Provides that for contributions that exceed twenty-five hundred dollars, when a campaign contribution is attributed to a limited liability company, such contributions shall be further attributed to each member of the limited liability company in proportion to the member's ownership interest in the limited liability company.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3154
SPONSOR: Magnarelli TITLE OF BILL:
An act to amend the election law, in relation to certain political
campaign contributions
PURPOSE OR GENERAL IDEA OF BILL:
To simplify the reporting requirements for LLCs and put them on par with
partnerships.
SUMMARY OF PROVISIONS:
Section 1: Amends § 14-120(3)(b) of the Election Law to require that
LLCs identify all direct and indirect owners of the membership interests
in the LLC and the proportion of each direct and indirect ownership
interest in the LLC when a political contribution is above $2,500.
Section 2: Establishes the effective date.
JUSTIFICATION:
Current law requires political contributions from LLCs to be allocated
to the individual owners of the LLCs by percentage of ownership and
their respective names and home addresses from the first dollar of the
contribution. Alternatively, partnerships are not required to
disclose/allocate for individual owners until a-contribution passes
$2,500. This extra requirement for LLCs makes it very difficult and
cumbersome for campaign treasurers and LLCs to allocate ownership
percentages for even small dollar donations. Having LLCs be subject to
the same threshold as partnerships will make it easier to comply with
reporting requirements, while maintaining transparency for large
donations.
PRIOR LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
3154
2023-2024 Regular Sessions
IN ASSEMBLY
February 2, 2023
___________
Introduced by M. of A. MAGNARELLI -- read once and referred to the
Committee on Election Law
AN ACT to amend the election law, in relation to certain political
campaign contributions
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (b) of subdivision 3 of section 14-120 of the
2 election law, as added by chapter 4 of the laws of 2019, is amended to
3 read as follows:
4 (b) If, by application of paragraph (a) of this subdivision, a
5 campaign contribution is attributed to a limited liability company, the
6 contributions shall be further attributed to each member of the limited
7 liability company in proportion to the member's ownership interest in
8 the limited liability company for contributions that exceed twenty-five
9 hundred dollars.
10 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02492-01-3
