senate Bill S3584B

2011-2012 Legislative Session

Enacts the "2012 Campaign Finance Reform Act"

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Apr 30, 2012 print number 3584b
amend and recommit to rules
Mar 12, 2012 committee discharged and committed to rules
Mar 08, 2012 notice of committee consideration - requested
Jan 23, 2012 print number 3584a
amend (t) and recommit to elections
Jan 04, 2012 referred to elections
Feb 28, 2011 referred to elections

Bill Amendments

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B (Active)
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B (Active)

S3584 - Bill Details

Current Committee:
Law Section:
Election Law
Laws Affected:
Amd El L, generally; add §92-t, St Fin L; amd §658, Tax L
Versions Introduced in 2009-2010 Legislative Session:
S7506

S3584 - Bill Texts

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Enacts the "2012 Campaign Finance Reform Act"; provides for optional partial public financing of certain election campaigns in this state; limits personal use of campaign funds; establishes certain contribution limits; requires identification of the source of certain political communications and provides for a state board of elections enforcement unit and counsel.

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BILL NUMBER:S3584

TITLE OF BILL:

An act
enacting the "2011 Campaign
Finance Reform Act";
to amend the election law,
the state finance law and the tax law, in relation to providing for
optional partial public financing of certain election campaigns in this
state; and to amend the election law, in relation to
limiting personal use of campaign funds, establishing certain
contribution limits,
identification of
the source of certain political communications
and providing for a state board of elections enforcement unit and
counsel

SUMMARY AND DESCRIPTION OF PROVISIONS:

Public Financing:

The bill adds a new Title II to Article 14 to provide for public
financing of primary and general election campaigns for statewide
office, primary, general and special election campaigns for state
legislative office and primary and general election campaigns for
constitutional convention delegates.

Criteria for Participation:

To be eligible for public financing, a candidate for nomination or
election to a statewide office, state legislative office or as a
constitutional convention delegate must satisfy the legal
requirements for having his or her name on the ballot, elect to
participate in the public financing system, meet the threshold for
eligibility and agree to file required statements, authorize a single
participating committee; and identify the source of all campaign
material.

Eligibility Threshold:

Governor: Must collect not less than $900,000 from at least 9,000
matchable contributions made up of sums of up to $250 per individual
contributor who resides in New York state.

Lt. Governor (primary only), Attorney Gen, & Comptroller: Must collect
not less than $300,000 from at least 3,000 matchable contributions
made up of sums of up to $250 per individual contributor who resides
in New York state.

Senate: Must collect not less than $25,000 from at least 250 matchable
contributions made up of sums of up to $250 per individual contributor
who resides in New York state including at least $12,500 from at least
125 individual contributors who reside in the senate district in
which the seat is to be filled.

Assembly: Must collect not less than $10,000 from at least 100
matchable contributions made up of sums of up to $250 per individual
contributor who resides in New York State including at least $5,000
from at least 50 individual contributors who reside in the assembly
district in which the seat is to be filled.

At-large Delegate to a Constitutional Convention: Must collect not
less than $25,000 from at least 250 matchable contributions made up
of sums of up to $250 per individual contributor who resides in New
York state.

District Delegate to a Constitutional Convention: Must collect not
less than $5,000 from at least 50 matchable contributions made up of
sums of up to $250 per individual contributor who resides in the
district in which the seat is to be filled.

Matchable Contributions: May be collected after January first of the
year of the primary or general election. For a special election, may
be collected up to six months before the election. Consist of the net
amount of contributions after deduction of the value of any food,
drink or entertainment provided in exchange for the contribution.
Only contributions from persons who reside in New York State are
matchable.

The Match: Eligible contributions up to $250 are matched at the rate
of $4 for every $1.

Triggers: If, however, a candidate who does not elect to receive
public funds raises, spends or contributes his or her own personal
funds in an amount greater than the expenditure limit established for
such office for candidates participating in the public financing
system, an additional grant of public funds is given to the
participating candidate.

Grants: A participating candidate may receive up to four grants
equaling 25% of the amount of public funds previously received by the
candidate as a match for matchable contributions obtained and
reported to the state board of elections. Each of the grants is added
to the original expenditure limit, effectively creating a new
TRIGGER for the next grant when the nonparticipating candidate
raises, spends or contributes his or her own personal funds in an
amount greater than the new expenditure limit.

Misc. Rules:
To receive public funds for a primary election, a participating

candidate must agree to receive public funding for the general
election.

Participating candidates who are unopposed in a primary election may
not receive public funds. Participating candidates whose opponents
don't raise or spend 10% of the expenditure limit are deemed unopposed.

Participating candidates that are unopposed may raise private funds of
up to 50% of the expenditure limit if there is a contest in the
primary for at least one other party for such office. Such funds may
only be raised with contributions of up to $2000 per contributor.

Candidates who are challenged in a primary and who do not seek public
funds are not eligible for public funds for the general election.

Candidates who are unopposed in a general or special election may not
receive public funds.

Permissible and Prohibited Uses of Public Funds: Public funds may be
used only for qualified campaign expenditures during the year of the
primary or general election. For a special election, such funds may
only be used in the three months prior to the election. They may not
be used for expenditures in violation of law, for payments to a
candidate or to a relative of the candidate (or to any business
entity of which such a person is an officer or employee or has a ten
percent or greater ownership interest), for payments in excess of
fair market value, for any expenditure after the candidate or the
candidate's only remaining opponent has been disqualified (until and
unless reversed), to challenge an opponent's petitions or
certificates, for non-campaign related food, drink or entertainment,
or for gifts (except brochures, buttons, signs and other campaign
material).

Contribution Limit: All candidates who choose to participate in the
public financing system have a contribution limit of $2,000 per
contributor.

Expenditure Limits: The following expenditure limits apply to all
candidates who participate in the public financing system:

General Election Primary

$12,000,000 $1.1 per
enrolled voter or
$600,000, whichever
is more, but not to
exceed $6,000,000

Lt. Governor --- $1.1 per enrolled
voter or $300,000,
whichever is more,
but not to exceed

$3,000,000

Attorney General & $ 8,000,000 Same as Lt.
Governor
Comptroller

State Senator $ 375,000 $2.50 per enrolled
whichever is more,
but not to exceed
$350,000

Member of Assembly $ 150,000 $2.50 per enrolled
voter or $15,000
whichever is more,
but not to exceed
$150,000

At-Large Delegate $ 350,000 $.15 per enrolled
voter or $75,000,
whichever is more,
but not to exceed
$175,000

District Delegate $ 75,000 $1.10 per enrolled
voter in the district
or $5,000, whichever
is more, but not to
exceed $50,000

Party Expenditures in Support of participating Candidates: Notwith-
standing the expenditure limits for participating candidates, state
party committees may make the following expenditures for services to
participating candidates:

Gov. and Lt. Gov. $2,500,000
Att. Gen or Comp. $1,000,000
Senate $ 100,000
State Assembly $ 50,000
At-large Delegate $ 50,000
District Delegate $ 10,000

* Transfers to a participating candidate may constitute up to 25% of
such party expenditures.

Tax Check-off: The bill provides an income tax check-off of $5. Such
monies would be paid into a separate fund, known as the New York
State Campaign Finance Fund. The taxpayers' tax liability would not
be affected by making this designation. If the state campaign finance
fund lacks the money to pay all properly certified claims, the
deficiency will be paid from the general fund.

TITLE I

The bill amends Article 14 of the election law to designate the
existing law Title I, and adds the following:

* Identification of Independent Political Communications: The bill
requires all independent political communications that expressly
advocate for the election or defeat of a candidate or the Success or
defeat of a ballot proposal to identify the source of the funding for
such communication.

* Independent Expenditures: The bill requires reporting of independent
expenditures that cost more than $1000 and expressly advocates for
the election or defeat of a clearly identified candidate or the
success or defeat of a ballot proposal. Independent expenditures made
after the last filing before an election must be reported within 24
hours.

* The bill adds an identification requirement for independent
political communications, a filing requirement for independent
expenditures and a requirement that certain candidates disclose their
intent to spend personal funds in a campaign.

* Lowering Contribution Limits: The bill sets contribution limits for
campaigns for statewide office or citywide office in New York City at
$2,400 for candidates for election and $2,400 for candidates for
nomination (or between $2,000 and $6,000 for minor party candidates,
based on an existing formula that is unchanged by this bill). The
bill would set campaign contribution limits for candidates for State
Senate and State Assembly at $2,400 per election (or a total of
$4,800 for a primary and general election cycle), the current federal
level. This bill would not affect local laws currently in place in
New York City, which currently set limits for citywide candidates
that are lower than the limits in state law.

* Disclosure of the Intent to Use Personal Funds: Within 3 days of the
last day to file designating petitions, all candidates for statewide
office, state legislative office or constitutional convention
delegate must file a statement with the state board of elections
disclosing whether the candidate has or will contribute personal
funds to his or her committee and estimating the amount of such funds.

* Personal Use of Campaign Funds: Delineates how candidates for
elected office can and cannot use their campaign funds, establish
rules and methods for the disposal of excess campaign funds and for
the timing of such disposal, require that they specifically detail
campaign contributions by lobbyists and prohibit the soliciting or
receiving of contribution for campaigns for state or federal office
by senior policy makers in the executive and legislative branch.

* Campaign Finance Enforcement: The bill codifies an enforcement unit
within the State Board of Elections (SBOE) with a mandate that at

least 35 percent of the SBOE's annual budget be dedicated to the unit
to promote increased enforcement of campaign finance laws.

The bill expands the jurisdiction of the enforcement unit and promote
the independence of the enforcement counsel by making the office a 4
year term, and the office of special counsel, the other legal unit at
the SBOE, a four-year term and codifies the requirement that the
deputy in each unit be a member of the opposite political party than
the counsel.

The bill changes the way that campaign finance enforcement matters are
processed at the SBOE by requiring three of the four SBOE
commissioners to vote to stop an investigation by the enforcement
counsel, rather than requiring, as current law does, three votes to
begin an investigation.

The bill mandates that all votes to stop an investigation, or to act
on the recommendation of the enforcement counsel after an
investigation, Occur in public, as currently all discussion and all
determinations made regarding campaign finance enforcement matters
Occur in executive session and not in public.

Penalties:

TITLE I

The knowing and willful failure to identify the source of independent
expenditures will subject the person or entity to a civil fine equal
to $1000 or the cost of the communication, whichever is greater.

A failure to file the statements required for an independent
expenditure shall subject the person or entity to a civil fine of $500.

A knowing and willful failure to file the statement required regarding
the use of personal funds in a campaign shall subject the candidate
to a civil fine of up to $5000.

TITLE II

The failure to make proper campaign finance filings, as required by
Title II and rules and regulations promulgated thereunder, shall
subject the offender to a civil penalty of up to $5000.

If a participating candidate's aggregate expenditures exceed the
expenditure limitations, the candidate is liable for a civil penalty
in an amount equal to three times the amount of the excess.

LEGISLATIVE HISTORY:
2010: A.10927/S.7506 - Held in Elections

JUSTIFICATION:

Public Financing:

This bill provides a comprehensive yet balanced approach to the public
financing of political campaigns. It contains significant but
realistic limitations on expenditures and contribution receipts, a
means for recovering public funds when they are unspent, excessive
or used for prohibited purposes, and penalties for violations of the
filing requirements or the expenditure limitations for participants.

The hybrid "matching plus grant" structure of the program has several
advantages. It will reduce the amount of time a candidate must spend
raising money, leaving more time to address the issues that are
important to the public. The matching component allows for
participation by private citizens throughout the campaign while also
conserving resources by ensuring that only candidates who can show
substantial voter support and face opposition will be eligible to
receive public funds. The grant components, containing four separate
triggers, allow candidates that are outspent to remain competitive
without giving a participating candidate an unnecessary windfall.

The identification requirement for independent political
communications, the filing requirement for independent expenditures
and the requirement that candidates disclose their intent to spend
personal funds in a campaign provide both participants and
nonparticipants with a more transparent and fairer political dynamic.
The opportunity for party committees to make limited expenditures in
support of participating candidates provides flexibility to both the
candidates and the parties.

Overall, the bill strikes a balance that allows challengers and
incumbents to compete fairly while capping the amount of public funds
that will be expended.

Contribution Limits for Non-Participating Candidates:

Presently a single contributor may give up to $55,900 to a candidate
during a single election cycle ($18,100 for the primary and $37,800
for the general election). This figure is the highest among any of
the 45 states that place limits on campaign contributions. It is
important that the legislature take steps to reduce the excessive
contributions currently permitted by law.

Personal Use of Campaign Funds:

This bill addresses a number of concerns with how campaign funds are
raised and expended. Currently, New York's election law, allowing
candidates to spend campaign funds for "any lawful purpose," is
among the most lax in the nation. While spending campaign funds for
personal use is technically prohibited, the lack of any definition
for what constitutes a personal use renders the provision
meaningless. This
shortcoming in the law is striking when compared to the detailed

restrictions issued by the Federal Election Commission. And when it
is combined with the provision that allows elected officials to
retain campaign funds for any use related to the holding of public
office, it gives legislators virtual carte blanche for expenditures
that are, at best, tangentially related to their campaigns and
official duties.

Examples of successful, unsuccessful or former candidates using excess
campaign funds for luxury vehicles, sky boxes, extravagant meals,
international travel and home improvements have regularly appeared in
newspapers across the state. There is a growing and justifiable
public perception that campaign funds are being used to enhance the
post election lifestyles of candidates for public office. Such
largesse turns the ideal of representatives serving the public on its
head.

Campaign donors have a reasonable expectation that their contributions
will be used for the candidate's election efforts and the execution
of his or her duties. They do not expect their contributions to
subsidize personal spending. This legislation addresses these abuses
while preserving elected officials' ability to fund the legitimate
work of their offices.

By adding a detailed list, both in generalities and specific examples,
to the current language, the line as to what can and cannot be done
is brightly drawn. In addition to the obvious need to spend campaign
funds on campaigns, the expanded definition makes it clear that
expenditures related to holding public office are restricted to those
costs that would not otherwise be incurred if an individual was a
private citizen.

In addition, the bill sets limits on how long campaign committees can
be maintained by former candidates. Reports of committees continuing
years after campaigns were ended are all too common. By setting time
limits and also specifying how excess funds can be disbursed, this
abuse will be eliminated.

The bill also requires campaign committees to identify contributions
from registered lobbyists. This is in response to concerns that
recent changes in the interpretation of what constitutes an illegal
gift by the commission will result in the use of campaign funds from
lobbyists in place of the prohibited gifts from lobbyists. Coupled
with the more stringent standard for the personal use of campaign
funds, the detailing of lobbyists contributions will make it all
the more difficult to justify such expenditures.

Finally the bill prohibits the soliciting or receiving of
contributions for a campaign for state or federal office while in a
senior policy position in the legislative or executive branch. This
is in response to the recent disclosure that the head of an executive
agency who acknowledged that he was not a candidate for any office,
continued to raise and spend campaign funds to enhance his life style.

To engage in such actions while overseeing an industry which is
actively and at great expense lobbies state government, at the very
least gives the impression that favorable decisions were being sold
and, true or not, feeds public cynicism. The legislation, again in
conjunction with the new, more clearly delineated limits on the use
of campaign funds, prohibits such misuse of campaign funds.

Strengthened Campaign Finance Enforcement:

To promote increased enforcement of campaign finance reform laws, the
legislation creates an enforcement unit within the New York State
Board of Elections (BOE). Additionally, it expands the jurisdiction
of the enforcement unit and promotes the independence of the
enforcement counsel by making the office a four-year term.

The bill also requires that at least 35% of the annual State Board of
Elections budget go toward paying the expenses of the enforcement unit.

FISCAL IMPLICATIONS:
There would be no cost in 2011, 2012 and 2013.
In 2014, there could be costs associated with participating candidates
seeking election to a statewide office and constitutional delegate.
There will be no cost in 2015. In 2016, there could be costs
associated with participating candidates seeking election to state
legislative office. There would be no cost in 2017. In 2018, there
could be costs associated with participating candidates seeking
election to a statewide office, state legislative office and
constitutional delegate. Other states that have public financing
systems in place have had very low participation rates at first, with
increasing participation in later elections. The long-term cost of
the system in New York is unknown.

EFFECTIVE DATE:
This act takes effect immediately; provided, however,
that all statewide candidates and constitutional delegates will be
eligible to participate in 2015 and state legislative candidates will
be eligible to participate in 2017.

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

                                  3584

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 28, 2011
                               ___________

Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Elections

AN ACT enacting the "2011 Campaign Finance Reform  Act";  to  amend  the
  election  law,  the  state finance law and the tax law, in relation to
  providing for optional partial public financing  of  certain  election
  campaigns in this state; and to amend the election law, in relation to
  limiting personal use of campaign funds, establishing certain contrib-
  ution limits, identification of the source of certain political commu-
  nications  and  providing  for  a state board of elections enforcement
  unit and counsel

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

  Section  1.  Short title.  This act shall be known and may be cited as
the "2011 Campaign Finance Reform Act".
  S 2. Legislative findings and declaration.   The legislature  declares
that it is in the public interest to create and ensure a truly democrat-
ic  political  system  in  which citizens, irrespective of their income,
status, or financial connections, are enabled and encouraged to  compete
for  public  office.  Therefore,  the  legislature finds it necessary to
establish a system of public financing for all qualified candidates  for
state elective offices and constitutional convention delegates.
  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04571-01-1

S. 3584                             2

  (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 [arti-
cle] TITLE next succeeding a primary, general or special election  shall
be  accompanied  by  a  [facsimile  or]  copy of all BROADCAST, CABLE OR
SATELLITE SCHEDULES 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  therein],  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
committee 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  6.  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
TITLE:
  (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
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

S. 3584                             3

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, CORPORATION OR ASSOCIATION.
  2. WHENEVER ANY PERSON MAKES ONE OR MORE INDEPENDENT EXPENDITURES THAT
IN THE AGGREGATE EXCEEDS ONE THOUSAND DOLLARS IN ANY CALENDAR YEAR, SUCH
COMMUNICATION DESCRIBED IN SUBDIVISION ONE OF THIS SECTION SHALL CLEARLY
STATE, WITH RESPECT TO COMMUNICATIONS  REGARDING  CANDIDATES,  THAT  THE
COMMUNICATION  IS NOT AUTHORIZED BY ANY CANDIDATE, ANY CANDIDATE'S POLI-
TICAL 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  COMMUNI-
CATION,  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 IN THE MANNER SPECIFIED IN
SECTION 14-108 OF THIS TITLE.
  (B) ANY INDEPENDENT EXPENDITURE MADE AFTER THE CLOSE OF THE PERIOD  TO
BE  COVERED  IN  THE LAST STATEMENT FILED BEFORE ANY PRIMARY, GENERAL OR
SPECIAL 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 TITLE.
  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.
  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.

S. 3584                             4

  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  7. 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] TITLE, either a sworn verified  statement  by  the
treasurer  of such committee that the candidate has authorized the poli-
tical committee to aid or take part in his election or that  the  candi-
date  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 STATEWIDE OFFICE, STATE LEGISLATIVE OFFICE OR
CONSTITUTIONAL CONVENTION DELEGATE 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 CONTRIBUTED OR
TO BE CONTRIBUTED.  THE KNOWING AND WILLFUL FAILURE TO FILE  THE  STATE-
MENT REQUIRED BY THIS SUBDIVISION SHALL SUBJECT THE CANDIDATE TO A CIVIL
PENALTY  NOT  TO EXCEED FIVE THOUSAND DOLLARS IN A SPECIAL PROCEEDING OR
CIVIL ACTION BROUGHT BY THE STATE BOARD OF ELECTIONS.
  S 8. 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] TITLE shall be subject
to a civil penalty, not in excess of five hundred dollars, to be  recov-
erable  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  OF
THIS  TITLE  OR  KNOWINGLY  AND  WILLFULLY  FAILS  TO FILE THE STATEMENT
REQUIRED BY SUBDIVISION TWO OF SECTION 14-112 OF  THIS  TITLE  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] TITLE within ten days after
the date provided for filing such statement or any person who  knowingly
and willfully violates any other provision of this [article] TITLE 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] TITLE  shall
be guilty of a misdemeanor.
  [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 [arti-
cle] TITLE, shall be guilty of a class E felony.

S. 3584                             5

  S 9. Sections 14-100 through 14-132 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  10. 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  ANY  OF  THE OFFICES OF GOVERNOR, LIEUTENANT GOVERNOR,
COMPTROLLER, ATTORNEY GENERAL, MEMBER OF THE STATE LEGISLATURE, AT-LARGE
DELEGATE TO A  CONSTITUTIONAL  CONVENTION  OR  DISTRICT  DELEGATE  TO  A
CONSTITUTIONAL CONVENTION.
  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, GENERAL
OR SPECIAL ELECTION IS HELD FOR THE PUBLIC OFFICE SOUGHT.  A  MULTI-CAN-
DIDATE 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  (A)  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 OR (B) IN THE CASE OF A
SPECIAL ELECTION, WITHIN SIX MONTHS OF SUCH ELECTION BY NATURAL  PERSONS
RESIDENT  IN  THE  STATE  OF  NEW  YORK TO A CANDIDATE FOR NOMINATION OR
ELECTION TO ANY OF THE OFFICES 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. "MATCHA-
BLE CONTRIBUTIONS" 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 COMMIT-
TEE 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 SUCH A PAYMENT OR THING OF VALUE SHALL NOT BE MATCHA-
BLE.  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.

S. 3584                             6

  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  STATEWIDE OFFICE, THE STATE LEGISLATURE OR
DELEGATE TO A CONSTITUTIONAL CONVENTION AT A PRIMARY, GENERAL OR SPECIAL
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 OR, IN THE
CASE OF A SPECIAL ELECTION, NOT LATER THAN THE LAST DAY TO FILE NOMINAT-
ING CERTIFICATES FOR SUCH OFFICE;
  (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 CANDIDATES IN
A PRIMARY, GENERAL OR SPECIAL ELECTION FOR THE FOLLOWING  OFFICES  SHALL
BE:
  (A)  GOVERNOR  IN  A  PRIMARY  OR GENERAL ELECTION. NOT LESS THAN NINE
HUNDRED THOUSAND DOLLARS FROM AT LEAST NINE THOUSAND MATCHABLE  CONTRIB-
UTIONS MADE UP OF SUMS OF UP TO TWO HUNDRED FIFTY DOLLARS PER INDIVIDUAL
CONTRIBUTOR WHO RESIDES IN NEW YORK STATE.
  (B)  LIEUTENANT  GOVERNOR  IN  A  PRIMARY  ELECTION AND COMPTROLLER OR
ATTORNEY GENERAL IN A PRIMARY OR GENERAL ELECTION.  NOT LESS THAN  THREE
HUNDRED THOUSAND DOLLARS FROM AT LEAST THREE THOUSAND MATCHABLE CONTRIB-
UTIONS MADE UP OF SUMS OF UP TO TWO HUNDRED FIFTY DOLLARS PER INDIVIDUAL
CONTRIBUTOR WHO RESIDES IN NEW YORK STATE.
  (C)  MEMBERS  OF  THE  STATE  SENATE  IN A PRIMARY, GENERAL OR SPECIAL
ELECTION. NOT LESS THAN TWENTY-FIVE THOUSAND DOLLARS FROM AT  LEAST  TWO
HUNDRED  FIFTY  MATCHABLE  CONTRIBUTIONS  MADE  UP  OF SUMS OF UP TO TWO
HUNDRED FIFTY DOLLARS PER INDIVIDUAL CONTRIBUTOR WHO RESIDES IN NEW YORK
STATE INCLUDING AT LEAST TWELVE THOUSAND FIVE HUNDRED  DOLLARS  FROM  AT
LEAST  ONE HUNDRED TWENTY-FIVE INDIVIDUAL CONTRIBUTORS WHO RESIDE IN THE
SENATE DISTRICT IN WHICH THE SEAT IS TO BE FILLED.
  (D) MEMBERS OF THE ASSEMBLY IN A PRIMARY, GENERAL OR SPECIAL ELECTION.
NOT LESS THAN TEN THOUSAND DOLLARS FROM AT LEAST ONE  HUNDRED  MATCHABLE
CONTRIBUTIONS  MADE  UP  OF  SUMS OF UP TO TWO HUNDRED FIFTY DOLLARS PER
INDIVIDUAL CONTRIBUTOR WHO RESIDES IN NEW YORK STATE INCLUDING AT  LEAST
FIVE  THOUSAND DOLLARS FROM AT LEAST FIFTY INDIVIDUALS WHO RESIDE IN THE
ASSEMBLY DISTRICT IN WHICH THE SEAT IS TO BE FILLED.

S. 3584                             7

  (E) AT-LARGE DELEGATE TO A CONSTITUTIONAL CONVENTION IN A  PRIMARY  OR
GENERAL  ELECTION.  NOT  LESS  THAN TWENTY-FIVE THOUSAND DOLLARS FROM AT
LEAST TWO HUNDRED FIFTY MATCHABLE CONTRIBUTIONS MADE UP OF SUMS OF UP TO
TWO HUNDRED FIFTY DOLLARS PER INDIVIDUAL CONTRIBUTOR WHO RESIDES IN  NEW
YORK STATE.
  (F)  DISTRICT  DELEGATE TO A CONSTITUTIONAL CONVENTION IN A PRIMARY OR
GENERAL ELECTION. NOT LESS THAN FIVE  THOUSAND  DOLLARS  FROM  AT  LEAST
FIFTY MATCHABLE CONTRIBUTIONS MADE UP OF SUMS OF UP TO TWO HUNDRED FIFTY
DOLLARS  PER INDIVIDUAL CONTRIBUTOR WHO RESIDES IN THE DISTRICT IN WHICH
THE SEAT IS TO BE FILLED.
  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. THE PROVISIONS  OF  THIS  SUBDIVISION  SHALL  NOT
APPLY TO CANDIDATES FOR THE OFFICE OF LIEUTENANT GOVERNOR.
  5. CANDIDATES WHO ARE UNOPPOSED IN A GENERAL OR SPECIAL ELECTION SHALL
NOT BE ELIGIBLE TO RECEIVE PUBLIC FUNDS.
  6.  NO  CANDIDATE  FOR  ELECTION TO AN OFFICE IN A PRIMARY, GENERAL OR
SPECIAL 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 CANDIDATE'S  COMMIT-
TEE,  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  COMMITTEE  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 AN 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  OR,
IN  THE  CASE  OF A SPECIAL ELECTION, FOR EXPENDITURES DURING THE PERIOD
COMMENCING THREE MONTHS BEFORE AND ENDING ONE MONTH AFTER  SUCH  SPECIAL
ELECTION.  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

S. 3584                             8

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 PRIMARY, GENERAL  AND  SPECIAL  ELECTIONS  MAY
OBTAIN PAYMENT TO A PARTICIPATING COMMITTEE FROM PUBLIC FUNDS FOR QUALI-
FIED  CAMPAIGN  EXPENDITURES.  NO  SUCH  PUBLIC FUNDS SHALL BE PAID TO A
PARTICIPATING 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
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

S. 3584                             9

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
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

S. 3584                            10

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,
SPECIAL OR GENERAL ELECTION FOR ANY STATEWIDE OFFICE, STATE  LEGISLATIVE
OFFICE  OR  CONSTITUTIONAL CONVENTION DELEGATE NO CONTRIBUTOR MAY MAKE A
CONTRIBUTION TO ANY PARTICIPATING CANDIDATE OR SUCH CANDIDATE'S  PARTIC-
IPATING  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 GOVERNOR OR LIEUTENANT GOVERNOR 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  TWO
MILLION   FIVE   HUNDRED   THOUSAND  DOLLARS;  PROVIDED,  HOWEVER,  THAT
TWENTY-FIVE PERCENT OF SUCH AMOUNT MAY BE ACCEPTED  IN  THE  FORM  OF  A
TRANSFER.
  (B)  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 ATTORNEY GENERAL OR 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.

S. 3584                            11

  (C)  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  SENATOR  IN  A PRIMARY, GENERAL OR
SPECIAL 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
HUNDRED THOUSAND DOLLARS; PROVIDED, HOWEVER, THAT TWENTY-FIVE PERCENT OF
SUCH AMOUNT MAY BE ACCEPTED IN THE FORM OF A TRANSFER.
  (D)  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 MEMBER OF THE ASSEMBLY IN A PRIMARY, GENERAL
OR  SPECIAL  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 FIFTY
THOUSAND DOLLARS; PROVIDED, HOWEVER, THAT TWENTY-FIVE  PERCENT  OF  SUCH
AMOUNT MAY BE ACCEPTED IN THE FORM OF A TRANSFER.
  (E)  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  DELEGATE  AT-LARGE  TO  A  CONSTITUTIONAL
CONVENTION IN A  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  FIFTY  THOUSAND  DOLLARS;  PROVIDED,  HOWEVER,  THAT TWENTY-FIVE
PERCENT OF SUCH AMOUNT MAY BE ACCEPTED IN THE FORM OF A TRANSFER.
  (F) 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  DISTRICT  DELEGATE  TO  A  CONSTITUTIONAL
CONVENTION  IN  A  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 TEN THOUSAND DOLLARS; PROVIDED, HOWEVER, THAT TWENTY-FIVE PERCENT
OF SUCH AMOUNT MAY BE ACCEPTED IN THE FORM OF A TRANSFER.
  (G) 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  STATEWIDE
OFFICE  OR  STATE  LEGISLATIVE  OFFICE, INCLUDING WITHIN THE TERM COUNTY
COMMITTEE ANY OF ITS SUBCOMMITTEES, MAY EXPEND IN SUPPORT OF  EACH  SUCH
CANDIDATE  FOR  STATEWIDE  OFFICE 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.

S. 3584                            12

  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 OR, IN THE
CASE OF A SPECIAL ELECTION RECEIVED MORE  THAN  SIX  MONTHS  BEFORE  THE
SPECIAL  ELECTION,  MAY  NOT  BE  EXPENDED  IN ANY ELECTION FOR ANY SUCH
OFFICE.
  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
PARTICIPATING  COMMITTEES  RECEIVING  PUBLIC  FUNDS  PURSUANT   TO   THE
PROVISIONS OF THIS TITLE:
  1.  (A)  IN ANY PRIMARY ELECTION, EXPENDITURES BY PARTICIPATING CANDI-
DATES AND BY THEIR PARTICIPATING COMMITTEES SHALL NOT EXCEED:
  (I) FOR GOVERNOR, 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 NINE HUNDRED THOUSAND DOLLARS NOR  MORE  THAN
NINE MILLION DOLLARS;
  (II) FOR LIEUTENANT GOVERNOR, COMPTROLLER OR ATTORNEY GENERAL, 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;
  (III)  FOR  SENATOR,  THE  SUM OF TWO DOLLARS AND FIFTY CENTS FOR EACH
VOTER  ENROLLED  IN  THE  CANDIDATE'S  PARTY  IN  THE  SENATE  DISTRICT;
PROVIDED,  HOWEVER, SUCH SUM SHALL NOT BE LESS THAN THIRTY-FIVE THOUSAND
DOLLARS NOR MORE THAN THREE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS;
  (IV) FOR MEMBER OF THE ASSEMBLY, THE SUM  OF  TWO  DOLLARS  AND  FIFTY
CENTS  FOR  EACH VOTER ENROLLED IN THE CANDIDATE'S PARTY IN THE ASSEMBLY
DISTRICT; PROVIDED, HOWEVER, SUCH SUM SHALL NOT  BE  LESS  THAN  FIFTEEN
THOUSAND DOLLARS NOR MORE THAN ONE HUNDRED FIFTY THOUSAND DOLLARS;
  (V)  FOR  AT-LARGE DELEGATE TO A CONSTITUTIONAL CONVENTION, THE SUM OF
FIFTEEN CENTS FOR EACH VOTER ENROLLED IN THE CANDIDATE'S  PARTY  IN  THE
STATE;  PROVIDED,  HOWEVER, SUCH SUM SHALL NOT BE LESS THAN SEVENTY-FIVE
THOUSAND  DOLLARS  NOR  MORE  THAN  ONE  HUNDRED  SEVENTY-FIVE  THOUSAND
DOLLARS;
  (VI) FOR DISTRICT DELEGATES TO A CONSTITUTIONAL CONVENTION, THE SUM OF
ONE  DOLLAR  AND  TEN  CENTS  FOR EACH VOTER ENROLLED IN THE CANDIDATE'S
PARTY IN THE DISTRICT; PROVIDED, HOWEVER, SUCH SUM  SHALL  NOT  BE  LESS
THAN FIVE THOUSAND DOLLARS NOR MORE THAN FIFTY THOUSAND 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.

S. 3584                            13

  2.  IN ANY GENERAL OR SPECIAL ELECTION, EXPENDITURES BY  PARTICIPATING
CANDIDATES  FOR THE FOLLOWING OFFICES AND BY THEIR PARTICIPATING COMMIT-
TEES SHALL NOT EXCEED THE FOLLOWING AMOUNTS:
  CANDIDATES FOR ELECTION TO THE OFFICE OF:
  GOVERNOR AND LIEUTENANT GOVERNOR (COMBINED)                $12,000,000
  ATTORNEY GENERAL                                           $8,000,000
  COMPTROLLER                                                $8,000,000
  MEMBER OF SENATE                                           $375,000
  MEMBER OF ASSEMBLY                                         $150,000
  DELEGATE AT-LARGE TO A CONSTITUTIONAL CONVENTION           $350,000
  DISTRICT DELEGATE TO A CONSTITUTIONAL CONVENTION           $75,000
  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.
  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

S. 3584                            14

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 11. 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.
  S 12. The election law is amended by adding a  new  section  4-115  to
read as follows:
  S  4-115. NOTICE TO THE STATE BOARD OF ELECTIONS OF CANDIDATES FOR THE
LEGISLATURE. 1. EACH BOARD OF ELECTIONS WITH WHICH PETITIONS  ARE  FILED
FOR MEMBER OF THE STATE LEGISLATURE SHALL, NOT LATER THAN ONE WEEK AFTER

S. 3584                            15

THE  LAST  DAY TO FILE SUCH PETITIONS, SEND NOTICE TO THE STATE BOARD OF
ELECTIONS OF SUCH INFORMATION ABOUT EACH  SUCH  PETITION  AS  THE  STATE
BOARD SHALL REQUIRE.
  2.  EACH  SUCH COUNTY BOARD OF ELECTIONS SHALL, NOT LATER THAN THE DAY
AFTER THE LAST DAY TO FILE A PETITION OR CERTIFICATE OF NOMINATION FOR A
GENERAL OR SPECIAL ELECTION OR A CERTIFICATE OF ACCEPTANCE,  DECLINATION
OR  SUBSTITUTION FOR A GENERAL, PRIMARY OR SPECIAL ELECTION FOR ANY SUCH
OFFICE, SEND TO THE STATE BOARD OF ELECTIONS SUCH INFORMATION ABOUT EACH
SUCH PETITION OR CERTIFICATE AS THE STATE BOARD SHALL REQUIRE.
  3. IF ANY SUCH COUNTY BOARD OF ELECTIONS SHOULD  DISQUALIFY  ANY  SUCH
CANDIDATE  OR RULE THE PETITION OR CERTIFICATE DESIGNATING OR NOMINATING
ANY SUCH CANDIDATE INVALID, IT SHALL FORTHWITH NOTIFY THE STATE BOARD OF
ELECTIONS OF SUCH DECISION.
  4. IF ANY SUCH COUNTY BOARD OF ELECTIONS SHALL BE NOTIFIED OF A  DECI-
SION  OF A COURT OF COMPETENT JURISDICTION DISQUALIFYING ANY SUCH CANDI-
DATE OR DECLARING ANY SUCH PETITION INVALID OR REVERSING ANY SUCH  DECI-
SION  BY  SUCH  BOARD  OF  ELECTIONS  OR  ANOTHER  COURT,  SUCH BOARD OF
ELECTIONS SHALL FORTHWITH NOTIFY THE STATE BOARD OF  ELECTIONS  OF  SUCH
DECISION.
  5.  THE  STATE  BOARD OF ELECTIONS MAY PRESCRIBE FORMS FOR THE NOTICES
REQUIRED BY THIS SECTION AND SHALL PRESCRIBE THE MANNER  IN  WHICH  SUCH
NOTICES SHALL BE GIVEN.
  S 13. 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 SIXTEEN, 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.

S. 3584                            16

  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 CANDIDATES IN A
SPECIAL ELECTION ANY EARLIER THAN THE DAY AFTER THE  LAST  DAY  TO  FILE
CERTIFICATES OF PARTY NOMINATION FOR SUCH SPECIAL ELECTION.
  9.  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 14. 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 ELEVEN,
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
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 ELEVEN, 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 15. 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  two  members  of  the
state  board  of  elections  who rotate as chairperson of the board. 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 2011 Campaign Finance Reform Act. The
panel shall report to the governor and the legislature on March 31, 2013
and on March 31, 2015. The report  shall  include:  (a)  the  number  of
candidates  qualifying  and  opting  for  public  financing, the amounts
expended for this purpose in the preceding fiscal year and a  projection

S. 3584                            17

of the number of candidates likely to qualify and opt for public financ-
ing  and  their expenditures in future elections; (b) an analysis of the
effect of the 2011 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 2011
Campaign Finance Reform Act as it deems appropriate.
  S  16.  Subdivision 9 of section 14-100 of the election law is amended
by adding a new paragraph 4 to read as follows:
  (4) THE TERM "CONTRIBUTION" DOES NOT INCLUDE EXPENDITURES  BY  A  BONA
FIDE  MEMBERSHIP  ORGANIZATION IN SUPPORT OF THE FOLLOWING ACTIVITIES BY
MEMBERS OF THE ORGANIZATION WHO ARE VOLUNTEERING THEIR TIME ON BEHALF OF
A CANDIDATE, NOT TO EXCEED TWENTY-FIVE DOLLARS  PER  MEMBER  WHO  VOLUN-
TEERS,  FOR:  TRANSPORTATION  OF  VOLUNTEERS TO AND FROM CAMPAIGN ACTIV-
ITIES; COST OF FEEDING VOLUNTEERS WHILE VOLUNTEERING FOR  THE  CAMPAIGN;
AND  MATERIALS  SUCH  AS BADGES AND CLOTHING THAT IDENTIFIES THE NAME OF
THE ORGANIZATION AND/OR CANDIDATE.
  S 17. Paragraphs a and b of subdivision 1 of  section  14-114  of  the
election law, as amended by chapter 659 of the laws of 1994, are amended
to read as follows:
  a. In any election for a public office to be voted on by the voters of
the  entire  state, or for nomination to any such office, no contributor
may make a contribution to any candidate or political committee, and  no
candidate  or  political  committee may accept any contribution from any
contributor, which is in the aggregate amount greater than:  (i) in  the
case of any nomination to public office, the product of the total number
of  enrolled  voters  in  the  candidate's party in the state, excluding
voters in inactive status, multiplied by $.005, but such amount shall be
not [less] MORE than [four] TWO thousand FOUR HUNDRED dollars [nor  more
than  twelve  thousand dollars] as increased or decreased by the cost of
living adjustment described in paragraph c of this subdivision, and (ii)
in the case of any election to a public office, [twenty-five] TWO  thou-
sand  FOUR  HUNDRED  dollars  as  increased  or decreased by the cost of
living adjustment described in paragraph c of this subdivision; provided
however, that  the  maximum  amount  which  may  be  so  contributed  or
accepted,  in  the aggregate, from any candidate's child, parent, grand-
parent, brother and sister, and the spouse of any  such  persons,  shall
not  exceed  in  the  case  of any nomination to public office an amount
equivalent to the product of the number of enrolled voters in the candi-
date's party in the state, excluding voters in inactive  status,  multi-
plied  by $.025, and in the case of any election for a public office, an
amount equivalent to the product of the number of registered  voters  in
the state excluding voters in inactive status, multiplied by $.025.
  b.  In  any  other  election  for  party position or for election to a
public office or for nomination for any such office, no contributor  may
make  a  contribution  to  any  candidate  or political committee and no
candidate or political committee may accept any  contribution  from  any
contributor,  which  is in the aggregate amount greater than: (i) in the
case of any election for party position, or  for  nomination  to  public
office, the product of the total number of enrolled voters in the candi-
date's  party in the district in which he OR SHE is a candidate, exclud-
ing voters in inactive status, multiplied by $.05, and (ii) in the  case
of  any election for a public office, the product of the total number of
registered voters in the district, excluding voters in inactive  status,

S. 3584                            18

multiplied  by $.05, however in the case of a nomination within the city
of New York for the office of mayor,  public  advocate  or  comptroller,
such  amount  shall  be  not  [less]  MORE than [four] TWO thousand FOUR
HUNDRED  dollars [nor more than twelve thousand dollars] as increased or
decreased by the cost of living adjustment described in paragraph  c  of
this subdivision; in the case of an election within the city of New York
for  the  office of mayor, public advocate or comptroller, [twenty-five]
TWO thousand FOUR HUNDRED dollars as increased or decreased by the  cost
of  living  adjustment  described in paragraph c of this subdivision; in
the case of a nomination for state senator,  [four]  TWO  thousand  FOUR
HUNDRED  dollars as increased or decreased by the cost of living adjust-
ment described in paragraph c of this subdivision; in  the  case  of  an
election  for  state  senator,  [six]  TWO  thousand  [two] FOUR hundred
[fifty] dollars as increased or decreased by the cost of living  adjust-
ment  described  in  paragraph  c of this subdivision; in the case of an
election or nomination for a member of the assembly,  [twenty-five]  TWO
THOUSAND  FOUR  hundred dollars as increased or decreased by the cost of
living adjustment described in paragraph c of this subdivision; [but  in
no event shall any such maximum exceed fifty thousand dollars or be less
than  one  thousand  dollars;] provided however, that the maximum amount
which may be so contributed or accepted,  in  the  aggregate,  from  any
candidate's  child,  parent,  grandparent,  brother  and sister, and the
spouse of any such persons, shall not exceed in the case of any election
for party position or nomination for public office an amount  equivalent
to  the  number  of  enrolled  voters  in  the  candidate's party in the
district in which he OR SHE is a candidate, excluding voters in inactive
status, multiplied by $.25 and in the case of  any  election  to  public
office,  an  amount equivalent to the number of registered voters in the
district, excluding voters in inactive status, multiplied  by  $.25;  or
twelve  hundred fifty dollars, whichever is greater, or in the case of a
nomination or election of a  state  senator,  twenty  thousand  dollars,
whichever  is  greater,  or in the case of a nomination or election of a
member of the assembly, twelve thousand five hundred dollars,  whichever
is  greater,  but  in no event shall any such maximum exceed one hundred
thousand dollars.
  S 18. 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 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:
  A. PROMOTING THE NOMINATION OR ELECTION OF A CANDIDATE; OR
  B. PERFORMING THOSE DUTIES OF PUBLIC OFFICE OR  PARTY  POSITION  WHICH
ARE NOT PAID FOR OR ELIGIBLE FOR REIMBURSEMENT BY THE STATE OR ANY POLI-
TICAL SUBDIVISION OR PRIVATE PARTY.
  2. PERMISSIBLE ORDINARY AND NECESSARY EXPENSES RELATING TO THE HOLDING
OF PUBLIC OFFICE OR PARTY POSITION SHALL INCLUDE:
  A.  PRODUCTION  AND  CIRCULATION  OF FLYERS OR OTHER WRITTEN MATERIALS
RELATED TO DUTIES OF OFFICEHOLDER; THE PLACEMENT  OF  HOLIDAY  GREETINGS
AND  CONGRATULATORY  ADS AND MEMORIAL NOTICES IN LOCAL NEWSPAPERS, MAGA-
ZINES, JOURNALS OR OTHER PUBLICATION;
  B. SPONSORSHIP OR HOSTING OF COMMUNITY MEETINGS; TICKETS OR  DONATIONS
TO  LOCAL  CHARITABLE,  NON-PROFIT OR POLITICAL EVENTS, ORGANIZATIONS OR

S. 3584                            19

ACTIVITIES  THAT  PROMOTE  THE  WELFARE  OF  CONSTITUENTS  OR  POLITICAL
CAMPAIGNS;
  C.  INCIDENTAL  EXPENDITURES FOR THE OPERATION OF LEGISLATIVE OFFICES,
INCLUDING PURCHASE OF ITEMS SUCH AS MEMORIAL OR GET-WELL GIFTS,  FLOWERS
OR SIMILAR ITEMS OF NOMINAL VALUE FOR CONSTITUENTS OR OTHERS;
  D. MEMBERSHIP IN ORGANIZATIONS RELATED TO OFFICIAL DUTIES AND COSTS OF
ATTENDING  INFORMATIONAL  MEETINGS  ATTENDED  IN  CONNECTION  WITH  SUCH
DUTIES; AND
  E. TRAVEL RELATED TO DUTIES OF OFFICE, PROVIDED THAT THE TRAVEL IS NOT
UNDERTAKEN FOR ANY PURPOSE RESULTING IN A PERSONAL OR FINANCIAL  BENEFIT
TO THE CANDIDATE OR OFFICEHOLDER. IF SUCH EXPENSES INVOLVE BOTH PERSONAL
ACTIVITY  AND  CAMPAIGN OR OFFICIAL ACTIVITIES, THE INCREMENTAL EXPENSES
ASSOCIATED WITH THE PERSONAL ACTIVITIES ARE  PERSONAL  USES  UNLESS  THE
CAMPAIGN  IS  REIMBURSED  FOR  SUCH  SUMS FROM OTHER THAN CAMPAIGN FUNDS
WITHIN THIRTY DAYS OF THE EXPENDITURE.
  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 SIGN 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.
  3. 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 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.
  4. 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 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 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 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;

S. 3584                            20

  H. ADMISSION TO SPORTING EVENTS, CONCERTS, THEATERS, OR OTHER FORMS OF
ENTERTAINMENT, UNLESS  PART  OF  A  SPECIFIC  CAMPAIGN  OR  OFFICEHOLDER
RELATED ACTIVITY; AND
  I.  PAYMENT OF ANY FINES, FEES, OR PENALTIES ASSESSED PURSUANT TO THIS
CHAPTER.
  5. NO CAMPAIGN FUNDS SHALL BE USED TO PAY ATTORNEY'S FEES OR ANY COSTS
OF DEFENDING AGAINST ANY CIVIL OR CRIMINAL INVESTIGATION OR  PROSECUTION
FOR  ALLEGED  VIOLATIONS  OF  STATE  OR FEDERAL LAW ALLEGED TO HAVE BEEN
COMMITTED WHILE HOLDING PUBLIC OFFICE OR AS A CANDIDATE FOR OFFICE WHERE
THE CANDIDATE OR PUBLIC OR PARTY OFFICIAL, MEMBERS  OF  THEIR  IMMEDIATE
FAMILIES OR PARTNERS OR THE CAMPAIGN IS THE TARGET OF SUCH INVESTIGATION
OR  PROSECUTION  UNLESS  SUCH  EXPENDITURE IS USED EXCLUSIVELY FOR COSTS
RELATED TO CIVIL OR CRIMINAL ACTIONS FOR ALLEGED VIOLATIONS  RELATED  TO
ACTIVITIES PROMOTING THE NOMINATION OR ELECTION OF A CANDIDATE.
  S  19.  The  election law is amended by adding a new section 14-132 to
read as follows:
  S 14-132. DISPOSITION OF CAMPAIGN FUNDS. 1. AN  AUTHORIZED  CONTINUING
CANDIDATE COMMITTEE MUST DISPOSE OF ALL FUNDS AND CLOSE WITHIN TWO YEARS
AFTER  THE  LATER OF (A) THE END OF THE INDIVIDUAL'S MOST RECENT TERM OF
OFFICE, OR (B) THE DATE OF THE ELECTION IN WHICH THE INDIVIDUAL LAST WAS
A FILED CANDIDATE.
  2. ANY CANDIDATE OR POLITICAL COMMITTEE REQUIRED TO DISPOSE  OF  FUNDS
PURSUANT  TO  THIS SECTION SHALL, AT THE OPTION 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 REVEN-
UE 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.
  3. NO CANDIDATE OR POLITICAL COMMITTEE SHALL DISPOSE OF CAMPAIGN FUNDS
BY MAKING EXPENDITURES FOR PERSONAL USE AS DEFINED IN SECTION 14-130  OF
THIS TITLE.
  4.  UPON THE DEATH OF A CANDIDATE, FORMER CANDIDATE OR HOLDER OF ELEC-
TIVE OFFICE, WHO  RECEIVED  CAMPAIGN  CONTRIBUTIONS,  ALL  CONTRIBUTIONS
SHALL  BE  DISPOSED OF ACCORDING TO THIS SECTION WITHIN TWELVE MONTHS OF
THE DEATH OF THE CANDIDATE.
  S 20. Subdivision 1 of section 14-102 of the election law, as  amended
by  chapter  8  and  redesignated  by  chapter 9 of the laws of 1978, is
amended to read as follows:
  1. The treasurer of every political committee which, or  any  officer,
member  or  agent  of  any  such  committee  who, in connection with any
election, receives or expends any  money  or  other  valuable  thing  or
incurs  any  liability  to pay money or its equivalent shall file state-
ments sworn, or subscribed and bearing a form notice that  false  state-
ments  made  therein are punishable as a class A misdemeanor pursuant to
section 210.45 of the penal law, at the times prescribed by this  [arti-
cle]  TITLE  setting  forth  all  the receipts, contributions to and the

S. 3584                            21

expenditures by and liabilities of the committee, and of  its  officers,
members  and  agents  in  its  behalf. Such statements shall include the
dollar amount of any receipt, contribution  or  transfer,  or  the  fair
market  value  of  any receipt, contribution or transfer, which is other
than of money, the name and address of the  transferor,  contributor  or
person  from  whom received, IF THE CONTRIBUTOR IS A LOBBYIST REGISTERED
PURSUANT TO ARTICLE ONE-A OF THE LEGISLATIVE LAW and if the  transferor,
contributor  or  person  is  a  political committee; the name of and the
political unit represented by the committee, the date  of  its  receipt,
the  dollar  amount  of  every  expenditure, the name and address of the
person to whom it was made or the name of and the political unit repres-
ented by the committee to which it was made and the  date  thereof,  and
shall  state  clearly  the  purpose  of  such expenditure. Any statement
reporting a loan shall have attached to it a copy  of  the  evidence  of
indebtedness.  Expenditures  in  sums  under  fifty  dollars need not be
specifically accounted for by separate items  in  said  statements,  and
receipts   and  contributions  aggregating  not  more  than  ninety-nine
dollars, from any one contributor need not be specifically accounted for
by separate items  in  said  statements,  provided  however,  that  such
expenditures,  receipts  and contributions shall be subject to the other
provisions of section 14-118 of this [article] TITLE.
  S 21. Subdivision 3 of section 3-100 of the election law,  as  amended
by chapter 220 of the laws of 2005, is amended to read as follows:
  3.  The  commissioners  of  the state board of elections shall have no
other public employment. The commissioners shall receive an annual sala-
ry of twenty-five thousand dollars, within the  amounts  made  available
therefor by appropriation. The board shall, for the purposes of sections
seventy-three  and  seventy-four of the public officers law, be a "state
agency", and such commissioners shall be "officers" of the  state  board
of  elections for the purposes of such sections. Within the amounts made
available by appropriation therefor, the state board of elections  shall
appoint  two co-executive directors, [counsel] AN ENFORCEMENT COUNSEL, A
DEPUTY ENFORCEMENT COUNSEL, WHO SHALL BE A MEMBER OF A  DIFFERENT  MAJOR
POLITICAL PARTY THAN THE ENFORCEMENT COUNSEL, A SPECIAL COUNSEL, A DEPU-
TY SPECIAL COUNSEL, WHO SHALL BE A MEMBER OF A DIFFERENT MAJOR POLITICAL
PARTY  THAN  THE  SPECIAL  COUNSEL, A DIRECTOR OF ELECTION OPERATIONS, A
DEPUTY DIRECTOR OF ELECTION OPERATIONS, WHO  SHALL  BE  A  MEMBER  OF  A
DIFFERENT  MAJOR  POLITICAL  PARTY  THAN  THE DIRECTOR OF ELECTION OPER-
ATIONS, A DIRECTOR OF PUBLIC INFORMATION, A DEPUTY  DIRECTOR  OF  PUBLIC
INFORMATION,  WHO SHALL BE A MEMBER OF A DIFFERENT MAJOR POLITICAL PARTY
THAN THE DIRECTOR OF PUBLIC INFORMATION and such other staff members  as
are  necessary  in  the  exercise  of  its  functions, and may fix their
compensation. [Anytime after the effective date of the  chapter  of  the
laws  of  two  thousand  five  which  amended this subdivision, the] THE
commissioners or, in the case of a vacancy on the board, the commission-
er of each of the major political parties shall appoint one co-executive
director. Each co-executive director shall serve a term of  four  years.
THE  ENFORCEMENT COUNSEL AND THE SPECIAL COUNSEL SHALL EACH SERVE A TERM
OF FOUR YEARS AND MAY ONLY BE REMOVED FOR CAUSE.   ANY  TIME  AFTER  THE
EFFECTIVE  DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND ELEVEN AMEND-
ING THIS SUBDIVISION, THE COMMISSIONERS, OR IN THE CASE OF A VACANCY  ON
THE  BOARD,  THE COMMISSIONER, OF EACH OF THE SAME MAJOR POLITICAL PARTY
AS  THE  INCUMBENT  ENFORCEMENT  COUNSEL,  DEPUTY  ENFORCEMENT  COUNSEL,
SPECIAL  COUNSEL,  DEPUTY  SPECIAL  COUNSEL,  DIRECTOR OF ELECTION OPER-
ATIONS, DEPUTY DIRECTOR  OF  ELECTION  OPERATIONS,  DIRECTOR  OF  PUBLIC
INFORMATION  AND  DEPUTY  DIRECTOR  OF PUBLIC INFORMATION, SHALL APPOINT

S. 3584                            22

SUCH COUNSELS, DIRECTORS AND DEPUTIES. Any  vacancy  in  the  office  of
co-executive  director, ENFORCEMENT COUNSEL, DEPUTY ENFORCEMENT COUNSEL,
SPECIAL COUNSEL, DEPUTY SPECIAL  COUNSEL,  DIRECTOR  OF  ELECTION  OPER-
ATIONS,  DEPUTY  DIRECTOR  OF  ELECTION  OPERATIONS,  DIRECTOR OF PUBLIC
INFORMATION AND DEPUTY DIRECTOR OF PUBLIC INFORMATION, shall  be  filled
by  the  commissioners  or,  in  the case of a vacancy on the board, the
commissioner of the same major political party as the vacating incumbent
for the remaining period of the term of such vacating incumbent, FOR THE
REMAINING PERIOD OF THE TERM OF SUCH VACATING INCUMBENT.
  S 22. Subdivision 3, paragraph (c) of subdivision 9-A and  subdivision
17  of  section  3-102  of  the  election  law, subdivisions 3 and 17 as
amended by chapter 9 of the laws of 1978, paragraph (c)  of  subdivision
9-A  as  added  by chapter 430 of the laws of 1997 and subdivision 17 as
renumbered by chapter 23 of the laws of 2005, are  amended  to  read  as
follows:
  3.  conduct any investigation necessary to carry out the provisions of
this chapter, PROVIDED, HOWEVER,  THAT  THE  STATE  BOARD  OF  ELECTIONS
ENFORCEMENT COUNSEL, ESTABLISHED PURSUANT TO SECTION 3-104 OF THIS ARTI-
CLE, SHALL CONDUCT ANY INVESTIGATION NECESSARY TO ENFORCE THE PROVISIONS
OF ARTICLE FOURTEEN OF THIS CHAPTER ON BEHALF OF THE BOARD OF ELECTIONS;
  (c) establish [a] AN EDUCATIONAL AND training program on ALL REPORTING
REQUIREMENTS INCLUDING BUT NOT LIMITED TO the electronic reporting proc-
ess  and  make  it EASILY AND READILY available to any such candidate or
committee AND NOTIFY ANY SUCH CANDIDATE OR COMMITTEE OF THE AVAILABILITY
OF THE MOST RECENT CAMPAIGN FINANCE HANDBOOK;
  17.   HEAR AND CONSIDER THE RECOMMENDATIONS  OF  THE  STATE  BOARD  OF
ELECTIONS ENFORCEMENT COUNSEL REGARDING THE ENFORCEMENT OF VIOLATIONS OF
ARTICLE FOURTEEN OF THIS CHAPTER;
  18.  perform  such  other  acts  as  may be necessary to carry out the
purposes of this chapter.
  S 23. Section 3-104 of the election law, subdivisions 1, 3, 4 and 5 as
redesignated and subdivision 2 as amended by chapter 9 of  the  laws  of
1978, is amended to read as follows:
  S  3-104.  State  board  of elections AND THE STATE BOARD OF ELECTIONS
ENFORCEMENT COUNSEL; enforcement powers.  1. (A) THERE SHALL BE  A  UNIT
KNOWN AS THE STATE BOARD OF ELECTIONS ENFORCEMENT UNIT ESTABLISHED WITH-
IN  THE  STATE  BOARD  OF  ELECTIONS. THE HEAD OF SUCH UNIT SHALL BE THE
ENFORCEMENT COUNSEL.
  (B) The state board of elections shall have jurisdiction  of,  and  be
responsible  for,  the  execution  and  enforcement of the provisions of
[article  fourteen  of  this  chapter  and  other]  statutes   governing
campaigns,  elections  and related procedures; PROVIDED HOWEVER THAT THE
ENFORCEMENT COUNSEL SHALL HAVE SOLE AUTHORITY WITHIN THE STATE BOARD  OF
ELECTIONS TO INVESTIGATE ON HIS OR HER OWN INITIATIVE OR UPON COMPLAINT,
ALLEGED   VIOLATIONS  OF  ARTICLE  FOURTEEN  OF  THIS  CHAPTER  AND  ALL
COMPLAINTS ALLEGING ARTICLE FOURTEEN VIOLATIONS SHALL  BE  FORWARDED  TO
THE  ENFORCEMENT  UNIT.  NOTHING  IN  THIS SECTION SHALL BE CONSTRUED TO
DIMINISH OR ALTER THE STATE BOARD OF ELECTIONS' JURISDICTION PURSUANT TO
THIS CHAPTER.
  2. Whenever [the state board of elections or other] A LOCAL  board  of
elections  shall  determine, on its own initiative or upon complaint, or
otherwise, that there is substantial reason to believe  a  violation  of
this  chapter  or  any  code  or  regulation  promulgated thereunder has
[occurred] BEEN COMMITTED BY A CANDIDATE  OR  POLITICAL  COMMITTEE  THAT
FILES STATEMENTS OR IS REQUIRED TO DO SO PURSUANT TO ARTICLE FOURTEEN OF
THIS  CHAPTER  SOLELY WITH SUCH LOCAL BOARD, it shall expeditiously make

S. 3584                            23

an investigation which shall also include investigation of  reports  and
statements  made  or  failed to be made by the complainant and any poli-
tical committee supporting his candidacy if the complainant is a  candi-
date  or,  if  the complaint was made by an officer or member of a poli-
tical committee, of reports and statements made or failed to be made  by
such  political committee and any candidates supported by it. [The state
board of elections, in lieu of making such an investigation, may  direct
the  appropriate board of elections to make an investigation.] The state
board of elections may request, and shall receive, the assistance of the
state police in any investigation it shall conduct.
  3. [If, after an investigation, the state or other board of  elections
finds  reasonable  cause to believe that a violation warranting criminal
prosecution has taken place, it shall forthwith refer the matter to  the
district  attorney of the appropriate county and shall make available to
such district attorney all relevant  papers,  documents,  testimony  and
findings relevant to its investigation.
  4.  The  state  or  other  board  of elections may, where appropriate,
commence a judicial proceeding with respect to the filing or failure  to
file  any  statement  of receipts, expenditures, or contributions, under
the provisions of this chapter, and the state  board  of  elections  may
direct  the  appropriate  other  board  of  elections  to  commence such
proceeding.
  5.]  IF THE ENFORCEMENT COUNSEL DETERMINES THAT A VIOLATION OF  SUBDI-
VISION  ONE  OF  SECTION 14-126 OF THIS CHAPTER HAS OCCURRED WHICH COULD
WARRANT A CIVIL PENALTY, THE ENFORCEMENT COUNSEL SHALL, UPON HIS OR  HER
DISCRETION,  SEEK  TO  RESOLVE THE MATTER EXTRA-JUDICIALLY OR COMMENCE A
SPECIAL PROCEEDING IN THE SUPREME COURT PURSUANT TO  SECTION  16-114  OF
THIS CHAPTER.
  4. UPON RECEIPT OF A COMPLAINT AND SUPPORTING INFORMATION OR AN INTER-
NAL  REFERRAL  FROM THE ENFORCEMENT UNIT ALLEGING ANY OTHER VIOLATION OF
ARTICLE FOURTEEN OF THIS CHAPTER, THE ENFORCEMENT COUNSEL SHALL  ANALYZE
THE  FACTS  AND THE LAW RELEVANT TO SUCH COMPLAINT OR REFERRAL TO DETER-
MINE IF AN INVESTIGATION SHOULD BE UNDERTAKEN. THE  ENFORCEMENT  COUNSEL
SHALL, IF NECESSARY, REQUEST ADDITIONAL INFORMATION FROM THE COMPLAINANT
TO ASSIST SUCH COUNSEL IN MAKING THIS DETERMINATION. SUCH ANALYSIS SHALL
INCLUDE  THE  FOLLOWING:  FIRST, WHETHER THE ALLEGATIONS, IF TRUE, WOULD
CONSTITUTE A VIOLATION OF ARTICLE FOURTEEN OF THIS CHAPTER AND,  SECOND,
WHETHER THE ALLEGATIONS ARE SUPPORTED BY CREDIBLE EVIDENCE.
  5.   IF  THE  ENFORCEMENT  COUNSEL  DETERMINES  THAT  THE  ALLEGATIONS
CONTAINED IN A COMPLAINT, IF TRUE, WOULD NOT CONSTITUTE A  VIOLATION  OF
ARTICLE  FOURTEEN  OF  THIS  CHAPTER  OR  THAT  THE  ALLEGATIONS ARE NOT
SUPPORTED BY CREDIBLE EVIDENCE, HE OR SHE SHALL: (A) NOTIFY  THE  DEPUTY
ENFORCEMENT  COUNSEL  OF  SUCH DETERMINATION AND (B) PUBLICLY NOTIFY THE
STATE BOARD OF ELECTIONS OF SUCH DETERMINATION. IF THE  STATE  BOARD  OF
ELECTIONS PUBLICLY DETERMINES, AS PROVIDED IN THIS TITLE, THAT THE ALLE-
GATIONS,  IF  TRUE,  WOULD CONSTITUTE A VIOLATION OF ARTICLE FOURTEEN OF
THIS CHAPTER AND THAT THE ALLEGATIONS APPEAR TO BE SUPPORTED BY CREDIBLE
EVIDENCE, IT SHALL DIRECT THAT THE ENFORCEMENT COUNSEL CONDUCT AN INVES-
TIGATION. LACKING SUCH A DETERMINATION, THE  ENFORCEMENT  COUNSEL  SHALL
ISSUE A LETTER TO THE COMPLAINANT DISMISSING THE COMPLAINT.
  6.  IF  THE  ENFORCEMENT  COUNSEL  DETERMINES THAT THE ALLEGATIONS, IF
TRUE, WOULD CONSTITUTE A VIOLATION OF ARTICLE FOURTEEN OF  THIS  CHAPTER
AND THAT THE ALLEGATIONS APPEAR TO BE SUPPORTED BY CREDIBLE EVIDENCE, HE
OR  SHE  SHALL:  (A) NOTIFY THE DEPUTY ENFORCEMENT COUNSEL OF (I) HIS OR
HER INTENT TO RESOLVE THE MATTER EXTRA-JUDICIALLY DUE TO THE DE  MINIMUS
NATURE OF THE VIOLATION; OR (II) HIS OR HER INTENT TO COMMENCE AN INVES-

S. 3584                            24

TIGATION,  AND  (B) PUBLICLY NOTIFY THE STATE BOARD OF ELECTIONS OF SUCH
INTENT NO LATER THAN  THE  BOARD'S  NEXT  REGULARLY  SCHEDULED  MEETING.
NOTIFICATION  SHALL  SUMMARIZE THE RELEVANT FACTS AND THE APPLICABLE LAW
AND  SHALL,  TO  THE EXTENT POSSIBLE, PROTECT FROM PUBLIC DISCLOSURE THE
IDENTITY OF THE COMPLAINANT AND THE INDIVIDUAL SUBJECT TO THE COMPLAINT.
THE DEPUTY ENFORCEMENT COUNSEL SHALL HAVE THE OPPORTUNITY TO REVIEW  THE
ENTIRE  FILE  OF ANY PRELIMINARY INVESTIGATION CONDUCTED BY THE ENFORCE-
MENT COUNSEL A MINIMUM OF TEN DAYS PRIOR  TO  SAID  REGULARLY  SCHEDULED
MEETING OF THE BOARD AND TO SUBMIT A PUBLIC, WRITTEN CONCURRENCE WITH OR
DISSENT FROM THE ENFORCEMENT COUNSEL'S PROPOSAL.
  7.  IF, UPON CONSIDERING THE ENFORCEMENT COUNSEL'S NOTICE OF INTENT TO
COMMENCE AN INVESTIGATION AND THE DEPUTY ENFORCEMENT COUNSEL'S RECOMMEN-
DATION, THE STATE BOARD OF ELECTIONS BELIEVES THAT THE  ALLEGATIONS,  IF
TRUE, WOULD NOT CONSTITUTE A VIOLATION OF ARTICLE FOURTEEN OF THIS CHAP-
TER,  OR THE ALLEGATIONS ARE NOT SUPPORTED BY CREDIBLE EVIDENCE OR, THAT
ON BALANCE, THE EQUITIES FAVOR A DISMISSAL OF THE COMPLAINT,  THE  BOARD
SHALL  PUBLICLY  DIRECT THAT AN INVESTIGATION NOT BE UNDERTAKEN NO LATER
THAN SIXTY DAYS AFTER THE RECEIPT OF NOTIFICATION FROM  THE  ENFORCEMENT
COUNSEL  OF HIS OR HER INTENT TO COMMENCE AN INVESTIGATION. IN DETERMIN-
ING WHETHER THE EQUITIES FAVOR A DISMISSAL OF THE COMPLAINT,  THE  STATE
BOARD OF ELECTIONS SHALL CONSIDER THE FOLLOWING FACTORS: (A) WHETHER THE
COMPLAINT  ALLEGES  A  DE  MINIMUS VIOLATION OF ARTICLE FOURTEEN OF THIS
CHAPTER; (B) WHETHER THE SUBJECT OF THE COMPLAINT HAS MADE A GOOD  FAITH
EFFORT  TO  CORRECT  THE  VIOLATION;  AND (C) WHETHER THE SUBJECT OF THE
COMPLAINT HAS A HISTORY OF SIMILAR VIOLATIONS.   DETERMINATIONS  OF  THE
STATE  BOARD  OF ELECTIONS TO DISMISS A COMPLAINT AND NOT PROCEED WITH A
FORMAL INVESTIGATION SHALL BE VOTED UPON AS PROVIDED IN SUBDIVISION FOUR
OF SECTION 3-100 OF THIS TITLE AT AN OPEN MEETING  PURSUANT  TO  ARTICLE
SEVEN  OF THE PUBLIC OFFICERS LAW, AND SHALL BE MADE ON A FAIR AND EQUI-
TABLE BASIS AND WITHOUT REGARD TO THE  STATUS  OF  THE  SUBJECT  OF  THE
COMPLAINT.
  8.  ABSENT A TIMELY DETERMINATION BY THE STATE BOARD OF ELECTIONS THAT
AN INVESTIGATION SHALL NOT BE UNDERTAKEN, THE ENFORCEMENT COUNSEL  SHALL
COMMENCE  AN INVESTIGATION ON A TIMELY BASIS. IF THE ENFORCEMENT COUNSEL
DETERMINES THAT ADDITIONAL INVESTIGATIVE  POWERS,  AS  PROVIDED  FOR  IN
SUBDIVISIONS  FOUR,  FIVE  AND  SIX  OF SECTION 3-102 OF THIS TITLE, ARE
NEEDED TO COMPLETE THE COUNSEL'S INVESTIGATION, HE OR SHE SHALL  REQUEST
SUCH  ADDITIONAL  POWERS  FROM THE STATE BOARD OF ELECTIONS. SUCH POWERS
SHALL BE GRANTED BY THE BOARD IN PUBLIC ONLY WHEN THE BOARD  FINDS  THAT
FURTHER INVESTIGATION IS WARRANTED AND JUSTIFIED.
  9.  AT  THE  CONCLUSION  OF ITS INVESTIGATION, THE ENFORCEMENT COUNSEL
SHALL PROVIDE THE DEPUTY ENFORCEMENT COUNSEL  AND  THE  STATE  BOARD  OF
ELECTIONS  WITH  A WRITTEN RECOMMENDATION AS TO: (A) WHETHER SUBSTANTIAL
REASON EXISTS TO BELIEVE A VIOLATION OF ARTICLE FOURTEEN OF THIS CHAPTER
HAS OCCURRED AND, IF SO, THE NATURE OF THE VIOLATION AND ANY  APPLICABLE
PENALTY,  AS  DEFINED  IN  SECTION  14-126 OF THIS CHAPTER, BASED ON THE
NATURE OF THE VIOLATION; (B)  WHETHER  THE  MATTER  SHOULD  BE  RESOLVED
EXTRA-JUDICIALLY;  (C)  WHETHER A SPECIAL PROCEEDING SHOULD BE COMMENCED
IN THE SUPREME COURT TO RECOVER A  CIVIL  PENALTY;  AND  (D)  WHETHER  A
REFERRAL  SHOULD  BE MADE TO A DISTRICT ATTORNEY PURSUANT TO SUBDIVISION
ELEVEN OF THIS SECTION BECAUSE REASONABLE  CAUSE  EXISTS  TO  BELIEVE  A
VIOLATION  WARRANTING  CRIMINAL  PROSECUTION HAS TAKEN PLACE. THE DEPUTY
ENFORCEMENT COUNSEL SHALL HAVE THE OPPORTUNITY TO REVIEW THE ENTIRE FILE
OF ANY INVESTIGATION CONDUCTED BY THE ENFORCEMENT COUNSEL A  MINIMUM  OF
TEN  DAYS  PRIOR TO SAID REGULARLY SCHEDULED MEETING OF THE BOARD AND TO

S. 3584                            25

SUBMIT A PUBLIC, WRITTEN CONCURRENCE WITH OR DISSENT FROM  THE  ENFORCE-
MENT COUNSEL'S RECOMMENDATION.
  10.  THE  STATE  BOARD OF ELECTIONS SHALL ACCEPT, MODIFY OR REJECT THE
ENFORCEMENT COUNSEL'S RECOMMENDATION NO  LATER  THAN  SIXTY  DAYS  AFTER
RECEIPT  OF  SUCH RECOMMENDATION. IN MAKING ITS DETERMINATION, THE BOARD
SHALL AGAIN CONSIDER: (A) WHETHER THE COMPLAINT  ALLEGES  A  DE  MINIMUS
VIOLATION  OF  ARTICLE FOURTEEN OF THIS CHAPTER; (B) WHETHER THE SUBJECT
OF THE COMPLAINT HAS MADE A GOOD FAITH EFFORT TO CORRECT THE  VIOLATION;
AND  (C)  WHETHER  THE SUBJECT OF THE COMPLAINT HAS A HISTORY OF SIMILAR
VIOLATIONS. ALL SUCH DETERMINATIONS SHALL BE VOTED UPON AS  PROVIDED  IN
SUBDIVISION  FOUR  OF  SECTION  3-100  OF  THIS TITLE AT AN OPEN MEETING
PURSUANT TO ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW, AND SHALL BE  MADE
ON  A  FAIR  AND  EQUITABLE  BASIS,  WITHOUT REGARD TO THE STATUS OF THE
SUBJECT OF THE COMPLAINT.
  11. (A) IF THE STATE BOARD OF ELECTIONS  DETERMINES,  AS  PROVIDED  IN
SUBDIVISION  TEN  OF  THIS  SECTION,  THAT  SUBSTANTIAL REASON EXISTS TO
BELIEVE THAT A PERSON, ACTING AS OR ON BEHALF OF A  CANDIDATE  OR  POLI-
TICAL  COMMITTEE  UNDER CIRCUMSTANCES EVINCING AN INTENT TO VIOLATE SUCH
LAW, HAS UNLAWFULLY ACCEPTED A CONTRIBUTION IN EXCESS OF A  CONTRIBUTION
LIMITATION  ESTABLISHED IN ARTICLE FOURTEEN OF THIS CHAPTER, WHICH COULD
WARRANT A CIVIL PENALTY AS PROVIDED FOR IN SUBDIVISION THREE OF  SECTION
14-126  OF  THIS  CHAPTER,  THE BOARD SHALL DIRECT THE COMMENCEMENT OF A
SPECIAL PROCEEDING IN THE SUPREME COURT.
  (B) IF THE STATE BOARD OF ELECTIONS DETERMINES, AS PROVIDED IN  SUBDI-
VISION  TEN  OF  THIS  SECTION THAT REASONABLE CAUSE EXISTS TO BELIEVE A
VIOLATION WARRANTING CRIMINAL PROSECUTION HAS  TAKEN  PLACE,  THE  BOARD
SHALL  REFER  THE MATTER TO A DISTRICT ATTORNEY AND SHALL MAKE AVAILABLE
TO SUCH DISTRICT ATTORNEY ALL PAPERS, DOCUMENTS, TESTIMONY AND  FINDINGS
RELEVANT TO ITS INVESTIGATION.
  12.  UPON NOTIFICATION THAT A SPECIAL PROCEEDING HAS BEEN COMMENCED BY
A PARTY OTHER THAN THE STATE BOARD OF  ELECTIONS,  PURSUANT  TO  SECTION
16-114  OF  THIS  CHAPTER, THE STATE BOARD OF ELECTIONS SHALL DIRECT THE
ENFORCEMENT COUNSEL TO INVESTIGATE THE ALLEGED VIOLATIONS UNLESS  OTHER-
WISE DIRECTED BY THE COURT.
  13.  THE ENFORCEMENT COUNSEL SHALL PREPARE A REPORT, TO BE INCLUDED IN
THE ANNUAL REPORT TO  THE  GOVERNOR  AND  LEGISLATURE,  SUMMARIZING  THE
ACTIVITIES  OF  THE  UNIT  DURING  THE  PREVIOUS YEAR. SUCH REPORT SHALL
INCLUDE: (A) THE NUMBER  OF  COMPLAINTS  RECEIVED;  (B)  THE  NUMBER  OF
COMPLAINTS  THAT WERE FOUND TO NEED INVESTIGATION AND THE NATURE OF EACH
COMPLAINT; AND (C) THE NUMBER OF MATTERS THAT HAVE BEEN RESOLVED.    THE
REPORT  SHALL  NOT  CONTAIN  ANY INFORMATION FOR WHICH DISCLOSURE IS NOT
PERMITTED.
  14. The state board of elections may promulgate rules and  regulations
consistent with law to effectuate the provisions of this section.
  S  24. The state of New York shall appropriate during each fiscal year
to the New York state board of elections enforcement unit, not less than
thirty-five percent of the appropriation available from the general fund
for the state board of  elections  to  pay  for  the  expenses  of  such
enforcement unit.
  S  25.  Severability. If any clause, sentence, subdivision, paragraph,
section or part of title II of article 14 of the election law, as  added
by  section ten of this act be adjudged by any court of competent juris-
diction to be invalid, such judgment shall not affect, impair or invali-
date the remainder thereof, but shall be confined in  its  operation  to
the  clause,  sentence,  subdivision, paragraph, section or part thereof

S. 3584                            26

directly involved in the controversy in which such judgment  shall  have
been rendered.
  S  26.  This act shall take effect immediately; provided, however, all
state candidates and constitutional convention delegates will be  eligi-
ble  to  participate  in  the public financing system beginning with the
2015 election and state  legislature  candidates  will  be  eligible  to
participate  in  the  public  financing  system  beginning with the 2017
election.

Co-Sponsors

view additional co-sponsors

S3584A - Bill Details

Current Committee:
Law Section:
Election Law
Laws Affected:
Amd El L, generally; add §92-t, St Fin L; amd §658, Tax L
Versions Introduced in 2009-2010 Legislative Session:
S7506

S3584A - Bill Texts

view summary

Enacts the "2012 Campaign Finance Reform Act"; provides for optional partial public financing of certain election campaigns in this state; limits personal use of campaign funds; establishes certain contribution limits; requires identification of the source of certain political communications and provides for a state board of elections enforcement unit and counsel.

view sponsor memo
BILL NUMBER:S3584A

TITLE OF BILL:

An act
enacting the "2012 Campaign
Finance Reform Act";
to amend the election law,
the state finance law and the tax law, in relation to providing for
optional partial public financing of certain election campaigns in this
state; and to amend the election law, in relation to
limiting personal use of campaign funds, establishing certain
contribution limits,
identification of
the source of certain political communications
and providing for a state board of elections enforcement unit and
counsel

SUMMARY AND DESCRIPTION OF PROVISIONS:

PUBLIC FINANCING:

The bill adds a new Title II to Article 14 to provide for public
financing of primary and general election campaigns for statewide
office, primary, general and special election campaigns for state
legislative office and primary and general election campaigns for
constitutional convention delegates.

CRITERIA FOR PARTICIPATION:

To be eligible for public financing, a candidate for nomination or
election to a statewide office, state legislative office or as a
constitutional convention delegate must satisfy the legal
requirements for having his or her name on the ballot, elect to
participate in the public financing system, meet the threshold for
eligibility and agree to file required statements, authorize a single
participating committee; and identify the source of all campaign
material.

ELIGIBILITY THRESHOLD:

Governor: Must collect not less than $900,000 from at least 9,000
matchable contributions made up of sums of up to $250 per individual
contributor who resides in New York state.

Lt. Governor (primary only), Attorney Gen, & Comptroller: Must collect
not less than $300,000 from at least 3,000 matchable contributions
made up of sums of up to $250 per individual contributor who resides
in New York state.

Senate: Must collect not less than $25,000 from at least 250 matchable
contributions made up of sums of up to $250 per individual contributor
who resides in New York state including at least $12,500 from at least
125 individual contributors who reside in the senate district in
which the seat is to be filled.

Assembly: Must collect not less than $10,000 from at least 100
matchable contributions made up of sums of up to $250 per individual
contributor who resides in New York State including at least $5,000
from at least 50 individual contributors who reside in the assembly
district in which the seat is to be filled.

At-large Delegate to a Constitutional Convention: Must collect not
less than $25,000 from at least 250 matchable contributions made up
of sums of up to $250 per individual contributor who resides in New
York state.

District Delegate to a Constitutional Convention: Must collect not
less than $5,000 from at least 50 matchable contributions made up of
sums of up to $250 per individual contributor who resides in the
district in which the seat is to be filled.

Matchable Contributions: May be collected after January first of the
year of the primary or general election. For a special election, may
be collected up to six months before the election. Consist of the net
amount of contributions after deduction of the value of any food,
drink or entertainment provided in exchange for the contribution.
Only contributions from persons who reside in New York State are
matchable.

The Match: Eligible contributions up to $250 are matched at the rate
of $4 for every $1.

Triggers: If, however, a candidate who does not elect to receive
public funds raises, spends or contributes his or her own personal
funds in an amount greater than the expenditure limit established for
such office for candidates participating in the public financing
system, an additional grant of public funds is given to the
participating candidate.

Grants: A participating candidate may receive up to four grants
equaling 25% of the amount of public funds previously received by the
candidate as a match for matchable contributions obtained and
reported to the state board of elections. Each of the grants is added
to the original expenditure limit, effectively creating a new
TRIGGER for the next grant when the nonparticipating candidate
raises, spends or contributes his or her own personal funds in an
amount greater than the new expenditure limit.

Misc. Rules:
To receive public funds for a primary election, a participating

candidate must agree to receive public funding for the general
election.

Participating candidates who are unopposed in a primary election may
not receive public funds. Participating candidates whose opponents
don't raise or spend 10% of the expenditure limit are deemed unopposed.

Participating candidates that are unopposed may raise private funds of
up to 50% of the expenditure limit if there is a contest in the
primary for at least one other party for such office. Such funds may
only be raised with contributions of up to $2000 per contributor.

Candidates who are challenged in a primary and who do not seek public
funds are not eligible for public funds for the general election.

Candidates who are unopposed in a general or special election may not
receive public funds.

Permissible and Prohibited Uses of Public Funds: Public funds may be
used only for qualified campaign expenditures during the year of the
primary or general election. For a special election, such funds may
only be used in the three months prior to the election. They may not
be used for expenditures in violation of law, for payments to a
candidate or to a relative of the candidate (or to any business
entity of which such a person is an officer or employee or has a ten
percent or greater ownership interest), for payments in excess of
fair market value, for any expenditure after the candidate or the
candidate's only remaining opponent has been disqualified (until and
unless reversed), to challenge an opponent's petitions or
certificates, for non-campaign related food, drink or entertainment,
or for gifts (except brochures, buttons, signs and other campaign
material).

Contribution Limit: All candidates who choose to participate in the
public financing system have a contribution limit of $2,000 per
contributor.

Expenditure Limits: The following expenditure limits apply to all
candidates who participate in the public financing system:

General Election Primary

$12,000,000 $1.1 per
enrolled voter or
$600,000, whichever
is more, but not to
exceed $6,000,000

Lt. Governor --- $1.1 per enrolled
voter or $300,000,
whichever is more,
but not to exceed

$3,000,000

Attorney General & $ 8,000,000 Same as Lt.
Governor
Comptroller

State Senator $ 375,000 $2.50 per enrolled
whichever is more,
but not to exceed
$350,000

Member of Assembly $ 150,000 $2.50 per enrolled
voter or $15,000
whichever is more,
but not to exceed
$150,000

At-Large Delegate $ 350,000 $.15 per enrolled
voter or $75,000,
whichever is more,
but not to exceed
$175,000

District Delegate $ 75,000 $1.10 per enrolled
voter in the district
or $5,000, whichever
is more, but not to
exceed $50,000

Party Expenditures in Support of participating Candidates: Notwith-
standing the expenditure limits for participating candidates, state
party committees may make the following expenditures for services to
participating candidates:

Gov. and Lt. Gov. $2,500,000
Att. Gen or Comp. $1,000,000
Senate $ 100,000
State Assembly $ 50,000
At-large Delegate $ 50,000
District Delegate $ 10,000

* Transfers to a participating candidate may constitute up to 25% of
such party expenditures.

Tax Check-off: The bill provides an income tax check-off of $5. Such
monies would be paid into a separate fund, known as the New York
State Campaign Finance Fund. The taxpayers' tax liability would not
be affected by making this designation. If the state campaign finance
fund lacks the money to pay all properly certified claims, the
deficiency will be paid from the general fund.

TITLE I

The bill amends Article 14 of the election law to designate the
existing law Title I, and adds the following:

* Identification of Independent Political Communications: The bill
requires all independent political communications that expressly
advocate for the election or defeat of a candidate or the Success or
defeat of a ballot proposal to identify the source of the funding for
such communication.

* Independent Expenditures: The bill requires reporting of independent
expenditures that cost more than $1000 and expressly advocates for
the election or defeat of a clearly identified candidate or the
success or defeat of a ballot proposal. Independent expenditures made
after the last filing before an election must be reported within 24
hours.

* The bill adds an identification requirement for independent
political communications, a filing requirement for independent
expenditures and a requirement that certain candidates disclose their
intent to spend personal funds in a campaign.

* Lowering Contribution Limits: The bill sets contribution limits for
campaigns for statewide office or citywide office in New York City at
$2,400 for candidates for election and $2,400 for candidates for
nomination (or between $2,000 and $6,000 for minor party candidates,
based on an existing formula that is unchanged by this bill). The
bill would set campaign contribution limits for candidates for State
Senate and State Assembly at $2,400 per election (or a total of
$4,800 for a primary and general election cycle), the current federal
level. This bill would not affect local laws currently in place in
New York City, which currently set limits for citywide candidates
that are lower than the limits in state law.

* Disclosure of the Intent to Use Personal Funds: Within 3 days of the
last day to file designating petitions, all candidates for statewide
office, state legislative office or constitutional convention
delegate must file a statement with the state board of elections
disclosing whether the candidate has or will contribute personal
funds to his or her committee and estimating the amount of such funds.

* Personal Use of Campaign Funds: Delineates how candidates for
elected office can and cannot use their campaign funds, establish
rules and methods for the disposal of excess campaign funds and for
the timing of such disposal, require that they specifically detail
campaign contributions by lobbyists and prohibit the soliciting or
receiving of contribution for campaigns for state or federal office
by senior policy makers in the executive and legislative branch.

* Campaign Finance Enforcement: The bill codifies an enforcement unit
within the State Board of Elections (SBOE) with a mandate that at

least 35 percent of the SBOE's annual budget be dedicated to the unit
to promote increased enforcement of campaign finance laws.

The bill expands the jurisdiction of the enforcement unit and promote
the independence of the enforcement counsel by making the office a 4
year term, and the office of special counsel, the other legal unit at
the SBOE, a four-year term and codifies the requirement that the
deputy in each unit be a member of the opposite political party than
the counsel.

The bill changes the way that campaign finance enforcement matters are
processed at the SBOE by requiring three of the four SBOE
commissioners to vote to stop an investigation by the enforcement
counsel, rather than requiring, as current law does, three votes to
begin an investigation.

The bill mandates that all votes to stop an investigation, or to act
on the recommendation of the enforcement counsel after an
investigation, Occur in public, as currently all discussion and all
determinations made regarding campaign finance enforcement matters
Occur in executive session and not in public.

Penalties:

TITLE I

The knowing and willful failure to identify the source of independent
expenditures will subject the person or entity to a civil fine equal
to $1000 or the cost of the communication, whichever is greater.

A failure to file the statements required for an independent
expenditure shall subject the person or entity to a civil fine of $500.

A knowing and willful failure to file the statement required regarding
the use of personal funds in a campaign shall subject the candidate
to a civil fine of up to $5000.

TITLE II

The failure to make proper campaign finance filings, as required by
Title II and rules and regulations promulgated thereunder, shall
subject the offender to a civil penalty of up to $5000.

If a participating candidate's aggregate expenditures exceed the
expenditure limitations, the candidate is liable for a civil penalty
in an amount equal to three times the amount of the excess.

LEGISLATIVE HISTORY:
2010: A.10927/S.7506 - Held in Elections

JUSTIFICATION:

PUBLIC FINANCING:

This bill provides a comprehensive yet balanced approach to the public
financing of political campaigns. It contains significant but
realistic limitations on expenditures and contribution receipts, a
means for recovering public funds when they are unspent, excessive
or used for prohibited purposes, and penalties for violations of the
filing requirements or the expenditure limitations for participants.

The hybrid "matching plus grant" structure of the program has several
advantages. It will reduce the amount of time a candidate must spend
raising money, leaving more time to address the issues that are
important to the public. The matching component allows for
participation by private citizens throughout the campaign while also
conserving resources by ensuring that only candidates who can show
substantial voter support and face opposition will be eligible to
receive public funds. The grant components, containing four separate
triggers, allow candidates that are outspent to remain competitive
without giving a participating candidate an unnecessary windfall.

The identification requirement for independent political
communications, the filing requirement for independent expenditures
and the requirement that candidates disclose their intent to spend
personal funds in a campaign provide both participants and
nonparticipants with a more transparent and fairer political dynamic.
The opportunity for party committees to make limited expenditures in
support of participating candidates provides flexibility to both the
candidates and the parties.

Overall, the bill strikes a balance that allows challengers and
incumbents to compete fairly while capping the amount of public funds
that will be expended.

CONTRIBUTION LIMITS FOR NON-PARTICIPATING CANDIDATES:

Presently a single contributor may give up to $55,900 to a candidate
during a single election cycle ($18,100 for the primary and $37,800
for the general election). This figure is the highest among any of
the 45 states that place limits on campaign contributions. It is
important that the legislature take steps to reduce the excessive
contributions currently permitted by law.

PERSONAL USE OF CAMPAIGN FUNDS:

This bill addresses a number of concerns with how campaign funds are
raised and expended. Currently, New York's election law, allowing
candidates to spend campaign funds for "any lawful purpose," is
among the most lax in the nation. While spending campaign funds for
personal use is technically prohibited, the lack of any definition
for what constitutes a personal use renders the provision
meaningless. This
shortcoming in the law is striking when compared to the detailed

restrictions issued by the Federal Election Commission. And when it
is combined with the provision that allows elected officials to
retain campaign funds for any use related to the holding of public
office, it gives legislators virtual carte blanche for expenditures
that are, at best, tangentially related to their campaigns and
official duties.

Examples of successful, unsuccessful or former candidates using excess
campaign funds for luxury vehicles, sky boxes, extravagant meals,
international travel and home improvements have regularly appeared in
newspapers across the state. There is a growing and justifiable
public perception that campaign funds are being used to enhance the
post election lifestyles of candidates for public office. Such
largesse turns the ideal of representatives serving the public on its
head.

Campaign donors have a reasonable expectation that their contributions
will be used for the candidate's election efforts and the execution
of his or her duties. They do not expect their contributions to
subsidize personal spending. This legislation addresses these abuses
while preserving elected officials' ability to fund the legitimate
work of their offices.

By adding a detailed list, both in generalities and specific examples,
to the current language, the line as to what can and cannot be done
is brightly drawn. In addition to the obvious need to spend campaign
funds on campaigns, the expanded definition makes it clear that
expenditures related to holding public office are restricted to those
costs that would not otherwise be incurred if an individual was a
private citizen.

In addition, the bill sets limits on how long campaign committees can
be maintained by former candidates. Reports of committees continuing
years after campaigns were ended are all too common. By setting time
limits and also specifying how excess funds can be disbursed, this
abuse will be eliminated.

The bill also requires campaign committees to identify contributions
from registered lobbyists. This is in response to concerns that
recent changes in the interpretation of what constitutes an illegal
gift by the commission will result in the use of campaign funds from
lobbyists in place of the prohibited gifts from lobbyists. Coupled
with the more stringent standard for the personal use of campaign
funds, the detailing of lobbyists contributions will make it all
the more difficult to justify such expenditures.

Finally the bill prohibits the soliciting or receiving of
contributions for a campaign for state or federal office while in a
senior policy position in the legislative or executive branch. This
is in response to the recent disclosure that the head of an executive
agency who acknowledged that he was not a candidate for any office,
continued to raise and spend campaign funds to enhance his life style.

To engage in such actions while overseeing an industry which is
actively and at great expense lobbies state government, at the very
least gives the impression that favorable decisions were being sold
and, true or not, feeds public cynicism. The legislation, again in
conjunction with the new, more clearly delineated limits on the use
of campaign funds, prohibits such misuse of campaign funds.

STRENGTHENED CAMPAIGN FINANCE ENFORCEMENT:

To promote increased enforcement of campaign finance reform laws, the
legislation creates an enforcement unit within the New York State
Board of Elections (BOE). Additionally, it expands the jurisdiction
of the enforcement unit and promotes the independence of the
enforcement counsel by making the office a four-year term.

The bill also requires that at least 35% of the annual State Board of
Elections budget go toward paying the expenses of the enforcement unit.

FISCAL IMPLICATIONS:
There would be no cost in 2011, 2012 and 2013.
In 2014, there could be costs associated with participating candidates
seeking election to a statewide office and constitutional delegate.
There will be no cost in 2015. In 2016, there could be costs
associated with participating candidates seeking election to state
legislative office. There would be no cost in 2017. In 2018, there
could be costs associated with participating candidates seeking
election to a statewide office, state legislative office and
constitutional delegate. Other states that have public financing
systems in place have had very low participation rates at first, with
increasing participation in later elections. The long-term cost of
the system in New York is unknown.

EFFECTIVE DATE:
This act takes effect immediately; provided, however,
that all statewide candidates and constitutional delegates will be
eligible to participate in 2015 and state legislative candidates will
be eligible to participate in 2017.

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

                                 3584--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 28, 2011
                               ___________

Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Elections  --  recommitted
  to the Committee on Elections in accordance with Senate Rule 6, sec. 8
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT enacting the "2012 Campaign Finance Reform  Act";  to  amend  the
  election  law,  the  state finance law and the tax law, in relation to
  providing for optional partial public financing  of  certain  election
  campaigns in this state; and to amend the election law, in relation to
  limiting personal use of campaign funds, establishing certain contrib-
  ution limits, identification of the source of certain political commu-
  nications  and  providing  for  a state board of elections enforcement
  unit and counsel

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

  Section  1.  Short title.  This act shall be known and may be cited as
the "2012 Campaign Finance Reform Act".
  S 2. Legislative findings and declaration.   The legislature  declares
that it is in the public interest to create and ensure a truly democrat-
ic  political  system  in  which citizens, irrespective of their income,
status, or financial connections, are enabled and encouraged to  compete
for  public  office.  Therefore,  the  legislature finds it necessary to
establish a system of public financing for all qualified candidates  for
state elective offices and constitutional convention delegates.
  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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04571-02-1

S. 3584--A                          2

  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  section  2  of
part  E  of  chapter  399  of  the  laws  of 2011, is amended to read as
follows:
  S 14-106. Political communication. The statements required to be filed
under the provisions of this [article] TITLE next succeeding a  primary,
general or special election shall be accompanied by a copy of all broad-
cast,  cable  or  satellite  schedules  and scripts, internet, print and
other types of advertisements, pamphlets, circulars, flyers,  brochures,
letterheads  and other printed matter purchased or produced, AND REPROD-
UCTIONS OF STATEMENTS OR INFORMATION CONVEYED TO FIVE  HUNDRED  OR  MORE
MEMBERS  OF  A  GENERAL  PUBLIC AUDIENCE BY COMPUTER OR OTHER ELECTRONIC
MEANS, purchased in connection  with  such  election  by  or  under  the
authority  of  the  person  filing the statement or the committee or the
person on whose behalf it is filed, as the case  may  be.  Such  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 6. 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
TITLE:
  (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
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.

S. 3584--A                          3

  (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, CORPORATION OR ASSOCIATION.
  2. WHENEVER ANY PERSON MAKES ONE OR MORE INDEPENDENT EXPENDITURES THAT
IN THE AGGREGATE EXCEEDS ONE THOUSAND DOLLARS IN ANY CALENDAR YEAR, SUCH
COMMUNICATION DESCRIBED IN SUBDIVISION ONE OF THIS SECTION SHALL CLEARLY
STATE, WITH RESPECT TO COMMUNICATIONS  REGARDING  CANDIDATES,  THAT  THE
COMMUNICATION  IS NOT AUTHORIZED BY ANY CANDIDATE, ANY CANDIDATE'S POLI-
TICAL 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  COMMUNI-
CATION,  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 IN THE MANNER SPECIFIED IN
SECTION 14-108 OF THIS TITLE.
  (B) ANY INDEPENDENT EXPENDITURE MADE AFTER THE CLOSE OF THE PERIOD  TO
BE  COVERED  IN  THE LAST STATEMENT FILED BEFORE ANY PRIMARY, GENERAL OR
SPECIAL 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 TITLE.
  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.
  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.

S. 3584--A                          4

  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 7. 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] TITLE, either a sworn verified statement by the
treasurer of such committee that the candidate has authorized the  poli-
tical  committee  to aid or take part in his election or that the candi-
date 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 STATEWIDE OFFICE, STATE LEGISLATIVE OFFICE OR
CONSTITUTIONAL CONVENTION DELEGATE 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 CONTRIBUTED  OR
TO  BE CONTRIBUTED.   THE KNOWING AND WILLFUL FAILURE TO FILE THE STATE-
MENT REQUIRED BY THIS SUBDIVISION SHALL SUBJECT THE CANDIDATE TO A CIVIL
PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS IN A SPECIAL  PROCEEDING  OR
CIVIL ACTION BROUGHT BY THE STATE BOARD OF ELECTIONS.
  S  8.  Section  14-126 of the election law, as amended by section 3 of
part E of chapter 399 of the  laws  of  2011,  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] TITLE shall be  subject
to  a civil penalty, not in excess of one thousand dollars, to be recov-
erable in a special proceeding or civil action  to  be  brought  by  the
state  board  of  elections or other board of elections. Any person who,
three or more times within a given  election  cycle  for  such  term  of
office,  fails to file a statement or statements required to be filed by
this [article] TITLE, shall be subject to a civil penalty, not in excess
of ten thousand dollars, to be  recoverable  as  provided  for  in  this
subdivision.
  2.  ANY PERSON WHO KNOWINGLY AND WILLFULLY FAILS TO IDENTIFY INDEPEND-
ENT  EXPENDITURES  AS  REQUIRED  BY SUBDIVISION TWO OF SECTION 14-107 OF
THIS TITLE OR KNOWINGLY  AND  WILLFULLY  FAILS  TO  FILE  THE  STATEMENT
REQUIRED  BY  SUBDIVISION  TWO  OF SECTION 14-112 OF THIS TITLE SHALL BE
SUBJECT TO A CIVIL PENALTY IN  A  SPECIAL  PROCEEDING  OR  CIVIL  ACTION
BROUGHT BY THE STATE BOARD OF ELECTIONS.
  3.  Any person who, acting as or on behalf of a candidate or political
committee, under circumstances evincing an intent to violate  such  law,
unlawfully accepts a contribution in excess of a contribution limitation
established  in  this  [article] TITLE, shall be required to refund such
excess amount and shall be subject to  a  civil  penalty  equal  to  the
excess amount plus a fine of up to ten thousand dollars, to be recovera-
ble  in  a special proceeding or civil action to be brought by the state
board of elections.
  [3.] 4. Any person who knowingly and willfully fails to file a  state-
ment  required to be filed by this [article] TITLE within ten days after

S. 3584--A                          5

the date provided for filing such statement or any person who  knowingly
and willfully violates any other provision of this [article] TITLE shall
be guilty of a misdemeanor.
  [4.] 5. 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] TITLE  shall
be guilty of a misdemeanor.
  [5.] 6. 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 [arti-
cle] TITLE, shall be guilty of a class E felony.
  S 9. Sections 14-100 through 14-132 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 10. 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 ANY OF THE  OFFICES  OF  GOVERNOR,  LIEUTENANT  GOVERNOR,
COMPTROLLER, ATTORNEY GENERAL, MEMBER OF THE STATE LEGISLATURE, AT-LARGE
DELEGATE  TO  A  CONSTITUTIONAL  CONVENTION  OR  DISTRICT  DELEGATE TO A
CONSTITUTIONAL CONVENTION.
  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, GENERAL
OR  SPECIAL ELECTION IS HELD FOR THE PUBLIC OFFICE SOUGHT.  A MULTI-CAN-
DIDATE 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 (A) 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 OR (B) IN THE CASE OF A
SPECIAL  ELECTION, WITHIN SIX MONTHS OF SUCH ELECTION BY NATURAL PERSONS
RESIDENT IN THE STATE OF NEW YORK  TO  A  CANDIDATE  FOR  NOMINATION  OR
ELECTION  TO  ANY OF THE OFFICES COVERED BY THE PROVISIONS OF THIS TITLE
WHICH DO NOT EXCEED TWO HUNDRED FIFTY DOLLARS, WHICH HAVE BEEN  REPORTED

S. 3584--A                          6

IN  FULL  BY THE CANDIDATE'S PARTICIPATING COMMITTEE TO THE STATE BOARD,
INCLUDING THE CONTRIBUTOR'S FULL NAME AND RESIDENTIAL ADDRESS.  "MATCHA-
BLE  CONTRIBUTIONS" 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 COMMIT-
TEE 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 SUCH A PAYMENT OR THING OF VALUE SHALL NOT BE MATCHA-
BLE.  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 STATEWIDE  OFFICE,  THE  STATE  LEGISLATURE  OR
DELEGATE TO A CONSTITUTIONAL CONVENTION AT A PRIMARY, GENERAL OR SPECIAL
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  OR,  IN  THE
CASE OF A SPECIAL ELECTION, NOT LATER THAN THE LAST DAY TO FILE NOMINAT-
ING CERTIFICATES FOR SUCH OFFICE;
  (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 CANDIDATES  IN
A  PRIMARY,  GENERAL OR SPECIAL ELECTION FOR THE FOLLOWING OFFICES SHALL
BE:
  (A) GOVERNOR IN A PRIMARY OR GENERAL  ELECTION.  NOT  LESS  THAN  NINE
HUNDRED  THOUSAND DOLLARS FROM AT LEAST NINE THOUSAND MATCHABLE CONTRIB-
UTIONS MADE UP OF SUMS OF UP TO TWO HUNDRED FIFTY DOLLARS PER INDIVIDUAL
CONTRIBUTOR WHO RESIDES IN NEW YORK STATE.
  (B) LIEUTENANT GOVERNOR IN  A  PRIMARY  ELECTION  AND  COMPTROLLER  OR
ATTORNEY  GENERAL IN A PRIMARY OR GENERAL ELECTION.  NOT LESS THAN THREE
HUNDRED THOUSAND DOLLARS FROM AT LEAST THREE THOUSAND MATCHABLE CONTRIB-
UTIONS MADE UP OF SUMS OF UP TO TWO HUNDRED FIFTY DOLLARS PER INDIVIDUAL
CONTRIBUTOR WHO RESIDES IN NEW YORK STATE.

S. 3584--A                          7

  (C) MEMBERS OF THE STATE SENATE  IN  A  PRIMARY,  GENERAL  OR  SPECIAL
ELECTION.  NOT  LESS THAN TWENTY-FIVE THOUSAND DOLLARS FROM AT LEAST TWO
HUNDRED FIFTY MATCHABLE CONTRIBUTIONS MADE UP  OF  SUMS  OF  UP  TO  TWO
HUNDRED FIFTY DOLLARS PER INDIVIDUAL CONTRIBUTOR WHO RESIDES IN NEW YORK
STATE  INCLUDING  AT  LEAST TWELVE THOUSAND FIVE HUNDRED DOLLARS FROM AT
LEAST ONE HUNDRED TWENTY-FIVE INDIVIDUAL CONTRIBUTORS WHO RESIDE IN  THE
SENATE DISTRICT IN WHICH THE SEAT IS TO BE FILLED.
  (D) MEMBERS OF THE ASSEMBLY IN A PRIMARY, GENERAL OR SPECIAL ELECTION.
NOT  LESS  THAN TEN THOUSAND DOLLARS FROM AT LEAST ONE HUNDRED MATCHABLE
CONTRIBUTIONS MADE UP OF SUMS OF UP TO TWO  HUNDRED  FIFTY  DOLLARS  PER
INDIVIDUAL  CONTRIBUTOR WHO RESIDES IN NEW YORK STATE INCLUDING AT LEAST
FIVE THOUSAND DOLLARS FROM AT LEAST FIFTY INDIVIDUALS WHO RESIDE IN  THE
ASSEMBLY DISTRICT IN WHICH THE SEAT IS TO BE FILLED.
  (E)  AT-LARGE  DELEGATE TO A CONSTITUTIONAL CONVENTION IN A PRIMARY OR
GENERAL ELECTION. NOT LESS THAN TWENTY-FIVE  THOUSAND  DOLLARS  FROM  AT
LEAST TWO HUNDRED FIFTY MATCHABLE CONTRIBUTIONS MADE UP OF SUMS OF UP TO
TWO  HUNDRED FIFTY DOLLARS PER INDIVIDUAL CONTRIBUTOR WHO RESIDES IN NEW
YORK STATE.
  (F) DISTRICT DELEGATE TO A CONSTITUTIONAL CONVENTION IN A  PRIMARY  OR
GENERAL  ELECTION.  NOT  LESS  THAN  FIVE THOUSAND DOLLARS FROM AT LEAST
FIFTY MATCHABLE CONTRIBUTIONS MADE UP OF SUMS OF UP TO TWO HUNDRED FIFTY
DOLLARS PER INDIVIDUAL CONTRIBUTOR WHO RESIDES IN THE DISTRICT IN  WHICH
THE SEAT IS TO BE FILLED.
  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.  THE  PROVISIONS OF THIS SUBDIVISION SHALL NOT
APPLY TO CANDIDATES FOR THE OFFICE OF LIEUTENANT GOVERNOR.
  5. CANDIDATES WHO ARE UNOPPOSED IN A GENERAL OR SPECIAL ELECTION SHALL
NOT BE ELIGIBLE TO RECEIVE PUBLIC FUNDS.
  6. NO CANDIDATE FOR ELECTION TO AN OFFICE IN  A  PRIMARY,  GENERAL  OR
SPECIAL  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 CANDIDATE'S COMMIT-
TEE, 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  COMMITTEE  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  AN  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. 3584--A                          8

  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  OR,
IN  THE  CASE  OF A SPECIAL ELECTION, FOR EXPENDITURES DURING THE PERIOD
COMMENCING THREE MONTHS BEFORE AND ENDING ONE MONTH AFTER  SUCH  SPECIAL
ELECTION.  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 PRIMARY, GENERAL  AND  SPECIAL  ELECTIONS  MAY
OBTAIN PAYMENT TO A PARTICIPATING COMMITTEE FROM PUBLIC FUNDS FOR QUALI-
FIED  CAMPAIGN  EXPENDITURES.  NO  SUCH  PUBLIC FUNDS SHALL BE PAID TO A
PARTICIPATING 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
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

S. 3584--A                          9

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
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.

S. 3584--A                         10

  (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,
SPECIAL OR GENERAL ELECTION FOR ANY STATEWIDE OFFICE, STATE  LEGISLATIVE
OFFICE  OR  CONSTITUTIONAL CONVENTION DELEGATE NO CONTRIBUTOR MAY MAKE A
CONTRIBUTION TO ANY PARTICIPATING CANDIDATE OR SUCH CANDIDATE'S  PARTIC-
IPATING  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 GOVERNOR OR LIEUTENANT GOVERNOR IN A PRIMARY
OR GENERAL ELECTION OR  SUCH  CANDIDATE'S  PARTICIPATING  COMMITTEE  MAY
ACCEPT  FROM  A STATE PARTY COMMITTEE WHICH HAS NOMINATED SUCH CANDIDATE

S. 3584--A                         11

SERVICES IN AN AMOUNT WHICH, IN  THE  AGGREGATE,  DOES  NOT  EXCEED  TWO
MILLION   FIVE   HUNDRED   THOUSAND  DOLLARS;  PROVIDED,  HOWEVER,  THAT
TWENTY-FIVE PERCENT OF SUCH AMOUNT MAY BE ACCEPTED  IN  THE  FORM  OF  A
TRANSFER.
  (B)  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 ATTORNEY GENERAL OR 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.
  (C)  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  SENATOR  IN  A PRIMARY, GENERAL OR
SPECIAL 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
HUNDRED THOUSAND DOLLARS; PROVIDED, HOWEVER, THAT TWENTY-FIVE PERCENT OF
SUCH AMOUNT MAY BE ACCEPTED IN THE FORM OF A TRANSFER.
  (D)  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 MEMBER OF THE ASSEMBLY IN A PRIMARY, GENERAL
OR  SPECIAL  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 FIFTY
THOUSAND DOLLARS; PROVIDED, HOWEVER, THAT TWENTY-FIVE  PERCENT  OF  SUCH
AMOUNT MAY BE ACCEPTED IN THE FORM OF A TRANSFER.
  (E)  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  DELEGATE  AT-LARGE  TO  A  CONSTITUTIONAL
CONVENTION IN A  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  FIFTY  THOUSAND  DOLLARS;  PROVIDED,  HOWEVER,  THAT TWENTY-FIVE
PERCENT OF SUCH AMOUNT MAY BE ACCEPTED IN THE FORM OF A TRANSFER.
  (F) 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  DISTRICT  DELEGATE  TO  A  CONSTITUTIONAL
CONVENTION  IN  A  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 TEN THOUSAND DOLLARS; PROVIDED, HOWEVER, THAT TWENTY-FIVE PERCENT
OF SUCH AMOUNT MAY BE ACCEPTED IN THE FORM OF A TRANSFER.
  (G) 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  STATEWIDE
OFFICE  OR  STATE  LEGISLATIVE  OFFICE, INCLUDING WITHIN THE TERM COUNTY
COMMITTEE ANY OF ITS SUBCOMMITTEES, MAY EXPEND IN SUPPORT OF  EACH  SUCH
CANDIDATE  FOR  STATEWIDE  OFFICE 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

S. 3584--A                         12

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 OR, IN THE
CASE OF A SPECIAL ELECTION RECEIVED MORE  THAN  SIX  MONTHS  BEFORE  THE
SPECIAL  ELECTION,  MAY  NOT  BE  EXPENDED  IN ANY ELECTION FOR ANY SUCH
OFFICE.
  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
PARTICIPATING  COMMITTEES  RECEIVING  PUBLIC  FUNDS  PURSUANT   TO   THE
PROVISIONS OF THIS TITLE:
  1.  (A)  IN ANY PRIMARY ELECTION, EXPENDITURES BY PARTICIPATING CANDI-
DATES AND BY THEIR PARTICIPATING COMMITTEES SHALL NOT EXCEED:
  (I) FOR GOVERNOR, 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 NINE HUNDRED THOUSAND DOLLARS NOR  MORE  THAN
NINE MILLION DOLLARS;
  (II) FOR LIEUTENANT GOVERNOR, COMPTROLLER OR ATTORNEY GENERAL, 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;
  (III)  FOR  SENATOR,  THE  SUM OF TWO DOLLARS AND FIFTY CENTS FOR EACH
VOTER  ENROLLED  IN  THE  CANDIDATE'S  PARTY  IN  THE  SENATE  DISTRICT;
PROVIDED,  HOWEVER, SUCH SUM SHALL NOT BE LESS THAN THIRTY-FIVE THOUSAND
DOLLARS NOR MORE THAN THREE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS;
  (IV) FOR MEMBER OF THE ASSEMBLY, THE SUM  OF  TWO  DOLLARS  AND  FIFTY
CENTS  FOR  EACH VOTER ENROLLED IN THE CANDIDATE'S PARTY IN THE ASSEMBLY
DISTRICT; PROVIDED, HOWEVER, SUCH SUM SHALL NOT  BE  LESS  THAN  FIFTEEN
THOUSAND DOLLARS NOR MORE THAN ONE HUNDRED FIFTY THOUSAND DOLLARS;
  (V)  FOR  AT-LARGE DELEGATE TO A CONSTITUTIONAL CONVENTION, THE SUM OF
FIFTEEN CENTS FOR EACH VOTER ENROLLED IN THE CANDIDATE'S  PARTY  IN  THE
STATE;  PROVIDED,  HOWEVER, SUCH SUM SHALL NOT BE LESS THAN SEVENTY-FIVE

S. 3584--A                         13

THOUSAND  DOLLARS  NOR  MORE  THAN  ONE  HUNDRED  SEVENTY-FIVE  THOUSAND
DOLLARS;
  (VI) FOR DISTRICT DELEGATES TO A CONSTITUTIONAL CONVENTION, THE SUM OF
ONE  DOLLAR  AND  TEN  CENTS  FOR EACH VOTER ENROLLED IN THE CANDIDATE'S
PARTY IN THE DISTRICT; PROVIDED, HOWEVER, SUCH SUM  SHALL  NOT  BE  LESS
THAN FIVE THOUSAND DOLLARS NOR MORE THAN FIFTY THOUSAND 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 OR SPECIAL ELECTION, EXPENDITURES BY  PARTICIPATING
CANDIDATES  FOR THE FOLLOWING OFFICES AND BY THEIR PARTICIPATING COMMIT-
TEES SHALL NOT EXCEED THE FOLLOWING AMOUNTS:
  CANDIDATES FOR ELECTION TO THE OFFICE OF:
  GOVERNOR AND LIEUTENANT GOVERNOR (COMBINED)                $12,000,000
  ATTORNEY GENERAL                                           $8,000,000
  COMPTROLLER                                                $8,000,000
  MEMBER OF SENATE                                           $375,000
  MEMBER OF ASSEMBLY                                         $150,000
  DELEGATE AT-LARGE TO A CONSTITUTIONAL CONVENTION           $350,000
  DISTRICT DELEGATE TO A CONSTITUTIONAL CONVENTION           $75,000
  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

S. 3584--A                         14

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.
  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 11. 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

S. 3584--A                         15

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.
  S 12. The election law is amended by adding a  new  section  4-115  to
read as follows:
  S  4-115. NOTICE TO THE STATE BOARD OF ELECTIONS OF CANDIDATES FOR THE
LEGISLATURE. 1. EACH BOARD OF ELECTIONS WITH WHICH PETITIONS  ARE  FILED
FOR MEMBER OF THE STATE LEGISLATURE SHALL, NOT LATER THAN ONE WEEK AFTER
THE  LAST  DAY TO FILE SUCH PETITIONS, SEND NOTICE TO THE STATE BOARD OF
ELECTIONS OF SUCH INFORMATION ABOUT EACH  SUCH  PETITION  AS  THE  STATE
BOARD SHALL REQUIRE.
  2.  EACH  SUCH COUNTY BOARD OF ELECTIONS SHALL, NOT LATER THAN THE DAY
AFTER THE LAST DAY TO FILE A PETITION OR CERTIFICATE OF NOMINATION FOR A
GENERAL OR SPECIAL ELECTION OR A CERTIFICATE OF ACCEPTANCE,  DECLINATION
OR  SUBSTITUTION FOR A GENERAL, PRIMARY OR SPECIAL ELECTION FOR ANY SUCH
OFFICE, SEND TO THE STATE BOARD OF ELECTIONS SUCH INFORMATION ABOUT EACH
SUCH PETITION OR CERTIFICATE AS THE STATE BOARD SHALL REQUIRE.
  3. IF ANY SUCH COUNTY BOARD OF ELECTIONS SHOULD  DISQUALIFY  ANY  SUCH
CANDIDATE  OR RULE THE PETITION OR CERTIFICATE DESIGNATING OR NOMINATING
ANY SUCH CANDIDATE INVALID, IT SHALL FORTHWITH NOTIFY THE STATE BOARD OF
ELECTIONS OF SUCH DECISION.
  4. IF ANY SUCH COUNTY BOARD OF ELECTIONS SHALL BE NOTIFIED OF A  DECI-
SION  OF A COURT OF COMPETENT JURISDICTION DISQUALIFYING ANY SUCH CANDI-
DATE OR DECLARING ANY SUCH PETITION INVALID OR REVERSING ANY SUCH  DECI-
SION  BY  SUCH  BOARD  OF  ELECTIONS  OR  ANOTHER  COURT,  SUCH BOARD OF
ELECTIONS SHALL FORTHWITH NOTIFY THE STATE BOARD OF  ELECTIONS  OF  SUCH
DECISION.
  5.  THE  STATE  BOARD OF ELECTIONS MAY PRESCRIBE FORMS FOR THE NOTICES
REQUIRED BY THIS SECTION AND SHALL PRESCRIBE THE MANNER  IN  WHICH  SUCH
NOTICES SHALL BE GIVEN.
  S 13. 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

S. 3584--A                         16

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 SEVENTEEN, 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 CANDIDATES IN  A
SPECIAL  ELECTION  ANY  EARLIER  THAN THE DAY AFTER THE LAST DAY TO FILE
CERTIFICATES OF PARTY NOMINATION FOR SUCH SPECIAL ELECTION.
  9. 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 14. 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  TWELVE,
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
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 TWELVE, 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. 3584--A                         17

  S  15.  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 two members of the
state  board  of  elections  who rotate as chairperson of the board. 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 2012 Campaign Finance Reform Act. The
panel shall report to the governor and the legislature on March 31, 2014
and on March 31, 2016. The report  shall  include:  (a)  the  number  of
candidates  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 financ-
ing  and  their expenditures in future elections; (b) an analysis of the
effect of the 2012 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 2012
Campaign Finance Reform Act as it deems appropriate.
  S  16.  Subdivision 9 of section 14-100 of the election law is amended
by adding a new paragraph 4 to read as follows:
  (4) THE TERM "CONTRIBUTION" DOES NOT INCLUDE EXPENDITURES  BY  A  BONA
FIDE  MEMBERSHIP  ORGANIZATION IN SUPPORT OF THE FOLLOWING ACTIVITIES BY
MEMBERS OF THE ORGANIZATION WHO ARE VOLUNTEERING THEIR TIME ON BEHALF OF
A CANDIDATE, NOT TO EXCEED TWENTY-FIVE DOLLARS  PER  MEMBER  WHO  VOLUN-
TEERS,  FOR:  TRANSPORTATION  OF  VOLUNTEERS TO AND FROM CAMPAIGN ACTIV-
ITIES; COST OF FEEDING VOLUNTEERS WHILE VOLUNTEERING FOR  THE  CAMPAIGN;
AND  MATERIALS  SUCH  AS BADGES AND CLOTHING THAT IDENTIFIES THE NAME OF
THE ORGANIZATION AND/OR CANDIDATE.
  S 17. Paragraphs a and b of subdivision 1 of  section  14-114  of  the
election law, as amended by chapter 659 of the laws of 1994, are amended
to read as follows:
  a. In any election for a public office to be voted on by the voters of
the  entire  state, or for nomination to any such office, no contributor
may make a contribution to any candidate or political committee, and  no
candidate  or  political  committee may accept any contribution from any
contributor, which is in the aggregate amount greater than:  (i) in  the
case of any nomination to public office, the product of the total number
of  enrolled  voters  in  the  candidate's party in the state, excluding
voters in inactive status, multiplied by $.005, but such amount shall be
not [less] MORE than [four] TWO thousand FOUR HUNDRED dollars [nor  more
than  twelve  thousand dollars] as increased or decreased by the cost of
living adjustment described in paragraph c of this subdivision, and (ii)
in the case of any election to a public office, [twenty-five] TWO  thou-
sand  FOUR  HUNDRED  dollars  as  increased  or decreased by the cost of
living adjustment described in paragraph c of this subdivision; provided
however, that  the  maximum  amount  which  may  be  so  contributed  or
accepted,  in  the aggregate, from any candidate's child, parent, grand-
parent, brother and sister, and the spouse of any  such  persons,  shall
not  exceed  in  the  case  of any nomination to public office an amount
equivalent to the product of the number of enrolled voters in the candi-
date's party in the state, excluding voters in inactive  status,  multi-
plied  by $.025, and in the case of any election for a public office, an

S. 3584--A                         18

amount equivalent to the product of the number of registered  voters  in
the state excluding voters in inactive status, multiplied by $.025.
  b.  In  any  other  election  for  party position or for election to a
public office or for nomination for any such office, no contributor  may
make  a  contribution  to  any  candidate  or political committee and no
candidate or political committee may accept any  contribution  from  any
contributor,  which  is in the aggregate amount greater than: (i) in the
case of any election for party position, or  for  nomination  to  public
office, the product of the total number of enrolled voters in the candi-
date's  party in the district in which he OR SHE is a candidate, exclud-
ing voters in inactive status, multiplied by $.05, and (ii) in the  case
of  any election for a public office, the product of the total number of
registered voters in the district, excluding voters in inactive  status,
multiplied  by $.05, however in the case of a nomination within the city
of New York for the office of mayor,  public  advocate  or  comptroller,
such  amount  shall  be  not  [less]  MORE than [four] TWO thousand FOUR
HUNDRED dollars [nor more than twelve thousand dollars] as increased  or
decreased  by  the cost of living adjustment described in paragraph c of
this subdivision; in the case of an election within the city of New York
for the office of mayor, public advocate or  comptroller,  [twenty-five]
TWO  thousand FOUR HUNDRED dollars as increased or decreased by the cost
of living adjustment described in paragraph c of  this  subdivision;  in
the  case  of  a  nomination for state senator, [four] TWO thousand FOUR
HUNDRED dollars as increased or decreased by the cost of living  adjust-
ment  described  in  paragraph  c of this subdivision; in the case of an
election for state  senator,  [six]  TWO  thousand  [two]  FOUR  hundred
[fifty]  dollars as increased or decreased by the cost of living adjust-
ment described in paragraph c of this subdivision; in  the  case  of  an
election  or  nomination for a member of the assembly, [twenty-five] TWO
THOUSAND FOUR hundred dollars as increased or decreased by the  cost  of
living  adjustment described in paragraph c of this subdivision; [but in
no event shall any such maximum exceed fifty thousand dollars or be less
than one thousand dollars;] provided however, that  the  maximum  amount
which  may  be  so  contributed  or accepted, in the aggregate, from any
candidate's child, parent, grandparent,  brother  and  sister,  and  the
spouse of any such persons, shall not exceed in the case of any election
for  party position or nomination for public office an amount equivalent
to the number of  enrolled  voters  in  the  candidate's  party  in  the
district in which he OR SHE is a candidate, excluding voters in inactive
status,  multiplied  by  $.25  and in the case of any election to public
office, an amount equivalent to the number of registered voters  in  the
district,  excluding  voters  in inactive status, multiplied by $.25; or
twelve hundred fifty dollars, whichever is greater, or in the case of  a
nomination  or  election  of  a  state senator, twenty thousand dollars,
whichever is greater, or in the case of a nomination or  election  of  a
member  of the assembly, twelve thousand five hundred dollars, whichever
is greater, but in no event shall any such maximum  exceed  one  hundred
thousand dollars.
  S  18.  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 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:

S. 3584--A                         19

  A. PROMOTING THE NOMINATION OR ELECTION OF A CANDIDATE; OR
  B.  PERFORMING  THOSE  DUTIES OF PUBLIC OFFICE OR PARTY POSITION WHICH
ARE NOT PAID FOR OR ELIGIBLE FOR REIMBURSEMENT BY THE STATE OR ANY POLI-
TICAL SUBDIVISION OR PRIVATE PARTY.
  2. PERMISSIBLE ORDINARY AND NECESSARY EXPENSES RELATING TO THE HOLDING
OF PUBLIC OFFICE OR PARTY POSITION SHALL INCLUDE:
  A. PRODUCTION AND CIRCULATION OF FLYERS  OR  OTHER  WRITTEN  MATERIALS
RELATED  TO  DUTIES  OF OFFICEHOLDER; THE PLACEMENT OF HOLIDAY GREETINGS
AND CONGRATULATORY ADS AND MEMORIAL NOTICES IN LOCAL  NEWSPAPERS,  MAGA-
ZINES, JOURNALS OR OTHER PUBLICATION;
  B.  SPONSORSHIP OR HOSTING OF COMMUNITY MEETINGS; TICKETS OR DONATIONS
TO LOCAL CHARITABLE, NON-PROFIT OR POLITICAL  EVENTS,  ORGANIZATIONS  OR
ACTIVITIES  THAT  PROMOTE  THE  WELFARE  OF  CONSTITUENTS  OR  POLITICAL
CAMPAIGNS;
  C. INCIDENTAL EXPENDITURES FOR THE OPERATION OF  LEGISLATIVE  OFFICES,
INCLUDING  PURCHASE OF ITEMS SUCH AS MEMORIAL OR GET-WELL GIFTS, FLOWERS
OR SIMILAR ITEMS OF NOMINAL VALUE FOR CONSTITUENTS OR OTHERS;
  D. MEMBERSHIP IN ORGANIZATIONS RELATED TO OFFICIAL DUTIES AND COSTS OF
ATTENDING  INFORMATIONAL  MEETINGS  ATTENDED  IN  CONNECTION  WITH  SUCH
DUTIES; AND
  E. TRAVEL RELATED TO DUTIES OF OFFICE, PROVIDED THAT THE TRAVEL IS NOT
UNDERTAKEN  FOR ANY PURPOSE RESULTING IN A PERSONAL OR FINANCIAL BENEFIT
TO THE CANDIDATE OR OFFICEHOLDER. IF SUCH EXPENSES INVOLVE BOTH PERSONAL
ACTIVITY AND CAMPAIGN OR OFFICIAL ACTIVITIES, THE  INCREMENTAL  EXPENSES
ASSOCIATED  WITH  THE  PERSONAL  ACTIVITIES ARE PERSONAL USES UNLESS THE
CAMPAIGN IS REIMBURSED FOR SUCH SUMS  FROM  OTHER  THAN  CAMPAIGN  FUNDS
WITHIN THIRTY DAYS OF THE EXPENDITURE.
  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 SIGN 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.
  3.  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 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.
  4.  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 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 PARTNER USED FOR CAMPAIGN PURPOSES;

S. 3584--A                         20

  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 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
  I. PAYMENT OF ANY FINES, FEES, OR PENALTIES ASSESSED PURSUANT TO  THIS
CHAPTER.
  5. NO CAMPAIGN FUNDS SHALL BE USED TO PAY ATTORNEY'S FEES OR ANY COSTS
OF  DEFENDING AGAINST ANY CIVIL OR CRIMINAL INVESTIGATION OR PROSECUTION
FOR ALLEGED VIOLATIONS OF STATE OR FEDERAL  LAW  ALLEGED  TO  HAVE  BEEN
COMMITTED WHILE HOLDING PUBLIC OFFICE OR AS A CANDIDATE FOR OFFICE WHERE
THE  CANDIDATE  OR  PUBLIC OR PARTY OFFICIAL, MEMBERS OF THEIR IMMEDIATE
FAMILIES OR PARTNERS OR THE CAMPAIGN IS THE TARGET OF SUCH INVESTIGATION
OR PROSECUTION UNLESS SUCH EXPENDITURE IS  USED  EXCLUSIVELY  FOR  COSTS
RELATED  TO  CIVIL OR CRIMINAL ACTIONS FOR ALLEGED VIOLATIONS RELATED TO
ACTIVITIES PROMOTING THE NOMINATION OR ELECTION OF A CANDIDATE.
  S 19. The election law is amended by adding a new  section  14-132  to
read as follows:
  S  14-132.  DISPOSITION OF CAMPAIGN FUNDS. 1. AN AUTHORIZED CONTINUING
CANDIDATE COMMITTEE MUST DISPOSE OF ALL FUNDS AND CLOSE WITHIN TWO YEARS
AFTER THE LATER OF (A) THE END OF THE INDIVIDUAL'S MOST RECENT  TERM  OF
OFFICE, OR (B) THE DATE OF THE ELECTION IN WHICH THE INDIVIDUAL LAST WAS
A FILED CANDIDATE.
  2.  ANY  CANDIDATE OR POLITICAL COMMITTEE REQUIRED TO DISPOSE OF FUNDS
PURSUANT TO THIS SECTION SHALL, AT THE OPTION 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 REVEN-
UE 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.
  3. NO CANDIDATE OR POLITICAL COMMITTEE SHALL DISPOSE OF CAMPAIGN FUNDS
BY  MAKING EXPENDITURES FOR PERSONAL USE AS DEFINED IN SECTION 14-130 OF
THIS TITLE.
  4. UPON THE DEATH OF A CANDIDATE, FORMER CANDIDATE OR HOLDER OF  ELEC-
TIVE  OFFICE,  WHO  RECEIVED  CAMPAIGN  CONTRIBUTIONS, ALL CONTRIBUTIONS

S. 3584--A                         21

SHALL BE DISPOSED OF ACCORDING TO THIS SECTION WITHIN TWELVE  MONTHS  OF
THE DEATH OF THE CANDIDATE.
  S  20. Subdivision 1 of section 14-102 of the election law, as amended
by chapter 8 and redesignated by chapter 9  of  the  laws  of  1978,  is
amended to read as follows:
  1.  The  treasurer of every political committee which, or any officer,
member or agent of any  such  committee  who,  in  connection  with  any
election,  receives  or  expends  any  money  or other valuable thing or
incurs any liability to pay money or its equivalent  shall  file  state-
ments  sworn,  or subscribed and bearing a form notice that false state-
ments made therein are punishable as a class A misdemeanor  pursuant  to
section  210.45 of the penal law, at the times prescribed by this [arti-
cle] TITLE setting forth all the  receipts,  contributions  to  and  the
expenditures  by  and liabilities of the committee, and of its officers,
members and agents in its behalf.  Such  statements  shall  include  the
dollar  amount  of  any  receipt,  contribution or transfer, or the fair
market value of any receipt, contribution or transfer,  which  is  other
than  of  money,  the name and address of the transferor, contributor or
person from whom received, IF THE CONTRIBUTOR IS A  LOBBYIST  REGISTERED
PURSUANT  TO ARTICLE ONE-A OF THE LEGISLATIVE LAW and if the transferor,
contributor or person is a political committee;  the  name  of  and  the
political  unit  represented  by the committee, the date of its receipt,
the dollar amount of every expenditure, the  name  and  address  of  the
person to whom it was made or the name of and the political unit repres-
ented  by  the  committee to which it was made and the date thereof, and
shall state clearly the  purpose  of  such  expenditure.  Any  statement
reporting  a  loan  shall  have attached to it a copy of the evidence of
indebtedness. Expenditures in sums  under  fifty  dollars  need  not  be
specifically  accounted  for  by  separate items in said statements, and
receipts  and  contributions  aggregating  not  more  than   ninety-nine
dollars, from any one contributor need not be specifically accounted for
by  separate  items  in  said  statements,  provided  however, that such
expenditures, receipts and contributions shall be subject to  the  other
provisions of section 14-118 of this [article] TITLE.
  S  21.  Subdivision 3 of section 3-100 of the election law, as amended
by chapter 220 of the laws of 2005, is amended to read as follows:
  3. The commissioners of the state board of  elections  shall  have  no
other public employment. The commissioners shall receive an annual sala-
ry  of  twenty-five  thousand dollars, within the amounts made available
therefor by appropriation. The board shall, for the purposes of sections
seventy-three and seventy-four of the public officers law, be  a  "state
agency",  and  such commissioners shall be "officers" of the state board
of elections for the purposes of such sections. Within the amounts  made
available  by appropriation therefor, the state board of elections shall
appoint two co-executive directors, [counsel] AN ENFORCEMENT COUNSEL,  A
DEPUTY  ENFORCEMENT  COUNSEL, WHO SHALL BE A MEMBER OF A DIFFERENT MAJOR
POLITICAL PARTY THAN THE ENFORCEMENT COUNSEL, A SPECIAL COUNSEL, A DEPU-
TY SPECIAL COUNSEL, WHO SHALL BE A MEMBER OF A DIFFERENT MAJOR POLITICAL
PARTY THAN THE SPECIAL COUNSEL, A DIRECTOR  OF  ELECTION  OPERATIONS,  A
DEPUTY  DIRECTOR  OF  ELECTION  OPERATIONS,  WHO  SHALL BE A MEMBER OF A
DIFFERENT MAJOR POLITICAL PARTY THAN  THE  DIRECTOR  OF  ELECTION  OPER-
ATIONS,  A  DIRECTOR  OF PUBLIC INFORMATION, A DEPUTY DIRECTOR OF PUBLIC
INFORMATION, WHO SHALL BE A MEMBER OF A DIFFERENT MAJOR POLITICAL  PARTY
THAN  THE DIRECTOR OF PUBLIC INFORMATION and such other staff members as
are necessary in the exercise  of  its  functions,  and  may  fix  their
compensation.  [Anytime  after  the effective date of the chapter of the

S. 3584--A                         22

laws of two thousand five  which  amended  this  subdivision,  the]  THE
commissioners or, in the case of a vacancy on the board, the commission-
er of each of the major political parties shall appoint one co-executive
director.  Each  co-executive director shall serve a term of four years.
THE ENFORCEMENT COUNSEL AND THE SPECIAL COUNSEL SHALL EACH SERVE A  TERM
OF  FOUR  YEARS  AND  MAY ONLY BE REMOVED FOR CAUSE.  ANY TIME AFTER THE
EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWELVE  AMEND-
ING  THIS SUBDIVISION, THE COMMISSIONERS, OR IN THE CASE OF A VACANCY ON
THE BOARD, THE COMMISSIONER, OF EACH OF THE SAME MAJOR  POLITICAL  PARTY
AS  THE  INCUMBENT  ENFORCEMENT  COUNSEL,  DEPUTY  ENFORCEMENT  COUNSEL,
SPECIAL COUNSEL, DEPUTY SPECIAL  COUNSEL,  DIRECTOR  OF  ELECTION  OPER-
ATIONS,  DEPUTY  DIRECTOR  OF  ELECTION  OPERATIONS,  DIRECTOR OF PUBLIC
INFORMATION AND DEPUTY DIRECTOR OF  PUBLIC  INFORMATION,  SHALL  APPOINT
SUCH  COUNSELS,  DIRECTORS  AND  DEPUTIES.  Any vacancy in the office of
co-executive director, ENFORCEMENT COUNSEL, DEPUTY ENFORCEMENT  COUNSEL,
SPECIAL  COUNSEL,  DEPUTY  SPECIAL  COUNSEL,  DIRECTOR OF ELECTION OPER-
ATIONS, DEPUTY DIRECTOR  OF  ELECTION  OPERATIONS,  DIRECTOR  OF  PUBLIC
INFORMATION  AND  DEPUTY DIRECTOR OF PUBLIC INFORMATION, shall be filled
by the commissioners or, in the case of a  vacancy  on  the  board,  the
commissioner of the same major political party as the vacating incumbent
for the remaining period of the term of such vacating incumbent, FOR THE
REMAINING PERIOD OF THE TERM OF SUCH VACATING INCUMBENT.
  S  22. Subdivision 3, paragraph (c) of subdivision 9-A and subdivision
17 of section 3-102 of the  election  law,  subdivisions  3  and  17  as
amended  by  chapter 9 of the laws of 1978, paragraph (c) of subdivision
9-A as added by chapter 430 of the laws of 1997 and  subdivision  17  as
renumbered  by  chapter  23  of the laws of 2005, are amended to read as
follows:
  3. conduct any investigation necessary to carry out the provisions  of
this  chapter,  PROVIDED,  HOWEVER,  THAT  THE  STATE BOARD OF ELECTIONS
ENFORCEMENT COUNSEL, ESTABLISHED PURSUANT TO SECTION 3-104 OF THIS ARTI-
CLE, SHALL CONDUCT ANY INVESTIGATION NECESSARY TO ENFORCE THE PROVISIONS
OF ARTICLE FOURTEEN OF THIS CHAPTER ON BEHALF OF THE BOARD OF ELECTIONS;
  (c) establish [a] AN EDUCATIONAL AND training program on ALL REPORTING
REQUIREMENTS INCLUDING BUT NOT LIMITED TO the electronic reporting proc-
ess and make it EASILY AND READILY available to any  such  candidate  or
committee AND NOTIFY ANY SUCH CANDIDATE OR COMMITTEE OF THE AVAILABILITY
OF THE MOST RECENT CAMPAIGN FINANCE HANDBOOK;
  17.    HEAR  AND  CONSIDER  THE  RECOMMENDATIONS OF THE STATE BOARD OF
ELECTIONS ENFORCEMENT COUNSEL REGARDING THE ENFORCEMENT OF VIOLATIONS OF
ARTICLE FOURTEEN OF THIS CHAPTER;
  18. perform such other acts as may  be  necessary  to  carry  out  the
purposes of this chapter.
  S 23. Section 3-104 of the election law, subdivisions 1, 3, 4 and 5 as
redesignated  and  subdivision  2 as amended by chapter 9 of the laws of
1978, is amended to read as follows:
  S 3-104. State board of elections AND THE  STATE  BOARD  OF  ELECTIONS
ENFORCEMENT  COUNSEL;  enforcement powers.  1. (A) THERE SHALL BE A UNIT
KNOWN AS THE STATE BOARD OF ELECTIONS ENFORCEMENT UNIT ESTABLISHED WITH-
IN THE STATE BOARD OF ELECTIONS. THE HEAD OF  SUCH  UNIT  SHALL  BE  THE
ENFORCEMENT COUNSEL.
  (B)  The  state  board of elections shall have jurisdiction of, and be
responsible for, the execution and  enforcement  of  the  provisions  of
[article   fourteen  of  this  chapter  and  other]  statutes  governing
campaigns, elections and related procedures; PROVIDED HOWEVER  THAT  THE
ENFORCEMENT  COUNSEL SHALL HAVE SOLE AUTHORITY WITHIN THE STATE BOARD OF

S. 3584--A                         23

ELECTIONS TO INVESTIGATE ON HIS OR HER OWN INITIATIVE OR UPON COMPLAINT,
ALLEGED  VIOLATIONS  OF  ARTICLE  FOURTEEN  OF  THIS  CHAPTER  AND   ALL
COMPLAINTS  ALLEGING  ARTICLE  FOURTEEN VIOLATIONS SHALL BE FORWARDED TO
THE  ENFORCEMENT  UNIT.  NOTHING  IN  THIS SECTION SHALL BE CONSTRUED TO
DIMINISH OR ALTER THE STATE BOARD OF ELECTIONS' JURISDICTION PURSUANT TO
THIS CHAPTER.
  2. Whenever [the state board of elections or other] A LOCAL  board  of
elections  shall  determine, on its own initiative or upon complaint, or
otherwise, that there is substantial reason to believe  a  violation  of
this  chapter  or  any  code  or  regulation  promulgated thereunder has
[occurred] BEEN COMMITTED BY A CANDIDATE  OR  POLITICAL  COMMITTEE  THAT
FILES STATEMENTS OR IS REQUIRED TO DO SO PURSUANT TO ARTICLE FOURTEEN OF
THIS  CHAPTER  SOLELY WITH SUCH LOCAL BOARD, it shall expeditiously make
an investigation which shall also include investigation of  reports  and
statements  made  or  failed to be made by the complainant and any poli-
tical committee supporting his candidacy if the complainant is a  candi-
date  or,  if  the complaint was made by an officer or member of a poli-
tical committee, of reports and statements made or failed to be made  by
such  political committee and any candidates supported by it. [The state
board of elections, in lieu of making such an investigation, may  direct
the  appropriate board of elections to make an investigation.] The state
board of elections may request, and shall receive, the assistance of the
state police in any investigation it shall conduct.
  3. [If, after an investigation, the state or other board of  elections
finds  reasonable  cause to believe that a violation warranting criminal
prosecution has taken place, it shall forthwith refer the matter to  the
district  attorney of the appropriate county and shall make available to
such district attorney all relevant  papers,  documents,  testimony  and
findings relevant to its investigation.
  4.  The  state  or  other  board  of elections may, where appropriate,
commence a judicial proceeding with respect to the filing or failure  to
file  any  statement  of receipts, expenditures, or contributions, under
the provisions of this chapter, and the state  board  of  elections  may
direct  the  appropriate  other  board  of  elections  to  commence such
proceeding.
  5.]  IF THE ENFORCEMENT COUNSEL DETERMINES THAT A VIOLATION OF  SUBDI-
VISION  ONE  OF  SECTION 14-126 OF THIS CHAPTER HAS OCCURRED WHICH COULD
WARRANT A CIVIL PENALTY, THE ENFORCEMENT COUNSEL SHALL, UPON HIS OR  HER
DISCRETION,  SEEK  TO  RESOLVE THE MATTER EXTRA-JUDICIALLY OR COMMENCE A
SPECIAL PROCEEDING IN THE SUPREME COURT PURSUANT TO  SECTION  16-114  OF
THIS CHAPTER.
  4. UPON RECEIPT OF A COMPLAINT AND SUPPORTING INFORMATION OR AN INTER-
NAL  REFERRAL  FROM THE ENFORCEMENT UNIT ALLEGING ANY OTHER VIOLATION OF
ARTICLE FOURTEEN OF THIS CHAPTER, THE ENFORCEMENT COUNSEL SHALL  ANALYZE
THE  FACTS  AND THE LAW RELEVANT TO SUCH COMPLAINT OR REFERRAL TO DETER-
MINE IF AN INVESTIGATION SHOULD BE UNDERTAKEN. THE  ENFORCEMENT  COUNSEL
SHALL, IF NECESSARY, REQUEST ADDITIONAL INFORMATION FROM THE COMPLAINANT
TO ASSIST SUCH COUNSEL IN MAKING THIS DETERMINATION. SUCH ANALYSIS SHALL
INCLUDE  THE  FOLLOWING:  FIRST, WHETHER THE ALLEGATIONS, IF TRUE, WOULD
CONSTITUTE A VIOLATION OF ARTICLE FOURTEEN OF THIS CHAPTER AND,  SECOND,
WHETHER THE ALLEGATIONS ARE SUPPORTED BY CREDIBLE EVIDENCE.
  5.   IF  THE  ENFORCEMENT  COUNSEL  DETERMINES  THAT  THE  ALLEGATIONS
CONTAINED IN A COMPLAINT, IF TRUE, WOULD NOT CONSTITUTE A  VIOLATION  OF
ARTICLE  FOURTEEN  OF  THIS  CHAPTER  OR  THAT  THE  ALLEGATIONS ARE NOT
SUPPORTED BY CREDIBLE EVIDENCE, HE OR SHE SHALL: (A) NOTIFY  THE  DEPUTY
ENFORCEMENT  COUNSEL  OF  SUCH DETERMINATION AND (B) PUBLICLY NOTIFY THE

S. 3584--A                         24

STATE BOARD OF ELECTIONS OF SUCH DETERMINATION. IF THE  STATE  BOARD  OF
ELECTIONS PUBLICLY DETERMINES, AS PROVIDED IN THIS TITLE, THAT THE ALLE-
GATIONS,  IF  TRUE,  WOULD CONSTITUTE A VIOLATION OF ARTICLE FOURTEEN OF
THIS CHAPTER AND THAT THE ALLEGATIONS APPEAR TO BE SUPPORTED BY CREDIBLE
EVIDENCE, IT SHALL DIRECT THAT THE ENFORCEMENT COUNSEL CONDUCT AN INVES-
TIGATION.  LACKING  SUCH  A DETERMINATION, THE ENFORCEMENT COUNSEL SHALL
ISSUE A LETTER TO THE COMPLAINANT DISMISSING THE COMPLAINT.
  6. IF THE ENFORCEMENT COUNSEL  DETERMINES  THAT  THE  ALLEGATIONS,  IF
TRUE,  WOULD  CONSTITUTE A VIOLATION OF ARTICLE FOURTEEN OF THIS CHAPTER
AND THAT THE ALLEGATIONS APPEAR TO BE SUPPORTED BY CREDIBLE EVIDENCE, HE
OR SHE SHALL: (A) NOTIFY THE DEPUTY ENFORCEMENT COUNSEL OF  (I)  HIS  OR
HER  INTENT TO RESOLVE THE MATTER EXTRA-JUDICIALLY DUE TO THE DE MINIMUS
NATURE OF THE VIOLATION; OR (II) HIS OR HER INTENT TO COMMENCE AN INVES-
TIGATION, AND (B) PUBLICLY NOTIFY THE STATE BOARD OF ELECTIONS  OF  SUCH
INTENT  NO  LATER  THAN  THE  BOARD'S  NEXT REGULARLY SCHEDULED MEETING.
NOTIFICATION SHALL SUMMARIZE THE RELEVANT FACTS AND THE  APPLICABLE  LAW
AND  SHALL,  TO  THE EXTENT POSSIBLE, PROTECT FROM PUBLIC DISCLOSURE THE
IDENTITY OF THE COMPLAINANT AND THE INDIVIDUAL SUBJECT TO THE COMPLAINT.
THE DEPUTY ENFORCEMENT COUNSEL SHALL HAVE THE OPPORTUNITY TO REVIEW  THE
ENTIRE  FILE  OF ANY PRELIMINARY INVESTIGATION CONDUCTED BY THE ENFORCE-
MENT COUNSEL A MINIMUM OF TEN DAYS PRIOR  TO  SAID  REGULARLY  SCHEDULED
MEETING OF THE BOARD AND TO SUBMIT A PUBLIC, WRITTEN CONCURRENCE WITH OR
DISSENT FROM THE ENFORCEMENT COUNSEL'S PROPOSAL.
  7.  IF, UPON CONSIDERING THE ENFORCEMENT COUNSEL'S NOTICE OF INTENT TO
COMMENCE AN INVESTIGATION AND THE DEPUTY ENFORCEMENT COUNSEL'S RECOMMEN-
DATION, THE STATE BOARD OF ELECTIONS BELIEVES THAT THE  ALLEGATIONS,  IF
TRUE, WOULD NOT CONSTITUTE A VIOLATION OF ARTICLE FOURTEEN OF THIS CHAP-
TER,  OR THE ALLEGATIONS ARE NOT SUPPORTED BY CREDIBLE EVIDENCE OR, THAT
ON BALANCE, THE EQUITIES FAVOR A DISMISSAL OF THE COMPLAINT,  THE  BOARD
SHALL  PUBLICLY  DIRECT THAT AN INVESTIGATION NOT BE UNDERTAKEN NO LATER
THAN SIXTY DAYS AFTER THE RECEIPT OF NOTIFICATION FROM  THE  ENFORCEMENT
COUNSEL  OF HIS OR HER INTENT TO COMMENCE AN INVESTIGATION. IN DETERMIN-
ING WHETHER THE EQUITIES FAVOR A DISMISSAL OF THE COMPLAINT,  THE  STATE
BOARD OF ELECTIONS SHALL CONSIDER THE FOLLOWING FACTORS: (A) WHETHER THE
COMPLAINT  ALLEGES  A  DE  MINIMUS VIOLATION OF ARTICLE FOURTEEN OF THIS
CHAPTER; (B) WHETHER THE SUBJECT OF THE COMPLAINT HAS MADE A GOOD  FAITH
EFFORT  TO  CORRECT  THE  VIOLATION;  AND (C) WHETHER THE SUBJECT OF THE
COMPLAINT HAS A HISTORY OF SIMILAR VIOLATIONS.   DETERMINATIONS  OF  THE
STATE  BOARD  OF ELECTIONS TO DISMISS A COMPLAINT AND NOT PROCEED WITH A
FORMAL INVESTIGATION SHALL BE VOTED UPON AS PROVIDED IN SUBDIVISION FOUR
OF SECTION 3-100 OF THIS TITLE AT AN OPEN MEETING  PURSUANT  TO  ARTICLE
SEVEN  OF THE PUBLIC OFFICERS LAW, AND SHALL BE MADE ON A FAIR AND EQUI-
TABLE BASIS AND WITHOUT REGARD TO THE  STATUS  OF  THE  SUBJECT  OF  THE
COMPLAINT.
  8.  ABSENT A TIMELY DETERMINATION BY THE STATE BOARD OF ELECTIONS THAT
AN INVESTIGATION SHALL NOT BE UNDERTAKEN, THE ENFORCEMENT COUNSEL  SHALL
COMMENCE  AN INVESTIGATION ON A TIMELY BASIS. IF THE ENFORCEMENT COUNSEL
DETERMINES THAT ADDITIONAL INVESTIGATIVE  POWERS,  AS  PROVIDED  FOR  IN
SUBDIVISIONS  FOUR,  FIVE  AND  SIX  OF SECTION 3-102 OF THIS TITLE, ARE
NEEDED TO COMPLETE THE COUNSEL'S INVESTIGATION, HE OR SHE SHALL  REQUEST
SUCH  ADDITIONAL  POWERS  FROM THE STATE BOARD OF ELECTIONS. SUCH POWERS
SHALL BE GRANTED BY THE BOARD IN PUBLIC ONLY WHEN THE BOARD  FINDS  THAT
FURTHER INVESTIGATION IS WARRANTED AND JUSTIFIED.
  9.  AT  THE  CONCLUSION  OF ITS INVESTIGATION, THE ENFORCEMENT COUNSEL
SHALL PROVIDE THE DEPUTY ENFORCEMENT COUNSEL  AND  THE  STATE  BOARD  OF
ELECTIONS  WITH  A WRITTEN RECOMMENDATION AS TO: (A) WHETHER SUBSTANTIAL

S. 3584--A                         25

REASON EXISTS TO BELIEVE A VIOLATION OF ARTICLE FOURTEEN OF THIS CHAPTER
HAS OCCURRED AND, IF SO, THE NATURE OF THE VIOLATION AND ANY  APPLICABLE
PENALTY,  AS  DEFINED  IN  SECTION  14-126 OF THIS CHAPTER, BASED ON THE
NATURE  OF  THE  VIOLATION;  (B)  WHETHER  THE MATTER SHOULD BE RESOLVED
EXTRA-JUDICIALLY; (C) WHETHER A SPECIAL PROCEEDING SHOULD  BE  COMMENCED
IN  THE  SUPREME  COURT  TO  RECOVER  A CIVIL PENALTY; AND (D) WHETHER A
REFERRAL SHOULD BE MADE TO A DISTRICT ATTORNEY PURSUANT  TO  SUBDIVISION
ELEVEN  OF  THIS  SECTION  BECAUSE  REASONABLE CAUSE EXISTS TO BELIEVE A
VIOLATION WARRANTING CRIMINAL PROSECUTION HAS TAKEN  PLACE.  THE  DEPUTY
ENFORCEMENT COUNSEL SHALL HAVE THE OPPORTUNITY TO REVIEW THE ENTIRE FILE
OF  ANY  INVESTIGATION CONDUCTED BY THE ENFORCEMENT COUNSEL A MINIMUM OF
TEN DAYS PRIOR TO SAID REGULARLY SCHEDULED MEETING OF THE BOARD  AND  TO
SUBMIT  A  PUBLIC, WRITTEN CONCURRENCE WITH OR DISSENT FROM THE ENFORCE-
MENT COUNSEL'S RECOMMENDATION.
  10. THE STATE BOARD OF ELECTIONS SHALL ACCEPT, MODIFY  OR  REJECT  THE
ENFORCEMENT  COUNSEL'S  RECOMMENDATION  NO  LATER  THAN SIXTY DAYS AFTER
RECEIPT OF SUCH RECOMMENDATION. IN MAKING ITS DETERMINATION,  THE  BOARD
SHALL  AGAIN  CONSIDER:  (A)  WHETHER THE COMPLAINT ALLEGES A DE MINIMUS
VIOLATION OF ARTICLE FOURTEEN OF THIS CHAPTER; (B) WHETHER  THE  SUBJECT
OF  THE COMPLAINT HAS MADE A GOOD FAITH EFFORT TO CORRECT THE VIOLATION;
AND (C) WHETHER THE SUBJECT OF THE COMPLAINT HAS A  HISTORY  OF  SIMILAR
VIOLATIONS.  ALL  SUCH DETERMINATIONS SHALL BE VOTED UPON AS PROVIDED IN
SUBDIVISION FOUR OF SECTION 3-100 OF  THIS  TITLE  AT  AN  OPEN  MEETING
PURSUANT  TO ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW, AND SHALL BE MADE
ON A FAIR AND EQUITABLE BASIS, WITHOUT  REGARD  TO  THE  STATUS  OF  THE
SUBJECT OF THE COMPLAINT.
  11.  (A)  IF  THE  STATE BOARD OF ELECTIONS DETERMINES, AS PROVIDED IN
SUBDIVISION TEN OF THIS  SECTION,  THAT  SUBSTANTIAL  REASON  EXISTS  TO
BELIEVE  THAT  A  PERSON, ACTING AS OR ON BEHALF OF A CANDIDATE OR POLI-
TICAL COMMITTEE UNDER CIRCUMSTANCES EVINCING AN INTENT TO  VIOLATE  SUCH
LAW,  HAS UNLAWFULLY ACCEPTED A CONTRIBUTION IN EXCESS OF A CONTRIBUTION
LIMITATION ESTABLISHED IN ARTICLE FOURTEEN OF THIS CHAPTER, WHICH  COULD
WARRANT  A CIVIL PENALTY AS PROVIDED FOR IN SUBDIVISION THREE OF SECTION
14-126 OF THIS CHAPTER, THE BOARD SHALL DIRECT  THE  COMMENCEMENT  OF  A
SPECIAL PROCEEDING IN THE SUPREME COURT.
  (B)  IF THE STATE BOARD OF ELECTIONS DETERMINES, AS PROVIDED IN SUBDI-
VISION TEN OF THIS SECTION THAT REASONABLE CAUSE  EXISTS  TO  BELIEVE  A
VIOLATION  WARRANTING  CRIMINAL  PROSECUTION  HAS TAKEN PLACE, THE BOARD
SHALL REFER THE MATTER TO A DISTRICT ATTORNEY AND SHALL  MAKE  AVAILABLE
TO  SUCH DISTRICT ATTORNEY ALL PAPERS, DOCUMENTS, TESTIMONY AND FINDINGS
RELEVANT TO ITS INVESTIGATION.
  12. UPON NOTIFICATION THAT A SPECIAL PROCEEDING HAS BEEN COMMENCED  BY
A  PARTY  OTHER  THAN  THE STATE BOARD OF ELECTIONS, PURSUANT TO SECTION
16-114 OF THIS CHAPTER, THE STATE BOARD OF ELECTIONS  SHALL  DIRECT  THE
ENFORCEMENT  COUNSEL TO INVESTIGATE THE ALLEGED VIOLATIONS UNLESS OTHER-
WISE DIRECTED BY THE COURT.
  13. THE ENFORCEMENT COUNSEL SHALL PREPARE A REPORT, TO BE INCLUDED  IN
THE  ANNUAL  REPORT  TO  THE  GOVERNOR  AND LEGISLATURE, SUMMARIZING THE
ACTIVITIES OF THE UNIT DURING  THE  PREVIOUS  YEAR.  SUCH  REPORT  SHALL
INCLUDE:  (A)  THE  NUMBER  OF  COMPLAINTS  RECEIVED;  (B) THE NUMBER OF
COMPLAINTS THAT WERE FOUND TO NEED INVESTIGATION AND THE NATURE OF  EACH
COMPLAINT;  AND  (C) THE NUMBER OF MATTERS THAT HAVE BEEN RESOLVED.  THE
REPORT SHALL NOT CONTAIN ANY INFORMATION FOR  WHICH  DISCLOSURE  IS  NOT
PERMITTED.
  14.  The state board of elections may promulgate rules and regulations
consistent with law to effectuate the provisions of this section.

S. 3584--A                         26

  S 24. The state of New York shall appropriate during each fiscal  year
to the New York state board of elections enforcement unit, not less than
thirty-five percent of the appropriation available from the general fund
for  the  state  board  of  elections  to  pay  for the expenses of such
enforcement unit.
  S  25.  Severability. If any clause, sentence, subdivision, paragraph,
section or part of title II of article 14 of the election law, as  added
by  section ten of this act be adjudged by any court of competent juris-
diction to be invalid, such judgment shall not affect, impair or invali-
date 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  26.  This act shall take effect immediately; provided, however, all
state candidates and constitutional convention delegates will be  eligi-
ble  to  participate  in  the public financing system beginning with the
2016 election and state  legislature  candidates  will  be  eligible  to
participate  in  the  public  financing  system  beginning with the 2018
election.

Co-Sponsors

view additional co-sponsors

S3584B (ACTIVE) - Bill Details

Current Committee:
Law Section:
Election Law
Laws Affected:
Amd El L, generally; add §92-t, St Fin L; amd §658, Tax L
Versions Introduced in 2009-2010 Legislative Session:
S7506

S3584B (ACTIVE) - Bill Texts

view summary

Enacts the "2012 Campaign Finance Reform Act"; provides for optional partial public financing of certain election campaigns in this state; limits personal use of campaign funds; establishes certain contribution limits; requires identification of the source of certain political communications and provides for a state board of elections enforcement unit and counsel.

view sponsor memo
BILL NUMBER:S3584B

TITLE OF BILL:

An act
enacting the "2012 Campaign
Finance Reform Act";
to amend the election law,
the state finance law and the tax law, in relation to providing for
optional partial public financing of certain election campaigns in this
state; and to amend the election law, in relation to
limiting personal use of campaign funds, establishing certain
contribution limits,
identification of
the source of certain political communications
and providing for a state board of elections enforcement unit and
counsel

SUMMARY AND DESCRIPTION OF PROVISIONS:

PUBLIC FINANCING:

The bill adds a new Title II to Article 14 to provide for public
financing of primary and general election campaigns for statewide
office, primary, general and special election campaigns for state
legislative office and primary and general election campaigns for
constitutional convention delegates.

CRITERIA FOR PARTICIPATION:

To be eligible for public financing, a candidate for nomination or
election to a statewide office, state legislative office or as a
constitutional convention delegate must satisfy the legal
requirements for having his or her name on the ballot, elect to
participate in the public financing system, meet the threshold for
eligibility and agree to file required statements, authorize a single
participating committee; and identify the source of all campaign
material. Candidates that opt in are also required to participate in
at least one debate pre-primary and one debate pre-general.

ELIGIBILITY THRESHOLD:

Governor: Must collect not less than $650,000 from at least 6,500
matchable contributions made up of sums of up to $250 per individual
contributor who resides in New York state.

Lt. Governor (primary only), Attorney Gen, & comptroller: Must collect
not less than $200,000 from at least 2,000 matchable contributions
made up of sums of up to $250 per individual contributor who resides
in New York state.

Senate: Must collect not less than $25,000 from at least 250 matchable
Contributions made up of sums of up to $250 per individual
contributor who resides in New York state including at least $12,500
from at least 125 individual contributors who reside in the senate
district in which the seat is to be filled.

Assembly: Must collect not less than $10,000 from at least 100
matchable Contributions made up of sums of up to $250 per individual
contributor who resides in New York State including at least $5,000
from at least 50 individual contributors who reside in the assembly
district in which the seat is to be filled.

At-large Delegate to a Constitutional Convention, Must collect not
less than $20,000 from at least 200 matchable contributions made up
of sums of up to $250 per individual Contributor who resides in New
York state.

District Delegate to a Constitutional Convention, Must collect not
less than $5,000 from at least 50 matchable Contributions made up of
sums of up to $250 per individual contributor who resides in the
district in which the seat is to be filled.

Matchable Contributions: May be collected after January first of the
year of the primary or general election. For a special election, may
be collected up to six months before the election. Consist of the net
amount of contributions after deduction of the value of any food,
drink or entertainment provided in exchange for the contribution.
Only Contributions from persons who reside in New York State are
matchable.

The Match: Eligible contributions up to $250 are matched at the rate
of $6 for every $1.

Misc. Rules: To receive public funds for a primary election, a
participating candidate must agree to receive public funding for the
general election.

Participating candidates who are unopposed in a primary election may
receive public funds. Participating candidates whose opponents don't
raise or spend 10%- of the expenditure limit are deemed unopposed.

Participating candidates that are unopposed may raise private funds of
up to 50% of the expenditure limit if there is a contest in the
primary for at least one other party for such office. Such funds may
only be raised with contributions of up to $2000 per contributor.

Candidates who are challenged in a
primary and who do not seek public funds for the general election.

Candidates who are unopposed in a general or special election may not
receive public funds.

Permissible and Prohibited Uses of Public Funds: Public funds may
used only for qualified campaign expenditures during the year of
the primary or general election. For a special election, such funds
may only be used in the three months prior to the election. They
may not be used for expenditures in violation of law, for payments
to a candidate or to a relative of the candidate (or to any business
entity of which such a person is an officer or employee or has
a ten percent or greater ownership interest), for
payments in excess of fair market value, for any
expenditure after the candidate or the candidate's only remaining
opponent has been disqualified (until and unless reversed), to
challenge an opponent's petitions or certificates, for non-campaign
related food, drink or entertainment, or for gifts (except brochures,
buttons, signs and other campaign material).

Contribution Limit: All candidates who choose to participate in the
public financing system have a contribution limit of $2,000 per
contributor.

PUBLIC FUNDS RECEIPT LIMITS:

The following limits on public funds apply to all candidates who
participate in the public financing system.

Governor Lt. Governor Attorney General and Comptroller State Senator
Member of Assembly At-Large Delegate District Delegate

General Election Primary

Governor $12,000,000 $9,000,000
Lt. Governor $ --- $6,000.000
Attorney General
and Comptroller $ 8,000,000 Same as Lt. Governor
State Senator $ 350,000 $ 350,0000
Member of Assembly $ 150,000 $ 150,000
At Large Delegate $ 350,000 $ 175,000
District Delegate $ 75,000 $ 50,000

NOTE: A participating candidate may raise unlimited amounts of private
money subject to the $2,000 per contributor limitation.

Party Expenditures in Support of participating Candidates: Notwith-
standing the expenditure limits for participating candidates, state
party committees may make the following expenditures for services to
participating candidates:

Gov. and Lt. Governor $2,500,000
Att. Gen or Comptroller $1,000,000
Senate $ 100,000
State Assembly $ 50,000
At-large Delegate $ 50,000
District Delegate $ 10,000

* Transfers to a participating candidate may constitute up to 25% of
such party expenditures.

Tax Check-off: The bill provides an income tax check-off of $5. Such
monies would be paid into a separate fund, known as the New York State
Campaign Finance Fund. The taxpayers' tax liability would not be
affected by making this designation. If the state campaign finance fund
lacks the money to pay all properly certified claims, the deficiency
will be paid from the general fund.

TITLE I

The bill amends Article 14 of the election law to designate the existing
law Title I, and adds the following:

* Identification of Independent Political and electioneering communi-
cations: The bill requires all independent political and elecitoneering
communications that expressly advocate for the election or defeat of a
candidate or the Success or defeat of a ballot proposal to identify the
source of the funding for such communication.

* Independent Expenditures: The bill requires reporting of independent
expenditures that cost more than $1000 and expressly advocates for the
election or defeat of a clearly identified candidate or the SUccess or
defeat of a ballot proposal. Independent expenditures made after the
last filing before an election must be reported within 24 hours.

* The bill adds an identification requirement for independent political
communications, a filing requirement for independent expenditures and a
requirement that certain candidates disclose their intent to spend
personal funds in a campaign.

* Lowering Contribution Limits: The bill sets contribution limits for
campaigns for statewide office or citywide office in New York City at
$2,400 for candidates for election and $2,000 for candidates for nomi-
nation (or between $2,000 and $6,000 for minor party candidates, based
on an existing formula that is unchanged by this bill). The bill would
set campaign contribution limits for candidates for State Senate and
State Assembly at $2,000 per election (or a total of $4,800 for a prima-
ry and general election cycle), the current federal level. This bill
would not affect local laws currently in place in New York City, which
currently set limits for citywide candidates that are lower than the
limits in state law.

* Personal Use of Campaign Funds: Delineates how candidates for elected
office can and cannot use their campaign funds, establish rules and
methods for the disposal of excess campaign funds and for the timing of
such disposal, require that they specifically detail campaign contrib-
utions by lobbyists and prohibit the soliciting or receiving of contrib-
ution for campaigns for state or federal office by senior policy makers
in the executive and legislative branch.

* Campaign Finance Enforcement: The bill codifies an enforcement unit
within the State Board of Elections (SBOE) with a mandate that at least
35 percent of the SBOE's annual budget be dedicated to the unit to
promote increased enforcement of campaign finance laws. The enforcement
counsel would have exclusive authority to determine how that money is
spent in staffing decisions.

The bill expands the jurisdiction of the enforcement unit and promotes
the independence of the enforcement counsel by making the office a 4
year term, and the office of special counsel, the other legal unit at
the SBOE, a four-year term and codifies the requirement that the deputy
in each unit be a member of the opposite political party than the coun-
sel.

The bill changes the way that campaign finance enforcement matters are
processed at the SBOE by requiring three of the four SBOE commissioners
to vote to stop an investigation by the enforcement counsel, rather than
requiring, as current law does, three votes to begin an investigation.

The bill mandates that all votes to stop an investigation, or to act on
the recommendation of the enforcement counsel after an investigation,
Occur in public, as currently all discussion and all determinations made
regarding campaign finance enforcement matters Occur in executive
session and not in public.

Penalties:

TITLE I

The knowing and willful failure to identify the source of independent
expenditures will subject the person or entity to a civil fine equal to
$1000 or the cost of the communication, whichever is greater.

A failure to file the statements required for an independent expenditure
shall subject the person or entity to a civil fine of $500.

A knowing and willful failure to file the statement required regarding
the use of personal funds in a campaign shall subject the candidate to a
civil fine of up to $5000.

TITLE II

The failure to make proper campaign finance filings, as required by
Title II and rules and regulations promulgated theretmder, shall subject
the offender to a civil penalty of up to $5000.

If a participating candidate's aggregate expenditures exceed the expend-
iture limitations, the candidate is liable for a civil penalty in an
amount equal to three times the amount of the excess.

LEGISLATIVE HISTORY:

2010: A.10927/S.7506 - Held in Elections

JUSTIFICATION:

PUBLIC FINANCING:

This bill provides a comprehensive yet balanced approach to the public
financing of political campaigns. It contains significant but realistic
limitations on expenditures and contribution receipts, a means for
recovering public funds when they are unspent, excessive or used for
prohibited purposes, and penalties for violations of the filing require-
ments or the expenditure limitations for participants.

The hybrid "matching plus grant" structure of the program has several
advantages. It will reduce the amount of time a candidate must spend
raising money, leaving more time to address the issues that are impor-
tant to the public. The matching component allows for participation by
private citizens throughout the campaign while also conserving resources
by ensuring that only candidates who can show substantial voter support
and face opposition will be eligible to receive public funds. The grant
components, containing four separate triggers, allow candidates that are
outspent to remain competitive without giving a participating candidate
an unnecessary windfall.

The identification requirement for independent political communications,
the filing requirement for independent expenditures and the requirement
that candidates disclose their intent to spend personal funds in a
campaign provide both participants and nonparticipants with a more tran-
sparent and fairer political dynamic. The opportunity for party commit-
tees to make limited expenditures in support of participating candidates
provides flexibility to both the candidates and the parties.

Overall, the bill strikes a balance that allows challengers and incum-
bents to compete fairly while capping the amount of public funds that
will be expended.

CONTRIBUTION LIMITS FOR NON-PARTICIPATING CANDIDATES:

Presently a single contributor may give up to $55,900 to a candidate
during a single election cycle ($18,100 for the primary and $37,800 for
the general election). This figure is the highest among any of the 45
states that place limits on campaign contributions. It is important that
the legislature take steps to reduce the excessive contributions
currently permitted by law.

PERSONAL USE OF CAMPAIGN FUNDS:

This bill addresses a number of concerns with how campaign funds are
raised and expended. Currently, New York's election law, allowing candi-
dates to spend campaign funds for "any lawful purpose," is among the
most lax in the nation. While spending campaign funds for personal use

is technically prohibited, the lack of any definition for what consti-
tutes a personal use renders the provision meaningless. This shortcoming
in the law is striking when compared to the detailed restrictions issued
by the Federal Election Commission. And when it is combined with the
provision that allows elected officials to retain campaign funds for any
use related to the holding of public office, it gives legislators virtu-
al carte blanche for expenditures that are, at best, tangentially
related to their campaigns and official duties.

Examples of successful, unsuccessful or former candidates using excess
campaign funds for luxury vehicles, sky boxes, extravagant meals, inter-
national travel and home improvements have regularly appeared in newspa-
pers across the state. There is a growing and justifiable public percep-
tion that campaign funds are being used to enhance the post election
lifestyles of candidates for public office. Such largesse turns the
ideal of representatives serving the public on its head.

Campaign donors have a reasonable expectation that their contributions
will be used for the candidate's election efforts and the execution of
his or her duties. They do not expect their contributions to subsidize
personal spending. This legislation addresses these abuses while
preserving elected officials' ability to fund the legitimate work of
their offices.

By adding a detailed list, both in generalities and specific examples,
to the current language, the line as to what can and cannot be done is
brightly drawn. In addition to the obvious need to spend campaign funds
on campaigns, the expanded definition makes it clear that expenditures
related to holding plmlic office are restricted to those costs that
would not otherwise be incurred if an individual was a private citizen.

In addition, the bill sets limits on how long campaign committees can be
maintained by former candidates. Reports of committees continuing years
after campaigns were ended are all too common. By setting time limits
and also specifying how excess funds can be disbursed, this abuse will
be eliminated.

The bill also requires campaign committees to identify contributions
from registered lobbyists. This is in response to concerns that recent
changes in the interpretation of what constitutes an illegal gift by the
commission will result in the use of campaign funds from lobbyists in
place of the prohibited gifts from lobbyists. Coupled with the more
stringent standard for the personal use of campaign funds, the detailing
of lobbyists contributions will make it all the more difficult to justi-
fy such expenditures.

Finally the bill prohibits the soliciting or receiving of contributions
for a campaign for state or federal office while in a senior policy
position in the legislative or executive branch. This is in response to
the recent disclosure that the head of an executive agency who acknowl-
edged that he was not a candidate for any office, continued to raise and
spend campaign funds to enhance his life style. To engage in such

actions while overseeing an industry which is actively and at great
expense lobbies state government, at the very least gives the impression
that favorable decisions were being sold and, true or not, feeds public
cynicism. The legislation, again in conjunction with the new, more
clearly delineated limits on the 11se of campaign funds, prohibits such
misuse of campaign funds.

STRENGTHENED CAMPAIGN FINANCE ENFORCEMENT:

To promote increased enforcement of campaign finance reform laws, the
legislation creates an enforcement unit within the New York State Board
of Elections (BOE). Additionally, it expands the jurisdiction of the
enforcement unit and promotes the independence of the enforcement coun-
sel by making the office a four-year term.

The bill also requires that at least 35% of the annual State Board of
Elections budget go toward paying the expenses of the enforcement unit.

FISCAL IMPLICATIONS:

There would be no cost in 2011, 2012 and 2013.

In 2014, there could be costs associated with participating candidates
seeking election to a statewide office and constitutional delegate.
There will be no cost in 2015. In 2016, there could be costs associated
with participating candidates seeking election to state legislative
office. There would be no cost in 2017. In 2018, there could be costs
associated with participating candidates seeking election to a statewide
office, state legislative office and constitutional delegate. Other
states that have public financing systems in place have had very low
participation rates at first, with increasing participation in later
elections. The long-term cost of the system in New York is unknown.

EFFECTIVE DATE:

This act takes effect immediately; provided, however, that all statewide
candidates and constitutional delegates will be eligible to participate
in 2015 and state legislative candidates will be eligible to participate
in 2017.

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

                                 3584--B

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 28, 2011
                               ___________

Introduced  by  Sens. ADAMS, ADDABBO, AVELLA, BRESLIN, DUANE, ESPAILLAT,
  GIANARIS, KRUEGER, MONTGOMERY, OPPENHEIMER, PERALTA, PERKINS,  RIVERA,
  SAMPSON,  SERRANO,  SQUADRON,  STAVISKY, STEWART-COUSINS -- read twice
  and ordered printed, and when printed to be committed to the Committee
  on Elections -- recommitted to the Committee on Elections  in  accord-
  ance with Senate Rule 6, sec. 8 -- committee discharged, bill amended,
  ordered  reprinted  as  amended  and  recommitted to said committee --
  committee discharged and said bill committed to the Committee on Rules
  -- committee discharged, bill amended, ordered  reprinted  as  amended
  and recommitted to said committee

AN  ACT  enacting  the  "2012 Campaign Finance Reform Act"; to amend the
  election law, the state finance law and the tax law,  in  relation  to
  providing  for  optional  partial public financing of certain election
  campaigns in this state; and to amend the election law, in relation to
  limiting personal use of campaign funds, establishing certain contrib-
  ution limits, identification of the source of certain political commu-
  nications and providing for a state  board  of  elections  enforcement
  unit and counsel

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

  Section 1. Short title.  This act shall be known and may be  cited  as
the "2012 Campaign Finance Reform Act".
  S  2.  Legislative findings and declaration.  The legislature declares
that it is in the public interest to create and ensure a truly democrat-
ic political system in which citizens,  irrespective  of  their  income,
status,  or financial connections, are enabled and encouraged to compete
for public office. Therefore, the  legislature  finds  it  necessary  to
establish  a system of public financing for all qualified candidates for
state elective offices and constitutional convention delegates.
  S 3. The article heading of article 14 of the election law is  amended
to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04571-03-2

S. 3584--B                          2

          CAMPAIGN RECEIPTS AND EXPENDITURES; PUBLIC FINANCING

  S  4. Section 14-100 of the election law is amended by adding four new
subdivisions 12, 13, 14 and 15 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.
  15.  "INTERMEDIARY"  MEANS  AN  INDIVIDUAL,  CORPORATION, PARTNERSHIP,
POLITICAL COMMITTEE, EMPLOYEE ORGANIZATION, OR OTHER ENTITY WHICH, OTHER
THAN IN THE REGULAR COURSE OF BUSINESS AS A POSTAL, DELIVERY, OR MESSEN-
GER SERVICE, DELIVERS ANY CONTRIBUTION FROM ANOTHER PERSON OR ENTITY  TO
A  CANDIDATE  OR  AN  AUTHORIZED  COMMITTEE.    "INTERMEDIARY" SHALL NOT
INCLUDE SPOUSES, PARENTS, CHILDREN, OR SIBLINGS  OF  THE  PERSON  MAKING
SUCH CONTRIBUTION.
  S  5.  Section  14-106 of the election law, as amended by section 2 of
part E of chapter 399 of the  laws  of  2011,  is  amended  to  read  as
follows:
  S 14-106. Political communication. The statements required to be filed
under  the provisions of this [article] TITLE next succeeding a primary,
general or special election shall be accompanied by a copy of all broad-
cast, cable or satellite schedules  and  scripts,  internet,  print  and
other  types of advertisements, pamphlets, circulars, flyers, brochures,
letterheads and other printed matter purchased or produced, AND  REPROD-
UCTIONS  OF  STATEMENTS  OR INFORMATION CONVEYED TO FIVE HUNDRED OR MORE
MEMBERS OF A GENERAL PUBLIC AUDIENCE BY  COMPUTER  OR  OTHER  ELECTRONIC
MEANS,  purchased  in  connection  with  such  election  by or under the
authority of the person filing the statement or  the  committee  or  the
person  on  whose  behalf  it is filed, as the case may be. Such 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  6.  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
TITLE:
  (A)  "INDEPENDENT  EXPENDITURE"  MEANS AN EXPENDITURE MADE BY A PERSON
FOR AN AUDIO OR VIDEO COMMUNICATION TO A  GENERAL  PUBLIC  AUDIENCE  VIA

S. 3584--B                          3

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
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) "ELECTIONEERING COMMUNICATION" MEANS A COMMUNICATION THAT:  (I) IS
DISSEMINATED BY MEANS OF A RADIO, TELEVISION, CABLE, OR SATELLITE BROAD-
CAST, A PAID ADVERTISEMENT SUCH AS IN A PERIODICAL OR ON A BILLBOARD, OR
A  MASS  MAILING;  (II)  IS DISSEMINATED WITHIN THIRTY DAYS OF A COVERED
PRIMARY OR SPECIAL ELECTION, OR WITHIN SIXTY DAYS OF A  COVERED  GENERAL
ELECTION;  AND  (III)  REFERS  TO  ONE OR MORE CLEARLY IDENTIFIED BALLOT
PROPOSALS AND/OR CANDIDATES FOR  A  COVERED  ELECTION.    ELECTIONEERING
COMMUNICATION  SHALL  NOT INCLUDE A CANDIDATE-RELATED COMMUNICATION MADE
BY AN ORGANIZATION  OPERATING  AND  REMAINING  IN  GOOD  STANDING  UNDER
SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986.
  (D)  FOR THE PURPOSES OF THIS SECTION, THE TERM "MASS MAILING" MEANS A
MAILING BY UNITED STATES MAIL, COMMON CARRIER, OR FACSIMILE OF MORE THAN
FIVE HUNDRED PIECES OF MAIL MATTER  OF  AN  IDENTICAL  OR  SUBSTANTIALLY
SIMILAR NATURE WITHIN ANY THIRTY-DAY PERIOD.
  (E) FOR PURPOSES OF THIS SECTION, THE TERM "PERSON" SHALL MEAN PERSON,
GROUP OF PERSONS, ENTITY, ORGANIZATION, CORPORATION OR ASSOCIATION.
  (F) FOR PURPOSES OF THIS SECTION, THE TERM "INDEPENDENT SPENDER" SHALL
MEAN AN INDIVIDUAL OR ENTITY THAT MAKES AN INDEPENDENT EXPENDITURE.
  2. WHENEVER ANY PERSON MAKES ONE OR MORE INDEPENDENT EXPENDITURES THAT
IN THE AGGREGATE EXCEEDS ONE THOUSAND DOLLARS IN ANY CALENDAR YEAR, SUCH
COMMUNICATION DESCRIBED IN SUBDIVISION ONE OF THIS SECTION SHALL CLEARLY
STATE,  WITH  RESPECT  TO  COMMUNICATIONS REGARDING CANDIDATES, THAT THE
COMMUNICATION IS NOT AUTHORIZED BY ANY CANDIDATE, ANY CANDIDATE'S  POLI-
TICAL  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 COMMUNI-
CATION, 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 OR ELECTIONEER-
ING  COMMUNICATIONS  THAT  COST  MORE  THAN  ONE THOUSAND DOLLARS IN THE
AGGREGATE SHALL REPORT SUCH INDEPENDENT EXPENDITURES  OR  ELECTIONEERING
COMMUNICATIONS  TO  THE STATE BOARD OF ELECTIONS IN THE MANNER SPECIFIED
IN SECTION 14-108 OF THIS TITLE.
  (B) ANY INDEPENDENT EXPENDITURE OR ELECTIONEERING  COMMUNICATION  MADE
AFTER  THE CLOSE OF THE PERIOD TO BE COVERED IN THE LAST STATEMENT FILED
BEFORE ANY  PRIMARY,  GENERAL  OR  SPECIAL  ELECTION,  BUT  BEFORE  SUCH

S. 3584--B                          4

ELECTION,  SHALL BE REPORTED WITHIN TWENTY-FOUR HOURS IN THE SAME MANNER
AS PROVIDED FOR IN SUBDIVISION TWO OF SECTION 14-108 OF THIS TITLE.
  4. EACH SUCH STATEMENT SHALL INCLUDE:
  (A) THE NAME AND ADDRESS OF THE PERSON MAKING THE STATEMENT;
  (B)  THE  NAME, ADDRESS, OCCUPATION, AND EMPLOYER OF THE PERSON MAKING
THE INDEPENDENT EXPENDITURE OR ELECTIONEERING COMMUNICATION;
  (C) THE NAME, ADDRESS, OCCUPATION, AND EMPLOYER OF ANY PERSON OR ENTI-
TY PROVIDING A GIFT, LOAN, ADVANCE OR DEPOSIT OF ONE HUNDRED DOLLARS  OR
MORE FOR THE INDEPENDENT EXPENDITURE OR ELECTIONEERING COMMUNICATION, 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 ORGANIZA-
TION IS NOT REQUIRED FOR A GIFT, LOAN, ADVANCE OR DEPOSIT OF ONE HUNDRED
DOLLARS OR MORE TO A LABOR ORGANIZATION OR A  LABOR  ORGANIZATION  POLI-
TICAL ACTION COMMITTEE;
  (D) THE DOLLAR AMOUNT PAID FOR EACH INDEPENDENT EXPENDITURE OR ELECTI-
ONEERING  COMMUNICATION,  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 OR ELECTIONEERING COMMUNICATION; AND
  (E)  THE ELECTION TO WHICH THE INDEPENDENT EXPENDITURE OR ELECTIONEER-
ING COMMUNICATION PERTAINS AND THE NAME OF THE CLEARLY IDENTIFIED CANDI-
DATE OR THE BALLOT PROPOSAL REFERENCED.
  5. ANY REPORT MADE PURSUANT TO THIS SECTION SHALL INCLUDE  A  COPY  OF
ALL  MATERIALS  THAT  PERTAIN TO THE INDEPENDENT EXPENDITURE OR ELECTIO-
NEERING COMMUNICATION, 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 OR
ELECTIONEERING COMMUNICATION  SHALL  INCLUDE  WRITTEN  EVIDENCE  OF  THE
INDEBTEDNESS.
  7. CONTRIBUTIONS:
  (A)  WHEN  AN  INDEPENDENT  SPENDER  THAT  IS  AN ENTITY MAKES COVERED
EXPENDITURES OF ONE HUNDRED DOLLARS OR MORE  AGGREGATING  FIVE  THOUSAND
DOLLARS OR MORE IN THE TWELVE MONTHS PRECEDING THE ELECTION FOR COMMUNI-
CATIONS THAT REFER TO ANY SINGLE CANDIDATE, IT IS REQUIRED TO REPORT:
  (I) ALL CONTRIBUTIONS ACCEPTED FROM OTHER ENTITIES SINCE THE FIRST DAY
OF THE CALENDAR YEAR PRECEDING THE YEAR OF THE COVERED ELECTION; AND
  (II)  ALL  CONTRIBUTIONS  AGGREGATING  ONE  THOUSAND  DOLLARS  OR MORE
ACCEPTED FROM AN INDIVIDUAL  DURING  THE  TWELVE  MONTHS  PRECEDING  THE
ELECTION.
  (B)  EACH  CONTRIBUTIONS SHALL BE DISCLOSED IN THE REPORTING PERIOD IN
WHICH IT WAS RECEIVED. THE INDEPENDENT SPENDER SHALL PROVIDE:
  (I) FOR EACH CONTRIBUTION ACCEPTED FROM ANOTHER ENTITY,  THE  ENTITY'S
NAME, ADDRESS, AND TYPE OF ORGANIZATION;
  (II)  FOR  EACH CONTRIBUTION ACCEPTED FROM AN INDIVIDUAL, THE INDIVID-
UAL'S NAME, ADDRESS, OCCUPATION, AND EMPLOYER INFORMATION;
  (III) FOR EACH CONTRIBUTION THE DATE OF RECEIPT  AND  AMOUNT  OF  EACH
SUCH CONTRIBUTION ACCEPTED; AND
  (IV) FOR EACH CONTRIBUTION SUCH OTHER SIMILAR INFORMATION AS THE STATE
BOARD OF ELECTIONS MAY REQUIRE.
  (C)  CONTRIBUTIONS  THAT  ARE  EARMARKED FOR AN ELECTION THAT IS NOT A
COVERED ELECTION, OR FOR AN EXPLICITLY STATED NON-ELECTORAL PURPOSE, ARE
NOT REQUIRED TO BE REPORTED; PROVIDED, HOWEVER  THAT  RECORDS  OF  THESE
CONTRIBUTIONS MUST BE MAINTAINED AND MAY BE REQUESTED BY THE STATE BOARD
OF ELECTIONS TO VERIFY THEIR QUALIFICATION FOR THIS EXEMPTION.

S. 3584--B                          5

  8. 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.
  9.  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 7. 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.  Any political
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  pursuant  to
this [article] TITLE, 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.
  S  8.  Section  14-126 of the election law, as amended by section 3 of
part E of chapter 399 of the  laws  of  2011,  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] TITLE shall be  subject
to  a civil penalty, not in excess of one thousand dollars, to be recov-
erable in a special proceeding or civil action  to  be  brought  by  the
state  board  of  elections or other board of elections. Any person who,
three or more times within a given  election  cycle  for  such  term  of
office,  fails to file a statement or statements required to be filed by
this [article] TITLE, shall be subject to a civil penalty, not in excess
of ten thousand dollars, to be  recoverable  as  provided  for  in  this
subdivision.
  2.  ANY PERSON WHO KNOWINGLY AND WILLFULLY FAILS TO IDENTIFY INDEPEND-
ENT  EXPENDITURES  AS  REQUIRED  BY SUBDIVISION TWO OF SECTION 14-107 OF
THIS TITLE OR KNOWINGLY  AND  WILLFULLY  FAILS  TO  FILE  THE  STATEMENT
REQUIRED  BY  SUBDIVISION  TWO  OF SECTION 14-112 OF THIS TITLE SHALL BE
SUBJECT TO A CIVIL PENALTY IN  A  SPECIAL  PROCEEDING  OR  CIVIL  ACTION
BROUGHT BY THE STATE BOARD OF ELECTIONS.
  3.  Any person who, acting as or on behalf of a candidate or political
committee, under circumstances evincing an intent to violate  such  law,
unlawfully accepts a contribution in excess of a contribution limitation
established  in  this  [article] TITLE, shall be required to refund such
excess amount and shall be subject to  a  civil  penalty  equal  to  the
excess amount plus a fine of up to ten thousand dollars, to be recovera-
ble  in  a special proceeding or civil action to be brought by the state
board of elections.
  [3.] 4. Any person who knowingly and willfully fails to file a  state-
ment  required to be filed by this [article] TITLE within ten days after
the date provided for filing such statement or any person who  knowingly
and willfully violates any other provision of this [article] TITLE shall
be guilty of a misdemeanor.
  [4.] 5. 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] TITLE  shall
be guilty of a misdemeanor.
  [5.] 6. 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

S. 3584--B                          6

of any candidate, or solicit any person to make any  such  expenditures,
for  the  purpose of evading the contribution limitations of this [arti-
cle] TITLE, shall be guilty of a class E felony.
  S  9. Sections 14-100 through 14-132 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  10. 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. LIMITATIONS ON THE RECEIPT OF PUBLIC FUNDS.
        14-212. EXAMINATIONS AND AUDITS; REPAYMENTS.
        14-214. CIVIL PENALTIES.
        14-216. DEBATES.
  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  ANY  OF  THE OFFICES OF GOVERNOR, LIEUTENANT GOVERNOR,
COMPTROLLER, ATTORNEY GENERAL, MEMBER OF THE STATE LEGISLATURE, AT-LARGE
DELEGATE TO A  CONSTITUTIONAL  CONVENTION  OR  DISTRICT  DELEGATE  TO  A
CONSTITUTIONAL CONVENTION.
  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, GENERAL
OR SPECIAL ELECTION IS HELD FOR THE PUBLIC OFFICE SOUGHT.  A  MULTI-CAN-
DIDATE 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  (A)  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 OR (B) IN THE CASE OF A
SPECIAL ELECTION, WITHIN SIX MONTHS OF SUCH ELECTION BY NATURAL  PERSONS
RESIDENT  IN  THE  STATE  OF  NEW  YORK TO A CANDIDATE FOR NOMINATION OR
ELECTION TO ANY OF THE OFFICES COVERED BY THE PROVISIONS OF  THIS  TITLE
WHICH  DO  NOT  EXCEED ONE HUNDRED SEVENTY-FIVE 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.  A
LOAN MAY NOT BE TREATED AS A MATCHABLE CONTRIBUTION.
  THE FOLLOWING CONTRIBUTIONS ARE NOT MATCHABLE:
  (I) IN-KIND CONTRIBUTIONS OF PROPERTY, GOODS, OR SERVICES;
  (II)  CONTRIBUTIONS IN THE FORM OF THE PURCHASE PRICE PAID FOR AN ITEM
WITH SIGNIFICANT INTRINSIC AND ENDURING VALUE;
  (III) CONTRIUBTIONS IN THE FORM OF THE  PURCHASE  PRICE  PAID  FOR  OR
OTHERWISE  INDUCED  BY  A CHANCE TO PARTICIPATE IN A RAFFLE, LOTTERY, OR
SIMILAR DRAWING FOR VALUABLE PRIZES;

S. 3584--B                          7

  (IV) MONEY ORDER CONTRIBUTIONS FROM ANY ONE CONTRIBUTOR THAT  ARE,  IN
THE AGGREGATE, GREATER THAN ONE HUNDRED DOLLARS;
  (V) CONTRIBUTIONS FROM INDIVIDUALS UNDER THE AGE OF EIGHTEEN YEARS;
  (VI)  CONTRIBUTIONS  FROM INDIVIDUAL VENDORS TO WHOM THE PARTICIPATING
CANDIDATE OR HIS OR HER PRINCIPAL COMMITTEE  MAKES  AN  EXPENDITURE,  IN
FURTHERANCE  OF  THE  NOMINATION FOR ELECTION OR ELECTION COVERED BY THE
CANDIDATE'S CERTIFICATION, UNLESS SUCH  EXPENDITURE  IS  REIMBURSING  AN
ADVANCE; AND
  (VII) CONTRIBUTION FROM LOBBYISTS REGISTERED PURSUANT TO ARTICLE ONE-A
OF THE LEGISLATIVE LAW.
  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.
  10.  THE  TERM  "PUBLIC  FUNDING LIMIT" SHALL MEAN THE TOTAL AMOUNT OF
PUBLIC FUNDS THAT A PARTICIPATING CANDIDATE MAY RECEIVE FOR ANY  PRIMARY
OR GENERAL ELECTION.
  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 STATEWIDE  OFFICE,  THE  STATE  LEGISLATURE  OR
DELEGATE TO A CONSTITUTIONAL CONVENTION AT A PRIMARY, GENERAL OR SPECIAL
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  OR,  IN  THE
CASE OF A SPECIAL ELECTION, NOT LATER THAN THE LAST DAY TO FILE NOMINAT-
ING CERTIFICATES FOR SUCH OFFICE;
  (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 CANDIDATES IN
A PRIMARY, GENERAL OR SPECIAL ELECTION FOR THE FOLLOWING  OFFICES  SHALL
BE:
  (A)  GOVERNOR  IN  A  PRIMARY  OR  GENERAL ELECTION. NOT LESS THAN SIX
HUNDRED FIFTY THOUSAND DOLLARS FROM AT LEAST SIX THOUSAND  FIVE  HUNDRED
MATCHABLE  CONTRIBUTIONS  MADE  UP  OF  SUMS  OF UP TO TWO HUNDRED FIFTY
DOLLARS PER INDIVIDUAL CONTRIBUTOR WHO RESIDES IN NEW YORK STATE.
  (B) LIEUTENANT GOVERNOR IN  A  PRIMARY  ELECTION  AND  COMPTROLLER  OR
ATTORNEY  GENERAL  IN  A  PRIMARY OR GENERAL ELECTION. NOT LESS THAN TWO
HUNDRED THOUSAND DOLLARS FROM AT LEAST TWO THOUSAND  MATCHABLE  CONTRIB-

S. 3584--B                          8

UTIONS MADE UP OF SUMS OF UP TO TWO HUNDRED FIFTY DOLLARS PER INDIVIDUAL
CONTRIBUTOR WHO RESIDES IN NEW YORK STATE.
  (C)  MEMBERS  OF  THE  STATE  SENATE  IN A PRIMARY, GENERAL OR SPECIAL
ELECTION. NOT LESS THAN TWENTY-FIVE THOUSAND DOLLARS FROM AT  LEAST  TWO
HUNDRED  FIFTY  MATCHABLE  CONTRIBUTIONS  MADE  UP  OF SUMS OF UP TO TWO
HUNDRED FIFTY DOLLARS PER INDIVIDUAL CONTRIBUTOR WHO RESIDES IN NEW YORK
STATE INCLUDING AT LEAST TWELVE THOUSAND FIVE HUNDRED  DOLLARS  FROM  AT
LEAST  ONE HUNDRED TWENTY-FIVE INDIVIDUAL CONTRIBUTORS WHO RESIDE IN THE
SENATE DISTRICT IN WHICH THE SEAT IS TO BE FILLED.
  (D) MEMBERS OF THE ASSEMBLY IN A PRIMARY, GENERAL OR SPECIAL ELECTION.
NOT LESS THAN TEN THOUSAND DOLLARS FROM AT LEAST ONE  HUNDRED  MATCHABLE
CONTRIBUTIONS  MADE  UP  OF  SUMS OF UP TO TWO HUNDRED FIFTY DOLLARS PER
INDIVIDUAL CONTRIBUTOR WHO RESIDES IN NEW YORK STATE INCLUDING AT  LEAST
FIVE  THOUSAND DOLLARS FROM AT LEAST FIFTY INDIVIDUALS WHO RESIDE IN THE
ASSEMBLY DISTRICT IN WHICH THE SEAT IS TO BE FILLED.
  (E) AT-LARGE DELEGATE TO A CONDITIONAL  CONVENTION  IN  A  PRIMARY  OR
GENERAL  ELECTION.  NOT  LESS THAN TWENTY THOUSAND DOLLARS FROM AT LEAST
TWO HUNDRED MATCHABLE CONTRIBUTIONS MADE UP OF SUMS OF UP TO TWO HUNDRED
FIFTY DOLLARS PER INDIVIDUAL CONTRIBUTOR WHO RESIDES IN NEW YORK STATE.
  (F) DISTRICT DELEGATE TO A CONSTITUTIONAL CONVENTION IN A PRIMARY   OR
GENERAL  ELECTION.  NOT  LESS  THAN  FIVE THOUSAND DOLLARS FROM AT LEAST
FIFTY MATCHABLE CONTRIBUTIONS MADE UP OF SUMS OF UP TO TWO HUNDRED FIFTY
DOLLARS PER INDIVIDUAL CONTRIBUTOR WHO RESIDES IN THE DISTRICT IN  WHICH
THE SEAT IS TO BE FILLED.
  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.
  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.  THE  PROVISIONS OF THIS SUBDIVISION SHALL NOT
APPLY TO CANDIDATES FOR THE OFFICE OF LIEUTENANT GOVERNOR.
  5. CANDIDATES WHO ARE UNOPPOSED IN A GENERAL OR SPECIAL ELECTION SHALL
NOT BE ELIGIBLE TO RECEIVE PUBLIC FUNDS.
  6.  NO CANDIDATE FOR ELECTION TO AN OFFICE IN A PRIMARY,  GENERAL,  OR
SPECIAL  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 HAS ALSO QUALIFIED
FOR THE BALLOT.
  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  OR,
IN  THE  CASE  OF A SPECIAL ELECTION, FOR EXPENDITURES DURING THE PERIOD
COMMENCING THREE MONTHS BEFORE AND ENDING ONE MONTH AFTER  SUCH  SPECIAL
ELECTION.
  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 FOR 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, IN EXCESS OF THE FAIR

S. 3584--B                          9

MARKET VALUE OF THE SERVICES, MATERIALS, FACILITIES, OR OTHER THINGS  OF
VALUE RECEIVED IN EXCHANGE;
  (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 PRIMARY, GENERAL  AND  SPECIAL  ELECTIONS  MAY
OBTAIN PAYMENT TO A PARTICIPATING COMMITTEE FROM PUBLIC FUNDS FOR QUALI-
FIED  CAMPAIGN  EXPENDITURES.  NO  SUCH  PUBLIC FUNDS SHALL BE PAID TO A
PARTICIPATING 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
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 SIX DOLLARS IN PUBLIC FUNDS FOR EACH ONE DOLLAR OF MATCH-
ABLE  CONTRIBUTIONS  OBTAINED AND REPORTED TO THE STATE BOARD IN ACCORD-
ANCE WITH THE PROVISIONS OF THIS TITLE, PROVIDED, HOWEVER,  SUCH  PUBLIC
FUNDS SHALL ONLY BE USED FOR QUALIFIED CAMPAIGN EXPENDITURES.
  3.  (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.
  4. THE STATE BOARD SHALL PROMPTLY EXAMINE ALL REPORTS OF CONTRIBUTIONS
TO DETERMINE WHETHER THEY MEET THE REQUIREMENTS FOR  MATCHABLE  CONTRIB-
UTIONS, AND SHALL KEEP A RECORD OF SUCH CONTRIBUTIONS.
  5.  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

S. 3584--B                         10

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,
SPECIAL OR GENERAL ELECTION FOR ANY STATEWIDE OFFICE, STATE  LEGISLATIVE
OFFICE  OR  CONSTITUTIONAL CONVENTION DELEGATE NO CONTRIBUTOR MAY MAKE A
CONTRIBUTION TO ANY PARTICIPATING CANDIDATE OR SUCH CANDIDATE'S  PARTIC-
IPATING  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 GOVERNOR OR LIEUTENANT GOVERNOR 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  TWO
MILLION   FIVE   HUNDRED   THOUSAND  DOLLARS;  PROVIDED,  HOWEVER,  THAT
TWENTY-FIVE PERCENT OF SUCH AMOUNT MAY BE ACCEPTED  IN  THE  FORM  OF  A
TRANSFER.
  (B)  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 ATTORNEY GENERAL OR 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.
  (C)  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  SENATOR  IN  A PRIMARY, GENERAL OR
SPECIAL 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
HUNDRED THOUSAND DOLLARS; PROVIDED, HOWEVER, THAT TWENTY-FIVE PERCENT OF
SUCH AMOUNT MAY BE ACCEPTED IN THE FORM OF A TRANSFER.
  (D)  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 MEMBER OF THE ASSEMBLY IN A PRIMARY, GENERAL
OR  SPECIAL  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 FIFTY
THOUSAND DOLLARS; PROVIDED, HOWEVER, THAT TWENTY-FIVE  PERCENT  OF  SUCH
AMOUNT MAY BE ACCEPTED IN THE FORM OF A TRANSFER.
  (E)  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  DELEGATE  AT-LARGE  TO  A  CONSTITUTIONAL
CONVENTION IN A  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  FIFTY  THOUSAND  DOLLARS;  PROVIDED,  HOWEVER,  THAT TWENTY-FIVE
PERCENT OF SUCH AMOUNT MAY BE ACCEPTED IN THE FORM OF A TRANSFER.
  (F) 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  DISTRICT  DELEGATE  TO  A  CONSTITUTIONAL
CONVENTION  IN  A  GENERAL  ELECTION  OR  SUCH CANDIDATE'S PARTICIPATING
COMMITTEE MAY ACCEPT FROM A STATE PARTY COMMITTEE  WHICH  HAS  NOMINATED

S. 3584--B                         11

SUCH  CANDIDATE, SERVICES IN AN AMOUNT WHICH, IN THE AGGREGATE, DOES NOT
EXCEED TEN THOUSAND DOLLARS; PROVIDED, HOWEVER, THAT TWENTY-FIVE PERCENT
OF SUCH AMOUNT MAY BE ACCEPTED IN THE FORM OF A TRANSFER.
  (G)  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 STATEWIDE
OFFICE OR STATE LEGISLATIVE OFFICE, INCLUDING  WITHIN  THE  TERM  COUNTY
COMMITTEE  ANY  OF ITS SUBCOMMITTEES, MAY EXPEND IN SUPPORT OF EACH SUCH
CANDIDATE FOR STATEWIDE OFFICE 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.  CONTRIBUTIONS TO A PARTICIPATING  CANDIDATE  OR
PARTICIPATING  COMMITTEE WHICH WERE RECEIVED BEFORE JANUARY FIRST OF THE
YEAR IN WHICH THE PRIMARY OR GENERAL ELECTION IS  HELD  FOR  THE  PUBLIC
OFFICE  SOUGHT  OR, IN THE CASE OF A SPECIAL ELECTION RECEIVED MORE THAN
SIX MONTHS BEFORE THE SPECIAL ELECTION,  MAY  NOT  BE  EXPENDED  IN  ANY
ELECTION FOR ANY SUCH OFFICE.
  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.  LIMITATIONS  ON THE RECEIPT OF PUBLIC FUNDS. THE FOLLOWING
EXPENDITURE LIMITATIONS APPLY TO THE RECEIPT OF PUBLIC FUNDS BY  PARTIC-
IPATING  CANDIDATES  AND  THEIR  PARTICIPATING COMMITTEES RECEIVING SUCH
PUBLIC FUNDS PURSUANT TO THE PROVISIONS OF THIS TITLE:
  1. (A) IN ANY PRIMARY ELECTION, RECEIPT OF PUBLIC FUNDS BY PARTICIPAT-
ING CANDIDATES AND BY THEIR PARTICIPATING COMMITTEES SHALL NOT EXCEED:
  (I) FOR GOVERNOR, 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 NINE HUNDRED THOUSAND DOLLARS NOR  MORE  THAN
NINE MILLION DOLLARS;
  (II) FOR LIEUTENANT GOVERNOR, COMPTROLLER OR ATTORNEY GENERAL, THE SUM
OF  ONE  DOLLAR AND TEN CENTS FOR EACH VOTER ENROLLED IN THE CANDIDATE'S

S. 3584--B                         12

PARTY IN THE STATE; PROVIDED, HOWEVER, SUCH SUM SHALL NOT BE  LESS  THAN
SIX HUNDRED THOUSAND DOLLARS NOR MORE THAN SIX MILLION DOLLARS;
  (III)  FOR  SENATOR,  THE  SUM OF TWO DOLLARS AND FIFTY CENTS FOR EACH
VOTER  ENROLLED  IN  THE  CANDIDATE'S  PARTY  IN  THE  SENATE  DISTRICT;
PROVIDED,  HOWEVER, SUCH SUM SHALL NOT BE LESS THAN THIRTY-FIVE THOUSAND
DOLLARS NOR MORE THAN THREE HUNDRED FIFTY THOUSAND DOLLARS;
  (IV) FOR MEMBER OF THE ASSEMBLY, THE SUM  OF  TWO  DOLLARS  AND  FIFTY
CENTS  FOR  EACH VOTER ENROLLED IN THE CANDIDATE'S PARTY IN THE ASSEMBLY
DISTRICT; PROVIDED, HOWEVER, SUCH SUM SHALL NOT  BE  LESS  THAN  FIFTEEN
THOUSAND DOLLARS NOR MORE THAN ONE HUNDRED FIFTY THOUSAND DOLLARS;
  (V)  FOR  AT-LARGE DELEGATE TO A CONSTITUTIONAL CONVENTION, THE SUM OF
FIFTEEN CENTS FOR EACH VOTER ENROLLED IN THE CANDIDATE'S  PARTY  IN  THE
STATE;  PROVIDED,  HOWEVER, SUCH SUM SHALL NOT BE LESS THAN SEVENTY-FIVE
THOUSAND  DOLLARS  NOR  MORE  THAN  ONE  HUNDRED  SEVENTY-FIVE  THOUSAND
DOLLARS;
  (VI) FOR DISTRICT DELEGATES TO A CONSTITUTIONAL CONVENTION, THE SUM OF
ONE  DOLLAR  AND  TEN  CENTS  FOR EACH VOTER ENROLLED IN THE CANDIDATE'S
PARTY IN THE DISTRICT; PROVIDED, HOWEVER, SUCH SUM  SHALL  NOT  BE  LESS
THAN FIVE THOUSAND DOLLARS NOR MORE THAN FIFTY THOUSAND DOLLARS;
  (B)  THE ENROLLMENT NUMBERS USED TO CALCULATE THE PUBLIC FUNDS RECEIPT
LIMITS PROVIDED FOR IN THIS SUBDIVISION SHALL BE  THE  ENROLLMENTS  DULY
REPORTED  BY  THE  APPROPRIATE  BOARD  OR  BOARDS AS OF THE LAST GENERAL
ELECTION PRECEDING THE PRIMARY ELECTION.
  2. IN ANY GENERAL OR SPECIAL ELECTION,  RECEIPT  OF  PUBLIC  FUNDS  BY
PARTICIPATING  CANDIDATES FOR THE FOLLOWING OFFICES AND BY THEIR PARTIC-
IPATING COMMITTEES SHALL NOT EXCEED THE FOLLOWING AMOUNTS:
CANDIDATES FOR ELECTION TO THE OFFICE OF:
GOVERNOR AND LIEUTENANT GOVERNOR             $12,000,000
 (COMBINED)
ATTORNEY GENERAL                             $8,000,000
COMPTROLLER                                  $8,000,000
MEMBER OF SENATE                             $350,000
MEMBER OF ASSEMBLY                           $150,000
DELEGATE AT-LARGE TO A CONSTITUTIONAL        $350,000
 CONVENTION
DISTRICT DELEGATE TO A CONSTITUTIONAL        $75,000
 CONVENTION
  3. PARTICIPATING CANDIDATES FOR OFFICE WHO ARE UNOPPOSED IN THE PRIMA-
RY ELECTION MAY RECEIVE PUBLIC FUNDS BEFORE THE  PRIMARY  ELECTION,  FOR
SERVICES,  MATERIALS  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 RECEIVE 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. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE  AMOUNT  OF
PRIVATE  FUNDS  A  PARTICIPATING  CANDIDATE  MAY  RECEIVE SUBJECT TO THE
CONTRIBUTION LIMITS CONTAINED IN SECTION 14-208 OF THIS TITLE.
  5. 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 ENFORCEMENT UNIT
OF THE STATE BOARD SHALL CONDUCT A THOROUGH EXAMINATION AND AUDIT OF THE

S. 3584--B                         13

CONTRIBUTIONS  AND  QUALIFIED  CAMPAIGN  EXPENSES  OF  THE PARTICIPATING
COMMITTEE OF EVERY PARTICIPATING CANDIDATE WHO RECEIVED PAYMENTS  PURSU-
ANT 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.
  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. 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 14-216. DEBATES. THE STATE BOARD  SHALL  PROMULGATE  REGULATIONS  TO
FACILITATE  DEBATES AMONG PARTICIPATING CANDIDATES. PARTICIPATING CANDI-
DATES ARE REQUIRED TO PARTICIPATE IN AT  LEAST  ONE  DEBATE  BEFORE  THE
PRIMARY  ELECTION AND IN AT LEAST ONE DEBATE BEFORE THE GENERAL ELECTION
FOR WHICH THE CANDIDATE RECEIVES PUBLIC FUNDS, UNLESS THE  PARTICIPATING
CANDIDATE  IS  RUNNING  UNOPPOSED. A NONPARTICIPATING CANDIDATE MAY BE A
PARTY TO SUCH DEBATES.

S. 3584--B                         14

  S 11. 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.
  S 12. The election law is amended by adding a  new  section  4-115  to
read as follows:
  S  4-115. NOTICE TO THE STATE BOARD OF ELECTIONS OF CANDIDATES FOR THE
LEGISLATURE. 1. EACH BOARD OF ELECTIONS WITH WHICH PETITIONS  ARE  FILED
FOR MEMBER OF THE STATE LEGISLATURE SHALL, NOT LATER THAN ONE WEEK AFTER
THE  LAST  DAY TO FILE SUCH PETITIONS, SEND NOTICE TO THE STATE BOARD OF
ELECTIONS OF SUCH INFORMATION ABOUT EACH  SUCH  PETITION  AS  THE  STATE
BOARD OF ELECTIONS SHALL REQUIRE.
  2.  EACH  SUCH COUNTY BOARD OF ELECTIONS SHALL, NOT LATER THAN THE DAY
AFTER THE LAST DAY TO FILE A PETITION OR CERTIFICATE OF NOMINATION FOR A
GENERAL OR SPECIAL ELECTION OR A CERTIFICATE OF ACCEPTANCE,  DECLINATION
OR  SUBSTITUTION FOR A GENERAL, PRIMARY OR SPECIAL ELECTION FOR ANY SUCH
OFFICE, SEND TO THE STATE BOARD OF ELECTIONS SUCH INFORMATION ABOUT EACH
SUCH PETITION OR CERTIFICATE AS  THE  STATE  BOARD  OF  ELECTIONS  SHALL
REQUIRE.
  3.  IF  ANY  SUCH COUNTY BOARD OF ELECTIONS SHOULD DISQUALIFY ANY SUCH
CANDIDATE OR RULE THE PETITION OR CERTIFICATE DESIGNATING OR  NOMINATING
ANY SUCH CANDIDATE INVALID, IT SHALL FORTHWITH NOTIFY THE STATE BOARD OF
ELECTIONS OF SUCH DECISION.
  4.  IF ANY SUCH COUNTY BOARD OF ELECTIONS SHALL BE NOTIFIED OF A DECI-
SION OF A COURT OF COMPETENT JURISDICTION DISQUALIFYING ANY SUCH  CANDI-
DATE  OR DECLARING ANY SUCH PETITION INVALID OR REVERSING ANY SUCH DECI-
SION BY SUCH  BOARD  OF  ELECTIONS  OR  ANOTHER  COURT,  SUCH  BOARD  OF
ELECTIONS  SHALL  FORTHWITH  NOTIFY THE STATE BOARD OF ELECTIONS OF SUCH
DECISION.
  5. THE STATE BOARD OF ELECTIONS MAY PRESCRIBE FORMS  FOR  THE  NOTICES
REQUIRED  BY  THIS  SECTION AND SHALL PRESCRIBE THE MANNER IN WHICH SUCH
NOTICES SHALL BE GIVEN.
  S 13. The state finance law is amended by adding a new section 92-t to
read as follows:

S. 3584--B                         15

  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 SEVENTEEN, 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 CANDIDATES IN  A
SPECIAL  ELECTION  ANY  EARLIER  THAN THE DAY AFTER THE LAST DAY TO FILE
CERTIFICATES OF PARTY NOMINATION FOR SUCH SPECIAL ELECTION.
  9. 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 14. 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  TWELVE,
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

S. 3584--B                         16

HAVE  A  NEW  YORK  STATE  INCOME TAX LIABILITY FOR THE TAXABLE YEAR FOR
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 TWELVE, 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 15. 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  two  members  of  the
state  board  of  elections  who rotate as chairperson of the board. 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 2012 Campaign Finance Reform Act. The
panel shall report to the governor and the legislature on March 31, 2014
and on March 31, 2016 and on March 31 of every  other  year  thereafter.
The  report  shall  include: (a) the number of candidates 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  2012  Campaign
Finance  Reform  Act on political campaigns, including its effect on the
sources and amounts of private financing, the level of campaign expendi-
tures, 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 2012 Campaign Finance Reform Act  as  it
deems appropriate.
  S  16.  Subdivision 9 of section 14-100 of the election law is amended
by adding a new paragraph 4 to read as follows:
  (4) THE TERM "CONTRIBUTION" DOES NOT INCLUDE EXPENDITURES  BY  A  BONA
FIDE  MEMBERSHIP  ORGANIZATION IN SUPPORT OF THE FOLLOWING ACTIVITIES BY
MEMBERS OF THE ORGANIZATION WHO ARE VOLUNTEERING THEIR TIME ON BEHALF OF
A CANDIDATE, NOT TO EXCEED TWENTY-FIVE DOLLARS  PER  MEMBER  WHO  VOLUN-
TEERS,  FOR:  TRANSPORTATION  OF  VOLUNTEERS TO AND FROM CAMPAIGN ACTIV-
ITIES; COST OF FEEDING VOLUNTEERS WHILE VOLUNTEERING FOR  THE  CAMPAIGN;
AND  MATERIALS  SUCH  AS BADGES AND CLOTHING THAT IDENTIFIES THE NAME OF
THE ORGANIZATION AND/OR CANDIDATE.
  S 17. Paragraphs a and b of subdivision 1 of  section  14-114  of  the
election law, as amended by chapter 659 of the laws of 1994, are amended
to read as follows:

S. 3584--B                         17

  a. In any election for a public office to be voted on by the voters of
the  entire  state, or for nomination to any such office, no contributor
may make a contribution to any candidate or political committee, and  no
candidate  or  political  committee may accept any contribution from any
contributor,  which is in the aggregate amount greater than:  (i) in the
case of any nomination to public office, the product of the total number
of enrolled voters in the candidate's  party  in  the  state,  excluding
voters in inactive status, multiplied by $.005, but such amount shall be
not  [less]  MORE than [four] TWO thousand dollars [nor more than twelve
thousand dollars] as increased  or  decreased  by  the  cost  of  living
adjustment described in paragraph c of this subdivision, and (ii) in the
case  of  any  election  to  a public office, [twenty-five] TWO thousand
dollars as increased or decreased  by  the  cost  of  living  adjustment
described in paragraph c of this subdivision; provided however, that the
maximum  amount  which  may be so contributed or accepted, in the aggre-
gate, from any  candidate's  child,  parent,  grandparent,  brother  and
sister, and the spouse of any such persons, shall not exceed in the case
of  any  nomination to public office an amount equivalent to the product
of the number of enrolled voters in the candidate's party in the  state,
excluding  voters  in  inactive  status, multiplied by $.025, and in the
case of any election for a public office, an amount  equivalent  to  the
product of the number of registered voters in the state excluding voters
in inactive status, multiplied by $.025.
  b.  In  any  other  election  for  party position or for election to a
public office or for nomination for any such office, no contributor  may
make  a  contribution  to  any  candidate  or political committee and no
candidate or political committee may accept any  contribution  from  any
contributor,  which  is in the aggregate amount greater than: (i) in the
case of any election for party position, or  for  nomination  to  public
office, the product of the total number of enrolled voters in the candi-
date's  party in the district in which he OR SHE is a candidate, exclud-
ing voters in inactive status, multiplied by $.05, and (ii) in the  case
of  any election for a public office, the product of the total number of
registered voters in the district, excluding voters in inactive  status,
multiplied  by $.05, however in the case of a nomination within the city
of New York for the office of mayor,  public  advocate  or  comptroller,
such  amount  shall  be not [less] MORE than [four] TWO thousand dollars
[nor more than twelve thousand dollars] as increased or decreased by the
cost of living adjustment described in paragraph c of this  subdivision;
in the case of an election within the city of New York for the office of
mayor,  public  advocate  or  comptroller,  [twenty-five]  TWO  thousand
dollars as increased or decreased  by  the  cost  of  living  adjustment
described  in  paragraph  c  of this subdivision; in the case of a nomi-
nation for state senator, [four] TWO thousand dollars  as  increased  or
decreased  by  the cost of living adjustment described in paragraph c of
this subdivision; in the case of an election for  state  senator,  [six]
TWO  thousand  [two  hundred fifty] dollars as increased or decreased by
the cost of living adjustment described in paragraph c of this  subdivi-
sion;  in  the  case  of  an  election or nomination for a member of the
assembly, [twenty-five hundred] TWO THOUSAND  dollars  as  increased  or
decreased  by  the cost of living adjustment described in paragraph c of
this subdivision; [but in no event shall any such maximum  exceed  fifty
thousand  dollars or be less than one thousand dollars;] provided howev-
er, that the maximum amount which may be so contributed or accepted,  in
the  aggregate, from any candidate's child, parent, grandparent, brother
and sister, and the spouse of any such persons, shall not exceed in  the

S. 3584--B                         18

case  of any election for party position or nomination for public office
an amount equivalent to the number of enrolled voters in the candidate's
party in the district in which he  OR  SHE  is  a  candidate,  excluding
voters  in  inactive  status,  multiplied by $.25 and in the case of any
election to public office, an amount equivalent to the number of  regis-
tered  voters  in  the  district,  excluding  voters in inactive status,
multiplied by $.25; or twelve hundred fifty dollars, whichever is great-
er, or in the case of a nomination or election of a state senator, twen-
ty thousand dollars, whichever is greater, or in the  case  of  a  nomi-
nation  or  election  of  a member of the assembly, twelve thousand five
hundred dollars, whichever is greater, but in no event  shall  any  such
maximum exceed one hundred thousand dollars.
  S  18.  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 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:
  A. PROMOTING THE NOMINATION OR ELECTION OF A CANDIDATE; OR
  B.  PERFORMING  THOSE  DUTIES OF PUBLIC OFFICE OR PARTY POSITION WHICH
ARE NOT PAID FOR OR ELIGIBLE FOR REIMBURSEMENT BY THE STATE OR ANY POLI-
TICAL SUBDIVISION OR PRIVATE PARTY.
  2. PERMISSIBLE ORDINARY AND NECESSARY EXPENSES RELATING TO THE HOLDING
OF PUBLIC OFFICE OR PARTY POSITION SHALL INCLUDE:
  A. PRODUCTION AND CIRCULATION OF FLYERS  OR  OTHER  WRITTEN  MATERIALS
RELATED  TO  DUTIES  OF OFFICEHOLDER; THE PLACEMENT OF HOLIDAY GREETINGS
AND CONGRATULATORY ADS AND MEMORIAL NOTICES IN LOCAL  NEWSPAPERS,  MAGA-
ZINES, JOURNALS OR OTHER PUBLICATION;
  B.  SPONSORSHIP OR HOSTING OF COMMUNITY MEETINGS; TICKETS OR DONATIONS
TO LOCAL CHARITABLE, NON-PROFIT OR POLITICAL  EVENTS,  ORGANIZATIONS  OR
ACTIVITIES  THAT  PROMOTE  THE  WELFARE  OF  CONSTITUENTS  OR  POLITICAL
CAMPAIGNS;
  C. INCIDENTAL EXPENDITURES FOR THE OPERATION OF  LEGISLATIVE  OFFICES,
INCLUDING  PURCHASE OF ITEMS SUCH AS MEMORIAL OR GET-WELL GIFTS, FLOWERS
OR SIMILAR ITEMS OF NOMINAL VALUE FOR CONSTITUENTS OR OTHERS;
  D. MEMBERSHIP IN ORGANIZATIONS RELATED TO OFFICIAL DUTIES AND COSTS OF
ATTENDING  INFORMATIONAL  MEETINGS  ATTENDED  IN  CONNECTION  WITH  SUCH
DUTIES; AND
  E. TRAVEL RELATED TO DUTIES OF OFFICE, PROVIDED THAT THE TRAVEL IS NOT
UNDERTAKEN  FOR ANY PURPOSE RESULTING IN A PERSONAL OR FINANCIAL BENEFIT
TO THE CANDIDATE OR OFFICEHOLDER. IF SUCH EXPENSES INVOLVE BOTH PERSONAL
ACTIVITY AND CAMPAIGN OR OFFICIAL ACTIVITIES, THE  INCREMENTAL  EXPENSES
ASSOCIATED  WITH  THE  PERSONAL  ACTIVITIES ARE PERSONAL USES UNLESS THE
CAMPAIGN IS REIMBURSED FOR SUCH SUMS  FROM  OTHER  THAN  CAMPAIGN  FUNDS
WITHIN THIRTY DAYS OF THE EXPENDITURE.
  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 SIGN 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.

S. 3584--B                         19

  3.  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 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.
  4. 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 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 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 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
  I.  PAYMENT OF ANY FINES, FEES, OR PENALTIES ASSESSED PURSUANT TO THIS
CHAPTER.
  5. NO CAMPAIGN FUNDS SHALL BE USED TO PAY ATTORNEY'S FEES OR ANY COSTS
OF DEFENDING AGAINST ANY CIVIL OR CRIMINAL INVESTIGATION OR  PROSECUTION
FOR  ALLEGED  VIOLATIONS  OF  STATE  OR FEDERAL LAW ALLEGED TO HAVE BEEN
COMMITTED WHILE HOLDING PUBLIC OFFICE OR AS A CANDIDATE FOR OFFICE WHERE
THE CANDIDATE OR PUBLIC OR PARTY OFFICIAL, MEMBERS  OF  THEIR  IMMEDIATE
FAMILIES OR PARTNERS OR THE CAMPAIGN IS THE TARGET OF SUCH INVESTIGATION
OR  PROSECUTION  UNLESS  SUCH  EXPENDITURE IS USED EXCLUSIVELY FOR COSTS
RELATED TO CIVIL OR CRIMINAL ACTIONS FOR ALLEGED VIOLATIONS  RELATED  TO
ACTIVITIES PROMOTING THE NOMINATION OR ELECTION OF A CANDIDATE.
  S  19.  The  election law is amended by adding a new section 14-132 to
read as follows:
  S 14-132. DISPOSITION OF CAMPAIGN FUNDS. 1. AN  AUTHORIZED  CONTINUING
CANDIDATE COMMITTEE MUST DISPOSE OF ALL FUNDS AND CLOSE WITHIN TWO YEARS
AFTER  THE  LATER OF (A) THE END OF THE INDIVIDUAL'S MOST RECENT TERM OF
OFFICE, OR (B) THE DATE OF THE ELECTION IN WHICH THE INDIVIDUAL LAST WAS
A FILED CANDIDATE.
  2. ANY CANDIDATE OR POLITICAL COMMITTEE REQUIRED TO DISPOSE  OF  FUNDS
PURSUANT  TO  THIS SECTION SHALL, AT THE OPTION OF THE CANDIDATE, OR THE

S. 3584--B                         20

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 REVEN-
UE 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.
  3. NO CANDIDATE OR POLITICAL COMMITTEE SHALL DISPOSE OF CAMPAIGN FUNDS
BY  MAKING EXPENDITURES FOR PERSONAL USE AS DEFINED IN SECTION 14-130 OF
THIS TITLE.
  4. UPON THE DEATH OF A CANDIDATE, FORMER CANDIDATE OR HOLDER OF  ELEC-
TIVE  OFFICE,  WHO  RECEIVED  CAMPAIGN  CONTRIBUTIONS, ALL CONTRIBUTIONS
SHALL BE DISPOSED OF ACCORDING TO THIS SECTION WITHIN TWELVE  MONTHS  OF
THE DEATH OF THE CANDIDATE.
  S  20. Subdivision 1 of section 14-102 of the election law, as amended
by chapter 8 and redesignated by chapter 9  of  the  laws  of  1978,  is
amended to read as follows:
  1.  The  treasurer of every political committee which, or any officer,
member or agent of any  such  committee  who,  in  connection  with  any
election,  receives  or  expends  any  money  or other valuable thing or
incurs any liability to pay money or its equivalent  shall  file  state-
ments  sworn,  or subscribed and bearing a form notice that false state-
ments made therein are punishable as a class A misdemeanor  pursuant  to
section  210.45 of the penal law, at the times prescribed by this [arti-
cle] TITLE setting forth all the  receipts,  contributions  to  and  the
expenditures  by  and liabilities of the committee, and of its officers,
members and agents in its behalf.  Such  statements  shall  include  the
dollar  amount  of  any  receipt,  contribution or transfer, or the fair
market value of any receipt, contribution or transfer,  which  is  other
than  of  money,  the  name  and address of the transferor, contributor,
INTERMEDIARY, or person from whom received,  IF  THE  CONTRIBUTOR  IS  A
LOBBYIST REGISTERED PURSUANT TO ARTICLE ONE-A OF THE LEGISLATIVE LAW and
if  the  transferor, contributor, INTERMEDIARY, or person is a political
committee; the name of and the political unit represented by the commit-
tee, the date of its receipt, the dollar amount  of  every  expenditure,
the  name  and  address of the person to whom it was made or the name of
and the political unit represented by the committee to which it was made
and the date thereof, and  shall  state  clearly  the  purpose  of  such
expenditure.    AN  INTERMEDIARY NEED NOT BE REPORTED FOR A CONTRIBUTION
THAT WAS COLLECTED FROM A CONTRIBUTOR IN  CONNECTION  WITH  A  PARTY  OR
OTHER CANDIDATE-RELATED EVENT HELD AT THE RESIDENCE OF THE PERSON DELIV-
ERING  THE CONTRIBUTION, UNLESS THE EXPENSES OF SUCH EVENT AT SUCH RESI-
DENCE FOR SUCH CANDIDATE EXCEED FIVE HUNDRED DOLLARS  OR  THE  AGGREGATE
CONTRIBUTIONS  RECEIVED  FROM THAT CONTRIBUTOR AT SUCH EVENT EXCEED FIVE
HUNDRED DOLLARS. Any statement reporting a loan shall have  attached  to
it  a  copy  of the evidence of indebtedness. Expenditures in sums under
fifty dollars need not be specifically accounted for by  separate  items
in  said statements, and receipts and contributions aggregating not more

S. 3584--B                         21

than ninety-nine dollars, from any one contributor need not  be  specif-
ically  accounted  for  by  separate  items in said statements, provided
however, that such expenditures, receipts  and  contributions  shall  be
subject  to  the  other  provisions  of section 14-118 of this [article]
TITLE.
  S 21. Subdivision 3 of section 3-100 of the election law,  as  amended
by chapter 220 of the laws of 2005, is amended to read as follows:
  3.  The  commissioners  of  the state board of elections shall have no
other public employment. The commissioners shall receive an annual sala-
ry of twenty-five thousand dollars, within the  amounts  made  available
therefor by appropriation. The board shall, for the purposes of sections
seventy-three  and  seventy-four of the public officers law, be a "state
agency", and such commissioners shall be "officers" of the  state  board
of  elections for the purposes of such sections. Within the amounts made
available by appropriation therefor, the state board of elections  shall
appoint  two co-executive directors, [counsel] AN ENFORCEMENT COUNSEL, A
DEPUTY ENFORCEMENT COUNSEL, WHO SHALL BE A MEMBER OF A  DIFFERENT  MAJOR
POLITICAL PARTY THAN THE ENFORCEMENT COUNSEL, A SPECIAL COUNSEL, A DEPU-
TY SPECIAL COUNSEL, WHO SHALL BE A MEMBER OF A DIFFERENT MAJOR POLITICAL
PARTY  THAN  THE  SPECIAL  COUNSEL, A DIRECTOR OF ELECTION OPERATIONS, A
DEPUTY DIRECTOR OF ELECTION OPERATIONS, WHO  SHALL  BE  A  MEMBER  OF  A
DIFFERENT  MAJOR  POLITICAL  PARTY  THAN  THE DIRECTOR OF ELECTION OPER-
ATIONS, A DIRECTOR OF PUBLIC INFORMATION, A DEPUTY  DIRECTOR  OF  PUBLIC
INFORMATION,  WHO SHALL BE A MEMBER OF A DIFFERENT MAJOR POLITICAL PARTY
THAN THE DIRECTOR OF PUBLIC INFORMATION and such other staff members  as
are  necessary  in  the  exercise  of  its  functions, and may fix their
compensation. [Anytime after the effective date of the  chapter  of  the
laws  of  two  thousand  five  which  amended this subdivision, the] THE
commissioners or, in the case of a vacancy on the board, the commission-
er of each of the major political parties shall appoint one co-executive
director. Each co-executive director shall serve a term of  four  years.
THE  ENFORCEMENT COUNSEL AND THE SPECIAL COUNSEL SHALL EACH SERVE A TERM
OF FOUR YEARS AND MAY ONLY BE REMOVED FOR CAUSE.   ANY  TIME  AFTER  THE
EFFECTIVE  DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWELVE AMEND-
ING THIS SUBDIVISION, THE COMMISSIONERS, OR IN THE CASE OF A VACANCY  ON
THE  BOARD,  THE COMMISSIONER, OF EACH OF THE SAME MAJOR POLITICAL PARTY
AS  THE  INCUMBENT  ENFORCEMENT  COUNSEL,  DEPUTY  ENFORCEMENT  COUNSEL,
SPECIAL  COUNSEL,  DEPUTY  SPECIAL  COUNSEL,  DIRECTOR OF ELECTION OPER-
ATIONS, DEPUTY DIRECTOR  OF  ELECTION  OPERATIONS,  DIRECTOR  OF  PUBLIC
INFORMATION  AND  DEPUTY  DIRECTOR  OF PUBLIC INFORMATION, SHALL APPOINT
SUCH COUNSELS, DIRECTORS AND DEPUTIES. Any  vacancy  in  the  office  of
co-executive  director, ENFORCEMENT COUNSEL, DEPUTY ENFORCEMENT COUNSEL,
SPECIAL COUNSEL, DEPUTY SPECIAL  COUNSEL,  DIRECTOR  OF  ELECTION  OPER-
ATIONS,  DEPUTY  DIRECTOR  OF  ELECTION  OPERATIONS,  DIRECTOR OF PUBLIC
INFORMATION AND DEPUTY DIRECTOR OF PUBLIC INFORMATION, shall  be  filled
by  the  commissioners  or,  in  the case of a vacancy on the board, the
commissioner of the same major political party as the vacating incumbent
for the remaining period of the term of such vacating incumbent, FOR THE
REMAINING PERIOD OF THE TERM OF SUCH VACATING INCUMBENT.
  S 22. Subdivision 3, paragraph (c) of subdivision 9-A and  subdivision
17  of  section  3-102  of  the  election  law, subdivisions 3 and 17 as
amended by chapter 9 of the laws of 1978, paragraph (c)  of  subdivision
9-A  as  added  by chapter 430 of the laws of 1997 and subdivision 17 as
renumbered by chapter 23 of the laws of 2005, are  amended  to  read  as
follows:

S. 3584--B                         22

  3.  conduct any investigation necessary to carry out the provisions of
this chapter, PROVIDED, HOWEVER,  THAT  THE  STATE  BOARD  OF  ELECTIONS
ENFORCEMENT COUNSEL, ESTABLISHED PURSUANT TO SECTION 3-104 OF THIS ARTI-
CLE, SHALL CONDUCT ANY INVESTIGATION NECESSARY TO ENFORCE THE PROVISIONS
OF ARTICLE FOURTEEN OF THIS CHAPTER ON BEHALF OF THE BOARD OF ELECTIONS;
  (c) establish [a] AN EDUCATIONAL AND training program on ALL REPORTING
REQUIREMENTS INCLUDING BUT NOT LIMITED TO the electronic reporting proc-
ess  and  make  it EASILY AND READILY available to any such candidate or
committee AND NOTIFY ANY SUCH CANDIDATE OR COMMITTEE OF THE AVAILABILITY
OF THE MOST RECENT CAMPAIGN FINANCE HANDBOOK;
  17.   HEAR AND CONSIDER THE RECOMMENDATIONS  OF  THE  STATE  BOARD  OF
ELECTIONS ENFORCEMENT COUNSEL REGARDING THE ENFORCEMENT OF VIOLATIONS OF
ARTICLE FOURTEEN OF THIS CHAPTER;
  18.  perform  such  other  acts  as  may be necessary to carry out the
purposes of this chapter.
  S 23. Section 3-104 of the election law, subdivisions 1, 3, 4 and 5 as
redesignated and subdivision 2 as amended by chapter 9 of  the  laws  of
1978, is amended to read as follows:
  S  3-104.  State  board  of elections AND THE STATE BOARD OF ELECTIONS
ENFORCEMENT COUNSEL; enforcement powers.  1. (A) THERE SHALL BE  A  UNIT
KNOWN AS THE STATE BOARD OF ELECTIONS ENFORCEMENT UNIT ESTABLISHED WITH-
IN  THE  STATE  BOARD  OF  ELECTIONS. THE HEAD OF SUCH UNIT SHALL BE THE
ENFORCEMENT COUNSEL.
  (B) The state board of elections shall have jurisdiction  of,  and  be
responsible  for,  the  execution  and  enforcement of the provisions of
[article  fourteen  of  this  chapter  and  other]  statutes   governing
campaigns,  elections  and related procedures; PROVIDED HOWEVER THAT THE
ENFORCEMENT COUNSEL SHALL HAVE SOLE AUTHORITY WITHIN THE STATE BOARD  OF
ELECTIONS TO INVESTIGATE ON HIS OR HER OWN INITIATIVE OR UPON COMPLAINT,
ALLEGED   VIOLATIONS  OF  ARTICLE  FOURTEEN  OF  THIS  CHAPTER  AND  ALL
COMPLAINTS ALLEGING ARTICLE FOURTEEN VIOLATIONS SHALL  BE  FORWARDED  TO
THE  ENFORCEMENT  UNIT.  NOTHING  IN  THIS SECTION SHALL BE CONSTRUED TO
DIMINISH OR ALTER THE STATE BOARD OF ELECTIONS' JURISDICTION PURSUANT TO
THIS CHAPTER.
  2. Whenever [the state board of elections or other] A LOCAL  board  of
elections  shall  determine, on its own initiative or upon complaint, or
otherwise, that there is substantial reason to believe  a  violation  of
this  chapter  or  any  code  or  regulation  promulgated thereunder has
[occurred] BEEN COMMITTED BY A CANDIDATE  OR  POLITICAL  COMMITTEE  THAT
FILES STATEMENTS OR IS REQUIRED TO DO SO PURSUANT TO ARTICLE FOURTEEN OF
THIS  CHAPTER  SOLELY WITH SUCH LOCAL BOARD, it shall expeditiously make
an investigation which shall also include investigation of  reports  and
statements  made  or  failed to be made by the complainant and any poli-
tical committee supporting his candidacy if the complainant is a  candi-
date  or,  if  the complaint was made by an officer or member of a poli-
tical committee, of reports and statements made or failed to be made  by
such  political committee and any candidates supported by it. [The state
board of elections, in lieu of making such an investigation, may  direct
the  appropriate board of elections to make an investigation.] The state
board of elections may request, and shall receive, the assistance of the
state police in any investigation it shall conduct.
  3. [If, after an investigation, the state or other board of  elections
finds  reasonable  cause to believe that a violation warranting criminal
prosecution has taken place, it shall forthwith refer the matter to  the
district  attorney of the appropriate county and shall make available to

S. 3584--B                         23

such district attorney all relevant  papers,  documents,  testimony  and
findings relevant to its investigation.
  4.  The  state  or  other  board  of elections may, where appropriate,
commence a judicial proceeding with respect to the filing or failure  to
file  any  statement  of receipts, expenditures, or contributions, under
the provisions of this chapter, and the state  board  of  elections  may
direct  the  appropriate  other  board  of  elections  to  commence such
proceeding.
  5.]  IF THE ENFORCEMENT COUNSEL DETERMINES THAT A VIOLATION OF  SUBDI-
VISION  ONE  OF  SECTION 14-126 OF THIS CHAPTER HAS OCCURRED WHICH COULD
WARRANT A CIVIL PENALTY, THE ENFORCEMENT COUNSEL SHALL, UPON HIS OR  HER
DISCRETION,  SEEK  TO  RESOLVE THE MATTER EXTRA-JUDICIALLY OR COMMENCE A
SPECIAL PROCEEDING IN THE SUPREME COURT PURSUANT TO  SECTION  16-114  OF
THIS CHAPTER.
  4. UPON RECEIPT OF A COMPLAINT AND SUPPORTING INFORMATION OR AN INTER-
NAL  REFERRAL  FROM THE ENFORCEMENT UNIT ALLEGING ANY OTHER VIOLATION OF
ARTICLE FOURTEEN OF THIS CHAPTER, THE ENFORCEMENT COUNSEL SHALL  ANALYZE
THE  FACTS  AND THE LAW RELEVANT TO SUCH COMPLAINT OR REFERRAL TO DETER-
MINE IF AN INVESTIGATION SHOULD BE UNDERTAKEN. THE  ENFORCEMENT  COUNSEL
SHALL, IF NECESSARY, REQUEST ADDITIONAL INFORMATION FROM THE COMPLAINANT
TO ASSIST SUCH COUNSEL IN MAKING THIS DETERMINATION. SUCH ANALYSIS SHALL
INCLUDE  THE  FOLLOWING:  FIRST, WHETHER THE ALLEGATIONS, IF TRUE, WOULD
CONSTITUTE A VIOLATION OF ARTICLE FOURTEEN OF THIS CHAPTER AND,  SECOND,
WHETHER THE ALLEGATIONS ARE SUPPORTED BY CREDIBLE EVIDENCE.
  5.   IF  THE  ENFORCEMENT  COUNSEL  DETERMINES  THAT  THE  ALLEGATIONS
CONTAINED IN A COMPLAINT, IF TRUE, WOULD NOT CONSTITUTE A  VIOLATION  OF
ARTICLE  FOURTEEN  OF  THIS  CHAPTER  OR  THAT  THE  ALLEGATIONS ARE NOT
SUPPORTED BY CREDIBLE EVIDENCE, HE OR SHE SHALL: (A) NOTIFY  THE  DEPUTY
ENFORCEMENT  COUNSEL  OF  SUCH DETERMINATION AND (B) PUBLICLY NOTIFY THE
STATE BOARD OF ELECTIONS OF SUCH DETERMINATION. IF THE  STATE  BOARD  OF
ELECTIONS PUBLICLY DETERMINES, AS PROVIDED IN THIS TITLE, THAT THE ALLE-
GATIONS,  IF  TRUE,  WOULD CONSTITUTE A VIOLATION OF ARTICLE FOURTEEN OF
THIS CHAPTER AND THAT THE ALLEGATIONS APPEAR TO BE SUPPORTED BY CREDIBLE
EVIDENCE, IT SHALL DIRECT THAT THE ENFORCEMENT COUNSEL CONDUCT AN INVES-
TIGATION. LACKING SUCH A DETERMINATION, THE  ENFORCEMENT  COUNSEL  SHALL
ISSUE A LETTER TO THE COMPLAINANT DISMISSING THE COMPLAINT.
  6.  IF  THE  ENFORCEMENT  COUNSEL  DETERMINES THAT THE ALLEGATIONS, IF
TRUE, WOULD CONSTITUTE A VIOLATION OF ARTICLE FOURTEEN OF  THIS  CHAPTER
AND THAT THE ALLEGATIONS APPEAR TO BE SUPPORTED BY CREDIBLE EVIDENCE, HE
OR  SHE  SHALL:  (A) NOTIFY THE DEPUTY ENFORCEMENT COUNSEL OF (I) HIS OR
HER INTENT TO RESOLVE THE MATTER EXTRA-JUDICIALLY DUE TO THE DE  MINIMUS
NATURE OF THE VIOLATION; OR (II) HIS OR HER INTENT TO COMMENCE AN INVES-
TIGATION,  AND  (B) PUBLICLY NOTIFY THE STATE BOARD OF ELECTIONS OF SUCH
INTENT NO LATER THAN  THE  BOARD'S  NEXT  REGULARLY  SCHEDULED  MEETING.
NOTIFICATION  SHALL  SUMMARIZE THE RELEVANT FACTS AND THE APPLICABLE LAW
AND SHALL, TO THE EXTENT POSSIBLE, PROTECT FROM  PUBLIC  DISCLOSURE  THE
IDENTITY OF THE COMPLAINANT AND THE INDIVIDUAL SUBJECT TO THE COMPLAINT.
THE  DEPUTY ENFORCEMENT COUNSEL SHALL HAVE THE OPPORTUNITY TO REVIEW THE
ENTIRE FILE OF ANY PRELIMINARY INVESTIGATION CONDUCTED BY  THE  ENFORCE-
MENT  COUNSEL  A  MINIMUM  OF TEN DAYS PRIOR TO SAID REGULARLY SCHEDULED
MEETING OF THE BOARD AND TO SUBMIT A PUBLIC, WRITTEN CONCURRENCE WITH OR
DISSENT FROM THE ENFORCEMENT COUNSEL'S PROPOSAL.
  7. IF, UPON CONSIDERING THE ENFORCEMENT COUNSEL'S NOTICE OF INTENT  TO
COMMENCE AN INVESTIGATION AND THE DEPUTY ENFORCEMENT COUNSEL'S RECOMMEN-
DATION,  THE  STATE BOARD OF ELECTIONS BELIEVES THAT THE ALLEGATIONS, IF
TRUE, WOULD NOT CONSTITUTE A VIOLATION OF ARTICLE FOURTEEN OF THIS CHAP-

S. 3584--B                         24

TER, OR THE ALLEGATIONS ARE NOT SUPPORTED BY CREDIBLE EVIDENCE OR,  THAT
ON  BALANCE,  THE EQUITIES FAVOR A DISMISSAL OF THE COMPLAINT, THE BOARD
SHALL PUBLICLY DIRECT THAT AN INVESTIGATION NOT BE UNDERTAKEN  NO  LATER
THAN  SIXTY  DAYS AFTER THE RECEIPT OF NOTIFICATION FROM THE ENFORCEMENT
COUNSEL OF HIS OR HER INTENT TO COMMENCE AN INVESTIGATION. IN  DETERMIN-
ING  WHETHER  THE EQUITIES FAVOR A DISMISSAL OF THE COMPLAINT, THE STATE
BOARD OF ELECTIONS SHALL CONSIDER THE FOLLOWING FACTORS: (A) WHETHER THE
COMPLAINT ALLEGES A DE MINIMUS VIOLATION OF  ARTICLE  FOURTEEN  OF  THIS
CHAPTER;  (B) WHETHER THE SUBJECT OF THE COMPLAINT HAS MADE A GOOD FAITH
EFFORT TO CORRECT THE VIOLATION; AND (C)  WHETHER  THE  SUBJECT  OF  THE
COMPLAINT  HAS  A  HISTORY OF SIMILAR VIOLATIONS.  DETERMINATIONS OF THE
STATE BOARD OF ELECTIONS TO DISMISS A COMPLAINT AND NOT PROCEED  WITH  A
FORMAL INVESTIGATION SHALL BE VOTED UPON AS PROVIDED IN SUBDIVISION FOUR
OF  SECTION  3-100  OF THIS TITLE AT AN OPEN MEETING PURSUANT TO ARTICLE
SEVEN OF THE PUBLIC OFFICERS LAW, AND SHALL BE MADE ON A FAIR AND  EQUI-
TABLE  BASIS  AND  WITHOUT  REGARD  TO  THE STATUS OF THE SUBJECT OF THE
COMPLAINT.
  8. ABSENT A TIMELY DETERMINATION BY THE STATE BOARD OF ELECTIONS  THAT
AN  INVESTIGATION SHALL NOT BE UNDERTAKEN, THE ENFORCEMENT COUNSEL SHALL
COMMENCE AN INVESTIGATION ON A TIMELY BASIS. IF THE ENFORCEMENT  COUNSEL
DETERMINES  THAT  ADDITIONAL  INVESTIGATIVE  POWERS,  AS PROVIDED FOR IN
SUBDIVISIONS FOUR, FIVE AND SIX OF SECTION  3-102  OF  THIS  TITLE,  ARE
NEEDED  TO COMPLETE THE COUNSEL'S INVESTIGATION, HE OR SHE SHALL REQUEST
SUCH ADDITIONAL POWERS FROM THE STATE BOARD OF  ELECTIONS.  SUCH  POWERS
SHALL  BE  GRANTED BY THE BOARD IN PUBLIC ONLY WHEN THE BOARD FINDS THAT
FURTHER INVESTIGATION IS WARRANTED AND JUSTIFIED.
  9. AT THE CONCLUSION OF ITS  INVESTIGATION,  THE  ENFORCEMENT  COUNSEL
SHALL  PROVIDE  THE  DEPUTY  ENFORCEMENT  COUNSEL AND THE STATE BOARD OF
ELECTIONS WITH A WRITTEN RECOMMENDATION AS TO: (A)  WHETHER  SUBSTANTIAL
REASON EXISTS TO BELIEVE A VIOLATION OF ARTICLE FOURTEEN OF THIS CHAPTER
HAS  OCCURRED AND, IF SO, THE NATURE OF THE VIOLATION AND ANY APPLICABLE
PENALTY, AS DEFINED IN SECTION 14-126 OF  THIS  CHAPTER,  BASED  ON  THE
NATURE  OF  THE  VIOLATION;  (B)  WHETHER  THE MATTER SHOULD BE RESOLVED
EXTRA-JUDICIALLY; (C) WHETHER A SPECIAL PROCEEDING SHOULD  BE  COMMENCED
IN  THE  SUPREME  COURT  TO  RECOVER  A CIVIL PENALTY; AND (D) WHETHER A
REFERRAL SHOULD BE MADE TO A DISTRICT ATTORNEY PURSUANT  TO  SUBDIVISION
ELEVEN  OF  THIS  SECTION  BECAUSE  REASONABLE CAUSE EXISTS TO BELIEVE A
VIOLATION WARRANTING CRIMINAL PROSECUTION HAS TAKEN  PLACE.  THE  DEPUTY
ENFORCEMENT COUNSEL SHALL HAVE THE OPPORTUNITY TO REVIEW THE ENTIRE FILE
OF  ANY  INVESTIGATION CONDUCTED BY THE ENFORCEMENT COUNSEL A MINIMUM OF
TEN DAYS PRIOR TO SAID REGULARLY SCHEDULED MEETING OF THE BOARD  AND  TO
SUBMIT  A  PUBLIC, WRITTEN CONCURRENCE WITH OR DISSENT FROM THE ENFORCE-
MENT COUNSEL'S RECOMMENDATION.
  10. THE STATE BOARD OF ELECTIONS SHALL ACCEPT, MODIFY  OR  REJECT  THE
ENFORCEMENT  COUNSEL'S  RECOMMENDATION  NO  LATER  THAN SIXTY DAYS AFTER
RECEIPT OF SUCH RECOMMENDATION. IN MAKING ITS DETERMINATION,  THE  BOARD
SHALL  AGAIN  CONSIDER:  (A)  WHETHER THE COMPLAINT ALLEGES A DE MINIMUS
VIOLATION OF ARTICLE FOURTEEN OF THIS CHAPTER; (B) WHETHER  THE  SUBJECT
OF  THE COMPLAINT HAS MADE A GOOD FAITH EFFORT TO CORRECT THE VIOLATION;
AND (C) WHETHER THE SUBJECT OF THE COMPLAINT HAS A  HISTORY  OF  SIMILAR
VIOLATIONS.  ALL  SUCH DETERMINATIONS SHALL BE VOTED UPON AS PROVIDED IN
SUBDIVISION FOUR OF SECTION 3-100 OF  THIS  TITLE  AT  AN  OPEN  MEETING
PURSUANT  TO ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW, AND SHALL BE MADE
ON A FAIR AND EQUITABLE BASIS, WITHOUT  REGARD  TO  THE  STATUS  OF  THE
SUBJECT OF THE COMPLAINT.

S. 3584--B                         25

  11.  (A)  IF  THE  STATE BOARD OF ELECTIONS DETERMINES, AS PROVIDED IN
SUBDIVISION TEN OF THIS  SECTION,  THAT  SUBSTANTIAL  REASON  EXISTS  TO
BELIEVE  THAT  A  PERSON, ACTING AS OR ON BEHALF OF A CANDIDATE OR POLI-
TICAL COMMITTEE UNDER CIRCUMSTANCES EVINCING AN INTENT TO  VIOLATE  SUCH
LAW,  HAS UNLAWFULLY ACCEPTED A CONTRIBUTION IN EXCESS OF A CONTRIBUTION
LIMITATION ESTABLISHED IN ARTICLE FOURTEEN OF THIS CHAPTER, WHICH  COULD
WARRANT  A CIVIL PENALTY AS PROVIDED FOR IN SUBDIVISION THREE OF SECTION
14-126 OF THIS CHAPTER, THE BOARD SHALL DIRECT  THE  COMMENCEMENT  OF  A
SPECIAL PROCEEDING IN THE SUPREME COURT.
  (B)  IF THE STATE BOARD OF ELECTIONS DETERMINES, AS PROVIDED IN SUBDI-
VISION TEN OF THIS SECTION THAT REASONABLE CAUSE  EXISTS  TO  BELIEVE  A
VIOLATION  WARRANTING  CRIMINAL  PROSECUTION  HAS TAKEN PLACE, THE BOARD
SHALL REFER THE MATTER TO A DISTRICT ATTORNEY AND SHALL  MAKE  AVAILABLE
TO  SUCH DISTRICT ATTORNEY ALL PAPERS, DOCUMENTS, TESTIMONY AND FINDINGS
RELEVANT TO ITS INVESTIGATION.
  12. UPON NOTIFICATION THAT A SPECIAL PROCEEDING HAS BEEN COMMENCED  BY
A  PARTY  OTHER  THAN  THE STATE BOARD OF ELECTIONS, PURSUANT TO SECTION
16-114 OF THIS CHAPTER, THE STATE BOARD OF ELECTIONS  SHALL  DIRECT  THE
ENFORCEMENT  COUNSEL TO INVESTIGATE THE ALLEGED VIOLATIONS UNLESS OTHER-
WISE DIRECTED BY THE COURT.
  13. THE ENFORCEMENT COUNSEL SHALL PREPARE A REPORT, TO BE INCLUDED  IN
THE  ANNUAL  REPORT  TO  THE  GOVERNOR  AND LEGISLATURE, SUMMARIZING THE
ACTIVITIES OF THE UNIT DURING  THE  PREVIOUS  YEAR.  SUCH  REPORT  SHALL
INCLUDE:  (A)  THE  NUMBER  OF  COMPLAINTS  RECEIVED;  (B) THE NUMBER OF
COMPLAINTS THAT WERE FOUND TO NEED INVESTIGATION AND THE NATURE OF  EACH
COMPLAINT;  AND  (C) THE NUMBER OF MATTERS THAT HAVE BEEN RESOLVED.  THE
REPORT SHALL NOT CONTAIN ANY INFORMATION FOR  WHICH  DISCLOSURE  IS  NOT
PERMITTED.
  14.  The state board of elections may promulgate rules and regulations
consistent with law to effectuate the provisions of this section.
  S 24. The state of New York shall appropriate during each fiscal  year
to the New York state board of elections enforcement unit, not less than
thirty-five percent of the appropriation available from the general fund
for  the  state  board  of  elections  to  pay  for the expenses of such
enforcement unit. The enforcement counsel shall have independent author-
ity over said appropriation including the power to hire necessary staff.
  S 25. Severability. If any clause, sentence,  subdivision,  paragraph,
section  or part of title II of article 14 of the election law, as added
by section ten of this act be adjudged by any court of competent  juris-
diction to be invalid, such judgment shall not affect, impair or invali-
date  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 26. This act shall take effect immediately; provided,  however,  all
state  candidates and constitutional convention delegates will be eligi-
ble to participate in the public financing  system  beginning  with  the
2016  election  and  state  legislature  candidates  will be eligible to
participate in the public  financing  system  beginning  with  the  2018
election.

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