STATE OF NEW YORK
________________________________________________________________________
10264
IN ASSEMBLY
March 27, 2018
___________
Introduced by M. of A. PAULIN -- read once and referred to the Committee
on Election Law
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
24 company is formed, (B) a statement of whether there are limitations on
25 the authority of members or managers or a class or classes thereof to
26 bind the limited liability company and (C) any provisions that are
27 required or permitted to be included in the operating agreement of the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00345-01-7
A. 10264 2
1 limited liability company pursuant to section four hundred seventeen of
2 this chapter[.]; and
3 (8) if a limited liability company is formed and registered in a state
4 other than New York, it must register with the secretary of state and
5 meet the same formation and filing requirements of a limited liability
6 company formed and registered in New York prior to making political
7 contributions or expenditures for any state or local candidate for
8 elected office.
9 § 3. Subdivision 1 of section 14-102 of the election law, as amended
10 by chapter 8 of the laws of 1978 and as redesignated by chapter 9 of the
11 laws of 1978, is amended to read as follows:
12 1. The treasurer of every political committee which, or any officer,
13 member or agent of any such committee who, in connection with any
14 election, receives or expends any money or other valuable thing or
15 incurs any liability to pay money or its equivalent shall file state-
16 ments sworn, or subscribed and bearing a form notice that false state-
17 ments made therein are punishable as a class A misdemeanor pursuant to
18 section 210.45 of the penal law, at the times prescribed by this article
19 setting forth all the receipts, contributions to and the expenditures by
20 and liabilities of the committee, and of its officers, members and
21 agents in its behalf. Such statements shall include the dollar amount of
22 any receipt, contribution or transfer, or the fair market value of any
23 receipt, contribution or transfer, which is other than of money, the
24 name and address of the transferor, contributor or person from whom
25 received, and if the transferor, contributor or person is a political
26 committee; the name of and the political unit represented by the commit-
27 tee, the date of its receipt, the dollar amount of every expenditure,
28 the name and address of the person to whom it was made or the name of
29 and the political unit represented by the committee to which it was made
30 and the date thereof, and shall state clearly the purpose of such
31 expenditure. Any statement of campaign receipt that includes a contrib-
32 ution from a limited liability company shall include the name of the
33 registered agent for service of process filed with the secretary of
34 state except that where no registered agent is so designated, one
35 natural person who is associated with such limited liability company.
36 Any statement reporting a loan shall have attached to it a copy of the
37 evidence of indebtedness. Expenditures in sums under fifty dollars need
38 not be specifically accounted for by separate items in said statements,
39 and receipts and contributions aggregating not more than ninety-nine
40 dollars, from any one contributor need not be specifically accounted for
41 by separate items in said statements, provided however, that such
42 expenditures, receipts and contributions shall be subject to the other
43 provisions of section 14-118 of this article.
44 § 4. Subdivision 1 of section 14-104 of the election law, as amended
45 by section 1 of part C of chapter 286 of the laws of 2016, is amended to
46 read as follows:
47 1. Any candidate for election to public office, or for nomination for
48 public office at a contested primary election or convention, or for
49 election to a party position at a primary election, shall file state-
50 ments sworn, or subscribed and bearing a form notice that false state-
51 ments made therein are punishable as a class A misdemeanor pursuant to
52 section 210.45 of the penal law, at the times prescribed by this article
53 setting forth the particulars specified by section 14-102 of this arti-
54 cle, as to all moneys or other valuable things, paid, given, expended or
55 promised by him or her to aid his or her own nomination or election, or
56 to promote the success or defeat of a political party, or to aid or
A. 10264 3
1 influence the nomination or election or the defeat of any other candi-
2 date to be voted for at the election or primary election or at a conven-
3 tion, including contributions to political committees, officers, members
4 or agents thereof, and transfers, receipts and contributions to him or
5 her to be used for any of the purposes above specified, or in lieu ther-
6 eof, any such candidate may file such a sworn statement at the first
7 filing period, on a form prescribed by the state board of elections that
8 such candidate has made no such expenditures and does not intend to make
9 any such expenditures, except through a political committee authorized
10 by such candidate pursuant to this article. Such candidate may designate
11 a committee of no less than three persons who shall be authorized to
12 appoint and remove the treasurer of any authorized committee of the
13 candidate. The designation or revocation of the committee shall be
14 evidenced in a writing filed with the state board of elections by the
15 candidate authorizing the committee. The candidate may revoke such
16 designation at any time. A committee authorized by such a candidate may
17 fulfill all of the filing requirements of this act on behalf of such
18 candidate. Any statement of campaign receipt that includes a contrib-
19 ution from a limited liability company shall include the name of the
20 registered agent for service of process filed with the secretary of
21 state except that where no registered agent is so designated, one
22 natural person who is associated with such limited liability company.
23 § 5. This act shall take effect on the first of January next succeed-
24 ing the date on which it shall have become a law; provided, however,
25 that if section 1 of part C of chapter 286 of the laws of 2016 shall not
26 have taken effect on or before such date then section four of this act
27 shall take effect on the same date and in the same manner as such chap-
28 ter of the laws of 2016 takes effect.
