Corporate powers: political spending power.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Banking and Finance
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill aims to limit the powers of corporations in California by explicitly stating that they cannot engage in political spending. It seeks to clarify that corporate powers are limited to those specifically granted by the Corporations Code and revokes any previous grants of power that were interpreted to include political spending. The bill establishes a process for forfeiting corporate powers if they are used for political spending and outlines procedures for potential reinstatement after full disclosure of such spending. It also defines key terms related to political activity and corporate powers to provide clarity and enforceability.
Key provisions
- Reverses existing interpretations that allowed corporations to engage in political spending.
- Revokes all previously granted powers to corporations beyond those specifically outlined in the Corporations Code.
- Defines ‘political spending power’ to include monetary expenditures and other forms of value used to influence elections.
- Requires corporations to forfeit their powers and disgorge funds used for political spending if they violate the bill’s provisions.
- Establishes a process for the Secretary of State to administer forfeitures and reinstatements.
- Authorizes the Attorney General to enforce the bill’s provisions.
- Clarifies that ballot issue activity and election activity are explicitly excluded from corporate powers.
- States that any act undertaken by a corporation beyond its granted powers is void.
Who is affected
Bill text
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