Bill > A01258

This bill enacts the "Democracy Preservation Act," which aims to prevent foreign-influenced business entities from contributing to state and local elections in New York. 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 5% or more, or a foreign owner participates in the entity's political decision-making. Under the new law, such entities are prohibited from making direct or indirect financial contributions, donations, or expenditures in connection with state or local elections. The bill also requires business entities to file a certification with the state board of elections, signed by their chief executive, affirming that they are not a foreign-influenced business entity when making political contributions. Violations of these provisions are classified as a class E felony, with potential civil penalties including a fine up to $10,000 and a penalty equal to the contribution amount. The legislative findings suggest that this law is intended to protect the integrity of New York's democratic process by preventing foreign investors from influencing elections through corporate political spending, even when they own a small percentage of a company's shares.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A1258