Relates to political contributions by limited liability companies.
TITLE OF BILL:
An act to amend the election law, in relation to political contributions
PURPOSE OR GENERAL IDEA OF BILL:
This bill would add Limited Liability Companies to section 14-116 of the election law to provide that LLCs have the same $5000 limit for making contributions to candidates, parties and political committees per year, as do corporations currently.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill adds Limited Liability Companies to Election Law § 14-116 to provide that LLCs have the same $5000 contribution limit per year as do corporations.
Section 2 of the bill is the effective date.
The Election Law does not address the aggregate amount of political contributions that an LLC may make to candidates, parties and political committees in anyone year. As a result, the State Board of Elections has opined that they should be treated as individuals for purposes of a limit and, therefore, under current practice, an LLC is allowed to make $150,000 in contributions in anyone year. This bill would require that LLCs be treated like corporations, rather than individuals, and therefore limited to $5,000 in annual contributions.
PRIOR LEGISLATIVE HISTORY:
2010: S.8395/A.11355-A 2012: Committee Discharged and Committed to Rules
This bill shall take effect on the one hundred and eightieth day after it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 166 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. SQUADRON -- read twice and ordered printed, and when printed to be committed to the Committee on Elections AN ACT to amend the election law, in relation to political contributions THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 14-116 of the election law, subdivision 1 as redes- ignated by chapter 9 of the laws of 1978 and subdivision 2 as amended by chapter 260 of the laws of 1981, is amended to read as follows: S 14-116. Political contributions by certain organizations. 1. No corporation, LIMITED LIABILITY COMPANY or joint-stock association doing business in this state, except
[a corporation or association]AN ENTITY organized or maintained for political purposes only, shall directly or indirectly pay or use or offer, consent or agree to pay or use any money or property for or in aid of any political party, committee or organiza- tion, or for, or in aid of, any corporation, LIMITED LIABILITY COMPANY, joint-stock or other association organized or maintained for political purposes, or for, or in aid of, any candidate for political office or for nomination for such office, or for any political purpose whatever, or for the reimbursement or indemnification of any person for moneys or property so used. Any officer, director, stock-holder, attorney or agent of any corporation, LIMITED LIABILITY COMPANY or joint-stock association which violates any of the provisions of this section, who participates in, aids, abets or advises or consents to any such violations, and any person who solicits or knowingly receives any money or property in violation of this section, shall be guilty of a misdemeanor. 2. Notwithstanding the provisions of subdivision one of this section, any corporation or an organization financially supported in whole or in part, by such corporation, AND ANY LIMITED LIABILITY COMPANY may make expenditures, including contributions, not otherwise prohibited by law, for political purposes, in an amount not to exceed five thousand dollarsEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00296-01-3 S. 166 2
in the aggregate in any calendar year; provided that no public utility shall use revenues received from the rendition of public service within the state for contributions for political purposes unless such cost is charged to the shareholders of such a public service corporation. S 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.