Int.
No. 803
By Council Members
Avella, Addabbo Jr., Yassky and Monserrate
A Local Law to amend the
administrative code of the City of
Be it enacted by the
Council as follows:
Section
1. Declaration of legislative findings
and intent.
The city council finds
and declares that the current system of privately financed campaigns diminishes
the meaning of the right to vote by allowing large contributions to have a
deleterious influence on the political process. The current system also
violates the rights of all citizens to equal and meaningful participation in
the democratic or political process. It diminishes the free-speech rights of
non-wealthy voters and candidates whose voices are muffled by those who can
afford to monopolize political communications. Additionally, the current system
fuels the public perception of conflicts of interest and the domination of
special money interests. That perception undermines the electorate’s confidence
in the democratic process. It also makes it very difficult for qualified
candidates without access to large contributors or personal fortunes to mount
competitive campaigns. Because it places challengers at a distinct
disadvantage, the system inhibits the free exchange of ideas and communication
with the electorate.
The city council finds
and declares that providing a voluntary clean elections campaign finance system
would enhance democracy. It would help eliminate the deleterious influence of
large contributions on the political process, remove access to wealth as a
major determinant of a citizen’s influence within the political process, and restore the meaning of the principle of "one person,
one vote." It would also help restore the rights of all citizens to equal
and meaningful participation in the democratic process.
Instituting a public
financing program would restore the free-speech rights of non-wealthy
candidates and voters by providing candidates with resources with which to
communicate ideas with the electorate. Such a system would thus help enhance
the First Amendment rights of the electorate and candidates to be heard in the
political process. It would help restore the core First Amendment value of open
and robust debate in the political process. It would also diminish the
electorate’s perception of domination of special interests and strengthen the
public’s confidence in the democratic process and institutions. By providing
for public financing, this act also addresses the genuine concern about the amount
of time and effort that a candidate must devote to raising campaign funds.
Section
2. Title 3, Chapter 7 of the administrative code of the City
of
CHAPTER
7
CAMPAIGN
FINANCING
§ 3-701 Short title.
This chapter shall be known as the "
§ 3-702 Definitions. For
purposes of this chapter, the following terms shall have the following
meanings:
1. The term
"[participating] qualified candidate" shall mean any candidate
for nomination for election, or election, to the office of mayor, public
advocate, comptroller, borough president or member of the city council who
files a written certification pursuant to section 3-703 of this chapter.
2. The term
"principal committee" shall mean the authorized committee designated
by a candidate pursuant to paragraph (e) of subdivision 1 of section 3-703 [or
paragraph (a) of subdivision one of section 3-718] of this chapter.
3. The term "[matchable] qualifying contribution" shall mean a
contribution of between five dollars and one hundred dollars, inclusive, per
contribution to a qualified candidate and which is counted toward the aggregate
number of qualifying contributions needed to meet the threshold amount for a
specific office. A contribution shall be deemed a qualifying contribution only
if made by check, money order or cash and only if accompanied by a signed
statement that it is intended to be a contribution to a qualified candidate.
For a candidate seeking the nomination of a political party, the number of
qualifying contributions from the candidate’s party must be equal to three
percent of the voters registered in that party in that district or the minimum
number of qualifying contributions needed, whichever is less. [(i) a contribution, (ii) contributions or (iii) a portion of
a contribution or contributions, not greater than the applicable contribution
limitation set forth in paragraph (f) of subdivision one of section 3-703 for
all covered elections held in the same calendar year, made by a natural person
resident in the city of New York to a participating candidate which has been
reported in full to the campaign finance board in accordance with subdivision
six of section 3-703 by the candidate's principal committee and has been
contributed on or before December thirty-first in the year of such election
that may be matched by public funds in accordance with the provisions of this
chapter. Any contribution, contributions, or a portion of a contribution
determined to be invalid for matching funds by the board may not be treated as
a matchable contribution for any purpose. A loan may
not be treated as a matchable contribution. The
following contributions are not matchable:
(a) in-kind
contributions of property, goods, or services;
(b) contributions
in the form of the purchase price paid for an item with significant intrinsic
and enduring value;
(c) contributions
in the form of the purchase price paid for or otherwise induced by a chance to
participate in a raffle, lottery, or a similar drawing for valuable prizes;
(d)
money order contributions from any one contributor that are, in the aggregate,
greater than $100;
(e) contributions
from individuals under the age of eighteen years;
(f) contributions from
individual vendors to whom the participating candidate or his or her principal
committee makes an expenditure, in furtherance of the nomination for election
or election covered by the candidate's certification, unless such expenditure
is reimbursing an advance;
(g) contributions
from lobbyists or other persons required to be included in a statement of
registration filed pursuant to section 3-213(c)(1) or section 3-213(d). The
board shall rely on the database maintained by the city clerk pursuant to
section 3-221 or such other information known to the board to determine whether
a contribution is not matchable based on the
contributor's status as a lobbyist or person required to be included in a
statement of registration filed pursuant to section 3-213; and
(h) contributions
from contributors subject to the limitations of subdivision one-a of section
3-703 of this chapter.]
4. The term
"qualified campaign expenditure" shall mean an expenditure for which
[public] qualifying contributions and clean election campaign funds may
be used.
5. The term
"fund" shall mean the
6. The term
"threshold for eligibility" shall mean the total amount of [matchable] qualifying contributions that a
[participating] qualified candidate and his or her principal committee
must receive in order for such candidate to qualify for [optional public
financing] clean election funding pursuant to this chapter.
7. The term
"authorized committee" shall mean a political committee which has
been authorized by one or more candidates to aid or take part in the elections
of such candidate or candidates and which has filed a statement that such
candidate or candidates have authorized such political committee pursuant to
section 14-112 of the election law.
8. The term
"contribution" shall mean: (a) any gift, subscription, advance, or
deposit of money or any thing of value, made in connection with the nomination
for election, or election, of any candidate; (b) any funds received by a
political committee from another political committee to the extent such funds
do not constitute a transfer; (c) any payment, by any person other than a
candidate or a political committee authorized by the candidate, made in
connection with the nomination for election, or election, of any candidate,
including but not limited to compensation for the personal services of any
individual which are rendered in connection with a candidate's election or
nomination without charge; provided however, that none of the foregoing shall
be deemed a contribution if it is made, taken or performed by a person or a
political committee independent of the candidate or his or her agents or
political committees authorized by such candidate pursuant to section 14-112 of
the New York state election law. For purposes of this subdivision, the term
"independent of the candidate or his or her agents or political committees
authorized by such candidate pursuant to section 14-112 of the New York state
election law" shall mean that the candidate or his or her agents or
political committees so authorized by such candidate did not authorize,
request, suggest, foster or cooperate in any such activity; and provided
further, that the term "contribution" shall not include:
(i)
the value of services provided without compensation by
individuals who volunteer a portion or all of their time on behalf of a
candidate or political committee,
(ii) the use of real or
personal property and the cost of invitations, food and beverages voluntarily
provided by an individual to a candidate or political committee on the individual's
residential premises for candidate-related activities to the extent such
services do not exceed five three hundred dollars in value, and
(iii) the
travel expenses of any individual who on his or her own behalf volunteers his
or her personal services to any candidate or political committee to the extent
such expenses are unreimbursed and do not exceed five hundred dollars in value.
A loan made to a
[participating] qualified candidate or his or her principal committee[, or a non-participating candidate or his or her
authorized committees] other than in the regular course of the lender's
business shall be deemed, to the extent not repaid by the date of the first
covered election in which such candidate is governed by this chapter following
the date of the loan, a contribution by the lender. A loan made to a
[participating] qualified candidate or his or her principal committee,
or a non-participating candidate or his or her authorized committees in the
regular course of the lender's business shall be deemed, to the extent not
repaid by the date of the first covered election in which the candidate is
governed by this chapter following the date of the loan, a contribution by the
obligor on the loan and by any other person endorsing, cosigning, guaranteeing,
collateralizing or otherwise providing security for the loan.
9. The term
"transfer" shall mean any exchange of funds or any thing of value
between political committees authorized by the same candidate pursuant to
section 14-112 of the election law and taking part solely in his or her
campaign.
10. The term
"covered election" shall mean any primary, run-off primary, special,
run-off special or general election for nomination for election, or election,
to the office of mayor, public advocate, comptroller, borough president or
member of the city council.
11. The term
"political committee" shall mean any corporation aiding or promoting
and any committee, political club or combination of one or more persons
operating or cooperating to aid or to promote the success or defeat of a
political party or principle, or to aid or take part in the election or defeat
of a candidate for public office or to aid or take part in the election or
defeat of a candidate for nomination at a primary election or convention,
including all proceedings prior to such primary election, or of a candidate for
any party position voted for at a primary election, or to aid or defeat the
nomination by petition of an independent candidate for public office; but
nothing in this chapter shall apply to any committee or organization for the
discussion or advancement of political questions or principles without
connection with any vote. "Political committee" shall include any
party committee or constituted committee, as such committees are defined in article
fourteen of the election law.
12. The term
“intermediary” shall mean an individual, corporation, partnership, political
committee, employee organization or other entity which, (i)
other than in the regular course of business as a postal, delivery or messenger
service, delivers any contribution from another person or entity to a candidate
or other authorized committee; or (ii) solicits contributions to a candidate or
other authorized committee where such solicitation is known to such candidate
or his or her authorized committee. For purposes of clause (ii) of this subdivision only persons clearly identified as the
solicitor of a contribution to the candidate or his or her authorized committee
shall be presumed to be known to such candidate or his or her authorized
committee. “Intermediary” shall not include spouses, domestic partners,
parents, children or siblings of the person making such contribution, or any
fundraising agent, as such term is defined in the rules of the board or any
hosts of a campaign sponsored fundraising event paid for in whole or in part by
the campaign. Where there are multiple individual hosts for a non-campaign
sponsored event, the hosts shall designate one such host as the intermediary.
13. The term
["limited participating candidate" shall mean a candidate who meets
the requirements of paragraph (a) of subdivision one of section 3-718] “allowable
contribution” shall mean a qualifying contribution or personal contribution
permitted under the terms of this chapter.
14. The term "non-participating
candidate" shall mean any candidate for nomination for election, or
election, to the office of mayor, public advocate, comptroller, borough
president or member of the city council who [does not file a written
certification pursuant to section 3-703 or meet the requirements of paragraph
(a) of subdivision one of section 3-718 of this chapter, or who has, or the
authorized committees of such candidate have, made expenditures in furtherance
of the nomination for election or election to an office covered] rejects
clean election campaign financing and chooses to run in an election with
campaign contributions raised from private sources, or who otherwise is
ineligible or fails to qualify for clean election campaign financing.
Non-participating candidates are ineligible to receive clean election campaign
financing or other benefits as defined by this chapter.
[15. The term
"labor organization" shall mean any organization including any local,
state, district council, joint council or national organization which exists
and is constituted for the purpose, in whole or in part, of collective
bargaining, or of dealing with employers concerning grievances, terms or
conditions of employment, or of other mutual aid or protection. For purposes of
this section a labor organization shall also include any political committee it
has established pursuant to state or federal law.
16. The term
"lobbyist" shall mean a lobbyist as defined in subdivision (a) of
section 3-211 of this title and the spouse or domestic partner and unemancipated children of the lobbyist, and if the lobbyist
is an organization, the term "lobbyist" shall mean only that division
of the organization that engages in lobbying activities and any officer or
employee of such lobbyist who engages in lobbying activities of the
organization or is employed in an organization's division that engages in
lobbying activities of the organization and the spouse or domestic partner and unemancipated children of such officers or employees.
17. The term
"lobbying" or "lobbying activities" shall mean lobbying and
lobbying activities as defined in section 3-211 of this title.
18. a.
The term “business dealings with the city” shall mean (i)
any contract (other than an emergency contract or a contract procured through
publicly-advertised competitive sealed bidding) for the procurement of goods,
services or construction that is entered into or in effect with the city of New
York or any agency or entity affiliated with the city of New York and is valued
at or above the dollar value defined in subparagraph (a) of paragraph (3) of
subdivision i of section 6-116.2 of the
administrative code, or, with respect to a contract for construction, at or
above five hundred thousand dollars, or an emergency contract awarded pursuant
to section 315 of the charter, and shall include any contract for the
underwriting of the debt of the city of New York or any agency or entity
affiliated with the city of New York and the retention of any bond counsel,
disclosure counsel or underwriter’s counsel in connection therewith; or (ii)
any acquisition or disposition of real property (other than a public auction or
competitive sealed bid transaction or the acquisition of property pursuant to
the department of environmental protection watershed land acquisition program)
with the city of New York or any agency or entity affiliated with the city of
New York; or (iii) any application for approval sought from the city of New
York pursuant to the provisions of section 195 of the charter, any application
for approval sought from the city of New York that has been certified pursuant
to the provisions of section 197-c of the charter, and any application for a
zoning text amendment that has been certified pursuant to section 201 of the
charter; provided, however, that for purposes of this clause, with respect to
section 195 an applicant shall include the lessor of
an office building or office space, and with respect to section 197-c an
applicant shall include a designated developer or sponsor of a project for
which a city agency or local development corporation is the applicant and
provided, further, however, that owner-occupants of one, two and three family
homes shall not be considered applicants pursuant to this clause; or (iv) any
concession (other than a concession awarded through publicly-advertised
competitive sealed bid) or any franchise from the city of New York or any
agency or entity affiliated with the city of New York which has an estimated
annual value at or above the dollar value defined in subparagraph (a) of
paragraph (3) of subdivision i of section 6-116.2 of
the administrative code; or (v) any grant that is valued at or above the dollar
value defined in subparagraph (a) of paragraph (3) of subdivision i of section 6-116.2 of the administrative code, received
from the city of New York or any agency or entity affiliated with the city of
New York; or (vi) any economic development agreement entered into or in effect
with the city of New York or any agency or entity affiliated with the city of
New York; or (vii) any contract for the investment of pension funds, including
investments in a private equity firm and contracts with investment related
consultants. In addition, for purposes of this chapter a lobbyist as defined in
section 3-211 of this title shall be deemed to be engaged in business dealings
with the city of
b. Business dealings
with the city as defined in this subdivision shall be as follows: for purposes
of clause (i) of paragraph (a) of this subdivision,
bids or proposals on contracts for the procurement of goods, services, or
construction shall only constitute business dealings with the city of New York
for the period from the later of the submission of the bid or proposal or the
date of the public advertisement for the contract opportunity until twelve
months after the date of such submission or advertisement, and contracts for
the procurement of goods, services or construction shall only constitute
business dealings with the city of New York during the term of such contract
(or in the case of purchase contracts for goods, from the date of such
purchase) and for twelve months thereafter, provided, however that where such
contract award is made from a line item appropriation and/or discretionary
funds made by an elected official other than the mayor or the comptroller, such
contract shall only constitute business dealings with the city from the date of
adoption of the budget in which the appropriation of such contract is included
until twelve months after the end of the term of such contract; for purposes of
clause (ii) of paragraph a of this subdivision, leases in which the city of New
York is the proposed lessee, shall only constitute business dealings with the
city from the date the application for acquisition is filed pursuant to section
195 or the date of the certification of such application pursuant to section
197-c to a period of one year after the commencement of the lease term or after
the commencement of any renewal and where the city or any city affiliated
entity is disposing of any real property interest, shall only constitute
business dealings with the city from the date of the submission of a proposal
and during the term of any agreement and one year after; for purposes of clause
(iii) of paragraph (a) of this subdivision, applications for approval sought
from the city of New York pursuant to the provisions of sections 197-c or 201
of the charter, except for applications for leases as described in clause (ii),
shall only constitute business dealings with the city from the date of the
certification of such application to the date that is one hundred twenty days
after the date of filing by the council with the mayor of its action pursuant
to subdivision e of section 197-d of the charter or, in the case of a decision
of the city planning commission for which the council takes no action pursuant
to paragraph (3) of subdivision (b) of section 197-d of the charter, the date
which is twenty days following the filing of such decision with the council
pursuant to subdivision a of section 197-d of the charter, provided, however,
that in the case of a disapproval of a council action by the mayor pursuant to
subdivision e of section 197-d of the charter, such date shall be one hundred
twenty days after expiration of the ten day period for council override
pursuant to such section; for purposes of clause (iv) of paragraph (a) of this
subdivision, bids or proposals for franchises and concessions shall only
constitute business dealings with the city of New York for the period from the
submission of the bid or proposal until twelve months after the date of such
submission, concessions shall only constitute business dealings with the city
of New York during the term of such concession and for twelve months after the
end of such term, and franchises shall only constitute business dealings with
the city of New York for the period of one year after the commencement of the
term of the franchise or after the commencement of any renewal; for purposes of
clause (v) of paragraph (a) of this subdivision, grants shall constitute
business dealings with the city of New York for one year after the grant is
made; for purposes of clause (vi) of paragraph (a) of this subdivision,
economic development agreements shall constitute business dealings with the
city from the submission of an application for such agreement and during the
term of such agreement and for one year after the end of such term; and for
purposes of clause (vii) of paragraph (a) of this subdivision, contracts for
the investment of pension funds, including the investments in a private equity
firm and contracts with investment related consultants shall constitute
business dealings with the city from the time of presentation of investment
opportunity or the submission of a proposal, whichever is earlier, and during
the term of such contract and for twelve months after the end of such term.
c. Notwithstanding
anything in this subdivision, a person, as defined by subdivision 20 of section
3-702, who has submitted bids or proposals on contracts for the procurement of
goods, services or construction or who has submitted bids or proposals for
franchises or concessions that are no longer being considered for an award or a
person who for any other reason believes he or she should not be on the
database may apply to the city chief procurement officer or other person
designated by the mayor for removal from the doing business database and shall
be removed from the database upon a determination that said person should not
be included in the database. The city chief procurement officer may promulgate
rules for a process by which a person, as defined by subdivision 20 of section
3-702, may apply to the city chief procurement officer for a waiver from
inclusion in the doing business database as defined by such subdivision in
instances in which such person is providing essential goods, services or
construction such as those necessary for security or other essential government
operations. Such rules shall provide that the city chief procurement
officer shall transmit to the board a copy of any application for a waiver and
any such waiver may not be granted prior to the expiration of ten days from the
date such application is received by the board. Such rules shall also
provide that any such waiver may be granted only after substantial efforts
have been made by the city chief procurement officer to obtain the information
required by this law. Such rules shall also provide that the city chief
procurement officer may grant the waiver only upon a finding that it is in the
best interests of the city, which finding shall only be made upon a
determination that (i) there is a compelling need to
obtain such essential goods, services or construction from the person seeking
the exemption and (ii) no other reasonable alternative exists in light of such
considerations as cost, uniqueness and the critical nature of such goods,
services or construction to the accomplishment of the purchasing agency’s
mission. Such rules may also provide that a waiver may be granted when a
person is doing business with the city by virtue of the city’s exercise of its
powers of eminent domain. Any grant of a waiver shall be posted on the city’s and the board’s website in locations that are
accessible by the public.
d. A person, as defined
by subdivision 20 of section 3-702, shall be considered to have business
dealings with the city as of the date the person’s name is entered in the doing
business database, as such date is indicated in such database or the date the
person began doing business with the city, as such date is indicated in such
database, whichever is earlier, except that the date on which the person is
considered doing business with the city shall not be earlier than thirty days
before the date the person’s name is entered into such database.
19. The term “economic
development agreement” means any contract or agreement in which financial
incentives including, but not limited to, tax incentives, payments in lieu of
taxes and financing are offered in return for the development, attraction or
retention of business; provided, however that no financial incentives which are
given to a person who qualifies for such incentive by operation of law shall be
deemed to be pursuant to an economic development agreement for purposes of this
chapter.
20. The term “doing
business database” means a computerized database accessible to the board that
contains the names of persons who have business dealings with the city;
provided, however, that for purposes of this chapter the doing business
database shall not be required to contain the names of any person whose
business dealings with the city are solely of a type for which the board has
not certified that such database includes the names of those persons engaged in
such type of business dealings with the city. Such database shall be developed,
maintained and updated by the office of the mayor in a manner so as to ensure
its reasonable accuracy and completeness; provided, however, that in no event
shall such database be updated less frequently than once a month. Such
computerized database shall contain a function to enable members of the public
to determine if a given person is in the database because such person has
business dealings with the city. For purposes of this definition, the term
“person” shall include an entity that has business dealings with the city, any
chief executive officer, chief financial officer and/or chief operating officer
of such entity or persons serving in an equivalent capacity, any person
employed in a senior managerial capacity regarding such entity, or any person
with an interest in such entity which exceeds ten percent of the entity
provided, however, that “entity” for purposes of this definition shall not
include a neighborhood, community or similar association consisting of local
residents or homeowners organized on a non-profit basis where such association
is the applicant pursuant to subsection (3) of subdivision (a) of section 197-c
of the charter or pursuant to section 201 of the charter or is a parent company
or an affiliated company of an entity. For purposes of this subdivision, the
phrase “senior managerial capacity” shall mean a high level supervisory
capacity, either by virtue of title or duties, in which substantial discretion
and oversight is exercised over the solicitation, letting or administration of
business transactions with the city, including contracts, franchises,
concessions, grants, economic development agreements and applications for land
use approvals.
21. a.
For purposes of campaigns that accept public funds pursuant to section 3-705 of
this chapter, the terms “expenditure” and “campaign expenditure” shall include
all payments and liabilities in furtherance of a political campaign for covered
office, including, but not limited to, all qualified campaign expenditures and
expenditures subject to or exempt from the expenditure limitations of this
chapter. There shall be a rebuttable presumption that the following
expenditures are in furtherance of a political campaign for elective office;
provided, however that the presumptions contained in this subdivision shall not
apply to an expenditure to a person or entity associated with the candidate;
and provided further that in rebutting any such presumption the campaign
finance board may consider factors including the timing of the expenditure and
whether the campaign had an unusually high amount of spending on a particular
type of expenditure. For purposes of this subdivision a person or entity
associated with a candidate shall include the candidate’s spouse, domestic
partner, child, parent, or sibling, or a person or entity with whom the candidate has a business or other financial
relationship:
1. Contributions to
charitable organizations designated as 501(c)(3)
organizations pursuant to the internal revenue code;
2. Contributions to
candidates and political committees subject to the provisions of section
3-705(8);
3. Community events
including, but not limited to, events hosted by civic and neighborhood
associations; provided, however that this presumption shall not apply to
sporting events, concerts, theater or other entertainment events which shall be
subject to the provisions of paragraph b;
4. Ballot proposal advocacy
where there are indicia that the expenditure relates to the candidate;
5. Travel related solely
and exclusively to a political campaign for a covered office or the holding of
public office; provided, however that any travel not related solely and exclusively
to a political campaign or the holding of public office shall be subject to the
provisions of paragraph b;
6. Legal defense of a
non-criminal matter arising out of a political campaign;
7. Computer hardware,
software and other office technology purchased more than two weeks before the
date of a primary election, in the case of a candidate who is opposed in the
primary election, or two weeks before the date of a general election, in the
case of a candidate who was not opposed in a primary election;
8. A post-election event
for staff, volunteers and/or supporters held within thirty days of the
election;
9. Payment of
non-criminal penalties or fines arising out of a political campaign;
10. Costs incurred in
demonstrating eligibility for the ballot or public funds payments or defending
against a claim that public funds must be repaid; and
11. Food and beverages
provided to campaign workers and volunteers.
b. Campaign funds shall
not be converted by any person to a personal use which is unrelated to a political
campaign. Expenditures not in furtherance of a political campaign for elective
office include the following:
1 Expenditures to defray
the normal living expenses of the candidate, immediate family of the candidate
or any other individual except for the provision of such expenses for
professional staff as part of a compensation package;
2. Any residential or
household items, supplies or expenditures;
3. Clothing, haircuts
and other personal grooming;
4. Funeral, cremation or
burial expenses including any expenses related to a death within a candidate’s
or officeholder’s family;
5. Automobile purchases;
6. Tuition payments and
childcare costs;
7. Dues, fees or
gratuities at a country club, health club, recreational facility or other
nonpolitical organization unless part of a specific fundraising event that
takes place on the organization’s premises;
8. Admission to a
sporting event, theater, concert or other entertainment event not part of a
specific campaign activity;
9. Expenditures for
non-campaign related travel, food, drink or entertainment; if a candidate uses
campaign funds to pay expenses associated with travel that involves both
personal activities and campaign activities, the incremental expenses that
result from the personal activities shall be considered for personal use unless
the candidate benefiting from the use reimburses the campaign account within
thirty days for the full amount of the incremental expenses; and
10. Gifts, except for
brochures, buttons, signs and other campaign materials and token gifts valued
at not more than fifty dollars that are for the purpose of expressing
gratitude, condolences or congratulations.]
15. The term “primary
election campaign period” shall mean the period after the qualifying period
ending on the primary day.
16. The term “general
election campaign period” shall mean the period beginning the day after the
primary and ending thirty days after the general election.
17. The term
“independent expenditure” shall mean an expenditure by any person, political
party or other entity other than a candidate or a candidate’s authorized
committee that is made for a communication that expressly advocates the
election or defeat of a clearly identified candidate which is made without
participation, cooperation, coordination or consultation with any candidate,
candidate’s committee or persons working on behalf of a candidate. A person,
political party or entity is presumed to be in cooperation or coordination with
a candidate if they provide the candidate with anything of value, discuss
demographics, polling or related campaign strategy with a candidate, any
campaign consultant or agent, or engage in joint fundraising with the campaign;
once any type of coordination is established, the period of coordination is
presumed to be the entire campaign.
18. The term “qualifying
period” shall mean the period during which qualified candidates collect
qualifying contributions.
§ 3-703 Eligibility and
other requirements. 1. To be eligible for [optional public financing] clean
election funding under this chapter, a candidate for nomination for
election or election must:
(a) meet
all the requirements of law to have his or her name on the ballot;
(b) be a candidate for
mayor, public advocate, comptroller, borough president or member of the city
council in a primary, special, or general election and meet the threshold for
eligibility set forth in subdivision two of this section;
(c) choose to
participate in the [public] clean election campaign funding provisions
of this chapter, by filing a written certification in such form as may be
prescribed by the campaign finance board, which sets forth his or her
acceptance of an agreement to comply with the terms and conditions for the
provision of such funds, [. The deadline for filing such certification
for a primary and general election shall be:
(i)
the tenth day of June in the year of the covered election, or such other later
date as the board shall provide, provided, however, that any candidate who
files such written certification prior to such date shall be permitted to
rescind such certification in writing on or before such date; or
(ii) the
thirtieth day after a special election is held to fill a vacancy for the office
sought by the candidate; whichever is later. The deadline for filing such certification
for a special election to fill a vacancy shall be on the seventh day after the
proclamation of such special election. A certification may be filed on or
before the seventh day after the occurrence of an extraordinary circumstance in
an election, as declared by the campaign finance board, following the receipt
and review of a petition submitted by a candidate in such election. For
purposes of this paragraph, an "extraordinary circumstance" shall
include the death of a candidate in the election, the resignation or removal of
the person holding the office sought, and the submission to the board of a
written declaration by an officeholder that terminates his or her campaign for
reelection;] such certification to be filed with the board of elections as follows:
(i)
the qualifying period shall commence on December first
of the year prior to the election and end on July thirty-first of the year of
the election;
(ii) candidates
who qualify for funds automatically achieve ballot status and do not need to
establish ballot status through the established petition process;
(iii) candidates
who qualify for funds may begin drawing on such funds as of April first or five
days after qualifying, whichever is later;
(iv) candidates
who win a primary election shall receive funds within five days after the date
of the primary;
(v) the
qualification period in a special election shall begin the day the election is
announced. Candidates shall have up to fourteen days before the date of the
special election to collect qualifying contributions. The number of qualifying
contributions shall be half of the number of contributions required in a
general election. Funds shall be released to special election candidates within
three days of submission of qualifying contributions;
(d) obtain and furnish
to the campaign finance board and his or her principal committee or authorized
committees must obtain and furnish to the board any information it may request
relating to his or her campaign expenditures or contributions and furnish such
documentation and other proof of compliance with this chapter as may be
requested by such board, provided, however, that the board shall accept such
required documentation through an electronically scanned transmission;
(e) notify the board in
the candidate's written certification as to: (i) the
existence of each authorized committee authorized by such candidate that has
not been terminated, (ii) whether any such committee also has been authorized
by any other candidate, and (iii) if the candidate has authorized more than one
authorized committee, which authorized committee has been designated by the
candidate as the candidate's principal committee for the election(s) covered by
the candidate's certification; provided, that such principal committee (i) shall be the only committee authorized by such candidate
to aid or otherwise take part in the election(s) covered by the candidate's
certification, (ii) shall not be an authorized committee of any other
candidate, and (iii) shall not have been authorized or otherwise active for any
election prior to the election(s) covered by the candidate's certification. The
use of an entity other than the designated principal committee to aid or
otherwise take part in the election(s) covered by the candidate's certification
shall be a violation of this section and shall trigger the application to such
entity of all provisions of this chapter governing principal committees;
(f) not accept and his
or her principal committee or authorized committees must not accept, either
directly or by transfer, any contribution or contributions from any one
individual, partnership, political committee, labor organization or other
entity for all covered elections held in the same calendar year in which he or
she is a [participating] qualified candidate or a non-participating
candidate except for:
(i)
a qualified candidate may accept qualifying contributions as defined in
subdivision three of section 3-702 and as limited in subdivision two of section
3-706;
(ii) a non-participating
candidate may accept contributions which in the aggregate: ([i]A) for the office of mayor, public advocate or
comptroller shall not exceed four thousand [five] nine hundred fifty
dollars, or ([ii]B) for borough president, shall not exceed three
thousand [five] eight hundred fifty dollars, or ([iii]C)
for member of the city council, shall not exceed two thousand [five] seven
hundred fifty dollars; provided that [a participating candidate and his
or her principal committee or] a non-participating candidate and his or her authorized
committees may accept additional contributions which do not exceed one half the
amount of the applicable limitation for any run-off primary election,
additional day for voting held pursuant to section 3-108 of the New York state
election law, special election to fill a vacancy, run-off special election to
fill a vacancy, delayed or otherwise postponed election, or election held
pursuant to court order which is a covered election and in which the candidate
seeks nomination for election or election; and provided further that for the
purposes of this paragraph, contributions made by different labor organizations
shall not be aggregated or treated as contributions from a single contributor
for purposes of the contribution limit that is set forth in this paragraph if
those labor organizations make contributions from different accounts, maintain
separate accounts with different signatories, do not share a majority of
members of their governing boards, and do not share a majority of the officers
of their governing boards; and provided further that if state law prescribes a
contribution limitation of a lesser amount, this paragraph shall not be deemed
to authorize acceptance of a contribution in excess of such lesser amount. The
maximum contributions set forth in this paragraph shall be adjusted in
accordance with subdivision seven of this section;
(g) maintain
and his or her principal committee or authorized committees must maintain such
records of receipts and expenditures for a covered election as required by the
board;
(h) [not make
expenditures from or use his or her personal funds or property or the personal
funds or property jointly held with his or her spouse, domestic partner, or unemancipated children in connection with his or her
nomination for election or election except as a contribution to his or her
principal committee in an amount that does not exceed three times the maximum
contribution amount applicable pursuant to paragraph (f) of this subdivision.
Such candidate shall not make expenditures from or use other personal funds or
property of his or her spouse, domestic partner or unemancipated
children in connection with his or her nomination for election or election;
provided that this paragraph shall not be construed to limit contributions by
persons other than the candidate] agree to participate in at least two
public debates with other qualified candidates prior to the date of a primary
election and at least two debates with other qualified candidates prior to the
date of a general or special election, except that qualified candidates for
mayor, public advocate or comptroller must agree to participate in at least
three public debates with other qualified candidates prior to the date of a
general or special election. Such debates shall be established under
regulations promulgated by the board of elections. If a candidate fails to
participate in any debate required under this section before an election, the
candidate shall be liable for return of moneys previously received for use by
the candidate to pay election campaign expenses and shall be ineligible to
receive any further clean election campaign funds for that election. For
purposes of this subdivision, each primary, general, special or run off
election shall be considered a separate election;
(i)
not make and his or her principal committee must not
make expenditures which in the aggregate exceed the applicable expenditure
limitations set forth in section 3-706;
(j) meet
the threshold for eligibility set forth in subdivision two of this section;
(k) a
non-participating candidate must not accept and his or her principal
committee must not accept, either directly or by transfer, any contribution,
loan, guarantee, or other security for such loan from any political committee
for all covered elections held in the same calendar year in which he or she is
a [participating] candidate, except as is otherwise provided for contributions
by political committees pursuant to section 3-707 of this chapter; and
(l) not accept and his
or her principal committee or authorized committees must not accept, either
directly or by transfer, any contribution, loan, guarantee, or other security
for such loan from any corporation, limited liability company, limited
liability partnership or partnership, other than a corporation, limited
liability company, limited liability partnership or partnership that is a
political committee as defined in subdivision eleven of section 3-702 of this
chapter, for all covered elections held in the same calendar year in which he
or she is a [participating] qualified or non-participating candidate,
provided, however, that where a contribution is from a contributor whose name
is followed by a professional designation including but not limited to “M.D.”,
“Esq.” and “C.P.A.” the board shall not treat such contribution as coming from
a corporation, limited liability company, limited liability partnership or
partnership in the absence of further indicia that such contribution is from
such an entity;
(m) fulfill
the requirements of section 12-110 of the administrative code of the city of
(i)
The conflicts of interest board shall provide a [participating]
qualified candidate with a receipt indicating proof of compliance
with section 12-110 of the administrative code of the city of
(ii) A [participating] qualified
candidate shall provide the campaign finance board with the receipt provided by
the conflicts of interest board pursuant to subparagraph (i)
of this paragraph, in such form and manner as the campaign finance board shall
require, by the last business day of July in the year of the covered election,
or such other later date as the campaign finance board shall provide by rule,
except that in a special election to fill a vacancy the deadline for filing
such receipt shall be established by campaign finance board rule.
(iii) A [participating] qualified
candidate who fails to adhere to the requirements of subparagraph (ii) of this
paragraph may thereafter satisfy the requirements of this paragraph by submitting
a receipt in accordance with subparagraph (i) of this
paragraph at such times and in such manner as provided by campaign finance
board rule. The campaign finance board shall thereafter allow the
[participating] qualified candidate to make a claim for public funds
upon satisfying the requirements of this paragraph and all other applicable
law, rules and regulations; provided, however that a receipt that is not filed
timely pursuant to subparagraph (ii) of this paragraph may result in a delay of
any payment of public funds by the board; and
(n) satisfy any claim
made by the board for the payment of civil penalties or repayment of public
funds that remains outstanding against such candidate or his or her principal
committee or an authorized committee of such candidate from a prior covered
election, if (i) the candidate had written notice of
such potential claim and ineligibility to receive public funds prior to filing
a written certification for the current covered election pursuant to paragraph
(c) of this subdivision, or (ii) in the event no such timely notice has been
given pursuant to subparagraph (i), the candidate has
been given an opportunity to present to the board reasons he or she should be
eligible to receive public funds; and
(o) agree that expenditures
by his or her principal committee for the purpose of advocating a vote for or
against a proposal on the ballot in an election that is also a covered election
shall be subject to the contribution and expenditure limitations applicable in
such covered election.
[1-a.
Notwithstanding any inconsistent provision of this section, a participating
candidate or his or her principal committee may not accept, either directly or
by transfer, any contribution or contributions for a covered election in which
he or she is a participating candidate from a natural person who has business
dealings with the city, as that term is defined in subdivision eighteen of
section 3-702 of this chapter, if the aggregate of such contributions to such
candidate from such person for all covered elections in the same calendar year
exceeds: (i) for the office of mayor, public advocate
or comptroller four hundred dollars; (ii) for borough president three hundred
twenty dollars; and (iii) for member of the city council two hundred fifty
dollars; provided that a participating candidate or his or her principal
committee may accept additional contributions which do not exceed one half the
amount of the applicable limitation for any run-off primary election,
additional day for voting held pursuant to section 3-108 of the New York state
election law, special election to fill a vacancy, run-off special election to
fill a vacancy, delayed or otherwise postponed election, or election held
pursuant to court order which is a covered election and in which the candidate
seeks nomination for election or election. Any contribution made pursuant to
this section shall not be a matchable contribution.
For purposes of this subdivision, “person” shall include any chief executive
officer, chief financial officer and/or chief operating officer of an entity
which has business dealings with the city, any person employed in a senior
managerial capacity regarding such an entity, or any person with an interest in
such an entity which exceeds ten percent of the entity. For purposes of this
subdivision, the phrase “senior managerial capacity” shall mean a high level
supervisory capacity, either by virtue of title or duties, in which substantial
discretion and oversight is exercised over the solicitation, letting or administration
of business transactions with the city, including contracts, franchises,
concessions, grants, economic development agreements and applications for land
use approvals. Notwithstanding any provision of this subdivision, the
limitations on contributions contained herein shall not apply to any
contribution made by a natural person who has business dealings with the city
to a participating candidate or his or her principal committee where such
participating candidate is the contributor, or where such participating
candidate is the contributor’s parent, spouse, domestic partner, sibling,
child, grandchild, aunt, uncle, cousin, niece or nephew by blood or by
marriage.
1-b.
Individuals and organizations having business dealings with the city of
2. (a) For a
candidate seeking the nomination of a political party, the number of qualifying
contributions from the candidate’s party must be equal to three percent of the
voters registered in that party in that district or the minimum number of
qualifying contributions needed, whichever is less. The threshold for
eligibility for [public] clean election campaign funding for
[participating] qualified candidates in a primary or general election,
or special election to fill a vacancy, shall be in the case of:
(i)
mayor, [not less than two hundred fifty thousand dollars in matchable
contributions comprised of sums of up to one hundred seventy-five dollars per
contributor including at least one thousand matchable
contributions of ten dollars or more] public advocate or city comptroller,
must collect at least four thousand qualifying contributions from persons
eligible to vote in New York City;
(ii) [public advocate
and comptroller, not less than one hundred twenty-five thousand dollars in matchable contributions comprised of sums of up to one
hundred seventy-five dollars per contributor including at least five hundred matchable contributions of ten dollars or more;
(iii)] borough
president, [an amount equal to the number of persons living in such borough as
determined by the last census multiplied by two cents in matchable
contributions comprised of sums of up to one hundred seventy-five dollars per
contributor including at least one hundred matchable
contributions of ten dollars or more from residents of the borough, or ten
thousand dollars comprised of sums of up to one hundred seventy-five dollars
per contributor, whichever is greater] must collect at least two thousand five
hundred qualifying contributions from persons eligible to vote in that borough;
(i[v]ii)
member of the city council, [not less than five thousand dollars in matchable contributions comprised of sums of up to one
hundred seventy-five dollars per contributor including at least seventy-five matchable contributions of ten dollars or more from
residents of the district in which the seat is to be filled] must collect at
least five hundred qualifying contributions from persons eligible to vote in
that city council district.
(b) [Any participating
candidate meeting the threshold for eligibility in a primary election for one
of the foregoing offices shall be deemed to have met the threshold for
eligibility for such office in any other election, other than a special
election to fill a vacancy, held in the same calendar year] In addition to
the requirements of paragraph (a) of this subdivision, in order to be eligible
for clean election campaign financing for the general elections, the candidate
must have participated in the primary election and receive the highest number
of votes of the candidates contesting the primary election from his or her
respective party and have won the party’s nomination. This provision shall not
apply to independent candidates, whose eligibility requirements are set forth
in this section.
3. (a) In order
to be eligible to receive public funds in a primary election a [participating] qualified
candidate must agree that in the event he or she is a candidate for such office
in any other election held in the same calendar year, other than a special
election to fill a vacancy, that he or she will be bound in each such other
election by the eligibility requirements and all other provisions of this chapter.
(b) Any qualified
candidate meeting the threshold for eligibility in a primary election for one
of the offices outlined in this chapter shall be deemed to have met the
threshold for eligibility for such office in any other election held in the
same calendar year.
4. Qualified [C]candidates
who are contested in a primary election for nomination for election to office
and who do not file a written certification pursuant to paragraph (c) of
subdivision one of this section shall not be eligible for public clean
election campaign funds for any election to such office held in the same
calendar year other than a special election to fill a
vacancy.
5. [Participating
candidates who are seeking nomination or election exclusively as write-in
candidates, who are unopposed in a covered election, or who are opposed in a
covered election only by candidates seeking nomination or election exclusively
as write-in candidates, shall not be eligible to receive public funds for such
election.] (a) Except as outlined in paragraph (b) of this subdivision,
qualified candidates who are unopposed in a covered election, or who are
opposed in a covered election only by candidates seeking nomination or election
exclusively as write-in candidates, shall be eligible to receive twenty percent
of the full clean election campaign funds for such election, unless any such
write-in candidate, under subdivision four of section 3-706, reports
expenditures of greater than twenty percent of the full clean election campaign
funds, in which case such qualified candidates shall receive the full clean
election campaign funds for that election.
(b) Qualified candidates
who are unopposed in a primary election where another party has a contested
primary election for the same office shall be eligible to receive fifty percent
of the full clean election campaign funds for such primary election, unless a
non-participating candidate in such contested primary, under subdivision four
of section 3-706, reports expenditures of greater than one hundred ten percent
of the full clean election campaign funds, in which case such qualified
candidate shall receive fifty percent of additional funds that would be made
available under subdivision three of section 3-706 in a contested election.
6. (a) Each
[participating or limited participating] qualified candidate and his or
her principal committee, and each non-participating candidate and his or her
authorized committees shall report to the board every contribution, loan,
guarantee, or other security for such loan received by the candidate and such
committee, the full name, residential address, occupation, employer, and
business address of each contributor, lender, guarantor, or provider of
security and of each person or entity which is the intermediary for such
contribution, loan, guarantee, or other security for such loan, and every
expenditure made by the candidate and such committee, [including expenditures
not subject to section 3-706]. Disclosure reports shall be submitted at such
times and in such form as the board shall require and shall be clearly legible.
(b) Notwithstanding
paragraph (a) above:
(i)
an intermediary need not be reported for any qualifying contribution to
a [participating or limited participating] qualified candidate
and his or her [principal] authorized committee or for any
contribution to a non-participating candidate and his or her authorized
committees that was collected from a contributor in connection with a party or
other candidate-related event held at the residence of the person delivering
the contribution, unless the expenses of such events at such residence for such
candidate exceed [five] three hundred dollars for a covered election or
the aggregate contributions received from that contributor at such events
exceed five hundred dollars;
(ii) contributions
aggregating not more than ninety-nine dollars from any one contributor for all
covered elections held in a single calendar year or for a special election,
and all qualifying contributions from any one contributor to a qualified
candidate, need not be separately
itemized in disclosure reports submitted to the board on behalf of a
[participating, or limited participating] qualified or non-participating
candidate and his or her principal committee or authorized committees[,
provided, however, that contributions which are not itemized shall not be matchable];
(iii) the treasurer of
the principal committee need not collect or disclose the occupation, employer,
and business address of any contributor making contributions aggregating not
more than ninety-nine dollars for all covered elections held in a single
calendar year or for a special election or any contributor making qualifying
contributions to a qualified candidate or his or her authorized committee;
[provided, however, such occupation, employer, and business address shall be
disclosed if such contributors are employees of a participating or limited
participating candidate or the spouse or domestic partner of such candidate or
an entity in which such candidate, spouse or domestic partner has an ownership
interest of ten percent or more or a management position, including, but not
limited to, being an officer, director or trustee;] and
(iv) disclosure reports,
other than reports required to be filed every six months in accordance with the
schedule specified by the New York state board of elections, need not be
submitted on behalf of a [participating or limited participating] qualified
candidate and his or her authorized committee or a non-participating
candidate and his or her authorized committees if the cumulative amount of
contributions and loans accepted by such candidate and committee following the
period covered in the last disclosure report submitted to the campaign finance
board on behalf of such candidate is less than two thousand dollars or such
higher amount as may be determined by the campaign finance board, provided,
however, that disclosure reports shall be submitted on behalf of a
[participating or limited participating] qualified candidate and his or
her authorized committee or a non-participating candidate and his or her
authorized committees if that candidate and his or her committee have made
expenditures in excess of forty-five percent of the expenditure limitation
applicable to [participating or limited participating] qualified candidates
under section 3-706. The campaign finance board shall make available to the
public a copy of disclosure reports within two business days after they are
accepted by the board.
6-a. Any
rules promulgated by the board to require that disclosure reports submitted
pursuant to this chapter be submitted in an electronic format shall provide
exemptions for small campaigns, as defined by board rules, and for other
campaigns that demonstrate that submission in an electronic format would pose a
substantial hardship.
7. Not later than the
first day of March in the year two thousand eighteen and every fourth year
thereafter the campaign finance board shall (i)
determine the percentage difference between the average over a calendar year of
the consumer price index for the metropolitan New York-New Jersey region
published by the United States bureau of labor statistics for the twelve months
preceding the beginning of such calendar year and the average over the calendar
year two thousand fifteen of such consumer price index; (ii) adjust each
maximum contribution applicable for non-participating candidates
pursuant to paragraph (f) of subdivision one of this section by the amount of
such percentage difference to the nearest fifty dollars; [and] (iii) adjust
each disbursement amount of clean election campaign funds to qualified
candidates by the amount of such percentage difference to the nearest fifty
dollars; and (iv) publish such adjusted maximum contribution in the City
Record. Such adjusted maximum contribution shall be in effect for any election
held before the next such adjustment.
8. If a [participating
or limited participating] qualified candidate and his or her [principal]
authorized committee or a non-participating candidate and his or her
authorized committees demonstrate to the board that a political committee has
not accepted contributions, loans, or other receipts or made expenditures or
transfers in a covered election, and represent that such committee will not
accept contributions, loans, or other receipts or make expenditures or
transfers in a covered election, the [participating or limited participating] qualified
candidate and his or her principal committee or non-participating candidate and
his or her authorized committees may submit to the board legible copies of
financial disclosure reports, required to be filed with the city or state board
of elections, for such committees in lieu of the disclosure report form
designated by the board for purposes of subdivision six of this section.
9. No political committee
authorized by a [participating or limited participating] qualified or
non-participating candidate for a covered election may be authorized to aid or
take part in the elections of more than one candidate.
10. All receipts
accepted by a [participating or limited participating] qualified
candidate and his or her [principal] authorized committee shall
be deposited in an account of the [principal] authorized committee. All
receipts accepted by a non-participating candidate and his or her authorized
committees shall be deposited in an account of the authorized committees. The
treasurer of the principal committee or authorized committee shall be
responsible for making such deposits. All deposits shall be made within ten
business days of receipt; provided, however, that deposits of contributions
made in the form of checks received by a [participating or limited
participating or] non-participating candidate and his or her committees for the
office of city council more than one year before the first covered election for
which such candidate is seeking nomination or election may be made within
twenty business days of receipt. Each disclosure report filed pursuant to
subdivision six of this section shall include the date of receipt of each
contribution accepted.
11. Regardless whether a
[participating] qualified candidate demonstrates eligibility for
optional public financing under this chapter, a [participating] qualified
candidate and his or her principal committee are nonetheless required to abide
by the requirements of paragraphs (d), (e), (f), (g), (h), (i), (k) and (l) of subdivision one of this section.
12. [(a) Each
participating candidate or limited participating candidate for nomination for
election, or election, or the principal committee of such candidate, shall
submit, in a contemporaneous manner, the disclosure reports required pursuant
to this chapter, filed in accordance with the schedule specified by the state
board of elections for the filing of campaign receipt and expenditure
statements, and such other disclosure reports as the rules of the board may
require, in order for any contributions received during the periods covered by
such reports and prior to the last date upon which such candidate may file a
certification pursuant to paragraph (c) of subdivision one of this section to
qualify as matchable contributions.
(b) The board shall
review each disclosure report timely submitted by a candidate prior to the last
date upon which such candidate may file a certification pursuant to paragraph
(c) of subdivision one of this section, or subdivision one of section 3-718,
and issue to the candidate a review before the next disclosure report is due.
Such review shall inform the candidate of relevant questions the board has
concerning the candidate's: (i) compliance with
requirements of this chapter and of the rules issued by the board; and (ii)
qualification for receiving public funds pursuant to this chapter. In the
course of this review, the board shall give candidates an opportunity to
respond to and correct potential violations, before the deadline for filing a
certification pursuant to paragraph (c) of subdivision one of this section, or
subdivision one of section 3-718, and give candidates an opportunity to address
questions the board has concerning their matchable
contribution claims or other issues concerning eligibility for receiving public
funds pursuant to this chapter; provided, however, this paragraph shall not
apply to the last required disclosure report before the deadline for filing a
certification pursuant to paragraph (c) of subdivision one of this section or
subdivision one of section 3-718. Nothing in this paragraph shall preclude the
board from subsequently reviewing such disclosure reports and taking any action
otherwise authorized under this chapter.
13. Candidates who file
a certification pursuant to subdivision one of this section
shall not be eligible to file a certification pursuant to section 3-718, and
candidates who file a certification pursuant to section 3-718 shall not be
eligible to file a certification pursuant to subdivision one of this section.
14. (a)
Transfers that a principal committee receives from a political committee (other
than another principal committee) at any time during an election cycle shall:
(i)
be attributed to previous contributions in accordance
with the duly promulgated rules of the campaign finance board applicable to
such transfer or use;
(ii) exclude
an amount equal to the total of:
(A) such
previous contributions, or portions thereof, that violate the limitations,
restrictions, or prohibitions of the charter and this chapter applicable in the
covered election for which the principal committee is designated; and
(B) such previous
contributions, or portions thereof, for which the principal committee has not
obtained and submitted to the board, prior to receipt of the transfer, evidence
of the contributor's intent to designate the contribution for such covered
election, and any other record, as determined by the rules of the board; and
(iii) not
be matchable.
(b) Each transfer, the
contributions to which the transfer is attributed, and all expenditures made in
connection with such contributions shall be reported to the board in the next
disclosure report due pursuant to this section 3-703 after the transfer is
received. These expenditures shall, at a minimum, include all expenditures made
by the political committee making the transfer during the election cycle of the
covered election. The board shall issue instructions defining the circumstances
in which such disclosure reports shall also include additional expenditures
made by other political committees authorized by the participating candidate
that originally received such contributions and additional expenditures made
prior to such election cycle. Such expenditures shall be applied to the
expenditure limit applicable under 3-706.
(c) Participating
candidates shall have the burden of demonstrating that expenditures reported
pursuant to paragraph (b) of this subdivision are not subject to the
expenditure limit applicable under section 3-706 and are not a basis for
reducing public funds payments pursuant to subdivision eight of section 3-705
of this chapter.
(d) Nothing in this
subdivision is intended to modify or supersede any federal law that prohibits
or otherwise restricts the use of campaign or donated funds by political
committees, candidates or federal officeholders.
15. Participating] Qualified
candidates, their campaign managers, treasurers or persons with significant
managerial control over a campaign shall be required to attend a training
provided by the campaign finance board concerning compliance with the
requirements of the campaign finance program and use of the campaign finance
program software.
§ 3-704 Qualified
campaign expenditures. 1. [Public] Qualifying contributions and clean
election campaign funds provided under the provisions of this chapter may
be used only for expenditures by a principal committee to further the
participating candidate's nomination for election or election, either in a special
election to fill a vacancy, or during the calendar year in which the primary or
general election in which the candidate is seeking nomination for election or
election is held.
2. Such public funds may
not be used for:
(a) an
expenditure in violation of any law;
(b) payments made to the
candidate or a spouse, domestic partner, child, grandchild, parent,
grandparent, brother or sister of the candidate or spouse or domestic partner
of such child, grandchild, parent, grandparent, brother or sister, or to a
business entity in which the candidate or any such person has a ten percent or
greater ownership interest;
(c) payments
in excess of the fair market value of services, materials, facilities or other
things of value received in exchange;
(d) (i)
any expenditure made after the candidate has been finally disqualified [or had
his or her petitions finally declared invalid by the New York city board of
elections or a court of competent jurisdiction, except that such expenditures
may be made:
(A) as
otherwise permitted pursuant to subdivision seven of section 3-709 of this
chapter, or
(B) for a different
covered election, other than a special election to fill a vacancy, held later
in the same calendar year in which the candidate seeks election for the same
office; provided, however, that public funds originally received for a special
election to fill a vacancy may not be retained for expenditure in any other
election];
(ii) any expenditure
made after the only remaining opponent of the candidate has been finally disqualified
or had his or her petitions finally declared invalid by the New York city board
of elections or a court of competent jurisdiction[, except that such
expenditures may be made for a different covered election, other than a special
election to fill a vacancy, held later in the same calendar year in which the
candidate seeks election for the same office; provided, however, that public
funds originally received for a special election to fill a vacancy may not be
retained for expenditure in any other election];
(e) payments
in cash, except as prescribed in subdivision fifteen of section 3-709 of
this chapter;
(f) any
contribution, transfer, or loan made to another candidate or political
committee;
(g) gifts, except
brochures, buttons, signs and other printed campaign material, or except for
reasonable expenses for a post-election celebration held within thirty days
after the final election in which the qualified candidate participates in any
calendar year;
(h) [any expenditures to
challenge or defend the validity of petitions of designation or nomination, or
of certificates of nomination, acceptance, authorization, declination, or
substitution, and expenses related to the canvassing of election results, made
pursuant to subdivision four of section 3-706;]
[(i)]
an expenditure made primarily for the purpose of expressly advocating a vote
for or against a ballot proposal, other than expenditures made also to further
the [participating] qualified candidate’s nomination for election or
election; or
(ji) payment of any penalty or fine
imposed pursuant to federal, state or local law.[; or
(k) payments
made through advances, except in the case of individual purchases in excess of
two hundred fifty dollars.]
§ 3-705 Optional
[public] clean election campaign financing. Each [participating] qualified
candidate for nomination for election or election in a covered election may
obtain payment [to his or her principal committee from public] to the
authorized committee designated by such candidate pursuant to this chapter from
clean election campaign funds for qualified campaign expenditures, in
accordance with the provisions of this chapter, and subject to appropriation.
1. No such [public] clean
election campaign funds shall be paid to a principal committee unless the
board determines that the [participating] qualified candidate has met
the eligibility requirements of this chapter. Payment shall not exceed the
amounts specified in this chapter, and shall be made only in accordance with
the provisions of this chapter. Such payment may be made only to the
[participating] qualified candidate's [principal] authorized
committee. No public funds shall be used except as reimbursement or payment for
qualified campaign expenditures actually and lawfully incurred [or to repay
loans used to pay qualified campaign expenditures.
2. (a) If the threshold
for eligibility is met, the participating candidate's principal committee shall
receive payment for qualified campaign expenditures of six dollars for each one
dollar of matchable contributions, up to one thousand
fifty dollars in public funds per contributor (or up to five hundred twenty-two
dollars in public funds per contributor in the case of a special election),
obtained and reported to the campaign finance board in accordance with the provisions
of this chapter.
(b) Except as otherwise
provided in subdivision three of section 3-706, in no case shall the principal
committee of a participating candidate receive public funds pursuant to
paragraph (a) above in excess of an amount equal to fifty-five percent of the
expenditure limitation provided in subdivision one of section 3-706 for the
office for which such candidate seeks nomination for election or election.
(c) No funds shall be
provided pursuant to this subdivision with respect to any covered election
specified in subdivision five of this section.] A qualified candidate
seeking or obtaining nomination for election by more than one party shall be
deemed one candidate, and shall not receive additional clean election campaign
funds or be authorized to accept contributions in excess of the maximum
contribution applicable pursuant to paragraph (f) of subdivision one of section
3-703 of this chapter or make additional expenditures by reason of such
candidate seeking or obtaining nomination for election by more than one party.
3. [A participating
candidate seeking or obtaining nomination for election by more than one party
shall be deemed one candidate, and shall not receive additional public funds or
be authorized to accept contributions in excess of the maximum contribution
applicable pursuant to paragraph (f) of subdivision one of section 3-703 or
make additional expenditures by reason of such candidate seeking or obtaining
nomination for election by more than one party. Subdivision five of section
3-703 shall not be applicable to such a candidate who is opposed for the
nomination of at least one party in a primary election. The elimination of the
expenditure limitations and qualification for additional matching funds
provided in subdivision three of section 3-706 shall not be applicable to such
a candidate who is opposed for the nomination of at least one party solely by
participating candidates.
4. The campaign finance
board shall make possible payment within four business days after receipt of
reports of matchable contributions, or as soon
thereafter as is practicable, but not earlier than the earliest dates for
making such payments as provided in subdivisions five and six of section 3-709;
provided, however, that the board shall withhold up to five percent of all
public funds payments to participating candidates until the final pre-election
payment for any given election. The board shall schedule a minimum of three
payment dates within the thirty days prior to a covered election. For purposes of
such payment dates, the board shall provide each candidate with a written
determination specifying the basis for any non-payment. The board shall provide
candidates with a process by which they may immediately upon receipt of such
determination petition the board for reconsideration of any such non-payment
and such reconsideration shall occur within five business days of the filing of
such petition. In the event that the board denies such petition then it shall
immediately notify the candidate of his or her right to bring a special
proceeding pursuant to article 78 of the civil practice law and rules.
5. (a)] Notwithstanding
any other provision of this chapter, [a participating candidate in a run-off
primary election held pursuant to section 6-162 of the New York state election
law or a run-off special election to fill a vacancy] if there is an
additional day for voting held pursuant to state law or court order, a
qualified candidate in such election shall obtain prompt payment for
qualified campaign expenditures in an amount equal to twenty-five cents for
each one dollar of [public] clean election campaign funds paid pursuant
to this chapter to the candidate's principal committee for the preceding
election. Except as provided by this subdivision, no additional clean
election campaign funds shall be provided to any candidate for such election or
additional day for voting.
[(b) The board shall
promulgate rules to provide for the prompt issuance of additional public funds
to eligible participating candidates for qualified campaign expenditures in the
case of an additional day for voting held pursuant to section 3-108 of the
(c) Except as provided
for by this subdivision and any rules promulgated hereby, no public funds shall
be provided to any candidate for any run-off primary election, run-off special
election to fill a vacancy, additional day for voting, election held pursuant
to court order, or delayed or otherwise postponed election.
6. Notwithstanding any other provision of this chapter to the contrary, to protect the public fund from disproportionately large payments when the number of voters eligible to vote in a primary election is small, the board shall adopt rules setting a reduced maximum primary election public funds payment for p