Litigation

TX Editorial: Enhanced Disclosure ?is a Must?

By Peter Hardin

To live with an expected flood of corporate political spending, enhanced disclosure rules are imperative, a Texas newspaper has editorialized.

The Houston Chronicle editorial responded to two developments: the Supreme Court’s Citizens United decision in January and more recently, the Texas Ethics Commission’s approval of an advisory opinion about the decision’s impact on state law.

The commission said corporations now may make direct expenditures for independent political advertising, in keeping with Citizens United. In addition, corporations will be required to follow the same disclosure rules as individuals.

According to the editorial, this “leaves one large loophole in the disclosure process. Companies can contribute money to trade groups and political front groups in the form of dues, which can then be spent on political activity without disclosing the individual entities that gave the money.”

Such large trade associations as the Texas Association of Business are expected to continue shielding their corporate donors from disclosure, the editorial said in calling for stronger disclosure laws:

“If we are going to live with unrestricted participation in our elections by corporations and unions, at minimum it must be fully disclosed and regulated to the maximum extent possible.”

The editorial was headlined, “Tracking the cash: Disclosure of expected flood of corporate political involvement is a must.” To learn how other states are responding to Citizens United, check out Gavel Grab.

Full post as published by The Gavel on April 28, 2010 (boomark / email).