Bill H.793 seeks to amend Vermont's laws governing corporations, partnerships, and associations by imposing strict limitations on their involvement in election and ballot-issue activities. The bill defines "ballot-issue activity" and "election activity," asserting that entities such as corporations, limited liability companies, and partnerships lack the authority to engage in these activities, rendering any such attempts ultra vires (beyond their legal power). It revokes any previously granted powers that could be interpreted as allowing political spending, ensuring that these entities can only operate within the confines of lawful business, charitable, or organizational purposes. Additionally, the bill prohibits financial contributions or expenditures related to these activities and outlines penalties for non-compliance.

The legislation also clarifies that bona fide news stories and editorials from independent news organizations are excluded from the definitions of election and ballot-issue activities. It establishes that any contracts or legal obligations entered into by these entities before December 31, 2026, will remain valid, while all powers and privileges granted to them under state law will be revoked after this date. The bill emphasizes that no powers limited by this act can be revived or implied, and if any part of the act is found invalid for a specific entity, it does not grant that entity the ability to engage in election or ballot-issue activities. 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