S 10663: Relates to reporting of certain independent expenditures and penalties for failing to report such expenditures; includes certain communications which use language or imagery substantially associated with a candidate's campaign, platform, background, or publicly stated positions, such that a reasonable viewer would understand the communication as designed to influence the outcome of such general, special, or primary election in the definition of independent expenditure.

  
  STATE OF NEW YORK ________________________________________________________________________ 10663  IN SENATE July 15, 2026 ___________ Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the election law and the New York city charter, in relation to independent expenditures The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (a) of subdivision 1 of section 14-107 of 2 election law, as amended by chapter 595 of the laws of 2025, is amended 3 to read as follows: 4 (a) "Independent expenditure" means an expenditure made by an inde- 5 pendent expenditure committee in the form of (i) an audio or video 6 communication via broadcast, cable or satellite, (ii) a written communi- 7 cation via advertisements, pamphlets, circulars, flyers, brochures, 8 letterheads or (iii) other published statements, where such expenditure 9 is conveyed to five hundred or more members of a general public audi- 10 ence, or in the form of any paid internet or digital advertisement 11 targeted to fifty or more members of a general public audience, or in 12 the form of a public-facing website, which: (i) irrespective of when 13 such communication is made, contains words such as "vote," "oppose," 14 "support," "elect," "defeat," or "reject," which call for the election 15 or defeat of the clearly identified candidate, (ii) refers to and advo- 16 cates for or against a clearly identified candidate or ballot proposal 17 on or after January first of the year of the election in which such 18 candidate is seeking office or such proposal shall appear on the ballot, 19 or (iii) within sixty days before a general or special election for the 20 office sought by the candidate or thirty days before a primary 21 election[,]: 22 (A) includes or references a clearly identified candidate; 23 (B) uses such candidate's name, voice, likeness, or another descriptor 24 that would be understood by a reasonable viewer to refer to such candi- 25 date; or 26 (C) regardless of whether the communication identifies or references a 27 clearly identified candidate, uses language or imagery substantially 28 associated with a candidate's campaign, platform, background, or public- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15921-01-6 
 S. 10663 2 1 ly stated positions, such that a reasonable viewer would understand the 2 communication as designed to influence the outcome of such general, 3 special, or primary election. An independent expenditure shall not 4 include communications where such candidate, the candidate's political 5 committee or its agents, a party committee or its agents, or a consti- 6 tuted committee or its agents or a political committee formed to promote 7 the success or defeat of a ballot proposal or its agents, did authorize, 8 request, suggest, foster or cooperate in such communication. 9 § 2. Subdivision 3 of section 14-126 of the election law, as amended 10 by chapter 87 of the laws of 2020, is amended to read as follows: 11 3. (a) Any person who falsely identifies or [knowingly] fails to iden- 12 tify any independent expenditure as required by subdivision two of 13 section 14-107 of this article or any political communication as 14 required in section 14-106 of this article shall be subject to a civil 15 penalty up to [one thousand dollars] one million dollars per day of the 16 violation or up to the cost of the communication, whichever is greater, 17 in a special proceeding or civil action brought by the state board of 18 elections chief enforcement counsel pursuant to paragraph (a) of subdi- 19 vision five of section 3-104 of this chapter. For purposes of this 20 subdivision, the term "person" shall mean a person, group of persons, 21 corporation, unincorporated business entity, labor organization or busi- 22 ness, trade or professional association or organization or political 23 committee. 24 (b) Any person who knowingly and willfully falsely identifies or 25 knowingly and willfully fails to identify any independent expenditure as 26 required by subdivision two of section 14-107 of this article or any 27 political communication as required in section 14-106 of this article 28 shall be subject to a civil penalty of up to five million dollars per 29 day of the knowing and willful violation, or up to the cost of the 30 communication, whichever is greater, in a special proceeding or civil 31 action brought by the state board of elections chief enforcement counsel 32 pursuant to paragraph (a) of subdivision five of section 3-104 of this 33 chapter. For purposes of this subdivision, the term "person" shall mean 34 a person, group of persons, corporation, unincorporated business entity, 35 labor organization or business, trade or professional association or 36 organization or political committee. 37 (c) Such chief enforcement counsel shall further be empowered to 38 pursue injunctive relief to enjoin an unlawful disclosure or communi- 39 cation described in this subdivision. 40 (d) Where a person knowingly and willfully falsely identifies or know- 41 ingly and willfully fails to identify any independent expenditure as 42 required by subdivision two of section 14-107 of this article or any 43 political communication as required in section 14-106 of this article 44 and an individual is injured thereby, such individual may bring an 45 action for actual damages, punitive damages, injunctive relief, reason- 46 able attorneys fees and costs, and other such remedies as a court may 47 deem appropriate. 48 § 3. Subparagraph (a) of paragraph 15 of subdivision a of section 1052 49 of the New York city charter is amended by adding three new clauses 50 (iv), (v) and (vi) to read as follows: 51 (iv) "Direct donor" shall mean a donor that is not itself a political 52 committee or political action committee. 53 (v) "Political committee" shall mean as defined in subdivision one of 54 section 14-100 of the election law. 55 (vi) "Political action committee" shall mean as defined in subdivision 56 sixteen of section 14-100 of the election law. 
 S. 10663 3 1 § 4. Clauses (i), (ii), (iii) and (iv) of subparagraph (c) of para- 2 graph 15 of subdivision a of section 1052 of the New York city charter, 3 as amended by local law number 41 of the city of New York for the year 4 2014, are amended to read as follows: 5 (i) (A) on any written, typed, or printed communication, or on any 6 internet text or graphical advertisement, in a conspicuous size and 7 style, the words "Paid for by" followed by the name of the individual or 8 the name of the entity, the name of its owner, if any, and the name of 9 its chief executive officer or equivalent, if any, and, following the 10 words "Top Three Donors," a list of the three largest aggregate donors 11 to such entity in the twelve months preceding the election, except that 12 no donor that contributed less than five thousand dollars to the 13 disclosing entity in the twelve months preceding the election shall be 14 included in such disclosure, and except that if such entity has only one 15 or two donors that contributed at least five thousand dollars the words 16 "Top Three Donors" shall be replaced by the words "Top Donor" or "Top 17 Donors" as applicable, and except that expenditures funded by an indi- 18 vidual or where no such donors exist need not include the words "Top 19 Three Donors" or a list of donors, and except that this clause shall not 20 apply to communications required to include a disclosure pursuant to 21 subdivision sixteen of section 3-703 of the administrative code. 22 Provided, however, that in the event that one of the top donors required 23 to be listed under this clause is a political committee or political 24 action committee, such communication, text, or advertisement shall then 25 list the three largest aggregate donors, as described in this clause, of 26 such committee. In the event that one of the top donors to the political 27 committee or political action committee, having contributed at least 28 five thousand dollars to such committee in the twelve months preceding 29 the election, is yet another political committee or political action 30 committee, such communication, text, or advertisement shall be required 31 to list the top three donors of such other committee, and so on and so 32 forth, until the donors of all such political committees or political 33 action committees are listed in the manner required herein for direct 34 donors. 35 (B) If the third largest donor to the disclosing entity has donated 36 the same amount in the twelve months preceding the election as the 37 fourth largest donor during such period, such entity may choose which 38 three donors to include so long as no donor is included that has donated 39 less in the twelve months preceding the election than any other donor 40 that is not included. Such written disclosures shall further include, 41 in a conspicuous size and style, the following words: "More information 42 at nyc.gov/FollowTheMoney." The board may, at its discretion, designate 43 a website other than nyc.gov/FollowTheMoney as the website that must be 44 included in such disclosure. All disclosures required by this clause 45 shall be enclosed in a box within the borders of the communication or 46 advertisement that contains only those disclosures required by this 47 subparagraph, the rules of the board, the election law, or any other 48 applicable law or rule. For the purposes of this clause, the "owner" of 49 an entity shall be an individual or entity with a greater than fifty 50 percent ownership interest in such entity. The disclosures required by 51 this clause shall not apply to bumper stickers, pins, buttons, pens, and 52 similar small items upon which such disclosures cannot be reasonably 53 printed; 54 (ii) (A) on any paid television advertisement or paid internet video 55 advertisement, clearly spoken in a pitch and tone substantially similar 56 to the rest of the advertisement, at the beginning or end of the adver- 
 S. 10663 4 1 tisement, the words "paid for by" followed by the name of the individual 2 or the name of the entity, and, in a conspicuous size and style simul- 3 taneous with such spoken disclosure, the written words "Paid for by" 4 followed by the name of the individual or the name of the entity, 5 followed by the words "The top three donors to the organization respon- 6 sible for this advertisement are," followed by a list of the three larg- 7 est aggregate donors to such entity in the twelve months preceding the 8 election, except that no donor that contributed less than five thousand 9 dollars to the disclosing entity in the twelve months preceding the 10 election shall be included in such disclosure, and except that if such 11 entity has only one or two donors that contributed at least five thou- 12 sand dollars the words "top three donors" shall be replaced by the words 13 "top donor" or "top donors" as applicable, and except that expenditures 14 funded by an individual or where no such donors exist need not include 15 the words "The top three donors to the organization responsible for this 16 advertisement are" or a list of donors, and except that this clause 17 shall not apply to communications required to include a disclosure 18 pursuant to subdivision sixteen of section 3-703 of the administrative 19 code. Provided, however, that in the event that one of the top donors 20 required to be listed under this clause is a political committee or 21 political action committee, such advertisement shall then disclose the 22 three largest aggregate donors, as described in this clause, of such 23 committee. In the event that one of the top donors to the political 24 committee or political action committee, having contributed at least 25 five thousand dollars to such committee in the twelve months preceding 26 the election, is yet another political committee or political action 27 committee, such advertisement shall be required to disclose the top 28 three donors of such other committee, and so on and so forth, until the 29 donors of all such political committees or political action committees 30 are disclosed in the manner required herein for direct donors. 31 (B) If the third largest donor to the disclosing entity has donated 32 the same amount in the twelve months preceding the election as the 33 fourth largest donor during such period, such entity may choose which 34 three donors to include so long as no donor is included that has donated 35 less in the twelve months preceding the election than any other donor 36 that is not included. Such written disclosures shall further include, in 37 a conspicuous size and style, the following words: "More information at 38 nyc.gov/FollowTheMoney." The board may, at its discretion, designate a 39 website other than nyc.gov/FollowTheMoney as the website that must be 40 included in such disclosure. All written disclosures required by this 41 clause shall be enclosed in a box that contains only those disclosures 42 required by this subparagraph, the rules of the board, the election law, 43 or any other applicable law or rule; 44 (iii) (A) in any paid radio advertisement, paid internet audio adver- 45 tisement, or automated telephone call, clearly spoken in a pitch and 46 tone substantially similar to the rest of the advertisement or call, at 47 the end of the advertisement or call, the words "paid for by" followed 48 by the name of the individual or the name of the entity, followed by the 49 words "with funding provided by," followed by a list of the three larg- 50 est aggregate donors to such entity in the twelve months preceding the 51 election, except that no donor that contributed less than five thousand 52 dollars to the disclosing entity in the twelve months preceding the 53 election shall be included in such disclosure, and except that expendi- 54 tures funded by an individual or where no such donors exist need not 55 include the words "with funding provided by" or a list of donors, and 56 except that this clause shall not apply to communications required to 
 S. 10663 5 1 include a disclosure pursuant to subdivision sixteen of section 3-703 of 2 the administrative code. Provided, however, that in the event that one 3 of the top donors required to be listed under this clause is a political 4 committee or political action committee, such advertisement or call 5 shall then disclose the three largest aggregate donors, as described in 6 this clause, of such committee. In the event that one of the top donors 7 to the political committee or political action committee, having 8 contributed at least five thousand dollars to such committee in the 9 twelve months preceding the election, is yet another political committee 10 or political action committee, such advertisement or call shall be 11 required to disclose the top three donors of such other committee, and 12 so on and so forth, until the donors of all such political committees or 13 political action committees are disclosed in the manner required herein 14 for direct donors. 15 (B) If the third largest donor to the disclosing entity has donated 16 the same amount in the twelve months preceding the election as the 17 fourth largest donor during such period, such entity may choose which 18 three donors to include so long as no donor is included that has donated 19 less in the twelve months preceding the election than any other donor 20 that is not included. In the case of a radio or internet audio adver- 21 tisement covered by this clause that is thirty seconds in duration or 22 shorter, the clearly spoken words "more information at 23 nyc.gov/FollowTheMoney" may be included in a pitch and tone substantial- 24 ly similar to the rest of the advertisement, instead of the words "with 25 funding provided by" followed by a list of the three largest aggregate 26 donors in the twelve months preceding the election. The board may, at 27 its discretion, designate a website other than nyc.gov/FollowTheMoney as 28 the website that must be included in such disclosure; and 29 (iv) in any non-automated telephone call, clearly spoken during any 30 such call lasting longer than ten seconds, the words "this call is paid 31 for by," followed by the name of the individual or the name of the enti- 32 ty, followed by the words "more information is available at 33 nyc.gov/FollowTheMoney." The board may, at its discretion, designate a 34 website other than nyc.gov/FollowTheMoney as the website that must be 35 included in such disclosure; provided, however, that in the event that 36 the entity is a political committee or political action committee, such 37 telephone call shall then disclose the top donor of such committee. In 38 the event that the donor to the political committee or political action 39 committee, having contributed at least five thousand dollars to such 40 committee in the twelve months preceding the election, is yet another 41 political committee or political action committee, such telephone call 42 shall be required to disclose the top donor of such other committee, and 43 so on and so forth, until the donors of all such political committees or 44 political action committees are disclosed in the manner required herein 45 for direct donors. 46 § 5. Subparagraph (d) of paragraph 15 of subdivision a of section 1052 47 of the New York city charter, as added by section 7 of Question 2 of 48 local law number 60 of the city of New York for the year 2010, is 49 amended to read as follows: 50 (d) (i) The board may, upon notice and opportunity to be heard, assess 51 civil penalties in an amount not in excess of [ten thousand] one million 52 dollars per day for each violation of this paragraph. The intentional or 53 knowing violation of this paragraph shall be punishable as a misdemeanor 54 in addition to any other penalty provided under law. 
 S. 10663 6 1 (ii) The board may further pursue injunctive relief to enjoin an 2 unlawful disclosure or communication not in compliance with subparagraph 3 (c) of this paragraph. 4 § 6. This act shall take effect on the ninetieth day after it shall 5 have become a law. Effective immediately, the addition, amendment and/or 6 repeal of any rule or regulation necessary for the implementation of 7 this act on its effective date are authorized to be made and completed 8 on or before such effective date.