Bill > S213

This bill proposes changes to Chapter 156D of the General Laws concerning corporate political expenditures, requiring that corporations obtain prior affirmative shareholder approval by a majority vote for any use of corporate funds or property to promote or defeat a candidate, political party, or ballot question in state or federal elections. This approval must specify the total amount that can be spent and the intended recipients or purposes, such as specific candidates, parties, or certain tax-exempt organizations (like those under sections 501(c)(4) or 501(c)(6) of the internal revenue code). Violations are considered inherently wasteful and a breach of officer and director duties. Corporations making such expenditures must notify shareholders electronically within 48 hours of the expenditure and report its details in all quarterly and annual shareholder reports. Officers or directors who authorize non-compliant expenditures will be personally liable to the corporation for the amount spent, and their belief that the expenditure was in the corporation's best interest will not be a defense. The bill also allows for the revocation of a corporation's charter or license to operate in the commonwealth if it's found liable for campaign finance or election law violations, or if its managers or directors are found liable for such violations or for violating this new provision. Importantly, this bill does not restrict individuals associated with a business from making personal political contributions or financing independent expenditures allowed by law.