Enacts the "integrity in elections act of 2016" to restrict the amounts and sources of campaign contributions; repealer

Summary of provisions

Section 1 provides a short title, the "Integrity in Elections Act of 2016". Section 2 provides for the legislative intent.

Section 3 amends section 14-100 of the Election Law to refer to "board," "state board" or "state board of elections" as the "campaign finance board."

Section 4 amends section 14-102 of the Election Law to provide a technical cleanup.

Section 5 amends section 14-107 of the Election Law to define an electioneering communication and to increase reporting requirements related to independent expenditures.

Section 6 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 7 repeals subdivision 6 of section 14-114 of the Election law related to contribution limits.

Section 8 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 amends subdivision two of section 14-116 of the Election Law to prohibit a candidate or political committee from accepting a loan unless expressly permitted, and prohibits corporations, including limited liability companies, from making political contributions to candidates.

Section 10 repeals subdivision three of section 14-124 of the Election Law in order to apply contribution and receipt limits to party housekeeping accounts.

Section 11 adds a new section 14-125 to the Election Law to establish the New York State Business Contract Database.

Section 12 renames Article 14 of the Election Law as "Campaign Finance".

Section 13 designates a new "Title 1" within Article 14 of the Election Law and its new title heading "Campaign Receipts and Expenditures".

Section 14 establishes a new "Title 2" within Article 14 of the Election Law, adding new sections 14-200 through 14-228, collectively known as the "Matching Financing" program:

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:

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;

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;

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;

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;

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

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:

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

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;

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

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

An amount of $175,000 for an at-large delegate to a constitutional convention in a primary and in a general election; and 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, the Minority Leader of the Assembly, attorney general, and state comptroller. 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 Matching Financing Program;

Section 14-220 sets forth the wrongful acts that could result in the Campaign Finance Board imposing civil fines in the amount of $5,000 or $10,000.

Section 14-222 sets forth the criminal penalties, misdemeanors and a class E felony, that if proven, could lead to fines and imprisonment;

Section 14-224 requires the Campaign Finance Board to submit a report every two years, beginning February 1, 2019, to the Governor and to the legislative leaders. The report must analyze the implementation of the matching financing program and provide recommendations for any modification to the program;

Section 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 15 provides that any question or issue relating to eligibility or the payment of matching funds may be contested in a proceeding instituted in the State Supreme Court in Albany County.

Section 16 adds a new section 359-gg to the General Business Law 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 17 amends the State Finance Law to create a new section 99-x establishing the New York State Campaign Finance Fund, which would be in the joint custody of the state comptroller and commissioner of taxation and finance.

Section 18 adds a new section 630-e 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 19 amends section 95 of the State Finance Law to authorize the 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 20 provides for severability.

Section 21 provides that this Act shall take effect January 1, 2017, provided that all candidates for election in this Act will be eligible to participate in the optional campaign finance system beginning with the 2018 general election.

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.

This bill would also cap campaign contributions to $2,600 for all state and local candidates thereby removing the influence that large campaign donors may have in a candidate's campaign or on an elected official. 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.

Legislative history

2013: S4897 - referred to Elections Committee 2014: S4897 - referred to Elections Committee

Fiscal impact

Annualized costs estimated at $65 million comprised of the following:

$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.

Effective date

This Act shall take effect January 1, 2017, provided that all candidates for election in this Act will be eligible to participate in the optional campaign finance system beginning with the 2018 general election.