Relates to political contributions made by limited liability companies.
BILL NUMBER: S5277
TITLE OF BILL : An act to amend the election law, in relation to contributions from limited liability companies
PURPOSE : To attribute campaign contributions of limited liability companies (LLCs) to the individual members of the LLC in the same manner that partnership contributions are attributed to individual partners in current law.
SUMMARY OF PROVISIONS : Section 1 of the bill would amend Subdivision 2 of section 14-120 of the election law as added by chapter 79 of the laws of 1992 to treat political contributions from LLCs in the same manner as contributions from partnerships.
Section 2 of the bill specifies the effective date.
JUSTIFICATION : It is widely believed that our campaign finance laws need substantial changes to ensure the integrity of elections in our state. This bill does not address the broad range of issues that might be addressed in a comprehensive reform package. However, this bill would close one enormous loophole in the current system. Under current law, as interpreted by the judiciary, each LLC is considered a separate contributor and may make the maximum allowable contribution. Since a single individual or a small group of individuals often control multiple LLCs-in some cases a very large number of such LLCs-the treatment of these LLCs as separate contributors effectively allows one or more individuals to make a virtually unlimited amount of campaign contributions.
This bill would correct this by simply attributing contributions from LLCs to the members of the LLC in the same way the law currently attributes contributions from partnerships to the individual partners.
PRIOR LEGISLATIVE HISTORY : This is a new bill.
FISCAL IMPLICATIONS : None.
EFFECTIVE DATE : This act shall take effect immediately.