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  [any
     6  lawful  purpose.  Such  funds  shall not be converted by any person to a
     7  personal use which is unrelated to a political campaign or  the  holding
     8  of  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 finance
    11  charges upon monies loaned to the campaign  by  such  candidate  or  the
    12  spouse of such candidate.
    13    3.  For  the purposes of this section, contributions "converted by any
    14  person to a personal use" are expenditures that are exclusively for  the
    15  personal  benefit  of  the  candidate  or  any  other individual, not in
    16  connection with a political campaign or the holding of a  public  office
    17  or  party  position.  "Converted  by any person to a personal use", when
    18  meeting the definition in this subdivision, shall include,  but  not  be
    19  limited to, expenses for the following:
    20    (i)  any  residential  or  household  items, supplies or expenditures,
    21  including mortgage, rent  or  utility  payments  for  any  part  of  any
    22  personal  residence  of  a  candidate or officeholder or a member of the
    23  candidate's or officeholder's family that are not incurred as  a  result
    24  of, or to facilitate, the individual's campaign, or the execution of his
    25  or  her duties of public office or party position. In the event that any
    26  property or building is used for both personal and campaign  use  or  as
    27  part  of  the  execution  of his or her duties of public office or party

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06761-01-9

        S. 2513                             2

     1  position, personal use shall constitute expenses that  exceed  the  pro-
     2  rated amount for such expenses based on fair-market value.
     3    (ii) mortgage, rent, or utility payments to a candidate or officehold-
     4  er  for  any  part  of  any  non-residential property that is owned by a
     5  candidate or officeholder or a member of a candidate's or officeholder's
     6  family and used for campaign purposes, to the extent the payments exceed
     7  the fair market value of the property's usage for campaign activities;
     8    (iii) clothing, other than items that are used in the campaign  or  in
     9  the execution of the duties of public office or party position;
    10    (iv) tuition payments unrelated to a political campaign or the holding
    11  of a public office or party position;
    12    (v)  salary  payments or other compensation provided to any person for
    13  services where such services are not solely  for  campaign  purposes  or
    14  provided in connection with the execution of the duties of public office
    15  or party position;
    16    (vi)  salary  payments or other compensation provided to a member of a
    17  candidate's family, unless the family  member  is  providing  bona  fide
    18  services to the campaign. If a family member provides bona fide services
    19  to  a  campaign,  any salary payments or other compensation in excess of
    20  the fair market value of  the  services  provided  shall  be  considered
    21  payments for personal use;
    22    (vii)  admission  to a sporting event, concert, theater, or other form
    23  of entertainment, unless such event is part of, or in connection with, a
    24  campaign or is related to the holding of public office  or  party  posi-
    25  tion;
    26    (viii)  payment  of any fines or penalties assessed against the candi-
    27  date  pursuant  to  this  chapter  or  in  connection  with  a  criminal
    28  conviction  or  by  the  joint  commission for public ethics pursuant to
    29  section ninety-four of the executive law or  sections  seventy-three  or
    30  seventy-three-a  of  the  public  officers law or the legislative ethics
    31  commission pursuant to section eighty of the legislative law;
    32    (ix) dues, fees, or gratuities at a country club, health club,  recre-
    33  ational  facility  or other entities with a similar purpose, unless they
    34  are expenses connected with a specific  fundraising  event  or  activity
    35  associated  with a political campaign or the holding of public office or
    36  party position that takes place on the organization's premises; and
    37    (x) travel expenses including automobile purchases or  leases,  unless
    38  used  for  campaign  purposes or in connection with the execution of the
    39  duties of public office or party position  and  usage  of  such  vehicle
    40  which is incidental to such purposes or the execution of such duties.
    41    4.  Nothing in this section shall prohibit a candidate from purchasing
    42  equipment or property from his or her  personal  funds  and  leasing  or
    43  renting  such  equipment  or property to a committee working directly or
    44  indirectly with him to aid or participate in his or  her  nomination  or
    45  election,  including  an exploratory committee, provided that the candi-
    46  date and his or her campaign treasurer sign a written  lease  or  rental
    47  agreement. Such agreement shall include the lease or rental price, which
    48  shall  not  exceed  the fair lease or rental value of the equipment. The
    49  candidate shall not receive lease  or  rental  payments  which,  in  the
    50  aggregate, exceed the cost of purchasing the equipment or property.
    51    5.  Nothing  in  this section shall prohibit an elected public office-
    52  holder from using campaign  contributions  to  facilitate,  support,  or
    53  otherwise assist in the execution or performance of the duties of his or
    54  her public office.
    55    6.  The  state  board  of elections shall issue advisory opinions upon
    56  request regarding  expenditures  that  may  or  may  not  be  considered

        S. 2513                             3

     1  personal  use of contributions. Any formal or informal advisory opinions
     2  issued by a majority vote of the commissioners of  the  state  board  of
     3  elections  shall  be binding on the board, the chief enforcement counsel
     4  established by subdivision three-a of section 3-100 of this chapter, and
     5  in  any subsequent civil or criminal action or proceeding or administra-
     6  tive 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 campaign

        S. 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  such
     8  candidate  or  candidate's  authorized  committee] who received campaign
     9  contributions, all [such funds] contributions shall be disposed  of  [by
    10  any of the following means, or any combination thereof, within two years
    11  of the death of such person:
    12    (a)  returning,  pro rata, to each contributor the funds that have not
    13  been spent or obligated;
    14    (b) donating the funds to a charitable organization  or  organizations
    15  that meet the qualifications of section 501(c)(3) of the Internal Reven-
    16  ue Code;
    17    (c) donating the funds to the state university of New York or the city
    18  university of New York;
    19    (d) donating the funds to the state's general fund; or
    20    (e)  contributing  or  transferring  the  funds to a candidate, party,
    21  constituted or political committee in  accordance  with  the  applicable
    22  limits, if any, set forth in this article.
    23    2. No such candidate's authorized political committee shall dispose of
    24  campaign  funds  by  making  expenditures for personal use as defined in
    25  section 14-130 of this article.
    26    3. If funds are not disposed of  within  the  time  required  by  this
    27  section,  such funds shall be recoverable by the chief enforcement coun-
    28  sel of the state board of elections in a  special  proceeding  in  state
    29  supreme court in the manner prescribed by section 16-116 of this chapter
    30  and 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.
feedback