New York A 1258: Enacts the democracy preservation act

Bill Text

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A01258 Summary:

BILL NOA01258 

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SAME ASSAME AS S00324

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SPONSORWalker

&nbsp

COSPNSRSimon, Ramos, Bichotte Hermelyn, Lavine, Rivera, Shimsky, Epstein, Rosenthal, Reyes, Levenberg,
 Raga, Cunningham, Shrestha, De Los Santos, Taylor, Kelles, Mamdani, Tapia, Dinowitz, Gallagher,
 Lasher, Chandler-Waterman, Carroll P, Paulin

&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 A01258 Actions:

BILL NOA01258 

&nbsp

01/09/2025referred to election law

01/07/2026referred to election law

Go to topA01258 Committee&nbspVotes:

Go to topA01258 Floor&nbspVotes:

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

Go to topA01258 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 1258

 2025-2026 Regular Sessions

 IN ASSEMBLY

 January 9, 2025
 ___________

 Introduced by M. of A. WALKER, SIMON, RAMOS, BICHOTTE HERMELYN, LAVINE,
 RIVERA, SHIMSKY, EPSTEIN, ROSENTHAL, REYES, LEVENBERG, RAGA, CUNNING-
 HAM, SHRESTHA, DE LOS SANTOS, TAYLOR, KELLES, MAMDANI, TAPIA -- read
 once and referred to the Committee on Election Law

 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-
 22 zens of the United States. In addition, both formal procedures of corpo-

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

 A. 1258 2

 1 rate democracy and informal mechanisms of influence can provide foreign
 2 investors with substantial influence even with only a minority of
 3 shares. The United States Securities and Exchange Commission, major
 4 capital investors, corporate managers, and corporate governance experts
 5 broadly agree that ownership or control of one percent or more of shares
 6 can confer substantial influence on corporate decision-making.
 7 Political spending by foreign-influenced business entities can weaken,
 8 interfere with, or disrupt New York's democratic self-government and the
 9 faith that the electorate has in its elected officials. To protect the
 10 integrity of New York's democratic self-government, it is necessary to
 11 prevent foreign-influenced business entities from influencing New York
 12 elections through political spending.
 13 § 3. The election law is amended by adding a new section 14-116-a to
 14 read as follows:
 15 § 14-116-a. Prohibited contributions by foreign-influenced business
 16 entities. 1. Notwithstanding any provision of law to the co