Res. No. 330
Title
Resolution calling upon the New York State legislature to pass, and the Governor to sign, A.9758A/S.7149, in relation to the political expenditures of limited liability companies.
Body
By Council Members Cabrera and Kallos
Whereas, Under New York State law, corporations have an annual cap of $5,000 on their expenditures made for political purposes; and
Whereas, Limited liability companies ('LLC') are not explicitly named in the New York State Election Law section governing political activity by corporations; and
Whereas, In 1996, the New York State Board of Elections issued an advisory opinion that relied on a since repealed federal law designating LLCs as individuals, and thus subjecting LLCs to the campaign contribution limits and disclosure requirements for individuals; and
Whereas, As a result of this advisory opinion, LLC contributions are governed in a way inconsistent with all other corporate campaign contributions; and
Whereas, Individuals or entities repeatedly use separate LLCs to make multiple political donations up to $150,000 per LLC in statewide elections, adding up to millions of dollars in combined donations tied back to one individual or entity; and
Whereas, The identities of LLC owners and partners are often masked as the New York State Department of State does not require LLCs to identify their members or managers; and
Whereas, New York State Assembly Member Simon and New York State Senator Kavanagh introduced A9758A/S7149, subjecting LLCs to existing contribution limits for corporations; and
Whereas, Under the proposed legislation, LLCs would be restricted to the same $5,000 aggregate contribution limit as corporations, and all LLCs that make an expenditure for political purposes would need to disclose the identity of all direct and indirect LLC owners, with the percentage of ownership; and
Whereas, The bill would also require LLCs to attribute any contrib...
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