A newly introduced state bill would set limits on loans to New York political candidates and committees, closing what its sponsor describes as a gap in campaign finance law.
Assemblyman Jeffrey Dinowitz said Thursday that the proposal would apply aggregate limits to political loans from individuals and entities, similar to the limits already imposed on campaign contributions.
The legislation has been introduced but had not yet been assigned a bill number as of Thursday, according to Dinowitz's office. The proposal would amend the state Election Law.
Current law specifies how much an individual may contribute to support a candidate but does not set comparable limits on loans received by candidates or political committees, Dinowitz's office said. The sponsor argues that unrestricted loans can provide a way to direct large sums to campaigns outside the normal contribution limits.
Under existing rules described in the release, a loan becomes a campaign contribution if it is not repaid by the applicable primary or election. The bill would limit the total amount that an individual or entity could lend, though the release did not specify proposed dollar amounts.
The measure would also establish separate limits for loans made by a candidate's family members. The listed relatives include children, parents, grandparents, siblings and spouses.
Dinowitz said aligning the treatment of loans and contributions would make campaign financing more consistent and transparent. He said the change would reduce the chance that campaigns use loans to work around contribution caps and help Election Law keep pace with how candidates raise and spend money.
The proposal would apply statewide to candidates and political committees operating under New York Election Law. Details such as the bill number, the exact loan caps and the measure's committee assignment were not included in the announcement.
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