Rule 7-03 Review of Contributions and Expenditures.

(a) Determination of eligibility. (1) Pursuant to §3-705(6) of the Code, the Board shall determine whether a limited participant or a non-participant has spent or contracted or become obligated to spend an amount which, in the aggregate, exceeds ten thousand dollars; (2) pursuant to §3-705(7)(a) of the Code, the Board shall determine whether a candidate has spent or contracted or become obligated to spend, or received in loans or contributions, or both, an amount which, in the aggregate, exceeds one-fifth of the applicable expenditure limit for such office as provided by §3-706(1) of the Code; (3) pursuant to §3-706(3)(a) of the Code, the Board shall determine whether a non-participant has spent or contracted or become obligated to spend, or received in loans or contributions, or both, an amount which, in the aggregate, exceeds one-half the expenditure limit applicable to the participant(s) and/or limited participant(s) opposing that candidate; (4) pursuant to §3-706(3)(b) of the Code, the Board shall determine whether a non-participant has spent or contracted or become obligated to spend, or received in loans or contributions, or both, an amount which, in the aggregate, exceeds three times the expenditure limit applicable to the participant(s) and/or limited participant(s) opposing that candidate; and (5) the Board shall verify the truthfulness of any certified signed statement submitted pursuant to §3-705(7)(b) of the Code and the Board shall determine whether supporting documentation submitted pursuant to §3-705(7)(b) of the Code demonstrates the existence of the condition or conditions described in such statement. For the purposes of making a determination pursuant to §3-705(7)(b)(1) of the Code, a non-participating or a limited participating candidate shall be presumed to have the ability to self finance when it is demonstrated through supporting documentation that such candidate has readily available funds in excess of one-fifth of the applicable expenditure limit and that such candidate can reasonably be expected to spend such funds for his or her nomination or election.

(b) Generally. To permit the Board to make these determinations in a timely, fair, and efficient manner, pursuant to the Act, it is expected that participants, limited participants, and non-participants will cooperate fully with Board requests for information and adhere to the procedures set forth in this rule and the requirements of New York Election Law Article 14 and State Board of Elections regulations.

(c) Facial Determinations. The Board may find that a candidate's forms submitted to the Campaign Finance Board or to the Board of Elections provide on their face a sufficient basis for a determination pursuant to paragraph (a) above. The Board will presume that contributions and loans are accepted, disbursements are made, and liabilities are incurred by a candidate for his or her next following election. In the absence of evidence indicating otherwise, the Board will rely upon the date of contributions, loans, disbursements, and liabilities as they appear on forms submitted to the Campaign Finance Board or the Board of Elections. In addition, the Board will presume that cash on hand after an election consists of contributions that are available for expenditure in the next election.

(d) Petitions. The Board may make a determination pursuant to paragraph (a) above following the submission of a written petition, as provided in this rule. The written petition shall: (1) be sworn to or affirmed; (2) indicate the participant or limited participant on whose behalf it is submitted, if any; (3) specify the particular information contained in forms submitted to the Campaign Finance Board or the Board of Elections on behalf of the respondent that is alleged to be inaccurate, if any, and the particular information alleged to be omitted from those forms, if any (in the absence of these allegations, the Board will presume that any forms on file at the Campaign Finance Board or the Board of Elections at the time the petition is submitted are true and complete for the applicable reporting periods); (4) identify specific fund-raising and/or spending activities on behalf of the respondent that are alleged to have taken place after the close of the reporting period covered by the last such forms submitted on behalf of the respondent, if any; (5) include all relevant names, dates, and amounts pertaining to monetary and in-kind contributions, and vendors providing goods and services to the respondent or to a third party on behalf of the respondent, including information concerning the fair market value of services, materials, facilities, advertising, or other things of value reported to have been received or expended on his or her behalf; and (6) contain information about statements reported to have been made by the respondent, his or her agents, or authorized representatives, and any other relevant information. The Board will not consider petitions submitted after the due date for the last disclosure statement required to be filed with the Campaign Finance Board by any candidate in the election for which the petition is filed.

(e) Petitioner's burden. The petitioner shall submit with the petition evidence that supports the allegations made in the petition, including but not limited to the information described in paragraph (d)(5). The petitioner has the burden of demonstrating a sufficient basis for a determination pursuant to paragraph (a). Failure by the respondent to file required disclosure forms may be a sufficient basis, and must be addressed in the respondent's response to the petition.

(f) Notice of petition. The Board shall send a copy of the petition to the respondent, any opposing participants, and, in the case of a determination pursuant to §3-706(a) or (b) of the Code, any opposing limited participants. The notice shall specify: (1) the deadline for the respondent to submit a response, pursuant to subdivision (g); (2) the deadline for opposing participants or limited participants other than a respondent to submit petitions for consideration at any hearing referred to in the notice; and (3) the date and time at which the Board will conduct a hearing on the petition, if any, pursuant to subdivision (h).

(g) Response to the petition. The respondent shall submit a response in such manner as may be provided by the Board. The response shall: (1) be sworn to or affirmed; (2) either:

(i) acknowledge that fund-raising or spending on behalf of the respondent is sufficient to permit the Board to make a determination pursuant to paragraph (a), regardless of the merit of the petitioning participant's or limited participant's particular allegations; or

(ii) contend that a determination pursuant to paragraph (a) would be inappropriate and specify the allegations in the petition that are denied and those that are admitted;

(3) explain any failure to file any forms required in the election year; and

(4) be signed by the respondent or his or her treasurer. The respondent shall submit with the response evidence that supports the response, including, but not limited to, all relevant names, dates, and amounts pertaining to monetary and in-kind contributions, and vendors providing goods and services to the respondent or to a third party on his or her behalf, including information concerning the fair market value of services, materials, facilities, advertising, or other things of value reported to have been received or expended on behalf of the respondent. A failure to submit a response may be deemed an admission that there is a sufficient basis for a determination pursuant to paragraph (a).

(h) Hearing. (1) The petitioner, the respondent, or an opposing participant or limited participant other than a respondent may request the Board to conduct a hearing on the petition.

(2) If the Board determines to conduct a hearing, as requested or on its own initiative, the hearing date will be no earlier than 10 days after the petition is received, except: (i) for good cause shown; or (ii) for petitions received less than 30 days before the election, in which case the hearing date will be no earlier than 3 days after the petition is received.

(3) The respondent and each opposing participant or limited participant shall notify the Board no less than one day in advance whether they will be represented at the hearing and, if the petitioner or the respondent will not be represented, the reason for the absence. Representation of a party at a hearing must be by a person with knowledge of the facts at issue.

(4) At the hearing, testimony given may be under oath, recorded, and in the following order: (i) the petitioner; (ii) opposing participants and/or limited participants other than a respondent; (iii) the respondent; (iv) Board staff, if appropriate; and (v) an opportunity for each party to rebut, if deemed appropriate by the Board.

(i) Notice of determination. Following the review of disclosure forms, the submission of a petition and an opportunity for a response, and/or a hearing, the Board will decide whether there is a sufficient basis for a determination pursuant to paragraph (a). The Board shall provide written notice to the respondent, all opposing participants and limited participants other than a respondent, and the petitioner, if any, of a determination pursuant to paragraph (a) or a decision not to make such a determination, as requested by a petition, and the basis therefor.

(j) New petitions. A decision not to make a determination pursuant to paragraph (a) shall not be construed to preclude the subsequent submission of any petition for a determination respecting that candidate.

(k) Reconsideration. The petitioner, the respondent, or an opposing participant or limited participant other than a respondent may request that the Board reconsider the determination pursuant to paragraph (a) or the decision not to make such a determination. This request shall be made in writing no later than 10 days after the determination or decision. A request for reconsideration from a respondent must also include: (1) an affidavit of the respondent or his of her treasurer affirming that neither fund-raising nor spending on behalf of the respondent that has taken place after the close of the most recent reporting period is sufficient to permit the Board to make a determination pursuant to paragraph (a); and (2) an undertaking by the respondent or treasurer to notify the Board immediately in writing if and when either fund-raising or spending on behalf of the respondent becomes sufficient to permit the Board to make a determination pursuant to paragraph (a). The Board may consider a respondent's failure to respond to the petition, or the failure of the party requesting reconsideration to be represented at a hearing on the petition, to be a sufficient basis for denying a request for reconsideration. The Board shall notify the respondent, all opposing participants, and, in the case of a determination pursuant to §3-706(a) or (b) of the Code, all opposing limited participants, and the petitioner on whether it will reconsider the determination pursuant to paragraph (a) or decision not to make such a determination, as the case may be. If the Board grants reconsideration and determines to conduct a hearing, the hearing shall be conducted in the manner described in paragraph (h)(4).

(l) Submission of false information. If the Board has reason to believe that a candidate or any other person has knowingly submitted false information or fabricated evidence or has knowingly withheld or concealed information, relevant to a determination under paragraph (a), the Board shall refer the matter to the appropriate agency for criminal prosecution and may commence a civil action to recover public funds and/or civil penalties, if appropriate.