assembly Bill A5859

2017-2018 Legislative Session

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

download bill text pdf

Sponsored By

Current Bill Status - Stricken


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

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Actions

view actions (3)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 24, 2018 enacting clause stricken
Jan 03, 2018 referred to corporations, authorities and commissions
Feb 16, 2017 referred to corporations, authorities and commissions

Co-Sponsors

Multi-Sponsors

A5859 - Details

Law Section:
Limited Liability Company Law
Laws Affected:
Amd ยงยง102, 203, 204, 211 & 701, Lim Lil L
Versions Introduced in Previous Legislative Sessions:
2015-2016: A1209
2013-2014: A6005
2011-2012: A6116
2009-2010: A10414

A5859 - Summary

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

A5859 - Bill Text download pdf

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

                                  5859

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                            February 16, 2017
                               ___________

Introduced by M. of A. DINOWITZ -- 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.
                                                           LBD01524-01-7

A. 5859                             2

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