What's happening
This bill bans campaign contributions and political spending by foreign-influenced businesses and requires companies to certify they are not foreign-influenced.
Why it matters
Tightens the definition of "foreign-influenced" businesses. by setting low ownership thresholds (1% for a single foreign national, 5% aggregate, or direct/indirect political decision-making by any foreign national), which means many large companies with even minor foreign investment could be affected.
Imposes strong legal and financial consequences. for violations, including treating illegal contributions as a class E felony, plus civil penalties that could include both the amount contributed and an additional fine of up to $10,000 per violation.
Requires proactive certification of compliance. from business entities making political contributions or expenditures, signed under penalty of perjury by top executives, thereby increasing personal accountability and potential legal exposure for business leadership.
Expands transparency and due diligence obligations. for both donors and recipients, as campaigns must receive and presumably verify certifications, potentially deterring political entities from accepting questionable funds and increasing administrative burdens.
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Who cares
Headline styles
Ban Foreign Money in Elections
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to elections
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7578
IN SENATE
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 Assembly, 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 contribution or donation, in connection with a state or local election.
2. It shall be unlawful for a business entity prohibited under subdivision one of this section, directly or indirectly, to make a contribution 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 subdivision one of this section, directly or indirectly, to make an expenditure, independent expenditure, or disbursement for a political communication.
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, membership 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 association, 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 contribution, on the form prescribed by the state board of elections, a statement 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 subdivision 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, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
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 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.
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.