Bill Text: NY A08006 | 2023-2024 | General Assembly | Introduced
Bill Title: Relates to campaign funds for personal use.
Spectrum: Moderate Partisan Bill (Democrat 12-3)
Status: (Introduced) 2024-01-03 - referred to election law [A08006 Detail]
Download: New_York-2023-A08006-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8006 2023-2024 Regular Sessions IN ASSEMBLY September 1, 2023 ___________ Introduced by M. of A. SIMON, SEAWRIGHT, THIELE, CLARK, MORINELLO -- read once and referred to the Committee on Election Law AN ACT to amend the election law, in relation to campaign funds for personal use The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 14-130 of the election law, as amended by section 9 2 of part CC of chapter 56 of the laws of 2015, paragraphs (ix) and (x) of 3 subdivision 3 as amended and paragraph (xi) of subdivision 3 as added by 4 chapter 136 of the laws of 2019, is amended to read as follows: 5 § 14-130. Campaign funds for personal use. 1. Contributions received 6 by a candidate or a political committee may only be expended for [any7lawful purpose. Such funds shall not be converted by any person to a8personal use which is unrelated to a political campaign or the holding9of a public office or party position.] bona fide purposes directly 10 related to either: 11 [2. No contribution shall be used to pay interest or any other finance12charges upon monies loaned to the campaign by such candidate or the13spouse of such candidate.143. For the purposes of this section, contributions "converted by any15person to a personal use" are expenditures that are exclusively for the16personal benefit of the candidate or any other individual, not in17connection with a political campaign or the holding of a public office18or party position. "Converted by any person to a personal use", when19meeting the definition in this subdivision, shall include, but not be20limited to, expenses for the following:21(i) any residential or household items, supplies or expenditures,22including mortgage, rent or utility payments for any part of any23personal residence of a candidate or officeholder or a member of the24candidate's or officeholder's family that are not incurred as a result25of, or to facilitate, the individual's campaign, or the execution of hisEXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03670-01-3A. 8006 2 1or her duties of public office or party position. In the event that any2property or building is used for both personal and campaign use or as3part of the execution of his or her duties of public office or party4position, personal use shall constitute expenses that exceed the pro-5rated amount for such expenses based on fair-market value.6(ii) mortgage, rent, or utility payments to a candidate or officehold-7er for any part of any non-residential property that is owned by a8candidate or officeholder or a member of a candidate's or officeholder's9family and used for campaign purposes, to the extent the payments exceed10the fair market value of the property's usage for campaign activities;11(iii) clothing, other than items that are used in the campaign or in12the execution of the duties of public office or party position;13(iv) tuition payments unrelated to a political campaign or the holding14of a public office or party position;15(v) salary payments or other compensation provided to any person for16services where such services are not solely for campaign purposes or17provided in connection with the execution of the duties of public office18or party position;19(vi) salary payments or other compensation provided to a member of a20candidate's family, unless the family member is providing bona fide21services to the campaign. If a family member provides bona fide services22to a campaign, any salary payments or other compensation in excess of23the fair market value of the services provided shall be considered24payments for personal use;25(vii) admission to a sporting event, concert, theater, or other form26of entertainment, unless such event is part of, or in connection with, a27campaign or is related to the holding of public office or party posi-28tion;29(viii) payment of any fines or penalties assessed against the candi-30date pursuant to this chapter or in connection with a criminal31conviction or by the joint commission for public ethics pursuant to32section ninety-four of the executive law or sections seventy-three or33seventy-three-a of the public officers law or the legislative ethics34commission pursuant to section eighty of the legislative law;35(ix) dues, fees, or gratuities at a country club, health club, recre-36ational facility or other entities with a similar purpose, unless they37are expenses connected with a specific fundraising event or activity38associated with a political campaign or the holding of public office or39party position that takes place on the organization's premises;40(x) travel expenses including automobile purchases or leases, unless41used for campaign purposes or in connection with the execution of the42duties of public office or party position and usage of such vehicle43which is incidental to such purposes or the execution of such duties;44and45(xi) childcare expenses, other than expenses incurred in the campaign46or in the execution of the duties of public office or party position.474. Nothing in this section shall prohibit a candidate from purchasing48equipment or property from his or her personal funds and leasing or49renting such equipment or property to a committee working directly or50indirectly with him to aid or participate in his or her nomination or51election, including an exploratory committee, provided that the candi-52date and his or her campaign treasurer sign a written lease or rental53agreement. Such agreement shall include the lease or rental price, which54shall not exceed the fair lease or rental value of the equipment. The55candidate shall not receive lease or rental payments which, in the56aggregate, exceed the cost of purchasing the equipment or property.A. 8006 3 15. Nothing in this section shall prohibit an elected public office-2holder from using campaign contributions to facilitate, support, or3otherwise assist in the execution or performance of the duties of his or4her public office.56. The state board of elections shall issue advisory opinions upon6request regarding expenditures that may or may not be considered7personal use of contributions. Any formal or informal advisory opinions8issued by a majority vote of the commissioners of the state board of9elections shall be binding on the board, the chief enforcement counsel10established by subdivision three-a of section 3-100 of this chapter, and11in any subsequent civil or criminal action or proceeding or administra-12tive proceeding.] 13 a. promoting the nomination or election of a candidate; or 14 b. performing duties of public office or party position which are not 15 paid for or eligible for reimbursement by the state or any political 16 subdivision or private party, and ordinary and necessary expenses relat- 17 ing to the holding of public office or party position. 18 2. Campaign funds shall not be converted to personal use, which shall 19 be defined as expenditures that: 20 a. are for the personal benefit of or to defray normal living expenses 21 of the candidate, officeholder, immediate family or domestic partner of 22 either or any other person; 23 b. are used to fulfill any commitment, obligation, or expense that 24 would exist irrespective of the candidate's campaign or duties as an 25 officeholder; or 26 c. are put to any use for which the candidate or officeholder would be 27 required to treat the amount of the expenditure as gross income under 28 section 61 of the Internal Revenue Code. 29 3. Expenditures for personal use shall also include, but are not 30 limited to, expenditures for: 31 a. residential or household items, supplies, maintenance or other 32 expenditures, including mortgage, rent, utilities, repairs, or improve- 33 ments for any part of any personal residence of a candidate or office- 34 holder, his or her immediate family or domestic partner; 35 b. rent or utility payments that exceed fair market value for use of 36 any part of any non-residential property owned by a candidate, or a 37 member of a candidate's family or domestic partner used for campaign 38 purposes; 39 c. salary and other fees for bona fide services to a campaign or 40 legislative office that exceed fair and reasonable market value of such 41 services; 42 d. interest or any other finance charges for monies loaned to the 43 campaign by the candidate or the spouse or domestic partner of such 44 candidate; 45 e. tuition payments; 46 f. dues, fees, or gratuities at private clubs, recreational facilities 47 or other nonpolitical organizations, unless connected to a specific 48 widely attended fundraising event that takes place on the organization's 49 premises; 50 g. automobile purchases or long term leases; short term car rentals 51 and cellular equipment and services not used exclusively for campaign 52 purposes or duties as an officeholder; 53 h. admission to sporting events, concerts, theaters, or other forms of 54 entertainment, unless part of a specific campaign or officeholder 55 related activity; andA. 8006 4 1 i. payment of any fines, fees, or penalties assessed pursuant to this 2 chapter. 3 Nothing in this section shall prohibit a candidate from purchasing 4 office equipment with personal funds and leasing or renting such equip- 5 ment or property to a committee working with or for the candidate, 6 provided the candidate or the campaign treasurer signs a written lease 7 or rental agreement and files it with the appropriate required campaign 8 financial filing which shall include the lease or rental price which 9 shall not exceed the fair lease or rental value of the equipment or in 10 the aggregate exceed the cost of its purchase. 11 § 2. Section 14-132 of the election law, as added by section 2 of part 12 C of chapter 286 of the laws of 2016, is amended to read as follows: 13 § 14-132. Disposition of campaign funds. [1.] Upon the death of a 14 candidate, former candidate or holder of elective office, [where such15candidate or candidate's authorized committee] who received campaign 16 contributions, all [such funds] contributions shall be disposed of [by17any of the following means, or any combination thereof, within two years18of the death of such person:19(a) returning, pro rata, to each contributor the funds that have not20been spent or obligated;21(b) donating the funds to a charitable organization or organizations22that meet the qualifications of section 501(c)(3) of the Internal Reven-23ue Code;24(c) donating the funds to the state university of New York or the city25university of New York;26(d) donating the funds to the state's general fund; or27(e) contributing or transferring the funds to a candidate, party,28constituted or political committee in accordance with the applicable29limits, if any, set forth in this article.302. No such candidate's authorized political committee shall dispose of31campaign funds by making expenditures for personal use as defined in32section 14-130 of this article.333. If funds are not disposed of within the time required by this34section, such funds shall be recoverable by the chief enforcement coun-35sel of the state board of elections in a special proceeding in state36supreme court in the manner prescribed by section 16-116 of this chapter37and deposited into the state's general fund] within twelve months of the 38 death of the candidate pursuant to subdivision one of this section. 39 1. Any political committee required to dispose of funds pursuant to 40 this section shall, at the option of the representative of the estate of 41 the candidate, or the treasurer of a political committee formed solely 42 to promote the passage or defeat of a ballot proposal, dispose of such 43 funds by any of the following means, or any combination thereof: 44 a. returning, pro rata, to each contributor the funds that have not 45 been spent or obligated; 46 b. donating the funds to a charitable organization or organizations 47 that meet the qualifications of section 501(c) (3) of the Internal 48 Revenue Code; 49 c. donating the funds to the state university; 50 d. donating the funds to the state's general fund; 51 e. transferring the funds to a political party committee registered 52 with the state board of elections; or 53 f. contributing the funds to a candidate or political committee such 54 that this does not exceed the limits set forth in section 14-114 of this 55 title.A. 8006 5 1 2. No representative of the estate of a candidate or political commit- 2 tee shall dispose of campaign funds by making expenditures for personal 3 use as defined in section 14-130 of this title. 4 § 3. This act shall take effect on the sixtieth day after it shall 5 have become a law; provided, that the state board of elections shall 6 notify all registered campaign committees of the applicable provisions 7 of this act within thirty days after this act shall have become a law.