Section 3-704. Qualified campaign expenditures

1. Public funds provided
  under the provisions of this chapter may be used only  for  expenditures
  by  a  principal  committee  to  further  the  participating candidate's
  nomination for election or election, either in  a  special  election  to
  fill  a  vacancy,  or  during  the calendar year in which the primary or
  general election in  which  the  candidate  is  seeking  nomination  for
  election or election is held.
    2. Such public funds may not be used for:
    (a) an expenditure in violation of any law;
    (b)  payments  made  to  the  candidate or a spouse, domestic partner,
  child,  grandchild,  parent,  grandparent,  brother  or  sister  of  the
  candidate  or  spouse  or  domestic  partner  of such child, grandchild,
  parent, grandparent, brother or sister, or to a business entity in which
  the candidate or any such person has a ten percent or greater  ownership
  interest;
    (c)  payments  in  excess  of  the  fair  market  value  of  services,
  materials, facilities or other things of value received in exchange;
    (d) (i) any expenditure made after  the  candidate  has  been  finally
  disqualified or had his or her petitions finally declared invalid by the
  New  York  city board of elections or a court of competent jurisdiction,
  except that such expenditures may be made:
    (A) as otherwise permitted pursuant to subdivision  seven  of  section
  3-709 of this chapter, or
    (B) for a different covered election, other than a special election to
  fill  a  vacancy,  held  later  in  the  same calendar year in which the
  candidate seeks election for the same office;  provided,  however,  that
  public  funds  originally  received  for  a  special  election to fill a
  vacancy may not be retained for expenditure in any other election;
    (ii) any expenditure made after the only  remaining  opponent  of  the
  candidate  has  been  finally  disqualified  or had his or her petitions
  finally declared invalid by the New York city board of  elections  or  a
  court  of  competent  jurisdiction, except that such expenditures may be
  made for a different covered election, other than a special election  to
  fill  a  vacancy,  held  later  in  the  same calendar year in which the
  candidate seeks election for the same office;  provided,  however,  that
  public  funds  originally  received  for  a  special  election to fill a
  vacancy may not be retained for expenditure in any other election;
    (e) payments in cash;
    (f) any contribution, transfer, or loan made to another  candidate  or
  political committee;
    (g) gifts, except brochures, buttons, signs and other printed campaign
  material;
    (h)  any  expenditure to challenge or defend the validity of petitions
  of  designation  or  nomination,  or  of  certificates  of   nomination,
  acceptance,  authorization,  declination,  or substitution, and expenses
  related  to  the  canvassing  of  election  results,  made  pursuant  to
  subdivision four of section 3-706;
    (i)  an  expenditure  made  primarily  for  the  purpose  of expressly
  advocating  a  vote  for  or  against  a  ballot  proposal,  other  than
  expenditures   made   also  to  further  the  participating  candidate's
  nomination for election or election;
    (j) payment of any penalty or fine imposed pursuant to federal,  state
  or local law; or
    (k)  payments  made through advances, except in the case of individual
  purchases in excess of two hundred fifty dollars.