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

                                  1543

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  M.  of  A.  REILLY,  CAMARA,  PAULIN, MAISEL, BRADLEY --
  Multi-Sponsored by --  M.  of  A.  ALESSI,  CUSICK,  DelMONTE,  GALEF,
  GUNTHER,  JOHN,  LATIMER,  SWEENEY  --  read  once and referred to the
  Committee on Election Law

AN ACT to amend the election law, in relation to the use of campaign and
  non-campaign funds

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

  Section  1.  Subdivision  3  of section 14-124 of the election law, as
amended by chapter 71 of the  laws  of  1988,  is  amended  to  read  as
follows:
  3. The contribution and receipt limits of this article shall not apply
to monies received and expenditures made by a party committee or consti-
tuted committee to maintain a permanent headquarters and staff and carry
on  ordinary activities which are not for the express purpose of promot-
ing the candidacy of specific candidates.   FOR  THE  PURPOSES  OF  THIS
SECTION,  "ORDINARY ACTIVITIES" REFERS SOLELY TO THE ACTIVITIES OF INDI-
VIDUALS WHO ARE PARTY OFFICIALS OR PUBLIC OFFICIALS  OR  THE  ACTIVITIES
CARRIED ON WITHIN PARTY FACILITIES.
  S  2.  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 be expended for any lawful
purpose THAT IS DIRECTLY RELATED TO PROMOTING THE NOMINATION OR ELECTION
OF A CANDIDATE.  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]  EXCEPT  AS  PROVIDED  IN  THIS
SECTION.    IN  ADDITION  TO  EXPENSES  DIRECTLY RELATED TO THE CAMPAIGN
INCLUDING, BUT NOT LIMITED TO, POSTAGE, SIGNS, PRINTING, FOOD, RENT  FOR
HEADQUARTERS,  STAFF,  EQUIPMENT,  OTHER  PERMISSIBLE EXPENDITURES SHALL

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

                                                           LBD03749-01-9

A. 1543                             2

INCLUDE CONTRIBUTIONS TO CHARITABLE  ORGANIZATIONS  INCLUDING,  BUT  NOT
LIMITED  TO, 501(C)3 CHARITIES, LABOR UNION FUNDRAISING EVENTS OR PUBLI-
CATIONS, RELIGIOUS OR FRATERNAL ORGANIZATIONS  AND  OTHER  ORGANIZATIONS
CERTIFIED AS CHARITABLE PURSUANT TO LAW.
  2.  A.  AS  USED  IN THIS SECTION, EXPENDITURES FOR "PERSONAL USE" ARE
DEFINED AS EXPENDITURES THAT:
  (I) ARE FOR THE PERSONAL BENEFIT OF THE CANDIDATE OR ANY  OTHER  INDI-
VIDUAL;
  (II)  DEFRAY NORMAL LIVING EXPENSES OF THE CANDIDATE, IMMEDIATE FAMILY
OF THE CANDIDATE, OR ANY OTHER INDIVIDUAL;
  (III) ARE USED TO FULFILL ANY COMMITMENT, OBLIGATION, OR EXPENSE OF  A
PERSON  THAT  WOULD  EXIST  IRRESPECTIVE  OF  THE  CANDIDATE'S  ELECTION
CAMPAIGN, INCLUDING, BUT NOT LIMITED TO, ANY EXPENSE INCURRED MORE  THAN
THIRTY DAYS AFTER THE CANDIDATE CEASES TO BE A CANDIDATE; OR,
  (IV)  ARE  PUT TO ANY USE FOR WHICH THE CANDIDATE WOULD BE REQUIRED TO
TREAT THE AMOUNT OF THE EXPENDITURE AS GROSS INCOME UNDER SECTION 61  OF
THE  INTERNAL  REVENUE  CODE, OR ANY SUBSEQUENT CORRESPONDING SECTION OF
THE INTERNAL REVENUE CODE OF THE UNITED STATES.
  B. EXPENDITURES FOR PERSONAL USE SHALL INCLUDE, BUT  ARE  NOT  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. IN THE EVENT THAT ANY PROPERTY  OR
BUILDING  IS USED FOR BOTH PERSONAL AND CAMPAIGN USE, PERSONAL USE SHALL
CONSTITUTE EXPENSES RELATING TO THAT PROPERTY OR BUILDING INCURRED  MORE
THAN  THIRTY  DAYS  AFTER THE CANDIDATE CEASES TO BE A CANDIDATE OR THAT
EXCEED THE PRO-RATED AMOUNT  FOR  SUCH  EXPENSES  BASED  ON  FAIR-MARKET
VALUE;
  (II) MORTGAGE, RENT, OR UTILITY PAYMENTS FOR ANY PART OF ANY NON-RESI-
DENTIAL  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 USAGE;
  (III)  FUNERAL,  CREMATION, OR BURIAL EXPENSES, INCLUDING ANY EXPENSES
RELATED TO A DEATH WITHIN A CANDIDATE'S OR OFFICEHOLDER'S FAMILY;
  (IV) CLOTHING, OTHER THAN ITEMS OF DE MINIMIS VALUE THAT ARE  USED  IN
THE CAMPAIGN;
  (V) TUITION PAYMENTS;
  (VI) CHILDCARE COSTS;
  (VII) DUES, FEES, OR GRATUITIES AT A COUNTRY CLUB, HEALTH CLUB, RECRE-
ATIONAL  FACILITY  OR  OTHER  NONPOLITICAL ORGANIZATION, UNLESS THEY ARE
PART OF A SPECIFIC FUNDRAISING EVENT THAT TAKES PLACE ON  THE  ORGANIZA-
TION'S PREMISES;
  (VIII) SALARY PAYMENTS TO ANY PERSON WHOSE SERVICES ARE NOT SOLELY FOR
CAMPAIGN PURPOSES;
  (IX)  SALARY  PAYMENTS 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 IN EXCESS OF THE FAIR MARKET VALUE  OF  THE  SERVICES  PROVIDED
SHALL BE CONSIDERED PAYMENTS FOR PERSONAL USE;
  (X)  ADMISSION TO A SPORTING EVENT, CONCERT, THEATER, OR OTHER FORM OF
ENTERTAINMENT, UNLESS PART OF A SPECIFIC CAMPAIGN OR OFFICEHOLDER ACTIV-
ITY;
  (XI) PAYMENT OF ANY FINES, FEES, OR  PENALTIES  ASSESSED  PURSUANT  TO
THIS CHAPTER;

A. 1543                             3

  (XII) AUTOMOBILE PURCHASES OR LEASES;
  (XIII) AUTOMOBILE INSURANCE OR MONTHLY PARKING EXPENSES;
  (XIV)  TRAVEL EXPENSES, UNLESS USED SOLELY FOR CAMPAIGN PURPOSES. IF A
CANDIDATE USES CAMPAIGN FUNDS TO PAY  EXPENSES  ASSOCIATED  WITH  TRAVEL
THAT  INVOLVES  BOTH  PERSONAL  ACTIVITIES  AND CAMPAIGN ACTIVITIES, THE
INCREMENTAL EXPENSES THAT RESULT FROM THE PERSONAL ACTIVITIES  SHALL  BE
CONSIDERED FOR PERSONAL USE UNLESS THE PERSON(S) BENEFITING FROM THE USE
REIMBURSE(S)  THE  CAMPAIGN ACCOUNT WITHIN THIRTY (30) DAYS FOR THE FULL
AMOUNT OF THE INCREMENTAL EXPENSES; AND
  (XV) ANY OTHER EXPENDITURE DESIGNATED BY THE STATE BOARD AS CONSTITUT-
ING PERSONAL USE.
  3. NOTHING IN THIS SECTION SHALL PROHIBIT A CANDIDATE FROM  PURCHASING
EQUIPMENT  OR  PROPERTY  FROM  HIS 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 NOMINATION OR ELECTION,  INCLUDING
AN  EXPLORATORY  COMMITTEE, PROVIDED THAT THE CANDIDATE AND HIS 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 PURCHAS-
ING THE EQUIPMENT OR PROPERTY.
  S 3. The election law is amended by adding two new sections 14-132 and
14-134 to read as follows:
  S 14-132. TRANSFER OF CAMPAIGN FUNDS. NO CAMPAIGN FUNDS  COLLECTED  BY
ANY CANDIDATE FOR OFFICE SHALL BE TRANSFERRED TO ANY OTHER CANDIDATE FOR
ANY OFFICE OR TO ANY POLITICAL PARTY.
  S  14-134.  PROHIBITED  USES OF CAMPAIGN FUNDS. CAMPAIGN CONTRIBUTIONS
SHALL NOT BE USED FOR ANY OF THE FOLLOWING PURPOSES:
  A. ANY EXPENDITURE IN VIOLATION OF ANY FEDERAL OR STATE LAW;
  B. PAYMENTS OR ANY VALUE GIVEN OR MADE TO THE CANDIDATE, A RELATIVE OF
THE CANDIDATE, OR TO A BUSINESS ENTITY IN WHICH ANY  SUCH  CANDIDATE  OR
RELATIVE HAS A TEN PERCENT OR GREATER OWNERSHIP INTEREST OR OF WHICH ANY
SUCH CANDIDATE OR RELATIVE IS AN OFFICER, DIRECTOR OR EMPLOYEE;
  C.  PAYMENT IN EXCESS OF THE FAIR MARKET VALUE OF SERVICES, MATERIALS,
FACILITIES OR OTHER THINGS OF VALUE RECEIVED IN EXCHANGE;
  D. EXPENDITURE FOR NON-CAMPAIGN RELATED FOOD, DRINK, TRAVEL OR  ENTER-
TAINMENT;
  E.  GIFTS, EXCEPT BROCHURES, BUTTONS, SIGNS AND OTHER CAMPAIGN MATERI-
ALS; OR
  F. DINNER OR GIFTS, OTHER THAN  THOSE  ALLOWABLE,  TO  ANY  REGISTERED
LOBBYIST  OR TO PAY FOR A MEAL, GIFT, ADMISSION OR A TICKET FOR AN EVENT
WHERE THE PRIMARY AUDIENCE IS REGISTERED LOBBYISTS;
  G. PAYMENT OF INTEREST OR ANY OTHER FINANCE CHARGES UPON MONIES LOANED
TO THE CAMPAIGN BY SUCH CANDIDATE OR THE SPOUSE OF SUCH CANDIDATE; OR
  H. PAYMENT OF ATTORNEY'S FEES OR ANY COSTS OF DEFENDING AGAINST  CIVIL
OR CRIMINAL INVESTIGATION OR PROSECUTION FOR ALLEGED VIOLATIONS OF STATE
OR  FEDERAL  LAW COMMITTED WHILE HOLDING PUBLIC OFFICE OR BEING A CANDI-
DATE FOR SUCH OFFICE.
  S 4. This act shall take effect on the first of January next  succeed-
ing the date upon which it shall have become a law.