A. 9029 2
S 2. This act enacts into law major components of legislation which
are necessary to implement the New York state common retirement fund
reformation act. Each component is wholly contained within a Part iden-
tified as Parts A through G. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes reference to a section
"of this act", when used in connection with that particular competent,
shall be deemed to mean and refer to the corresponding section of the
Part in which it is found. Section four of this act sets forth the
general effective date of this act.
PART A
Section 1. Subdivision b and the first undesignated paragraph of
section 423 of the retirement and social security law, as amended by
chapter 770 of the laws of 1970, are amended to read as follows:
b. To assist in the management of the monies of the common retirement
fund, the comptroller shall appoint an investment advisory committee
consisting of not less than seven members who shall serve for his OR HER
term of office. A vacancy occurring from any cause other than expiration
of term shall be filled by the comptroller for the remainder of the
term. Each member of the committee shall be experienced in the field of
investments and shall have served, or shall be serving, as a senior
officer or member of the board of an insurance company, banking corpo-
ration or other financial or investment organization authorized to do
business in the state of New York. The committee shall advise the comp-
troller on investment policies relating to the monies of the common
retirement fund and shall review, from time to time, the investment
portfolio of the fund and make such recommendations as may be deemed
necessary. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, INDIVIDUALS
APPOINTED TO THE INVESTMENT ADVISORY COMMITTEE SHALL BE ELIGIBLE FOR
DEFENSE AND INDEMNIFICATION IN ACCORDANCE WITH SECTION SEVENTEEN OF THE
PUBLIC OFFICERS LAW.
The comptroller shall appoint a separate [mortgage] REAL ESTATE advi-
sory committee, with the advice and consent of the investment advisory
committee, to review proposed [mortgage and] real estate AND MORTGAGE
investments by the common retirement fund. In making investments, as
authorized by law, the comptroller shall be guided by policies estab-
lished by each committee from time to time; and, in the event the [mort-
gage] REAL ESTATE advisory committee disapproves a proposed [mortgage
or] real estate investment, such INVESTMENT shall not be made. NOTWITH-
STANDING ANY OTHER PROVISION OF LAW, INDIVIDUALS APPOINTED TO THE REAL
ESTATE ADVISORY COMMITTEE SHALL BE ELIGIBLE FOR DEFENSE AND INDEMNIFICA-
TION IN ACCORDANCE WITH SECTION SEVENTEEN OF THE PUBLIC OFFICERS LAW.
S 2. This act shall take effect immediately and shall apply to all
claims, actions and proceedings pending on or commenced on or after such
effective date.
PART B
Section 1. The executive law is amended by adding a new section 41-b
to read as follows:
S 41-B. USE OF PLACEMENT AGENTS OR INTERMEDIARIES PROHIBITED. 1. IN
ORDER TO PRESERVE THE INDEPENDENCE AND INTEGRITY OF THE COMMON RETIRE-
MENT FUND AND TO PRECLUDE POTENTIAL CONFLICTS OF INTEREST, NO EMPLOYEE
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OF THE COMMON RETIREMENT FUND SHALL KNOWINGLY AND WILLFULLY MAKE ANY
COMMITMENT OF THE ASSETS OR RESOURCES OF SUCH FUND TO ANY INVESTMENT
MANAGER IF SUCH INVESTMENT MANAGER HAS ENGAGED, HIRED, UTILIZED OR
RETAINED FOR COMPENSATION A PLACEMENT AGENT OR INTERMEDIARY FOR THE
PURPOSE OF SECURING OR INFLUENCING THE DECISION TO SECURE A PARTICULAR
TRANSACTION OR INVESTMENT BY SUCH FUND.
2. FOR THE PURPOSES OF THIS SECTION:
(A) "INVESTMENT MANAGER" SHALL MEAN ANY PERSON, OTHER THAN AN EMPLOYEE
OF THE STATE COMPTROLLER, OR ENTITY ENGAGED BY THE COMMON RETIREMENT
FUND IN THE MANAGEMENT OF PART OR ALL OF AN INVESTMENT PORTFOLIO OF THE
FUND. "MANAGEMENT" SHALL INCLUDE, BUT IS NOT LIMITED TO, ANALYSIS OF
PORTFOLIO HOLDINGS, AND THE PURCHASE, SALE, AND LENDING THEREOF.
(B) "PLACEMENT AGENT OR INTERMEDIARY" SHALL MEAN ANY PERSON OR ENTITY,
INCLUDING A REGISTERED LOBBYIST, THAT IS DIRECTLY OR INDIRECTLY, FOR
COMPENSATION, WHETHER UPON A FIXED, CONTINGENT OR ANY OTHER BASIS,
HIRED, ENGAGED, UTILIZED OR RETAINED FOR FACILITATING THE PLACEMENT OF
AN INVESTMENT WITH THE INVESTMENT MANAGER. A PLACEMENT AGENT OR INTERME-
DIARY DOES NOT INCLUDE A REGULAR EMPLOYEE OF THE INVESTMENT MANAGER.
S 2. This act shall take effect immediately; provided, however, that
the provisions of section 41-b of the executive law, as added by section
one of this act shall apply to agreements between the common retirement
fund and investment managers entered into on and after such date.
PART C
Section 1. The executive law is amended by adding a new section 41-c
to read as follows:
S 41-C. CODE OF CONDUCT. 1. FOR PURPOSES OF MAINTAINING THE INTEGRITY
OF THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM AND OF THE
NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM, THE STATE
COMPTROLLER SHALL, WITHIN HIS OR HER DISCRETION, ADOPT A CODE OF
CONDUCT. SUCH CODE OF CONDUCT SHALL ESTABLISH STANDARDS OF CONDUCT FOR
THE MANAGEMENT OF SUCH SYSTEMS AND SHALL APPLY TO THE CONDUCT OF BUSI-
NESS OF SUCH SYSTEMS BY THE STATE COMPTROLLER AS THE SOLE TRUSTEE OF THE
NEW YORK STATE COMMON RETIREMENT FUND AND AS THE ADMINISTRATIVE HEAD OF
SUCH SYSTEMS, BY THE OFFICERS AND EMPLOYEES OF THE OFFICE OF STATE COMP-
TROLLER WITH RESPONSIBILITY FOR MATTERS RELATING TO SUCH SYSTEMS OR
FUND, BY THE ADVISORS, CONSULTANTS AND INVESTMENT MANAGERS ENGAGED BY
THE NEW YORK STATE COMMON RETIREMENT FUND AND BY THE MEMBERS OF ADVISORY
COMMITTEES TO THE STATE COMPTROLLER.
2. SUCH CODE OF CONDUCT SHALL BE DESIGNED TO ENSURE THAT THE NEW YORK
STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM AND THE NEW YORK STATE AND
LOCAL POLICE AND FIRE RETIREMENT SYSTEM AND THE NEW YORK STATE COMMON
RETIREMENT FUND SHALL ADHERE TO AND BE MANAGED IN ACCORDANCE WITH THE
CARE, SKILL, PRUDENCE AND DILIGENCE UNDER THE CIRCUMSTANCES THEN
PREVAILING THAT A PRUDENT PERSON ACTING IN A LIKE CAPACITY AND FAMILIAR
WITH SUCH MATTERS WOULD USE IN THE CONDUCT OF AN ENTERPRISE OF A LIKE
CHARACTER AND WITH LIKE AIMS AND THAT ACTIONS ON BEHALF OF SUCH SYSTEMS
AND FUND SHALL BE FOR THE EXCLUSIVE BENEFIT OF THE MEMBERS, RETIREES AND
BENEFICIARIES OF SUCH SYSTEMS.
3. SUCH CODE OF CONDUCT MAY INCLUDE, BUT NEED NOT BE LIMITED TO, FIDU-
CIARY DUTIES OF THE STATE COMPTROLLER; THE REQUIREMENT OF AN INVESTMENT
POLICY STATEMENT FOR THE NEW YORK STATE COMMON RETIREMENT FUND; DUTIES
OF THE ADVISORY COUNCIL AND COMMITTEES INCLUDING, BUT NOT LIMITED TO,
THE INVESTMENT COMMITTEE, REAL ESTATE ADVISORY COMMITTEES, THE AUDIT
COMMITTEE AND THE ACTUARIAL COMMITTEE; FIDUCIARY DUTIES OF EMPLOYEES OF
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THE OFFICE OF STATE COMPTROLLER WHO HAVE RESPONSIBILITY FOR MATTERS
RELATING TO THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM,
THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM AND THE
NEW YORK STATE COMMON RETIREMENT FUND INCLUDING, BUT NOT LIMITED TO,
FIDUCIARY AND ETHICS TRAINING AND COMPLIANCE WITH THE PROVISIONS OF THE
PUBLIC OFFICERS LAW; POLICIES TO PREVENT THE MISUSE OF MATERIAL AND
CONFIDENTIAL INFORMATION BY OFFICERS, AND EMPLOYEES; GUIDELINES FOR
INTERNAL AUDITS OF SUCH SYSTEMS AND FUND; FIDUCIARY DUTIES AND CONFLICT
OF INTEREST DISCLOSURE POLICIES FOR INVESTMENT MANAGERS, CONSULTANTS AND
ADVISORS TO SUCH FUND; GUIDELINES FOR THE PROCUREMENT OF SERVICES OF
INVESTMENT MANAGERS, CONSULTANTS AND ADVISORS; GUIDELINES FOR THE AUDIT
OF FEES BY THE SUPERINTENDENT OF THE DEPARTMENT OF INSURANCE; GUIDELINES
FOR THE INVESTIGATION OF COMPLAINTS OF ABUSE WITHIN SUCH SYSTEMS OR
FUND, GUIDELINES FOR THE MAINTENANCE OF ALL BOOKS AND RECORDS OF SUCH
SYSTEMS AND FUND; GUIDELINES FOR AN ANNUAL AUDIT OF SUCH SYSTEMS AND
FUND; AND GUIDELINES FOR THE PUBLICATION OF INFORMATION RELATED TO SUCH
SYSTEMS AND FUND INCLUDING, BUT NOT LIMITED TO, FUND PERFORMANCE AND
TRANSACTIONS.
S 2. This act shall take effect immediately.
PART D
Section 1. Short title. This act shall be known and may be cited as
the "State Comptroller Campaign Finance Reform Act".
S 2. Legislative findings and declaration. The legislature is commit-
ted to reforming New York's campaign finance system and bolstering
public confidence in the democratic process. Whether or not a system of
large campaign contributions creates actual unfair influence, the
appearance and perception of such influence gives rise to distrust in
government and citizen apathy that could undermine the democratic poli-
tical process.
The legislature finds that the high cost of running a campaign for
statewide office in New York discourages qualified candidates from
running and inevitably forces candidates to spend too much time raising
money rather than attending to official duties and concentrating on the
issues that do concern and should concern voters. Addressing such
concerns in the context of the election to the office of state comp-
troller is an appropriate place to start in reforming New York's system
of campaign finance; the state comptroller campaign finance reform act
is a first step.
Therefore, the legislature finds that limiting campaign contributions
to a level that is sufficient to permit candidates to raise money to run
an effective, statewide campaign as title II of article 14 of the
election law requires, furthers the state's legitimate interest in
reducing real and perceived unjust influence on government. Such title's
program of voluntary expenditure caps combined with public financing and
a minimal threshold for participation in the program, furthers the
state's interest in encouraging qualified candidates to run for office
regardless of their access to substantial wealth, thus increasing public
debate and participation in the democratic process. The legislature also
believes that such title's voluntary spending caps ensure a level play-
ing field for all candidates who participate.
Thus, the legislature enacts the state comptroller campaign finance
reform act with the express purpose of furthering all of these state
interests which, if strengthened, will only make the election process
more open and fair and, ultimately, more democratic.
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S 3. The article heading of article 14 of the election law is amended
to read as follows:
CAMPAIGN RECEIPTS AND EXPENDITURES; PUBLIC FINANCING
S 4. Section 14-100 of the election law is amended by adding three new
subdivisions 12, 13, and 14 to read as follows:
12. "CLEARLY IDENTIFIED CANDIDATE" MEANS THAT:
(A) THE NAME OF THE CANDIDATE INVOLVED APPEARS;
(B) A PHOTOGRAPH OR DRAWING OF THE CANDIDATE APPEARS; OR
(C) THE IDENTITY OF THE CANDIDATE IS APPARENT BY UNAMBIGUOUS REFER-
ENCE.
13. "GENERAL PUBLIC AUDIENCE" MEANS AN AUDIENCE COMPOSED OF MEMBERS OF
THE PUBLIC, INCLUDING A TARGETED SUBGROUP OF MEMBERS OF THE PUBLIC;
PROVIDED, HOWEVER, IT DOES NOT MEAN AN AUDIENCE SOLELY COMPRISED OF
MEMBERS, RETIREES AND STAFF OF A LABOR ORGANIZATION OR THEIR IMMEDIATE
FAMILY MEMBERS OR AN AUDIENCE SOLELY COMPRISED OF EMPLOYEES OF A BUSI-
NESS ENTITY.
14. "LABOR ORGANIZATION" MEANS ANY ORGANIZATION OF ANY KIND WHICH
EXISTS FOR THE PURPOSE, IN WHOLE OR IN PART, OF REPRESENTING EMPLOYEES
EMPLOYED WITHIN THE STATE OF NEW YORK IN DEALING WITH EMPLOYERS OR
EMPLOYER ORGANIZATIONS OR WITH A STATE GOVERNMENT, OR ANY POLITICAL OR
CIVIL SUBDIVISION OR OTHER AGENCY THEREOF, CONCERNING TERMS AND CONDI-
TIONS OF EMPLOYMENT, GRIEVANCES, LABOR DISPUTES, OR OTHER MATTERS INCI-
DENTAL TO THE EMPLOYMENT RELATIONSHIP. FOR THE PURPOSES OF THIS ARTI-
CLE, EACH LOCAL, PARENT NATIONAL OR PARENT INTERNATIONAL ORGANIZATION OF
A STATEWIDE LABOR ORGANIZATION, AND EACH STATEWIDE FEDERATION RECEIVING
DUES FROM SUBSIDIARY LABOR ORGANIZATIONS, SHALL BE CONSIDERED A SEPARATE
LABOR ORGANIZATION.
S 5. Section 14-106 of the election law, as amended by chapter 8 of
the laws of 1978, is amended to read as follows:
S 14-106. Political [advertisements and literature] COMMUNICATION.
The statements required to be filed under the provisions of this article
next succeeding a primary, general or special election shall be accompa-
nied by a [facsimile or] copy of all BROADCAST, CABLE OR SATELLITE SCHE-
DULES AND SCRIPTS, advertisements, pamphlets, circulars, flyers,
brochures, letterheads and other printed matter purchased or produced
[and a schedule of all radio or television time, and scripts used there-
in], AND REPRODUCTIONS OF STATEMENTS OR INFORMATION CONVEYED TO FIVE
HUNDRED OR MORE MEMBERS OF A GENERAL PUBLIC AUDIENCE BY COMPUTER OR
OTHER ELECTRONIC DEVICE, purchased in connection with such election by
or under the authority of the person filing the statement or the commit-
tee or the person on whose behalf it is filed, as the case may be. Such
[facsimiles,] copies, schedules and scripts shall be preserved by the
officer with whom or the board with which it is required to be filed for
a period of one year from the date of filing thereof.
S 5-a. The election law is amended by adding a new section 14-107 to
read as follows:
S 14-107. INDEPENDENT EXPENDITURE REPORTING. 1. FOR PURPOSES OF THIS
ARTICLE:
(A) "INDEPENDENT EXPENDITURE" MEANS AN EXPENDITURE MADE BY A PERSON
FOR AN AUDIO OR VIDEO COMMUNICATION TO A GENERAL PUBLIC AUDIENCE VIA
BROADCAST, CABLE OR SATELLITE OR A WRITTEN COMMUNICATION TO A GENERAL
PUBLIC AUDIENCE VIA ADVERTISEMENTS, PAMPHLETS, CIRCULARS, FLYERS,
BROCHURES, LETTERHEADS OR OTHER PRINTED MATTER AND STATEMENTS OR INFOR-
MATION CONVEYED TO FIVE HUNDRED OR MORE MEMBERS OF A GENERAL PUBLIC
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AUDIENCE BY COMPUTER OR OTHER ELECTRONIC DEVICES WHICH: (I) EXPRESSLY
ADVOCATES THE ELECTION OR DEFEAT OF A CLEARLY IDENTIFIED CANDIDATE OR
THE SUCCESS OR DEFEAT OF A BALLOT PROPOSAL AND (II) SUCH CANDIDATE, THE
CANDIDATE'S POLITICAL COMMITTEE OR ITS AGENTS, OR A POLITICAL COMMITTEE
FORMED TO PROMOTE THE SUCCESS OR DEFEAT OF A BALLOT PROPOSAL OR ITS
AGENTS, DID NOT AUTHORIZE, REQUEST, SUGGEST, FOSTER OR COOPERATE IN ANY
SUCH COMMUNICATION.
(B) INDEPENDENT EXPENDITURES DO NOT INCLUDE:
(I) A COMMUNICATION APPEARING IN A WRITTEN NEWS STORY, COMMENTARY, OR
EDITORIAL OR DISTRIBUTED THROUGH THE FACILITIES OF ANY BROADCASTING
STATION, CABLE OR SATELLITE UNLESS SUCH PUBLICATION OR FACILITIES ARE
OWNED OR CONTROLLED BY ANY POLITICAL PARTY, POLITICAL COMMITTEE OR
CANDIDATE; OR
(II) A COMMUNICATION THAT CONSTITUTES A CANDIDATE DEBATE OR FORUM; OR
(III) A COMMUNICATION WHICH CONSTITUTES AN EXPENDITURE MADE BY AN
ENTITY REQUIRED TO REPORT SUCH EXPENDITURE WITH A BOARD OF ELECTIONS.
(C) FOR PURPOSES OF THIS SECTION, THE TERM "PERSON" SHALL MEAN PERSON,
GROUP OF PERSONS, ENTITY, ORGANIZATION OR ASSOCIATION.
2. WHENEVER ANY PERSON MAKES AN INDEPENDENT EXPENDITURE THAT COSTS
MORE THAN ONE THOUSAND DOLLARS IN THE AGGREGATE, SUCH COMMUNICATION
SHALL CLEARLY STATE THE NAME OF THE PERSON WHO PAID FOR, OR OTHERWISE
PUBLISHED OR DISTRIBUTED, THE COMMUNICATION AND STATE, WITH RESPECT TO
COMMUNICATIONS REGARDING CANDIDATES, THAT THE COMMUNICATION IS NOT
AUTHORIZED BY ANY CANDIDATE, ANY CANDIDATE'S POLITICAL COMMITTEE OR ANY
OF ITS AGENTS. A KNOWING AND WILLFUL VIOLATION OF THE PROVISIONS OF
THIS SUBDIVISION SHALL SUBJECT THE PERSON TO A CIVIL PENALTY EQUAL TO
ONE THOUSAND DOLLARS OR THE COST OF THE COMMUNICATION, WHICHEVER IS
GREATER, IN A SPECIAL PROCEEDING OR CIVIL ACTION BROUGHT BY THE STATE
BOARD OF ELECTIONS.
3. (A) ANY PERSON WHICH MAKES INDEPENDENT EXPENDITURES THAT COST MORE
THAN ONE THOUSAND DOLLARS IN THE AGGREGATE SHALL REPORT SUCH INDEPENDENT
EXPENDITURES TO THE STATE BOARD OF ELECTIONS ON STATEMENTS AS PROVIDED
FOR IN SECTION 14-108 OF THIS ARTICLE.
(B) ANY INDEPENDENT EXPENDITURE MADE AFTER THE CLOSE OF THE PERIOD TO
BE COVERED IN THE LAST STATEMENT FILED BEFORE ANY PRIMARY OR GENERAL
ELECTION, BUT BEFORE SUCH ELECTION, SHALL BE REPORTED WITHIN TWENTY-FOUR
HOURS IN THE SAME MANNER AS PROVIDED FOR IN SUBDIVISION TWO OF SECTION
14-108 OF THIS ARTICLE.
4. EACH SUCH STATEMENT SHALL INCLUDE:
(A) THE NAME AND ADDRESS OF THE PERSON MAKING THE STATEMENT;
(B) THE NAME AND ADDRESS OF THE PERSON MAKING THE INDEPENDENT EXPENDI-
TURE;
(C) THE NAME AND ADDRESS OF ANY PERSON OR ENTITY PROVIDING A GIFT,
LOAN, ADVANCE OR DEPOSIT OF ONE HUNDRED DOLLARS OR MORE FOR THE INDE-
PENDENT EXPENDITURE, OR THE PROVISION OF SERVICES FOR THE SAME, AND THE
DATE IT WAS GIVEN; PROVIDED, HOWEVER, THE NAME AND ADDRESS OF A MEMBER
OF A LABOR ORGANIZATION IS NOT REQUIRED FOR A GIFT, LOAN, ADVANCE OR
DEPOSIT OF ONE HUNDRED DOLLARS OR MORE TO A LABOR ORGANIZATION OR A
LABOR ORGANIZATION POLITICAL ACTION COMMITTEE;
(D) THE DOLLAR AMOUNT PAID FOR EACH INDEPENDENT EXPENDITURE, THE NAME
AND ADDRESS OF THE PERSON OR ENTITY RECEIVING THE PAYMENT, THE DATE THE
PAYMENT WAS MADE AND A DESCRIPTION OF THE INDEPENDENT EXPENDITURE; AND
(E) THE ELECTION TO WHICH THE INDEPENDENT EXPENDITURE PERTAINS AND THE
NAME OF THE CLEARLY IDENTIFIED CANDIDATE OR THE BALLOT PROPOSAL REFER-
ENCED.
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5. ANY REPORT MADE PURSUANT TO THIS SECTION SHALL INCLUDE A COPY OF
ALL MATERIALS THAT PERTAIN TO THE INDEPENDENT EXPENDITURE, INCLUDING BUT
NOT LIMITED TO BROADCAST, CABLE OR SATELLITE SCHEDULE AND SCRIPTS,
ADVERTISEMENTS, PAMPHLETS, CIRCULARS, FLYERS, BROCHURES, LETTERHEADS AND
OTHER PRINTED MATTER.
6. ANY REPORT OF A LOAN THAT IS MADE FOR AN INDEPENDENT EXPENDITURE
SHALL INCLUDE WRITTEN EVIDENCE OF THE INDEBTEDNESS.
7. EVERY STATEMENT REQUIRED TO BE FILED PURSUANT TO THIS SECTION SHALL
BE FILED BY ELECTRONIC REPORTING PROCESS OR OVERNIGHT MAIL TO THE STATE
BOARD OF ELECTIONS.
8. THE STATE BOARD OF ELECTIONS SHALL PROMULGATE REGULATIONS WITH
RESPECT TO THE STATEMENTS REQUIRED TO BE FILED BY THIS SECTION AND SHALL
PROVIDE FORMS SUITABLE FOR SUCH STATEMENTS.
S 5-b. Section 14-112 of the election law, as amended by chapter 930
of the laws of 1981, is amended to read as follows:
S 14-112. Political committee authorization statement. 1. Any poli-
tical committee aiding or taking part in the election or nomination of
any candidate, other than by making contributions, shall file, in the
office in which the statements of such committee are to be filed pursu-
ant to this article, either a sworn verified statement by the treasurer
of such committee that the candidate has authorized the political
committee to aid or take part in his election or that the candidate has
not authorized the committee to aid or take part in his election.
2. NO LATER THAN THREE DAYS AFTER THE LAST DAY TO FILE DESIGNATING
PETITIONS, A CANDIDATE FOR STATE COMPTROLLER SHALL FILE A STATEMENT WITH
THE STATE BOARD OF ELECTIONS STATING WHETHER THE CANDIDATE HAS OR WILL
CONTRIBUTE PERSONAL FUNDS TO HIS OR HER AUTHORIZED COMMITTEE FOR USE IN
SUCH ELECTION AND AN ESTIMATE OF THE AMOUNT OF PERSONAL FUNDS CONTRIB-
UTED OR TO BE CONTRIBUTED. THE KNOWING AND WILLFUL FAILURE TO FILE THE
STATEMENT REQUIRED BY THIS SUBDIVISION SHALL SUBJECT THE CANDIDATE TO A
CIVIL PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS IN A SPECIAL PROCEED-
ING OR CIVIL ACTION BROUGHT BY THE STATE BOARD OF ELECTIONS.
S 5-c. Section 14-126 of the election law, as amended by chapter 8 of
the laws of 1978, subdivision 1 as amended by chapter 128 of the laws of
1994, subdivisions 2, 3, and 4 as redesignated by chapter 9 of the laws
of 1978, is amended to read as follows:
S 14-126. Violations; penalties. 1. Any person who fails to file a
statement required to be filed by this article shall be subject to a
civil penalty, not in excess of five hundred dollars, to be recoverable
in a special proceeding or civil action to be brought by the state board
of elections or other board of elections.
2. ANY PERSON WHO KNOWINGLY AND WILLFULLY FAILS TO IDENTIFY INDEPEND-
ENT EXPENDITURES AS REQUIRED BY SUBDIVISION TWO OF SECTION 14-107 OR
KNOWINGLY AND WILLFULLY FAILS TO FILE THE STATEMENT REQUIRED BY SUBDIVI-
SION TWO OF SECTION 14-112 SHALL BE SUBJECT TO A CIVIL PENALTY IN A
SPECIAL PROCEEDING OR CIVIL ACTION BROUGHT BY THE STATE BOARD OF
ELECTIONS.
[2.] 3. Any person who knowingly and willfully fails to file a state-
ment required to be filed by this article within ten days after the date
provided for filing such statement or any person who knowingly and will-
fully violates any other provision of this article shall be guilty of a
misdemeanor.
[3.] 4. Any person who knowingly and willfully contributes, accepts or
aids or participates in the acceptance of a contribution in an amount
exceeding an applicable maximum specified in this article shall be guil-
ty of a misdemeanor.
A. 9029 8
[4.] 5. Any person who shall, acting on behalf of a candidate or poli-
tical committee, knowingly and willfully solicit, organize or coordinate
the formation of activities of one or more unauthorized committees, make
expenditures in connection with the nomination for election or election
of any candidate, or solicit any person to make any such expenditures,
for the purpose of evading the contribution limitations of this article,
shall be guilty of a class E felony.
S 6. Sections 14-100 through 14-130 of article 14 of the election law
are designated title 1 and a new title heading is added to read as
follows:
CAMPAIGN RECEIPTS AND EXPENDITURES
S 7. Article 14 of the election law is amended by adding a new title 2
to read as follows:
TITLE II
PUBLIC FINANCING
SECTION 14-200. DEFINITIONS.
14-202. ELIGIBILITY.
14-204. QUALIFIED CAMPAIGN EXPENDITURES.
14-206. OPTIONAL PUBLIC FINANCING.
14-208. CONTRIBUTION AND RECEIPT LIMITATIONS.
14-210. EXPENDITURE LIMITATIONS.
14-212. EXAMINATIONS AND AUDITS; REPAYMENTS.
14-214. CIVIL PENALTIES.
S 14-200. DEFINITIONS. AS USED IN THIS TITLE, UNLESS ANOTHER MEANING
IS CLEARLY INDICATED:
1. THE TERM "STATE BOARD" SHALL MEAN THE STATE BOARD OF ELECTIONS.
2. THE TERM "ELIGIBLE CANDIDATE" SHALL MEAN A CANDIDATE FOR NOMINATION
OR ELECTION TO THE OFFICE OF STATE COMPTROLLER.
3. THE TERM "PARTICIPATING COMMITTEE" SHALL MEAN A SINGLE POLITICAL
COMMITTEE WHICH A CANDIDATE CERTIFIES IS THE COMMITTEE THAT WILL SOLELY
BE USED TO PARTICIPATE IN THE PUBLIC FINANCING SYSTEM ESTABLISHED BY
THIS TITLE AFTER JANUARY FIRST OF THE YEAR IN WHICH THE PRIMARY OR
GENERAL ELECTION IS HELD FOR THE PUBLIC OFFICE SOUGHT. A MULTI-CANDI-
DATE COMMITTEE MAY NOT BE A PARTICIPATING COMMITTEE.
4. THE TERM "PARTICIPATING CANDIDATE" SHALL MEAN A CANDIDATE WHO IS
ELIGIBLE TO PARTICIPATE IN THE OPTIONAL PUBLIC FINANCING SYSTEM ESTAB-
LISHED BY THIS TITLE, HAS MET THE THRESHOLD FOR ELIGIBILITY AND HAS
ELECTED TO PARTICIPATE IN THE PUBLIC FINANCING SYSTEM.
5. THE TERM "MATCHABLE CONTRIBUTIONS" SHALL MEAN THAT PORTION OF THE
AGGREGATE CONTRIBUTIONS MADE IN THE CASE OF A PRIMARY OR GENERAL
ELECTION, AFTER JANUARY FIRST OF THE YEAR IN WHICH THE PRIMARY OR GENER-
AL ELECTION IS HELD FOR THE PUBLIC OFFICE SOUGHT BY NATURAL PERSONS
RESIDENT IN THE STATE OF NEW YORK TO A CANDIDATE FOR NOMINATION OR
ELECTION TO THE OFFICE COVERED BY THE PROVISIONS OF THIS TITLE WHICH DO
NOT EXCEED TWO HUNDRED FIFTY DOLLARS, WHICH HAVE BEEN REPORTED IN FULL
BY THE CANDIDATE'S PARTICIPATING COMMITTEE TO THE STATE BOARD, INCLUDING
THE CONTRIBUTOR'S FULL NAME AND RESIDENTIAL ADDRESS. "MATCHABLE CONTRIB-
UTIONS" SHALL BE THE NET AMOUNT OF ANY MONETARY CONTRIBUTION REALIZED BY
A CANDIDATE OR DESIGNATED COMMITTEE AFTER DEDUCTING THE REASONABLE VALUE
OF ANY GOODS OR SERVICES PROVIDED THE CONTRIBUTOR IN CONNECTION WITH THE
CONTRIBUTION, EXCEPT THAT CONTRIBUTIONS FROM ANY PERSON WHO HAS RECEIVED
A PAYMENT OR ANYTHING OF VALUE FROM SUCH COMMITTEE OR FROM A PERSON WHO
IS AN OFFICER, DIRECTOR OR EMPLOYEE OF, OR A PERSON WHO HAS A TEN
PERCENT OR GREATER OWNERSHIP INTEREST IN ANY ENTITY WHICH HAS RECEIVED
A. 9029 9
SUCH A PAYMENT OR THING OF VALUE SHALL NOT BE MATCHABLE. A LOAN MAY NOT
BE TREATED AS A MATCHABLE CONTRIBUTION.
6. THE TERM "QUALIFIED CAMPAIGN EXPENDITURE" SHALL MEAN AN EXPENDITURE
FOR WHICH PUBLIC FUNDS MAY BE USED.
7. THE TERM "FUND" SHALL MEAN THE NEW YORK STATE CAMPAIGN FINANCE
FUND.
8. THE TERM "THRESHOLD FOR ELIGIBILITY" SHALL MEAN THE AMOUNT OF TOTAL
MATCHABLE CONTRIBUTIONS THAT THE PARTICIPATING COMMITTEE OF AN OTHERWISE
ELIGIBLE CANDIDATE MUST RECEIVE, AS REQUIRED BY SECTION 14-202 OF THIS
TITLE, IN ORDER TO QUALIFY FOR OPTIONAL PUBLIC FINANCING PURSUANT TO
THIS TITLE.
9. THE TERM "CONTRIBUTION" SHALL HAVE THE SAME MEANING AS IN SUBDIVI-
SION NINE OF SECTION 14-100 OF THIS ARTICLE.
S 14-202. ELIGIBILITY. 1. TO BE ELIGIBLE FOR OPTIONAL PUBLIC FINANCING
UNDER THIS TITLE, A CANDIDATE FOR NOMINATION OR ELECTION MUST:
(A) MEET ALL THE REQUIREMENTS OF THIS CHAPTER AND OTHER PROVISIONS OF
LAW TO HAVE HIS OR HER NAME ON THE BALLOT;
(B) BE A CANDIDATE FOR STATE COMPTROLLER AT A PRIMARY OR GENERAL
ELECTION AND MEET THE THRESHOLD FOR ELIGIBILITY SET FORTH IN SUBDIVISION
TWO OF THIS SECTION;
(C) ELECT TO PARTICIPATE IN THE PUBLIC FINANCING SYSTEM ESTABLISHED BY
THIS TITLE NOT LATER THAN SEVEN DAYS AFTER THE LAST DAY TO FILE DESIG-
NATING PETITIONS FOR THE OFFICE SUCH CANDIDATE IS SEEKING;
(D) AGREE TO OBTAIN AND FURNISH TO THE STATE BOARD ANY EVIDENCE IT MAY
REASONABLY REQUEST RELATING TO HIS OR HER CAMPAIGN EXPENDITURES OR
CONTRIBUTIONS AND FURNISH SUCH OTHER PROOF OF COMPLIANCE WITH THIS TITLE
AS MAY BE REQUESTED BY THE STATE BOARD;
(E) HAVE A SINGLE AUTHORIZED POLITICAL COMMITTEE WHICH HE OR SHE
CERTIFIES AS THE PARTICIPATING COMMITTEE FOR THE PURPOSES OF THIS TITLE;
AND
(F) AGREE TO IDENTIFY ACCURATELY IN ALL CAMPAIGN MATERIALS THE PERSON
OR ENTITY THAT PAID FOR SUCH CAMPAIGN MATERIAL.
2. THE THRESHOLD FOR ELIGIBILITY FOR PUBLIC FUNDING FOR STATE COMP-
TROLLER CANDIDATES IN A PRIMARY OR GENERAL ELECTION SHALL BE NOT LESS
THAN THREE HUNDRED THOUSAND DOLLARS FROM AT LEAST THREE THOUSAND MATCHA-
BLE CONTRIBUTIONS MADE UP OF SUMS OF UP TO TWO HUNDRED FIFTY DOLLARS PER
INDIVIDUAL CONTRIBUTOR WHO RESIDES IN NEW YORK STATE.
3. IN ORDER TO BE ELIGIBLE TO RECEIVE PUBLIC FUNDS IN A PRIMARY
ELECTION A CANDIDATE MUST AGREE, THAT IN THE EVENT SUCH CANDIDATE IS A
CANDIDATE FOR SUCH OFFICE IN THE GENERAL ELECTION IN SUCH YEAR, THAT
SUCH CANDIDATE WILL BE BOUND BY THE PROVISIONS OF THIS TITLE, INCLUDING,
BUT NOT LIMITED TO, THE RECEIPT AND EXPENDITURE LIMITS OF THIS TITLE.
4. CANDIDATES WHO ARE CONTESTED IN A PRIMARY ELECTION AND WHO DO NOT
SEEK PUBLIC FUNDS SHALL NOT BE ELIGIBLE FOR PUBLIC FUNDS FOR THE GENERAL
ELECTION IN THAT YEAR.
5. CANDIDATES WHO ARE UNOPPOSED IN A GENERAL ELECTION SHALL NOT BE
ELIGIBLE TO RECEIVE PUBLIC FUNDS.
6. NO CANDIDATE FOR ELECTION TO THE OFFICE OF STATE COMPTROLLER IN A
PRIMARY OR GENERAL ELECTION WHO HAS ELECTED TO PARTICIPATE IN THE PUBLIC
FINANCING SYSTEM SHALL BE DEEMED OPPOSED AND RECEIVE PUBLIC FUNDS UNLESS
AT LEAST ONE OTHER CANDIDATE FOR SUCH OFFICE IN SUCH ELECTION WHO ALSO
ELECTED TO PARTICIPATE IN THE PUBLIC FINANCING SYSTEM, OR SUCH CANDI-
DATE'S COMMITTEE, OR AT LEAST ONE OTHER CANDIDATE FOR SUCH OFFICE IN
SUCH ELECTION WHO HAS NOT ELECTED TO PARTICIPATE, OR SUCH CANDIDATE'S
COMMITTEE, HAVE EITHER SPENT, CONTRACTED OR OBLIGATED TO SPEND, OR HAVE
CONTRIBUTED SUCH CANDIDATE'S PERSONAL FUNDS TO SUCH CANDIDATE'S COMMIT-
A. 9029 10
TEE OR HAVE RECEIVED IN LOANS OR CONTRIBUTIONS, AN AMOUNT EXCEEDING TEN
PERCENT OF THE EXPENDITURE LIMIT FOR SUCH OFFICE IN SUCH ELECTION WHICH
IS FIXED BY THIS TITLE FOR CANDIDATES WHO HAVE ELECTED TO ACCEPT SUCH
PUBLIC FUNDS. IF ANY CANDIDATE FOR SUCH OFFICE AND THE COMMITTEE OF SUCH
CANDIDATE REACHES THE THRESHOLD TO QUALIFY TO RECEIVE PUBLIC FUNDS, OR
SPENDS, CONTRACTS OR OBLIGATES TO SPEND, OR CONTRIBUTES SUCH CANDIDATE'S
PERSONAL FUNDS TO SUCH CANDIDATE'S COMMITTEE OR RECEIVES IN LOANS OR
CONTRIBUTIONS, AN AMOUNT EXCEEDING TEN PERCENT OF THE EXPENDITURE LIMIT
FOR SUCH OFFICE IN SUCH ELECTION AT ANY TIME AFTER THE FILING DEADLINE
FOR THE LAST REPORT REQUIRED TO BE FILED BEFORE THE FIRST DISTRIBUTION
OF PUBLIC FUNDS FOR SUCH ELECTION, SUCH CANDIDATE OR COMMITTEE MUST
NOTIFY THE STATE BOARD OF THAT FACT WITHIN TWENTY-FOUR HOURS IN THE SAME
MANNER AS PROVIDED IN SUBDIVISION TWO OF SECTION 14-108 OF THIS ARTICLE.
S 14-204. QUALIFIED CAMPAIGN EXPENDITURES. 1. PUBLIC FUNDS PROVIDED
UNDER THE PROVISIONS OF THIS TITLE MAY ONLY BE USED FOR EXPENDITURES BY
THE PARTICIPATING COMMITTEE AUTHORIZED BY THE CANDIDATE TO MAKE EXPENDI-
TURES ON SUCH CANDIDATE'S BEHALF, TO FURTHER THE CANDIDATE'S NOMINATION
OR ELECTION AFTER JANUARY FIRST OF THE YEAR IN WHICH THE PRIMARY OR
GENERAL ELECTION IS HELD FOR THE OFFICE SOUGHT, FOR SERVICES, MATERIALS,
FACILITIES OR OTHER THINGS OF VALUE USED DURING THAT CAMPAIGN CYCLE.
THE TOTAL OF ALL EXPENDITURES MADE BY THE CANDIDATE AND SUCH CANDIDATE'S
PARTICIPATING COMMITTEE, INCLUDING ALL PAYMENTS RECEIVED FROM THE FUND,
SHALL NOT EXCEED THE EXPENDITURE LIMITATIONS ESTABLISHED IN SECTION
14-210 OF THIS TITLE, EXCEPT INSOFAR AS SUCH PAYMENTS ARE MADE TO REPAY
LOANS USED TO PAY CAMPAIGN EXPENDITURES.
2. SUCH PUBLIC FUNDS MAY NOT BE USED FOR:
(A) AN EXPENDITURE IN VIOLATION OF ANY LAW OF THE UNITED STATES OR OF
THIS STATE;
(B) PAYMENTS OR ANYTHING OF VALUE GIVEN OR MADE TO THE CANDIDATE, A
RELATIVE OF THE CANDIDATE, OR TO A BUSINESS ENTITY IN WHICH ANY SUCH
PERSON HAS A TEN PERCENT OR GREATER OWNERSHIP INTEREST OR OF WHICH ANY
SUCH PERSON 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) ANY EXPENDITURE MADE AFTER THE PARTICIPATING CANDIDATE, OR THE
ONLY REMAINING OPPONENT OF SUCH CANDIDATE, HAS BEEN DISQUALIFIED OR HAD
SUCH CANDIDATE'S PETITIONS DECLARED INVALID BY A BOARD OF ELECTIONS OR A
COURT OF COMPETENT JURISDICTION UNTIL AND UNLESS SUCH FINDING IS
REVERSED BY A HIGHER AUTHORITY.
(E) ANY EXPENDITURE MADE TO CHALLENGE THE VALIDITY OF ANY PETITION OF
DESIGNATION OR NOMINATION OR ANY CERTIFICATE OF NOMINATION, ACCEPTANCE,
AUTHORIZATION, DECLINATION OR SUBSTITUTION;
(F) EXPENDITURE FOR NONCAMPAIGN RELATED FOOD, DRINK OR ENTERTAINMENT;
AND
(G) GIFTS, EXCEPT BROCHURES, BUTTONS, SIGNS AND OTHER CAMPAIGN MATERI-
AL.
S 14-206. OPTIONAL PUBLIC FINANCING. 1. PARTICIPATING CANDIDATES FOR
NOMINATION OR ELECTION IN A PRIMARY OR GENERAL ELECTION MAY OBTAIN
PAYMENT TO A PARTICIPATING COMMITTEE FROM PUBLIC FUNDS FOR QUALIFIED
CAMPAIGN EXPENDITURES. NO SUCH PUBLIC FUNDS SHALL BE PAID TO A PARTIC-
IPATING COMMITTEE UNTIL THE CANDIDATE HAS QUALIFIED TO APPEAR ON THE
BALLOT AND FILED A SWORN STATEMENT WITH THE STATE BOARD ELECTING TO
PARTICIPATE IN THE OPTIONAL PUBLIC FINANCING SYSTEM AND AGREEING TO
ABIDE BY THE REQUIREMENTS OF THIS TITLE. PAYMENTS SHALL NOT EXCEED THE
AMOUNTS SPECIFIED IN THIS TITLE, AND SHALL BE MADE ONLY IN ACCORDANCE
WITH THE PROVISIONS OF THIS TITLE. SUCH PAYMENTS MAY ONLY BE MADE TO A
A. 9029 11
PARTICIPATING CANDIDATE'S PARTICIPATING COMMITTEE. NO PUBLIC FUNDS SHALL
BE USED EXCEPT AS REIMBURSEMENT OR PAYMENT FOR QUALIFIED CAMPAIGN
EXPENDITURES ACTUALLY AND LAWFULLY INCURRED OR TO REPAY LOANS USED TO
PAY QUALIFIED CAMPAIGN EXPENDITURES.
2. THE PARTICIPATING COMMITTEE OF EACH PARTICIPATING CANDIDATE SHALL
BE ENTITLED TO FOUR DOLLARS IN PUBLIC FUNDS FOR EACH ONE DOLLAR OF
MATCHABLE CONTRIBUTIONS OBTAINED AND REPORTED TO THE STATE BOARD IN
ACCORDANCE WITH THE PROVISIONS OF THIS TITLE, PROVIDED, HOWEVER, SUCH
PUBLIC FUNDS SHALL ONLY BE USED FOR QUALIFIED CAMPAIGN EXPENDITURES.
3. (A) HOWEVER, IF ANY CANDIDATE IN ANY ELECTION FOR AN OFFICE FOR
WHICH PUBLIC FUNDS ARE AVAILABLE PURSUANT TO THE PROVISIONS OF THIS
TITLE, ELECTS NOT TO ACCEPT PUBLIC FUNDS AND SUCH CANDIDATE OR SUCH
CANDIDATE'S COMMITTEE EITHER SPENDS, CONTRACTS OR OBLIGATES TO SPEND, OR
CONTRIBUTES SUCH CANDIDATE'S PERSONAL FUNDS TO SUCH CANDIDATE'S COMMIT-
TEE OR RECEIVES IN LOANS OR CONTRIBUTIONS, AN AMOUNT EXCEEDING THE
EXPENDITURE LIMIT FOR SUCH OFFICE, AS FIXED BY THIS TITLE FOR CANDIDATES
WHO HAVE ELECTED TO ACCEPT PUBLIC FUNDS, THEN (I) SUCH CANDIDATE OR
COMMITTEE MUST NOTIFY THE STATE BOARD OF THE FACT WITHIN TWENTY-FOUR
HOURS VIA THE INTERNET USING THE ELECTRONIC FILING SYSTEM ESTABLISHED BY
THE STATE BOARD, OR IF SUCH CANDIDATE DOES NOT FILE ELECTRONICALLY VIA
THE INTERNET, BY FACSIMILE OR OVERNIGHT MAIL; AND (II) THE PARTICIPATING
COMMITTEE OF EACH PARTICIPATING CANDIDATE FOR SUCH OFFICE SHALL BE ENTI-
TLED TO A GRANT OF PUBLIC FUNDS EQUAL TO TWENTY-FIVE PERCENT OF THE
TOTAL AMOUNT OF PUBLIC FUNDS RECEIVED BY THE PARTICIPATING CANDIDATE FOR
MATCHABLE CONTRIBUTIONS OBTAINED AND REPORTED TO THE STATE BOARD. SUCH
GRANT SHALL BE PAID WITHIN TWO BUSINESS DAYS AND SHALL ONLY BE USED FOR
QUALIFIED CAMPAIGN EXPENDITURES.
(B) HOWEVER, IF ANY CANDIDATE IN ANY ELECTION FOR AN OFFICE FOR WHICH
PUBLIC FUNDS ARE AVAILABLE PURSUANT TO THE PROVISIONS OF THIS TITLE,
ELECTS NOT TO ACCEPT PUBLIC FUNDS AND SUCH CANDIDATE OR SUCH CANDIDATE'S
COMMITTEE EITHER SPENDS, CONTRACTS OR OBLIGATES TO SPEND, OR CONTRIBUTES
SUCH CANDIDATE'S PERSONAL FUNDS TO SUCH CANDIDATE'S COMMITTEE OR
RECEIVES IN LOANS OR CONTRIBUTIONS, AN AMOUNT EXCEEDING THE TOTAL OF THE
EXPENDITURE LIMIT FOR SUCH OFFICE, AS FIXED BY THIS TITLE FOR CANDIDATES
WHO HAVE ELECTED TO ACCEPT PUBLIC FUNDS, PLUS THE TWENTY-FIVE PERCENT
GRANT ALREADY RECEIVED BY THE PARTICIPATING CANDIDATE, THEN (I) SUCH
CANDIDATE OR COMMITTEE MUST NOTIFY THE STATE BOARD OF THE FACT WITHIN
TWENTY-FOUR HOURS VIA THE INTERNET USING THE ELECTRONIC FILING SYSTEM
ESTABLISHED BY THE STATE BOARD, OR IF SUCH CANDIDATE DOES NOT FILE ELEC-
TRONICALLY VIA THE INTERNET, BY FACSIMILE OR OVERNIGHT MAIL; AND (II)
THE PARTICIPATING COMMITTEE OF EACH PARTICIPATING CANDIDATE FOR SUCH
OFFICE SHALL BE ENTITLED TO AN ADDITIONAL GRANT OF PUBLIC FUNDS EQUAL TO
TWENTY-FIVE PERCENT OF THE TOTAL AMOUNT OF PUBLIC FUNDS RECEIVED BY THE
PARTICIPATING CANDIDATE FOR MATCHABLE CONTRIBUTIONS OBTAINED AND
REPORTED TO THE STATE BOARD. SUCH GRANT SHALL BE PAID WITHIN TWO BUSI-
NESS DAYS AND SHALL ONLY BE USED FOR QUALIFIED CAMPAIGN EXPENDITURES.
(C) HOWEVER, IF ANY CANDIDATE IN ANY ELECTION FOR AN OFFICE FOR WHICH
PUBLIC FUNDS ARE AVAILABLE PURSUANT TO THE PROVISIONS OF THIS TITLE,
ELECTS NOT TO ACCEPT PUBLIC FUNDS AND SUCH CANDIDATE OR SUCH CANDIDATE'S
COMMITTEE EITHER SPENDS, CONTRACTS OR OBLIGATES TO SPEND, OR CONTRIBUTES
SUCH CANDIDATE'S PERSONAL FUNDS TO SUCH CANDIDATE'S COMMITTEE OR
RECEIVES IN LOANS OR CONTRIBUTIONS, AN AMOUNT EXCEEDING THE TOTAL OF THE
EXPENDITURE LIMIT FOR SUCH OFFICE, AS FIXED BY THIS TITLE FOR CANDIDATES
WHO HAVE ELECTED TO ACCEPT PUBLIC FUNDS, PLUS THE FIFTY PERCENT TOTAL
AGGREGATE GRANT ALREADY RECEIVED BY THE PARTICIPATING CANDIDATE, THEN
(I) SUCH CANDIDATE OR COMMITTEE MUST NOTIFY THE STATE BOARD OF THE FACT
A. 9029 12
WITHIN TWENTY-FOUR HOURS VIA THE INTERNET USING THE ELECTRONIC FILING
SYSTEM ESTABLISHED BY THE STATE BOARD, OR IF SUCH CANDIDATE DOES NOT
FILE ELECTRONICALLY VIA THE INTERNET, BY FACSIMILE OR OVERNIGHT MAIL;
AND (II) THE PARTICIPATING COMMITTEE OF EACH PARTICIPATING CANDIDATE FOR
SUCH OFFICE SHALL BE ENTITLED TO AN ADDITIONAL GRANT OF PUBLIC FUNDS
EQUAL TO TWENTY-FIVE PERCENT OF THE TOTAL AMOUNT OF PUBLIC FUNDS
RECEIVED BY THE PARTICIPATING CANDIDATE FOR MATCHABLE CONTRIBUTIONS
OBTAINED AND REPORTED TO THE STATE BOARD. SUCH GRANT SHALL BE PAID WITH-
IN TWO BUSINESS DAYS AND SHALL ONLY BE USED FOR QUALIFIED CAMPAIGN
EXPENDITURES.
(D) HOWEVER, IF ANY CANDIDATE IN ANY ELECTION FOR AN OFFICE FOR WHICH
PUBLIC FUNDS ARE AVAILABLE PURSUANT TO THE PROVISIONS OF THIS TITLE,
ELECTS NOT TO ACCEPT PUBLIC FUNDS AND SUCH CANDIDATE OR SUCH CANDIDATE'S
COMMITTEE EITHER SPENDS, CONTRACTS OR OBLIGATES TO SPEND, OR CONTRIBUTES
SUCH CANDIDATE'S PERSONAL FUNDS TO SUCH CANDIDATE'S COMMITTEE OR
RECEIVES IN LOANS OR CONTRIBUTIONS, AN AMOUNT EXCEEDING THE TOTAL OF THE
EXPENDITURE LIMIT FOR SUCH OFFICE, AS FIXED BY THIS TITLE FOR CANDIDATES
WHO HAVE ELECTED TO ACCEPT PUBLIC FUNDS, PLUS THE SEVENTY-FIVE PERCENT
TOTAL AGGREGATE GRANT ALREADY RECEIVED BY THE PARTICIPATING CANDIDATE,
THEN (I) SUCH CANDIDATE OR COMMITTEE MUST NOTIFY THE STATE BOARD OF THE
FACT WITHIN TWENTY-FOUR HOURS VIA THE INTERNET USING THE ELECTRONIC
FILING SYSTEM ESTABLISHED BY THE STATE BOARD, OR IF SUCH CANDIDATE DOES
NOT FILE ELECTRONICALLY VIA THE INTERNET, BY FACSIMILE OR OVERNIGHT
MAIL; AND (II) THE PARTICIPATING COMMITTEE OF EACH PARTICIPATING CANDI-
DATE FOR SUCH OFFICE SHALL BE ENTITLED TO AN ADDITIONAL GRANT OF PUBLIC
FUNDS EQUAL TO TWENTY-FIVE PERCENT OF THE TOTAL AMOUNT OF PUBLIC FUNDS
RECEIVED BY THE PARTICIPATING CANDIDATE FOR MATCHABLE CONTRIBUTIONS
OBTAINED AND REPORTED TO THE STATE BOARD. SUCH GRANT SHALL BE PAID WITH-
IN TWO BUSINESS DAYS AND MAY ONLY BE USED FOR QUALIFIED CAMPAIGN EXPEND-
ITURES.
4. (A) NO PARTICIPATING CANDIDATE FOR NOMINATION FOR AN OFFICE WHO IS
UNOPPOSED IN A PRIMARY ELECTION SHALL BE ENTITLED TO PAYMENT FROM THE
FUND FOR QUALIFIED CAMPAIGN EXPENDITURES.
(B) WHERE THERE IS A CONTEST IN SUCH PRIMARY FOR THE NOMINATION OF AT
LEAST ONE OTHER PARTY FOR SUCH OFFICE, THE PARTICIPATING COMMITTEE OF AN
UNOPPOSED PARTICIPATING CANDIDATE FOR NOMINATION MAY RAISE AND SPEND AN
AMOUNT EQUAL TO ONE-HALF THE EXPENDITURE LIMIT FOR SUCH OFFICE, AS FIXED
BY THIS TITLE FOR CANDIDATES WHO HAVE ELECTED TO ACCEPT PUBLIC FUNDS,
WITH CONTRIBUTIONS OF UP TO TWO THOUSAND DOLLARS PER CONTRIBUTOR. SUCH
PAYMENT CAN ONLY BE EXPENDED FOR PROPERTY, SERVICES OR FACILITIES USED
ON OR BEFORE THE DATE OF SUCH PRIMARY ELECTION.
5. THE STATE BOARD SHALL PROMPTLY EXAMINE ALL REPORTS OF CONTRIBUTIONS
TO DETERMINE WHETHER, ON THEIR FACE, THEY MEET THE REQUIREMENTS FOR
MATCHABLE CONTRIBUTIONS, AND SHALL KEEP A RECORD OF SUCH CONTRIBUTIONS.
6. THE STATE BOARD SHALL PROMULGATE REGULATIONS FOR THE CERTIFICATION
OF THE AMOUNT OF FUNDS PAYABLE BY THE COMPTROLLER, FROM THE FUND ESTAB-
LISHED PURSUANT TO SECTION NINETY-TWO-T OF THE STATE FINANCE LAW, TO A
PARTICIPATING CANDIDATE THAT HAS QUALIFIED TO RECEIVE SUCH PAYMENT.
THESE REGULATIONS SHALL INCLUDE THE PROMULGATION AND DISTRIBUTION OF
FORMS ON WHICH CONTRIBUTIONS AND EXPENDITURES ARE TO BE REPORTED, THE
PERIODS DURING WHICH SUCH REPORTS MUST BE FILED AND THE VERIFICATION
REQUIRED. THE STATE BOARD SHALL INSTITUTE PROCEDURES WHICH WILL MAKE
POSSIBLE PAYMENT BY THE FUND WITHIN FOUR BUSINESS DAYS AFTER RECEIPT OF
THE REQUIRED FORMS AND VERIFICATIONS.
S 14-208. CONTRIBUTION AND RECEIPT LIMITATIONS. 1. IN ANY PRIMARY OR
GENERAL ELECTION FOR THE OFFICE OF STATE COMPTROLLER, NO CONTRIBUTOR MAY
A. 9029 13
MAKE A CONTRIBUTION TO ANY PARTICIPATING CANDIDATE OR SUCH CANDIDATE'S
PARTICIPATING COMMITTEE, AND NO PARTICIPATING CANDIDATE OR PARTICIPATING
COMMITTEE MAY ACCEPT ANY CONTRIBUTION FROM ANY CONTRIBUTOR WHICH, IN THE
AGGREGATE AMOUNT, IS GREATER THAN TWO THOUSAND DOLLARS.
2. (A) NOTWITHSTANDING THE EXPENDITURE LIMIT FOR SUCH OFFICE AS FIXED
BY THIS TITLE FOR CANDIDATES WHO HAVE ELECTED TO ACCEPT PUBLIC FUNDS, A
PARTICIPATING CANDIDATE FOR STATE COMPTROLLER IN A PRIMARY OR GENERAL
ELECTION OR SUCH CANDIDATE'S PARTICIPATING COMMITTEE MAY ACCEPT FROM A
STATE PARTY COMMITTEE WHICH HAS NOMINATED SUCH CANDIDATE SERVICES IN AN
AMOUNT WHICH, IN THE AGGREGATE, DOES NOT EXCEED ONE MILLION DOLLARS;
PROVIDED, HOWEVER, THAT TWENTY-FIVE PERCENT OF SUCH AMOUNT MAY BE
ACCEPTED IN THE FORM OF A TRANSFER.
(B) FOR PURPOSES OF THIS SUBDIVISION, THE TERM STATE PARTY COMMITTEE
INCLUDES ANY OF ITS SUBCOMMITTEES.
3. NOTWITHSTANDING ANY EXPENDITURE LIMIT IN THIS SUBDIVISION, EACH
COUNTY COMMITTEE OF ANY PARTY WHICH NOMINATES A CANDIDATE FOR STATE
COMPTROLLER, INCLUDING WITHIN THE TERM COUNTY COMMITTEE ANY OF ITS
SUBCOMMITTEES, MAY EXPEND IN SUPPORT OF EACH SUCH CANDIDATE OF SUCH
PARTY WHO HAS AGREED TO ACCEPT PUBLIC FINANCING, AN AMOUNT WHICH SHALL
NOT EXCEED THE SUM OF TWO CENTS FOR EACH VOTER REGISTERED IN SUCH COUNTY
AS DETERMINED BY THE RECORDS OF THE APPROPRIATE BOARD OF ELECTIONS AS OF
THE PRECEDING GENERAL ELECTION.
4. IN COMPUTING THE AGGREGATE AMOUNT EXPENDED FOR PURPOSES OF THIS
SECTION, EXPENDITURES MADE BY A STATE PARTY COMMITTEE OR A COUNTY
COMMITTEE IN SUPPORT OF MORE THAN ONE CANDIDATE SHALL BE ALLOCATED AMONG
SUCH CANDIDATES SUPPORTED BY THE COMMITTEE IN ACCORDANCE WITH FORMULAS
PROMULGATED BY THE STATE BOARD OR, IN THE ABSENCE OF SUCH OFFICIAL
FORMULAS, IN ACCORDANCE WITH A FORMULA BASED UPON REASONABLE STANDARDS.
THE STATEMENTS FILED BY SUCH PARTY COMMITTEE IN ACCORDANCE WITH THIS
CHAPTER SHALL SET FORTH, IN ADDITION TO THE OTHER INFORMATION REQUIRED,
THE TOTAL AMOUNT EXPENDED BY THE PARTY COMMITTEE ON BEHALF OF ALL SUCH
CANDIDATES AND THE AMOUNT ALLOCATED TO EACH CANDIDATE BY DOLLAR AMOUNT
AND PERCENTAGE. EXPENDITURES BY A PARTY FOR ACTIVITIES WHICH DO NOT
SUPPORT OR OPPOSE THE ELECTION OF ANY CANDIDATE OR CANDIDATES BY NAME OR
BY CLEAR INFERENCE SHALL NOT BE REGARDED AS EXPENDITURES ON BEHALF OF OR
IN OPPOSITION TO A CANDIDATE.
5. A PARTICIPATING CANDIDATE FOR A PUBLIC OFFICE FOR WHICH PUBLIC
FUNDS ARE AVAILABLE PURSUANT TO THIS TITLE SHALL NOT ACCEPT ANY CONTRIB-
UTIONS ANY EARLIER THAN ONE DAY AFTER THE PREVIOUS GENERAL ELECTION FOR
THE OFFICE WHICH SUCH CANDIDATE IS SEEKING, OR ANY LATER THAN THE DAY OF
THE GENERAL ELECTION FOR THE OFFICE SOUGHT, EXCEPT THAT A PARTICIPATING
CANDIDATE OR PARTICIPATING COMMITTEE WHICH HAS A DEFICIT ON THE DAY OF
THE GENERAL ELECTION MAY, AFTER SUCH DATE, ACCEPT CONTRIBUTIONS WHICH DO
NOT EXCEED THE AMOUNT OF SUCH DEFICIT AND THE EXPENSES INCURRED IN RAIS-
ING SUCH CONTRIBUTIONS OR THE EXPENDITURE LIMIT FOR SUCH OFFICE AS FIXED
BY THIS TITLE FOR CANDIDATES WHO HAVE ELECTED TO ACCEPT PUBLIC FUNDS.
CONTRIBUTIONS TO A PARTICIPATING CANDIDATE OR PARTICIPATING COMMITTEE
WHICH WERE RECEIVED BEFORE JANUARY FIRST OF THE YEAR IN WHICH THE PRIMA-
RY OR GENERAL ELECTION IS HELD FOR THE PUBLIC OFFICE SOUGHT, MAY NOT BE
EXPENDED DURING THE YEAR IN WHICH THE ELECTION FOR SUCH OFFICE IS HELD.
6. EXCEPT FOR THE LIMITATIONS SPECIFICALLY SET FORTH IN THIS SECTION,
PARTICIPATING CANDIDATES SHALL BE SUBJECT TO THE PROVISIONS OF THIS
ARTICLE.
S 14-210. EXPENDITURE LIMITATIONS. THE FOLLOWING EXPENDITURE LIMITA-
TIONS APPLY TO ALL EXPENDITURES BY PARTICIPATING CANDIDATES AND THEIR
A. 9029 14
PARTICIPATING COMMITTEES RECEIVING PUBLIC FUNDS PURSUANT TO THE
PROVISIONS OF THIS TITLE:
1. (A) IN ANY PRIMARY ELECTION, EXPENDITURES BY PARTICIPATING CANDI-
DATES FOR STATE COMPTROLLER AND BY THEIR PARTICIPATING COMMITTEES SHALL
NOT EXCEED THE SUM OF ONE DOLLAR AND TEN CENTS FOR EACH VOTER ENROLLED
IN THE CANDIDATE'S PARTY IN THE STATE; PROVIDED, HOWEVER, SUCH SUM SHALL
NOT BE LESS THAN SIX HUNDRED THOUSAND DOLLARS NOR MORE THAN SIX MILLION
DOLLARS;
(B) THE ENROLLMENT NUMBERS USED TO CALCULATE THE EXPENDITURE LIMITS
PROVIDED FOR IN THIS SUBDIVISION SHALL BE THE ENROLLMENTS DULY REPORTED
BY THE APPROPRIATE BOARD OR BOARDS OF ELECTION AS OF THE LAST GENERAL
ELECTION PRECEDING THE PRIMARY ELECTION.
2. IN ANY GENERAL ELECTION, EXPENDITURES BY PARTICIPATING CANDIDATES
FOR STATE COMPTROLLER AND BY THEIR PARTICIPATING COMMITTEES SHALL NOT
EXCEED EIGHT MILLION DOLLARS.
3. PARTICIPATING CANDIDATES FOR OFFICE WHO ARE UNOPPOSED IN THE PRIMA-
RY ELECTION MAY EXPEND BEFORE THE PRIMARY ELECTION, FOR SERVICES, MATE-
RIALS OR FACILITIES USED ON OR BEFORE THE DATE OF SUCH PRIMARY ELECTION,
AN AMOUNT EQUAL TO HALF THE SUM SUCH CANDIDATES WOULD BE ENTITLED TO
SPEND IF THEIR NOMINATION WAS CONTESTED IN SUCH PRIMARY ELECTION
PROVIDED THERE IS A PRIMARY CONTEST FOR THE NOMINATION OF AT LEAST ONE
OTHER PARTY FOR SUCH OFFICE.
4. EXPENDITURES FOR LEGAL FEES AND REASONABLE EXPENSES TO DEFEND THE
VALIDITY OF PETITIONS OF DESIGNATION OR NOMINATION OR CERTIFICATES OF
NOMINATION, ACCEPTANCE, AUTHORIZATION, DECLINATION OR SUBSTITUTION, OR
TO SUCCESSFULLY CHALLENGE ANY SUCH PETITION OR CERTIFICATE ON GROUNDS OF
FRAUD, OR FOR EXPENSES INCURRED TO COMPLY WITH THE CAMPAIGN FINANCE
REPORTING REQUIREMENTS OF THIS ARTICLE, SHALL NOT BE SUBJECT TO THE
EXPENDITURE LIMITS OF THIS SUBDIVISION.
S 14-212. EXAMINATIONS AND AUDITS; REPAYMENTS. 1. THE STATE BOARD
SHALL CONDUCT A THOROUGH EXAMINATION AND AUDIT OF THE CONTRIBUTIONS AND
QUALIFIED CAMPAIGN EXPENSES OF THE PARTICIPATING COMMITTEE OF EVERY
PARTICIPATING CANDIDATE WHO RECEIVED PAYMENTS PURSUANT TO SECTION 14-206
OF THIS TITLE.
2. (A) IF THE STATE BOARD DETERMINES THAT ANY PORTION OF THE PAYMENT
MADE TO A PARTICIPATING COMMITTEE FROM THE FUND WAS IN EXCESS OF THE
AGGREGATE AMOUNT OF PAYMENTS TO WHICH SUCH ELIGIBLE CANDIDATE WAS ENTI-
TLED PURSUANT TO SECTION 14-206 OF THIS TITLE, IT SHALL NOTIFY SUCH
COMMITTEE OF THE EXCESS AMOUNT AND SUCH COMMITTEE SHALL PAY TO THE STATE
BOARD AN AMOUNT EQUAL TO THE AMOUNT OF EXCESS PAYMENTS.
(B) IF THE STATE BOARD DETERMINES THAT ANY AMOUNT OF PAYMENT MADE TO A
PARTICIPATING COMMITTEE FROM THE FUND WAS USED FOR PURPOSES OTHER THAN
TO DEFRAY QUALIFIED CAMPAIGN EXPENSES, IT SHALL NOTIFY SUCH PARTICIPAT-
ING COMMITTEE OF THE AMOUNT DISQUALIFIED AND SUCH PARTICIPATING COMMIT-
TEE SHALL PAY TO THE STATE BOARD AN AMOUNT EQUAL TO SUCH DISQUALIFIED
AMOUNT.
(C) IF THE TOTAL OF CONTRIBUTIONS AND PAYMENTS FROM THE FUND RECEIVED
BY ANY PARTICIPATING CANDIDATE AND SUCH CANDIDATE'S PARTICIPATING
COMMITTEE, EXCEEDS THE CAMPAIGN EXPENDITURES OF SUCH CANDIDATE AND
COMMITTEE, SUCH CANDIDATE AND COMMITTEE SHALL USE SUCH EXCESS FUNDS TO
REIMBURSE THE FUND FOR PAYMENTS RECEIVED BY SUCH COMMITTEE FROM THE FUND
NOT LATER THAN TEN DAYS AFTER ALL PERMISSIBLE LIABILITIES HAVE BEEN PAID
AND IN ANY EVENT, NOT LATER THAN MARCH THIRTY-FIRST OF THE YEAR FOLLOW-
ING THE YEAR OF THE ELECTION FOR WHICH SUCH PAYMENTS WERE INTENDED. NO
SUCH EXCESS FUNDS SHALL BE USED FOR ANY OTHER PURPOSE.
A. 9029 15
3. IF A COURT OF COMPETENT JURISDICTION DISQUALIFIES A CANDIDATE WHOSE
PARTICIPATING COMMITTEE HAS RECEIVED PUBLIC FUNDS ON THE GROUNDS THAT
SUCH CANDIDATE COMMITTED FRAUDULENT ACTS IN ORDER TO OBTAIN A PLACE ON
THE BALLOT AND SUCH DECISION IS NOT REVERSED BY A HIGHER COURT, SUCH
CANDIDATE AND SUCH CANDIDATE'S PARTICIPATING COMMITTEE SHALL PAY TO THE
STATE BOARD AN AMOUNT EQUAL TO THE TOTAL OF PUBLIC FUNDS RECEIVED BY
SUCH PARTICIPATING COMMITTEE.
4. THE STATE BOARD MUST PROVIDE WRITTEN NOTICE OF ALL PAYMENTS DUE
FROM A PARTICIPATING CANDIDATE OR SUCH CANDIDATE'S COMMITTEE TO THE
STATE BOARD AND PROVIDE AN OPPORTUNITY FOR THE CANDIDATE OR COMMITTEE TO
REBUT, IN WHOLE OR IN PART, THE ALLEGED AMOUNT DUE. UPON A FINAL WRITTEN
DETERMINATION BY THE STATE BOARD, THE AMOUNT DUE SHALL BE PAID TO THE
STATE BOARD WITHIN THIRTY DAYS OF SUCH DETERMINATION.
5. ALL PAYMENTS RECEIVED BY THE STATE BOARD PURSUANT TO THIS SECTION
SHALL BE DEPOSITED IN THE NEW YORK STATE CAMPAIGN FINANCE FUND ESTAB-
LISHED BY SECTION NINETY-TWO-T OF THE STATE FINANCE LAW.
S 14-214. CIVIL PENALTIES. 1. ANY PERSON WHO FAILS TO FILE A STATEMENT
OR RECORD REQUIRED TO BE FILED BY THIS TITLE OR THE RULES OR REGULATIONS
OF THE STATE BOARD IN IMPLEMENTATION THEREOF SHALL BE SUBJECT TO A CIVIL
PENALTY, NOT IN EXCESS OF FIVE THOUSAND DOLLARS, TO BE RECOVERABLE IN A
SPECIAL PROCEEDING OR CIVIL ACTION BROUGHT BY THE STATE BOARD.
2. IF THE AGGREGATE AMOUNT OF EXPENDITURES BY A PARTICIPATING CANDI-
DATE AND SUCH CANDIDATE'S PARTICIPATING COMMITTEE EXCEEDS THE EXPENDI-
TURE LIMITATIONS CONTAINED IN THIS TITLE SUCH PARTICIPATING CANDIDATE
SHALL BE LIABLE FOR A CIVIL PENALTY IN AN AMOUNT EQUAL TO THREE TIMES
THE SUM BY WHICH SUCH EXPENDITURES EXCEED THE PERMITTED AMOUNT, TO BE
RECOVERABLE IN A SPECIAL PROCEEDING OR CIVIL ACTION BROUGHT BY THE STATE
BOARD.
3. ALL PAYMENTS RECEIVED BY THE STATE BOARD PURSUANT TO THIS SECTION
SHALL BE DEPOSITED IN THE NEW YORK STATE CAMPAIGN FINANCE FUND ESTAB-
LISHED BY SECTION NINETY-TWO-T OF THE STATE FINANCE LAW.
S 8. The election law is amended by adding a new section 16-103 to
read as follows:
S 16-103. PROCEEDINGS AS TO PUBLIC FINANCING. 1. THE DETERMINATION OF
ELIGIBILITY PURSUANT TO SECTION 14-202 OF THIS CHAPTER AND ANY QUESTION
OR ISSUE RELATING TO PAYMENTS FOR QUALIFIED CAMPAIGN EXPENDITURES PURSU-
ANT TO SECTION 14-206 OF THIS CHAPTER MAY BE CONTESTED IN A PROCEEDING
INSTITUTED IN THE SUPREME COURT, ALBANY COUNTY, BY ANY AGGRIEVED CANDI-
DATE.
2. A PROCEEDING WITH RESPECT TO SUCH A DETERMINATION OF ELIGIBILITY OR
PAYMENT FOR QUALIFIED CAMPAIGN EXPENDITURES PURSUANT TO SECTION 14-206
OF THIS CHAPTER SHALL BE INSTITUTED WITHIN SEVEN DAYS AFTER SUCH DETER-
MINATION WAS MADE. THE STATE BOARD SHALL BE MADE A PARTY TO ANY SUCH
PROCEEDING.
3. UPON THE STATE BOARD'S FAILURE TO RECEIVE THE AMOUNT DUE FROM A
PARTICIPATING CANDIDATE OR SUCH CANDIDATE'S COMMITTEE AFTER THE ISSUANCE
OF WRITTEN NOTICE OF SUCH AMOUNT DUE, AS REQUIRED BY SUBDIVISION FOUR OF
SECTION 14-212 OF THIS CHAPTER, THE STATE BOARD IS AUTHORIZED TO INSTI-
TUTE A SPECIAL PROCEEDING OR CIVIL ACTION IN SUPREME COURT, ALBANY COUN-
TY, TO OBTAIN A JUDGMENT FOR ANY AMOUNTS DETERMINED TO BE PAYABLE TO THE
STATE BOARD AS A RESULT OF AN EXAMINATION AND AUDIT MADE PURSUANT TO
TITLE II OF ARTICLE FOURTEEN OF THIS CHAPTER.
4. THE STATE BOARD IS AUTHORIZED TO INSTITUTE A SPECIAL PROCEEDING OR
CIVIL ACTION IN SUPREME COURT, ALBANY COUNTY, TO OBTAIN A JUDGMENT FOR
CIVIL PENALTIES DETERMINED TO BE PAYABLE TO THE STATE BOARD PURSUANT TO
SECTION 14-214 OF THIS CHAPTER.
A. 9029 16
S 9. The state finance law is amended by adding a new section 92-t to
read as follows:
S 92-T. NEW YORK STATE CAMPAIGN FINANCE FUND. 1. THERE IS HEREBY
ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN AS THE NEW YORK
STATE CAMPAIGN FINANCE FUND.
2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED FROM THE NEW YORK
STATE CAMPAIGN FINANCE FUND CHECK-OFF PURSUANT TO SUBSECTION (F) OF
SECTION SIX HUNDRED FIFTY-EIGHT OF THE TAX LAW, FROM THE GENERAL FUND,
AND FROM ALL OTHER MONEYS CREDITED OR TRANSFERRED THERETO FROM ANY OTHER
FUND OR SOURCE PURSUANT TO LAW.
3. MONEYS OF THE FUND, FOLLOWING APPROPRIATION BY THE LEGISLATURE, MAY
BE EXPENDED FOR THE PURPOSES OF MAKING PAYMENTS TO CANDIDATES PURSUANT
TO TITLE II OF ARTICLE FOURTEEN OF THE ELECTION LAW. MONEYS SHALL BE
PAID OUT OF THE FUND ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER
ON VOUCHERS CERTIFIED OR APPROVED BY THE STATE BOARD OF ELECTIONS, OR
ITS DULY DESIGNATED REPRESENTATIVE, IN THE MANNER PRESCRIBED BY LAW, NOT
MORE THAN FOUR WORKING DAYS AFTER SUCH VOUCHER IS RECEIVED BY THE STATE
COMPTROLLER.
4. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, IF, IN ANY
STATE FISCAL YEAR, THE STATE CAMPAIGN FINANCE FUND LACKS THE AMOUNT OF
MONEY TO PAY ALL CLAIMS VOUCHERED BY ELIGIBLE CANDIDATES AND CERTIFIED
OR APPROVED BY THE STATE BOARD OF ELECTIONS, ANY SUCH DEFICIENCY SHALL
BE PAID, UPON AUDIT AND WARRANT OF THE STATE COMPTROLLER, FROM FUNDS
DEPOSITED IN THE GENERAL FUND OF THE STATE NOT MORE THAN FOUR WORKING
DAYS AFTER SUCH VOUCHER IS RECEIVED BY THE STATE COMPTROLLER.
5. COMMENCING IN TWO THOUSAND FIFTEEN, IF THE SURPLUS IN THE FUND ON
APRIL FIRST OF THE YEAR AFTER A YEAR IN WHICH A GOVERNOR IS ELECTED
EXCEEDS TWENTY-FIVE PERCENT OF THE DISBURSEMENTS FROM THE FUND OVER THE
PREVIOUS FOUR YEARS, THE EXCESS SHALL REVERT TO THE GENERAL FUND OF THE
STATE.
6. NO PUBLIC FUNDS SHALL BE PAID TO ANY PARTICIPATING CANDIDATES IN A
PRIMARY ELECTION ANY EARLIER THAN THE DAY THAT SUCH CANDIDATE IS CERTI-
FIED AS BEING ON THE BALLOT FOR SUCH PRIMARY ELECTION.
7. NO PUBLIC FUNDS SHALL BE PAID TO ANY PARTICIPATING CANDIDATES IN A
GENERAL ELECTION ANY EARLIER THAN THE DAY AFTER THE DAY OF THE PRIMARY
ELECTION HELD TO NOMINATE CANDIDATES FOR SUCH ELECTION.
8. NO PUBLIC FUNDS SHALL BE PAID TO ANY PARTICIPATING CANDIDATE WHO
HAS BEEN DISQUALIFIED OR WHOSE DESIGNATING PETITIONS HAVE BEEN DECLARED
INVALID BY THE APPROPRIATE BOARD OF ELECTIONS OR A COURT OF COMPETENT
JURISDICTION UNTIL AND UNLESS SUCH FINDING IS REVERSED BY A HIGHER
AUTHORITY. NO PAYMENT FROM THE FUND IN THE POSSESSION OF SUCH A CANDI-
DATE OR SUCH CANDIDATE'S PARTICIPATING COMMITTEE ON THE DATE OF SUCH
DISQUALIFICATION OR INVALIDATION MAY THEREAFTER BE EXPENDED FOR ANY
PURPOSE EXCEPT THE PAYMENT OF LIABILITIES INCURRED BEFORE SUCH DATE. ALL
SUCH MONEYS SHALL BE REPAID TO THE FUND.
S 10. Section 658 of the tax law is amended by adding a new subsection
(f) to read as follows:
(F) NEW YORK STATE CAMPAIGN FINANCE FUND CHECK-OFF. (1) FOR EACH
TAXABLE YEAR BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND NINE,
EVERY INDIVIDUAL WHOSE NEW YORK STATE INCOME TAX LIABILITY FOR THE TAXA-
BLE YEAR FOR WHICH THE RETURN IS FILED IS FIVE DOLLARS OR MORE MAY
DESIGNATE ON SUCH RETURN THAT FIVE DOLLARS BE PAID INTO THE NEW YORK
STATE CAMPAIGN FINANCE FUND ESTABLISHED BY SECTION NINETY-TWO-T OF THE
STATE FINANCE LAW. WHERE A HUSBAND AND WIFE FILE A JOINT RETURN AND
HAVE A NEW YORK STATE INCOME TAX LIABILITY FOR THE TAXABLE YEAR FOR
A. 9029 17
WHICH THE RETURN IS FILED OF TEN DOLLARS OR MORE, OR FILE SEPARATE
RETURNS ON A SINGLE FORM, EACH SUCH TAXPAYER MAY MAKE SEPARATE DESIG-
NATIONS ON SUCH RETURN OF FIVE DOLLARS TO BE PAID INTO THE NEW YORK
STATE CAMPAIGN FINANCE FUND.
(2) THE COMMISSIONER SHALL TRANSFER TO THE NEW YORK STATE CAMPAIGN
FINANCE FUND, ESTABLISHED PURSUANT TO SECTION NINETY-TWO-T OF THE STATE
FINANCE LAW, AN AMOUNT EQUAL TO FIVE DOLLARS MULTIPLIED BY THE NUMBER OF
DESIGNATIONS.
(3) FOR PURPOSES OF THIS SUBSECTION, THE INCOME TAX LIABILITY OF AN
INDIVIDUAL FOR ANY TAXABLE YEAR IS THE AMOUNT OF TAX IMPOSED UNDER THIS
ARTICLE REDUCED BY THE SUM OF THE CREDITS (AS SHOWN IN HIS OR HER
RETURN) ALLOWABLE UNDER THIS ARTICLE.
(4) THE DEPARTMENT SHALL INCLUDE A PLACE ON EVERY PERSONAL INCOME TAX
RETURN FORM TO BE FILED BY AN INDIVIDUAL FOR A TAX YEAR BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND NINE, IMMEDIATELY ABOVE THE CERTIF-
ICATION UNDER WHICH THE TAXPAYER IS REQUIRED TO SIGN SUCH FORM, FOR SUCH
TAXPAYER TO MAKE THE DESIGNATIONS DESCRIBED IN PARAGRAPH ONE OF THIS
SUBSECTION. SUCH RETURN FORM SHALL CONTAIN A CONCISE EXPLANATION OF THE
PURPOSE OF SUCH OPTIONAL DESIGNATIONS.
S 11. Campaign finance review panel. 1. There is hereby created and
established the "campaign finance review panel". The panel shall consist
of the commissioner of taxation and finance, the director of the divi-
sion of the budget, the state comptroller and the four members of the
state board of elections. The commissioner of taxation and finance
shall be chairperson.
2. The panel is empowered and it shall be its duty to monitor and
review the implementation of the State Comptroller Campaign Finance
Reform Act. The panel shall report to the governor and the legislature
on March 31, 2011. The report shall include: (a) the number of candi-
dates qualifying and opting for public financing, the amounts expended
for this purpose in the preceding fiscal year and a projection of the
number of candidates likely to qualify and opt for public financing and
their expenditures in future elections; (b) an analysis of the effect of
the State Comptroller Campaign Finance Reform Act on political
campaigns, including its effect on the sources and amounts of private
financing, the level of campaign expenditures, voter participation, the
number of candidates and the candidate's ability to campaign effectively
for public office; (c) a review of the procedures utilized in providing
public funds to candidates; and (d) such recommended changes in the
State Comptroller Campaign Finance Reform Act as it deems appropriate.
S 12. Severability. If any clause, sentence, subdivision, paragraph,
section or part of title II of article 14 of the election law, as added
by section seven of this act be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair or
invalidate the remainder thereof, but shall be confined in its operation
to the clause, sentence, subdivision, paragraph, section or part thereof
directly involved in the controversy in which such judgment shall have
been rendered.
S 13. This act shall take effect immediately.
PART E
Section 1. The executive law is amended by adding a new section 41-d
to read as follows:
S 41-D. TRANSACTION REPORTING. THE STATE COMPTROLLER, WITHIN HIS OR
HER DISCRETION, AND IN CONSULTATION WITH THE SUPERINTENDENT OF INSUR-
A. 9029 18
ANCE, MAY ESTABLISH THE FREQUENCY FOR REPORTING INFORMATION RELATING TO
TRANSACTIONS OF THE COMMON RETIREMENT FUND INCLUDING, BUT NOT LIMITED
TO, INVESTMENT PERFORMANCE RESULTS, PROXY VOTING RECORDS, ASSET ALLO-
CATION, PERFORMANCE FIGURES, AND AN INTERIM PERFORMANCE STATEMENT. SUCH
FREQUENCY OF REPORTING MAY INCLUDE, BUT NOT BE LIMITED TO MONTHLY, QUAR-
TERLY, SEMI-ANNUALLY AND ANNUALLY. THE PUBLICATION OF ANY SUCH INFORMA-
TION SHALL BE MADE AVAILABLE UPON COMPTROLLER'S INTERNET WEBSITE.
S 2. This act shall take effect immediately.
PART F
Section 1. The retirement and social security law is amended by adding
a new section 424-a to read as follows:
S 424-A. VARIABLE INTEREST RATE BOND LIQUIDITY AND MONOLINE INSURER
INVESTMENT PROGRAM. 1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE
COMPTROLLER MAY, IN AN AMOUNT NOT TO EXCEED ONE BILLION DOLLARS FOR
VARIABLE INTEREST RATE BOND LIQUIDITY AND IN AN AMOUNT NOT TO EXCEED
FIVE HUNDRED MILLION DOLLARS FOR THE MONOLINE INSURER INVESTMENTS,
SUBJECT TO AND CONSISTENT WITH HIS OR HER FIDUCIARY DUTIES AS TRUSTEE OF
THE COMMON RETIREMENT FUND, ESTABLISH VARIABLE INTEREST BOND LIQUIDITY
AND MONOLINE INSURER INVESTMENT PROGRAMS, HEREINAFTER REFERRED TO AS THE
"PROGRAM", TO ASSIST ENTITIES OF STATE AND LOCAL GOVERNMENT AND OTHER
ISSUERS OF MUNICIPAL DEBT, WHERE SUCH DEBT IS ISSUED FOR PROJECTS SPON-
SORED BY SUCH STATE AND LOCAL GOVERNMENTS, TO SECURE MORE FAVORABLE
FINANCING TERMS BY:
(A) PROVIDING LETTERS OF CREDIT, STANDBY BOND PURCHASE AGREEMENTS AND
SIMILAR LIQUIDITY FACILITIES FOR VARIABLE INTEREST RATE BONDS; AND
(B) INVESTING IN EXISTING OR NEW MONOLINE INSURERS THAT ENHANCE SUCH
TYPES OF DEBT.
2. ANY PROGRAM ESTABLISHED PURSUANT TO THIS SECTION SHALL COMPLY WITH
THE REQUIREMENTS OF SECTION 503(B) OF THE INTERNAL REVENUE CODE.
3. NO PROGRAM ESTABLISHED BY THE COMMON RETIREMENT FUND PURSUANT TO
PARAGRAPH (A) OF SUBDIVISION ONE OF THIS SECTION SHALL BE DEEMED TO
PROVIDE FINANCIAL GUARANTEE INSURANCE AS DEFINED IN PARAGRAPH ONE OF
SUBSECTION (A) OF SECTION SIX THOUSAND NINE HUNDRED ONE OF THE INSURANCE
LAW.
4. ANY PROGRAM ESTABLISHED PURSUANT TO PARAGRAPH (A) OF SUBDIVISION
ONE OF THIS SECTION SHALL ONLY ENHANCE OBLIGATIONS THAT THE COMMON
RETIREMENT FUND WOULD BE AUTHORIZED TO PURCHASE DIRECTLY, PROVIDED,
HOWEVER, THAT THE PERCENTAGE LIMITATIONS CONTAINED IN PARAGRAPH (B) OF
SUBDIVISION ONE-A OF SECTION ONE HUNDRED SEVENTY-SEVEN OF THIS CHAPTER
SHALL NOT APPLY TO INVESTMENTS MADE PURSUANT TO THIS SECTION AND THE
PERCENTAGE LIMITATIONS CONTAINED IN PARAGRAPH (A) OF SUBDIVISION NINE OF
SECTION ONE HUNDRED SEVENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO INVEST-
MENTS ENHANCING OBLIGATIONS THAT WOULD ONLY BE ELIGIBLE FOR PURCHASE
PURSUANT TO SUBDIVISION NINE OF SECTION ONE HUNDRED SEVENTY-SEVEN OF
THIS CHAPTER.
5. THE AGGREGATE OUTSTANDING BALANCE OF OBLIGATIONS ENHANCED PURSUANT
TO PARAGRAPH (A) OF SUBDIVISION ONE OF THIS SECTION SHALL NOT EXCEED TEN
PERCENT OF THE ASSETS OF THE COMMON RETIREMENT FUND; AND THE AGGREGATE
OUTSTANDING BALANCE OF OBLIGATIONS ENHANCED FOR A SINGLE ISSUER SHALL
NOT EXCEED TWO PERCENT OF THE ASSETS OF THE COMMON RETIREMENT FUND.
6. THE AGGREGATE OF ALL INVESTMENTS PURSUANT TO PARAGRAPH (B) OF
SUBDIVISION ONE OF THIS SECTION SHALL NOT EXCEED FIVE PERCENT OF THE
ASSETS OF THE COMMON RETIREMENT FUND, AND THE MAXIMUM LIABILITY OF THE
A. 9029 19
COMMON RETIREMENT FUND AS A RESULT OF ITS INVESTMENT IN ANY MONOLINE
INSURER SHALL NOT EXCEED THE DOLLAR AMOUNT OF SUCH INVESTMENT.
S 2. Section 177 of the retirement and social security law is amended
by adding a new subdivision 8-a to read as follows:
8-A. IN-STATE PRIVATE EQUITY INVESTMENTS IN PARTNERSHIPS, CORPO-
RATIONS, TRUSTS OR LIMITED LIABILITY COMPANIES ORGANIZED ON A FOR-PROFIT
BASIS. SUCH INVESTMENTS, IN AN AMOUNT NOT TO EXCEED A TOTAL OF ONE
BILLION FIVE HUNDRED MILLION DOLLARS, MAY BE AT ANY STAGE OF DEVELOPMENT
OF SUCH PARTNERSHIPS, CORPORATIONS, TRUSTS OR LIMITED LIABILITY COMPA-
NIES. SUCH IN-STATE PRIVATE EQUITY INVESTMENTS SHALL HAVE:
(A) AN INVESTMENT STRATEGY DESIGNED TO PROVIDE RETURNS CONSISTENT WITH
SIMILAR, NON-NEW YORK FOCUSED INVESTMENTS;
(B) A COHERENT INVESTMENT STRATEGY CONSISTENT WITH THE BUSINESS ENVI-
RONMENT;
(C) AN ABILITY TO RAISE CAPITAL FROM OTHER SOURCES; AND
(D) AN INVESTMENT STRATEGY DESIGNED TO RESULT IN BUSINESS PRESENCE IN
THIS STATE.
S 3. Section 177 of the retirement and social security law is amended
by adding a new subdivision 8-b to read as follows:
8-B. REAL ASSETS, IN AN AMOUNT NOT TO EXCEED A TOTAL OF ONE BILLION
DOLLARS, WHICH, FOR THE PURPOSES OF THIS SECTION, SHALL INCLUDE, BUT NOT
BE LIMITED TO, ACTUAL, TANGIBLE ASSETS SUCH AS COMMODITIES, NATURAL
RESOURCES AND TIMBER.
S 4. This act shall take effect immediately.
PART G
Section 1. Subdivisions 2 and 3 of section 63-c of the executive law,
as added by chapter 310 of the laws of 1962, are amended to read as
follows:
2. Upon the commencement by the state of any action, suit or other
judicial proceeding, as prescribed in this section, the entire cause of
action, including the title to the money, funds, credits, or other prop-
erty, with respect to which the suit or action is brought, and to the
damages or other compensation recoverable for the obtaining, receipt,
payment, conversion or disposition thereof, if not previously so vested,
is transferred to and becomes absolutely vested in the state. PROVIDED,
HOWEVER, THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO ANY
MONEY, FUNDS, CREDITS, OR OTHER PROPERTY, WITH RESPECT TO WHICH THE SUIT
OR ACTION IS BROUGHT, NOR TO THE DAMAGES OR OTHER COMPENSATION RECOVERA-
BLE FOR THE OBTAINING, RECEIPT, PAYMENT, CONVERSION OR DISPOSITION THER-
EOF IF SUCH ACTION, SUIT OR OTHER JUDICIAL PROCEEDING IS COMMENCED ON
BEHALF OF THE COMMON RETIREMENT FUND, ESTABLISHED PURSUANT TO SECTION
FOUR HUNDRED TWENTY-TWO OF THE RETIREMENT AND SOCIAL SECURITY LAW, OR IN
THE EVENT ANY MONEYS RECOVERED BY SETTLEMENT OR JUDGMENT ARE THE RESULT
OF CIVIL PENALTIES OR FORFEITURE ASSESSED TO BENEFIT THE COMMON RETIRE-
MENT FUND AND ITS MEMBERS AS VICTIMS OF SECURITIES FRAUD. TITLE TO SUCH
MONEY, FUNDS, CREDITS, OR OTHER PROPERTY AS WELL AS DAMAGES, FORFEITURES
AND CIVIL PENALTIES SHALL BE TRANSFERRED TO AND BECOME ABSOLUTELY VESTED
IN THE COMMON RETIREMENT FUND.
3. Any court of the state in which an action is brought by the state,
as prescribed in this section, may direct, by the final judgment there-
in, or by a subsequent order, that any money, funds, damages, credits,
or other property, recovered by or awarded to the plaintiff therein,
which, if that action had not been brought, would not have vested in the
state, be disposed of, as justice requires, in such a manner as to rein-
A. 9029 20
state the lawful custody thereof, or to apply the same or the proceeds
thereof to the objects and purposes for which they were authorized to be
raised or procured; after paying into the state treasury out of the
proceeds of the recovery all expenses incurred by the state in the
action; PROVIDED, HOWEVER, NO EXPENSES INCURRED BY THE STATE IN THE
ACTION MAY BE DEDUCTED FROM ANY MONEYS DUE AND OWING THE COMMON RETIRE-
MENT FUND.
S 2. This act shall take effect immediately and shall apply to actions
commenced on and after January 1, 2007.
S 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 4. This act shall take effect immediately provided, however, that
the applicable effective dates of Parts A through G of this act shall be
as specifically set forth in the last section of such Parts.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill enacts the New York State Common Retirement Fund Reformation
Act. It would make technical corrections, prohibit the use of placement
agents, amend the adoption of a code of conduct by the state comp-
troller, enact the comptroller campaign finance reform act, authorize
the state comptroller to establish a timeframe and frequency for report-
ing information, establish the variable interest rate bond liquidity and
monoline insurer investments program; affect the investment of moneys in
in-state private equities; and real assets, and create a fair fund
program for the collection of civil penalties assessed upon perpetrators
of frauds against the common retirement fund.
If this bill is enacted, we assume that there would be small invest-
ment changes as a result of enactment. Any increases or decreases in
investment earnings will result in decreases or increases, respectively,
in employer contributions. Annual changes in assets will be shared by
all employers and will be spread over the future working lifetimes of
active members.
This estimate, dated June 15, 2009, and intended for use only during
the 2009 Legislative Session, is Fiscal Note Number 2009-270 prepared by
the Actuary for the New York State and Local Employees' Retirement
System and the New York State and Local Police and Fire Retirement
System.