S T A T E O F N E W Y O R K
________________________________________________________________________
5127
2013-2014 Regular Sessions
I N S E N A T E
May 10, 2013
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Introduced by Sens. GIPSON, ADDABBO, AVELLA, BRESLIN, GIANARIS, HOYLMAN,
KRUEGER, O'BRIEN, SERRANO, SQUADRON, STAVISKY, STEWART-COUSINS -- read
twice and ordered printed, and when printed to be committed to the
Committee on Elections
AN ACT to amend the election law, in relation to campaign funds for
personal use
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 14-130 of the election law, as 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 DUTIES OF PUBLIC OFFICE OR PARTY POSITION WHICH ARE NOT
PAID FOR OR ELIGIBLE FOR REIMBURSEMENT BY THE STATE OR ANY POLITICAL
SUBDIVISION OR PRIVATE PARTY, AND ORDINARY AND NECESSARY EXPENSES RELAT-
ING TO THE HOLDING OF PUBLIC OFFICE OR PARTY POSITION.
2. CAMPAIGN FUNDS SHALL NOT BE CONVERTED TO PERSONAL USE, WHICH SHALL
BE DEFINED AS EXPENDITURES THAT:
A. ARE FOR THE PERSONAL BENEFIT OF OR TO DEFRAY NORMAL LIVING EXPENSES
OF THE CANDIDATE, OFFICEHOLDER, IMMEDIATE FAMILY OR DOMESTIC PARTNER OF
EITHER OR ANY OTHER PERSON;
B. ARE USED TO FULFILL ANY COMMITMENT, OBLIGATION, OR EXPENSE THAT
WOULD EXIST IRRESPECTIVE OF THE CANDIDATE'S CAMPAIGN OR DUTIES AS AN
OFFICEHOLDER; OR
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10314-04-3
S. 5127 2
C. ARE PUT TO ANY USE FOR WHICH THE CANDIDATE OR OFFICEHOLDER WOULD BE
REQUIRED TO TREAT THE AMOUNT OF THE EXPENDITURE AS GROSS INCOME UNDER
SECTION 61 OF THE INTERNAL REVENUE CODE.
3. EXPENDITURES FOR PERSONAL USE SHALL ALSO INCLUDE, BUT ARE NOT
LIMITED TO, EXPENDITURES FOR:
A. RESIDENTIAL OR HOUSEHOLD ITEMS, SUPPLIES, MAINTENANCE OR OTHER
EXPENDITURES, INCLUDING MORTGAGE, RENT, UTILITIES, REPAIRS, OR IMPROVE-
MENTS FOR ANY PART OF ANY PERSONAL RESIDENCE OF A CANDIDATE OR OFFICE-
HOLDER, HIS OR HER IMMEDIATE FAMILY OR DOMESTIC PARTNER;
B. RENT OR UTILITY PAYMENTS THAT EXCEED FAIR MARKET VALUE FOR USE OF
ANY PART OF ANY NON-RESIDENTIAL PROPERTY OWNED BY A CANDIDATE, OR A
MEMBER OF A CANDIDATE'S FAMILY OR DOMESTIC PARTNER USED FOR CAMPAIGN
PURPOSES;
C. SALARY AND OTHER FEES FOR BONA FIDE SERVICES TO A CAMPAIGN OR
LEGISLATIVE OFFICE THAT EXCEED FAIR AND REASONABLE MARKET VALUE OF SUCH
SERVICES;
D. INTEREST OR ANY OTHER FINANCE CHARGES FOR MONIES LOANED TO THE
CAMPAIGN BY THE CANDIDATE OR THE SPOUSE OR DOMESTIC PARTNER OF SUCH
CANDIDATE;
E. TUITION PAYMENTS;
F. DUES, FEES, OR GRATUITIES AT PRIVATE CLUBS, RECREATIONAL FACILITIES
OR OTHER NONPOLITICAL ORGANIZATIONS, UNLESS CONNECTED TO A SPECIFIC
WIDELY ATTENDED FUNDRAISING EVENT THAT TAKES PLACE ON THE ORGANIZATION'S
PREMISES;
G. AUTOMOBILE PURCHASES OR LONG TERM LEASES; SHORT TERM CAR RENTALS
AND CELLULAR EQUIPMENT AND SERVICES NOT USED EXCLUSIVELY FOR CAMPAIGN
PURPOSES OR DUTIES AS AN OFFICEHOLDER;
H. ADMISSION TO SPORTING EVENTS, CONCERTS, THEATERS, OR OTHER FORMS OF
ENTERTAINMENT, UNLESS PART OF A SPECIFIC CAMPAIGN OR OFFICEHOLDER
RELATED ACTIVITY; AND
I. PAYMENT OF ANY FINES, FEES, OR PENALTIES ASSESSED PURSUANT TO THIS
CHAPTER.
NOTHING IN THIS SECTION SHALL PROHIBIT A CANDIDATE FROM PURCHASING
OFFICE EQUIPMENT WITH PERSONAL FUNDS AND LEASING OR RENTING SUCH EQUIP-
MENT OR PROPERTY TO A COMMITTEE WORKING WITH OR FOR THE CANDIDATE,
PROVIDED THE CANDIDATE OR THE CAMPAIGN TREASURER SIGNS A WRITTEN LEASE
OR RENTAL AGREEMENT AND FILES IT WITH THE APPROPRIATE REQUIRED CAMPAIGN
FINANCIAL FILING WHICH SHALL INCLUDE THE LEASE OR RENTAL PRICE WHICH
SHALL NOT EXCEED THE FAIR LEASE OR RENTAL VALUE OF THE EQUIPMENT OR IN
THE AGGREGATE EXCEED THE COST OF ITS PURCHASE.
S 2. The election law is amended by adding a new section 14-132 to
read as follows:
S 14-132. DISPOSITION OF CAMPAIGN FUNDS. UPON THE DEATH OF A CANDI-
DATE, FORMER CANDIDATE OR HOLDER OF ELECTIVE OFFICE, WHO RECEIVED
CAMPAIGN CONTRIBUTIONS, ALL CONTRIBUTIONS SHALL BE DISPOSED OF WITHIN
TWELVE MONTHS OF THE DEATH OF THE CANDIDATE PURSUANT TO SUBDIVISION ONE
OF THIS SECTION.
1. ANY POLITICAL COMMITTEE REQUIRED TO DISPOSE OF FUNDS PURSUANT TO
THIS SECTION SHALL, AT THE OPTION OF THE REPRESENTATIVE OF THE ESTATE OF
THE CANDIDATE, OR THE TREASURER OF A POLITICAL COMMITTEE FORMED SOLELY
TO PROMOTE THE PASSAGE OR DEFEAT OF A BALLOT PROPOSAL, DISPOSE OF SUCH
FUNDS BY ANY OF THE FOLLOWING MEANS, OR ANY COMBINATION THEREOF:
A. RETURNING, PRO RATA, TO EACH CONTRIBUTOR THE FUNDS THAT HAVE NOT
BEEN SPENT OR OBLIGATED;
S. 5127 3
B. DONATING THE FUNDS TO A CHARITABLE ORGANIZATION OR ORGANIZATIONS
THAT MEET THE QUALIFICATIONS OF SECTION 501(C) (3) OF THE INTERNAL
REVENUE CODE;
C. DONATING THE FUNDS TO THE STATE UNIVERSITY;
D. DONATING THE FUNDS TO THE STATE'S GENERAL FUND;
E. TRANSFERRING THE FUNDS TO A POLITICAL PARTY COMMITTEE REGISTERED
WITH THE STATE BOARD OF ELECTIONS; OR
F. CONTRIBUTING THE FUNDS TO A CANDIDATE OR POLITICAL COMMITTEE SUCH
THAT THIS DOES NOT EXCEED THE LIMITS SET FORTH IN SECTION 14-114 OF THIS
ARTICLE.
2. NO REPRESENTATIVE OF THE ESTATE OF A CANDIDATE OR POLITICAL COMMIT-
TEE SHALL DISPOSE OF CAMPAIGN FUNDS BY MAKING EXPENDITURES FOR PERSONAL
USE AS DEFINED IN SECTION 14-130 OF THIS ARTICLE.
S 3. This act shall take effect on the sixtieth day after it shall
have become a law; provided, however, that the state board of elections
shall notify all registered campaign committees of the applicable
provisions of this act within thirty days after this act shall have
become a law.