N.Y. Election Law § 14-208: Audits and repayments

§ 14-208. Audits and repayments. 1. Audits. (a) The PCFB shall audit

and examine all matters relating to the proper administration of this

title and shall complete all such audits no later than one and one-half

years after the election in question. This deadline shall not apply in

cases involving potential campaign-related fraud, knowing and willful

violations of this article, or criminal activity; provided, however, the

PCFB may at any time audit any participating candidate for which it

receives credible reports involving potential campaign-related fraud,

knowing and willful violations of this article, or criminal activity, if

such reports are related to the receipt or use of program funds.

(b) Every participating candidate for statewide office who receives

public funds as provided in this title, and every candidate for any

other office who receives five hundred thousand dollars or greater in

public funds as provided in this title, shall be audited by the PCFB

along with all other candidates in each such race. Such audits shall be

completed within one and one-half years of the election in question.

Participating candidates who do not receive public matching funds as

provided in this title shall not be audited by the PCFB pursuant to this

paragraph.

(c) Except as provided in paragraph (b) of this subdivision, the PCFB

shall select not more than one-third of all participating candidates in

covered elections for audit through a lottery which shall be completed

within one year of the election in question. A separate lottery shall be

conducted for each office. The PCFB shall select senate and assembly

districts to be audited, auditing every candidate in each selected

district, while ensuring that the number of audited candidates within

those districts does not exceed fifty percent of all participating

candidates for the relevant office. The lottery for senate and assembly

elections shall be weighted to increase the likelihood that a district

for the relevant office is audited based on how frequently it has not

been selected for auditing during the past three election cycles. The

PCFB shall promulgate rules concerning the method of weighting the

senate and assembly lotteries, including provisions for the first three

election cycles for each office. The names of candidates selected for an

audit shall not be disclosed unless there is a declared finding of

wrongdoing by the PCFB.

(d) The cost of complying with a post-election audit shall be borne by

the candidate's authorized committee using public funds, private funds,

or any combination of such funds. Candidates who run in any primary or

general election must maintain a reserve of three percent of the public

funds received to comply with the post-election audit.

(e) The PCFB shall issue to each campaign audited a final audit report

that details its findings.

2. Repayments. (a) If the PCFB determines that any portion of the

payment made to a candidate's authorized committee from the fund was in

excess of the aggregate amount of payments that such candidate was

eligible to receive pursuant to this title, it shall notify such

committee and such committee shall pay to the PCFB an amount equal to

the amount of excess payments. Such committee shall first utilize the

surplus for repayment of such sums and then such other funds as it may

have. Provided, however, that if the erroneous payment was the result of

an error by the PCFB, then the erroneous payment will be deducted from

any future payment, if any, and if no future payment is to be made then

neither the candidate nor the committee shall be liable to repay the

excess amount to the PCFB. The candidate and the candidate's authorized

committee are jointly and severally liable for any repayments to the

PCFB.

(b) If the PCFB determines that any portion of the payment made to a

candidate's authorized committee from the fund was used for purposes

other than qualified campaign expenditures and such expenditures were

not approved by the PCFB, it shall notify such committee of the amount

so disqualified and such committee shall pay to the PCFB an amount equal

to such disqualified amount. The candidate, the treasurer, and the

candidate's authorized committee are jointly and severally liable for

any repayments to the PCFB.

(c) If at the end of an election cycle or following a special

election, surplus funds remain in a participating candidate's authorized

committee after all liabilities for qualified campaign expenditures for

such election cycle or special election have been paid, such candidate

and committee shall pay to the fund an amount equal to the surplus, as

defined in subdivision nineteen of section 14-200-a of this title;

provided, however, such candidate may retain an amount of such surplus

that does not include any public matching funds to the extent such

amount does not exceed fifty thousand dollars. No public matching funds

shall be eligible to be retained. The surplus repayment shall in no

event exceed the total amount of public matching funds received. Any

funds raised during any previous election cycle, as described in

subparagraph (iii) of paragraph (i) of subdivision one of section 14-203

of this title, shall be excluded from the calculation of surplus funds

required by this paragraph and shall not count toward the fifty thousand

dollar limit permitted by this paragraph, and such funds may continue to

be retained. Participating candidates shall make such surplus payment

not later than twenty-seven days after all liabilities for the election

have been paid and in any event, not later than the day on which the

PCFB issues its final audit report for the participating candidate's

authorized committee; provided, however, that all unspent public

campaign funds for a participating candidate shall be immediately due

and payable to the PCFB upon a determination by the PCFB that the

participant has delayed the post-election audit. A participating

candidate may make post-election expenditures with public funds only for

routine activities involving nominal costs associated with winding up a

campaign and responding to the post-election audit. Nothing in this

title shall be construed to prevent a candidate or their authorized

committee from using campaign contributions received from private

contributors for otherwise lawful expenditures. Any amounts retained

pursuant to this paragraph in such authorized committee after the

payment required by this paragraph has been made, may be used for any

lawful purpose.

(d) Candidates shall have thirty days to cure any violations

identified by the PCFB in its post-election audit before there may be

any declared findings of wrongdoing.

3. Rules and regulations. (a) The PCFB shall promulgate regulations

for the certification of the amount of funds payable by the comptroller

from the fund established pursuant to section ninety-two-t of the state

finance law, to a participating candidate that has qualified to receive

such payment. These regulations shall include the promulgation and

distribution of forms on which contributions and expenditures are to be

reported, the periods during which such reports must be filed, and the

verification required. The PCFB shall institute procedures which will

make possible payment by the fund within four business days after

receipt of the required forms and verifications.

(b) All rules and regulations promulgated pursuant to this

recommendation shall be promulgated pursuant to the state administrative

procedure act. The PCFB's determinations pursuant to such regulations

and these recommendations shall be deemed final.