To prevent yet another special-interest attack, Legislature must enact disclosure rules
In the early days of statehood, there was an unabashed attack on the Capitol in St. Paul. This attack was not made with weapons, but made with the influence of money. A corporation called the St. Peter Land Co. acquired much of the land in and around St. Peter, Minn., and concocted a plan to move the state Capitol from St. Paul to St. Peter. Such a move would have significantly increased property values in St. Peter, in turn making a significant profit for the corporation's shareholders. As the saying goes, the flag of commerce follows the flag of government and, along with that, the prospect of riches.
The St. Peter Land Co. built a powerful organization at the Legislature, which included Gov. Willis A. Gorman, one of the principal shareholders of the corporation. The attack was sprung during the legislation session of 1857; the bill to move the Capitol passed the House, despite accusations of fraud. There appeared to be sufficient support in the Senate as well, but a parliamentary move forced the proponents to get a two-thirds majority vote on a procedural issue that stopped all business in the Legislature from getting done that session. This move is what ended up keeping the Capitol in St. Paul.
This was an early lesson for our fledgling state on the corrosive power of special interests in politics. Since those early days, Minnesota has been an example of how to limit the influence of special interests. That dedication to clean government and transparency is about to be tested again. It is time for the Minnesota Legislature to act to address the problems created by the U.S. Supreme Court decision Citizens United v. FEC.
Thanks to a lawsuit brought by the Minnesota Chamber of Commerce, a federal court judge has opened the floodgates of corporate contributions to state-level political campaigns. That decision will likely create a wild west in corporate and union political spending. The chaos created by the decision is likely to lead to more legal battles and uncertainty about what activities are and are not legal.
Just a few days left to act
To avoid this chaotic scenario, the Legislature must act this session and not abdicate responsibility to the courts or enforcement boards. With less than one week left in the legislative session, the Legislature will not be able to solve all the problems caused by the Citizens United decision. But it can bring greater clarity to the political contribution system by implementing disclosure rules. This is the only way that the voting public can have faith in the information it receives during the 2010 election.
Bringing campaign contributions into the sunlight is one of the ways that we can prevent corruption and undue influence at the capitol. The public needs to know who is funding political speech by independent expenditure groups so that they can adequately evaluate the information and misinformation about candidates.
In fact, the Citizens United decision specifically contemplated this kind of disclosure. Justice Anthony Kennedy, in writing for the majority, states, "the First Amendment protects political speech; and disclosure permits citizens and shareholders to react to the speech of corporate entities in a proper way. This transparency enables the electorate to make informed decision and give proper weight to different speakers and messages." Simply put, if political contributions are considered speech, then the voting public has the right to know who is saying what.
Disclosure, disclaimers and increased penalties
In order for the public to be adequately informed as contemplated by Justice Kennedy, legislators need to enact the disclosure legislation that was introduced by a bipartisan group of legislators. This legislation, SF 3398, requires more timely disclosure of campaign contributions and expenditures, disclaimers on who is paying for the political materials and increased penalties for those who violate the rules.
This legislation is a necessary first step that the Minnesota Legislature should adopt before the 2010 election. Without this legislation, special interests will have an unbridled opportunity to corrupt Minnesota politics. As we see today and in the early days of this state, special interests will always try to use government to benefit themselves. That is why we need to shine more sunlight on campaign spending.
Mike Dean is executive director of Common Cause Minnesota, a nonpartisan government watchdog group that is committed to election fairness and transparency.
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Comments (2)
Mr. Dean is a talented storyteller - at least at telling half the story. But, he seems to forget or neglect some of the "inconvenient" facts...at least the facts that are inconvenient to his narrative.
Yes, corporations are now entitled to participate in independent expenditures - just as labor unions, associations made up of individuals (trial lawyers, etc.) and other "special interests" have been able to do in Minnesota for many years. I don't recall seeing Mr. Dean or Common Cause at the capitol trying to protect the rights of union members to make voluntary political contributions, or to ensure that "PACs" are equally administered among the various groups. I'm not sure I've seen any proposed legislation from Common Cause this year, or in any past year to ensure that tribal governments are subject to the same kinds of disclosure as he's asking of other corporations.
What's also interesting to those in the is the silence from Common Cause on a brand new "loophole" in the legislation Common Cause is promoting that would allow individuals to contribute unlimited amounts to nonprofit corporations without any disclosure whatsoever. Currently, these contributions would be disclosable and go to Common Cause's desire of transparency. Surely, Mr. Dean and Common Cause recognize that wealthy individuals can have a significant influence on elections, and that voters might have an interest in knowing which individuals attempting to influence their votes?
These examples could certainly be considered "special interests" which could be seen as having the same amount of "undue influence" and "corruption" at the capitol even today. Yet, the silence from Common Cause has been and is still deafening.
But, now that Corporations have the right to participate in independent campaigns, Common Cause has sprung to action. This is a new phenomenon to Minnesota, but not to the 24 states where Corporations were already able to do so. Presumably, Mr. Dean thinks that nearly half the country is the "wild west" of campaign law? Is half the country already subject to chaos?
What's more, any corporation that chooses to do so will be subject to disclosure under CURRENT law. While new requirements may be desirable, they aren't necessary to achieve the ends promoted by Common Cause. Our campaign laws are very broad, and any new actor (including corporations) will likely be subject to disclosure at one of several reporting periods. If Minnesota's laws indeed aren't sufficient, the IRS requires disclosure of political activity (assuming the entity hasn't already disclosed to a state agency).
Yes, our system needs to be tweaked to accommodate the new actors, but it isn't as if we face the choice between chaos and anarchy if the legislature fails to act, and pure transparency and good government if they succeed. This is a red herring.
A minor point, but illustrative of Mr. Dean's skewing of the facts. You won't find a portrait of Governor Willis A. Gorman at the capitol in St. Paul - that's because he was never Governor of the State of Minnesota. He served as Territorial governor prior to statehood (May 11, 1858 - celebrated yesterday). This of course doesn't go to Dean's main point, but an article that begins with incorrect information should be viewed with a skeptical eye.
Misleading the public isn't a good way to achieve additional disclosure. Common Cause would do well to expand its definition of "special interests" beyond those that fit into its narrative of villainous robber barons who they seem to think are scheming to literally move the capitol to more favorable grounds.
Why is this an important article? Because the average citizen has no idea how influential these special interests are (including ALL, without exception, named by Franklin in his defense of corporate lobbying).
Not to promote my own commentaries, but to add and compliment Mr. Dean's assertions, on Feb 1, I wrote a peice on this exact subject published by Minnpost (see below)
http://www.minnpost.com/community_voices/2010/02/01/15408/drilling_deepe...
I think most would be surprised, shocked, and dismayed by the scale of influence these lobbyists have at our capitol. I thought I was well informed; as it turned out I knew little or nothing on this subject till I researched it. Hopefully others will do the same.