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.
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