Sen. Peter Galbraith’s amendment to the campaign finance bill that would ban corporate contributions to lawmakers passed with flying colors on Friday, but this week his proposal was questioned by senators who professed they didn’t understand that his proposal would … ban corporate contributions.
Three lawmakers questioned whether a prohibition on corporate giving would ban local business donations from S corporations, limited liability corporations, and so on.
Galbraith explained that corporations could establish a second segregated fund registered as a political action committee, and employees of the corporation could donate to the PAC. The corporation could not, however, launder money through the PAC.
The amendment he said was designed to target large corporate donations, but senators who opposed the measure were concerned that it would have an impact on contributions from small businesses in Vermont.
Sens. Alice Nitka, D-Windsor, Ann Cummings, D-Washington, and John Rodgers, D-Orleans-Essex, complained that the Galbraith’s amendment would make it more difficult for lawmakers to fund campaigns.
Nitka described the proposal as an “elaborate system.” Cummings said the provision would make it harder for senators to persuade local companies that are registered as corporations to donate to candidates. Finally, Rodgers, who owns an S corporation, was outraged that under the new rules he wouldn’t be able to donate to his own campaign.
The bill was tabled in order to give Nitka time to present an amendment on Thursday.
