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A04172 Summary:

BILL NO	A04172

SAME AS	SAME AS S00701

SPONSOR	Simon (MS)

COSPNSR	Seawright, Clark, Morinello, Lunsford, McDonough, Williams, Stirpe, Gallahan, Tapia, Steck

MLTSPNSR	Woerner

Amd §§14-130 & 14-132, El L

Relates to campaign funds for personal use.
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A04172 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4172
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 31, 2025
                                       ___________
 
        Introduced  by  M.  of  A. SIMON, SEAWRIGHT, CLARK, MORINELLO, LUNSFORD,
          McDONOUGH, WILLIAMS, STIRPE, GALLAHAN, TAPIA, STECK -- Multi-Sponsored
          by -- M. of A. WOERNER -- read once and referred to the  Committee  on
          Election Law
 
        AN  ACT  to  amend  the  election law, in relation to campaign funds for
          personal use

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 14-130 of the election law, as amended by section 9
     2  of part CC of chapter 56 of the laws of 2015, paragraphs (ix) and (x) of
     3  subdivision 3 as amended and paragraph (xi) of subdivision 3 as added by
     4  chapter 136 of the laws of 2019, is amended to read as follows:
     5    §  14-130.  Campaign funds for personal use. 1. Contributions received
     6  by a candidate or a political committee may only be  expended  for  [any
     7  lawful  purpose.  Such  funds  shall not be converted by any person to a
     8  personal use which is unrelated to a political campaign or  the  holding
     9  of  a  public  office  or  party  position.] bona fide purposes directly
    10  related to either:
    11    [2. No contribution shall be used to pay interest or any other finance
    12  charges upon monies loaned to the campaign  by  such  candidate  or  the
    13  spouse of such candidate.
    14    3.  For  the purposes of this section, contributions "converted by any
    15  person to a personal use" are expenditures that are exclusively for  the
    16  personal  benefit  of  the  candidate  or  any  other individual, not in
    17  connection with a political campaign or the holding of a  public  office
    18  or  party  position.  "Converted  by any person to a personal use", when
    19  meeting the definition in this subdivision, shall include,  but  not  be
    20  limited to, expenses for the following:
    21    (i)  any  residential  or  household  items, supplies or expenditures,
    22  including mortgage, rent  or  utility  payments  for  any  part  of  any
    23  personal  residence  of  a  candidate or officeholder or a member of the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02517-01-5
        A. 4172                             2

     1  candidate's or officeholder's family that are not incurred as  a  result
     2  of, or to facilitate, the individual's campaign, or the execution of his
     3  or  her duties of public office or party position. In the event that any
     4  property  or  building  is used for both personal and campaign use or as
     5  part of the execution of his or her duties of  public  office  or  party
     6  position,  personal  use  shall constitute expenses that exceed the pro-
     7  rated amount for such expenses based on fair-market value.
     8    (ii) mortgage, rent, or utility payments to a candidate or officehold-
     9  er for any part of any non-residential  property  that  is  owned  by  a
    10  candidate or officeholder or a member of a candidate's or officeholder's
    11  family and used for campaign purposes, to the extent the payments exceed
    12  the fair market value of the property's usage for campaign activities;
    13    (iii)  clothing,  other than items that are used in the campaign or in
    14  the execution of the duties of public office or party position;
    15    (iv) tuition payments unrelated to a political campaign or the holding
    16  of a public office or party position;
    17    (v) salary payments or other compensation provided to any  person  for
    18  services  where  such  services  are not solely for campaign purposes or
    19  provided in connection with the execution of the duties of public office
    20  or party position;
    21    (vi) salary payments or other compensation provided to a member  of  a
    22  candidate's  family,  unless  the  family  member is providing bona fide
    23  services to the campaign. If a family member provides bona fide services
    24  to a campaign, any salary payments or other compensation  in  excess  of
    25  the  fair  market  value  of  the  services provided shall be considered
    26  payments for personal use;
    27    (vii) admission to a sporting event, concert, theater, or  other  form
    28  of entertainment, unless such event is part of, or in connection with, a
    29  campaign  or  is  related to the holding of public office or party posi-
    30  tion;
    31    (viii) payment of any fines or penalties assessed against  the  candi-
    32  date  pursuant  to  this  chapter  or  in  connection  with  a  criminal
    33  conviction or by the joint commission  for  public  ethics  pursuant  to
    34  section  ninety-four  of  the executive law or sections seventy-three or
    35  seventy-three-a of the public officers law  or  the  legislative  ethics
    36  commission pursuant to section eighty of the legislative law;
    37    (ix)  dues, fees, or gratuities at a country club, health club, recre-
    38  ational facility or other entities with a similar purpose,  unless  they
    39  are  expenses  connected  with  a specific fundraising event or activity
    40  associated with a political campaign or the holding of public office  or
    41  party position that takes place on the organization's premises;
    42    (x)  travel  expenses including automobile purchases or leases, unless
    43  used for campaign purposes or in connection with the  execution  of  the
    44  duties  of  public  office  or  party position and usage of such vehicle
    45  which is incidental to such purposes or the execution  of  such  duties;
    46  and
    47    (xi)  childcare expenses, other than expenses incurred in the campaign
    48  or in the execution of the duties of public office or party position.
    49    4. Nothing in this section shall prohibit a candidate from  purchasing
    50  equipment  or  property  from  his  or her personal funds and leasing or
    51  renting such equipment or property to a committee  working  directly  or
    52  indirectly  with  him  to aid or participate in his or her nomination or
    53  election, including an exploratory committee, provided that  the  candi-
    54  date  and  his  or her campaign treasurer sign a written lease or rental
    55  agreement. Such agreement shall include the lease or rental price, which
    56  shall not exceed the fair lease or rental value of  the  equipment.  The
        A. 4172                             3

     1  candidate  shall  not  receive  lease  or  rental payments which, in the
     2  aggregate, exceed the cost of purchasing the equipment or property.
     3    5.  Nothing  in  this section shall prohibit an elected public office-
     4  holder from using campaign  contributions  to  facilitate,  support,  or
     5  otherwise assist in the execution or performance of the duties of his or
     6  her public office.
     7    6.  The  state  board  of elections shall issue advisory opinions upon
     8  request regarding  expenditures  that  may  or  may  not  be  considered
     9  personal  use of contributions. Any formal or informal advisory opinions
    10  issued by a majority vote of the commissioners of  the  state  board  of
    11  elections  shall  be binding on the board, the chief enforcement counsel
    12  established by subdivision three-a of section 3-100 of this chapter, and
    13  in any subsequent civil or criminal action or proceeding or  administra-
    14  tive proceeding.]
    15    a. promoting the nomination or election of a candidate; or
    16    b.  performing duties of public office or party position which are not
    17  paid for or eligible for reimbursement by the  state  or  any  political
    18  subdivision or private party, and ordinary and necessary expenses relat-
    19  ing to the holding of public office or party position.
    20    2.  Campaign funds shall not be converted to personal use, which shall
    21  be defined as expenditures that:
    22    a. are for the personal benefit of or to defray normal living expenses
    23  of the candidate, officeholder, immediate family or domestic partner  of
    24  either or any other person;
    25    b.  are  used  to  fulfill any commitment, obligation, or expense that
    26  would exist irrespective of the candidate's campaign  or  duties  as  an
    27  officeholder; or
    28    c. are put to any use for which the candidate or officeholder would be
    29  required  to  treat  the amount of the expenditure as gross income under
    30  section 61 of the Internal Revenue Code.
    31    3. Expenditures for personal use  shall  also  include,  but  are  not
    32  limited to, expenditures for:
    33    a.  residential  or  household  items,  supplies, maintenance or other
    34  expenditures, including mortgage, rent, utilities, repairs, or  improve-
    35  ments  for  any part of any personal residence of a candidate or office-
    36  holder, the candidate's or officeholder's immediate family  or  domestic
    37  partner;
    38    b.  rent  or utility payments that exceed fair market value for use of
    39  any part of any non-residential property owned  by  a  candidate,  or  a
    40  member  of  a  candidate's  family or domestic partner used for campaign
    41  purposes;
    42    c. salary and other fees for bona  fide  services  to  a  campaign  or
    43  legislative  office that exceed fair and reasonable market value of such
    44  services;
    45    d. interest or any other finance charges  for  monies  loaned  to  the
    46  campaign  by  the  candidate  or  the spouse or domestic partner of such
    47  candidate;
    48    e. tuition payments;
    49    f. dues, fees, or gratuities at private clubs, recreational facilities
    50  or other nonpolitical organizations,  unless  connected  to  a  specific
    51  widely attended fundraising event that takes place on the organization's
    52  premises;
    53    g.  automobile  purchases  or long term leases; short term car rentals
    54  and cellular equipment and services not used  exclusively  for  campaign
    55  purposes or duties as an officeholder;
        A. 4172                             4
 
     1    h. admission to sporting events, concerts, theaters, or other forms of
     2  entertainment,  unless  part  of  a  specific  campaign  or officeholder
     3  related activity; and
     4    i.  payment of any fines, fees, or penalties assessed pursuant to this
     5  chapter.
     6    Nothing in this section shall prohibit  a  candidate  from  purchasing
     7  office  equipment with personal funds and leasing or renting such equip-
     8  ment or property to a committee  working  with  or  for  the  candidate,
     9  provided  the  candidate or the campaign treasurer signs a written lease
    10  or rental agreement and files it with the appropriate required  campaign
    11  financial  filing  which  shall  include the lease or rental price which
    12  shall not exceed the fair lease or rental value of the equipment  or  in
    13  the aggregate exceed the cost of its purchase.
    14    § 2. Section 14-132 of the election law, as added by section 2 of part
    15  C of chapter 286 of the laws of 2016, is amended to read as follows:
    16    §  14-132.  Disposition  of  campaign  funds. [1.] Upon the death of a
    17  candidate, former candidate or holder of elective  office,  [where  such
    18  candidate  or  candidate's  authorized  committee] who received campaign
    19  contributions, all [such funds] contributions shall be disposed  of  [by
    20  any of the following means, or any combination thereof, within two years
    21  of the death of such person:
    22    (a)  returning,  pro rata, to each contributor the funds that have not
    23  been spent or obligated;
    24    (b) donating the funds to a charitable organization  or  organizations
    25  that meet the qualifications of section 501(c)(3) of the Internal Reven-
    26  ue Code;
    27    (c) donating the funds to the state university of New York or the city
    28  university of New York;
    29    (d) donating the funds to the state's general fund; or
    30    (e)  contributing  or  transferring  the  funds to a candidate, party,
    31  constituted or political committee in  accordance  with  the  applicable
    32  limits, if any, set forth in this article.
    33    2. No such candidate's authorized political committee shall dispose of
    34  campaign  funds  by  making  expenditures for personal use as defined in
    35  section 14-130 of this article.
    36    3. If funds are not disposed of  within  the  time  required  by  this
    37  section,  such funds shall be recoverable by the chief enforcement coun-
    38  sel of the state board of elections in a  special  proceeding  in  state
    39  supreme court in the manner prescribed by section 16-116 of this chapter
    40  and deposited into the state's general fund] within twelve months of the
    41  death of the candidate pursuant to subdivision one of this section.
    42    1.  Any  political  committee required to dispose of funds pursuant to
    43  this section shall, at the option of the representative of the estate of
    44  the candidate, or the treasurer of a political committee  formed  solely
    45  to  promote  the passage or defeat of a ballot proposal, dispose of such
    46  funds by any of the following means, or any combination thereof:
    47    a. returning, pro rata, to each contributor the funds  that  have  not
    48  been spent or obligated;
    49    b.  donating  the  funds to a charitable organization or organizations
    50  that meet the qualifications of  section  501(c)  (3)  of  the  Internal
    51  Revenue Code;
    52    c. donating the funds to the state university;
    53    d. donating the funds to the state's general fund;
    54    e.  transferring  the  funds to a political party committee registered
    55  with the state board of elections; or
        A. 4172                             5
 
     1    f. contributing the funds to a candidate or political  committee  such
     2  that this does not exceed the limits set forth in section 14-114 of this
     3  title.
     4    2. No representative of the estate of a candidate or political commit-
     5  tee  shall dispose of campaign funds by making expenditures for personal
     6  use as defined in section 14-130 of this title.
     7    § 3. This act shall take effect on the sixtieth  day  after  it  shall
     8  have  become  a  law;  provided, that the state board of elections shall
     9  notify all registered campaign committees of the  applicable  provisions
    10  of this act within thirty days after this act shall have become a law.
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New York State Assembly

Speaker Carl E. Heastie

A04172 Summary:

A04172 Text:
