This is a step in the right direction, but it’s not enough by itself.
The U.S. Supreme Court opened the door for corporations to pour money into influencing Texas elections, but the state ethics commission today is taking up a rule to make sure voters know who is spending the money.
Under the rule up for a commission vote, corporations will be able to spend money to advocate for the election or defeat of candidates, but they will have to file campaign reports disclosing where the money came from. Direct donations of corporate money to candidates will continue to be banned.
However, Craig McDonald, of Texans for Public Justice, said the rule may not require trade associations and political “front” groups to actually disclose the names of their donors. McDonald said new state and federal laws probably will be needed for that.
The Texas Association of Business is one of the most controversial Austin groups that have used corporate money in the past to influence state elections. TAB President Bill Hammond said if the group advertises in future races, it will disclose its role, but not the names of the individual corporate donors.
Requiring the campaign reports is a no-brainer. If a corporation is going to act like a PAC, it needs to do the things that a PAC has to do as well. The loophole for trade associations and front groups is big enough to drive a tank through, however, and will render this requirement meaningless if it isn’t closed. The comment from Bill Hammond should make that clear. There is already talk of federal legislation to require disclosure of donors to such organizations, but that shouldn’t stop Texas from passing its own law as well. And please, make there be some real penalties for not following the law. Leaving it all up to the TEC will do nothing to deter violations.