Senate Bill S5282

2009-2010 Legislative Session

Establishes new contribution limits, expands the types of organizations prohibited from making contributions and aggregates certain contributions

download bill text pdf

Archive: Last Bill Status - In Senate Committee Elections Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 20, 2010	print number 5282c
May 20, 2010	amend and recommit to elections
Jan 06, 2010	referred to elections
Jun 11, 2009	print number 5282b
Jun 11, 2009	amend and recommit to elections
Jun 04, 2009	committee discharged and committed to elections
May 26, 2009	print number 5282a
May 26, 2009	amend (t) and recommit to corporations, authorities and commissions
Apr 27, 2009	referred to corporations, authorities and commissions

Bill Amendments

Original

C (Active)

2009-S5282 - Details

Current Committee:: Senate Elections
Laws Affected:: Amd §§14-100, 14-116 & 14-120, El L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S89
2013-2014: S192

2009-S5282 - Summary

Establishes new contribution limits, expands the types of organizations prohibited from making contributions and aggregates certain contributions.

2009-S5282 - Sponsor Memo

2009-S5282 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5282

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced by Sens. SQUADRON, SERRANO -- read twice and ordered printed,
  and  when  printed  to  be committed to the Committee on Corporations,
  Authorities and Commissions

AN ACT to amend the limited liability company law and the election  law,
  in relation to campaign contributions

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The limited liability company law is amended  by  adding  a
new section 1105 to read as follows:
  S  1105. PROHIBITION OF CAMPAIGN CONTRIBUTIONS. NO DOMESTIC OR FOREIGN
LIMITED LIABILITY COMPANY SHALL MAKE A CONTRIBUTION TO THE  CAMPAIGN  OF
ANY CANDIDATE FOR ANY ELECTED OFFICE.
  S  2.  Section  14-114  of the election law is amended by adding a new
subdivision 9 to read as follows:
  9. NO DOMESTIC OR FOREIGN LIMITED LIABILITY COMPANY MAY CONTRIBUTE ANY
AMOUNT OR SERVICES TO A CANDIDATE FOR ANY ELECTED OFFICE.
  S 3. This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07237-01-9

2009-S5282A - Details

Current Committee:: Senate Elections
Laws Affected:: Amd §§14-100, 14-116 & 14-120, El L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S89
2013-2014: S192

2009-S5282A - Summary

Establishes new contribution limits, expands the types of organizations prohibited from making contributions and aggregates certain contributions.

2009-S5282A - Sponsor Memo

                                 BILL NUMBER:  S5282A

 TITLE OF BILL :
An act to amend the election law, in relation to establishing new
contribution limits, expanding the types of organizations prohibited
from making contributions and aggregating certain contributions


 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 amends section 14-100 of the Election Law by adding three
new subdivisions (12-14) to ensure that various corporate forms --
related limited liability companies and related limited liability
partnerships, as well as partnerships and limited liability companies
(LLCs) -- are covered by contribution limits, and defines "single
source" to clarify that individuals and the corporate entities they
control are considered to be a single entity for the purpose of
contributions.

Section 2 amends 14-116 of the Election Law to apply the $5,000
contribution limit to all additional business entities, including

limited liability companies (LLCs), and bans all contributions from
corporate summaries.

Section 3 amends 14-120 (2) of the Election Law to apply the $5,000
contribution limit to partnership, related corporations, and LLCs.

Section 4 concerns 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 an
enormous loophole in the current system by clarifying that separate
LLCs and partnerships, and the individuals that control these
corporate entities, are considered a single source for the purposes of
the maximum allowable contribution to a political campaign. Since a
single individual or a small group of individuals often control
multiple corporate entities - in some cases a very large number of
such entities - the treatment of these entities as separate
contributors effectively allows one or more individuals to make a
virtually unlimited amount of campaign contributions. This bill would
correct this by attributing contributions from these entities to the
members of the LLC, in the same way the law currently attributes
contributions from partnerships to the individual partners. The bill
also makes limited liability companies and related limited liability
partnerships subject to the same restrictions to ensure that the
contribution limitations cannot be easily circumvented.

 EFFECTIVE DATE :
January 1, 2011

2009-S5282A - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5282--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced by Sens. SQUADRON, SERRANO -- read twice and ordered printed,
  and  when  printed  to  be committed to the Committee on Corporations,
  Authorities and Commissions --  committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the  election  law,  in relation to establishing new
  contribution limits, expanding the types of  organizations  prohibited
  from making contributions and aggregating certain contributions

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Section 14-100 of the election law is  amended  by  adding
three new subdivisions 12, 13 and 14 to read as follows:
  12.  "RELATED  LIMITED  LIABILITY  COMPANY"  MEANS A LIMITED LIABILITY
COMPANY THAT IS AN AFFILIATE OF A  CORPORATION  WITHIN  THE  MEANING  OF
PARAGRAPH (A) OF SECTION NINE HUNDRED TWELVE OF THE BUSINESS CORPORATION
LAW. AS USED IN THIS ARTICLE, CORPORATION MEANS BOTH A FOR-PROFIT CORPO-
RATION  WITHIN  THE  MEANING  OF  SUBPARAGRAPH  FOUR OF PARAGRAPH (A) OF
SECTION ONE HUNDRED TWO OF THE BUSINESS CORPORATION LAW  AS  WELL  AS  A
NONPROFIT  CORPORATION  WITHIN THE MEANING OF SUBPARAGRAPH FIVE OF PARA-
GRAPH (A) OF SECTION ONE HUNDRED TWO OF THE  NOT-FOR-PROFIT  CORPORATION
LAW.
  13.  (1)  "RELATED  LIMITED  LIABILITY  PARTNERSHIP,"  CONSISTENT WITH
SECTION TEN OF THE PARTNERSHIP LAW, MEANS A PARTNERSHIP WITHOUT  LIMITED
PARTNERS  OPERATING  UNDER  AN  AGREEMENT  GOVERNED  BY THE LAWS OF THIS
STATE, WHICH (A) IS NOT A PROFESSIONAL PARTNERSHIP UNDER  THIS  SECTION,
(B) IS AFFILIATED WITH A PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY,
FOREIGN  PROFESSIONAL  SERVICE  LIMITED  LIABILITY COMPANY, PROFESSIONAL
SERVICE CORPORATION, FOREIGN PROFESSIONAL  SERVICE  CORPORATION,  REGIS-
TERED  LIMITED  LIABILITY PARTNERSHIP THAT IS A PROFESSIONAL PARTNERSHIP
UNDER THIS SECTION OR A  FOREIGN  LIMITED  LIABILITY  PARTNERSHIP  UNDER
CLAUSE  (I)  OR (II) OF THE EIGHTH UNDESIGNATED PARAGRAPH OF SECTION TWO
OF THE PARTNERSHIP LAW, AND (C) RENDERS SERVICES RELATED OR COMPLEMENTA-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07237-06-9

S. 5282--A                          2

RY TO THE PROFESSIONAL SERVICES RENDERED BY,  OR  PROVIDES  SERVICES  OR
FACILITIES  TO,  SUCH  PROFESSIONAL  SERVICE  LIMITED LIABILITY COMPANY,
FOREIGN PROFESSIONAL SERVICE  LIMITED  LIABILITY  COMPANY,  PROFESSIONAL
SERVICE  CORPORATION,  FOREIGN  PROFESSIONAL SERVICE CORPORATION, REGIS-
TERED LIMITED LIABILITY PARTNERSHIP OR FOREIGN LIMITED  LIABILITY  PART-
NERSHIP.
  (2) FOR PURPOSES OF THIS SUBDIVISION, SUCH A PARTNERSHIP IS AFFILIATED
WITH  A  PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY, FOREIGN PROFES-
SIONAL SERVICE LIMITED LIABILITY COMPANY,  PROFESSIONAL  SERVICE  CORPO-
RATION,  FOREIGN  PROFESSIONAL  SERVICE  CORPORATION, REGISTERED LIMITED
LIABILITY PARTNERSHIP OR FOREIGN LIMITED LIABILITY PARTNERSHIP IF (A) AT
LEAST A MAJORITY OF PARTNERS IN ONE  PARTNERSHIP  ARE  PARTNERS  IN  THE
OTHER PARTNERSHIP, (B) AT LEAST A MAJORITY OF THE PARTNERS IN EACH PART-
NERSHIP  ALSO  ARE  PARTNERS, HOLD INTERESTS OR ARE MEMBERS IN A LIMITED
LIABILITY COMPANY OR OTHER BUSINESS ENTITY, AND EACH PARTNERSHIP RENDERS
SERVICES PURSUANT TO AN AGREEMENT WITH SUCH LIMITED LIABILITY COMPANY OR
OTHER BUSINESS ENTITY, OR (C) THE PARTNERSHIPS OR  THE  PARTNERSHIP  AND
SUCH  PROFESSIONAL  SERVICE  LIMITED  LIABILITY  COMPANY,  SUCH  FOREIGN
PROFESSIONAL  SERVICE  LIMITED  LIABILITY  COMPANY,  SUCH   PROFESSIONAL
SERVICE  CORPORATION,  OR  SUCH FOREIGN PROFESSIONAL SERVICE CORPORATION
ARE AFFILIATES WITHIN THE MEANING  OF  PARAGRAPH  (A)  OF  SECTION  NINE
HUNDRED TWELVE OF THE BUSINESS CORPORATION LAW.
  14. "SINGLE SOURCE" MEANS ANY PERSON, PERSONS IN COMBINATION, OR ENTI-
TY  WHO  OR WHICH ESTABLISHES, MAINTAINS, OR CONTROLS ANOTHER ENTITY AND
EVERY ENTITY SO ESTABLISHED, MAINTAINED, OR CONTROLLED, INCLUDING  EVERY
POLITICAL  COMMITTEE  ESTABLISHED, MAINTAINED, OR CONTROLLED BY THE SAME
PERSON, PERSONS IN COMBINATION, OR ENTITY. IF A CANDIDATE  ACCEPTS  MORE
THAN  ONE  CONTRIBUTION FROM A SINGLE SOURCE, THE CONTRIBUTIONS SHALL BE
TOTALED TO DETERMINE THE PARTICIPANT'S OR  CANDIDATE'S  COMPLIANCE  WITH
THE  APPLICABLE CONTRIBUTION LIMIT. A GENERAL PARTNER OR GENERAL MANAGER
AND EACH PARTNERSHIP AND LIMITED LIABILITY COMPANY IT CONTROLS SHALL  BE
PRESUMED, IN THE ABSENCE OF EVIDENCE DEMONSTRATING THE CONTRARY, TO BE A
SINGLE SOURCE FOR THE PURPOSE OF COMPLIANCE WITH THE APPLICABLE CONTRIB-
UTION LIMIT.
  S  2.    Subdivisions  1  and 2 of section 14-116 of the election law,
subdivision 1 as redesignated by chapter 9  of  the  laws  of  1978  and
subdivision 2 as amended by chapter 260 of the laws of 1981, are amended
and a new subdivision 3 is added to read as follows:
  1.  No  corporation  [or],  joint-stock association, LIMITED LIABILITY
COMPANY, PROFESSIONAL LIMITED LIABILITY COMPANY, PARTNERSHIP OR  LIMITED
LIABILITY  PARTNERSHIP  doing  business  in this state, except [a corpo-
ration 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 poli-
tical party, committee or organization,  or  for,  or  in  aid  of,  any
[corporation,  joint-stock  or  other  association]  ENTITY 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 poli-
tical  purpose  whatever, or for the reimbursement or indemnification of
any person for moneys or property so used. Any officer, director, stock-
holder, MEMBER, PARTNER, attorney or  agent  of  any  corporation  [or],
joint-stock association, LIMITED LIABILITY COMPANY, PROFESSIONAL LIMITED
LIABILITY  COMPANY,  PARTNERSHIP  OR LIMITED LIABILITY PARTNERSHIP which
violates any of the provisions of this  section,  who  participates  in,
aids,  abets  or  advises  or  consents  to any such violations, and any

S. 5282--A                          3

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,  OR ANY LIMITED LIABILITY COMPANY, PROFES-
SIONAL LIMITED LIABILITY COMPANY, PARTNERSHIP OR LIMITED LIABILITY PART-
NERSHIP may make expenditures, including  contributions,  not  otherwise
prohibited  by  law,  for political purposes, in an amount not to exceed
five thousand dollars 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.
  3.  FOR  THE  PURPOSES  OF SUBDIVISION TWO OF THIS SECTION, ALL OF THE
COMPONENT MEMBERS OF A CONTROLLED GROUP OF CORPORATIONS WITHIN THE MEAN-
ING OF SECTION ONE THOUSAND FIVE HUNDRED  SIXTY-THREE  OF  THE  INTERNAL
REVENUE CODE OF THE UNITED STATES SHALL BE DEEMED TO BE ONE CORPORATION,
AND  PROVIDED  FURTHER,  CONTRIBUTIONS GIVEN BY A SUBSIDIARY OF A CORPO-
RATION THAT IS WHOLLY OR  IN  PART  CONTROLLED  BY  THE  CORPORATION,  A
RELATED  LIMITED  LIABILITY  PARTNERSHIP  THAT  IS  WHOLLY  OR  IN  PART
CONTROLLED BY THE CORPORATION, OR A RELATED  LIMITED  LIABILITY  COMPANY
THAT  IS  WHOLLY OR IN PART CONTROLLED BY THE CORPORATION, ARE DEEMED TO
BE A CONTRIBUTION BY THE CORPORATION. ALL  SINGLE  SOURCES  OF  CONTRIB-
UTIONS, INCLUDING FROM AFFILIATED CORPORATE ENTITIES, WITHIN THE MEANING
OF  PARAGRAPH  (A) OF SECTION NINE HUNDRED TWELVE OF THE BUSINESS CORPO-
RATION LAW, TOGETHER MAY MAKE CONTRIBUTIONS, NOT OTHERWISE PROHIBITED BY
LAW, FOR POLITICAL PURPOSES, IN AN AMOUNT NOT TO  EXCEED  FIVE  THOUSAND
DOLLARS IN THE AGGREGATE IN ANY CALENDAR YEAR.
  S  3. Subdivision 2 of section 14-120 of the election law, as added by
chapter 79 of the laws of 1992, is amended and a new  subdivision  3  is
added to read as follows:
  2.  Notwithstanding subdivision one of this section, a partnership, as
defined in section ten of the partnership  law,  [may  be  considered  a
separate  entity for the purposes of this section, and as such] may make
contributions in the name of said partnership without  attributing  such
contributions to the individual members of the partnership provided that
any such contribution made by a partnership to a candidate or to a poli-
tical  committee, shall not exceed[, twenty-five hundred dollars. In the
event that such partnership contribution to any such candidate or  poli-
tical  committee  exceeds  twenty-five  hundred  dollars,  the aggregate
amount of such contribution shall be attributed to  each  partner  whose
share  of  the  contribution  exceeds ninety-nine dollars] FIVE THOUSAND
DOLLARS.  ANY PARTNERSHIP THAT IS RELATED TO A CORPORATION WILL HAVE ITS
CONTRIBUTIONS AGGREGATED WITH THAT RELATED CORPORATION FOR THE  PURPOSES
OF CALCULATING THE CONTRIBUTIONS GIVEN.  INDIVIDUALS MAY NOT ESTABLISH A
PARTNERSHIP,  AS  DEFINED IN SECTION TEN OF THE PARTNERSHIP LAW, FOR THE
PURPOSE OF EVADING THE CONTRIBUTION LIMITS THAT WOULD OTHERWISE APPLY TO
SUCH INDIVIDUAL.
  3. NOTWITHSTANDING SUBDIVISION ONE OF THIS SECTION, EVERY CONTRIBUTION
MADE BY A LIMITED LIABILITY COMPANY IS CONSIDERED TO BE  A  CONTRIBUTION
BY THE LIMITED LIABILITY COMPANY AS A WHOLE.  INDIVIDUALS MAY NOT ESTAB-
LISH A LIMITED LIABILITY COMPANY FOR THE PURPOSE OF EVADING THE CONTRIB-
UTION LIMITS THAT WOULD OTHERWISE APPLY TO SUCH INDIVIDUAL.
  S  4.    This act shall take effect on the sixtieth day after it shall
have become a law; provided, however, that all amendments to article  14
of  the  election law made by this act, which establish new contribution

S. 5282--A                          4

limits, shall take effect  January  1,  2011;  provided,  further,  that
contributions  legally  received prior to the effective date of this act
may be retained and expended for lawful purposes and shall  not  provide
the  basis for a violation of article 14 of the election law, as amended
by this act; and provided, further, that the state  board  of  elections
shall  notify  all candidates and political committees of the applicable
provisions of this act within thirty days  after  this  act  shall  have
become a law.

co-Sponsors

2009-S5282B - Details

Current Committee:: Senate Elections
Laws Affected:: Amd §§14-100, 14-116 & 14-120, El L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S89
2013-2014: S192

2009-S5282B - Summary

Establishes new contribution limits, expands the types of organizations prohibited from making contributions and aggregates certain contributions.

2009-S5282B - Sponsor Memo

                                 BILL NUMBER:  S5282B

 TITLE OF BILL :
An act to amend the election law, in relation to establishing new
contribution limits, expanding the types of organizations prohibited
from making contributions and aggregating certain contributions


 PURPOSE OF BILL :
To establish new limits on political contributions and expand upon the
types of organizations prohibited from making political contributions
under current laws as well as to aggregate certain other types of
contributions.

 SUMMARY OF PROVISIONS :
Section 1 of the bill amends section 14-100 of the election law by
adding three new subdivisions (12-14) to ensure that various corporate
forms-related limited liability companies and related limited
liability partnerships, as well as partnerships and limited liability
companies (LLCs)-are covered by contribution limits, and defines
"single source" to clarify that individuals and the corporate entities
they control are considered to be a single entity for the purpose of
contributions.

Section 2 of the bill amends 14-116 of the election law to apply the
$5,000 contribution limit to all additional business entities,

including limited liability companies (LLCs), and bans all
contributions from corporate summaries.

Section 3 of the bill amends subdivision 2 of section 14-120 of the
election law, as added by chapter 79 of the laws of 1992, to apply the
$5,000 contribution limit to partnership, related corporations, and
LLCs.

Section 4 of the bill establishes 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 an
enormous loophole in the current system by clarifying that separate
LLCs and partnerships and the individuals that control these corporate
entities, are considered a single source for the purposes of the
maximum allowable contribution to a political campaign. Since a single
individual or a small group of individuals often control multiple
corporate entities-in some cases a very large number of such
entities-the treatment of these entities as separate contributors
effectively allows one or more individuals to make a virtually
unlimited amount of campaign contributions. This bill would correct
this by attributing contributions from these entities to the members
of the LLC, in the same way the law currently attributes contributions
from partnerships to the individual partners. The bill also makes
limited liability companies and related limited liability partnerships
subject to the same restrictions to ensure that the contribution
limitations cannot be easily circumvented.

 LEGISLATIVE HISTORY :
None.

 FISCAL IMPACT ON THE STATE :
None.

 EFFECTIVE DATE :
This act shall take effect on the sixtieth day after it shall have
become a law; provided, however, that all amendments to article 14 of
the election law made by this act, which establish new contribution
limits, shall take effect January 1, 2011; provided, further, that
contributions legally received prior to the effective date of this act
may be retained and expended for lawful purposes and shall not provide
the basis for a violation of article 14 of the election law, as
amended by this act; and provided, further, that the state board of
elections shall notify all candidates and political committees of the
applicable provisions of this act within thirty days after this act
shall have become a law.

2009-S5282B - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5282--B

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced by Sens. SQUADRON, KRUEGER, SERRANO -- read twice and ordered
  printed,  and  when printed to be committed to the Committee on Corpo-
  rations, Authorities and Commissions  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee -- committee discharged and said bill committed to  the  Committee
  on  Elections -- committee discharged, bill amended, ordered reprinted
  as amended and recommitted to said committee

AN ACT to amend the  election  law,  in  relation  to  establishing  new
  contribution  limits,  expanding the types of organizations prohibited
  from making contributions and aggregating certain contributions

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    Section 14-100 of the election law is amended by adding
three new subdivisions 12, 13 and 14 to read as follows:
  12. "RELATED LIMITED LIABILITY  COMPANY"  MEANS  A  LIMITED  LIABILITY
COMPANY  THAT  IS  AN  AFFILIATE  OF A CORPORATION WITHIN THE MEANING OF
PARAGRAPH (A) OF SECTION NINE HUNDRED TWELVE OF THE BUSINESS CORPORATION
LAW. AS USED IN THIS ARTICLE, CORPORATION MEANS BOTH A FOR-PROFIT CORPO-
RATION WITHIN THE MEANING OF  SUBPARAGRAPH  FOUR  OF  PARAGRAPH  (A)  OF
SECTION  ONE  HUNDRED  TWO  OF THE BUSINESS CORPORATION LAW AS WELL AS A
NONPROFIT CORPORATION WITHIN THE MEANING OF SUBPARAGRAPH FIVE  OF  PARA-
GRAPH  (A)  OF SECTION ONE HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION
LAW.
  13. (1)  "RELATED  LIMITED  LIABILITY  PARTNERSHIP,"  CONSISTENT  WITH
SECTION  TEN OF THE PARTNERSHIP LAW, MEANS A PARTNERSHIP WITHOUT LIMITED
PARTNERS OPERATING UNDER AN AGREEMENT  GOVERNED  BY  THE  LAWS  OF  THIS
STATE,  WHICH  (A) IS NOT A PROFESSIONAL PARTNERSHIP UNDER THIS SECTION,
(B) IS AFFILIATED WITH A PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY,
FOREIGN PROFESSIONAL SERVICE  LIMITED  LIABILITY  COMPANY,  PROFESSIONAL
SERVICE  CORPORATION,  FOREIGN  PROFESSIONAL SERVICE CORPORATION, REGIS-
TERED LIMITED LIABILITY PARTNERSHIP THAT IS A  PROFESSIONAL  PARTNERSHIP

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07237-09-9

S. 5282--B                          2

UNDER  THIS  SECTION  OR  A  FOREIGN LIMITED LIABILITY PARTNERSHIP UNDER
CLAUSE (I) OR (II) OF THE EIGHTH UNDESIGNATED PARAGRAPH OF  SECTION  TWO
OF THE PARTNERSHIP LAW, AND (C) RENDERS SERVICES RELATED OR COMPLEMENTA-
RY  TO  THE  PROFESSIONAL  SERVICES RENDERED BY, OR PROVIDES SERVICES OR
FACILITIES TO, SUCH  PROFESSIONAL  SERVICE  LIMITED  LIABILITY  COMPANY,
FOREIGN  PROFESSIONAL  SERVICE  LIMITED  LIABILITY COMPANY, PROFESSIONAL
SERVICE CORPORATION, FOREIGN PROFESSIONAL  SERVICE  CORPORATION,  REGIS-
TERED  LIMITED  LIABILITY PARTNERSHIP OR FOREIGN LIMITED LIABILITY PART-
NERSHIP.
  (2) FOR PURPOSES OF THIS SUBDIVISION, SUCH A PARTNERSHIP IS AFFILIATED
WITH A PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY,  FOREIGN  PROFES-
SIONAL  SERVICE  LIMITED  LIABILITY COMPANY, PROFESSIONAL SERVICE CORPO-
RATION, FOREIGN PROFESSIONAL  SERVICE  CORPORATION,  REGISTERED  LIMITED
LIABILITY PARTNERSHIP OR FOREIGN LIMITED LIABILITY PARTNERSHIP IF (A) AT
LEAST  A  MAJORITY  OF  PARTNERS  IN ONE PARTNERSHIP ARE PARTNERS IN THE
OTHER PARTNERSHIP, (B) AT LEAST A MAJORITY OF THE PARTNERS IN EACH PART-
NERSHIP ALSO ARE PARTNERS, HOLD INTERESTS OR ARE MEMBERS  IN  A  LIMITED
LIABILITY COMPANY OR OTHER BUSINESS ENTITY, AND EACH PARTNERSHIP RENDERS
SERVICES PURSUANT TO AN AGREEMENT WITH SUCH LIMITED LIABILITY COMPANY OR
OTHER  BUSINESS  ENTITY,  OR (C) THE PARTNERSHIPS OR THE PARTNERSHIP AND
SUCH  PROFESSIONAL  SERVICE  LIMITED  LIABILITY  COMPANY,  SUCH  FOREIGN
PROFESSIONAL   SERVICE  LIMITED  LIABILITY  COMPANY,  SUCH  PROFESSIONAL
SERVICE CORPORATION, OR SUCH FOREIGN  PROFESSIONAL  SERVICE  CORPORATION
ARE  AFFILIATES  WITHIN  THE  MEANING  OF  PARAGRAPH (A) OF SECTION NINE
HUNDRED TWELVE OF THE BUSINESS CORPORATION LAW.
  14. "SINGLE SOURCE" MEANS ANY PERSON, PERSONS IN COMBINATION, OR ENTI-
TY WHO OR WHICH ESTABLISHES, MAINTAINS, OR CONTROLS ANOTHER  ENTITY  AND
EVERY  ENTITY SO ESTABLISHED, MAINTAINED, OR CONTROLLED, INCLUDING EVERY
POLITICAL COMMITTEE ESTABLISHED, MAINTAINED, OR CONTROLLED BY  THE  SAME
PERSON,  PERSONS  IN COMBINATION, OR ENTITY. IF A CANDIDATE ACCEPTS MORE
THAN ONE CONTRIBUTION FROM A SINGLE SOURCE, THE CONTRIBUTIONS  SHALL  BE
TOTALED  TO  DETERMINE  THE PARTICIPANT'S OR CANDIDATE'S COMPLIANCE WITH
THE APPLICABLE CONTRIBUTION LIMIT. A GENERAL PARTNER OR GENERAL  MANAGER
AND  EACH PARTNERSHIP AND LIMITED LIABILITY COMPANY IT CONTROLS SHALL BE
PRESUMED, IN THE ABSENCE OF EVIDENCE DEMONSTRATING THE CONTRARY, TO BE A
SINGLE SOURCE FOR THE PURPOSE OF COMPLIANCE WITH THE APPLICABLE CONTRIB-
UTION LIMIT.
  S 2.  Subdivisions 1 and 2 of section  14-116  of  the  election  law,
subdivision  1  as  redesignated  by  chapter  9 of the laws of 1978 and
subdivision 2 as amended by chapter 260 of the laws of 1981, are amended
and a new subdivision 3 is added to read as follows:
  1. No corporation [or],  joint-stock  association,  LIMITED  LIABILITY
COMPANY,  PROFESSIONAL LIMITED LIABILITY COMPANY, PARTNERSHIP OR LIMITED
LIABILITY PARTNERSHIP doing business in this  state,  except  [a  corpo-
ration  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  poli-
tical  party,  committee  or  organization,  or  for,  or in aid of, any
[corporation, joint-stock or  other  association]  ENTITY  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 poli-
tical purpose whatever, or for the reimbursement or  indemnification  of
any person for moneys or property so used. Any officer, director, stock-
holder,  MEMBER,  PARTNER,  attorney  or  agent of any corporation [or],
joint-stock association, LIMITED LIABILITY COMPANY, PROFESSIONAL LIMITED
LIABILITY COMPANY, PARTNERSHIP OR LIMITED  LIABILITY  PARTNERSHIP  which

S. 5282--B                          3

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,  OR ANY LIMITED LIABILITY COMPANY, PROFES-
SIONAL LIMITED LIABILITY COMPANY, PARTNERSHIP OR LIMITED LIABILITY PART-
NERSHIP may make expenditures, including  contributions,  not  otherwise
prohibited  by  law,  for political purposes, in an amount not to exceed
five thousand dollars 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.
  3.  FOR  THE  PURPOSES  OF SUBDIVISION TWO OF THIS SECTION, ALL OF THE
COMPONENT MEMBERS OF A CONTROLLED GROUP OF CORPORATIONS WITHIN THE MEAN-
ING OF SECTION ONE THOUSAND FIVE HUNDRED  SIXTY-THREE  OF  THE  INTERNAL
REVENUE CODE OF THE UNITED STATES SHALL BE DEEMED TO BE ONE CORPORATION,
AND  PROVIDED  FURTHER,  CONTRIBUTIONS GIVEN BY A SUBSIDIARY OF A CORPO-
RATION THAT IS WHOLLY OR  IN  PART  CONTROLLED  BY  THE  CORPORATION,  A
RELATED  LIMITED  LIABILITY  PARTNERSHIP  THAT  IS  WHOLLY  OR  IN  PART
CONTROLLED BY THE CORPORATION, OR A RELATED  LIMITED  LIABILITY  COMPANY
THAT  IS  WHOLLY OR IN PART CONTROLLED BY THE CORPORATION, ARE DEEMED TO
BE A CONTRIBUTION BY THE CORPORATION. ALL  SINGLE  SOURCES  OF  CONTRIB-
UTIONS, INCLUDING FROM AFFILIATED CORPORATE ENTITIES, WITHIN THE MEANING
OF  PARAGRAPH  (A) OF SECTION NINE HUNDRED TWELVE OF THE BUSINESS CORPO-
RATION LAW, TOGETHER MAY MAKE CONTRIBUTIONS, NOT OTHERWISE PROHIBITED BY
LAW, FOR POLITICAL PURPOSES, IN AN AMOUNT NOT TO  EXCEED  FIVE  THOUSAND
DOLLARS IN THE AGGREGATE IN ANY CALENDAR YEAR.
  S  3. Subdivision 2 of section 14-120 of the election law, as added by
chapter 79 of the laws of 1992, is amended and a new  subdivision  3  is
added to read as follows:
  2.  Notwithstanding subdivision one of this section, a partnership, as
defined in section ten of the partnership  law,  [may  be  considered  a
separate  entity for the purposes of this section, and as such] may make
contributions in the name of said partnership without  attributing  such
contributions to the individual members of the partnership provided that
any such contribution made by a partnership to a candidate or to a poli-
tical  committee, shall not exceed[, twenty-five hundred dollars. In the
event that such partnership contribution to any such candidate or  poli-
tical  committee  exceeds  twenty-five  hundred  dollars,  the aggregate
amount of such contribution shall be attributed to  each  partner  whose
share  of  the  contribution  exceeds ninety-nine dollars] FIVE THOUSAND
DOLLARS.  ANY PARTNERSHIP THAT IS RELATED TO A CORPORATION WILL HAVE ITS
CONTRIBUTIONS AGGREGATED WITH THAT RELATED CORPORATION FOR THE  PURPOSES
OF CALCULATING THE CONTRIBUTIONS GIVEN.  INDIVIDUALS MAY NOT ESTABLISH A
PARTNERSHIP,  AS  DEFINED IN SECTION TEN OF THE PARTNERSHIP LAW, FOR THE
PURPOSE OF EVADING THE CONTRIBUTION LIMITS THAT WOULD OTHERWISE APPLY TO
SUCH INDIVIDUAL.
  3. NOTWITHSTANDING SUBDIVISION ONE OF THIS SECTION, EVERY CONTRIBUTION
MADE BY A LIMITED LIABILITY COMPANY IS CONSIDERED TO BE  A  CONTRIBUTION
BY THE LIMITED LIABILITY COMPANY AS A WHOLE.  INDIVIDUALS MAY NOT ESTAB-
LISH A LIMITED LIABILITY COMPANY FOR THE PURPOSE OF EVADING THE CONTRIB-
UTION LIMITS THAT WOULD OTHERWISE APPLY TO SUCH INDIVIDUAL.

S. 5282--B                          4

  S  4.    This  act  shall  take  effect January 1, 2011; provided that
contributions legally received prior to the effective date of  this  act
may  be  retained and expended for lawful purposes and shall not provide
the basis for a violation of article 14 of the election law, as  amended
by  this  act;  and provided, further, that the state board of elections
shall notify all candidates and political committees of  the  applicable
provisions  of  this  act  within  thirty days after this act shall have
become a law.

co-Sponsors

2009-S5282C (ACTIVE) - Details

Current Committee:: Senate Elections
Laws Affected:: Amd §§14-100, 14-116 & 14-120, El L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S89
2013-2014: S192

2009-S5282C (ACTIVE) - Summary

Establishes new contribution limits, expands the types of organizations prohibited from making contributions and aggregates certain contributions.

2009-S5282C (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5282C

 TITLE OF BILL :
An act to amend the election law, in relation to establishing new
contribution limits, expanding the types of organizations prohibited
from making contributions and aggregating certain contributions


 PURPOSE OF BILL :
To establish new limits on political contributions and expand upon the
types of organizations prohibited from making political contributions
under current laws as well as to aggregate certain other types of
contributions.

 SUMMARY OF PROVISIONS :
Section 1 of the bill amends section 14-100 of the election law by
adding three new subdivisions (12-14) to ensure that various corporate
forms-related limited liability companies and related limited
liability partnerships, as well as partnerships and limited liability
companies (LLCs)-are covered by contribution limits, and defines
"single source" to clarify that individuals and the corporate entities
they control are considered to be a single entity for the purpose of
contributions.

Section 2 of the bill amends 14-116 of the election law to apply the
$5,000 contribution limit to all additional business entities,

including limited liability companies (LLCs), and bans all
contributions from corporate summaries.

Section 3 of the bill amends subdivision 2 of section 14-120 of the
election law, as added by chapter 79 of the laws of 1992, to apply the
$5,000 contribution limit to partnership, related corporations, and
LLCs.

Section 4 of the bill adds a severability clause.

Section 5 of the bill establishes 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 an
enormous loophole in the current system by clarifying that separate
LLCs and partnerships and the individuals that control these corporate
entities, are considered a single source for the purposes of the
maximum allowable contribution to a political campaign. since a single
individual or a small group of individuals often control multiple
corporate entities-in some cases a very large number of such
entities-the treatment of these entities as separate contributors
effectively allows one or more individuals to make a virtually
unlimited amount of campaign contributions.  This bill would correct
this by attributing contributions from these entities to the members
of the LLC, in the same way the law currently attributes contributions
from partnerships to the individual partners.  The bill also makes
limited liability companies and related limited liability partnerships
subject to the same restrictions to ensure that the contribution
limitations cannot be easily circumvented.

 LEGISLATIVE HISTORY :  None.

 FISCAL IMPACT ON THE STATE :
None.

 EFFECTIVE DATE :
This act shall take effect on the sixtieth day after it shall have
become a law; provided, however, that all amendments to article 14 of
the election law made by this act, which establish new contribution
limits, shall take effect January 1, 2011; provided, further, that
contributions legally received prior to the effective date of this act
may be retained and expended for lawful purposes and shall not provide
the basis for a violation of article 14 of the election law, as
amended by this act; and provided, further, that the state board of
elections shall notify all candidates and political committees of the
applicable provisions of this act within thirty days after this act
shall have become a law.

2009-S5282C (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5282--C

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced  by  Sens. SQUADRON, KRUEGER, SERRANO, STAVISKY -- read twice
  and ordered printed, and when printed to be committed to the Committee
  on Corporations, Authorities and Commissions -- committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee -- committee discharged  and  said  bill  committed  to  the
  Committee  on Elections -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee --  recommitted
  to the Committee on Elections in accordance with Senate Rule 6, sec. 8
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT to amend the  election  law,  in  relation  to  establishing  new
  contribution  limits,  expanding the types of organizations prohibited
  from making contributions and aggregating certain contributions

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    Section 14-100 of the election law is amended by adding
three new subdivisions 12, 13 and 14 to read as follows:
  12. "RELATED LIMITED LIABILITY  COMPANY"  MEANS  A  LIMITED  LIABILITY
COMPANY  THAT  IS  AN  AFFILIATE  OF A CORPORATION WITHIN THE MEANING OF
PARAGRAPH (A) OF SECTION NINE HUNDRED TWELVE OF THE BUSINESS CORPORATION
LAW. AS USED IN THIS ARTICLE, CORPORATION MEANS BOTH A FOR-PROFIT CORPO-
RATION WITHIN THE MEANING OF  SUBPARAGRAPH  FOUR  OF  PARAGRAPH  (A)  OF
SECTION  ONE  HUNDRED  TWO  OF THE BUSINESS CORPORATION LAW AS WELL AS A
NONPROFIT CORPORATION WITHIN THE MEANING OF SUBPARAGRAPH FIVE  OF  PARA-
GRAPH  (A)  OF SECTION ONE HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION
LAW.
  13. (1)  "RELATED  LIMITED  LIABILITY  PARTNERSHIP,"  CONSISTENT  WITH
SECTION  TEN OF THE PARTNERSHIP LAW, MEANS, UNLESS THE CONTEXT OTHERWISE
REQUIRES, A PARTNERSHIP (I) FORMED BY TWO OR MORE  PERSONS  PURSUANT  TO
THE  PARTNERSHIP  LAW  OR WHICH COMPLIES WITH SUBDIVISION (A) OF SECTION
121-1202 OF THE PARTNERSHIP LAW AND (II)  HAVING  ONE  OR  MORE  GENERAL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07237-13-0

S. 5282--C                          2

PARTNERS  AND  ONE  OR MORE LIMITED PARTNERS, WHICH (A) IS NOT A PROFES-
SIONAL PARTNERSHIP UNDER THIS SECTION, (B) IS AFFILIATED WITH A  PROFES-
SIONAL  SERVICE  LIMITED LIABILITY COMPANY, FOREIGN PROFESSIONAL SERVICE
LIMITED  LIABILITY  COMPANY,  PROFESSIONAL  SERVICE CORPORATION, FOREIGN
PROFESSIONAL SERVICE CORPORATION, REGISTERED LIMITED LIABILITY  PARTNER-
SHIP  THAT IS A PROFESSIONAL PARTNERSHIP UNDER THIS SECTION OR A FOREIGN
LIMITED LIABILITY PARTNERSHIP UNDER CLAUSE (I) OR  (II)  OF  THE  EIGHTH
UNDESIGNATED  PARAGRAPH  OF  SECTION TWO OF THE PARTNERSHIP LAW, AND (C)
RENDERS SERVICES RELATED OR COMPLEMENTARY TO THE  PROFESSIONAL  SERVICES
RENDERED  BY,  OR  PROVIDES SERVICES OR FACILITIES TO, SUCH PROFESSIONAL
SERVICE LIMITED LIABILITY COMPANY, FOREIGN PROFESSIONAL SERVICE  LIMITED
LIABILITY  COMPANY,  PROFESSIONAL  SERVICE  CORPORATION, FOREIGN PROFES-
SIONAL SERVICE CORPORATION, REGISTERED LIMITED LIABILITY PARTNERSHIP  OR
FOREIGN LIMITED LIABILITY PARTNERSHIP.
  (2) FOR PURPOSES OF THIS SUBDIVISION, SUCH A PARTNERSHIP IS AFFILIATED
WITH  A  PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY, FOREIGN PROFES-
SIONAL SERVICE LIMITED LIABILITY COMPANY,  PROFESSIONAL  SERVICE  CORPO-
RATION,  FOREIGN  PROFESSIONAL  SERVICE  CORPORATION, REGISTERED LIMITED
LIABILITY PARTNERSHIP OR FOREIGN LIMITED LIABILITY PARTNERSHIP IF (A) AT
LEAST A MAJORITY OF PARTNERS IN ONE  PARTNERSHIP  ARE  PARTNERS  IN  THE
OTHER PARTNERSHIP, (B) AT LEAST A MAJORITY OF THE PARTNERS IN EACH PART-
NERSHIP  ALSO  ARE  PARTNERS, HOLD INTERESTS OR ARE MEMBERS IN A LIMITED
LIABILITY COMPANY OR OTHER BUSINESS ENTITY, AND EACH PARTNERSHIP RENDERS
SERVICES PURSUANT TO AN AGREEMENT WITH SUCH LIMITED LIABILITY COMPANY OR
OTHER BUSINESS ENTITY, OR (C) THE PARTNERSHIPS OR  THE  PARTNERSHIP  AND
SUCH  PROFESSIONAL  SERVICE  LIMITED  LIABILITY  COMPANY,  SUCH  FOREIGN
PROFESSIONAL  SERVICE  LIMITED  LIABILITY  COMPANY,  SUCH   PROFESSIONAL
SERVICE  CORPORATION,  OR  SUCH FOREIGN PROFESSIONAL SERVICE CORPORATION
ARE AFFILIATES WITHIN THE MEANING  OF  PARAGRAPH  (A)  OF  SECTION  NINE
HUNDRED TWELVE OF THE BUSINESS CORPORATION LAW.
  14. "SINGLE SOURCE" MEANS ANY PERSON, PERSONS IN COMBINATION, OR ENTI-
TY  WHO  OR WHICH ESTABLISHES, MAINTAINS, OR CONTROLS ANOTHER ENTITY AND
EVERY ENTITY SO ESTABLISHED, MAINTAINED, OR CONTROLLED, INCLUDING  EVERY
POLITICAL  COMMITTEE  ESTABLISHED, MAINTAINED, OR CONTROLLED BY THE SAME
PERSON, PERSONS IN COMBINATION, OR ENTITY. IF A CANDIDATE  ACCEPTS  MORE
THAN  ONE  CONTRIBUTION FROM A SINGLE SOURCE, THE CONTRIBUTIONS SHALL BE
TOTALED TO DETERMINE THE  CANDIDATE'S  COMPLIANCE  WITH  THE  APPLICABLE
CONTRIBUTION  LIMIT. A GENERAL PARTNER OR GENERAL MANAGER AND EACH PART-
NERSHIP AND LIMITED LIABILITY COMPANY IT CONTROLS SHALL BE PRESUMED,  IN
THE  ABSENCE  OF  EVIDENCE  DEMONSTRATING  THE  CONTRARY, TO BE A SINGLE
SOURCE FOR THE PURPOSE OF COMPLIANCE WITH  THE  APPLICABLE  CONTRIBUTION
LIMIT.
  S  2.    Subdivisions  1  and 2 of section 14-116 of the election law,
subdivision 1 as redesignated by chapter 9  of  the  laws  of  1978  and
subdivision 2 as amended by chapter 260 of the laws of 1981, are amended
and a new subdivision 3 is added to read as follows:
  1.  No  corporation  [or],  joint-stock association, LIMITED LIABILITY
COMPANY, PROFESSIONAL LIMITED LIABILITY COMPANY, PARTNERSHIP OR  LIMITED
LIABILITY  PARTNERSHIP  doing  business  in this state, except [a corpo-
ration 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 poli-
tical party, committee or organization,  or  for,  or  in  aid  of,  any
[corporation,  joint-stock  or  other  association]  ENTITY 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 poli-

S. 5282--C                          3

tical  purpose  whatever, or for the reimbursement or indemnification of
any person for moneys or property so used. Any officer, director, stock-
holder, MEMBER, PARTNER, attorney or  agent  of  any  corporation  [or],
joint-stock association, LIMITED LIABILITY COMPANY, PROFESSIONAL LIMITED
LIABILITY  COMPANY,  PARTNERSHIP  OR LIMITED LIABILITY PARTNERSHIP 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,  OR ANY LIMITED LIABILITY COMPANY, PROFES-
SIONAL LIMITED LIABILITY COMPANY, PARTNERSHIP OR LIMITED LIABILITY PART-
NERSHIP may make expenditures, including  contributions,  not  otherwise
prohibited  by  law,  for political purposes, in an amount not to exceed
five thousand dollars 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.
  3.  FOR  THE  PURPOSES  OF SUBDIVISION TWO OF THIS SECTION, ALL OF THE
COMPONENT MEMBERS OF A CONTROLLED GROUP OF CORPORATIONS WITHIN THE MEAN-
ING OF SECTION ONE THOUSAND FIVE HUNDRED  SIXTY-THREE  OF  THE  INTERNAL
REVENUE CODE OF THE UNITED STATES SHALL BE DEEMED TO BE ONE CORPORATION,
AND  PROVIDED  FURTHER,  CONTRIBUTIONS GIVEN BY A SUBSIDIARY OF A CORPO-
RATION THAT IS WHOLLY OR  IN  PART  CONTROLLED  BY  THE  CORPORATION,  A
RELATED  LIMITED  LIABILITY  PARTNERSHIP  THAT  IS  WHOLLY  OR  IN  PART
CONTROLLED BY THE CORPORATION, OR A RELATED  LIMITED  LIABILITY  COMPANY
THAT  IS  WHOLLY OR IN PART CONTROLLED BY THE CORPORATION, ARE DEEMED TO
BE A CONTRIBUTION BY THE CORPORATION. ALL  SINGLE  SOURCES  OF  CONTRIB-
UTIONS, INCLUDING FROM AFFILIATED CORPORATE ENTITIES, WITHIN THE MEANING
OF  PARAGRAPH  (A) OF SECTION NINE HUNDRED TWELVE OF THE BUSINESS CORPO-
RATION LAW, TOGETHER MAY MAKE CONTRIBUTIONS, NOT OTHERWISE PROHIBITED BY
LAW, FOR POLITICAL PURPOSES, IN AN AMOUNT NOT TO  EXCEED  FIVE  THOUSAND
DOLLARS IN THE AGGREGATE IN ANY CALENDAR YEAR.
  S  3. Subdivision 2 of section 14-120 of the election law, as added by
chapter 79 of the laws of 1992, is amended and a new  subdivision  3  is
added to read as follows:
  2.  Notwithstanding subdivision one of this section, a partnership, as
defined in section ten of the partnership  law,  [may  be  considered  a
separate  entity for the purposes of this section, and as such] may make
contributions in the name of said partnership without  attributing  such
contributions to the individual members of the partnership provided that
any such contribution made by a partnership to a candidate or to a poli-
tical  committee, shall not exceed[, twenty-five hundred dollars. In the
event that such partnership contribution to any such candidate or  poli-
tical  committee  exceeds  twenty-five  hundred  dollars,  the aggregate
amount of such contribution shall be attributed to  each  partner  whose
share  of  the  contribution  exceeds ninety-nine dollars] FIVE THOUSAND
DOLLARS.  ANY PARTNERSHIP THAT IS RELATED TO A CORPORATION WILL HAVE ITS
CONTRIBUTIONS AGGREGATED WITH THAT RELATED CORPORATION FOR THE  PURPOSES
OF CALCULATING THE CONTRIBUTIONS GIVEN.  INDIVIDUALS MAY NOT ESTABLISH A
PARTNERSHIP,  AS  DEFINED IN SECTION TEN OF THE PARTNERSHIP LAW, FOR THE
PURPOSE OF EVADING THE CONTRIBUTION LIMITS THAT WOULD OTHERWISE APPLY TO
SUCH INDIVIDUAL.

S. 5282--C                          4

  3. NOTWITHSTANDING SUBDIVISION ONE OF THIS SECTION, EVERY CONTRIBUTION
MADE BY A LIMITED LIABILITY COMPANY IS CONSIDERED TO BE  A  CONTRIBUTION
BY THE LIMITED LIABILITY COMPANY AS A WHOLE.  INDIVIDUALS MAY NOT ESTAB-
LISH A LIMITED LIABILITY COMPANY FOR THE PURPOSE OF EVADING THE CONTRIB-
UTION LIMITS THAT WOULD OTHERWISE APPLY TO SUCH INDIVIDUAL.
  S 4. Severability. If any clause, sentence, paragraph, section or part
of  this act shall be adjudged by any court of competent jurisdiction to
be invalid and after exhaustion of  all  further  judicial  review,  the
judgment  shall  not affect, impair or invalidate the remainder thereof,
but shall be confined in its operation to the  clause,  sentence,  para-
graph,  section or part of this act directly involved in the controversy
in which the judgment shall have been rendered.
  S 5.   This act shall take  effect  January  1,  2011;  provided  that
contributions  legally  received prior to the effective date of this act
may be retained and expended for lawful purposes and shall  not  provide
the  basis for a violation of article 14 of the election law, as amended
by this act; and provided, further, that the state  board  of  elections
shall  notify  all candidates and political committees of the applicable
provisions of this act within thirty days  after  this  act  shall  have
become a law.

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Senate Bill S5282

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Archive: Last Bill Status - In Senate Committee Elections Committee

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Sponsored By

Daniel L. Squadron

Archive: Last Bill Status - In Senate Committee Elections Committee

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co-Sponsors

Liz Krueger

Jose M. Serrano

Toby Ann Stavisky

2009-S5282B - Details

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co-Sponsors

Liz Krueger

Jose M. Serrano

Toby Ann Stavisky

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