,,ii  #aaf? ,,congress  #b;d ,session   
,s4 #cbae  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,janu>y #af1 #bjbj,ms4 
,w>r5 introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,comm]ce1 ,sci5ce1 & ,transportation  ,a
 ,,bill  ,to e/abli% ! obligations (    
c]ta9 l>ge bus9ess entities 9 ! ,unit$  
,/ates1 & = o!r purposes4  #a4 ,%ort    
title ,?is ,act may be cit$ z !         
,acc\ntable ,capitalism ,act4  #b4      
,def9itions ,9 ?is ,act3 7#a7 ,cov]$    
employee ,! t]m cov]$ employee--  7,a7  
means-- 7i7 an individual :o is--  7,i7 
an employee 7includ+ an applicant71 z   
def9$ 9 section #gja ( ! ,civil ,rights 
,act ( #aifd 7#db ,u4,s4,c4 #bjjj;e72   
7,,ii7 a ,/ate employee 7includ+ an     
applicant71 z describ$ 9 section        
#cjd7;a7 ( ! ,gov]nm5t ,employee ,rights
 ,act ( #aiia 7#db ,u4,s4,c4            
#bjjj;e-#af;c7a772  7,,iii7 a cov]$     
employee 7includ+ an applicant71 z def9$
 9 section #aja ( ! ,congressional      
,acc\ntability ,act ( #aiie 7#b         

,u4,s4,c4 #acja72  7,,iv7 a cov]$       
employee 7includ+ an applicant71 z def9$
 9 section #daa7;c7 ( title #c1 ,unit$  
,/ates ,code2  7,v7 an employee1 z def9$
 9 section #aa ( ! ,age ,discrim9ation 9
 ,employm5t ,act ( #aifg 7#bi ,u4,s4,c4 
#fcj72  7,,vi7 an employee1 z def9$ 9   
section #aja ( ! ,am]icans )            
,disabilities ,act ( #aiij 7#db         
,u4,s4,c4 #abaaa72  7,,vii7 an employee1
 z describ$ 9 section #eja7;b7 ( !      
,rehabilitation ,act ( #aigc 7#bi       
,u4,s4,c4 #gia7;b772  7,,viii7 an       
employee1 z def9$ 9 section #c ( ! ,fair
 ,labor ,/&>ds ,act ( #aich 7#bi        
,u4,s4,c4 #bjc72  7,,ix7 an employee or 
applicant to :i* section #gag7;a7 ( !   
,civil ,rights ,act ( #aifd 7#db        
,u4,s4,c4 #bjjj;e-#af7;a77 applies2 or  
7,x7 a p]son 7o!r ?an an employ]7 to :om
 subsections 7a7 & 7b7 ( section #dcaa (
 title #ch1 ,unit$ ,/ates ,code1 apply2 
&  7ii7 an individual :o is engag$ by1  
or applies = or o!rwise seeks a position
 )1 a cov]$ employ] or entity1 :e!r or n

 ! individual receives comp5sation1     
academic cr$it1 or o!r remun]ation f !  
cov]$ employ] or entity1 z--  7,i7 an   
indep5d5t contractor2 or  7,,ii7 an     
int]n1 fell[1 volunte]1 or tra9ee2 &    
7,b7 does n include a managem5t (ficial1
 z def9$ 9 section #gajc7;a77#aa7 (     
title #e1 ,unit$ ,/ates ,code4  7#b7    
,cov]$ employ] or entity ,! t]m cov]$   
employ] or entity means a p]son1 includ+
 an entity1 reg>dless ( bus9ess         
/ructure1 includ+ organization z a legal
 or comm]cial entity1 t is--  7,a7 an   
employ]1 z def9$ 9 section #gja ( !     
,civil ,rights ,act ( #aifd2  7,b7 an   
entity employ+ a ,/ate employee describ$
 9 section #cjd7;a7 ( ! ,gov]nm5t       
,employee ,rights ,act ( #aiia2  7,c7 an
 employ+ (fice1 z def9$ 9 section #aja (
 ! ,congressional ,acc\ntability ,act ( 
#aiie2  7,d7 an employ+ (fice1 z def9$ 9
 section #daa7;c7 ( title #c1 ,unit$    
,/ates ,code2  7,e7 an employ]1 z def9$ 
9 section #aa ( ! ,age ,discrim9ation 9 
,employm5t ,act ( #aifg2  7,f7 an       

employ]1 z def9$ 9 section #aja ( !     
,am]icans ) ,disabilities ,act ( #aiij2 
7,g7 an entity describ$ 9 section       
#eja7;b7 ( ! ,rehabilitation ,act (     
#aigc 7#bi ,u4,s4,c4 #gia7;b772  7,h7 an
 employ]1 z def9$ 9 section #c ( ! ,fair
 ,labor ,/&>ds ,act ( #aich2  7,i7 an   
entity to :i* section #gag7;a7 ( !      
,civil ,rights ,act ( #aifd applies2 or 
7,j7 an employ] to :om subsections 7a7 &
 7b7 ( section #dcaa ( title #ch1 ,unit$
 ,/ates ,code1 apply4  7#c7 ,director ,!
 t]m ,director means ! ,director ( !    
,(fice4  7#d7 ,l>ge entity  7,a7 ,9     
g5]al ,! t]m l>ge entity means an entity
 t-- 7i7 is organiz$ "u ! laws ( a ,/ate
 z a corporation1 body corporate1 body  
politic1 jo9t /ock company1 or limit$   
liability company2  7ii7 engages 9      
int]/ate comm]ce2 &  7iii7 9 a taxable  
ye>1 accord+ to in=mation provid$ by !  
entity to ! ,int]nal ,rev5ue ,s]vice1   
has m ?an #a1jjj1jjj1jjj 9 gross        
receipts4  7,b7 ,aggregation rules ,all 
entities treat$ z a s+le employ] "u     

subsection 7a7 or 7b7 ( section #eb ( ! 
,int]nal ,rev5ue ,code ( #aihf1 or      
subsection 7m7 or 7o7 ( section #dad (  
su* ,code1 %all be treat$ z #a entity = 
! purposes ( subp>agraph 7,a74  7#e7    
,(fice ,! t]m ,(fice means ! ,(fice (   
,unit$ ,/ates ,corporations e/abli%$ "u 
section #c4  7#f7 ,(fic] ,! t]m (fic]   
means1 ) respect to a ,unit$ ,/ates     
corporation--  7,a7 ! presid5t ( !      
,unit$ ,/ates corporation2  7,b7 !      
pr9cipal op]at+ (fic] ( ! ,unit$ ,/ates 
corporation2  7,c7 ! pr9cipal acc\nt+   
(fic] ( ! ,unit$ ,/ates corporation or1 
if ! ,unit$ ,/ates corporation does n h 
su* an acc\nt+ (fic]1 ! controll] ( !   
,unit$ ,/ates corporation2 &  7,d7 any  
vice presid5t 9 *>ge ( a pr9cipal       
bus9ess unit1 division1 or function ( ! 
,unit$ ,/ates corporation4  7#g7 ,/ate  
,! t]m ,/ate means-- 7,a7 ea* ( ! sev]al
 ,/ates ( ! ,unit$ ,/ates2  7,b7 !      
,di/rict ( ,columbia2  7,c7 !           
,commonweal? ( ,pu]to ,rico2  7,d7      
,guam2  7,e7 ! ,unit$ ,/ates ,virg9     

,isl&s2  7,f7 ,am]ican ,samoa2 &  7,g7 !
 ,commonweal? ( ! ,nor!rn ,m>iana       
,isl&s4  7#h7 ,unit$ ,/ates corporation 
,! t]m ,unit$ ,/ates corporation means a
 l>ge entity ) respect to :i* ! ,(fice  
has grant$ a *>t] "u section #c4  #c4   
,(fice ( ,unit$ ,/ates ,corporations    
7a7 ,e/abli%m5t ,!re is e/abli%$ )9 !   
,dep>tm5t ( ,comm]ce ! ,(fice ( ,unit$  
,/ates ,corporations4  7b7 ,director    
7#a7 ,e/abli%m5t ( position ,!re is     
e/abli%$ ! position ( ,director ( !     
,(fice1 :o %all be ! head ( ! ,(fice4   
7#b7 ,appo9tm5t2 t]m  7,a7 ,appo9tm5t   
,except z provid$ 9 subp>agraph 7,e71 ! 
,director %all be appo9t$ by !          
,presid5t1 by & ) ! advice & cons5t ( ! 
,s5ate1 f among individuals :o are      
citiz5s ( ! ,unit$ ,/ates4  7,b7 ,t]m ,!
 ,director %all be appo9t$ = a t]m ( #d 
ye>s1 unless remov$ be=e ! end ( t t]m  
by ! ,presid5t4  7,c7 ,vacancy ,a       
vacancy 9 ! position ( ,director t      
occurs be=e ! expiration ( ! t]m = :i* a
 ,director 0 appo9t$ %all be fill$ 9 !  

mann] e/abli%$ "u subp>agraph 7,a71 & ! 
,director appo9t$ to fill t vacancy %all
 be appo9t$ only = ! rema9d] ( t t]m4   
7,d7 ,s]vice aft] end ( t]m ,an         
individual may s]ve z ! ,director aft] !
 expiration ( ! t]m = :i* ! individual 0
 appo9t$ until a successor has be5      
appo9t$4  7,e7 ,initial ,director ,!    
,secret>y ( ,comm]ce %all appo9t an     
individual to s]ve z ! ,director until  
an individual is appo9t$ to s]ve z !    
,director 9 accordance ) subp>agraph    
7,a74  7c7 ,duties ,! ,(fice %all-- 7#a7
 review & grant *>t] applications = l>ge
 entities2  7#b7 monitor :e!r l>ge      
entities h obta9$ a *>t] 9 accordance ) 
?is ,act2  7#c7 except z provid$ 9      
p>agraph 7#d77;,b71 ref] any violation (
 ?is ,act to ! appropriate ,f$]al ag5cy 
= en=cem5t ) respect to t violation2 &  
7#d7 :5 appropriate-- 7,a7 resc9d !     
*>t]s ( ,unit$ ,/ates corporations "u   
section #d7;b72  7,b7 revoke ! *>t]s (  
,unit$ ,/ates corporations "u sections  
#f7;c77#b77;,b77ii71 #h7;c77#b71 & #i2 &

  7,c7 issue rules to prev5t entities f 
tak+ action to int5tionally avoid       
qualify+ z l>ge entities4  7d7          
,disclosure ( taxpay] id5tity in=mation 
= use by ,(fice  7#a7 ,9 g5]al ,section 
#fajc7m7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end !       
foll[+3  7#h7 ,(fice ( ,unit$ ,/ates    
,corporations ,^u writt5 reque/ by !    
,director ( ! ,(fice ( ,unit$ ,/ates    
,corporations1 ! ,secret>y %all disclose
 taxpay] id5tity in=mation to (fic]s &  
employees ( ! ,(fice ( ,unit$ ,/ates    
,corporations solely = purposes (       
id5tify+ any taxpay] t satisfies !      
requirem5t "u section #b7b77;,a77iii7 or
 #d7;b7 ( ! ,acc\ntable ,capitalism ,act
 = ! mo/ rec5t taxable ye> = :i*        
in=mation is available4  4  7#b7        
,effective date ,! am5dm5t made by ?is  
subsection %all take effect on ! date ( 
enactm5t ( ?is ,act4  #d4 ,requirem5t = 
l>ge entities to obta9 *>t]s  7a7 ,l>ge 
entities  7#a7 ,9 g5]al ,an entity t is 
organiz$ z a corporation1 body          

corporate1 body politic1 jo9t /ock      
company1 or limit$ liability company 9 a
 ,/ate %all obta9 a *>t] f ! ,(fice z   
foll[s3  7,a7 ,if ! entity is a l>ge    
entity ) respect to ! mo/ rec5tly       
complet$ taxable ye> ( ! entity be=e !  
date ( enactm5t ( ?is ,act1 ! entity    
%all obta9 ! *>t] n lat] ?an #b ye>s    
aft] ! date ( enactm5t ( ?is ,act4  7,b7
 ,if ! entity is a l>ge entity ) respect
 to any taxable ye> ( ! entity t beg9s  
aft] ! date ( enactm5t ( ?is ,act1 !    
entity %all obta9 ! *>t] n lat] ?an #a  
ye> aft] ! la/ day ( t taxable ye>4     
7#b7 ,failure to obta9 *>t] ,an entity  
to :i* p>agraph 7#a7 applies & t fails  
to obta9 a *>t] f ! ,(fice z requir$ "u 
t p>agraph %all n be treat$ z a         
corporation1 body corporate1 body       
politic1 jo9t-/ock company1 or limit$   
liability company1 z applicable1 = !    
purposes ( ,f$]al law dur+ ! p]iod      
beg9n+ on ! date on :i* ! entity is     
requir$ to obta9 a *>t] "u t p>agraph & 
end+ on ! date on :i* ! entity obta9s ! 

*>t]4  7b7 ,rescissions  7#a7 ,9 g5]al  
,an entity t has obta9$ a *>t] z a      
,unit$ ,/ates corporation &1 ) respect  
to a subsequ5t taxable ye> ( ! entity1  
is n a l>ge entity may file a petition )
 ! ,(fice to resc9d ! *>t] ( ! ,unit$   
,/ates corporation4  7#b7 ,det]m9ation  
,n lat] ?an #ahj days aft] ! date on :i*
 ! ,(fice receives a petition t an      
entity files "u p>agraph 7#a71 ! ,(fice 
%all grant ! petition if ! ,(fice       
det]m9es t ! entity1 ) respect to ! mo/ 
rec5tly complet$ taxable ye> ( ! entity 
prec$+ ! date on :i* ! petition 0 fil$1 
0 n a l>ge entity4  #e4                 
,responsibilities ( ,unit$ ,/ates       
corporations  7a7 ,def9itions ,9 ?is    
section3 7#a7 ,g5]al public b5efit ,!   
t]m g5]al public b5efit means a mat]ial 
positive impact on society result+ f !  
bus9ess & op]ations ( a ,unit$ ,/ates   
corporation1 :5 tak5 z a :ole4  7#b7    
,subsidi>y ,! t]m subsidi>y means1 )    
respect to a p]son1 an entity 9 :i* !   
p]son owns b5eficially or ( record n    

less ?an #ej p]c5t ( ! out/&+ equity    
int]e/s ( ! entity1 calculat$ z if all  
out/&+ rights to acquire equity int]e/s 
9 ! entity _h be5 ex]cis$4  7b7 ,*>t]   
requirem5ts  7#a7 ,9 g5]al ,! *>t] ( a  
l>ge entity t is fil$ ) ! ,(fice %all   
/ate t ! entity is a ,unit$ ,/ates      
corporation4  7#b7 ,corporate purposes  
,a ,unit$ ,/ates corporation %all h !   
purpose ( creat+ a g5]al public b5efit1 
:i* %all be--  7,a7 id5tifi$ 9 ! *>t] ( 
! ,unit$ ,/ates corporation2 &  7,b7 9  
addition to ! purpose ( ! ,unit$ ,/ates 
corporation "u ! articles (             
incorporation 9 ! ,/ate 9 :i* ! ,unit$  
,/ates corporation is incorporat$1 if   
applicable4  7c7 ,/&>d ( conduct =      
directors & (fic]s  7#a7 ,consid]ation (
 int]e/s ,9 dis*>g+ ! duties ( _!       
respective positions1 & 9 consid]+ ! be/
 int]e/s ( a ,unit$ ,/ates corporation1 
! bo>d ( directors1 committees ( ! bo>d 
( directors1 & individual directors ( a 
,unit$ ,/ates corporation--  7,a7 %all  
manage or direct ! bus9ess & affairs ( !

 ,unit$ ,/ates corporation 9 a mann] t--
 7i7 seeks to create a g5]al public     
b5efit2 &  7ii7 balances ! pecuni>y     
int]e/s ( ! %>ehold]s ( ! ,unit$ ,/ates 
corporation ) ! be/ int]e/s ( p]sons t  
are mat]ially affect$ by ! conduct ( !  
,unit$ ,/ates corporation2 &  7,b7 9    
c>ry+ out subp>agraph 7,a7-- 7i7 %all   
consid] ! effects ( any action or       
inaction on--  7,i7 ! %>ehold]s ( !     
,unit$ ,/ates corporation2  7,,ii7 !    
employees & work=ce (--  7aa7 ! ,unit$  
,/ates corporation2  7bb7 ! subsidi>ies 
( ! ,unit$ ,/ates corporation2 &  7cc7 !
 suppli]s ( ! ,unit$ ,/ates corporation2
  7,,iii7 ! int]e/s ( cu/om]s &         
subsidi>ies ( ! ,unit$ ,/ates           
corporation z b5efici>ies ( ! g5]al     
public b5efit purpose ( ! ,unit$ ,/ates 
corporation2  7,,iv7 community &        
societal factors1 includ+ ^? ( ea*      
community 9 :i* (fices or facilities ( !
 ,unit$ ,/ates corporation1 subsidi>ies 
( ! ,unit$ ,/ates corporation1 or       
suppli]s ( ! ,unit$ ,/ates corporation  

are locat$2  7,v7 ! local & global      
environm5t2  7,,vi7 ! %ort-t]m &        
long-t]m int]e/s ( ! ,unit$ ,/ates      
corporation1 includ+--  7aa7 b5efits t  
may accrue to ! ,unit$ ,/ates           
corporation f ! long-t]m plans ( !      
,unit$ ,/ates corporation2 &  7bb7 !    
possibility t ^? int]e/s may be be/ s]v$
 by ! cont9u$ indep5d5ce ( ! ,unit$     
,/ates corporation2 &  7,,vii7 ! ability
 ( ! ,unit$ ,/ates corporation to       
accompli% ! g5]al public b5efit purpose 
( ! ,unit$ ,/ates corporation2  7ii7 may
 consid]-- 7,i7 o!r p]t95t factors2 or  
7,,ii7 ! int]e/s ( any o!r gr\p t are   
id5tifi$ 9 ! articles ( incorporation 9 
! ,/ate 9 :i* ! ,unit$ ,/ates           
corporation is incorporat$1 if          
applicable2 &  7iii7 %all n be requir$  
to give priority to a p>ticul> int]e/ or
 factor describ$ 9 clause 7i7 or 7ii7   
ov] any o!r int]e/ or factor4  7#b7     
,/&>d ( conduct = (fic]s ,ea* (fic] ( a 
,unit$ ,/ates corporation %all balance &
 consid] ! int]e/s & factors describ$ 9 

p>agraph 7#a77;,b77i7 9 ! mann] describ$
 9 p>agraph 7#a77;,b77iii7 if--  7,a7 ! 
(fic] has discretion to act ) respect to
 a matt]2 &  7,b7 x reasonably appe>s to
 ! (fic] t ! matt] may h a mat]ial      
effect on ! creation by ! ,unit$ ,/ates 
corporation ( a g5]al public b5efit     
id5tifi$ 9 ! *>t] ( ! ,unit$ ,/ates     
corporation4  7#c7 ,exon]ation f p]sonal
 liability ,except z provid$ 9 ! *>t] ( 
a ,unit$ ,/ates corporation1 nei!r a    
director nor an (fic] ( a ,unit$ ,/ates 
corporation may be held p]sonally liable
 = monet>y damages =--  7,a7 any action 
or inaction 9 ! c\rse ( p]=m+ ! duties (
 a director "u p>agraph 7#a7 or an (fic]
 "u p>agraph 7#b71 z applicable1 if !   
director or (fic] 0 n int]e/$ ) respect 
to ! action or inaction2 or  7,b7 !     
failure ( ! ,unit$ ,/ates corporation to
 pursue or create a g5]al public b5efit4
  7#d7 ,limitation on /&+ ,nei!r a      
director nor an (fic] ( a ,unit$ ,/ates 
corporation %all h any duty to a p]son t
 is a b5efici>y ( ! g5]al public b5efit 

purpose ( ! ,unit$ ,/ates corporation   
because ( ! /atus ( ! p]son z su* a     
b5efici>y4  7#e7 ,bus9ess judgm5ts ,a   
director or an (fic] ( a ,unit$ ,/ates  
corporation :o makes a bus9ess judgm5t 9
 good fai? %all be deem$ to h fulfill$ !
 duty ( ! director "u p>agraph 7#a7 or !
 (fic] "u p>agraph 7#b71 z applicable1  
if ! director or (fic]--  7,a7 is n     
int]e/$ 9 ! subject ( ! bus9ess judgm5t2
  7,b7 is in=m$ ) respect to ! subject (
 ! bus9ess judgm5t to an ext5t t !      
director reasonably believes to be      
appropriate "u ! circum/ances2 &  7,c7  
rationally believes t ! bus9ess judgm5t 
is 9 ! be/ int]e/s ( ! ,unit$ ,/ates    
corporation4  7d7 ,"r ( action  7#a7    
,limitation on liability ( corporation  
,a ,unit$ ,/ates corporation %all n be  
liable = monet>y damages "u ?is section 
= any failure ( ! ,unit$ ,/ates         
corporation to pursue or create a g5]al 
public b5efit4  7#b7 ,/&+ ,a proce$+ to 
en=ce ! requirem5ts ( ?is section may be
 comm5c$ or ma9ta9$ only-- 7,a7 directly

 by ! ,unit$ ,/ates corporation to :i* !
 proce$+ applies2 or  7,b7 d]ivatively1 
"u ! laws ( ! ,/ate 9 :i* ! ,unit$      
,/ates corporation is organiz$1 by a    
p]son1 or a gr\p ( p]sons1 t own--  7i7 
b5eficially or ( record n less ?an #b   
p]c5t ( ! total numb] ( %>es ( a class  
or s]ies out/&+ at ! "t ( ! act or      
omission t is ! subject ( ! proce$+2 or 
7ii7 b5eficially or ( record n less ?an 
#e p]c5t ( ! out/&+ equity int]e/s 9 an 
entity ( :i* ! ,unit$ ,/ates corporation
 is a subsidi>y at ! "t ( ! act or      
omission t is ! subject ( ! proce$+4    
7#c7 ,rule ( con/ruction reg>d+         
b5eficial own]%ip ,= ! purposes ( ?is   
subsection1 a p]son %all be con/ru$ to  
be ! b5eficial own] ( %>es or equity    
int]e/s if ! %>es or equity int]e/s are 
held 9 a vot+ tru/ or by a nom9ee on    
behalf ( ! p]son4  7e7 ,application     
7#a7 ,rule ( con/ruction reg>d+ g5]al   
corporate law ,no?+ 9 ?is section may be
 con/ru$ to affect any provision ( law t
 is applicable to a corporation1 body   

corporate1 body politic1 jo9t /ock      
company1 or limit$ liability company1 z 
applicable1 t is n a ,unit$ ,/ates      
corporation4  7#b7 ,applicability ( o!r 
laws  7,a7 ,/ate law ,except z o!rwise  
provid$ 9 ?is section1 ! law ( ! ,/ate 9
 :i* a ,unit$ ,/ates corporation is     
organiz$ %all apply ) respect to !      
,unit$ ,/ates corporation4  7,b7 ,f$]al 
law ,if any provision ( ,f$]al law is   
inconsi/5t ) ! requirem5ts ( ?is section
 ) respect to a ,unit$ ,/ates           
corporation1 ! requirem5ts ( ?is section
 %all sup]s$e t provision4  7#c7        
,organic records ,a provision ( !       
articles ( incorporation 9 ! ,/ate 9 :i*
 a ,unit$ ,/ates corporation is         
incorporat$1 if applicable1 or 9 !      
bylaws ( a ,unit$ ,/ates corporation may
 n limit1 be inconsi/5t )1 or sup]s$e a 
provision ( ?is section4  #f4 ,bo>d     
repres5tation  7a7 ,rulemak+ ,n lat] ?an
 #a ye> aft] ! date ( enactm5t ( ?is    
,act1 ! ,securities & ,ex*ange          
,commission1 9 consultation ) !         

,national ,labor ,relations ,bo>d1 %all 
issue rules to ensure t--  7#a7 director
 elections at ,unit$ ,/ates corporations
 are fair & democratic2  7#b7 employee  
repres5tation is mean+ful & appropriate1
 tak+ into consid]ation-- 7,a7 div]sity 
( race1 e?nicity1 g5d]1 sexual          
ori5tation1 & g5d] id5tity2 &  7,b7 !   
affiliation to hi/orically und]repres5t$
 gr\ps1 includ+ vet]ans ( ! ,arm$ ,=ces 
& individuals ) disabilities2  7#c7     
cov]$ employees t s]ve z a director ( a 
,unit$ ,/ates corporation may be        
dismiss$ only = j cause2 &  7#d7 cov]$  
employees receive any disclosure requir$
 to be made by ! ,unit$ ,/ates          
corporation to %>ehold]s "u !           
,securities & ,ex*ange ,act ( #aicd 7#ae
 ,u4,s4,c4 #gh;a et seq474  7b7 ,unit$  
,/ates corporation elections  7#a7 ,9   
g5]al ,n less ?an #b_/e ( ! directors ( 
a ,unit$ ,/ates corporation %all be     
elect$ by ! cov]$ employees ( ! ,unit$  
,/ates corporation us+ an election      
process t complies ) ! requirem5ts ( !  

rules issu$ "u subsection 7a74  7#b7    
,effective date ,p>agraph 7#a7 %all take
 effect on ! date t is #a ye> aft] !    
date on :i* ! ,securities & ,ex*ange    
,commission issues ! rules requir$ "u   
subsection 7a74  7c7 ,en=cem5t  7#a7    
,securities & ,ex*ange ,commission ,!   
,securities & ,ex*ange ,commission1 9   
consultation ) ! ,national ,labor       
,relations ,bo>d1 %all ensure t !       
elections describ$ 9 subsection 7b77#a7 
comply ) ! requirem5ts ( ! rules issu$  
by ! ,commission "u subsection 7a74     
7#b7 ,dep>tm5t ( ,labor  7,a7 ,9 g5]al  
,! ,secret>y ( ,labor %all coord9ate ) !
 ,(fice to ensure t ! repres5tation ( ! 
bo>ds ( directors ( ,unit$ ,/ates       
corporations comply ) ! requirem5ts "u  
subsection 7b74  7,b7 ,p5alties ,if !   
repres5tation ) respect to ! bo>d (     
directors ( a ,unit$ ,/ates corporation 
fails to comply ) ! requirem5ts "u      
subsection 7b7 = a p]iod t is n less ?an
 #ahj consecutive days--  7i7 !         
,secret>y ( ,labor-- 7,i7 %all assess a 

civil money p5alty aga9/ ! ,unit$ ,/ates
 corporation 9 an am\nt t is n less ?an 
#ej1jjj & n m ?an #ajj1jjj = ea* day t  
su* repres5tation is n 9 compliance ) ^?
 requirem5ts1 includ+ = ea* day dur+ t  
#ahj-;day p]iod2 &  7,,ii7 may collect !
 p5alty describ$ 9 subclause 7,i7 beg9n+
 on ! day aft] ! date on :i* t #ahj-;day
 p]iod ends2 &  7ii7 ! ,(fice may revoke
 ! *>t] ( ! ,unit$ ,/ates corporation4  
#g4 ,executive comp5sation  7a7         
,def9itions ,9 ?is section3  7#a7 ,cov]$
 p]son ,! t]m cov]$ p]son means an (fic]
 or a director ( a ,unit$ ,/ates        
corporation4  7#b7 ,equity security ,!  
t]m equity security has ! mean+ giv5 !  
t]m 9 section #c7;a7 ( ! ,securities    
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;c7a774  7#c7 ,rule #aj;b-#ah pur*ase
 ,! t]m ,rule #aj;b-#ah pur*ase has !   
mean+ giv5 ! t]m 9 section              
#bdj4aj;b-#ah7;a7 ( title #ag1 ,code (  
,f$]al ,regulations1 z 9 effect on !    
date ( enactm5t ( ?is ,act4  7#d7       
,subject security ,! t]m subject        

security means any-- 7,a7 equity        
security ( a ,unit$ ,/ates corporation2 
or  7,b7 security1 ! value ( :i* is     
d]iv$ f1 or t o!rwise relates to1 an    
equity security describ$ 9 subp>agraph  
7,a74  7b7 ,sale ( subject securities   
7#a7 ,prohibitions ,subject to p>agraph 
7#b71 no cov]$ p]son ) respect to a     
,unit$ ,/ates corporation may-- 7,a7    
dur+ ! #e-ye> p]iod t beg9s on ! date on
 :i* ! cov]$ p]son fir/ owns or         
b5eficially owns a subject security )   
respect to t ,unit$ ,/ates corporation  
7or an affiliate ( t ,unit$ ,/ates      
corporation71 sell1 transf]1 pl$ge1     
assign1 ali5ate1 or hypo!cate1 9 ex*ange
 = value1 t subject security1 o!r ?an-- 
7i7 9 connection ) ! sale ( ! ,unit$    
,/ates corporation or ! affiliate1 z    
applicable2 or  7ii7 ?r\gh--  7,i7 a w2 
or  7,,ii7 ! laws ( desc5t or           
di/ribution2 or  7,b7 dur+ ! #c-ye>     
p]iod t beg9s on ! date on :i* t ,unit$ 
,/ates corporation1 or an affiliate ( t 
,unit$ ,/ates corporation1 effects a    

,rule #aj;b-#ah pur*ase1 sell any       
subject security ) respect to t ,unit$  
,/ates corporation4  7#b7 ,application  
,! prohibition "u p>agraph 7#a7 %all n  
apply ) respect to any subject security 
t a cov]$ p]son owns or b5eficially owns
 on ! day be=e ! date ( enactm5t ( ?is  
,act4  7c7 ,en=cem5t ,! ,securities &   
,ex*ange ,commission may impose on any  
cov]$ p]son t violates subsection 7b7 a 
civil p5alty 9 an am\nt t is--  7#a7 n  
less ?an ! fair m>ket value ( ! subject 
securities ( :i* ! cov]$ p]son disposes 
9 violation ( t subsection1 z measur$ on
 ! date on :i* ! cov]$ p]son makes !    
disposition2 &  7#b7 n m ?an ! am\nt t  
is #c times ! fair m>ket value ( !      
subject securities ( :i* ! cov]$ p]son  
disposes 9 violation ( t subsection1 z  
measur$ on ! date on :i* ! cov]$ p]son  
makes ! disposition4  7d7 ,rule (       
con/ruction ,= ! purposes ( ?is section1
 a subject security is b5eficially own$ 
by a cov]$ p]son if-- 7#a7 ! subject    
security is held 9 ! "n ( a bank1 brok]1

 or nom9ee = ! acc\nt ( ! cov]$ p]son2  
7#b7 ! subject security is held z a jo9t
 t5ant1 t5ant 9 common1 or t5ant by !   
entirety or z community prop]ty by !    
cov]$ p]son2 or  7#c7 ! cov]$ p]son has 
a pecuni>y int]e/1 by reason ( any      
contract1 und]/&+1 or relation%ip1      
includ+ an imm$iate family relation%ip  
or arrangem5t1 9 subject securities held
 9 ! "n ( ano!r p]son4  #h4 ,political  
sp5d+  7a7 ,def9itions ,9 ?is section3  
7#a7 ,electione]+ communication ,! t]m  
electione]+ communication has ! mean+   
giv5 ! t]m 9 section #cjd7;f77#c7 ( !   
,f$]al ,election ,campaign ,act ( #aiga 
7#eb ,u4,s4,c4 #cjajd7;f77#c771 except t
 ! t]m any public communication %all be 
sub/itut$ = any broadca/1 cable1 or     
satellite communication 9 ! matt] prec$+
 subclause 7,i7 ( subp>agraph 7,a77i7 ( 
su* section #cjd7;f77#c74  7#b7         
,indep5d5t exp5diture ,! t]m indep5d5t  
exp5diture means an exp5diture1 z t t]m 
is def9$ 9 section #cja ( ! ,f$]al      
,election ,campaign ,act ( #aiga 7#eb   

,u4,s4,c4 #cjaja71 by a p]son t         
expressly advocates ! election or defeat
 ( a cle>ly id5tifi$ c&idate1 or is !   
functional equival5t ( express advocacy 
because1 :5 tak5 z a :ole1 ! exp5diture 
c be int]pret$ by a reasonable p]son    
only z advocat+ ! election or defeat ( a
 c&idate1 tak+ into acc\nt :e!r !       
communication involv$--  7,a7 m5tions a 
c&idacy1 a political p>ty1 or a *all5g] 
to a c&idate2 or  7,b7 takes a position 
on "*1 qualifications1 or fitness =     
(fice ( a c&idate4  7#c7 ,political     
exp5diture 9 support ( or 9 opposition  
to any c&idate = ,f$]al1 ,/ate1 or local
 public (fice ,! t]m political          
exp5diture 9 support ( or 9 opposition  
to any c&idate = ,f$]al1 ,/ate1 or local
 public (fice means an exp5diture or    
s]ies ( exp5ditures total+ m ?an #aj1jjj
 = any s+le c&idate dur+ any s+le       
election t--  7,a7 7i7 is an indep5d5t  
exp5diture2 or  7ii7 ) respect to a     
c&idate = ,/ate or local public (fice1  
w\ld be treat$ z an indep5d5t exp5diture

 if ! c&idate 7 a c&idate = ,f$]al      
public (fice2  7,b7 7i7 is an           
electione]+ communication2 or  7ii7 )   
respect to a c&idate = ,/ate or local   
public (fice1 w\ld be treat$ z an       
electione]+ communication if ! c&idate 7
 a c&idate = ,f$]al public (fice2 or    
7,c7 are dues or o!r paym5ts1           
disbursem5ts1 or transf]s to any o!r    
p]son t-- 7i7 are1 or c\ld reasonably be
 anticipat$ to be1 us$ or transf]r$ to  
ano!r association or organization = !   
purposes describ$ 9 subp>agraph 7,a7 or 
7,b72 &  7ii7 are n inve/m5ts or        
paym5ts1 disbursem5ts1 or transf]s made 
9 comm]cial transactions 9 ! ord9>y     
c\rse ( any trade or bus9ess4  7b7      
,%>ehold] & director approval ,a ,unit$ 
,/ates corporation may n make a         
political exp5diture 9 support ( or 9   
opposition to any c&idate = ,f$]al1     
,/ate1 or local public (fice unless--   
7#a7 n less ?an #ge p]c5t ( ! %>ehold]s 
( ! corporation & n less ?an #ge p]c5t (
 ! directors ( ! corporation approve ( !

 exp5diture2 &  7#b7 ! approvals requir$
 "u p>agraph 7#a7 occur-- 7,a7 be=e !   
date on :i* ! exp5diture is made or     
obligat$2 &  7,b7 aft] ! date on :i* !  
%>ehold]s & directors describ$ 9 t      
p>agraph h be5 in=m$ reg>d+ ! precise   
nature ( ! propos$ exp5diture1 includ+--
  7i7 ! am\nt ( ! propos$ exp5diture2 & 
7ii7 ! c&idate & election to :i* !      
propos$ exp5diture relates4  7c7        
,en=cem5t  7#a7 ,%>ehold] suit ,a       
%>ehold] ( a ,unit$ ,/ates corporation  
may br+ a civil action 9 an appropriate 
di/rict c\rt ( ! ,unit$ ,/ates to enjo9 
a ,unit$ ,/ates corporation f mak+ a    
political exp5diture 9 support ( or 9   
opposition to any c&idate = ,f$]al1     
,/ate1 or local public (fice t violates 
! requirem5ts "u subsection 7b74  7#b7  
,revocation ( *>t] ,! ,(fice may revoke 
! *>t] ( a ,unit$ ,/ates corporation t  
kn[+ly or repeat$ly violates !          
requirem5ts "u subsection 7b74  #i4     
,petition = revocation ( *>t]  7a7 ,fil+
 ( revocation petition ,! attorney g5]al

 ( a ,/ate may file a petition ) !      
,(fice to revoke ! *>t] ( a ,unit$      
,/ates corporation t is organiz$ 9 t    
,/ate or t does bus9ess 9 t ,/ate4  7b7 
,tim+ ( response & decision ,if a       
revocation petition is fil$ "u          
subsection 7a7 ) respect to a ,unit$    
,/ates corporation-- 7#a7 n lat] ?an    
#ahj days aft] ! date on :i* ! petition 
is fil$1 ! ,unit$ ,/ates corporation may
 file a response t expla9s :y revok+ !  
*>t] ( ! ,unit$ ,/ates corporation is n 
ju/ifi$ 9 consid]ation ( ! factors      
describ$ 9 subsection 7c77#b72 &  7#b7 !
 ,director %all issue a rul+ ) respect  
to ! petition n lat] ?an #ahj days aft] 
! e>li] ( ! date t is--  7,a7 #ahj days 
aft] ! date on :i* ! petition is fil$2  
or  7,b7 ! date on :i* ! corporation    
files a response "u p>agraph 7#a74  7c7 
,grant+ revocation petition  7#a7 ,9    
g5]al ,! ,director1 ) ! approval ( !    
,secret>y ( ,comm]ce1 & aft]            
consid]ation ( ! factors describ$ 9     
p>agraph 7#b71 may grant a revocation   

petition t is fil$ "u subsection 7a74   
7#b7 ,factors ,9 det]m9+ :e!r to grant a
 revocation petition "u p>agraph 7#a7 ) 
respect to a ,unit$ ,/ates corporation1 
! ,director %all consid] :e!r ! ,unit$  
,/ates corporation--  7,a7 has engag$ 9 
repeat$1 egregi\s1 & illegal misconduct 
t has caus$ significant h>m to-- 7i7 !  
cu/om]s1 employees1 %>ehold]s1 or       
bus9ess p>tn]s ( ! ,unit$ ,/ates        
corporation2 or  7ii7 ! communities 9   
:i* ! ,unit$ ,/ates corporation op]ates2
 &  7,b7 has n und]tak5 measures to     
address ! causes ( ! misconduct describ$
 9 subp>agraph 7,a71 su* z t]m9at+ !    
employm5t ( any (fic] or executive ( !  
,unit$ ,/ates corporation :o ov]saw t   
misconduct4  7#c7 ,review ( grant+ (    
petition ,a decision by ! ,director to  
grant a revocation petition "u ?is      
subsection-- 7,a7 %all be subject to    
judicial review "u section #gjf ( title 
#e1 ,unit$ ,/ates ,code2 &  7,b7 %all n 
be subject to ! proc$ure = congressional
 disapproval "u section #hjb ( title #e1

 ,unit$ ,/ates ,code4  7d7 ,revocation (
 *>t] ,if ! ,director grants a          
revocation petition "u subsection 7c7 ) 
respect to a ,unit$ ,/ates corporation1 
! ,(fice %all revoke ! *>t] ( t         
corporation1 :i* %all be effective      
beg9n+ on ! date t is #a ye> aft] ! date
 on :i* ! ,director grants ! petition4  
7e7 ,rulemak+ ,! ,director may issue any
 rules t are necess>y to c>ry out ?is   
section4  #aj4 ,sev]ability ,if any     
provision ( ?is ,act1 or any application
 ( t provision to any p]son or          
circum/ance1 is held to be invalid1 !   
rema9d] ( ! provisions ( ?is ,act & !   
application ( any su* provision to any  
o!r p]son or circum/ance %all n be      
affect$4