the fund received
    11  by  any  participating  candidate  and  such  candidate's  participating
    12  committee,  exceeds  the  campaign  expenditures  of  such candidate and
    13  committee, such candidate and committee shall use such excess  funds  to
    14  reimburse the fund for payments received by such committee from the fund
    15  not later than ten days after all permissible liabilities have been paid

    16  and  in any event, not later than March thirty-first of the year follow-
    17  ing the year of the election for which such payments were  intended.  No
    18  such excess funds shall be used for any other purpose.
    19    3. If a court of competent jurisdiction disqualifies a candidate whose
    20  participating  committee  has  received public funds on the grounds that
    21  such candidate committed fraudulent acts in order to obtain a  place  on
    22  the  ballot  and  such  decision is not reversed by a higher court, such
    23  candidate and such candidate's participating committee shall pay to  the
    24  state  board  an  amount  equal to the total of public funds received by
    25  such participating committee.
    26    4. The state board must provide written notice  of  all  payments  due

    27  from  a  participating  candidate  or  such candidate's committee to the
    28  state board and provide an opportunity for the candidate or committee to
    29  rebut, in whole or in part, the alleged amount due. Upon a final written
    30  determination by the state board, the amount due shall be  paid  to  the
    31  state board within thirty days of such determination.
    32    5.  All  payments received by the state board pursuant to this section
    33  shall be deposited in the New York state campaign  finance  fund  estab-
    34  lished by section ninety-two-t of the state finance law.
    35    § 14-214. Civil penalties. 1. Any person who fails to file a statement
    36  or record required to be filed by this title or the rules or regulations

    37  of the state board in implementation thereof shall be subject to a civil
    38  penalty,  not in excess of five thousand dollars, to be recoverable in a
    39  special proceeding or civil action brought by the state board.
    40    2. All payments received by the state board pursuant to  this  section
    41  shall  be  deposited  in the New York state campaign finance fund estab-
    42  lished by section ninety-two-t of the state finance law.
    43    § 14-216. Debates. The state board  shall  promulgate  regulations  to
    44  facilitate  debates among participating candidates. Participating candi-
    45  dates are required to participate in at  least  one  debate  before  the
    46  primary  election and in at least one debate before the general election

    47  for which the candidate receives public funds, unless the  participating
    48  candidate  is  running  unopposed. A nonparticipating candidate may be a
    49  party to such debates.
    50    § 11. The election law is amended by adding a new  section  16-103  to
    51  read as follows:
    52    §  16-103. Proceedings as to public financing. 1. The determination of
    53  eligibility pursuant to section 14-202 of this chapter and any  question
    54  or issue relating to payments for qualified campaign expenditures pursu-
    55  ant  to  section 14-206 of this chapter may be contested in a proceeding

        S. 4009                            14
 
     1  instituted in the Supreme Court, Albany county, by any aggrieved  candi-
     2  date.

     3    2. A proceeding with respect to such a determination of eligibility or
     4  payment  for  qualified campaign expenditures pursuant to section 14-206
     5  of this chapter shall be instituted within seven days after such  deter-
     6  mination  was  made.  The  state board shall be made a party to any such
     7  proceeding.
     8    3. Upon the state board's failure to receive the  amount  due  from  a
     9  participating candidate or such candidate's committee after the issuance
    10  of written notice of such amount due, as required by subdivision four of
    11  section  14-212 of this chapter, the state board is authorized to insti-
    12  tute a special proceeding or civil action in Supreme Court, Albany coun-
    13  ty, to obtain a judgment for any amounts determined to be payable to the

    14  state board as a result of an examination and  audit  made  pursuant  to
    15  title II of article fourteen of this chapter.
    16    4.  The state board is authorized to institute a special proceeding or
    17  civil action in Supreme Court, Albany county, to obtain a  judgment  for
    18  civil  penalties determined to be payable to the state board pursuant to
    19  section 14-214 of this chapter.
    20    § 12. The election law is amended by adding a  new  section  4-115  to
    21  read as follows:
    22    §  4-115. Notice to the state board of elections of candidates for the
    23  legislature. 1. Each board of elections with which petitions  are  filed
    24  for member of the state legislature shall, not later than one week after
    25  the  last  day to file such petitions, send notice to the state board of

    26  elections of such information about each  such  petition  as  the  state
    27  board of elections shall require.
    28    2.  Each  such county board of elections shall, not later than the day
    29  after the last day to file a petition or certificate of nomination for a
    30  general or special election or a certificate of acceptance,  declination
    31  or  substitution for a general, primary or special election for any such
    32  office, send to the state board of elections such information about each
    33  such petition or certificate as  the  state  board  of  elections  shall
    34  require.
    35    3.  If  any  such county board of elections should disqualify any such
    36  candidate or rule the petition or certificate designating or  nominating

    37  any such candidate invalid, it shall forthwith notify the state board of
    38  elections of such decision.
    39    4.  If any such county board of elections shall be notified of a deci-
    40  sion of a court of competent jurisdiction disqualifying any such  candi-
    41  date  or declaring any such petition invalid or reversing any such deci-
    42  sion by such  board  of  elections  or  another  court,  such  board  of
    43  elections  shall  forthwith  notify the state board of elections of such
    44  decision.
    45    5. The state board of elections may prescribe forms  for  the  notices
    46  required  by  this  section and shall prescribe the manner in which such
    47  notices shall be given.
    48    § 13. The state finance law is amended by adding a new section 92-t to
    49  read as follows:

    50    § 92-t. New York state campaign finance fund.  1.    There  is  hereby
    51  established  in  the  joint  custody  of  the  state comptroller and the
    52  commissioner of taxation and finance a fund to be known as the New  York
    53  state campaign finance fund.
    54    2.  Such fund shall consist of all revenues received from the New York
    55  state campaign finance fund check-off  pursuant  to  subsection  (f)  of
    56  section  six  hundred fifty-eight of the tax law, from the general fund,

        S. 4009                            15
 
     1  and from all other moneys credited or transferred thereto from any other
     2  fund or source pursuant to law.
     3    3. Moneys of the fund, following appropriation by the legislature, may

     4  be  expended  for the purposes of making payments to candidates pursuant
     5  to title II of article fourteen of the election  law.  Moneys  shall  be
     6  paid  out  of the fund on the audit and warrant of the state comptroller
     7  on vouchers certified or approved by the state board  of  elections,  or
     8  its duly designated representative, in the manner prescribed by law, not
     9  more  than four working days after such voucher is received by the state
    10  comptroller.
    11    4. Notwithstanding any provision of law to the contrary,  if,  in  any
    12  state  fiscal  year, the state campaign finance fund lacks the amount of
    13  money to pay all claims vouchered by eligible candidates  and  certified
    14  or  approved  by the state board of elections, any such deficiency shall

    15  be paid, upon audit and warrant of the  state  comptroller,  from  funds
    16  deposited  in  the  general fund of the state not more than four working
    17  days after such voucher is received by the state comptroller.
    18    5. Commencing in two thousand eighteen, if the surplus in the fund  on
    19  April  first  of  the  year  after a year in which a governor is elected
    20  exceeds twenty-five percent of the disbursements from the fund over  the
    21  previous  four years, the excess shall revert to the general fund of the
    22  state.
    23    6. No public funds shall be paid to any participating candidates in  a
    24  primary  election any earlier than the day that such candidate is certi-
    25  fied as being on the ballot for such primary election.

    26    7. No public funds shall be paid to any participating candidates in  a
    27  general  election  any earlier than the day after the day of the primary
    28  election held to nominate candidates for such election.
    29    8. No public funds shall be paid to any participating candidates in  a
    30  special  election  any  earlier  than the day after the last day to file
    31  certificates of party nomination for such special election.
    32    9. No public funds shall be paid to any  participating  candidate  who
    33  has  been disqualified or whose designating petitions have been declared
    34  invalid by the appropriate board of elections or a  court  of  competent
    35  jurisdiction  until  and  unless  such  finding  is reversed by a higher

    36  authority. No payment from the fund in the possession of such  a  candi-
    37  date  or  such  candidate's  participating committee on the date of such
    38  disqualification or invalidation may  thereafter  be  expended  for  any
    39  purpose except the payment of liabilities incurred before such date. All
    40  such moneys shall be repaid to the fund.
    41    § 14. Section 658 of the tax law is amended by adding a new subsection
    42  (f) to read as follows:
    43    (f)  New  York  state  campaign finance fund check-off.   (1) For each
    44  taxable year beginning on and after January first,  two  thousand  thir-
    45  teen, every individual whose New York state income tax liability for the
    46  taxable  year  for which the return is filed is five dollars or more may

    47  designate on such return that five dollars be paid  into  the  New  York
    48  state  campaign  finance fund established by section ninety-two-t of the
    49  state finance law.  Where a husband and wife file  a  joint  return  and
    50  have  a  New  York  state  income tax liability for the taxable year for
    51  which the return is filed of ten  dollars  or  more,  or  file  separate
    52  returns  on  a  single form, each such taxpayer may make separate desig-
    53  nations on such return of five dollars to be  paid  into  the  New  York
    54  state campaign finance fund.
    55    (2)  The  commissioner  shall  transfer to the New York state campaign
    56  finance fund, established pursuant to section ninety-two-t of the  state

        S. 4009                            16
 

     1  finance law, an amount equal to five dollars multiplied by the number of
     2  designations.
     3    (3)  For  purposes  of this subsection, the income tax liability of an
     4  individual for any taxable year is the amount of tax imposed under  this
     5  article  reduced  by  the  sum  of  the  credits (as shown in his or her
     6  return) allowable under this article.
     7    (4) The department shall include a place on every personal income  tax
     8  return  form to be filed by an individual for a tax year beginning on or
     9  after January  first,  two  thousand  thirteen,  immediately  above  the
    10  certification  under  which  the taxpayer is required to sign such form,
    11  for such taxpayer to make the designations described in paragraph one of

    12  this subsection. Such return form shall contain a concise explanation of
    13  the purpose of such optional designations.
    14    § 15. Campaign finance review panel. 1. There is  hereby  created  and
    15  established the "campaign finance review panel". The panel shall consist
    16  of  the  commissioner of taxation and finance, the director of the divi-
    17  sion of the budget, the state comptroller and the  two  members  of  the
    18  state  board  of  elections  who rotate as chairperson of the board. The
    19  commissioner of taxation and finance shall be chairperson.
    20    2. The panel is empowered and it shall be  its  duty  to  monitor  and
    21  review  the  implementation of the 2012 Campaign Finance Reform Act. The
    22  panel shall report to the governor and the legislature on March 31, 2014
    23  and on March 31, 2016 and on March 31 of every  other  year  thereafter.

    24  The  report  shall  include: (a) the number of candidates qualifying and
    25  opting for public financing, the amounts expended for  this  purpose  in
    26  the  preceding  fiscal year and a projection of the number of candidates
    27  likely to qualify and opt for public financing and their expenditures in
    28  future elections; (b) an analysis of the effect  of  the  2012  Campaign
    29  Finance  Reform  Act on political campaigns, including its effect on the
    30  sources and amounts of private financing, the level of campaign expendi-
    31  tures, voter participation, the number of candidates and the candidate's
    32  ability to campaign effectively for public office; (c) a review  of  the
    33  procedures  utilized  in  providing  public funds to candidates; and (d)
    34  such recommended changes in the 2012 Campaign Finance Reform Act  as  it
    35  deems appropriate.

    36    §  16.  Subdivision 9 of section 14-100 of the election law is amended
    37  by adding a new paragraph 4 to read as follows:
    38    (4) the term "contribution" does not include expenditures  by  a  bona
    39  fide  membership  organization in support of the following activities by
    40  members of the organization who are volunteering their time on behalf of
    41  a candidate, not to exceed twenty-five dollars  per  member  who  volun-
    42  teers,  for:  transportation  of  volunteers to and from campaign activ-
    43  ities; cost of feeding volunteers while volunteering for  the  campaign;
    44  and  materials  such  as badges and clothing that identifies the name of
    45  the organization and/or candidate.
    46    § 17. Paragraphs a and b of subdivision 1 of  section  14-114  of  the

    47  election law, as amended by chapter 659 of the laws of 1994, are amended
    48  to read as follows:
    49    a. In any election for a public office to be voted on by the voters of
    50  the  entire  state, or for nomination to any such office, no contributor
    51  may make a contribution to any candidate or political committee, and  no
    52  candidate  or  political  committee may accept any contribution from any
    53  contributor, which is in the aggregate amount greater than:  (i) in  the
    54  case of any nomination to public office, the product of the total number
    55  of  enrolled  voters  in  the  candidate's party in the state, excluding
    56  voters in inactive status, multiplied by $.005, but such amount shall be

        S. 4009                            17
 
     1  not [less] more than [four] two thousand dollars [nor more  than  twelve

     2  thousand  dollars]  as  increased  or  decreased  by  the cost of living
     3  adjustment described in paragraph c of this subdivision, and (ii) in the
     4  case  of  any  election  to  a public office, [twenty-five] two thousand
     5  dollars as increased or decreased  by  the  cost  of  living  adjustment
     6  described in paragraph c of this subdivision; provided however, that the
     7  maximum  amount  which  may be so contributed or accepted, in the aggre-
     8  gate, from any  candidate's  child,  parent,  grandparent,  brother  and
     9  sister, and the spouse of any such persons, shall not exceed in the case
    10  of  any  nomination to public office an amount equivalent to the product
    11  of the number of enrolled voters in the candidate's party in the  state,
    12  excluding  voters  in  inactive  status, multiplied by $.025, and in the

    13  case of any election for a public office, an amount  equivalent  to  the
    14  product of the number of registered voters in the state excluding voters
    15  in inactive status, multiplied by $.025.
    16    b.  In  any  other  election  for  party position or for election to a
    17  public office or for nomination for any such office, no contributor  may
    18  make  a  contribution  to  any  candidate  or political committee and no
    19  candidate or political committee may accept any  contribution  from  any
    20  contributor,  which  is in the aggregate amount greater than: (i) in the
    21  case of any election for party position, or  for  nomination  to  public
    22  office, the product of the total number of enrolled voters in the candi-
    23  date's  party in the district in which he or she is a candidate, exclud-
    24  ing voters in inactive status, multiplied by $.05, and (ii) in the  case

    25  of  any election for a public office, the product of the total number of
    26  registered voters in the district, excluding voters in inactive  status,
    27  multiplied  by $.05, however in the case of a nomination within the city
    28  of New York for the office of mayor,  public  advocate  or  comptroller,
    29  such  amount  shall  be not [less] more than [four] two thousand dollars
    30  [nor more than twelve thousand dollars] as increased or decreased by the
    31  cost of living adjustment described in paragraph c of this  subdivision;
    32  in the case of an election within the city of New York for the office of
    33  mayor,  public  advocate  or  comptroller,  [twenty-five]  two  thousand
    34  dollars as increased or decreased  by  the  cost  of  living  adjustment
    35  described  in  paragraph  c  of this subdivision; in the case of a nomi-

    36  nation for state senator, [four] two thousand dollars  as  increased  or
    37  decreased  by  the cost of living adjustment described in paragraph c of
    38  this subdivision; in the case of an election for  state  senator,  [six]
    39  two  thousand  [two  hundred fifty] dollars as increased or decreased by
    40  the cost of living adjustment described in paragraph c of this  subdivi-
    41  sion;  in  the  case  of  an  election or nomination for a member of the
    42  assembly, [twenty-five hundred] two thousand  dollars  as  increased  or
    43  decreased  by  the cost of living adjustment described in paragraph c of
    44  this subdivision; [but in no event shall any such maximum  exceed  fifty
    45  thousand  dollars or be less than one thousand dollars;] provided howev-

    46  er, that the maximum amount which may be so contributed or accepted,  in
    47  the  aggregate, from any candidate's child, parent, grandparent, brother
    48  and sister, and the spouse of any such persons, shall not exceed in  the
    49  case  of any election for party position or nomination for public office
    50  an amount equivalent to the number of enrolled voters in the candidate's
    51  party in the district in which he  or  she  is  a  candidate,  excluding
    52  voters  in  inactive  status,  multiplied by $.25 and in the case of any
    53  election to public office, an amount equivalent to the number of  regis-
    54  tered  voters  in  the  district,  excluding  voters in inactive status,
    55  multiplied by $.25; or twelve hundred fifty dollars, whichever is great-
    56  er, or in the case of a nomination or election of a state senator, twen-

        S. 4009                            18
 

     1  ty thousand dollars, whichever is greater, or in the  case  of  a  nomi-
     2  nation  or  election  of  a member of the assembly, twelve thousand five
     3  hundred dollars, whichever is greater, but in no event  shall  any  such
     4  maximum exceed one hundred thousand dollars.
     5    §  18.  Section 14-130 of the election law, as added by chapter 152 of
     6  the laws of 1985, is amended to read as follows:
     7    § 14-130. Campaign funds for personal use. 1.  Contributions  received
     8  by  a  candidate  or a political committee may only be expended for [any
     9  lawful purpose. Such funds shall not be converted by  any  person  to  a
    10  personal  use  which is unrelated to a political campaign or the holding
    11  of a public office  or  party  position]  bona  fide  purposes  directly

    12  related to either:
    13    a. promoting the nomination or election of a candidate; or
    14    b.  performing  those  duties of public office or party position which
    15  are not paid for or eligible for reimbursement by the state or any poli-
    16  tical subdivision or private party.
    17    2. Permissible ordinary and necessary expenses relating to the holding
    18  of public office or party position shall include:
    19    a. production and circulation of flyers  or  other  written  materials
    20  related  to  duties  of officeholder; the placement of holiday greetings
    21  and congratulatory ads and memorial notices in local  newspapers,  maga-
    22  zines, journals or other publication;
    23    b.  sponsorship or hosting of community meetings; tickets or donations

    24  to local charitable, non-profit or political  events,  organizations  or
    25  activities  that  promote  the  welfare  of  constituents  or  political
    26  campaigns;
    27    c. incidental expenditures for the operation of  legislative  offices,
    28  including  purchase of items such as memorial or get-well gifts, flowers
    29  or similar items of nominal value for constituents or others;
    30    d. membership in organizations related to official duties and costs of
    31  attending  informational  meetings  attended  in  connection  with  such
    32  duties; and
    33    e. travel related to duties of office, provided that the travel is not
    34  undertaken  for any purpose resulting in a personal or financial benefit

    35  to the candidate or officeholder. If such expenses involve both personal
    36  activity and campaign or official activities, the  incremental  expenses
    37  associated  with  the  personal  activities are personal uses unless the
    38  campaign is reimbursed for such sums  from  other  than  campaign  funds
    39  within thirty days of the expenditure.
    40    Nothing  in  this  section  shall prohibit a candidate from purchasing
    41  office equipment with personal funds and leasing or renting such  equip-
    42  ment  or  property  to  a  committee  working with or for the candidate,
    43  provided the candidate or the campaign treasurer sign a written lease or
    44  rental agreement and files it with  the  appropriate  required  campaign

    45  financial  filing  which  shall  include the lease or rental price which
    46  shall not exceed the fair lease or rental value of the equipment  or  in
    47  the aggregate exceed the cost of its purchase.
    48    3.  Campaign funds shall not be converted to personal use, which shall
    49  be defined as expenditures that:
    50    a. are for the personal benefit of or to defray normal living expenses
    51  of the candidate, officeholder, immediate family or partner of either or
    52  any other person;
    53    b. are used to fulfill any commitment,  obligation,  or  expense  that
    54  would  exist  irrespective  of  the candidate's campaign or duties as an
    55  officeholder; or

        S. 4009                            19
 

     1    c. are put to any use for which the candidate or officeholder would be
     2  required to treat the amount of the expenditure as  gross  income  under
     3  section 61 of the Internal Revenue Code.
     4    4.  Expenditures  for  personal  use  shall  also include, but are not
     5  limited to, expenditures for:
     6    a. residential or household  items,  supplies,  maintenance  or  other
     7  expenditures,  including mortgage, rent, utilities, repairs, or improve-
     8  ments for any part of any personal residence of a candidate  or  office-
     9  holder, his or her immediate family or partner;
    10    b.  rent  or utility payments that exceed fair market value for use of
    11  any part of any non-residential property owned  by  a  candidate,  or  a

    12  member of a candidate's family or partner used for campaign purposes;
    13    c.  salary  and  other  fees  for  bona fide services to a campaign or
    14  legislative office that exceed fair and reasonable market value of  such
    15  services;
    16    d.  interest  or  any  other  finance charges for monies loaned to the
    17  campaign by the candidate or the spouse or partner of such candidate;
    18    e. tuition payments;
    19    f. dues, fees, or gratuities at private clubs, recreational facilities
    20  or other nonpolitical organizations,  unless  connected  to  a  specific
    21  widely attended fundraising event that takes place on the organization's
    22  premises;
    23    g.  automobile  purchases  or long term leases; short term car rentals

    24  and cellular equipment and services not used  exclusively  for  campaign
    25  purposes or duties as an officeholder;
    26    h. admission to sporting events, concerts, theaters, or other forms of
    27  entertainment,  unless  part  of  a  specific  campaign  or officeholder
    28  related activity; and
    29    i. payment of any fines, fees, or penalties assessed pursuant to  this
    30  chapter.
    31    5. No campaign funds shall be used to pay attorney's fees or any costs
    32  of  defending against any civil or criminal investigation or prosecution
    33  for alleged violations of state or federal  law  alleged  to  have  been
    34  committed while holding public office or as a candidate for office where
    35  the  candidate  or  public or party official, members of their immediate

    36  families or partners or the campaign is the target of such investigation
    37  or prosecution unless such expenditure is  used  exclusively  for  costs
    38  related  to  civil or criminal actions for alleged violations related to
    39  activities promoting the nomination or election of a candidate.
    40    § 19. The election law is amended by adding a new  section  14-132  to
    41  read as follows:
    42    §  14-132.  Disposition of campaign funds. 1. An authorized continuing
    43  candidate committee must dispose of all funds and close within two years
    44  after the later of (a) the end of the individual's most recent  term  of
    45  office, or (b) the date of the election in which the individual last was
    46  a filed candidate.

    47    2.  Any  candidate or political committee required to dispose of funds
    48  pursuant to this section shall, at the option of the candidate,  or  the
    49  treasurer  of a political committee formed solely to promote the passage
    50  or defeat of a ballot proposal, dispose of such  funds  by  any  of  the
    51  following means, or any combination thereof:
    52    a.  returning,  pro  rata, to each contributor the funds that have not
    53  been spent or obligated;
    54    b. donating the funds to a charitable  organization  or  organizations
    55  that meet the qualifications of section 501(c)(3) of the Internal Reven-
    56  ue Code;

        S. 4009                            20
 
     1    c. donating the funds to the state university;

     2    d. donating the funds to the state's general fund;
     3    e.  transferring  the  funds to a political party committee registered
     4  with the state board of elections; or
     5    f. contributing the funds to a candidate or political  committee  such
     6  that this does not exceed the limits set forth in section 14-114 of this
     7  title.
     8    3. No candidate or political committee shall dispose of campaign funds
     9  by  making expenditures for personal use as defined in section 14-130 of
    10  this title.
    11    4. Upon the death of a candidate, former candidate or holder of  elec-
    12  tive  office,  who  received  campaign  contributions, all contributions
    13  shall be disposed of according to this section within twelve  months  of

    14  the death of the candidate.
    15    §  20. Subdivision 1 of section 14-102 of the election law, as amended
    16  by chapter 8 and redesignated by chapter 9  of  the  laws  of  1978,  is
    17  amended to read as follows:
    18    1.  The  treasurer of every political committee which, or any officer,
    19  member or agent of any  such  committee  who,  in  connection  with  any
    20  election,  receives  or  expends  any  money  or other valuable thing or
    21  incurs any liability to pay money or its equivalent  shall  file  state-
    22  ments  sworn,  or subscribed and bearing a form notice that false state-
    23  ments made therein are punishable as a class A misdemeanor  pursuant  to
    24  section  210.45 of the penal law, at the times prescribed by this [arti-
    25  cle] title setting forth all the  receipts,  contributions  to  and  the

    26  expenditures  by  and liabilities of the committee, and of its officers,
    27  members and agents in its behalf.  Such  statements  shall  include  the
    28  dollar  amount  of  any  receipt,  contribution or transfer, or the fair
    29  market value of any receipt, contribution or transfer,  which  is  other
    30  than  of  money,  the  name  and address of the transferor, contributor,
    31  intermediary, or person from whom received,  if  the  contributor  is  a
    32  lobbyist registered pursuant to article one-A of the legislative law and
    33  if  the  transferor, contributor, intermediary, or person is a political
    34  committee; the name of and the political unit represented by the commit-
    35  tee, the date of its receipt, the dollar amount  of  every  expenditure,
    36  the  name  and  address of the person to whom it was made or the name of

    37  and the political unit represented by the committee to which it was made
    38  and the date thereof, and  shall  state  clearly  the  purpose  of  such
    39  expenditure.    An  intermediary need not be reported for a contribution
    40  that was collected from a contributor in  connection  with  a  party  or
    41  other candidate-related event held at the residence of the person deliv-
    42  ering  the contribution, unless the expenses of such event at such resi-
    43  dence for such candidate exceed five hundred dollars  or  the  aggregate
    44  contributions  received  from that contributor at such event exceed five
    45  hundred dollars. Any statement reporting a loan shall have  attached  to
    46  it  a  copy  of the evidence of indebtedness. Expenditures in sums under
    47  fifty dollars need not be specifically accounted for by  separate  items

    48  in  said statements, and receipts and contributions aggregating not more
    49  than ninety-nine dollars, from any one contributor need not  be  specif-
    50  ically  accounted  for  by  separate  items in said statements, provided
    51  however, that such expenditures, receipts  and  contributions  shall  be
    52  subject  to  the  other  provisions  of section 14-118 of this [article]
    53  title.
    54    § 21. Subdivision 3 of section 3-100 of the election law,  as  amended
    55  by chapter 220 of the laws of 2005, is amended to read as follows:

        S. 4009                            21
 
     1    3.  The  commissioners  of  the state board of elections shall have no
     2  other public employment. The commissioners shall receive an annual sala-
     3  ry of twenty-five thousand dollars, within the  amounts  made  available

     4  therefor by appropriation. The board shall, for the purposes of sections
     5  seventy-three  and  seventy-four of the public officers law, be a "state
     6  agency", and such commissioners shall be "officers" of the  state  board
     7  of  elections for the purposes of such sections. Within the amounts made
     8  available by appropriation therefor, the state board of elections  shall
     9  appoint  two co-executive directors, [counsel] an enforcement counsel, a
    10  deputy enforcement counsel, who shall be a member of a  different  major
    11  political party than the enforcement counsel, a special counsel, a depu-
    12  ty special counsel, who shall be a member of a different major political
    13  party  than  the  special  counsel, a director of election operations, a
    14  deputy director of election operations, who  shall  be  a  member  of  a

    15  different  major  political  party  than  the director of election oper-
    16  ations, a director of public information, a deputy  director  of  public
    17  information,  who shall be a member of a different major political party
    18  than the director of public information and such other staff members  as
    19  are  necessary  in  the  exercise  of  its  functions, and may fix their
    20  compensation. [Anytime after the effective date of the  chapter  of  the
    21  laws  of  two  thousand  five  which  amended this subdivision, the] The
    22  commissioners or, in the case of a vacancy on the board, the commission-
    23  er of each of the major political parties shall appoint one co-executive
    24  director. Each co-executive director shall serve a term of  four  years.

    25  The  enforcement counsel and the special counsel shall each serve a term
    26  of four years and may only be removed for cause.   Any  time  after  the
    27  effective  date  of  the  chapter  of  the laws of two thousand thirteen
    28  amending this subdivision, the commissioners, or in the case of a vacan-
    29  cy on the board, the commissioner, of each of the same  major  political
    30  party  as the incumbent enforcement counsel, deputy enforcement counsel,
    31  special counsel, deputy special  counsel,  director  of  election  oper-
    32  ations,  deputy  director  of  election  operations,  director of public
    33  information and deputy director of  public  information,  shall  appoint
    34  such  counsels,  directors  and  deputies.  Any vacancy in the office of

    35  co-executive director, enforcement counsel, deputy enforcement  counsel,
    36  special  counsel,  deputy  special  counsel,  director of election oper-
    37  ations, deputy director  of  election  operations,  director  of  public
    38  information  and  deputy director of public information, shall be filled
    39  by the commissioners or, in the case of a  vacancy  on  the  board,  the
    40  commissioner of the same major political party as the vacating incumbent
    41  for the remaining period of the term of such vacating incumbent, for the
    42  remaining period of the term of such vacating incumbent.
    43    §  22. Subdivision 3, paragraph (c) of subdivision 9-A and subdivision
    44  17 of section 3-102 of the  election  law,  subdivisions  3  and  17  as
    45  amended  by  chapter 9 of the laws of 1978, paragraph (c) of subdivision

    46  9-A as added by chapter 430 of the laws of 1997 and  subdivision  17  as
    47  renumbered  by  chapter  23  of the laws of 2005, are amended to read as
    48  follows:
    49    3. conduct any investigation necessary to carry out the provisions  of
    50  this  chapter,  provided,  however,  that  the  state board of elections
    51  enforcement counsel, established pursuant to section 3-104 of this arti-
    52  cle, shall conduct any investigation necessary to enforce the provisions
    53  of article fourteen of this chapter on behalf of the board of elections;
    54    (c) establish [a] an educational and training program on all reporting
    55  requirements including but not limited to the electronic reporting proc-
    56  ess and make it easily and readily available to any  such  candidate  or


        S. 4009                            22
 
     1  committee and notify any such candidate or committee of the availability
     2  of the most recent campaign finance handbook;
     3    17.    hear  and  consider  the  recommendations of the state board of
     4  elections enforcement counsel regarding the enforcement of violations of
     5  article fourteen of this chapter;
     6    18. perform such other acts as may  be  necessary  to  carry  out  the
     7  purposes of this chapter.
     8    § 23. Section 3-104 of the election law, subdivisions 1, 3, 4 and 5 as
     9  redesignated  and  subdivision  2 as amended by chapter 9 of the laws of
    10  1978, is amended to read as follows:
    11    § 3-104. State board of elections and the  state  board  of  elections

    12  enforcement  counsel;  enforcement powers.  1. (a) There shall be a unit
    13  known as the state board of elections enforcement unit established with-
    14  in the state board of elections. The head of  such  unit  shall  be  the
    15  enforcement counsel.
    16    (b)  The  state  board of elections shall have jurisdiction of, and be
    17  responsible for, the execution and  enforcement  of  the  provisions  of
    18  [article   fourteen  of  this  chapter  and  other]  statutes  governing
    19  campaigns, elections and related procedures; provided however  that  the
    20  enforcement  counsel shall have sole authority within the state board of
    21  elections to investigate on his or her own initiative or upon complaint,
    22  alleged  violations  of  article  fourteen  of  this  chapter  and   all

    23  complaints  alleging  article  fourteen violations shall be forwarded to
    24  the enforcement unit. Nothing in this  section  shall  be  construed  to
    25  diminish or alter the state board of elections' jurisdiction pursuant to
    26  this chapter.
    27    2.  Whenever  [the state board of elections or other] a local board of
    28  elections shall determine, on its own initiative or upon  complaint,  or
    29  otherwise,  that  there  is substantial reason to believe a violation of
    30  this chapter or  any  code  or  regulation  promulgated  thereunder  has
    31  [occurred]  been  committed  by  a candidate or political committee that
    32  files statements or is required to do so pursuant to article fourteen of
    33  this chapter solely with such local board, it shall  expeditiously  make

    34  an  investigation  which shall also include investigation of reports and
    35  statements made or failed to be made by the complainant  and  any  poli-
    36  tical  committee supporting his candidacy if the complainant is a candi-
    37  date or, if the complaint was made by an officer or member  of  a  poli-
    38  tical  committee, of reports and statements made or failed to be made by
    39  such political committee and any candidates supported by it. [The  state
    40  board  of elections, in lieu of making such an investigation, may direct
    41  the appropriate board of elections to make an investigation.] The  state
    42  board of elections may request, and shall receive, the assistance of the
    43  state police in any investigation it shall conduct.
    44    3.  [If, after an investigation, the state or other board of elections

    45  finds reasonable cause to believe that a violation  warranting  criminal
    46  prosecution  has taken place, it shall forthwith refer the matter to the
    47  district attorney of the appropriate county and shall make available  to
    48  such  district  attorney  all  relevant papers, documents, testimony and
    49  findings relevant to its investigation.
    50    4. The state or other  board  of  elections  may,  where  appropriate,
    51  commence  a judicial proceeding with respect to the filing or failure to
    52  file any statement of receipts, expenditures,  or  contributions,  under
    53  the  provisions  of  this  chapter, and the state board of elections may
    54  direct the  appropriate  other  board  of  elections  to  commence  such
    55  proceeding.


        S. 4009                            23

     1    5.]   If the enforcement counsel determines that a violation of subdi-
     2  vision one of section 14-126 of this chapter has  occurred  which  could
     3  warrant  a civil penalty, the enforcement counsel shall, upon his or her
     4  discretion, seek to resolve the matter extra-judicially  or  commence  a
     5  special  proceeding  in  the supreme court pursuant to section 16-114 of
     6  this chapter.
     7    4. Upon receipt of a complaint and supporting information or an inter-
     8  nal referral from the enforcement unit alleging any other  violation  of
     9  article  fourteen of this chapter, the enforcement counsel shall analyze
    10  the facts and the law relevant to such complaint or referral  to  deter-

    11  mine  if  an investigation should be undertaken. The enforcement counsel
    12  shall, if necessary, request additional information from the complainant
    13  to assist such counsel in making this determination. Such analysis shall
    14  include the following: first, whether the allegations,  if  true,  would
    15  constitute  a violation of article fourteen of this chapter and, second,
    16  whether the allegations are supported by credible evidence.
    17    5.  If  the  enforcement  counsel  determines  that  the   allegations
    18  contained  in  a complaint, if true, would not constitute a violation of
    19  article fourteen of  this  chapter  or  that  the  allegations  are  not
    20  supported  by  credible evidence, he or she shall: (a) notify the deputy

    21  enforcement counsel of such determination and (b)  publicly  notify  the
    22  state  board  of  elections of such determination. If the state board of
    23  elections publicly determines, as provided in this title, that the alle-
    24  gations, if true, would constitute a violation of  article  fourteen  of
    25  this chapter and that the allegations appear to be supported by credible
    26  evidence, it shall direct that the enforcement counsel conduct an inves-
    27  tigation.  Lacking  such  a determination, the enforcement counsel shall
    28  issue a letter to the complainant dismissing the complaint.
    29    6. If the enforcement counsel  determines  that  the  allegations,  if
    30  true,  would  constitute a violation of article fourteen of this chapter

    31  and that the allegations appear to be supported by credible evidence, he
    32  or she shall: (a) notify the deputy enforcement counsel of  (i)  his  or
    33  her  intent to resolve the matter extra-judicially due to the de minimis
    34  nature of the violation; or (ii) his or her intent to commence an inves-
    35  tigation, and (b) publicly notify the state board of elections  of  such
    36  intent  no  later  than  the  board's  next regularly scheduled meeting.
    37  Notification shall summarize the relevant facts and the  applicable  law
    38  and  shall,  to  the extent possible, protect from public disclosure the
    39  identity of the complainant and the individual subject to the complaint.
    40  The deputy enforcement counsel shall have the opportunity to review  the

    41  entire  file  of any preliminary investigation conducted by the enforce-
    42  ment counsel a minimum of ten days prior  to  said  regularly  scheduled
    43  meeting of the board and to submit a public, written concurrence with or
    44  dissent from the enforcement counsel's proposal.
    45    7.  If, upon considering the enforcement counsel's notice of intent to
    46  commence an investigation and the deputy enforcement counsel's recommen-
    47  dation, the state board of elections believes that the  allegations,  if
    48  true, would not constitute a violation of article fourteen of this chap-
    49  ter,  or the allegations are not supported by credible evidence or, that
    50  on balance, the equities favor a dismissal of the complaint,  the  board

    51  shall  publicly  direct that an investigation not be undertaken no later
    52  than sixty days after the receipt of notification from  the  enforcement
    53  counsel  of his or her intent to commence an investigation. In determin-
    54  ing whether the equities favor a dismissal of the complaint,  the  state
    55  board of elections shall consider the following factors: (a) whether the
    56  complaint  alleges  a  de  minimis violation of article fourteen of this

        S. 4009                            24
 
     1  chapter; (b) whether the subject of the complaint has made a good  faith
     2  effort  to  correct  the  violation;  and (c) whether the subject of the
     3  complaint has a history of similar violations.   Determinations  of  the

     4  state  board  of elections to dismiss a complaint and not proceed with a
     5  formal investigation shall be voted upon as provided in subdivision four
     6  of section 3-100 of this title at an open meeting  pursuant  to  article
     7  seven  of the public officers law, and shall be made on a fair and equi-
     8  table basis and without regard to the  status  of  the  subject  of  the
     9  complaint.
    10    8.  Absent a timely determination by the state board of elections that
    11  an investigation shall not be undertaken, the enforcement counsel  shall
    12  commence  an investigation on a timely basis. If the enforcement counsel
    13  determines that additional investigative  powers,  as  provided  for  in
    14  subdivisions  four,  five  and  six  of section 3-102 of this title, are

    15  needed to complete the counsel's investigation, he or she shall  request
    16  such  additional  powers  from the state board of elections. Such powers
    17  shall be granted by the board in public only when the board  finds  that
    18  further investigation is warranted and justified.
    19    9.  At  the  conclusion  of its investigation, the enforcement counsel
    20  shall provide the deputy enforcement counsel  and  the  state  board  of
    21  elections  with  a written recommendation as to: (a) whether substantial
    22  reason exists to believe a violation of article fourteen of this chapter
    23  has occurred and, if so, the nature of the violation and any  applicable
    24  penalty,  as  defined  in  section  14-126 of this chapter, based on the

    25  nature of the violation; (b)  whether  the  matter  should  be  resolved
    26  extra-judicially;  (c)  whether a special proceeding should be commenced
    27  in the supreme court to recover a  civil  penalty;  and  (d)  whether  a
    28  referral  should  be made to a district attorney pursuant to subdivision
    29  eleven of this section because reasonable  cause  exists  to  believe  a
    30  violation  warranting  criminal  prosecution has taken place. The deputy
    31  enforcement counsel shall have the opportunity to review the entire file
    32  of any investigation conducted by the enforcement counsel a  minimum  of
    33  ten  days  prior to said regularly scheduled meeting of the board and to
    34  submit a public, written concurrence with or dissent from  the  enforce-

    35  ment counsel's recommendation.
    36    10.  The  state  board of elections shall accept, modify or reject the
    37  enforcement counsel's recommendation no  later  than  sixty  days  after
    38  receipt  of  such recommendation. In making its determination, the board
    39  shall again consider: (a) whether the complaint  alleges  a  de  minimis
    40  violation  of  article fourteen of this chapter; (b) whether the subject
    41  of the complaint has made a good faith effort to correct the  violation;
    42  and  (c)  whether  the subject of the complaint has a history of similar
    43  violations. All such determinations shall be voted upon as  provided  in
    44  subdivision  four  of  section  3-100  of  this title at an open meeting

    45  pursuant to article seven of the public officers law, and shall be  made
    46  on  a  fair  and  equitable  basis,  without regard to the status of the
    47  subject of the complaint.
    48    11. (a) If the state board of elections  determines,  as  provided  in
    49  subdivision  ten  of  this  section,  that  substantial reason exists to
    50  believe that a person, acting as or on behalf of a  candidate  or  poli-
    51  tical  committee  under circumstances evincing an intent to violate such
    52  law, has unlawfully accepted a contribution in excess of a  contribution
    53  limitation  established in article fourteen of this chapter, which could
    54  warrant a civil penalty as provided for in subdivision three of  section
    55  14-126  of  this  chapter,  the board shall direct the commencement of a

    56  special proceeding in the supreme court.

        S. 4009                            25
 
     1    (b) If the state board of elections determines, as provided in  subdi-
     2  vision  ten  of  this  section that reasonable cause exists to believe a
     3  violation warranting criminal prosecution has  taken  place,  the  board
     4  shall  refer  the matter to a district attorney and shall make available
     5  to  such district attorney all papers, documents, testimony and findings
     6  relevant to its investigation.
     7    12. Upon notification that a special proceeding has been commenced  by
     8  a  party  other  than  the state board of elections, pursuant to section
     9  16-114 of this chapter, the state board of elections  shall  direct  the

    10  enforcement  counsel to investigate the alleged violations unless other-
    11  wise directed by the court.
    12    13. The enforcement counsel shall prepare a report, to be included  in
    13  the  annual  report  to  the  governor  and legislature, summarizing the
    14  activities of the unit during  the  previous  year.  Such  report  shall
    15  include:  (a)  the  number  of  complaints  received;  (b) the number of
    16  complaints that were found to need investigation and the nature of  each
    17  complaint;  and  (c) the number of matters that have been resolved.  The
    18  report shall not contain any information for  which  disclosure  is  not
    19  permitted.
    20    14.  The state board of elections may promulgate rules and regulations

    21  consistent with law to effectuate the provisions of this section.
    22    § 24. The state of New York shall appropriate during each fiscal  year
    23  to the New York state board of elections enforcement unit, not less than
    24  thirty-five percent of the appropriation available from the general fund
    25  for  the  state  board  of  elections  to  pay  for the expenses of such
    26  enforcement unit. The enforcement counsel shall have independent author-
    27  ity over said appropriation including the power to hire necessary staff.
    28    § 25. Severability. If any clause, sentence,  subdivision,  paragraph,
    29  section  or part of title II of article 14 of the election law, as added
    30  by section ten of this act be adjudged by any court of competent  juris-
    31  diction to be invalid, such judgment shall not affect, impair or invali-
    32  date  the  remainder  thereof, but shall be confined in its operation to

    33  the clause, sentence, subdivision, paragraph, section  or  part  thereof
    34  directly  involved  in the controversy in which such judgment shall have
    35  been rendered.
    36    § 26. This act shall take effect immediately; provided,  however,  all
    37  state  candidates and constitutional convention delegates will be eligi-
    38  ble to participate in the public financing  system  beginning  with  the
    39  2017  election  and  state  legislature  candidates  will be eligible to
    40  participate in the public  financing  system  beginning  with  the  2019
    41  election.
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