Requires additional disclosures from lobbyists

Requires lobbyists, persons who own more than 10% of a lobbying business, persons who hold senior management positions in lobbying businesses or immediate family members to any of those persons must file a report specifying political contributions to any state office candidates with the state board of elections. Elected officials would be required to report any behested payments they have solicited over $5,000 per calendar year. These records shall be a matter of public record.

Contribution limits for any lobbyists or persons intimately involved with lobbying firms would be set for state office ($500 for statewide office, $350 for senate and $250 for assembly). These persons would also be prohibited from donating more than $5,000 to a political committee which works to aid candidates. Lobbyists would be prohibited from transmitting contributions on behalf of another individual whose contributions would be limited by this law. Lobbyists would be prohibited from serving as an officer of any political committee, conducting personal business (over $2,000) with any public official, deliver money earmarked for a particular candidate or knowingly take steps to circumvent this law. No candidates may accept any money which would be in violation of this law.

Any person or business with a contract of $50,000 or more with the state, any person who owns 100 or more of such a business, any senior manager of such a business, or any family member of one of those persons must report any campaign donations within seven days (if within 36 days of the election) or within 31 days (all other times). These reports, made to the state board of elections, shall be available for public inspection.

Contribution limits to political campaigns would be set for persons or businesses with certain contracts and it would be unlawful to make contributions to political committees in excess of $4,000 per election. Such persons and businesses would also be prohibited from soliciting or transmitting contributions on behalf of others participate in fundraising activities for certain candidates, serving as an officer for a political committee, conducting personal business transactions over $2,000 with any public official, delivering any contribution for a specific candidate and attempting to circumvent this law.

The state would be barred from entering into contracts with any person or business that violates the provisions of this bill. All contracts must contain a provision describing these requirements and before entering into such a contract, the state shall receive a sworn statement from the bidder that they have not made a contribution in violation of this law.

Lobbyists, persons who have received large contracts from the state, persons who own more than 10 percent of a lobbying business, a senior manager of a lobbying business, or an immediate family member of any of those people will be prohibited from appointment to a state public board or commission which has the authority to award or audit any public contract.

Amends the use of campaign funds for personal use by specifically identifying what expenditures of campaign funds are permitted. These include but are not limited to, promoting the nomination or election of a candidate, expenses related to holding public office including the production and circulation of flyers or other written materials, sponsorship of local meetings, tickets or donations to local charities, non-profit or political events, operational legislative expenses, get-well-gifts, flowers or items of nominal value for constituents. Travel related to official duties of office and the purchase of office equipment or leasing is permitted.

This bill prohibits the use of campaign funds for personal use for the benefit of defraying personal living expenses of the candidate or immediate family members. No funds can be used to cover expenses unrelated to the candidate's campaign or duties as an office holder or increase the candidates' gross income. No household items, utilities repairs or improvements of the candidate's personal residence. No salary or fee expenses that exceed fair and reasonable market value, tuition payments, dues, fees, or expenses for private clubs or non-political organizations, automobile purchases or leases, or cell phone equipment not used solely for campaign purposes.

No funds shall be used for tickets to sporting events or to pay attorney's fees associated with defending against any civil or criminal prosecution for alleged violations of law that have occurred while holding office or as a candidate.

An authorized candidate must dispose of all funds and close the account within four years from the end of the term of service or the date of their last election. The funds can be returned to the contributors, donated to charitable organizations, state universities, and the state's general fund or transferred to a political party committee registered with the board of elections. Upon the death of a candidate all campaign contributions shall be disposed of within twelve months.

Justification

Recent lobbying scandals at the national level have highlighted the potential for inappropriate and sometimes illegal influence by lobbyists over government officials. In the past, two state legislators and one top-ranking Pataki Administration official have been sent to prison and another lawmaker resigned in disgrace for violating the public trust. In order to restore that trust, it is essential that New York adopt strict standards of behavior for its public officials, and enforce those standards in a vigilant and consistent manner.

New York, in comparison with other states, has not been a leader in terms of adopting strong ethics standards for our public officials. This legislation would increase the amount of information shared with the public regarding relationships between lobbyists and legislators and bring much needed sunlight into our governmental process.

The first provision of this legislation addresses difficulties in determining the extent of lobbyists' contributions to political campaigns. In the wake of the Abramoff scandal at the national level, it is clear that such contributions are often given by lobbyists with the goal of inappropriately or illegally influencing the governmental decision making process. This legislation would reveal any such relationship to the public.

The next two provisions address issues of business employment relationships between lobbyists and public officials or their families. Because the New York state legislature is officially a part time job, New York State legislators are often employed in positions with law firms that do business with lobbying firms. These relationships should be disclosed to the public. Similarly, the public has a right to know if close relatives of legislators are employed as lobbyists, to citizens who are in a position to evaluate whether such relationships result in inappropriate influence over a government decision making.

This bill also addresses a number of concerns with how campaign funds are raised and 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 officer 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 fluid 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.

In addition, the bill sets limits on how long campaign committees can be maintained by former candidates. Reports of committees continuing years after campaigns were ended are all too common. By setting time limits and also specifying how excess funds can be disbursed, this abuse will be eliminated. The bill also requires campaign committees to identify contributions from lobbyists registered with the Temporary State Lobbying Commission. This is in response to concerns that past changes in the interpretation of what constitutes an illegal gift by the commission will result in the use of campaign funds from lobbyists in place of the prohibited gifts from lobbyists. coupled with the more stringent standard for the personal use of campaign funds, the detailing of lobbyists contributions will make it all the more difficult to justify such expenditures.

Finally the bill prohibits the soliciting or receiving of contributions for a campaign for state or federal office while in a senior policy position in the executive branch. This is in response to the past disclosure that the head of an executive agency who acknowledged that he was not a candidate for any office, continued to raise and spend campaign funds to enhance his life style. To engage in such actions while overseeing an industry which is actively and at great expense lobbies state government, at the very least gives the impression that favorable decisions were being sold and, true or not, feeds public cynicism. The legislation, again in conjunction with the new, more clearly delineated limits on the use of campaign funds, prohibits such misuse of campaign funds.

Fiscal implications

None.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law, except that various sections of the bill take effect at various different dates, with provisions.