assembly Bill A6005

2013-2014 Legislative Session

Relates to establishing the L3C act regarding low-profit limited liability companies

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Archive: Last Bill Status - In Assembly Committee


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

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Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to corporations, authorities and commissions
Mar 13, 2013 referred to corporations, authorities and commissions

A6005 (ACTIVE) - Details

See Senate Version of this Bill:
S1825
Current Committee:
Assembly Corporations, Authorities And Commissions
Law Section:
Limited Liability Company Law
Laws Affected:
Amd ยงยง102, 203, 204, 211 & 701, Lim Lil L
Versions Introduced in Other Legislative Sessions:
2009-2010: A10414, S6726
2011-2012: A6116, S3011
2015-2016: A1209, S3550
2017-2018: A5859, A10060

A6005 (ACTIVE) - Summary

Relates to establishing the L3C act regarding low-profit limited liability companies.

A6005 (ACTIVE) - Bill Text download pdf

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

                                  6005

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             March 13, 2013
                               ___________

Introduced  by M. of A. BRENNAN -- read once and referred to the Commit-
  tee on Corporations, Authorities and Commissions

AN ACT to amend the limited liability company law, in relation to estab-
  lishing the L3C act regarding low-profit limited liability companies

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

  Section 1. This act may be known and shall be cited as the "L3C act".
  S  2.  Section  102 of the limited liability company law is amended by
adding a new subdivision (n-1) to read as follows:
  (N-1) "LOW-PROFIT LIMITED LIABILITY COMPANY" MEANS A LIMITED LIABILITY
COMPANY THAT HAS SET FORTH IN ITS ARTICLES OF  ORGANIZATION  A  BUSINESS
PURPOSE  THAT  SATISFIES,  AND THAT IS AT ALL TIMES OPERATED TO SATISFY,
EACH OF THE FOLLOWING REQUIREMENTS:
  (I) THE LIMITED LIABILITY COMPANY SIGNIFICANTLY  FURTHERS  THE  ACCOM-
PLISHMENT  OF  ONE OR MORE CHARITABLE OR EDUCATIONAL PURPOSES WITHIN THE
MEANING OF SECTION 170(C)(2)(B) OF THE INTERNAL REVENUE CODE OF 1986 (26
U.S.C. S 170(C)(2)(B)), AND WOULD NOT  HAVE  BEEN  FORMED  BUT  FOR  ITS
RELATIONSHIP   TO   THE  ACCOMPLISHMENT  OF  CHARITABLE  OR  EDUCATIONAL
PURPOSES;
  (II) NO SIGNIFICANT PURPOSE OF THE LIMITED LIABILITY  COMPANY  IS  THE
PRODUCTION OF INCOME OR THE APPRECIATION OF PROPERTY; PROVIDED, HOWEVER,
THAT  THE  FACT  THAT THE LIMITED LIABILITY COMPANY PRODUCES SIGNIFICANT
INCOME OR CAPITAL APPRECIATION  SHALL  NOT,  IN  THE  ABSENCE  OF  OTHER
FACTORS,  BE  CONCLUSIVE EVIDENCE OF A SIGNIFICANT PURPOSE INVOLVING THE
PRODUCTION OF INCOME OR THE APPRECIATION OF PROPERTY; AND
  (III) NO PURPOSE OF THE LIMITED LIABILITY COMPANY IS TO ACCOMPLISH ONE
OR MORE POLITICAL OR LEGISLATIVE PURPOSES WITHIN THE MEANING OF  SECTION
170(C)(2)(D)  OF  THE  INTERNAL  REVENUE  CODE  OF  1986  (26  U.S.C.  S
170(C)(2)(D)).

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04990-01-3

A. 6005                             2