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AB-2050 Corporations: political activity: disclosures. (2011-2012)

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AB2050:v98#DOCUMENT

Amended  IN  Assembly  March 14, 2012

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 2050


Introduced  by Huffman Assembly Member Allen
(Principal Coauthor(s): Assembly Member Huffman)

February 23, 2012


An act to add Section 721 to the Corporations Code, relating to corporations.


LEGISLATIVE COUNSEL'S DIGEST


AB 2050, as amended, HuffmanAllen. Corporations: political activity: disclosures.
Existing law, the General Corporation Law, provides for the regulation of corporations. Under existing law, every publicly traded domestic corporation is required to file annually a statement, on a form prescribed by the Secretary of State, that includes, among other things, the name of the independent auditor that prepared the most recent auditor’s report on the corporation’s annual financial statements and information about the board of directors.
This bill would prohibit a domestic corporation from making any monetary contribution to any candidate for local or state office in this state or any other state. The bill would also require every domestic corporation making any monetary contribution in excess of $1,000 to any candidate for federal office or any statewide ballot, referendum, or initiative voted on in this state to make a specified disclosure to the Secretary of State within 10 days thereof. The bill would require the Secretary of State to make the disclosure public, including on its Internet Web site.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 721 is added to the Corporations Code, to read:

721.
 (a) No A domestic corporation may, shall not, directly or indirectly, make any monetary or other contribution of value to any candidate for city, county, city and county, or state office in this state or any other state.
(b) Every domestic corporation that, directly or indirectly, makes any monetary or other contribution of value, either individually or cumulatively, in excess of one thousand dollars ($1,000) to or for the benefit or support of, or to the detriment of or opposition to, any candidate for federal office or any statewide ballot measure, referendum, or initiative voted on in this state shall, within 10 days of doing so, file a report on a form to be prepared by the Secretary of State setting forth the full details of that contribution and the information on that form shall promptly be placed in the public records, including on the Internet Web site of the Secretary of State.
(c) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.