This 501(C)(4) Organization Urges More Disclosure from 501(C)(4) Organizations

Last month’s arrest of former Ohio House Speaker Larry Householder and his co-conspirators shined a light on what many already suspected. House Bill 6, the billion-dollar bailout strong-armed through the General Assembly, was fueled by corrupt pay-to-play dealings with corporate utilities. 

From the beginning, HB 6 was a bad deal for Ohioans, sticking us with dirtier air and higher utility bills while gutting our renewable energy future. Therefore, everyone’s top priority should be to fully repeal HB 6. Following repeal, we must replace it with a forward-looking energy plan to protect our health, our environment, and our communities. We can no longer enrich cronies, creditors, and co-conspirators at the expense of hardworking Ohioans.  

We must also restore public trust in our democracy by repairing the damage of HB 6, and by preventing such corruption in the future.  The FBI’s investigation revealed the need for safeguards against the destructive impact of money on our democracy.

As the list of HB 6 repeal bills at the Ohio Statehouse has grown, a trickle of anti-corruption bills have appeared, as well. These anti-corruption bills aim to keep Ohioans informed and keep the system accountable. Three of those bills—HB 737, sponsored by Rep. Gayle Manning (R-N. Ridgeville), its Senate companion bill, SB 347 sponsored by Senator Nathan Manning (R-N. Ridgeville), and Rep. Jessica Miranda (D-Forest Park), and HB 739, sponsored by Rep. Bride Rose Sweeney (D-Cleveland) and Rep. Allison Russo (D-Upper Arlington)—focus on enhancing campaign finance disclosure laws. 

The bills would broaden the types of activities considered electioneering and require more entities to disclose such activities meant to influence our elections. This includes requiring Section 501(c)(4) organizations, like OEC Action Fund, to disclose where and how they use money to influence elections. 

And we are all for it.

These bills are a great starting point. Campaign finance disclosure regulations inform voters about what candidates stand for and who they stand with, allow voters to hold elected officials accountable for their relationships with supporters, and deter corruption by exposing large transactions to the light of day. 

Broadening our campaign finance laws to include other organizations who engage in electioneering only strengthens the trust our political system depends upon.  OEC Action Fund would be regulated by this expansion, and we welcome the change toward greater transparency. We urge you to tell your state representatives to begin the debate on these important bills now.

Disclosure must go beyond expanding campaign finance laws. 

Lobbying Disclosure

We need to require lobbyists to more completely disclose their activities. Any communication attempting to influence people or urging them to weigh in on a legislator’s decisions must include a disclaimer. Those disclaimers should include the information necessary to help Ohioans learn more about the entities trying to influence laws and lawmakers. 

Again, as an organization who lobbies (in fact, I just lobbied you in the previous paragraph), we would be regulated. We embrace that regulation. We want to work with our fellow 501(c)(4) advocacy groups—allies and opponents—to keep the playing field even, rebuilding the trust the HB 6 conspiracy fractured. When we lobby on a bill, we want a fair and honest debate on all sides. When we urge our members to vote, we want them to have all the information needed to make a decision best for them and for our environment. 

If the OEC Action Fund and fellow 501(c)(4) organizations must disclose the sources of money paying for our lobbying or lawmaker accountability work, we are supportive. 

Additional Reforms

Disclosure itself, though, is not a panacea. Disclosure only provides the information to the public. It is up to the public and our elected officials to use the information to demand systemic change. We must also reform:

  • Campaign finance monetary limitations;

  • Proper timing of reports so information is provided well before the legislature or a voter has to make a choice;

  • Ensuring a safe and fair process for signature gathering as was recently introduced in HB 752;

  • Easier citizen access through ballot initiative at the state and local level to advance what the legislature won’t do or to undo what the legislature did; and 

  • Comprehensive improvements to our voting system ensuring all Ohio citizens can exercise their right to vote.

We must guarantee a fair and equitable democracy. We must no longer allow a pay-to-play system. 

As with all systemic changes, it will take multiple efforts and sacrifices. Yet, just as the repeal of HB 6 will start the development of a cleaner and fairer state energy policy, creating a model for the rest of the country, movement on a disclosure bill will spark a similarly important conversation.