Bill Text: NY A01783 | 2023-2024 | General Assembly | Introduced

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Bill Title: Requires shareholders to approve corporate political expenditures.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-01-03 - referred to election law [A01783 Detail]

Download: New_York-2023-A01783-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1783

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 20, 2023
                                       ___________

        Introduced  by  M.  of  A. COLTON, COOK -- read once and referred to the
          Committee on Election Law

        AN ACT to amend the business corporation law, in relation  to  requiring
          shareholders to approve corporate political expenditures

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The business corporation law is amended  by  adding  a  new
     2  section 631 to read as follows:
     3  § 631. Shareholder approval of political expenditures.
     4    (a) "Political expenditure" shall mean a contribution, gift, transfer,
     5  disbursement,  or  promise  of  money  or a thing of value to promote or
     6  assist in the promotion of the success or defeat of a  candidate,  poli-
     7  tical party, or question in any state or federal election.
     8    (b)  A  corporation  may  not  use  any money or other property of the
     9  corporation in connection with a political expenditure unless the share-
    10  holders of the corporation, by the affirmative vote of a majority of all
    11  votes entitled to be cast, have:
    12    (1) Authorized in advance the total amount of money or  property  that
    13  may be used for all political expenditures during a specific fiscal year
    14  of the corporation; and
    15    (2) Directed that the money or property can be used for:
    16    A. A specified candidate or candidates;
    17    B. Candidates of a specified political party or parties;
    18    C. A specified political party or parties;
    19    D. A specified political committee or committees;
    20    E.  A  specified entity or entities exempt from taxation under section
    21  501(c)(4) or (6) of the internal revenue code; or
    22    F. A specified question or questions.
    23    (c) Shareholder consideration of political expenditures shall occur at
    24  an annual or special meeting of the shareholders.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05660-01-3
        A. 1783                             2

     1    (d) Within forty-eight hours after making a political expenditure, the
     2  corporation shall:
     3    (1)  Give  notice  of  the  political expenditure by electronic trans-
     4  mission to each shareholder that has requested notice; and
     5    (2) If the corporation maintains a website, post notice of  the  poli-
     6  tical expenditure on the website.
     7    (3)  When  providing  notice  pursuant to subparagraphs one and two of
     8  this paragraph, the notice shall state the amount, recipient, date,  and
     9  purpose of the political expenditure.
    10    (e)  The  annual report of the corporation shall contain a list of all
    11  political expenditures made by  the  corporation  during  the  reporting
    12  period, including the amount, recipient, date, and purpose of each poli-
    13  tical expenditure.
    14    (f) If a shareholder disagrees with a political expenditure made under
    15  this  section, he or she may receive from the corporation upon request a
    16  pro rata rebate in an amount of the percentage of the political expendi-
    17  ture equal to the percentage of ownership the  shareholder  has  in  the
    18  corporation.
    19    (g)  If  a  majority  of a corporation's shares are owned by those who
    20  cannot take political positions, including but not limited to state  and
    21  local  pension  funds,  mutual  funds, insurance companies, foundations,
    22  churches and universities, then the corporation shall not make political
    23  expenditures.
    24    § 2. This act shall take effect on the ninetieth day  after  it  shall
    25  have become a law.