HOUSE DOCKET, NO. 1380        FILED ON: 1/15/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 616

The Commonwealth of Massachusetts

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PRESENTED BY:

Chris Walsh

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to political expenditures by corporations.

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PETITION OF:

HOUSE DOCKET, NO. 1380        FILED ON: 1/15/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 616

The Commonwealth of Massachusetts

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In the One Hundred and Eighty-Ninth General Court
(2015-2016)

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An Act relative to political expenditures by corporations.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. “Political Expenditure” means a contribution, gift, transfer, disbursement, or promise of money or a thing of value to promote or assist in the promotion of the success or defeat of a candidate, political party, or question in any state or federal election.

SECTION 2. A corporation may not use any money or other property of the corporation in connection with a political expenditure, unless the stockholders of the corporation, by the affirmative vote of a majority of all votes entitled to be cast, have:

(i)Authorized in advance the total amount of money or property that may be used for all political expenditures during that fiscal year; and

(ii)Directed that the money or property be used for:

(a)A specified candidate or candidates;

(b)Candidates of a specified political party or parties;

(c)A specified political party of parties;

(d)A specified political committee or committees;

(e)A specified entity or entities exempt from taxation under Section 501 (c) (4) or 501 (c) (6) of the Internal Revenue Code; or

(f)A specified question or questions.

SECTION 3: Stockholder consideration of political expenditures may occur at an annual or special meeting of the stockholders.

(i)(a) Within 48 hours after making a political expenditure, the corporation shall:

Give notice by electronic transmission to each stockholder that has requested notice; and

If the Corporation maintains a website, post notice of the political expenditure on the website.

(ii) The notice shall state the amount, recipient, and purpose of the political expenditure.

SECTION 4: A Director of a Corporation that makes a political expenditure that does not comply with SECTION 2 of this section shall be personally liable to the Corporation for the amount of money expended, plus 6% interest per year.