What's happening
This bill increases disclosure requirements for lobbyists and campaign contributors, restricts the personal use of campaign funds, and establishes new limits and reporting for government contractors in New York.
Why it matters
Expands transparency around lobbying and campaign finance. by requiring lobbyists and their clients to disclose campaign contributions made by themselves and their employees, as well as any payments over $500 to family members of public officials for employment or professional services. This aims to shine a light on potential conflicts of interest and influence-peddling.
Establishes strict contribution limits and reporting requirements for government contractors and their associates. , including their immediate family and senior managers. These entities must report contributions and face new, lower limits on how much they can give to state candidates and party committees, with the goal of curbing "pay-to-play" practices in state contracting.
Significantly tightens rules on the use of campaign funds. , explicitly banning personal uses such as rent or mortgage on personal residences, tuition, club dues, entertainment not related to campaigns, and most legal defense costs unrelated to campaign activities. This closes longstanding loopholes that allowed officeholders to treat campaign accounts as personal slush funds.
Bars lobbyists and major state contractors from serving on state boards or commissions with contracting authority. , and prohibits certain state employees from soliciting or receiving campaign contributions, aiming to reduce improper influence over government decision-making and ensure a clearer separation between public service and private gain.
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Who cares
Headline styles
Expand Lobbyist Disclosure Rules
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to finance
- Referred to finance
Full text
10 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5473
2017-2018 Regular Sessions
IN SENATE
March 30, 2017
Introduced by Sens. KRUEGER, ADDABBO, HOYLMAN, SERRANO, SQUADRON -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
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 Assembly, do enact as follows:
Section 1. This act shall be known and may be cited as the "Lobbyist Disclosure Campaign Fund Act".
§ 2. Section 1-c of the legislative law is amended by adding a new subdivision (x) to read as follows:
(x) The term "family member" shall mean any of the following, including parents, stepparents, spouse, domestic partners, grandparents, brothers, sisters, uncles, and aunts, whether of the whole blood or half blood or by or through legal sanction.
§ 3. Paragraph 5 of subdivision (b) of section 1-h of the legislative law is amended by adding two new subparagraphs (vi) and (vii) to read as follows:
(vi) the campaign contributions made, in any form, to any campaign or political committee in New York state by the client by whom or on whose behalf the lobbyist is retained, employed or designated, by the lobbyist, and by any employees of the lobbyist.
(vii) the amount of compensation paid and the names of any family members of a public official to whom a lobbyist and the client by whom or on whose behalf the lobbyist is retained, employed or designated has paid compensation of more than five hundred dollars in the preceding calendar year for personal employment or professional services.
§ 4. Subdivision (b) of section 1-h of the legislative law is amended 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.
LBD01910-03-7
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(6) the name, address and telephone number of any public official with whom the lobbyist has any business relationship.
§ 5. Paragraph 5 of subdivision (b) of section 1-j of the legislative law is amended by adding two new subparagraphs (vi) and (vii) to read as follows:
(vi) the campaign contributions made, in any form, to any campaign or political committee in New York state by the client by whom or on whose behalf the lobbyist is retained, employed or designated, by the lobbyist, and by any employees of the lobbyist.
(vii) the amount of compensation paid and the names of any family members of a public official to whom a lobbyist and the client by whom or on whose behalf the lobbyist is retained, employed or designated has paid compensation of more than five hundred dollars in the preceding calendar year for personal employment or professional services.
§ 6. Subdivision (b) of section 1-j of the legislative law is amended by adding a new paragraph 7 to read as follows: (7) the name, address and telephone number of any public official with whom the lobbyist has any business relationship.
§ 7. The election law is amended by adding two new sections 14-136 and 14-138 to read as follows:
§ 14-136. Government contractor reporting and contribution limits. 1. Definitions. The following definitions shall apply to this section:
a. "agent" means any person acting at the direction of or on behalf of an individual or business entity;
b. "business entity" means a business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association or any other legal commercial entity organized under the laws of this state or any other state or foreign jurisdiction, including any subsidiary directly or indirectly controlled by the business entity, and any political organization, including but not limited to any political organization organized under section 527 of the Internal Revenue Code, that is directly or indirectly controlled by the business entity;
c. "immediate family" means any spouse or child of an individual or any financially dependent relatives who reside in the individual's household;
d. "housekeeping account" means an account maintained by a party committee or constituted committee from which expenditures are made to maintain a permanent headquarters and staff and carry on ordinary party activities which are not for the express purpose of promoting the candidacy of specific candidates;
e. "candidate for state office" means a candidate for the following state offices: governor, lieutenant governor, attorney general, comptroller, senator, and member of the assembly; and
f. "personal business transaction" means transactions for services offered by the elected official in his or her capacity as a private citizen to any member of the public.
2. The following persons and business entities who make a contribution to a candidate for state office, a political committee working directly or indirectly to aid or participate in such candidate's nomination or election, a political committee established or controlled by such candidate, or a state or local committee of a political party, including a housekeeping account, shall file reports as required by subdivision three of this section with the board of elections within seven calendar days after the date of a contribution made within thirty-six days of an election, or, for contributions made at any other time, within thirty-
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six days of the date of the contribution or the date of any applicable contract, whichever occurs later:
a. any person, organization, group of persons, or business entity that has received, in a calendar year fifty thousand dollars or more through contracts from the state or any state-appointed entity with contracting power;
b. any person who owns more than ten percent of a business entity that is described in paragraph a of this subdivision;
c. any person employed by an organization, group, or business entity described in paragraph a of this subdivision who holds a senior management position as defined by the state ethics commission;
d. the immediate family member of a person who is described in paragraph a, b or c of this subdivision; or
e. any political committee established or controlled by a person, organization, group of persons or business entity described in paragraph a, b, c and d of this subdivision.
3. The board of elections shall prescribe forms and procedures for the reporting required in subdivision two of this section which, at a minimum, shall require the electronic filing of the following information:
a. the name, address, employer and the name of spouse of the person making the contribution and the name of the spouse's employer;
b. the name of the candidate, political committee, or state or local committee of a political party, including a housekeeping account, receiving the contribution;
c. the amount of the contract with the state or other entity defined in paragraph a of subdivision two of this section, and the dates and other information identifying each contract for services or goods; and
d. if an organization, group of persons, or business entity is making the contribution:
(i) the names and business addresses of all persons who own more than ten percent of the organization, group or entity; or
(ii) the names and business addresses of all persons employed by the organization, group, or business entity who hold a senior management position as defined by the commission on governmental ethics.
4. The board of elections shall maintain completed forms and reports described in subdivision two of this section for public inspection both at the board of elections office and through the board of elections electronic filing system for campaign finance disclosure (EFS).
5. From twelve months after a bid or proposal to the relevant agency or contracting authority for a contract described in subdivision two of this section and either twelve months after completion of the applicable contract, or upon completion of the applicable elected official's term in office, whichever is longer, it shall be unlawful for any person, organization, group of persons or business entity described in paragraphs a, b, c and d or e of subdivision two of this section to:
a. make contributions to a candidate for state office, any political committee working directly or indirectly to aid or participate in such candidate's nomination or election, or any other political committee established or controlled by such candidate that exceed the following amounts per election for the following offices:
(i) governor: five hundred dollars;
(ii) lieutenant governor: five hundred dollars;
(iii) comptroller: five hundred dollars;
(iv) attorney general: five hundred dollars;
(v) senator: three hundred fifty dollars; or
(vi) member of assembly: two hundred fifty dollars;
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b. make contributions to:
(i) political committees working directly or indirectly to aid or participate in the nomination or election of a candidate for the offices described in subparagraphs (i), (ii), (iii), (iv), (v) and (vi) of paragraph a of this subdivision, or other political committees established or controlled by a candidate for the offices described in subparagraphs (i), (ii), (iii), (iv), (v) and (vi) of paragraph a of this subdivision that in the aggregate exceed four thousand dollars per election; or
(ii) state or local committees of a political party, or any housekeeping account, in an amount greater than one thousand dollars per election, and in an aggregate to all state or local committees of political parties in an aggregate that exceeds two thousand dollars per election;
c. solicit a contribution on behalf of, or transmit a contribution on behalf of another to:
(i) a candidate for any of the offices for which contributions are limited under paragraph a of this subdivision;
(ii) any political committee working directly or indirectly to aid or participate in the nomination or election of a candidate for office for which their contributions are limited in paragraph a of this subdivision, or any other political committee established or controlled by a candidate for the offices for which their contributions are limited under paragraph a of this subdivision;
(iii) a state or local committee of a political party including a housekeeping account;
d. participate in any fund-raising activities for:
(i) a candidate for any of the offices for which contributions are limited under paragraph a of this subdivision;
(ii) any political committee working directly or indirectly to aid or participate in the nomination or election of a candidate for office for which their contributions are limited in paragraph a of this subdivision, or any other political committee established or controlled by a candidate for the offices for which their contributions are limited under paragraph a of this subdivision;
(iii) a state or local committee of a political party, including a housekeeping account;
e. serve as chairperson, treasurer, or any other officer of:
(i) any political committee working directly or indirectly to aid or participate in the nomination or election of a candidate for office for which their contributions are limited under paragraph a of this subdivision; or
(ii) any other political committee established or controlled by a candidate for which their contributions are limited under paragraph a of this subdivision;
f. conduct personal business transactions in an amount over two thousand dollars in any calendar year with a public official holding the offices for which their contributions are limited under paragraph a of this subdivision;
g. deliver to any conduit or intermediary any contribution earmarked for a particular candidate for the offices for which their contributions are limited under paragraph a of this subdivision, or any committee working directly or indirectly to aid or participate in such candidate's nomination or election, or any other political committee established or controlled by such candidate; or
h. knowingly take any step to circumvent the restrictions in this subdivision.
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i. the provisions of this section shall not apply for a contractor making a contribution, or any disclosure thereof required by this article, in any calendar year in which such contractor receives funds disbursed by the state or any instrumentality thereof pursuant to a federal statute, rule or regulation that would render the state or such instrumentality or contractor ineligible to receive such funds by virtue of the operation of this section.
This subdivision shall not be applicable to contributions made by any person, organization, group of persons or business entity at a time when the person, organization, group of persons or business entity did not meet the descriptions of paragraphs a, b, c, d and e of subdivision two of this section.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
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
Purpose
This bill would require lobbyists to report campaign contributions, professional relationships with public officials and employment relationships with relatives of public officials. It will more clearly delineate how candidates for elected office can and cannot use their campaign funds, establish rules and methods for the disposal of excess campaign funds and for the timing of such disposal, require that they specifically detail campaign contributions by lobbyists and prohibit the soliciting or receiving of contributions for campaigns for state or federal office by senior policy makers in the executive branch.
Summary of specific provisions
This act shall be known and cited as the "Lobbyist Disclosure Campaign Fund Act". The legislative law is amended to require campaign contributions and compensation paid to family members of public officials by lobbyists to be included on each bi-monthly lobbying report as well as each semiannual report to the commission. Lobbyists would also be required to report the contact information for any public official with whom he or she has a business relationship.
Read the full memo (1,799 words)
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.
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.
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.
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