Asm. Lancman and Sen. Squadron Announce Legislation to Require Corporate Accountability on Political Expenditures.

A press release from State Senator Daniel Squadron:

 

 

Albany, NY—[Yesterday], Assembly Member Rory Lancman (D-Queens) and Senator Daniel Squadron (D-Brooklyn/Manhattan) announced new legislation to require corporations making political contributions or expenditures in New York to annually obtain prior shareholder approval and to annually disclose all such expenditures—and the business rationale for them—to their shareholders and the secretary of state. This legislation would rein in reckless corporate spending on political campaigns in response to the Supreme Court’s recent decision in Citizens United v. FEC, which effectively eliminated restrictions on independent corporate spending on political campaigns and advertising.

 

“Corporations aren't people, and they don't deserve the same rights people have to influence the political process," said Assembly Member Rory Lancman. “At the very least, corporations should need permission from their shareholders before spending corporate resources on political campaigns, and should disclose not only such expenditures but the business rationale for spending shareholder money to support or defeat a candidate.”

 

Senator Squadron said, “Unlimited corporate contributions are a real threat to our democratic process. We have to make sure that the Citizens United decision doesn’t allow a flood of corporate dollars to wash out the voice of the people. By requiring shareholder approval and public disclosure, this bill will rein in unchecked political influence by corporations and bring much-needed transparency to the process.”

 

Senate Majority Conference Leader John L. Sampson said, “The political process is about people, not corporations. Requiring the disclosure of any political contributions made to in-state campaigns will shine light on powerful interests seeking to influence elections. I commend Senator Squadron for his tireless work in our Chamber, as well as Assemblyman Lancman for introducing this key legislation.”

 

“The decision of the United States Supreme Court in Citizens United v. Federal Elections Commission did a great disservice to the public and its confidence in the election of our representatives by opening the floodgates to unlimited corporate spending to influence the outcome of our elections,” declared Senator Joseph P. Addabbo, Jr., Chair of the State Senate Elections Committee. “Requiring shareholders to approve corporate political contributions and advertising, and requiring an explanation of the corporate purposes served by such spending, is an important step towards keeping unbridled corporate power in check. That’s why I am co-sponsoring this bill,” said Senator Addabbo.

 

Senator Eric Adams said, “The 5-4 decision by the Supreme Court of the United States in Citizens United v. Federal Election Commission essentially destroys the reform instituted by the McCain-Feingold legislation governing political campaigns. The Court’s decision strikes down almost everything in federal campaign finance law, giving corporations unfettered reign to contribute an unlimited amount of money to election campaigns. The legislation introduced by Senator Daniel Squadron and Assembly Member Rory Lancman requires any corporation making a political contribution or expenditure in the State of New York to obtain prior shareholder approval and to disclose all such expenditures and the business rationale for them to said shareholders and to the Secretary of State. Moreover, compliance will be on an annual basis. The Squadron-Lancman legislation will empower corporate shareholders and restrict irresponsible corporate spending on political campaigns. I support it fully.”

 

“The recent Supreme Court decision in Citizens United puts our fragile democratic process in real danger of being hijacked by the priorities of corporations with deep pockets. When did ‘we the people’ turn into ‘we some corporate agenda?’” asked Senator Liz Krueger. “This legislation creates a system of checks-and-balances by requiring public reporting of corporate political spending and vote approval by shareholders, a valuable counter-force to the impact of growing corporate campaign spending.”

 

“The US Supreme Court’s decision in Citizens United has triggered a national debate over how to bolster the accountability of unfettered corporate campaign giving,’” said Blair Horner, NYPIRG’s Legislative Director. “NYPIRG applauds the proposal put forward by Senator Squadron and Assembly Member Lancman to help kick-start that debate in New York.”

 

“Between the Supreme Court’s new swing to deregulate campaign finance and New Yorkers’ near total distrust of government, the Squadron/Lancman bill being discussed today is more necessary now than ever before,” said Jessica Wisneski, Legislative Campaigns Director of Citizen Action of New York. “The legislature must move quickly to pass this and other critical campaign finance reforms, including public financing of elections, to protect the electorate from wealthy corporate interests from taking over our democracy completely.”

 

This legislation states that any corporation—domestic or foreign—making political donations to New York state campaigns must:

 

·         Obtain prior approval of a majority of its shareholders on an annual basis before making such donations, up to a stated aggregate amount.

 

·         Disclose to its shareholders and the New York Secretary of State an accounting of all corporate donations, including the identity of the candidates, committees and initiatives funded and the business rationale for such contributions.