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.