S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5147
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 11, 2019
                                ___________
 
 Introduced  by  Sen.  BIAGGI -- 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 transition and  inaugu-
   ration donations and expenses and funds for personal use
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The election law is amended by adding a new article  18  to
 read as follows:
                                 ARTICLE 18
                   TRANSITION AND INAUGURATION ENTITIES
 SECTION 18-100. DEFINITIONS.
         18-101. TRANSITION AND INAUGURATION DONATIONS AND EXPENSES.
         18-102. TRANSITION AND INAUGURATION FUNDS FOR PERSONAL USE.
   §  18-100.  DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE TERM "POLI-
 TICAL COMMITTEE" SHALL HAVE THE SAME MEANING AS  SET  FORTH  IN  SECTION
 14-100 OF THIS CHAPTER.
   §  18-101.  TRANSITION  AND  INAUGURATION  DONATIONS  AND EXPENSES. 1.
 CANDIDATES ELECTED TO OFFICE MAY AUTHORIZE ONE OR MORE  ENTITIES,  OTHER
 THAN  A  POLITICAL COMMITTEE, FOR THE PURPOSE OF ACCEPTING DONATIONS AND
 LOANS, AND FOR MAKING EXPENDITURES, FOR TRANSITION OR INAUGURATION  INTO
 OFFICE.  SUCH  DONATIONS AND LOANS MAY NOT BE ACCEPTED AND SUCH EXPENDI-
 TURES MAY NOT BE MADE ON BEHALF OF SUCH CANDIDATE PRIOR TO THE REGISTRA-
 TION WITH THE BOARD OF ELECTIONS OF  EACH  SUCH  ENTITY.  THE  BOARD  OF
 ELECTIONS  SHALL  PROMULGATE  RULES TO ESTABLISH THE TIME AND MANNER FOR
 SUCH REGISTRATION.
   2. CANDIDATES ELECTED TO OFFICE,  AND  THE  ENTITIES  SUCH  CANDIDATES
 AUTHORIZED PURSUANT TO SUBDIVISION ONE OF THIS SECTION, SHALL NOT:
   (A)  USE  FUNDS  ACCEPTED  BY  A POLITICAL COMMITTEE AUTHORIZED BY THE
 CANDIDATE FOR ANY ELECTION TO MAKE EXPENDITURES FOR TRANSITION OR  INAU-
 GURATION  INTO  OFFICE,  AND  SHALL  NOT TRANSFER FUNDS FROM A POLITICAL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01669-01-9
              

 S. 5147                             2
 
 COMMITTEE TO AN ENTITY THE CANDIDATE IS REQUIRED TO REGISTER PURSUANT TO
 SUBDIVISION ONE OF THIS SECTION;
   (B) ACCEPT ANY DONATION OR DONATIONS OF MONEY, GOODS, OR SERVICES FROM
 ANY  INDIVIDUAL  OTHER THAN THE CANDIDATE, POLITICAL COMMITTEE, EMPLOYEE
 ORGANIZATION, OR ENTITY WHICH IN THE AGGREGATE EXCEEDS THE LIMIT FOR THE
 APPLICABLE OFFICE CONTAINED IN SUBDIVISION ONE OF SECTION 14-114 OF THIS
 CHAPTER, AS ADJUSTED PURSUANT TO SUCH SUBDIVISION AS APPLICABLE; AND
   (C) INCUR ANY LIABILITIES  AFTER  JANUARY  THIRTY-FIRST  IN  THE  YEAR
 FOLLOWING  THE  ELECTION, NOR ACCEPT ANY DONATIONS AFTER ALL LIABILITIES
 ARE PAID.
   3. DONATIONS THAT DO NOT EXCEED THE LIMITATIONS SET FORTH IN PARAGRAPH
 (B) OF SUBDIVISION TWO OF THIS SECTION MAY BE ACCEPTED ONLY  FROM  POLI-
 TICAL  COMMITTEES THAT REGISTER WITH THE BOARD OF ELECTIONS, AS SHALL BE
 PROVIDED FOR IN RULES ISSUED BY SUCH BOARD. ANY DONATION ACCEPTED FROM A
 POLITICAL COMMITTEE THAT HAS NOT REGISTERED WITH THE BOARD OF  ELECTIONS
 PRIOR  TO  MAKING THE DONATION MUST BE RETURNED TO THE POLITICAL COMMIT-
 TEE.  HOWEVER, A SUBSEQUENT DONATION MAY BE ACCEPTED IF  SUCH  POLITICAL
 COMMITTEE  REGISTERS  WITH THE BOARD OF ELECTIONS IN ACCORDANCE WITH THE
 RULES ISSUED BY THE BOARD.
   4. TO THE EXTENT NOT REPAID BY THE DATE  OF  THE  CANDIDATE'S  INAUGU-
 RATION  INTO  OFFICE,  A  LOAN RECEIVED BY SUCH ENTITY SHALL BE DEEMED A
 DONATION SUBJECT TO THE LIMITS AND RESTRICTIONS SET FORTH  IN  PARAGRAPH
 (B) OF SUBDIVISION TWO AND SUBDIVISION THREE OF THIS SECTION.
   5.  ENTITIES  REQUIRED TO BE REGISTERED PURSUANT TO SUBDIVISION ONE OF
 THIS SECTION SHALL NOT INCUR LIABILITIES FOR PURPOSES OTHER THAN TRANSI-
 TION OR INAUGURATION INTO OFFICE.
   6. NOTWITHSTANDING ANY RESTRICTION IN THIS SECTION,  A  CANDIDATE  MAY
 SELF-FUND HIS OR HER OWN ENTITY.
   §  18-102.  TRANSITION  AND  INAUGURATION  FUNDS  FOR PERSONAL USE. 1.
 CONTRIBUTIONS RECEIVED BY TRANSITION AND INAUGURATION  ENTITIES  MAY  BE
 EXPENDED  FOR  ANY  LAWFUL PURPOSE. SUCH FUNDS SHALL NOT BE CONVERTED BY
 ANY PERSON TO A PERSONAL USE WHICH IS UNRELATED TO TRANSITION OR INAUGU-
 RATION INTO OFFICE OR THE HOLDING OF A PUBLIC OFFICE OR PARTY POSITION.
   2. NO CONTRIBUTION SHALL BE USED TO PAY INTEREST OR ANY OTHER  FINANCE
 CHARGES  UPON  MONIES LOANED TO THE TRANSITION OR INAUGURATION ENTITY BY
 THE CANDIDATE OR THE SPOUSE OF SUCH CANDIDATE.
   3. FOR THE PURPOSES OF THIS SECTION, CONTRIBUTIONS "CONVERTED  BY  ANY
 PERSON  TO A PERSONAL USE" ARE EXPENDITURES THAT ARE EXCLUSIVELY FOR THE
 PERSONAL BENEFIT OF THE  CANDIDATE  OR  ANY  OTHER  INDIVIDUAL,  NOT  IN
 CONNECTION WITH TRANSITION OR INAUGURATION INTO OFFICE OR THE HOLDING OF
 A  PUBLIC  OFFICE  OR  PARTY  POSITION.  "CONVERTED  BY  ANY PERSON TO A
 PERSONAL USE", WHEN MEETING THE DEFINITION IN  THIS  SUBDIVISION,  SHALL
 INCLUDE, BUT NOT BE LIMITED TO, EXPENSES FOR THE FOLLOWING:
   (A)  ANY  RESIDENTIAL  OR  HOUSEHOLD  ITEMS, SUPPLIES OR EXPENDITURES,
 INCLUDING MORTGAGE, RENT  OR  UTILITY  PAYMENTS  FOR  ANY  PART  OF  ANY
 PERSONAL  RESIDENCE  OF  A  CANDIDATE OR OFFICEHOLDER OR A MEMBER OF THE
 CANDIDATE'S OR OFFICEHOLDER'S FAMILY THAT ARE NOT INCURRED AS  A  RESULT
 OF,  OR TO FACILITATE, THE INDIVIDUAL'S TRANSITION AND INAUGURATION INTO
 OFFICE, OR THE EXECUTION OF HIS OR HER DUTIES OF PUBLIC OFFICE OR  PARTY
 POSITION.  IN  THE  EVENT THAT ANY PROPERTY OR BUILDING IS USED FOR BOTH
 PERSONAL AND THE INDIVIDUAL'S TRANSITION AND INAUGURATION INTO OFFICE OR
 AS PART OF THE EXECUTION OF HIS OR HER DUTIES OF PUBLIC OFFICE OR  PARTY
 POSITION,  PERSONAL  USE  SHALL CONSTITUTE EXPENSES THAT EXCEED THE PRO-
 RATED AMOUNT FOR SUCH EXPENSES BASED ON FAIR-MARKET VALUE;
   (B) MORTGAGE, RENT, OR UTILITY PAYMENTS TO A CANDIDATE OR OFFICEHOLDER
 FOR ANY PART OF ANY NON-RESIDENTIAL PROPERTY THAT IS OWNED BY  A  CANDI-

 S. 5147                             3
 
 DATE  OR  OFFICEHOLDER  OR  A  MEMBER OF A CANDIDATE'S OR OFFICEHOLDER'S
 FAMILY AND USED FOR THE INDIVIDUAL'S TRANSITION  AND  INAUGURATION  INTO
 OFFICE,  TO  THE EXTENT THE PAYMENTS EXCEED THE FAIR MARKET VALUE OF THE
 PROPERTY'S USAGE FOR TRANSITION AND INAUGURATION ACTIVITIES;
   (C)  CLOTHING,  OTHER  THAN  ITEMS THAT ARE USED IN THE TRANSITION AND
 INAUGURATION INTO OFFICE OR IN THE EXECUTION OF  THE  DUTIES  OF  PUBLIC
 OFFICE OR PARTY POSITION;
   (D)  TUITION  PAYMENTS  UNRELATED  TO  THE INDIVIDUAL'S TRANSITION AND
 INAUGURATION INTO OFFICE OR THE HOLDING OF  A  PUBLIC  OFFICE  OR  PARTY
 POSITION;
   (E)  SALARY  PAYMENTS OR OTHER COMPENSATION PROVIDED TO ANY PERSON FOR
 SERVICES WHERE SUCH SERVICES ARE NOT SOLELY FOR THE TRANSITION AND INAU-
 GURATION INTO OFFICE OR PROVIDED IN CONNECTION WITH THE EXECUTION OF THE
 DUTIES OF PUBLIC OFFICE OR PARTY POSITION;
   (F) SALARY PAYMENTS OR OTHER COMPENSATION PROVIDED TO A  MEMBER  OF  A
 CANDIDATE'S  FAMILY,  UNLESS  THE  FAMILY  MEMBER IS PROVIDING BONA FIDE
 SERVICES TO THE TRANSITION AND INAUGURATION. IF A FAMILY MEMBER PROVIDES
 BONA FIDE SERVICES  TO  THE  TRANSITION  AND  INAUGURATION,  ANY  SALARY
 PAYMENTS OR OTHER COMPENSATION IN EXCESS OF THE FAIR MARKET VALUE OF THE
 SERVICES PROVIDED SHALL BE CONSIDERED PAYMENTS FOR PERSONAL USE;
   (G)  ADMISSION TO A SPORTING EVENT, CONCERT, THEATER, OR OTHER FORM OF
 ENTERTAINMENT, UNLESS SUCH EVENT IS PART OF, OR IN CONNECTION WITH,  THE
 INDIVIDUAL'S  TRANSITION  AND  INAUGURATION INTO OFFICE OR IS RELATED TO
 THE HOLDING OF PUBLIC OFFICE OR PARTY POSITION;
   (H) PAYMENT OF ANY FINES OR PENALTIES ASSESSED AGAINST  THE  CANDIDATE
 PURSUANT  TO THIS CHAPTER OR IN CONNECTION WITH A CRIMINAL CONVICTION OR
 BY THE JOINT COMMISSION FOR PUBLIC ETHICS PURSUANT  TO  SECTION  NINETY-
 FOUR  OF  THE EXECUTIVE LAW OR SECTIONS SEVENTY-THREE OR SEVENTY-THREE-A
 OF THE PUBLIC OFFICERS LAW OR THE LEGISLATIVE ETHICS COMMISSION PURSUANT
 TO SECTION EIGHTY OF THE LEGISLATIVE LAW;
   (I) DUES, FEES, OR GRATUITIES AT A COUNTRY CLUB, HEALTH  CLUB,  RECRE-
 ATIONAL  FACILITY  OR OTHER ENTITIES WITH A SIMILAR PURPOSE, UNLESS THEY
 ARE EXPENSES CONNECTED WITH A SPECIFIC  FUNDRAISING  EVENT  OR  ACTIVITY
 ASSOCIATED WITH THE INDIVIDUAL'S TRANSITION AND INAUGURATION INTO OFFICE
 OR  THE  HOLDING  OF PUBLIC OFFICE OR PARTY POSITION THAT TAKES PLACE ON
 THE ORGANIZATION'S PREMISES; AND
   (J) TRAVEL EXPENSES INCLUDING AUTOMOBILE PURCHASES OR  LEASES,  UNLESS
 USED  FOR TRANSITION AND INAUGURATION PURPOSES OR IN CONNECTION WITH THE
 EXECUTION OF THE DUTIES OF PUBLIC OFFICE OR PARTY POSITION AND USAGE  OF
 SUCH  VEHICLE  WHICH  IS INCIDENTAL TO SUCH PURPOSES OR THE EXECUTION OF
 SUCH DUTIES.
   4. NOTHING IN THIS SECTION SHALL PROHIBIT A CANDIDATE FROM  PURCHASING
 EQUIPMENT  OR  PROPERTY  FROM  HIS  OR HER PERSONAL FUNDS AND LEASING OR
 RENTING SUCH EQUIPMENT OR PROPERTY TO A COMMITTEE  WORKING  DIRECTLY  OR
 INDIRECTLY  WITH  HIM OR HER TO AID OR PARTICIPATE IN HIS OR HER TRANSI-
 TION AND INAUGURATION INTO OFFICE, PROVIDED THAT THE CANDIDATE  AND  THE
 TREASURER OF THE TRANSITION AND INAUGURATION ENTITY SIGN A WRITTEN LEASE
 OR  RENTAL  AGREEMENT.  SUCH AGREEMENT SHALL INCLUDE THE LEASE OR RENTAL
 PRICE, WHICH SHALL NOT EXCEED THE FAIR LEASE  OR  RENTAL  VALUE  OF  THE
 EQUIPMENT.  THE  CANDIDATE  SHALL  NOT  RECEIVE LEASE OR RENTAL PAYMENTS
 WHICH, IN THE AGGREGATE, EXCEED THE COST OF PURCHASING THE EQUIPMENT  OR
 PROPERTY.
   5.  NOTHING  IN  THIS SECTION SHALL PROHIBIT AN ELECTED PUBLIC OFFICE-
 HOLDER FROM USING TRANSITION AND INAUGURATION CONTRIBUTIONS  TO  FACILI-
 TATE,  SUPPORT,  OR  OTHERWISE ASSIST IN THE EXECUTION OR PERFORMANCE OF
 THE DUTIES OF HIS OR HER PUBLIC OFFICE.

 S. 5147                             4
 
   6. THE STATE BOARD OF ELECTIONS SHALL  ISSUE  ADVISORY  OPINIONS  UPON
 REQUEST  REGARDING  EXPENDITURES  THAT  MAY  OR  MAY  NOT  BE CONSIDERED
 PERSONAL USE OF CONTRIBUTIONS. ANY FORMAL OR INFORMAL ADVISORY  OPINIONS
 ISSUED  BY  A  MAJORITY  VOTE OF THE COMMISSIONERS OF THE STATE BOARD OF
 ELECTIONS  SHALL  BE BINDING ON THE BOARD, THE CHIEF ENFORCEMENT COUNSEL
 ESTABLISHED BY SUBDIVISION THREE-A OF SECTION 3-100 OF THIS CHAPTER, AND
 IN ANY SUBSEQUENT CIVIL OR CRIMINAL ACTION OR PROCEEDING OR  ADMINISTRA-
 TIVE PROCEEDING.
   §  2.  This  act  shall  take effect on the fifteenth of December next
 succeeding the date on which it shall have become a law. Effective imme-
 diately, the addition, amendment and/or repeal of any rule or regulation
 necessary for the implementation of this act on its effective  date  are
 authorized to be made and completed on or before such effective date.