1189 AMH HUNS REIL 031

HB 1189 - H AMD 81

By Representative Pedersen

ADOPTED 3/7/2007

   On page 2, beginning on line 5, strike all of subsection (3) and insert the following:

   "(3) A limited liability company and all of its affiliates are treated as a single person for contribution purposes. For purposes of this section: (a) An “affiliate” of a limited liability company is any person who directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the limited liability company; and (b) “control”, including the terms “controlled by” and “under common control with” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person whether through the ownership of voting securities, voting rights, by contract other than a commercial contract for goods, nonmanagement services, a debt obligation which is not convertible into a right to acquire a voting security, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control is presumed to exist if a person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, ten percent or more of the voting securities of any other person."

EFFECT: Clarifies that a limited liability company and all of its affiliates are treated as a single person for campaign contribution purposes; defines an "affiliate" as any person who directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the limited liability company; and defines "control," including “controlled by” and “under common control with,” as the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person.