Committee hears constitutional warnings and reform pitches on bill to limit corporate political spending

The Committee on Consumer Protection and Commerce held a lengthy hearing on SB 2471 SD2 on March 18, 2026, a bill that would reaffirm that artificial persons created under state law possess only the powers the state grants and would revoke corporate powers to spend money or contribute anything of value to influence elections or ballot measures.

Marilyn Neitzel (DCCA Business Registration Division) stood on written comments. Deputy Attorney General Christopher Han testified in opposition, warning that the measure raises significant First Amendment and constitutional questions and could invite costly litigation; he urged the committee to withhold the measure. "This bill purports to take away that freedom based on the speaker's corporate identity," he said, noting content-based restrictions on political speech would receive strict scrutiny.

Tom Moore of the Center for American Progress and other supporters described the measure as an innovative, state-level approach to curb corporate dark money. Moore argued the bill "clarifies what powers the state wishes to extend to the corporations that operate within your borders" and said the approach avoids some pitfalls of prior reform efforts.

Committee members engaged in detailed constitutional questioning about whether the state can withhold political‑spending power from entities it creates, how foreign and out‑of‑state corporations would be treated, and whether privacy or time/place/manner analogies would permit curbs on volume or reach of political speech. Several members said they supported the bill in principle but were concerned about fiscal and litigation risk; the chair deferred SB 2471 to a later agenda to allow further review.

Quote: "This bill relies on an untested legal theory," said Deputy Attorney General Christopher Han. "States have the authority to clarify powers granted to corporations," said Tom Moore (Center for American Progress).

Next steps: The committee deferred SB 2471 SD2 for additional analysis and will consider it at a future meeting.