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Highlights of Ohio Secretary of State Jennifer Brunner’s proposal to protect Ohio elections from the effects of the U.S. Supreme Court’s Citizens United decision:
BACKGROUND:
On January 21, 2010, the U.S. Supreme Court permitted corporations and ostensibly labor organizations to make independent expenditures in federal candidate campaigns. This means that corporations may make direct expenditures or expenditures to other organizations for the purpose of those organizations making independent expenditures for or against federal candidates. The decision has far reaching effects, affecting state election laws and opening up campaign communications to domestic corporations owned by foreign interests.
After studying the decision and its possible effects on Ohio laws that currently prohibit corporations (but not labor organizations) from using their money or property for any partisan political purpose, Secretary Brunner proposes that Ohio law changes be implemented quickly to stem an anticipated tide of corporate dollars being used to influence state and even local election campaigns in 2010.
While Ohio cannot change the U.S. Supreme Court’s decision, the state can provide for transparency and accountability by corporate interests that would now become involved in making independent expenditures, either directly or indirectly, in Ohio elections.
ANTICIPATED SPENDING BY CORPORATIONS (FOR PROFIT AND NONPROFIT) FOR INDEPENDENT EXPENDITURES IN STATE ELECTIONS:
Direct expenditures by corporations for advertisements (TV, radio, internet, literature) for or against a candidate, group of candidates, legislative caucus, political action committee that supports or opposes candidates or political party
Contributions (indirect expenditures) to any of the following for the purpose of making independent expenditures for or against a candidate, group of candidates, legislative caucus, political action committee that supports or opposes candidates or political party
- Another corporation (for profit or nonprofit, including LLC)
- Legislative caucus committee
- Political action committee (including a corporation’s own PAC)
- Political party
- Labor organization (including political contributing entity)
§ A campaign committee (that sponsor’s a candidate’s election to office) would be prohibited from making independent expenditures, since the purpose of the campaign committee is to sponsor the candidate for whom it has been formed.
KEY POINTS:
Corporations and other entities making direct and indirect expenditures for the purpose of making independent expenditures for any partisan political purpose would report all expenditures. Reporting would be as it is done now for ballot issue campaigns, with each corporation or entity that makes independent expenditures (direct or indirect) being required to report its own expenditures, even if to a PAC or another corporation, on a form similar to the “30B-1” form now used by corporations to report expenditures in ballot issue campaigns. The reporting schedule would be the same as for statewide candidates for state elections (statewide office, including Ohio Supreme Court, state school board and state legislative candidates).
If an entity that makes independent expenditures receives any contributions for the purpose of making independent expenditures, those funds must be segregated from other funds of the entity and the contributions received must be reported separately from other types of permitted contributions.
If a for profit domestic corporation is owned at least 20% by a foreign (out of country) corporation, it cannot make independent expenditures for any partisan political purpose, either directly or indirectly.
§ If a corporation receives any state funds or federal funds issued by the State of Ohio, it cannot make any independent expenditures in state elections for any partisan political purpose.
All independent expenditures must be identified by a “disclaimer” that includes the name, treasurer’s name, address and website, if any, of the entity that has directly paid for the advertising that is an independent expenditure.
All advertising by independent expenditures for broadcast media must be registered with the Secretary of State on or before the time it is aired by transmitting to the Secretary a digital copy of the advertisement and the disclaimer on the advertisement, along with a digital copy of the schedule of airing of the advertisement(s), including any changes to scheduling as they occur, to allow members of the public the opportunity to learn about the advertising they view or hear and better discern the speaker’s background and interests in making the speech that would influence their votes in an election. The Secretary will be required to immediately post them on the Secretary of State’s website.
TIMETABLE:
The Secretary will be submitting draft legislation by the end of the week to the Ohio General Assembly and seeks swift consideration and its inclusion in existing legislation now being discussed by members of the House and Senate relating to election law changes and reform. It is anticipated that prompt deliberation and passage of this campaign finance reform will assist Ohioans in this year’s mid-term federal election in better identifying the sources of speech for and against candidates as they determine how they will cast their votes.
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