Desig SS14-100 - 14-130 to be Title I, add Title Head, Art 14 Title II SS14-200 - 14-224, 16-103 & 4-115, El
L; add S359-gg, Gen Bus L; add S92-t, St Fin L; add S630-c, Tax L
Enacts the "2012 fair elections act"; relates to providing for optional partial public financing of certain election campaigns in this state; relates to identification of the source of certain political contributions.
STATE OF NEW YORK
________________________________________________________________________
9885--D
IN ASSEMBLY
April 19, 2012
___________
Introduced by M. of A. SILVER, MILLMAN, WRIGHT, WEINSTEIN, GOTTFRIED,
PEOPLES-STOKES, KAVANAGH -- Multi-Sponsored by -- M. of A. ABINANTI,
BENEDETTO, BRAUNSTEIN, BRENNAN, BRINDISI, CAHILL, CANESTRARI, CLARK,
COLTON, COOK, DINOWITZ, ENGLEBRIGHT, FARRELL, GALEF, GANTT, GLICK,
GUNTHER, HEVESI, HOOPER, JACOBS, JAFFEE, LANCMAN, LATIMER, LENTOL,
LIFTON, LUPARDO, McENENY, NOLAN, O'DONNELL, ORTIZ, PAULIN, PERRY,
QUART, REILLY, P. RIVERA, ROSENTHAL, SWEENEY, WEISENBERG -- read once
and referred to the Committee on Election Law -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee -- again reported from said committee with amendments,
ordered reprinted as amended and recommitted to said committee --
again reported from said committee with amendments, ordered reprinted
as amended and recommitted to said committee -- reported and referred
to the Committee on Codes -- reported and referred to the Committee on
Ways and Means -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the election law, in relation to enacting the "2012 Fair
Elections Act"; to amend the election law, the state finance law and
the tax law, in relation to providing for optional partial public
financing of certain election campaigns in this state; and to amend
the general business law, in relation to additional surcharges
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 "2012 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 state elective offices and constitutional convention delegates.
10 § 2-a. Sections 14-100, 14-102, 14-104, 14-106, 14-108, 14-110,
11 14-112, 14-114, 14-116, 14-118, 14-120, 14-122, 14-124, 14-126, 14-127,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
A LBD15437-12-2
A. 9885--D 2
1 14-128 and 14-130 of the election law are designated title 1 and a new
2 title heading is added to read as follows:
3 RECEIPTS AND EXPENDITURES; GENERAL
4 § 3. Article 14 of the election law is amended by adding a new title 2
5 to read as follows:
6 TITLE II
7 PUBLIC FINANCING
8 Section 14-200. Definitions.
9 14-202. Reporting requirements.
10 14-203. Eligibility.
11 14-204. Qualified campaign expenditures.
12 14-206. Optional public financing.
13 14-208. Contribution and receipt limitations.
14 14-210. Limitations on the receipt of public funds.
15 14-212. Campaign finance board; general powers and duties.
16 14-214. Examinations and audits.
17 14-216. Civil enforcement.
18 14-218. Criminal penalties.
19 14-220. Reports.
20 14-222. Debates.
21 14-224. Distributions from campaign finance fund.
22 § 14-200. Definitions. As used in this title, unless another meaning
23 is clearly indicated:
24 1. The term "board" or "campaign finance board" means the board
25 created by section 14-212 of this title to administer the campaign
26 finance fund.
27 2. The term "eligible candidate" shall mean a candidate for nomination
28 or election to any of the offices of governor, lieutenant governor,
29 comptroller, attorney general, member of the state legislature, at-large
30 delegate to a constitutional convention or district delegate to a
31 constitutional convention.
32 3. The term "participating committee" shall mean a single authorized
33 political committee which a candidate certifies is the committee that
34 will solely be used to participate in the public financing system estab-
35 lished by this title after January first of the year in which the prima-
36 ry, general or special election is held for the public office sought. A
37 multi-candidate committee may not be a participating committee.
38 4. The term "participating candidate" shall mean a candidate who is
39 eligible to participate in the optional public financing system estab-
40 lished by this title, has met the threshold for eligibility and has
41 elected to participate in the public financing system.
42 5. The term "nonparticipating candidate" shall mean a candidate for
43 any office eligible for optional public financing under this title for a
44 covered election who fails to file a statement in the form of an affida-
45 vit pursuant to section 14-206 of this title.
46 6. The term "matchable contributions" shall mean that portion of the
47 aggregate contributions made (a) in the case of a primary or general
48 election, after January first of the year in which the primary or gener-
49 al election is held for the public office sought or (b) in the case of a
50 special election, within six months of such election by natural persons
51 resident in the state of New York to a candidate for nomination or
52 election to any of the offices covered by the provisions of this title
53 which do not exceed two hundred fifty dollars, which have been reported
54 in full by the candidate's participating committee to the campaign
55 finance board, including the contributor's full name and residential
56 address. "Matchable contributions" shall be the net amount of any mone-
A. 9885--D 3
1 tary contribution realized by a candidate or designated committee after
2 deducting the reasonable value of any goods or services provided the
3 contributor in connection with the contribution, except that contrib-
4 utions from any person who has received a payment or anything of value
5 from such committee or from a person who is an officer, director or
6 employee of, or a person who has a ten percent or greater ownership
7 interest in any entity which has received such a payment or thing of
8 value shall not be matchable. A loan may not be treated as a matchable
9 contribution.
10 7. The term "qualified campaign expenditure" shall mean an expenditure
11 for which public funds may be used.
12 8. The term "fund" shall mean the New York state campaign finance fund
13 created by section ninety-two-t of the state finance law.
14 9. The term "threshold for eligibility" shall mean the amount of total
15 matchable contributions that the participating committee of an otherwise
16 eligible candidate must receive, as required by section 14-203 of this
17 title, in order to qualify for optional public financing pursuant to
18 this title.
19 10. The term "contribution" shall have the same meaning as in subdivi-
20 sion nine of section 14-100 of this article.
21 § 14-202. Reporting requirements. 1. Every participating candidate
22 shall not designate more than one authorized committee. Before receiving
23 any contribution or making any expenditure for a covered election, each
24 participating candidate shall notify the state board of elections and
25 the board as to the existence of his or her authorized committee that
26 has been designated and approved by such candidate. Each such authorized
27 committee shall, before opening a committee bank account, receiving any
28 contribution or making any expenditure for a covered election:
29 (a) designate a treasurer; and
30 (b) obtain a tax identification number from the internal revenue
31 service.
32 2. Disclosure. (a) Every participating candidate shall file financial
33 disclosure reports with the state board of elections as required by
34 title one of this article. Copies of such reports shall also be submit-
35 ted to the campaign finance board created pursuant to this article at
36 the same time such reports are filed with the state board of elections.
37 (b) The campaign finance board shall review each disclosure report
38 filed with the state board of elections pursuant to title one of this
39 article and shall inform participating candidates and political commit-
40 tees including the authorized committee, of relevant questions the
41 campaign finance board has concerning: (i) compliance with requirements
42 of this title and of the rules issued by the campaign finance board; and
43 (ii) qualification for receiving public matching funds pursuant to this
44 title. In the course of such review, the campaign finance board shall
45 give candidates and political committees including the authorized
46 committee, an opportunity to respond to and correct potential violations
47 and give candidates an opportunity to address questions the board has
48 concerning their matchable contribution claims or other issues concern-
49 ing eligibility for receiving public matching funds pursuant to this
50 title. Nothing in this paragraph shall preclude the board from subse-
51 quently reviewing such a disclosure report and taking any action other-
52 wise authorized by this title.
53 (c) Only itemized contributions contained in reports filed with the
54 state board of elections shall be eligible for matching funds pursuant
55 to this title.
A. 9885--D 4
1 § 14-203. Eligibility. 1. To be eligible for optional public financing
2 under this title, a candidate for nomination or election must:
3 (a) Meet all the requirements of this chapter and other provisions of
4 law to have his or her name on the ballot;
5 (b) Be a candidate for statewide office, the state legislature or
6 delegate to a constitutional convention at a primary, general or special
7 election and meet the threshold for eligibility set forth in subdivision
8 two of this section;
9 (c) Elect to participate in the public financing system established by
10 this title not later than seven days after the last day to file desig-
11 nating petitions for the office such candidate is seeking or, in the
12 case of a special election, not later than the last day to file nominat-
13 ing certificates for such office;
14 (d) Agree to obtain and furnish to the campaign finance board any
15 evidence it may reasonably request relating to his or her campaign
16 expenditures or contributions and furnish such other proof of compliance
17 with this title as may be requested by the board;
18 (e) Have a single authorized political committee which he or she
19 certifies as the participating committee for the purposes of this title;
20 and
21 (f) Agree to identify accurately in all campaign materials the person
22 or entity that paid for such campaign material.
23 2. The threshold for eligibility for public funding for candidates in
24 a primary, general or special election for the following offices shall
25 be:
26 (a) Governor in a primary or general election. Not less than six
27 hundred fifty thousand dollars from at least six thousand five hundred
28 matchable contributions made up of sums of up to two hundred fifty
29 dollars per individual contributor who resides in New York state.
30 (b) Lieutenant governor in a primary election and comptroller or
31 attorney general in a primary or general election. Not less than two
32 hundred thousand dollars from at least two thousand matchable contrib-
33 utions made up of sums of up to two hundred fifty dollars per individual
34 contributor who resides in New York state.
35 (c) Members of the state senate in a primary, general or special
36 election. Not less than twenty thousand dollars from at least two
37 hundred matchable contributions made up of sums of up to two hundred
38 fifty dollars per individual contributor who resides in New York state
39 including at least ten thousand dollars from at least one hundred twen-
40 ty-five individual contributors who reside in the senate district in
41 which the seat is to be filled.
42 (d) Members of the assembly in a primary, general or special election.
43 Not less than ten thousand dollars from at least one hundred matchable
44 contributions made up of sums of up to two hundred fifty dollars per
45 individual contributor who resides in New York state including at least
46 five thousand dollars from at least fifty individuals who reside in the
47 assembly district in which the seat is to be filled.
48 (e) At-large delegate to a constitutional convention in a primary or
49 general election. Not less than twenty thousand dollars from at least
50 two hundred matchable contributions made up of sums of up to two hundred
51 fifty dollars per individual contributor who resides in New York state.
52 (f) District delegate to a constitutional convention in a primary or
53 general election. Not less than five thousand dollars from at least
54 fifty matchable contributions made up of sums of up to two hundred fifty
55 dollars per individual contributor who resides in the district in which
56 the seat is to be filled.
A. 9885--D 5
1 3. In order to be eligible to receive public funds in a primary
2 election a candidate must agree, that in the event such candidate is a
3 candidate for such office in the general election in such year, that
4 such candidate will be bound by the provisions of this title, including,
5 but not limited to, the public funds receipt limits of this title.
6 4. Candidates who are contested in a primary election and who do not
7 seek public funds shall not be eligible for public funds for the general
8 election in that year. The provisions of this subdivision shall not
9 apply to candidates for the office of lieutenant governor.
10 5. Candidates who are unopposed in a general or special election shall
11 not be eligible to receive public funds.
12 6. No candidate for election to an office in a primary, general or
13 special election who has elected to participate in the public financing
14 system shall be deemed opposed and receive public funds unless there is
15 at least one other candidate for such office in such election and such
16 other candidate raises at least ten percent of the participating candi-
17 date's primary receipt limit.
18 § 14-204. Qualified campaign expenditures. 1. Public funds provided
19 under the provisions of this title may only be used for expenditures by
20 the participating committee authorized by the candidate to make expendi-
21 tures on such candidate's behalf, to further the candidate's nomination
22 or election after January first of the year in which the primary or
23 general election is held for the office sought, for services, materials,
24 facilities or other things of value used during that campaign cycle or,
25 in the case of a special election, for expenditures during the period
26 commencing three months before and ending one month after such special
27 election.
28 2. Such public funds may not be used for:
29 (a) An expenditure in violation of any law of the United States or of
30 this state;
31 (b) Payments or anything of value given or made to the candidate, a
32 relative of the candidate, or to a business entity in which any such
33 person has a ten percent or greater ownership interest or of which any
34 such person is an officer, director or employee;
35 (c) Payment in excess of the fair market value of services, materials,
36 facilities or other things of value received in exchange;
37 (d) Any expenditure made after the participating candidate, or the
38 only remaining opponent of such candidate, has been disqualified or had
39 such candidate's petitions declared invalid by a board of elections or a
40 court of competent jurisdiction until and unless such finding is
41 reversed by a higher authority.
42 (e) Any expenditure made to challenge the validity of any petition of
43 designation or nomination or any certificate of nomination, acceptance,
44 authorization, declination or substitution;
45 (f) Expenditure for noncampaign related food, drink or entertainment;
46 and
47 (g) Gifts.
48 § 14-206. Optional public financing. 1. Participating candidates for
49 nomination or election in primary, general and special elections may
50 obtain payment to a participating committee from public funds for quali-
51 fied campaign expenditures. No such public funds shall be paid to a
52 participating committee until the candidate has qualified to appear on
53 the ballot and filed a sworn statement with the campaign finance board
54 electing to participate in the optional public financing system and
55 agreeing to abide by the requirements of this title. Payments shall not
56 exceed the amounts specified in this title, and shall be made only in
A. 9885--D 6
1 accordance with the provisions of this title. Such payments may only be
2 made to a participating candidate's participating committee. No public
3 funds shall be used except as reimbursement or payment for qualified
4 campaign expenditures actually and lawfully incurred or to repay loans
5 used to pay qualified campaign expenditures.
6 2. The participating committee of each participating candidate shall
7 be entitled to six dollars in public funds for each one dollar of match-
8 able contributions obtained and reported to the campaign finance board
9 in accordance with the provisions of this title, provided, however, such
10 public funds shall only be used for qualified campaign expenditures.
11 3. (a) No participating candidate for nomination for an office who is
12 unopposed in a primary election shall be entitled to payment from the
13 fund for qualified campaign expenditures.
14 (b) Where there is a contest in such primary for the nomination of at
15 least one other party for such office, the participating committee of an
16 unopposed participating candidate for nomination may raise and spend an
17 amount equal to one-half the public funds receipt limit for such office,
18 as fixed by this title for candidates who have elected to accept public
19 funds, with contributions of up to two thousand dollars per contributor.
20 Such payment can only be expended for property, services or facilities
21 used on or before the date of such primary election.
22 4. The campaign finance board shall promptly examine all reports of
23 contributions to determine whether, on their face, they meet the
24 requirements for matchable contributions, and shall keep a record of
25 such contributions.
26 5. The campaign finance board shall promulgate regulations for the
27 certification of the amount of funds payable by the comptroller, from
28 the fund established pursuant to section ninety-two-t of the state
29 finance law, to a participating candidate that has qualified to receive
30 such payment. These regulations shall include the promulgation and
31 distribution of forms on which contributions and expenditures are to be
32 reported, the periods during which such reports must be filed and the
33 verification required. The board shall institute procedures which will
34 make possible payment by the fund within two business days after receipt
35 of the required forms and verifications.
36 § 14-208. Contribution and receipt limitations. 1. In any primary,
37 special or general election for any statewide office, state legislative
38 office or constitutional convention delegate no contributor may make a
39 contribution to any participating candidate or such candidate's partic-
40 ipating committee, and no participating candidate or participating
41 committee may accept any contribution from any contributor which, in the
42 aggregate amount, is greater than two thousand dollars.
43 2. (a) Notwithstanding the public funds receipt limit for such office
44 as fixed by this title for candidates who have elected to accept public
45 funds, a participating candidate for governor or lieutenant governor in
46 a primary or general election or such candidate's participating commit-
47 tee may accept from a state constituted committee which has nominated
48 such candidate services in an amount which, in the aggregate, does not
49 exceed two million five hundred thousand dollars; provided, however,
50 that twenty-five percent of such amount may be accepted in the form of a
51 transfer.
52 (b) 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 attorney general or comptroller in
55 a primary or general election or such candidate's participating commit-
56 tee may accept from a state constituted committee which has nominated
A. 9885--D 7
1 such candidate services in an amount which, in the aggregate, does not
2 exceed one million dollars; provided, however, that twenty-five percent
3 of such amount may be accepted in the form of a transfer.
4 (c) Notwithstanding the public funds receipt limit for such office as
5 fixed by this title for candidates who have elected to accept public
6 funds, a participating candidate for state senator in a primary, general
7 or special election or such candidate's participating committee may
8 accept from a state constituted committee which has nominated such
9 candidate services in an amount which, in the aggregate, does not
10 exceed one hundred thousand dollars; provided, however, that twenty-five
11 percent of such amount may be accepted in the form of a transfer.
12 (d) Notwithstanding the public funds receipt limit for such office as
13 fixed by this title for candidates who have elected to accept public
14 funds, a participating candidate for member of the assembly in a prima-
15 ry, general or special election or such candidate's participating
16 committee may accept from a state constituted committee which has nomi-
17 nated such candidate services in an amount which, in the aggregate, does
18 not exceed fifty thousand dollars; provided, however, that twenty-five
19 percent of such amount may be accepted in the form of a transfer.
20 (e) Notwithstanding the public funds receipt limit for such office as
21 fixed by this title for candidates who have elected to accept public
22 funds, a participating candidate for delegate at-large to a constitu-
23 tional convention in a general election or such candidate's participat-
24 ing committee may accept from a state constituted committee which has
25 nominated such candidate services in an amount which, in the aggregate,
26 does not exceed fifty thousand dollars; provided, however, that twenty-
27 five percent of such amount may be accepted in the form of a transfer.
28 (f) Notwithstanding the public funds receipt limit for such office as
29 fixed by this title for candidates who have elected to accept public
30 funds, a participating candidate for district delegate to a constitu-
31 tional convention in a general election or such candidate's participat-
32 ing committee may accept from a state constituted committee which has
33 nominated such candidate services in an amount which, in the aggregate,
34 does not exceed ten thousand dollars; provided, however, that twenty-
35 five percent of such amount may be accepted in the form of a transfer.
36 (g) For purposes of this subdivision, the term state constituted
37 committee includes any of its subcommittees.
38 3. Notwithstanding any public funds receipt limit in this subdivision,
39 each county committee of any party which nominates a candidate for
40 statewide office or state legislative office, including within the term
41 county committee any of its subcommittees, may expend in support of such
42 party's candidates for statewide office or state legislative office who
43 has agreed to accept public financing, an amount which shall not exceed
44 the sum of two cents for each voter registered in such county as deter-
45 mined by the records of the appropriate board of elections as of the
46 preceding general election.
47 4. In computing the aggregate amount expended for purposes of this
48 section, expenditures made by a state constituted committee or a county
49 committee in support of more than one candidate shall be allocated among
50 such candidates supported by the committee in accordance with formulas
51 promulgated by the campaign finance board or, in the absence of such
52 official formulas, in accordance with a formula based upon reasonable
53 standards. The statements filed by such constituted committee in accord-
54 ance with this chapter shall set forth, in addition to the other infor-
55 mation required, the total amount expended by the party committee on
56 behalf of all such candidates and the amount allocated to each candidate
A. 9885--D 8
1 by dollar amount and percentage. Expenditures by a party for activities
2 which do not support or oppose the election of any candidate or candi-
3 dates by name or by clear inference shall not be regarded as expendi-
4 tures on behalf of or in opposition to a candidate.
5 5. A participating candidate for a public office for which public
6 funds are available pursuant to this title shall not accept any contrib-
7 utions any earlier than one day after the previous general election for
8 the office which such candidate is seeking, or any later than the day of
9 the general election for the office sought, except that a participating
10 candidate or participating committee which has a deficit on the day of
11 the general election may, after such date, accept contributions which do
12 not exceed the amount of such deficit and the expenses incurred in rais-
13 ing such contributions or the expenditure limit for such office as fixed
14 by this title for candidates who have elected to accept public funds.
15 Contributions to a participating candidate or participating committee
16 which were received before the effective date of this title may not be
17 expended in any election for any such office.
18 6. Except for the limitations specifically set forth in this section,
19 participating candidates shall be subject to the provisions of this
20 article.
21 § 14-210. Limitations on the receipt of public funds. The following
22 limitations apply to the receipt of public funds by participating candi-
23 dates and their participating committees receiving such public funds
24 pursuant to the provisions of this title:
25 1. In any primary election, receipt of public funds by participating
26 candidates and by their participating committees shall not exceed:
27 (i) for governor, the sum of nine million dollars;
28 (ii) for lieutenant governor, comptroller or attorney general, the sum
29 of six million dollars;
30 (iii) for senator, the sum of three hundred fifty thousand dollars;
31 (iv) for member of the assembly, the sum of one hundred fifty thousand
32 dollars;
33 (v) for at-large delegate to a constitutional convention, the sum of
34 one hundred seventy-five thousand dollars;
35 (vi) for district delegates to a constitutional convention, the sum of
36 fifty thousand dollars;
37 2. In any general or special election, receipt of public funds by
38 participating candidates for the following offices and by their partic-
39 ipating committees shall not exceed the following amounts:
40 Candidates for election to the office of:
41 Governor and lieutenant governor (combined) $12,000,000
42 Attorney general $8,000,000
43 Comptroller $8,000,000
44 Member of senate $350,000
45 Member of assembly $150,000
46 Delegate at-large to a constitutional convention $350,000
47 District delegate to a constitutional convention $75,000
48 3. Participating candidates for office who are unopposed in the prima-
49 ry election may receive public funds before the primary election, for
50 services, materials or facilities used on or before the date of such
51 primary election, an amount equal to half the sum such candidates would
52 be entitled to receive if their nomination was contested in such primary
53 election provided there is a primary contest for the nomination of at
54 least one other party for such office.
A. 9885--D 9
1 4. Nothing in this section shall be construed to limit the amount of
2 private funds a participating candidate may receive subject to the
3 contribution limits contained in section 14-208 of this title.
4 § 14-212. Campaign finance board; general powers and duties. 1. There
5 shall be a board within the state board of elections known as the
6 "campaign finance board" composed of five members, of which one member
7 shall be appointed by the governor and one member shall be appointed by
8 each legislative leader of the senate and assembly. No member of the
9 campaign finance board shall hold elective office, nor shall any member
10 be a lobbyist as defined in subdivision (a) of section one-c of the
11 legislative law. The chair shall be responsible for managing the
12 campaign finance board. The members shall each serve for a term of four
13 years.
14 2. Each member's term shall commence on June first, two thousand thir-
15 teen. In case of a vacancy in the office of a member, a member shall be
16 appointed according to the original manner of appointment. Each member
17 shall be a resident of the state of New York and registered to vote
18 therein. Each member shall agree not to make and shall not make contrib-
19 utions to any candidate or authorized committee for nomination for
20 election or for election to the office of state comptroller. No member
21 shall serve as an officer of a political party or committee or be a
22 candidate or participate in any capacity in a campaign by a candidate
23 for nomination for election, or for election to the office of state
24 comptroller. An officer or employee of the state or any state agency
25 shall not be eligible to be a member of the campaign finance board.
26 3. The members of the campaign finance board shall be entitled to
27 receive payment for actual and necessary expenses incurred in the
28 performance of their duties as members of such board.
29 4. The campaign finance board may employ or shall utilize existing
30 staff of the state board of elections as may be necessary, including an
31 executive director and a counsel, and make necessary expenditures
32 subject to appropriation. The campaign finance board shall retain an
33 independent auditor to perform ongoing audits of each covered election
34 by contract entered into pursuant to section one hundred sixty-three of
35 the state finance law.
36 5. A member of the campaign finance board may be removed for cause by
37 the appointing authority upon notice and an opportunity for a hearing.
38 6. In addition to the enforcement powers, and any other powers and
39 duties specified by law, the campaign finance board shall:
40 (a)(i) render advisory opinions with respect to questions arising
41 under this title upon the written request of a candidate, an officer of
42 a political committee or member of the public, or upon its own initi-
43 ative; (ii) promulgate rules regarding reasonable times to respond to
44 such requests; and (iii) make public the questions of interpretation for
45 which advisory opinions will be considered by the campaign finance board
46 and its advisory opinions, including by publication on its website;
47 (b) develop a program for informing and training candidates and the
48 public as to the purpose and effect of the provisions of this title,
49 including by means of a website;
50 (c) have the authority to promulgate such rules and regulations and
51 prescribe such forms as the campaign finance board deems necessary for
52 the administration of this title; and
53 (d) in conjunction with the state board of elections develop an inter-
54 active, searchable computer database that shall contain all information
55 necessary for the proper administration of this title including informa-
56 tion on contributions to and expenditures by candidates and their
A. 9885--D 10
1 authorized committees and distributions of moneys from the fund and
2 shall be accessible to the public on the state board of elections'
3 website.
4 7. Consistent with the provisions of the civil service law and subdi-
5 vision seventeen of section seventy-three of the public officers law,
6 and notwithstanding the provisions of any other law to the contrary, all
7 positions on the staff of the campaign finance board shall be classified
8 in the exempt class of the civil service and such positions shall be
9 filled, to the extent possible, with an equal number of persons from
10 each of the two political parties for which the highest and the next
11 highest number of votes were cast for the office of state comptroller at
12 the last preceding general election for such office.
13 8. The campaign finance board's administration of the fund shall be
14 governed by the provisions of this title and section ninety-two-t of the
15 state finance law.
16 9. The campaign finance board and its proceedings shall be governed by
17 the state administrative procedure act and subject to articles six and
18 seven of the public officers law.
19 10. The campaign finance board may take such other actions as are
20 necessary and proper to carry out the purposes of this title.
21 § 14-214. Examinations and audits. 1. The campaign finance board shall
22 conduct a thorough examination and audit of the contributions and quali-
23 fied campaign expenses of the participating committee of every partic-
24 ipating candidate who received payments pursuant to section 14-206 of
25 this title. Such audits shall be conducted as frequently as the
26 campaign finance board deems necessary to ensure compliance with this
27 title. Every candidate who receives public matching funds under this
28 title shall also be audited by the campaign finance board post-election.
29 The cost of complying with a post-election audit shall be borne by the
30 candidate's authorized committee. A candidate who has received public
31 matching funds under this title must maintain a reserve of at least one
32 percent of the total amount of matching funds received by such candidate
33 in his or her campaign account to comply with the post-election audit. A
34 candidate who runs in both a primary and a general election, must main-
35 tain a reserve of one percent of the total amount of public matching
36 funds received by such candidate for both his or her primary and general
37 election. A candidate may use public matching funds, private funds or a
38 combination of public and private funds to comply with a post-election
39 audit. The campaign finance board shall issue to each campaign audited
40 the final post-election audit report that details its findings and shall
41 provide such audit to the governor and legislative leaders and make such
42 audit report available on the state board of elections' website.
43 2. (a) If the campaign finance board determines that any portion of
44 the payment made to a participating committee from the fund was in
45 excess of the aggregate amount of payments to which such eligible candi-
46 date was entitled pursuant to section 14-206 of this title, it shall
47 notify such committee of the excess amount and such committee shall pay
48 to the campaign finance board an amount equal to the amount of excess
49 payments; provided, however, that if the erroneous payment was due to an
50 error made by the campaign finance board, then the erroneous payment
51 will be offset against any future payment, if any. The participating
52 candidate and his or her participating committee shall be jointly and
53 severally liable for any repayments due to the campaign finance board
54 for deposit by such board into the New York state campaign fund.
55 (b) If the board determines that any amount of payment made to a
56 participating committee from the fund was used for purposes other than
A. 9885--D 11
1 to defray qualified campaign expenses, it shall notify such participat-
2 ing committee of the amount disqualified and such participating commit-
3 tee shall pay to the campaign finance board an amount equal to such
4 disqualified amount. Such monies shall be deposited into the New York
5 state campaign finance fund created pursuant to section ninety-two-t of
6 the state finance law. The candidate and the candidate's authorized
7 committee shall be jointly and severally liable for any repayments due
8 to the campaign finance board.
9 (c) If the total of contributions and payments from the fund received
10 by any participating candidate and such candidate's participating
11 committee, exceeds the public funding receipt limitation of such candi-
12 date and committee, such candidate and committee shall use such excess
13 funds to reimburse the fund for payments received by such committee from
14 the fund not later than ten days after all permissible liabilities have
15 been paid and in any event, not later than twenty days after the date on
16 which the campaign finance board issues its final audit report for the
17 participating candidate's committee; provided, however, that all unspent
18 matching funds for a participating candidate shall be immediately due
19 and payable to the campaign finance board for deposit into the New York
20 state campaign finance fund upon its determination that the participant
21 willfully delayed the post-election audit process. A participating
22 candidate may make post-election expenditures only for routine activ-
23 ities involving nominal costs associated with ending a campaign and
24 responding to the post-election audit.
25 3. If a court of competent jurisdiction disqualifies a candidate whose
26 participating committee has received public funds on the grounds that
27 such candidate committed fraudulent acts in order to obtain a place on
28 the ballot and such decision is not reversed by a higher court, such
29 candidate and such candidate's participating committee shall pay to the
30 campaign finance board an amount equal to the total of public funds
31 received by such participating committee.
32 4. The board must provide written notice of all payments due from a
33 participating candidate or such candidate's committee to the board and
34 provide an opportunity for the candidate or committee to rebut, in whole
35 or in part, the alleged amount due. Upon a final written determination
36 by the board, the amount due shall be paid to the board within thirty
37 days of such determination.
38 5. All payments received by the board pursuant to this section shall
39 be deposited in the New York state campaign finance fund established by
40 section ninety-two-t of the state finance law.
41 § 14-216. Civil enforcement. 1. Any person or authorized committee who
42 knowingly and wilfully fails to make a filing required by the provisions
43 of this title shall be subject to a civil penalty not to exceed the
44 amount of five thousand dollars.
45 2. Any person or authorized committee who knowingly and intentionally
46 violates any other provision of this title or any rule promulgated here-
47 under shall be subject to a civil penalty not to exceed the amount of
48 ten thousand dollars.
49 3. Fines authorized under this section will be imposed by the campaign
50 finance board after a hearing at which the subject person or authorized
51 committee shall be given an opportunity to be heard. Such hearing shall
52 be held in such manner and upon such notice as may be prescribed by the
53 rules of the campaign finance board. For purposes of conducting such
54 hearings, the campaign finance board shall be deemed to be an agency
55 within the meaning of article three of the state administrative proce-
56 dure act and shall adopt rules governing the conduct of adjudicatory
A. 9885--D 12
1 proceedings and appeals taken pursuant to a proceeding commenced under
2 article seventy-eight of the civil practice law and rules relating to
3 the assessment of the civil penalties herein authorized.
4 4. The campaign finance board shall publish on the state board of
5 elections' website the final order adjudicating any matter brought
6 pursuant to this section.
7 5. All payments received by the campaign finance board pursuant to
8 this section shall be deposited in the New York state campaign finance
9 fund established by section ninety-two-t of the state finance law.
10 § 14-218. Criminal penalties. 1. Any person who knowingly and willful-
11 ly fails to make a filing required by the provisions of this title with-
12 in ten days after the date provided for such, or anyone that knowingly
13 and willfully violates any other provision of this title shall be guilty
14 of a misdemeanor and, in addition to such other penalties as may be
15 provided by law, shall be subject to a fine not to exceed the amount of
16 ten thousand dollars.
17 2. Any person who knowingly and willfully contributes, accepts or aids
18 or participates in the contribution or acceptance of a contribution in
19 an amount exceeding an applicable maximum specified in this article
20 shall be guilty of a misdemeanor and shall be subject to a fine not to
21 exceed the amount of ten thousand dollars.
22 3. Any person who knowingly and willfully makes a false statement or
23 knowingly omits a material fact to the campaign finance board or an
24 auditor designated by the campaign finance board during any audit
25 conducted pursuant to section 14-214 of this title shall be guilty of a
26 class E felony.
27 4. In addition to any other sentence lawfully imposed upon a finding
28 of guilt in a criminal prosecution commenced pursuant to the provisions
29 of this section, the court may order a defendant to repay to the
30 campaign finance board any public matching funds obtained as a result of
31 any criminal conduct.
32 5. All such prosecutions for criminal acts under this title shall be
33 prosecuted by the attorney general of the state of New York.
34 6. Any and all fines imposed pursuant to this section shall be made
35 payable to the campaign finance board for deposit into the New York
36 state campaign finance fund.
37 § 14-220. Reports. The campaign finance board shall submit a report to
38 the governor and legislative leaders on or before February first, two
39 thousand sixteen, and every four years thereafter, which shall include:
40 1. a list of the participating and nonparticipating candidates in
41 covered elections and the votes received by each candidate in those
42 elections;
43 2. the amount of contributions and loans received, and expenditures
44 made, on behalf of participating and nonparticipating candidates;
45 3. the amount of public matching funds each participating candidate
46 received, spent, and repaid pursuant to this article;
47 4. analysis of the effect of this title on the election campaigns for
48 all offices covered under section 14-203 of this title, including its
49 effect on the sources and amounts of private financing, the level of
50 campaign expenditures, voter participation, the number of candidates,
51 the candidates' abilities to campaign effectively for public office, and
52 the diversity of candidates seeking and elected to office;
53 5. recommendations for changes or amendments to this title, including
54 charges in contribution limits, thresholds for eligibility and limits on
55 total matching funds as well as instituting a program of full public
56 campaign financing for election for all statewide offices; and
A. 9885--D 13
1 6. any other information that the campaign finance board deems rele-
2 vant.
3 § 14-222. Debates. The campaign finance board shall promulgate regu-
4 lations to facilitate debates among participating candidates. Partic-
5 ipating candidates are required to participate in at least one debate
6 before the primary election and in at least one debate before the gener-
7 al election for which the candidate receives public funds, unless the
8 participating candidate is running unopposed. A nonparticipating candi-
9 date may be a party to such debates.
10 § 14-224. Distributions from campaign finance fund. 1. This section
11 governs the campaign finance board's distribution of funds from the
12 campaign finance fund created by section ninety-two-t of the state
13 finance law, except as otherwise provided in this title.
14 2. No moneys shall be paid to participating candidates in a primary
15 election any earlier than two weeks after the last day to file designat-
16 ing petitions for such primary election.
17 3. No moneys shall be paid to participating candidates in a general
18 election any earlier than a week after the primary election held to
19 nominate candidates for such election.
20 4. No moneys shall be paid to any participating candidate who has been
21 disqualified by the campaign finance board or whose designating
22 petitions have been declared invalid by the state board of elections or
23 a court of competent jurisdiction until and unless such finding is
24 reversed by an appellate court.
25 5. No payment from the fund in the possession of such a candidate or
26 such a candidate's authorized committee on the date of such disquali-
27 fication or invalidation may thereafter be expended for any purpose
28 except the payment of liabilities incurred before that date. All excess
29 public moneys paid to a disqualified candidate shall be returned to the
30 fund not less than thirty days after the general election for those
31 participating candidates who received public moneys for the general
32 election, and otherwise, not less than thirty days after the primary
33 election for those participating candidates who received public moneys
34 solely for the primary election.
35 6. (a) Participating candidates shall pay to the campaign finance
36 board unspent public campaign funds from an election not later than
37 thirty days after all liabilities for the election have been paid and,
38 in any event, not less than twenty days after the date upon which the
39 campaign finance board issues its final audit report for the participat-
40 ing candidate's committee; provided, however, that all unspent public
41 campaign funds for a participating candidate shall be immediately due
42 and payable to the campaign finance board upon its determination that
43 the participating candidate has, without just cause, delayed the post-e-
44 lection audit process. Unspent campaign funds determinations made by the
45 campaign finance board shall be based on the participating candidate
46 committee's receipts and expenditures. The campaign finance board may
47 also consider any other relevant information revealed in the course of
48 its audits or investigations or the investigations by any other agency.
49 (b)(i) A participating candidate may not use receipts for any purpose
50 other than disbursements in the preceding election until all unspent
51 public campaign funds have been repaid. A participating candidate shall
52 have the burden of demonstrating that a post-election expenditure is for
53 the preceding election.
54 (ii) Before repaying unspent public campaign funds, a participating
55 candidate may make post-election expenditures only for routine activ-
56 ities involving nominal costs associated with winding up a campaign and
A. 9885--D 14
1 responding to the post-election audit. Such expenditures may include:
2 payment of utility bills and rent; reasonable staff salaries and
3 consultant fees for responding to a post-election audit; reasonable
4 moving expenses related to closing a campaign office; a holiday card
5 mailing to contributors, campaign volunteers, and staff members; thank
6 you notes for contributors, campaign volunteers, and staff members;
7 payment of taxes and other reasonable expenses for compliance with
8 applicable tax laws; and interest expenses. Routine post-election
9 expenditures that may be paid for with unspent campaign funds do not
10 include such items as post-election mailings other than as specifically
11 provided for in this subparagraph; making contributions; making bonus
12 payments or gifts to staff members or volunteers; or holding any post-e-
13 lection day event, including, but not limited to, any meal or any party.
14 Unspent campaign funds may not be used for transition or inauguration
15 activities.
16 7. All monies received by the campaign finance board pursuant to this
17 section shall be deposited into the New York state campaign finance fund
18 pursuant to section ninety-two-t of the state finance law.
19 § 4. The election law is amended by adding a new section 16-103 to
20 read as follows:
21 § 16-103. Proceedings as to public financing. 1. The determination of
22 eligibility pursuant to section 14-203 of this chapter and any question
23 or issue relating to payments for qualified campaign expenditures pursu-
24 ant to section 14-206 of this chapter may be contested in a proceeding
25 instituted in the Supreme court, Albany county, by any aggrieved candi-
26 date.
27 2. A proceeding with respect to such a determination of eligibility or
28 payment for qualified campaign expenditures pursuant to section 14-206
29 of this chapter shall be instituted within seven days after such deter-
30 mination was made. The campaign finance board shall be made a party to
31 any such proceeding.
32 3. Upon the campaign finance board's failure to receive the amount due
33 from a participating candidate or such candidate's committee after the
34 issuance of written notice of such amount due, as required by subdivi-
35 sion four of section 14-214 of this chapter, such board is authorized to
36 institute a special proceeding or civil action in Supreme Court, Albany
37 county, to obtain a judgment for any amounts determined to be payable to
38 the campaign finance board as a result of an examination and audit made
39 pursuant to title II of article fourteen of this chapter.
40 4. The campaign finance board is authorized to institute a special
41 proceeding or civil action in Supreme Court, Albany county, to obtain a
42 judgment for civil penalties determined to be payable to the campaign
43 finance board pursuant to section 14-214 of this chapter.
44 § 5. The election law is amended by adding a new section 4-115 to read
45 as follows:
46 § 4-115. Notice to the state board of elections of candidates for the
47 legislature. 1. Each board of elections with which petitions are filed
48 for member of the state legislature shall, not later than one week after
49 the last day to file such petitions, send notice to the state board of
50 elections of such information about each such petition as the state
51 board shall require.
52 2. Each such county board of elections shall, not later than the day
53 after the last day to file a petition or certificate of nomination for a
54 general or special election or a certificate of acceptance, declination
55 or substitution for a general, primary or special election for any such
A. 9885--D 15
1 office, send to the state board of elections such information about each
2 such petition or certificate as the state board shall require.
3 3. If any such county board of elections should disqualify any such
4 candidate or rule the petition or certificate designating or nominating
5 any such candidate invalid, it shall forthwith notify the state board of
6 elections of such decision.
7 4. If any such county board of elections shall be notified of a deci-
8 sion of a court of competent jurisdiction disqualifying any such candi-
9 date or declaring any such petition invalid or reversing any such deci-
10 sion by such board of elections or another court, such board of
11 elections shall forthwith notify the state board of elections of such
12 decision.
13 5. The state board of elections may prescribe forms for the notices
14 required by this section and shall prescribe the manner in which such
15 notices shall be given.
16 § 6. The general business law is amended by adding a new section 359-
17 gg to read as follows:
18 § 359-gg. Additional surcharge. In addition to any penalty authorized
19 by section three hundred fifty-nine-g of this article or any damages or
20 other compensation recoverable including, but not limited to, any
21 settlement authorized by section sixty-three or sixty-three-c of the
22 executive law, there shall be assessed thereon an additional surcharge
23 in the amount of ten percent of the total amount of such penalty,
24 damages or settlement. Such surcharge shall be deposited in the New York
25 state campaign finance fund established by section ninety-two-t of the
26 state finance law.
27 § 7. The state finance law is amended by adding a new section 92-t to
28 read as follows:
29 § 92-t. New York state campaign finance fund. 1. There is hereby
30 established in the custody of the commissioner of taxation and finance a
31 special fund to be known as the New York state campaign finance fund.
32 2. Such fund shall consist of all revenues received from the surcharge
33 imposed pursuant to section three hundred fifty-nine-gg of the general
34 business law, revenues received from campaign finance fund check-off
35 pursuant to section six hundred thirty-c of the tax law and all other
36 moneys credited or transferred thereto from any other fund or source
37 pursuant to law. Nothing contained in this section shall prevent the
38 state from receiving grants, gifts, bequests or voluntary contributions
39 for the purposes of the fund as defined in this section and depositing
40 them into the fund according to law. Monies in the fund shall be kept
41 separate from and not commingled with other funds held in the custody of
42 the commissioner of taxation and finance.
43 3. Moneys of the fund, following appropriation by the legislature, may
44 be expended for the purposes of making payments to candidates pursuant
45 to title two of article fourteen of the election law. Moneys shall be
46 paid out of the fund by the commissioner of taxation and finance on
47 vouchers certified or approved by the campaign finance board established
48 pursuant to title two of article fourteen of the election law, or the
49 duly designated representative of such board, in the manner prescribed
50 by law, not more than one working day after a voucher duly certified,
51 approved and executed by such board or its representative in the form
52 prescribed by the commissioner of taxation and finance is received by
53 the commissioner of taxation and finance.
54 4. Notwithstanding any provision of law to the contrary, if, in any
55 state fiscal year, the state campaign finance fund lacks the amount of
56 money to pay all claims vouchered by eligible candidates and certified
A. 9885--D 16
1 or approved by the campaign finance board, any such deficiency shall be
2 paid, upon audit and warrant of the state comptroller, from funds depos-
3 ited in the general fund of the state not more than one working day
4 after such voucher is received by the state comptroller.
5 5. Commencing in two thousand sixteen, if the surplus in the fund on
6 April first of the year after an election cycle exceeds twenty-five
7 percent of the disbursements from the fund over the previous four years,
8 the excess shall revert to the general fund of the state.
9 6. No public funds shall be paid to any participating candidates in a
10 primary election any earlier than the day that such candidate is certi-
11 fied as being on the ballot for such primary election.
12 7. No public funds shall be paid to any participating candidates in a
13 general election any earlier than the day after the day of the primary
14 election held to nominate candidates for such election.
15 8. No public funds shall be paid to any participating candidate who
16 has been disqualified or whose designating petitions have been declared
17 invalid by the appropriate board of elections or a court of competent
18 jurisdiction until and unless such finding is reversed by a higher
19 authority. No payment from the fund in the possession of such a candi-
20 date or such candidate's participating committee on the date of such
21 disqualification or invalidation may thereafter be expended for any
22 purpose except the payment of liabilities incurred before such date. All
23 such moneys shall be repaid to the fund.
24 § 8. The tax law is amended by adding a new section 630-c to read as
25 follows:
26 § 630-c. Contribution to New York state campaign finance fund. Effec-
27 tive for any taxable year commencing on or after January first, two
28 thousand twelve, an individual in any taxable year may elect to contrib-
29 ute to the New York state campaign finance fund. Such contribution shall
30 be in the amount of five dollars and shall not reduce the amount of
31 state tax owed by such individual. The commissioner shall include space
32 on the personal income tax return to enable a taxpayer to make such
33 contribution. Notwithstanding any other provision of law all revenues
34 collected pursuant to this section shall be credited to the New York
35 state campaign finance fund and used only for those purposes enumerated
36 in section ninety-two-t of the state finance law.
37 § 9. Severability. If any clause, sentence, subdivision, paragraph,
38 section or part of title II of article 14 of the election law, as added
39 by section seven of this act be adjudged by any court of competent
40 jurisdiction to be invalid, such judgment shall not affect, impair or
41 invalidate the remainder thereof, but shall be confined in its operation
42 to the clause, sentence, subdivision, paragraph, section or part thereof
43 directly involved in the controversy in which such judgment shall have
44 been rendered.
45 § 10. This act shall take effect immediately; provided, however,
46 candidates for state comptroller will be eligible to participate in the
47 public financing system beginning with the 2014 election, all state
48 legislature candidates will be eligible to participate in the public
49 financing system beginning with the 2016 election and all state candi-
50 dates and constitutional convention delegates will be eligible to
51 participate in the public financing system beginning with the 2018
52 election.
