Vermont H 793: An act relating to removing the power of Vermont corporations to spend money on election activities

Bill Text

BILL AS INTRODUCED H.793
2026 Page 1 of 25

VT LEG #385330 v.6
H.793 1
Introduced by Representatives Satcowitz of Randolph, Priestley of Bradford, 2
White of Bethel, Bos-Lun of Westminster, Burrows of West 3
Windsor, Chapin of East Montpelier, Cole of Hartford, Graning 4
of Jericho, Headrick of Burlington, Holcombe of Norwich, 5
Hooper of Randolph, Hoyt of Hartford, Logan of Burlington, 6
McCann of Montpelier, McGill of Bridport, Mrowicki of 7
Putney, Nugent of South Burlington, Ode of Burlington, Olson 8
of Starksboro, Pouech of Hinesburg, Rachelson of Burlington, 9
Scheu of Middlebury, Sibilia of Dover, Tomlinson of Winooski, 10
and Torre of Moretown 11
Referred to Committee on 12
Date: 13
Subject: Corporations, partnerships, and associations; formation, bylaws, and 14
meetings; limited liability companies; Vermont business corporations; 15
nonprofit corporations; mutual benefit enterprises; elections; power to 16
engage in election activity or ballot-issue activity 17
Statement of purpose of bill as introduced: This bill proposes to amend Titles 18
11, 11A, 11B, and 11C to define “ballot-issue activity” and “election activity” 19
and remove any corporate power to pay, contribute, or expend money on those 20
defined activities. 21

BILL AS INTRODUCED H.793
2026 Page 2 of 25

VT LEG #385330 v.6
An act relating to removing the power of Vermont corporations to spend 1
money on election activities 2
It is hereby enacted by the General Assembly of the State of Vermont: 3
Sec. 1. FINDINGS AND PURPOSE 4
(a) The General Assembly finds that artificial legal persons, including 5
corporations, limited liability companies, partnerships, cooperative 6
associations, and mutual benefit enterprises are created under the laws of this 7
State and possess only those powers that the State expressly grants. 8
(b) Under Chapter II, § 69 of the Vermont Constitution, the General 9
Assembly provides by general law for the organization of corporations and 10
retains the authority to alter or repeal such general laws from time to time. 11
Accordingly, the General Assembly retains full authority to revise, limit, or 12
withdraw the statutory powers conferred upon artificial legal persons as a 13
matter of general law, as the General Assembly determines. 14
(c) Broad statutory clauses in Vermont’s entity laws, including 15
authorizations to do all things necessary or convenient to carry out an entity’s 16
purposes, have at times been construed to include powers to engage in election 17
activity and ballot-issue activity. The General Assembly finds that such 18
political spending authority was never intended to be among the powers 19
granted to artificial legal persons under Vermont law. 20

BILL AS INTRODUCED H.793
2026 Page 3 of 25

VT LEG #385330 v.6
(d) The purposes of this act are to: 1
(1) revoke any prior broad grants of powers to artificial legal persons 2
that may be construed to authorize election activity or ballot-issue activity; 3
(2) regrant only those powers necessary or convenient for lawful 4
business, charitable, cooperative, or organizational purposes, which powers do 5
not include, and shall not be construed to include, any authority to engage in 6
election activity or ballot-issue activity; 7
(3) establish uniform limitations across all entity forms while preserving 8
distinctions among them; and 9
(4) preserve and protect the constitutional rights of natural persons and 10
the lawful activities of political committees and political parties. 11
Sec. 2. 11 V.S.A. § 42 is amended to read: 12
§ 42. SPECIFIC PURPOSES 13
Subject to the provisions of this title, one or more persons may form a 14
private corporation for the specific purposes and in the manner following: 15
(1) To operate a regional clearinghouse and a cooperative loan plan, 16
commonly called a central fund, or either, for those banks in the State which 17
that become stockholders or members of the corporation. Such corporations 18
may be organized only with the consent of the Commissioner of Financial 19
Regulation, with or without capital stock. 20

BILL AS INTRODUCED H.793
2026 Page 4 of 25

VT LEG #385330 v.6
(A) In addition to the powers conferred by this chapter, they as 1
limited by this section, private corporations shall have the following powers: 2
(i) all the powers necessary or convenient for carrying out the 3
purposes herein set forth, including the power to receive deposits of funds from 4
a member bank and to administer the same, and to require such deposits from 5
all member banks in uniform percentages, but not in excess of three percent, of 6
the total deposits of any one bank; 7
(ii) to assist member banks when they are temporarily in need of 8
cash or hold investments which that cannot readily be liquidated; 9
(iii) to borrow money and to pledge its assets as security therefor; 10
(iv) to issue scrip to the extent and with such security and under 11
such regulations as the Commissioner of Financial Regulation, with the 12
consent of