NYC Campaign Finance Board to Hold Hearing on Disclosure of Independent Expenditures

Last November, New York City voters overwhelmingly approved a Charter revision proposal to require the disclosure of independent campaign expenditures in New York City elections.

The New York City Campaign Finance Board (CFB) is holding a hearing this coming Thursday, March 10^th, to hear comments as it moves froward on developing its rules to implement the charter revision.

For the first time, spending by unions, corporations or individuals to advocate for or against a candidate will be regulated and overseen by the CFB. But it not clear exactly what these new disclosure and disclaimer requirements will really mean.

The Charter amendment provides some direction, by defining the term “independent expenditure”; requiring CFB disclosure by individuals/entities making independent expenditures aggregating $1,000 or more “in support of or in opposition to” any City candidate or proposal; requiring entities making independent expenditures to disclose the identity of contributors; requiring campaign communications (written, broadcast or other) to identify who paid for them.

The CFB may assess civil penalties of up to $10,000 per violation, and intentional violations may be prosecuted as misdemeanors.

What is clear is that many political participants who have never before been subject to the CFB’s jurisdiction will be in the future.

Labor union leaders, for example, are concerned that the CFB will attempt to regulate communications meant only for their members. They argue that any regulation that attempts to interfere with their right to communicate with their membership would violate the First Amendment.