Section 3-710. Examinations and audits; repayments

1. The campaign finance
  board is hereby empowered to audit and examine all matters  relating  to
  the  performance  of  its functions and any other matter relating to the
  proper administration of this chapter and of chapter 8  of  title  3  of
  this  code.  The  board  shall conduct its campaign audits in accordance
  with  generally  accepted  government  auditing  standards,  and   shall
  promulgate   rules   regarding   what  documentation  is  sufficient  in
  demonstrating financial activity. These  audit  and  examination  powers
  extend   to   all   participating   candidates,   limited  participating
  candidates, and non-participating  candidates,  and  the  principal  and
  authorized  committees  of all participating, limited participating, and
  non-participating candidates, provided that:
    a. Any draft audit, the subject of which is a  participating,  limited
  participating  or  non-participating  candidate, or the principal and/or
  authorized committees of any  participating,  limited  participating  or
  non-participating  candidate  shall be completed within (i) eight months
  after the submission of the final  disclosure  report  for  the  covered
  election  for  city  council  races and borough-wide races, and (ii) ten
  months after the submission of  the  final  disclosure  report  for  the
  covered  election  for  citywide races, unless the subject of such audit
  consents in writing to a longer period of time;
    b. The campaign finance board shall provide  each  candidate  a  final
  audit,  which shall contain the final resolution of all issues raised in
  the draft audit; such final audit shall be provided  to  the  candidate,
  where  such  candidate or such candidate's campaign manager or treasurer
  has completed audit training provided by the board, within (i)  fourteen
  months  after  the  submission  of  the  final disclosure report for the
  covered election, for city council races  and  borough-wide  races,  and
  (ii)  sixteen months after the submission of the final disclosure report
  for the covered election for citywide races, unless the subject of  such
  audit  consents  in  writing  to  a  longer  period  of time. Where such
  candidate or such candidate's campaign  manager  or  treasurer  has  not
  completed  audit  training  provided by the campaign finance board, such
  final audit shall be provided  to  such  candidate  within  (i)  sixteen
  months  after  the  submission  of  the  final disclosure report for the
  covered election, for city council races  and  borough-wide  races,  and
  (ii) eighteen months after the submission of the final disclosure report
  for  the covered election for citywide races, unless the subject of such
  audit consents in writing to a longer period of time. Provided, however,
  that where the issuance of such final audit is preceded by a  notice  of
  violations  and  recommended  penalties  and/or a notice of repayment of
  public funds,  such  notice  or  notices  shall  include  all  potential
  penalties  and/or  repayment  obligations  and a notice of a candidate's
  right to a hearing pursuant to section 3-710.5 or  section  3-710(4)  of
  this  chapter  and  shall  be provided to the candidate according to the
  deadlines applicable to final audits as set forth in this paragraph.
    c. Any advice provided by board  staff  to  a  participating,  limited
  participating,  or  non-participating candidate with regard to an action
  shall be presumptive evidence that such action, if taken in reliance  on
  such  advice, should not be subject to a penalty or repayment obligation
  where such candidate or such candidate's committee  has  confirmed  such
  advice  in a writing to such board staff by registered or certified mail
  to the correct address, or by electronic or facsimile transmission  with
  evidence  of  receipt, describing the action to be taken pursuant to the
  advice given and the board or  its  staff  has  not  responded  to  such
  written  confirmation  within seven business days disavowing or altering
  such advice, provided that the board's response shall be  by  registered

  or  certified mail to the correct address, or by electronic or facsimile
  transmission with evidence of receipt.
    d.  Notwithstanding  the  provisions  of  paragraphs  a  and b of this
  subdivision, if a committee has failed  to  respond  to  a  request  for
  information  made  by  board  auditors  during  the  post-election audit
  process, the time period for completing the draft and final audits shall
  be tolled and extended by the number of days by which the committee  has
  exceeded  the  original  deadline  for  a  response,  provided  that the
  committee has received  timely  written  notice  of:  (i)  the  original
  deadline to provide the information, which shall not have been less than
  thirty  days  from the date such information was requested; and (ii) the
  commencement of the tolling  period  pursuant  to  this  section.  If  a
  committee  has  responded  to  a  request  for information made by board
  auditors but such response is inadequate, the time period for completing
  the draft and final audits shall be tolled and extended by the number of
  days until an adequate response is provided, provided that the committee
  has received timely written notice of:  (i)  the  original  deadline  to
  provide the information, which shall not have been less than thirty days
  from  the  date such information was requested; (ii) the commencement of
  the tolling period pursuant to this  section;  and  (iii)  the  detailed
  reasons why the original response was inadequate.
    e. Notwithstanding any provision of law to the contrary, the deadlines
  provided in paragraphs a and b of this subdivision for the completion of
  draft  and  final audits shall not apply in cases where the audit raises
  issues  involving  potential  campaign-related  fraud,  potential  other
  criminal   activity,  or  activity  that  may  constitute  a  breach  of
  certification pursuant to rules of the board  or  potential  significant
  violations of the limits set forth in section 3-706.
    f.  Notwithstanding  any  provision  of  the  law to the contrary, the
  deadlines provided in paragraphs a and b of  this  subdivision  for  the
  completion  of  draft and final audits shall not apply in the event that
  board operations are interrupted due to a catastrophic emergency such as
  a  natural  disaster  or  criminal  event,  provided  that  once   board
  operations  resume,  the  board  shall  within  two  weeks  announce new
  deadlines for the completion of draft and final audits  consistent  with
  paragraphs a and b.
    2. (a) If the board determines that any portion of the payment made to
  the  principal  committee of a participating candidate from the fund was
  in excess of the aggregate amount of payments which such  candidate  was
  eligible  to  receive  pursuant  to  this  chapter, it shall notify such
  committee and such committee shall pay to the board an amount  equal  to
  the amount of excess payments.
    b.  If  the board determines that any portion of the payment made to a
  principal committee of a participating candidate from the fund was  used
  for purposes other than qualified campaign expenditures, it shall notify
  such  candidate  and  committee  of  the amount so disqualified and such
  candidate and committee shall pay to the board an amount equal  to  such
  disqualified  amount;  provided, however, that in considering whether or
  not a participating candidate shall be required to pay to the board such
  amount or an amount less than the entire disqualified amount, the  board
  shall   act  in  accordance  with  the  following:  (i)  where  credible
  documentation supporting each qualified campaign expenditure exists  but
  is  incomplete,  the  board  shall  not  impose  such liability for such
  expenditure;  and  (ii)  where  there  is   an   absence   of   credible
  documentation  for  each  qualified  campaign expenditure, the board may
  impose  liability  upon  a  showing  that  such  absence   of   credible
  documentation  for  such  expenditure  arose  from  a  lack  of adequate
  controls  including,  but  not  limited  to  trained   staff,   internal

  procedures to follow published board guidelines and procedures to follow
  standard financial controls.
    (c)  If  the total of contributions, other receipts, and payments from
  the fund received by a participating candidate and his or her  principal
  committee  exceed  the total campaign expenditures of such candidate and
  committee for all covered elections held in the same  calendar  year  or
  for  a  special  election to fill a vacancy such candidate and committee
  shall use such excess funds to reimburse the fund for payments  received
  by  such  committee  from the fund during such calendar year or for such
  special election. No such excess funds  shall  be  used  for  any  other
  purpose,  unless the total amount of the payments received from the fund
  by the principal committee has been repaid.
    3. If a participating candidate whose principal committee has received
  public funds is disqualified by a court of competent jurisdiction on the
  grounds that such candidate committed fraudulent acts in order to obtain
  a place on the ballot and such decision is not reversed, such  candidate
  and  his  or  her  principal  committee shall pay to the board an amount
  equal to the total of public funds received by such principal committee.
    4. No claim for the repayment of public funds shall  be  made  against
  any  candidate  or committee without written notice to such candidate or
  committee, issued in a timely manner pursuant to all of the requirements
  of subdivision one of this section, and an opportunity to appear  before
  the  board.  Any  such  repayment  claim  shall  be  based  on  a  final
  determination issued by the board following an adjudication  before  the
  board  consistent  with  the procedures set forth in section 1046 of the
  charter unless such procedures are waived by the candidate or  principal
  committee.  Such  final determination shall be included in and made part
  of the final audit which shall be issued  within  thirty  days  of  such
  determination.