NY 2019 Changes to Donations and Loans to Political Candidates or Committees

NOTICE TO CAMPAIGN FINANCE FILERS REGARDING CERTAIN LOANS PROHIBITED BY NEW LAW ON OR AFTER APRIL 12, 2019

See Chapter 55 of the Laws of 2019 (part AAA)

Beginning April 12th, 2019, the following Persons or Entities are Prohibited from making Loans to Candidates or Political Committees:

• Lobbyists as Defined in Chapter 55 of Laws of 2019. Exception: When the lobbyist makes Loan to their own Campaign.

• Political Action Committees (PAC)

• Labor Unions

• Independent Expenditure Committees

Notice to Filers Regarding Changes to New York State Election Law Affecting Limited Liability Company Contributions

As a result of the Passage of A.776/S.1101, which was Signed into Law by Governor Cuomo as Chapter 4 of the Laws of 2019 on January 24th, 2019, All Candidates and Political Committees should be Aware that Contributions by Limited Liability Companies (LLCs) and Reporting thereof are Affected as follows:

• LLCs are Limited to an Aggregate $5,000 Annual Contribution Limit. The New Law also provides “all contributions made to a campaign or political committee by a limited liability company shall be attributed to each member of the limited liability company in proportion to the member’s ownership interest in the limited liability company.”

Election Law § 14-120 (3) (a). Please note that this Burden rests with the Treasurer to make the Appropriate Allocation to each Owner Proportionally.

• By December 31st of each year, each LLC that makes an Expenditure or Contribution shall File with the New York State Board of Elections (NYSBOE), a Statement of the Identity of All Direct and Indirect Owners of the Membership Interests in the LLC and the Proportion of Each Direct or Indirect Member’s Ownership Interest in the LLC.

• Applies to Contributions/Expenditures made on or after January 31st, 2019.

• First Regular Filing Affected will be the 32 Day Pre-Primary Report, due May 24th, 2019, or the July Periodic, for Filers Not Participating in a Primary, due July 15th, 2019.

CLICK HERE for Guidance on LLC Reporting.










NYC Wins When Everyone Can Vote! Michael H. Drucker