OLYMPIA—Two Washington State Democratic senators have introduced a bill on corporate and small businesses influence in politics, stripping these of the ability to fund campaigns or ballot measures and imposing stiff penalties for violations.
Senate Bill 6358, sponsored by Senators Hasegawa and Chapman, was filed March 9, 2026, and sent to the Law & Justice Committee. It could be carried forward to the 2027 legislative session, where it hasn’t yet faced debate or changes as it was introduced passed the 2026 cut-off deadline.
At its core, the bill revokes all broad powers previously granted to corporations under state law, limiting them to essential business operations. Corporations — including for-profits, nonprofits, LLCs, limited partnerships and more — would be barred from “election activity” or “ballot measure activity,” defined as any direct or indirect contributions or spending to support candidates, parties or initiatives.
“Corporations should stick to business, not politics,” the bill implies by declaring any overreach “ultra vires” — beyond authority — and void. Offenders could forfeit key privileges like limited liability and perpetual existence, exposing shareholders, directors and employees to personal financial risks.
The bill also extends to out-of-state firms: If they finance or direct prohibited activities in Washington, they’re deemed to be doing business here, opening them to state enforcement.
Advocates see it as a fix for corporate overreach, protecting democracy from big money. But critics warn it could slash funding for political parties, ballot initiatives, political candidates and advocacy groups, hitting nonprofits hard if their work touches elections.
Existing contracts and debts from before the effective date if passed would remain intact. The bill adds a new chapter to Title 23B RCW, the state’s business corporation act.
If enacted, SB 6358 faces steep federal hurdles under the First Amendment, clashing with existing Supreme Court rulings on free speech and campaign finance. It might also violate the Commerce Clause by burdening interstate operations.
Business heavyweights like the U.S. Chamber of Commerce, tech giants such as Amazon and Microsoft, and political nonprofits could sue preemptively, arguing the bill harms their operations and violates free speech.
Author: Mario Lotmore
