AB 1984 California Assembly · 2025-2026 Regular Session

Corporate powers: political spending power.

Summary

Existing constitutional law establishes the First Amendment right of freedom of speech. Existing case law, including Citizens United v. Federal Election Commission (2010) 558 U.S. 310 and other judicial precedents, establishes that corporate entities have First Amendment rights to engage in political speech and places limits on the suppression of political speech. Existing law regulates the formation and operation of various types of business and nonprofit entities, including corporations, nonprofit corporations, limited liability corporations, limited partnerships, limited liability partnerships, and unincorporated associations and sets forth their powers and duties. Existing law requires the Secretary of State to receive and process corporate and nonprofit entity filings, maintain records of those filings, and perform related duties. This bill would redefine the powers of artificial persons, as defined, organized under the Corporations Code to specify that those powers do not include political spending power, as defined. The bill would revoke all powers, privileges, and capacities previously granted to corporations under state law and provide that a corporation operating under the jurisdiction of this state possesses only those powers, privileges, and capacities specifically granted in the Corporations Code. The bill would declare void any act undertaken by a corporation beyond the scope of its granted powers, and would require that corporation to forfeit all granted powers. The bill would authorize reinstatement of granted powers after, among other things, disgorgement of all money used in the exercise of political spending power. The bill would authorize the Secretary of State to adopt rules regarding, among other things, reinstatement of forfeited powers. The bill would authorize the Attorney General with authority to enforce its provisions. This bill would make its provisions severable and would further specify the intent and preference of the Legislature that corporations hold no powers at all, rather than be vested with political spending power. The bill would make related findings and declarations.

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 13, 2026 Last action Apr 20, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

04/16/26 - Amended Assembly → AB1984 · 3 edits

MINOR

This diff reflects a change in document presentation format rather than a substantive policy change. The bill text of AB 1984 (which would redefine corporate powers to exclude political spending power) is identical in both versions. The old version was a formatted legislative document with page numbers and line numbers, while the new version is a web page layout with navigation elements, search tools, and metadata links added around the same bill text.

TECHNICAL

Web page navigation and UI elements were added, including links for home, accessibility, FAQ, feedback, sitemap, login, quick search, bill information, publications, subscriptions, favorites, bill analysis, compare versions, status, and sharing options.

Formatted legislative document elements were removed, including page numbers (98), line numbers, page headers/footers with bill number and page references, and the traditional two-column legislative layout.

Metadata was added showing the date published (04/16/2026 09:00 PM) and version identifiers (AB1984:v98#DOCUMENTBill Start).

02/13/26 - Introduced → 04/16/26 - Amended Assembly · 8 edits · Apr 16, 2026

MODERATE

The amended version of AB 1984 substantially expands and restructures the bill to create a comprehensive framework for stripping political spending power from all artificial persons (not just corporations) operating in California. It adds legislative findings declaring corporate powers are conditional state grants, introduces detailed definitions including 'political spending power' with specific media and political committee carve-outs, and establishes an enforcement regime with forfeiture of all charter privileges, mandatory disgorgement, and Attorney General enforcement authority.

Scope change

Scope broadened from 'corporations' to all 'artificial persons,' explicitly including out-of-state entities doing business or holding property in California, while adding specific exemptions for natural persons, state entities, public bodies, political committees, and media publications.

SCOPE

New Section 1 adds legislative findings and declarations establishing that corporate powers are conditional state grants, not natural rights, and that broad statutory language has been construed to include political spending power contrary to the will of the people.

Explicit exemptions added: natural persons acting in individual capacity, state agencies and political subdivisions, public bodies corporate and politic identified by statute, and political committees organized under election laws. A media exemption is also added for bona fide news stories, commentary, and editorials from broadcasting stations or publications (unless owned/controlled by a political party, committee, or candidate).

Scope expanded to explicitly cover out-of-state entities that are authorized to transact business, are otherwise transacting business, or hold property in California. Out-of-state artificial persons undertaking political spending power in California are conclusively deemed transacting business for jurisdiction and enforcement.

DEFINITION

The bill now uses the broader term 'artificial person' instead of just 'corporation,' defined as any entity whose existence, legal status, or limited liability shield is conferred by state law. New definitions added for 'artificial person powers,' 'charter privilege,' and a detailed 'political spending power' definition covering candidates, parties, committees, initiatives, referendums, recalls, and constitutional amendments.

ENFORCEMENT

New enforcement regime: the Secretary of State is authorized to adopt rules for forfeiture, reinstatement, disgorgement, and certification processes. The Attorney General may bring actions for declaratory relief, injunctive relief, disgorgement, and revocation of an artificial person's charter or authority to transact business.

Forfeiture consequences expanded from losing 'limited liability and perpetual duration' to forfeiting ALL charter privileges as a matter of law. Reinstatement is now only possible through Secretary of State procedures and requires full disgorgement of all money or things of value expended in political spending power plus certification of future compliance.

REQUIREMENT

New anti-ratification provision: acts constituting unauthorized political spending power cannot be ratified, validated, or given effect by consent, waiver, estoppel, reliance, course of dealing, or any other equitable doctrine, and create no enforceable rights, obligations, or defenses.

New supersession clause: any grant of power, authority, or capacity to an artificial person that could otherwise be construed to include political spending power is superseded by this title and given no effect. Powers withdrawn shall not be revived by operation of law or judicial construction.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 20, 2026

Committee

Re-referred to Com. on B. & F.

lower

Apr 16, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

lower

Apr 6, 2026

Lower · Passed

In committee: Hearing for testimony only.

lower

Mar 2, 2026

Committee

Referred to Coms. on B. & F. and JUD.

lower

Feb 14, 2026

Lower · Passed

From printer. May be heard in committee March 16.

lower

1 primary · 12 co-sponsors