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History
- Referred to elections
- Print number 5093a
- Amend and recommit to elections
- Referred to elections
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.