Political expenditures by corporations and cooperative associations

Under the bill, if a court with jurisdiction in this state finds that a law prohibiting corporations and cooperative associations from making expenditures and incurring obligations to influence an election for state or local office is not enforceable for constitutional reasons, the Ethics Commission must publish a finding to that effect. The bill then provides that, during a period when a finding of unenforceability is in effect, before a corporation or cooperative association may make an expenditure or incur an obligation for the purpose of influencing an election for state or local office, the corporation or association must register as a political action committee and file with its registration statement a document that indicates that the corporation or association received the approval of a majority of its voting shareholders to make expenditures or incur obligations or a document that indicates that the corporation or association has no shareholders.

The bill also provides that no owner, officer, employee, or agent of a corporation or cooperative association may cause or authorize the corporation or association to make an expenditure or incur an obligation prohibited under the bill. If an owner, officer, employee, or agent causes or authorizes such a violation, an action for the violation must be brought against the owner, officer, employee, or agent personally, and the corporation or association is not financially liable for the violation. In addition, no corporation or cooperative association is permitted to reimburse an owner, officer, employee, or agent for any financial liability incurred by the owner, officer, employee, or agent.