S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8035

                            I N  S E N A T E

                              June 7, 2016
                               ___________

Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

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:

  Section 1. Section 201 of the limited liability company law is amended
to read as follows:
  S  201.  Purpose. A limited liability company may be formed under this
chapter for any lawful business purpose or purposes except to do in this
state any business for which another statute specifically requires  some
other  business  entity  or natural person to be formed or used for such
business; OR FORMED OR USED FOR THE SOLE  PURPOSE  OF  MAKING  POLITICAL
CONTRIBUTIONS OR EXPENDITURES UNLESS REGISTERED AS A POLITICAL COMMITTEE
OR INDEPENDENT EXPENDITURE COMMITTEE WITH THE BOARD OF ELECTIONS.
  S  2.  Paragraphs  6  and  7  of subdivision (e) of section 203 of the
limited liability company law, as added by chapter 470 of  the  laws  of
1997, are amended and a new paragraph 8 is added to read as follows:
  (6)  if all or specified members are to be liable in their capacity as
members for all or specified debts, obligations or  liabilities  of  the
limited  liability company as authorized pursuant to section six hundred
nine of this chapter, a statement that all or specified members  are  so
liable  for  such debts, obligations or liabilities in their capacity as
members of the limited  liability  company  as  authorized  pursuant  to
section six hundred nine of this chapter; [and]
  (7)  any other provisions, not inconsistent with law, that the members
elect to include in the articles or organization for the  regulation  of
the  internal  affairs  of the limited liability company, including, but
not limited to, (A) the business purpose for which the limited liability
company is formed, (B) a statement of whether there are  limitations  on
the  authority  of  members or managers or a class or classes thereof to
bind the limited liability company  and  (C)  any  provisions  that  are
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.
              

                                                           LBD15771-03-6

S. 8035                             2

limited liability company pursuant to section four hundred seventeen  of
this chapter[.]; AND
  (8) IF A LIMITED LIABILITY COMPANY IS FORMED AND REGISTERED IN A STATE
OTHER  THAN  NEW  YORK, IT MUST REGISTER WITH THE SECRETARY OF STATE AND
MEET THE SAME FORMATION AND FILING REQUIREMENTS OF A  LIMITED  LIABILITY
COMPANY  FORMED  AND  REGISTERED  IN  NEW YORK PRIOR TO MAKING POLITICAL
CONTRIBUTIONS OR EXPENDITURES FOR  ANY  STATE  OR  LOCAL  CANDIDATE  FOR
ELECTED OFFICE.
  S  3.  Subdivision 1 of section 14-102 of the election law, as amended
by chapter 8 of the laws of 1978 and as redesignated by chapter 9 of the
laws of 1978, is amended to read as follows:
  1. The treasurer of every political committee which, or  any  officer,
member  or  agent  of  any  such  committee  who, in connection with any
election, receives or expends any  money  or  other  valuable  thing  or
incurs  any  liability  to pay money or its equivalent shall file state-
ments sworn, or subscribed and bearing a form notice that  false  state-
ments  made  therein are punishable as a class A misdemeanor pursuant to
section 210.45 of the penal law, at the times prescribed by this article
setting forth all the receipts, contributions to and the expenditures by
and liabilities of the committee,  and  of  its  officers,  members  and
agents in its behalf. Such statements shall include the dollar amount of
any  receipt,  contribution or transfer, or the fair market value of any
receipt, contribution or transfer, which is other  than  of  money,  the
name  and  address  of  the  transferor, contributor or person from whom
received, and if the transferor, contributor or person  is  a  political
committee; the name of and the political unit represented by the commit-
tee,  the  date  of its receipt, the dollar amount of every expenditure,
the name and address of the person to whom it was made or  the  name  of
and the political unit represented by the committee to which it was made
and  the  date  thereof,  and  shall  state  clearly the purpose of such
expenditure. ANY STATEMENT OF CAMPAIGN RECEIPT THAT INCLUDES A  CONTRIB-
UTION  FROM  A  LIMITED  LIABILITY COMPANY SHALL INCLUDE THE NAME OF THE
REGISTERED AGENT FOR SERVICE OF PROCESS  FILED  WITH  THE  SECRETARY  OF
STATE  EXCEPT  THAT  WHERE  NO  REGISTERED  AGENT  IS SO DESIGNATED, ONE
NATURAL PERSON WHO IS ASSOCIATED WITH SUCH  LIMITED  LIABILITY  COMPANY.
Any  statement  reporting a loan shall have attached to it a copy of the
evidence of indebtedness. Expenditures in sums under fifty dollars  need
not  be specifically accounted for by separate items in said statements,
and receipts and contributions aggregating  not  more  than  ninety-nine
dollars, from any one contributor need not be specifically accounted for
by  separate  items  in  said  statements,  provided  however, that such
expenditures, receipts and contributions shall be subject to  the  other
provisions of section 14-118 of this article.
  S  4.  Subdivision 1 of section 14-104 of the election law, as amended
by chapter 430 of the laws of 1997, is amended to read as follows:
  1. Any candidate for election to public office, or for nomination  for
public  office  at  a  contested  primary election or convention, or for
election to a party position at a primary election,  shall  file  state-
ments  sworn,  or subscribed and bearing a form notice that false state-
ments made therein are punishable as a class A misdemeanor  pursuant  to
section 210.45 of the penal law, at the times prescribed by this article
setting  forth the particulars specified by section 14-102 of this arti-
cle, as to all moneys or other valuable things, paid, given, expended or
promised by him to aid his own nomination or election, or to promote the
success or defeat of a political party, or to aid or influence the nomi-
nation or election or the defeat of any other candidate to be voted  for

S. 8035                             3

at  the  election  or  primary  election  or  at a convention, including
contributions to political committees, officers, members or agents ther-
eof, and transfers, receipts and contributions to him to be used for any
of  the purposes above specified, or in lieu thereof, any such candidate
may file such a sworn statement at the first filing period,  on  a  form
prescribed  by the state board of elections that such candidate has made
no such expenditures and does not intend to make any such  expenditures,
except through a political committee authorized by such candidate pursu-
ant  to  this  article.  A  committee authorized by such a candidate may
fulfill all of the filing requirements of this act  on  behalf  of  such
candidate.  ANY  STATEMENT  OF CAMPAIGN RECEIPT THAT INCLUDES A CONTRIB-
UTION FROM A LIMITED LIABILITY COMPANY SHALL INCLUDE  THE  NAME  OF  THE
REGISTERED  AGENT  FOR  SERVICE  OF  PROCESS FILED WITH THE SECRETARY OF
STATE EXCEPT THAT WHERE  NO  REGISTERED  AGENT  IS  SO  DESIGNATED,  ONE
NATURAL PERSON WHO IS ASSOCIATED WITH SUCH LIMITED LIABILITY COMPANY.
  S  5. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.