NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7397A
SPONSOR: Cusick TITLE OF BILL:
An act to amend the election law, in relation to registration require-
ments for a political action committee and prohibitive spending by
certain committees
PURPOSE OR GENERAL IDEA OF BILL:
To provide clear definitions of "independent expenditure committees" and
"political action committees" for the purposes of election law, and
clarify the allowable contributions and spending for both types of
committee.
SUMMARY OF SPECIFIC PROVISIONS:
Section one of this bill amends § 14-100 the election law by adding two
subdivisions 15 and 16 to provide definitions for an "independent
expenditure committee" and a "political action committee".
Section two of this bill replaces "by making contributions" with the
more appropriate term "Political Action Committee"
Section three provides a technical correction to § 14-116 of the
election law relating to the disclosure requirements of political action
committees.
Section four of this bill adds a new § 14-107a to the election law
prohibiting independent expenditure committees from contributing to any
candidate, constituted committee, political committee or political
party; prohibits political action committees from making any independent
expenditures or contributions to any independent expenditure committee.
Section five establishes a penalty of up to $1,000 or up to the cost of
the expenditure, whichever is greater, for violations of § 14-107a of
the election law.
Section six is the effective date (immediately).
JUSTIFICATION:
Following the 2010 Citizens United Supreme Court decision finding that
the First Amendment prohibited the government from restricting independ-
ent political expenditures, Super PACs (Independent Expenditure Commit-
tees) have proliferated exponentially. Such committees are allowed to
spend unlimited sums of money in an election or on a ballot proposal,
provided such spending is entirely independent of a candidate. Likewise,
a political action committee (PAC) may contribute directly to a candi-
date or a candidates committee but is prohibited from making expendi-
tures in connection with a candidate or candidate committee.
Despite existing federal (FEC) regulations relating to the allowable
contribution and spending requirements of PACs and IE only committees,
there are not currently definitions of such committees in NYS election
law. Furthermore, there have been a number of instances in which a PAC
or IE only committee has allegedly violated federal law by illegally
coordinating with a candidate or a candidate committee.
This bill would clarify NYS election law by adding definitions for PACs
and Independent Expenditure Committees; clarifying allowable
contributions/expenditures for both; and establishing penalties for
violations thereof.
FISCAL IMPLICATIONS TO THE STATE:
None.
LEGISLATIVE HISTORY:
New bill
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
7397--A
2015-2016 Regular Sessions
IN ASSEMBLY
May 8, 2015
___________
Introduced by M. of A. CUSICK -- read once and referred to the Committee
on Election Law -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the election law, in relation to registration require-
ments for a political action committee and prohibitive spending by
certain committees
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 14-100 of the election law is amended by adding two
2 new subdivisions 15 and 16 to read as follows:
3 15. "independent expenditure committee" means a political committee
4 that: (a) makes only independent expenditures as defined in this arti-
5 cle; (b) conducts its activities entirely independent of candidates; and
6 (c) has not been authorized by, requested by, suggested by, fostered by,
7 or otherwise cooperated in any way in the formation or operation of a
8 candidate's campaign, a candidate's political committee, or any other
9 committee that makes expenditures for or on behalf of a political party
10 or a candidate.
11 16. "political action committee" means a political committee which
12 makes no expenditures, to aid or take part in the election or defeat of
13 a candidate, other than in the form of contributions including in-kind
14 contributions.
15 § 2. Section 14-112 of the election law, as amended by chapter 930 of
16 the laws of 1981, is amended to read as follows:
17 § 14-112. Political committee authorization statement. Any political
18 committee aiding or taking part in the election or nomination of any
19 candidate, other than [by making contributions] a political action
20 committee, shall file, in the office in which the statements of such
21 committee are to be filed pursuant to this article, either a sworn veri-
22 fied statement by the treasurer of such committee that the candidate has
23 authorized the political committee to aid or take part in his election
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10666-02-5
A. 7397--A 2
1 or that the candidate has not authorized the committee to aid or take
2 part in his election.
3 § 3. Subdivision 1 of section 14-118 of the election law, as amended
4 by chapter 156 of the laws of 2010, is amended to read as follows:
5 1. Every political committee shall have a treasurer and a depository,
6 and shall cause the treasurer to keep detailed, bound accounts of all
7 receipts, transfers, loans, liabilities, contributions and expenditures,
8 made by the committee or any of its officers, members or agents acting
9 under its authority or in its behalf. All such accounts shall be
10 retained by a treasurer for a period of five years from the date of the
11 filing of the final statement with respect to the election, primary
12 election or convention to which they pertain. No officer, member or
13 agent of any political committee shall receive any receipt, transfer or
14 contribution, or make any expenditure or incur any liability until the
15 committee shall have chosen a treasurer and depository and filed their
16 names in accordance with this subdivision. There shall be filed in the
17 office in which the committee is required to file its statements under
18 section 14-110 of this article, within five days after the choice of a
19 treasurer and depository, a statement giving the name and address of the
20 treasurer chosen, the name and address of any person authorized to sign
21 checks by such treasurer, the name and address of the depository chosen
22 and the candidate or candidates or ballot proposal or proposals the
23 success or defeat of which the committee is to aid or take part;
24 provided, however, that such statement shall not be required of a
25 constituted committee and provided further that a political action
26 committee which makes no expenditures, to aid or take part in the
27 election or defeat of a candidate, other than in the form of contrib-
28 utions, shall not be required to list the candidates being supported or
29 opposed by such committee. Such statement shall be signed by the treas-
30 urer and all other persons authorized to sign checks. Any change in the
31 information required in any statement shall be reported, in an amended
32 statement filed in the same manner and in the same office as an original
33 statement filed under this section, within two days after it occurs,
34 except that any change to the mailing address on any such statement
35 filed at the state board may also be made in any manner deemed accepta-
36 ble by the state board. Only a banking organization authorized to do
37 business in this state may be designated a depository hereunder.
38 § 4. The election law is amended by adding a new section 14-107-a to
39 read as follows:
40 § 14-107-a. Prohibited spending by independent expenditure committees
41 and political action committees. 1. An independent expenditure committee
42 shall not contribute to any candidate, constituted committee, political
43 committee, or political party.
44 2. A political action committee shall not make any independent expend-
45 itures or contributions to any independent expenditure committee.
46 § 5. Section 14-126 of the election law is amended by adding a new
47 subdivision 3-a to read as follows:
48 3-a. Any person who, acting as or on behalf of an independent expendi-
49 ture committee or a political action committee, knowingly and willfully
50 violates section 14-107-a of this article shall be subject to a civil
51 penalty, up to one thousand dollars or up to the cost of the communi-
52 cation, whichever is greater, to be recoverable in a special proceeding
53 or civil action to be brought by the state board of elections.
54 § 6. This act shall take effect immediately.
