Testimony of Amy Loprest, Executive Director of the New York City Campaign Finance Board to the City Council Committee on Governmental Operations

06/20/2019

Good afternoon, Chair Cabrera and members of the Committee on Governmental Operations. My name is Amy Loprest, and I am the Executive Director of the New York City Campaign Finance Board (CFB).

Thank you for the opportunity to provide testimony today on Int. No. 747, sponsored by Chair Fernando Cabrera, and Int. No. 773 and 774 sponsored by Councilmember Keith Powers. The CFB is supportive of all three measures before the committee today. Each bill is based on a Board proposal included among the legislative recommendations in our 2017 Post Election Report, and we are pleased to be discussing them here today.  

Each of the three bills would make simple, but important changes to the Campaign Finance Act that will enhance the matching funds program by further increasing the role of small contributors and further reducing the risk or appearance of corruption.

Int. No. 747 would prohibit the distribution of matching funds to candidates convicted of felonies related to public corruption. As you may recall, one participating candidate for City Council in 2017 had previously served 21 months in prison for mail fraud and conspiracy for steering Council discretionary funds to a nonprofit that were ultimately used to pay staff members for campaign work. He met the threshold to qualify and received public matching funds for his 2017 campaign.

Ensuring individuals with a track record of fraud do not receive public funds is not only good public policy but is fundamental to the integrity of the matching funds program. Connecticut’s Citizens’ Election Program has a similar policy. Under their system, candidates who have previously been convicted of a felony related to that individual’s holding of public office are disqualified from receiving public money. We recommend that where Int. No. 747 references sections of the penal code that are fairly broad, such as wire fraud, language should be added to explicitly tie these crimes to an individual’s actions related to public office or elections.

The Council may also want to consider extending Int. No. 747 to also cover misdemeanors related to corruption, particularly in connection with government funds. Candidates plead to misdemeanors to avoid a felony conviction. A 2013 candidate was recently indicted on seven felony counts related to engaging in a straw donor scheme, admitted to the scheme, and pled to a single misdemeanor charge. The Council should consider extending Int. No. 747 to cover corresponding misdemeanors specifically related to corruption and misuse of government funds. This is a yet another step to maintain public trust in the matching fund program.

Additionally, we urge the Council to consider including a time limit so that people are not permanently barred from receiving public funds once they have reformed. For example, the Council might consider having this apply for five years to misdemeanors and ten years for felony convictions.

Int. No. 773 would amend the definition of business dealings with the city to include uncertified land use applications, which would expand coverage of the Doing Business Database. Currently, the New York City Campaign Finance Act limits contributions from anyone seeking land use approvals once the City Planning Commission has certified the application. But this does not include those who have declared their intent to seek an approval by filing an application, which may be months, or even years, before certification. An applicant could therefore give a maximum contribution after the application is filed but before it is certified. The timing of these contributions suggests that they may have been made with the intent to influence decisions. Int. No. 773 is an effective way to ensure the matching funds program is doing everything it can to curb both corruption and the appearance of corruption.

This bill will ensure the “doing business” restrictions more effectively fulfill their intent. In this spirit, there are further changes to the Act’s “doing business” provisions the Council may want to consider. Some of the land use proposals from the 2019 Charter Revision Commission could require the Council to alter the bill. It is our understanding that this bill’s aim is to move the Doing Business start date to the earliest formal date for a particular project at the start of the Uniform Land Use Review Procedure (ULURP). However, the potential Charter amendment would create a new formal first step in that process, the filing of a Project Information Form. The Council should take this into consideration and amend the bill language to include the Project Information Form before moving the legislation forward.

Additionally, current law keeps those on the Doing Business Database for a ULURP action on the database for 120 days after the Council has completed its disposition of the matter. All other doing business actions require people to remain on the database for one year after the end of the transaction. We suggest the Council consider whether the ULURP coverage period should similarly be extended to one year.

The CFB is happy to work with the Council and relevant staff on other ways to enhance the Doing Business Database process.

Finally, Int. No. 774 would lower the minimum contribution counted towards meeting the threshold for public funds from $10 to $5. Currently, all contributions—even those as low as $1—are eligible for match, but contributions under $10 do not count towards meeting threshold to receive public funds. We have heard from candidates in less-wealthy districts that $10 is a tough ask for many of their supporters. By setting the amount to $5, more residents can participate in helping their favored candidates qualify for matching funds, and more candidates should be able to meet threshold sooner in the election year. Lowering the minimum contribution threshold to $5 is a simple and effective way to engage more New Yorkers in our democratic process.

The CFB is happy to see our legislative recommendations reflected in the legislation being heard today. These bills will further enhance the matching funds program and amplify the voices of everyday New Yorkers.

Thank you for the opportunity to provide testimony today. I’m happy to answer any questions you may have.