3any payment, by any person other than a candidate or a political committee authorized bythe candidate, made in connection with the nomination for election or election of anycandidate, or any payment made to promote the success or defeat of a political party or principle, or of any ballot proposal . . . .
§ 14-100(9)(3). In contrast, contributions to candidates and authorized committees aresubject to the more restrictive limits set forth in § 14-114(1).There is no statutory definition for the term “independent expenditure,” but the NewYork Board of Elections interprets it to mean “the direct payment for goods or services” by anindividual or political committee in connection with an election.
N.Y.S. Board of Elections1981 Opinion No. 5 (July 27, 1981). According to the New York State Board of Elections, § 14-114 allows for “unlimited independent expenditures by persons or political committees.” N.Y.S.Board of Elections 1994 Opinion No. 3 (Apr. 25, 1994). Contributions to political committeesthat make only independent expenditures are limited, however, to $150,000 per individual per year.
II. The Parties
Plaintiff NYPPP is registered as a “Type 9,” unauthorized political committee with the New York State Board of Elections and as a “political organization” under Section 527 of theInternal Revenue Code. Declaration of Craig Engle (“Engle Decl.”) ¶¶ 13, 3.
As a result, NYPPP describes itself as an “independent expenditure-only” political committee that does notcoordinate with any candidate or campaign.Engle Decl. ¶¶ 12-13. Craig Engle formed theorganization to assist the Republican candidate for New York City Mayor, Joe Lhota. EngleDecl. ¶ 5. Mr. Engle believed Mr. Lhota lacked the name recognition and campaign funds
“Mr. Engle is an experienced political operative with connections to numerous large donors.” Compl. ¶ 28. Hemakes “all decisions for NYPPP concerning the solicitation, acceptance, and use of funds.” Compl. ¶ 31. Mr. Engleis affiliated with a Washington law firm. Declaration of William J. McCann, Jr., Exs. A-B. NYPPP has only a maildrop in New York City. Hr’g Tr. 21:1-4.
Case 1:13-cv-06769-PAC Document 31 Filed 10/17/13 Page 3 of 14