A bill introduced Monday in the Washington state Senate in the final days of the legislative session would have barred corporations from participating in ballot measure campaigns or election activity and penalized them if they did.
Senate Bill 6358, sponsored by Sen. Bob Hasegawa (D-Tukwila), proposed changes to state law that would revoke powers previously granted to corporations under Washington law if they engaged in ballot measure or election activity. The bill language states that corporate powers “do not grant any power to engage in ballot measure activity or election activity” and that any act outside those powers would be considered “ultra vires and void.”
👀WOW😱
With just 4 days left of the session WA Senator Hasegawa drops this game-changer. Literally, changing the game.
This is "we don't like that you might win the game, so we are changing the rules."
A direct attack to shut down Let's Go Washington and others funding… pic.twitter.com/bJbeuUeU6N
— Julie Barrett (@juliecbarrett) March 9, 2026
Under the proposal, a corporation exercising a power not granted under state law could forfeit corporate privileges, including limited liability and perpetual duration. The measure would apply broadly to entities created under Washington law, including corporations, LLCs, limited partnerships, and nonprofits.
Critics said the bill would have had sweeping consequences for businesses, trade associations, nonprofit organizations, and political groups involved in initiative campaigns. Entities that spent money to support or oppose ballot measures or influence elections could risk losing their legal protections under state law.
This is so insane, I think it is a distraction.
Dems want to take the heat off the income tax, so they issue something like this that is crazy, hoping we jump on it.
Hold the line. Stay the course https://t.co/O4QuVPCGKR
— Ari Hoffman (@thehoffather) March 10, 2026
The proposal did not appear to apply in the same way to labor unions, which generally derive their legal status from federal law rather than state corporate law. Because unions are not organized as corporations under Washington statute, opponents argued they would not face the same penalties under the bill.
Hasegawa, who previously served as a Teamsters leader before joining the Senate, introduced the measure with just days remaining in the legislative session.
Senate Majority Leader Jamie Pedersen later said the bill was already dead, but its introduction added to concerns among opponents of Democratic tax legislation that majority lawmakers were considering additional ways to shield major proposals from voter challenge.
Those concerns are centered on an income tax proposal targeting high earners. Opponents note that the tax bill includes a necessity clause, which limits the ability to subject it to a referendum. They also point to another bill this session, SB 5973, which sought to restrict paid signature gathering and impose new requirements on the initiative process before failing amid public backlash.
Taken together, critics argue the measures reflect a broader effort by Democrats to make it harder to challenge legislation at the ballot box and threaten those that do.
