New York, Massachusets push for corporate spending limits

New York law makers introduced legislation that would require corporations to receive a majority approval from shareholders each year before spending money on campaigns, according to Gavel Grab. Massachusetts legislators introduced a similar bill backed by Common Cause two weeks ago.

The legislation stems from the controversial 5-4 Supreme Court decision of Citizens United allowing unlimited corporate spending on political campaigns.

The Wall Street Journal reported the New York legislation would also require companies to file reports to a state agency explaining the reasons behind each political expenditure.

Business groups say the bill lacks any road blocks for unions that will be put in place of corporations, putting them in a serious disadvantage.

“It’s unconstitutional on its face,” said Heather Briccetti, vice president and general counsel to the Business Council of New York State. “It would pretty much bar any larger publicly traded entity from participating in the political process in this cycle.”

First Amendment lawyer Floyd Abrams said the proposed New York bill raises the question if it is “loading the dice” against a corporation’s First Amendment rights.