S T A T E O F N E W Y O R K
________________________________________________________________________
3780
2015-2016 Regular Sessions
I N S E N A T E
February 17, 2015
___________
Introduced by Sen. SANDERS -- read twice and ordered printed, and when
printed to be committed to the Committee on Elections
AN ACT 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:
Section 1. Section 14-130 of the election law, as added by chapter 152
of the laws of 1985, is amended to read as follows:
S 14-130. Campaign funds for personal use. 1. Contributions received
by a candidate or a political committee may ONLY be expended for [any
lawful purpose. Such funds shall not be converted by any person to a
personal use which is unrelated to a political campaign or the holding
of a public office or party position] BONA FIDE PURPOSES DIRECTLY
RELATED TO EITHER:
A. PROMOTING THE NOMINATION OR ELECTION OF A CANDIDATE; OR
B. PERFORMING THOSE DUTIES OF PUBLIC OFFICE OR PARTY POSITION WHICH
ARE NOT PAID FOR OR ELIGIBLE FOR REIMBURSEMENT BY THE STATE OR ANY POLI-
TICAL SUBDIVISION OR PRIVATE PARTY.
2. PERMISSIBLE ORDINARY AND NECESSARY EXPENSES RELATING TO THE HOLDING
OF PUBLIC OFFICE OR PARTY POSITION SHALL INCLUDE:
A. PRODUCTION AND CIRCULATION OF FLYERS OR OTHER WRITTEN MATERIALS
RELATED TO DUTIES OF OFFICEHOLDER; THE PLACEMENT OF HOLIDAY GREETINGS
AND CONGRATULATORY ADS AND MEMORIAL NOTICES IN LOCAL NEWSPAPERS, MAGA-
ZINES, JOURNALS OR OTHER PUBLICATION;
B. SPONSORSHIP OR HOSTING OF COMMUNITY MEETINGS; TICKETS OR DONATIONS
TO LOCAL CHARITABLE, NON-PROFIT OR POLITICAL EVENTS, ORGANIZATIONS OR
ACTIVITIES THAT PROMOTE THE WELFARE OF CONSTITUENTS OR POLITICAL
CAMPAIGNS;
C. INCIDENTAL EXPENDITURES FOR THE OPERATION OF LEGISLATIVE OFFICES,
INCLUDING PURCHASE OF ITEMS SUCH AS MEMORIAL OR GET-WELL GIFTS, FLOWERS
OR SIMILAR ITEMS OF NOMINAL VALUE FOR CONSTITUENTS OR OTHERS;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00943-01-5
S. 3780 2
D. MEMBERSHIP IN ORGANIZATIONS RELATED TO OFFICIAL DUTIES AND COSTS OF
ATTENDING INFORMATIONAL MEETINGS ATTENDED IN CONNECTION WITH SUCH
DUTIES; AND
E. TRAVEL RELATED TO DUTIES OF OFFICE, PROVIDED THAT THE TRAVEL IS NOT
UNDERTAKEN FOR ANY PURPOSE RESULTING IN A PERSONAL OR FINANCIAL BENEFIT
TO THE CANDIDATE OR OFFICEHOLDER. IF SUCH EXPENSES INVOLVE BOTH PERSONAL
ACTIVITY AND CAMPAIGN OR OFFICIAL ACTIVITIES, THE INCREMENTAL EXPENSES
ASSOCIATED WITH THE PERSONAL ACTIVITIES ARE PERSONAL USES UNLESS THE
CAMPAIGN IS REIMBURSED FOR SUCH SUMS FROM OTHER THAN CAMPAIGN FUNDS
WITHIN THIRTY DAYS OF THE EXPENDITURE.
NOTHING IN THIS SECTION SHALL PROHIBIT A CANDIDATE FROM PURCHASING
OFFICE EQUIPMENT WITH PERSONAL FUNDS AND LEASING OR RENTING SUCH EQUIP-
MENT OR PROPERTY TO A COMMITTEE WORKING WITH OR FOR THE CANDIDATE,
PROVIDED THE CANDIDATE OR THE CAMPAIGN TREASURER SIGN A WRITTEN LEASE OR
RENTAL AGREEMENT AND FILES IT WITH THE APPROPRIATE REQUIRED CAMPAIGN
FINANCIAL FILING WHICH SHALL INCLUDE THE LEASE OR RENTAL PRICE WHICH
SHALL NOT EXCEED THE FAIR LEASE OR RENTAL VALUE OF THE EQUIPMENT OR IN
THE AGGREGATE EXCEED THE COST OF ITS PURCHASE.
3. CAMPAIGN FUNDS SHALL NOT BE CONVERTED TO PERSONAL USE, WHICH SHALL
BE DEFINED AS EXPENDITURES THAT:
A. ARE FOR THE PERSONAL BENEFIT OF OR TO DEFRAY NORMAL LIVING EXPENSES
OF THE CANDIDATE, OFFICEHOLDER, IMMEDIATE FAMILY OR PARTNER OF EITHER OR
ANY OTHER PERSON;
B. ARE USED TO FULFILL ANY COMMITMENT, OBLIGATION, OR EXPENSE THAT
WOULD EXIST IRRESPECTIVE OF THE CANDIDATE'S CAMPAIGN OR DUTIES AS AN
OFFICEHOLDER; OR
C. ARE PUT TO ANY USE FOR WHICH THE CANDIDATE OR OFFICEHOLDER WOULD BE
REQUIRED TO TREAT THE AMOUNT OF THE EXPENDITURE AS GROSS INCOME UNDER
SECTION 61 OF THE INTERNAL REVENUE CODE.
4. EXPENDITURES FOR PERSONAL USE SHALL ALSO INCLUDE, BUT ARE NOT
LIMITED TO, EXPENDITURES FOR:
A. RESIDENTIAL OR HOUSEHOLD ITEMS, SUPPLIES, MAINTENANCE OR OTHER
EXPENDITURES, INCLUDING MORTGAGE, RENT, UTILITIES, REPAIRS, OR IMPROVE-
MENTS FOR ANY PART OF ANY PERSONAL RESIDENCE OF A CANDIDATE OR OFFICE-
HOLDER, HIS OR HER IMMEDIATE FAMILY OR PARTNER;
B. RENT OR UTILITY PAYMENTS THAT EXCEED FAIR MARKET VALUE FOR USE OF
ANY PART OF ANY NON-RESIDENTIAL PROPERTY OWNED BY A CANDIDATE, OR A
MEMBER OF A CANDIDATE'S FAMILY OR PARTNER USED FOR CAMPAIGN PURPOSES;
C. SALARY AND OTHER FEES FOR BONA FIDE SERVICES TO A CAMPAIGN OR
LEGISLATIVE OFFICE THAT EXCEED FAIR AND REASONABLE MARKET VALUE OF SUCH
SERVICES;
D. INTEREST OR ANY OTHER FINANCE CHARGES FOR MONIES LOANED TO THE
CAMPAIGN BY THE CANDIDATE OR THE SPOUSE OR PARTNER OF SUCH CANDIDATE;
E. TUITION PAYMENTS;
F. DUES, FEES, OR GRATUITIES AT PRIVATE CLUBS, RECREATIONAL FACILITIES
OR OTHER NONPOLITICAL ORGANIZATIONS, UNLESS CONNECTED TO A SPECIFIC
WIDELY ATTENDED FUNDRAISING EVENT THAT TAKES PLACE ON THE ORGANIZATION'S
PREMISES;
G. AUTOMOBILE PURCHASES OR LONG TERM LEASES; SHORT TERM CAR RENTALS
AND CELLULAR EQUIPMENT AND SERVICES NOT USED EXCLUSIVELY FOR CAMPAIGN
PURPOSES OR DUTIES AS AN OFFICEHOLDER;
H. ADMISSION TO SPORTING EVENTS, CONCERTS, THEATERS, OR OTHER FORMS OF
ENTERTAINMENT, UNLESS PART OF A SPECIFIC CAMPAIGN OR OFFICEHOLDER
RELATED ACTIVITY; AND
I. PAYMENT OF ANY FINES, FEES, OR PENALTIES ASSESSED PURSUANT TO THIS
CHAPTER.
S. 3780 3
5. NO CAMPAIGN FUNDS SHALL BE USED TO PAY ATTORNEY'S FEES OR ANY COSTS
OF DEFENDING AGAINST ANY CIVIL OR CRIMINAL INVESTIGATION OR PROSECUTION
FOR ALLEGED VIOLATIONS OF STATE OR FEDERAL LAW ALLEGED TO HAVE BEEN
COMMITTED WHILE HOLDING PUBLIC OFFICE OR AS A CANDIDATE FOR OFFICE WHERE
THE CANDIDATE OR PUBLIC OR PARTY OFFICIAL, MEMBERS OF THEIR IMMEDIATE
FAMILIES OR PARTNERS OR THE CAMPAIGN IS THE TARGET OF SUCH INVESTIGATION
OR PROSECUTION UNLESS SUCH EXPENDITURE IS USED EXCLUSIVELY FOR COSTS
RELATED TO CIVIL OR CRIMINAL ACTIONS FOR ALLEGED VIOLATIONS RELATED TO
ACTIVITIES PROMOTING THE NOMINATION OR ELECTION OF A CANDIDATE.
S 2. The election law is amended by adding a new section 14-132 to
read as follows:
S 14-132. DISPOSITION OF CAMPAIGN FUNDS. 1. AN AUTHORIZED CONTINUING
CANDIDATE COMMITTEE MUST DISPOSE OF ALL FUNDS AND CLOSE WITHIN FOUR
YEARS AFTER THE LATER OF (A) THE END OF THE INDIVIDUAL'S MOST RECENT
TERM OF OFFICE, OR (B) THE DATE OF THE ELECTION IN WHICH THE INDIVIDUAL
LAST WAS A FILED CANDIDATE.
2. ANY CANDIDATE OR POLITICAL COMMITTEE REQUIRED TO DISPOSE OF FUNDS
PURSUANT TO THIS SECTION SHALL, AT THE OPTION OF THE CANDIDATE, OR THE
TREASURER OF A POLITICAL COMMITTEE FORMED SOLELY TO PROMOTE THE PASSAGE
OR DEFEAT OF A BALLOT PROPOSAL, DISPOSE OF SUCH FUNDS BY ANY OF THE
FOLLOWING MEANS, OR ANY COMBINATION THEREOF:
A. RETURNING, PRO RATA, TO EACH CONTRIBUTOR THE FUNDS THAT HAVE NOT
BEEN SPENT OR OBLIGATED;
B. DONATING THE FUNDS TO A CHARITABLE ORGANIZATION OR ORGANIZATIONS
THAT MEET THE QUALIFICATIONS OF SECTION 501(C)(3) OF THE INTERNAL REVEN-
UE CODE;
C. DONATING THE FUNDS TO THE STATE UNIVERSITY;
D. DONATING THE FUNDS TO THE STATE'S GENERAL FUND;
E. TRANSFERRING THE FUNDS TO A POLITICAL PARTY COMMITTEE REGISTERED
WITH THE STATE BOARD OF ELECTIONS; OR
F. CONTRIBUTING THE FUNDS TO A CANDIDATE OR POLITICAL COMMITTEE SUCH
THAT THIS DOES NOT EXCEED THE LIMITS SET FORTH IN SECTION 14-114 OF THIS
ARTICLE.
3. NO CANDIDATE OR POLITICAL COMMITTEE SHALL DISPOSE OF CAMPAIGN FUNDS
BY MAKING EXPENDITURES FOR PERSONAL USE AS DEFINED IN SECTION 14-130 OF
THIS ARTICLE.
4. UPON THE DEATH OF A CANDIDATE, FORMER CANDIDATE OR HOLDER OF ELEC-
TIVE OFFICE, WHO RECEIVED CAMPAIGN CONTRIBUTIONS, ALL CONTRIBUTIONS
SHALL BE DISPOSED OF ACCORDING TO THIS SECTION WITHIN TWELVE MONTHS OF
THE DEATH OF THE CANDIDATE.
S 3. Subdivision 1 of section 14-102 of the election law, as amended
by chapter 8 and redesignated by chapter 9 of the laws of 1978, is
amended to read as follows:
1. The treasurer of every political committee which, or any officer,
member or agent of any such committee who, in connection with any
election, receives or expends any money or other valuable thing or
incurs any liability to pay money or its equivalent shall file state-
ments sworn, or subscribed and bearing a form notice that false state-
ments made therein are punishable as a class A misdemeanor pursuant to
section 210.45 of the penal law, at the times prescribed by this article
setting forth all the receipts, contributions to and the expenditures by
and liabilities of the committee, and of its officers, members and
agents in its behalf. Such statements shall include the dollar amount of
any receipt, contribution or transfer, or the fair market value of any
receipt, contribution or transfer, which is other than of money, the
name and address of the transferor, contributor or person from whom
S. 3780 4
received, IF THE CONTRIBUTOR IS A LOBBYIST REGISTERED PURSUANT TO ARTI-
CLE ONE-A OF THE LEGISLATIVE LAW and if the transferor, contributor or
person is a political committee; the name of and the political unit
represented by the committee, the date of its receipt, the dollar amount
of every expenditure, the name and address of the person to whom it was
made or the name of and the political unit represented by the committee
to which it was made and the date thereof, and shall state clearly the
purpose of such expenditure. Any statement reporting a loan shall have
attached to it a copy of the evidence of indebtedness. Expenditures in
sums under fifty dollars need not be specifically accounted for by sepa-
rate items in said statements, and receipts and contributions aggregat-
ing not more than ninety-nine dollars, from any one contributor need not
be specifically accounted for by separate items in said statements,
provided however, that such expenditures, receipts and contributions
shall be subject to the other provisions of section 14-118 of this arti-
cle.
S 4. Subdivision 3 of section 74 of the public officers law is amended
by adding a new paragraph j to read as follows:
J. NO OFFICER OR EMPLOYEE OF A STATE AGENCY REQUIRED TO FILE AN ANNUAL
STATEMENT OF FINANCIAL DISCLOSURE PURSUANT TO SECTION SEVENTY-THREE-A OF
THIS ARTICLE SHALL SOLICIT OR RECEIVE CONTRIBUTIONS FOR A CAMPAIGN FOR
STATE OR FEDERAL OFFICE.
S 5. 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 a law.