Assembly Speaker Introduces Optional Partial Public Financing Bill

Assembly Speaker Sheldon Silver has introduced the 2013 Fair Elections Act (A.4980), which would establish an optional public financing system for qualified candidates for state elective offices and constitutional convention delegates. It would put in place a program similar to the one that New York City has adopted, with a 6-1 public funding match.

The bill is similar to his 2012 bill, which made it to the Assembly floor but was not voted on.

The only office that would be impacted in the next round of state elections (2104) would be the Comptroller’s office.   State legislative candidates would be eligible to participate beginning in 2016, and in 2018 all state offices would be eligible to participate.

In order to be eligible to receive public funds, a candidate would have to (1) get on the ballot; (2) elect to participate; (3) meet the eligibility threshold; (4) agree to meet reporting requirements; and (5) agree to only accept fund from a single participating campaign committee.

A candidate for Governor would have to raise at least $650,000 in at least 6,500 matchable individual contributions of no more than $250 each.

A candidate for State Senate would have to raise at least $20,000 from at least 200 matchable contributions of no more than $250 each.

A candidate for Assembly would have to raise at least $10,000 from at least 100 matchable contributions of no more than $250.

In order to receive public funds for a primary election, a candidate must agree to receive public funding for the general election.

The bill restricts what campaign funds can be spent on.  “Qualified campaign expenditures” can only be made during the year in which the election is to be held, and cannot be used for expenditures in violation of law, for payments to a candidate or to a relative of the candidate (or to any business entity of which such a person is an officer, employee or has a significant ownership interest, to challenge an opponent’s petitions or certificates, for non-campaign related food, drink, or entertainment, or for gifts.

The bill also imposes a new contribution limit of $2,000 per contributor for participating candidates.

It also limits the total amount that participating candidates can receive in public funds, and limits what the state party can spend in support of such candidates.

This new law would be overseen by the Campaign Finance Board, and newly created unit within the State Board of Elections.  It will be comprised of five members – one by the Governor, and one by each of the four legislative leaders.

Participating candidates will be required to participate in at least one debate before the primary election and in at least one debate before the general election, unless they are running unopposed.

In terms of paying for the program, the bill provides three funding options:

  • a $5 income tax check off;
  • an additional 10% surcharge on recoveries for fraudulent practices relating to stocks, bonds and other securities; and
  • if the first two sources of funding are lacking, the remaining funds will come from the general fund.