What's happening
This bill restricts corporate political spending, requiring shareholder approval, public disclosure, and rebates for dissenting shareholders.
Why it matters
Shifts corporate political spending decisions to shareholders. By requiring majority shareholder approval before any political spending, the bill gives investors—not just executives—direct control over whether and how their money is used politically, potentially limiting corporate influence on elections.
Increases transparency and public awareness. Mandating rapid (48-hour) disclosure of political expenditures on company websites makes it easier for the public, media, and investors to track corporate involvement in politics in near real-time.
Protects the interests of institutional investors and dissenting shareholders. By barring political spending if most shares are held by institutions unable to take political stances (like pension funds), and allowing individual shareholders to claim rebates if they disagree with such spending, the bill seeks to prevent forced association and misuse of shareholder funds for political causes they may not support.
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Who cares
Headline styles
Limit Corporate Political Donations
Plain English, a few words. Used as the page title.
Sponsors
History
- Enacting clause stricken
- Referred to election law
- Referred to election law
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Restrict Corporate Political Spending
In Senate Committee · Elections · Sponsor James Sanders Jr.
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3993
2017-2018 Regular Sessions
IN ASSEMBLY
January 30, 2017
Introduced by M. of A. SEPULVEDA, THIELE, JAFFEE, MOSLEY, ABINANTI -read once and referred to the Committee on Election Law
AN ACT to amend the election law, in relation to corporate political contributions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 14-116 of the election law is amended by adding four new paragraphs (a), (b), (c) and (d) to read as follows:
(a) Corporations shall not spend any resources on political campaigns and candidates without showing a prior majority vote of shareholders authorizing political spending by management and expressing the partisan political preferences of the shareholders.
(b) All corporate political expenditures or contributions must be posted on the company website within forty-eight hours.
(c) If a majority of a company's shares are owned by large institutional investors that cannot take political positions, the corporation shall not make political expenditures or contributions.
(d) Shareholders have the right to request a pro rata rebate for the portion of their investments spent by the corporation on any political expenditures and contributions they disagree with.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02245-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.