A09885 Summary:

BILL NOA09885D
 
SAME ASSAME AS S07036-B
 
SPONSORSilver
 
COSPNSRMillman, Wright, Weinstein, Gottfried, Peoples-Stokes, Kavanagh, Morelle, Weprin, Jeffries, Scarborough, Lupardo
 
MLTSPNSRAbinanti, Benedetto, Braunstein, Brennan, Brindisi, Cahill, Camara, Canestrari, Clark, Colton, Cook, Cymbrowitz, Dinowitz, Englebright, Farrell, Galef, Gantt, Gibson, Glick, Gunther, Hevesi, Hooper, Jacobs, Jaffee, Kellner, Lancman, Latimer, Lentol, Lifton, Linares, McEneny, Meng, Nolan, O'Donnell, Ortiz, Paulin, Perry, Quart, Reilly, Rivera P, Roberts, Rodriguez, Rosenthal, Russell, Schimel, Skartados, Stevenson, Sweeney, Weisenberg
 
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.
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A09885 Actions:

BILL NOA09885D
 
04/19/2012referred to election law
04/23/2012amend and recommit to election law
04/23/2012print number 9885a
04/24/2012amend (t) and recommit to election law
04/24/2012print number 9885b
04/24/2012amend and recommit to election law
04/24/2012print number 9885c
04/26/2012reported referred to codes
05/01/2012reported referred to ways and means
05/01/2012amend and recommit to ways and means
05/01/2012print number 9885d
05/08/2012reported
05/10/2012advanced to third reading cal.569
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A09885 Floor Votes:

There are no votes for this bill in this legislative session.
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A09885 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9885D
 
SPONSOR: Silver
  TITLE OF BILL: 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   SUBJECT AND PURPOSE: To provide optional public financing of campaigns for statewide offices, state legislative offices and constitu- tional convention delegates.   SUMMARY AND DESCRIPTION OF PROVISIONS: The bill adds a new Title II to Article 14 to provide for public financing of primary and general election campaigns for statewide office, primary, general and special election campaigns for state legislative office and primary and general election campaigns for constitutional convention delegates.   CRITERIA FOR PARTICIPATION: To be eligible for public financing, a candidate for nomination or election to a statewide office, state legis- lative office or as a constitutional convention delegate must satisfy the legal requirements for having his.or her name on the ballot, elect to participate in the public financing system, meet the threshold for eligibility and agree to file required statements and authorize a single participating committee.   ELIGIBILITY THRESHOLD: Governor: Must collect not less then $650,000 from at least 6,500 match- able contributions made up of sums of up to $250 per individual contrib- utor who resides in New York State. Lt. Governor (primary only), Attorney Gem, & Comptroller: Must collect not less than $200,000 from at least 2,000 matchable contributions made up of sums of up to $250 per individual contributor who resides in New York state. Senate: Must collect not less than $20,000 from at least 200 matchable contributions made up of sums of up to $250 per individual contributor who resides in New York state including at least $12,500 from at least 125 individual contributors who reside in the senate district in which the seat is to be filled. Assembly: Must collect not less than $10,000 from at least 100 matchable contributions made up of sums of up to $250 per individual contributor who resides in New York state including at least $5,000 from at least 50 individual contributors who reside in the assembly district in which the seat is to be filled. At-large Delegate to a Constitutional Convention: Must collect not less than $20,000 from at least 200 matchable contributions made up of sums of up to $250 per individual contributor who resides in New York State. District Delegate to a Constitutional Convention: Must collect not less than $5,000 from at least 50 matchable contributions made up of sums of up to $250 per individual contributor who resides in the district in which the seat is to be filled.   MATCHABLE CONTRIBUTIONS: Matchable contributions may be collected after January first of the year of the primary or general election. For a special election, may be collected up to six months before the election. Consist of the net amount of contributions after deduction of the value of any food, drink or entertainment provided in exchange for the contribution. Only contributions from persons who reside in New York State are matchable.   THE MATCH: Eligible contributions up to $250 are matched at the rate of $6 for every $1.   MISC. RULES: To receive public funds for a primary election, a participating candidate must agree to receive public funding for the general election. Participating candidates who are unopposed in a primary election may not receive public funds. Participating candidates whose opponents don't raise or spend 10% of the public funds receipt limit for the office that they are seeking are deemed unopposed. Participating candidates that are unopposed may raise private funds of up to 50% of the expenditure limit if there is a contest in the primary for at least one other party for such office. Such funds may only be raised with contributions of up to $2000 per contributor. Candidates who are challenged in a primary and who do not seek public funds are not eligible for public funds for the, general election. Candidates who are unopposed in a general or special election may not receive public funds.   PERMISSIBLE AND PROHIBITED USES OF PUBLIC FUNDS: Public funds may be used only for qualified campaign expenditures during the year of the primary or general election. For a special election, such funds may only be used in the 3 months prior to the election. They may not be used for expenditures in violation of law, for payments to a candidate or to a relative of the candidate (or to any business entity of which such a person is an officer or employee or has a ten percent or greater owner- ship interest), for payments in excess of fair market value, for any expenditure after the candidate or the candidate's only remaining oppo- nent has been disqualified (until and unless reversed), to challenge an opponent's petitions or certificates, for non-campaign related food, drink or entertainment, or for gifts.   CONTRIBUTION LIMIT: All candidates who choose to participate in the public financing system have a contribution limit of $2,000 per contrib- utor.   PUBLIC FUNDS RECEIPT LIMITS: The following limits on public funds apply to all candidates who partic- ipate in the public financing system: General Election Primary Governor $12,000,000 $9,000,000 Lt. Governor -- $6,000,000 Attorney General & Comptroller $8,000,000 Same as Lt. Governor State Senator $350,000 $350,000 Member of Assembly $150,000 $150,000 At-Large Delegate $350,000 $175,000 District Delegate $75,000 $50,000 NOTE: A participating candidate may raise unlimited amounts of private money subject to the $2,000 per contributor limitation.   PARTY EXPENDITURES IN SUPPORT OF PARTICIPATING CANDIDATES: Notwithstanding the expenditure limits for participating candidates, a State party committee may make the following expenditures for services to participating candidates the party has nominated: Gov. and Lt. Gov. $2,500,000 Att. Gen or Comp. $1,000,000 Senate $100,000 State Assembly $50,000 At-large Delegate $50,000 District Delegate $10,000 * Transfers to a participating candidate may constitute up:to 251 of such party expenditures.   ENFORCEMENT: Enforcement of the new Title II will be handled by a newly created Campaign Finance Board. This will be a new unit within the State Board of Elections charged with the oversight and enforcement under the new Title II public financing scheme. The Campaign Finance Board will be comprised of five members. The members of the board will be appointed as follows: one by the Governor and one by each of the four legislative leaders.   DEBATES: Participating candidates are required to participate in at least one debate before the primary election and in at least one debate before the general election for which the candidate receives public funds, unless the Participating candidate is running unopposed. A non- participating candidate may be a party to such debates.   SOURCES OF FUNDING: The bill provides for three separate sources of funding for the public financing regime: 1) The bill provides an income tax check-off of $5. Such monies would be paid into a separate fund, known as the New York State Campaign Finance Fund. The taxpayers' tax liability would not be affected by making this designation. 2) In addition, the bill imposes an additional 10% surcharge on recov- eries for fraudulent practices relating to stocks, bonds, other securi- ties as well as all other recoveries having to do With fraud by the Attorney General. 3) If the state campaign finance fund lacks the money to pay all proper- ly certified claims the deficiency will be paid from the general fund.   PENALTIES:   CIVIL * The failure to make proper campaign finance filings, as required by Title II and rules and regulations Promulgated thereunder, shall subject the offender to a civil penalty of up to $5000. * Any person or authorized committee who knowingly and willfully violates any other provision of Title II or any regulations promulgated thereunder shall subject the offender to a civil penalty of up to $10,000.   CRIMINAL * All prosecutions under Title II for criminal acts shall be prosecuted by the Attorney General. * The failure to make proper campaign finance filings, as required by Title II within 10 days or anyone that willfully violates any other provision of this title shall be guilty,of a misdemeanor, and in addi- tion to such other penalties as may be provided by law; shall be subject to a fine not to exceed the amount of $10,000. * Any person who knowingly and willfully contributes, accepts or aids or participates in the acceptance of a contribution in an amount exceeding an applicable maximum specified in this article shall be guilty of a misdemeanor and shall be subject to a tine not to exceed the amount of $10,000. * Any person who knowingly and willfully makes a false statement or knowingly omits a material fact to the campaign finance board or an auditor designated by the campaign finance board during any audit conducted pursuant to new section 14-214 of the Election Law shall be guilty of a class E felony. * In addition to any other sentence lawfully imposed upon a finding of guilt in a criminal prosecution commenced under the provisions of this bill, a court.may order a defendant to repay to the campaign finance board any public matching funds obtained as a result of any criminal conduct.   LEGISLATIVE HISTORY: A8902-A of 2009.   JUSTIFICATION: This public financing bill provides a comprehensive yet balanced approach to the public financing of political campaigns. It contains significant but realistic limitations on expenditures and contribution receipts, a means for recovering public funds when they are unspent, excessive or used for prohibited purposes, and penalties for violations of the filing requirements or the expenditure limitations for participants. The "matching grant" structure of the program has several advantages. It will reduce the amount of time a candidate must spend raising money, leaving More time to address the issues that are important to the public. The matching component allows for participation by private citi- zens throughout the campaign while also conserving resources by ensuring that only candidates who can show substantial voter support and face opposition will be eligible to receive public funds. Overall, the bill strikes a balance that allows challengers and incum- bents to compete fairly while capping the amount of public funds that will be expended.   FISCAL IMPLICATIONS: There will be no cost in 2012. In 2014, there could he costs associated with participating candidates seeking election to the office of state comptroller. There would be no cost in 2013. In 2016, there could be costs associated with participating candidates seeking election to state legislative office. In 2018, there could be costs associated with participating candidates seeking election to a statewide office or as a constitutional delegate. Other states that have public financing systems in place have had very low participation rates at first with increasing participation in later elections. The long term cost of the system in New York is unknown.   EFFECTIVE DATE: This act takes effect immediately; provided, however, that candidates for state comptroller will be eligible to participate in the public financing system beginning with the 2014 election, state legislative candidates will be eligible to participate in 2016 and all statewide candidates and constitutional delegates will be eligible to participate in 2018.
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A09885 Text:



 
                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.
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