Bill Text: NY S02513 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to campaign funds for personal use.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO ELECTIONS [S02513 Detail]
Download: New_York-2019-S02513-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2513 2019-2020 Regular Sessions IN SENATE January 25, 2019 ___________ Introduced by Sens. KRUEGER, ADDABBO -- read twice and ordered printed, and when printed to be committed to the Committee on Elections AN ACT to amend the election law, in relation to campaign funds for personal use The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 14-130 of the election law, as amended by section 9 2 of part CC of chapter 56 of the laws of 2015, is amended to read as 3 follows: 4 § 14-130. Campaign funds for personal use. 1. Contributions received 5 by a candidate or a political committee may only be expended for [any6lawful purpose. Such funds shall not be converted by any person to a7personal use which is unrelated to a political campaign or the holding8of a public office or party position.] bona fide purposes directly 9 related to either: 10 [2. No contribution shall be used to pay interest or any other finance11charges upon monies loaned to the campaign by such candidate or the12spouse of such candidate.133. For the purposes of this section, contributions "converted by any14person to a personal use" are expenditures that are exclusively for the15personal benefit of the candidate or any other individual, not in16connection with a political campaign or the holding of a public office17or party position. "Converted by any person to a personal use", when18meeting the definition in this subdivision, shall include, but not be19limited to, expenses for the following:20(i) any residential or household items, supplies or expenditures,21including mortgage, rent or utility payments for any part of any22personal residence of a candidate or officeholder or a member of the23candidate's or officeholder's family that are not incurred as a result24of, or to facilitate, the individual's campaign, or the execution of his25or her duties of public office or party position. In the event that any26property or building is used for both personal and campaign use or as27part of the execution of his or her duties of public office or partyEXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06761-01-9S. 2513 2 1position, personal use shall constitute expenses that exceed the pro-2rated amount for such expenses based on fair-market value.3(ii) mortgage, rent, or utility payments to a candidate or officehold-4er for any part of any non-residential property that is owned by a5candidate or officeholder or a member of a candidate's or officeholder's6family and used for campaign purposes, to the extent the payments exceed7the fair market value of the property's usage for campaign activities;8(iii) clothing, other than items that are used in the campaign or in9the execution of the duties of public office or party position;10(iv) tuition payments unrelated to a political campaign or the holding11of a public office or party position;12(v) salary payments or other compensation provided to any person for13services where such services are not solely for campaign purposes or14provided in connection with the execution of the duties of public office15or party position;16(vi) salary payments or other compensation provided to a member of a17candidate's family, unless the family member is providing bona fide18services to the campaign. If a family member provides bona fide services19to a campaign, any salary payments or other compensation in excess of20the fair market value of the services provided shall be considered21payments for personal use;22(vii) admission to a sporting event, concert, theater, or other form23of entertainment, unless such event is part of, or in connection with, a24campaign or is related to the holding of public office or party posi-25tion;26(viii) payment of any fines or penalties assessed against the candi-27date pursuant to this chapter or in connection with a criminal28conviction or by the joint commission for public ethics pursuant to29section ninety-four of the executive law or sections seventy-three or30seventy-three-a of the public officers law or the legislative ethics31commission pursuant to section eighty of the legislative law;32(ix) dues, fees, or gratuities at a country club, health club, recre-33ational facility or other entities with a similar purpose, unless they34are expenses connected with a specific fundraising event or activity35associated with a political campaign or the holding of public office or36party position that takes place on the organization's premises; and37(x) travel expenses including automobile purchases or leases, unless38used for campaign purposes or in connection with the execution of the39duties of public office or party position and usage of such vehicle40which is incidental to such purposes or the execution of such duties.414. Nothing in this section shall prohibit a candidate from purchasing42equipment or property from his or her personal funds and leasing or43renting such equipment or property to a committee working directly or44indirectly with him to aid or participate in his or her nomination or45election, including an exploratory committee, provided that the candi-46date and his or her campaign treasurer sign a written lease or rental47agreement. Such agreement shall include the lease or rental price, which48shall not exceed the fair lease or rental value of the equipment. The49candidate shall not receive lease or rental payments which, in the50aggregate, exceed the cost of purchasing the equipment or property.515. Nothing in this section shall prohibit an elected public office-52holder from using campaign contributions to facilitate, support, or53otherwise assist in the execution or performance of the duties of his or54her public office.556. The state board of elections shall issue advisory opinions upon56request regarding expenditures that may or may not be consideredS. 2513 3 1personal use of contributions. Any formal or informal advisory opinions2issued by a majority vote of the commissioners of the state board of3elections shall be binding on the board, the chief enforcement counsel4established by subdivision three-a of section 3-100 of this chapter, and5in any subsequent civil or criminal action or proceeding or administra-6tive proceeding.] 7 a. promoting the nomination or election of a candidate; or 8 b. performing duties of public office or party position which are not 9 paid for or eligible for reimbursement by the state or any political 10 subdivision or private party, and ordinary and necessary expenses relat- 11 ing to the holding of public office or party position. 12 2. Campaign funds shall not be converted to personal use, which shall 13 be defined as expenditures that: 14 a. are for the personal benefit of or to defray normal living expenses 15 of the candidate, officeholder, immediate family or domestic partner of 16 either or any other person; 17 b. are used to fulfill any commitment, obligation, or expense that 18 would exist irrespective of the candidate's campaign or duties as an 19 officeholder; or 20 c. are put to any use for which the candidate or officeholder would be 21 required to treat the amount of the expenditure as gross income under 22 section 61 of the Internal Revenue Code. 23 3. Expenditures for personal use shall also include, but are not 24 limited to, expenditures for: 25 a. residential or household items, supplies, maintenance or other 26 expenditures, including mortgage, rent, utilities, repairs, or improve- 27 ments for any part of any personal residence of a candidate or office- 28 holder, his or her immediate family or domestic partner; 29 b. rent or utility payments that exceed fair market value for use of 30 any part of any non-residential property owned by a candidate, or a 31 member of a candidate's family or domestic partner used for campaign 32 purposes; 33 c. salary and other fees for bona fide services to a campaign or 34 legislative office that exceed fair and reasonable market value of such 35 services; 36 d. interest or any other finance charges for monies loaned to the 37 campaign by the candidate or the spouse or domestic partner of such 38 candidate; 39 e. tuition payments; 40 f. dues, fees, or gratuities at private clubs, recreational facilities 41 or other nonpolitical organizations, unless connected to a specific 42 widely attended fundraising event that takes place on the organization's 43 premises; 44 g. automobile purchases or long term leases; short term car rentals 45 and cellular equipment and services not used exclusively for campaign 46 purposes or duties as an officeholder; 47 h. admission to sporting events, concerts, theaters, or other forms of 48 entertainment, unless part of a specific campaign or officeholder 49 related activity; and 50 i. payment of any fines, fees, or penalties assessed pursuant to this 51 chapter. 52 Nothing in this section shall prohibit a candidate from purchasing 53 office equipment with personal funds and leasing or renting such equip- 54 ment or property to a committee working with or for the candidate, 55 provided the candidate or the campaign treasurer signs a written lease 56 or rental agreement and files it with the appropriate required campaignS. 2513 4 1 financial filing which shall include the lease or rental price which 2 shall not exceed the fair lease or rental value of the equipment or in 3 the aggregate exceed the cost of its purchase. 4 § 2. Section 14-132 of the election law, as added by section 2 of part 5 C of chapter 286 of the laws of 2016, is amended to read as follows: 6 § 14-132. Disposition of campaign funds. [1.] Upon the death of a 7 candidate, former candidate or holder of elective office, [where such8candidate or candidate's authorized committee] who received campaign 9 contributions, all [such funds] contributions shall be disposed of [by10any of the following means, or any combination thereof, within two years11of the death of such person:12(a) returning, pro rata, to each contributor the funds that have not13been spent or obligated;14(b) donating the funds to a charitable organization or organizations15that meet the qualifications of section 501(c)(3) of the Internal Reven-16ue Code;17(c) donating the funds to the state university of New York or the city18university of New York;19(d) donating the funds to the state's general fund; or20(e) contributing or transferring the funds to a candidate, party,21constituted or political committee in accordance with the applicable22limits, if any, set forth in this article.232. No such candidate's authorized political committee shall dispose of24campaign funds by making expenditures for personal use as defined in25section 14-130 of this article.263. If funds are not disposed of within the time required by this27section, such funds shall be recoverable by the chief enforcement coun-28sel of the state board of elections in a special proceeding in state29supreme court in the manner prescribed by section 16-116 of this chapter30and deposited into the state's general fund] within twelve months of the 31 death of the candidate pursuant to subdivision one of this section. 32 1. Any political committee required to dispose of funds pursuant to 33 this section shall, at the option of the representative of the estate of 34 the candidate, or the treasurer of a political committee formed solely 35 to promote the passage or defeat of a ballot proposal, dispose of such 36 funds by any of the following means, or any combination thereof: 37 a. returning, pro rata, to each contributor the funds that have not 38 been spent or obligated; 39 b. donating the funds to a charitable organization or organizations 40 that meet the qualifications of section 501(c) (3) of the Internal 41 Revenue Code; 42 c. donating the funds to the state university; 43 d. donating the funds to the state's general fund; 44 e. transferring the funds to a political party committee registered 45 with the state board of elections; or 46 f. contributing the funds to a candidate or political committee such 47 that this does not exceed the limits set forth in section 14-114 of this 48 title. 49 2. No representative of the estate of a candidate or political commit- 50 tee shall dispose of campaign funds by making expenditures for personal 51 use as defined in section 14-130 of this title. 52 § 3. This act shall take effect on the sixtieth day after it shall 53 have become a law; provided, that the state board of elections shall 54 notify all registered campaign committees of the applicable provisions 55 of this act within thirty days after this act shall have become a law.