Bill > S00324

This bill enacts the "Democracy Preservation Act," which aims to prevent foreign-influenced business entities from making political contributions or expenditures in New York state elections. The bill defines a "foreign-influenced" business entity as one where a single foreign owner holds at least 1% of ownership, multiple foreign owners collectively hold at least 5% of ownership, or a foreign owner participates in the entity's political decision-making. The legislation prohibits such entities from directly or indirectly making contributions to political campaigns, committees, or making political communications. Business entities must file a certification with the state board of elections signed by a top executive, affirming they are not foreign-influenced when making political expenditures. Any person found violating these provisions can be charged with a class E felony and face civil penalties equal to the contribution amount plus a fine of up to $10,000. The legislative findings emphasize protecting the integrity of New York's democratic process by limiting potential foreign influence in elections, recognizing that even minority shareholders can substantially impact corporate decision-making. The act will take effect 180 days after becoming law, giving entities time to adjust to the new requirements.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S324