S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8130

                            I N  S E N A T E

                              June 13, 2016
                               ___________

Introduced  by Sen. FLANAGAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the election law, in relation  to  independent  expendi-
  tures during election campaigns

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 1 of section 14-107 of  the  election  law,  as
amended  by  section  8 of part CC of chapter 56 of the laws of 2015, is
amended to read as follows:
  1. For purposes of this article:
  (a) "Independent expenditure" means an expenditure made  by  a  person
conveyed to five hundred or more members of a general public audience in
the  form of (i) an audio or video communication via broadcast, cable or
satellite, (ii) a written communication via  advertisements,  pamphlets,
circulars,  flyers,  brochures,  letterheads  or  (iii)  other published
statements which: (i) irrespective of when such communication  is  made,
contains  words  such as "vote," "oppose," "support," "elect," "defeat,"
or "reject," which call for the election or defeat of the clearly  iden-
tified  candidate, (ii) refers to and advocates for or against a clearly
identified candidate or ballot proposal on or after January first of the
year of the election in which such candidate is seeking office  or  such
proposal shall appear on the ballot, or (iii) within sixty days before a
general  or  special  election for the office sought by the candidate or
thirty days before a primary election, includes or references a  clearly
identified  candidate.  An  independent  expenditure  shall  not include
communications where such candidate, the candidate's political committee
or its agents, a party committee or its agents, or a constituted commit-
tee or its agents or a political committee formed to promote the success
or defeat of a ballot proposal or its agents,  did  authorize,  request,
suggest, foster or cooperate in such communication.
  (b) Independent expenditures do not include expenditures in connection
with:
  (i)  a  written  news story, commentary, or editorial or a news story,
commentary, or editorial  distributed  through  the  facilities  of  any

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

                                                           LBD15884-01-6

S. 8130                             2

broadcasting  station,  cable  or  satellite  unless such publication or
facilities are owned or controlled by  any  political  party,  political
committee or candidate; or
  (ii) a communication that constitutes a candidate debate or forum; or
  (iii)  internal communication by members to other members of a member-
ship organization of not more than five hundred members, for the purpose
of supporting or opposing a candidate or candidates for elective office,
provided such expenditures are not used for the costs of campaign  mate-
rial  or  communications used in connection with broadcasting, telecast-
ing, newspapers, magazines, or other periodical publication, billboards,
or similar types of general public communications; or
  (iv) internal communications by members to other members of a  member-
ship  organization  of  not  more  than five hundred members or communi-
cations by a corporation organized for charitable purposes  pursuant  to
S501(c)(3)  of  the  internal  revenue  code, within sixty days before a
general or special election for the office sought by  the  candidate  or
thirty  days  before  a  primary election, that includes or references a
clearly identified candidate but does not otherwise qualify as an  inde-
pendent expenditure under this section.
  (v)  a  communication  published  on the Internet, unless the communi-
cation is a paid advertisement.
  (c) For purposes of this section, the term "person" shall mean person,
group of persons, corporation,  unincorporated  business  entity,  labor
organization or business, trade or professional association, INDEPENDENT
EXPENDITURE COMMITTEE or organization, or political committee; provided,
however, that such definition shall not include any party or constituted
committee,  that is required to file disclosure reports under this chap-
ter.
  (D) INDEPENDENT EXPENDITURES SHALL NOT INCLUDE  PAYMENTS  OR  EXPENDI-
TURES WHERE COORDINATION OCCURS IN THE CREATION, FORMATION, OR OPERATION
OF THE PERSON MAKING THE PAYMENT OR EXPENDITURE.
  COORDINATION SHALL INCLUDE:
  (I) THE CANDIDATE OR THE CANDIDATE'S AUTHORIZED COMMITTEE, OR AN AGENT
OF  THE  CANDIDATE  OR CANDIDATE'S AUTHORIZED COMMITTEE, PARTICIPATED IN
THE CREATION OR FORMATION OF THE PERSON MAKING THE PAYMENT  OR  EXPENDI-
TURE,  DURING  THE  ELECTION  CYCLE  OF  THE CANDIDATE INVOLVED, AND THE
PAYMENT OR EXPENDITURE MADE IS FOR THE BENEFIT OF THAT CANDIDATE.
  (II) THE CANDIDATE OR AN AGENT OF THE CANDIDATE APPEARS AT ANY  EVENT,
OTHER  THAN  A PUBLIC DEBATE OR AN EVENT THAT IS OPEN TO ALL CANDIDATES,
HOSTED BY A PERSON MAKING A PAYMENT OR EXPENDITURE  THAT  BENEFITS  THAT
CANDIDATE DURING THE ELECTION CYCLE OF THE CANDIDATE INVOLVED.
  (III)  THE  PERSON  MAKING  THE  PAYMENT  OR  EXPENDITURE  EMPLOYED OR
RETAINED A PERSON WHO WAS EMPLOYED BY  THE  CANDIDATE,  THE  CANDIDATE'S
AUTHORIZED  COMMITTEE OR AN AGENT OF THE CANDIDATE OR HAS HELD A POLICY-
MAKING, NON-ADMINISTRATIVE POSITION IN THE  OFFICE  OF  THE  CANDIDATE'S
ELECTED  OFFICE DURING THE ELECTION CYCLE OF THE CANDIDATE INVOLVED, AND
THE PAYMENT OR EXPENDITURE IS MADE FOR THE BENEFIT OF THAT CANDIDATE.
  (IV) THE PERSON MAKING THE PAYMENT OR EXPENDITURE IS A MEMBER  OF  THE
CANDIDATE'S  IMMEDIATE FAMILY OR IS ESTABLISHED, DIRECTED, OR MANAGED BY
A MEMBER OF THE IMMEDIATE FAMILY OF THE CANDIDATE, AND  THE  PAYMENT  OR
EXPENDITURE IS MADE FOR THE BENEFIT OF THAT CANDIDATE.
  (V)  THE PERSON MAKING THE PAYMENT OR EXPENDITURE REPUBLISHES, DISSEM-
INATES, OR DISTRIBUTES, IN WHOLE OR IN PART, ANY VIDEO, AUDIO,  WRITTEN,
OR  OTHER  CAMPAIGN-RELATED  MATERIAL  PREPARED  BY THE CANDIDATE OR THE
CANDIDATE'S AUTHORIZED COMMITTEE OR BY AN AGENT OF THE CANDIDATE OR  THE
CANDIDATE'S  AUTHORIZED COMMITTEE, FROM STRATEGIC INFORMATION, INCLUDING

S. 8130                             3

BUT NOT LIMITED TO AUDIO RECORDINGS OR  VIDEO  FOOTAGE.  THIS  PARAGRAPH
SHALL APPLY ONLY IF THE PERSON MAKING THE PAYMENT OR EXPENDITURE OBTAINS
THE  COMMUNICATION  OR  MATERIALS  WITH  CONSENT FROM THE CANDIDATE, THE
CANDIDATE'S  CAMPAIGN,  OR  AN AGENT OF THE CANDIDATE OR THE CANDIDATE'S
CAMPAIGN AND THE PAYMENT OR EXPENDITURE IS MADE FOR THE BENEFIT  OF  THE
CANDIDATE.  INFORMATION SHALL NOT BE DEEMED STRATEGIC IF THE INFORMATION
WAS OBTAINED FROM A PUBLICLY AVAILABLE SOURCE.
  (VI) THE CANDIDATE OR THE  CANDIDATE'S  AUTHORIZED  COMMITTEE,  OR  AN
AGENT  OF  THE CANDIDATE OR THE CANDIDATE'S AUTHORIZED COMMITTEE, SHARES
OR RENTS SPACE FOR A CAMPAIGN-RELATED PURPOSE WITH OR  FROM  THE  PERSON
MAKING THE PAYMENT OR EXPENDITURE BENEFITTING THE CANDIDATE.
  (VII)  THE  PERSON  MAKING  THE PAYMENT OR EXPENDITURE BENEFITTING THE
CANDIDATE, OR A DOMINANT INTEREST CONTRIBUTOR, HAS PARTICIPATED IN STRA-
TEGIC DISCUSSIONS WITH THE CANDIDATE, THE CANDIDATE'S AUTHORIZED COMMIT-
TEE, OR AN AGENT OF THE CANDIDATE OR THE CANDIDATE'S AUTHORIZED  COMMIT-
TEE  DURING  THE  ELECTION  CYCLE OF THE CANDIDATE INVOLVED. DISCUSSIONS
SHALL BE DEEMED STRATEGIC IF INFORMATION ABOUT THE CANDIDATE'S OR  OPPO-
NENT'S CAMPAIGN PLANS, PROJECTS, OR ACTIVITIES THAT IS NOT OBTAINED FROM
A  PUBLIC  AVAILABLE SOURCE IS CONVEYED TO THE PERSON MAKING THE PAYMENT
OR EXPENDITURE.
  (VIII) THE PERSON MAKING THE PAYMENT OR  EXPENDITURE  BENEFITTING  THE
CANDIDATE  AND  THE  CANDIDATE  OR  THE CANDIDATE'S AUTHORIZED COMMITTEE
KNOWINGLY RETAIN THE SAME INDIVIDUAL OR ENTITY TO  PROVIDE  PROFESSIONAL
CAMPAIGN  SERVICES  DURING THE ELECTION CYCLE OF THE CANDIDATE INVOLVED,
AND THE PROFESSIONAL  CAMPAIGN  SERVICES  PROVIDER  DISCLOSES  STRATEGIC
INFORMATION  REGARDING ONE PARTY WITH THE OTHER PARTY. INFORMATION SHALL
BE DEEMED STRATEGIC IF IT RELATES TO EITHER PARTY'S RESPECTIVE  CAMPAIGN
OR  INDEPENDENT  EXPENDITURE  PLANS, PROJECTS, OR ACTIVITIES THAT IS NOT
OBTAINED FROM A PUBLICLY AVAILABLE SOURCE.  THIS SUBPARAGRAPH SHALL  NOT
PROHIBIT A CANDIDATE, A CANDIDATE'S AUTHORIZED COMMITTEE, OR AN AGENT OF
THE CANDIDATE OR THE CANDIDATE'S AUTHORIZED COMMITTEE FROM RETAINING THE
SAME  PROFESSIONAL  CAMPAIGN  SERVICES PROVIDER AS THE PERSON MAKING THE
PAYMENT OR EXPENDITURE BENEFITTING THE CANDIDATE UPON  THE  PROFESSIONAL
CAMPAIGN  SERVICES  PROVIDER  ENTERING  INTO A CONFIDENTIALITY AGREEMENT
WITH BOTH PARTIES EXPRESSLY STATING THAT IT WILL NOT DISCLOSE  STRATEGIC
INFORMATION REGARDING EACH PARTY WITH THE OTHER PARTY.
  (IX)  THE  PERSON  MAKING  THE  PAYMENT OR EXPENDITURE BENEFITTING THE
CANDIDATE UTILIZES STRATEGIC INFORMATION OR DATA THAT IS  NOT  OTHERWISE
AVAILABLE BY SUBSCRIPTION RELATED TO THE CANDIDATE FROM A PERSON WHO HAS
BEEN  PREVIOUSLY COMPENSATED, REIMBURSED OR RETAINED BY THE CANDIDATE AS
A POLLSTER, CONSULTANT, POLITICAL, MEDIA OR FUNDRAISING ADVISOR,  VENDOR
OR  CONTRACTOR  DURING  THE  ELECTION  CYCLE  OF THE CANDIDATE INVOLVED.
INFORMATION SHALL  NOT  BE  DEEMED  STRATEGIC  IF  THE  INFORMATION  WAS
OBTAINED FROM A PUBLICLY AVAILABLE SOURCE.
  (D-1) PARAGRAPH (D) OF THIS SUBDIVISION SHALL NOT BE READ TO LIMIT THE
SCOPE OF PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION IN ANY WAY.
  (D-2)  (I)  FOR  PURPOSES  OF  THIS  SUBDIVISION, A "DOMINANT INTEREST
CONTRIBUTOR" SHALL MEAN A CONTRIBUTOR WHO ACQUIRES A  DOMINANT  INTEREST
IN  THE  PERSON MAKING THE PAYMENT OR EXPENDITURE BENEFITTING THE CANDI-
DATE, AND THE CONTRIBUTOR'S AGGREGATE CONTRIBUTION TO THE PERSON EXCEEDS
THE CONTRIBUTION RECEIPT LIMIT APPLICABLE TO THE CANDIDATE WHO IS  BENE-
FITTED  BY  THE  COMMUNICATION  DURING  THE FOUR-MONTH PERIOD BEFORE ANY
ELECTION IN WHICH THE CANDIDATE STANDS FOR NOMINATION.
  (II) FOR PURPOSES OF THIS SUBDIVISION, "DOMINANT INTEREST" MEANS  THAT
THE PERSON MAKING THE PAYMENT OR EXPENDITURE EITHER:

S. 8130                             4

  A. RECEIVES TWENTY-FIVE PERCENT OR MORE OF ITS TOTAL CONTRIBUTIONS FOR
ANY  REPORTING PERIOD UNDER THIS ARTICLE WITHIN TWO YEARS OF THE GENERAL
ELECTION, PRIMARY OR SPECIAL ELECTION IN WHICH THE CANDIDATE IS A CANDI-
DATE FOR NOMINATION OR ELECTION, FROM AN INDIVIDUAL CONTRIBUTOR THAT HAS
CONTRIBUTED  DIRECTLY  TO  DURING  THE  ELECTION  CYCLE OF THE CANDIDATE
INVOLVED, OR
  B. RECEIVES FIFTY PERCENT OR MORE OF ITS TOTAL CONTRIBUTIONS  FOR  ANY
REPORTING  PERIOD  UNDER  THIS  ARTICLE  WITHIN TWO YEARS OF THE GENERAL
ELECTION, PRIMARY OR SPECIAL ELECTION IN WHICH THE CANDIDATE IS A CANDI-
DATE FOR NOMINATION OR ELECTION, FROM A CONTRIBUTOR THAT  IS  AN  ENTITY
DURING THE ELECTION CYCLE INVOLVED
  (E) THE FOLLOWING SHALL NOT BE COORDINATION:
  (I)  A  CANDIDATE'S  OR  A  POLITICAL PARTY COMMITTEE'S RESPONSE TO AN
INQUIRY ABOUT THAT CANDIDATE'S OR POLITICAL PARTY COMMITTEE'S  POSITIONS
ON LEGISLATIVE OR POLICY ISSUES.
  (II) A PUBLIC COMMUNICATION IN WHICH A CANDIDATE IS CLEARLY IDENTIFIED
ONLY  IN HIS OR HER CAPACITY AS THE OWNER OR OPERATOR OF A BUSINESS THAT
EXISTED PRIOR TO THE CANDIDACY IS NOT A COORDINATED  COMMUNICATION  WITH
RESPECT  TO THE CLEARLY IDENTIFIED CANDIDATE IF: (I) THE MEDIUM, TIMING,
CONTENT, AND GEOGRAPHIC DISTRIBUTION OF  THE  PUBLIC  COMMUNICATION  ARE
CONSISTENT  WITH  PUBLIC COMMUNICATIONS MADE PRIOR TO THE CANDIDACY; AND
(II) THE PUBLIC COMMUNICATION DOES  NOT  PROMOTE,  SUPPORT,  ATTACK,  OR
OPPOSE  THAT  CANDIDATE OR ANOTHER CANDIDATE IN THEIR CAPACITY AS CANDI-
DATES WHO SEEKS THE SAME OFFICE AS THAT CANDIDATE.
  (F) FOR PURPOSES OF THIS SECTION, THE TERM  "IMMEDIATE  FAMILY"  MEANS
SPOUSE,  CHILD,  PARENT,  GRANDPARENT, BROTHER, HALF-BROTHER, SISTER, OR
HALF-SISTER OF THE CANDIDATE, AND THE SPOUSES OF SUCH PERSONS.
  (G) FOR PURPOSES OF THIS SECTION, "AGENT" MEANS A PERSON AUTHORIZED BY
THE CANDIDATE OR THE  CANDIDATE'S  AUTHORIZED  COMMITTEE,  WHO  ACTS  ON
BEHALF  OF OR AT THE DIRECTION OF A CANDIDATE OR THE CANDIDATE'S AUTHOR-
IZED COMMITTEE; OR A PARTY COMMITTEE OR CONSTITUTED COMMITTEE ACTING  ON
BEHALF OF A CANDIDATE.
  S  2. Subdivision 3 of section 14-107 of the election law, as added by
section 4 of subpart C of part H of chapter 55 of the laws of  2014,  is
amended to read as follows:
  3.  [(a)] Any person prior to making any independent expenditure shall
first register with the state board of elections as a political  commit-
tee AND AS AN INDEPENDENT EXPENDITURE COMMITTEE in conformance with this
article.  Such  person  shall  comply  with  all  disclosure obligations
required for political committees by law[.
  (b) Any person who has registered with the state  board  of  elections
pursuant  to  paragraph  (a)  of  this subdivision shall disclose to the
state board of elections electronically,  once  a  week  on  Friday  any
contribution to such person over one thousand dollars or expenditures by
such  person over five thousand dollars made prior to thirty days before
any primary, general, or special election.
  (c) Any person who has registered with the state  board  of  elections
pursuant  to  paragraph  (a)  of  this subdivision shall disclose to the
state board of elections electronically,  within  twenty-four  hours  of
receipt,  any  contribution  to such person over one thousand dollars or
expenditure by such person over five thousand dollars made within thirty
days before any primary, general, or special election.
  (d) A knowing and willful violation of the provisions of this subdivi-
sion shall subject the person to a civil penalty equal to five  thousand
dollars  or  the  cost  of the communication, whichever is greater, in a
special proceeding or civil action  brought  by  the  board  or  imposed

S. 8130                             5

directly  by  the  board  of elections.] AND SHALL PROVIDE THE FOLLOWING
ADDITIONAL INFORMATION UPON REGISTRATION:
  (A)  WHERE THE PERSON MAKING THE STATEMENT IS AN INDIVIDUAL, THE NAME,
ADDRESS, OCCUPATION AND EMPLOYER OF THE PERSON.
  (B) WHERE THE PERSON MAKING THE STATEMENT IS AN ENTITY, THE  NAME  AND
EMPLOYER  OF  ANY INDIVIDUAL WHO EXERTS OPERATIONAL OR MANAGERIAL INFLU-
ENCE OR CONTROL OVER THE ENTITY, AS WELL AS ANY SALARIED EMPLOYEE OF THE
ENTITY. THE DISCLOSURES REQUIRED BY THIS  PARAGRAPH  SHALL  INCLUDE  THE
NAME OF AT LEAST ONE NATURAL PERSON.
  (C)  IDENTIFY  INDIVIDUALS  NAMED  IN  PARAGRAPHS  (A) AND (B) OF THIS
SUBDIVISION WHO HAVE, DURING THE TWO-YEAR PERIOD BEFORE THE STATEMENT IS
FILED, BEEN EMPLOYED OR RETAINED AS A POLITICAL, MEDIA,  OR  FUNDRAISING
ADVISER OR CONSULTANT FOR A CANDIDATE, ANY ENTITY DIRECTLY CONTROLLED BY
A  CANDIDATE,  OR  ANY PARTY COMMITTEE OR CONSTITUTED COMMITTEE, OR HAVE
HELD A FORMAL POSITION IN THE OFFICE OF A CANDIDATE'S ELECTED OFFICE, OR
ANY PARTY COMMITTEE OR CONSTITUTED COMMITTEE, AND THE NAME OF THE  RELE-
VANT EMPLOYER.
  (D) A LIST OF INDIVIDUALS NAMED IN PARAGRAPHS (A), (B) AND (C) OF THIS
PARAGRAPH WHO ARE MEMBERS OF A CANDIDATE'S IMMEDIATE FAMILY.
  (E)  THE  INFORMATION  PROVIDED  PURSUANT TO THIS SUBDIVISION SHALL BE
UPDATED WITHIN TWENTY-FOUR HOURS OF ANY CHANGE IN OWNERSHIP  OR  CONTROL
OF ANY REGISTERED ENTITY.
  S  3. Subdivision 4 of section 14-107 of the election law, as added by
section 4 of subpart C of part H of chapter 55 of the laws of  2014,  is
amended to read as follows:
  4.  (A) REQUIRED DISCLOSURES. (I) ANY PERSON WHO HAS REGISTERED PURSU-
ANT TO SUBDIVISION THREE OF THIS SECTION SHALL  DISCLOSE  TO  THE  STATE
BOARD  OF  ELECTIONS  ELECTRONICALLY, ONCE A WEEK ON MONDAY ANY CONTRIB-
UTION TO SUCH PERSON OVER ONE THOUSAND DOLLARS OR EXPENDITURES  BY  SUCH
PERSON OVER FIVE THOUSAND DOLLARS MADE DURING THE REPORTING PERIOD.
  (II)  ANY  PERSON WHO HAS REGISTERED WITH THE STATE BOARD OF ELECTIONS
PURSUANT TO SUBDIVISION THREE OF THIS  SECTION  SHALL  DISCLOSE  TO  THE
STATE  BOARD  OF  ELECTIONS  ELECTRONICALLY, WITHIN TWENTY-FOUR HOURS OF
RECEIPT, ANY CONTRIBUTION TO SUCH PERSON OVER ONE THOUSAND DOLLARS  MADE
WITHIN THIRTY DAYS BEFORE ANY PRIMARY, GENERAL, OR SPECIAL ELECTION.
  (B)  The  disclosures required by [subdivision three] PARAGRAPH (A) of
this [section] SUBDIVISION shall  include,  in  addition  to  any  other
information required by law:
  [(a)]  (I)  the  name,  address, occupation and employer of the person
making the statement;
  [(b) the name, address, occupation and employer of the  person  making
the independent expenditure;
  (c) the name, address, occupation and employer of any person providing
a  contribution,  gift, loan, advance or deposit of one thousand dollars
or more for the independent expenditure, or the  provision  of  services
for the same, and the date it was given;
  (d)] (II) FOR EACH EXPENDITURE OR PAYMENT MADE:  (1) the dollar amount
paid  for  each  independent  expenditure,  the  name and address of the
person or entity receiving the payment, the date the  payment  was  made
and a description of the independent expenditure; [and
  (e)]  (2)  the  election to which the independent expenditure pertains
and the name of the clearly identified candidate or the ballot  proposal
referenced  AND WHETHER THE CANDIDATE OR BALLOT PROPOSAL IS SUPPORTED OR
OPPOSED; AND

S. 8130                             6

  (3) A LIST OF ALL EXPENDITURES BY AND LIABILITIES OF THE  PERSON,  AND
OF  ITS  OFFICERS, MEMBERS AND AGENTS IN ITS BEHALF, INCURRED DURING THE
RELEVANT REPORTING PERIOD.
  (III) FOR EACH CONTRIBUTION RECEIVED:
  (1) THE NAME, ADDRESS, OCCUPATION AND EMPLOYER OF ANY PERSON PROVIDING
A  CONTRIBUTION,  GIFT, LOAN, ADVANCE OR DEPOSIT OF ONE THOUSAND DOLLARS
OR MORE FOR THE INDEPENDENT EXPENDITURE, OR THE  PROVISION  OF  SERVICES
FOR THE SAME, THE DATE IT WAS GIVEN;
  (2) ANY SOLICITOR OF FUNDS MUST NOTIFY THE POTENTIAL DONOR THAT HIS OR
HER  FUNDS  MAY ULTIMATELY BE PROVIDED TO A PERSON MAKING AN INDEPENDENT
EXPENDITURE.
  S 4. Section 14-107 of the election law is amended  by  adding  a  new
subdivision 8 to read as follows:
  8.  (A)  ALL  CRIMINAL LIABILITY RELATED TO THIS SECTION SHALL REQUIRE
KNOWING AND WILLFUL VIOLATIONS IN ACCORDANCE WITH SECTION 14-126 OF THIS
ARTICLE.
  (B) A KNOWING AND WILLFUL VIOLATION OF THE PROVISIONS OF  SUBDIVISIONS
THREE  AND  FOUR  OF  THIS  SECTION  SHALL SUBJECT THE PERSON TO A CIVIL
PENALTY EQUAL TO FIVE THOUSAND DOLLARS OR THE COST OF THE COMMUNICATION,
WHICHEVER IS GREATER, IN A SPECIAL PROCEEDING OR CIVIL ACTION BROUGHT BY
THE BOARD.
  S 5. The opening paragraph of paragraph 3 of subdivision 9 of  section
14-100  of  the  election  law,  as amended by chapter 70 of the laws of
1983, is amended to read as follows:
  any payment, by any person other  than  a  candidate  or  a  political
committee authorized by the candidate, made in connection with the nomi-
nation  for election or election of any candidate, INCLUDING ANY PAYMENT
OR EXPENDITURE WHERE COORDINATION HAS OCCURRED  AS  DEFINED  IN  SECTION
14-107  OF  THIS  ARTICLE, or any payment made to promote the success or
defeat of a political party or principle,  or  of  any  ballot  proposal
including  but  not limited to compensation for the personal services of
any individual which are  rendered  in  connection  with  a  candidate's
election  or  nomination  without charge; provided however, that none of
the foregoing shall be deemed a contribution if it  is  made,  taken  or
performed  by  a  candidate  or his spouse or by a person or a political
committee independent of the candidate or his agents or authorized poli-
tical committees. For purposes of this article, the term "independent of
the candidate or his agents or authorized  political  committees"  shall
mean that the candidate or his agents or authorized political committees
did  not  authorize,  request,  suggest, foster or cooperate in any such
activity; and provided further, that the  term  contribution  shall  not
include:
  S  6.  Section 14-100 of the election law is amended by adding two new
subdivisions 15 and 16 to read as follows:
  15. "INDEPENDENT EXPENDITURE COMMITTEE" MEANS A  POLITICAL  COMMITTEE,
THAT MAKES ONLY INDEPENDENT EXPENDITURES AS DEFINED IN THIS ARTICLE, AND
DOES  NOT COORDINATE WITH AND CONDUCTS ITS ACTIVITIES ENTIRELY INDEPEND-
ENT OF CANDIDATES, CANDIDATE'S AUTHORIZED COMMITTEES OR AN AGENT OF  THE
CANDIDATE  AS  DEFINED  IN  PARAGRAPH  (G) OF SUBDIVISION ONE OF SECTION
14-107 OF THIS ARTICLE.
  16. "POLITICAL ACTION COMMITTEE" MEANS  A  POLITICAL  COMMITTEE  WHICH
MAKES  NO EXPENDITURES, TO AID OR TAKE PART IN THE ELECTION OR DEFEAT OF
A CANDIDATE, OTHER THAN IN THE FORM OF CONTRIBUTIONS  INCLUDING  IN-KIND
CONTRIBUTIONS  TO  CANDIDATES,  CANDIDATE'S AUTHORIZED COMMITTEES, PARTY
COMMITTEES, CONSTITUTED COMMITTEES, OR INDEPENDENT  EXPENDITURE  COMMIT-
TEES  WITH  COMMON  OPERATIONAL  OR MANAGERIAL INFLUENCE OR CONTROL, AND

S. 8130                             7

MAKES NO OTHER EXPENDITURES  EXCEPT  TO  OPERATE  THE  POLITICAL  ACTION
COMMITTEE.
  S  7. Section 14-112 of the election law, as amended by chapter 930 of
the laws of 1981, is amended to read as follows:
  S 14-112. Political committee authorization statement.  Any  political
committee  aiding  or  taking  part in the election or nomination of any
candidate, other than  [by  making  contributions]  A  POLITICAL  ACTION
COMMITTEE,  shall  file,  in  the office in which the statements of such
committee are to be filed pursuant to this article, either a sworn veri-
fied statement by the treasurer of such committee that the candidate has
authorized the political committee to aid or take part in  his  election
or  that  the  candidate has not authorized the committee to aid or take
part in his election.
  S 8. Subdivision 1 of section 14-118 of the election law,  as  amended
by chapter 156 of the laws of 2010, is amended to read as follows:
  1.  Every political committee shall have a treasurer and a depository,
and shall cause the treasurer to keep detailed, bound  accounts  of  all
receipts, transfers, loans, liabilities, contributions and expenditures,
made  by  the committee or any of its officers, members or agents acting
under its authority or  in  its  behalf.  All  such  accounts  shall  be
retained  by a treasurer for a period of five years from the date of the
filing of the final statement with  respect  to  the  election,  primary
election  or  convention  to  which  they pertain. No officer, member or
agent of any political committee shall receive any receipt, transfer  or
contribution,  or  make any expenditure or incur any liability until the
committee shall have chosen a treasurer and depository and  filed  their
names  in  accordance with this subdivision. There shall be filed in the
office in which the committee is required to file its  statements  under
section  14-110  of this article, within five days after the choice of a
treasurer and depository, a statement giving the name and address of the
treasurer chosen, the name and address of any person authorized to  sign
checks  by such treasurer, the name and address of the depository chosen
and the candidate or candidates or  ballot  proposal  or  proposals  the
success  or  defeat  of  which  the  committee  is  to aid or take part;
provided, however, that such  statement  shall  not  be  required  of  a
constituted  committee  and  provided  further  that  a political ACTION
committee which makes no expenditures,  to  aid  or  take  part  in  the
election  or  defeat  of a candidate, other than in the form of contrib-
utions, shall not be required to list the candidates being supported  or
opposed  by such committee AND SHALL ALSO DISCLOSE THE NAME AND EMPLOYER
FOR ANY INDIVIDUAL WHO EXERTS OPERATIONAL  OR  MANAGERIAL  INFLUENCE  OR
CONTROL  OVER  THE  POLITICAL  ACTION  COMMITTEE AS WELL AS ANY SALARIED
EMPLOYEE OF THE POLITICAL ACTION  COMMITTEE.  Such  statement  shall  be
signed by the treasurer and all other persons authorized to sign checks.
Any  change  in  the  information  required  in  any  statement shall be
reported, in an amended statement filed in the same manner  and  in  the
same  office  as  an original statement filed under this section, within
two days after it occurs, except that any change to the mailing  address
on  any  such statement filed at the state board may also be made in any
manner deemed acceptable by the state board. Only a banking organization
authorized to do business in this state may be designated  a  depository
hereunder.
  S  9.  The election law is amended by adding a new section 14-107-a to
read as follows:
  S 14-107-A. PROHIBITED SPENDING BY INDEPENDENT EXPENDITURE  COMMITTEES
AND POLITICAL ACTION COMMITTEES. 1. AN INDEPENDENT EXPENDITURE COMMITTEE

S. 8130                             8

SHALL  NOT CONTRIBUTE TO ANY CANDIDATE, CONSTITUTED COMMITTEE, POLITICAL
COMMITTEE, OR POLITICAL PARTY.
  2.  (A)  A  POLITICAL  ACTION COMMITTEE SHALL NOT MAKE ANY INDEPENDENT
EXPENDITURES OR CONTRIBUTIONS TO ANY INDEPENDENT  EXPENDITURE  COMMITTEE
WITH COMMON OPERATIONAL OR MANAGERIAL INFLUENCE OR CONTROL.
  (B)  NO  CANDIDATE, CANDIDATE'S AUTHORIZED COMMITTEE, PARTY COMMITTEE,
OR CONSTITUTED COMMITTEE SHALL CONTRIBUTE TO AN INDEPENDENT  EXPENDITURE
COMMITTEE  THAT  IS MAKING EXPENDITURES BENEFITTING THE CANDIDATE OR THE
CANDIDATE SUPPORTED BY THE RELEVANT PARTY.
  S 10. Subdivision 10 of section 14-114 of the election law,  as  added
by chapter 79 of the laws of 1992, is amended to read as follows:
  10.  a. No contributor may make a contribution to a party [or] COMMIT-
TEE, constituted committee OR POLITICAL ACTION  COMMITTEE  and  no  such
committee  may  accept a contribution from any contributor which, in the
aggregate, is greater than sixty-two thousand five hundred  dollars  per
annum.
  b.  At the beginning of each fourth calendar year, commencing in nine-
teen hundred ninety-five, the state board shall determine the percentage
of the difference between the most  recent  available  monthly  consumer
price  index  for  all  urban  consumers  published by the United States
bureau of labor statistics and such consumer price index  published  for
the  same  month  four years previously. The amount of such contribution
limit fixed in paragraph a of this subdivision shall be adjusted by  the
amount  of such percentage difference to the closest one hundred dollars
by the state board which, not later than the first day  of  February  in
each  such  year, shall issue a regulation publishing the amount of such
contribution limit. Such contribution limit as so adjusted shall be  the
contribution  limit in effect for any election held before the next such
adjustment.
  S 11. Section 14-126 of the election law is amended by  adding  a  new
subdivision 3-a to read as follows:
  3-A. ANY PERSON WHO, ACTING AS OR ON BEHALF OF AN INDEPENDENT EXPENDI-
TURE  COMMITTEE OR A POLITICAL ACTION COMMITTEE, KNOWINGLY AND WILLFULLY
VIOLATES THE PROVISIONS OF SECTION 14-107-A OF  THIS  ARTICLE  SHALL  BE
SUBJECT TO A CIVIL PENALTY, UP TO ONE THOUSAND DOLLARS OR UP TO THE COST
OF  THE  COMMUNICATION,  WHICHEVER  IS  GREATER,  TO BE RECOVERABLE IN A
SPECIAL PROCEEDING OR CIVIL ACTION TO BE BROUGHT BY THE STATE  BOARD  OF
ELECTIONS.
  S  12.  Severability. If any clause, sentence, subdivision, paragraph,
section or part of this act be adjudged by any court of competent juris-
diction to be invalid, such judgment shall not affect, impair or invali-
date the remainder thereof, but shall be confined in  its  operation  to
the  clause,  sentence,  subdivision, paragraph, section or part thereof
directly involved in the controversy in which such judgment  shall  have
been rendered.
  S 13. This act shall take effect immediately.