CAMPAIGN FINANCE REFORM COMMISSION December 1, 2019 The Honorable Andrew M. Cuomo Governor of the State of New York State Capitol Albany, New York 12224 The Honorable John J. Flanagan Minority Leader of the New York State Senate Legislative Office Building, Room 909 Albany, NY 12247 The Honorable Carl E. Heastie Speaker of the New York State Assembly Legislative Office Building, Room 932 Albany, New York 12248 The Honorable Brian Kolb Minority Leader of the New York State Assembly Legislative Office Building, Room 933 Albany, NY 12248 The Honorable Andrea Stewart-Cousins Temporary President and Majority Leader of the New York State Senate Legislative Office Building, Room 907 Albany, New York 12247 Dear Governor Cuomo, Minority Leader Flanagan, Speaker Heastie, Minority Leader Kolb, and Majority Leader Stewart-Cousins: We are pleased to submit this report on behalf of the Campaign Finance Reform Commission. Pursuant to Part XXX of Chapter 59 of the Laws of 2019, this report sets forth the Commission’s recommendations with respect to creation of a public campaign finance system, adjacent reforms to the New York State Election Law, and related and necessary reforms to New York’s electoral processes to provide for the most robust yet feasible public campaign finance system in the nation. In furtherance of its statutory mandate, the Commission considered a broad range of pertinent data, beginning with the factors delineated in the statute. The Commission held public hearings that were broadcast live over the Internet and are archived on the website which is available at: https://campaignfinancereform.ny.gov/hearings-and-meetings. The Commission carefully reviewed the public testimony and extensive written submissions received in connection with the question of creating a public campaign finance system for New York State’s statewide and legislative elected officials. The enclosed report contains our findings, determinations and recommendations, which were adopted by the members of the Commission on November 25, 2019. Respectfully submitted, Henry Berger Mylan Denerstein Kimberly Galvin DeNora Getachew Jay Jacobs John Nonna David Previte Crystal Rodriguez Rosanna Vargas CAMPAIGN FINANCE REFORM COMMISSION Report to the Governor and the Legislature Table of Contents MEMBERS OF THE CAMPAIGN FINANCE REFORM COMMISSION ........................................................................................ 1 SUMMARY OF THE COMMISSION’S RECOMMENDATIONS ...... 3 STATUTORY MANDATE ..................................................................... 6 FINDINGS AND DETERMINATIONS ................................................. 8 RECOMMENDATIONS ....................................................................... 17 STATEMENT IN SUPPORT ................................................................ 37 STATEMENTS OF COMMISSIONERS ............................................. 48 APPENDIX A- MEETING SUMMARIES ........................................... 82 APPENDIX B- LEGISLATION, PART XXX OF CHAPTER 59, L. 2019 ...................................................................................................... 138 Members of the Campaign Finance Reform Commission Henry Berger, appointed jointly by the Governor, Assembly Speaker, and the Senate Majority Leader, is an election law attorney with more than 40 years of experience litigating issues in state and national elections. He is also a former Special Counsel for the City of New York. Mylan Denerstein, appointed by Governor Andrew Cuomo, is a litigation partner in the New York office of Gibson, Dunn & Crutcher, and Co-Chair of Gibson Dunn's Public Policy Practice Group. Ms. Denerstein previously served as Counsel to the Governor from 2011 to 2014. Prior to that she served as the Executive Deputy Attorney General for Social Justice and Deputy Commissioner for Legal Affairs for the New York City Fire Department and as a federal prosecutor in the U.S. Attorney's Office for the Southern District of New York. Kimberly Galvin, appointed by Assembly Minority Leader Brian Kolb, is Co-Counsel and Co- Director of the State Board of Elections' Campaign Finance Compliance Unit. Ms. Galvin previously served as Chief of Staff and Counsel to the Republican Leader in the New York State Assembly. DeNora Getachew, appointed by Senate Majority Leader Andrea Stewart-Cousins, is the New York City Executive Director of Generation Citizen. Ms. Getachew was previously Campaign Manager and Legislative Counsel for the Brennan Center's Democracy Program and Policy Director for the Public Advocate's Office. Jay Jacobs, appointed by Governor Andrew Cuomo, is current Chairman of the State Democratic Party and longtime Chairman of the Nassau County Democratic Party. Mr. Jacobs was first elected to the position of Nassau County Democratic Chairman in 2001, and served as the Chairman of the New York State Democratic Committee from 2009 to 2012, returning to the post in 2019. He is also an at large member of the Democratic National Committee. John Nonna, appointed by Senate Majority Leader Andrea Stewart-Cousins, is County Attorney for Westchester county and co-founder of the Democratic Lawyers Council. Mr. Nonna previously served as a Westchester County Legislator and as Mayor of Pleasantville. David Previte, appointed by Senate Minority Leader John Flanagan, is principal attorney at Hinman Straub, PC and former Chief Counsel to the New York State Senate Majority. Crystal Rodriguez, appointed by Assembly Speaker Carl Heastie, is current chief of staff to Buffalo State College President Katherine S. Conway-Turner. Previously, Ms. Rodriguez was the chief diversity officer for the City of Buffalo where she developed the Opportunity Pledge to encourage diversity and provide opportunity to all in Buffalo, and made it easier for businesses to apply for New York State's Minority and Women Owned Business Enterprises (MWBE) certification. Prior to working for the City of Buffalo, she served as a law clerk in the New York State Unified Court System and worked as an adjunct professor at SUNY Buffalo. Rosanna Vargas, appointed by Assembly Speaker Carl Heastie, is currently serving as associate law clerk to a NYC Civil Court Judge in Bronx County criminal court. Prior to that, Ms. Vargas 1 served as the Bronx Democratic Commissioner and later as the President of the Board of Commissioners for the Board of Elections of the City of New York. Ms. Vargas also has commercial litigation experience representing clients in trials, mediations and arbitrations in state and federal courts. 2 SUMMARY OF THE COMMISSION’S RECOMMENDATIONS Part I Campaign contribution limits: this act proposes recommendations, which have the force of law, to lower the campaign contribution limits in Election Law §14-114 for candidates seeking statewide and legislative office. Specifically, the contribution limit for candidates seeking statewide office is now $18,000, reduced from $69,700, divided equally between the primary and general elections. For candidates seeking the office of state senator, the campaign contribution limit is now $10,000, divided equally between primary and general elections; the state Senate contribution limit is reduced from $7,500 in the primary election and $11,800 in the general election. For candidates seeking the office of state assembly member, the campaign contribution limit is now $6,000, divided equally between primary and general elections; the state Assembly contribution limit is reduced from $4,700 in each of the primary and general elections. Note that these lower contribution limits apply equally to both participating and non- participating candidates in the proposed public campaign finance system. Part II Public Campaign Finance System: this act proposes recommendations, which have the force of law, to create a voluntary public campaign finance system for statewide and legislative candidates. Specifically, the program establishes reporting requirements for participating candidates and sets initial eligibility requirements for participation in the program, including registering a candidate’s political committee with the State Board of Elections; meeting all the requirements of law to have his or her name on the ballot, including those contained in Part IV (A) or (B) of our recommendation; having an actual, credible opponent; and complying with procedures for pre-existing campaign funds. Qualifying thresholds: the program requires gubernatorial candidates to secure at least $500,000 in in-state donations from at least in-state 5,000 donors to qualify for participation in the program, sets the qualifying thresholds for the three statewide offices at $100,000 from at least 1,000 donors. For legislative candidates, candidates for state senate must receive $12,000 from at least 150 donors, and candidates for state assembly must receive $6,000 from at least 75 donors. Additionally, legislative thresholds are subject to an adjustment based on the state’s average median income (“AMI”); all districts below the AMI would be lowered to 66.67% of the base threshold, so that the Senate threshold for below-AMI districts would be reduced from $12,000 to $8,000 and for the Assembly the threshold for below-AMI districts would be reduced from $6,000 to $4,000. If the AMI provision is deemed unconstitutional, the Assembly threshold then defaults to $5,000 and a minimum of 75 donors and the Senate threshold then defaults to $10,000 and a minimum of 150 donors for all districts. Caps on public funds: the program establishes the maximum