New York S 324: Enacts the democracy preservation act

Bill Text

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S00324 Summary:

BILL NOS00324 

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SAME ASSAME AS A01258

&nbsp

SPONSORGIANARIS

&nbsp

COSPNSRFAHY, GONZALEZ, HARCKHAM, HOYLMAN-SIGAL, JACKSON, KRUEGER, LIU, MAY, MAYER, MYRIE, RAMOS, RIVERA,
 SALAZAR, WEBB

&nbsp

MLTSPNSR

&nbsp

Add §14-116-a, amd §§14-100 & 14-116, El L

&nbsp

Enacts the democracy preservation act; prohibits contributions by foreign-influenced business entities; requires certification.

Go to top S00324 Actions:

BILL NOS00324 

&nbsp

01/08/2025REFERRED TO ELECTIONS

01/13/2025COMMITTEE DISCHARGED AND COMMITTED TO RULES

01/13/2025ORDERED TO THIRD READING CAL.2

01/13/2025PASSED SENATE

01/13/2025DELIVERED TO ASSEMBLY

01/13/2025referred to election law

01/07/2026died in assembly

01/07/2026returned to senate

01/07/2026REFERRED TO ELECTIONS

01/12/2026REPORTED AND COMMITTED TO RULES

01/12/2026ORDERED TO THIRD READING CAL.1

01/12/2026PASSED SENATE

01/12/2026DELIVERED TO ASSEMBLY

01/12/2026referred to election law

Go to topS00324 Committee&nbspVotes:

Go to topS00324 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS00324 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 324

 2025-2026 Regular Sessions

 IN SENATE

 (Prefiled)

 January 8, 2025
 ___________

 Introduced by Sens. GIANARIS, GONZALEZ, HARCKHAM, HOYLMAN-SIGAL, JACK-
 SON, KRUEGER, LIU, MAY, MAYER, MYRIE, RAMOS, SALAZAR -- 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 Assem-
 bly, do enact as follows:

 1 Section 1. This act shall be known and may be cited as the "democracy
 2 preservation act".
 3 § 2. Legislative Findings. The legislature hereby finds and declares
 4 that New York state welcomes immigrants, visitors, and investors from
 5 around the world. However, its elections should be decided by the people
 6 of New York and not by foreign investors or the business entities over
 7 which they exert influence. Corporations with partial foreign ownership
 8 have been spending money to influence state and local elections in New
 9 York and around the country. The public has a compelling interest in
 10 limiting the participation of foreign entities in activities of American
 11 democratic self-government, which include spending money to influence
 12 voters and finance campaigns, in the interest of preventing foreign
 13 influence over the United States political process.
 14 Investors are the ultimate beneficiaries of corporate interests. Where
 15 part of the shareholders' equity is attributable to foreign investors,
 16 spending corporate treasury funds on New York elections means spending
 17 the equity of foreign entities on New York elections.
 18 Business corporations and similar entities have a fiduciary duty to
 19 their shareholders, including investors around the world, and generally
 20 prioritize the interests of such shareholders, which may diverge
 21 substantially from the interests of the people of New York and of citi-

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD00069-01-5

 S. 324 2

 1 zens of the United States. In addition, both formal procedures of corpo-
 2 rate democracy and informal mechanisms of influence can provide foreign
 3 investors with substantial influence even with only a minority of
 4 shares. The United States Securities and Exchange Commission, major
 5 capital investors, corporate managers, and corporate governance experts
 6 broadly agree that ownership or control of one percent or more of shares
 7 can confer substantial influence on corporate decision-making.
 8 Political spending by foreign-influenced business entities can weaken,
 9 interfere with, or disrupt New York's democratic self-government and the
 10 faith that the electorate has in its elected officials. To protect the
 11 integrity of New York's democratic self-government, it is necessary to
 12 prevent foreign-influenced business entities from influencing New York
 13