NY State Senate Bill 2019-S7578

Archive: Last Bill Status - In Senate Committee Elections Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 28, 2020	referred to elections

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2019-S7578 (ACTIVE) - Details

Current Committee:: Senate Elections
Law Section:: Election Law
Laws Affected:: Add §14-116-a, amd §§14-100 & 14-116, El L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S1126
2023-2024: S371

2019-S7578 (ACTIVE) - Summary

Enacts the democracy preservation act; prohibits contributions by foreign-influenced business entities; requires certification that contributing business entities are not a foreign-influenced business entity.

2019-S7578 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7578

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the election law, in relation to enacting the "democracy
preservation act"; and in relation to prohibiting contributions by
foreign-influenced business entities and requiring certification

 
PURPOSE:

To ban political spending by foreign-influenced business entities in New
York's state and local elections.

 
SUMMARY OF PROVISIONS:

Section one is the title.

Section two of the bill amends the election law by adding section
14-116-a to prohibit contributions by foreign-influenced business enti-
ties.

Section three of the bill amends 14-100 of the election law by adding
subdivisions 18 and 19 to define terms "foreign-influenced" and "busi-
ness entity."

Section four of the bill amends 14-116 of the election law by adding
subdivision 4 to require that business entities that make political
expenditures or contributions file with the state board of elections
certifying that they are not a foreign-influenced business entity as per
the date such expenditure or contribution was made.

 
EXISTING LAW:

 
JUSTIFICATION:

In 2010, the Supreme Court decision in Citizens United v. Federal
Election Commission gave corporations free rein in campaign spending,
which they have taken advantage of in the days since the decision. In
2018, corporations contributed over $70 million to super PACs. Last year
in Seattle, Amazon funded more than $1.5 million in independent expendi-
tures against City Council candidates who opposed the online retailer's
agenda. This lack of restriction on corporations' campaign spending
distorts our elections and interferes with our democracy.

Measures similar to this bill have been enacted on a municipal level
across the country. Seattle passed an ordinance in January 2020 to ban
foreign-influenced corporations from contributing to their local
elections. St. Petersburg, Florida, has also enacted a similar law.
This bill will effectively prohibit foreign-influenced corporations from
exerting undue influence in elections across New York State.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.
 
LOCAL FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
180 days after it becomes a law.

2019-S7578 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7578
 
                             I N  S E N A T E
 
                             January 28, 2020
                                ___________
 
 Introduced  by Sen. GIANARIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Elections
 
 AN ACT to amend the election law, in relation to enacting the "democracy
   preservation act"; and in relation  to  prohibiting  contributions  by
   foreign-influenced business entities and requiring certification

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as the  "democracy
 preservation act".
   §  2.  The election law is amended by adding a new section 14-116-a to
 read as follows:
   § 14-116-A. PROHIBITED CONTRIBUTIONS  BY  FOREIGN-INFLUENCED  BUSINESS
 ENTITIES.  1.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, IT
 SHALL BE UNLAWFUL FOR A FOREIGN-INFLUENCED BUSINESS ENTITY, DIRECTLY  OR
 INDIRECTLY,  TO  MAKE A CONTRIBUTION OR DONATION OF MONEY OR OTHER THING
 OF VALUE, OR TO MAKE AN EXPRESS OR IMPLIED PROMISE TO  MAKE  A  CONTRIB-
 UTION OR DONATION, IN CONNECTION WITH A STATE OR LOCAL ELECTION.
   2.  IT SHALL BE UNLAWFUL FOR A BUSINESS ENTITY PROHIBITED UNDER SUBDI-
 VISION ONE OF THIS SECTION, DIRECTLY OR INDIRECTLY, TO MAKE  A  CONTRIB-
 UTION  OR  DONATION  TO A CONSTITUTED COMMITTEE, INDEPENDENT EXPENDITURE
 COMMITTEE, POLITICAL COMMITTEE, OR PARTY COMMITTEE.
   3. IT SHALL BE UNLAWFUL FOR A BUSINESS ENTITY PROHIBITED UNDER  SUBDI-
 VISION  ONE OF THIS SECTION, DIRECTLY OR INDIRECTLY, TO MAKE AN EXPENDI-
 TURE, INDEPENDENT EXPENDITURE, OR DISBURSEMENT FOR A POLITICAL  COMMUNI-
 CATION.
   4.  IT SHALL BE UNLAWFUL FOR A PERSON TO KNOWINGLY SOLICIT, ACCEPT, OR
 RECEIVE A CONTRIBUTION OR DONATION DESCRIBED IN SUBDIVISION ONE, TWO  OR
 THREE OF THIS SECTION FROM A FOREIGN-INFLUENCED BUSINESS ENTITY.
   5.  ANY PERSON FOUND IN VIOLATION OF THIS SECTION SHALL BE GUILTY OF A
 CLASS E FELONY AND SHALL BE SUBJECT TO A  CIVIL  PENALTY  EQUAL  TO  THE
 CONTRIBUTION  OR  DONATION  AMOUNT  PLUS  A  FINE  OF UP TO TEN THOUSAND
 DOLLARS, TO BE RECOVERABLE IN A SPECIAL PROCEEDING OR CIVIL ACTION TO BE
 BROUGHT BY THE STATE BOARD OF ELECTIONS CHIEF ENFORCEMENT COUNSEL.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14906-02-0

 S. 7578                             2
 
   § 3. Section 14-100 of the election law is amended by adding  two  new
 subdivisions 18 and 19 to read as follows:
   18.  "FOREIGN-INFLUENCED"  SHALL  MEAN  A BUSINESS ENTITY FOR WHICH AT
 LEAST ONE OF THE FOLLOWING CONDITIONS IS MET:
   I. A SINGLE FOREIGN NATIONAL HOLDS, OWNS, CONTROLS, OR  OTHERWISE  HAS
 DIRECT  OR  INDIRECT  BENEFICIAL OWNERSHIP OF ONE PERCENT OR MORE OF THE
 TOTAL EQUITY, OUTSTANDING VOTING  SHARES,  MEMBERSHIP  UNITS,  OR  OTHER
 APPLICABLE OWNERSHIP INTERESTS OF THE BUSINESS ENTITY; OR
   II.  TWO  OR MORE FOREIGN NATIONALS, IN AGGREGATE, HOLD, OWN, CONTROL,
 OR OTHERWISE HAVE  DIRECT  OR  INDIRECT  BENEFICIAL  OWNERSHIP  OF  FIVE
 PERCENT  OR MORE OF THE TOTAL EQUITY, OUTSTANDING VOTING SHARES, MEMBER-
 SHIP UNITS, OR OTHER APPLICABLE  OWNERSHIP  INTERESTS  OF  THE  BUSINESS
 ENTITY; OR
   III.  A  FOREIGN  NATIONAL  PARTICIPATES DIRECTLY OR INDIRECTLY IN THE
 BUSINESS ENTITY'S DECISION-MAKING PROCESS WITH RESPECT TO  THE  BUSINESS
 ENTITY'S POLITICAL ACTIVITIES IN THE UNITED STATES.
   19.  "BUSINESS  ENTITY"  SHALL  MEAN  A  CORPORATION, COMPANY, LIMITED
 LIABILITY COMPANY, LIMITED PARTNERSHIP, BUSINESS TRUST, BUSINESS ASSOCI-
 ATION, JOINT-STOCK ASSOCIATION OR OTHER CORPORATE ENTITY DOING  BUSINESS
 IN THE STATE.
   §  4.  Section  14-116  of the election law is amended by adding a new
 subdivision 4 to read as follows:
   4. EVERY BUSINESS ENTITY THAT MAKES AN EXPENDITURE,  OR  CONTRIBUTION,
 FOR  POLITICAL  PURPOSES  SHALL  FILE WITH THE STATE BOARD OF ELECTIONS,
 WITHIN SEVEN BUSINESS DAYS AFTER MAKING  SUCH  EXPENDITURE  OR  CONTRIB-
 UTION,  ON THE FORM PRESCRIBED BY THE STATE BOARD OF ELECTIONS, A STATE-
 MENT OF CERTIFICATION SIGNED BY THE CHIEF EXECUTIVE  OFFICER,  PRESIDENT
 OR  OWNER UNDER PENALTY OF PERJURY, AVOWING THAT AFTER DUE INQUIRY, SUCH
 BUSINESS ENTITY WAS NOT A FOREIGN-INFLUENCED BUSINESS ENTITY ON THE DATE
 SUCH EXPENDITURE OR  CONTRIBUTION  WAS  MADE.  BUSINESS  ENTITIES  SHALL
 PROVIDE A COPY OF THE STATEMENT OF CERTIFICATION REQUIRED BY THIS SUBDI-
 VISION TO ANY CAMPAIGN TO WHICH IT CONTRIBUTES.
   § 5. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.

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Senate Bill S7578

Sponsored By

Archive: Last Bill Status - In Senate Committee Elections Committee

co-Sponsors

2019-S7578 (ACTIVE) - Details

2019-S7578 (ACTIVE) - Summary

2019-S7578 (ACTIVE) - Sponsor Memo

2019-S7578 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7578

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Sponsored By

Archive: Last Bill Status - In Senate Committee Elections Committee

co-Sponsors

2019-S7578 (ACTIVE) - Details

2019-S7578 (ACTIVE) - Summary

2019-S7578 (ACTIVE) - Sponsor Memo

2019-S7578 (ACTIVE) - Bill Text download pdf

Comments