Prohibits certain political contributions and loans by certain organizations; provides that loans not repaid by the date of the primary or election shall be considered a contribution.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A466
SPONSOR: Carroll TITLE OF BILL:
An act to amend the election law, in relation to political 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 cf 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:
A5488 of 2019-20; A7826 of 2021-22
FISCAL IMPLICATIONS:
None to the state.
EFFECTIVE DATE:
Immediately
STATE OF NEW YORK
________________________________________________________________________
466
2023-2024 Regular Sessions
IN ASSEMBLY
January 9, 2023
___________
Introduced by M. of A. CARROLL -- read once and referred to the Commit-
tee on Election Law
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 Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section 14-116 of the election law, as
2 amended by chapter 4 of the laws of 2019, is amended to read as follows:
3 2. a. Notwithstanding [the provisions of subdivision one of this
4 section, any corporation or an organization financially supported in
5 whole or in part, by such corporation, any limited liability company or
6 other corporate entity may make expenditures, including contributions,
7 not otherwise prohibited by law, for political purposes, in an amount
8 not to exceed five thousand dollars in the aggregate in any calendar
9 year; provided that no public utility shall use revenues received from
10 the rendition of public service within the state for contributions for
11 political purposes unless such cost is charged to the shareholders of
12 such a public service corporation.] any other provision of law to the
13 contrary, no contribution, loan, loan guarantee or other security for
14 such a loan from any corporation, limited liability company, limited
15 liability partnership or partnership, other than in the regular course
16 of the lender's business, may be accepted by a candidate or political
17 committee, other than a corporation, limited liability company, limited
18 liability partnership or partnership that is a political committee, for
19 all nominations to any office or election to any office.
20 b. A loan made to a candidate or political committee, other than a
21 constituted committee, by any person, firm or association shall be
22 repaid by the date of the primary, special or general election, as the
23 case may be, or such loan shall be considered a contribution by such
24 person, firm or association including any person endorsing, cosigning,
25 guaranteeing, collateralizing or other providing security for the loan.
26 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00488-01-3
