NJ Legislators Push for End to Corporate Money in Politics

New Legislation Would Redefine “Corporation” Under State Law to Disallow Political Spending

SUMMIT, N.J.—Assemblymembers Andrew Macurdy, Chigozie Onyema, and Maureen Rowan today announced a bill that would bring an end to corporate spending on politics in New Jersey. The bill alters the definition of “corporation” so that business entities chartered in New Jersey or those operating here lack the legal authority to make political expenditures within our State.

The proposed legislation, named the “Stop Corporate Money in Politics Act,” is a first step towards addressing the undue influence of money in American politics spurred by the U.S. Supreme Court’s Citizens United decision.  It is modeled after Hawaii’s Act 11, which was signed into law last month. Because corporations are creatures of state law, states like New Jersey have the ability to define the legal structure of a “corporation” however they wish. The Assemblymembers’ bill ensures that legal structure does not include the ability to engage in political spending.

This announcement comes on the heels of significant outside spending—over $12 million in total—in the recent congressional primary elections in New Jersey. The outsized role of corporate money in politics in recent years is widely considered to reduce the accountability of elected officials and breed mistrust among their constituents and the broader electorate.

The sponsors gave the following statements regarding the proposal:

“We have experienced a flood of money into politics in recent years,” Asm. Macurdy said. “Unlimited corporate donations distort our system of government and lead to worse outcomes for the people. It doesn’t have to be this way. This proposal would put an end to corporate political spending in the State of New Jersey and put our State at the forefront of accountable government nationwide.”

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“Citizens United fundamentally changed the political landscape and has been a disaster for American democracy,” stated Asm. Onyema. “It gave billionaires in both parties a license to spend enormous sums of money to drown out the voices of everyday voters and elect candidates who represent their interests, not ours.

The Supreme Court needs real reform, but we can’t wait for those reforms to reclaim our democracy. States can act today. Corporations are creatures of state law. The same authority states have to determine what powers they grant corporations is the same authority they have to prohibit corporations from spending money in politics.

This bill is about exercising that power and giving democracy back to the people of our state.”

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“This bill reflects the will of the people,” added Asw. Maureen Rowan. “The vast majority of Americans want to shut off the valve of dark money in our political system.”