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Who cares
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Sponsors
Senator · Senate District 59
No co-sponsors yet.
History
- Referred to rules
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the limited liability company law and the election law, in relation to political contributions and expenditures by limited liability companies and other entities
Purpose
To require that limited liability companies (LLCs) not be formed solely for the purpose of making political contributions; to identify out of state LLCs; and to reveal an individual associated with an LLC when such companies make contributions to political candidates or campaign committees.
Summary of provisions
Section 1 of the bill restricts LLCs from being established wholly to make political campaign contributions.
Section 2 requires out of state LLCs to register with New York State
Sections 3 and 4 require the disclosure of individuals associated with an LLC when filing statutorily required campaign financial statements with the board of elections.
Section 5 sets forth the effective date.
Justification
The Limited Liability Company Law, initially adopted in the State of New York in 1994, sets forth the statutory authority governing business entities known as Limited Liability Companies (LLC). The creation of the LLC has afforded many businesses throughout New York the flexibility to carry-out business functions which were previously unavailable under other versions of incorporation.
New York State's Board of Elections, in a 1996 decision, recognized an LLC not as an entity, but as an individual in relation to campaign contributions. Unfortunately, given the existing LLC statutory authority, it is difficult to identify an individual associated with the LLC when such entity is making a contribution. Importantly, we aim to ameliorate this deficiency by requiring the identification of an individual in relation to a contribution made by an LLC. Furthermore, we prohibit the establishment of an LLC for the sole purpose of making political contributions or expenditures. Enacting these reforms will ensure greater disclosure and transparency while closing loopholes that have been ripe for abuse.
Legislative history
This is a new bill.
Fiscal implications
See fiscal note.
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.