Bill Text: NY A05642 | 2019-2020 | General Assembly | Introduced
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Bill Title: Enacts the "corporate political activity accountability to shareholders act"; requires that corporate contributions to a political candidate or party committee or in support or opposition to a candidate or ballot referendum be approved by a majority of shareholders; applies to cooperative corporations, not-for-profit corporations, railroad and transportation corporations.
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Introduced - Dead) 2020-01-08 - referred to election law [A05642 Detail]
Download: New_York-2019-A05642-Introduced.html
Bill Title: Enacts the "corporate political activity accountability to shareholders act"; requires that corporate contributions to a political candidate or party committee or in support or opposition to a candidate or ballot referendum be approved by a majority of shareholders; applies to cooperative corporations, not-for-profit corporations, railroad and transportation corporations.
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Introduced - Dead) 2020-01-08 - referred to election law [A05642 Detail]
Download: New_York-2019-A05642-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5642 2019-2020 Regular Sessions IN ASSEMBLY February 14, 2019 ___________ Introduced by M. of A. ROZIC, ABINANTI, COLTON, GALEF, JAFFEE, LIFTON, LUPARDO, PEOPLES-STOKES, L. ROSENTHAL -- Multi-Sponsored by -- M. of A. GLICK, SIMON, THIELE -- read once and referred to the Committee on Election Law AN ACT to amend the business corporation law, the cooperative corpo- rations law, the not-for-profit corporation law, the railroad law, the transportation corporations law, the banking law and the limited liability company law, in relation to enacting the "corporate poli- tical activity accountability to shareholders act" The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "corporate political activity accountability to shareholders act". 3 § 2. The business corporation law is amended by adding a new section 4 631 to read as follows: 5 § 631. Political contributions. 6 (a) Definitions. When used in this section: 7 (1) The term "contribution" means any gift, subscription, outstanding 8 loan, advance, deposit of money or any thing of value provided to a 9 political committee, party committee, constituted committee or duly 10 constituted subcommittee of a county committee, as those terms are 11 defined in article fourteen of the election law, in support or oppo- 12 sition to a candidate for public or party office, referendum, political 13 party, electioneering communication or any communication made to the 14 general public intended to encourage the public to contact a government 15 official, candidate for public or party office or political party 16 regarding pending legislation, public policy or a government rule or 17 regulation; 18 (2) The term "independent expenditure" means an expenditure made by a 19 person for an audio or video communication to a general public audience 20 via broadcast, cable or satellite or a written communication to a gener- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00804-01-9A. 5642 2 1 al public audience via advertisements, pamphlets, circulars, flyers, 2 brochures, letterheads or other printed matter and statements or infor- 3 mation conveyed to five hundred or more members of a general public 4 audience by computer or other electronic devices which: (i) expressly 5 advocates the election or defeat of a clearly identified candidate or 6 the success or defeat of a ballot proposal and (ii) such candidate, the 7 candidate's political committee or its agents, or a political committee 8 formed to promote the success or defeat of a ballot proposal or its 9 agents, did not authorize, request, suggest, foster or cooperate in any 10 such communication. Independent expenditures do not include: (A) a 11 communication appearing in a written news story, commentary, or editori- 12 al or distributed through the facilities of any broadcasting station, 13 cable or satellite unless such publication or facilities are owned or 14 controlled by any political party, political committee or candidate; or 15 (B) a communication that constitutes a candidate debate or forum; or (C) 16 a communication which constitutes an expenditure made by an entity 17 required to report such expenditure with a board of elections. 18 (b) Notwithstanding any other limits on corporate contributions to, or 19 expenditures on behalf of, candidates for public or party office, poli- 20 tical committees, party committees or ballot referendum, before a corpo- 21 ration or any of its subsidiaries may make a contribution or independent 22 expenditure, the corporation shall, at least annually, obtain the prior 23 authorization by vote of a majority of the shares cast on such resol- 24 ution to make contributions or independent expenditures up to a stated 25 aggregate annual amount. 26 (c) Any corporation, either by itself or its subsidiaries, making a 27 contribution or independent expenditure shall at least annually disclose 28 to its shareholders and file with the secretary of state an accounting 29 of the contributions and independent expenditures used for such 30 purposes, including: 31 (1) the date of the contribution or independent expenditure; 32 (2) the amount of the contribution or independent expenditure; 33 (3) the identity of the recipient of the contribution, or if an inde- 34 pendent expenditure, the identity of the candidate, referendum, poli- 35 tical party, pending legislation, public policy or a government rule or 36 regulation supported or opposed; and 37 (4) the business rationale for each such contribution or independent 38 expenditure. 39 (d) The secretary of state shall post each corporation's annual 40 disclosure on the website maintained by the secretary of state. 41 (e) The attorney general may commence an action or special proceeding 42 to enforce the provisions of this section. 43 § 3. The business corporation law is amended by adding a new section 44 1321 to read as follows: 45 § 1321. Political contributions. 46 (a) Definitions. When used in this section: 47 (1) The term "contribution" means any gift, subscription, outstanding 48 loan, advance, deposit of money or any thing of value provided to a 49 political committee, party committee, constituted committee or duly 50 constituted subcommittee of a county committee, as those terms are 51 defined in article fourteen of the election law, in support or oppo- 52 sition to a candidate for public or party office, referendum, political 53 party, electioneering communication or any communication made to the 54 general public intended to encourage the public to contact a government 55 official, candidate for public or party office or political partyA. 5642 3 1 regarding pending legislation, public policy or a government rule or 2 regulation; 3 (2) The term "independent expenditure" means an expenditure made by a 4 person for an audio or video communication to a general public audience 5 via broadcast, cable or satellite or a written communication to a gener- 6 al public audience via advertisements, pamphlets, circulars, flyers, 7 brochures, letterheads or other printed matter and statements or infor- 8 mation conveyed to five hundred or more members of a general public 9 audience by computer or other electronic devices which: (i) expressly 10 advocates the election or defeat of a clearly identified candidate or 11 the success or defeat of a ballot proposal and (ii) such candidate, the 12 candidate's political committee or its agents, or a political committee 13 formed to promote the success or defeat of a ballot proposal or its 14 agents, did not authorize, request, suggest, foster or cooperate in any 15 such communication. Independent expenditures do not include: (A) a 16 communication appearing in a written news story, commentary, or editori- 17 al or distributed through the facilities of any broadcasting station, 18 cable or satellite unless such publication or facilities are owned or 19 controlled by any political party, political committee or candidate; or 20 (B) a communication that constitutes a candidate debate or forum; or (C) 21 a communication which constitutes an expenditure made by an entity 22 required to report such expenditure with a board of elections. 23 (b) Notwithstanding any other limits on corporate contributions to, or 24 expenditures on behalf of, candidates for public or party office, poli- 25 tical committees, party committees or ballot referendum, before a 26 foreign corporation doing business in the state in accordance with 27 section thirteen hundred one of this article may make a contribution or 28 independent expenditure in New York, the foreign corporation shall, at 29 least annually, obtain the prior authorization by vote of a majority of 30 the shares cast on such resolution to make contributions or independent 31 expenditures up to a stated aggregate annual amount. 32 (c) Any foreign corporation, either by itself or its subsidiaries, 33 making a contribution or independent expenditure in New York shall at 34 least annually disclose to its shareholders and file with the secretary 35 of state an accounting of the contributions and independent expenditures 36 used for such purposes, including: 37 (1) the date of the contribution or independent expenditure; 38 (2) the amount of the contribution or independent expenditure; 39 (3) the identity of the recipient of the contribution, or if an inde- 40 pendent expenditure, the identity of the candidate, referendum, poli- 41 tical party, pending legislation, public policy or a government rule or 42 regulation supported or opposed; and 43 (4) the business rationale for each such contribution or independent 44 expenditure. 45 (d) The secretary of state shall post each foreign corporation's annu- 46 al disclosure on the website maintained by the secretary of state. 47 (e) The attorney general may commence an action or special proceeding 48 to enforce the provisions of this section. 49 § 4. The business corporation law is amended by adding a new section 50 1517 to read as follows: 51 § 1517. Political contributions. 52 (a) Definitions. When used in this section: 53 (1) The term "contribution" means any gift, subscription, outstanding 54 loan, advance, deposit of money or any thing of value provided to a 55 political committee, party committee, constituted committee or duly 56 constituted subcommittee of a county committee, as those terms areA. 5642 4 1 defined in article fourteen of the election law, in support or oppo- 2 sition to a candidate for public or party office, referendum, political 3 party, electioneering communication or any communication made to the 4 general public intended to encourage the public to contact a government 5 official, candidate for public or party office or political party 6 regarding pending legislation, public policy or a government rule or 7 regulation; 8 (2) The term "independent expenditure" means an expenditure made by a 9 person for an audio or video communication to a general public audience 10 via broadcast, cable or satellite or a written communication to a gener- 11 al public audience via advertisements, pamphlets, circulars, flyers, 12 brochures, letterheads or other printed matter and statements or infor- 13 mation conveyed to five hundred or more members of a general public 14 audience by computer or other electronic devices which: (i) expressly 15 advocates the election or defeat of a clearly identified candidate or 16 the success or defeat of a ballot proposal and (ii) such candidate, the 17 candidate's political committee or its agents, or a political committee 18 formed to promote the success or defeat of a ballot proposal or its 19 agents, did not authorize, request, suggest, foster or cooperate in any 20 such communication. Independent expenditures do not include: (A) a 21 communication appearing in a written news story, commentary, or editori- 22 al or distributed through the facilities of any broadcasting station, 23 cable or satellite unless such publication or facilities are owned or 24 controlled by any political party, political committee or candidate; or 25 (B) a communication that constitutes a candidate debate or forum; or (C) 26 a communication which constitutes an expenditure made by an entity 27 required to report such expenditure with a board of elections. 28 (b) Notwithstanding any other limits on professional service corpo- 29 ration contributions to, or expenditures on behalf of, candidates for 30 public or party office, political committees, party committees or ballot 31 referendum, before a professional service corporation may make a 32 contribution or independent expenditure, the professional service corpo- 33 ration shall, at least annually, obtain the prior authorization by vote 34 of a majority of the shares cast on such resolution to make contrib- 35 utions or independent expenditures up to a stated aggregate annual 36 amount. 37 (c) Any professional service corporation, either by itself or its 38 subsidiaries, making a contribution or independent expenditure shall at 39 least annually disclose to its shareholders and file with the secretary 40 of state an accounting of the contributions and independent expenditures 41 used for such purposes, including: 42 (1) the date of the contribution or independent expenditure; 43 (2) the amount of the contribution or independent expenditure; 44 (3) the identity of the recipient of the contribution, or if an inde- 45 pendent expenditure, the identity of the candidate, referendum, poli- 46 tical party, pending legislation, public policy or a government rule or 47 regulation supported or opposed; and 48 (4) the business rationale for each such contribution or independent 49 expenditure. 50 (d) The secretary of state shall post each professional service corpo- 51 ration's annual disclosure on the website maintained by the secretary of 52 state. 53 (e) The attorney general may commence an action or special proceeding 54 to enforce the provisions of this section. 55 § 5. The business corporation law is amended by adding a new section 56 1534 to read as follows:A. 5642 5 1 § 1534. Political contributions. 2 (a) Definitions. When used in this section: 3 (1) The term "contribution" means any gift, subscription, outstanding 4 loan, advance, deposit of money or any thing of value provided to a 5 political committee, party committee, constituted committee or duly 6 constituted subcommittee of a county committee, as those terms are 7 defined in article fourteen of the election law, in support or oppo- 8 sition to a candidate for public or party office, referendum, political 9 party, electioneering communication or any communication made to the 10 general public intended to encourage the public to contact a government 11 official, candidate for public or party office or political party 12 regarding pending legislation, public policy or a government rule or 13 regulation; 14 (2) The term "independent expenditure" means an expenditure made by a 15 person for an audio or video communication to a general public audience 16 via broadcast, cable or satellite or a written communication to a gener- 17 al public audience via advertisements, pamphlets, circulars, flyers, 18 brochures, letterheads or other printed matter and statements or infor- 19 mation conveyed to five hundred or more members of a general public 20 audience by computer or other electronic devices which: (i) expressly 21 advocates the election or defeat of a clearly identified candidate or 22 the success or defeat of a ballot proposal and (ii) such candidate, the 23 candidate's political committee or its agents, or a political committee 24 formed to promote the success or defeat of a ballot proposal or its 25 agents, did not authorize, request, suggest, foster or cooperate in any 26 such communication. Independent expenditures do not include: (A) a 27 communication appearing in a written news story, commentary, or editori- 28 al or distributed through the facilities of any broadcasting station, 29 cable or satellite unless such publication or facilities are owned or 30 controlled by any political party, political committee or candidate; or 31 (B) a communication that constitutes a candidate debate or forum; or (C) 32 a communication which constitutes an expenditure made by an entity 33 required to report such expenditure with a board of elections. 34 (b) Notwithstanding any other limits on foreign professional service 35 corporation contributions to, or expenditures on behalf of, candidates 36 for public or party office, political committees, party committees or 37 ballot referendum, before a foreign professional service corporation, as 38 defined by subdivision (d) of section fifteen hundred twenty-five of 39 this article, may make a contribution or independent expenditure in New 40 York, the foreign professional service corporation shall, at least annu- 41 ally, obtain the prior authorization by vote of a majority of the shares 42 cast on such resolution to make contributions or independent expendi- 43 tures up to a stated aggregate annual amount. 44 (c) Any foreign professional service corporation, either by itself or 45 its subsidiaries, making a contribution or independent expenditure in 46 New York shall at least annually disclose to its shareholders and file 47 with the secretary of state an accounting of the contributions and inde- 48 pendent expenditures used for such purposes, including: 49 (1) the date of the contribution or independent expenditure; 50 (2) the amount of the contribution or independent expenditure; 51 (3) the identity of the recipient of the contribution, or if an inde- 52 pendent expenditure, the identity of the candidate, referendum, poli- 53 tical party, pending legislation, public policy or a government rule or 54 regulation supported or opposed; and 55 (4) the business rationale for each such contribution or independent 56 expenditure.A. 5642 6 1 (d) The secretary of state shall post each foreign professional 2 service corporation's annual disclosure on the web site maintained by 3 the secretary of state. 4 (e) The attorney general may commence an action or special proceeding 5 to enforce the provisions of this section. 6 § 6. The cooperative corporations law is amended by adding a new 7 section 78 to read as follows: 8 § 78. Political contributions. 1. Definitions. When used in this 9 section: 10 (a) The term "contribution" means any gift, subscription, outstanding 11 loan, advance, deposit of money or any thing of value provided to a 12 political committee, party committee, constituted committee or duly 13 constituted subcommittee of a county committee, as those terms are 14 defined in article fourteen of the election law, in support or oppo- 15 sition to a candidate for public or party office, referendum, political 16 party, electioneering communication or any communication made to the 17 general public intended to encourage the public to contact a government 18 official, candidate for public or party office or political party 19 regarding pending legislation, public policy or a government rule or 20 regulation; 21 (b) The term "independent expenditure" means an expenditure made by a 22 person for an audio or video communication to a general public audience 23 via broadcast, cable or satellite or a written communication to a gener- 24 al public audience via advertisements, pamphlets, circulars, flyers, 25 brochures, letterheads or other printed matter and statements or infor- 26 mation conveyed to five hundred or more members of a general public 27 audience by computer or other electronic devices which: (i) expressly 28 advocates the election or defeat of a clearly identified candidate or 29 the success or defeat of a ballot proposal and (ii) such candidate, the 30 candidate's political committee or its agents, or a political committee 31 formed to promote the success or defeat of a ballot proposal or its 32 agents, did not authorize, request, suggest, foster or cooperate in any 33 such communication. Independent expenditures do not include: (A) a 34 communication appearing in a written news story, commentary, or editori- 35 al or distributed through the facilities of any broadcasting station, 36 cable or satellite unless such publication or facilities are owned or 37 controlled by any political party, political committee or candidate; or 38 (B) a communication that constitutes a candidate debate or forum; or (C) 39 a communication which constitutes an expenditure made by an entity 40 required to report such expenditure with a board of elections. 41 2. Notwithstanding any other limits on cooperative corporation 42 contributions to or expenditures on behalf of political candidates, 43 political committees, party committees, or ballot referendums, before a 44 cooperative corporation may make a contribution or independent expendi- 45 ture, the cooperative corporation shall at least annually obtain the 46 prior authorization by vote of a majority of the shares or members cast 47 on such resolution to make contributions or independent expenditures, up 48 to a stated aggregate annual amount. 49 3. Any cooperative corporation, either by itself or its subsidiaries, 50 making a contribution or independent expenditure shall, at least annual- 51 ly, disclose to its shareholders and file with the secretary of state an 52 accounting of the contributions and independent expenditures used for 53 such purposes, including: 54 (a) the date of the contribution or independent expenditure; 55 (b) the amount of the contribution or independent expenditure;A. 5642 7 1 (c) the identity of the recipient of the contribution, or if an inde- 2 pendent expenditure, the identity of the candidate, referendum, poli- 3 tical party, pending legislation, public policy or a government rule or 4 regulation supported or opposed; and 5 (d) the business rationale for each such contribution or independent 6 expenditure. 7 4. The secretary of state shall post each cooperative corporation's 8 annual disclosure on the website maintained by the secretary of state. 9 5. The attorney general may commence an action or special proceeding 10 to enforce the provisions of this section. 11 § 7. The not-for-profit corporation law is amended by adding a new 12 section 522 to read as follows: 13 § 522. Political contributions. 14 (a) Definitions. When used in this section: 15 (1) The term "contribution" means any gift, subscription, outstanding 16 loan, advance, deposit of money or any thing of value provided to a 17 political committee, party committee, constituted committee or duly 18 constituted subcommittee of a county committee, as those terms are 19 defined in article fourteen of the election law, in support or oppo- 20 sition to a candidate for public or party office, referendum, political 21 party, electioneering communication or any communication made to the 22 general public intended to encourage the public to contact a government 23 official, candidate for public or party office or political party 24 regarding pending legislation, public policy or a government rule or 25 regulation; 26 (2) The term "independent expenditure" means an expenditure made by a 27 person for an audio or video communication to a general public audience 28 via broadcast, cable or satellite or a written communication to a gener- 29 al public audience via advertisements, pamphlets, circulars, flyers, 30 brochures, letterheads or other printed matter and statements or infor- 31 mation conveyed to five hundred or more members of a general public 32 audience by computer or other electronic devices which: (i) expressly 33 advocates the election or defeat of a clearly identified candidate or 34 the success or defeat of a ballot proposal and (ii) such candidate, the 35 candidate's political committee or its agents, or a political committee 36 formed to promote the success or defeat of a ballot proposal or its 37 agents, did not authorize, request, suggest, foster or cooperate in any 38 such communication. Independent expenditures do not include: (A) a 39 communication appearing in a written news story, commentary, or editori- 40 al or distributed through the facilities of any broadcasting station, 41 cable or satellite unless such publication or facilities are owned or 42 controlled by any political party, political committee or candidate; or 43 (B) a communication that constitutes a candidate debate or forum; or (C) 44 a communication which constitutes an expenditure made by an entity 45 required to report such expenditure with a board of elections. 46 (b) Notwithstanding any other limits on not-for-profit corporation 47 contributions to, or expenditures on behalf of, candidates for public or 48 party office, political committees, party committees or ballot referen- 49 dum, before a not-for-profit corporation or any of its subsidiaries may 50 make a contribution or independent expenditure, the not-for-profit 51 corporation shall, at least annually, obtain the prior authorization by 52 vote of a majority of the members voting on such resolution to make 53 contributions or independent expenditures up to a stated aggregate annu- 54 al amount. 55 (c) Any not-for-profit corporation, either by itself or its subsid- 56 iaries, making a contribution or independent expenditure shall at leastA. 5642 8 1 annually disclose to its members and file with the secretary of state an 2 accounting of the contributions and independent expenditures used for 3 such purposes, including: 4 (1) the date of the contribution or independent expenditure; 5 (2) the amount of the contribution or independent expenditure; 6 (3) the identity of the recipient of the contribution, or if an inde- 7 pendent expenditure, the identity of the candidate, referendum, poli- 8 tical party, pending legislation, public policy or a government rule or 9 regulation supported or opposed; and 10 (4) the business rationale for each such contribution or independent 11 expenditure. 12 (d) The secretary of state shall post each not-for-profit corpo- 13 ration's annual disclosure on the website maintained by the secretary of 14 state. 15 (e) The attorney general may commence an action or special proceeding 16 to enforce the provisions of this section. 17 § 8. The railroad law is amended by adding a new section 35 to read as 18 follows: 19 § 35. Political contributions. 1. Definitions. When used in this 20 section: 21 (a) The term "contribution" means any gift, subscription, outstanding 22 loan, advance, deposit of money or any thing of value provided to a 23 political committee, party committee, constituted committee or duly 24 constituted subcommittee of a county committee, as those terms are 25 defined in article fourteen of the election law, in support or oppo- 26 sition to a candidate for public or party office, referendum, political 27 party, electioneering communication or any communication made to the 28 general public intended to encourage the public to contact a government 29 official, candidate for public or party office or political party 30 regarding pending legislation, public policy or a government rule or 31 regulation; 32 (b) The term "independent expenditure" means an expenditure made by a 33 person for an audio or video communication to a general public audience 34 via broadcast, cable or satellite or a written communication to a gener- 35 al public audience via advertisements, pamphlets, circulars, flyers, 36 brochures, letterheads or other printed matter and statements or infor- 37 mation conveyed to five hundred or more members of a general public 38 audience by computer or other electronic devices which: (i) expressly 39 advocates the election or defeat of a clearly identified candidate or 40 the success or defeat of a ballot proposal and (ii) such candidate, the 41 candidate's political committee or its agents, or a political committee 42 formed to promote the success or defeat of a ballot proposal or its 43 agents, did not authorize, request, suggest, foster or cooperate in any 44 such communication. Independent expenditures do not include: (A) a 45 communication appearing in a written news story, commentary, or editori- 46 al or distributed through the facilities of any broadcasting station, 47 cable or satellite unless such publication or facilities are owned or 48 controlled by any political party, political committee or candidate; or 49 (B) a communication that constitutes a candidate debate or forum; or (C) 50 a communication which constitutes an expenditure made by an entity 51 required to report such expenditure with a board of elections. 52 2. Notwithstanding any other limits on railroad corporation contrib- 53 utions to or expenditures on behalf of political candidates, political 54 committees, party committees, or ballot referendums, before a railroad 55 corporation may make a contribution or independent expenditure, the 56 railroad corporation shall at least annually obtain the prior authori-A. 5642 9 1 zation by vote of a majority of the shares or members cast on such 2 resolution to make contributions or independent expenditures, up to a 3 stated aggregate annual amount. 4 3. Any railroad corporation, either by itself or its subsidiaries, 5 making contributions or independent expenditures shall, at least annual- 6 ly, disclose to its shareholders and file with the secretary of state an 7 accounting of the contributions and independent expenditures used for 8 such purposes, including: 9 (a) the date of the contribution or independent expenditure; 10 (b) the amount of the contribution or independent expenditure; 11 (c) the identity of the recipient of the contribution, or if an inde- 12 pendent expenditure, the identity of the candidate, referendum, poli- 13 tical party, pending legislation, public policy or a government rule or 14 regulation supported or opposed; and 15 (d) the business rationale for each such contribution or independent 16 expenditure. 17 4. The secretary of state shall post each railroad corporation's annu- 18 al disclosure on the website maintained by the secretary of state. 19 5. The attorney general may commence an action or special proceeding 20 to enforce the provisions of this section. 21 § 9. The transportation corporations law is amended by adding a new 22 section 7 to read as follows: 23 § 7. Political contributions. (a) Definitions. When used in this 24 section: 25 (1) The term "contribution" means any gift, subscription, outstanding 26 loan, advance, deposit of money or any thing of value provided to a 27 political committee, party committee, constituted committee or duly 28 constituted subcommittee of a county committee, as those terms are 29 defined in article fourteen of the election law, in support or oppo- 30 sition to a candidate for public or party office, referendum, political 31 party, electioneering communication or any communication made to the 32 general public intended to encourage the public to contact a government 33 official, candidate for public or party office or political party 34 regarding pending legislation, public policy or a government rule or 35 regulation; 36 (2) The term "independent expenditure" means an expenditure made by a 37 person for an audio or video communication to a general public audience 38 via broadcast, cable or satellite or a written communication to a gener- 39 al public audience via advertisements, pamphlets, circulars, flyers, 40 brochures, letterheads or other printed matter and statements or infor- 41 mation conveyed to five hundred or more members of a general public 42 audience by computer or other electronic devices which: (i) expressly 43 advocates the election or defeat of a clearly identified candidate or 44 the success or defeat of a ballot proposal and (ii) such candidate, the 45 candidate's political committee or its agents, or a political committee 46 formed to promote the success or defeat of a ballot proposal or its 47 agents, did not authorize, request, suggest, foster or cooperate in any 48 such communication. Independent expenditures do not include: (A) a 49 communication appearing in a written news story, commentary, or editori- 50 al or distributed through the facilities of any broadcasting station, 51 cable or satellite unless such publication or facilities are owned or 52 controlled by any political party, political committee or candidate; or 53 (B) a communication that constitutes a candidate debate or forum; or (C) 54 a communication which constitutes an expenditure made by an entity 55 required to report such expenditure with a board of elections.A. 5642 10 1 (b) Notwithstanding any other limits on transportation corporation 2 contributions to, or expenditures on behalf of, candidates for public or 3 party office, political committees, party committees or ballot referen- 4 dum, before a transportation corporation or any of its subsidiaries may 5 make a contribution or independent expenditure, the transportation 6 corporation shall, at least annually, obtain the prior authorization by 7 vote of a majority of the shares cast on such resolution to make 8 contributions or independent expenditures up to a stated aggregate annu- 9 al amount. 10 (c) Any transportation corporation, either by itself or its subsid- 11 iaries, making contributions or independent expenditures shall at least 12 annually disclose to its shareholders and file with the secretary of 13 state an accounting of the contributions and independent expenditures 14 used for such purposes, including: 15 (1) the date of the contribution or independent expenditure; 16 (2) the amount of the contribution or independent expenditure; 17 (3) the identity of the recipient of the contribution, or if an inde- 18 pendent expenditure, the identity of the candidate, referendum, poli- 19 tical party, pending legislation, public policy or a government rule or 20 regulation supported or opposed; and 21 (4) the business rationale for each such contribution or independent 22 expenditure. 23 (d) The secretary of state shall post each transportation corpo- 24 ration's annual disclosure on the website maintained by the secretary of 25 state. 26 (e) The attorney general may commence an action or special proceeding 27 to enforce the provisions of this section. 28 § 10. The banking law is amended by adding a new section 5017 to read 29 as follows: 30 § 5017. Political contributions. 1. Definitions. When used in this 31 section: 32 (a) The term "contribution" means any gift, subscription, outstanding 33 loan, advance, deposit of money or any thing of value provided to a 34 political committee, party committee, constituted committee or duly 35 constituted subcommittee of a county committee, as those terms are 36 defined in article fourteen of the election law, in support or oppo- 37 sition to a candidate for public or party office, referendum, political 38 party, electioneering communication or any communication made to the 39 general public intended to encourage the public to contact a government 40 official, candidate for public or party office or political party 41 regarding pending legislation, public policy or a government rule or 42 regulation; 43 (b) The term "independent expenditure" means an expenditure made by a 44 person for an audio or video communication to a general public audience 45 via broadcast, cable or satellite or a written communication to a gener- 46 al public audience via advertisements, pamphlets, circulars, flyers, 47 brochures, letterheads or other printed matter and statements or infor- 48 mation conveyed to five hundred or more members of a general public 49 audience by computer or other electronic devices which: (i) expressly 50 advocates the election or defeat of a clearly identified candidate or 51 the success or defeat of a ballot proposal and (ii) such candidate, the 52 candidate's political committee or its agents, or a political committee 53 formed to promote the success or defeat of a ballot proposal or its 54 agents, did not authorize, request, suggest, foster or cooperate in any 55 such communication. Independent expenditures do not include: (A) a 56 communication appearing in a written news story, commentary, or editori-A. 5642 11 1 al or distributed through the facilities of any broadcasting station, 2 cable or satellite unless such publication or facilities are owned or 3 controlled by any political party, political committee or candidate; or 4 (B) a communication that constitutes a candidate debate or forum; or (C) 5 a communication which constitutes an expenditure made by an entity 6 required to report such expenditure with a board of elections. 7 2. Notwithstanding any other limits on corporation contributions to or 8 expenditures on behalf of political candidates, political committees, 9 party committees, or ballot referendums, before a corporation may make a 10 contribution or independent expenditure, the corporation shall at least 11 annually obtain the prior authorization by vote of a majority of the 12 shares or members cast on such resolution to make contributions or inde- 13 pendent expenditures, up to a stated aggregate annual amount. 14 3. Any corporation, either by itself or its subsidiaries, making a 15 contribution or independent expenditure shall, at least annually, 16 disclose to its shareholders and file with the secretary of state an 17 accounting of the contributions and independent expenditures used for 18 such purposes, including: 19 (a) the date of the contribution or independent expenditure; 20 (b) the amount of the contribution or independent expenditure; 21 (c) the identity of the recipient of the contribution, or if an inde- 22 pendent expenditure, the identity of the candidate, referendum, poli- 23 tical party, pending legislation, public policy or a government rule or 24 regulation supported or opposed; and 25 (d) the business rationale for each such contribution or independent 26 expenditure. 27 4. The secretary of state shall post each corporation's annual disclo- 28 sure on the website maintained by the secretary of state. 29 5. The attorney general may commence an action or special proceeding 30 to enforce the provisions of this section. 31 § 11. The limited liability company law is amended by adding a new 32 section 510 to read as follows: 33 § 510. Political contributions. (a) Definitions. When used in this 34 section: 35 (1) The term "contribution" means any gift, subscription, outstanding 36 loan, advance, deposit of money or any thing of value provided to a 37 political committee, party committee, constituted committee or duly 38 constituted subcommittee of a county committee, as those terms are 39 defined in article fourteen of the election law, in support or oppo- 40 sition to a candidate for public or party office, referendum, political 41 party, electioneering communication or any communication made to the 42 general public intended to encourage the public to contact a government 43 official, candidate for public or party office or political party 44 regarding pending legislation, public policy or a government rule or 45 regulation; 46 (2) The term "independent expenditure" means an expenditure made by a 47 person for an audio or video communication to a general public audience 48 via broadcast, cable or satellite or a written communication to a gener- 49 al public audience via advertisements, pamphlets, circulars, flyers, 50 brochures, letterheads or other printed matter and statements or infor- 51 mation conveyed to five hundred or more members of a general public 52 audience by computer or other electronic devices which: (i) expressly 53 advocates the election or defeat of a clearly identified candidate or 54 the success or defeat of a ballot proposal and (ii) such candidate, the 55 candidate's political committee or its agents, or a political committee 56 formed to promote the success or defeat of a ballot proposal or itsA. 5642 12 1 agents, did not authorize, request, suggest, foster or cooperate in any 2 such communication. Independent expenditures do not include: (A) a 3 communication appearing in a written news story, commentary, or editori- 4 al or distributed through the facilities of any broadcasting station, 5 cable or satellite unless such publication or facilities are owned or 6 controlled by any political party, political committee or candidate; or 7 (B) a communication that constitutes a candidate debate or forum; or (C) 8 a communication which constitutes an expenditure made by an entity 9 required to report such expenditure with a board of elections. 10 (b) Notwithstanding any other limits on contributions to, or expendi- 11 tures on behalf of, candidates for public or party office, political 12 committees, party committees or ballot referendum, before a limited 13 liability company may make a contribution or independent expenditure, 14 the limited liability company shall, at least annually, obtain the prior 15 authorization by vote of a majority of the members or managers cast on 16 such resolution to make contributions or independent expenditures up to 17 a stated aggregate annual amount. 18 (c) Any limited liability company, either by itself or its subsid- 19 iaries, making a contribution or independent expenditure shall at least 20 annually disclose to its members or managers and file with the secretary 21 of state an accounting of the contributions and independent expenditures 22 used for such purposes, including: 23 (1) the date of the contribution or independent expenditure; 24 (2) the amount of the contribution or independent expenditure; 25 (3) the identity of the recipient of the contribution, or if an inde- 26 pendent expenditure, the identity of the candidate, referendum, poli- 27 tical party, pending legislation, public policy or a government rule or 28 regulation supported or opposed; and 29 (4) the business rationale for each such contribution or independent 30 expenditure. 31 (d) The secretary of state shall post each limited liability company's 32 annual disclosure on the website maintained by the secretary of state. 33 (e) The attorney general may commence an action or special proceeding 34 to enforce the provisions of this section. 35 § 12. Severability. If any clause, sentence, paragraph, section or 36 part of this act shall be adjudged by any court of competent jurisdic- 37 tion to be invalid and after exhaustion of all further judicial review, 38 the judgment shall not affect, impair or invalidate the remainder there- 39 of, but shall be confined in its operation to the clause, sentence, 40 paragraph, section or part of this act directly involved in the contro- 41 versy in which the judgment shall have been rendered. 42 § 13. This act shall take effect on the first of August next succeed- 43 ing the date on which it shall have become a law.
