Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Mar 25, 2010 |
referred to corporations, authorities and commissions |
Assembly Bill A10414
2009-2010 Legislative Session
Sponsored By
BRODSKY
Archive: Last Bill Status - In Assembly Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
co-Sponsors
Albert A. Stirpe
2009-A10414 (ACTIVE) - Details
- See Senate Version of this Bill:
- S6726
- Current Committee:
- Assembly Corporations, Authorities And Commissions
- Law Section:
- Limited Liability Company Law
- Laws Affected:
- Amd ยงยง102, 203, 204, 211 & 701, Lim Lil L
- Versions Introduced in Other Legislative Sessions:
-
2011-2012:
A6116, S3011
2013-2014: A6005, S1825
2015-2016: A1209, S3550
2017-2018: A5859, A10060
2009-A10414 (ACTIVE) - Sponsor Memo
BILL NUMBER:A10414 TITLE OF BILL: An act to amend the limited liability company law, in relation to establishing the L3C act regarding low-profit limited liability companies PURPOSE OR GENERAL IDEA: To create low-profit limited liability compa- nies. SUMMARY OF SPECIFIC PROVISIONS: Section 1 is the short title. Section 2 amends section 102 of the limited liability company (LLC) law to provide for the creation of a new business entity, a "low- profit" limited liability company (L3C), whose purpose is to further the accom- plishment of one or more charitable purposes set forth within section 170(c)(2)(8) of the internal revenue code of 1986 -- alternatively cited as 26 United States Code sec. 170(c)(2)(B) provided however such busi- ness entity would not have been formed but for its relationship to the accomplishment of charitable or education purposes. L3C entities shall not have as a significant purpose the creation of income or appreciation of property, and L3C entities shall not have as a purpose the accom- plishment of one or more political or legislative purposes set forth within section 170(c) (2)(D) of the internal revenue code of 1986. Sections 3-6 amend sections 102, 204, 21 and 701, respectively, of the limited liability company law to conform the new business entity to the
2009-A10414 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 10414 I N A S S E M B L Y March 25, 2010 ___________ Introduced by M. of A. BRODSKY -- read once and referred to the Commit- tee on Corporations, Authorities and Commissions AN ACT to amend the limited liability company law, in relation to estab- lishing the L3C act regarding low-profit limited liability companies THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act may be known and shall be cited as the "L3C act". S 2. Section 102 of the limited liability company law is amended by adding a new subdivision (n-1) to read as follows: (N-1) "LOW-PROFIT LIMITED LIABILITY COMPANY" MEANS A LIMITED LIABILITY COMPANY THAT HAS SET FORTH IN ITS ARTICLES OF ORGANIZATION A BUSINESS PURPOSE THAT SATISFIES, AND THAT IS AT ALL TIMES OPERATED TO SATISFY, EACH OF THE FOLLOWING REQUIREMENTS: (I) THE LIMITED LIABILITY COMPANY SIGNIFICANTLY FURTHERS THE ACCOM- PLISHMENT OF ONE OR MORE CHARITABLE OR EDUCATIONAL PURPOSES WITHIN THE MEANING OF SECTION 170(C)(2)(B) OF THE INTERNAL REVENUE CODE OF 1986 (26 U.S.C. S 170(C)(2)(B)), AND WOULD NOT HAVE BEEN FORMED BUT FOR ITS RELATIONSHIP TO THE ACCOMPLISHMENT OF CHARITABLE OR EDUCATIONAL PURPOSES; (II) NO SIGNIFICANT PURPOSE OF THE LIMITED LIABILITY COMPANY IS THE PRODUCTION OF INCOME OR THE APPRECIATION OF PROPERTY; PROVIDED, HOWEVER, THAT THE FACT THAT THE LIMITED LIABILITY COMPANY PRODUCES SIGNIFICANT INCOME OR CAPITAL APPRECIATION SHALL NOT, IN THE ABSENCE OF OTHER FACTORS, BE CONCLUSIVE EVIDENCE OF A SIGNIFICANT PURPOSE INVOLVING THE PRODUCTION OF INCOME OR THE APPRECIATION OF PROPERTY; AND (III) NO PURPOSE OF THE LIMITED LIABILITY COMPANY IS TO ACCOMPLISH ONE OR MORE POLITICAL OR LEGISLATIVE PURPOSES WITHIN THE MEANING OF SECTION 170(C)(2)(D) OF THE INTERNAL REVENUE CODE OF 1986 (26 U.S.C. S 170(C)(2)(D)). S 3. Paragraph 7 of subdivision (e) of section 203 of the limited liability company law is renumbered paragraph 8 and a new paragraph 7 is added to read as follows: EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15171-02-0
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