senate Bill S38

2011-2012 Legislative Session

Relates to political contributions made by limited liability companies

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 12, 2012 committee discharged and committed to rules
Feb 27, 2012 notice of committee consideration - requested
Jan 04, 2012 referred to elections
Jan 05, 2011 referred to elections

Co-Sponsors

S38 - Bill Details

See Assembly Version of this Bill:
A5916
Current Committee:
Law Section:
Election Law
Laws Affected:
Amd §14-120, El L
Versions Introduced in 2009-2010 Legislative Session:
S5277, A7069

S38 - Bill Texts

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Relates to political contributions made by limited liability companies.

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BILL NUMBER:S38

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:
2009-10: S.5277 (Squadron) - Elections, A.7069 (Kavanagh) - Election Law

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                   38

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced by Sens. SQUADRON, HASSELL-THOMPSON, KRUEGER, SERRANO -- 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  contributions  from
  limited liability companies

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

  Section 1. Subdivision 2 of section 14-120 of  the  election  law,  as
added by chapter 79 of the laws of 1992, is amended to read as follows:
  2.  Notwithstanding subdivision one of this section, a partnership, as
defined in section ten of the partnership law, OR  A  LIMITED  LIABILITY
COMPANY,  AS DEFINED IN SECTION ONE HUNDRED TWO OF THE LIMITED LIABILITY
COMPANY 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  OR  LIMITED  LIABILITY  COMPANY  without  attributing  such
contributions  to  the  individual members of the partnership OR LIMITED
LIABILITY COMPANY provided that any such contribution made by a partner-
ship OR LIMITED LIABILITY COMPANY to  a  candidate  or  to  a  political
committee, shall not exceed[,] twenty-five hundred dollars. In the event
that  such  partnership OR LIMITED LIABILITY COMPANY contribution to any
such  candidate  or  political  committee  exceeds  twenty-five  hundred
dollars,  the  aggregate amount of such contribution shall be attributed
to each partner OR LIMITED LIABILITY COMPANY MEMBER whose share  of  the
contribution exceeds ninety-nine dollars.
  S 2. This act shall take effect immediately.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00058-01-1

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