S T A T E O F N E W Y O R K
________________________________________________________________________
8035
I N S E N A T E
June 7, 2016
___________
Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the limited liability company law and the election law,
in relation to political contributions and expenditures by limited
liability companies and other entities
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 201 of the limited liability company law is amended
to read as follows:
S 201. Purpose. A limited liability company may be formed under this
chapter for any lawful business purpose or purposes except to do in this
state any business for which another statute specifically requires some
other business entity or natural person to be formed or used for such
business; OR FORMED OR USED FOR THE SOLE PURPOSE OF MAKING POLITICAL
CONTRIBUTIONS OR EXPENDITURES UNLESS REGISTERED AS A POLITICAL COMMITTEE
OR INDEPENDENT EXPENDITURE COMMITTEE WITH THE BOARD OF ELECTIONS.
S 2. Paragraphs 6 and 7 of subdivision (e) of section 203 of the
limited liability company law, as added by chapter 470 of the laws of
1997, are amended and a new paragraph 8 is added to read as follows:
(6) if all or specified members are to be liable in their capacity as
members for all or specified debts, obligations or liabilities of the
limited liability company as authorized pursuant to section six hundred
nine of this chapter, a statement that all or specified members are so
liable for such debts, obligations or liabilities in their capacity as
members of the limited liability company as authorized pursuant to
section six hundred nine of this chapter; [and]
(7) any other provisions, not inconsistent with law, that the members
elect to include in the articles or organization for the regulation of
the internal affairs of the limited liability company, including, but
not limited to, (A) the business purpose for which the limited liability
company is formed, (B) a statement of whether there are limitations on
the authority of members or managers or a class or classes thereof to
bind the limited liability company and (C) any provisions that are
required or permitted to be included in the operating agreement of the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15771-03-6
S. 8035 2
limited liability company pursuant to section four hundred seventeen of
this chapter[.]; AND
(8) IF A LIMITED LIABILITY COMPANY IS FORMED AND REGISTERED IN A STATE
OTHER THAN NEW YORK, IT MUST REGISTER WITH THE SECRETARY OF STATE AND
MEET THE SAME FORMATION AND FILING REQUIREMENTS OF A LIMITED LIABILITY
COMPANY FORMED AND REGISTERED IN NEW YORK PRIOR TO MAKING POLITICAL
CONTRIBUTIONS OR EXPENDITURES FOR ANY STATE OR LOCAL CANDIDATE FOR
ELECTED OFFICE.
S 3. Subdivision 1 of section 14-102 of the election law, as amended
by chapter 8 of the laws of 1978 and as redesignated by chapter 9 of the
laws of 1978, is amended to read as follows:
1. The treasurer of every political committee which, or any officer,
member or agent of any such committee who, in connection with any
election, receives or expends any money or other valuable thing or
incurs any liability to pay money or its equivalent shall file state-
ments sworn, or subscribed and bearing a form notice that false state-
ments made therein are punishable as a class A misdemeanor pursuant to
section 210.45 of the penal law, at the times prescribed by this article
setting forth all the receipts, contributions to and the expenditures by
and liabilities of the committee, and of its officers, members and
agents in its behalf. Such statements shall include the dollar amount of
any receipt, contribution or transfer, or the fair market value of any
receipt, contribution or transfer, which is other than of money, the
name and address of the transferor, contributor or person from whom
received, and if the transferor, contributor or person is a political
committee; the name of and the political unit represented by the commit-
tee, the date of its receipt, the dollar amount of every expenditure,
the name and address of the person to whom it was made or the name of
and the political unit represented by the committee to which it was made
and the date thereof, and shall state clearly the purpose of such
expenditure. ANY STATEMENT OF CAMPAIGN RECEIPT THAT INCLUDES A CONTRIB-
UTION FROM A LIMITED LIABILITY COMPANY SHALL INCLUDE THE NAME OF THE
REGISTERED AGENT FOR SERVICE OF PROCESS FILED WITH THE SECRETARY OF
STATE EXCEPT THAT WHERE NO REGISTERED AGENT IS SO DESIGNATED, ONE
NATURAL PERSON WHO IS ASSOCIATED WITH SUCH LIMITED LIABILITY COMPANY.
Any statement reporting a loan shall have attached to it a copy of the
evidence of indebtedness. Expenditures in sums under fifty dollars need
not be specifically accounted for by separate items in said statements,
and receipts and contributions aggregating not more than ninety-nine
dollars, from any one contributor need not be specifically accounted for
by separate items in said statements, provided however, that such
expenditures, receipts and contributions shall be subject to the other
provisions of section 14-118 of this article.
S 4. Subdivision 1 of section 14-104 of the election law, as amended
by chapter 430 of the laws of 1997, is amended to read as follows:
1. Any candidate for election to public office, or for nomination for
public office at a contested primary election or convention, or for
election to a party position at a primary election, shall file state-
ments sworn, or subscribed and bearing a form notice that false state-
ments made therein are punishable as a class A misdemeanor pursuant to
section 210.45 of the penal law, at the times prescribed by this article
setting forth the particulars specified by section 14-102 of this arti-
cle, as to all moneys or other valuable things, paid, given, expended or
promised by him to aid his own nomination or election, or to promote the
success or defeat of a political party, or to aid or influence the nomi-
nation or election or the defeat of any other candidate to be voted for
S. 8035 3
at the election or primary election or at a convention, including
contributions to political committees, officers, members or agents ther-
eof, and transfers, receipts and contributions to him to be used for any
of the purposes above specified, or in lieu thereof, any such candidate
may file such a sworn statement at the first filing period, on a form
prescribed by the state board of elections that such candidate has made
no such expenditures and does not intend to make any such expenditures,
except through a political committee authorized by such candidate pursu-
ant to this article. A committee authorized by such a candidate may
fulfill all of the filing requirements of this act on behalf of such
candidate. ANY STATEMENT OF CAMPAIGN RECEIPT THAT INCLUDES A CONTRIB-
UTION FROM A LIMITED LIABILITY COMPANY SHALL INCLUDE THE NAME OF THE
REGISTERED AGENT FOR SERVICE OF PROCESS FILED WITH THE SECRETARY OF
STATE EXCEPT THAT WHERE NO REGISTERED AGENT IS SO DESIGNATED, ONE
NATURAL PERSON WHO IS ASSOCIATED WITH SUCH LIMITED LIABILITY COMPANY.
S 5. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.