Political Spending Disclosure Bill Set For First Committee Hearing Today

In January, I wrote about Senator Noreen Evans bill, SB 121, that would require any corporation (as defined) that has shareholders located in California and that makes a contribution or expenditure (as defined):

  • to issue a report on the political expenditures of the corporation in the previous fiscal year, and
  • to notify shareholders not less than 24 hours prior to each political contribution during the fiscal year, by specified means, including posting the report and notification on the corporation’s Internet web site, if any.
See Senator Seeks 24-Hour Advance Notice Of Corporate Political Contributions/Assemblymember Asks For Constitutional Convention. The bill was amended on April 1 to make some minor changes. As amended, the bill now applies to a corporation (as defined) that “reasonably believes it has one or more shareholders who reside in California” and that engages in political activity. This is, of course, a ridiculously impractical standard.
The bill will have its first committee hearing today before the Senate Banking and Financial Institutions Committee. The bill has long lists of supporters, including the bill’s sponsor, CalPIRG. The bill also has a long list of opponents, including the California Chamber of Commerce which led a group of 36 opponents.

 

Topics:  Notice Requirements, Political Campaigns, Political Contributions, Proposed Legislation

Published In: Business Organization Updates, Elections & Politics Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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