New York A 2463: Requires shareholders to approve corporate political expenditures

Bill Text

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A02463 Summary:

BILL NOA02463 

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SAME ASNo Same As

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SPONSORColton

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COSPNSRCook

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MLTSPNSR

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Add §631, BC L

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Requires shareholders to approve corporate political expenditures.

Go to top A02463 Actions:

BILL NOA02463 

&nbsp

01/17/2025referred to election law

01/07/2026referred to election law

Go to topA02463 Committee&nbspVotes:

Go to topA02463 Floor&nbspVotes:

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

Go to topA02463 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 2463

 2025-2026 Regular Sessions

 IN ASSEMBLY

 January 17, 2025
 ___________

 Introduced by M. of A. COLTON, COOK -- read once and referred to the
 Committee on Election Law

 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.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05890-01-5

 A. 2463 2

 1 (d) Within forty-eight hours after making a political expenditure, the
 2 corporation shall:
 3 (1) Give notice of the political expenditure by electronic trans-
 4 mission to each shareholder that has requested notice; and
 5 (2) If the corporation maintains a website, post notice of the poli-
 6 tical expenditure on the website.
 7 (3) When providing notice pursuant to subparagraphs one and two of
 8 this paragraph, the notice shall state the amount, recipient, date, and
 9 purpose of the political expenditure.
 10 (e) The annual report of the corporation shall contain a list of all
 11 political expenditures made by the corporation during the reporting
 12 period, including the amount, recipient, date, and purpose of each poli-
 13 tical expenditure.
 14 (f) If a shareholder disagrees with a political expenditure made under
 15 this section, the shareholder may receive from the corporation upon
 16 request a pro rata rebate in an amount of the percentage of the poli-
 17 tical expenditure equal to the percentage of ownership the shareholder
 18 has in the corporation.
 19 (g) If a majority of a corporation's shares are owned by those who
 20 cannot take political positions, including but not limited to state and
 21 local pension funds, mutual funds, insurance companies, foundations,
 22 churches and universities, then the corporation shall not make political
 23 expenditures.
 24 § 2. This act shall take effect on the ninetieth day after it shall
 25 have become a law.

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