Int. No. 904
By Council Members Morano and Louis
A Local Law to amend the administrative code of the city of New York, in relation to limiting the circumstances in which participating candidates and their principal committees must repay public matching funds to the campaign finance board
Be it enacted by the Council as follows:
Section 1. Subdivision 2 of section 3-710 of the administrative code of the city of New York, as amended by local law number 69 for the year 1990 and paragraphs b and (c) of such subdivision as amended by local law number 67 for the year 2007, is amended to read as follows:
2. (a) If the board determines that any portion of the payment made to the principal committee of a participating candidate from the fund was in excess of the aggregate amount of payments which such candidate was eligible to receive pursuant to this chapter and that such candidate or committee committed fraudulent acts in obtaining such excess payment, it shall notify such committee and such committee shall pay to the board an amount equal to the amount of excess [payments] payment.
[b.] (b) If the board determines that [any portion of the payment made to a principal committee of a participating candidate from the fund was used for purposes other than qualified campaign expenditures] it was known, or was reasonably knowable, to a participating candidate or principal committee that such candidate or committee used any portion of the payment made to such committee for purposes other than qualified campaign expenditures, it shall notify such candidate and committee of the amount so disqualified and such candidate and committee shall pay to the board an amount equal to such disqualified amount; provided, however, that in considering whether or not a participating candidate [shall be required to pay to] is personally liable for paying to the board such amount or an amount less than the entire disqualified amount, the board shall act in accordance with the following: (i) where credible documentation supporting each qualified campaign expenditure exists but is incomplete, the board shall not impose [such] personal liability for such expenditure; and (ii) where there is an absence of credible documentation for each qualified campaign expenditure, the board may impose personal liability upon a showing that such absence of credible documentation for such expenditure arose from a lack of adequate controls including, but not limited to trained staff, internal procedures to follow published board guidelines and procedures to follow standard financial controls.
(c) If the total of contributions, other receipts, and payments from the fund received by a participating candidate and [his or her] such candidate’s principal committee exceed the total campaign expenditures of such candidate and committee for all covered elections held in the same calendar year or for a special election to fill a vacancy such candidate and committee shall use such excess funds to reimburse the fund for payments received by such committee from the fund during such calendar year or for such special election. No such excess funds shall be used for any other purpose, unless the total amount of the payments received from the fund by the principal committee has been repaid.
§ 2. Paragraphs (a) and (b) of subdivision 3 of section 3-710 of the administrative code of the city of New York, paragraph (a) as amended by local law number 168 for the year 2016 and paragraph (b) as amended by local law number 128 for the year 2019, are amended to read as follows:
(a) If a participating candidate whose principal committee has received public funds is disqualified by a court of competent jurisdiction on the grounds that such candidate committed fraudulent acts in order to obtain a place on the ballot and such decision is not reversed, such candidate and [his or her] such candidate’s principal committee shall pay to the board an amount equal to the total of public funds received by such principal committee.
(b) If a participating candidate whose principal committee has received public funds fails to actively campaign for election to a covered office, such candidate and [his or her] such candidate’s principal committee shall pay to the board an amount equal to the total of public funds received by such principal committee. For the purposes of this subdivision, the term “actively campaign for a covered office” [shall mean] means activities that include, but are not limited to, filing designating or nominating petitions for inclusion on the ballot, raising and spending funds for nomination for election or election to a covered office, seeking endorsements, and broadly soliciting votes.
§ 3. Subdivision 4 of section 3-710 of the administrative code of the city of New York, as amended by local law number 67 for the year 2007, is amended to read as follows:
4. (a) No claim for the repayment of public funds shall be made against any candidate or principal committee without written notice to such candidate or committee, issued in a timely manner pursuant to all of the requirements of subdivision [one] 1 of this section, and an opportunity to appear before the board. Any such repayment claim shall be based on a final determination issued by the board following an adjudication before the board consistent with the procedures set forth in section 1046 of the charter unless such procedures are waived by the candidate or principal committee. Such final determination shall be included in and made part of the final audit which shall be issued within thirty days of such determination.
(b) If a candidate brings a special proceeding challenging the board’s final determination concerning any such repayment claim under article 78 of the civil practice law and rules in New York state supreme court, the board shall stay enforcement of such claim until the court issues a judgment under section 7806 of the civil practice law and rules.
§ 4. This local law takes effect 120 days after it becomes law.
TBM
LS #20299
5/12/2026 4:41 PM