BILL NUMBER: S2135
SPONSOR: KRUEGER
 
TITLE OF BILL:
An act to amend the legislative law and the election law, in relation to
disclosures required for lobbyists; and to amend the election law and
the public officers law, in relation to campaign funds for personal use
 
PURPOSE:
This bill would require lobbyists to report campaign contributions,
professional relationships with public officials and employment
relationships with relatives of public officials. It will more clearly
delineate how candidates for elected office can and cannot use their
campaign funds, establish rules and methods for the disposal of excess
campaign funds and for the timing of such disposal, require that they
specifically detail campaign contributions by lobbyists and prohibit the
soliciting or receiving of contributions for campaigns for state or
federal office by senior policy makers in the executive branch.
 
SUMMARY OF SPECIFIC PROVISIONS:
This act shall be known and cited as the "Lobbyist Disclosure Campaign
Fund Act". The legislative law is amended to require campaign contrib-
utions and compensation paid to family members of public officials by
lobbyists to be included on each bi-monthly lobbying report as well as
each semiannual report to the commission. Lobbyists would also be
required to report the contact information for any public official with
whom he or she has a business relationship.
Requires lobbyists, persons who own more than 10% of a lobbying busi-
ness, persons who hold senior management positions in lobbying busi-
nesses or immediate family members to any of those persons must file a
report specifying political contributions to any state office candidates
with the state board of elections. Elected officials would be required
to report any behested payments .they have solicited over $5,000 per
calendar year. These records shall be a matter of public record.
Contribution limits for any lobbyists or persons intimately involved
with lobbying firms would be set for state office ($500 for statewide
office, $350 for senate and $250 for assembly). These persons would also
be prohibited from donating more than $5,000 to a political committee
which works to aid candidates. Lobbyists would be prohibited from trans-
mitting contributions on behalf of another individual whose contrib-
utions would be limited by this law. Lobbyists would be prohibited from
serving as an officer of any political committee, conducting personal
business (over $2,000) with any public official, deliver money earmarked
for a particular candidate or knowingly take steps to circumvent this
law. No candidates may accept any money which would be in violation of
this law.
Any person or business with a contract of $50,000 or more with the
state, any person who owns 100 or more of such a business, any senior
manager of such a business, or any family member of one of those persons
must report any campaign donations within seven days (if within 36 days
of the election) or within 31 days (all other times). These reports,
made to the state board of elections, shall be available for public
inspection.
Contribution limits to political campaigns would be set for persons or
businesses with certain contracts and it would be unlawful to make
contributions to political committees in excess of $4,000 per election.
Such persons and businesses would also be prohibited from soliciting or
transmitting contributions on behalf of others participate in fundrais-
ing activities for certain candidates, serving as an officer for a poli-
tical committee, conducting personal business transactions over $2,000
with any public official, delivering any contribution for a specific
candidate and attempting to circumvent this law.
The state would be barred from entering into contracts with any person
or business that violates the provisions of this bill. All contracts
must contain a provision describing these requirements and before enter-
ing into such a contract, the state shall receive a sworn statement from
the bidder that they have not made a contribution in violation of this
law.
Lobbyists, persons who have received large contracts from the state,
persons who own more than 10 percent of a lobbying business, a senior
manager of a lobbying business, or an immediate family member of any of
those people will be prohibited from appointment to a state public board
or commission which has the authority to award or audit any public
contract.
Amends the use of campaign funds for personal use by specifically iden-
tifying what expenditures of campaign funds are permitted. These include
but are not limited to, promoting the nomination or election of a candi-
date, expenses related to holding public office including the production
and circulation of flyers or other written materials, sponsorship of
local meetings, tickets or donations to local charities, non-profit or
political events, operational legislative expenses, get-well-gifts,
flowers or items of nominal value for constituents. Travel related to
official duties of office and the purchase of office equipment or leas-
ing is permitted.
This bill prohibits the use of campaign funds for personal use for the
benefit of defraying personal living expenses of the candidate or imme-
diate family members. No funds can be used to cover expenses unrelated
to the candidate's campaign or duties as an office holder or increase
the candidates' gross income. No household items, utilities repairs or
improvements of the candidate's personal residence. No salary or fee
expenses that exceed fair and reasonable market value, tuition payments,
dues, fees, or expenses for private clubs or non-political organiza-
tions, automobile purchases or leases, or cell phone equipment not used
solely for campaign purposes.
No funds shall be used for tickets to sporting events or to pay attor-
ney's fees associated with defending against any civil or criminal pros-
ecution for alleged violations of law that have occurred while holding
office or as a candidate.
 
JUSTIFICATION:
Recent lobbying scandals at the national level have highlighted the
potential for inappropriate and sometimes illegal influence by lobbyists
over government officials. In the past, two state legislators and one
top-ranking Pataki Administration official have been sent to prison and
another lawmaker resigned in disgrace for violating the public trust. In
order to restore that trust, it is essential that New York adopt strict
standards of behavior for its public officials, and enforce those stand-
ards in a vigilant and consistent manner.
New York, in comparison with other states, has not been a leader in
terms of adopting strong ethics standards for our public officials.
This legislation would increase the amount of information shared with
the public regarding relationships between lobbyists and legislators and
bring much needed sunlight into our governmental process. The first
provision of this legislation addresses difficulties in determining the
extent of lobbyists' contributions to political campaigns. In the wake
of the Abramoff scandal at the national level, it is clear that such
contributions are often given by lobbyists with the goal of inappropri-
ately or illegally influencing the governmental decision making process.
This legislation would reveal any such relationship to the public.
The next two provisions address issues of business employment relation-
ships between lobbyists and public officials or their families. Because
the New York state legislature is officially a part time job, New York
State legislators are often employed in positions with law firms that do
business with lobbying firms. These relationships should be disclosed to
the public. Similarly, the public has a right to know if close relatives
of legislators are employed as lobbyists, to citizens who are in a posi-
tion to evaluate whether such relationships result in inappropriate
influence over a government decision making.
This bill also addresses a number of concerns with how campaign funds
are raised and expended. Currently, New York's election law( allowing
candidates to spend campaign funds for "any lawful purpose,' is among
the most lax in the nation. While spending campaign funds for personal
use is technically prohibited, the lack of any definition for what
constitutes a personal use renders the provision meaningless. This
shortcoming in the law is striking when compared to the detailed
restrictions issued by the Federal Election commission. And when it is
combined with the provision that allows elected officials to retain
campaign funds for any use related to the holding of public officer it
gives legislators virtual carte blanche for expenditures that are, at
best, tangentially related to their campaigns and official duties.
Examples of successful, unsuccessful or former candidates using excess
campaign funds for luxury vehicles, sky boxes, extravagant meals, inter-
national travel and home improvements have regularly appeared in newspa-
pers across the state. There is a growing and justifiable public percep-
tion that campaign funds are being used to enhance the post election
lifestyles of candidates for public office. Such largesse turns the
ideal of representatives serving the public on its head.
Campaign donors have a reasonable expectation that their contributions
will be used for the candidate's election efforts and the execution of
his or her duties. They do not expect their contributions to subsidize
personal spending. This legislation addresses these abuses while
preserving elected officials' ability to fluid the legitimate work of
their offices.
By adding a detailed list, both in generalities and specific examples,
to the current language, the line as to what can and cannot be done is
brightly drawn. In addition to the obvious need to spend campaign funds
on campaigns, the expanded definition makes it clear that expenditures
related to holding public office are restricted to those costs that
would not otherwise be incurred if an individual was a private citizen.
The bill also requires campaign committees to identify contributions
from lobbyists registered with the Temporary State Lobbying Commission.
This is in response to concerns that past changes in the interpretation
of what constitutes an illegal gift by the commission will result in the
use of campaign funds from lobbyists in place of the prohibited gifts
from lobbyists. coupled with the more stringent standard for the
personal use of campaign funds, the detailing of lobbyists contributions
will make it all the more difficult to justify such expenditures.
Finally the bill prohibits the soliciting or receiving of contributions
for a campaign for state or federal office while in a senior policy
position in the executive branch. This is in response to the past
disclosure that the head of an executive agency who acknowledged that he
was not a candidate for any office, continued to raise and spend
campaign funds to enhance his life style. To engage in such actions
while overseeing an industry which is actively and at great expense
lobbies state government, at the very least gives the impression that
favorable decisions were being sold and, true or not, feeds public cyni-
cism. The legislation, again in conjunction with the new, more clearly
delineated limits on the use of campaign funds, prohibits such misuse of
campaign funds.
 
LEGISLATIVE HISTORY:
2023-24: S.2130/A.1391 Ethics
2021-22: S.940/A.2437 Ethics
2019-20: S.2957/A.7732 Ethics
2017-18: S.5473 Finance Comm
2015-16: S.2505A Finance Comm
2013-14: S.3271A/A.2020A Govt Ops
2011-12: S.3053 Finance Comm
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law, except that various sections
of the bill take effect at various different dates, with provisions.

Statutes affected:
S2135: 1-c legislative law, 1-h legislative law, 1-j legislative law, 14-102 election law, 14-102(1) election law, 74 public officers law, 74(3) public officers law