BILL NUMBER: S8613
SPONSOR: GONZALEZ
 
TITLE OF BILL:
An act to amend the business corporation law, in relation to regulating
an artificial person's contributions towards election and ballot-issue
activity
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill regulates an artificial person's contributions towards
election activity and ballot-issue activity.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends paragraph (a) and adds a new paragraph (c) to section
202 of the Business Corporation Law. This section (1) defines key terms
applicable to the new provisions; (2) revokes all existing corporate
powers previously granted to an artificial person by the State; and (3)
selectively regrants such powers with the explicit limitation that elec-
tion-related and ballot-issue activity are not included within the
powers conferred on artificial persons under New York law.
Section 2 contains the severability clause.
Section 3 provides that the act shall take effect on the thirtieth day
after it becomes a law.
 
JUSTIFICATION:
Since the Supreme Court's decision in Citizens United v. Federal
Election Commission, corporate spending on election-related activities
has flooded American politics with unfettered and unlimited special-in-
terest money. In 2010, prior to the Court's decision, super PACs spent
$62.6 million on election-related activities. By 2024, spending by these
organizations had surpassed $4.1 billion. Transparency in these spending
streams remains woefully inadequate. Donors to PACs can remain anonymous
if registered as 501(c)(4) organizations, making the true origin of
these ever-increasing funds unknown.
This legislation would remove and explicitly prohibit election and
ballot-related activity from the powers granted to an artificial person
by the State. In doing so, it reaffirms that the privileges of incorpo-
ration are state-created benefits that may be conditioned upon compli-
ance with public policy objectives. The bill ensures that corporations
may continue to operate for lawful business or charitable purposes while
preserving the integrity of democratic self-governance.
Passage of this bill is necessary to curb corporate spending and "dark
money" in elections, paving the way for greater integrity, accountabil-
ity, and transparency in our democratic process.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
THIS ACT SHALL TAKE EFFECT ON THE THIRTIETH DAY AFTER IT SHALL HAVE
BECOME A LAW.

Statutes affected:
S8613: 202 business corporation law