Prior Approval Reform Act

This bill makes it easier for trade groups to ask certain people at member companies for political donations. It removes the rule that a trade association must get a company’s permission before asking that company’s stockholders and top administrative staff (and their families) to contribute to the association’s political fund. It also lets more than one trade association ask the same people in the same year. The change applies to requests made on or after January 1, 2025.

Key points:

• Who is affected: Trade associations; stockholders and executive/administrative employees (and their families) at companies that belong to those associations.
• What changes: No company “prior approval” needed; multiple trade groups can make donation requests in the same year.
• When: For solicitations made on or after January 1, 2025.