Resolved clauseResolved, the stockholders of Molina request the preparation of a report, updated annually, disclosing: 1. Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications. 2. Payments by Molina used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient. 3. Description of management?s decision-making process and the Board?s oversight for making payments described above, including how company handles misalignment between company priorities and policy positions of indirect lobbying group. For purposes of this proposal, a ?grassroots lobbying communication? is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. ?Indirect lobbying? is lobbying engaged in by a trade association or other organization of which HP is a member. Both ?direct and indirect lobbying? and ?grassroots lobbying communications? include efforts at the local, state and federal levels. The report shall be presented to the Audit Committee and posted on Molina?s website.
Whereas clauseWhereas , we believe in full disclosure of Molina Healthcare?s (?Molina?) lobbying activities and expenditures to assess whether Molina?s lobbying is consistent with its expressed goals and stockholder interests. Resolved, the stockholders of Molina request the preparation of a report, updated annually, disclosing: 1. Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications. 2. Payments by Molina used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient. 3. Description of management?s decision-making process and the Board?s oversight for making payments described in sections 2 and 3 above, including how company handles misalignment between company priorities and policy positions of indirect lobbying group. For purposes of this proposal, a ?grassroots lobbying communication? is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. ?Indirect lobbying? is lobbying engaged in by a trade association or other organization of which HP is a member. Both ?direct and indirect lobbying? and ?grassroots lobbying communications? include efforts at the local, state and federal levels. The report shall be presented to the Audit Committee and posted on Molina?s website. Supporting Statement Molina spent $13,770,000 from 2015 ? 2023 on federal lobbying. This does not include state lobbying, where Molina also lobbies but disclosure is uneven or absent. For example, Molina spent $4.2 million on lobbying in California from 2015 ? 2023. Companies can give unlimited amounts to third party groups that spend millions on lobbying and undisclosed grassroots activity, and these groups may be spending ?at least double what?s publicly reported.? [1] Unlike many of its peers, Molina fails to disclose its memberships in or payments to trade associations and social welfare groups (SWGs), or the amounts used for lobbying. Molina belongs to America?s Health Insurance Plans (AHIP), which has spent over $96 million on federal lobbying since 2015, and other trade associations that lobby like the Association of Behavioral Health & Wellness, Florida Association of Health Plans and Texas Association of Health Plans. Molina also has drawn scrutiny for donating to SWGs, including paying $106,250 to Generation Now, which was involved in an Ohio bribery scandal. [2] Molina?s lack of disclosure presents reputational risk when its lobbying contradicts company public positions. For example, Molina is committed to improve the health and lives of our members, yet AHIP has attracted scrutiny for lobbying to weaken Medicare Advantage reforms. [3] And Molina?s values include integrity always, absolute accountability and honest and open communication, yet funded a dark money SWG which was ?used to conceal corrupt payments related to passage of legislation.? [4] We urge Molina to expand its lobbying disclosure. [1] https://theintercept.com/2019/08/06/business-group-spending-on-lobbying-in-washington-is-at-least-double-whats-publicly-reported/ . [2] https://energyandpolicy.org/larry-householder-dark-money/ . [3] https://thehill.com/policy/healthcare/3938311-how-a-lobbying-blitz-led-to-weaker-medicare-advantage-reforms/ . [4] https://www.justice.gov/usao-sdoh/pr/purported-501c4-admits-being-used-conceal-corrupt-payments-related-passage-legislation .