S T A T E O F N E W Y O R K
________________________________________________________________________
3850
2015-2016 Regular Sessions
I N A S S E M B L Y
January 27, 2015
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Introduced by M. of A. BRENNAN, DINOWITZ, MAYER -- Multi-Sponsored by --
M. of A. ABINANTI, GLICK, GOTTFRIED, LAVINE, LENTOL, LIFTON, PAULIN,
ROSENTHAL, SCHIMEL, THIELE -- read once and referred to the Committee
on Election Law
AN ACT to amend the election law, in relation to enacting the "2015
corporate political expenditure disclosure act"
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "2015 corporate political expenditure disclosure act".
S 2. The election law is amended by adding a new section 14-132 to
read as follows:
S 14-132. CONTRIBUTIONS AND INDEPENDENT EXPENDITURES BY CORPORATIONS.
1. APPLICATION. THIS SECTION APPLIES TO EVERY DOMESTIC CORPORATION AND
TO EVERY FOREIGN CORPORATION WHICH IS AUTHORIZED OR DOES BUSINESS IN
THIS STATE, INCLUDING BUT NOT LIMITED TO, CORPORATIONS FORMED UNDER THE
BANKING LAW, BUSINESS CORPORATION LAW, COOPERATIVE CORPORATIONS LAW,
INSURANCE LAW, LIMITED LIABILITY COMPANY LAW, RAILROAD LAW AND TRANSPOR-
TATION CORPORATIONS LAW.
2. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE TERMS:
(A) "CONTRIBUTION" SHALL MEAN ANY PAYMENT, GIFT, SUBSCRIPTION,
OUTSTANDING LOAN, ADVANCE, OR DEPOSIT OF MONEY OR ANYTHING OF VALUE MADE
IN CONNECTION WITH THE NOMINATION FOR ELECTION, OR ELECTION, OF ANY
CANDIDATE, OR MADE TO PROMOTE THE SUCCESS OR DEFEAT OF A POLITICAL PARTY
OR PRINCIPLE, OR OF ANY BALLOT PROPOSAL.
(B) "INDEPENDENT EXPENDITURE" MEANS ANY PAYMENT OR EXPENDITURE MADE IN
CONNECTION WITH THE NOMINATION FOR ELECTION, OR ELECTION, OF ANY CANDI-
DATE, OR MADE TO PROMOTE THE SUCCESS OR DEFEAT OF A POLITICAL PARTY OR
PRINCIPLE, OR OF ANY BALLOT PROPOSAL THAT IS NOT MADE WITH THE AUTHORI-
ZATION, CONSENT, REQUEST, SUGGESTION OR COOPERATION OF A CANDIDATE, THE
CANDIDATE'S POLITICAL COMMITTEE OR ITS AGENTS, OR OF A POLITICAL COMMIT-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01338-01-5
A. 3850 2
TEE SUPPORTING OR OPPOSING A MEASURE. SUCH TERM SHALL INCLUDE ANY
PAYMENT OR EXPENDITURE MADE:
(I) FOR AN ELECTIONEERING COMMUNICATION OR ANY COMMUNICATION TO THE
GENERAL PUBLIC INTENDED TO ENCOURAGE THE PUBLIC TO CONTACT A GOVERNMENT
OFFICIAL, CANDIDATE FOR PUBLIC OR PARTY OFFICE OR POLITICAL PARTY
REGARDING PENDING LEGISLATION, PUBLIC POLICY OR A GOVERNMENT RULE OR
REGULATION;
(II) TO SUPPORT OR OPPOSE THE ADVANCEMENT OF ANY POLITICAL QUESTION
WITHOUT CONNECTION TO ANY VOTE; AND
(III) TO INFLUENCE LEGISLATION THROUGH AN ATTEMPT TO CHANGE THE OPIN-
ION OF THE GENERAL PUBLIC.
INDEPENDENT EXPENDITURE SHALL NOT INCLUDE: (A) A COMMUNICATION APPEAR-
ING IN A WRITTEN NEWS STORY, COMMENTARY OR EDITORIAL, OR DISTRIBUTED
THROUGH THE FACILITIES OF ANY BROADCASTING STATION, CABLE OR SATELLITE
UNLESS SUCH PUBLICATION OR FACILITIES ARE OWNED OR CONTROLLED BY ANY
POLITICAL PARTY, POLITICAL COMMITTEE OR CANDIDATE; OR (B) A COMMUNI-
CATION THAT CONSTITUTES A CANDIDATE DEBATE OR FORUM.
3. SHAREHOLDER APPROVAL. (A) NOTWITHSTANDING ANY OTHER PROVISION OF
LAW TO THE CONTRARY, NO CORPORATION SHALL ENGAGE IN THE ACTIVITIES
DESCRIBED IN THIS PARAGRAPH UNLESS IT DISCLOSES TO EACH SHAREHOLDER OR
MEMBER THE TOTAL AMOUNT TO BE SPENT ON, AND THE NATURE OF, EACH SUCH
ACTIVITY; AND A MAJORITY VOTE OF ITS SHAREHOLDERS OR MEMBERS AFFIRMA-
TIVELY CONSENT TO SUCH ACTIVITY AT THE ANNUAL MEETING. EXCEPT AS OTHER-
WISE PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, ANY SUCH CONSENT
SHALL APPLY ONLY TO THOSE ACTIVITIES THAT WILL OCCUR OR TO BE UNDERTAKEN
IN THE ONE YEAR PERIOD FOLLOWING THE DATE OF THE ANNUAL MEETING IN WHICH
THE CONSENT WAS OBTAINED. FOR THE PURPOSES OF THIS SECTION, A CORPO-
RATION MAKES A CONTRIBUTION, EXPENDITURE OR PAYMENT IF THE CONTRIBUTION,
EXPENDITURE OR PAYMENT IS FUNDED THROUGH ITS GENERAL CORPORATE TREASURY,
A SEPARATE SEGREGATED FUND OR ANY OTHER ENTITY OR ACCOUNT ESTABLISHED
AND CONTROLLED BY THE CORPORATION.
(I) MAKES ANY CONTRIBUTIONS;
(II) MAKES ANY INDEPENDENT EXPENDITURES;
(III) MAKES ANY PAYMENTS THAT EXCEED AN ANNUAL TOTAL OF FIVE HUNDRED
DOLLARS TO ANY CORPORATION, ORGANIZATION OR ENTITY THAT IS FORMED OR
MAINTAINED FOR POLITICAL PURPOSES, OR THAT SPENDS OR USES TWENTY-FIVE
PERCENT OR MORE OF ITS REVENUE FOR POLITICAL PURPOSES, INCLUDING MAKING
CONTRIBUTIONS AND INDEPENDENT EXPENDITURES;
(IV) ESTABLISHES OR FORMS A POLITICAL COMMITTEE, AS DEFINED IN SUBDI-
VISION ONE OF SECTION 14-100 OF THIS ARTICLE. FOR THE PURPOSES OF THIS
SUBPARAGRAPH AND SUBPARAGRAPH (V) OF THIS PARAGRAPH, THE TERM "ESTAB-
LISHES OR FORMS" SHALL MEAN ANY POLITICAL COMMITTEE FOR WHICH THE CORPO-
RATION PAYS, OR PROVIDES IN-KIND SERVICES THE VALUE OF WHICH EQUAL AT
LEAST TWENTY-FIVE PERCENT OF THE COSTS AND EXPENSES OF ITS ESTABLISHMENT
OR FORMATION; OR PAYS OR CONTRIBUTES AT LEAST TWENTY-FIVE PERCENT OF ITS
ANNUAL REVENUE OR PROVIDES IN-KIND SERVICES THE VALUE OF WHICH EXCEED
TEN THOUSAND DOLLARS, AFTER ITS ESTABLISHMENT OR FORMATION; AND
(V) CONTINUES AND MAINTAINS THE EXISTENCE AND OPERATION OF A POLITICAL
COMMITTEE THAT WAS ESTABLISHED OR FORMED BY THE CORPORATION PRIOR TO THE
EFFECTIVE DATE OF THIS PARAGRAPH.
(B) A CORPORATION MAY SEEK SPECIAL AUTHORITY OF ITS SHAREHOLDERS OR
MEMBERS, PURSUANT TO A SPECIAL MEETING, TO INCREASE FUNDING ABOVE THE
AMOUNT THAT WAS CONSENTED TO BY THE SHAREHOLDERS OR MEMBERS FOR ONE OR
MORE OF THE ACTIVITIES DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION.
ANY SUCH INCREASE IN FUNDING SHALL REQUIRE THE SEPARATE APPROVAL OF A
MAJORITY OF ITS SHAREHOLDERS OR MEMBERS.
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(C) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO ALLOW OR AUTHORIZE A
CORPORATION TO MAKE CONTRIBUTIONS, INDEPENDENT EXPENDITURES OR OTHER
PAYMENTS IN AN AMOUNT THAT EXCEEDS THE MONETARY LIMITS ESTABLISHED IN
LAW.
4. REPORTING REQUIREMENTS. (A) ANY CORPORATION, EITHER BY ITSELF OR
THROUGH ITS SUBSIDIARIES, THAT ENGAGES IN ONE OR MORE OF THE ACTIVITIES
DESCRIBED IN PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION SHALL
DISCLOSE TO ITS SHAREHOLDERS OR MEMBERS AND FILE WITH THE SECRETARY OF
STATE AN ACCOUNTING OF THE CONTRIBUTIONS, INDEPENDENT EXPENDITURES AND
PAYMENTS MADE IN THE PRIOR CALENDAR YEAR, INCLUDING:
(I) THE DATE AND THE AMOUNT OF EACH CONTRIBUTION, INDEPENDENT EXPENDI-
TURE OR PAYMENT MADE BY THE CORPORATION OR ITS SUBSIDIARY;
(II) THE IDENTITY OF THE RECIPIENT OF EACH CONTRIBUTION, INDEPENDENT
EXPENDITURE OR PAYMENT; AND WITH RESPECT TO AN INDEPENDENT EXPENDITURE,
THE IDENTITY OF THE CANDIDATE, REFERENDUM, POLITICAL PARTY, PENDING
LEGISLATION, PUBLIC POLICY OR A GOVERNMENT RULE OR REGULATION SUPPORTED
OR OPPOSED;
(III) THE IDENTITY OF THE RECIPIENT OF ANY PAYMENTS MADE PURSUANT TO
SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION THREE OF THIS
SECTION;
(IV) IF THE CORPORATION FORMED OR MAINTAINS A POLITICAL COMMITTEE, THE
DATE THE POLITICAL COMMITTEE WAS ESTABLISHED OR FORMED AND ITS PURPOSE;
(V) THE TOTAL AMOUNT OF FUNDS THAT THE CORPORATION CONTRIBUTED OR PAID
OR PLANS TO PAY TO THE POLITICAL COMMITTEE FORMED OR MAINTAINED BY THE
CORPORATION; AND
(VI) THE IDENTITY OF ANY RECIPIENTS AND THE AMOUNTS OF ANY PAYMENTS OR
CONTRIBUTIONS MADE BY THE POLITICAL COMMITTEE FORMED OR MAINTAINED BY
THE CORPORATION.
(B) ANY SUCH CORPORATION SHALL BE REQUIRED TO DISCLOSE TO ITS SHARE-
HOLDERS OR MEMBERS AND FILE WITH THE SECRETARY OF STATE SUCH ACCOUNTING
ANNUALLY, QUARTERLY AND TEN DAYS PRIOR TO ANY ELECTION DEFINED IN SUBDI-
VISION ELEVEN OF SECTION 14-100 OF THIS ARTICLE. THE SECRETARY OF STATE
SHALL ESTABLISH THE DATE FOR THE FILING OF THE ANNUAL AND QUARTERLY
REPORTS. THE CORPORATION SHALL POST A COPY OF ANY REPORT OR OTHER
INFORMATION FILED PURSUANT TO THIS PARAGRAPH ON ITS CORPORATE WEBSITE
WITHIN TWENTY-FOUR HOURS OF SUCH FILING.
(C) THE SECRETARY OF STATE SHALL POST A CORPORATION'S DISCLOSURES ON
THE WEBSITE MAINTAINED BY THE SECRETARY OF STATE.
5. PENALTIES. (A) ANY CORPORATION THAT KNOWINGLY OR INTENTIONALLY
VIOLATES THIS SECTION SHALL BE SUBJECT TO A FINE OF NOT MORE THAN ONE
HUNDRED THOUSAND DOLLARS.
(B) ANY DIRECTOR, OFFICER OR SENIOR MANAGER OF THE CORPORATION WHO
AUTHORIZES OR MAKES ANY CONTRIBUTIONS, INDEPENDENT EXPENDITURES OR
PAYMENTS IN VIOLATION OF THIS SECTION SHALL BE SUBJECT TO A FINE EQUAL
TO THREE TIMES THE AMOUNT OF THE CONTRIBUTION, EXPENDITURE OR PAYMENT.
NO CORPORATION MAY REIMBURSE A DIRECTOR, OFFICER OR MANAGER FOR ANY
FINES IMPOSED OR INCURRED BY SUCH INDIVIDUAL PURSUANT TO THIS PARAGRAPH.
(C) ANY CORPORATION THAT FAILS TO FILE A REPORT REQUIRED PURSUANT TO
SUBDIVISION FOUR OF THIS SECTION SHALL BE SUBJECT TO A FINE OF TEN THOU-
SAND DOLLARS PER DAY.
(D) THE ATTORNEY GENERAL MAY COMMENCE AN ACTION OR SPECIAL PROCEEDING
TO ENFORCE THE PROVISIONS OF THIS SECTION.
S 3. Severability. If any clause, sentence, paragraph, section or
part of this act shall be adjudged by any court of competent jurisdic-
tion to be invalid, the judgment shall not affect, impair, or invalidate
the remainder thereof, but shall be confined in its operation to the
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clause, sentence, paragraph, section or part thereof directly involved
in the controversy in which the judgment shall have been rendered.
S 4. This act shall take effect immediately.