A D.C.-based First Amendment advocacy group is calling on state lawmakers to abandon the latest amendment to a campaign finance bill that would withhold tax breaks or incentives to corporations that spend money to influence political campaigns.
In the wake of the Citizens United decision by the U.S. Supreme Court, which ruled that a ban on political spending by corporations is a restriction of free speech, lawmakers vowed to change Iowa law to address the situation. Earlier this week the state Senate passed Senate File 2354, which would require corporations spending their money on campaign activities to report expenditures just like other campaign committees and add disclaimers on advertisements they pay for.
But state Rep. Charles Isenhart, D-Dubuque, wants to amend the House version of the bill to bar corporations from receiving state tax incentives for five years after making a campaign expenditure.
Jeff Patch, communications director for the Center for Competitive Politics, says the amendment’s inclusion would be a “poison pill” for an otherwise decent piece of legislation. While his group originally opposed the legislature’s efforts to reign in corporate spending on political campaigns, several amendments have made the bill much better, he said, although there are still some concerns.
But the latest amendment would “torpedo an otherwise sound bill that would offer Iowans reasonable disclosure of this political activity.” The Supreme Court’s decision in Citizens United clearly put all associations — corporations, unions, nonprofit advocacy groups — under the same First Amendment standard governing independent speech in elections, he said, but the amendment singles out corporations, which would not stand up to judicial scrutiny.
“If the bill includes a controversial provision — unrelated to Citizens United, someone is inevitably going to sue the state and would likely successfully obtain a preliminary injunction preventing enforcement of the law in the 2010 cycle,” he said. “Iowa lawmakers shouldn’t take potshots at business political activity at the expense of a clear campaign finance landscape for all candidates and associations during the already underway spring primary season and fall general election.”
The Des Moines Register reports that Isenhart withdrew the amendment but promised to bring it back up when certain details, including enforcement, are worked out.