Citizens Union Letter to SBOE Regarding Registering and Filing of Political Clubs-1

7/27/2019 Citizens Union Letter to SBOE Regarding Registering and Filing of Political Clubs-1

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New York State Board of Elections40 North Pearl St., Suite 5Albany, New York 12207-2729

Dear Commissioners:

Citizens Union understands the State Board of Elections is considering providingguidance to political clubs to better inform them as to circumstances under whichthey are required to register as political committees and report their campaignfinance receipts and expenditures.

Citizens Union in May released a report entitled Hidden from View: The UnreportedActivity of Political Clubs. The report concludes that between 2009 and 2013, 224political clubs that should have registered and disclosed their campaign activity didnot do so. The report also raises questions about whether the relationshipsbetween certain elected officials and particular clubs results in campaigncoordination between the clubs and candidate committees.

Should the Board proceed with providing guidance as to the circumstancesunder which political clubs should register as political committees anddisclose their campaign activity, Citizens Union respectfully offers the

following recommendations:

1. Most political clubs should register with the State Board as politicalcommittees. The definition of political committee in Article 14, section 100of state election law states that a political committee is, anypolitical club orcombination of one or more persons operating or co-operating to aid orpromote the success of a political party indicating it is inclusive of politicalclubs that assist a political party. The definition further states that politicalclubs that aid or take part in the election or defeat of a candidate for publicoffice or aid or take part in in the election or defeat of a candidate fornomination at a primary election or convention, including all proceedings prior

to such primary election, or of any party position voted for at a primaryelection, or of a candidate for any party position voted for at a primaryelection are political committees. Citizens Union therefore believes mostclubs should register as political committees. Clubs may be exempt fromregistering if they are solely engaged in discussion and advancement of

Citizens Union of the City of New York299 Broadway, Suite 700 New York, NY 10007-1976

phone 212-227-0342 fax 212-227-0345 [email protected] www.citizensunion.orgPeter J.W. Sherwin, Chair Robert Abrams, CUF President Dick Dadey, Executive Director
https://app.e2ma.net/app/view:CampaignPublic/id:1407871.13063634005/rid:d19d8c1f4ed810a982b07a5999498733http://www.citizensunion.org/www/cu/site/hosting/Reports/Citizens_Union_Hidden%20from%20View_The_Undisclosed_Campaign_Activity_of_Political_Clubs.pdfhttp://www.citizensunion.org/www/cu/site/hosting/Reports/Citizens_Union_Hidden%20from%20View_The_Undisclosed_Campaign_Activity_of_Political_Clubs.pdfhttp://www.citizensunion.org/https://app.e2ma.net/app/view:CampaignPublic/id:1407871.13063634005/rid:d19d8c1f4ed810a982b07a5999498733http://www.citizensunion.org/www/cu/site/hosting/Reports/Citizens_Union_Hidden%20from%20View_The_Undisclosed_Campaign_Activity_of_Political_Clubs.pdfhttp://www.citizensunion.org/www/cu/site/hosting/Reports/Citizens_Union_Hidden%20from%20View_The_Undisclosed_Campaign_Activity_of_Political_Clubs.pdfhttp://www.citizensunion.org/


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Citizens Union 6/18/2013Letter to the State Board of Elections Page 2

political questions or principles without any connection with any vote andwithout aiding or promoting the success of a political party. We presume veryfew if any clubs are discussing issues without seeking to aid or promote thesuccess of a political party or candidates for elected office, primarynomination or party positions as this is at the core of their purpose as clubs.

2. The Board should make clear what type of committees political clubsshould register based on their planned activity. Our report revealedthat among the 210 committees with club in their name that are registeredwith the State Board, 90 registered under the committee category ofOthers, 63 were registered as PACs, 12 as authorized candidatecommittees, 11 as party county committees, 14 as constituted countycommittees, and 19 as duly constituted subcommittees of a countycommittee. Four clubs were registered as housekeeping committees withinthese types of committees, and one club was a state constituted committeehousekeeping committee. It should be made clear to clubs that differentcommittees have different requirements. For example, clubs that register as

independent committees are very limited in their ability to coordinate withcandidates.

3. Political clubs should be required to register before they engage inany financial transactions. Citizens Union believes this practice isconsistent with Article 14-118 of Election Law1 and the Boards own 2012campaign finance handbook that states in reference to the CF-02 registrationform, this form must be filedprior to receiving or expending any funds.2

4. The Board should make clear which activities trigger filing of periodiccampaign finance reports. Section 14-102 of state election law states therequirements for political committees to file periodic reports: The treasurer ofevery political committee which, or any officer, member or agent of any suchcommittee who, in connection with any election, receives or expends anymoney or other valuable thing or incurs any liability to pay money or itsequivalent shall file statements swornat the times prescribed by this articlesetting forth all the receipts, contributions to and the expenditures by andliabilities of the committee. This provision does not make clear to clubswhich activities are considered in connection with an election. CitizensUnion believes petitioning, leafleting, phone calls, door knocking and other

1 Article 14-118 of Election Law states, No officer, member or agent of any political committee shall

receive any receipt, transfer or contribution, or make any expenditure or incur any liability until thecommittee shall have chosen a treasurer and depository and filed their names in accordance withthis subdivision. There shall be filed inthe office in which the committee is required to file its statements under section 14-110 of thisarticle, within five days after the choice of a treasurer and depository, a statement giving the nameand address of the treasurer chosen, the name and address of any person authorized to sign checksby such treasurer, the name and address of the depository chosen and the candidate or candidatesor ballot proposal or proposals the success or defeat of which the committee is to aid or take part;2 Campaign Finance Handbook 2012. New York State Board of Elections. How to Register and ObtainFile ID# and Pin, Page 9. Available at:http://www.elections.ny.gov/NYSBOE/download/finance/hndbk2012.pdf

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grassroots activities should be considered expenditures in connection with anelection even if conducted by volunteers if a clubs physical headquarters isused as a staging area. If this is the case, we believe the clubs physicalheadquarters are, at least in part, an expense in connection with anelection, which would trigger a filing. Citizens Union also notes that if a club

spends any money in connection with an election it must report all of itsreceipts and expenditures, even those not in connection with an election.3 If aclub only used its headquarters for conducting issue forums, hosting speakers,community events or making endorsements, we do not believe theseactivities should be considered in connection with an election because theydo not cross the line into active campaigning for a party or candidate. Clubsshould be informed that election law requires that even if political clubs do notengage in any activity in a given period, as political committees they are stillrequired to file non-activity reports for the reporting period (albeit this israre, as even interest and bank charges, for example, are considered to beactivity even if no expenditures are made or receipts are received).

5. The Board should clarify what constitutes coordination betweenpolitical clubs and candidate committees, and more generallybetween political committees and candidate committees. Coordinationbetween a political club and candidate committee occurs when a candidate orhis or her agents authorize, request, suggest, foster or cooperate in any suchcampaign activity. State Election Law Article 14-100(9)(3) alludes to this bystating what independent activity is: For purposes of this article, the termindependent of the candidate or his agents or authorized politicalcommittees shall mean that the candidate or his agents or authorizedpolitical committees did not authorize, request, suggest, foster or cooperate inany such activity. However, it is not known which actions specificallyindicate a candidate or his agents authorized, requested, suggested, fosteredor cooperated in campaign activity of an independent committee.

The Board should provide factors or indicia that may constitute coordinatedactivity between candidates and third-party actors. The Board should alsoindicate how those factors will be assessed to determine if coordinationoccurred (for example, will the factors be triggers denoting coordinatedactivity or should they be considered in the aggregate given the totality of thecircumstances). Likewise the Board should consider whether a rebuttablepresumption standard should apply to determining if coordination took place.

3 NYS Election Law 14-102(1) states, Such statements shall include the dollar amount ofany receipt,contribution or transfer, or the fair market value ofany receipt, contribution or transfer, which isother than of money, the name and address of the transferor, contributor or person from whomreceived, and if the transferor, contributor or person is a political committee; the name of and thepolitical unit represented by the committee, the date of its receipt, the dollar amount ofeveryexpenditure, the name and address of the person to whom it was made or the name of and thepolitical unit represented by the committee to which it was made and the date thereof, and shallstate clearly the purpose of such expenditure.

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Citizens Union believes that the Board should identify triggers that alone or inthe aggregate would result in a finding of coordination. We further believe arebuttable presumption standard should be adopted so that committeeswould have to prove otherwise should the State Board believe coordinationoccurred.

We thank you for your consideration of our recommendations and welcomecontinued discussion on this issue.

Regards,

Dick DadeyExecutive Director

Alex CamardaDirector of Public Policy and Advocacy

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Citizens Union Letter to SBOE Regarding Registering and Filing of Political Clubs-1

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