New bill targets corporate political activity

By CMTA Staff

Capitol Update, Feb. 24, 2006 Share this on FacebookTweet thisEmail this to a friend

SB 1354 (Dunn D- Santa Ana) seeks to amend the Political Reform Act of 1974 by requiring a corporation involved in making political contributions or expenditures supporting or opposing California candidates, political parties, and political causes to report those contributions or expenditures to shareholders. Any objecting shareholders would be entitled to a refund to themselves or to charity according to a pro rata share of those contributions or expenditures, based on the shareholders' proportionate ownership interests.

Additionally, corporations would be required to maintain records that include copies of the reports on these political contributions or expenditures for five years, and make them available to the Fair Political Practices Commission upon request.

The bill places no requirements or restrictions on labor union contributions or political activity.

While the Political reform Act of 1974 already provides for civil and criminal sanctions for violations of its provisions, SB 1354 would separately provide for additional civil and criminal sanctions for violations of the bill.  

The Political Reform Act of 1974, an initiative measure, stipulates that legislation to amend it's terms is effective only after voter approval. If passed by the legislature and signed by the Governor this year, the measure would appear on the June 3, 2008 statewide primary election. 
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