What's happening
This bill requires New York corporations to get shareholder approval for political spending, publicly disclose expenditures, and offer rebates to dissenting shareholders.
Why it matters
Strengthens shareholder control over corporate political activity. By requiring majority shareholder approval before any political spending, the bill gives investors direct influence over whether and how corporate funds are used for political purposes—potentially limiting management’s discretion to act on political issues without owner consent.
Mandates rapid and public transparency. The requirement to post all political expenditures or contributions on the company website within 48 hours introduces real-time accountability, making it easier for the public, media, and regulators to track and scrutinize corporate political influence.
Limits influence of non-political institutional investors. The bill recognizes that many large institutional investors (like pension funds or index funds) are legally or practically unable to take political positions; if they collectively own a majority, the corporation is barred from making political contributions, potentially reducing overall corporate money in politics.
Empowers dissenting shareholders financially. By letting shareholders claim a proportional rebate if they disagree with corporate political spending, the bill introduces a novel way for investors to “opt out” of supporting political activities they oppose, giving individual investors more agency and reducing compelled association with political causes.
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Who cares
Headline styles
Limit Corporate Political Donations
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to elections
- Referred to elections
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1459
2019-2020 Regular Sessions
IN SENATE
January 15, 2019
Introduced by Sens. SANDERS, SEPULVEDA -- 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 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.
LBD06207-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the election law, in relation to corporate political contributions
Purpose
To ensure political expenditures and contributions of corporations reflect the desires of shareholders, and to provide transparency and accountability.
Summary of provisions
Section 1 amends subdivision 2 of section 14-116 of the election law by adding four new paragraphs (a), (b), (c) and (d) providing:
(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 48 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.
Section 2 provides this act shall take effect immediately.
Existing law
Corporations can spend their resources to influence election outcomes.
Justification
Unchecked, the principle of corporate personhood poses an existential threat to our democracy. Corporations can effectively squeeze ordinary people out of the political process. It is therefore imperative to ensure, at the minimum, that corporate expenditures and contributions reflect the desires of shareholders, i.e., the actual people who comprise a corporation. Corporations should be subjected to at least the same level of regulation as labor unions.
Legislative history
03/23/16 Referred to Elections
Fiscal implications
None
Local fiscal implications
None
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.