NY State Senate Bill 2019-S3697

Senate Bill S3697

2019-2020 Legislative Session

Relates to restricting use of campaign funds at a business owned by a candidate or the candidate's family

download bill text pdf

Archive: Last Bill Status - In Senate Committee Elections Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to elections
Jun 20, 2019	committed to rules
Feb 28, 2019	advanced to third reading
Feb 27, 2019	2nd report cal.
Feb 26, 2019	1st report cal.166
Feb 12, 2019	referred to elections

Votes

- Feb 25, 2019 - Elections Committee Vote
  S3697
  
  5
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Elections Committee Vote: Feb 25, 2019
      
      aye (5)
      
      Kavanagh
      
      May
      
      Mayer
      
      Myrie
      
      Salazar
      
      aye wr (2)
      
      Akshar
      
      Young

co-Sponsors

View additional co-sponsors

2019-S3697 (ACTIVE) - Details

See Assembly Version of this Bill:: A5486
Current Committee:: Senate Elections
Law Section:: Election Law
Laws Affected:: Add §14-133, El L

2019-S3697 (ACTIVE) - Summary

Provides that contributions received by a candidate shall not be expended for goods or services provided by an entity in which the candidate and/or one or more members of the candidates family collectively hold a thirty-five percent or greater ownership.

2019-S3697 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3697           REVISED MEMO 02/26/2019

SPONSOR: GOUNARDES
 
TITLE OF BILL:  An act to amend the election law, in relation to
campaign funds for use at a business owned by a candidate or the candi-
date's family

 
PURPOSE OR GENERAL IDEA OF BILL:

Prohibit candidates from using campaign funds to purchase goods or
services from a business owned by the candidate or a member of his or
her family.

 
SUMMARY OF PROVISIONS:

Section one of the bill adds a new section 14-133 to the Election Law.
Subsection 1 of this new section prohibits a candidate from expending
campaign funds to purchase goods or services from a business in which
the candidate and members of the candidate's family collective have an
ownership or beneficial interest of at least thirty-five percent or, in
the case of a partnership or professional corporation, direct or indi-

rect ownership interest of at least five percent.

Subsection two defines the term "candidate's family" to mean a person
who is within two degrees of consanguinity or affinity to the candidate.
People who are within two degrees of consanguinity to a candidate are
the candidate's children, grandchildren, parents, siblings, and grand-
parents. People who are within two degrees of affinity to a candidate
are the candidate's spouse and the children, grandchildren, parents,
siblings, and grandparents of the candidate's spouse.

Section two of the bill provides that this act shall take effect imme-
diately.

 
EXISTING LAW:

Election Law section 14-130 prohibits candidates from converting
campaign funds for personal use that is unrelated to the campaign or
holding a political office or party position. Payments to a candidate's
family are allowed only when the "family member is providing bona fide
services to the campaign. If a family member provides bona fide services
to a campaign, any salary payments or other compensation in excess of
the fair market value of the services provided shall be considered
payments for personal use." Election Law § 14-130(3)(iv). Unfortunately,
section 14-130 does not prohibit a candidate spending campaign funds to
purchase goods or services from a business that is directly or indirect-
ly owned by the candidate and/or a member of the candidate's family.

 
JUSTIFICATION:

When a person contributes to a candidate for public office, that person
does so because he or she believes in and wants to support the candi-
date. While campaign contributors support the use of their campaign
contributions to host campaign events or purchase goods or services
needed by the campaign, they probably would not support the use when the
entity hosting the campaign event or providing the goods or services is
owned by the candidate or the candidate's family.


Throughout our lives, many of us have been told that we should live by
the Golden Rule. We should treat others the way that we wish to be
treated. This legislation will codify the Golden Rule campaign contrib-
utions. Candidates will no longer be able to funnel campaign funds to
themselves or family members by hosting a campaign event at an event
hall owned or operated by the candidate or a member of the candidate's
family or purchasing good or services from a business owned or operated
by the candidate or a member of his or her family.  Under the Golden
Rule for campaigns, candidates will treat and use campaign funds in the
manner in which they, as campaign contributors, expect their contrib-
utions to a candidate to be used.

As public servants and potential public servants, candidates need to
remember that they serve or will serve their constituents and all New
Yorkers. They promise to use their best judgment to act in the best
interest of their constituents and all New Yorkers. Using campaign funds
in a manner that provides financial gain to the candidate or a member of
his or her family is a form of money laundering that only serves to
benefit the candidate and his or her family. The rest of the candidate's
constituents are not benefitted by such a use of campaign funds. This
legislation will ensure that candidates follow the Golden Rule so that
neither the candidate nor the candidate's family will reap personal
financial gain from the expenditure of campaign funds.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S3697 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 3697                                                  A. 5486
 
                        2019-2020 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             February 12, 2019
                                ___________
 
 IN  SENATE  --  Introduced by Sens. GOUNARDES, ADDABBO, BRESLIN, COMRIE,
   HOYLMAN, KAMINSKY, KRUEGER, LIU, METZGER, RAMOS,  SERRANO,  THOMAS  --
   read  twice  and  ordered printed, and when printed to be committed to
   the Committee on Elections
 
 IN ASSEMBLY -- Introduced by M. of A. CARROLL -- read once and  referred
   to the Committee on Election Law
 
 AN  ACT to amend the election law, in relation to campaign funds for use
   at a business owned by a candidate or the candidate's family
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The election law is amended by adding a new section 14-133
 to read as follows:
   § 14-133. CAMPAIGN FUNDS FOR USE AT A BUSINESS OWNED BY A CANDIDATE OR
 THE CANDIDATE'S FAMILY. 1. NOTWITHSTANDING  THE  PROVISIONS  OF  SECTION
 14-130  OF THIS ARTICLE, CONTRIBUTIONS RECEIVED BY A CANDIDATE SHALL NOT
 BE EXPENDED FOR GOODS OR SERVICES PROVIDED BY AN  ENTITY  IN  WHICH  THE
 CANDIDATE  AND/OR  ONE OR MORE MEMBERS OF THE CANDIDATE'S FAMILY COLLEC-
 TIVELY HOLD A THIRTY-FIVE PERCENT OR  GREATER  OWNERSHIP  OR  BENEFICIAL
 INTEREST OR, IN THE CASE OF A PARTNERSHIP OR PROFESSIONAL CORPORATION, A
 DIRECT OR INDIRECT OWNERSHIP INTEREST IN EXCESS OF FIVE PERCENT.
   2.  FOR  PURPOSES OF THIS SECTION, THE TERM "CANDIDATE'S FAMILY" SHALL
 MEAN A PERSON WHOSE RELATIONSHIP TO THE CANDIDATE IS WITHIN TWO  DEGREES
 OF CONSANGUINITY OR AFFINITY.
   § 2. This act shall take effect immediately.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07289-01-9

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