Bill Text: NY A00427 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to matching financing; relates to the New York state campaign finance fund and the abandoned property fund.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Introduced - Dead) 2020-01-08 - referred to election law [A00427 Detail]
Download: New_York-2019-A00427-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 427 2019-2020 Regular Sessions IN ASSEMBLY (Prefiled) January 9, 2019 ___________ Introduced by M. of A. ABINANTI, GALEF, THIELE, EPSTEIN, STIRPE -- read once and referred to the Committee on Election Law AN ACT to amend the election law, in relation to statements of campaign receipts, contributions, transfers and expenditures to and by poli- tical committees; to amend the election law, in relation to establish- ing a contribution limit for certain contributions to a party commit- tee or constituted committee; to amend the election law, in relation to public financing; to amend the state finance law, in relation to the New York state campaign finance fund; to amend the tax law, in relation to the New York state campaign finance fund check-off; to amend the election law, in relation to enforcement proceedings; and providing for the repeal of such provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1 of section 14-102 of the election law, as 2 amended by chapter 8 and as redesignated by chapter 9 of the laws of 3 1978, is amended to read as follows: 4 1. The treasurer of every political committee which, or any officer, 5 member or agent of any such committee who, in connection with any 6 election, receives or expends any money or other valuable thing or 7 incurs any liability to pay money or its equivalent shall file state- 8 ments sworn, or subscribed and bearing a form notice that false state- 9 ments made therein are punishable as a class A misdemeanor pursuant to 10 section 210.45 of the penal law, at the times prescribed by this [arti-11cle] title setting forth all the receipts, contributions to and the 12 expenditures by and liabilities of the committee, and of its officers, 13 members and agents in its behalf. Such statements shall include the 14 dollar amount of any receipt, contribution or transfer, or the fair 15 market value of any receipt, contribution or transfer, which is other 16 than of money, the name and address of the transferor, contributor, or EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05258-01-9A. 427 2 1 person from whom received, and if the transferor, contributor or person 2 is a political committee; the name of and the political unit represented 3 by the committee, the date of its receipt, the dollar amount of every 4 expenditure, the name and address of the person to whom it was made or 5 the name of and the political unit represented by the committee to which 6 it was made and the date thereof, and shall state clearly the purpose of 7 such expenditure. Any statement reporting a loan shall have attached to 8 it a copy of the evidence of indebtedness. Expenditures in sums under 9 fifty dollars need not be specifically accounted for by separate items 10 in said statements, and receipts and contributions aggregating not more 11 than ninety-nine dollars, from any one contributor need not be specif- 12 ically accounted for by separate items in said statements, provided 13 however, that such expenditures, receipts and contributions shall be 14 subject to the other provisions of section 14-118 of this [article] 15 title. 16 § 2. The article heading of article 14 of the election law is amended 17 to read as follows: 18 CAMPAIGN RECEIPTS AND EXPENDITURES; 19 PUBLIC FINANCING 20 § 3. Paragraph b of subdivision 1 of section 14-114 of the election 21 law, as amended by chapter 659 of the laws of 1994, is amended and a new 22 paragraph d is added to read as follows: 23 b. In any other election for party position or for election to a 24 public office or for nomination for any such office, no contributor may 25 make a contribution to any candidate or political committee and no such 26 candidate or political committee may accept any contribution from any 27 contributor, which is in the aggregate amount greater than: (i) in the 28 case of any election for party position, or for nomination to public 29 office, the product of the total number of enrolled voters in the candi- 30 date's party in the district in which he or she is a candidate, exclud- 31 ing voters in inactive status, multiplied by $.05, and (ii) in the case 32 of any election for a public office, the product of the total number of 33 registered voters in the district, excluding voters in inactive status, 34 multiplied by $.05, except in the case of a candidate for attorney 35 general not participating in the state's attorney general public 36 campaign financing system defined in title two of this article, multi- 37 plied by $.03 and in the case of a candidate for attorney general 38 participating in the state's attorney general public campaign financing 39 system defined in title two of this article, multiplied by $.01, however 40 in the case of a nomination within the city of New York for the office 41 of mayor, public advocate or comptroller, such amount shall be not less 42 than four thousand dollars nor more than twelve thousand dollars as 43 increased or decreased by the cost of living adjustment described in 44 paragraph c of this subdivision; in the case of an election within the 45 city of New York for the office of mayor, public advocate or comp- 46 troller, twenty-five thousand dollars as increased or decreased by the 47 cost of living adjustment described in paragraph c of this subdivision; 48 in the case of a nomination for state senator, four thousand dollars as 49 increased or decreased by the cost of living adjustment described in 50 paragraph c of this subdivision; in the case of an election for state 51 senator, six thousand two hundred fifty dollars as increased or 52 decreased by the cost of living adjustment described in paragraph c of 53 this subdivision; in the case of an election or nomination for a member 54 of the assembly, twenty-five hundred dollars as increased or decreased 55 by the cost of living adjustment described in paragraph c of this subdi- 56 vision; but in no event shall any such maximum exceed fifty thousandA. 427 3 1 dollars or be less than one thousand dollars; provided however, that the 2 maximum amount which may be so contributed or accepted, in the aggre- 3 gate, from any candidate's child, parent, grandparent, brother and 4 sister, and the spouse of any such persons, shall not exceed in the case 5 of any election for party position or nomination for public office an 6 amount equivalent to the number of enrolled voters in the candidate's 7 party in the district in which he or she is a candidate, excluding 8 voters in inactive status, multiplied by $.25 and in the case of any 9 election to public office, an amount equivalent to the number of regis- 10 tered voters in the district, excluding voters in inactive status, 11 multiplied by $.25; or twelve hundred fifty dollars, whichever is great- 12 er, or in the case of a nomination or election of a state senator, twen- 13 ty thousand dollars, whichever is greater, or in the case of a nomi- 14 nation or election of a member of the assembly twelve thousand five 15 hundred dollars, whichever is greater, but in no event shall any such 16 maximum exceed one hundred thousand dollars. 17 d. Notwithstanding any other contribution limit in this section, 18 participating candidates as defined in subdivision fourteen of section 19 14-201 of this article may contribute, out of their own money, three 20 times the applicable contribution limit for non-participating candidates 21 to their own authorized political committee. 22 § 4. Sections 14-100 through 14-132 of the election law are designated 23 title I and a new title heading is added to read as follows: 24 CAMPAIGN RECEIPTS AND EXPENDITURES 25 § 5. Article 14 of the election law is amended by adding a new title 26 II to read as follows: 27 TITLE II 28 PUBLIC FINANCING 29 Section 14-200. Legislative findings and intent. 30 14-201. Definitions. 31 14-202. Reporting requirements. 32 14-203. Contributions. 33 14-204. Proof of compliance. 34 14-205. Eligibility. 35 14-206. Limits on public financing. 36 14-207. Payment of public matching funds. 37 14-208. Use of public matching funds; qualified campaign expend- 38 itures. 39 14-209. Powers and duties of the board. 40 14-210. Audits and repayments. 41 14-211. Enforcement and penalties for violations and other 42 proceedings. 43 14-212. Reports. 44 14-213. Severability. 45 § 14-200. Legislative findings and intent. The legislature finds and 46 determines that the attorney general for the state fulfills a unique 47 role in government, substantively distinct from other offices. 48 The legislature also finds and determines that the attorney general is 49 not elected to represent the views of voters, but rather is elected to 50 uphold the law. 51 The legislature additionally finds and determines that the attorney 52 general's impartiality and independence is critical to maintaining 53 public confidence and the rule of law.A. 427 4 1 The legislature additionally finds and determines that the attorney 2 general must maintain impartiality and independence and the appearance 3 of impartiality and independence. 4 The legislature additionally finds and determines that raising the 5 necessary funds to run for the office of attorney general has the poten- 6 tial to reduce the appearance of attorney general impartiality. 7 The legislature additionally finds and determines that the need for 8 the attorney general to be independent and impartial, is furthered by an 9 attorney general public campaign finance system. 10 The legislature additionally finds and determines that a public 11 campaign finance system for candidates for the office of attorney gener- 12 al reduces the potential for partiality. 13 § 14-201. Definitions. For the purposes of this title, the following 14 terms shall have the following meanings: 15 1. The term "authorized political committee" shall mean the single 16 political committee designated by a candidate pursuant to section 14-202 17 of this title to receive contributions and make expenditures in support 18 of the candidate's campaign. 19 2. The term "board" shall mean the state board of elections. 20 3. The term "contribution" shall have the same meaning as appears in 21 subdivision nine of section 14-100 of this article. 22 4. The term "contributor" shall mean any person or entity that makes a 23 contribution. 24 5. The term "covered election" shall mean any general election for the 25 office of attorney general. 26 6. The term "election cycle" shall mean any primary or general 27 election for nomination for election or election to the office of attor- 28 ney general. 29 7. The term "expenditure" shall mean any gift, subscription, advance, 30 payment, or deposit of money or anything of value, or a contract to make 31 any gift, subscription, payment, or deposit of money or anything of 32 value, made in connection with the nomination for election, or election, 33 of any candidate. Expenditures made by contract are deemed made when 34 such funds are obligated. 35 8. The term "fund" shall mean the New York state attorney general 36 campaign finance fund. 37 9. The term "immediate family" shall mean a spouse, domestic partner, 38 child, sibling or parent. 39 10. The term "intermediary" shall mean an individual, corporation, 40 partnership, political committee, employee organization or other entity 41 which bundles, causes to be delivered or otherwise delivers any contrib- 42 ution from another person or entity to a candidate's authorized poli- 43 tical committee, other than in the regular course of business as a 44 postal, delivery or messenger service. Provided, however, that an 45 "intermediary" shall not include spouses, domestic partners, parents, 46 children or siblings of the person making such contribution or a staff 47 member or volunteer of the campaign identified in writing to the state 48 board of elections. 49 11. The term "item with significant intrinsic and enduring value" 50 shall mean any item, including tickets to an event, that are valued at 51 twenty-five dollars or more. 52 12. (a) The term "matchable contribution" shall mean a lawful contrib- 53 ution, contributions or a portion of a contribution or contributions for 54 any covered elections held in the same election cycle, made by a natural 55 person and resident of the state to a participating candidate's author- 56 ized political committee, that has been reported in full to the board inA. 427 5 1 accordance with sections 14-102 and 14-104 of this article by the candi- 2 date's authorized political committee and has been contributed on or 3 before the day of the applicable general election. Any contribution, 4 contributions, or a portion of a contribution determined to be invalid 5 for matching funds by the board may not be treated as a matchable 6 contribution for any purpose. 7 (b) The following contributions are not matchable: 8 (i) loans; 9 (ii) in-kind contributions of property, goods, or services; 10 (iii) contributions in the form of the purchase price paid for an item 11 with significant intrinsic and enduring value; 12 (iv) transfers from a party or constituted committee; 13 (v) contributions whose source is not itemized as required by section 14 14-202 of this title; 15 (vi) contributions gathered during a previous election cycle; 16 (vii) illegal contributions; 17 (viii) contributions from minors; 18 (ix) contributions from vendors for campaigns; and 19 (x) contributions from lobbyists registered pursuant to subdivision 20 (a) of section one-c of the legislative law. 21 13. The term "nonparticipating candidate" shall mean a candidate for a 22 covered election who does not file a written certification in the form 23 of an affidavit under section 14-205 of this title by the applicable 24 deadline. 25 14. The term "participating candidate" shall mean any candidate for 26 election to the office of attorney general, who files a written certif- 27 ication in the form of an affidavit pursuant to section 14-205 of this 28 title. 29 15. The term "post-election period" shall mean the six months follow- 30 ing an election. 31 16. The term "qualified campaign expenditure" shall mean an expendi- 32 ture for which public matching funds may be used. 33 17. The term "threshold for eligibility" shall mean the amount of 34 matchable contributions that a candidate's authorized political commit- 35 tee must receive in total in order for such candidate to qualify for 36 voluntary public financing under this title. 37 18. The term "transfer" shall mean any exchange of funds between a 38 party or constituted committee and a candidate or any of his or her 39 authorized political committees. 40 § 14-202. Reporting requirements. 1. Political committee registra- 41 tion. Political committees as defined pursuant to subdivision one of 42 section 14-100 of this article shall register with the board before 43 making any contribution or expenditure. The board shall publish a cumu- 44 lative list of political committees that have registered, including on 45 its webpage, and regularly update it. 46 2. Only one authorized political committee per candidate per elective 47 office sought. Before receiving any contribution or making any expendi- 48 ture for a covered election, each candidate shall notify the board as to 49 the existence of his or her authorized political committee that has been 50 approved by such candidate. Each candidate shall have one and only one 51 authorized political committee per elective office sought. Each author- 52 ized political committee shall have a treasurer and is subject to the 53 restrictions found in section 14-112 of this article. 54 3. (a) Detailed reporting. In addition to each authorized political 55 committee reporting to the board every contribution and loan received 56 and every expenditure made in the time and manner prescribed by sectionsA. 427 6 1 14-102, 14-104 and 14-108 of this article, each authorized political 2 committee of a candidate intending to participate in the attorney gener- 3 al public financing system shall also submit disclosure reports on March 4 fifteenth and May fifteenth of each election year reporting to the board 5 every contribution and loan received and every expenditure made. For 6 contributors who make contributions of five hundred dollars or more, 7 each authorized political committee shall report to the board the occu- 8 pation, and employer of each contributor, lender, and intermediary. The 9 board shall revise, prepare and post forms on its webpage that facili- 10 tate compliance with the requirements of this section. 11 (b) Board review. The board shall review each disclosure report filed 12 and shall inform the treasurer of the authorized political committee of 13 relevant questions it has concerning: (i) compliance with requirements 14 of this title and of the rules issued by the board; and (ii) qualifica- 15 tion for receiving public matching funds pursuant to this title. In the 16 course of this review, it shall give authorized political committees an 17 opportunity to respond to and correct potential violations and give 18 candidates an opportunity to address questions it has concerning their 19 matchable contribution claims or other issues concerning eligibility for 20 receiving public matching funds pursuant to this title. Upon completion 21 of the compliance review, nothing in this paragraph shall preclude the 22 chief enforcement counsel from subsequently reviewing such disclosure 23 reports and taking any action otherwise authorized under this title. 24 (c) Itemization. Contributions that are not itemized in reports filed 25 with the board shall not be matchable. 26 (d) Option to file more frequently. Participating candidates may file 27 reports of contributions as frequently as once a week on Monday so that 28 their matching funds may be paid at the earliest allowable date. 29 § 14-203. Contributions. Recipients of funds pursuant to this title 30 shall be subject to the applicable contribution limits set forth in 31 section 14-114 of this article. 32 § 14-204. Proof of compliance. Authorized political committees shall 33 maintain such records of receipts and expenditures for a covered 34 election as required by the board. The treasurer of an authorized poli- 35 tical committee shall obtain and furnish to the board any information it 36 may request relating to financial transactions or contributions and 37 furnish such documentation and other proof of compliance with this title 38 as may be requested. In compliance with section 14-108 of this article, 39 authorized political committees shall maintain copies of such records 40 for a period of five years. 41 § 14-205. Eligibility. 1. Terms and conditions. To be eligible for 42 voluntary public financing under this title, a candidate must: 43 (a) be a candidate in a covered election; 44 (b) meet all the requirements of law to have his or her name on the 45 ballot; 46 (c) in the case of a covered election, be opposed by another candidate 47 on the ballot who is not a write-in candidate; 48 (d) submit a certification in the form of an affidavit, in such form 49 as may be prescribed by the board, that sets forth his or her acceptance 50 of and agreement to comply with the terms and conditions for the 51 provision of such funds in each covered election and such certification 52 shall be submitted at least four months before the election but no 53 earlier than nine months before the nomination pursuant to a schedule 54 promulgated by the board; 55 (e) be certified as a participating candidate by the board;A. 427 7 1 (f) not make, and not have made, expenditures from or use his or her 2 personal funds or property or the personal funds or property jointly 3 held with his or her spouse, or unemancipated children in connection 4 with his or her election to a covered office, but may make a contrib- 5 ution to his or her authorized political committee in an amount that 6 does not exceed three times the applicable contribution limit from an 7 individual contributor to non-participating candidates for the office 8 that he or she is seeking; 9 (g) meet the threshold for eligibility set forth in subdivision two of 10 this section; 11 (h) continue to abide by all requirements during the post-election 12 period; 13 (i) not have accepted contributions in amounts exceeding the contrib- 14 ution limits set forth for participating candidates in paragraph b of 15 subdivision one of section 14-114 of this article during the election 16 cycle for which the candidate seeks certification; 17 (i) Provided however, that, if a candidate accepted contributions 18 exceeding such limits before certification, such acceptance shall not 19 prevent the candidate from being certified by the board if the candidate 20 immediately pays to the fund or returns to the contributor the portion 21 of any contribution that exceeded the applicable contribution limit. 22 (ii) If the candidate is unable to return such funds immediately 23 because they have already been spent, acceptance of contributions 24 exceeding the limits shall not prevent the candidate from being certi- 25 fied by the board if the candidate submits an affidavit agreeing to pay 26 to the fund from non-public funds all portions of any contributions that 27 exceeded the limit no later than thirty days before the general 28 election. If a candidate provides the board with such an affidavit, any 29 disbursement of public funds to the candidate made under section 14-207 30 of this title shall be reduced by no more than twenty-five percent until 31 the total amount owed by the candidate is repaid. 32 (iii) Contributions received and expenditures made by the candidate's 33 authorized political committee prior to the effective date of this title 34 shall not constitute a violation of this title; and 35 (j) comply with the rules governing prosecutorial conduct pursuant to 36 Rule 3.8 of Part 1200, Rules of Professional Conduct of the New York 37 State Unified Court System, as applicable. 38 2. Threshold for eligibility. The threshold for eligibility for public 39 funding for participating candidates shall be not less than ten thousand 40 dollars in matchable contributions including at least one hundred match- 41 able contributions comprised of sums between ten and two hundred fifty 42 dollars per contributor, from residents of the district in which the 43 office is to be filled. 44 § 14-206. Limits on public financing. In any general election, 45 receipt of public funds by a participating candidate's authorized poli- 46 tical committee shall not exceed the sum of four million dollars. 47 § 14-207. Payment of public matching funds. 1. Determination of eligi- 48 bility. No public matching funds shall be paid to an authorized poli- 49 tical committee unless the board determines that the participating 50 candidate has met the eligibility requirements of this title. Payment 51 shall not exceed the amounts specified in subdivision two of this 52 section, and shall be made only in accordance with the provisions of 53 this title. Such payment may be made only to the participating candi- 54 date's authorized political committee. No public matching funds shall be 55 used except as reimbursement or payment for qualified campaign expendi-A. 427 8 1 tures actually and lawfully incurred or to repay loans used to pay qual- 2 ified campaign expenditures. 3 2. Calculation of payment. If the threshold for eligibility is met, 4 the participating candidate's authorized political committee shall 5 receive payment for qualified campaign expenditures of two dollars of 6 public matching funds for each one dollar of matchable contributions, 7 for the first two hundred fifty dollars of eligible private funds per 8 contributor, obtained and reported to the board in accordance with the 9 provisions of this title. The maximum payment of public matching funds 10 shall be limited to the amounts set forth in section 14-206 of this 11 title for the covered election. 12 3. Timing of payment. The board shall make any payment of public 13 matching funds to participating candidate's authorized political commit- 14 tees as soon as is practicable. But in all cases, it shall verify eligi- 15 bility for public matching funds within four business days, excluding 16 weekends and holidays, of receiving a campaign contribution report filed 17 in compliance with section 14-104 of this article. Within two business 18 days of determining that a candidate for a covered office is eligible 19 for public matching funds, it shall authorize payment of the applicable 20 matching funds owed to the candidate. However, it shall not make any 21 payments of public money earlier than the earliest dates for making such 22 payments as provided by this title. If any of such payments would 23 require payment on a weekend or federal holiday, payment shall be made 24 on the next business day. 25 4. Electronic funds transfer. The board shall, in consultation with 26 the office of the comptroller, promulgate rules to facilitate electronic 27 funds transfers directly from the campaign finance fund into an author- 28 ized committee's bank account. 29 § 14-208. Use of public matching funds; qualified campaign expendi- 30 tures. 1. Public matching funds provided under the provisions of this 31 title may be used only by an authorized political committee for expendi- 32 tures to further the participating candidate's election, including 33 paying for debts incurred within nine months prior to a nomination to 34 further the participating candidate's election. 35 2. Such public matching funds may not be used for: 36 (a) an expenditure in violation of any law; 37 (b) an expenditure in excess of the fair market value of services, 38 materials, facilities or other things of value received in exchange; 39 (c) an expenditure made after the candidate has been finally disquali- 40 fied from the ballot and all judicial remedies have been exhausted; 41 (d) an expenditure made after the only remaining opponent of the 42 candidate has been finally disqualified from the general election ballot 43 and all judicial remedies have been exhausted; 44 (e) an expenditure made by cash payment; 45 (f) a contribution or loan or transfer made to or expenditure to 46 support another candidate or political committee or party, committee or 47 constituted committee; 48 (g) an expenditure to support or oppose a candidate for an office 49 other than that which the participating candidate seeks; 50 (h) gifts, except brochures, buttons, signs and other printed campaign 51 material; 52 (i) legal fees to defend against a criminal charge; 53 (j) payments to immediate family members of the participating candi- 54 date;A. 427 9 1 (k) any expenditure made to challenge the validity of any petition of 2 designation or nomination or any certificate of nomination, declination 3 or substitution; 4 (l) any impermissible personal use under section 14-130 of this arti- 5 cle; or 6 (m) any use which would violate the Rules of Professional Conduct of 7 the New York State Unified Court System, as applicable. 8 § 14-209. Powers and duties of the board. 1. Advisory opinions. The 9 board shall render advisory opinions with respect to questions arising 10 under this title upon the written request of a candidate, an officer of 11 a political committee or member of the public, or upon its own initi- 12 ative. The board shall promulgate rules regarding reasonable times to 13 respond to such requests. The board shall make public the questions of 14 interpretation for which advisory opinions will be considered by the 15 board and its advisory opinions, including by publication on its webpage 16 with identifying information redacted as the board determines to be 17 appropriate. 18 2. Public information and candidate education. The board shall develop 19 a program for informing candidates and the public as to the purpose and 20 effect of the provisions of this title, including by means of a webpage. 21 The board shall prepare in plain language and make available educational 22 materials, including compliance manuals and summaries and explanations 23 of the purposes and provisions of this title. The board shall prepare or 24 have prepared and make available materials, including access to an elec- 25 tronic recordkeeping and filing system, to facilitate the task of 26 compliance with the disclosure and recordkeeping requirements of this 27 title. 28 3. Rules and regulations. The board shall have the authority to 29 promulgate such rules and regulations and provide such forms as it deems 30 necessary for the administration of this title. 31 4. Database. The board shall develop an interactive, searchable 32 computer database that shall contain all information necessary for the 33 proper administration of this title including information on contrib- 34 utions to and expenditures by candidates and their authorized political 35 committee, independent expenditures in support or opposition of candi- 36 dates for covered offices, and distributions of moneys from the fund. 37 Such database shall be accessible to the public on the board's webpage 38 no later than June first, two thousand twenty-one. 39 § 14-210. Audits and repayments. 1. Audits. The board shall audit and 40 examine all matters relating to the proper administration of this title 41 and shall complete such audit no later than six months after the 42 election in question. Every candidate who receives public funds under 43 this title shall be audited by the board. The cost of complying with a 44 post-election audit shall be borne by the candidate's authorized poli- 45 tical committee using public funds, private funds or any combination of 46 such funds. The authorized political committee of a participating 47 candidate must maintain a reserve of three percent of the public funds 48 received to comply with the post-election audit. Any public reserve 49 funds not used shall be remitted to the New York state attorney general 50 campaign finance fund. The board shall issue to each campaign audited a 51 final audit report that details its findings. 52 2. Repayments. (a) If the board determines that any portion of the 53 payment made to a candidate's authorized political committee from the 54 fund was in excess of the aggregate amount of payments that such candi- 55 date was eligible to receive pursuant to this title, it shall notify 56 such committee and such committee shall pay to the board an amount equalA. 427 10 1 to the amount of excess payments. Provided, however, that if the errone- 2 ous payment was the result of an error by the board, then the erroneous 3 payment will be deducted from any future payment, if any, and if no 4 payment is to be made then neither the candidate nor the committee shall 5 be liable to repay the excess amount to the board. The candidate, the 6 treasurer and the candidate's authorized political committee are jointly 7 and severally liable for any repayments to the board. 8 (b) If the board determines that any portion of the payment made to a 9 candidate's authorized political committee from the fund was used for 10 purposes other than qualified campaign expenditures and such expendi- 11 tures were not approved by the board, it shall notify such committee of 12 the amount so disqualified and such committee shall pay to the board an 13 amount equal to such disqualified amount. The candidate, the treasurer 14 and the candidate's authorized political committee are jointly and 15 severally liable for any repayments to the board. 16 (c) If the total of payments from the fund received by a participating 17 candidate's authorized political committee exceed the total campaign 18 expenditures of such candidate's authorized political committee, such 19 candidate's authorized political committee shall use such excess funds 20 to reimburse the fund for payments received by such authorized political 21 committee from the fund during such calendar year. Participating candi- 22 dates' authorized political committees shall pay to the board unspent 23 public campaign funds from an election not later than twenty-seven days 24 after all liabilities for the election have been paid and in any event, 25 not later than the day on which the board issues its final audit report 26 for the participating candidate's authorized political committee; 27 provided, however, that all unspent public campaign funds for a partic- 28 ipating candidate shall be immediately due and payable to the board upon 29 a determination by the board that the participant has delayed the post- 30 election audit. A participating candidate's authorized political commit- 31 tee may make post-election expenditures with public funds only for 32 routine activities involving nominal cost associated with winding up a 33 campaign and responding to the post-election audit. Nothing in this 34 title shall be construed to prevent a candidate or his or her authorized 35 political committee from using campaign contributions received from 36 private contributors for otherwise lawful expenditures. 37 3. Rules and regulations. The board shall promulgate regulations for 38 the certification of the amount of funds payable by the comptroller, 39 from the fund established pursuant to section ninety-two-t of the state 40 finance law, to a participating candidate's authorized political commit- 41 tee that has qualified to receive such payment. These regulations shall 42 include the periods during which such reports must be filed and the 43 verification required, and the board shall develop forms on which 44 contributions and expenditures are to be reported. The board shall 45 institute procedures which will make possible payment by the fund within 46 four business days after receipt of the required forms and verifica- 47 tions. 48 § 14-211. Enforcement and penalties for violations and other 49 proceedings. 1. Civil penalties. Any person who, acting as or on behalf 50 of a candidate or such candidate's authorized political committee, 51 violates any provision of this title, under circumstances evincing an 52 intent to violate such provision, shall be subject to a civil penalty in 53 an amount not in excess of ten thousand dollars, to be recoverable in a 54 special proceeding or civil action to be brought by the chief enforce- 55 ment counsel pursuant to sections 3-104 and 3-104-a of this chapter.A. 427 11 1 2. Criminal conduct. Any person who knowingly and willfully furnishes 2 or submits false statements or information to the board in connection 3 with its administration of this title, shall be guilty of a misdemeanor 4 in addition to any other penalty as may be imposed under this chapter or 5 pursuant to any other law. Any referral for prosecution under this 6 subdivision shall be made pursuant to section 3-104 of this chapter. 7 Upon conviction, the chief enforcement counsel shall initiate a special 8 proceeding or civil action to recover any public matching funds obtained 9 as a result of such criminal conduct. 10 3. Proceedings as to public financing. (a) The determination of eligi- 11 bility pursuant to this title and any question or issue relating to 12 payments for campaign expenditures pursuant to this title may be 13 contested in a proceeding instituted in the Supreme court, Albany coun- 14 ty, by an aggrieved candidate. 15 (b) A proceeding with respect to such a determination of eligibility 16 or payment for qualified campaign expenditures pursuant to this chapter 17 shall be instituted within fourteen days after such determination was 18 made. The board shall be made a party to any such proceeding. 19 (c) Upon the board's failure to receive the amount due from a partic- 20 ipating candidate or such candidate's authorized political committee 21 after the issuance of written notice of such amount due, as required by 22 this title, the chief enforcement counsel is authorized to seek recovery 23 of such amount pursuant to sections 3-104 and 3-104-a of this chapter. 24 (d) Any such funds obtained or collected through judgment or settle- 25 ment shall be remitted to the New York state attorney general campaign 26 finance fund. 27 § 14-212. Reports. The board shall review and evaluate the effect of 28 this title upon the conduct of election campaigns and shall submit an 29 annual report to the governor and the legislature on or before May 30 first, two thousand twenty-two, and on or before May first of every year 31 thereafter, and at any other time upon the request of the governor and 32 at such other times as the board deems appropriate. These reports shall 33 include: 34 1. a list of the participating and nonparticipating candidates in 35 covered elections and the votes received by each candidate in those 36 elections; 37 2. the amount of contributions and loans received, and expenditures 38 made, on behalf of these candidates; 39 3. the amount of public matching funds each participating candidate 40 received, spent, and repaid pursuant to this title; 41 4. analysis of the effect of this title on political campaigns, 42 including its effect on the sources and amounts of private financing, 43 the level of campaign expenditures, voter participation, the number of 44 candidates, the candidates' ability to campaign effectively for public 45 office, and the diversity of candidates seeking and elected to office; 46 and 47 5. recommendations for amendments to this title, including changes in 48 contribution limits, thresholds for eligibility, and any other features 49 of the system. 50 § 14-213. Severability. If any clause, sentence, subdivision, para- 51 graph, section or part of this title be adjudged by any court of compe- 52 tent jurisdiction to be invalid, such judgment shall not affect, impair 53 or invalidate the remainder thereof, but shall be confined in its opera- 54 tion to the clause, sentence, subdivision, paragraph, section or part 55 thereof directly involved in the controversy in which such judgment 56 shall have been rendered.A. 427 12 1 Nothing in this title shall be construed to require candidates or 2 candidates' authorized political committees to commit any act which 3 would violate the rules governing attorney general conduct pursuant to 4 the Rules of Professional Conduct of the New York State Unified Court 5 System, as applicable. To the extent that any provision in this title 6 conflicts with such rules, the rules shall control. 7 § 6. The state finance law is amended by adding a new section 92-t to 8 read as follows: 9 § 92-t. New York state attorney general campaign finance fund. 1. 10 There is hereby established in the joint custody of the state comp- 11 troller and the commissioner of taxation and finance a fund to be known 12 as the New York state attorney general campaign finance fund. 13 2. Such fund shall consist of all revenues received from the New York 14 state attorney general campaign finance fund check-off pursuant to 15 subsection (h) of section six hundred fifty-eight of the tax law, from 16 the abandoned property fund pursuant to section ninety-five of this 17 article, from the general fund, and from all other moneys credited or 18 transferred thereto from any other fund or source pursuant to law. Such 19 fund shall also receive contributions from private individuals, organ- 20 izations, or other persons to fulfill the purposes of the attorney 21 general public financing system, as well as any funds remitted pursuant 22 to section 14-211 of the election law. 23 3. Moneys of the fund, following appropriation by the legislature, may 24 be expended for the purposes of making payments to candidates pursuant 25 to title II of article fourteen of the election law and for administra- 26 tive expenses related to the implementation of article fourteen of the 27 election law. Moneys shall be paid out of the fund by the state comp- 28 troller on vouchers certified or approved by the state board of 29 elections, or its duly designated representative, in the manner 30 prescribed by law, not more than five business days after such voucher 31 is received by the state comptroller. 32 4. Notwithstanding any provision of law to the contrary, if, in any 33 state fiscal year, the state attorney general campaign finance fund 34 lacks the amount of money to pay all claims vouchered by eligible candi- 35 dates and certified or approved by the state board of elections, any 36 such deficiency shall be paid by the state comptroller, from funds 37 deposited in the general fund of the state not more than four business 38 days after such voucher is received by the state comptroller. 39 5. Commencing in two thousand twenty-two, if the surplus in the fund 40 on April first of the year after a year in which a governor is elected 41 exceeds twenty-five percent of the disbursements from the fund over the 42 previous four years, the excess shall revert to the general fund of the 43 state. 44 6. No public funds shall be paid to any participating candidates in a 45 general election any earlier than the last day to decline an attorney 46 general nomination pursuant to subdivision seven of section 6-158 of the 47 election law. 48 7. No public funds shall be paid to the authorized political committee 49 of any participating candidate who has been disqualified or whose nomi- 50 nation has been declared invalid by the appropriate board of elections 51 or a court of competent jurisdiction until and unless such finding is 52 reversed by a higher court in a final judgment. No payment from the 53 fund in the possession of such participating candidate's authorized 54 political committee on the date of such disqualification or invalidation 55 may thereafter be expended for any purpose except the payment of liabil-A. 427 13 1 ities incurred before such date. All other such moneys shall be repaid 2 to the fund. 3 § 7. Section 95 of the state finance law is amended by adding a new 4 subdivision 5 to read as follows: 5 5. (a) As often as necessary, the co-chairs of the state board of 6 elections shall certify the amount such co-chairs have determined neces- 7 sary to fund estimated payments from the fund established by section 8 ninety-two-t of this article for the general election. 9 (b) Notwithstanding any provision of this section authorizing the 10 transfer of any moneys in the abandoned property fund to the general 11 fund, the comptroller, after receiving amounts sufficient to pay claims 12 against the abandoned property fund, shall, based upon a certification 13 of the state board of elections pursuant to paragraph (a) of this subdi- 14 vision, and at the direction of the director of the budget, transfer the 15 requested amount from remaining available monies in the abandoned prop- 16 erty fund to the New York state attorney general campaign finance fund 17 established by section ninety-two-t of this article. 18 § 8. Section 658 of the tax law is amended by adding a new subsection 19 (h) to read as follows: 20 (h) New York state attorney general campaign finance fund check-off. 21 (1) For each taxable year beginning on and after January first, two 22 thousand twenty, every resident taxpayer whose New York state income tax 23 liability for the taxable year for which the return is filed is forty 24 dollars or more may designate on such return that forty dollars be paid 25 into the New York state attorney general campaign finance fund estab- 26 lished by section ninety-two-t of the state finance law. Where a husband 27 and wife file a joint return and have a New York state income tax 28 liability for the taxable year for which the return is filed is eighty 29 dollars or more, or file separate returns on a single form, each such 30 taxpayer may make separate designations on such return of forty dollars 31 to be paid into the New York state attorney general campaign finance 32 fund. 33 (2) The commissioner shall transfer to the New York state attorney 34 general campaign finance fund, established pursuant to section ninety- 35 two-t of the state finance law, an amount equal to forty dollars multi- 36 plied by the number of designations. 37 (3) For purposes of this subsection, the income tax liability of an 38 individual for any taxable year is the amount of tax imposed under this 39 article reduced by the sum of the credits (as shown in his or her 40 return) allowable under this article. 41 (4) The department shall include a place on every personal income tax 42 return form to be filed by an individual for a tax year beginning on or 43 after January first, two thousand twenty-one, for such taxpayer to make 44 the designations described in paragraph one of this subsection. Such 45 return form shall contain a concise explanation of the purpose of such 46 optional designations. 47 § 9. Section 16-120 of the election law, as added by section 5 of 48 part E of chapter 399 of the laws of 2011, is amended to read as 49 follows: 50 § 16-120. Enforcement proceedings. 1. The supreme court or a justice 51 thereof, in a proceeding instituted by the state board of elections, may 52 impose a civil penalty, as provided for in subdivisions one and two of 53 section 14-126 of this chapter and as provided for in subdivision one of 54 section 14-211 of this chapter. 55 2. Upon proof that a violation of article fourteen of this chapter, as 56 provided in subdivision one of this section, has occurred, the court mayA. 427 14 1 impose a civil penalty, pursuant to subdivisions one and two of section 2 14-126 of this chapter and pursuant to subdivision one of section 14-211 3 of this chapter, after considering, among other factors, the severity of 4 the violation or violations, whether the subject of the violation made a 5 good faith effort to correct the violation and whether the subject of 6 the violation has a history of similar violations. All such determi- 7 nations shall be made on a fair and equitable basis without regard to 8 the status of the candidate or political committee. 9 3. The supreme court or a justice thereof, in a proceeding to recover 10 public funds instituted pursuant to subdivision two of section 14-211 of 11 this chapter, may order the recovery of such public funds. 12 § 10. Severability. If any clause, sentence, subdivision, paragraph, 13 section or part of title II of article 14 of the election law, as added 14 by section five of this act be adjudged by any court of competent juris- 15 diction to be invalid, such judgment shall not affect, impair or invali- 16 date the remainder thereof, but shall be confined in its operation to 17 the clause, sentence, subdivision, paragraph, section or part thereof 18 directly involved in the controversy in which such judgment shall have 19 been rendered. 20 § 11. This act shall take effect immediately; provided, however, all 21 affected candidates will be eligible to participate in voluntary public 22 financing beginning with the 2021 election and provided, further, this 23 act shall expire June 1, 2024 when upon such date the provisions of this 24 act shall be deemed repealed.
