STATE OF NEW YORK
________________________________________________________________________
1149
2023-2024 Regular Sessions
IN SENATE
January 10, 2023
___________
Introduced by Sens. KRUEGER, ADDABBO, GOUNARDES, LIU, MAY -- read twice
and ordered printed, and when printed to be committed to the Committee
on Elections
AN ACT to amend the election law, in relation to campaign funds for
personal use
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 14-130 of the election law, as amended by section 9
2 of part CC of chapter 56 of the laws of 2015, paragraphs (ix) and (x) of
3 subdivision 3 as amended and paragraph (xi) of subdivision 3 as added by
4 chapter 136 of the laws of 2019, is amended to read as follows:
5 § 14-130. Campaign funds for personal use. 1. Contributions received
6 by a candidate or a political committee may only be expended for [any
7 lawful purpose. Such funds shall not be converted by any person to a
8 personal use which is unrelated to a political campaign or the holding
9 of a public office or party position.] bona fide purposes directly
10 related to either:
11 [2. No contribution shall be used to pay interest or any other finance
12 charges upon monies loaned to the campaign by such candidate or the
13 spouse of such candidate.
14 3. For the purposes of this section, contributions "converted by any
15 person to a personal use" are expenditures that are exclusively for the
16 personal benefit of the candidate or any other individual, not in
17 connection with a political campaign or the holding of a public office
18 or party position. "Converted by any person to a personal use", when
19 meeting the definition in this subdivision, shall include, but not be
20 limited to, expenses for the following:
21 (i) any residential or household items, supplies or expenditures,
22 including mortgage, rent or utility payments for any part of any
23 personal residence of a candidate or officeholder or a member of the
24 candidate's or officeholder's family that are not incurred as a result
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03670-01-3
S. 1149 2
1 of, or to facilitate, the individual's campaign, or the execution of his
2 or her duties of public office or party position. In the event that any
3 property or building is used for both personal and campaign use or as
4 part of the execution of his or her duties of public office or party
5 position, personal use shall constitute expenses that exceed the pro-
6 rated amount for such expenses based on fair-market value.
7 (ii) mortgage, rent, or utility payments to a candidate or officehold-
8 er for any part of any non-residential property that is owned by a
9 candidate or officeholder or a member of a candidate's or officeholder's
10 family and used for campaign purposes, to the extent the payments exceed
11 the fair market value of the property's usage for campaign activities;
12 (iii) clothing, other than items that are used in the campaign or in
13 the execution of the duties of public office or party position;
14 (iv) tuition payments unrelated to a political campaign or the holding
15 of a public office or party position;
16 (v) salary payments or other compensation provided to any person for
17 services where such services are not solely for campaign purposes or
18 provided in connection with the execution of the duties of public office
19 or party position;
20 (vi) salary payments or other compensation provided to a member of a
21 candidate's family, unless the family member is providing bona fide
22 services to the campaign. If a family member provides bona fide services
23 to a campaign, any salary payments or other compensation in excess of
24 the fair market value of the services provided shall be considered
25 payments for personal use;
26 (vii) admission to a sporting event, concert, theater, or other form
27 of entertainment, unless such event is part of, or in connection with, a
28 campaign or is related to the holding of public office or party posi-
29 tion;
30 (viii) payment of any fines or penalties assessed against the candi-
31 date pursuant to this chapter or in connection with a criminal
32 conviction or by the joint commission for public ethics pursuant to
33 section ninety-four of the executive law or sections seventy-three or
34 seventy-three-a of the public officers law or the legislative ethics
35 commission pursuant to section eighty of the legislative law;
36 (ix) dues, fees, or gratuities at a country club, health club, recre-
37 ational facility or other entities with a similar purpose, unless they
38 are expenses connected with a specific fundraising event or activity
39 associated with a political campaign or the holding of public office or
40 party position that takes place on the organization's premises;
41 (x) travel expenses including automobile purchases or leases, unless
42 used for campaign purposes or in connection with the execution of the
43 duties of public office or party position and usage of such vehicle
44 which is incidental to such purposes or the execution of such duties;
45 and
46 (xi) childcare expenses, other than expenses incurred in the campaign
47 or in the execution of the duties of public office or party position.
48 4. Nothing in this section shall prohibit a candidate from purchasing
49 equipment or property from his or her personal funds and leasing or
50 renting such equipment or property to a committee working directly or
51 indirectly with him to aid or participate in his or her nomination or
52 election, including an exploratory committee, provided that the candi-
53 date and his or her campaign treasurer sign a written lease or rental
54 agreement. Such agreement shall include the lease or rental price, which
55 shall not exceed the fair lease or rental value of the equipment. The
S. 1149 3
1 candidate shall not receive lease or rental payments which, in the
2 aggregate, exceed the cost of purchasing the equipment or property.
3 5. Nothing in this section shall prohibit an elected public office-
4 holder from using campaign contributions to facilitate, support, or
5 otherwise assist in the execution or performance of the duties of his or
6 her public office.
7 6. The state board of elections shall issue advisory opinions upon
8 request regarding expenditures that may or may not be considered
9 personal use of contributions. Any formal or informal advisory opinions
10 issued by a majority vote of the commissioners of the state board of
11 elections shall be binding on the board, the chief enforcement counsel
12 established by subdivision three-a of section 3-100 of this chapter, and
13 in any subsequent civil or criminal action or proceeding or administra-
14 tive proceeding.]
15 a. promoting the nomination or election of a candidate; or
16 b. performing duties of public office or party position which are not
17 paid for or eligible for reimbursement by the state or any political
18 subdivision or private party, and ordinary and necessary expenses relat-
19 ing to the holding of public office or party position.
20 2. Campaign funds shall not be converted to personal use, which shall
21 be defined as expenditures that:
22 a. are for the personal benefit of or to defray normal living expenses
23 of the candidate, officeholder, immediate family or domestic partner of
24 either or any other person;
25 b. are used to fulfill any commitment, obligation, or expense that
26 would exist irrespective of the candidate's campaign or duties as an
27 officeholder; or
28 c. are put to any use for which the candidate or officeholder would be
29 required to treat the amount of the expenditure as gross income under
30 section 61 of the Internal Revenue Code.
31 3. Expenditures for personal use shall also include, but are not
32 limited to, expenditures for:
33 a. residential or household items, supplies, maintenance or other
34 expenditures, including mortgage, rent, utilities, repairs, or improve-
35 ments for any part of any personal residence of a candidate or office-
36 holder, his or her immediate family or domestic partner;
37 b. rent or utility payments that exceed fair market value for use of
38 any part of any non-residential property owned by a candidate, or a
39 member of a candidate's family or domestic partner used for campaign
40 purposes;
41 c. salary and other fees for bona fide services to a campaign or
42 legislative office that exceed fair and reasonable market value of such
43 services;
44 d. interest or any other finance charges for monies loaned to the
45 campaign by the candidate or the spouse or domestic partner of such
46 candidate;
47 e. tuition payments;
48 f. dues, fees, or gratuities at private clubs, recreational facilities
49 or other nonpolitical organizations, unless connected to a specific
50 widely attended fundraising event that takes place on the organization's
51 premises;
52 g. automobile purchases or long term leases; short term car rentals
53 and cellular equipment and services not used exclusively for campaign
54 purposes or duties as an officeholder;
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1 h. admission to sporting events, concerts, theaters, or other forms of
2 entertainment, unless part of a specific campaign or officeholder
3 related activity; and
4 i. payment of any fines, fees, or penalties assessed pursuant to this
5 chapter.
6 Nothing in this section shall prohibit a candidate from purchasing
7 office equipment with personal funds and leasing or renting such equip-
8 ment or property to a committee working with or for the candidate,
9 provided the candidate or the campaign treasurer signs a written lease
10 or rental agreement and files it with the appropriate required campaign
11 financial filing which shall include the lease or rental price which
12 shall not exceed the fair lease or rental value of the equipment or in
13 the aggregate exceed the cost of its purchase.
14 § 2. Section 14-132 of the election law, as added by section 2 of part
15 C of chapter 286 of the laws of 2016, is amended to read as follows:
16 § 14-132. Disposition of campaign funds. [1.] Upon the death of a
17 candidate, former candidate or holder of elective office, [where such
18 candidate or candidate's authorized committee] who received campaign
19 contributions, all [such funds] contributions shall be disposed of [by
20 any of the following means, or any combination thereof, within two years
21 of the death of such person:
22 (a) returning, pro rata, to each contributor the funds that have not
23 been spent or obligated;
24 (b) donating the funds to a charitable organization or organizations
25 that meet the qualifications of section 501(c)(3) of the Internal Reven-
26 ue Code;
27 (c) donating the funds to the state university of New York or the city
28 university of New York;
29 (d) donating the funds to the state's general fund; or
30 (e) contributing or transferring the funds to a candidate, party,
31 constituted or political committee in accordance with the applicable
32 limits, if any, set forth in this article.
33 2. No such candidate's authorized political committee shall dispose of
34 campaign funds by making expenditures for personal use as defined in
35 section 14-130 of this article.
36 3. If funds are not disposed of within the time required by this
37 section, such funds shall be recoverable by the chief enforcement coun-
38 sel of the state board of elections in a special proceeding in state
39 supreme court in the manner prescribed by section 16-116 of this chapter
40 and deposited into the state's general fund] within twelve months of the
41 death of the candidate pursuant to subdivision one of this section.
42 1. Any political committee required to dispose of funds pursuant to
43 this section shall, at the option of the representative of the estate of
44 the candidate, or the treasurer of a political committee formed solely
45 to promote the passage or defeat of a ballot proposal, dispose of such
46 funds by any of the following means, or any combination thereof:
47 a. returning, pro rata, to each contributor the funds that have not
48 been spent or obligated;
49 b. donating the funds to a charitable organization or organizations
50 that meet the qualifications of section 501(c) (3) of the Internal
51 Revenue Code;
52 c. donating the funds to the state university;
53 d. donating the funds to the state's general fund;
54 e. transferring the funds to a political party committee registered
55 with the state board of elections; or
S. 1149 5
1 f. contributing the funds to a candidate or political committee such
2 that this does not exceed the limits set forth in section 14-114 of this
3 title.
4 2. No representative of the estate of a candidate or political commit-
5 tee shall dispose of campaign funds by making expenditures for personal
6 use as defined in section 14-130 of this title.
7 § 3. This act shall take effect on the sixtieth day after it shall
8 have become a law; provided, that the state board of elections shall
9 notify all registered campaign committees of the applicable provisions
10 of this act within thirty days after this act shall have become a law.
