NY State Senate Bill 2019-S1933

Senate Bill S1933

2019-2020 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 - Stricken

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 07, 2019	recommit, enacting clause stricken
Jan 17, 2019	referred to budget and revenue

co-Sponsors

2019-S1933 (ACTIVE) - Details

See other versions of this Bill:: A623 ,; S4347 ,
Law Section:: Tax Law
Laws Affected:: Amd §1116, Tax L
Versions Introduced in 2017-2018 Legislative Session:: S8366, A10354

2019-S1933 (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.

2019-S1933 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1933

SPONSOR: RANZENHOFER
 
TITLE OF BILL:

An act to amend the tax 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 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 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:

2018 - S.8366-A/A.10354-B ELECTIONS/W & M

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S1933 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1933
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2019
                                ___________
 
 Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
   when printed to be committed to the Committee on Budget and Revenue
 
 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 NINETEEN 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.
                                                            LBD02092-01-9

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Senate Bill S1933

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Sponsored By

Michael H. Ranzenhofer