Bill > H616

This bill defines a "Political Expenditure" as any contribution or transfer of money or value to promote or defeat a candidate, political party, or ballot question in any election. It prohibits corporations from using their funds or property for political expenditures unless their stockholders, by a majority vote, have first authorized the total amount to be spent for the fiscal year and directed that the money be used for specific purposes such as supporting a particular candidate, party, or political committee, or for entities exempt under certain sections of the Internal Revenue Code (501(c)(4) or 501(c)(6)). Stockholder consideration of these expenditures can happen at annual or special meetings, and corporations must notify stockholders electronically and post on their website within 48 hours of making a political expenditure, detailing the amount, recipient, and purpose. Directors who approve a political expenditure that violates these rules can be held personally liable for the amount spent, plus interest.