Bill Text: NY S01126 | 2021-2022 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Enacts the democracy preservation act; prohibits contributions by foreign-influenced business entities; requires certification.

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Engrossed - Dead) 2022-01-10 - referred to election law [S01126 Detail]

Download: New_York-2021-S01126-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1126

                               2021-2022 Regular Sessions

                    IN SENATE

                                     January 7, 2021
                                       ___________

        Introduced  by  Sens.  GIANARIS, HARCKHAM, KRUEGER, MAYER, MYRIE, RAMOS,
          SALAZAR -- read twice and ordered printed,  and  when  printed  to  be
          committed to the Committee on Elections

        AN ACT to amend the election law, in relation to enacting the "democracy
          preservation  act";  and  in  relation to prohibiting contributions by
          foreign-influenced business entities and requiring certification

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

     1    Section  1. This act shall be known and may be cited as the "democracy
     2  preservation act".
     3    § 2. The election law is amended by adding a new section  14-116-a  to
     4  read as follows:
     5    §  14-116-a.  Prohibited  contributions by foreign-influenced business
     6  entities. 1. Notwithstanding any provision of law to  the  contrary,  it
     7  shall  be unlawful for a foreign-influenced business entity, directly or
     8  indirectly, to make a contribution or donation of money or  other  thing
     9  of  value,  or  to make an express or implied promise to make a contrib-
    10  ution or donation, in connection with a state or local election.
    11    2. It shall be unlawful for a business entity prohibited under  subdi-
    12  vision  one  of this section, directly or indirectly, to make a contrib-
    13  ution or donation to a constituted  committee,  independent  expenditure
    14  committee, political committee, or party committee.
    15    3.  It shall be unlawful for a business entity prohibited under subdi-
    16  vision one of this section, directly or indirectly, to make an  expendi-
    17  ture,  independent expenditure, or disbursement for a political communi-
    18  cation.
    19    4. It shall be unlawful for a person to knowingly solicit, accept,  or
    20  receive  a contribution or donation described in subdivision one, two or
    21  three of this section from a foreign-influenced business entity.
    22    5. Any person found in violation of this section shall be guilty of  a
    23  class  E  felony  and  shall  be subject to a civil penalty equal to the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03229-02-1
        S. 1126                             2

     1  contribution or donation amount plus  a  fine  of  up  to  ten  thousand
     2  dollars, to be recoverable in a special proceeding or civil action to be
     3  brought by the state board of elections chief enforcement counsel.
     4    6.  This section shall not apply to an independent expenditure made by
     5  a  foreign-influenced  business  entity  in  connection  with  a  ballot
     6  proposal election.
     7    § 3. Section 14-100 of the election law is amended by adding three new
     8  subdivisions 18, 19 and 20 to read as follows:
     9    18.  "foreign-influenced"  shall  mean  a business entity for which at
    10  least one of the following conditions is met:
    11    i. a single foreign owner holds,  owns,  controls,  or  otherwise  has
    12  direct  or  indirect  beneficial ownership of one percent or more of the
    13  total equity, outstanding voting  shares,  membership  units,  or  other
    14  applicable ownership interests of the business entity; or
    15    ii.  two  or more foreign owners, in aggregate, hold, own, control, or
    16  otherwise have direct or indirect beneficial ownership of  five  percent
    17  or  more  of  the  total  equity,  outstanding voting shares, membership
    18  units, or other applicable ownership interests of the  business  entity;
    19  or
    20    iii.  a foreign owner participates directly or indirectly in the busi-
    21  ness entity's decision-making process with respect to the business enti-
    22  ty's political activities in the United States.
    23    19. "business entity"  shall  mean  a  corporation,  company,  limited
    24  liability company, limited partnership, business trust, business associ-
    25  ation,  joint-stock association or other corporate entity doing business
    26  in the state.
    27    20. "foreign owner" shall mean:
    28    i. a foreign national; or
    29    ii.  a  business  entity  wherein  a  foreign  national  holds,  owns,
    30  controls,  or  otherwise  has directly or indirectly acquired beneficial
    31  ownership of equity or voting shares in an amount that is  equal  to  or
    32  greater  than  fifty  percent  of the total equity or outstanding voting
    33  shares.
    34    § 4. Section 14-116 of the election law is amended  by  adding  a  new
    35  subdivision 4 to read as follows:
    36    4.  Every  business entity that makes an expenditure, or contribution,
    37  for political purposes for a state or local election shall file with the
    38  state board of elections, within seven business days after  making  such
    39  expenditure  or  contribution, on the form prescribed by the state board
    40  of elections, a statement of certification signed by the chief executive
    41  officer, president or owner under penalty of perjury, avowing that after
    42  due inquiry, such business entity was not a foreign-influenced  business
    43  entity  on  the date such expenditure or contribution was made. Business
    44  entities shall provide a copy of the statement of certification required
    45  by this subdivision to any campaign or committee to which they  contrib-
    46  ute.
    47    § 5. This act shall take effect on the one hundred eightieth day after
    48  it shall have become a law.  Effective immediately, the addition, amend-
    49  ment and/or repeal of any rule or regulation necessary for the implemen-
    50  tation of this act on its effective date are authorized to be made on or
    51  before such effective date.