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;
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(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.