NY State Senate Bill 2015-S60

Archive: Last Bill Status - In Senate Committee Codes 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

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 09, 2016	reported and committed to codes
Mar 07, 2016	notice of committee consideration - requested
Jan 22, 2016	print number 60b
Jan 22, 2016	amend and recommit to elections
Jan 06, 2016	referred to elections
Jun 01, 2015	print number 60a
Jun 01, 2015	amend and recommit to corporations, authorities and commissions
Apr 27, 2015	reported and committed to corporations, authorities and commissions
Mar 04, 2015	notice of committee consideration - requested
Jan 07, 2015	referred to elections

Votes

- May 9, 2016 - Elections Committee Vote
  S60
  
  Aye
  
  4
  
  Nay
  
  0
  
  Aye with Reservations
  
  4
  
  Absent
  
  0
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Elections Committee Vote: May 9, 2016
      
      aye (4)
      
      Avella
      
      Comrie
      
      Dilan
      
      Krueger
      
      aye wr (4)
      
      Akshar
      
      Amedore
      
      Gallivan
      
      Marchione
      
      excused (1)
      
      Nozzolio
  Apr 27, 2015 - Elections Committee Vote
  S60
  
  Aye
  
  4
  
  Nay
  
  0
  
  Aye with Reservations
  
  4
  
  Absent
  
  0
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Elections Committee Vote: Apr 27, 2015
      
      aye (4)
      
      Avella
      
      Comrie
      
      Dilan
      
      Krueger
      
      aye wr (4)
      
      Funke
      
      Gallivan
      
      Marchione
      
      Nozzolio
      
      excused (1)
      
      Amedore

Bill Amendments

Original

B (Active)

co-Sponsors

View additional co-sponsors

2015-S60 - Details

Current Committee:: Senate Codes
Law Section:: Election Law
Laws Affected:: Amd §14-116, El L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S8395
2011-2012: S30
2013-2014: S166
2017-2018: S496, S7022

2015-S60 - Summary

Relates to political contributions by limited liability companies.

2015-S60 - Sponsor Memo

2015-S60 - Bill Text download pdf

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

                                   60

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

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 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 organization, 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  may  make  expenditures,  including  contrib-
utions,  not  otherwise prohibited by law, for political purposes, in an
amount not to exceed [five] ONE thousand dollars in the aggregate in any

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

                                                           LBD00169-01-5

S. 60                               2

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 immediately.

co-Sponsors

View additional co-sponsors

2015-S60A - Details

Current Committee:: Senate Codes
Law Section:: Election Law
Laws Affected:: Amd §14-116, El L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S8395
2011-2012: S30
2013-2014: S166
2017-2018: S496, S7022

2015-S60A - Summary

Relates to political contributions by limited liability companies.

2015-S60A - Sponsor Memo

                                BILL NUMBER:S60A

TITLE OF BILL:  An act to amend the election law, in relation to
political contributions

PURPOSE:  This bill would add Limited Liability Companies (LLCs) to
section 14-116 of the election law, so that LLCs are made subject to
the existing contribution limits for corporations.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill adds LLCs to Election Law § 14-116 to provide
that LLCs are subject to the aggregate contribution limit of $5000
that applies to corporations.

Section 2 of the bill establishes the effective date.

JUSTIFICATION:  Current law, as interpreted by the State Board of
Elections (SBOE), allows a single individual to make multiple
contributions to the same candidate or committee through separate
LLCs. Often it is difficult to know who is ultimately directing the
contributions.

The election law does not explicitly address contributions by LLCs.
Instead, pursuant to a 1996 SBOE decision, each LLC is treated as a
separate contributor even if many of them are controlled by the same

person. As a result, LLC contributions are governed in a way that is
inconsistent with all other types of campaign contributions. The
contribution limits that apply to corporations do not apply; the
assign- ment of contributions to members required of partnerships does
not exist; and the transparency and protection against an individual
contributing above the legal limits is absent.

In April, 2015, in the face of public outcry and despite the support
of two of the four SBOE members, the board declined to revisit its
1996 decision, leaving it up to the legislature to act. Thereafter,
the Daily News reported that the LLC loophole was used to contribute
$25 million to state politicians over the past decade and that LLCs
linked to one individual have used it to contribute $13.2 million
since 2000 (Bill Hammond, NY Daily News, April 28, 2015,
www.nydailynews.com/opinion/bill-hammond-bending-cash-article-1.22026
28).

This bill would apply to LLCs the provisions that already apply to
corporations. Treating LLCs like corporations would clarify the
election law with respect to LLCs, provide uniformity, and close an
egregious loophole that has allowed certain individuals to evade
limits that other contributors adhere to.

PRIOR LEGISLATIVE HISTORY:  2013-2014: S166/A5067- REFERRED TO
ELECTIONS/Advanced to Third Reading (Assembly) 2011-2012: S30/A2493-
REFERRED TO ELECTIONS 2010: S8395/A11355- REFERRED TO RULES

EFFECTIVE DATE:  This act shall take effect immediately.

2015-S60A - Bill Text download pdf

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

                                  60--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sens.  SQUADRON,  ADDABBO,  COMRIE, ESPAILLAT, GIANARIS,
  HOYLMAN, KENNEDY, PANEPINTO, PERKINS -- read twice and ordered  print-
  ed,  and when printed to be committed to the Committee on Elections --
  reported favorably from said committee and 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 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 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 organization, 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.

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

                                                           LBD00169-10-5

S. 60--A                            2

  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 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.
  S 2. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

2015-S60B (ACTIVE) - Details

Current Committee:: Senate Codes
Law Section:: Election Law
Laws Affected:: Amd §14-116, El L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S8395
2011-2012: S30
2013-2014: S166
2017-2018: S496, S7022

2015-S60B (ACTIVE) - Summary

Relates to political contributions by limited liability companies.

2015-S60B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S60B

 TITLE OF BILL :

An act to amend the election law, in relation to political
contributions

 PURPOSE :

This bill would add Limited Liability Companies (LLCs) to section
14-116 of the election law, so that LLCs are made subject to the
existing contribution limits for corporations. This bill would also
increase transparency by requiring disclosure of the identity of
individuals with membership interests in LLCs and attribute
contributions to members of LLCs.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 of the bill adds LLCs to Election Law § 14-116 to provide
that LLCs are subject to the aggregate contribution limit of $5000
that applies to corporations. Section 1 also requires disclosure of
the identity of all direct and indirect owners of the membership
interests in the LLC and the proportion of each direct and indirect
member's ownership interest in the LLC.

Section 2 amends § 14-120 of the Election Law by requiring all

contributions made to a campaign or political committee by a LLC be
attributed to each member of the LLC in proportion to the member's
ownership interest. In addition, the State Board of Elections shall
enact regulations that prevent the avoidance of the established rules.

Section 3 of the bill establishes the effective date.

 JUSTIFICATION :

Current law, as interpreted by the State Board of Elections (SBOE),
allows a single individual to make multiple contributions to the same
candidate or committee through separate LLCs. Often it is difficult to
know who is ultimately directing the contributions.

The election law does not explicitly address contributions by LLCs.
Instead, pursuant to a 1996 SBOE decision, each LLC is treated as a
separate contributor even if many of them are controlled by the same
person. As a result, LLC contributions are governed in a way that is
inconsistent with all other types of campaign contributions. The
contribution limits that apply to corporations do not apply; the
assignment of contributions to members required of partnerships does
not exist; and the transparency and protection against an individual
contributing above the legal limits is absent.

In April, 2015, in the face of public outcry and despite the support
of two of the four SBOE members, the board declined to revisit its
1996 decision, leaving it up to the legislature to act. Thereafter,
the Daily News reported that the LLC loophole was used to contribute
$25 million to state politicians over the past decade and that LLCs
linked to one individual have used it to contribute $13.2 million
since 2000 (Bill Hammond, NY Daily News, April 28, 2015,
www.nydailynews.com/opinion/bill-hammond-bending-cash-article
1.2202628).

Contrary to the current approach, the Federal Election Commission
treats LLCs as corporations or partnerships rather than individuals
for campaign finance purposes. This bill would apply to LLCs the
provisions that already apply to corporations under New York law. It
would also increase transparency by requiring disclosure of the
identity of individuals with membership interests in LLCs. Finally it
would ensure that the loophole is fully closed by attributing LLC
contributions to each LLC member in a manner similar to that provided
for under current law for partnerships.

These changes would clarify the election law with respect to LLCs,
provide uniformity, and close an egregious loophole that has allowed
certain individuals to evade limits that other contributors adhere to.

 PRIOR LEGISLATIVE HISTORY :

2015: S60/A6975 - REPORTED FROM ELECTIONS AND COMMITTED TO
CORPORATIONS/passed assembly
2013-2014: S166/A5067- REFERRED TO ELECTIONS/Advanced to Third Reading
(Assembly)
2011-2012:  S30/A2493- REFERRED TO ELECTIONS
2010: S8395/A11355- REFERRED TO RULES

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S60B (ACTIVE) - Bill Text download pdf

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

                                  60--B

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sens.  SQUADRON,  ADDABBO,  COMRIE, ESPAILLAT, GIANARIS,
  HOYLMAN, KENNEDY, KRUEGER, PANEPINTO, PERKINS, STAVISKY -- read  twice
  and ordered printed, and when printed to be committed to the Committee
  on  Elections  -- reported favorably from said committee and committed
  to the Committee  on  Corporations,  Authorities  and  Commissions  --
  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 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 [or], LIMITED LIABILITY COMPANY, joint-stock association  OR
OTHER  CORPORATE  ENTITY  doing  business in this state, except a corpo-
ration or association 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 organization, or for, or in aid of, any corporation,
LIMITED LIABILITY COMPANY, joint-stock [or], other association, OR OTHER
CORPORATE 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  political  purpose  whatever,  or  for  the
reimbursement or indemnification of any person for moneys or property so
used. Any officer, director, stock-holder, MEMBER,  OWNER,  attorney  or
agent  of  any  corporation [or], LIMITED LIABILITY COMPANY, joint-stock

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

                                                           LBD00169-12-6

S. 60--B                            2

association  OR  OTHER  CORPORATE  ENTITY  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 know-
ingly 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, ANY LIMITED LIABILITY COMPANY OR OTHER CORPO-
RATE  ENTITY  may make expenditures, including contributions, not other-
wise 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 poli-
tical purposes unless such cost is charged to the shareholders of such a
public service corporation.
  3.  EACH LIMITED LIABILITY COMPANY THAT MAKES AN EXPENDITURE FOR POLI-
TICAL PURPOSES SHALL FILE WITH THE STATE BOARD OF ELECTIONS, BY DECEMBER
THIRTY-FIRST OF THE YEAR IN WHICH THE EXPENDITURE IS MADE, ON  THE  FORM
PRESCRIBED  BY  THE STATE BOARD OF ELECTIONS, THE IDENTITY OF ALL DIRECT
AND INDIRECT OWNERS OF THE MEMBERSHIP INTERESTS IN THE LIMITED LIABILITY
COMPANY AND THE PROPORTION OF EACH DIRECT OR INDIRECT MEMBER'S OWNERSHIP
INTEREST IN THE LIMITED LIABILITY COMPANY.
  S 2. Section 14-120 of the election law is amended  by  adding  a  new
subdivision 3 to read as follows:
  3. (A) NOTWITHSTANDING ANY LAW TO THE CONTRARY, ALL CONTRIBUTIONS MADE
TO  A  CAMPAIGN  OR  POLITICAL  COMMITTEE BY A LIMITED LIABILITY COMPANY
SHALL BE ATTRIBUTED TO EACH MEMBER OF THE LIMITED LIABILITY  COMPANY  IN
PROPORTION  TO  THE MEMBER'S OWNERSHIP INTEREST IN THE LIMITED LIABILITY
COMPANY.
  (B) IF, BY  APPLICATION  OF  PARAGRAPH  (A)  OF  THIS  SUBDIVISION,  A
CAMPAIGN  CONTRIBUTION IS ATTRIBUTED TO A LIMITED LIABILITY COMPANY, THE
CONTRIBUTIONS SHALL BE FURTHER ATTRIBUTED TO EACH MEMBER OF THE  LIMITED
LIABILITY  COMPANY  IN  PROPORTION TO THE MEMBER'S OWNERSHIP INTEREST IN
THE LIMITED LIABILITY COMPANY.
  (C) THE STATE BOARD OF ELECTIONS SHALL ENACT REGULATIONS THAT  PREVENT
THE  AVOIDANCE  OF THE RULES SET FORTH IN PARAGRAPHS (A) AND (B) OF THIS
SUBDIVISION.
  S 3. This act shall take effect immediately.

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Senate Bill S60

Sponsored By

Archive: Last Bill Status - In Senate Committee Codes Committee

Actions

Votes

May 9, 2016 - Elections Committee Vote

Elections Committee Vote: May 9, 2016

Apr 27, 2015 - Elections Committee Vote

Elections Committee Vote: Apr 27, 2015

Bill Amendments

co-Sponsors

2015-S60 - Details

2015-S60 - Summary

2015-S60 - Sponsor Memo

2015-S60 - Bill Text download pdf

co-Sponsors

2015-S60A - Details

2015-S60A - Summary

2015-S60A - Sponsor Memo

2015-S60A - Bill Text download pdf

co-Sponsors

2015-S60B (ACTIVE) - Details

2015-S60B (ACTIVE) - Summary

2015-S60B (ACTIVE) - Sponsor Memo

2015-S60B (ACTIVE) - Bill Text download pdf

Comments

Do you support this bill?

Get Status Alerts for 2015-S60

Senate Bill S60

Share this bill

Sponsored By

Archive: Last Bill Status - In Senate Committee Codes Committee

Actions

Votes

Bill Amendments

co-Sponsors

2015-S60 - Details

2015-S60 - Summary

2015-S60 - Sponsor Memo

2015-S60 - Bill Text download pdf

co-Sponsors

2015-S60A - Details

2015-S60A - Summary

2015-S60A - Sponsor Memo

2015-S60A - Bill Text download pdf

co-Sponsors

2015-S60B (ACTIVE) - Details

2015-S60B (ACTIVE) - Summary

2015-S60B (ACTIVE) - Sponsor Memo

2015-S60B (ACTIVE) - Bill Text download pdf

Comments