STATE OF NEW YORK ________________________________________________________________________ 8546 2017-2018 Regular Sessions IN ASSEMBLY July 10, 2017 ___________ Introduced by M. of A. KAVANAGH, GALEF -- read once and referred to the Committee on Governmental Operations AN ACT to amend the legislative law and the election law, in relation to disclosures required for lobbyists, and to amend the election law and the public officers law, in relation to campaign funds for personal use The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "Lobbyist 2 Disclosure Campaign Fund Act". 3 § 2. Section 1-c of the legislative law is amended by adding a new 4 subdivision (x) to read as follows: 5 (x) The term "family member" shall mean any of the following, includ- 6 ing parents, stepparents, spouse, domestic partners, grandparents, 7 brothers, sisters, uncles, and aunts, whether of the whole blood or half 8 blood or by or through legal sanction. 9 § 3. Paragraph 5 of subdivision (b) of section 1-h of the legislative 10 law is amended by adding two new subparagraphs (vi) and (vii) to read as 11 follows: 12 (vi) the campaign contributions made, in any form, to any campaign or 13 political committee in New York state by the client by whom or on whose 14 behalf the lobbyist is retained, employed or designated, by the lobby- 15 ist, and by any employees of the lobbyist. 16 (vii) the amount of compensation paid and the names of any family 17 members of a public official to whom a lobbyist and the client by whom 18 or on whose behalf the lobbyist is retained, employed or designated has 19 paid compensation of more than five hundred dollars in the preceding 20 calendar year for personal employment or professional services. 21 § 4. Subdivision (b) of section 1-h of the legislative law is amended 22 by adding a new paragraph 6 to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01910-02-7

A. 8546 2 1 (6) the name, address and telephone number of any public official with 2 whom the lobbyist has any business relationship. 3 § 5. Paragraph 5 of subdivision (b) of section 1-j of the legislative 4 law is amended by adding two new subparagraphs (vi) and (vii) to read as 5 follows: 6 (vi) the campaign contributions made, in any form, to any campaign or 7 political committee in New York state by the client by whom or on whose 8 behalf the lobbyist is retained, employed or designated, by the lobby- 9 ist, and by any employees of the lobbyist. 10 (vii) the amount of compensation paid and the names of any family 11 members of a public official to whom a lobbyist and the client by whom 12 or on whose behalf the lobbyist is retained, employed or designated has 13 paid compensation of more than five hundred dollars in the preceding 14 calendar year for personal employment or professional services. 15 § 6. Subdivision (b) of section 1-j of the legislative law is amended 16 by adding a new paragraph 7 to read as follows: 17 (7) the name, address and telephone number of any public official with 18 whom the lobbyist has any business relationship. 19 § 7. The election law is amended by adding three new sections 14-134, 20 14-136 and 14-138 to read as follows: 21 § 14-134. Lobbyist reporting and contribution limits. 1. Definitions. 22 The following definitions shall apply to this section: 23 a. "agent" means any person acting at the direction of or on behalf of 24 an individual or business entity; 25 b. "business entity" means a business corporation, professional 26 services corporation, limited liability company, partnership, limited 27 partnership, business trust, association or any other legal commercial 28 entity organized under the laws of this state or any other state or 29 foreign jurisdiction, including any subsidiary directly or indirectly 30 controlled by the business entity, and any political organization, 31 including but not limited to any political organization organized under 32 section 527 of the Internal Revenue Code, that is directly or indirectly 33 controlled by the business entity; 34 c. "immediate family" means any spouse or child of an individual or 35 any financially dependent relatives who reside in the individual's 36 household; 37 d. "housekeeping account" means an account maintained by a party 38 committee or constituted committee from which expenditures are made to 39 maintain a permanent headquarters and staff and carry on ordinary party 40 activities which are not for the express purpose of promoting the candi- 41 dacy of specific candidates; 42 e. "candidate for state office" means a candidate for the following 43 state offices: governor, lieutenant governor, attorney general, comp- 44 troller, senator, and member of the assembly; 45 f. "behested payments" means contributions or payments solicited by 46 state elected officials to be used for legislative, governmental or 47 charitable purposes, but not campaign purposes; and 48 g. "personal business transaction" means transactions for services 49 offered by the elected official in his or her capacity as a private 50 citizen to any member of the public. 51 2. The following persons and business entities who make a contribution 52 to a candidate for state office, a political committee working directly 53 or indirectly to aid or participate in such candidate's nomination or 54 election, a political committee established or controlled by such candi- 55 date, or a state or local committee of a political party, including a 56 housekeeping account, shall file reports as required by subdivision

A. 8546 3 1 three of this section with the state board of elections within seven 2 calendar days after the date of a contribution: 3 a. a lobbyist registered under section one-e of the legislative law, 4 including any person, organization, group of persons or business entity 5 that is so registered; 6 b. any person who owns more than ten percent of a business entity 7 described in paragraph a of this subdivision; 8 c. any person employed by an organization, group, or business entity 9 described in paragraph a of this subdivision who holds a senior manage- 10 ment position as defined by the commission on governmental ethics; 11 d. the immediate family member of a person who is described in para- 12 graph a, b or c of this subdivision; or 13 e. any political committee established or controlled by a person, 14 organization, group of persons or business entity described in para- 15 graphs a, b, c or d of this subdivision. 16 3. The board of elections shall prescribe forms and procedures for the 17 reporting required in subdivision two of this section which, at a mini- 18 mum, shall require electronic filing of the following information: 19 a. the name, address, employer and name of spouse of the person making 20 the contribution and the name of the spouse's employer; 21 b. the name of the candidate, political committee, or state or local 22 committee of a political party, including a housekeeping account, 23 receiving the contribution; 24 c. the amount and date of the contribution; and 25 d. if an organization, group of persons, or business entity is making 26 the contribution: 27 (i) the names and business addresses of all persons who own more than 28 ten percent of the organization, group or entity; or 29 (ii) the names and business addresses of all persons employed by the 30 organization, group, or business entity who hold a senior management 31 position as defined by the commission on governmental ethics. 32 4. Elected officials must report any behested payments they have 33 solicited if they total five thousand dollars or more per calendar year 34 from a single source within thirty days of the date the behested payment 35 is made on forms proscribed by the commission on governmental ethics. 36 5. The board of elections shall maintain completed forms and reports 37 described in subdivision two of this section for public inspection both 38 at the board of elections office and through the board of elections 39 electronic filing system for campaign finance disclosure (EFS). 40 6. It shall be unlawful for any person, organization, group of persons 41 or business entity described in paragraphs a, b, c, d and e of subdivi- 42 sion two of this section to: 43 a. make contributions to a candidate for state office, a political 44 committee working directly or indirectly to aid or participate in such 45 candidate's nomination or election, or a political committee established 46 or controlled by such candidate that exceed the following amounts per 47 election for the following offices: 48 (i) governor: five hundred dollars; 49 (ii) lieutenant governor: five hundred dollars; 50 (iii) attorney general: five hundred dollars; 51 (iv) comptroller: five hundred dollars; 52 (v) senator: three hundred fifty dollars; and 53 (vi) member of assembly: two hundred fifty dollars; 54 b. make contributions to: 55 (i) political committees working directly or indirectly to aid or 56 participate in the nomination or election of a candidate for the offices

A. 8546 4 1 described in subparagraphs (i), (ii), (iii), (iv), (v) and (vi) of para- 2 graph a of this subdivision, or other political committees established 3 or controlled by a candidate for the offices described in subparagraphs 4 (i), (ii), (iii), (iv), (v) and (vi) of paragraph a of this subdivision, 5 that in the aggregate exceed four thousand dollars per election; or 6 (ii) state or local committees of a political party, or any house- 7 keeping account, in an amount greater than one thousand dollars per 8 election, and in an aggregate to all state or local committees of poli- 9 tical parties in an aggregate that exceeds two thousand dollars per 10 election; 11 c. transmit a contribution on behalf of another to, or solicit a 12 contribution on behalf of: 13 (i) a candidate for any of the offices for which contributions are 14 limited under paragraph a of this subdivision; 15 (ii) any political committee working directly or indirectly to aid or 16 participate in the nomination or election of a candidate for office for 17 which their contributions are limited in paragraph a of this subdivi- 18 sion, or any other political committee established or controlled by a 19 candidate for the offices for which their contributions are limited 20 under paragraph a of this subdivision; 21 (iii) a state or local committee of a political party, including a 22 housekeeping account; 23 d. participate in any fund-raising activities for: 24 (i) a candidate for any of the offices for which contributions are 25 limited under paragraph a of this subdivision; 26 (ii) any political committee working directly or indirectly to aid or 27 participate in the nomination or election of a candidate for office for 28 which their contributions are limited in paragraph a of this subdivi- 29 sion, or any other political committee established or controlled by a 30 candidate for the offices for which their contributions are limited 31 under paragraph a of this subdivision; 32 (iii) a state or local committee of a political party, including a 33 housekeeping account; 34 e. serve as chairperson, treasurer, or any other officer of: 35 (i) any political committee working directly or indirectly to aid or 36 participate in the nomination or election of a candidate for office for 37 which their contributions are limited under paragraph a of this subdivi- 38 sion; or 39 (ii) any other political committee established or controlled by a 40 candidate for which their contributions are limited under paragraph a of 41 this subdivision; 42 f. conduct personal business transactions in an amount over two thou- 43 sand dollars in any calendar year with a public official holding the 44 offices for which their contributions are limited under paragraph a of 45 this subdivision; 46 g. deliver to any conduit or intermediary any contribution earmarked 47 for a particular candidate for the offices for which their contributions 48 are limited under paragraph a of this subdivision, or any committee 49 working directly or indirectly to aid or participate in such candidate's 50 nomination or election, or any other political committee established or 51 controlled by such candidate; or 52 h. knowingly take other steps to circumvent the restrictions in this 53 subsection. 54 7. No candidate for state office, committee working directly or indi- 55 rectly to aid or participate in such candidate's nomination or election, 56 or any other political committee established or controlled by such

A. 8546 5 1 candidate shall accept contributions from any person, organization, 2 group of persons, or business entity described in paragraph a, b, c, d 3 or e of subdivision two of this section that exceed the following 4 amounts per election for the following offices: 5 a. governor: five hundred dollars; 6 b. lieutenant governor: five hundred dollars; 7 c. comptroller: five hundred dollars; 8 d. attorney general: five hundred dollars; 9 e. senator: three hundred fifty dollars; and 10 f. member of assembly: two hundred fifty dollars. 11 8. No state or local political party committees, including any house- 12 keeping account, shall accept contributions in an amount greater than 13 one thousand dollars per election from any person, organization, group 14 of persons or business entity described in paragraph a, b, c, d or e of 15 subdivision two of this section. 16 9. No public official holding any of the offices listed in paragraph a 17 of subdivision six of this section shall conduct personal business tran- 18 sactions in an amount over two thousand dollars in any calendar year 19 with any person, organization, group of persons or business entity 20 described in paragraph a, b, c, d or e of subdivision two of this 21 section. 22 10. This section shall not prohibit any person from informing any 23 other person of a position taken by a public official or a candidate for 24 public office. 25 11. The provisions of subdivisions two and six of this section shall 26 not apply to the campaign of any person described in paragraph a, b, c 27 or d of subdivision two of this section who is a candidate for any of 28 those offices listed in paragraph a of subdivision six of this section. 29 § 14-136. Government contractor reporting and contribution limits. 1. 30 Definitions. The following definitions shall apply to this section: 31 a. "agent" means any person acting at the direction of or on behalf of 32 an individual or business entity; 33 b. "business entity" means a business corporation, professional 34 services corporation, limited liability company, partnership, limited 35 partnership, business trust, association or any other legal commercial 36 entity organized under the laws of this state or any other state or 37 foreign jurisdiction, including any subsidiary directly or indirectly 38 controlled by the business entity, and any political organization, 39 including but not limited to any political organization organized under 40 section 527 of the Internal Revenue Code, that is directly or indirectly 41 controlled by the business entity; 42 c. "immediate family" means any spouse or child of an individual or 43 any financially dependent relatives who reside in the individual's 44 household; 45 d. "housekeeping account" means an account maintained by a party 46 committee or constituted committee from which expenditures are made to 47 maintain a permanent headquarters and staff and carry on ordinary party 48 activities which are not for the express purpose of promoting the candi- 49 dacy of specific candidates; 50 e. "candidate for state office" means a candidate for the following 51 state offices: governor, lieutenant governor, attorney general, comp- 52 troller, senator, and member of the assembly; and 53 f. "personal business transaction" means transactions for services 54 offered by the elected official in his or her capacity as a private 55 citizen to any member of the public.

A. 8546 6 1 2. The following persons and business entities who make a contribution 2 to a candidate for state office, a political committee working directly 3 or indirectly to aid or participate in such candidate's nomination or 4 election, a political committee established or controlled by such candi- 5 date, or a state or local committee of a political party, including a 6 housekeeping account, shall file reports as required by subdivision 7 three of this section with the board of elections within seven calendar 8 days after the date of a contribution made within thirty-six days of an 9 election, or, for contributions made at any other time, within thirty- 10 six days of the date of the contribution or the date of any applicable 11 contract, whichever occurs later: 12 a. any person, organization, group of persons, or business entity that 13 has received, in a calendar year fifty thousand dollars or more through 14 contracts from the state or any state-appointed entity with contracting 15 power; 16 b. any person who owns more than ten percent of a business entity that 17 is described in paragraph a of this subdivision; 18 c. any person employed by an organization, group, or business entity 19 described in paragraph a of this subdivision who holds a senior manage- 20 ment position as defined by the state ethics commission; 21 d. the immediate family member of a person who is described in para- 22 graph a, b or c of this subdivision; or 23 e. any political committee established or controlled by a person, 24 organization, group of persons or business entity described in paragraph 25 a, b, c and d of this subdivision. 26 3. The board of elections shall prescribe forms and procedures for the 27 reporting required in subdivision two of this section which, at a mini- 28 mum, shall require the electronic filing of the following information: 29 a. the name, address, employer and the name of spouse of the person 30 making the contribution and the name of the spouse's employer; 31 b. the name of the candidate, political committee, or state or local 32 committee of a political party, including a housekeeping account, 33 receiving the contribution; 34 c. the amount of the contract with the state or other entity defined 35 in paragraph a of subdivision two of this section, and the dates and 36 other information identifying each contract for services or goods; and 37 d. if an organization, group of persons, or business entity is making 38 the contribution: 39 (i) the names and business addresses of all persons who own more than 40 ten percent of the organization, group or entity; or 41 (ii) the names and business addresses of all persons employed by the 42 organization, group, or business entity who hold a senior management 43 position as defined by the commission on governmental ethics. 44 4. The board of elections shall maintain completed forms and reports 45 described in subdivision two of this section for public inspection both 46 at the board of elections office and through the board of elections 47 electronic filing system for campaign finance disclosure (EFS). 48 5. From twelve months after a bid or proposal to the relevant agency 49 or contracting authority for a contract described in subdivision two of 50 this section and either twelve months after completion of the applicable 51 contract, or upon completion of the applicable elected official's term 52 in office, whichever is longer, it shall be unlawful for any person, 53 organization, group of persons or business entity described in para- 54 graphs a, b, c and d or e of subdivision two of this section to: 55 a. make contributions to a candidate for state office, any political 56 committee working directly or indirectly to aid or participate in such

A. 8546 7 1 candidate's nomination or election, or any other political committee 2 established or controlled by such candidate that exceed the following 3 amounts per election for the following offices: 4 (i) governor: five hundred dollars; 5 (ii) lieutenant governor: five hundred dollars; 6 (iii) comptroller: five hundred dollars; 7 (iv) attorney general: five hundred dollars; 8 (v) senator: three hundred fifty dollars; or 9 (vi) member of assembly: two hundred fifty dollars; 10 b. make contributions to: 11 (i) political committees working directly or indirectly to aid or 12 participate in the nomination or election of a candidate for the offices 13 described in subparagraphs (i), (ii), (iii), (iv), (v) and (vi) of para- 14 graph a of this subdivision, or other political committees established 15 or controlled by a candidate for the offices described in subparagraphs 16 (i), (ii), (iii), (iv), (v) and (vi) of paragraph a of this subdivision 17 that in the aggregate exceed four thousand dollars per election; or 18 (ii) state or local committees of a political party, or any house- 19 keeping account, in an amount greater than one thousand dollars per 20 election, and in an aggregate to all state or local committees of poli- 21 tical parties in an aggregate that exceeds two thousand dollars per 22 election; 23 c. solicit a contribution on behalf of, or transmit a contribution on 24 behalf of another to: 25 (i) a candidate for any of the offices for which contributions are 26 limited under paragraph a of this subdivision; 27 (ii) any political committee working directly or indirectly to aid or 28 participate in the nomination or election of a candidate for office for 29 which their contributions are limited in paragraph a of this subdivi- 30 sion, or any other political committee established or controlled by a 31 candidate for the offices for which their contributions are limited 32 under paragraph a of this subdivision; 33 (iii) a state or local committee of a political party including a 34 housekeeping account; 35 d. participate in any fund-raising activities for: 36 (i) a candidate for any of the offices for which contributions are 37 limited under paragraph a of this subdivision; 38 (ii) any political committee working directly or indirectly to aid or 39 participate in the nomination or election of a candidate for office for 40 which their contributions are limited in paragraph a of this subdivi- 41 sion, or any other political committee established or controlled by a 42 candidate for the offices for which their contributions are limited 43 under paragraph a of this subdivision; 44 (iii) a state or local committee of a political party, including a 45 housekeeping account; 46 e. serve as chairperson, treasurer, or any other officer of: 47 (i) any political committee working directly or indirectly to aid or 48 participate in the nomination or election of a candidate for office for 49 which their contributions are limited under paragraph a of this subdivi- 50 sion; or 51 (ii) any other political committee established or controlled by a 52 candidate for which their contributions are limited under paragraph a of 53 this subdivision; 54 f. conduct personal business transactions in an amount over two thou- 55 sand dollars in any calendar year with a public official holding the

A. 8546 8 1 offices for which their contributions are limited under paragraph a of 2 this subdivision; 3 g. deliver to any conduit or intermediary any contribution earmarked 4 for a particular candidate for the offices for which their contributions 5 are limited under paragraph a of this subdivision, or any committee 6 working directly or indirectly to aid or participate in such candidate's 7 nomination or election, or any other political committee established or 8 controlled by such candidate; or 9 h. knowingly take any step to circumvent the restrictions in this 10 subdivision. 11 i. the provisions of this section shall not apply for a contractor 12 making a contribution, or any disclosure thereof required by this arti- 13 cle, in any calendar year in which such contractor receives funds 14 disbursed by the state or any instrumentality thereof pursuant to a 15 federal statute, rule or regulation that would render the state or such 16 instrumentality or contractor ineligible to receive such funds by virtue 17 of the operation of this section. 18 This subdivision shall not be applicable to contributions made by any 19 person, organization, group of persons or business entity at a time when 20 the person, organization, group of persons or business entity did not 21 meet the descriptions of paragraphs a, b, c, d and e of subdivision two 22 of this section. 23 6. The state or any state department, public entity or authority with 24 contract-making power shall not enter into an agreement or otherwise 25 contract to procure services or any material, supplies or equipment, or 26 to acquire, sell, or lease any land or building from any person, organ- 27 ization, group of persons or business entity described in paragraphs a, 28 b, c and d of subdivision two of this section who has made a contrib- 29 ution prohibited in subdivision five of this section. This subdivision 30 shall not be applicable to contributions made by any person, organiza- 31 tion, group of persons or business entity at a time when the person, 32 organization, group of persons or business entity did not meet the 33 descriptions of paragraph a, b, c, d or e of subdivision two of this 34 section. Nothing in this section shall impair the power of the state or 35 any instrumentality thereof to enter into a contract with any contractor 36 where federal funds would support the payment or performance of such 37 contract and a federal statute, rule or regulation would render the 38 state or such instrumentality or contractor ineligible to receive such 39 funds by virtue of the operation of this section. 40 7. Every contract and bid application and specifications promulgated 41 by the state or any state department, public entity or authority with 42 contract-making power shall contain a provision describing the require- 43 ments of section 14-116 of this article. 44 8. Before entering into any agreement or any other contract to procure 45 from any person, organization, group of persons or business entity 46 services or any material, supplies or equipment, or to acquire, sell, or 47 lease any land or building, the state or any state department, public 48 entity or authority with contract-making power shall receive a sworn 49 statement from the contractor, made under penalty of perjury, that the 50 bidder or offerer has not made a contribution in violation of this 51 section. 52 9. No candidate for state office shall accept campaign contributions 53 from a person, organization, group of persons or business entity 54 described in paragraph a, b, c, d or e of subdivision two of this 55 section in an amount exceeding those permitted in paragraph a of subdi- 56 vision five of this section for twelve months after completion of the

A. 8546 9 1 applicable contract, or the remainder of the candidate's term in office, 2 whichever is longer. This subdivision shall not be applicable to 3 contributions made by any person, organization, group of persons or 4 business entity at a time when the person, organization, group of 5 persons or business entity did not meet the descriptions of paragraph a, 6 b, c, d or e of subdivision two of this section. 7 10. No public official holding any of the offices listed in paragraph 8 a of subdivision five of this section shall conduct personal business 9 transactions in an amount over two thousand dollars in any calendar year 10 with any person, organization, group of persons or business entity 11 described in paragraphs a, b, c and d of subdivision two of this 12 section. 13 11. This section shall not prohibit any person from informing any 14 other person of a position taken by a public official or a candidate for 15 public office. 16 12. The provisions of subdivisions two and five of this section shall 17 not apply to the campaign of any person described in paragraph a, b, c 18 or d of subdivision two of this section who is a candidate for any of 19 those offices listed in paragraph a of subdivision five of this section. 20 § 14-138. Commissioning authorities and licensing authorities. The 21 following persons shall not be appointed to a state public board or 22 commission which has the authority to award or audit any public 23 contract: 24 1. a lobbyist registered under section one-e of the legislative law; 25 2. any person or business entity who, in the previous two years, has 26 received fifty thousand dollars or more through one or more contracts 27 from the state or any state-appointed entity with contracting power; 28 3. any person who owns more than ten percent of a business entity that 29 is described in subdivision two of this section; 30 4. any person employed by an organization, group, or business entity 31 described in subdivision two of this section who holds a senior manage- 32 ment position as defined by the commission on governmental ethics; or 33 5. an immediate family member of a person described in subdivision 34 one, two, three, or four of this section. 35 § 8. Section 14-130 of the election law, as amended by section 9 of 36 part CC of chapter 56 of the laws of 2015, is amended to read as 37 follows: 38 § 14-130. Campaign funds for personal use. 1. Contributions received 39 by a candidate or a political committee may only be expended for [~~any~~ 40 ~~lawful purpose. Such funds shall not be converted by any person to a~~ 41 ~~personal use which is unrelated to a political campaign or the holding~~ 42 ~~of a public office or party position~~] bona fide purposes directly 43 related to either: 44 a. promoting the nomination or election of a candidate; or 45 b. performing those duties of public office or party position which 46 are not paid for or eligible for reimbursement by the state or any poli- 47 tical subdivision or private party. 48 2. Permissible ordinary and necessary expenses relating to the holding 49 of public office or party position shall include: 50 a. production and circulation of flyers or other written materials 51 related to duties of officeholder; the placement of holiday greetings 52 and congratulatory ads and memorial notices in local newspapers, maga- 53 zines, journals or other publication; 54 b. sponsorship or hosting of community meetings; tickets or donations 55 to local charitable, non-profit or political events, organizations or

A. 8546 10 1 activities that promote the welfare of constituents or political 2 campaigns; 3 c. incidental expenditures for the operation of legislative offices, 4 including purchase of items such as memorial or get-well gifts, flowers 5 or similar items of nominal value for constituents or others; 6 d. membership in organizations related to official duties and costs of 7 attending informational meetings attended in connection with such 8 duties; and 9 e. travel related to duties of office, provided that the travel is not 10 undertaken for any purpose resulting in a personal or financial benefit 11 to the candidate or officeholder. If such expenses involve both personal 12 activity and campaign or official activities, the incremental expenses 13 associated with the personal activities are personal uses unless the 14 campaign is reimbursed for such sums from other than campaign funds 15 within thirty days of the expenditure. 16 Nothing in this section shall prohibit a candidate from purchasing 17 office equipment with personal funds and leasing or renting such equip- 18 ment or property to a committee working with or for the candidate, 19 provided the candidate or the campaign treasurer sign a written lease or 20 rental agreement and files it with the appropriate required campaign 21 financial filing which shall include the lease or rental price which 22 shall not exceed the fair lease or rental value of the equipment or in 23 the aggregate exceed the cost of its purchase. 24 3. Campaign funds shall not be converted to personal use, which shall 25 be defined as expenditures that: 26 a. are for the personal benefit of or to defray normal living expenses 27 of the candidate, officeholder, immediate family or partner of either or 28 any other person; 29 b. are used to fulfill any commitment, obligation, or expense that 30 would exist irrespective of the candidate's campaign or duties as an 31 officeholder; or 32 c. are put to any use for which the candidate or officeholder would be 33 required to treat the amount of the expenditure as gross income under 34 section 61 of the Internal Revenue Code. 35 4. Expenditures for personal use shall also include, but are not 36 limited to, expenditures for: 37 a. residential or household items, supplies, maintenance or other 38 expenditures, including mortgage, rent, utilities, repairs, or improve- 39 ments for any part of any personal residence of a candidate or office- 40 holder, his or her immediate family or partner; 41 b. rent or utility payments that exceed fair market value for use of 42 any part of any non-residential property owned by a candidate, or a 43 member of a candidate's family or partner used for campaign purposes; 44 c. salary and other fees for bona fide services to a campaign or 45 legislative office that exceed fair and reasonable market value of such 46 services; 47 d. interest or any other finance charges for monies loaned to the 48 campaign by the candidate or the spouse or partner of such candidate; 49 e. tuition payments; 50 f. dues, fees, or gratuities at private clubs, recreational facilities 51 or other nonpolitical organizations, unless connected to a specific 52 widely attended fundraising event that takes place on the organization's 53 premises; 54 g. automobile purchases or long term leases; short term car rentals 55 and cellular equipment and services not used exclusively for campaign 56 purposes or duties as an officeholder;

A. 8546 11 1 h. admission to sporting events, concerts, theaters, or other forms of 2 entertainment, unless part of a specific campaign or officeholder 3 related activity; and 4 i. payment of any fines, fees, or penalties assessed pursuant to this 5 chapter. 6 5. No campaign funds shall be used to pay attorney's fees or any costs 7 of defending against any civil or criminal investigation or prosecution 8 for alleged violations of state or federal law alleged to have been 9 committed while holding public office or as a candidate for office where 10 the candidate or public or party official, members of their immediate 11 families or partners or the campaign is the target of such investigation 12 or prosecution unless such expenditure is used exclusively for costs 13 related to civil or criminal actions for alleged violations related to 14 activities promoting the nomination or election of a candidate. 15 [2.] 6. No contribution shall be used to pay interest or any other 16 finance charges upon monies loaned to the campaign by such candidate or 17 the spouse of such candidate. 18 [3.] 7. For the purposes of this section, contributions "converted by 19 any person to a personal use" are expenditures that are exclusively for 20 the personal benefit of the candidate or any other individual, not in 21 connection with a political campaign or the holding of a public office 22 or party position. "Converted by any person to a personal use", when 23 meeting the definition in this subdivision, shall include, but not be 24 limited to, expenses for the following: 25 (i) any residential or household items, supplies or expenditures, 26 including mortgage, rent or utility payments for any part of any 27 personal residence of a candidate or officeholder or a member of the 28 candidate's or officeholder's family that are not incurred as a result 29 of, or to facilitate, the individual's campaign, or the execution of his 30 or her duties of public office or party position. In the event that any 31 property or building is used for both personal and campaign use or as 32 part of the execution of his or her duties of public office or party 33 position, personal use shall constitute expenses that exceed the pro- 34 rated amount for such expenses based on fair-market value. 35 (ii) mortgage, rent, or utility payments to a candidate or officehold- 36 er for any part of any non-residential property that is owned by a 37 candidate or officeholder or a member of a candidate's or officeholder's 38 family and used for campaign purposes, to the extent the payments exceed 39 the fair market value of the property's usage for campaign activities; 40 (iii) clothing, other than items that are used in the campaign or in 41 the execution of the duties of public office or party position; 42 (iv) tuition payments unrelated to a political campaign or the holding 43 of a public office or party position; 44 (v) salary payments or other compensation provided to any person for 45 services where such services are not solely for campaign purposes or 46 provided in connection with the execution of the duties of public office 47 or party position; 48 (vi) salary payments or other compensation provided to a member of a 49 candidate's family, unless the family member is providing bona fide 50 services to the campaign. If a family member provides bona fide services 51 to a campaign, any salary payments or other compensation in excess of 52 the fair market value of the services provided shall be considered 53 payments for personal use; 54 (vii) admission to a sporting event, concert, theater, or other form 55 of entertainment, unless such event is part of, or in connection with, a

A. 8546 12 1 campaign or is related to the holding of public office or party posi- 2 tion; 3 (viii) payment of any fines or penalties assessed against the candi- 4 date pursuant to this chapter or in connection with a criminal 5 conviction or by the joint commission for public ethics pursuant to 6 section ninety-four of the executive law or sections seventy-three or 7 seventy-three-a of the public officers law or the legislative ethics 8 commission pursuant to section eighty of the legislative law; 9 (ix) dues, fees, or gratuities at a country club, health club, recre- 10 ational facility or other entities with a similar purpose, unless they 11 are expenses connected with a specific fundraising event or activity 12 associated with a political campaign or the holding of public office or 13 party position that takes place on the organization's premises; and 14 (x) travel expenses including automobile purchases or leases, unless 15 used for campaign purposes or in connection with the execution of the 16 duties of public office or party position and usage of such vehicle 17 which is incidental to such purposes or the execution of such duties. 18 [4.] 8. Nothing in this section shall prohibit a candidate from 19 purchasing equipment or property from his or her personal funds and 20 leasing or renting such equipment or property to a committee working 21 directly or indirectly with him to aid or participate in his or her 22 nomination or election, including an exploratory committee, provided 23 that the candidate and his or her campaign treasurer sign a written 24 lease or rental agreement. Such agreement shall include the lease or 25 rental price, which shall not exceed the fair lease or rental value of 26 the equipment. The candidate shall not receive lease or rental payments 27 which, in the aggregate, exceed the cost of purchasing the equipment or 28 property. 29 [5.] 9. Nothing in this section shall prohibit an elected public 30 officeholder from using campaign contributions to facilitate, support, 31 or otherwise assist in the execution or performance of the duties of his 32 or her public office. 33 [6.] 10. The state board of elections shall issue advisory opinions 34 upon request regarding expenditures that may or may not be considered 35 personal use of contributions. Any formal or informal advisory opinions 36 issued by a majority vote of the commissioners of the state board of 37 elections shall be binding on the board, the chief enforcement counsel 38 established by subdivision three-a of section 3-100 of this chapter, and 39 in any subsequent civil or criminal action or proceeding or administra- 40 tive proceeding. 41 § 9. Section 14-132 of the election law, as added by section 2 of part 42 C of chapter 286 of the laws of 2016, is amended to read as follows: 43 § 14-132. Disposition of campaign funds. 1. [~~Upon the death of a~~ 44 ~~candidate, former candidate or holder of elective office, where such~~ 45 ~~candidate or candidate's authorized committee received campaign contrib-~~ 46 ~~utions, all such funds~~] Any political committee authorized by a candi- 47 date to take part in his or her election pursuant to section 14-112 of 48 this article shall dispose of all funds by the latest of: (a) two years 49 after the death of such candidate; (b) four years after the end of such 50 candidate's most recent term in the office for which the committee was 51 authorized to take part in his or her election to; or (c) four years 52 after the last election for which such candidate was nominated or desig- 53 nated and the committee was authorized. 54 2. Any candidate or political committee required to dispose of funds 55 pursuant to this section shall [~~be disposed~~] dispose of such funds by

A. 8546 13 1 any of the following means, or any combination thereof[~~, within two~~ 2 ~~years of the death of such person~~]: 3 (a) returning, pro rata, to each contributor the funds that have not 4 been spent or obligated; 5 (b) donating the funds to a charitable organization or organizations 6 that meet the qualifications of section 501(c)(3) of the Internal Reven- 7 ue Code; 8 (c) donating the funds to the state university of New York or the city 9 university of New York; 10 (d) donating the funds to the state's general fund; or 11 (e) contributing or transferring the funds to a candidate, party, 12 constituted or political committee other than a committee authorized by 13 the same candidate as the committee required to dispose of such funds, 14 in accordance with the applicable limits, if any, set forth in this 15 article. 16 [2.] 3. No such candidate's authorized political committee shall 17 dispose of campaign funds by making expenditures for personal use as 18 defined in section 14-130 of this article. 19 [3.] 4. If funds are not disposed of within the time required by this 20 section, such funds shall be recoverable by the chief enforcement coun- 21 sel of the state board of elections in a special proceeding in state 22 supreme court in the manner prescribed by section 16-116 of this chapter 23 and deposited into the state's general fund. 24 § 10. Subdivision 1 of section 14-102 of the election law, as amended 25 by chapter 8 and redesignated by chapter 9 of the laws of 1978, is 26 amended to read as follows: 27 1. The treasurer of every political committee which, or any officer, 28 member or agent of any such committee who, in connection with any 29 election, receives or expends any money or other valuable thing or 30 incurs any liability to pay money or its equivalent shall file state- 31 ments sworn, or subscribed and bearing a form notice that false state- 32 ments made therein are punishable as a class A misdemeanor pursuant to 33 section 210.45 of the penal law, at the times prescribed by this article 34 setting forth all the receipts, contributions to and the expenditures by 35 and liabilities of the committee, and of its officers, members and 36 agents in its behalf. Such statements shall include the dollar amount of 37 any receipt, contribution or transfer, or the fair market value of any 38 receipt, contribution or transfer, which is other than of money, the 39 name and address of the transferor, contributor or person from whom 40 received, if the contributor is a lobbyist registered pursuant to arti- 41 cle one-A of the legislative law and if the transferor, contributor or 42 person is a political committee; the name of and the political unit 43 represented by the committee, the date of its receipt, the dollar amount 44 of every expenditure, the name and address of the person to whom it was 45 made or the name of and the political unit represented by the committee 46 to which it was made and the date thereof, and shall state clearly the 47 purpose of such expenditure. Any statement reporting a loan shall have 48 attached to it a copy of the evidence of indebtedness. Expenditures in 49 sums under fifty dollars need not be specifically accounted for by sepa- 50 rate items in said statements, and receipts and contributions aggregat- 51 ing not more than ninety-nine dollars, from any one contributor need not 52 be specifically accounted for by separate items in said statements, 53 provided however, that such expenditures, receipts and contributions 54 shall be subject to the other provisions of section 14-118 of this arti- 55 cle.

A. 8546 14 1 § 11. Subdivision 3 of section 74 of the public officers law is 2 amended by adding a new paragraph j to read as follows: 3 j. No officer or employee of a state agency required to file an annual 4 statement of financial disclosure pursuant to section seventy-three-a of 5 this article shall solicit or receive contributions for a campaign for 6 state or federal office. 7 § 12. This act shall take effect on the first of January next succeed- 8 ing the date on which it shall have become a law; provided, however, 9 that section 14-136 of the election law as added by section seven of 10 this act shall take effect two years after such effective date; and 11 provided, further, that sections eight, nine, ten and eleven of this act 12 shall take effect on the sixtieth day after it shall have become a law; 13 provided, further, that if chapter 286 of the laws of 2016 shall not 14 have taken effect on or before such date then section nine of this act 15 shall take effect on the same date and in the same manner as such chap- 16 ter of the laws of 2016 takes effect; and provided, further, that the 17 state board of elections shall notify all registered campaign committees 18 of the applicable provisions of sections eight, nine, ten and eleven of 19 this act within thirty days after this act shall have become a law.

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