STATUS:

S7175-A SMITH No Same as

Election Law
TITLE....Relates to clean election campaign financing in this state; establishes the New York state
clean election campaign finance fund

03/17/08 REFERRED TO ELECTIONS

04/16/08 AMEND AND RECOMMIT TO ELECTIONS
04/16/08 PRINT NUMBER 7175A
BILL TEXT:

STATE OF NEW YORK

________________________________________________________________________

7175--A

IN SENATE
March 17, 2008
___________

Introduced by Sens. SMITH, ADAMS, AUBERTINE, BRESLIN, CONNOR, DIAZ,

HUNTLEY, KLEIN, KRUEGER, MONTGOMERY, ONORATO, OPPENHEIMER, PERKINS,
SABINI, SAMPSON, SAVINO, SCHNEIDERMAN, SERRANO -- read twice and
ordered printed, and when printed to be committed to the Committee on
Elections -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee

AN ACT to amend the election law and the tax law, in relation to enact-
ing the "New York state clean election campaign finance act"

The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:

1 Section 1. Legislative findings and declarations. The legislature

2 finds and declares that the current system of privately financed
3 campaigns diminishes the meaning of the right to vote by allowing large
4 contributions to have a deleterious influence on the political process.
5 As the United States Supreme Court found in Buckley v. Valeo, states
6 have a compelling interest "to reduce the deleterious effect of large
7 contributions on our political process." The current system also
8 violates the rights of all citizens to equal and meaningful partic-
9 ipation in the democratic or political process. It diminishes the free-
10 speech rights of non-wealthy voters and candidates whose voices are
11 muffled by those who can afford to monopolize political communications.
12 Additionally, the current system fuels the public perception of
13 conflicts of interest and the domination of special money interests.
14 Such perception undermines the electorate's confidence in the democratic
15 process. It also makes it very difficult for qualified candidates with-
16 out access to large contributors or personal fortunes to mount compet-
17 itive campaigns. Because it places challengers at a distinct disadvan-
18 tage, the system inhibits the free exchange of ideas and communication
19 with the electorate.
20 The legislature finds and declares that providing a voluntary clean
21 elections campaign finance system would enhance democracy. It would help
22 eliminate the deleterious influence of large contributions on the poli-
23 tical process, remove access to wealth as a major determinant of a citi-
24 zen's influence within the political process, and restore the meaning of

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.
LBD15741-02-8
S. 7175--A 2

1 the principle of "one person, one vote." It would also help restore the
2 rights of all citizens to equal and meaningful participation in the
3 democratic process. Instituting a public financing program would restore
4 the free-speech rights of non-wealthy candidates and voters by providing
5 candidates with resources with which to communicate ideas with the elec-
6 torate. Such a system would thus help enhance the First Amendment rights
7 of the electorate and candidates to be heard in the political process.
8 It would help restore the core First Amendment value of open and robust
9 debate in the political process. It would also diminish the electorate's
10 perception of domination by special interests and strengthen the
11 public's confidence in the democratic process and institutions. By
12 providing for public financing, this act also addresses the genuine
13 concern about the amount of time and effort that a candidate must devote
14 to raising campaign funds.
15 § 2. Short title. This act shall be known and may be cited as the "New
16 York state clean election campaign finance act".
17 § 3. The election law is amended by adding a new article 14-A to read
18 as follows:
19 ARTICLE 14-A
20 CLEAN ELECTION CAMPAIGN FINANCE ACT
21 Section 14-150. Definitions.
22 14-152. Eligibility and other requirements.
23 14-154. Qualified campaign expenditures.
24 14-156. Campaign contributions.
25 14-158. Optional clean election campaign financing.
26 14-160. Grant amounts for primary and general election
27 campaigns.
28 14-162. Optional public funding for party committees.
29 14-164. Office holders accounts.
30 14-166. Power of the board of elections.
31 14-168. New York state clean election campaign finance fund.
32 14-170. Disbursal of revenue for clean election campaign financ-
33 ing.
34 14-172. Examinations and audits; repayments.
35 14-174. Penalties.
36 14-176. Campaigns for office not subject to this article.
37 14-178. Reports.
38 § 14-150. Definitions. For purposes of this article, the following
39 terms shall have the following meanings:
40 1. "Authorized committee" shall mean a political committee that has
41 been authorized by one or more candidates to aid or take part in the
42 elections of such candidate or candidates and that has filed a statement
43 that such candidate or candidates have authorized such political commit-
44 tee pursuant to section 14-112 of this chapter.
45 2. "Board" shall mean the New York state campaign finance board estab-
46 lished in section 3-101 of this chapter.
47 3. "Contribution" shall mean: (a) any gift, subscription, advance, or
48 deposit of money or any thing of value, made in connection with the
49 nomination for election, or election, of any candidate; (b) any funds
50 received by a political committee from another political committee; and
51 (c) any payment, by any person other than a candidate or his or her
52 principal committee, made in connection with the nomination for
53 election, or election, of any candidate, including but not limited to
54 compensation for the personal services of any individual that are
55 rendered in connection with a candidate's election or nomination without
56 charge; provided, however, that none of the foregoing shall be deemed a
S. 7175--A 3

1 contribution if it is made, taken or performed by a person or a poli-

2 tical committee independent of the candidate or his or her agents or
3 principal committee pursuant to section 14-112 of this chapter. For
4 purposes of this subdivision, the term "independent of the candidate or
5 his or her agents or principal committee pursuant to section 14-112 of
6 this chapter" shall mean that the candidate or his or her agents or
7 principal committee did not authorize, request, suggest, foster or coop-
8 erate in any such activity; and provided further, that the term
9 "contribution" shall not include:
10 (i) the value of services provided without compensation by individuals
11 who volunteer a portion or all of their time on behalf of a candidate or
12 political committee;
13 (ii) the use of real or personal property and the cost of invitations,
14 food and beverages voluntarily provided by an individual to a candidate
15 or political committee on the individual's residential premises for
16 candidate-related activities to the extent such services do not exceed
17 five hundred dollars in value;
18 (iii) the travel expenses of any individual who on his or her own
19 behalf volunteers his or her personal services to any candidate or poli-
20 tical committee to the extent such expenses are not reimbursed and do
21 not exceed five hundred dollars in value;
22 (iv) expenditures by a bona fide membership organization in support of
23 the following activities by members of the organization who are volun-
24 teering their time on behalf of a candidate, not to exceed fifteen
25 dollars per member who volunteers, for: transportation of volunteers to
26 campaign activities; cost of feeding volunteers while volunteering for
27 the campaign; and materials such as badges and clothing that identifies
28 the name of the organization and/or candidate; and
29 (v) party expenditures by a party committee to the extent that the
30 total of such party expenditures under paragraphs (a) and (b) of subdi-
31 vision eight of this section do not exceed the following amounts: one
32 million dollars for a candidate for governor in a general election; one
33 hundred thousand dollars for a candidate for comptroller or attorney
34 general in a general election; forty thousand dollars for a candidate
35 for state senate in a general or special election and twenty thousand
36 dollars for a candidate for assembly in a general or special election.
37 4. "Covered election" shall mean any primary election for nomination
38 as a party candidate, general election or special election for election,
39 to the office of governor, lieutenant governor, attorney general, comp-
40 troller, senator or member of assembly.
41 5. "General election campaign period" shall mean the period beginning
42 the day after the primary and ending thirty days after the general
43 election.
44 6. "Independent expenditure" shall mean an expenditure by any person,
45 political party or other entity other than a candidate's principal
46 committee that is made for a communication that expressly advocates the
47 election or defeat of a clearly identified candidate in a covered
48 election that is made without participation, cooperation or coordination
49 or consultation with any candidate, candidate's committee or persons
50 working on behalf of a candidate or any communication that names or
51 depicts a clearly identified candidate and is disseminated twenty-one or
52 fewer days before the election.
53 7. "Non-participating candidate" shall mean a candidate who rejects
54 clean election campaign financing and chooses to run in an election with
55 campaign contributions raised from private sources, or who otherwise is
56 ineligible or fails to qualify for clean election campaign financing.
S. 7175--A 4

1 Non-participating candidates are ineligible to receive clean election

2 campaign financing or other benefits as defined by this article.
3 8. "Party expenditure" shall mean an expenditure by a party committee
4 for the benefit of a candidate or candidate committee for:
5 (a) the preparation, display or mailing or other distribution of a
6 party candidate listing. As used in this paragraph, "party candidate
7 listing" means any communication that meets the following criteria: (i)
8 the communication lists the name or names of candidates for election to
9 public office; (ii) the communication is distributed through public
10 advertising such as broadcast stations, cable television, newspapers or
11 similar media, or through direct mail, telephone, electronic mail,
12 publicly accessible sites on the Internet or personal delivery; (iii)
13 the treatment of all candidates in the communication is substantially
14 similar; and (iv) the content of the communication is limited to: (A)
15 for each such candidate, identifying information, including photographs,
16 the office sought, the office currently held by the candidate, if any,
17 the party enrollment of the candidate, a brief statement concerning the
18 candidate's positions, philosophy, goals, accomplishments or biography
19 and the positions, philosophy, goals or accomplishments of the candi-
20 date's party; (B) encouragement to vote for each such candidate; and (C)
21 information concerning voting, including voting hours and locations;
22 (b) a document in printed or electronic form, including a party plat-
23 form, a copy of an issue paper, information pertaining to the require-
24 ments of this title, a list of registered voters and voter identifica-
25 tion information, which document is created or maintained by a party
26 committee, for the general purposes of party building and is provided to
27 a candidate who is a member of the party that has established such party
28 committee;
29 (c) a campaign event at which a candidate or candidates are present;
30 (d) the retention of the services of an advisor to provide assistance
31 relating to campaign organization, financing, accounting, strategy, law
32 or media; or
33 (e) the use of offices, telephones, computers and similar equipment
34 which does not result in additional cost to the party committee.
35 9. "Political committee" shall have the meaning set forth in section
36 14-100 of this chapter.
37 10. "Principal committee" shall mean the authorized committee desig-
38 nated by a candidate pursuant to this article.
39 11. "Qualified campaign expenditure" shall mean an expenditure for
40 which clean election campaign funds may be used.
41 12. "Qualified candidate" shall mean any candidate for nomination for
42 election, or election, to the office of governor, lieutenant governor,
43 attorney general, comptroller, senator or member of the assembly who
44 qualifies for clean election campaign funds by collecting the required
45 number of qualifying contributions and agreeing to other requirements
46 specified in this article.
47 13. "Qualifying contribution" shall mean a contribution of at least
48 five dollars and no more than one hundred dollars per contribution which
49 is made to the principal committee and which is counted toward the
50 aggregate number of qualifying contributions needed to meet the thresh-
51 old amount for a specific office. A contribution shall be deemed a qual-
52 ifying contribution only if made by check, money order or in cash and
53 only if accompanied by a signed statement that: (a) the contribution is
54 intended to be a contribution to support the election of a candidate
55 seeking to qualify for a covered election; (b) the contribution was made
56 from the contributor's own funds; and (c) the contributor received noth-
S. 7175--A 5

1 ing of value in exchange for the contribution. Any contributions that do

2 not meet the requirements set forth in this article shall be returned to
3 the contributor.
4 14. "Qualifying period" shall mean the period during which participat-
5 ing candidates collect qualifying contributions.
6 15. "Threshold for eligibility" shall mean the total amount of quali-
7 fying contributions that a participating candidate and his or her prin-
8 cipal committee must receive in order for such candidate to qualify for
9 clean election campaign funding pursuant to this article.
10 16. "Transfer" shall mean any exchange of funds or any thing of value
11 between political committees authorized by the same candidate pursuant
12 to section 14-112 of this chapter and taking part in his or her
13 campaign.
14 17. "Office holder account" shall refer to a political committee
15 established under section 14-162 of this article.
16 § 14-152. Eligibility and other requirements. 1. To be eligible for
17 clean election campaign funding under this article, a candidate for
18 nomination for election or election shall:
19 (a) meet all the requirements of law to have his or her name on the
20 ballot;
21 (b) be a candidate for governor, lieutenant governor, comptroller,
22 attorney general, state senate or assembly in a primary, general or
23 special election and meet the threshold for eligibility set forth in
24 subdivisions three and four of this section;
25 (c) choose to participate in the clean election campaign funding
26 provisions of this article, by filing a written certification in such
27 form as may be prescribed by the board, which sets forth his or her
28 acceptance of and agreement to comply with the terms and conditions for
29 the provision of such funds;
30 (d) obtain and furnish to the board and his or her principal committee
31 any information the board may request relating to his or her campaign
32 expenditures or contributions and furnish such documentation and other
33 proof of compliance with this article as may be requested by such board;
34 (e) notify the board in the candidate's written certification as to:
35 (i) the existence of each authorized committee authorized by such candi-
36 date that has not been terminated; (ii) whether any such committee also
37 has been authorized by any other candidate; and (iii) if the candidate
38 has authorized more than one authorized committee, which authorized
39 committee has been designated by the candidate as the candidate's prin-
40 cipal committee for the election or elections covered by the candidate's
41 certification; provided, that such principal committee (A) shall be the
42 only committee authorized by such candidate to aid or otherwise take
43 part in the election or elections covered by the candidate's certif-
44 ication; (B) shall not be an authorized committee of any other candi-
45 date; and (C) shall not have been authorized or otherwise active for any
46 election prior to the election or elections covered by the candidate's
47 certification. The use of an entity other than the designated principal
48 committee to aid or otherwise take part in the election or elections
49 covered by the candidate's certification shall be a violation of this
50 section and shall trigger the application to such entity of all
51 provisions of this article governing principal committees;
52 (f) maintain along with his or her principal committee such records of
53 receipts and expenditures for a covered election as required by the
54 board;
55 (g) not make along with his or her principal committee expenditures
56 which in the aggregate exceed the grant of public funds set forth in
S. 7175--A 6

1 section 14-160 of this article plus the amount of qualifying contrib-

2 utions allowed pursuant to subdivision four of this section;
3 (h) agree not to accept aggregate party expenditures from the commit-
4 tee or committees of any political party in excess of the amount speci-
5 fied in subdivision four of this section;
6 (i) agree to participate in at least two public debates with other
7 qualified candidates prior to the date of a primary election or special
8 election and at least three debates with other qualified candidates
9 prior to the date of a general election. Such debates shall be estab-
10 lished under regulations promulgated by the board of elections. If a
11 candidate fails to participate in any debate required under this section
12 before an election, the candidate shall be liable for return of moneys
13 previously received for use by the candidate to pay election campaign
14 expenses and shall be ineligible to receive any further clean election
15 campaign funds for that election. For purposes of this paragraph, each
16 primary, general or special election shall be considered a separate
17 election; and
18 (j) satisfy any claim made by the board for the payment of civil
19 penalties or repayment of public funds that remains outstanding against
20 such candidate or his or her principal committee from a prior covered
21 election, if: (i) the candidate had written notice of such potential
22 claim and ineligibility to receive public funds prior to filing a writ-
23 ten certification for the current covered election pursuant to paragraph
24 (c) of this subdivision; or (ii) in the event no such timely notice has
25 been given pursuant to subparagraph (i) of this paragraph, the candidate
26 has been given an opportunity to present to the board reasons he or she
27 should be eligible to receive public funds.
28 2. Notwithstanding any other provision of law, rule or regulation to
29 the contrary, the qualifying period shall commence on the first day of
30 January of the year in which the election or elections for which the
31 candidate seeks to qualify will be held and end no later than thirty
32 days before the date of the primary election in that same year.
33 3. The qualification period in a special election shall begin the day
34 the election is announced. Candidates shall have up to fourteen days
35 before the date of the special election to collect qualifying contrib-
36 utions. The number of qualifying contributions shall be half of the
37 number of contributions required in a general election. Funds shall be
38 released to special election candidates within three days of submission
39 of qualifying contributions.
40 4. (a) The threshold for eligibility for clean election campaign fund-
41 ing for participating candidates in a general election shall be in the
42 case of:
43 (i) candidates for state senate, at least one thousand qualifying
44 contributions from persons registered to vote in the state senate
45 district shall be collected. The total amount of qualifying contrib-
46 utions collected by a candidate for state senate shall not exceed forty
47 thousand dollars. Any amounts in excess of this limit shall be donated
48 to the New York state clean election campaign finance fund;
49 (ii) candidates for state assembly, at least four hundred qualifying
50 contributions from persons registered to vote in the state assembly
51 district shall be collected. The total amount of qualifying contrib-
52 utions collected by a candidate for state assembly shall not exceed
53 twenty thousand dollars. Any amounts in excess of this limit shall be
54 donated to the New York state clean election campaign finance fund;
55 (iii) candidates for governor, at least fifteen thousand qualifying
56 contributions, including at least two hundred fifty contributions from
S. 7175--A 7

1 persons registered to vote in each of a majority of the congressional

2 districts of the state shall be collected. The total amount of qualify-
3 ing contributions collected by a candidate for governor shall not exceed
4 an amount equal to four hundred fifty thousand dollars. Any amounts in
5 excess of this limit shall be donated to the New York state clean
6 election campaign finance fund; and
7 (iv) candidates for lieutenant governor, attorney general and comp-
8 troller, at least ten thousand qualifying contributions, including at
9 least one hundred fifty contributions from persons registered to vote
10 from a majority of the congressional districts of the state shall be
11 collected. The total amount of qualifying contributions collected by a
12 candidate for governor, attorney general or comptroller shall not exceed
13 an amount equal to three hundred thousand dollars. Any amounts in excess
14 of this limit shall be donated to the New York state clean election
15 campaign finance fund.
16 (b) In addition to the requirements of paragraph (a) of this subdivi-
17 sion, in order to be eligible for clean election campaign financing for
18 the general election, the candidate shall have participated in the
19 primary election and receive the highest number of votes of the candi-
20 dates contesting the primary election from his or her respective party
21 and have won the party's nomination. This paragraph shall not apply to
22 independent candidates, whose eligibility requirements are set forth in
23 this section.
24 (c) In addition to the requirements of paragraph (a) of this subdivi-
25 sion, in order to be eligible to receive clean election campaign funds
26 in a primary election, a qualified candidate shall agree that in the
27 event he or she is a candidate for such office in any other election
28 held in the same calendar year, that he or she will be bound in each
29 such other election by the eligibility requirements and all other
30 provisions of this article.
31 5. No principal committee of a qualified candidate for a covered
32 election may be authorized to aid or take part in the elections of more
33 than one candidate.
34 6. Regardless of whether a candidate demonstrates eligibility for
35 clean election campaign financing under this article, a candidate who
36 has filed a written certification in accordance with subdivision one of
37 this section and his or her principal committee are nonetheless required
38 to abide by the requirements of paragraphs (d), (e) and (f) of subdivi-
39 sion one of this section.
40 7. A qualified candidate who receives clean election campaign funds
41 shall not accept or spend any funds other than qualifying contributions
42 up to the limit specified in paragraph (a) of subdivision four of this
43 section and clean election campaign funds.
44 8. A qualified candidate who receives clean election campaign funds
45 shall identify the name of the candidate on all printed campaign litera-
46 ture, and acknowledge therein that clean election campaign funds were
47 used in preparation of such literature. Additionally, all television
48 advertisements and radio advertisements shall include the voice of the
49 candidate.
50 § 14-154. Qualified campaign expenditures. 1. Clean election campaign
51 funds provided under the provisions of this article may be used only for
52 expenditures by a principal committee on behalf of a candidate to
53 further the candidate's nomination for election or election during the
54 calendar year in which the primary or general election in which the
55 candidate is seeking nomination for election or election is held.
56 2. Such funds may not be used for:
S. 7175--A 8

1 (a) an expenditure in violation of any law;

2 (b) payments made to the candidate or a spouse, child, grandchild,
3 parent, grandparent, brother or sister of the candidate or spouse of
4 such child, grandchild, parent, grandparent, brother or sister, or to a
5 business entity in which the candidate or any such person has an owner-
6 ship interest or serves as an employee, officer or member of the board
7 of directors;
8 (c) payments in excess of the fair market value of services, materi-
9 als, facilities or other things of value received in exchange;
10 (d) any expenditures made in any calendar year after the candidate has
11 been finally disqualified or had his or her petitions finally declared
12 invalid by the applicable board of elections or a court of competent
13 jurisdiction, except as otherwise permitted by subdivision four of
14 section 14-168 of this article, or after the only remaining opponent of
15 the candidate has been finally disqualified;
16 (e) payments in cash, except as prescribed in subdivision three of
17 section 14-170 of this article;
18 (f) any contribution, transfer or loan made to another candidate or
19 political committee; or
20 (g) gifts, except brochures, buttons, signs and other printed campaign
21 material.
22 § 14-156. Campaign contributions. Qualified candidates shall furnish
23 complete campaign records, including all records of qualifying contrib-
24 utions and expenditures to the board on a quarterly basis or on request
25 by the board.
26 § 14-158. Optional clean election campaign financing. Each qualified
27 candidate in a covered election may obtain payment to the principal
28 committee designated by such candidate pursuant to this article from
29 clean election campaign funds for qualified campaign expenditures, in
30 accordance with the provisions of this article, and subject to appropri-
31 ation. 1. No such clean election campaign funds shall be paid to a
32 principal committee unless the board determines that the qualified
33 candidate has met the eligibility requirements of this article. Payment
34 shall not exceed the amounts specified in this article, and shall be
35 made only in accordance with the provisions of this article. Such
36 payment may be made only to the qualified candidate's principal commit-
37 tee. No clean election campaign funds shall be used except as reimburse-
38 ment or payment for qualified campaign expenditures actually and
39 lawfully incurred.
40 2. Clean election campaign funds shall be paid to a qualified candi-
41 date's principal committee based on the following schedule:
42 (a) a candidate for a primary election shall receive twenty-five
43 percent of the grant of public funds for the primary election within
44 five days after certification by the board that the candidate has met
45 the eligibility requirements for participating candidates including
46 approval of qualifying contributions under subdivision three of section
47 14-152 of this article. Such candidate shall receive the remaining
48 seventy-five percent of the grant of public funds for the primary
49 election within five days after the candidate has qualified for the
50 ballot either by convention or petition. Provided, however, the remain-
51 ing seventy-five percent of the grant of public funds will not be given
52 to a candidate who is unopposed in the primary election;
53 (b) a candidate who receives a party nomination for the general
54 election and who qualifies for clean elections funds for the general
55 election shall receive the grant of public funds for the general
56 election within three days after the date of the primary election; and
S. 7175--A 9

1 (c) a candidate who is nominated for the general election ballot by

2 independent nominating petition and who qualifies for clean elections
3 funds for the general election shall receive the grant of public funds
4 for the general election within three days after meeting all eligibility
5 requirements for a participating candidate.
6 3. Qualified candidates who are unopposed in the general election
7 shall receive thirty-five percent of the grant of clean elections funds
8 for a candidate for general election for such election.
9 4. A qualified candidate seeking or obtaining nomination for election
10 by more than one party shall be deemed one candidate, and shall not
11 receive additional clean election campaign funds or be authorized to
12 accept contributions in excess of the maximum contribution applicable
13 pursuant to subdivision four of section 14-152 of this article or make
14 additional expenditures by reason of such candidate seeking or obtaining
15 nomination for election by more than one party.
16 5. Notwithstanding any other provision of this chapter, if there is an
17 additional day for voting held pursuant to section 3-108 of this chapter
18 or an election is held pursuant to court order, a qualified candidate in
19 such election shall obtain payment for qualified campaign expenditures
20 in an amount equal to twenty-five cents for each one dollar of clean
21 election campaign funds paid pursuant to this article to the candidate's
22 principal committee for the preceding election. Except as provided by
23 this subdivision, no additional clean election campaign funds shall be
24 provided to any candidate for such election or an additional day for
25 voting, except pursuant to subdivision six of section 14-160 of this
26 article.
27 § 14-160. Grant amounts for primary and general election campaigns. 1.
28 (a) A qualified candidate in a primary election for nomination for state
29 senate shall be eligible for clean election campaign funds for the
30 primary campaign in the amount of one dollar and fifteen cents per each
31 enrolled voter in the candidate's party residing within the senate
32 district as of the first day of January of the year in which the primary
33 election is to be held.
34 (b) A qualified candidate for state senate who has been nominated
35 either as a party candidate or an independent candidate shall be eligi-
36 ble for clean election campaign funds for the general election campaign
37 in the amount of one hundred fifty thousand dollars.
38 2. (a) A qualified candidate in a primary election for nomination for
39 member of the assembly shall be eligible for clean election campaign
40 funds for the primary campaign in the amount of one dollar and fifty
41 cents per each enrolled voter in the candidate's party residing within
42 the assembly district as of the first day of January of the year in
43 which the primary election is to be held.
44 (b) A qualified candidate for state assembly who has been nominated
45 either as a party candidate or an independent candidate shall be eligi-
46 ble for clean election campaign funds for the general election campaign
47 in the amount of one hundred thousand dollars.
48 3. (a) A qualified candidate in a primary election for nomination for
49 governor shall be eligible for clean election campaign funds for the
50 primary campaign in the amount of one dollar per each enrolled voter in
51 the candidate's party residing within the state as of the first day of
52 January of the year in which the primary election is to be held.
53 (b) A qualified candidate for governor who has been nominated either
54 as a party candidate or an independent candidate shall be eligible for
55 clean election campaign funds for the general election campaign in the
56 amount of seven million five hundred thousand dollars.
 S. 7175--A 10

1 4. (a) A qualified candidate in a primary election for nomination for

2 lieutenant governor, attorney general or comptroller shall be eligible
3 for clean election campaign funds for the primary campaign in the amount
4 of sixty cents per each enrolled voter in the candidate's party residing
5 within the state as of the first day of January of the year in which the
6 primary election is to be held.
7 (b) A qualified candidate for attorney general or comptroller who has
8 been nominated either as a party candidate or an independent candidate
9 shall be eligible for clean election campaign funds for the general
10 election campaign in the amount of four million dollars.
11 5. Not later than March first, two thousand fourteen, and every fourth
12 year thereafter, the board shall:
13 (a) determine the percentage difference between the average over a
14 calendar year of the consumer price index for all urban areas published
15 by the United States bureau of labor statistics for the twelve months
16 preceding the beginning of such calendar year and the average over the
17 calendar year two thousand seven of such consumer price index;
18 (b) adjust each public grant formula for primary elections applicable
19 pursuant to this subdivision by the amount of such percentage difference
20 to the nearest five one-hundredths of a dollar;
21 (c) adjust each public grant for general elections applicable pursuant
22 to this subdivision by the amount of such percentage difference to the
23 nearest thousand dollars; and
24 (d) publish such adjusted expenditure limitation in the state regis-
25 ter.
26 Such adjusted expenditure limitation shall be in effect for any
27 election held before the next such adjustment.
28 6. Additional funds from the fund shall be awarded to a qualified
29 candidate when the total of campaign expenditures by non-participating
30 candidates who oppose a qualified candidate and independent expenditures
31 directed against the qualified candidate or in support of the qualified
32 candidate's opponent, exceeds one hundred percent of the public grant
33 awarded to the candidate. An additional dollar shall be awarded for each
34 dollar in excess of one hundred percent of the public grant, up to a
35 total of four times the amount of such public grants. The board shall
36 make additional dollars available to the candidate and/or principle
37 committee within twenty-four hours of receiving the report that triggers
38 such additional funds. The board shall promulgate any other needed rules
39 and regulations to govern the distribution of additional grants in such
40 amounts and at such times that will ensure qualified candidates receive
41 additional funds in an expeditious manner.
42 7. Non-participating candidates and persons or entities making inde-
43 pendent expenditures shall comply with all reporting requirements for
44 political committees and candidates as provided in article fourteen of
45 this chapter and pursuant to the rules and regulations promulgated by
46 the board. In addition, twenty-one days before the date of a covered
47 election in which a qualified candidate is running, non-participating
48 candidates running against a qualified candidate in such election and
49 any person or entity making independent expenditures in support of or in
50 opposition to a qualified candidate in such election shall file a state-
51 ment with the board reporting total campaign expenditures made or obli-
52 gated to be made as of such date, and thereafter shall file additional
53 statements with the board within twenty-four hours whenever total
54 campaign expenditures made, or obligated to be made, increase by one
55 thousand dollars or more.
S. 7175--A 11
 1 § 14-162. Optional public funding for party committees. A political
2 party committee that agrees not to accept contributions totaling more
3 than five thousand dollars from any entity in a calendar year may
4 receive matching funds from the clean elections fund at the rate of two
5 dollars in public funds for every one dollar in private contributions
6 for contributions from registered voters in New York of no more than two
7 hundred fifty dollars, provided that no political party may receive more
8 than two million five hundred thousand dollars from the New York state
9 clean elections campaign finance fund in a calendar year.
10 § 14-164. Office holders accounts. A participating candidate who is
11 elected to office in a general or special election may establish an
12 office holder account, as long as such account meets the following
13 requirements:
14 1. the office holder account may only disburse funds during calendar
15 years in which there is no primary or general election for the office
16 held by the participating candidate from January first through July
17 first of the calendar year of the primary or general election for such
18 office;
19 2. the maximum amount of funds that may be deposited in an office
20 holder's account and that may be disbursed from an office holder's
21 account shall be: fifty thousand dollars for a governor, lieutenant
22 governor, attorney general or comptroller; eighteen thousand dollars for
23 a state senator; and twelve thousand dollars for a member of the assem-
24 bly; and
25 3. the only funds that may be received by an office holder's account
26 are: unspent funds from the candidate's principal committee as estab-
27 lished in section 14-170 of this article and additional funds that are
28 collected from registered voters in the office holder's jurisdiction and
29 that meet the legal requirements of a qualifying contribution pursuant
30 to subdivision thirteen of section 14-150 of this article.
31 All expenditures from office holders accounts must meet all the
32 requirements of law for spending from a political committee and the
33 requirements of section 14-154 of this article.
34 § 14-166. Power of the board of elections. 1. The board shall have
35 the power to investigate all matters relating to the performance of its
36 functions and any other matter relating to the proper administration of
37 this article and for such purposes shall have the power to require the
38 attendance and examine and take the testimony under oath of such persons
39 as it shall deem necessary and to require the production of books,
40 accounts, papers and other evidence relative to such investigation.
41 2. The board may render advisory opinions with respect to questions
42 arising under this article. Such advisory opinions may be rendered on
43 the written request of a candidate, an officer of a political committee
44 or member of the public, or may be rendered on its own initiative. The
45 board shall make public its advisory opinions. The board shall develop a
46 program for informing candidates and the public as to the purpose and
47 effect of the provisions of this article. The board shall prepare and
48 make available educational materials, including compliance manuals and
49 summaries and explanations of the purposes and provisions of this arti-
50 cle. Such materials shall be prepared in plain language. The board shall
51 prepare and make available materials, including, to the extent feasible,
52 computer software, to facilitate the task of compliance with the disclo-
53 sure and record-keeping requirements of this article.
54 3. The board shall have the authority to promulgate such rules and
55 regulations and provide such forms as it deems necessary for the admin-
56 istration of this article. The board shall promulgate regulations
S. 7175--A 12

1 concerning the form in which contributions and expenditures are to be

 2 reported, the periods during which such reports must be filed and the
3 verification required. The board shall require the filing of reports of
4 contributions and expenditures for purposes of determining compliance
5 with this article in accordance with the schedule specified by such
6 board for the filing of campaign receipt and expenditure statements. The
7 board may also require the filing of additional reports by qualified
8 candidates and their principal committees as well as by non-participat-
9 ing candidates and their authorized committees and by persons or enti-
10 ties making independent expenditures, in furtherance of its duties under
11 this article.
12 4. The board shall develop a computer database that shall contain all
13 information necessary for the proper administration of this chapter
14 including information on contributions to and expenditures by candidates
15 and their principal committees and distributions of moneys from the
16 fund. Such database shall be accessible to the public.
17 5. The board may administer a public campaign finance law at the
18 request of other jurisdictions in New York, including any city, town,
19 village, county, municipal corporation, district corporation, district
20 or other political subdivision of the state. The board shall accept
21 authority and responsibility for such administration if in the opinion
22 of a majority of the board, the public campaign finance law enacted by
23 such jurisdiction is substantially similar in administrative structure
24 to covered elections in this article. Nothing in this provision shall
25 require the state government to provide funds for the public financing
26 of elections for other jurisdictions.
27 6. The board may take such other actions as are necessary and proper
28 to carry out the purposes of this article.
29 § 14-168. New York state clean election campaign finance fund. 1.
30 There is hereby established a special fund, to be known as the "New York
31 state clean election campaign finance fund". The monies in such fund may
32 be expended by the board only as payments for qualified candidates in
33 accordance with the provisions of this article.
34 2. The fund shall be kept separate and shall be credited with all sums
35 appropriated thereto, any donations received pursuant to subdivision
36 five of this section, all earnings accruing on such funds and any monies
37 realized from the provisions of subdivision three of section 14-172 of
38 this article.
39 3. The moneys in such fund shall be made available to qualified candi-
40 dates by the board upon its certification that such candidates qualify
41 for such moneys.
42 4. No moneys shall be made available to any qualified candidate who
43 has been finally disqualified or whose designating or nominating
44 petitions have been finally declared invalid by the applicable board of
45 elections or a court of competent jurisdiction. Any payment from the
46 fund in the possession of such a candidate or his or her authorized
47 committees on the date of such final disqualification or invalidation
48 may not thereafter be expended for any purpose except the payment of
49 liabilities incurred in qualified campaign expenditures before such date
50 and shall be promptly repaid to the fund.
51 5. The board shall be empowered to accept donations to be credited to
52 the fund.
53 6. All qualified candidates who have been defeated in a primary or
54 general election or who fail to remain as a candidate throughout a
55 primary or general election campaign period or who have won in the
S. 7175--A 13

1 general election shall return to the fund all unspent money that the
2 candidate received from the fund.
3 7. If at any time the board of elections determines that the New York
 4 state clean election campaign finance fund does not have sufficient
5 revenues, or is likely to not have sufficient revenues, for payment to
6 qualifying candidates under this article, then the board of elections
7 shall report this determination to the comptroller, along with the
8 amount which will be necessary to provide qualifying candidates with
9 financing pursuant to this article and a detailed statement of the
10 assumptions and methodology on which such determination was based. No
11 more than four days after receiving such a determination, the comp-
12 troller shall transfer the amount determined by the board of elections
13 to be necessary from the general fund to the New York state clean
14 election campaign finance fund.
15 8. The aggregate amount which may be provided to qualified candidates
16 in any four year election cycle from the fund shall not exceed one-tenth
17 of one percent of the total expenditures made pursuant to appropriations
18 made by law during such time period. If the amount of funds for which
19 qualified candidates have qualified reaches or exceeds this level, the
20 board of elections shall reduce, by an equal percentage for all candi-
21 dates, the respective amount of public financing made available to qual-
22 ified candidates.
23 § 14-170. Disbursal of revenue for clean election campaign financing.
24 1. Upon certifying that a candidate is eligible for clean election
25 campaign financing, the board of elections shall transfer the amount of
26 public funds due to the candidate's principal committee.
27 2. A qualified candidate and his or her representative are prohibited
28 from paying for campaign expenses in any way other than by funds from
29 the candidate's principal committee.
30 3. A petty cash fund may be established consistent with the other
31 provisions of this article.
32 (a) Qualified candidates may have a daily petty cash fund, for daily
33 expenses, including food, newspapers, magazines, public telephones, and
34 other minor necessities unrelated to the direct operating costs of the
35 campaign. The daily maximum amount of the petty cash fund shall be
36 established by the board.
37 (b) All cash expenditures in excess of twenty-five dollars require a
38 cash receipt specifying the item purchased and its purpose, its cost,
39 and the place of purchase.
40 § 14-172. Examinations and audits; repayments. 1. The board of
41 elections is hereby empowered to audit and examine all matters relating
42 to the performance of its functions and any other matter relating to the
43 proper administration of this article. Such audit and examination
44 powers shall extend to all qualified candidates and their principal
45 committees, to all non-participating candidates and their authorized
46 committees, and to persons or entities making independent expenditures.
47 2. (a) If the board determines that any portion of the payment made to
48 the principal committee of a qualified candidate from the fund was in
49 excess of the aggregate amount of payments which such candidate was
50 eligible to receive pursuant to this article, it shall notify such
51 committee and such committee shall pay to the fund an amount equal to
52 the amount of excess payments. In the event that such committee shall
53 fail to make such payment, such candidate shall, within fifteen days of
54 receiving notice of such failure from the board, make such payment to
55 the fund.
S. 7175--A 14

1 (b) If the board determines that any portion of the payment made to a
2 principal committee of a qualified candidate from the fund was used for
3 purposes other than qualified campaign expenditures, it shall notify
4 such committee of the amount so disqualified and such committee shall
5 pay to the fund an amount equal to such disqualified amount. In the
 6 event that such committee shall fail to make such payment, such candi-
7 date shall, within fifteen days of receiving notice of such failure from
8 the board, make such payment to the fund.
9 (c) If the total of contributions, other receipts, and payments from
10 the fund received by a candidate's principal committee exceed the total
11 campaign expenditures of such committee for all covered elections held
12 in the same calendar year, such committee shall use such excess funds to
13 reimburse the fund for payments received by the principal committee from
14 the fund during such calendar year. Such reimbursement shall be made not
15 later than ten days after all liabilities have been paid and in any
16 event, not later than December thirtieth of the year following such
17 calendar year. At the time that all obligations are paid and no later
18 than June thirtieth of the year following such calendar year any and all
19 unspent funds in a principal committee must be transferred to an office
20 holders account up to the maximum allowable amount or paid to the New
21 York state clean election campaign finance fund.
22 3. If a qualified candidate whose principal committee has received
23 clean election campaign funds is disqualified by a court of competent
24 jurisdiction on the grounds that such candidate committed fraudulent
25 acts in order to obtain a place on the ballot and such decision is not
26 reversed, such candidate and his or her principal committee shall pay to
27 the New York state clean election campaign finance fund an amount equal
28 to the total of clean election campaign funds received by such principal
29 committee.
30 § 14-174. Penalties. 1. Any qualified candidate and his or her princi-
31 pal committee, or any non-participating candidate and his or her author-
32 ized committee, that fails to file in a timely manner a statement or
33 record required to be filed by this article or the rules of the board in
34 implementation thereof or who violates any other provision of this arti-
35 cle or rule promulgated thereunder, and any committee treasurer or any
36 other agent of a qualified or non-participating candidate who commits
37 such a violation, shall be subject to a civil penalty in an amount not
38 in excess of one thousand dollars.
39 2. (a) In addition to the penalties provided in subdivision one of
40 this section, if the aggregate amount of expenditures by a candidate's
41 principal committee exceeds the amount such candidate is eligible to
42 receive and to spend pursuant to this article, such candidate and his or
43 her principal committee shall be subject to a civil penalty in an amount
44 not to exceed three times the sum by which such expenditures exceed the
45 applicable limitation.
46 (b) In addition to the penalties provided in subdivision one of this
47 section, a qualified candidate or his or her principal committee that
48 have been found by the board to have violated a provision of this chap-
49 ter by failing to provide any response to a draft audit report sent to
50 the candidate after the election by the board pursuant to section 14-172
51 of this article, shall be subject to a civil penalty for such violation
52 of up to ten percent of the total public funds received by such candi-
53 date.
54 3. The intentional or knowing furnishing of any false or fictitious
55 evidence, books or information to the board under this article, or the
56 inclusion in any evidence, books, or information so furnished of a
S. 7175--A 15

1 misrepresentation of a material fact, or the falsifying or concealment

2 of any evidence, books, or information relevant to any audit by the
3 board or the intentional or knowing violation of any other provision of
4 this article shall be punishable as a class A misdemeanor in addition to
5 any other penalty as may be provided under law. The board shall seek to
6 recover any clean election campaign funds obtained as a result of such
 7 conduct. Any monies so obtained shall be deposited into the New York
8 state clean election campaign finance fund.
9 § 14-176. Campaigns for office not subject to this article. Contrib-
10 utions, loans, guarantees and other security for such loans used and
11 expenditures made toward the payment of liabilities incurred by a candi-
12 date in an election held prior to the effective date of this section or
13 in which he or she did not choose to participate in the clean election
14 campaign funding provisions of this article, or in a campaign for public
15 office other than a campaign covered by this article, shall not be
16 subject to the requirements and limitations of this article.
17 § 14-178. Reports. The board shall review and evaluate the effect of
18 this article upon the conduct of election campaigns in the state and
19 shall submit a report to the governor and the legislature on or before
20 the first of September in the calendar year after this section shall
21 have taken effect and at any other time upon the request of the governor
22 or the legislature and at such other times as the board deems appropri-
23 ate, containing:
24 1. the number, names and offices of candidates qualifying for and
25 choosing to receive clean election campaign funds pursuant to this arti-
26 cle, and of candidates failing to qualify or otherwise not choosing to
27 receive such funds, in each election during the period after the effec-
28 tive date of this article or since the end of the previous four year
29 reporting period;
30 2. the amount of clean election campaign funds provided to the princi-
31 pal committee of each candidate pursuant to this article and the
32 contributions received and expenditures made by each such candidate and
33 his or her principal committee, in each election during the period after
34 the effective date of this article or since the end of the previous four
35 year reporting period;
36 3. recommendations as to whether the provisions of this article
37 governing maximum contribution amounts, thresholds for eligibility and
38 expenditure limitations should be amended and setting forth the amount
39 of, and reasons for, any amendments it recommends;
40 4. analysis of the effect of this article on election campaigns,
41 including its effect on the sources and amounts of private financing,
42 the level of campaign expenditures, voter participation, the number of
43 candidates and the candidate's ability to campaign effectively for
44 elected office;
45 5. a review of the procedures utilized in providing funds to candi-
46 dates; and
47 6. such recommendations for changes in this article as it deems appro-
48 priate.
49 § 4. The tax law is amended by adding a new section 626-a to read as
50 follows:
51 § 626-a. The New York state clean election campaign finance fund.
52 Effective for any taxable year commencing on or after the first of Janu-
53 ary next succeeding the effective date of this section, an individual in
54 any taxable year may elect to have an amount up to one hundred dollars
55 of any tax otherwise payable deposited to the New York state clean
56 election campaign finance fund established in section 14-168 of the
S. 7175--A 16

1 election law. Such contribution shall not reduce the amount of state tax
2 owed by such individual. The commissioner shall include a space on the
3 personal income tax return to enable a taxpayer to authorize such depos-
4 it. Notwithstanding any other provision of law to the contrary, all
5 revenues collected pursuant to this section shall be credited to the New
6 York state clean election campaign finance fund and used only for those
7 purposes enumerated in section 14-168 of the election law.
 8 § 5. The election law is amended by adding a new section 3-101 to read
9 as follows:
10 § 3-101. State campaign finance board. 1. There shall be a state
11 campaign finance board consisting of five members. One member of the
12 board shall be appointed by the governor, who shall be the chairperson;
13 one member shall be appointed by the temporary president of the senate;
14 one member shall be appointed by the speaker of the assembly; one member
15 shall be appointed by the minority leader of the senate; and one member
16 shall be appointed by the minority leader of the assembly. The members
17 shall first be appointed to serve as follows:
18 (a) the member appointed by the governor for a term of five years;
19 (b) the member appointed by the temporary president of the senate for
20 a term of three years;
21 (c) the member appointed by the speaker of the assembly for a term of
22 three years;
23 (d) the member appointed by the minority leader of the senate for a
24 term of two years;
25 (e) the member appointed by the minority leader of the assembly for a
26 term of two years.
27 Each term shall commence on April first, two thousand nine. Thereaft-
28 er, each member shall be appointed for a term of five years according to
29 the original manner of appointment. In case of a vacancy in the office
30 of a member, a member shall be appointed to serve for the remainder of
31 the unexpired term according to the original manner of appointment. Each
32 member shall be a resident of the state, registered to vote therein.
33 Each member shall agree not to make contributions to any candidate for
34 nomination for election, or election, to the office of governor, lieu-
35 tenant governor, comptroller, attorney general or member of the legisla-
36 ture or any other office that the board supervises. No member shall
37 serve as an officer of a political party or be a candidate or partic-
38 ipate in any capacity in a campaign by a candidate for nomination for
39 election or election to the office of governor, lieutenant governor,
40 comptroller, attorney general or member of the legislature or any other
41 office that the board supervises. Officers and employees of the state or
42 any state agency, lobbyists required to file a statement of registration
43 under the lobbying act and the employees of such lobbyists shall not be
44 eligible to be members of the board. Members of the board shall be
45 selected solely on the basis of merit and without regard to political
46 affiliation and shall not be disqualified from continuing in office for
47 any reason other than unfitness or inability to perform the duties
48 involved.
49 2. The members of the board shall be compensated at the rate of one
50 hundred dollars per calendar day when performing the work of the board.
51 3. The board may employ necessary staff, including an executive direc-
52 tor and a counsel, and make necessary expenditures subject to appropri-
53 ation. The board may employ such staff, including legal and accounting
54 staff, as are necessary for providing technical assistance to prospec-
55 tive and participating candidates, for the purpose of promoting under-
56 standing of, participation in, and compliance with the requirements of
S. 7175--A 17

1 the clean election campaign finance act created by article fourteen-A of

2 this chapter.
3 4. No member of the board shall be removed from office except for
4 cause and upon notice and hearing.
5 § 6. Section 3-104 of the election law is amended by adding a new
6 subdivision 3-a to read as follows:
7 3-a. If after an investigation, the state board of elections finds
8 reasonable cause to believe that a violation of article fourteen-A of
 9 this chapter has taken place, it may institute an adjudicatory proceed-
10 ing in accordance with section 3-109 of this title for the purpose of
11 determining whether or not a violation has taken place and assessing a
12 civil penalty pursuant to section 14-126 of this chapter.
13 § 7. Subdivision 4 of section 3-104 of the election law, as redesig-
14 nated by chapter 9 of the laws of 1978, is amended to read as follows:
15 4. The state [or other] board of elections may, where appropriate,
16 commence a judicial proceeding [with respect to the filing or failure to
17 file any statement of receipts, expenditures, or contributions, under
18 the provisions] seeking civil penalties pursuant to subdivision one of
19 section 14-126 of this chapter[, and the state board of elections may
20 direct the appropriate other board of elections to commence such
21 proceeding].
22 § 8. The election law is amended by adding a new section 3-109 to read
23 as follows:
24 § 3-109. Adjudicatory proceeding. 1. Except as otherwise provided in
25 this section, an adjudicatory proceeding to determine whether or not a
26 violation of article fourteen of this chapter has taken place and to
27 assess a civil penalty pursuant to section 14-126 of this chapter shall
28 be conducted in accordance with article three of the state administra-
29 tive procedure act.
30 2. Such proceeding shall be conducted by a hearing officer selected on
31 a random basis by the state board of elections from an active list of at
32 least six attorneys who have applied for and been approved by the board
33 as hearing officers. Such hearing officer shall be a state board of
34 elections commissioner or an independent contractor who shall be compen-
35 sated on a per diem basis at a rate fixed by the board in its regu-
36 lations promulgated pursuant to this section.
37 3. The hearing officer shall prepare and submit to the state board of
38 elections, together with the entire record of the proceeding, a written
39 report containing findings of fact, conclusions of law, and recommenda-
40 tions concerning the imposition of a civil penalty.
41 4. After reviewing the record, findings, and recommendations of the
42 hearing officer, the state board shall make a determination as to wheth-
43 er or not a violation has occurred and, whenever appropriate, impose a
44 penalty consistent with section 14-126 of this chapter. Regardless of
45 whether or not a penalty is assessed, the state board of elections shall
46 issue a written determination setting forth its findings and conclu-
47 sions.
48 5. The state board of elections shall promulgate rules and regulations
49 to implement the provisions of this section and subdivision three-a of
50 section 3-104 of this title, including, but not limited to, procedural
51 rules as provided for in subdivision three of section three hundred one
52 of the state administrative procedure act, factors to be considered in
53 setting a penalty amount pursuant to subdivision one of section 14-126
54 of this chapter, a per diem compensation rate for hearing officers, and
55 any qualifications for hearing officers which the board deems necessary
56 in order to insure their objectivity and independence. Concerning such
S. 7175--A 18

1 qualifications, the rules and regulations shall provide, at a minimum,

2 that hearing officers be members in good standing of the bar of this
3 state, that they refrain from appearing before the state board of
4 elections or from any activities as a lobbyist, and that they hold no
5 public office or party position.
6 6. Nothing in this section shall be construed as limiting any existing
7 powers of the state board of elections, including, but not limited to,
8 its investigative powers and its power to refer violations warranting
9 criminal prosecution to the appropriate district attorney.
10 § 9. If any section of this act or any part thereof shall be adjudged
11 by any court of competent jurisdiction to be invalid, such judgment
12 shall not affect, impair or invalidate the remainder or any other
13 section or part thereof.
14 § 10. This act shall take effect on the first of January next succeed-
15 ing the date on which it shall have become a law.