Bill Text: IA SSB1214 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill for an act relating to corporate shareholders by requiring shareholder authorization of political expenditures by corporations, requiring related shareholder statements and notices, and including penalty provisions.
Spectrum: Unknown
Status: (Introduced - Dead) 2015-02-24 - State Government: Danielson Chair,Dvorsky, and Schultz. [SSB1214 Detail]
Download: Iowa-2015-SSB1214-Introduced.html
Senate
Study
Bill
1214
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
STATE
GOVERNMENT
BILL
BY
CHAIRPERSON
DANIELSON)
A
BILL
FOR
An
Act
relating
to
corporate
shareholders
by
requiring
1
shareholder
authorization
of
political
expenditures
by
2
corporations,
requiring
related
shareholder
statements
and
3
notices,
and
including
penalty
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
1080XC
(2)
86
aw/sc
S.F.
_____
Section
1.
NEW
SECTION
.
490.1620A
Political
expenditure
1
approval
——
statements
for
shareholders.
2
1.
As
used
in
this
section,
“political
expenditure”
means
a
3
contribution,
gift,
transfer,
disbursement,
or
promise
of
money
4
or
a
thing
of
value
to
promote
or
assist
in
the
promotion
of
the
5
success
or
defeat
of
a
candidate,
political
party,
or
ballot
6
issue
in
any
state
or
federal
election.
7
2.
A
corporation
shall
not
use
any
money
or
other
property
8
of
the
corporation
in
connection
with
a
political
expenditure
9
unless
the
shareholders
of
the
corporation,
by
the
affirmative
10
vote
of
a
majority
of
all
votes
entitled
to
be
cast,
do
all
of
11
the
following:
12
a.
Authorize
in
advance
the
total
amount
of
money
or
13
property
that
may
be
used
for
all
political
expenditures
during
14
a
specified
fiscal
year
of
the
corporation.
15
b.
Direct
that
the
money
or
property
be
contributed
to
any
16
of
the
following:
17
(1)
A
specified
candidate
or
specified
candidates.
18
(2)
Candidates
of
a
specified
political
party
or
parties.
19
(3)
A
specified
political
party
or
specified
political
20
parties.
21
(4)
A
specified
committee
or
specified
committees.
22
(5)
A
specified
entity
or
specified
entities
exempt
from
23
taxation
under
section
501(c)(4)
or
(6)
of
the
Internal
Revenue
24
Code.
25
(6)
A
specified
ballot
issue
or
specified
ballot
issues.
26
3.
Shareholder
consideration
of
political
expenditures
27
shall
occur
at
an
annual
or
special
meeting
of
the
28
shareholders.
29
4.
a.
Within
forty-eight
hours
after
making
a
political
30
expenditure,
the
corporation
shall:
31
(1)
Give
notice
of
the
political
expenditure
by
electronic
32
transmission
to
each
shareholder
that
has
requested
notice.
33
(2)
If
the
corporation
maintains
an
internet
site,
post
34
notice
of
the
political
expenditure
on
the
internet
site.
35
-1-
LSB
1080XC
(2)
86
aw/sc
1/
3
S.F.
_____
b.
A
notice
provided
pursuant
to
this
subsection
shall
1
state
the
amount,
recipient,
date,
and
purpose
of
the
political
2
expenditure.
3
5.
The
corporation
shall
prepare
and
make
available
to
its
4
shareholders
an
annual
political
expenditure
statement.
The
5
annual
political
expenditure
statement
shall
list
all
political
6
expenditures
made
by
the
corporation
during
the
prior
year,
7
including
the
amount,
recipient,
date,
and
purpose
of
each
8
political
expenditure.
9
6.
Whenever
it
appears
to
the
attorney
general
that
any
10
person
has
engaged
in
any
act
or
practice
constituting
a
11
violation
of
any
provision
of
this
section,
the
attorney
12
general
may
bring
an
action
to
obtain
any
one
or
more
of
the
13
following
remedies:
14
a.
A
temporary
restraining
order.
15
b.
A
temporary
or
permanent
injunction.
16
c.
A
civil
penalty
not
exceeding
either
of
the
following:
17
(1)
For
a
violation
of
subsection
2,
three
times
the
amount
18
of
the
political
expenditure
made.
19
(2)
Five
thousand
dollars
for
any
other
violation
of
this
20
section.
21
d.
A
declaratory
judgment.
22
e.
Recision.
23
f.
Restitution.
24
g.
Any
other
appropriate
relief.
25
Sec.
2.
EFFECTIVE
DATE.
This
Act
takes
effect
October
1,
26
2015.
27
EXPLANATION
28
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
29
the
explanation’s
substance
by
the
members
of
the
general
assembly.
30
This
bill
relates
to
corporate
shareholders
by
requiring
31
shareholder
authorization
of
political
expenditures
by
32
corporations,
by
requiring
corporations
to
provide
to
33
shareholders
statements
and
notices
relating
to
political
34
expenditures,
and
including
penalty
provisions.
35
-2-
LSB
1080XC
(2)
86
aw/sc
2/
3
S.F.
_____
The
bill
prohibits
a
corporation
from
using
any
money
1
or
other
property
of
the
corporation
in
connection
with
a
2
political
expenditure,
as
defined
in
the
bill,
unless
the
3
stockholders
have
authorized
in
advance
the
amount
of
money
4
or
property
to
be
used
and
have
directed
that
the
money
5
or
property
be
used
for
specified
purposes.
The
bill
also
6
requires
notices
and
reporting
about
corporate
political
7
expenditures
and
authorizes
the
attorney
general
to
bring
a
8
civil
action
to
obtain
specified
remedies
for
a
violation
of
9
the
bill.
10
The
bill
takes
effect
October
1,
2015.
11
-3-
LSB
1080XC
(2)
86
aw/sc
3/
3