What's happening
This bill requires candidates and their committees to dispose of leftover campaign funds within specific timeframes and restricts how those funds can be used.
Why it matters
Limits the time leftover campaign funds can remain active,. requiring candidates or their committees to dispose of all funds within four years after leaving office, their last election, or last attempt to run—whichever is latest—helping to prevent perpetual campaign accounts and long-term accumulation of political money.
Specifies acceptable ways to dispose of surplus funds,. including returning money to donors, donating to charities, public universities, or the state, or making contributions to other political entities within legal limits—thereby increasing transparency and reducing misuse.
Explicitly bans personal use of leftover campaign funds,. closing a loophole that has allowed some former candidates to spend money on themselves after leaving public life, and aligning with federal standards for campaign finance ethics.
Establishes consequences and enforcement,. including faster disposal timelines in cases of candidate death or felony conviction, and allowing the state to recover unspent funds through court proceedings—ensuring compliance and deterring abuse.
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Who cares
Headline styles
Limit Use of Campaign Funds
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Recommit, enacting clause stricken
- Referred to elections
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4233
2017-2018 Regular Sessions
IN SENATE
February 6, 2017
Introduced by Sens. KRUEGER, SERRANO -- read twice and ordered printed, and when printed to be committed to the Committee on Elections
AN ACT to amend the election law, in relation to disposition of campaign funds
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The election law is amended by adding a new section 14-134 to read as follows:
§ 14-134. Disposition of campaign funds. 1. A candidate making their own disclosures without an authorized political committee or the treasurer of a candidate's authorized political committee shall dispose of all funds and terminate their filing obligation with the applicable board of elections within four years after the later of (a) the end of the candidate's most recent term of office, (b) the date of the election in which the candidate last appeared on the ballot, or (c) the date of the election in which the candidate last filed to seek political office.
2. Any such candidate or such candidate's authorized political committee required to dispose of funds pursuant to this section shall, at the option of the candidate or the treasurer of such committee, dispose of such funds by any of the following means, or any combination thereof:
(a) returning, pro rata, to each contributor the funds that have not been spent or obligated;
(b) donating the funds to a charitable organization or organizations that meet the qualifications of section 501(c)(3) of the Internal Revenue Code;
(c) donating the funds to the state university of New York or the city university of New York;
(d) donating the funds to the state's general fund;
(e) contributing the funds to a candidate, party, constituted or political committee in accordance with the limits set forth in section 14-114 of this article.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05170-01-7
S. 4233 2
3. No such candidate or such candidate's authorized political committee shall dispose of campaign funds by making expenditures for personal use as defined in section 14-130 of this article.
4. Upon the death of a candidate, former candidate or holder of elective office, who received campaign contributions, all funds shall be disposed of according to this section within twelve months of the death of such person.
5. Notwithstanding any inconsistent provision of this section, a candidate making their own disclosures without an authorized political committee or the treasurer of a candidate's authorized political committee shall dispose of all funds and terminate their filing obligation with the applicable board of elections within twelve months after final state or federal court affirmance of any felony conviction and sentence of such candidate on direct review or the expiration of the time for seeking such review, provided, however, that funds may only be disposed of in accordance with paragraph (a), (b), (c) or (d) of subdivision two of this section.
6. If funds are not disposed of within the time required by this section, such funds shall be recoverable by the chief enforcement counsel of the state board of elections in a special proceeding in state supreme court in the manner prescribed by section 16-116 of this chapter and deposited into the state's general fund.
§ 2. This act shall take effect July 1, 2018, provided, however, that where the applicable time frame for disposing of funds established by section 14-134 of the election law as added by section one of this act has elapsed on such effective date, a candidate making their own disclosures without an authorized political committee or the treasurer of a candidate's authorized political committee shall dispose of all funds and terminate their filing obligation with the applicable board of elections within 12 months of such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the election law, in relation to disposition of campaign funds
Purpose
This bill amends Article 14 of the Election Law to require that campaign funds are disposed of in a timely and appropriate manner after a candidate leaves office.
Summary of provisions
The Election Law is as added by section 2 of part c of chapter 286 of the laws of 2016 is amended.
Subdivision one requires an authorized candidate committee to dispose of all funds and close within four years after the end of a candidate's term office or date of the election in which the candidate was last filed, whichever is later.
Subdivision two requires a candidate or political committee, including a committee formed to promote or defeat the passage of a ballot amendment to dispose of funds by: (1) returning funds pro rata to contributors; (2) donating the funds to a 501(c) (3) -designated organization; (3) donating the funds to the state university; (4) donating the funds to the state's general funds; (5) transferring the funds to a political party committee; or (6) contributing the funds to a candidate or political committee within the current contribution limits.
Subdivision three bars the disposal of campaign funds for personal use.
Subdivision four requires that all funds be disposed of within twelve months of the death of a candidate.
Subdivision five requires that all funds from candidates without authorized political committee be disposed within twelve months after final state or federal court affirmation of felony conviction and sentence.
Subdivision six requires that all funds, if not disposed within the time required, be disposed into state's general fund.
Justification
This bill addresses 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. 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. 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.
Fiscal implications
None.
Effective date
This act shall take effect July 1, 2018.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.