BILL NUMBER:  S338A

 TITLE OF BILL :  An act to amend the election law, in relation to the
use of campaign funds to pay attorney's fees

 PURPOSE :

The purpose of this legislation is to explicitly prohibit the use of
campaign funds to pay attorney's fees or other costs associated with
criminal or civil litigation.

 SUMMARY OF PROVISIONS :

Section 1 amends section 14-130 of the election law to expressly
prohibit the use of campaign funds to pay attorney's fees or costs of
defending against civil or criminal investigation or prosecution for
alleged violations of state or federal law. The only exception would
be for costs related to civil actions for alleged violations of
Article 16 of the Election Law.

Section 2 sets forth the effective date.

 JUSTIFICATION :

Currently, New York's election law, allowing candidates to spend
campaign funds for "any lawful purpose," is among the most lax in the
              

nation. While spending campaign funds for personal use is technically
prohibited, the lack of any definition for what constitutes a personal
use renders the provision meaningless. This shortcoming in the law is
striking when compared to the detailed restrictions issued by the
Federal Election Commission.

Campaign donors have a reasonable expectation that their contributions
will be used for the candidate's election efforts and the execution of
his or her duties. They do not expect their contributions to subsidize
attorney's fees or litigation costs that have nothing to do with the
nomination or election of the candidate to whom they made a donation.
This legislation would therefore clarify that campaign funds may not
be used for this purpose while preserving candidates' ability to use
campaign funds for legal fees directly involved with nomination or
election to office.

 LEGISLATIVE HISTORY :

S.5094 of 2013-2014 (O'Brien): Died in Election Law

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the sixtieth day after it shall have
become a law; provided, however, that the state board of elections
shall notify all registered campaign committees of the applicable
provisions of this act within thirty days after this act shall have
become law.