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A00623 Summary:

COSPNSRBuchwald, Galef, Seawright, Dinowitz, Zebrowski, Gottfried, Simon, Magnarelli, Fahy, D'Urso, Lifton, Blake, Mosley, Abinanti, DiPietro, Jacobson, Rosenthal L
MLTSPNSRCook, Lawrence, Thiele
Amd §1116, Tax L
Restricts certain corporations from participating or intervening in any political campaign on behalf of or in opposition to any candidate for public office.
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A00623 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Paulin (MS)
  TITLE OF BILL: An act to amend the tax law, in relation to limita- tions on political activity   PURPOSE OR GENERAL IDEA OF BILL: To codify the federal prohibition on not-for-profit corporations partic- ipating or intervening in political campaigns.   SUMMARY OF PROVISIONS: Section one amends section 1116 of the tax law to provide that a corpo- ration of any kind to which this chapter applies shall not participate in, or intervene in, any political campaign on behalf of or in oppo- sition to any candidate for public office. The provisions of this para- graph regarding political campaign activity shall be interpreted in the same manner as section 501(c)(3) of the United States internal revenue code has been interpreted as of the effective date of the chapter of the laws of two thousand eighteen that amended this paragraph. Section two provides the effective date.   JUSTIFICATION: The Johnson Amendment to 501(c) (3) of the Internal Revenue Service Code provides that a 501(c)(3) organization, which is exempt from taxation, may not "participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office." While this critical protection has been in place since the Internal Revenue Code of 1954 was enacted, there have been efforts by Congress to repeal it. Repeal of the Johnson Amendment would politicize non-profits, including religious organizations, which would then be able to endorse candidates and make donations to campaigns. The vast majority of religious organ- izations and non-profits oppose the repeal, including more than 100 faith groups and more than 5,700 nonprofits which have signed letters to Congress expressing their opposition(1). Codifying the Johnson Amendment into New York law will ensure that, should Congress repeal it, not-for-profit corporations in our state would still be prohibited from engaging in political activity.   PRIOR LEGISLATIVE HISTORY: 2018: Referred to Ways & Means / S.8366A Committed to Elections   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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