SB 27

Current law defines "disbursement," for purposes relating to campaign

financing, to include a purchase, payment, loan, or gift made for political purposes;

an authorized expenditure from a campaign depository account; and a payment for

a broadcast or print communication to the general public for a political purpose.

This bill requires corporations to give written notice to their shareholders

before making disbursements, as defined under current campaign finance law. The

corporation is required to give only one notice for each corporate fiscal year. The

notice must include a form that the shareholder may complete and return to the

corporation to object to any disbursement during the applicable fiscal year.

The bill requires a corporation, within three months after the end of its fiscal

year, to calculate the total value of its expenditures for disbursements made during

the fiscal year. If an objecting shareholder returns the objection form to the

corporation (opts out) within 30 days after the date stated on the corporation's notice,

the corporation must, within four months after the end of its fiscal year, do all of the

following: 1) pay the objecting shareholder an amount determined by multiplying

the total value of corporate expenditures for disbursements by the objecting

shareholder's percentage of ownership in the corporation; and 2) provide the

objecting shareholder with the corporation's calculation of the total value of its

expenditures for disbursements made during the fiscal year, along with information

related to the calculation.

The provisions of the bill also apply to foreign corporations authorized to

transact business in this state, with respect to resident shareholders and

disbursements involving political activity or political purposes related to this state.