Where Companies Outnumber Humans 2-1: Delaware’s fight to keep corporations in (or out of) its local elections
November 10, 2024
By: Marley Fishburn
With over 2 million corporations registered in Delaware, it is safe to say the first state is no stranger to the business side of things. Nothing exemplifies the history of Delaware’s relationship with corporations better than when political activist Ralph Nader said, “General Motors could buy Delaware if DuPont were willing to sell it.”
Since the 19th century, the Dupont corporation held a tight grip on Delaware’s economic industry and politics. From 1938 to the 1980s, Dupont operated the world’s largest nylon production plant in the small city of Seaford, Delaware. The plant was the biggest employer in the county until it began to downsize in 1985. This marked the end of the town’s ‘golden age’ and led to decades of financial insecurity. Ever since, the city has had to grapple with its loss of industry and the lasting effects of the plant’s hazardous waste pollution.
Seaford, which now boasts 8,000 residents, recently amended its charter to allow businesses the right to vote in all local elections. Specifically, the amendment will broaden non-resident voting rights to include corporations and entities that own property within city limits.
Several other Delaware towns allow non-resident property owners and other artificial entities to vote in certain elections regarding property taxation and other issues. These are primarily small, seaside communities that rely on short-term beach-front rentals and the tourism industry. The difference here is that Seaford, surrounded by corn fields and chicken houses, is a far cry from a beach renter’s dream. This raises questions about the spread of similar amendments to other rural towns.
Under this amendment, 234 entities will be eligible to vote in Seaford’s municipal elections. In a town where city council races garner less than 350 votes, about 7% of eligible voters actually participate in local elections, this amendment poses significant vote dilution concerns. Seaford Mayor, David Genshaw, says it is unlikely that all eligible entities will exercise their new voting rights. His exuberance for this amendment fails to consider the precedent it will set for the future of U.S. elections.
On June 30th, 2023 the Delaware House passed the amendment with a vote of 35-6 after significant delays and turmoil. House leadership removed the bill from the agenda three times before and House Republicans held hostage Delaware’s $1.4 billion capital budget bill to force Democrats to approve Seaford’s amendment. The legislative session ended without bringing the corporate voting rights bill to the Senate floor. So, for now, Seaford’s charter remains unamended.
Seaford is not the only city in Delaware that has recently grappled with the role of corporations in its local elections. In 2018, residents of Rehoboth Beach pushed back on a proposal to expand corporate entity voting rights. A year later, a Newark property manager voted 31 times (because he controlled 31 LLCs on 31 parcels of land) during a referendum. The city then passed a resolution to stop the voting of artificial entities.
A month before the House vote on Seaford’s charter, Representative Walker introduced a bill that would collectively ban corporate voting in local elections. The bill is sitting on the House Ready List along with 24 other pieces of legislation that have made it out of committee.
The status of corporate voting in Delaware is in flux, but amendments like Seaford’s are raising the issue to the national stage and forcing lawmakers to take a stance.