Bill Text: NY A05752 | 2015-2016 | General Assembly | Amended
Bill Title: Requires additional disclosures from lobbyists including: campaign contributions to elected officials; existing business relationships or associations with public officials; and the names of family members of a public official to whom the lobbyist, or his or her employer, paid compensation of over $500 in the preceding calendar year and the amount of compensation paid; provides for the disposition of campaign funds.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2016-05-06 - print number 5752a [A05752 Detail]
Download: New_York-2015-A05752-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5752--A 2015-2016 Regular Sessions IN ASSEMBLY March 4, 2015 ___________ Introduced by M. of A. KAVANAGH, GALEF -- read once and referred to the Committee on Governmental Operations -- recommitted to the Committee on Governmental Operations in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the legislative law and the election law, in relation to disclosures required for lobbyists, and to amend the election law and the public officers law, in relation to campaign funds for personal use The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "Lobbyist 2 Disclosure Campaign Fund Act". 3 § 2. Section 1-c of the legislative law is amended by adding a new 4 subdivision (x) to read as follows: 5 (x) The term "family member" shall mean any of the following, includ- 6 ing parents, stepparents, spouse, domestic partners, grandparents, 7 brothers, sisters, uncles, and aunts, whether of the whole blood or half 8 blood or by or through legal sanction. 9 § 3. Paragraph 5 of subdivision (b) of section 1-h of the legislative 10 law is amended by adding two new subparagraphs (vi) and (vii) to read as 11 follows: 12 (vi) the campaign contributions made, in any form, to any campaign or 13 political committee in New York state by the client by whom or on whose 14 behalf the lobbyist is retained, employed or designated, by the lobby- 15 ist, and by any employees of the lobbyist. 16 (vii) the amount of compensation paid and the names of any family 17 members of a public official to whom a lobbyist and the client by whom 18 or on whose behalf the lobbyist is retained, employed or designated has 19 paid compensation of more than five hundred dollars in the preceding 20 calendar year for personal employment or professional services. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00241-03-6A. 5752--A 2 1 § 4. Subdivision (b) of section 1-h of the legislative law is amended 2 by adding a new paragraph 6 to read as follows: 3 (6) the name, address and telephone number of any public official with 4 whom the lobbyist has any business relationship. 5 § 5. Paragraph 5 of subdivision (b) of section 1-j of the legislative 6 law is amended by adding two new subparagraphs (vi) and (vii) to read as 7 follows: 8 (vi) the campaign contributions made, in any form, to any campaign or 9 political committee in New York state by the client by whom or on whose 10 behalf the lobbyist is retained, employed or designated, by the lobby- 11 ist, and by any employees of the lobbyist. 12 (vii) the amount of compensation paid and the names of any family 13 members of a public official to whom a lobbyist and the client by whom 14 or on whose behalf the lobbyist is retained, employed or designated has 15 paid compensation of more than five hundred dollars in the preceding 16 calendar year for personal employment or professional services. 17 § 6. Subdivision (b) of section 1-j of the legislative law is amended 18 by adding a new paragraph 7 to read as follows: 19 (7) the name, address and telephone number of any public official with 20 whom the lobbyist has any business relationship. 21 § 7. The election law is amended by adding three new sections 14-131, 22 14-132 and 14-133 to read as follows: 23 § 14-131. Lobbyist reporting and contribution limits. 1. Definitions. 24 The following definitions shall apply to this section: 25 a. "agent" means any person acting at the direction of or on behalf of 26 an individual or business entity; 27 b. "business entity" means a business corporation, professional 28 services corporation, limited liability company, partnership, limited 29 partnership, business trust, association or any other legal commercial 30 entity organized under the laws of this state or any other state or 31 foreign jurisdiction, including any subsidiary directly or indirectly 32 controlled by the business entity, and any political organization, 33 including but not limited to any political organization organized under 34 section 527 of the Internal Revenue Code, that is directly or indirectly 35 controlled by the business entity; 36 c. "immediate family" means any spouse or child of an individual or 37 any financially dependent relatives who reside in the individual's 38 household; 39 d. "housekeeping account" means an account maintained by a party 40 committee or constituted committee from which expenditures are made to 41 maintain a permanent headquarters and staff and carry on ordinary party 42 activities which are not for the express purpose of promoting the candi- 43 dacy of specific candidates; 44 e. "candidate for state office" means a candidate for the following 45 state offices: governor, lieutenant governor, attorney general, comp- 46 troller, senator, and member of the assembly; 47 f. "behested payments" means contributions or payments solicited by 48 state elected officials to be used for legislative, governmental or 49 charitable purposes, but not campaign purposes; and 50 g. "personal business transaction" means transactions for services 51 offered by the elected official in his or her capacity as a private 52 citizen to any member of the public. 53 2. The following persons and business entities who make a contribution 54 to a candidate for state office, a political committee working directly 55 or indirectly to aid or participate in such candidate's nomination or 56 election, a political committee established or controlled by such candi-A. 5752--A 3 1 date, or a state or local committee of a political party, including a 2 housekeeping account, shall file reports as required by subdivision 3 three of this section with the state board of elections within seven 4 calendar days after the date of a contribution: 5 a. a lobbyist registered under section one-e of the legislative law, 6 including any person, organization, group of persons or business entity 7 that is so registered; 8 b. any person who owns more than ten percent of a business entity 9 described in paragraph a of this subdivision; 10 c. any person employed by an organization, group, or business entity 11 described in paragraph a of this subdivision who holds a senior manage- 12 ment position as defined by the commission on governmental ethics; 13 d. the immediate family member of a person who is described in para- 14 graph a, b or c of this subdivision; or 15 e. any political committee established or controlled by a person, 16 organization, group of persons or business entity described in para- 17 graphs a, b, c or d of this subdivision. 18 3. The board of elections shall prescribe forms and procedures for the 19 reporting required in subdivision two of this section which, at a mini- 20 mum, shall require electronic filing of the following information: 21 a. the name, address, employer and name of spouse of the person making 22 the contribution and the name of the spouse's employer; 23 b. the name of the candidate, political committee, or state or local 24 committee of a political party, including a housekeeping account, 25 receiving the contribution; 26 c. the amount and date of the contribution; and 27 d. if an organization, group of persons, or business entity is making 28 the contribution: 29 (i) the names and business addresses of all persons who own more than 30 ten percent of the organization, group or entity; or 31 (ii) the names and business addresses of all persons employed by the 32 organization, group, or business entity who hold a senior management 33 position as defined by the commission on governmental ethics. 34 4. Elected officials must report any behested payments they have 35 solicited if they total five thousand dollars or more per calendar year 36 from a single source within thirty days of the date the behested payment 37 is made on forms proscribed by the commission on governmental ethics. 38 5. The board of elections shall maintain completed forms and reports 39 described in subdivision two of this section for public inspection both 40 at the board of elections office and through the board of elections 41 electronic filing system for campaign finance disclosure (EFS). 42 6. It shall be unlawful for any person, organization, group of persons 43 or business entity described in paragraphs a, b, c, d and e of subdivi- 44 sion two of this section to: 45 a. make contributions to a candidate for state office, a political 46 committee working directly or indirectly to aid or participate in such 47 candidate's nomination or election, or a political committee established 48 or controlled by such candidate that exceed the following amounts per 49 election for the following offices: 50 (i) governor: five hundred dollars; 51 (ii) lieutenant governor: five hundred dollars; 52 (iii) attorney general: five hundred dollars; 53 (iv) comptroller: five hundred dollars; 54 (v) senator: three hundred fifty dollars; and 55 (vi) member of assembly: two hundred fifty dollars; 56 b. make contributions to:A. 5752--A 4 1 (i) political committees working directly or indirectly to aid or 2 participate in the nomination or election of a candidate for the offices 3 described in subparagraphs (i), (ii), (iii), (iv), (v) and (vi) of para- 4 graph a of this subdivision, or other political committees established 5 or controlled by a candidate for the offices described in subparagraphs 6 (i), (ii), (iii), (iv), (v) and (vi) of paragraph a of this subdivision, 7 that in the aggregate exceed four thousand dollars per election; or 8 (ii) state or local committees of a political party, or any house- 9 keeping account, in an amount greater than one thousand dollars per 10 election, and in an aggregate to all state or local committees of poli- 11 tical parties in an aggregate that exceeds two thousand dollars per 12 election; 13 c. transmit a contribution on behalf of another to, or solicit a 14 contribution on behalf of: 15 (i) a candidate for any of the offices for which contributions are 16 limited under paragraph a of this subdivision; 17 (ii) any political committee working directly or indirectly to aid or 18 participate in the nomination or election of a candidate for office for 19 which their contributions are limited in paragraph a of this subdivi- 20 sion, or any other political committee established or controlled by a 21 candidate for the offices for which their contributions are limited 22 under paragraph a of this subdivision; 23 (iii) a state or local committee of a political party, including a 24 housekeeping account; 25 d. participate in any fund-raising activities for: 26 (i) a candidate for any of the offices for which contributions are 27 limited under paragraph a of this subdivision; 28 (ii) any political committee working directly or indirectly to aid or 29 participate in the nomination or election of a candidate for office for 30 which their contributions are limited in paragraph a of this subdivi- 31 sion, or any other political committee established or controlled by a 32 candidate for the offices for which their contributions are limited 33 under paragraph a of this subdivision; 34 (iii) a state or local committee of a political party, including a 35 housekeeping account; 36 e. serve as chairperson, treasurer, or any other officer of: 37 (i) any political committee working directly or indirectly to aid or 38 participate in the nomination or election of a candidate for office for 39 which their contributions are limited under paragraph a of this subdivi- 40 sion; or 41 (ii) any other political committee established or controlled by a 42 candidate for which their contributions are limited under paragraph a of 43 this subdivision; 44 f. conduct personal business transactions in an amount over two thou- 45 sand dollars in any calendar year with a public official holding the 46 offices for which their contributions are limited under paragraph a of 47 this subdivision; 48 g. deliver to any conduit or intermediary any contribution earmarked 49 for a particular candidate for the offices for which their contributions 50 are limited under paragraph a of this subdivision, or any committee 51 working directly or indirectly to aid or participate in such candidate's 52 nomination or election, or any other political committee established or 53 controlled by such candidate; or 54 h. knowingly take other steps to circumvent the restrictions in this 55 subsection.A. 5752--A 5 1 7. No candidate for state office, committee working directly or indi- 2 rectly to aid or participate in such candidate's nomination or election, 3 or any other political committee established or controlled by such 4 candidate shall accept contributions from any person, organization, 5 group of persons, or business entity described in paragraph a, b, c, d 6 or e of subdivision two of this section that exceed the following 7 amounts per election for the following offices: 8 a. governor: five hundred dollars; 9 b. lieutenant governor: five hundred dollars; 10 c. comptroller: five hundred dollars; 11 d. attorney general: five hundred dollars; 12 e. senator: three hundred fifty dollars; and 13 f. member of assembly: two hundred fifty dollars. 14 8. No state or local political party committees, including any house- 15 keeping account, shall accept contributions in an amount greater than 16 one thousand dollars per election from any person, organization, group 17 of persons or business entity described in paragraph a, b, c, d or e of 18 subdivision two of this section. 19 9. No public official holding any of the offices listed in paragraph a 20 of subdivision six of this section shall conduct personal business tran- 21 sactions in an amount over two thousand dollars in any calendar year 22 with any person, organization, group of persons or business entity 23 described in paragraph a, b, c, d or e of subdivision two of this 24 section. 25 10. This section shall not prohibit any person from informing any 26 other person of a position taken by a public official or a candidate for 27 public office. 28 11. The provisions of subdivisions two and six of this section shall 29 not apply to the campaign of any person described in paragraph a, b, c 30 or d of subdivision two of this section who is a candidate for any of 31 those offices listed in paragraph a of subdivision six of this section. 32 § 14-132. Government contractor reporting and contribution limits. 1. 33 Definitions. The following definitions shall apply to this section: 34 a. "agent" means any person acting at the direction of or on behalf of 35 an individual or business entity; 36 b. "business entity" means a business corporation, professional 37 services corporation, limited liability company, partnership, limited 38 partnership, business trust, association or any other legal commercial 39 entity organized under the laws of this state or any other state or 40 foreign jurisdiction, including any subsidiary directly or indirectly 41 controlled by the business entity, and any political organization, 42 including but not limited to any political organization organized under 43 section 527 of the Internal Revenue Code, that is directly or indirectly 44 controlled by the business entity; 45 c. "immediate family" means any spouse or child of an individual or 46 any financially dependent relatives who reside in the individual's 47 household; 48 d. "housekeeping account" means an account maintained by a party 49 committee or constituted committee from which expenditures are made to 50 maintain a permanent headquarters and staff and carry on ordinary party 51 activities which are not for the express purpose of promoting the candi- 52 dacy of specific candidates; 53 e. "candidate for state office" means a candidate for the following 54 state offices: governor, lieutenant governor, attorney general, comp- 55 troller, senator, and member of the assembly; andA. 5752--A 6 1 f. "personal business transaction" means transactions for services 2 offered by the elected official in his or her capacity as a private 3 citizen to any member of the public. 4 2. The following persons and business entities who make a contribution 5 to a candidate for state office, a political committee working directly 6 or indirectly to aid or participate in such candidate's nomination or 7 election, a political committee established or controlled by such candi- 8 date, or a state or local committee of a political party, including a 9 housekeeping account, shall file reports as required by subdivision 10 three of this section with the board of elections within seven calendar 11 days after the date of a contribution made within thirty-six days of an 12 election, or, for contributions made at any other time, within thirty- 13 six days of the date of the contribution or the date of any applicable 14 contract, whichever occurs later: 15 a. any person, organization, group of persons, or business entity that 16 has received, in a calendar year fifty thousand dollars or more through 17 contracts from the state or any state-appointed entity with contracting 18 power; 19 b. any person who owns more than ten percent of a business entity that 20 is described in paragraph a of this subdivision; 21 c. any person employed by an organization, group, or business entity 22 described in paragraph a of this subdivision who holds a senior manage- 23 ment position as defined by the state ethics commission; 24 d. the immediate family member of a person who is described in para- 25 graph a, b or c of this subdivision; or 26 e. any political committee established or controlled by a person, 27 organization, group of persons or business entity described in paragraph 28 a, b, c and d of this subdivision. 29 3. The board of elections shall prescribe forms and procedures for the 30 reporting required in subdivision two of this section which, at a mini- 31 mum, shall require the electronic filing of the following information: 32 a. the name, address, employer and the name of spouse of the person 33 making the contribution and the name of the spouse's employer; 34 b. the name of the candidate, political committee, or state or local 35 committee of a political party, including a housekeeping account, 36 receiving the contribution; 37 c. the amount of the contract with the state or other entity defined 38 in paragraph a of subdivision two of this section, and the dates and 39 other information identifying each contract for services or goods; and 40 d. if an organization, group of persons, or business entity is making 41 the contribution: 42 (i) the names and business addresses of all persons who own more than 43 ten percent of the organization, group or entity; or 44 (ii) the names and business addresses of all persons employed by the 45 organization, group, or business entity who hold a senior management 46 position as defined by the commission on governmental ethics. 47 4. The board of elections shall maintain completed forms and reports 48 described in subdivision two of this section for public inspection both 49 at the board of elections office and through the board of elections 50 electronic filing system for campaign finance disclosure (EFS). 51 5. From twelve months after a bid or proposal to the relevant agency 52 or contracting authority for a contract described in subdivision two of 53 this section and either twelve months after completion of the applicable 54 contract, or upon completion of the applicable elected official's term 55 in office, whichever is longer, it shall be unlawful for any person,A. 5752--A 7 1 organization, group of persons or business entity described in para- 2 graphs a, b, c and d or e of subdivision two of this section to: 3 a. make contributions to a candidate for state office, any political 4 committee working directly or indirectly to aid or participate in such 5 candidate's nomination or election, or any other political committee 6 established or controlled by such candidate that exceed the following 7 amounts per election for the following offices: 8 (i) governor: five hundred dollars; 9 (ii) lieutenant governor: five hundred dollars; 10 (iii) comptroller: five hundred dollars; 11 (iv) attorney general: five hundred dollars; 12 (v) senator: three hundred fifty dollars; or 13 (vi) member of assembly: two hundred fifty dollars; 14 b. make contributions to: 15 (i) political committees working directly or indirectly to aid or 16 participate in the nomination or election of a candidate for the offices 17 described in subparagraphs (i), (ii), (iii), (iv), (v) and (vi) of para- 18 graph a of this subdivision, or other political committees established 19 or controlled by a candidate for the offices described in subparagraphs 20 (i), (ii), (iii), (iv), (v) and (vi) of paragraph a of this subdivision 21 that in the aggregate exceed four thousand dollars per election; or 22 (ii) state or local committees of a political party, or any house- 23 keeping account, in an amount greater than one thousand dollars per 24 election, and in an aggregate to all state or local committees of poli- 25 tical parties in an aggregate that exceeds two thousand dollars per 26 election; 27 c. solicit a contribution on behalf of, or transmit a contribution on 28 behalf of another to: 29 (i) a candidate for any of the offices for which contributions are 30 limited under paragraph a of this subdivision; 31 (ii) any political committee working directly or indirectly to aid or 32 participate in the nomination or election of a candidate for office for 33 which their contributions are limited in paragraph a of this subdivi- 34 sion, or any other political committee established or controlled by a 35 candidate for the offices for which their contributions are limited 36 under paragraph a of this subdivision; 37 (iii) a state or local committee of a political party including a 38 housekeeping account; 39 d. participate in any fund-raising activities for: 40 (i) a candidate for any of the offices for which contributions are 41 limited under paragraph a of this subdivision; 42 (ii) any political committee working directly or indirectly to aid or 43 participate in the nomination or election of a candidate for office for 44 which their contributions are limited in paragraph a of this subdivi- 45 sion, or any other political committee established or controlled by a 46 candidate for the offices for which their contributions are limited 47 under paragraph a of this subdivision; 48 (iii) a state or local committee of a political party, including a 49 housekeeping account; 50 e. serve as chairperson, treasurer, or any other officer of: 51 (i) any political committee working directly or indirectly to aid or 52 participate in the nomination or election of a candidate for office for 53 which their contributions are limited under paragraph a of this subdivi- 54 sion; orA. 5752--A 8 1 (ii) any other political committee established or controlled by a 2 candidate for which their contributions are limited under paragraph a of 3 this subdivision; 4 f. conduct personal business transactions in an amount over two thou- 5 sand dollars in any calendar year with a public official holding the 6 offices for which their contributions are limited under paragraph a of 7 this subdivision; 8 g. deliver to any conduit or intermediary any contribution earmarked 9 for a particular candidate for the offices for which their contributions 10 are limited under paragraph a of this subdivision, or any committee 11 working directly or indirectly to aid or participate in such candidate's 12 nomination or election, or any other political committee established or 13 controlled by such candidate; or 14 h. knowingly take any step to circumvent the restrictions in this 15 subdivision. 16 i. the provisions of this section shall not apply for a contractor 17 making a contribution, or any disclosure thereof required by this arti- 18 cle, in any calendar year in which such contractor receives funds 19 disbursed by the state or any instrumentality thereof pursuant to a 20 federal statute, rule or regulation that would render the state or such 21 instrumentality or contractor ineligible to receive such funds by virtue 22 of the operation of this section. 23 This subdivision shall not be applicable to contributions made by any 24 person, organization, group of persons or business entity at a time when 25 the person, organization, group of persons or business entity did not 26 meet the descriptions of paragraphs a, b, c, d and e of subdivision two 27 of this section. 28 6. The state or any state department, public entity or authority with 29 contract-making power shall not enter into an agreement or otherwise 30 contract to procure services or any material, supplies or equipment, or 31 to acquire, sell, or lease any land or building from any person, organ- 32 ization, group of persons or business entity described in paragraphs a, 33 b, c and d of subdivision two of this section who has made a contrib- 34 ution prohibited in subdivision five of this section. This subdivision 35 shall not be applicable to contributions made by any person, organiza- 36 tion, group of persons or business entity at a time when the person, 37 organization, group of persons or business entity did not meet the 38 descriptions of paragraph a, b, c, d or e of subdivision two of this 39 section. Nothing in this section shall impair the power of the state or 40 any instrumentality thereof to enter into a contract with any contractor 41 where federal funds would support the payment or performance of such 42 contract and a federal statute, rule or regulation would render the 43 state or such instrumentality or contractor ineligible to receive such 44 funds by virtue of the operation of this section. 45 7. Every contract and bid application and specifications promulgated 46 by the state or any state department, public entity or authority with 47 contract-making power shall contain a provision describing the require- 48 ments of section 14-116 of this article. 49 8. Before entering into any agreement or any other contract to procure 50 from any person, organization, group of persons or business entity 51 services or any material, supplies or equipment, or to acquire, sell, or 52 lease any land or building, the state or any state department, public 53 entity or authority with contract-making power shall receive a sworn 54 statement from the contractor, made under penalty of perjury, that the 55 bidder or offerer has not made a contribution in violation of this 56 section.A. 5752--A 9 1 9. No candidate for state office shall accept campaign contributions 2 from a person, organization, group of persons or business entity 3 described in paragraph a, b, c, d or e of subdivision two of this 4 section in an amount exceeding those permitted in paragraph a of subdi- 5 vision five of this section for twelve months after completion of the 6 applicable contract, or the remainder of the candidate's term in office, 7 whichever is longer. This subdivision shall not be applicable to 8 contributions made by any person, organization, group of persons or 9 business entity at a time when the person, organization, group of 10 persons or business entity did not meet the descriptions of paragraph a, 11 b, c, d or e of subdivision two of this section. 12 10. No public official holding any of the offices listed in paragraph 13 a of subdivision five of this section shall conduct personal business 14 transactions in an amount over two thousand dollars in any calendar year 15 with any person, organization, group of persons or business entity 16 described in paragraphs a, b, c and d of subdivision two of this 17 section. 18 11. This section shall not prohibit any person from informing any 19 other person of a position taken by a public official or a candidate for 20 public office. 21 12. The provisions of subdivisions two and five of this section shall 22 not apply to the campaign of any person described in paragraph a, b, c 23 or d of subdivision two of this section who is a candidate for any of 24 those offices listed in paragraph a of subdivision five of this section. 25 § 14-133. Commissioning authorities and licensing authorities. The 26 following persons shall not be appointed to a state public board or 27 commission which has the authority to award or audit any public 28 contract: 29 1. a lobbyist registered under section one-e of the legislative law; 30 2. any person or business entity who, in the previous two years, has 31 received fifty thousand dollars or more through one or more contracts 32 from the state or any state-appointed entity with contracting power; 33 3. any person who owns more than ten percent of a business entity that 34 is described in subdivision two of this section; 35 4. any person employed by an organization, group, or business entity 36 described in subdivision two of this section who holds a senior manage- 37 ment position as defined by the commission on governmental ethics; or 38 5. an immediate family member of a person described in subdivision 39 one, two, three, or four of this section. 40 § 8. Section 14-130 of the election law, as amended by section 9 of 41 part CC of chapter 56 of the laws of 2015, is amended to read as 42 follows: 43 § 14-130. Campaign funds for personal use. 1. Contributions received 44 by a candidate or a political committee may only be expended for [any45lawful purpose. Such funds shall not be converted by any person to a46personal use which is unrelated to a political campaign or the holding47of a public office or party position] bona fide purposes directly 48 related to either: 49 a. promoting the nomination or election of a candidate; or 50 b. performing those duties of public office or party position which 51 are not paid for or eligible for reimbursement by the state or any poli- 52 tical subdivision or private party. 53 2. Permissible ordinary and necessary expenses relating to the holding 54 of public office or party position shall include: 55 a. production and circulation of flyers or other written materials 56 related to duties of officeholder; the placement of holiday greetingsA. 5752--A 10 1 and congratulatory ads and memorial notices in local newspapers, maga- 2 zines, journals or other publication; 3 b. sponsorship or hosting of community meetings; tickets or donations 4 to local charitable, non-profit or political events, organizations or 5 activities that promote the welfare of constituents or political 6 campaigns; 7 c. incidental expenditures for the operation of legislative offices, 8 including purchase of items such as memorial or get-well gifts, flowers 9 or similar items of nominal value for constituents or others; 10 d. membership in organizations related to official duties and costs of 11 attending informational meetings attended in connection with such 12 duties; and 13 e. travel related to duties of office, provided that the travel is not 14 undertaken for any purpose resulting in a personal or financial benefit 15 to the candidate or officeholder. If such expenses involve both personal 16 activity and campaign or official activities, the incremental expenses 17 associated with the personal activities are personal uses unless the 18 campaign is reimbursed for such sums from other than campaign funds 19 within thirty days of the expenditure. 20 Nothing in this section shall prohibit a candidate from purchasing 21 office equipment with personal funds and leasing or renting such equip- 22 ment or property to a committee working with or for the candidate, 23 provided the candidate or the campaign treasurer sign a written lease or 24 rental agreement and files it with the appropriate required campaign 25 financial filing which shall include the lease or rental price which 26 shall not exceed the fair lease or rental value of the equipment or in 27 the aggregate exceed the cost of its purchase. 28 3. Campaign funds shall not be converted to personal use, which shall 29 be defined as expenditures that: 30 a. are for the personal benefit of or to defray normal living expenses 31 of the candidate, officeholder, immediate family or partner of either or 32 any other person; 33 b. are used to fulfill any commitment, obligation, or expense that 34 would exist irrespective of the candidate's campaign or duties as an 35 officeholder; or 36 c. are put to any use for which the candidate or officeholder would be 37 required to treat the amount of the expenditure as gross income under 38 section 61 of the Internal Revenue Code. 39 4. Expenditures for personal use shall also include, but are not 40 limited to, expenditures for: 41 a. residential or household items, supplies, maintenance or other 42 expenditures, including mortgage, rent, utilities, repairs, or improve- 43 ments for any part of any personal residence of a candidate or office- 44 holder, his or her immediate family or partner; 45 b. rent or utility payments that exceed fair market value for use of 46 any part of any non-residential property owned by a candidate, or a 47 member of a candidate's family or partner used for campaign purposes; 48 c. salary and other fees for bona fide services to a campaign or 49 legislative office that exceed fair and reasonable market value of such 50 services; 51 d. interest or any other finance charges for monies loaned to the 52 campaign by the candidate or the spouse or partner of such candidate; 53 e. tuition payments; 54 f. dues, fees, or gratuities at private clubs, recreational facilities 55 or other nonpolitical organizations, unless connected to a specificA. 5752--A 11 1 widely attended fundraising event that takes place on the organization's 2 premises; 3 g. automobile purchases or long term leases; short term car rentals 4 and cellular equipment and services not used exclusively for campaign 5 purposes or duties as an officeholder; 6 h. admission to sporting events, concerts, theaters, or other forms of 7 entertainment, unless part of a specific campaign or officeholder 8 related activity; and 9 i. payment of any fines, fees, or penalties assessed pursuant to this 10 chapter. 11 5. No campaign funds shall be used to pay attorney's fees or any costs 12 of defending against any civil or criminal investigation or prosecution 13 for alleged violations of state or federal law alleged to have been 14 committed while holding public office or as a candidate for office where 15 the candidate or public or party official, members of their immediate 16 families or partners or the campaign is the target of such investigation 17 or prosecution unless such expenditure is used exclusively for costs 18 related to civil or criminal actions for alleged violations related to 19 activities promoting the nomination or election of a candidate. 20 [2.] 6. No contribution shall be used to pay interest or any other 21 finance charges upon monies loaned to the campaign by such candidate or 22 the spouse of such candidate. 23 [3.] 7. For the purposes of this section, contributions "converted by 24 any person to a personal use" are expenditures that are exclusively for 25 the personal benefit of the candidate or any other individual, not in 26 connection with a political campaign or the holding of a public office 27 or party position. "Converted by any person to a personal use", when 28 meeting the definition in this subdivision, shall include, but not be 29 limited to, expenses for the following: 30 (i) any residential or household items, supplies or expenditures, 31 including mortgage, rent or utility payments for any part of any 32 personal residence of a candidate or officeholder or a member of the 33 candidate's or officeholder's family that are not incurred as a result 34 of, or to facilitate, the individual's campaign, or the execution of his 35 or her duties of public office or party position. In the event that any 36 property or building is used for both personal and campaign use or as 37 part of the execution of his or her duties of public office or party 38 position, personal use shall constitute expenses that exceed the pro- 39 rated amount for such expenses based on fair-market value. 40 (ii) mortgage, rent, or utility payments to a candidate or officehold- 41 er for any part of any non-residential property that is owned by a 42 candidate or officeholder or a member of a candidate's or officeholder's 43 family and used for campaign purposes, to the extent the payments exceed 44 the fair market value of the property's usage for campaign activities; 45 (iii) clothing, other than items that are used in the campaign or in 46 the execution of the duties of public office or party position; 47 (iv) tuition payments unrelated to a political campaign or the holding 48 of a public office or party position; 49 (v) salary payments or other compensation provided to any person for 50 services where such services are not solely for campaign purposes or 51 provided in connection with the execution of the duties of public office 52 or party position; 53 (vi) salary payments or other compensation provided to a member of a 54 candidate's family, unless the family member is providing bona fide 55 services to the campaign. If a family member provides bona fide services 56 to a campaign, any salary payments or other compensation in excess ofA. 5752--A 12 1 the fair market value of the services provided shall be considered 2 payments for personal use; 3 (vii) admission to a sporting event, concert, theater, or other form 4 of entertainment, unless such event is part of, or in connection with, a 5 campaign or is related to the holding of public office or party posi- 6 tion; 7 (viii) payment of any fines or penalties assessed against the candi- 8 date pursuant to this chapter or in connection with a criminal 9 conviction or by the joint commission for public ethics pursuant to 10 section ninety-four of the executive law or sections seventy-three or 11 seventy-three-a of the public officers law or the legislative ethics 12 commission pursuant to section eighty of the legislative law; 13 (ix) dues, fees, or gratuities at a country club, health club, recre- 14 ational facility or other entities with a similar purpose, unless they 15 are expenses connected with a specific fundraising event or activity 16 associated with a political campaign or the holding of public office or 17 party position that takes place on the organization's premises; and 18 (x) travel expenses including automobile purchases or leases, unless 19 used for campaign purposes or in connection with the execution of the 20 duties of public office or party position and usage of such vehicle 21 which is incidental to such purposes or the execution of such duties. 22 [4.] 8. Nothing in this section shall prohibit a candidate from 23 purchasing equipment or property from his or her personal funds and 24 leasing or renting such equipment or property to a committee working 25 directly or indirectly with him to aid or participate in his or her 26 nomination or election, including an exploratory committee, provided 27 that the candidate and his or her campaign treasurer sign a written 28 lease or rental agreement. Such agreement shall include the lease or 29 rental price, which shall not exceed the fair lease or rental value of 30 the equipment. The candidate shall not receive lease or rental payments 31 which, in the aggregate, exceed the cost of purchasing the equipment or 32 property. 33 [5.] 9. Nothing in this section shall prohibit an elected public 34 officeholder from using campaign contributions to facilitate, support, 35 or otherwise assist in the execution or performance of the duties of his 36 or her public office. 37 [6.] 10. The state board of elections shall issue advisory opinions 38 upon request regarding expenditures that may or may not be considered 39 personal use of contributions. Any formal or informal advisory opinions 40 issued by a majority vote of the commissioners of the state board of 41 elections shall be binding on the board, the chief enforcement counsel 42 established by subdivision three-a of section 3-100 of this chapter, and 43 in any subsequent civil or criminal action or proceeding or administra- 44 tive proceeding. 45 § 9. The election law is amended by adding a new section 14-134 to 46 read as follows: 47 § 14-134. Disposition of campaign funds. 1. An authorized continuing 48 candidate committee must dispose of all funds and close within four 49 years after the later of (a) the end of the individual's most recent 50 term of office, or (b) the date of the election in which the individual 51 last was a filed candidate. 52 2. Any candidate or political committee required to dispose of funds 53 pursuant to this section shall, at the option of the candidate, or the 54 treasurer of a political committee formed solely to promote the passage 55 or defeat of a ballot proposal, dispose of such funds by any of the 56 following means, or any combination thereof:A. 5752--A 13 1 a. returning, pro rata, to each contributor the funds that have not 2 been spent or obligated; 3 b. donating the funds to a charitable organization or organizations 4 that meet the qualifications of section 501(c)(3) of the Internal Reven- 5 ue Code; 6 c. donating the funds to the state university; 7 d. donating the funds to the state's general fund; 8 e. transferring the funds to a political party committee registered 9 with the state board of elections; or 10 f. contributing the funds to a candidate or political committee such 11 that this does not exceed the limits set forth in section 14-114 of this 12 article. 13 3. No candidate or political committee shall dispose of campaign funds 14 by making expenditures for personal use as defined in section 14-130 of 15 this article. 16 4. Upon the death of a candidate, former candidate or holder of elec- 17 tive office, who received campaign contributions, all contributions 18 shall be disposed of according to this section within twelve months of 19 the death of the candidate. 20 § 10. Subdivision 1 of section 14-102 of the election law, as amended 21 by chapter 8 and redesignated by chapter 9 of the laws of 1978, is 22 amended to read as follows: 23 1. The treasurer of every political committee which, or any officer, 24 member or agent of any such committee who, in connection with any 25 election, receives or expends any money or other valuable thing or 26 incurs any liability to pay money or its equivalent shall file state- 27 ments sworn, or subscribed and bearing a form notice that false state- 28 ments made therein are punishable as a class A misdemeanor pursuant to 29 section 210.45 of the penal law, at the times prescribed by this article 30 setting forth all the receipts, contributions to and the expenditures by 31 and liabilities of the committee, and of its officers, members and 32 agents in its behalf. Such statements shall include the dollar amount of 33 any receipt, contribution or transfer, or the fair market value of any 34 receipt, contribution or transfer, which is other than of money, the 35 name and address of the transferor, contributor or person from whom 36 received, if the contributor is a lobbyist registered pursuant to arti- 37 cle one-A of the legislative law and if the transferor, contributor or 38 person is a political committee; the name of and the political unit 39 represented by the committee, the date of its receipt, the dollar amount 40 of every expenditure, the name and address of the person to whom it was 41 made or the name of and the political unit represented by the committee 42 to which it was made and the date thereof, and shall state clearly the 43 purpose of such expenditure. Any statement reporting a loan shall have 44 attached to it a copy of the evidence of indebtedness. Expenditures in 45 sums under fifty dollars need not be specifically accounted for by sepa- 46 rate items in said statements, and receipts and contributions aggregat- 47 ing not more than ninety-nine dollars, from any one contributor need not 48 be specifically accounted for by separate items in said statements, 49 provided however, that such expenditures, receipts and contributions 50 shall be subject to the other provisions of section 14-118 of this arti- 51 cle. 52 § 11. Subdivision 3 of section 74 of the public officers law is 53 amended by adding a new paragraph j to read as follows: 54 j. No officer or employee of a state agency required to file an annual 55 statement of financial disclosure pursuant to section seventy-three-a ofA. 5752--A 14 1 this article shall solicit or receive contributions for a campaign for 2 state or federal office. 3 § 12. This act shall take effect on the first of January next succeed- 4 ing the date on which it shall have become a law; provided that section 5 14-132 of the election law as added by section seven of this act shall 6 take effect two years after such effective date; and provided further 7 that sections eight, nine, ten and eleven of this act shall take effect 8 on the sixtieth day after it shall have become a law; provided, however, 9 that the state board of elections shall notify all registered campaign 10 committees of the applicable provisions of sections eight, nine, ten and 11 eleven of this act within thirty days after this act shall have become a 12 law.
