STATE OF NEW YORK
________________________________________________________________________
7123
2013-2014 Regular Sessions
IN ASSEMBLY
May 1, 2013
___________
Introduced by M. of A. ABINANTI -- read once and referred to the Commit-
tee on Election Law
AN ACT to amend the election law, in relation to enacting the "2013
Local Fair Elections Act"; and 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
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 Local Fair Elections 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 municipal offices.
10 § 3. Article 14 of the election law is amended by adding a new title 3
11 to read as follows:
12 TITLE III
13 LOCAL PUBLIC FINANCING
14 Section 14-300. Definitions.
15 14-301. Option to participate.
16 14-302. Reporting requirements.
17 14-303. Eligibility.
18 14-304. Qualified campaign expenditures.
19 14-306. Optional public financing.
20 14-308. Contribution and receipt limitations.
21 14-310. Limitations on the receipt of public funds.
22 14-312. Campaign finance board.
23 14-314. Examinations and audits.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10356-03-3
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1 14-316. Civil enforcement.
2 14-318. Criminal penalties.
3 14-320. Reports.
4 14-322. Debates.
5 14-324. Distributions from campaign finance fund.
6 § 14-300. Definitions. As used in this title, unless another meaning
7 is clearly indicated:
8 1. The term "board" or "campaign finance board" means the board
9 created by section 14-312 of this title.
10 2. The term "eligible candidate" shall mean a candidate for nomination
11 or election to any municipal office of any local government.
12 3. The term "participating committee" shall mean a single authorized
13 political committee which a candidate certifies is the committee that
14 will solely be used to participate in the public financing system estab-
15 lished by this title after January first of the year in which the prima-
16 ry, general or special election is held for the public office sought. A
17 multi-candidate committee may not be a participating committee.
18 4. The term "participating candidate" shall mean a candidate who is
19 eligible to participate in the optional public financing system estab-
20 lished by this title, has met the threshold for eligibility and has
21 elected to participate in the public financing system.
22 5. The term "nonparticipating candidate" shall mean a candidate for
23 any office eligible for optional public financing under this title for a
24 covered election who fails to file a statement in the form of an affida-
25 vit pursuant to section 14-306 of this title.
26 6. The term "matchable contributions" shall mean that portion of the
27 aggregate contributions made (a) in the case of a primary or general
28 election, after January first of the year in which the primary or gener-
29 al election is held for the public office sought or (b) in the case of a
30 special election, within six months of such election by natural persons
31 resident in the state of New York to a candidate for nomination or
32 election to any of the offices covered by the provisions of this title
33 which do not exceed two hundred fifty dollars, which have been reported
34 in full by the candidate's participating committee to the campaign
35 finance board, including the contributor's full name and residential
36 address. "Matchable contributions" shall be the net amount of any mone-
37 tary contribution realized by a candidate or designated committee after
38 deducting the reasonable value of any goods or services provided the
39 contributor in connection with the contribution, except that contrib-
40 utions from any person who has received a payment or anything of value
41 from such committee or from a person who is an officer, director or
42 employee of, or a person who has a ten percent or greater ownership
43 interest in any entity which has received such a payment or thing of
44 value shall not be matchable. A loan may not be treated as a matchable
45 contribution.
46 7. The term "qualified campaign expenditure" shall mean an expenditure
47 for which public funds may be used.
48 8. The term "fund" shall mean the local campaign finance fund created
49 by section ninety-two-gg of the state finance law.
50 9. The term "threshold for eligibility" shall mean the amount of total
51 matchable contributions that the participating committee of an otherwise
52 eligible candidate must receive, as required by section 14-303 of this
53 title, in order to qualify for optional public financing pursuant to
54 this title.
55 10. The term "contribution" shall have the same meaning as in subdivi-
56 sion nine of section 14-100 of this article.
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1 11. The term "elector" shall mean a registered voter of this state
2 registered to vote in the local government which is eligible to partic-
3 ipate in the public financing system established by this title.
4 § 14-301. Option to participate. 1. Any municipality or county having
5 a population of two million or less, acting through its local legisla-
6 tive body, is hereby authorized and empowered to elect to participate in
7 public financing authorized by this title by adopting a resolution.
8 2. Public referendum to participate. The electors of any local govern-
9 ment eligible to participate under subdivision one of this section, may
10 seek a public referendum to require its local government to participate
11 in public financing authorized by this title by filing an original peti-
12 tion, containing the signatures of at least five percent of the number
13 of electors in such local government. Such petition and referendum shall
14 be subject to all laws, rules and regulations applicable to the local
15 government in which the electors are seeking to require participation in
16 the public financing authorized by this title.
17 § 14-302. Reporting requirements. 1. Every participating candidate
18 shall not designate more than one authorized committee. Before receiving
19 any contribution or making any expenditure for a covered election, each
20 participating candidate shall notify the state board of elections and
21 the campaign finance board as to the existence of his or her authorized
22 committee that has been designated and approved by such candidate. Each
23 such authorized committee shall, before opening a committee bank
24 account, receiving any contribution or making any expenditure for a
25 covered election:
26 (a) designate a treasurer; and
27 (b) obtain a tax identification number from the internal revenue
28 service.
29 2. Disclosure. (a) Every participating candidate shall file financial
30 disclosure reports with the state board of elections as required by
31 title one of this article. Copies of such reports shall also be submit-
32 ted to the campaign finance board created pursuant to this article at
33 the same time such reports are filed with the state board of elections.
34 (b) The campaign finance board shall review each disclosure report
35 filed with the state board of elections pursuant to title one of this
36 article and shall inform participating candidates and political commit-
37 tees including the authorized committee, of relevant questions the
38 campaign finance board has concerning: (i) compliance with requirements
39 of this title and of the rules issued by the campaign finance board; and
40 (ii) qualification for receiving public matching funds pursuant to this
41 title. In the course of such review, the campaign finance board shall
42 give candidates and political committees including the authorized
43 committee, an opportunity to respond to and correct potential violations
44 and give candidates an opportunity to address questions the board has
45 concerning their matchable contribution claims or other issues concern-
46 ing eligibility for receiving public matching funds pursuant to this
47 title. Nothing in this paragraph shall preclude the board from subse-
48 quently reviewing such a disclosure report and taking any action other-
49 wise authorized by this title.
50 (c) Only itemized contributions contained in reports filed with the
51 state board of elections shall be eligible for matching funds pursuant
52 to this title.
53 § 14-303. Eligibility. 1. To be eligible for optional public financing
54 under this title, a candidate for nomination or election must:
55 (a) Meet all the requirements of this chapter and other provisions of
56 law to have his or her name on the ballot;
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1 (b) Be a candidate for municipal office at a primary, general or
2 special election and meet the threshold for eligibility set forth in
3 subdivision two of this section;
4 (c) Elect to participate in the public financing system established by
5 this title not later than seven days after the last day to file desig-
6 nating petitions for the office such candidate is seeking or, in the
7 case of a special election, not later than the last day to file nominat-
8 ing certificates for such office;
9 (d) Agree to obtain and furnish to the campaign finance board any
10 evidence it may reasonably request relating to his or her campaign
11 expenditures or contributions and furnish such other proof of compliance
12 with this title as may be requested by the board;
13 (e) Have a single authorized political committee which he or she
14 certifies as the participating committee for the purposes of this title;
15 and
16 (f) Agree to identify accurately in all campaign materials the person
17 or entity that paid for such campaign material.
18 2. The threshold for eligibility for public funding for candidates in
19 a primary, general or special election for county and municipal offices
20 shall be as follows:
21 (a) In a municipality or county with a population between two hundred
22 fifty thousand and up to and including two million in a primary or
23 general election. Not less than two hundred thousand dollars from at
24 least two thousand matchable contributions made up of sums of up to two
25 hundred fifty dollars per individual contributor who resides in New York
26 state.
27 (b) In a municipality or county with a population between one hundred
28 fifty thousand and up to and including two hundred fifty thousand in a
29 primary, general or special election. Not less than twenty thousand
30 dollars from at least two hundred matchable contributions made up of
31 sums of up to two hundred fifty dollars per individual contributor who
32 resides in New York state including at least ten thousand dollars from
33 at least one hundred twenty-five individual contributors who reside in
34 the senate district in which the seat is to be filled.
35 (c) In a municipality or county with a population between twenty-five
36 thousand and up to and including one hundred fifty thousand in a prima-
37 ry, general or special election. Not less than ten thousand dollars from
38 at least one hundred matchable contributions made up of sums of up to
39 two hundred fifty dollars per individual contributor who resides in New
40 York state including at least five thousand dollars from at least fifty
41 individuals who reside in the assembly district in which the seat is to
42 be filled.
43 (d) In a municipality or county with a population less than twenty-
44 five thousand in a primary, general or special election. Not less than
45 five thousand dollars from at least fifty individuals who reside in the
46 county in which the seat is to be filled.
47 3. In order to be eligible to receive public funds in a primary
48 election a candidate must agree, that in the event such candidate is a
49 candidate for such office in the general election in such year, that
50 such candidate will be bound by the provisions of this title, including,
51 but not limited to, the public funds receipt limits of this title.
52 4. Candidates who are contested in a primary election and who do not
53 seek public funds shall not be eligible for public funds for the general
54 election in that year.
55 5. Candidates who are unopposed in a general or special election shall
56 not be eligible to receive public funds.
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1 6. No candidate for election to an office in a primary, general or
2 special election who has elected to participate in the public financing
3 system shall be deemed opposed and receive public funds unless there is
4 at least one other candidate for such office in such election and such
5 other candidate raises at least ten percent of the participating candi-
6 date's primary receipt limit.
7 § 14-304. Qualified campaign expenditures. 1. Public funds provided
8 under the provisions of this title may only be used for expenditures by
9 the participating committee authorized by the candidate to make expendi-
10 tures on such candidate's behalf, to further the candidate's nomination
11 or election after January first of the year in which the primary or
12 general election is held for the office sought, for services, materials,
13 facilities or other things of value used during that campaign cycle or,
14 in the case of a special election, for expenditures during the period
15 commencing three months before and ending one month after such special
16 election.
17 2. Such public funds may not be used for:
18 (a) An expenditure in violation of any law of the United States or of
19 this state;
20 (b) Payments or anything of value given or made to the candidate, a
21 relative of the candidate, or to a business entity in which any such
22 person has a ten percent or greater ownership interest or of which any
23 such person is an officer, director or employee;
24 (c) Payment in excess of the fair market value of services, materials,
25 facilities or other things of value received in exchange;
26 (d) Any expenditure made after the participating candidate, or the
27 only remaining opponent of such candidate, has been disqualified or had
28 such candidate's petitions declared invalid by a board of elections or a
29 court of competent jurisdiction until and unless such finding is
30 reversed by a higher authority.
31 (e) Any expenditure made to challenge the validity of any petition of
32 designation or nomination or any certificate of nomination, acceptance,
33 authorization, declination or substitution;
34 (f) Expenditure for noncampaign related food, drink or entertainment;
35 and
36 (g) Gifts.
37 § 14-306. Optional public financing. 1. Participating candidates for
38 nomination or election in primary, general and special elections may
39 obtain payment to a participating committee from public funds for quali-
40 fied campaign expenditures. No such public funds shall be paid to a
41 participating committee until the candidate has qualified to appear on
42 the ballot and filed a sworn statement with the campaign finance board
43 electing to participate in the optional public financing system and
44 agreeing to abide by the requirements of this title. Payments shall not
45 exceed the amounts specified in this title, and shall be made only in
46 accordance with the provisions of this title. Such payments may only be
47 made to a participating candidate's participating committee. No public
48 funds shall be used except as reimbursement or payment for qualified
49 campaign expenditures actually and lawfully incurred or to repay loans
50 used to pay qualified campaign expenditures.
51 2. The participating committee of each participating candidate shall
52 be entitled to six dollars in public funds for each one dollar of match-
53 able contributions obtained and reported to the campaign finance board
54 in accordance with the provisions of this title, provided, however, such
55 public funds shall only be used for qualified campaign expenditures.
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1 3. (a) No participating candidate for nomination for an office who is
2 unopposed in a primary election shall be entitled to payment from the
3 fund for qualified campaign expenditures.
4 (b) Where there is a contest in such primary for the nomination of at
5 least one other party for such office, the participating committee of an
6 unopposed participating candidate for nomination may raise and spend an
7 amount equal to one-half the public funds receipt limit for such office,
8 as fixed by this title for candidates who have elected to accept public
9 funds, with contributions of up to two thousand dollars per contributor.
10 Such payment can only be expended for property, services or facilities
11 used on or before the date of such primary election.
12 4. The campaign finance board shall promptly examine all reports of
13 contributions to determine whether, on their face, they meet the
14 requirements for matchable contributions, and shall keep a record of
15 such contributions.
16 5. The campaign finance board shall promulgate regulations for the
17 certification of the amount of funds payable by the comptroller, from
18 the fund established pursuant to section ninety-two-gg of the state
19 finance law, to a participating candidate that has qualified to receive
20 such payment. These regulations shall include the promulgation and
21 distribution of forms on which contributions and expenditures are to be
22 reported, the periods during which such reports must be filed and the
23 verification required. The board shall institute procedures which will
24 make possible payment by the fund within two business days after receipt
25 of the required forms and verifications.
26 § 14-308. Contribution and receipt limitations. 1. In any primary,
27 special or general election for any municipal office no contributor may
28 make a contribution to any participating candidate or such participating
29 candidate's committee, and no participating candidate or participating
30 committee may accept any contribution from any contributor which, in the
31 aggregate amount, is greater than two thousand dollars.
32 2. (a) Notwithstanding the public funds receipt limit for such office
33 as fixed by this title for candidates who have elected to accept public
34 funds, a participating candidate for municipal office in a municipality
35 or county with a population between two hundred fifty thousand and up to
36 and including two million in a primary or general election or such
37 candidate's participating committee may accept from its local committee
38 which has nominated such candidate services in an amount which, in the
39 aggregate, does not exceed one million dollars; provided, however, that
40 twenty-five percent of such amount may be accepted in the form of a
41 transfer.
42 (b) Notwithstanding the public funds receipt limit for such office as
43 fixed by this title for candidates who have elected to accept public
44 funds, a participating candidate for municipal office in a municipality
45 or county with a population between one hundred fifty thousand and up to
46 and including two hundred fifty thousand in a primary, general or
47 special election or such candidate's participating committee may accept
48 from its local committee which has nominated such candidate services in
49 an amount which, in the aggregate, does not exceed one hundred thousand
50 dollars; provided, however, that twenty-five percent of such amount may
51 be accepted in the form of a transfer.
52 (c) Notwithstanding the public funds receipt limit for such office as
53 fixed by this title for candidates who have elected to accept public
54 funds, a participating candidate for municipal office in a municipality
55 or county with a population between twenty-five thousand and up to and
56 including one hundred fifty thousand in a primary, general or special
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1 election or such candidate's participating committee may accept from a
2 local party committee which has nominated such candidate services in an
3 amount which, in the aggregate, does not exceed fifty thousand dollars;
4 provided, however, that twenty-five percent of such amount may be
5 accepted in the form of a transfer.
6 (d) Notwithstanding the public funds receipt limit for such office as
7 fixed by this title for candidates who have elected to accept public
8 funds, a participating candidate for municipal office in a municipality
9 or county with a population of twenty-five thousand or less in a prima-
10 ry, special or general election or such candidate's participating
11 committee may accept from its local committee which has nominated such
12 candidate services in an amount which, in the aggregate, does not exceed
13 ten thousand dollars; provided, however, that twenty-five percent of
14 such amount may be accepted in the form of a transfer.
15 (e) For purposes of this subdivision, the term local party committee
16 includes any of its subcommittees.
17 3. In computing the aggregate amount expended for purposes of this
18 section, expenditures made by a county committee in support of more than
19 one candidate shall be allocated among such candidates supported by the
20 committee in accordance with formulas promulgated by the campaign
21 finance board or, in the absence of such official formulas, in accord-
22 ance with a formula based upon reasonable standards. The statements
23 filed by such constituted committee in accordance with this chapter
24 shall set forth, in addition to the other information required, the
25 total amount expended by the party committee on behalf of all such
26 candidates and the amount allocated to each candidate by dollar amount
27 and percentage. Expenditures by a party for activities which do not
28 support or oppose the election of any candidate or candidates by name or
29 by clear inference shall not be regarded as expenditures on behalf of or
30 in opposition to a candidate.
31 4. A participating candidate for a public office for which public
32 funds are available pursuant to this title shall not accept any contrib-
33 utions any earlier than one day after the previous general election for
34 the office which such candidate is seeking, or any later than the day of
35 the general election for the office sought, except that a participating
36 candidate or participating committee which has a deficit on the day of
37 the general election may, after such date, accept contributions which do
38 not exceed the amount of such deficit and the expenses incurred in rais-
39 ing such contributions or the expenditure limit for such office as fixed
40 by this title for candidates who have elected to accept public funds.
41 Contributions to a participating candidate or participating committee
42 which were received before the effective date of this title may not be
43 expended in any election for any such office.
44 5. Except for the limitations specifically set forth in this section,
45 participating candidates shall be subject to the provisions of this
46 article.
47 § 14-310. Limitations on the receipt of public funds. The following
48 limitations apply to the receipt of public funds by participating candi-
49 dates and their participating committees receiving such public funds
50 pursuant to the provisions of this title:
51 1. In any primary election, receipt of public funds by participating
52 candidates and by their participating committees shall not exceed:
53 (a) for candidates for office in a municipality or county with a popu-
54 lation between two hundred fifty thousand and up to and including two
55 million, the sum of six million dollars;
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1 (b) for candidates for office in a municipality or county with a popu-
2 lation between one hundred fifty thousand and up to and including two
3 hundred fifty thousand, the sum of three hundred fifty thousand dollars;
4 (c) for candidates for office in a municipality or county with a popu-
5 lation between twenty-five thousand and up to and including one hundred
6 fifty thousand, the sum of one hundred fifty thousand dollars.
7 (d) for candidates for office in a municipality or county with a popu-
8 lation of twenty-five thousand or less, the sum of seventy-five thousand
9 dollars.
10 2. In any general or special election, receipt of public funds by
11 participating candidates for the following offices and by their partic-
12 ipating committees shall not exceed the following amounts:
13 Candidates for election to office in:
14 a municipality or county with a population between two hundred fifty
15 thousand and up to and including two million $8,000,000
16 a municipality or county with a population between one hundred fifty
17 thousand and up to and including two hundred fifty thousand $350,000
18 a municipality or county with a population between twenty-five thou-
19 sand and up to and including one hundred fifty thousand $150,000
20 a municipality or county with a population of twenty-five thousand or
21 less $75,000
22 3. Participating candidates for office who are unopposed in the prima-
23 ry election may receive public funds before the primary election, for
24 services, materials or facilities used on or before the date of such
25 primary election, an amount equal to half the sum such candidates would
26 be entitled to receive if their nomination was contested in such primary
27 election provided there is a primary contest for the nomination of at
28 least one other party for such office.
29 4. Nothing in this section shall be construed to limit the amount of
30 private funds a participating candidate may receive subject to the
31 contribution limits contained in section 14-308 of this title.
32 § 14-312. Campaign finance board. 1. The campaign finance board shall
33 administer the local campaign finance fund in accordance with the
34 provisions of this title and section ninety-two-gg of the state finance
35 law.
36 2. In addition to the enforcement powers, and any other powers and
37 duties specified by law, the campaign finance board shall:
38 (a)(i) render advisory opinions with respect to questions arising
39 under this title upon the written request of a candidate, an officer of
40 a political committee or member of the public, or upon its own initi-
41 ative; (ii) promulgate rules regarding reasonable times to respond to
42 such requests; and (iii) make public the questions of interpretation for
43 which advisory opinions will be considered by the campaign finance board
44 and its advisory opinions, including by publication on its website;
45 (b) develop a program for informing and training candidates and the
46 public as to the purpose and effect of the provisions of this title,
47 including by means of a website;
48 (c) have the authority to promulgate such rules and regulations and
49 prescribe such forms as the campaign finance board deems necessary for
50 the administration of this title; and
51 (d) in conjunction with the state board of elections develop an inter-
52 active, searchable computer database that shall contain all information
53 necessary for the proper administration of this title including informa-
54 tion on contributions to and expenditures by candidates and their
55 authorized committees and distributions of moneys from the fund and
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1 shall be accessible to the public on the state board of elections'
2 website.
3 3. The campaign finance board may take such other actions as are
4 necessary and proper to carry out the purposes of this title.
5 § 14-314. Examinations and audits. 1. The campaign finance board shall
6 conduct a thorough examination and audit of the contributions and quali-
7 fied campaign expenses of the participating committee of every partic-
8 ipating candidate who received payments pursuant to section 14-306 of
9 this title. Such audits shall be conducted as frequently as the
10 campaign finance board deems necessary to ensure compliance with this
11 title. Every candidate who receives public matching funds under this
12 title shall also be audited by the campaign finance board post-election.
13 The cost of complying with a post-election audit shall be borne by the
14 candidate's authorized committee. A candidate who has received public
15 matching funds under this title must maintain a reserve of at least one
16 percent of the total amount of matching funds received by such candidate
17 in his or her campaign account to comply with the post-election audit. A
18 candidate who runs in both a primary and a general election, must main-
19 tain a reserve of one percent of the total amount of public matching
20 funds received by such candidate for both his or her primary and general
21 election. A candidate may use public matching funds, private funds or a
22 combination of public and private funds to comply with a post-election
23 audit. The campaign finance board shall issue to each campaign audited
24 the final post-election audit report that details its findings and shall
25 provide such audit to the governor and legislative leaders and make such
26 audit report available on the state board of elections' website.
27 2. (a) If the campaign finance board determines that any portion of
28 the payment made to a participating committee from the fund was in
29 excess of the aggregate amount of payments to which such eligible candi-
30 date was entitled pursuant to section 14-306 of this title, it shall
31 notify such committee of the excess amount and such committee shall pay
32 to the campaign finance board an amount equal to the amount of excess
33 payments; provided, however, that if the erroneous payment was due to an
34 error made by the campaign finance board, then the erroneous payment
35 will be offset against any future payment, if any. The participating
36 candidate and his or her participating committee shall be jointly and
37 severally liable for any repayments due to the campaign finance board
38 for deposit by such board into the New York state campaign fund.
39 (b) If the board determines that any amount of payment made to a
40 participating committee from the fund was used for purposes other than
41 to defray qualified campaign expenses, it shall notify such participat-
42 ing committee of the amount disqualified and such participating commit-
43 tee shall pay to the campaign finance board an amount equal to such
44 disqualified amount. Such monies shall be deposited into the local
45 campaign finance fund created pursuant to section ninety-two-gg of the
46 state finance law. The candidate and the candidate's authorized commit-
47 tee shall be jointly and severally liable for any repayments due to the
48 campaign finance board.
49 (c) If the total of contributions and payments from the fund received
50 by any participating candidate and such candidate's participating
51 committee, exceeds the public funding receipt limitation of such candi-
52 date and committee, such candidate and committee shall use such excess
53 funds to reimburse the fund for payments received by such committee from
54 the fund not later than ten days after all permissible liabilities have
55 been paid and in any event, not later than twenty days after the date on
56 which the campaign finance board issues its final audit report for the
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1 participating candidate's committee; provided, however, that all unspent
2 matching funds for a participating candidate shall be immediately due
3 and payable to the campaign finance board for deposit into the local
4 campaign finance fund upon its determination that the participant will-
5 fully delayed the post-election audit process. A participating candidate
6 may make post-election expenditures only for routine activities involv-
7 ing nominal costs associated with ending a campaign and responding to
8 the post-election audit.
9 3. If a court of competent jurisdiction disqualifies a candidate whose
10 participating committee has received public funds on the grounds that
11 such candidate committed fraudulent acts in order to obtain a place on
12 the ballot and such decision is not reversed by a higher court, such
13 candidate and such candidate's participating committee shall pay to the
14 campaign finance board an amount equal to the total of public funds
15 received by such participating committee.
16 4. The board must provide written notice of all payments due from a
17 participating candidate or such candidate's committee to the board and
18 provide an opportunity for the candidate or committee to rebut, in whole
19 or in part, the alleged amount due. Upon a final written determination
20 by the board, the amount due shall be paid to the board within thirty
21 days of such determination.
22 5. All payments received by the board pursuant to this section shall
23 be deposited in the local campaign finance fund established by section
24 ninety-two-gg of the state finance law.
25 § 14-316. Civil enforcement. 1. Any person or authorized committee who
26 knowingly and wilfully fails to make a filing required by the provisions
27 of this title shall be subject to a civil penalty not to exceed the
28 amount of five thousand dollars.
29 2. Any person or authorized committee who knowingly and intentionally
30 violates any other provision of this title or any rule promulgated here-
31 under shall be subject to a civil penalty not to exceed the amount of
32 ten thousand dollars.
33 3. Fines authorized under this section will be imposed by the campaign
34 finance board after a hearing at which the subject person or authorized
35 committee shall be given an opportunity to be heard. Such hearing shall
36 be held in such manner and upon such notice as may be prescribed by the
37 rules of the campaign finance board. For purposes of conducting such
38 hearings, the campaign finance board shall be deemed to be an agency
39 within the meaning of article three of the state administrative proce-
40 dure act and shall adopt rules governing the conduct of adjudicatory
41 proceedings and appeals taken pursuant to a proceeding commenced under
42 article seventy-eight of the civil practice law and rules relating to
43 the assessment of the civil penalties herein authorized.
44 4. The campaign finance board shall publish on the state board of
45 elections' website the final order adjudicating any matter brought
46 pursuant to this section.
47 5. All payments received by the campaign finance board pursuant to
48 this section shall be deposited in the local campaign finance fund
49 established by section ninety-two-gg of the state finance law.
50 § 14-318. Criminal penalties. 1. Any person who knowingly and willful-
51 ly fails to make a filing required by the provisions of this title with-
52 in ten days after the date provided for such, or anyone that knowingly
53 and willfully violates any other provision of this title shall be guilty
54 of a misdemeanor and, in addition to such other penalties as may be
55 provided by law, shall be subject to a fine not to exceed the amount of
56 ten thousand dollars.
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1 2. Any person who knowingly and willfully contributes, accepts or aids
2 or participates in the contribution or acceptance of a contribution in
3 an amount exceeding an applicable maximum specified in this article
4 shall be guilty of a misdemeanor and shall be subject to a fine not to
5 exceed the amount of ten thousand dollars.
6 3. Any person who knowingly and willfully makes a false statement or
7 knowingly omits a material fact to the campaign finance board or an
8 auditor designated by the campaign finance board during any audit
9 conducted pursuant to section 14-314 of this title shall be guilty of a
10 class E felony.
11 4. In addition to any other sentence lawfully imposed upon a finding
12 of guilt in a criminal prosecution commenced pursuant to the provisions
13 of this section, the court may order a defendant to repay to the
14 campaign finance board any public matching funds obtained as a result of
15 any criminal conduct.
16 5. All such prosecutions for criminal acts under this title shall be
17 prosecuted by the attorney general of the state of New York.
18 6. Any and all fines imposed pursuant to this section shall be made
19 payable to the campaign finance board for deposit into the local
20 campaign finance fund.
21 § 14-320. Reports. The campaign finance board shall submit a report to
22 the governor and legislative leaders on or before February first, two
23 thousand sixteen, and every four years thereafter, which shall include:
24 1. a list of the participating and nonparticipating candidates in
25 covered elections and the votes received by each candidate in those
26 elections;
27 2. the amount of contributions and loans received, and expenditures
28 made, on behalf of participating and nonparticipating candidates;
29 3. the amount of public matching funds each participating candidate
30 received, spent, and repaid pursuant to this article;
31 4. analysis of the effect of this title on the election campaigns for
32 all offices covered under section 14-303 of this title, including its
33 effect on the sources and amounts of private financing, the level of
34 campaign expenditures, voter participation, the number of candidates,
35 the candidates' abilities to campaign effectively for public office, and
36 the diversity of candidates seeking and elected to office;
37 5. recommendations for changes or amendments to this title, including
38 charges in contribution limits, thresholds for eligibility and limits on
39 total matching funds; and
40 6. any other information that the campaign finance board deems rele-
41 vant.
42 § 14-322. Debates. The campaign finance board shall promulgate regu-
43 lations to facilitate debates among participating candidates. Partic-
44 ipating candidates are required to participate in at least one debate
45 before the primary election and in at least one debate before the gener-
46 al election for which the candidate receives public funds, unless the
47 participating candidate is running unopposed. A nonparticipating candi-
48 date may be a party to such debates.
49 § 14-324. Distributions from campaign finance fund. 1. This section
50 governs the campaign finance board's distribution of funds from the
51 campaign finance fund created by section ninety-two-gg of the state
52 finance law, except as otherwise provided in this title.
53 2. No moneys shall be paid to participating candidates in a primary
54 election any earlier than two weeks after the last day to file designat-
55 ing petitions for such primary election.
A. 7123 12
1 3. No moneys shall be paid to participating candidates in a general
2 election any earlier than a week after the primary election held to
3 nominate candidates for such election.
4 4. No moneys shall be paid to any participating candidate who has been
5 disqualified by the campaign finance board or whose designating
6 petitions have been declared invalid by the county board of elections or
7 a court of competent jurisdiction until and unless such finding is
8 reversed by an appellate court.
9 5. No payment from the fund in the possession of such a candidate or
10 such a candidate's authorized committee on the date of such disquali-
11 fication or invalidation may thereafter be expended for any purpose
12 except the payment of liabilities incurred before that date. All excess
13 public moneys paid to a disqualified candidate shall be returned to the
14 fund not less than thirty days after the general election for those
15 participating candidates who received public moneys for the general
16 election, and otherwise, not less than thirty days after the primary
17 election for those participating candidates who received public moneys
18 solely for the primary election.
19 6. (a) Participating candidates shall pay to the campaign finance
20 board unspent public campaign funds from an election not later than
21 thirty days after all liabilities for the election have been paid and,
22 in any event, not less than twenty days after the date upon which the
23 campaign finance board issues its final audit report for the participat-
24 ing candidate's committee; provided, however, that all unspent public
25 campaign funds for a participating candidate shall be immediately due
26 and payable to the campaign finance board upon its determination that
27 the participating candidate has, without just cause, delayed the post-e-
28 lection audit process. Unspent campaign funds determinations made by the
29 campaign finance board shall be based on the participating candidate
30 committee's receipts and expenditures. The campaign finance board may
31 also consider any other relevant information revealed in the course of
32 its audits or investigations or the investigations by any other agency.
33 (b)(i) A participating candidate may not use receipts for any purpose
34 other than disbursements in the preceding election until all unspent
35 public campaign funds have been repaid. A participating candidate shall
36 have the burden of demonstrating that a post-election expenditure is for
37 the preceding election.
38 (ii) Before repaying unspent public campaign funds, a participating
39 candidate may make post-election expenditures only for routine activ-
40 ities involving nominal costs associated with winding up a campaign and
41 responding to the post-election audit. Such expenditures may include:
42 payment of utility bills and rent; reasonable staff salaries and
43 consultant fees for responding to a post-election audit; reasonable
44 moving expenses related to closing a campaign office; a holiday card
45 mailing to contributors, campaign volunteers, and staff members; thank
46 you notes for contributors, campaign volunteers, and staff members;
47 payment of taxes and other reasonable expenses for compliance with
48 applicable tax laws; and interest expenses. Routine post-election
49 expenditures that may be paid for with unspent campaign funds do not
50 include such items as post-election mailings other than as specifically
51 provided for in this subparagraph; making contributions; making bonus
52 payments or gifts to staff members or volunteers; or holding any post-e-
53 lection day event, including, but not limited to, any meal or any party.
54 Unspent campaign funds may not be used for transition or inauguration
55 activities.
A. 7123 13
1 7. All monies received by the campaign finance board pursuant to this
2 section shall be deposited into the local campaign finance fund pursuant
3 to section ninety-two-gg of the state finance law.
4 § 4. The election law is amended by adding a new section 16-105 to
5 read as follows:
6 § 16-105. Proceedings as to public financing. 1. The determination of
7 eligibility pursuant to section 14-303 of this chapter and any question
8 or issue relating to payments for qualified campaign expenditures pursu-
9 ant to section 14-306 of this chapter may be contested in a proceeding
10 instituted in the Supreme court, Albany county or the county in which
11 the county or municipal office is located by any aggrieved candidate.
12 2. A proceeding with respect to such a determination of eligibility or
13 payment for qualified campaign expenditures pursuant to section 14-306
14 of this chapter shall be instituted within seven days after such deter-
15 mination was made. The campaign finance board shall be made a party to
16 any such proceeding.
17 3. Upon the campaign finance board's failure to receive the amount due
18 from a participating candidate or such candidate's committee after the
19 issuance of written notice of such amount due, as required by subdivi-
20 sion four of section 14-314 of this chapter, such board is authorized to
21 institute a special proceeding or civil action in Supreme Court, Albany
22 county or the county in which the county or municipal office is located,
23 to obtain a judgment for any amounts determined to be payable to the
24 campaign finance board as a result of an examination and audit made
25 pursuant to title three of article fourteen of this chapter.
26 4. The campaign finance board is authorized to institute a special
27 proceeding or civil action in Supreme Court, Albany county or the county
28 in which the county or municipal office is located, to obtain a judgment
29 for civil penalties determined to be payable to the campaign finance
30 board pursuant to section 14-314 of this chapter.
31 § 5. The election law is amended by adding a new section 4-121 to read
32 as follows:
33 § 4-121. Notice to the state board of elections of candidates for
34 county or municipal office. 1. Each county board of elections with which
35 petitions are filed for a county or municipal office shall, not later
36 than the day after the last day to file a petition or certificate of
37 nomination for a general or special election or a certificate of accept-
38 ance, declination or substitution for general, primary or special
39 election for any such office, send to the state board of elections such
40 information about each such petition or certificate as the state board
41 shall require.
42 2. If any such county board of elections should disqualify any such
43 candidate or rule the petition or certificate designating or nominating
44 any such candidate invalid, it shall forthwith notify the state board of
45 elections of such decision.
46 3. If any such county board of elections shall be notified of a deci-
47 sion of a court of competent jurisdiction disqualifying any such candi-
48 date or declaring any such petition invalid or reversing any such deci-
49 sion by such board of elections or another court, such board of
50 elections shall forthwith notify the state board of elections of such
51 decision.
52 4. The state board of elections may prescribe forms for the notices
53 required by this section and shall prescribe the manner in which such
54 notices shall be given.
55 § 6. The state finance law is amended by adding a new section 92-gg to
56 read as follows:
A. 7123 14
1 § 92-gg. Local campaign finance fund. 1. There is hereby established
2 in the custody of the commissioner of taxation and finance a special
3 fund to be known as the local campaign finance fund.
4 2. Such fund shall consist of all revenues received from campaign
5 finance fund check-off pursuant to section six hundred thirty-d of the
6 tax law and all other moneys credited or transferred thereto from any
7 other fund or source pursuant to law. Nothing contained in this section
8 shall prevent the state from receiving grants, gifts, bequests or volun-
9 tary contributions for the purposes of the fund as defined in this
10 section and depositing them into the fund according to law. Monies in
11 the fund shall be kept separate from and not commingled with other funds
12 held in the custody of the commissioner of taxation and finance.
13 3. Moneys of the fund, following appropriation by the governing body
14 of the county or municipality in which the office of the participating
15 candidate is located, may be expended for the purposes of making
16 payments to candidates pursuant to title three of article fourteen of
17 the election law. Moneys shall be paid out of the fund by the commis-
18 sioner of taxation and finance on vouchers certified or approved by the
19 campaign finance board established pursuant to title three of article
20 fourteen of the election law, or the duly designated representative of
21 such board, in the manner prescribed by law, not more than one working
22 day after a voucher duly certified, approved and executed by such board
23 or its representative in the form prescribed by the commissioner of
24 taxation and finance is received by the commissioner of taxation and
25 finance.
26 4. Notwithstanding any provision of law to the contrary, if, in any
27 state fiscal year, the local campaign finance fund lacks the amount of
28 money to pay all claims vouchered by eligible candidates and certified
29 or approved by the campaign finance board, any such deficiency shall be
30 paid, upon audit and warrant of the state comptroller, from funds of the
31 local municipality in which the office of the participating candidate is
32 located not more than one working day after such voucher is received by
33 the state comptroller.
34 5. Commencing in two thousand sixteen, if the surplus in the fund on
35 April first of the year after an election cycle exceeds twenty-five
36 percent of the disbursements from the fund over the previous four years,
37 the excess shall revert to the local municipality for which the surplus
38 funds exist.
39 6. No public funds shall be paid to any participating candidates in a
40 primary election any earlier than the day that such candidate is certi-
41 fied as being on the ballot for such primary election.
42 7. No public funds shall be paid to any participating candidates in a
43 general election any earlier than the day after the day of the primary
44 election held to nominate candidates for such election.
45 8. No public funds shall be paid to any participating candidate who
46 has been disqualified or whose designating petitions have been declared
47 invalid by the appropriate board of elections or a court of competent
48 jurisdiction until and unless such finding is reversed by a higher
49 authority. No payment from the fund in the possession of such a candi-
50 date or such candidate's participating committee on the date of such
51 disqualification or invalidation may thereafter be expended for any
52 purpose except the payment of liabilities incurred before such date. All
53 such moneys shall be repaid to the fund.
54 § 7. The tax law is amended by adding a new section 630-d to read as
55 follows:
A. 7123 15
1 § 630-d. Contribution to local campaign finance fund. Effective for
2 any taxable year commencing on or after January first, two thousand
3 thirteen, an individual in any taxable year may elect to contribute to
4 the local campaign finance fund. Such contribution shall be in the
5 amount of five dollars and shall not reduce the amount of state tax owed
6 by such individual. The commissioner shall include space on the personal
7 income tax return to enable a taxpayer to make such contribution.
8 Notwithstanding any other provision of law all revenues collected pursu-
9 ant to this section shall be credited to the local campaign finance fund
10 and used only for those purposes enumerated in section ninety-two-gg of
11 the state finance law.
12 § 8. Severability. If any clause, sentence, subdivision, paragraph,
13 section or part of title III of article 14 of the election law, as added
14 by section three of this act be adjudged by any court of competent
15 jurisdiction to be invalid, such judgment shall not affect, impair or
16 invalidate the remainder thereof, but shall be confined in its operation
17 to the clause, sentence, subdivision, paragraph, section or part thereof
18 directly involved in the controversy in which such judgment shall have
19 been rendered.
20 § 9. This act shall take effect on the same date as the 2013 Fair
21 Elections Act, as proposed in legislative bills numbers S. 4705 and A.
22 4980-B takes effect; provided, however, candidates will be eligible to
23 participate in the public financing system beginning with the 2014
24 election.
