BILL NUMBER:  S2097

 TITLE OF BILL :

An act to amend the election law and the penal law, in relation to
penalties for unlawful campaign contributions to county or town
committees

 PURPOSE :

To enhance penalties for certain solicitations of political
contributions for unlawful purposes.

 SUMMARY OF PROVISIONS :

Section one adds a new subdivision 7 to section 14-126 of the election
law to make punishable as a class D felony any person who solicits a
contribution to a county or town committee for the benefit of a
candidate to whom a direct contribution of such amount is unlawful.

Section two amends subdivision 3 of section 470.00 of the penal law to
include this conduct in the definition of "transaction" under the
penal code definition of money laundering.

 JUSTIFICATION :

              

It is unlawful to contribute money to a county or town committee for
the benefit of a specific candidate to whom one can't donate money
directly, and it is further unlawful to attempt to hide the identity
of a donor. This legislation will further criminalize this egregious
behavior by punishing with a class D felony those individuals who
solicit and direct these unlawful contributions in violation of
contribution limits in the election law. Any "straw" contributions
directed in this manner will also qualify as money laundering pursuant
to this legislation.

In numerous Senate races in 2014, it has been reported that political
operatives solicited campaign contributions and sought to circumvent
existing contribution limits by directing donors to send funds to
county committees in races where outside elected officials were
attempting to affect the outcome. These funds could not legally be
given to the candidates themselves, so the donors were directed to
give them money to the county committees, who can legally transfer
unlimited amounts of money to individual candidates, hiding the true
source of the donations, and in a clear attempt to evade the limits.
Enhancing the penalty for this conduct to a class D felony will
further punish and deter individuals from attempting to circumvent
legal contributions limits in this manner.

 LEGISLATIVE HISTORY :

2016: S.7381 - advanced to third reading, Cal.  736

 FISCAL IMPLICATIONS :

There are no costs to the state or localities.

 EFFECTIVE DATE :
This act shall take effect immediately.