What's happening
This bill establishes an optional public matching funds system for New York state election campaigns, creates a Fair Elections Board for oversight, and increases campaign finance transparency and limits.
Why it matters
Creates a strong incentive for small-dollar donations. The bill provides a 6-to-1 public match on the first $250 of each donation from New York residents to participating candidates, encouraging candidates to seek broad, grassroots support rather than relying on large donors.
Raises the bar for candidate participation and eligibility. To qualify for public funds, candidates must meet specific thresholds of small-dollar donations (e.g., $650,000 from 6,500 donors for governor), ensuring that only serious campaigns with meaningful public support benefit from matching funds.
Establishes robust oversight and enforcement mechanics. The new Fair Elections Board has independent authority, bipartisan staffing requirements, mandatory audits, and the power to investigate, penalize, and refer violations for civil or criminal prosecution, aiming to enhance accountability and deter abuse.
Imposes stricter transparency and limits on campaign finance activity. The bill reduces contribution limits for participating candidates, expands disclosure requirements (including tracking intermediaries), restricts the use of campaign funds for personal expenses, and blocks certain transfers, all designed to prevent circumvention and increase public trust.
Creates a dedicated public funding stream and sustainability measures. The bill funds the system via new surcharges, voluntary tax return contributions, and general revenue as needed, with rules to return surplus funds to the state, aiming to ensure the system is financially stable and insulated from budget cuts.
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Publicly Fund Campaigns
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Referred to elections
Full text
24 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7593
IN SENATE
January 29, 2018
Introduced by Sen. STEWART-COUSINS -- 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 enacting the "fair elections act"; to amend the election law, the state finance law and the tax law, in relation to providing for optional partial public financing of certain election campaigns in this state; and to amend the general business law, in relation to additional surcharges
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "fair elections act".
§ 2. Legislative findings and declarations. The legislature declares that is in the public interest to create and ensure a truly democratic political system in which citizens, irrespective of their income, status, or financial connections, are enabled and encouraged to compete for public office. Therefore, the legislature finds it necessary to establish a system of public financing for all qualified candidates for state elective offices and constitutional convention delegates. The legislature further finds that a new system of public financing would be best administered by a new "fair elections board" empowered with effective oversight and enforcement capabilities dedicated to working with and assisting candidates excel in the public financing system.
§ 3. Section 3-102 of the election law is amended by adding two new subdivisions 3-a and 16-b to read as follows:
3-a. notwithstanding subdivision three of this section, the fair elections board enforcement counsel, established pursuant to subdivision six of section 14-216 of this chapter, as it may deem necessary, after the fair elections board has considered the matter or matters in question shall conduct any investigation necessary to enforce the provisions of title two of article fourteen of this chapter on behalf of the board of elections. Such investigations shall be kept confidential until brought to the fair elections board for review and consideration.
16-b. hear and consider the recommendations of the fair elections board enforcement counsel regarding the enforcement of violations of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02775-02-8
S. 7593 2
title two of article fourteen of this chapter, as it may deem necessary, after the fair elections board has considered the matter or matters in question;
§ 4. Subdivision 1 of section 3-104 of the election law is amended by adding a new paragraph (a-1) to read as follows:
(a-1) There shall also be a unit known as the fair elections enforcement unit established within the fair elections board. The head of such unit shall be the enforcement counsel. Such unit shall have sole authority within the state board of elections to investigate alleged violations and complaints arising under title two of article fourteen of this chapter.
§ 5. Section 3-104 of the election law is amended by adding twelve new subdivisions 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19 and 20 to read as follows:
9. If the fair election board enforcement counsel determines that a violation of title two of article fourteen of this chapter has occurred which could warrant a civil penalty, the enforcement counsel shall, upon his or her discretion, seek to resolve the matter extra-judicially or commence a special proceeding in the supreme court pursuant to section 16-114 of this chapter.
10. Upon receipt of a complaint and supporting information alleging any other violation of title two of article fourteen of this chapter, the fair elections board enforcement counsel shall analyze the complaint to determine if an investigation should be undertaken. The fair elections board enforcement counsel shall, if necessary, request additional information from the complainant to assist such counsel in making this determination. Such analysis shall be confidential and include the following: first, whether the allegations, if true, would constitute a violation of article fourteen of this chapter and, second, whether the allegations are supported by credible evidence.
11. If the fair elections board enforcement counsel determines that the allegations, if true, would not constitute a violation of title two of article fourteen of this chapter or that the allegations are not supported by credible evidence, he or she shall issue a letter to the complainant dismissing the complaint.
12. If the fair elections board enforcement counsel determines that the allegations, if true, would constitute a violation of title two of article fourteen of this chapter and that the allegations appear to be supported by credible evidence, he or she shall notify the fair elections board of (a) his or her intent to resolve the matter extra-judicially due to the de minimus nature of the violation; or (b) his or her intent to commence an investigation, no later than the fair elections board's next regularly scheduled meeting. Notification shall summarize the relevant facts and the applicable law and shall, to the extent possible, protect from public disclosure the identity of the complainant and the individual subject to the complaint. In determining whether a violation is de minimus in nature the enforcement counsel shall consider the following factors: (a) whether any unforeseen extraordinary circumstances, such as a natural disaster, contributed to the violation alleged in the complaint; (b) whether the participating candidate or such candidate's campaign treasurer exercised due diligence to abide by the applicable rules; (c) whether the participating candidate or such candidate's campaign treasurer has used such candidate's or treasurer's personal funds to remedy any alleged violations or reimburse the candidate's committee for any alleged improper expenditures; (d) whether the participating candidate or such candidate's campaign treas-
S. 7593 3
urer agrees to pay any penalties assessed by the board in relation to any potential excess expenditure; and (e) whether the subject of the complaint has made a good faith effort to correct any alleged violation.
13. If, upon considering the fair elections board enforcement counsel's notice of intent to commence an investigation, the fair elections board believes that the allegations, if true, would not constitute a violation of article fourteen of this chapter, or the allegations are not supported by credible evidence or, that on balance, the equities favor a dismissal of the complaint, the board shall publicly direct that an investigation not be undertaken no later than sixty days after the receipt of notification from the fair elections board enforcement counsel of his or her intent to commence an investigation. In determining whether the equities favor a dismissal of the complaint, the fair elections board shall consider the following factors: (a) whether the complaint alleges a de minimus violation of article fourteen of this chapter; (b) whether the subject of the complaint has made a good faith effort to correct the violation; and (c) whether the subject of the complaint has a history of similar violations. Determinations of the fair elections board to dismiss a complaint and not proceed with a formal investigation shall be voted upon as provided in subdivision twelve of section 14-216 of this chapter at an open meeting pursuant to article seven of the public officers law, and shall be made on a fair and equitable basis and without regard to the status of the subject of the complaint.
14. Absent a timely determination by the fair elections board that an investigation shall not be undertaken, the fair elections board enforcement counsel shall commence an investigation on a timely basis. If the fair elections board enforcement counsel determines that additional investigative powers, as provided for in subdivisions four, five and six of section 3-102 of this title, are needed to complete the counsel's investigation, he or she shall request, upon approval of the fair elections board, such additional powers from the state board of elections. Such powers shall be granted by the board in public, as provided in subdivision four of section 3-100 of this title, only when the board finds that further investigation is warranted and justified.
15. At the conclusion of its investigation, the fair elections board enforcement counsel shall provide the fair elections board with a written recommendation as to: (a) whether substantial reason exists to believe a violation of title two of article fourteen of this chapter has occurred and, if so, the nature of the violation and any applicable penalty, as defined in section 14-126, 14-220 or 14-222 of this chapter, based on the nature of the violation; (b) whether the matter should be resolved extra-judicially; (c) whether a special proceeding should be commenced in the supreme court to recover a civil penalty; and (d) whether a referral should be made to a district attorney or the attorney general pursuant to subdivision seventeen of this section because reasonable cause exists to believe a violation warranting criminal prosecution has taken place.
16. The fair elections board shall accept, modify or reject the enforcement counsel's recommendation no later than sixty days after receipt of such recommendation. In making its determination, the board shall again consider: (a) whether the complaint alleges a de minimus violation of article fourteen of this chapter; (b) whether the subject of the complaint has made a good faith effort to correct the violation; and (c) whether the subject of the complaint has a history of similar violations. All such determinations shall be voted upon as provided in
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subdivision twelve of section 14-216 of this chapter at an open meeting pursuant to article seven of the public officers law, and shall be made on a fair and equitable basis, without regard to the status of the subject of the complaint.
17. (a) If the fair elections board determines, as provided in subdivision sixteen of this section, that substantial reason exists to believe that a person, acting as or on behalf of a candidate or political committee under circumstances evincing an intent to violate such law, has unlawfully accepted a contribution in excess of a contribution limitation established in title two of article fourteen of this chapter, which could warrant a civil penalty as provided for in subdivision three of section 14-126 or subdivision two of section 14-222 of this chapter, the board shall direct the commencement of a special proceeding in the supreme court.
(b) If the fair elections board determines, as provided in subdivision sixteen of this section that reasonable cause exists to believe a violation of title two of article fourteen of this chapter warranting criminal prosecution has taken place, the board shall refer the matter to a district attorney and shall make available to such district attorney all papers, documents, testimony and findings relevant to its investigation. Where reasonable cause exists to believe that a candidate for the office of attorney general has violated title two of article fourteen of this chapter, the board shall refer the matter to the district attorney of the appropriate county.
(c) If the fair elections board determines, as provided in subdivision sixteen of this section that reasonable cause exists to believe a violation of title two of article fourteen of this chapter, warranting criminal prosecution has taken place, the board shall, except as provided in paragraph (b) of this subdivision, refer the matter to the attorney general and shall make available to the same all papers, documents, testimony and findings relevant to its investigation.
18. Upon notification that a special proceeding has been commenced by a party other than the fair elections board, pursuant to section 16-114 of this chapter, the fair elections board shall direct the fair elections board enforcement counsel to investigate the alleged violations unless otherwise directed by the court.
19. The fair elections board enforcement counsel shall prepare a report, to be included in the annual report to the governor and legislature, summarizing the activities of the unit during the previous year. Such report shall include: (i) the number of complaints received; (ii) the number of complaints that were found to need investigation and the nature of each complaint; and (iii) the number of matters that have been resolved. The report shall not contain any information for which disclosure is not permitted.
20. The fair elections board may promulgate rules and regulations consistent with law to effectuate the provisions of this section.
§ 6. The state of New York shall appropriate during each fiscal year to the New York state fair elections board enforcement unit, not less than thirty-five percent of the appropriation available from the general fund for the state board of elections to pay for the expenses of such enforcement unit. Notwithstanding section fifty-one of the state finance law, such funding shall not be decreased by interchange with any other appropriation.
§ 7. The election law is amended by adding a new section 3-111 to read as follows:
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§ 3-111. Personal use of campaign funds. Upon written request from any person who is subject to the requirements of section 14-130 of this chapter, the fair elections board shall render formal and advisory opinions on the requirements of said provision. An opinion rendered by the board, until and unless amended or revoked, shall be binding on the board in any subsequent proceeding concerning the person who requested the opinion and who acted in good faith and reliance on such opinion, unless material facts were omitted or misstated by the person in the request for an opinion. Such opinion may also be relied upon by such person, and may be introduced and shall be defense in any criminal or civil action. Such request shall be confidential, but the board shall publish such opinions provided that the name of the requesting person and other identifying details shall not be included in the publication.
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 enacting the "fair elections act"; to amend the election law, the state finance law and the tax law, in relation to providing for optional partial public financing of certain election campaigns in this state; and to amend the general business law, in relation to additional surcharges
Subject and purpose
To provide optional public financing of campaigns for statewide and state legislative offices and constitutional convention delegates.
Summary and description of provisions
This bill would create an optional public financing system for certain elections within the state of New York. Specifically, the bill adds a new Title II to Article 14 to provide for public financing of Primary and general election campaigns for statewide office, primary, general and special election campaigns for state legislative office and primary and general election campaigns for constitutional convention delegates.
Read the full memo (1,987 words)
The bill also contains provisions to require the disclosure of interme- diaries and contributions collected on behalf of donors for candidates by intermediaries. The so called LLC loophole which treats said organ- izations like natural people for purposes of contribution limits would also be closed.
Criteria for participation
To be eligible for public financing, a candidate for nomination or election to a statewide office, state legislative office or as a consti- tutional convention delegate must satisfy the legal requirements for having his or her name on the ballot, elect to participate in the public financing system, meet the threshold for eligibility and agree to file required statements and authorize a single participating committee.
Eligibility threshold
Governor: Must collect not less than $650,000 from at least 6,500 match- able contributions made up of sums of up to $250 per individual contrib- utor who resides in New York State.
Lt. Governor (primary only), Attorney Gen. & Comptroller: Must collect not less than $200,000 from at least 2,000 matchable contributions made up of sums of up to $250 per individual contributor who resides in New York State.
Senate: Must collect not less than $20,000 from at least 200 matchable contributions made up of sums of up to $250 per individual contributor who resides in New York State including at least $10,000 from at least 100 individual contributors who reside in the senate district, or in any part of any county in the Senate district, in which the seat is to be filled.
Assembly: Must collect not less than $10,000 from at least 100 matchable contributions made up of sums of up to $250 per individual contributor who resides in New York State including at least $5,000 from at least 50 individual contributors who reside in the assembly district, or in any part of any county in the Assembly district, in which the seat is to be filled.
At-large Delegate to a Constitutional Convention: Must collect not less than $20,000 from at least 200 matchable contributions made an of sums of up to $250 per individual contributor who resides in New York State.
District Delegate to a Constitutional Convention: Must collect not less than $5,000 from at least 50 matchable contributions made up of sums of up to $250 per individual contributor who resides in the district, or any part of any county in the district, in which the seat is to be filled.
Matchable contributions
Matchable contributions may be collected after January first of the year of the primary or general-election. For a special election, may be collected up to six months before the election. Consist of the net amount of contributions after deduction of the value of any food, drink or entertainment provided in exchange for the contribution. Only contributions from persons who reside in New York State are matchable.
The match
Eligible contributions up to $250 are matched at the rate of $6 for every $1.
MISC.RULES:
To receive public funds for a primary election, a participating candi- date must agree to receive public funding for the general election.
Participating candidates who are unopposed in a primary election may not receive public funds. Participating candidates are deemed unopposed unless there is at least one other candidate, as defined by § 14-100(7) of the election law, in the race for the same office.
Participating candidates that are unopposed may raise private funds of up to 50% of the expenditure limit if there is a contest. in the primary for at least one other party for such office. Such funds may only be raised with contributions of up to $2000 per contributor.
Candidates who are challenged in a primary and who do not seek public funds are not eligible for public funds for the general election.
Candidates who are unopposed in a general or special election may not receive public funds.
Permissible and prohibited uses of public funds
Public funds may be used only for qualified campaign expenditures during the year of the primary or general election. For a special election, such funds may only be used in the 3 months prior to the election. They may not be used for expenditures in violation of law, for payments to a candidate or to a relative of the candidate (or to any business entity of which such a person is an officer or employee or has a ten percent or greater ownership interest) in excess of the fair market value for services rendered, for payments in excess of fair market value, for any expenditure after the candidate or the candidate's only remaining oppo- nent has been disqualified (until and unless reversed), to challenge an opponent's petitions or certificates, for non-campaign related food, drink or entertainment, or for gifts. Public funds may not be given as a campaign contribution or a transfer.
Contribution limit
All candidates who choose to participate in the public financing system have a contribution limit of $2,000 per contributor.
Public funds receipt limits
The following limits on public funds apply to all candidates who partic- ipate in the public financing system:
General Election Primary
Governor $12,000,000 $9,000,000 Lt. Governor $6,000,000 Attorney General $ 8,000,000 Same as Lt. Governor Comptroller State Senator $ 400,000 $350,000 Member of Assembly $ 200,000 $150,000 At-Large Delegate $ 350,000 $ 75,000 District Delegate $ 75,000 $ 50,000
Note
A participating candidate may raise unlimited amounts of private money subject to the $2,000 per contributor limitation.
PARTY EXPENDITURES IN SUPPORT OF PARTICIPATING CANDIDATES
Notwithstanding the expenditure limits for participating candidates, a state party committee may make the following expenditures for services to participating candidates the party has nominated:
Gov. and Lt. Gov. $2,500,000 Att. Gen or Comp. $1,000,000 Senate $100,000 State Assembly $50,000 At-large Delegate $50,000 District Dele- gate $10,000
Transfers to a participating candidate may constitute up to 25% of such party expenditures.
Enforcement
Enforcement of the new Title III will be handled by the fair elections board office of enforcement counsel and also a fair elections board which will sit within the state board of elections. The fair elections board will be comprised of five members. The members of the board will be appointed as follows: one by the Governor and one by each of the four legislative leaders.
The fair elections board will appoint a counsel who will oversee and enforce all campaign finance laws, rules and regulations on behalf of the fair elections board.
All actions, rules and regulations issued by the fair elections board are subject to review at the discretion of the state board of elections.
Debates
Participating candidates are required to participate in at least one debate before the primary election and in at least one debate before the General election for which the candidate receives public funds, unless The participating candidate is running unopposed. A non-participating candidate may be a party to such debates.
Sources of funding
The bill provides for three separate sources of funding for the public financing regime:
1) The bill provides an income tax check-off of $5. Such monies would be paid into a separate fund, known as the New York State Fair elections fund. The taxpayers' tax liability would not be affected by making this designation.
2) In addition, the bill imposes an additional 10% surcharge on recov- eries for fraudulent practices relating to stocks, bonds, other securi- ties as well as all other recoveries having to do with fraud by the Attorney General.
3) If the state fair elections fund lacks the money to pay all properly certified claims, the deficiency will be paid from the general fund.
Penalties
CIVIL:
* The failure to make proper campaign finance filings, as required by Title II and rules and regulations promulgated thereunder, shall subject the offender to a civil penalty of up to $5000.
* Any person or authorized committee who knowingly and willfully violates any other Provision of Title II or any regulations promulgated thereunder shall subject the offender to a civil penalty of up to $10,000.
Criminal
All prosecutions under Title II for criminal acts shall be prosecuted by the Attorney General.
The failure to make proper campaign finance filings, as required by Title II within 10 days or anyone that willfully violates any other provision of this title shall be guilty of a misdemeanor, and in addi- tion to such other penalties as may be provided by law, shall be subject to a fine not to exceed the amount of $10,000.
Any person who knowingly and willfully contributes, accepts or aids or participates in the acceptance of a contribution in an amount exceeding an applicable maximum specified in this article shall be guilty of a misdemeanor and shall be subject to a fine not to exceed the amount of $10,000.
Any person who knowingly and willfully makes a false statement or know- ingly omits a material fact to the fair election board or an auditor designated by the fair elections board during any audit conducted pursu- ant to new section 14-214 of the Election Law shall be guilty of a class E felony.
In addition to any other sentence lawfully imposed upon a finding of guilt in a criminal prosecution commenced under the provisions of this bill, a court may order a defendant to repay to the fair elections board any public matching funds obtained as a result of any criminal conduct.
This bill also requires disclosure for "bundlers". Bundlers are those individuals or organizations who aggregate a number of contributions from others and deliver them to a candidate or a candidate's authorized committee.
Legislative history
2015: S3502 2013-14: S4705C (Stewart-Cousins) 2012: A9885D 2009: A8902
Justification
This public financing bill provides a comprehensive yet balanced approach to the public financing of political campaigns. It contains significant but realistic limitations on expenditures and contribution receipts, a means for recovering public funds when they are unspent, excessive or used for prohibited purposes, and penalties for violations of the filing requirements or the expenditure limitations for partic- ipants.
The "matching grant" structure of the program has several advantages. It will reduce the amount of time a candidate must spend raising money, leaving more time to address the issues that are important to the public. The matching component allows for participation by private citi- zens throughout the campaign while also conserving resources by ensuring that only candidates who can show substantial voter support and face opposition will be eligible to receive public funds.
Overall, the bill strikes a balance that allows challengers and incum- bents to compete fairly while capping the amount of public funds that w ill be expended.
Fiscal implications
Other states that have public financing systems in place have had very low participation rates at first with increasing participation in later elections. The long term cost of the system in New York is unkown.
Effective date
This act takes effect immediately; provided, however, that state legis- lative candidates will be eligible to participate in 2020 and all state- wide candidates and constitutional delegates will be eligible to partic- ipate in 2022.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.