Bill Text: NY S07027 | 2015-2016 | General Assembly | Introduced

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Bill Title: Requires shareholders to approve corporate political expenditures.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-03-17 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S07027 Detail]

Download: New_York-2015-S07027-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          7027
                    IN SENATE
                                     March 17, 2016
                                       ___________
        Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and Commissions
        AN  ACT  to amend the business corporation law, in relation to requiring
          shareholders to approve corporate political expenditures
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  The  business  corporation law is amended by adding a new
     2  section 631 to read as follows:
     3  § 631. Shareholder approval of political expenditures.
     4    (a) "Political expenditure" shall mean a contribution, gift, transfer,
     5  disbursement, or promise of money or a thing  of  value  to  promote  or
     6  assist  in  the promotion of the success or defeat of a candidate, poli-
     7  tical party, or question in any state or federal election.
     8    (b) A corporation may not use any  money  or  other  property  of  the
     9  corporation in connection with a political expenditure unless the share-
    10  holders of the corporation, by the affirmative vote of a majority of all
    11  votes entitled to be cast, have:
    12    (1)  Authorized  in advance the total amount of money or property that
    13  may be used for all political expenditures during a specific fiscal year
    14  of the corporation; and
    15    (2) Directed that the money or property can be used for:
    16    A. A specified candidate or candidates;
    17    B. Candidates of a specified political party or parties;
    18    C. A specified political party or parties;
    19    D. A specified political committee or committees;
    20    E. A specified entity or entities exempt from taxation  under  section
    21  501(c)(4) or (6) of the internal revenue code; or
    22    F. A specified question or questions.
    23    (c) Shareholder consideration of political expenditures shall occur at
    24  an annual or special meeting of the shareholders.
    25    (d) Within forty-eight hours after making a political expenditure, the
    26  corporation shall:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09903-01-5