Add SS195.30 & 195.35, amd SS200.00, 200.03 - 200.05, Pen L; amd Part E S2, Chap 60 of 2015; amd El L,
generally; amd S63, Exec L; amd S157, R & SS L; add SS5-b, 1-u & 1-v, amd S5, ren SS1-u & 1-v to be SS1-w &
1-x, Leg L; add S92-t, amd S95, St Fin L; amd S658, Tax L
Enacts an omnibus ethics reform act of 2015; relates to undisclosed self-dealing, and bribery offenses and defenses; relates to the jurisdiction of the attorney general; relates to the removal of pensions of certain persons convicted of felonies; implements a public campaign financing system; establishes the crime of interfering with a lawful government investigation.
STATE OF NEW YORK
________________________________________________________________________
7870
2015-2016 Regular Sessions
IN ASSEMBLY
May 28, 2015
___________
Introduced by M. of A. LENTOL, O'DONNELL, KAMINSKY -- (at request of the
Department of Law) -- read once and referred to the Committee on
Election Law
AN ACT to amend the penal law, in relation to undisclosed self-dealing;
to amend the penal law, in relation to the descriptions of certain
bribery offenses and defenses; to amend the executive law, in relation
to the jurisdiction of the attorney general (Part A); to amend the
retirement and social security law, in relation to removal of pension
and retirement benefits from persons convicted of certain felonies; to
amend the legislative law, in relation to prohibiting members of the
state legislature from receiving earned income from any source other
then the state; to amend the legislative law, in relation to per diem
allowances to members of the legislature; to amend part E of chapter
60 of the laws of 2015 establishing a commission on legislative, judi-
cial and executive compensation, in relation to salaries of members of
the legislature (Part B); and to amend the election law, in relation
to campaign receipts and expenditures and public financing; to amend
the election law, in relation to contributions from limited liability
companies; to amend the election law, in relation to monies received
and expenditures made by a party committee or constituted committee;
to amend the election law, in relation to restricting campaign
contributions by those with business relationships with the state and
in relation to imposing contribution and receipt limits with respect
to monies received and expenditures made by party committees and
constituted committees; to amend the state finance law, in relation to
the New York state campaign finance fund; and to amend the tax law, in
relation to the New York state campaign finance fund; to amend the
legislative law, in relation to restrictions on political contrib-
utions from lobbyists; to amend the election law, in relation to
restricting campaign funds for personal use (Part C)
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11348-03-5
A. 7870 2
1 Section 1. This act shall be known as the End New York Corruption Now
2 Act.
3 § 2. This act enacts into law major components which are necessary to
4 enact ethics reform for public officials, reform the campaign finance
5 system and expand law enforcement tools to combat public corruption.
6 Each component is wholly contained within a Part identified as Parts A
7 through C. The effective date for each particular provision contained
8 within such Part is set forth in the last section of such Part. Any
9 provision in any section contained within a Part, including the effec-
10 tive date of the Part, which makes a reference to a section "of this
11 act", when used in connection with that particular component, shall be
12 deemed to mean and refer to the corresponding section of the Part in
13 which it is found. Section four of this act sets forth the general
14 effective date of this act.
15 PART A
16 Section 1. The penal law is amended by adding two new sections 195.30
17 and 195.35 to read as follows:
18 § 195.30 Undisclosed self-dealing in the second degree.
19 A person is guilty of undisclosed self-dealing in the second degree
20 when, being a public servant, he or she intentionally engages in conduct
21 or a course of conduct in his or her official capacity in connection
22 with the award of a public contract or public grant or other effort to
23 obtain or retain public business or public funds that is intended to
24 confer an undisclosed benefit on himself, herself, a spouse, domestic
25 partner, child, parent, or sibling of the public servant, a person with
26 whom a public servant has a business or other financial relationship, or
27 a firm in which the public servant has a present or potential interest
28 and thereby obtains or attempts to obtain a benefit for himself,
29 herself, a spouse, domestic partner, child, parent, or sibling of the
30 public servant, a person with whom a public servant has a business or
31 other financial relationship, or a firm in which the public servant has
32 a present or potential interest with a value in excess of three thousand
33 dollars. A benefit is disclosed if its existence is made known prior to
34 the alleged wrongful conduct to either (i) the relevant state or local
35 ethics commission or (ii) the official responsible for the public serv-
36 ant's appointment to his or her position, provided that person is not a
37 participant in the alleged wrongful conduct.
38 Undisclosed self-dealing in the second degree is a class D felony.
39 § 195.35 Undisclosed self-dealing in the first degree.
40 A person is guilty of undisclosed self-dealing in the first degree
41 when, being a public servant, he or she intentionally engages in conduct
42 or a course of conduct in his or her official capacity in connection
43 with the award of a public contract or public grant or other effort to
44 obtain or retain public business or public funds that is intended to
45 confer an undisclosed benefit on himself, herself, a spouse, domestic
46 partner, child, parent, or sibling of the public servant, a person with
47 whom a public servant has a business or other financial relationship, or
48 a firm in which the public servant has a present or potential interest
49 and thereby obtains or attempts to obtain a benefit for himself,
50 herself, a spouse, domestic partner, child, parent, or sibling of the
51 public servant, a person with whom a public servant has a business or
52 other financial relationship, or a firm in which the public servant has
53 a present or potential interest with a value in excess of ten thousand
54 dollars. A benefit is disclosed if its existence is made known prior to
A. 7870 3
1 the alleged wrongful conduct to either (i) the relevant state or local
2 ethics commission or (ii) the official responsible for the public serv-
3 ant's appointment to his or her position, provided that person is not a
4 participant in the alleged wrongful conduct.
5 Undisclosed self-dealing in the first degree is a class C felony.
6 § 2. Section 200.00 of the penal law, as amended by chapter 833 of the
7 laws of 1986, is amended to read as follows:
8 § 200.00 Bribery in the third degree.
9 A person is guilty of bribery in the third degree when he or she
10 confers, or offers or agrees to confer, any benefit upon a public serv-
11 ant [upon an agreement or understanding that] with the intent to influ-
12 ence such public servant's vote, opinion, judgment, action, decision or
13 exercise of discretion as a public servant [will thereby be influenced].
14 Bribery in the third degree is a class D felony.
15 § 3. Section 200.03 of the penal law, as amended by section 18 of
16 subpart A of part H of chapter 55 of the laws of 2014, is amended to
17 read as follows:
18 § 200.03 Bribery in the second degree.
19 A person is guilty of bribery in the second degree when he or she
20 confers, or offers or agrees to confer, any benefit valued in excess of
21 five thousand dollars upon a public servant [upon an agreement or under-
22 standing that] with the intent to influence such public servant's vote,
23 opinion, judgment, action, decision or exercise of discretion as a
24 public servant [will thereby be influenced].
25 Bribery in the second degree is a class C felony.
26 § 4. Section 200.04 of the penal law, as amended by section 19 of
27 subpart A of part H of chapter 55 of the laws of 2014, is amended to
28 read as follows:
29 § 200.04 Bribery in the first degree.
30 A person is guilty of bribery in the first degree when the person
31 confers, or offers or agrees to confer: (1) any benefit upon a public
32 servant [upon an agreement or understanding that] with the intent to
33 influence such public servant's vote, opinion, judgment, action, deci-
34 sion or exercise of discretion as a public servant [will thereby be
35 influenced] in the investigation, arrest, detention, prosecution or
36 incarceration of any person for the commission or alleged commission of
37 a class A felony defined in article two hundred twenty of this part or
38 an attempt to commit any such class A felony; or (2) any benefit valued
39 in excess of one hundred thousand dollars upon a public servant [upon an
40 agreement or understanding that] with the intent to influence such
41 public servant's vote, opinion, judgment, action, decision or exercise
42 of discretion as a public servant [will thereby be influenced].
43 Bribery in the first degree is a class B felony.
44 § 5. Section 200.05 of the penal law is amended to read as follows:
45 § 200.05 Bribery; defense.
46 In any prosecution for bribery[,]: (1) it is a defense that the
47 defendant conferred or agreed to confer the benefit involved upon the
48 public servant involved as a result of conduct of the latter constitut-
49 ing larceny committed by means of extortion, or an attempt to commit the
50 same, or coercion, or an attempt to commit coercion[.]; and (2) it is
51 also a defense that the benefit that the defendant conferred, or offered
52 or agreed to confer, upon the public servant was a legitimate campaign
53 contribution, unless such contribution was made upon an agreement or
54 understanding that such public servant's vote, opinion, judgment,
55 action, decision or exercise of discretion as a public servant would
56 thereby be influenced.
A. 7870 4
1 § 6. Section 63 of the executive law is amended by adding a new subdi-
2 vision 3-a to read as follows:
3 3-a. Investigate, to the extent that the attorney general deems just
4 and proper, the alleged commission of any indictable offense or offenses
5 in violation of law (i) arising under section 195.00, section 195.20,
6 article two hundred, or article four hundred ninety-six of the penal
7 law; or (ii) involving larceny from or an intent to defraud the state,
8 any political subdivision, public authority, or public benefit corpo-
9 ration of the state; or (iii) committed by or in concert with a public
10 servant relating to his or her public office, as those terms are used in
11 the penal law; and where appropriate prosecute the person or persons
12 believed to have committed the same and any crime or offense arising out
13 of such investigation or prosecution or both, including but not limited
14 to appearing before and presenting all such matters to a grand jury.
15 § 7. This act shall take effect immediately, provided, however that:
16 sections one, two, three, four and five of this act shall take effect on
17 the ninetieth day after it shall have become a law.
18 PART B
19 Section 1. Paragraphs (h), (i), and (j) of subdivision 8 of section
20 157 of the retirement and social security law, as amended by section 13
21 of part CC of chapter 56 of the laws of 2015, are amended to read as
22 follows:
23 (h) The proportionality of forfeiture of all or part of the pension to
24 the crime committed; and
25 (i) [The years of service in public office by the defendant where no
26 criminal activity has been found by a court; and
27 (j)] Any such other factors as, in the judgment of the supreme court,
28 justice may require; provided however, that, in determining whether the
29 pension shall be reduced or revoked, the supreme court shall not consid-
30 er the years of service in public office by the defendant where no crim-
31 inal activity was detected or found by a court or appropriate law
32 enforcement agency.
33 § 2. Subdivision 10 of section 157 of the retirement and social secu-
34 rity law, as amended by section 12 of part CC of chapter 56 of the laws
35 of 2015, is amended to read as follows:
36 10. [(a)] Upon a finding by the court by clear and convincing evidence
37 that the defendant knowingly and intentionally committed a crime related
38 to public office, the court may issue an order to the appropriate
39 retirement system to reduce or revoke the defendant's pension to which
40 he or she is otherwise entitled as such a public official. All orders
41 and findings made by the court pursuant to this section shall be served
42 by the attorney general or the district attorney, as the case may be
43 upon the chief administrator of the defendant's retirement system and
44 the defendant.
45 [(b) If the court issues an order pursuant to paragraph (a) of this
46 subdivision, the court shall order payment of a portion of such pension
47 benefit to: (1) the innocent spouse if so requested by such spouse paya-
48 ble at the time the public official would have been eligible for retire-
49 ment if such spouse has not otherwise waived, in writing, his or her
50 right to such benefit; and (2) innocent minor children and other depen-
51 dents pursuant to law of the public official in an amount that the court
52 finds just and proper consistent with the pension benefits to which the
53 public official would be entitled and the portion of those benefits
54 which would be used for the support of such minor children or dependents
A. 7870 5
1 pursuant to law. Such payment to the innocent spouse shall be computed
2 pursuant to paragraph (c) of this subdivision, and payments pursuant to
3 subparagraphs one and two of this paragraph shall be adjusted to reflect
4 interest accrued between the time of such conviction and the time of
5 such payment.
6 (c) When determining the amount of benefits which the defendant's
7 innocent spouse is entitled to receive, the factors contained in para-
8 graph d of subdivision five of part B of section two hundred thirty-six
9 of the domestic relations law shall be considered by the court. However,
10 when determining such apportionment, the court shall not annul or modify
11 any prior court order regarding such benefits.]
12 § 3. The legislative law is amended by adding a new section 5-b to
13 read as follows:
14 § 5-b. Prohibition of outside earned income for members. 1. A member
15 of the legislature shall be prohibited from performing any activity for
16 compensation that results in outside earned income, except as authorized
17 by this section.
18 2. a. For purposes of this section, the term "outside earned income"
19 shall include, but not be limited to, wages, salaries, fees and other
20 forms of compensation for services actually rendered.
21 b. For the purposes of this section, the term "outside earned income"
22 shall not include:
23 (1) salary, benefits and allowances paid by the state;
24 (2) income and allowances attributable to service in the reserves of
25 the armed forces of the United States, national guard or other active
26 military service;
27 (3) royalties from the sale of a book, artistic performance or other
28 intellectual property; provided, however, that no advance fees shall be
29 permitted; or
30 (4) a pension, investment, capital gains or other earnings accrued
31 from prior employment or actual services rendered prior to the member
32 taking office.
33 3. A member of the legislature who knowingly and willfully violates
34 the provisions of this section shall be subject to a civil penalty in an
35 amount not to exceed fifty thousand dollars. Assessment of a civil
36 penalty shall be made by the joint commission on public ethics. Such
37 commission, may, in lieu of or in addition to a civil penalty, refer a
38 violation to the appropriate prosecutor.
39 4. Willful violation of the provisions of this section is punishable
40 as a class A misdemeanor.
41 § 4. Subdivision 2 of section 5 of the legislative law, as added by
42 section 7 of part CC of chapter 56 of the laws of 2015, is amended to
43 read as follows:
44 2. (a) Each member of the legislature, upon verification of attend-
45 ance, which shall be by electronic verification when practicable, in
46 compliance with the policies set forth by the speaker of the assembly
47 and the temporary president of the senate for their respective bodies,
48 shall be eligible to receive payment of actual and necessary travel
49 expenses [and a per diem equivalent to the most recent federal per diem
50 rates published by the general services administration as set forth in
51 41 CFR (Code of Federal Regulations) Part 301, App. A,] for the time in
52 which the member was in travel status in the performance of his or her
53 duties during the months in which the legislature is scheduled to be in
54 regular session. During the months when the legislature is not scheduled
55 to be in regular session, members shall receive such actual and neces-
56 sary travel expenses [and per diems], in compliance with verification
A. 7870 6
1 policies and in accord with standards and limits for reimbursable events
2 set forth by the speaker of the assembly and the temporary president of
3 the senate for their respective bodies. [The per diem allowances includ-
4 ing partial per diem allowances shall be made on audit and warrant of
5 the comptroller on vouchers approved by the temporary president of the
6 senate or his or her designee and speaker of the assembly or his or her
7 designee for their respective houses.]
8 (b) Each house shall make available on its website all documentation
9 otherwise available to the public pursuant to section eighty-eight of
10 the public officers law related to the payment of travel expenses [and
11 per diems].
12 § 5. Subdivision 3 of section 2 of part E of chapter 60 of the laws of
13 2015, establishing a commission on legislative, judicial and executive
14 compensation, is amended to read as follows:
15 3. In discharging its responsibilities under subdivision two of this
16 section, the commission shall take into account all appropriate factors
17 including, but not limited to: the overall economic climate; rates of
18 inflation; changes in public-sector spending; the levels of compensation
19 and non-salary benefits received by executive branch officials and
20 legislators of other states and of the federal government; the levels of
21 compensation and non-salary benefits received by professionals in
22 government, academia and private and nonprofit enterprise; and the
23 state's ability to fund increases in compensation and non-salary bene-
24 fits. The first commission that meets after the effective date of the
25 chapter of the laws of 2015 that amended this subdivision shall recom-
26 mend a level of compensation for members of the legislature that is not
27 less than $112,500 and not more than $174,000. Each subsequent commis-
28 sion shall recommend a salary for members of the legislature not less
29 than the then existing compensation plus an increase commensurate with
30 cost of living adjustments provided to other state employees.
31 § 6. This act shall take effect immediately; provided, however that:
32 (a) section two of this act shall take effect on the same date and in
33 the same manner as part CC of chapter 56 of the laws of 2015 takes
34 effect; and
35 (b) section three of this act shall take effect on January 1, 2017.
36 PART C
37 Section 1. The article heading of article 14 of the election law is
38 amended to read as follows:
39 [Campaign Receipts and Expenditures] CAMPAIGN RECEIPTS AND EXPENDI-
40 TURES; PUBLIC FINANCING
41 § 2. Sections 14-100 through 14-130 of article 14 of the election law
42 are designated title I and a new title heading is added to read as
43 follows:
44 CAMPAIGN RECEIPTS AND EXPENDITURES
45 § 3. Section 14-100 of the election law is amended by adding a new
46 subdivision 15 to read as follows:
47 15. "authorized committee" means the single political committee desig-
48 nated by a candidate to receive all contributions authorized by this
49 title.
50 § 4. Section 3-104 of the election law is amended by adding a new
51 subdivision 9 to read as follows:
52 9. There shall be a unit known as the state board of elections public
53 financing unit established within the state board of elections, which
54 shall be responsible for administering and, with the division of
A. 7870 7
1 election law enforcement, enforcing the requirements of the public
2 financing system set forth in title two of article fourteen of this
3 chapter.
4 § 5. Subdivisions 1 and 10 of section 14-114 of the election law,
5 subdivision 1 as amended and subdivision 10 as added by chapter 79 of
6 the laws of 1992 and paragraphs a and b of subdivision 1 as amended by
7 chapter 659 of the laws of 1994, are amended to read as follows:
8 1. The following limitations apply to all contributions to candidates
9 for election to any public office or for nomination for any such office,
10 or for election to any party positions, and to all contributions to
11 political committees working directly or indirectly with any candidate
12 to aid or participate in such candidate's nomination or election, other
13 than any contributions to any party committee or constituted committee:
14 a. In any election for a public office to be voted on by the voters of
15 the entire state, or for nomination to any such office, no contributor
16 may make a contribution to any candidate or political committee partic-
17 ipating in the state's public campaign financing system as defined in
18 title two of this article, and no such candidate or political committee
19 may accept any contribution from any contributor, which is in the aggre-
20 gate amount greater than: (i) in the case of any nomination to public
21 office, the product of the total number of enrolled voters in the candi-
22 date's party in the state, excluding voters in inactive status, multi-
23 plied by $.005, but such amount shall be not [less than four thousand
24 dollars nor] more than [twelve] five thousand dollars [as increased or
25 decreased by the cost of living adjustment described in paragraph c of
26 this subdivision,] and (ii) in the case of any election to [a] such
27 public office, [twenty-five] five thousand dollars [as increased or
28 decreased by the cost of living adjustment described in paragraph c of
29 this subdivision]; provided however, that the maximum amount which may
30 be so contributed or accepted, in the aggregate, from any candidate's
31 child, parent, grandparent, brother and sister, and the spouse of any
32 such persons, shall not exceed in the case of any nomination to public
33 office an amount equivalent to the product of the number of enrolled
34 voters in the candidate's party in the state, excluding voters in inac-
35 tive status, multiplied by $.025, and in the case of any election for a
36 public office, an amount equivalent to the product of the number of
37 registered voters in the state excluding voters in inactive status,
38 multiplied by $.025.
39 b. In any other election for party position or for election to a
40 public office or for nomination for any such office, no contributor may
41 make a contribution to any candidate or political committee participat-
42 ing in the state's public campaign financing system defined in title two
43 of this article (for those offices or positions covered by that system)
44 and no such candidate or political committee may accept any contribution
45 from any contributor, which is in the aggregate amount greater than: (i)
46 in the case of any election for party position, or for nomination to
47 public office, the product of the total number of enrolled voters in the
48 candidate's party in the district in which he is a candidate, excluding
49 voters in inactive status, multiplied by $.05, and (ii) in the case of
50 any election for a public office, the product of the total number of
51 registered voters in the district, excluding voters in inactive status,
52 multiplied by $.05, however in the case of a nomination within the city
53 of New York for the office of mayor, public advocate or comptroller,
54 such amount shall be not less than four thousand dollars nor more than
55 twelve thousand dollars as increased or decreased by the cost of living
56 adjustment described in paragraph [c] e of this subdivision; in the case
A. 7870 8
1 of an election within the city of New York for the office of mayor,
2 public advocate or comptroller, twenty-five thousand dollars as
3 increased or decreased by the cost of living adjustment described in
4 paragraph [c] e of this subdivision; in the case of a nomination or
5 election for state senator, [four] three thousand dollars [as increased
6 or decreased by the cost of living adjustment described in paragraph c
7 of this subdivision; in the case of an election for state senator, six
8 thousand two hundred fifty dollars as increased or decreased by the cost
9 of living adjustment described in paragraph c of this subdivision]; in
10 the case of an election or nomination for a member of the assembly,
11 [twenty-five hundred] two thousand dollars [as increased or decreased by
12 the cost of living adjustment described in paragraph c of this subdivi-
13 sion; but in no event shall any such maximum exceed fifty thousand
14 dollars or be less than one thousand dollars]; provided however, that
15 the maximum amount which may be so contributed or accepted, in the
16 aggregate, from any candidate's child, parent, grandparent, brother and
17 sister, and the spouse of any such persons, shall not exceed in the case
18 of any election for party position or nomination for public office an
19 amount equivalent to the number of enrolled voters in the candidate's
20 party in the district in which he is a candidate, excluding voters in
21 inactive status, multiplied by $.25 and in the case of any election to
22 public office, an amount equivalent to the number of registered voters
23 in the district, excluding voters in inactive status, multiplied by
24 $.25; or twelve hundred fifty dollars, whichever is greater, or in the
25 case of a nomination or election of a state senator, twenty thousand
26 dollars, whichever is greater, or in the case of a nomination or
27 election of a member of the assembly twelve thousand five hundred
28 dollars, whichever is greater, but in no event shall any such maximum
29 exceed one hundred thousand dollars.
30 c. In any election for a public office to be voted on by the voters
31 of the entire state, or for nomination to any such office, no contribu-
32 tor may make a contribution to any candidate or political committee in
33 connection with a candidate who is not a participating candidate as
34 defined in subdivision fourteen of section 14-200 of this article, and
35 no such candidate or political committee may accept any contribution
36 from any contributor, which is in the aggregate amount greater than:
37 (i) in the case of any nomination to public office, the product of the
38 total number of enrolled voters in the candidate's party in the state,
39 excluding voters in inactive status, multiplied by $.005, but such
40 amount shall be not less than four thousand dollars nor more than five
41 thousand dollars, and (ii) in the case of any election to a public
42 office, five thousand dollars; provided however, that the maximum amount
43 which may be so contributed or accepted, in the aggregate, from any
44 candidate's child, parent, grandparent, brother and sister, and the
45 spouse of any such persons, shall not exceed in the case of any nomi-
46 nation to public office an amount equivalent to the product of the
47 number of enrolled voters in the candidate's party in the state, exclud-
48 ing voters in inactive status, multiplied by $.025, and in the case of
49 any election for a public office, an amount equivalent to the product of
50 the number of registered voters in the state excluding voters in inac-
51 tive status, multiplied by $.025.
52 d. In any other election for party position or for election to a
53 public office or for nomination for any such office, no contributor may
54 make a contribution to any candidate or political committee in
55 connection with a candidate who is not a participating candidate as
56 defined in subdivision fourteen of section 14-200 of this article and no
A. 7870 9
1 such candidate or political committee may accept any contribution from
2 any contributor, which is in the aggregate amount greater than: (i) in
3 the case of any election for party position, or for nomination to public
4 office, the product of the total number of enrolled voters in the candi-
5 date's party in the district in which he is a candidate, excluding
6 voters in inactive status, multiplied by $.05, and (ii) in the case of
7 any election for a public office, the product of the total number of
8 registered voters in the district, excluding voters in inactive status,
9 multiplied by $.05, however in the case of a nomination within the city
10 of New York for the office of mayor, public advocate or comptroller,
11 such amount shall be not less than four thousand dollars nor more than
12 twelve thousand dollars as increased or decreased by the cost of living
13 adjustment described in paragraph e of this subdivision; in the case of
14 an election within the city of New York for the office of mayor, public
15 advocate or comptroller, twenty-five thousand dollars as increased or
16 decreased by the cost of living adjustment described in paragraph e of
17 this subdivision; in the case of a nomination or election for state
18 senator, three thousand dollars; in the case of an election or nomi-
19 nation for a member of the assembly, two thousand dollars; provided
20 however, that the maximum amount which may be so contributed or
21 accepted, in the aggregate, from any candidate's child, parent, grand-
22 parent, brother and sister, and the spouse of any such persons, shall
23 not exceed in the case of any election for party position or nomination
24 for public office an amount equivalent to the number of enrolled voters
25 in the candidate's party in the district in which he is a candidate,
26 excluding voters in inactive status, multiplied by $.25 and in the case
27 of any election to public office, an amount equivalent to the number of
28 registered voters in the district, excluding voters in inactive status,
29 multiplied by $.25; or twelve hundred fifty dollars, whichever is great-
30 er, or in the case of a nomination or election of a state senator, twen-
31 ty thousand dollars, whichever is greater, or in the case of a nomi-
32 nation or election of a member of the assembly twelve thousand five
33 hundred dollars, whichever is greater, but in no event shall any such
34 maximum exceed one hundred thousand dollars.
35 e. At the beginning of each fourth calendar year, commencing in [nine-
36 teen hundred ninety-five] two thousand twenty-one, the state board shall
37 determine the percentage of the difference between the most recent
38 available monthly consumer price index for all urban consumers published
39 by the United States bureau of labor statistics and such consumer price
40 index published for the same month four years previously. The amount of
41 each contribution limit fixed in this subdivision shall be adjusted by
42 the amount of such percentage difference to the closest one hundred
43 dollars by the state board which, not later than the first day of Febru-
44 ary in each such year, shall issue a regulation publishing the amount of
45 each such contribution limit. Each contribution limit as so adjusted
46 shall be the contribution limit in effect for any election held before
47 the next such adjustment.
48 f. Each party or constituted committee may transfer to, or spend to
49 elect or oppose a candidate, or transfer to another party or constituted
50 committee, no more than five thousand dollars per election, as increased
51 or decreased by the cost of living adjustments described in paragraph e
52 of this subdivision except that such committee may in addition to such
53 transfers or expenditures:
54 (i) in a general or special election transfer to, or spend to elect or
55 oppose a candidate, no more than five hundred dollars as increased or
A. 7870 10
1 decreased by the cost of living adjustments described in paragraph e of
2 this subdivision received from each contributor; and
3 (ii) in any election spend without limitation for non-candidate
4 expenditures not designed or intended to elect a particular candidate or
5 candidates.
6 For purposes of this paragraph, "spend to elect or oppose" does not
7 include spending that is independent of the candidate or his or her
8 agents or authorized political committees.
9 g. Notwithstanding any other contribution limit in this section,
10 participating candidates as defined in subdivision fourteen of section
11 14-200 of this article may contribute, out of their own money, three
12 times the applicable contribution limit to their own authorized commit-
13 tee.
14 10. [a.] No contributor may make a contribution to a party or consti-
15 tuted committee and no such committee may accept a contribution from any
16 contributor which, in the aggregate, is greater than [sixty-two thousand
17 five hundred] twenty-five thousand dollars per annum.
18 [b. At the beginning of each fourth calendar year, commencing in nine-
19 teen hundred ninety-five, the state board shall determine the percentage
20 of the difference between the most recent available monthly consumer
21 price index for all urban consumers published by the United States
22 bureau of labor statistics and such consumer price index published for
23 the same month four years previously. The amount of such contribution
24 limit fixed in paragraph a of this subdivision shall be adjusted by the
25 amount of such percentage difference to the closest one hundred dollars
26 by the state board which, not later than the first day of February in
27 each such year, shall issue a regulation publishing the amount of such
28 contribution limit. Such contribution limit as so adjusted shall be the
29 contribution limit in effect for any election held before the next such
30 adjustment.]
31 § 6. Article 14 of the election law is amended by adding a new title
32 II to read as follows:
33 TITLE II
34 PUBLIC FINANCING
35 Section 14-200. Definitions.
36 14-201. Reporting requirements.
37 14-202. Contributions.
38 14-203. Proof of compliance.
39 14-204. Eligibility.
40 14-205. Limits on public financing.
41 14-206. Payment of public matching funds.
42 14-207. Use of public matching funds; qualified campaign expend-
43 itures.
44 14-208. Powers and duties of board.
45 14-209. Audits and repayments.
46 14-210. Enforcement and penalties for violations and other
47 proceedings.
48 14-211. Reports.
49 14-212. Debates for candidates for statewide office.
50 14-213. Severability.
51 § 14-200. Definitions. For the purposes of this title, the following
52 terms shall have the following meanings:
53 1. The term "authorized committee" shall mean the single committee
54 designated by a candidate pursuant to section 14-201 of this title to
55 receive contributions and make expenditures in support of the candi-
56 date's campaign.
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1 2. The term "board" shall mean the state board of elections.
2 3. The term "contribution" shall have the same meaning as appears in
3 subdivision nine of section 14-100 of this article.
4 4. The term "contributor" shall mean any person or entity that makes a
5 contribution.
6 5. The term "covered election" shall mean any primary, general, or
7 special election for nomination for election, or election, to the office
8 of governor, lieutenant governor, attorney general, state comptroller,
9 state senator, or member of the assembly.
10 6. The term "election cycle" shall mean the two year period starting
11 the day after the last general election for candidates for the state
12 legislature and shall mean the four year period starting after the day
13 after the last general election for candidates for statewide office.
14 7. The term "expenditure" shall mean any gift, subscription, advance,
15 payment, or deposit of money or anything of value, or a contract to make
16 any gift, subscription, payment, or deposit of money or anything of
17 value, made in connection with the nomination for election, or election,
18 of any candidate. Expenditures made by contract are deemed made when
19 such funds are obligated.
20 8. The term "fund" shall mean the New York state campaign finance
21 fund.
22 9. The term "immediate family" shall mean a spouse, child, sibling or
23 parent.
24 10. The term "intermediary" shall mean an individual, corporation,
25 partnership, political committee, employee organization or other entity
26 which bundles, causes to be delivered or otherwise delivers any contrib-
27 ution from another person or entity to a candidate or authorized commit-
28 tee, other than in the regular course of business as a postal, delivery
29 or messenger service. Provided, however, that an "intermediary" shall
30 not include spouses, domestic partners, parents, children or siblings of
31 the person making such contribution or a staff member or volunteer of
32 the campaign identified in writing to the state board of elections. Here
33 "causes to be delivered" shall include providing postage, envelopes or
34 other shipping materials for the use of delivering the contribution to
35 the ultimate recipient.
36 11. The term "item with significant intrinsic and enduring value"
37 shall mean any item, including tickets to an event, that are valued at
38 twenty-five dollars or more.
39 12. (a) The term "matchable contribution" shall mean a contribution,
40 contributions or a portion of a contribution or contributions for any
41 covered elections held in the same election cycle, made by a natural
42 person who is a United States citizen and resident in the state of New
43 York to a participating candidate, that has been reported in full to the
44 board in accordance with sections 14-102 and 14-104 of this article by
45 the candidate's authorized committee and has been contributed on or
46 before the day of the applicable primary, general, runoff or special
47 election. Any contribution, contributions, or a portion of a contrib-
48 ution determined to be invalid for matching funds by the board may not
49 be treated as a matchable contribution for any purpose.
50 (b) The following contributions are not matchable:
51 (i) loans;
52 (ii) in-kind contributions of property, goods, or services;
53 (iii) contributions in the form of the purchase price paid for an item
54 with significant intrinsic and enduring value;
55 (iv) transfers from a party or constituted committee;
A. 7870 12
1 (v) anonymous contributions or contributions whose source is not item-
2 ized as required by section 14-201 of this title;
3 (vi) contributions gathered during a previous election cycle;
4 (vii) illegal contributions;
5 (viii) contributions from minors;
6 (ix) contributions from vendors for campaigns; and
7 (x) contributions from lobbyists registered pursuant to subdivision
8 (a) of section one-c of the legislative law.
9 13. The term "nonparticipating candidate" shall mean a candidate for a
10 covered election who fails to file a written certification in the form
11 of an affidavit under section 14-204 of this title by the applicable
12 deadline.
13 14. The term "participating candidate" shall mean any candidate for
14 nomination for election, or election, to the office of governor, lieu-
15 tenant governor, attorney general, state comptroller, state senator, or
16 member of the assembly who files a written certification in the form of
17 an affidavit pursuant to section 14-204 of this title.
18 15. The term "post-election period" shall mean the five years follow-
19 ing an election when a candidate is subject to an audit.
20 16. The term "qualified campaign expenditure" shall mean an expendi-
21 ture for which public matching funds may be used.
22 17. The term "threshold for eligibility" shall mean the amount of
23 matchable contributions that a candidate's authorized committee must
24 receive in total in order for such candidate to qualify for voluntary
25 public financing under this title.
26 18. The term "transfer" shall mean any exchange of funds between a
27 party or constituted committee and a candidate or any of his or her
28 authorized committees.
29 § 14-201. Reporting requirements. 1. Political committee registra-
30 tion. Political committees as defined pursuant to subdivision one of
31 section 14-100 of this article shall register with the board before
32 making any contribution or expenditure. The board shall publish a cumu-
33 lative list of political committees that have registered, including on
34 its webpage, and regularly update it.
35 2. Only one authorized committee per candidate per elective office
36 sought. Before receiving any contribution or making any expenditure for
37 a covered election, each candidate shall notify the board as to the
38 existence of his or her authorized committee that has been approved by
39 such candidate. Each candidate shall have one and only one authorized
40 committee per elective office sought. Each authorized committee shall
41 have a treasurer and is subject to the restrictions found in section
42 14-112 of this article.
43 3. Disclosure reports. (a) Detailed reporting. In addition to each
44 authorized and political committee reporting to the board every contrib-
45 ution and loan received and every expenditure made in the time and
46 manner prescribed by sections 14-102, 14-104 and 14-108 of this article,
47 each authorized and political committee shall also submit disclosure
48 reports on March fifteenth and May fifteenth of each election year
49 reporting to the board every contribution and loan received and every
50 expenditure made. For contributors who make contributions of five
51 hundred dollars or more, each authorized and political committee shall
52 report to the board the occupation, and business address of each
53 contributor, lender, and intermediary. The board shall revise, prepare
54 and post forms on its webpage that facilitate compliance with the
55 requirements of this section.
A. 7870 13
1 (b) Board review. The board's public financing unit shall review each
2 disclosure report filed and shall inform authorized and political
3 committees of relevant questions the unit has concerning: (i) compliance
4 with requirements of this title and of the rules issued by the board;
5 and (ii) qualification for receiving public matching funds pursuant to
6 this title. In the course of this review, the unit shall give authorized
7 and political committees an opportunity to respond to and correct poten-
8 tial violations and give candidates an opportunity to address questions
9 the unit has concerning their matchable contribution claims or other
10 issues concerning eligibility for receiving public matching funds pursu-
11 ant to this title. Nothing in this paragraph shall preclude the unit or
12 the board from subsequently reviewing such disclosure reports and taking
13 any action otherwise authorized under this title.
14 (c) Itemization. Contributions that are not itemized in reports filed
15 with the board shall not be matchable.
16 (d) Option to file more frequently. Participating candidates may file
17 reports of contributions as frequently as once a week on Fridays so that
18 their matching funds may be paid at the earliest allowable date.
19 § 14-202. Contributions. Recipients of funds pursuant to this title
20 shall be subject to the applicable contribution limits set forth in
21 section 14-114 of this article.
22 § 14-203. Proof of compliance. Authorized and political committees
23 shall maintain such records of receipts and expenditures for a covered
24 election as required by the board. Authorized and political committees
25 shall obtain and furnish to the public financing unit any information it
26 may request relating to financial transactions or contributions and
27 furnish such documentation and other proof of compliance with this title
28 as may be requested. In compliance with section 14-108 of this article,
29 authorized and political committees shall maintain copies of such
30 records for a period of five years.
31 § 14-204. Eligibility. 1. Terms and conditions. To be eligible for
32 voluntary public financing under this title, a candidate must:
33 (a) be a candidate in a covered election;
34 (b) meet all the requirements of law to have his or her name on the
35 ballot;
36 (c) in the case of a covered general or special election, be opposed
37 by another candidate on the ballot who is not a write-in candidate;
38 (d) submit a certification in the form of an affidavit, in such form
39 as may be prescribed by the board, that sets forth his or her acceptance
40 of and agreement to comply with the terms and conditions for the
41 provision of such funds in each covered election and such certification
42 shall be submitted at least four months before the election pursuant to
43 a schedule promulgated by the public financing unit of the board;
44 (e) be certified as a participating candidate by the board;
45 (f) not make, and not have made, expenditures from or use his or her
46 personal funds or property or the personal funds or property jointly
47 held with his or her spouse, or unemancipated children in connection
48 with his or her nomination election or election to a covered office
49 except as a contribution to his or her authorized committee in an amount
50 that exceeds three times the applicable contribution limit from an indi-
51 vidual contributor to candidates for the office that he or she is seek-
52 ing;
53 (g) meet the threshold for eligibility set forth in subdivision two of
54 this section;
55 (h) continue to abide by all requirements during the post-election
56 period;
A. 7870 14
1 (i) agree not to expend for campaign purposes any portion of any pre-
2 existing funds raised for any public office or party position prior to
3 the first day of the election cycle for which the candidate seeks
4 certification. Nothing in this paragraph shall be construed to limit, in
5 any way, any candidate or public official from expending any portion of
6 pre-existing campaign funds for any lawful purpose other than those
7 related to his or her campaign; and
8 (j) not have accepted contributions in amounts exceeding the contrib-
9 ution limits set forth for participating candidates in paragraphs a and
10 b of subdivision one of section 14-114 of this article during the
11 election cycle for which the candidate seeks certification;
12 (i) Provided however, that, if a candidate accepted contributions
13 exceeding such limits before certification, such acceptance shall not
14 prevent the candidate from being certified by the board if the candidate
15 immediately pays to the fund or returns to the contributor the portion
16 of any contribution that exceeded the applicable contribution limit.
17 (ii) If the candidate is unable to return such funds immediately
18 because they have already been spent, acceptance of contributions
19 exceeding the limits shall not prevent the candidate from being certi-
20 fied by the board if the candidate submits an affidavit agreeing to pay
21 to the fund all portions of any contributions that exceeded the limit no
22 later than thirty days before the general election. If a candidate
23 provides the board with such an affidavit, any disbursement of public
24 funds to the candidate made under section 14-206 of this title shall be
25 reduced by no more than twenty-five percent until the total amount owed
26 by the candidate is repaid.
27 (iii) Nothing in this section shall be interpreted to require a candi-
28 date who retains funds raised during a previous election cycle to
29 forfeit such funds. Funds raised during a previous election cycle may be
30 retained, but only if the candidate places the funds in escrow.
31 (iv) Contributions received and expenditures made by the candidate or
32 an authorized committee of the candidate prior to the effective date of
33 this title shall not constitute a violation of this title. Unexpended
34 contributions shall be treated the same as campaign surpluses under
35 subparagraph (iii) of this paragraph.
36 2. Threshold for eligibility. (a) The threshold for eligibility for
37 public funding for participating candidates shall be in the case of:
38 (i) Governor, not less than three hundred thousand dollars in matcha-
39 ble contributions including at least three thousand matchable contrib-
40 utions comprised of sums between ten and one hundred seventy-five
41 dollars per contributor, from residents of New York state;
42 (ii) Lieutenant governor, attorney general, and comptroller, not less
43 than one hundred thousand dollars in matchable contributions including
44 at least one thousand matchable contributions comprised of sums between
45 ten and one hundred seventy-five dollars per contributor, from residents
46 of New York state;
47 (iii) State senator, not less than twelve thousand five hundred
48 dollars in matchable contributions including at least one hundred twen-
49 ty-five matchable contributions comprised of sums between ten and one
50 hundred seventy-five dollars per contributor, from residents of the
51 district in which the seat is to be filled; and
52 (iv) Member of the assembly, not less than five thousand dollars in
53 matchable contributions including at least fifty matchable contributions
54 comprised of sums between ten and one hundred seventy-five dollars per
55 contributor, from residents of the district in which the seat is to be
56 filled.
A. 7870 15
1 (b) Any participating candidate meeting the threshold for eligibility
2 in a primary election for one of the foregoing offices shall be deemed
3 to have met the threshold for eligibility for such office in any other
4 subsequent election held in the same calendar year.
5 (c) At the beginning of each fourth calendar year, commencing in two
6 thousand twenty-one, the state board shall determine the percentage of
7 the difference between the most recent available monthly consumer price
8 index for all urban consumers published by the United States bureau of
9 labor statistics and such consumer price index published for the same
10 month four years previously. The amount of each threshold for eligibil-
11 ity fixed in this subdivision shall be adjusted by the amount of such
12 percentage difference to the closest one hundred dollars by the state
13 board which, not later than the first day of February in each such year,
14 shall issue a regulation publishing the amount of each such threshold
15 for eligibility. Each threshold for eligibility as so adjusted shall be
16 the limit in effect for any election held before the next such adjust-
17 ment. The minimum and maximum dollar amounts for the matchable contrib-
18 utions that funds raised must be comprised by to meet the thresholds for
19 eligibility for candidates fixed in this subdivision shall be adjusted
20 by the amount of such percentage difference to the closest one dollar by
21 the state board which, not later than the first day of February in each
22 such year, shall issue a regulation publishing the such minimum and
23 maximum amounts. The minimum and maximum amounts as so adjusted shall
24 be in effect for any election held before the next such adjustment.
25 § 14-205. Limits on public financing. The following limitations apply
26 to the total amounts of public funds that may be provided to a partic-
27 ipating candidate's authorized committee for an election cycle:
28 1. In any primary election, receipt of public funds by participating
29 candidates and by their participating committees shall not exceed:
30 (i) for governor, the sum of eight million dollars;
31 (ii) for lieutenant governor, comptroller or attorney general, the sum
32 of four million dollars;
33 (iii) for senator, the sum of three hundred seventy-five thousand
34 dollars;
35 (iv) for member of the assembly, the sum of one hundred seventy-five
36 thousand dollars.
37 2. In any general or special election, receipt of public funds by a
38 participating candidate's authorized committees shall not exceed the
39 following amounts:
40 Candidates for election to the office of:
41 Governor and lieutenant governor (combined) $10,000,000
42 Attorney general $4,000,000
43 Comptroller $4,000,000
44 Member of senate $375,000
45 Member of assembly $175,000
46 3. No participating candidate for nomination for an office who is not
47 opposed by a candidate on the ballot in a primary election shall be
48 entitled to payment of public matching funds, except that, where there
49 is a contest in such primary election for the nomination of at least one
50 of the two political parties with the highest and second highest number
51 of enrolled members for such office, a participating candidate who is
52 unopposed in the primary election may receive public funds before the
53 primary election, for expenses incurred on or before the date of such
54 primary election, in an amount equal to up to half the sum set forth in
55 paragraph one of this section.
A. 7870 16
1 4. At the beginning of each fourth calendar year, commencing in two
2 thousand twenty-one, the state board shall determine the percentage of
3 the difference between the most recent available monthly consumer price
4 index for all urban consumers published by the United States bureau of
5 labor statistics and such consumer price index published for the same
6 month four years previously. The amount of each public funds limit fixed
7 in this section shall be adjusted by the amount of such percentage
8 difference to the closest one hundred dollars by the state board which,
9 not later than the first day of February in each such year, shall issue
10 a regulation publishing the amount of each such public funds limit. Each
11 public funds limit as so adjusted shall be the limit in effect for any
12 election held before the next such adjustment.
13 § 14-206. Payment of public matching funds. 1. Determination of eligi-
14 bility. No public matching funds shall be paid to an authorized commit-
15 tee unless the public financing unit determines that the participating
16 candidate has met the eligibility requirements of this title. Payment
17 shall not exceed the amounts specified in subdivision two of this
18 section, and shall be made only in accordance with the provisions of
19 this title. Such payment may be made only to the participating candi-
20 date's authorized committee. No public matching funds shall be used
21 except as reimbursement or payment for qualified campaign expenditures
22 actually and lawfully incurred or to repay loans used to pay qualified
23 campaign expenditures.
24 2. Calculation of payment. If the threshold for eligibility is met,
25 the participating candidate's authorized committee shall receive payment
26 for qualified campaign expenditures of six dollars of public matching
27 funds for each one dollar of matchable contributions, made on or after
28 the first day of the election cycle for which the candidate is a partic-
29 ipating candidate, for the first one hundred seventy-five dollars of
30 eligible private funds per contributor, obtained and reported to the
31 board in accordance with the provisions of this title. The maximum
32 payment of public matching funds shall be limited to the amounts set
33 forth in section 14-205 of this title for the covered election.
34 3. At the beginning of each fourth calendar year, commencing in two
35 thousand twenty-one, the state board shall determine the percentage of
36 the difference between the most recent available monthly consumer price
37 index for all urban consumers published by the United States bureau of
38 labor statistics and such consumer price index published for the same
39 month four years previously. The dollar amount of each matchable
40 contribution to be matched as set forth in subdivision two of this
41 section shall be adjusted by the amount of such percentage difference to
42 the closest one dollar by the state board which, not later than the
43 first day of February in each such year, shall issue a regulation
44 publishing the amount of matchable contributions that shall be matched.
45 Each such amount as so adjusted shall be the amount in effect for any
46 election held before the next such adjustment.
47 4. Timing of payment. The public financing unit shall make any payment
48 of public matching funds to participating candidates as soon as is prac-
49 ticable. But in all cases, that unit shall verify eligibility for public
50 matching funds within four days of receiving a campaign contribution
51 report filed in compliance with section 14-104 of this article. Within
52 two days of determining that a candidate for a covered office is eligi-
53 ble for public matching funds, the unit shall pay the applicable match-
54 ing funds owed to the candidate. However, the unit shall not make any
55 payments of public money earlier than the earliest dates for making such
56 payments as provided by this title. If any of such payments would
A. 7870 17
1 require payment on a weekend or federal holiday, payment shall be made
2 on the next business day.
3 5. Electronic funds transfer. The board shall promulgate rules to
4 facilitate electronic funds transfers directly from the fund into an
5 authorized committee's bank account.
6 6. Irregularly scheduled elections. Notwithstanding any other
7 provision of this title, the board shall promulgate rules to provide for
8 the prompt issuance of public matching funds to eligible participating
9 candidates for qualified campaign expenditures in the case of any other
10 covered election held on a day different from that than originally sche-
11 duled including special elections. But in all cases, the public financ-
12 ing unit shall (a) within four days of receiving a report of contrib-
13 utions from a candidate for a covered office claiming eligibility for
14 public matching funds verify that candidate's eligibility for public
15 matching funds; and (b) within two days of determining that the candi-
16 date for a covered office is eligible for public matching funds, the
17 unit shall pay the applicable matching funds owed to the candidate.
18 § 14-207. Use of public matching funds; qualified campaign expendi-
19 tures. 1. Public matching funds provided under the provisions of this
20 title may be used only by an authorized committee for expenditures to
21 further the participating candidate's nomination for election or
22 election, including paying for debts incurred within one year prior to
23 an election to further the participating candidate's nomination for
24 election or election.
25 2. Such public matching funds may not be used for:
26 (a) an expenditure in violation of any law;
27 (b) an expenditure in excess of the fair market value of services,
28 materials, facilities or other things of value received in exchange;
29 (c) an expenditure made after the candidate has been finally disquali-
30 fied from the ballot;
31 (d) an expenditure made after the only remaining opponent of the
32 candidate has been finally disqualified from the general or special
33 election ballot;
34 (e) an expenditure made by cash payment;
35 (f) a contribution or loan or transfer made to or expenditure to
36 support another candidate or political committee or party, committee or
37 constituted committee;
38 (g) an expenditure to support or oppose a candidate for an office
39 other than that which the participating candidate seeks;
40 (h) gifts, except brochures, buttons, signs and other printed campaign
41 material;
42 (i) legal fees to defend against a criminal charge;
43 (j) payments to immediate family members of the participating candi-
44 date; or
45 (k) any expenditure made to challenge the validity of any petition of
46 designation or nomination or any certificate of nomination, acceptance,
47 authorization, declination or substitution.
48 § 14-208. Powers and duties of board. 1. Advisory opinions. The board
49 shall render advisory opinions with respect to questions arising under
50 this title upon the written request of a candidate, an officer of a
51 political committee or member of the public, or upon its own initiative.
52 The board shall promulgate rules regarding reasonable times to respond
53 to such requests. The board shall make public the questions of interpre-
54 tation for which advisory opinions will be considered by the board and
55 its advisory opinions, including by publication on its webpage with
A. 7870 18
1 identifying information redacted as the board determines to be appropri-
2 ate.
3 2. Public information and candidate education. The board shall develop
4 a program for informing candidates and the public as to the purpose and
5 effect of the provisions of this title, including by means of a webpage.
6 The board shall prepare in plain language and make available educational
7 materials, including compliance manuals and summaries and explanations
8 of the purposes and provisions of this title. The board shall prepare or
9 have prepared and make available materials, including, to the extent
10 feasible, computer software, to facilitate the task of compliance with
11 the disclosure and record-keeping requirements of this title.
12 3. Rules and regulations. The board shall have the authority to
13 promulgate such rules and regulations and provide such forms as it deems
14 necessary for the administration of this title.
15 4. Database. The board shall develop an interactive, searchable
16 computer database that shall contain all information necessary for the
17 proper administration of this title including information on contrib-
18 utions to and expenditures by candidates and their authorized committee,
19 independent expenditures in support or opposition of candidates for
20 covered offices, and distributions of moneys from the fund. Such data-
21 base shall be accessible to the public on the board's webpage.
22 5. The board's public financing unit shall work with the enforcement
23 unit to enforce this section.
24 § 14-209. Audits and repayments. 1. Audits. The board shall audit and
25 examine all matters relating to the proper administration of this title
26 and shall complete such audit no later than two years after the election
27 in question. Every candidate who receives public funds under this title
28 shall be audited by the board. The cost of complying with a post-elec-
29 tion audit shall be borne by the candidate's authorized committee using
30 public funds, private funds or any combination of such funds. Candi-
31 dates who run in both a primary and general election must maintain a
32 reserve of three percent of the public funds received to comply with the
33 post-election audit. The board shall issue to each campaign audited a
34 final audit report that details its findings.
35 2. Repayments. (a) If the board determines that any portion of the
36 payment made to a candidate's authorized committee from the fund was in
37 excess of the aggregate amount of payments that such candidate was
38 eligible to receive pursuant to this title, it shall notify such commit-
39 tee and such committee shall pay to the board an amount equal to the
40 amount of excess payments. Provided, however, that if the erroneous
41 payment was the result of an error by the board, then the erroneous
42 payment will be deducted from any future payment, if any, and if no
43 payment is to be made then neither the candidate nor the committee shall
44 be liable to repay the excess amount to the board. The candidate, the
45 treasurer and the candidate's authorized committee are jointly and
46 severably liable for any repayments to the board.
47 (b) If the board determines that any portion of the payment made to a
48 candidate's authorized committee from the fund was used for purposes
49 other than qualified campaign expenditures and such expenditures were
50 not approved by the board, it shall notify such committee of the amount
51 so disqualified and such committee shall pay to the board an amount
52 equal to such disqualified amount. The candidate, the treasurer and the
53 candidate's authorized committee are jointly and severably liable for
54 any repayments to the board.
55 (c) If the total of payments from the fund received by a participating
56 candidate and his or her authorized committee exceed the total campaign
A. 7870 19
1 expenditures of such candidate and authorized committee for all covered
2 elections held in the same calendar year or for a special election to
3 fill a vacancy, such candidate and committee shall use such excess funds
4 to reimburse the fund for payments received by such authorized committee
5 from the fund during such calendar year or for such special election.
6 Participating candidates shall pay to the board unspent public campaign
7 funds from an election not later than twenty-seven days after all
8 liabilities for the election have been paid and in any event, not later
9 than the day on which the board issues its final audit report for the
10 participating candidate's authorized committee; provided, however, that
11 all unspent public campaign funds for a participating candidate shall be
12 immediately due and payable to the board upon a determination by the
13 board that the participant has delayed the post-election audit. A
14 participating candidate may make post-election expenditures with public
15 funds only for routine activities involving nominal cost associated with
16 winding up a campaign and responding to the post-election audit. Noth-
17 ing in this title shall be construed to prevent a candidate or his or
18 her authorized committee from using campaign contributions received from
19 private contributors for otherwise lawful expenditures.
20 3. The board shall promulgate regulations for the certification of the
21 amount of funds payable by the comptroller, from the fund established
22 pursuant to section ninety-two-t of the state finance law, to a partic-
23 ipating candidate that has qualified to receive such payment. These
24 regulations shall include the promulgation and distribution of forms on
25 which contributions and expenditures are to be reported, the periods
26 during which such reports must be filed and the verification required.
27 The board shall institute procedures which will make possible payment by
28 the fund within four business days after receipt of the required forms
29 and verifications.
30 § 14-210. Enforcement and penalties for violations and other
31 proceedings. 1. Civil penalties. Violations of any provision of this
32 title or rule promulgated pursuant to this title shall be subject to a
33 civil penalty in an amount not in excess of fifteen thousand dollars.
34 2. Notice of violation and opportunity to contest. The board shall:
35 (a) determine whether a violation of any provision of this title or
36 rule promulgated hereunder has been committed;
37 (b) give written notice and the opportunity to contest before an inde-
38 pendent hearing officer to each person or entity it has reason to
39 believe has committed a violation; and
40 (c) if appropriate, assess penalties for violations, following such
41 notice and opportunity to contest.
42 3. Criminal conduct. Any person who knowingly and willfully furnishes
43 or submits false statements or information to the board in connection
44 with its administration of this title, shall be guilty of a misdemeanor
45 in addition to any other penalty as may be imposed under this chapter or
46 pursuant to any other law. The board shall seek to recover any public
47 matching funds obtained as a result of such criminal conduct.
48 4. Proceedings as to public financing. (a) The determination of eligi-
49 bility pursuant to this title and any question or issue relating to
50 payments for campaign expenditures pursuant to this title may be
51 contested in a proceeding instituted in the Supreme court, Albany coun-
52 ty, by any aggrieved candidate.
53 (b) A proceeding with respect to such a determination of eligibility
54 or payment for qualified campaign expenditures pursuant to this chapter
55 shall be instituted within fourteen days after such determination was
56 made. The board shall be made a party to any such proceeding.
A. 7870 20
1 (c) Upon the board's failure to receive the amount due from a partic-
2 ipating candidate or such candidate's authorized committee after the
3 issuance of written notice of such amount due, as required by this
4 title, the board is authorized to institute a special proceeding or
5 civil action in Supreme Court, Albany county, to obtain a judgment for
6 any amounts determined to be payable to the board as a result of an
7 examination and audit made pursuant to this title or to obtain such
8 amounts directly from the candidate or authorized committee after a
9 hearing at the state board of elections.
10 (d) The board is authorized to institute a special proceeding or civil
11 action in Supreme Court, Albany county, to obtain a judgment for civil
12 penalties determined to be payable to the board pursuant to this title
13 or to impose such penalty directly after a hearing at the state board of
14 elections.
15 § 14-211. Reports. The board shall review and evaluate the effect of
16 this title upon the conduct of election campaigns and shall submit a
17 report to the legislature on or before January first, two thousand twen-
18 ty, and every third year thereafter, and at any other time upon the
19 request of the governor and at such other times as the board deems
20 appropriate. These reports shall include:
21 1. a list of the participating and nonparticipating candidates in
22 covered elections and the votes received by each candidate in those
23 elections;
24 2. the amount of contributions and loans received, and expenditures
25 made, on behalf of these candidates;
26 3. the amount of public matching funds each participating candidate
27 received, spent, and repaid pursuant to this title;
28 4. analysis of the effect of this title on political campaigns,
29 including its effect on the sources and amounts of private financing,
30 the level of campaign expenditures, voter participation, the number of
31 candidates, the candidates' ability to campaign effectively for public
32 office, and the diversity of candidates seeking and elected to office;
33 and
34 5. recommendations for amendments to this title, including changes in
35 contribution limits, thresholds for eligibility, and any other features
36 of the system.
37 § 14-212. Debates for candidates for statewide office. The board
38 shall promulgate regulations to facilitate debates among participating
39 candidates who seek election to statewide office. Participating candi-
40 dates are required to participate in one debate before each election for
41 which the candidate receives public funds, unless the participating
42 candidate is running unopposed. Nonparticipating candidates may partic-
43 ipate in such debates.
44 § 14-213. Severability. If any clause, sentence, subdivision, para-
45 graph, section or part of this title be adjudged by any court of compe-
46 tent jurisdiction to be invalid, such judgment shall not affect, impair
47 or invalidate the remainder thereof, but shall be confined in its opera-
48 tion to the clause, sentence, subdivision, paragraph, section or part
49 thereof directly involved in the controversy in which such judgment
50 shall have been rendered.
51 § 7. The state finance law is amended by adding a new section 92-t to
52 read as follows:
53 § 92-t. New York state campaign finance fund. 1. There is hereby
54 established in the joint custody of the state comptroller and the
55 commissioner of taxation and finance a fund to be known as the New York
56 state campaign finance fund.
A. 7870 21
1 2. Such fund shall consist of all revenues received from the New York
2 state campaign finance fund check-off pursuant to subsection (h) of
3 section six hundred fifty-eight of the tax law, from the abandoned prop-
4 erty fund pursuant to section ninety-five of this article, from the
5 general fund, and from all other moneys credited or transferred thereto
6 from any other fund or source pursuant to law. Such fund shall also
7 receive contributions from private individuals, organizations, or other
8 persons to fulfill the purposes of the public financing system.
9 3. Moneys of the fund, following appropriation by the legislature, may
10 be expended for the purposes of making payments to candidates pursuant
11 to title II of article fourteen of the election law and for administra-
12 tive expenses related to the implementation of article fourteen of the
13 election law. Moneys shall be paid out of the fund by the state comp-
14 troller on vouchers certified or approved by the state board of
15 elections, or its duly designated representative, in the manner
16 prescribed by law, not more than four working days after such voucher is
17 received by the state comptroller.
18 4. Notwithstanding any provision of law to the contrary, if, in any
19 state fiscal year, the state campaign finance fund lacks the amount of
20 money to pay all claims vouchered by eligible candidates and certified
21 or approved by the state board of elections, any such deficiency shall
22 be paid by the state comptroller, from funds deposited in the general
23 fund of the state not more than four working days after such voucher is
24 received by the state comptroller.
25 5. Commencing in two thousand seventeen, if the surplus in the fund on
26 April first of the year after a year in which a governor is elected
27 exceeds twenty-five percent of the disbursements from the fund over the
28 previous four years, the excess shall revert to the general fund of the
29 state.
30 6. No public funds shall be paid to any participating candidates in a
31 primary election any earlier than thirty days after designating
32 petitions, independent nominating petitions, or certificates of nomi-
33 nation have been filed and not less than forty-five days before such
34 election.
35 7. No public funds shall be paid to any participating candidates in a
36 general election any earlier than the day after the day of the primary
37 election held to nominate candidates for such election.
38 8. No public funds shall be paid to any participating candidates in a
39 special election any earlier than the day after the last day to file
40 certificates of party nomination for such special election.
41 9. No public funds shall be paid to any participating candidate who
42 has been disqualified or whose designating petitions have been declared
43 invalid by the appropriate board of elections or a court of competent
44 jurisdiction until and unless such finding is reversed by a higher court
45 in a final judgment. No payment from the fund in the possession of such
46 a candidate or such candidate's participating committee on the date of
47 such disqualification or invalidation may thereafter be expended for any
48 purpose except the payment of liabilities incurred before such date.
49 All such moneys shall be repaid to the fund.
50 § 8. Section 95 of the state finance law is amended by adding a new
51 subdivision 5 to read as follows:
52 5. Notwithstanding any provision of this section authorizing the
53 transfer of any moneys in the abandoned property fund to the general
54 fund, in January of each year in which a state general election is to be
55 held pursuant to law, or at least six weeks prior to any state special
56 election, the comptroller, upon warrant or voucher by the state board of
A. 7870 22
1 elections or its duly appointed representative, shall transfer moneys of
2 the abandoned property fund into the campaign finance fund pursuant to
3 section ninety-two-t of this article. On March thirty-first of the year
4 following such general election year, such board shall transfer to the
5 general fund any surplus moneys of the campaign finance fund as of such
6 date.
7 § 9. Section 658 of the tax law is amended by adding a new subsection
8 (h) to read as follows:
9 (h) New York state campaign finance fund check-off. (1) For each taxa-
10 ble year beginning on and after January first, two thousand fifteen,
11 every resident taxpayer whose New York state income tax liability for
12 the taxable year for which the return is filed is forty dollars or more
13 may designate on such return that forty dollars be paid into the New
14 York state campaign finance fund established by section ninety-two-t of
15 the state finance law. Where a husband and wife file a joint return and
16 have a New York state income tax liability for the taxable year for
17 which the return is filed is eighty dollars or more, or file separate
18 returns on a single form, each such taxpayer may make separate desig-
19 nations on such return of forty dollars to be paid into the New York
20 state campaign finance fund.
21 (2) The commissioner shall transfer to the New York state campaign
22 finance fund, established pursuant to section ninety-two-t of the state
23 finance law, an amount equal to forty dollars multiplied by the number
24 of designations.
25 (3) For purposes of this subsection, the income tax liability of an
26 individual for any taxable year is the amount of tax imposed under this
27 article reduced by the sum of the credits (as shown in his or her
28 return) allowable under this article.
29 (4) The department shall include a place on every personal income tax
30 return form to be filed by an individual for a tax year beginning on or
31 after January first, two thousand fifteen, for such taxpayer to make the
32 designations described in paragraph one of this subsection. Such return
33 form shall contain a concise explanation of the purpose of such optional
34 designations.
35 (5) At the beginning of each fourth calendar year, commencing in two
36 thousand twenty-one, the department shall determine the percentage of
37 the difference between the most recent available monthly consumer price
38 index for all urban consumers published by the United States bureau of
39 labor statistics and such consumer price index published for the same
40 month four years previously. Each dollar amount set out in paragraph one
41 of this subsection shall be adjusted by the amount of such percentage
42 difference to the closest one dollar by the department, which shall
43 issue a regulation publishing the amount of each such dollar amount.
44 Each dollar amount as so adjusted shall govern the operation of the
45 state campaign finance fund check-off before the next such adjustment.
46 § 10. Subdivision 2 of section 14-120 of the election law, as added by
47 chapter 79 of the laws of 1992, is amended to read as follows:
48 2. Notwithstanding subdivision one of this section, a partnership, as
49 defined in section ten of the partnership law, or a limited liability
50 company, as defined in section one hundred two of the limited liability
51 company law, may be considered a separate entity for the purposes of
52 this section, and as such may make contributions in the name of said
53 partnership or limited liability company without attributing such
54 contributions to the individual members of the partnership or limited
55 liability company provided that any such contribution made by a partner-
56 ship or limited liability company to a candidate or to a political
A. 7870 23
1 committee, shall not exceed[,] twenty-five hundred dollars. In the event
2 that such partnership or limited liability company contribution to any
3 such candidate or political committee exceeds twenty-five hundred
4 dollars, the aggregate amount of such contribution shall be attributed
5 to each partner or limited liability company member whose share of the
6 contribution exceeds ninety-nine dollars.
7 § 11. Subdivision 3 of section 14-124 of the election law, as amended
8 by chapter 71 of the laws of 1988, is amended to read as follows:
9 [3. The contribution and receipt limits of this article shall not
10 apply to monies received and expenditures made by a party committee or
11 constituted committee to maintain a permanent headquarters and staff and
12 carry on ordinary activities which are not for the express purpose of
13 promoting the candidacy of specific candidates.]
14 § 12. The election law is amended by adding a new section 14-125 to
15 read as follows:
16 § 14-125. New York state business contract database. 1. a. As used in
17 this section:
18 (i) the term "business relationships with the state" shall mean any
19 contract for the procurement of goods, services or construction that is
20 entered into or in effect with the state of New York or any agency or
21 entity affiliated thereto not awarded through a competitive bid process
22 pursuant to articles nine and eleven of the state finance law. Business
23 relationships with the state shall not mean any person or entity
24 rejected from participation in such a contract or any person or entity
25 not participating in such a contract within twenty-four months of any
26 election.
27 (ii) the term "New York state business contract database" shall mean a
28 database created, operated, maintained and updated by the state comp-
29 troller accessible to the public which contains the names of persons who
30 have business relationships with the state. Such database shall provide
31 a unique identifier assigned by the state comptroller for each person
32 who has a business relationship with the state and shall be created,
33 operated, maintained and updated by the state comptroller in a manner so
34 as to ensure its reasonable accuracy and completeness; provided, howev-
35 er, that in no event shall such database be updated less frequently than
36 once a month in any general election year. Such database shall enable
37 members of the public to determine if a given person has a business
38 relationship with the state.
39 (iii) the term "person" shall include any chief executive officer,
40 chief financial officer or chief operating officer of such entity or
41 persons serving in an equivalent capacity, any person employed in a
42 senior managerial capacity regarding such entity, or any person with an
43 interest in such entity which exceeds ten percent of the value of such
44 entity at fair market value.
45 (iv) the term "senior managerial capacity" shall mean a high level
46 supervisory capacity, either by virtue of title or duties, in which
47 substantial discretion and oversight is exercised over the solicitation,
48 letting or administration of business transactions with the state,
49 including contracts, franchises, concession, grants, economic develop-
50 ment agreements and application for land use approvals.
51 b. Any database maintained by the comptroller as of the effective date
52 of this section may serve as the New York state business contract data-
53 base upon certification by the comptroller to the state board of
54 elections that such database fulfills the requirements of this section.
55 Every state agency or authority of the state including any entity affil-
56 iated thereto shall provide the comptroller with such information as is
A. 7870 24
1 necessary to construct, modify and maintain such database in a timely
2 manner.
3 2. a. Neither a candidate participating in the voluntary campaign
4 finance program established pursuant to this article, nor a political
5 committee of such candidate shall accept contributions for a covered
6 election which in the aggregate exceeds four hundred dollars from a
7 person or entity who has a business relationship with the state.
8 b. Neither a candidate who does not participate in a voluntary
9 campaign finance program pursuant to this article nor a political
10 committee of such candidate shall accept contributions for a covered
11 election which in the aggregate exceeds four hundred dollars from a
12 person or entity who has a business relationship with the state.
13 c. No contribution pursuant to this section to a candidate or to a
14 political committee of such candidate shall be eligible for matching
15 contributions pursuant to title two of this article.
16 d. If the state board of elections determines that any contribution to
17 a candidate or to the political committee of such candidate violates the
18 provisions of this section, such board shall notify such candidate with-
19 in twenty days of such determination and such candidate or candidate's
20 political committee shall make a reasonable attempt to return such
21 contribution to the contributor; provided, however, that if such candi-
22 date or the political committee of such candidate is unable to return
23 such contribution, such monies shall be paid to the state board of
24 elections for payment into the New York state campaign finance fund
25 pursuant to section ninety-two-t of the state finance law.
26 e. When publicly reporting campaign contributions, where applicable,
27 the board of elections shall incorporate the unique identifier assigned
28 by the state comptroller for any contributor with a business relation-
29 ship with the state.
30 f. The state comptroller and the state board of elections shall
31 promulgate such rules and regulations as the comptroller and the board
32 deem necessary for the administration of this section.
33 § 13. Sections 1-u and 1-v of the legislative law, section 1-v as
34 relettered by chapter 1 of the laws of 2005, are renumbered sections 1-w
35 and 1-x and two new sections 1-u and 1-v are added to read as follows:
36 § 1-u. Restrictions on political contributions by lobbyists. A lobby-
37 ist shall not solicit, make or transmit a contribution or a request for
38 a contribution from or to any person, including a political committee
39 for the benefit of a public official or party committee, for election to
40 any state or municipal corporation office; except that a lobbyist may
41 make a political contribution up to two hundred fifty dollars per candi-
42 date per election; provided however, that for state level public offi-
43 cials, such contribution may only be made between July first and Decem-
44 ber thirty-first.
45 § 1-v. Restrictions on acceptance of political contributions by public
46 officials. A public official shall not knowingly accept, solicit, or
47 transmit a contribution or a request for a contribution for himself or
48 herself or any public official, political committee, or candidate from
49 or on behalf of any lobbyist regulated by this article, except that a
50 public official may accept political contributions from a lobbyist, up
51 to two hundred fifty dollars per election; provided however, that for
52 state level public officials, such contribution may only be made between
53 July first and December thirty-first.
54 § 14. Paragraphs (iii) and (iv) of subdivision 3 of section 14-130 of
55 the election law, as added by section 9 of part CC of chapter 56 of the
56 laws of 2015, are amended to read as follows:
A. 7870 25
1 (iii) clothing[, other than items that are] to be used [in the
2 campaign or in the execution of the duties of public office or party
3 position] by the candidate or office holder or a member of the candi-
4 date's or office holder's family;
5 (iv) tuition payments [unrelated to a political campaign or the hold-
6 ing of a public office or party position];
7 § 15. Severability. If any clause, sentence, subdivision, paragraph,
8 section or part of title II of article 14 of the election law, as added
9 by section six of this act be adjudged by any court of competent juris-
10 diction to be invalid, such judgment shall not affect, impair or invali-
11 date the remainder thereof, but shall be confined in its operation to
12 the clause, sentence, subdivision, paragraph, section or part thereof
13 directly involved in the controversy in which such judgment shall have
14 been rendered.
15 § 16. This act shall take effect immediately; provided, however, all
16 state legislative candidates will be eligible to participate in volun-
17 tary public financing beginning with the 2017 primary election and all
18 other state candidates, including those in irregularly scheduled
19 elections, will be eligible to participate in voluntary public financing
20 beginning with the 2019 primary election.
21 § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
22 sion, section or part of this act shall be adjudged by any court of
23 competent jurisdiction to be invalid, such judgment shall not affect,
24 impair, or invalidate the remainder thereof, but shall be confined in
25 its operation to the clause, sentence, paragraph, subdivision, section
26 or part thereof directly involved in the controversy in which such judg-
27 ment shall have been rendered. It is hereby declared to be the intent of
28 the legislature that this act would have been enacted even if such
29 invalid provisions had not been included herein.
30 § 4. This act shall take effect immediately provided, however, that
31 the applicable effective date of Parts A through C of this act shall be
32 as specifically set forth in the last section of such Parts.
