Enacts the "integrity in elections act of 2013" to restrict the amounts and sources of campaign contributions

In addition, this bill requires the reporting to the campaign finance board all independent expenditures; caps individual campaign contributions to $2,600; bans campaign contributions from corporations; creates a New York State Business Contract Database; opens up cross-party candidate endorsements by repealing the Wilson-Pakula Law; and bans transfers between political party committees and candidate committees.

Summary of provisions

Section 1 provides a short title, the "Integrity in Elections Act of 2013".

Section 2 provides for the legislative intent.

Section 3 repeals section of section 6-120 of the Election Law.

Section 4 amends section 14-100 of the Election Law limiting the transfer of funds or anything of value to political committees of a candidate in a campaign. Section 4 also provides new definitions of a clearly identified candidate, a general public audience and of a labor organization.

Section 5 amends section 14-102 to provide a technical cleanup.

Section 6 adds a new section 14-107 to the Election Law to provide for the reporting of independent expenditures made in support or opposition of a candidate or of a ballot proposal.

Section 7 amends section 14-114 of the Election Law to provide that any contribution to any state or local candidate in both a primary and a general election would be capped at $2,600.

Section 8 repeals subdivision 6 of section 14-114 of the election law.

Section 9 amends section 14-114 of the Election Law to reduce the contribution to a party or constituted committee from $62,500 to $10,000.

Section 9-A repeals paragraph b of subdivision ten of section 14-114 of the election law.

Section 10 amends subdivision two of section 14-116 to prohibit certain organizations from contributing to any candidate's campaign in any election cycle.

Section 11 repeals subdivision three of section 14-124 of the election law.

Section 12 adds a new section to the election law to create the New York State Business Contract Database.

Section 13 renames Article 14 of the Election Law as "Campaign Finance".

Section 14 designates a new "Title 1" within Article 14 of the Election Law and its new title heading "Campaign Receipts and Expenditures".

Section 15 establishes a new "Title 2" within Article 14 of the Election Law, adding new sections 14-200 through 14-228, collectively known as the " Voluntary Campaign Finance" pro gram:

* Section 14-200 defines those terms applicable to Title 2 and limits their application to candidates for the nomination for election or for the election to the offices of Governor, Lieutenant Governor, State Comptroller, Attorney General, member of the Assembly, State Senate and delegate to a constitutional convention;

* Section 14-202 requires every participating candidate to have only one authorized committee to receive matching funds and to notify the state board of elections of such authorized committee and any other reports as the State Board of Election currently requires;

* Section 14-204 limits the amount a candidate can receive from any one contributor for both a primary and a general election to $2,600 per election cycle;

* Section 14-206 requires all participating candidates to maintain records of receipts and expenditures for any general election;

* Section 14-208 lists the requirements necessary to be eligible for the optional campaign finance program including:

o The receipt of at least $650,000 in matchable contributions from at least 6,500 contributors in amounts of no more than $250 for the Office of Governor in. a primary or general election;

o The receipt of at least $200,000 in matchable contributions from at least 2,000 contributors in amounts of no more than $250 for the Office of Lieutenant Governor in a primary and for the Offices of

State Comptroller and Attorney General in a primary or a general election;

o The receipt of at least $20,000 in matchable contributions of no more than $250 for the State Senate in a primary, special or general election including at least $10,000 from at least 100 contributors residing in the Senate district for which the seat is to be filled;

o The receipt of at least $10,000 in matchable contributions of no more than $250 for the State Assembly in a primary, special or general election including at least $5,000 from at least 50 contributors who reside in the Assembly district for which the seat is to be filled;

o The receipt of not less than $20,000 in matchable contributions of no more than $250 for the election of an at-large delegate to a constitutional convention; and

o The receipt of not less than $5000 in matchable contributions of no more than $250 from at least 50 contributors residing in the district for which a district delegate to a constitutional convention is to be elected.

* Section 14-212 authorizes the payment of matching funds to an eligible participating candidate in an amount of six dollars for every dollar in a matchable contribution raised by a participating candidate. Matching funds are only available for the first $250 contributed by each donor who is a natural person residing in the State. Total matching funds are limited to:

o An amount of $5.5 million for a primary and $8.25 million for a general election for the Office of Governor;

o An amount of $2.75 million. for a primary for the Office of Lieutenant Governor, State Comptroller and State Attorney General and $4.125 million for the State Comptroller and Attorney General in a general election;

o An amount of $825,000 for the State Senate for a primary and for a general election;

o An amount of $412,500 for the Assembly for a primary and for a general election;

o An amount of $175,000 for an at-large delegate to a constitutional convention in a primary and in a general election; and

o An amount of $50,000 for a district delegate to a constitutional convention in a primary and in a general election.

* Section 14-214 defines the uses for which matching funds may be expended;

* Section 14-216 establishes a seven member campaign finance board within the State Board of Elections. The chairman of the Board shall be appointed by the Governor with the advice and consent of the State Senate. Other members shall be appointed by the Temporary President of the Senate, the Speaker of the Assembly, the Minority Leader of the

Senate and the Minority Leader of the Assembly. Each member shall serve for a term of six years after the initial staggered appointments have expired;

* Section 14-218 authorized the Campaign Finance Board to audit all matters related to the Voluntary Finance Program;

* Section 14-220 sets forth the wrongful acts that could result in the Campaign Finance Board imposing civil fines;

* Section 14-222 sets forth the wrongful acts, misdemeanors and felonies, that if proven, could lead to fines and imprisonment;

* 14-224 requires the Campaign Finance Board to submit a report every two years to the Governor and to the legislative leaders which analyzes the implementation of the program and provides recommendation for any modification to the program;

* 14-226 requires participating candidates to participate in at least one debate before a primary and one debate before a general election unless the candidate is unopposed; and

* Section 14-228 provides guidelines for the distribution of funds from the Campaign Finance Fund created pursuant to this Chapter.

Section 16 provides that any question or issue relating to eligibility or the payment of matching funds may be contested in a proceeding instituted in the Supreme Court in Albany County.

Section 17 amends the General Business Law to add a new section 359-gg to assess, in addition to any penalty authorized by section 359-g of the General Business Law or any damages or other compensation recoverable, an additional surcharge in the amount of ten percent of the total penalty, damages or settlement. Such surcharge would be deposited into the Campaign Finance Fund.

Section 18 amends the State Finance Law to create a new section 99-v establishing the Campaign Finance Fund.

Section 19 adds a new section 630-d to the Tax Law to create a campaign finance fund tax check-off on personal income tax returns, the proceeds of which would also be deposited into the Campaign Finance Fund.

Section 20 authorizes transfer of monies from the Abandoned Property Fund to the Campaign Finance Fund upon voucher or warrant of the Chairman of the Campaign Finance Board.

Section 21 provides for severability.

Section 22 provides effective dates for implementation of this Chapter.

Justification

This bill provides for a voluntary campaign finance program by which small contributions are matched on a six to one basis. This voluntary program would expand the pool of potential candidates for office by allowing those with limited means to be able

to finance a campaign, either for Governor, Lieutenant Governor, State Comptroller, Attorney General, State Senator, a member of the Assembly, or a delegate to a constitutional convention.

In addition, this bill would cap campaign contributions to $2,600 for all state and local candidates thereby removing the influence large campaign donors may have in a candidate's campaign or on an elected official. Campaign contributions from corporations are also prohibited.

This Act also removes the Wilson-Pakula Law, while continuing to allow cross party endorsements. Those seeking cross party endorsements to acquire signatures or win a primary election. In addition this act bans unlimited transfers from party committees to candidate committees, by treating the party as just another contributor, subject to the $2,600 contribution limit.

Finally, acknowledging the growth of expenditures independent of a particular candidate either for that candidate or against that candidate, this bill requires the reporting of such independent expenditures and the entity financing such expenditures providing full transparency to the public of all campaign expenditures.

Fiscal impact

Annualized costs estimated at $65 million.

* $40 million (annualized) in matching funds. This is based on Campaign Finance Institute analyses of similar legislation.

* $25 million in annual administrative costs for the new Campaign Finance Board and add to the staff of the State Board of Elections as necessary and appropriate. This is based on estimated costs of $11 million annually for the equivalent New York City agency, and over double the number of covered offices statewide as city-wide.