McDonald v. New York City Campaign Finance Board

40 Misc. 3d 826
CourtNew York Supreme Court
DecidedMay 1, 2013
StatusPublished
Cited by2 cases

This text of 40 Misc. 3d 826 (McDonald v. New York City Campaign Finance Board) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McDonald v. New York City Campaign Finance Board, 40 Misc. 3d 826 (N.Y. Super. Ct. 2013).

Opinion

OPINION OF THE COURT

Kathryn E. Freed, J.

Plaintiffs seek a declaratory judgment and move for a preliminary injunction, enjoining defendants from enforcing section 3-719 (2) (b) of the Administrative Code of the City of New York, which purports to extend the voluntary contribution limits and restrictions applicable to candidates who have elected to receive public matching funds pursuant to the New York City Campaign Finance Act, to “non-participating” candidates who are therefore, ineligible for those public matching funds.

Defendants cross-move pursuant to section 3211 (a) (7) of the Civil Practice Law and Rules to dismiss the verified complaint on the grounds that it fails to state a cause of action. Additionally, the Attorney General of the State of New York (hereinafter AG) moves for leave to file and argue a brief in the capacity of “amicus curiae” in opposition to plaintiffs’ motion and in support of defendants’ cross motion to dismiss.

Plaintiff George McDonald (plaintiff) is a candidate for the office of mayor in the 2013 elections for the City of New York. Plaintiff McDonald 2013 is the political committee that George McDonald has authorized to receive contributions and make expenditures for him in the aforementioned 2013 elections, both primary and general. Defendant City of New York (the City) is a [828]*828municipal corporation pursuant to the laws of the State of New York. Defendant New York City Campaign Finance Board (CFB), is the agency of the City that administers the Campaign Finance Act (CFA).

Oral argument in the within matter was heard before this court on February 25, 2013. It should be noted that the AG’s motion to proceed in the capacity of amicus curiae was granted on consent at that time. It should also be noted that in rendering the instant written decision, the court finds it both instructive and necessary to explore the legislative history relevant to this case.

State Legislative History

The legislature enacted the first iteration of what is now article 14 of the Election Law in the New York State Campaigns, Elections and Procedure Law of 1974. That law set forth a regulatory scheme for campaign expenditure limits, reporting requirements and restricted contribution limits applicable to all primary, general and special elections for state and local public offices held in the State of New York. Additionally, it established the State Board of Elections to administer and enforce these laws.

Election Law § 479, as added by Laws of 1974, chapter 604, § 1, specifically addressed contribution limits. This section was subsequently repealed and later reenacted in the Laws of 1976, chapter 577. The language of section 479, as passed in 1976, is now reflected in the language of section 14-114 of the current Election Law, although it has undergone substantial legislative changes.

In 1992, the state legislature passed the “Election Reform Act of 1992” (L 1992, ch 79), which amended areas of the Election Law that related to ballot access, the political calendar, voter registration, contribution limits and other election issues. Section 14-114 was also amended. The previous formula for contributions sometimes allowed for large contributions for both statewide elections and also for New York City citywide offices. The legislature amended section 14-114, setting a ceiling on contribution limits to $12,000 in primaries and $25,000 in general elections for statewide offices, and also the New York City positions of mayor, comptroller and city council president (now public advocate).

The current section 14-114 sets contribution and receipt limitations on candidates for all nominations and elections for pub-[829]*829lie offices. These limitations vary pursuant to formulas calibrated on the basis of party enrollment in primary elections and on voter registration for general elections. It should be noted that no special ceilings were set for either New York City Council or borough president elections, other than the general statewide restrictions of $50,000 for public offices, or a lesser amount based on the number of voters for said election multiplied by $.05.

Other calculations depend on whether the contributor is a close relative of the candidate. Additionally, contribution limitations, both máximums and mínimums, are imposed for state and local elections, including State Senate and State Assembly. Recalculations are required quadrennially based on the cost of living (see Election Law § 14-114 [1] [a], [b], [c]). Funds of the candidate and the candidate’s spouse spent on the campaign are not considered contributions and thus are not subject to contribution limits (see Election Law §§ 14-100 [9] [3]; 14-114 [8]).

City Legislative History

In 1988, the New York City Council first established a system of public financing for city elections, known as the City’s “Campaign Finance Act.” Said act was adopted as Local Law No. 8 (1988) of City of New York and codified at Administrative Code § 3-701 et seq. The CFA set up a voluntary system whereby participating candidates agreed to limit contributions from individual contributors in return for which they would receive matching public funds. Additionally, candidates agreed to file various information concerning those contributors with the CFB. This act matched dollar for dollar the first $1,000 for participating candidates. However, it did not impose limits on nonparticipating candidates.

The CFA has undergone several subsequent amendments. In 1998, participating candidates were prohibited from accepting contributions from corporations (see Administrative Code § 3-703 [1] [1]). In 2004, the City Council passed Local Law No. 60 which, for the first time, directed nonparticipating candidates to abide by the same contribution limitations as those imposed on participating candidates, pursuant to Administrative Code § 3-703 (1) (f). Additionally, the Council extended the prohibition against corporate contributions to nonparticipating candidates (see Administrative Code § 3-703 [1] [1]).

In 2007, the Council extended the prohibition on contributions to include limited liability companies and partnerships, and imposed reduced limitations on contributors “doing busi[830]*830ness with the city” (see Local Laws Nos. 34, 67 [2007] of City of NY). These restrictions were extended to also include nonparticipating candidates (see Administrative Code § 3-719 [2] [b]). The current contribution limits for both primary and general elections combined, per contributor, are $4,950 for mayor, public advocate or comptroller, $3,850 for borough president and $2,750 for council members. Currently, participating candidates receive public funds at a six-to-one matching rate for the first $175 per allowable contributor.

Position of the Parties Plaintiffs Position

Plaintiff acknowledges that the City can set limits on contributions on publically funded candidates, since said candidates have agreed to such limitations in exchange for receiving public funds. However, he argues that the City cannot set limitations on contributions for nonparticipating candidates who have not agreed to any such limitations, and who are governed solely by Election Law article 14, which preempts the City’s contribution limitations.

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Cite This Page — Counsel Stack

Bluebook (online)
40 Misc. 3d 826, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonald-v-new-york-city-campaign-finance-board-nysupct-2013.