S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4172
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 31, 2025
                                ___________
 
 Introduced  by  M.  of  A. SIMON, SEAWRIGHT, CLARK, MORINELLO, LUNSFORD,
   McDONOUGH, WILLIAMS, STIRPE, GALLAHAN, TAPIA, STECK -- Multi-Sponsored
   by -- M. of A. WOERNER -- read once and referred to the  Committee  on
   Election Law
 
 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 amended by section 9
 of part CC of chapter 56 of the laws of 2015, paragraphs (ix) and (x) of
 subdivision 3 as amended and paragraph (xi) of subdivision 3 as added by
 chapter 136 of the laws of 2019, is amended to read as follows:
   §  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:
   [2. No contribution shall be used to pay interest or any other finance
 charges upon monies loaned to the campaign  by  such  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 a political campaign 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:
   (i)  any  residential  or  household  items, supplies or expenditures,
 including mortgage, rent  or  utility  payments  for  any  part  of  any
 personal  residence  of  a  candidate or officeholder or a member of the

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02517-01-5
              

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 candidate's or officeholder's family that are not incurred as  a  result
 of, or to facilitate, the individual's campaign, 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 campaign use 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.
   (ii) mortgage, rent, or utility payments to a candidate or officehold-
 er for any part of any non-residential  property  that  is  owned  by  a
 candidate or officeholder or a member of a candidate's or officeholder's
 family and used for campaign purposes, to the extent the payments exceed
 the fair market value of the property's usage for campaign activities;
   (iii)  clothing,  other than items that are used in the campaign or in
 the execution of the duties of public office or party position;
   (iv) tuition payments unrelated to a political campaign or the holding
 of a public office or party position;
   (v) salary payments or other compensation provided to any  person  for
 services  where  such  services  are not solely for campaign purposes or
 provided in connection with the execution of the duties of public office
 or party position;
   (vi) 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 campaign. If a family member provides bona fide services
 to a campaign, any salary payments or other compensation  in  excess  of
 the  fair  market  value  of  the  services provided shall be considered
 payments for personal use;
   (vii) admission to a sporting event, concert, theater, or  other  form
 of entertainment, unless such event is part of, or in connection with, a
 campaign  or  is  related to the holding of public office or party posi-
 tion;
   (viii) payment of any fines or penalties assessed against  the  candi-
 date  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;
   (ix)  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 a political campaign or the holding of public office  or
 party position that takes place on the organization's premises;
   (x)  travel  expenses including automobile purchases or leases, unless
 used for campaign 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;
 and
   (xi)  childcare expenses, other than expenses incurred in the campaign
 or in the execution of the duties of public office or party position.
   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  to aid or participate in his or her nomination or
 election, including an exploratory committee, provided that  the  candi-
 date  and  his  or her campaign treasurer sign a written lease or rental
 agreement. Such agreement shall include the lease or rental price, which
 shall not exceed the fair lease or rental value of  the  equipment.  The
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 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 campaign  contributions  to  facilitate,  support,  or
 otherwise assist in the execution or performance of the duties of his or
 her public office.
   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.]
   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
   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, THE CANDIDATE'S OR OFFICEHOLDER'S 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;
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   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.
   § 2. Section 14-132 of the election law, as added by section 2 of part
 C of chapter 286 of the laws of 2016, is amended to read as follows:
   §  14-132.  Disposition  of  campaign  funds. [1.] Upon the death of a
 candidate, former candidate or holder of elective  office,  [where  such
 candidate  or  candidate's  authorized  committee] WHO received campaign
 contributions, all [such funds] CONTRIBUTIONS shall be disposed  of  [by
 any of the following means, or any combination thereof, within two years
 of the death of such person:
   (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 of New York or the city
 university of New York;
   (d) donating the funds to the state's general fund; or
   (e)  contributing  or  transferring  the  funds to a candidate, party,
 constituted or political committee in  accordance  with  the  applicable
 limits, if any, set forth in this article.
   2. No such candidate's authorized political committee shall dispose of
 campaign  funds  by  making  expenditures for personal use as defined in
 section 14-130 of this article.
   3. If funds are not disposed of  within  the  time  required  by  this
 section,  such funds shall be recoverable by the chief enforcement coun-
 sel of the state board of elections in a  special  proceeding  in  state
 supreme court in the manner prescribed by section 16-116 of this chapter
 and deposited into the state's general fund] 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;
   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
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   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.
   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 TITLE.
   § 3. This act shall take effect on the sixtieth  day  after  it  shall
 have  become  a  law;  provided, 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.