A09809 Summary:

BILL NOA09809
 
SAME ASNo Same As
 
SPONSORSkoufis
 
COSPNSRZebrowski
 
MLTSPNSR
 
Amd 102, 203 & 211, add 215, Lim Lil L
 
Relates to establishing beneficial ownership for limited liability companies.
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A09809 Actions:

BILL NOA09809
 
04/12/2016referred to corporations, authorities and commissions
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A09809 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9809
 
SPONSOR: Skoufis
  TITLE OF BILL: An act to amend the limited liability company law, in relation to establishing beneficial ownership for limited liability companies   PURPOSE OR GENERAL IDEA OF BILL: Relates to establishing and publicly disclosing beneficial ownership for certain limited liability companies.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 adds a new subdivision of section 102 of the limited liability company law by creating and defining "beneficial owner." Section 2 adds additional criteria for the articles of organization of a limited liability company requiring the names and residence addresses of beneficial owners. Section 3 creates a new section in the limited liability company law that requires an LLC or corporation to disclose, update and verify bene- ficial ownership information with the Department of State routinely, while also creating a civil penalty for any person who provides fraudu- lent beneficial ownership information or willfully fails to provide complete or updated information.   JUSTIFICATION: Many individuals have taken advantage of New York's Limited Liability Company law to form anonymous or "shell" business entities that present- ly have no obligation to list natural persons who control and/or have a financial stake in the LLC. This legislation seeks to require LLCs to publicly disclose information pertaining to the true beneficial owners of the company alongside other data that is already made available on the Department of State's website. Exemptions exist in this legislation for LLCs with more than 20 employees and other LLCs that are clearly not "shell" business entities.   PRIOR LEGISLATIVE HISTORY: None.   FISCAL IMPLICATIONS: None to the state.   EFFECTIVE DATE: Immediately.
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