S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8329
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             October 20, 2021
                                ___________
 
 Introduced  by M. of A. SIMON -- read once and referred to the Committee
   on Election Law
 
 AN ACT to amend the election 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 amended by section 9
 of part CC of chapter 56 of the laws of 2015, paragraphs (ix) and (x) of
 subdivision 3 as amended and paragraph (xi) of subdivision 3 as added by
 chapter 136 of the laws of 2019, is amended to read as follows:
   § 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:
   [2. No contribution shall be used to pay interest or any other finance
 charges  upon  monies  loaned  to  the campaign by such candidate or the
 spouse of such candidate.
   3. For the purposes of this section, contributions "converted  by  any
 person  to a personal use" are expenditures that are exclusively for the
 personal benefit of the  candidate  or  any  other  individual,  not  in
 connection  with  a political campaign or the holding of a public office
 or party position. "Converted by any person to  a  personal  use",  when
 meeting  the  definition  in this subdivision, shall include, but not be
 limited to, expenses for the following:
   (i) any residential or  household  items,  supplies  or  expenditures,
 including  mortgage,  rent  or  utility  payments  for  any  part of any
 personal residence of a candidate or officeholder or  a  member  of  the
 candidate's  or  officeholder's family that are not incurred as a result
 of, or to facilitate, the individual's campaign, or the execution of his

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08382-01-1
              

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 or her duties of public office or party position. In the event that  any
 property  or  building  is used for both personal and campaign use or as
 part of the execution of his or her duties of  public  office  or  party
 position,  personal  use  shall constitute expenses that exceed the pro-
 rated amount for such expenses based on fair-market value.
   (ii) mortgage, rent, or utility payments to a candidate or officehold-
 er for any part of any non-residential  property  that  is  owned  by  a
 candidate or officeholder or a member of a candidate's or officeholder's
 family and used for campaign purposes, to the extent the payments exceed
 the fair market value of the property's usage for campaign activities;
   (iii)  clothing,  other than items that are used in the campaign or in
 the execution of the duties of public office or party position;
   (iv) tuition payments unrelated to a political campaign or the holding
 of a public office or party position;
   (v) salary payments or other compensation provided to any  person  for
 services  where  such  services  are not solely for campaign purposes or
 provided in connection with the execution of the duties of public office
 or party position;
   (vi) salary payments or other compensation provided to a member  of  a
 candidate's  family,  unless  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;
   (vii) admission to a sporting event, concert, theater, or  other  form
 of entertainment, unless such event is part of, or in connection with, a
 campaign  or  is  related to the holding of public office or party posi-
 tion;
   (viii) payment of any fines or penalties assessed against  the  candi-
 date  pursuant  to  this  chapter  or  in  connection  with  a  criminal
 conviction or by the joint commission  for  public  ethics  pursuant  to
 section  ninety-four  of  the executive law or sections seventy-three or
 seventy-three-a of the public officers law  or  the  legislative  ethics
 commission pursuant to section eighty of the legislative law;
   (ix)  dues, fees, or gratuities at a country club, health club, recre-
 ational facility or other entities with a similar purpose,  unless  they
 are  expenses  connected  with  a specific fundraising event or activity
 associated with a political campaign or the holding of public office  or
 party position that takes place on the organization's premises;
   (x)  travel  expenses including automobile purchases or leases, unless
 used for campaign purposes or in connection with the  execution  of  the
 duties  of  public  office  or  party position and usage of such vehicle
 which is incidental to such purposes or the execution  of  such  duties;
 and
   (xi)  childcare expenses, other than expenses incurred in the campaign
 or in the execution of the duties of public office or party position.
   4. Nothing in this section shall prohibit a candidate from  purchasing
 equipment  or  property  from  his  or her personal funds and leasing or
 renting such equipment or property to a committee  working  directly  or
 indirectly  with  him  to aid or participate in his or her nomination or
 election, including an exploratory committee, provided that  the  candi-
 date  and  his  or her campaign treasurer sign a written lease or rental
 agreement. Such agreement shall include the lease or rental price, which
 shall not exceed the fair lease or rental value of  the  equipment.  The
 candidate  shall  not  receive  lease  or  rental payments which, in the
 aggregate, exceed the cost of purchasing the equipment or property.
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   5. Nothing in this section shall prohibit an  elected  public  office-
 holder  from  using  campaign  contributions  to facilitate, support, or
 otherwise assist in the execution or performance of the duties of his or
 her public office.
   6.  The  state  board  of elections shall issue advisory opinions upon
 request regarding  expenditures  that  may  or  may  not  be  considered
 personal  use of contributions. Any formal or informal advisory opinions
 issued by a majority vote of the commissioners of  the  state  board  of
 elections  shall  be binding on the board, the chief enforcement counsel
 established by subdivision three-a of section 3-100 of this chapter, and
 in any subsequent civil or criminal action or proceeding or  administra-
 tive proceeding.]
   A. PROMOTING THE NOMINATION OR ELECTION OF A CANDIDATE; OR
   B.  PERFORMING DUTIES OF PUBLIC OFFICE OR PARTY POSITION WHICH ARE NOT
 PAID FOR OR ELIGIBLE FOR REIMBURSEMENT BY THE  STATE  OR  ANY  POLITICAL
 SUBDIVISION OR PRIVATE PARTY, AND ORDINARY AND NECESSARY EXPENSES RELAT-
 ING TO THE HOLDING OF PUBLIC OFFICE OR PARTY POSITION.
   2.  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 DOMESTIC 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.
   3. 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 DOMESTIC 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 DOMESTIC  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  DOMESTIC  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
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   I.  PAYMENT OF ANY FINES, FEES, OR PENALTIES ASSESSED PURSUANT TO THIS
 CHAPTER.
   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 SIGNS 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.
   § 2. Section 14-132 of the election law, as added by section 2 of part
 C of chapter 286 of the laws of 2016, is amended to read as follows:
   § 14-132. Disposition of campaign funds. [1.]  Upon  the  death  of  a
 candidate,  former  candidate  or holder of elective office, [where such
 candidate or candidate's authorized  committee]  WHO  received  campaign
 contributions,  all  [such funds] CONTRIBUTIONS shall be disposed of [by
 any of the following means, or any combination thereof, within two years
 of the death of such person:
   (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 of New York or the city
 university of New York;
   (d) donating the funds to the state's general fund; or
   (e) contributing or transferring the  funds  to  a  candidate,  party,
 constituted  or  political  committee  in accordance with the applicable
 limits, if any, set forth in this article.
   2. No such candidate's authorized political committee shall dispose of
 campaign funds by making expenditures for personal  use  as  defined  in
 section 14-130 of this article.
   3.  If  funds  are  not  disposed  of within the time required by this
 section, such funds shall be recoverable by the chief enforcement  coun-
 sel  of  the  state  board of elections in a special proceeding in state
 supreme court in the manner prescribed by section 16-116 of this chapter
 and deposited into the state's general fund] WITHIN TWELVE MONTHS OF THE
 DEATH OF THE CANDIDATE PURSUANT TO SUBDIVISION ONE OF THIS SECTION.
   1. ANY POLITICAL COMMITTEE REQUIRED TO DISPOSE OF  FUNDS  PURSUANT  TO
 THIS SECTION SHALL, AT THE OPTION OF THE REPRESENTATIVE OF THE ESTATE 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
 REVENUE 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
 TITLE.
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   2. NO REPRESENTATIVE OF THE ESTATE OF A CANDIDATE OR POLITICAL COMMIT-
 TEE SHALL DISPOSE OF CAMPAIGN FUNDS BY MAKING EXPENDITURES FOR  PERSONAL
 USE AS DEFINED IN SECTION 14-130 OF THIS TITLE.
   §  3.  This  act  shall take effect on the sixtieth day after it shall
 have become a law; provided, 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.