Bradley A. Smith and Eric Wang:
A federal judge on Monday will consider a Minnesota law that surreptitiously attempts to overturn the U.S. Supreme Court’s holding in Citizens United v. FEC (2010) that corporations have a constitutional right to speak independently about politics.
While Citizens United and other judicial decisions have loosened restrictions on corporate political speech, courts have upheld longstanding bans on political speech by foreign nationals. Therefore, Minnesota and other opponents of corporate speech now seek to redefine large swaths of American businesses as “foreign influenced” to stop their political engagement. Seattle, St. Petersburg, Fla., and Alaska have joined Minnesota in passing laws banning political speech by so-called foreign-influenced corporations. Lawmakers in numerous other states and Congress have introduced similar bills.
The Minnesota law is typical of these measures, making Monday’s hearing an early test of their constitutionality. The law defines “foreign-influenced corporations” as including any U.S. company in which a single foreign investor has “direct or indirect beneficial ownership” of as little as 1% of total equity. This status also may be triggered if hundreds or even thousands of foreign stockholders collectively own 5% of shares. It doesn’t require these stockholders to be of the same nationality or to collude to influence so much as the corporate cafeteria menu.