SECTION 1 (TITLE):
This act shall be known as the Corporate Political Accountability Act.
SECTION 2 (PURPOSE):
This act amends the corporations law to require shareholder approval and public disclosure of corporate political expenditures.
SECTION 3 (PROVISIONS):
(a) A corporation or any of its subsidiaries may not use its money or other property in connection with a political contribution or independent expenditure unless the shareholders of the corporation, by the affirmative vote of a majority of all votes entitled to be cast, have:
- (1) authorized in advance the total amount of money or property that may be used for all political expenditures during a specific fiscal year of the corporation; and
- (2) directed that the money or property be used for:
- (i) a specified candidate or candidates;
- (ii) candidates of a specified political party or parties;
- (iii) a specified political party or parties;
- (iv) a specified political committee or committees;
- (v) a specified entity or entities exempt from taxation under §501(c)(4) or (6) of the internal revenue code; or
- (vi) a specified question or questions.
(b) Any corporation, either by itself or its subsidiaries, making a contribution or independent expenditure shall at least annually disclose to its shareholders and file with the secretary of state an accounting of the contributions and independent expenditures used for such purposes, including:
- (1) the date of the contribution or independent expenditure;
- (2) the amount of the contribution or independent expenditure;
- (3) the identity of the recipient of the contribution, or if an independent expenditure, the identity of the candidate, referendum, political party, pending legislation, public policy or a government rule or regulation supported or opposed; and
- (4) the business rationale for each such contribution or independent expenditure.
(c) The secretary of state shall post each corporation's annual disclosure on the website maintained by the secretary of state.
(d) Whenever it appears to the Attorney General that any person has engaged in any act or practice constituting a violation of any provision of this section, the attorney general may bring an action to obtain one or more of the following remedies:
- (1) a temporary restraining order;
- (2) a temporary or permanent injunction;
- (3) a civil penalty not exceeding:
- (i) three times the amount of a political expenditure made in violation of subsection (a) of this section; or
- (ii) $5,000 for any other violation of this section;
- (4) a declaratory judgment;
- (7) any other appropriate relief.