Requires greater disclosure and transparency of campaign finance information; provides for independent expenditure reporting

BILL NUMBER:S1694

Title of bill

An act to amend the election law, in relation to political communication, independent expenditure reporting, enforcement proceeding and penalties for violations

Subject and purpose

To prohibit candidates, political parties and committees from falsely identifying the source of political communications and to require the identification of the source of independent expenditures for political communications in support of or in opposition to candidates and ballot proposals to promote transparency and accountability.

Summary and description of provisions

Section 1 of the bill amends election law § 14-100 to add 3 new definitions for "clearly identified candidate," "general public audience" and "labor, organization."

Section 2 of the bill amends election law § 14-106 to expand the types of political communications that must be reported to and filed with the board of elections by candidates, political parties and political committees and to prohibit the false identification of the source of such political communications.

Section 3 of the bill adds a new section 14-107 to the election law to:

A) define independent expenditures;

B) require that political communications paid for by an independent expenditure expressly advocating for the election or defeat of a clearly identified candidate or the success or defeat of a ballot proposal and costing more than $1000 must identify the source of the communication and, with respect to communications regarding a candidate, must state that the communication is not authorized by the candidate or the candidate's political committee or its agents;

C) require that independent expenditures expressly advocating for the election or defeat of a clearly identified candidate or the success or defeat of a ballot proposal and costing more than $1000 must be reported to the state board of elections, along with various related information and copies of the communication, pursuant to the same schedule for reporting candidate, political parties and political committee expenditures;

D) require that any independent expenditure made close to an election be reported within 24 hours;

Section 4 of the bill provides for a penalty for falsely identifying the source of political communications from a candidate, party or political committee and, for independent expenditures, for failing to identify the source of an independent expenditure. Such penalty would be a civil tine equal to $1000 or the cost of the communication, whichever is greater.

A failure to file the statements required for an independent expenditure would subject the person or entity to a civil fine of $500 as provided in current law.

Section 5 of the bill creates a Supreme Court enforcement proceeding. regarding the new requirements.

Section 6 of the bill is the effective date.

Legislative history

S.8081 of 2009 06/04/10 REFERRED TO ELECTIONS 06/16/10 COMMITTEE DISCHARGED AND COMMITTED TO RULES

Justification

The United States Supreme Court recently held that limits on corporations' independent expenditures in a political campaign are unconstitutional ( SEE CITIZENS UNITED V. FEDERAL ELECTIONS COMMISSION, 130 S.Ct.876). However, the court upheld disclosure and reporting requirements for these expenditures. This bill would, for the first time, enact identification and filing requirements for independent expenditures for political communications to provide voters crucial information during a political campaign. The prohibition on falsely identifying the source of political communications from candidates, parties and political committees will also benefit voters by preventing misleading communications during a political campaign.

Fiscal implications

The State Board of Elections would incur additional costs related to the processing of additional filings from those making independent expenditures for political communications, for the enforcement of new requirements and for the recovery of penalties for violations.

Effective date

This act shall take effect immediately.