Opinion
10900-08.
Decided September 22, 2008.
Tim James, 300 Martine Avenue No. 4-K, White Plains, New York, Attorney for Petitioners, Parisi and Patti, LLP, White Plains, New York.
Attorneys for Respondent PAC, Elizabeth Hogan, Enforcement Counsel, Attorney for Respondent State Board, Albany, New York.
The following papers numbered 1 to 13 were read in this special proceeding for an order, inter alia, compelling the respondent, Joseph Malara, as treasurer of The Year Two Thousand One Committee PAC (to be referred to hereinafter as PAC), to file with the New York State Board of Elections (to be referred to hereinafter as the State Board), in electronic form, disclosure statements that include a complete and accurate Schedule R identifying the candidates on whose behalf PAC has made expenditures reported therein and allocating such expenditures among such candidates.
Amended Verified Petition-Exhibits1-11
Verified Answers12-13
Upon the foregoing papers, it is ordered that this matter is decided as follows:
The five petitioners are qualified voters registered to vote in the City of White Plains. By petition dated May 10, 2008, the petitioners commenced this special proceeding seeking an order from this court compelling Joseph Malara, as treasurer of PAC to file with the State Board, in electronic form, disclosure statements regarding its activities and directing that such disclosure statements identify the candidates on whose behalf the expenditures are made therein and allocate such expenditures among such candidates. By answer dated May 22, 2008, PAC sought dismissal of the petition. The State Board also answered the petition stating in relevant part that it had no record filings from PAC.
Attorneys for the petitioners, and PAC, respectively, appeared before the court on June 9, 2008. The parties agreed that disclosure statements had to be electronically filed from January 1, 2006.
In a subsequent motion the petitioners sought leave, pursuant to CPLR 3025 (b), to serve and file an amended petition. This motion was opposed by PAC. By order filed August 1, 2008, this court granted the petitioners' motion for leave to amend their petition. The proposed amended petition annexed to the moving papers was deemed served on all parties and the court directed the respondents to answer the amended petition within 20 days of service upon them of a copy of the decision and order.
In their amended petition, the petitioners allege that PAC made certain disclosure statements in paper form with the Westchester County Board of Elections (to be referred to as the County Board), but those filings were not made in electronic form with the State Board, were not made with the frequency required by law and did not identify the candidate or candidates for whose benefit the PAC's expenditures were made, nor show the allocation of those expenditures among the candidates benefitted, as called for in Section 9i of the paper disclosure statement forms.
It is further asserted in the amended petition that a month after the commencement of this proceeding PAC made electronic filings with the State Board. However, these electronic filings also were incomplete and inaccurate. These filings did not include the required Schedule R identifying the candidates on whose behalf PAC made the expenditures reported and allocating such expenditures among such candidates. Furthermore, those electronic filings were, in some respects, inconsistent with the County Board paper filings for the same time period.
In their amended petition, the five petitioners seek an order compelling PAC to file complete and accurate disclosure statements. More particularly, they seek that all electronic filings (for on or after January 1, 2006), made by PAC be corrected by the addition thereto of a complete and accurateSchedule R and by correcting any other errors contained therein and directing that all paper filings (for on or after January 1, 2006), made by PAC be corrected by the full and accurate completion of Section 9i.
In its answer to the amended petition, the State Board admitted that PAC filed certain financial disclosure reports on June 16, 2008 and that no Schedule R was included in these filings. The State Board stated that the other respondent was "a registered PAC".
In its answer to the amended petition, PAC asserts that it has complied with all the requirements of the New York Election Law and the Rules and Regulations of the Board of Elections and it seeks dismissal of the amended petition.
In its Handbook of Instructions for Campaign Financial Disclosure for 2008, the New York State Board of Elections essentially defines a political committee as any corporation, committee, political club or combination of persons operating to aid or promote the success or defeat of a political party, ballot proposal or candidate. Certain political committees are related to political parties: a constituted committee is a state or county committee of one of the five major New York State parties; a party committee is, for example, the Senate Republican Campaign Committee. A multi-candidate committee is a committee that supports or opposes more than one candidate. Constituted committees, party committees and authorized multi-candidate committees are required to allocate campaign expenses among the candidates they support. Electronic filers need to create and complete a Schedule R and paper filers allocate their expenses in Section 9i.
According to the Handbook, a political action committee, although not specifically defined in the New York State Election Law, is considered to be any political committee that supports candidates or other political committees by making contributions only. Political action committees do not make direct expenditures on behalf of candidates. However, a review of the copies of the disclosure statements filed by PAC, appended to the amended petition, reveals that PAC in fact spent money on items, among others, such as printing, telephone, promotions, signs, etc.
Accordingly, the petition is granted to the extent that Joseph Malara, as treasurer of PAC, or his successor, is directed to file with the State Board, in electronic form, within five days after notice of this order, supplemental statements (Schedule R) to its statements covering the 2006 and 2007 January and July Periodic Reports, the 2008 January Periodic Report and a statement for the 2008 July Periodic Report and to file with the County Board, by a paper filing, supplemental statements (Schedule 9i) to its statements previously filed for January 2006 and January 2008 (Election Law § 16-114 (1), (2); 9 NYCRR 6200.2) and to reconcile the summary of receipts/expenditures provided in the paper filing to the County Board for the period from July 15, 2005 to January 15, 2006 to the summary provided in the electronic filing for January, 2006, as well as to reconcile the summary of receipts/expenditures provided in the paper filing to the County Board for the period from July 15, 2007 to January 15, 2008 to the summary provided in the electronic filing for January, 2008.