NY State Senate Bill 2015-S5093A

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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to elections
Jun 01, 2015	print number 5093a
Jun 01, 2015	amend and recommit to elections
Apr 30, 2015	referred to elections

Bill Amendments

Original

A (Active)

2015-S5093 - Details

Current Committee:: Senate Elections
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-S5093 - Summary

Relates to political contributions by limited liability companies.

2015-S5093 - Sponsor Memo

                                BILL NUMBER:S5093

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
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-1.22026
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:

New Bill

EFFECTIVE DATE:


This act shall take effect immediately.

2015-S5093 - Bill Text download pdf

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

                                  5093

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 30, 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, 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00169-07-5

S. 5093                             2

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.

2015-S5093A (ACTIVE) - Details

Current Committee:: Senate Elections
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-S5093A (ACTIVE) - Summary

Relates to political contributions by limited liability companies.

2015-S5093A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5093A

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 Limited Liability Companies to Election Law
§ 14-116 to provide that LLCs are subject to an aggregate contribution
Limit, which has been lowered from $5000 to $1,000.

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: New Bill

EFFECTIVE DATE:  This act shall take effect immediately.

2015-S5093A (ACTIVE) - Bill Text download pdf

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

                                 5093--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 30, 2015
                               ___________

Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
  printed to be 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 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, AND ANY LIMITED LIABILITY COMPANY may make
expenditures, including contributions, not otherwise prohibited by  law,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00169-08-5

S. 5093--A                          2

for  political  purposes, in an amount not to exceed [five] ONE 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  corpo-
ration.
  S 2. This act shall take effect immediately.

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Senate Bill S5093A

Sponsored By

Archive: Last Bill Status - In Senate Committee Elections Committee

Actions

Bill Amendments

2015-S5093 - Details

2015-S5093 - Summary

2015-S5093 - Sponsor Memo

2015-S5093 - Bill Text download pdf

2015-S5093A (ACTIVE) - Details

2015-S5093A (ACTIVE) - Summary

2015-S5093A (ACTIVE) - Sponsor Memo

2015-S5093A (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Daniel L. Squadron

Archive: Last Bill Status - In Senate Committee Elections Committee

Actions

Bill Amendments

2015-S5093 - Details

2015-S5093 - Summary

2015-S5093 - Sponsor Memo

2015-S5093 - Bill Text download pdf

2015-S5093A (ACTIVE) - Details

2015-S5093A (ACTIVE) - Summary

2015-S5093A (ACTIVE) - Sponsor Memo

2015-S5093A (ACTIVE) - Bill Text download pdf

Comments