Senate Bill S8366A

2017-2018 Legislative Session

Restricts certain corporations from participating or intervening in any political campaign on behalf of or in opposition to any candidate for public office

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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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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 01, 2018	print number 8366a
Jun 01, 2018	amend (t) and recommit to elections
May 15, 2018	reported and committed to elections
May 03, 2018	referred to corporations, authorities and commissions

Votes

- May 15, 2018 - Corporations, Authorities And Commissions Committee Vote
  S8366A
  
  Aye
  
  7
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Corporations, Authorities And Commissions Committee Vote: May 15, 2018
      
      aye (7)
      
      Alcantara
      
      Amedore
      
      Comrie
      
      Kavanagh
      
      Larkin
      
      Ortt
      
      Ranzenhofer

Bill Amendments

Original

A (Active)

2017-S8366 - Details

See Assembly Version of this Bill:: A10354
Current Committee:: Senate Elections
Law Section:: Tax Law
Laws Affected:: Amd §1116, Tax L
Versions Introduced in 2019-2020 Legislative Session:: S1933, S4347, A623

2017-S8366 - Summary

Restricts certain corporations from participating or intervening in any political campaign on behalf of or in opposition to any candidate for public office.

2017-S8366 - Sponsor Memo

                                
 
BILL NUMBER: S8366          REVISED MEMO 05/09/2018

SPONSOR: RANZENHOFER
 
TITLE OF BILL:  An act to amend the not-for-profit corporation law, in
relation to limitations on political activity

 
PURPOSE OR GENERAL IDEA OF BILL:

To codify the federal prohibition on not-for-profit corporations partic-
ipating or intervening in political campaigns.

 
SUMMARY OF PROVISIONS:

Section one amends section 204 of the not-for-profit corporation law to
provide that a corporation of any kind to which this chapter applies
shall not participate in, or intervene in, any political campaign on
behalf of or in opposition to any candidate for public office.

Section two provides the effective date.

JUSTIFICATION:

The Johnson Amendment to 501(c)(3) of the Internal Revenue Service Code
provides that a 501(c)(3) organization, which is exempt from taxation,
may not "participate in, or intervene in (including the publishing or
distributing of statements), any political campaign on behalf of (or in
opposition to) any candidate for public office."  While this critical
protection has been in place since the Internal Revenue Code of 1954 was
enacted,there have been efforts by Congress to repeal it.

Repeal of the Johnson Amendment would politicize non-profits, including
religious organizations, which would then be able to endorse candidates
and make donations to campaigns. The vast majority of religious organ-
izations and non-profits oppose the repeal, including more than 100
faith groups and more than 5,700 nonprofits which have signed letters to
Congress expressing their opposition(1).

Codifying the Johnson Amendment into New York law will ensure that,
should Congress repeal it, not-for-profit corporations in our state
would still be prohibited from engaging in political activity.

 
PRIOR LEGISLATIVE HISTORY: a

This is a new bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.
(1) Letters available here:
http://biconline.orawo-content/uploads/2017/04/ Letter-from-fai-
thgroups-ooposingooliticization- of-houses-of-worship.pdf;
https://www.councilofnonprofits.ordsites/default
/files/articles/community-letter-in-support-of- nonpartisanship-5-12-up-
date.pdf

2017-S8366 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8366
 
                             I N  S E N A T E
 
                                May 3, 2018
                                ___________
 
 Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
   when printed to be committed to the Committee on Corporations, Author-
   ities and Commissions
 
 AN ACT to amend the not-for-profit corporation law, in relation to limi-
   tations on political activity
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Section  204  of  the  not-for-profit corporation law, as
 amended by chapter 549 of the laws  of  2013,  is  amended  to  read  as
 follows:
 § 204. Limitation on activities.
   (A)  Notwithstanding  any other provision of this chapter or any other
 general law, a corporation of any kind to  which  this  chapter  applies
 shall  conduct  no  activities  for  pecuniary profit or financial gain,
 whether or not in furtherance of its corporate purposes, except  to  the
 extent  that  such  activity  supports  its other lawful activities then
 being conducted.
   (B) A CORPORATION OF ANY KIND TO WHICH THIS CHAPTER APPLIES SHALL  NOT
 PARTICIPATE  IN,  OR  INTERVENE IN (INCLUDING THE PUBLISHING OR DISTRIB-
 UTION OF STATEMENTS), ANY POLITICAL CAMPAIGN ON BEHALF OF  OR  IN  OPPO-
 SITION TO ANY CANDIDATE FOR PUBLIC OFFICE.
   § 2. This act shall take effect immediately.
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15437-01-8

2017-S8366A (ACTIVE) - Details

See Assembly Version of this Bill:: A10354
Current Committee:: Senate Elections
Law Section:: Tax Law
Laws Affected:: Amd §1116, Tax L
Versions Introduced in 2019-2020 Legislative Session:: S1933, S4347, A623

2017-S8366A (ACTIVE) - Summary

Restricts certain corporations from participating or intervening in any political campaign on behalf of or in opposition to any candidate for public office.

2017-S8366A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8366A

SPONSOR: RANZENHOFER
 
TITLE OF BILL:  An act to amend the tax law, in relation to limita-
tions on political activity

 
PURPOSE OR GENERAL IDEA OF BILL:

To codify the federal prohibition on not-for-profit corporations partic-
ipating or intervening in political campaigns.

 
SUMMARY OF PROVISIONS:

Section one amends section 1116 of the Tax Law to provide that a corpo-
ration of any kind to which this chapter applies shall not participate
in, or intervene in, any political campaign on behalf of or in oppo-
sition to any candidate for public office. The provisions of this para-
graph regarding political campaign activity shall be interpreted in the
same manner as section 501(c)(3) of the United States Internal Revenue
Code has been interpreted as of the effective date of the chapter of the
Laws of 2018 that amended this paragraph.

Section two provides the effective date.

 
JUSTIFICATION:

The Johnson Amendment to 501(c) (3) of the Internal Revenue Service Code
provides that a 501(c)(3) organization, which is exempt from taxation,
may not "participate in, or intervene in (including the publishing or
distributing of statements), any political campaign on behalf of (or in
opposition to) any candidate for public office."  While this critical
protection has been in place since the Internal Revenue Code of 1954 was
enacted,there have been efforts by Congress to repeal it.

Repeal of the Johnson Amendment would politicize non-profits, including
religious organizations, which would then be able to endorse candidates
and make donations to campaigns. The vast majority of religious organ-
izations and non-profits oppose the repeal, including more than 100
faith groups and more than 5,700 non-profits which have signed letters
to Congress expressing their opposition()).

Codifying the Johnson Amendment into New York law will ensure that,
should Congress repeal it, not-for-profit corporations in our state
would still be prohibited from engaging in political activity.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2017-S8366A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8366--A
 
                             I N  S E N A T E
 
                                May 3, 2018
                                ___________
 
 Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
   when printed to be committed to the Committee on Corporations, Author-
   ities and Commissions -- reported favorably from  said  committee  and
   committed  to the Committee on Elections -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee

 AN  ACT  to  amend  the tax law, in relation to limitations on political
   activity
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph 4 of subdivision (a) of section 1116 of the tax
 law, as amended by chapter 270 of the laws of 2001, is amended  to  read
 as follows:
   (4)  Any  corporation,  association,  trust, or community chest, fund,
 foundation, or limited liability company, organized and operated  exclu-
 sively for religious, charitable, scientific, testing for public safety,
 literary or educational purposes, or to foster national or international
 amateur  sports  competition  (but  only  if  no  part of its activities
 involve the provision of athletic facilities or equipment), or  for  the
 prevention  of  cruelty to children or animals, no part of the net earn-
 ings of which inures to the benefit of any private shareholder or  indi-
 vidual,  no  substantial  part of the activities of which is carrying on
 propaganda, or otherwise attempting to influence legislation, (except as
 otherwise provided in subsection (h) of section five hundred one of  the
 United  States  internal revenue code of nineteen hundred fifty-four, as
 amended), and which does not participate in, or intervene in  (including
 the publishing or distributing of statements), any political campaign on
 behalf  of  OR  IN  OPPOSITION  TO  any candidate for public office. THE
 PROVISIONS OF THIS PARAGRAPH REGARDING POLITICAL CAMPAIGN ACTIVITY SHALL
 BE INTERPRETED IN THE SAME MANNER AS SECTION  501(C)(3)  OF  THE  UNITED
 STATES  INTERNAL  REVENUE  CODE HAS BEEN INTERPRETED AS OF THE EFFECTIVE
 DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND  EIGHTEEN  THAT  AMENDED
 THIS PARAGRAPH;
   § 2. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD15437-07-8

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Senate Bill S8366A

Sponsored By

Archive: Last Bill Status - In Senate Committee Elections Committee

Actions

Votes

May 15, 2018 - Corporations, Authorities And Commissions Committee Vote

Corporations, Authorities And Commissions Committee Vote: May 15, 2018

Bill Amendments

2017-S8366 - Details

2017-S8366 - Summary

2017-S8366 - Sponsor Memo

2017-S8366 - Bill Text download pdf

2017-S8366A (ACTIVE) - Details

2017-S8366A (ACTIVE) - Summary

2017-S8366A (ACTIVE) - Sponsor Memo

2017-S8366A (ACTIVE) - Bill Text download pdf

Comments

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Senate Bill S8366A

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Sponsored By

Michael H. Ranzenhofer

Archive: Last Bill Status - In Senate Committee Elections Committee

Actions

Votes

Bill Amendments

2017-S8366 - Details

2017-S8366 - Summary

2017-S8366 - Sponsor Memo

2017-S8366 - Bill Text download pdf

2017-S8366A (ACTIVE) - Details

2017-S8366A (ACTIVE) - Summary

2017-S8366A (ACTIVE) - Sponsor Memo

2017-S8366A (ACTIVE) - Bill Text download pdf

Comments