A00466 Summary:

Amd §14-116, El L
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.
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A00466 Actions:

01/09/2023referred to election law
01/03/2024referred to election law
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A00466 Committee Votes:

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A00466 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
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
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A00466 Text:

                STATE OF NEW YORK
                               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.
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