What's happening
This bill prohibits corporations, LLCs, partnerships, and similar entities from making political contributions or loans to candidates or political committees.
Why it matters
Shifts political funding power away from corporations and similar entities. , potentially increasing the influence of individual donors and grassroots fundraising in New York elections.
Aims to reduce the risk of corporate influence and potential conflicts of interest. in state and local politics by completely banning direct contributions, loans, or guarantees from entities like corporations, LLCs, and partnerships.
May increase transparency and accountability. by closing loopholes that previously allowed these entities to contribute up to $5,000 annually, making it clearer who is financially supporting candidates and committees.
Could impact campaign financing strategies for both candidates and political committees. , forcing them to seek alternative sources of funding and possibly leveling the playing field for candidates with less access to corporate backing.
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Who cares
Headline styles
Ban Corporate Political Donations
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to elections
- Print number 1013a
- Amend and recommit to elections
- Referred to elections
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Ban Corporate Political Donations
In Assembly Committee · Election Law · Sponsor Robert C. Carroll
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1013--A
2019-2020 Regular Sessions
IN SENATE
January 10, 2019
Introduced by Sens. METZGER, BRESLIN, GIANARIS, JACKSON, KRUEGER, LIU, MAY, MYRIE, RAMOS, RIVERA, SALAZAR -- read twice and ordered printed, and when printed to be committed to the Committee on Elections -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the election law, in relation to political contributions by certain organizations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 14-116 of the election law, as amended by chapter 4 of the laws of 2019, is amended to read as follows:
2. a. Notwithstanding [the provisions of subdivision one of this section, any corporation or an organization financially supported in whole or in part, by such corporation, any limited liability company or other corporate entity may make expenditures, including contributions, not otherwise prohibited by law, for political purposes, in an amount not to exceed five thousand dollars in the aggregate in any calendar year; provided that no public utility shall use revenues received from the rendition of public service within the state for contributions for political purposes unless such cost is charged to the shareholders of such a public service corporation.] any other provision of law to the contrary, no contribution, loan, loan guarantee or other security for such a loan from any corporation, limited liability company, limited liability partnership or partnership, other than in the regular course of the lender's business, may be accepted by a candidate or political committee, other than a corporation, limited liability company, limited liability partnership or partnership that is a political committee, for all nominations to any office or election to any office.
b. A loan made to a candidate or political committee, other than a constituted committee, by any person, firm or association shall be repaid by the date of the primary, special or general election, as the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06186-03-9
S. 1013--A 2
case may be, or such loan shall be considered a contribution by such person, firm or association including any person endorsing, cosigning, guaranteeing, collateralizing or other providing security for the loan.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the election law, in relation to poli- tical contributions by certain organizations
Purpose
The purpose of this legislation is to ban corporations, limited liabil- ity companies, limited liability partnerships, and partnerships from making contributions to political campaigns.
Summary of provisions
Section 1 - Amends section 14-116 of the election law to prohibit corpo- rations, limited liability companies, limited liability partnerships, and partnerships from contributing to a candidate or political commit- tee. This section also provides a safe harbor for businesses who provide loans in the normal course of their business. A loan must be repaid by the date of the election (whether that be the primary, special, or general elections), otherwise it will be deemed a contribution.
Section 2 - Effective Date
Existing law
Under existing law, corporations are permitted to make contributions in the aggregate of $5,000 a year. Limited liability companies are current- ly treated as individuals and are permitted to contribute more than the $5,000 limit applicable to corporations. Partnerships are classified as individual contributions but are not listed as so until the contribution exceeds $2,500.
Justification
New York's political system is out of balance. Too much time and atten- tion is paid to campaign donors with the biggest checkbooks and not enough attention is paid to the average New Yorker. Businesses, no matter what legal form they take, whether it is in the form of a corpo- ration, limited liability company or a partnership, have outsized influ- ence on elections and therefore on the legislation and policies advanced by elected officials because of the donations that they are able to make to campaigns. As a result, elected officials are disconnected from the needs of everyday citizens because of the time they spend courting deep- pocketed donors including corporations. Banning contributions by these organizations will limit their influence on New York's politics. With corporate money out of politics, New Yorkers may begin to regain faith that their government is working in their best interest and not in the interest of large campaign contributors.
Legislative history
This is a new piece of legislation.
Fiscal implications
None to the state.
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.