Bill Text: NY A10661 | 2011-2012 | General Assembly | Introduced
Bill Title: Enacts the "2012 corporate political expenditure disclosure act".
Sponsorship: Partisan Bill (Democrat 15)
Status: (Introduced - Dead) 2012-06-13 - referred to election law [A10661 Detail]
Download: New_York-2011-A10661-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
10661
I N A S S E M B L Y
June 13, 2012
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Brennan) --
read once and referred to the Committee on Election Law
AN ACT to amend the election law, in relation to enacting the "2012
corporate political expenditure disclosure act"
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "2012 corporate political expenditure disclosure act".
3 S 2. The election law is amended by adding a new section 14-132 to
4 read as follows:
5 S 14-132. CONTRIBUTIONS AND INDEPENDENT EXPENDITURES BY CORPORATIONS.
6 1. APPLICATION. THIS SECTION APPLIES TO EVERY DOMESTIC CORPORATION AND
7 TO EVERY FOREIGN CORPORATION WHICH IS AUTHORIZED OR DOES BUSINESS IN
8 THIS STATE, INCLUDING BUT NOT LIMITED TO, CORPORATIONS FORMED UNDER THE
9 BANKING LAW, BUSINESS CORPORATION LAW, COOPERATIVE CORPORATIONS LAW,
10 INSURANCE LAW, LIMITED LIABILITY COMPANY LAW, RAILROAD LAW AND TRANSPOR-
11 TATION CORPORATIONS LAW.
12 2. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE TERMS:
13 (A) "CONTRIBUTION" SHALL MEAN ANY PAYMENT, GIFT, SUBSCRIPTION,
14 OUTSTANDING LOAN, ADVANCE, OR DEPOSIT OF MONEY OR ANYTHING OF VALUE MADE
15 IN CONNECTION WITH THE NOMINATION FOR ELECTION, OR ELECTION, OF ANY
16 CANDIDATE, OR MADE TO PROMOTE THE SUCCESS OR DEFEAT OF A POLITICAL PARTY
17 OR PRINCIPLE, OR OF ANY BALLOT PROPOSAL.
18 (B) "INDEPENDENT EXPENDITURE" MEANS ANY PAYMENT OR EXPENDITURE MADE IN
19 CONNECTION WITH THE NOMINATION FOR ELECTION, OR ELECTION, OF ANY CANDI-
20 DATE, OR MADE TO PROMOTE THE SUCCESS OR DEFEAT OF A POLITICAL PARTY OR
21 PRINCIPLE, OR OF ANY BALLOT PROPOSAL THAT IS NOT MADE WITH THE AUTHORI-
22 ZATION, CONSENT, REQUEST, SUGGESTION OR COOPERATION OF A CANDIDATE, THE
23 CANDIDATE'S POLITICAL COMMITTEE OR ITS AGENTS, OR OF A POLITICAL COMMIT-
24 TEE SUPPORTING OR OPPOSING A MEASURE. SUCH TERM SHALL INCLUDE ANY
25 PAYMENT OR EXPENDITURE MADE:
26 (I) FOR AN ELECTIONEERING COMMUNICATION OR ANY COMMUNICATION TO THE
27 GENERAL PUBLIC INTENDED TO ENCOURAGE THE PUBLIC TO CONTACT A GOVERNMENT
28 OFFICIAL, CANDIDATE FOR PUBLIC OR PARTY OFFICE OR POLITICAL PARTY
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15945-02-2
A. 10661 2
1 REGARDING PENDING LEGISLATION, PUBLIC POLICY OR A GOVERNMENT RULE OR
2 REGULATION;
3 (II) TO SUPPORT OR OPPOSE THE ADVANCEMENT OF ANY POLITICAL QUESTION
4 WITHOUT CONNECTION TO ANY VOTE; AND
5 (III) TO INFLUENCE LEGISLATION THROUGH AN ATTEMPT TO CHANGE THE OPIN-
6 ION OF THE GENERAL PUBLIC.
7 INDEPENDENT EXPENDITURE SHALL NOT INCLUDE: (A) A COMMUNICATION APPEAR-
8 ING IN A WRITTEN NEWS STORY, COMMENTARY OR EDITORIAL, OR DISTRIBUTED
9 THROUGH THE FACILITIES OF ANY BROADCASTING STATION, CABLE OR SATELLITE
10 UNLESS SUCH PUBLICATION OR FACILITIES ARE OWNED OR CONTROLLED BY ANY
11 POLITICAL PARTY, POLITICAL COMMITTEE OR CANDIDATE; OR (B) A COMMUNI-
12 CATION THAT CONSTITUTES A CANDIDATE DEBATE OR FORUM.
13 3. SHAREHOLDER APPROVAL. (A) NOTWITHSTANDING ANY OTHER PROVISION OF
14 LAW TO THE CONTRARY, NO CORPORATION SHALL ENGAGE IN THE ACTIVITIES
15 DESCRIBED IN THIS PARAGRAPH UNLESS IT DISCLOSES TO EACH SHAREHOLDER OR
16 MEMBER THE TOTAL AMOUNT TO BE SPENT ON, AND THE NATURE OF, EACH SUCH
17 ACTIVITY; AND A MAJORITY VOTE OF ITS SHAREHOLDERS OR MEMBERS AFFIRMA-
18 TIVELY CONSENT TO SUCH ACTIVITY AT THE ANNUAL MEETING. EXCEPT AS OTHER-
19 WISE PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, ANY SUCH CONSENT
20 SHALL APPLY ONLY TO THOSE ACTIVITIES THAT WILL OCCUR OR TO BE UNDERTAKEN
21 IN THE ONE YEAR PERIOD FOLLOWING THE DATE OF THE ANNUAL MEETING IN WHICH
22 THE CONSENT WAS OBTAINED. FOR THE PURPOSES OF THIS SECTION, A CORPO-
23 RATION MAKES A CONTRIBUTION, EXPENDITURE OR PAYMENT IF THE CONTRIBUTION,
24 EXPENDITURE OR PAYMENT IS FUNDED THROUGH ITS GENERAL CORPORATE TREASURY,
25 A SEPARATE SEGREGATED FUND OR ANY OTHER ENTITY OR ACCOUNT ESTABLISHED
26 AND CONTROLLED BY THE CORPORATION.
27 (I) MAKES ANY CONTRIBUTIONS;
28 (II) MAKES ANY INDEPENDENT EXPENDITURES;
29 (III) MAKES ANY PAYMENTS THAT EXCEED AN ANNUAL TOTAL OF FIVE HUNDRED
30 DOLLARS TO ANY CORPORATION, ORGANIZATION OR ENTITY THAT IS FORMED OR
31 MAINTAINED FOR POLITICAL PURPOSES, OR THAT SPENDS OR USES TWENTY-FIVE
32 PERCENT OR MORE OF ITS REVENUE FOR POLITICAL PURPOSES, INCLUDING MAKING
33 CONTRIBUTIONS AND INDEPENDENT EXPENDITURES;
34 (IV) ESTABLISHES OR FORMS A POLITICAL COMMITTEE, AS DEFINED IN SUBDI-
35 VISION ONE OF SECTION 14-100 OF THIS ARTICLE. FOR THE PURPOSES OF THIS
36 SUBPARAGRAPH AND SUBPARAGRAPH (V) OF THIS PARAGRAPH, THE TERM "ESTAB-
37 LISHES OR FORMS" SHALL MEAN ANY POLITICAL COMMITTEE FOR WHICH THE CORPO-
38 RATION PAYS, OR PROVIDES IN-KIND SERVICES THE VALUE OF WHICH EQUAL AT
39 LEAST TWENTY-FIVE PERCENT OF THE COSTS AND EXPENSES OF ITS ESTABLISHMENT
40 OR FORMATION; OR PAYS OR CONTRIBUTES AT LEAST TWENTY-FIVE PERCENT OF ITS
41 ANNUAL REVENUE OR PROVIDES IN-KIND SERVICES THE VALUE OF WHICH EXCEED
42 TEN THOUSAND DOLLARS, AFTER ITS ESTABLISHMENT OR FORMATION; AND
43 (V) CONTINUES AND MAINTAINS THE EXISTENCE AND OPERATION OF A POLITICAL
44 COMMITTEE THAT WAS ESTABLISHED OR FORMED BY THE CORPORATION PRIOR TO THE
45 EFFECTIVE DATE OF THIS PARAGRAPH.
46 (B) A CORPORATION MAY SEEK SPECIAL AUTHORITY OF ITS SHAREHOLDERS OR
47 MEMBERS, PURSUANT TO A SPECIAL MEETING, TO INCREASE FUNDING ABOVE THE
48 AMOUNT THAT WAS CONSENTED TO BY THE SHAREHOLDERS OR MEMBERS FOR ONE OR
49 MORE OF THE ACTIVITIES DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION.
50 ANY SUCH INCREASE IN FUNDING SHALL REQUIRE THE SEPARATE APPROVAL OF A
51 MAJORITY OF ITS SHAREHOLDERS OR MEMBERS.
52 (C) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO ALLOW OR AUTHORIZE A
53 CORPORATION TO MAKE CONTRIBUTIONS, INDEPENDENT EXPENDITURES OR OTHER
54 PAYMENTS IN AN AMOUNT THAT EXCEEDS THE MONETARY LIMITS ESTABLISHED IN
55 LAW.
A. 10661 3
1 4. REPORTING REQUIREMENTS. (A) ANY CORPORATION, EITHER BY ITSELF OR
2 THROUGH ITS SUBSIDIARIES, THAT ENGAGES IN ONE OR MORE OF THE ACTIVITIES
3 DESCRIBED IN PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION SHALL
4 DISCLOSE TO ITS SHAREHOLDERS OR MEMBERS AND FILE WITH THE SECRETARY OF
5 STATE AN ACCOUNTING OF THE CONTRIBUTIONS, INDEPENDENT EXPENDITURES AND
6 PAYMENTS MADE IN THE PRIOR CALENDAR YEAR, INCLUDING:
7 (I) THE DATE AND THE AMOUNT OF EACH CONTRIBUTION, INDEPENDENT EXPENDI-
8 TURE OR PAYMENT MADE BY THE CORPORATION OR ITS SUBSIDIARY;
9 (II) THE IDENTITY OF THE RECIPIENT OF EACH CONTRIBUTION, INDEPENDENT
10 EXPENDITURE OR PAYMENT; AND WITH RESPECT TO AN INDEPENDENT EXPENDITURE,
11 THE IDENTITY OF THE CANDIDATE, REFERENDUM, POLITICAL PARTY, PENDING
12 LEGISLATION, PUBLIC POLICY OR A GOVERNMENT RULE OR REGULATION SUPPORTED
13 OR OPPOSED;
14 (III) THE IDENTITY OF THE RECIPIENT OF ANY PAYMENTS MADE PURSUANT TO
15 SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION THREE OF THIS
16 SECTION;
17 (IV) IF THE CORPORATION FORMED OR MAINTAINS A POLITICAL COMMITTEE, THE
18 DATE THE POLITICAL COMMITTEE WAS ESTABLISHED OR FORMED AND ITS PURPOSE;
19 (V) THE TOTAL AMOUNT OF FUNDS THAT THE CORPORATION CONTRIBUTED OR PAID
20 OR PLANS TO PAY TO THE POLITICAL COMMITTEE FORMED OR MAINTAINED BY THE
21 CORPORATION; AND
22 (VI) THE IDENTITY OF ANY RECIPIENTS AND THE AMOUNTS OF ANY PAYMENTS OR
23 CONTRIBUTIONS MADE BY THE POLITICAL COMMITTEE FORMED OR MAINTAINED BY
24 THE CORPORATION.
25 (B) ANY SUCH CORPORATION SHALL BE REQUIRED TO DISCLOSE TO ITS SHARE-
26 HOLDERS OR MEMBERS AND FILE WITH THE SECRETARY OF STATE SUCH ACCOUNTING
27 ANNUALLY, QUARTERLY AND TEN DAYS PRIOR TO ANY ELECTION DEFINED IN SUBDI-
28 VISION ELEVEN OF SECTION 14-100 OF THIS ARTICLE. THE SECRETARY OF STATE
29 SHALL ESTABLISH THE DATE FOR THE FILING OF THE ANNUAL AND QUARTERLY
30 REPORTS. THE CORPORATION SHALL POST A COPY OF ANY REPORT OR OTHER
31 INFORMATION FILED PURSUANT TO THIS PARAGRAPH ON ITS CORPORATE WEBSITE
32 WITHIN TWENTY-FOUR HOURS OF SUCH FILING.
33 (C) THE SECRETARY OF STATE SHALL POST A CORPORATION'S DISCLOSURES ON
34 THE WEBSITE MAINTAINED BY THE SECRETARY OF STATE.
35 5. PENALTIES. (A) ANY CORPORATION THAT KNOWINGLY OR INTENTIONALLY
36 VIOLATES THIS SECTION SHALL BE SUBJECT TO A FINE OF NOT MORE THAN ONE
37 HUNDRED THOUSAND DOLLARS.
38 (B) ANY DIRECTOR, OFFICER OR SENIOR MANAGER OF THE CORPORATION WHO
39 AUTHORIZES OR MAKES ANY CONTRIBUTIONS, INDEPENDENT EXPENDITURES OR
40 PAYMENTS IN VIOLATION OF THIS SECTION SHALL BE SUBJECT TO A FINE EQUAL
41 TO THREE TIMES THE AMOUNT OF THE CONTRIBUTION, EXPENDITURE OR PAYMENT.
42 NO CORPORATION MAY REIMBURSE A DIRECTOR, OFFICER OR MANAGER FOR ANY
43 FINES IMPOSED OR INCURRED BY SUCH INDIVIDUAL PURSUANT TO THIS PARAGRAPH.
44 (C) ANY CORPORATION THAT FAILS TO FILE A REPORT REQUIRED PURSUANT TO
45 SUBDIVISION FOUR OF THIS SECTION SHALL BE SUBJECT TO A FINE OF TEN THOU-
46 SAND DOLLARS PER DAY.
47 (D) THE ATTORNEY GENERAL MAY COMMENCE AN ACTION OR SPECIAL PROCEEDING
48 TO ENFORCE THE PROVISIONS OF THIS SECTION.
49 S 3. Severability. If any clause, sentence, paragraph, section or
50 part of this act shall be adjudged by any court of competent jurisdic-
51 tion to be invalid, the judgment shall not affect, impair, or invalidate
52 the remainder thereof, but shall be confined in its operation to the
53 clause, sentence, paragraph, section or part thereof directly involved
54 in the controversy in which the judgment shall have been rendered.
55 S 4. This act shall take effect immediately.
