Bill S.322, introduced by Senators Watson and Harrison, seeks to amend Vermont's laws concerning corporations, partnerships, and associations by defining "ballot-issue activity" and "election activity" while explicitly prohibiting these entities from engaging in such activities. The bill emphasizes that artificial legal persons, like corporations and limited liability companies, only possess powers expressly granted by the state, thereby revoking any prior broad interpretations that allowed for political spending. Key provisions include the insertion of language that deems any election or ballot-issue activities by these entities as ultra vires (beyond their powers) and void, with the Secretary of State authorized to adopt rules for clarity on these definitions.

The bill also addresses the powers and privileges of corporations and mutual benefit enterprises, revoking all powers granted to them on or before December 31, 2026, and establishing that their legal status is conditional and subject to revocation. It specifies that any acts constituting election or ballot-issue activity will lead to the forfeiture of charter privileges. While the bill outlines definitions for political activities and exceptions for certain communications, it ensures that existing contracts and legal obligations prior to the specified date remain valid. The act is set to take effect on January 1, 2027.

Statutes affected:
As Introduced: 11-42, 11-108, 11-994, 11-4011, 11C-106