S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7050
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 29, 2017
                                ___________
 
 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:
 § 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.
                                                            LBD01289-01-7
              

 A. 7050                             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.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.