A Delaware city wants to let businesses vote in its elections

For local elections in the United States, voting eligibility rules differ from place to place. But usually the baseline requirement is that voters be humans who are alive and voting on their own behalf. Delaware’s city of Seaford clears a significant hurdle in granting businesses a voice in local elections, despite facing opposition and challenges in the State Assembly.

In a groundbreaking move, the city of Seaford, Delaware, is inching closer to rewriting voting eligibility norms by allowing not just living individuals, but also “artificial entities” like businesses, LLCs, partnerships, and trusts, to cast ballots in local elections.

Delaware, often lauded as a haven for companies seeking incorporation due to favorable legal and tax conditions, appears to be extending its embrace further by enabling businesses to partake in the democratic process. However, critics argue that this move potentially undermines the voice of ordinary citizens.

Common Cause Delaware, a prominent citizens’ lobby advocating for voter rights and opposing the influence of money in state government, has voiced strong objections. Claire Snyder-Hall, the organization's executive director, contends that incorporating businesses into the electoral process excessively amplifies corporate voices, describing the move as putting “the idea that corporations are people on steroids.”

Seaford, a city with a population of approximately 8,500, has embarked on an ambitious journey to revive its once-thriving economy. Known as the nylon capital of the world, the city faced economic challenges following the closure of a DuPont nylon factory. Through concerted efforts to develop business parks and revitalize the downtown area, Seaford aims to bolster its economy.

Mayor David Grenshaw, who cast the decisive vote in favor of the proposal in a city council meeting, expressed that Seaford has left no stone unturned in its quest to revitalize the community. The motion, which ended in a 2-2 tie before Mayor Grenshaw’s vote, aims to alter the city’s charter to grant voting rights to businesses and other entities operating and owning property within the city.

To materialize this change, approval from state lawmakers and the governor is indispensable. Though Mayor Grenshaw anticipated a smooth passage, considering precedents set by four other municipalities, the proposal encountered resistance in the Delaware General Assembly.

Initially defeated in the House, the bill was later resurrected and passed, only to face uncertainty in the Senate. With the Senate in recess until January 2024, the proposal's fate hangs in the balance.

Should the proposal eventually pass, an estimated 234 companies could be eligible to vote, as reported by DelawareOnline. This development could substantially sway election outcomes in Seaford, especially considering that only 340 individuals out of over 5,000 registered voters participated in the last municipal election. However, Mayor Grenshaw does not anticipate this proposal drastically altering election outcomes, stating, “If we get a dozen votes out of this, that would be incredible. We do not anticipate this would sway an election.”

Hal Weitzman, author and professor at the University of Chicago’s Booth School of Business, perceives the Seaford case as an anomaly rather than a trendsetter. Nevertheless, it draws attention to Delaware's distinct role in the business landscape. With close to 2 million business entities registered in a state of barely 1 million residents, Delaware’s appeal to companies is unparalleled.

The proposal from Seaford mandates that businesses registering to vote disclose their “beneficial owners”. Additionally, stringent cross-checks would be in place to ensure that each business owning property within the city is entitled to a single vote.

As Seaford forges ahead, the national and global gaze is firmly fixed on this small Delaware city, as it navigates uncharted waters in the intersection between businesses and democratic participation.