CalChamber to Continue with Fight to Stop Proposal in U.S. Senate
(July 13, 2010) Over the objections of the California Chamber of Commerce and other business representatives, the U.S. House of Representatives has approved legislation targeting the free speech rights of the business community.
The legislation, H.R. 5175, is a significant departure from past campaign finance legislation, which sought to treat unions and corporations comparably and was framed in a genuinely bipartisan manner.
The title of the legislation is Democracy Is Strengthened by Casting Light on Spending in Elections Act (DISCLOSE Act). Democratic Congressman Chris Van Hollen of Maryland is the chief author of the House bill; Democratic Senator Charles Schumer of New York is the prime sponsor of the Senate companion bill.
Anti-Business Goal
The legislation’s sponsors have said the aim of the law is to deter corporations from participating in the political process.
The legislation prohibits election related speech by certain government contractors, a prohibition that is unconstitutional and contrary to the recent U.S. Supreme Court ruling recognizing that the First Amendment protects political speech by corporations, Citizens United v. Federal Election Commission.
Other Supreme Court decisions have recognized that voluntary associations are vital participants in public debate and that government attempts to curb participation in associations to stifle their voice violate the First Amendment.
The DISCLOSE Act also requires corporations and labor unions to report political donors who have given as little as $600 during the year. In effect, however, most unions would not be required to disclose their donors because an average union member pays annual dues below that threshold.
Unions and their political action committees are the single largest contributor to political campaigns and say they spent nearly $450 million in the 2008 presidential campaign.
Key Vote
H.R. 5175 passed the U.S. House by a vote of 219-206. Among the “aye” votes were 33 Democratic members of the California congressional delegation.
Opponents included 19 Republican members of the California delegation plus Democrat Maxine Waters of Los Angeles.
The CalChamber and other business groups will continue to work to stop the legislation in the U.S. Senate
Staff Contact: Jeanne Cain