Enacts the "corporate political activity accountability to shareholders act"

1 Co-sponsor

• Joseph P. Addabbo Jr.

Title of bill

An act to amend the business corporation law, the cooperative corporations law, the not-for-profit corporation law, the railroad law, the transportation corporations law, the banking law and the limited liability company law, in relation to enacting the "corporate political activity accountability to shareholders act"

Purpose

The purpose of this bill is to empower shareholders to make decisions about core corporate political activity.

Summary of provisions

Section 1 titles the act as the "Corporate Political Activity Accountability to Shareholders Act".

Sections 2 through 11 requires that corporations formed under the business corporation law, the cooperative corporation law, the not-for-profit law, the railroad law, the transportation corporations law, the banking law, and the limited liability company law (1) at least annually obtain prior authorization of a majority of voting shares before making any corporate political donations in New York, up to a total annual aggregate amount approved by the shareholders, and (2) disclose to its shareholders and file with the secretary of state an accounting of all such corporate donations, including the identity of the candidates' committees and initiatives funded and the business rationale for such contributions. Sections 2 through 11 also provide the attorney general with the authority to enforce the provisions of each section.

Section 12 contains a severability clause.

Section 13 provides that this at shall take effect on the first of August next succeeding the date on which it shall have become a law.

Justification

This bill responds to the supreme Court's decision in Citizen's United v. Federal Election Commission to effectively eliminate restrictions on corporations' ability to expend corporate resources in support or opposition to political candidates, political parties and ballot referendums. Specifically, this bill gives shareholders the necessary tools to ensure that the expenditure of corporate resources toward political activity serves the objectives for which the corporation was formed, is consistent with the corporation's business interests, and enhances rather than diminishes shareholder value.

Legislative history

2014: S177/A7287- CONSIDERED BY CORPORATIONS, AUTHORITIES, AND COMMISSIONS 2013: S177/A7287- CONSIDERED BY CORPORATIONS, AUTHORITIES, AND COMMISSIONS 2012: S101/A696- COMMITTEE DISCHARGED AND COMMITTED TO RULES 2011: S101/A696- REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS 2010: S.7083/A.9948- REPORTED AND COMMITTED TO FINANCE

Fiscal implications

None to the state.

EFFECTIVE; DATE :

This act shall take effect on the first of August next succeeding the date on which it shall have become a law.