BILL NUMBER: S4266
SPONSOR: KAVANAGH
 
TITLE OF BILL:
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 liabil-
ity company law, in relation to enacting the "corporate political activ-
ity accountability to shareholders act"
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to empower shareholders to make decisions
about core corporate political activity.
 
SUMMARY OF PROVISIONS:
Section 1 provides the title of the bill.
Sections 2 through 11 requires that corporations formed under the busi-
ness corporation law, the cooperative corporation law, the not-for-pro-
fit law, the railroad law, the transportation corporations law, the
banking law, and the limited liability company law (1) at least annually
obtain prior authorization of a majority of voting shares before making
any corporate political donations up to a stated aggregate annual amount
for a stated business purpose, and (2) disclose to its shareholders and
file with the secretary of state an accounting of all such contribution
or independent expenditures, including the identity of the candidate,
referendum, political party, pending legislation, public policy or a
government rule or regulation supported or opposed.
Sections 2 through 11 also provide the attorney general with the author-
ity to enforce the provisions of each section.
Section 12 contains a severability clause.
Section 13 sets forth the effective date.
 
JUSTIFICATION:
This bill responds to the Supreme Court's decision in Citizens United v.
Federal Election Commission to effectively eliminate restrictions on
corporations' ability to expend corporate resources in support or oppo-
sition of political candidates, political parties and ballot referen-
dums. Specifically, this bill gives shareholders the necessary tools to
ensure that the expenditure of corporate resources toward political
activity serves the objectives for which the corporation was formed, is
consistent with the corporation's business interests and enhances rather
than diminishes shareholder value.
 
PRIOR LEGISLATIVE HISTORY:
2024: S640(Kavanagh)/ A1418(Rozic)- CORPORATIONS,AUTHORITIES AND
COMMISSIONS/election law
2023:S640(Kavanagh)/ A1418(Rozic)- CORPORATIONS,AUTHORITIES AND
COMMISSIONS/election law
2022: S2895(Kavanagh)/ A442(Rozic)- CORPORATIONS,AUTHORITIES AND
COMMISSIONS/election law
2021: S2895(Kavanagh)/ A442(Rozic)- CORPORATIONS,AUTHORITIES AND
COMMISSIONS/election law
2020: S2364A (Kavanagh) / A5642A (Rozic) - CORPORATIONS, AUTHORITIES AND
COMMISSIONS/election law
2019: S2364A (Kavanagh) / A5642A (Rozic) - CORPORATIONS, AUTHORITIES AND
COMMISSIONS/election law
2018: S7066(Kavanagh)/A1148 (Rozic) - Corporations, Authorities and
Commissions/Election Law
2017: A1148 (Rozic) - Election Law
2016: S138 (Squadron)/A289 (Rozic) Corporations, Authorities and
Commissions/Election Law
2015: S138 (Squadron)/A289 (Rozic) Corporations, Authorities and
Commissions/Election Law
2014: S177 (Squadron)/A7287 (Rozic) - Corporations, Authorities and
Commissions/Election Law
2013: S177 (Squadron)/A7287 (Rozic) Corporations, Authorities and
Commissions/Election Law
2012: S101 (Squadron)/A696 (Lancman) - Rules/Election Law
2011: S101 (Squadron)/A696 (Lancman) - Corporations, Authorities and
Commissions/Election Law
2010: S7083 (Squadron)/A9948 (Lancman) - Finance
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect on the first of August next succeeding the
date on which it shall have become a law.