Amd Art 14 Art Head, desig SS14-100 - 14-130 to be Title 1, add Title head, Title II SS14-200 - 14-216, El L;
add S359-gg, Gen Bus L; add S99-u, St Fin L; add S630-c, Tax L
Enacts the "Comptroller Campaign Finance Reform Act" to provide for public financing for campaigns for the office of the state comptroller; authorizes the imposition of an additional surcharge on recoveries for fraudulent practices regarding stocks, bonds and other securities; establishes the New York State campaign finance fund; provides for a New York State campaign finance fund check-off.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7394
SPONSOR: Silver TITLE OF BILL: An act to amend the election law, in relation to
enacting the comptroller campaign finance reform act to provide for
public financing for campaigns for the office of state comptroller; to
amend the general business law, in relation to authorizing the imposi-
tion of an additional surcharge on recoveries for fraudulent practices
relating to stocks, bonds and other securities; to amend the state
finance law, in relation to establishing the New York state campaign
finance fund; and to amend the tax law, in relation to providing for a
New York state campaign finance fund check-off
PURPOSE: This bill would provide candidates for the nomination for
election, or election to the Office of State Comptroller, the option of
receiving publicly funded matching campaign contributions in return for
agreeing to: (i) caps on spending; (ii) limits on contributions; (iii)
participating in at least one public debate; and (iv) monitoring and
auditing of campaign expenditures by an independent campaign finance
board within the board of elections.
SUMMARY OF PROVISIONS: Section 1 renames Article 14 of the Election
Law as "Campaign Finance."
Section 2 designates a new title 1 within article 14 of the Election Law
and its new title heading is "Campaign Receipts and Expenditures."
Section 3 establishes a new "Title 2" within Article 14 of the Election
Law, adding new sections 14-200 through 14-216, collectively known as
the "Comptroller Campaign Finance Reform Act":
* Section 14-200 provides for a short title;
* Section 14-201 contains legislative findings and intent;
* Section 14-202 defines those terms applicable to Title 2 and limits
their application to candidates for the nomination for election or for
the election to the Office of State Comptroller. Such terms include the
definitions of candidate, contributor, contribution, campaign finance
fund board, independent expenditures, matchable contributions, and
participating candidate, among others. Where applicable, all other defi-
nitions of Title 1 of Article 14 also apply to such candidates;
* Section 14-203 imposes reporting requirements on all candidates for
State Comptroller in addition to those otherwise mandated by the
Election Law. Any campaign report filed with the State Board of
Elections shall also be filed with the Campaign Finance Board;
* Section 14-204 limits campaign contributions that may be accepted by
participants in the public campaign funding program to $2000 per
contributor; but in all other respects; contributions to such campaigns
would be governed by Title 1 of Article 14 of the Election Law;
* Section 14-205 mandates that all candidates, participating and nonpar-
ticipating, keep records and file certain reports with the newly estab-
lished Campaign Finance Fund Board, in addition to those reports that
must be filed with the State Board of Elections under current law;
* Section 14-206 sets the terms and conditions that govern eligibility
to receive matching public funds and a threshold level of contributions
that must be raised across the State by a candidate seeking funding. To
be eligible, the candidate must receive contributions totaling $150,000
in matchable contributions in amounts no less than $10 and no seater
than $250, including at least 50 matchable contributions from registered
voters in 75 percent of the congressional districts in the State. A
matchable contribution is defined as the first $250 dollars of each
contribution received by a participating candidate. Once a candidate
meets the threshold, then he or she is deemed eligible to receive funds
for all elections to State Comptroller in the election year;
* Section 14-207 sets voluntary spending caps to which all participating
candidates must subscribe in order to receive matching public funds. The
proposed expenditure caps total $5 million for a primary election and
S7.5 million for a general election for each election. The section also
provides for the method of distributing matching funds from the newly
established Campaign Finance Fund;
* Section 14-208 sets the ratio of matching funds to be disbursed to
funds contributed at six dollars for every dollar of a matchable
contribution for funds raised for both a primary and a general election.
Such funds would be promptly disbursed and the ratio and spending caps
that § 14-207 provides would be adjusted in the event a nonparticipating
candidate were to meet or exceed such spending caps;
* Section 14-209 limits the use of public matching, funds to certain
"qualified campaign expenditures";
* Section 14-210 establishes a seven-member Campaign Finance Fund Board
within the State Board of Elections to monitor and audit the program and
enforce its provisions. One member shall be appointed by the governor,
one member shall be appointed by each legislative leader of both houses
and two additional members who shall be representative of non-partisan
citizens' groups who shall be appointed by the Governor upon consulta-
tion with the legislative leaders, one of whom shall serve as chair. No
member would be allowed to hold elective office or function as a lobby-
ist;
* Section 14-211 empowers the Campaign Finance Fund Board to audit and
examine all matters related to the performance of such board's functions
and all other matters related to the Comptroller Campaign Finance Reform
Act, including the auditing of any candidate who receives public funds,
and sets forth procedures for repayment of matching funds after an
election;
* Section 14-212 sets forth the wrongful acts that could result in the
Campaign Finance Fund Board imposing civil fines;
* Section 14-213 sets forth the wrongful acts, misdemeanors and felo-
nies, that if proven, could lead to fines and imprisonment;
* Section 14-214 mandates that the Campaign Finance Fund Board issue a
detailed report on the operation of the program and make recommendations
regarding any amendments to this title;
* Section 14-215 requires participating, candidates to engage in at
least one debate before a primary election and at least one debate
before the general election; and
* Section 14-216 governs (along with newly enacted § 99-u of the State
Finance Law) the distribution of funds from the Campaign Finance Fund.
Section 4 of this bill amends the General Business Law to add a new §
359-gg to assess, in addition to any penalty authorized by section 359-g
of the General Business Law or any damages or other compensation recov-
erable, an additional surcharge in the amount of ten percent of the
total penalty, damages or settlement. Such surcharge would be deposited
in the Campaign Finance Fund.
Section 5 of the bill amends the State Finance Law to create a new §
99-u establishing the Campaign Finance Fund.
Section 6 of the bill adds a new Section 630-c of the Tax Law. This
Section provides for the creation of a campaign finance fund tax check-
off on personal income tax returns, the proceeds of which would also be
deposited into the NYS Campaign. Finance Fund.
Section 7 of the bill contains a severability clause.
JUSTIFICATION: The Comptroller Campaign Finance Reform Act would enact
a comprehensive program to provide financing to candidates running for
the nomination for or election to the Office of State Comptroller.
Campaign spending limits would be capped for the primary election and
general election for State Comptroller in 2014 for participants in the
program at the following levels: $5 million per candidate for a primary
election and $7.5 million per candidate for the general election
(defined collectively as "covered elections").
Any qualified candidate, regardless of party affiliation, participating
in the program could receive matching funds (and be "a participant") if
he or she: (I) agrees to accept a limit on campaign contributions,
spending caps and strict reporting requirements and monitoring; and (2)
collects $150,000 in contributions as small as $10 but no more than $250
from at least 50 voters in 75 percent of the congressional districts in
the State. Collecting "seed money" in such fashion would help demon-
strate, before funds were tapped., that a candidate had a measure of
statewide appeal.
Each participant in the program would also be required to engage in at
least one debate before a primary election and one debate before the
general or special election according to rules set by the Campaign
Finance Board.
Financed through a ten percent surcharge on securities litigation, the
State (through a newly established Campaign Finance Fund) would match 56
dollars for every $1 dollar contributed to a candidate for the next
primary election and would match $6 dollars for every $1 dollar contrib-
uted to a candidate for the general election. Candidates who seek match-
ing funds would be limited to accepting contributions of $2,000 per
contributor; however, only the first 5250 of each contribution would be
matched.
The program and participating candidates would be monitored and contin-
uously audited by a new, independent seven member Campaign Finance Fund
Board within the State Board of Elections consisting of appointees by
the Governor, leaders of each majority and minority in the Legislature
and two independent members from citizens groups, one of whom would
serve as chair. The Board, which would also oversee the fund, would
retain a nongovernmental auditor through an open, competitive process to
monitor the fund's operation and candidate compliance. The Board would
also administer the Campaign Finance Fund.
There would be strict limits on how public funds could be spent. The
Board would have enforcement powers at its disposal to permit it to
recover funds wrongfully or mistakenly paid to a candidate and to assess
civil fines and seek criminal penalties against those who have violated
the law. Such remedies would be without prejudice to any other remedies
against violators available under law or regulation.
RATIONALE FOR THE LEGISLATION: The Comptroller is committed to
reforming New York's campaign finance system for the Office of State
Comptroller. As sole trustee of the New York state and local retirement
system and as chief fiscal officer for the state of New York, the Comp-
troller has a fiduciary duty to the members, retirees and beneficiaries
of the retirement system and to the people Of New York State. This Act
would comply with such duty and further the State's interest by encour-
aging qualified candidates to run for the Office of State Comptroller
regardless of their access to wealth, thereby increasing public debate
and participation in the democratic process.
The Comptroller urges approval of this legislation.
LEGISLATIVE HISTORY: 2011-12 - S. 6512 / A. 8367-B (Passed Assembly in
2011).
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: January 1, 2014.
