COLUMBUS, Ohio — Ohio Republican senators passed legislation meant to stop foreign donations to state ballot-issue campaigns, but Democrats argue the bill goes too far, as it has a provision that could make it harder for grassroots movements to get on the ballot — even with U.S. dollars.
Money flooded into Ohio ballot initiatives in 2023 as voters in the state first weighed in on a push to make it harder to change the state constitution, then whether to legalize recreational marijuana and protect reproductive rights.
This came from money that State Sen. Rob McColley (R-Napoleon) believes shouldn’t have been allowed in.
"It's a reaction, really, in some ways to a disturbing trend that we're seeing across the country," McColley told News 5. "It's not unique to Ohio and that is foreign money coming into our issues elections."
The state Senate Wednesday passed his legislation, S.B. 215. It would prohibit foreign nationals from contributing to campaigns for or against state or local ballot issues. This could be by directly donating from outside the country or by donating to an entity, like a political action committee (PAC).
This bill is stemmed from the Sixteen Thirty Fund, a dark money group that contributes to progressive causes, McColley added.
Data from the state's campaign finance disclosure portal shows the 501(c)(4) spent about $11.5 million on the groups advocating for abortion access and keeping majority rule on ballot issues in elections. Ohioans United for Reproductive Rights and the organization's prior name Ohioans For Reproductive Freedom received about $6.4 million. One Person One Vote got around $5.1 million. Another $550,000 was spent on redistricting reform group Citizens Not Politicians.
The fund, although it doesn't have to disclose its donors, has received over $200 million dollars from Swiss billionaire Hansjorg Wyss since 2016, according to the Associated Press.
"I don't know that it would have made a difference in either of those issues elections," the Republican said about outlawing foreign dollars that helped those issues win in 2023. "But I think it's probably pretty widely supported that we shouldn't have foreign money interfering in our elections."
Legislation like this is already in effect federally, and it also applies to candidates in Ohio — just not ballot initiatives.
Democrats say that the Republicans who introduced this measure are just mad about their losses.
"They are sore losers from last year and they're trying to make it more difficult again," state Sen. Bill DeMora (D-Columbus) said.
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Foreign interference is a problem, especially because of the GOP and its ties to Russia and Saudia Arabia, the Democrat said. But this bill goes too far with malicious intention, he said.
S.B. 215 requires all groups supporting a cause and collecting signatures to be designated as a PAC, and must follow the same laws as one. This means that groups would have to file disclosures with the government, and it could make it more difficult to collect signatures to get a proposal on a township ballot.
The bill also prohibits a lawful permanent U.S. resident, also known as a green card holder, from making contributions or expenditures regarding ballot issues or candidates.
"This would affect the neighborhood groups trying to get a stop sign, would affect liquor options," DeMora added. "What they're trying to do is hurt citizen groups."
All three ballot proposals that passed in 2023 were started because voters weren't happy with the state legislature, and didn't feel like their voices were being heard. The August special election was proposed by lawmakers because they didn't want abortion to become legal — a direct result of the angry voices of citizens.
"It gives them their good punch lines because a liberal donor gave to these groups, but it's all intended to hurt citizens — citizens that don't want their government to do what it's doing and try to protest against it," the Democrat added.
No one is hurting grassroots movements, McColley argued, this is about transparency.
"If you're going to collect and spend money in support of signature gathering, in support of a ballot initiative, you got to report your money," he said.
During the committee process, Heritage Action for America, a conservative policy organization, gave testimony about the problems with out-of-country donors.
"Prohibiting foreign nationals from contributing to ballot issue campaigns ensures Ohioans' voices are not diluted, and decisions about Ohio’s Constitution and laws are based on the voices of its citizens — not foreign billionaires," said Heritage Action's Catherine Gunsalus.
Statehouse reporter Morgan Trau asked McColley if the state should be preventing out-of-state donors as well so that only Ohioans had a say — as Heritage Action said.
"As United States citizens, they're protected under the First Amendment that we all enjoy," he responded. "In that case, it means that they can contribute politically to many of these campaigns."
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When individuals are donating from out of state, their name goes on disclosure forms, he added.
"At the very least, we can be thankful that we have that kind of disclosure," he said.
The bill passed along party lines, 25-7. It now heads to the House.
Transparency and Ohio
Recent events at the Statehouse have helped keep government transparency, or lack thereof, at top of mind for Ohio residents and lawmakers.
Last June, former Ohio House Speaker, and now convicted felon, Larry Householder was sentenced to 20 years in prison for his role in the largest bribery scheme in state history. He was able to achieve his scheme by utilizing the dark money group Generation Now to funnel $61 million from utility giant FirstEnergy into his pockets to provide them with a $1 billion bailout to help their failing company.
This bribery scandal has been covered extensively by News 5's Morgan Trau, who followed the legislation all the way through the Statehouse, the arrests, trial, conviction and sentencing of Householder and former GOP leader Matt Borges. She continues to follow it as the next group are indicted federally and by the state.
Both Democrats and Republicans in the House have since introduced legislation to require dark money groups to identify their contributors and disclose their spending.
Trau asked McColley how he feels about PACs since the Householder scandal, and if he would be interested in going further to stop dark money.
"It's something that has been an ongoing discussion, especially since the Generation Now," the Republican said. "It's worth a conversation for sure."
The challenging part of exposing secret-money entities is the First Amendment concerns with the Citizens United v. FEC decision, he added. This controversial case decided that corporations are people when it comes to campaign finance and that money is speech.
Householder is invoking the Citizens United case to argue his First Amendment rights were violated when the feds found out he took a bribe, an argument that Senate President and attorney Matt Huffman, a fellow Republican, thinks is “absolutely ridiculous.”
"I think there's an appetite to discuss some of this stuff further," McColley said.
McColley is likely to be the next Senate president once this General Assembly ends at the beginning of 2025, so it is possible legislation could move if he and his caucus desires additional reform.
Follow WEWS statehouse reporter Morgan Trau on Twitter and Facebook.
