S T A T E   O F   N E W   Y O R K
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                                  6201

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             March 17, 2015
                               ___________

Introduced by M. of A. COLTON -- read once and referred to the Committee
  on Election Law

AN  ACT  to amend the business corporation law, in relation to requiring
  shareholders to approve corporate political expenditures

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  business  corporation law is amended by adding a new
section 631 to read as follows:
S 631. SHAREHOLDER APPROVAL OF POLITICAL EXPENDITURES.
  (A) "POLITICAL EXPENDITURE" SHALL MEAN A CONTRIBUTION, GIFT, TRANSFER,
DISBURSEMENT, OR PROMISE OF MONEY OR A THING  OF  VALUE  TO  PROMOTE  OR
ASSIST  IN  THE PROMOTION OF THE SUCCESS OR DEFEAT OF A CANDIDATE, POLI-
TICAL PARTY, OR QUESTION IN ANY STATE OR FEDERAL ELECTION.
  (B) A CORPORATION MAY NOT USE ANY  MONEY  OR  OTHER  PROPERTY  OF  THE
CORPORATION IN CONNECTION WITH A POLITICAL EXPENDITURE UNLESS THE SHARE-
HOLDERS OF THE CORPORATION, BY THE AFFIRMATIVE VOTE OF A MAJORITY OF ALL
VOTES ENTITLED TO BE CAST, HAVE:
  (1)  AUTHORIZED  IN ADVANCE THE TOTAL AMOUNT OF MONEY OR PROPERTY THAT
MAY BE USED FOR ALL POLITICAL EXPENDITURES DURING A SPECIFIC FISCAL YEAR
OF THE CORPORATION; AND
  (2) DIRECTED THAT THE MONEY OR PROPERTY CAN BE USED FOR:
  A. A SPECIFIED CANDIDATE OR CANDIDATES;
  B. CANDIDATES OF A SPECIFIED POLITICAL PARTY OR PARTIES;
  C. A SPECIFIED POLITICAL PARTY OR PARTIES;
  D. A SPECIFIED POLITICAL COMMITTEE OR COMMITTEES;
  E. A SPECIFIED ENTITY OR ENTITIES EXEMPT FROM TAXATION  UNDER  SECTION
501(C)(4) OR (6) OF THE INTERNAL REVENUE CODE; OR
  F. A SPECIFIED QUESTION OR QUESTIONS.
  (C) SHAREHOLDER CONSIDERATION OF POLITICAL EXPENDITURES SHALL OCCUR AT
AN ANNUAL OR SPECIAL MEETING OF THE SHAREHOLDERS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09903-01-5

              

A. 6201                             2

  (D) WITHIN FORTY-EIGHT HOURS AFTER MAKING A POLITICAL EXPENDITURE, THE
CORPORATION SHALL:
  (1)  GIVE  NOTICE  OF  THE  POLITICAL EXPENDITURE BY ELECTRONIC TRANS-
MISSION TO EACH SHAREHOLDER THAT HAS REQUESTED NOTICE; AND
  (2) IF THE CORPORATION MAINTAINS A WEBSITE, POST NOTICE OF  THE  POLI-
TICAL EXPENDITURE ON THE WEBSITE.
  (3) WHEN PROVIDING NOTICE PURSUANT TO SUBDIVISIONS ONE AND TWO OF THIS
PARAGRAPH,  THE  NOTICE  SHALL  STATE  THE  AMOUNT, RECIPIENT, DATE, AND
PURPOSE OF THE POLITICAL EXPENDITURE.
  (E) THE ANNUAL REPORT OF THE CORPORATION SHALL CONTAIN A LIST  OF  ALL
POLITICAL  EXPENDITURES  MADE  BY  THE  CORPORATION DURING THE REPORTING
PERIOD, INCLUDING THE AMOUNT, RECIPIENT, DATE, AND PURPOSE OF EACH POLI-
TICAL EXPENDITURE.
  (F) IF A SHAREHOLDER DISAGREES WITH A POLITICAL EXPENDITURE MADE UNDER
THIS SECTION, HE OR SHE MAY RECEIVE FROM THE CORPORATION UPON REQUEST  A
PRO RATA REBATE IN AN AMOUNT OF THE PERCENTAGE OF THE POLITICAL EXPENDI-
TURE  EQUAL  TO  THE  PERCENTAGE OF OWNERSHIP THE SHAREHOLDER HAS IN THE
CORPORATION.
  (G) IF A MAJORITY OF A CORPORATION'S SHARES ARE  OWNED  BY  THOSE  WHO
CANNOT  TAKE POLITICAL POSITIONS, INCLUDING BUT NOT LIMITED TO STATE AND
LOCAL PENSION FUNDS, MUTUAL  FUNDS,  INSURANCE  COMPANIES,  FOUNDATIONS,
CHURCHES AND UNIVERSITIES, THEN THE CORPORATION SHALL NOT MAKE POLITICAL
EXPENDITURES.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.