Relates to the personal use of campaign funds

4 Co-sponsors

• Joseph P. Addabbo Jr.
• Bill Perkins
• José M. Serrano
• Daniel L. Squadron

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 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

S.7184 of 2014 (Gipson): Died in Elections

Fiscal implications

None to the state.

Effective date

This act shall take effect immediately.