BILL NUMBER: AB 2050	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Huffman and Allen

                        FEBRUARY 23, 2012

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2050, as introduced, Huffman. 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.
State-mandated 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 domestic corporation may, 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 the detriment 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.