NY State Senate Bill 2013-S7184

Archive: Last Bill Status - In Senate Committee Elections Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 02, 2014	referred to elections

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2013-S7184 (ACTIVE) - Details

Current Committee:: Senate Elections
Law Section:: Election Law
Laws Affected:: Amd §14-130, El L
Versions Introduced in 2015-2016 Legislative Session:: S44

2013-S7184 (ACTIVE) - Summary

Relates to the personal use of campaign funds.

2013-S7184 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7184

TITLE OF BILL:  An act to amend the election law, in relation to the
personal use of campaign funds

PURPOSE:

This bill amends section 14-130 of the Election Law to delineate how
campaign funds may be expended. Under current law, said funds can be
expended for "any lawful purpose."

Under this proposal any expenditure must be directly related to
promoting the nomination or election of a candidate or the execution
of duties associated with holding public office. For the first time,
the bill outlines certain expenditures such as residential or
household items, utility payments for personal residences, tuition
payments, childcare costs, as well as other expenses that are
prohibited.

The State Board of Elections would be empowered to issue advisory
opinions from time to time, upon request, to address additional
potentially permissible expenses that are not exclusively outlined in
the bill itself.

SUMMARY OF PROVISIONS:

Section 1 amends section 14-130 of the election law, defining the
proper uses of campaign funds and delineating the improper uses of
campaign funds;

Section 2 sets forth the effective date.

JUSTIFICATION:

This bill, similar to another I carry S5127, addresses a number of
concerns with how campaign funds are 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.

PRIOR LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None to the state.

EFFECTIVE DATE:

This act shall take effect immediately.

2013-S7184 (ACTIVE) - Bill Text download pdf

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

                                  7184

                            I N  S E N A T E

                               May 2, 2014
                               ___________

Introduced  by Sens. GIPSON, GIANARIS -- 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  the  personal  use  of
  campaign funds

  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 be expended for  any  lawful
purpose THAT IS DIRECTLY RELATED TO PROMOTING THE NOMINATION OR ELECTION
OF A CANDIDATE OR THE EXECUTION OF DUTIES ASSOCIATED WITH THE HOLDING OF
A PUBLIC OFFICE OR PARTY POSITION.  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].
  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.  (A)  AS  USED IN THIS SECTION, EXPENDITURES FOR "PERSONAL USE" ARE
DEFINED AS EXPENDITURES THAT ARE EXCLUSIVELY FOR THE PERSONAL BENEFIT OF
THE CANDIDATE OR ANY OTHER INDIVIDUAL,  AND  ARE  USED  TO  FULFILL  ANY
COMMITMENT,  OBLIGATION,  OR  EXPENSE OF A PERSON THAT WOULD EXIST IRRE-
SPECTIVE OF THE CANDIDATE'S ELECTION CAMPAIGN OR THE  EXECUTION  OF  THE
DUTIES  OF PUBLIC OFFICE OR THE EXECUTION OF THE DUTIES OF A PARTY OFFI-
CIAL.
  (B) EXPENDITURES FOR PERSONAL USE SHALL INCLUDE, BUT ARE  NOT  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
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 PUBLIC DUTIES. IN THE EVENT THAT ANY PROPERTY OR BUILDING IS USED
FOR  BOTH  PERSONAL  AND  CAMPAIGN  USE,  PERSONAL  USE SHALL CONSTITUTE
EXPENSES THAT EXCEED THE PRO-RATED AMOUNT FOR  SUCH  EXPENSES  BASED  ON
FAIR-MARKET VALUE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14256-01-4

S. 7184                             2

  (II)  MORTGAGE,  RENT,  OR  UTILITY  PAYMENTS 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;
  (IV) TUITION PAYMENTS;
  (V) CHILDCARE COSTS;
  (VI)  DUES, FEES, OR GRATUITIES AT A COUNTRY CLUB, HEALTH CLUB, RECRE-
ATIONAL FACILITY OR OTHER NONPOLITICAL  ORGANIZATION,  UNLESS  THEY  ARE
PART  OF  A SPECIFIC FUNDRAISING EVENT THAT TAKES PLACE ON THE ORGANIZA-
TION'S PREMISES;
  (VII) SALARY PAYMENTS OR OTHER COMPENSATION  PROVIDED  TO  ANY  PERSON
WHOSE  SERVICES  ARE  NOT  SOLELY  FOR  CAMPAIGN PURPOSES OR PROVIDED IN
CONNECTION WITH THE EXECUTION OF THE DUTIES OF PUBLIC OFFICE;
  (VIII) 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;
  (IX) ADMISSION TO A SPORTING EVENT, CONCERT, THEATER, OR OTHER FORM OF
ENTERTAINMENT,  UNLESS  SUCH EVENT IS PART OF A CAMPAIGN OR OFFICEHOLDER
ACTIVITY;
  (X) PAYMENT OF ANY FINES OR PENALTIES ASSESSED PURSUANT TO THIS  CHAP-
TER  OR IN CONNECTION WITH A CRIMINAL CONVICTION OR BY THE JOINT COMMIS-
SION FOR PUBLIC ETHICS OR THE LEGISLATIVE ETHICS COMMISSION;
  (XI) TRAVEL EXPENSES INCLUDING AUTOMOBILE PURCHASES OR LEASES,  UNLESS
USED SOLELY FOR CAMPAIGN PURPOSES OR IN CONNECTION WITH THE EXECUTION OF
THE  DUTIES  OF PUBLIC OFFICE. IF A CANDIDATE USES CAMPAIGN FUNDS TO PAY
EXPENSES ASSOCIATED WITH TRAVEL THAT INVOLVES BOTH  PERSONAL  ACTIVITIES
AND  CAMPAIGN  ACTIVITIES  OR  OFFICIAL DUTIES, THE INCREMENTAL EXPENSES
THAT RESULT  FROM  THE  PERSONAL  ACTIVITIES  SHALL  BE  CONSIDERED  FOR
PERSONAL  USE UNLESS THE PERSON OR PERSONS BENEFITING FROM THE USE REIM-
BURSE OR REIMBURSES THE CAMPAIGN ACCOUNT WITHIN NINETY DAYS FOR THE FULL
AMOUNT OF THE INCREMENTAL EXPENSES; AND
  (XII) ANY OTHER EXPENDITURE DESIGNATED BY THE STATE BOARD OF ELECTIONS
AS CONSTITUTING PERSONAL USE.
  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 NOMI-
NATION OR ELECTION, INCLUDING AN EXPLORATORY  COMMITTEE,  PROVIDED  THAT
THE  CANDIDATE 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 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  FROM
TIME TO TIME UPON REQUEST TO ADDRESS THE APPLICATION OF THIS SECTION.
  S 2. This act shall take effect immediately.

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Senate Bill S7184

Sponsored By

Archive: Last Bill Status - In Senate Committee Elections Committee

co-Sponsors

2013-S7184 (ACTIVE) - Details

2013-S7184 (ACTIVE) - Summary

2013-S7184 (ACTIVE) - Sponsor Memo

2013-S7184 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7184

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Sponsored By

Archive: Last Bill Status - In Senate Committee Elections Committee

co-Sponsors

2013-S7184 (ACTIVE) - Details

2013-S7184 (ACTIVE) - Summary

2013-S7184 (ACTIVE) - Sponsor Memo

2013-S7184 (ACTIVE) - Bill Text download pdf

Comments