Bill Text: NY S01898 | 2019-2020 | General Assembly | Introduced


Bill Title: Regulates political contributions and expenditures by limited liability companies and the reporting thereof.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S01898 Detail]

Download: New_York-2019-S01898-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          1898
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 17, 2019
                                       ___________
        Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and Commissions
        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
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 201 of the limited liability company law is amended
     2  to read as follows:
     3    § 201. Purpose. A limited liability company may be formed  under  this
     4  chapter for any lawful business purpose or purposes except to do in this
     5  state  any business for which another statute specifically requires some
     6  other business entity or natural person to be formed or  used  for  such
     7  business;  or  formed  or  used for the sole purpose of making political
     8  contributions or expenditures unless registered as a political committee
     9  or independent expenditure committee with the board of elections.
    10    § 2. Paragraphs 6 and 7 of subdivision  (e)  of  section  203  of  the
    11  limited  liability  company  law, as added by chapter 470 of the laws of
    12  1997, are amended and a new paragraph 8 is added to read as follows:
    13    (6) if all or specified members are to be liable in their capacity  as
    14  members  for  all  or specified debts, obligations or liabilities of the
    15  limited liability company as authorized pursuant to section six  hundred
    16  nine  of  this chapter, a statement that all or specified members are so
    17  liable for such debts, obligations or liabilities in their  capacity  as
    18  members  of  the  limited  liability  company  as authorized pursuant to
    19  section six hundred nine of this chapter; [and]
    20    (7) any other provisions, not inconsistent with law, that the  members
    21  elect  to  include in the articles or organization for the regulation of
    22  the internal affairs of the limited liability  company,  including,  but
    23  not limited to, (A) the business purpose for which the limited liability
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02807-01-9

        S. 1898                             2
     1  company  is  formed, (B) a statement of whether there are limitations on
     2  the authority of members or managers or a class or  classes  thereof  to
     3  bind  the  limited  liability  company  and  (C) any provisions that are
     4  required  or  permitted to be included in the operating agreement of the
     5  limited liability company pursuant to section four hundred seventeen  of
     6  this chapter[.]; and
     7    (8) if a limited liability company is formed and registered in a state
     8  other  than  New  York, it must register with the secretary of state and
     9  meet the same formation and filing requirements of a  limited  liability
    10  company  formed  and  registered  in  New York prior to making political
    11  contributions or expenditures for  any  state  or  local  candidate  for
    12  elected office.
    13    §  3.  Subdivision 1 of section 14-102 of the election law, as amended
    14  by chapter 8 of the laws of 1978 and as redesignated by chapter 9 of the
    15  laws of 1978, is amended to read as follows:
    16    1. The treasurer of every political committee which, or  any  officer,
    17  member  or  agent  of  any  such  committee  who, in connection with any
    18  election, receives or expends any  money  or  other  valuable  thing  or
    19  incurs  any  liability  to pay money or its equivalent shall file state-
    20  ments sworn, or subscribed and bearing a form notice that  false  state-
    21  ments  made  therein are punishable as a class A misdemeanor pursuant to
    22  section 210.45 of the penal law, at the times prescribed by this article
    23  setting forth all the receipts, contributions to and the expenditures by
    24  and liabilities of the committee,  and  of  its  officers,  members  and
    25  agents in its behalf. Such statements shall include the dollar amount of
    26  any  receipt,  contribution or transfer, or the fair market value of any
    27  receipt, contribution or transfer, which is other  than  of  money,  the
    28  name  and  address  of  the  transferor, contributor or person from whom
    29  received, and if the transferor, contributor or person  is  a  political
    30  committee; the name of and the political unit represented by the commit-
    31  tee,  the  date  of its receipt, the dollar amount of every expenditure,
    32  the name and address of the person to whom it was made or  the  name  of
    33  and the political unit represented by the committee to which it was made
    34  and  the  date  thereof,  and  shall  state  clearly the purpose of such
    35  expenditure. Any statement of campaign receipt that includes a  contrib-
    36  ution  from  a  limited  liability company shall include the name of the
    37  registered agent for service of process  filed  with  the  secretary  of
    38  state  except  that  where  no  registered  agent  is so designated, one
    39  natural person who is associated with such  limited  liability  company.
    40  Any  statement  reporting a loan shall have attached to it a copy of the
    41  evidence of indebtedness. Expenditures in sums under fifty dollars  need
    42  not  be specifically accounted for by separate items in said statements,
    43  and receipts and contributions aggregating  not  more  than  ninety-nine
    44  dollars, from any one contributor need not be specifically accounted for
    45  by  separate  items  in  said  statements,  provided  however, that such
    46  expenditures, receipts and contributions shall be subject to  the  other
    47  provisions of section 14-118 of this article.
    48    §  4.  Subdivision 1 of section 14-104 of the election law, as amended
    49  by section 1 of part C of chapter 286 of the laws of 2016, is amended to
    50  read as follows:
    51    1. Any candidate for election to public office, or for nomination  for
    52  public  office  at  a  contested  primary election or convention, or for
    53  election to a party position at a primary election,  shall  file  state-
    54  ments  sworn,  or subscribed and bearing a form notice that false state-
    55  ments made therein are punishable as a class A misdemeanor  pursuant  to
    56  section 210.45 of the penal law, at the times prescribed by this article

        S. 1898                             3
     1  setting  forth the particulars specified by section 14-102 of this arti-
     2  cle, as to all moneys or other valuable things, paid, given, expended or
     3  promised by him or her to aid his or her own nomination or election,  or
     4  to  promote  the  success  or  defeat of a political party, or to aid or
     5  influence the nomination or election or the defeat of any  other  candi-
     6  date to be voted for at the election or primary election or at a conven-
     7  tion, including contributions to political committees, officers, members
     8  or  agents  thereof, and transfers, receipts and contributions to him or
     9  her to be used for any of the purposes above specified, or in lieu ther-
    10  eof, any such candidate may file such a sworn  statement  at  the  first
    11  filing period, on a form prescribed by the state board of elections that
    12  such candidate has made no such expenditures and does not intend to make
    13  any  such  expenditures, except through a political committee authorized
    14  by such candidate pursuant to this article. Such candidate may designate
    15  a committee of no less than three persons who  shall  be  authorized  to
    16  appoint  and  remove  the  treasurer  of any authorized committee of the
    17  candidate. The designation or  revocation  of  the  committee  shall  be
    18  evidenced  in  a  writing filed with the state board of elections by the
    19  candidate authorizing the  committee.  The  candidate  may  revoke  such
    20  designation  at any time. A committee authorized by such a candidate may
    21  fulfill all of the filing requirements of this act  on  behalf  of  such
    22  candidate.    Any statement of campaign receipt that includes a contrib-
    23  ution from a limited liability company shall include  the  name  of  the
    24  registered  agent  for  service  of  process filed with the secretary of
    25  state except that where  no  registered  agent  is  so  designated,  one
    26  natural person who is associated with such limited liability company.
    27    §  5. This act shall take effect on the first of January next succeed-
    28  ing the date on which it shall have become a law.
feedback