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Discussion of recent CFB rule changes on withholding payments

0:33:10

·

3 min

Council Member Restler and Paul Seamus Ryan discuss the recent changes to CFB rules regarding when payments can be withheld from campaigns. Ryan explains the new rules and the board's discretion in applying them.

  • The new rules make it mandatory for the board to withhold payment for specific contributions if a candidate fails to provide requested information
  • Ryan emphasizes that the board retains discretion in interpreting and applying the rule based on materiality
  • The rule change aims to address issues with campaign responsiveness and speed up the audit process
Lincoln Restler
0:33:10
So the CP recently adopted changes to its rules and made some internal policy shifts to clarify when payments can be withheld from campaigns.
0:33:21
I'd like to recognize those positive steps that you've made to help somewhat narrow loopholes.
0:33:28
Under the rules, under the the recently adopted CFB rules, it will now be mandatory for the board to withhold payment for specific contributions if a candidate fails to provide information requested by the board.
0:33:41
What types of requests are captured in this rules change?
0:33:45
And I just wanna recognize council member David Carr of Brooklyn.
0:33:48
Thank you for joining us.
0:33:52
He now represents a little bit of Brooklyn, and we're taking it we're claiming him as our own.
Gale A. Brewer
0:33:56
It's an ongoing joke.
Lincoln Restler
0:34:02
Sorry, Paul.
0:34:04
Types
Paul Seamus Ryan
0:34:05
of records and requests for information that will be, covered by this rule.
0:34:09
The most important elements of this rule are that, number 1, the board has always had and exercised some discretion in how to interpret and apply this rule.
0:34:19
This rule is actually, implementing a provision of the act that's, quite similar.
0:34:25
And the board, in this new rule, as revised the new rules will take effect, I believe, December 17th.
0:34:32
There's clearly stated at the end of the rule a materiality standard that the board may exercise its discretion.
0:34:39
It may, in fact, award public funds, grant public funds to a candidate if the board determines a requested document record or other information is immaterial to public funds eligibility.
0:34:49
So I'll give you one example of when and this is completely hypothetical.
0:34:54
This is the board makes these decisions.
0:34:56
I'm obviously not on the board, and the board, to my knowledge, is not in my presence considered the following example, but it struck me as, perhaps effective to illustrate.
0:35:07
If a campaign, for example, failed to give to us a receipt for a $23 expenditure at an office supply store, we ask you know.
0:35:15
You've run.
0:35:16
We ask candidates for all sorts of receipts, lots of documentation.
0:35:20
My personal view, again, not speaking for the board members themselves, is that a failure to produce such a receipt would not likely be material.
0:35:30
I can't imagine which that would be material to public funding eligibility so that under this rule, if I were on the board, if I were the one interpreting this, I would be unlikely to deem a candidate ineligible for public funding, as a result of their failure to produce this rule.
0:35:42
So there will be some judgment calls made by the board when making public funding determinations.
0:35:51
Always has been, always will be.
0:35:53
As you know, the first public funding payment decision is coming up on December 16th, so the board has some decisions to make in, about a week and a half, and they'll be considering all relevant facts and applying all relevant laws as they exist today.
0:36:06
And, again, this rule doesn't actually take effect until the day after the first public funds payment, but this rule is quite similar to its predecessor.
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