NASHVILLE – A new Tennessee law opens the door to businesses making campaign donations directly to candidates.
Gov. Bill Haslam, who signed the bill into law on Wednesday, told reporters earlier that he did not take a position on the bill sponsored by fellow Republican lawmakers that gave businesses the same contribution abilities as political action committees.
“I know the argument would be if unions and PACs and others give, why can’t corporations give at that same limit?” he said. “I was fine if that happened or didn’t happen, to be honest with you, as long as that limit is in place.”
Under the state’s previous law, most businesses were limited to running PACs funded through voluntary contributions from employees. Limited partnerships were allowed to make donations, but did not make significant contributions to candidates.
An Associated Press analysis of campaign finance records shows that state candidates received about $41 million in donations during the 2009-10 campaign cycle. Individual donors gave $28 million, or 68 percent, while PACs accounted for $9.6 million, or 24 percent. Candidates and businesses both gave less than $2 million, or 4 percent each.