Document: 479 U.S. 238 107 S.Ct. 616 93 L.Ed.2d 539 FEDERAL ELECTION COMMISSION, Appellant,v.MASSACHUSETTS CITIZENS FOR LIFE, INC. No. 85-701. Argued Oct. 7, 1986. Decided Dec. 15, Syllabus Section 316 of the Federal Election Campaign Act (FECA) prohibits corporations from using treasury funds to make an expenditure "in connection with" any federal election, and requires that for such purpose be financed by voluntary contributions a separate segregated fund. Appellee is nonprofit, nonstock corporation, whose foster respect human life defend right all beings, born unborn, through educational, political, other forms activities. To further this purpose, it has published newsletter been distributed contributors noncontributors who have expressed support organization. In September 1978, appellee prepared "Special Edition" exhorting readers vote "pro-life" in upcoming primary elections Massachusetts, listing candidates each state office every voting district State, identifying one as either supporting or opposing appellee's views. While some 400 were listed, photographs only 13 featured, whom identified favoring The publication was staff had no regular newsletter, much larger audience than most members general public, money taken funds. A complaint filed with appellant Commission (FEC) alleging violated § representing corporate distribute public campaign flyer on behalf certain political candidates. After FEC determined there probable cause believe statute, District Court, seeking civil penalty relief. Court granted motion summary judgment, holding did not apply but if unconstitutional violation First Amendment. Appeals held statute applied so unconstitutional. Held: judgment affirmed. 769 F.2d 13, Justice BRENNAN delivered opinion Parts I, II, III-B, III-C, concluding that: 1 1. Appellee's distribution 316. Pp. 245-251. 2 (a) There merit contention preparation does fall within 316's definition "expenditure" provision various things value "to candidate, committee, party organization, election," especially since definitions section FECA broadly defines including anything made "for influencing election office." Moreover, legislative history clearly confirms meant proscribe expenditures election. That makes clear Congress long regarded insufficient merely restrict payments directly organizations. 245-248. 3 (b) An must constitute "express advocacy" order subject prohibition. Here, constituted advocacy," represented express advocacy particular public. 248-250. 4 (c) entitled press exemption under reserved news story, commentary, editorial "periodical publication," even assuming exempt provision, cannot considered comparable single issue view method which distributed. 250-251. 5 2. restriction independent spending appellee, infringes protected speech without compelling justification infringement. concern underlying regulation activity—that organizations amass great wealth economic marketplace gain unfair advantage marketplace—is absent regard appellee. formed disseminate ideas, capital. It shareholders persons having claim its assets earnings, obtains organization's purposes. established business corporation labor union, policy accept entities. 256-265. 6 BRENNAN, joined MARSHALL, POWELL, SCALIA, concluded Part III-A practical effect applying discouraging sufficient characterize infringement Amendment As more extensive requirements stringent restrictions would incorporated. These include detailed recordkeeping disclosure obligations, requirement complex formalized limitation can solicited contributions, create disincentive organization engage speech. 251-256. 7 O'CONNOR, agreeing conduct at issue, significant burden comes statute's satisfy, additional organizational restraints imposed upon statute. do Government's informational interest justified interests FEC. 265-266. 8 J., announced unanimous I III-B JJ., joined, III-A, joined. concurring part post, p. 265. REHNQUIST, C.J., dissenting part, WHITE, BLACKMUN, STEVENS, 266. statement, 271. 9 Charles N. Steele, Washington, D.C., appellant. 10 Francis H. Fox, Boston, Mass., 11 SCALIA join. 12 questions decision here arise (FECA Act), 90 Stat. 490, renumbered amended, U.S.C. 441b. first question whether Massachusetts Citizens Life, Inc. (MCFL), financing activity funds, contained If 441b, next application MCFL's constitutional. We hold use prohibited 441b (FEC Commission) complains. * A. 14 MCFL incorporated January 1973 law. Its stated articles incorporation is: 15 "To activities addition lawful act may organized. . ." App. 84. 16 unions. resources come donations "members," fund-raising garage sales, bake dances, raffles, picnics. considers "members" those contributed past indicated activities.1 17 engaged diverse educational designed agenda. organized ecumenical prayer service unborn front Statehouse; sponsored regional conference discuss issues abortion euthanasia; provided speakers discussion groups, debates, lectures, media programs; annual March Life. addition, drafted submitted legislation, become law Massachusetts; testimony proposed legislation; urged contact their elected representatives proposals. 18 began publishing 1973. matter course contributors, and, when permitted, total never exceeded 6,000. irregularly 1978: three times 1973, five 1974, eight 1975, 1976, 1977, four 1978. Id., 88. Each newsletters bore masthead "Massachusetts Life Newsletter," well volume number. typically appeals volunteers information activities, matters results hearings bills constitutional amendments, status outcome referenda, court decisions, administrative hearings. Newsletter recipients usually relevant decisionmakers opinion. B 19 prior 1978 elections. May mailed 2,109 people October 3,119 people, 100,000 copies printed distribution. page headlined "EVERYTHING YOU NEED TO KNOW VOTE PRO-LIFE," admonished "[n]o pro-life candidate win November your September." "VOTE PRO-LIFE" large bold-faced letters back page, coupon clipped polls remind voters name Next exhortation disclaimer: "This special edition represent endorsement candidate." 101. 20 aid reader selecting candidates, listed what correct position issues. "y" supported "n" opposed it. asterisk placed names incumbents "special contribution maintaining 100% record house actively legislation." running primary, featured 13. received triple rating, favorable consistent MCFL. No photograph rating. 21 edited officer newsletters. free charge request 5,986 50,674 others sympathetic asserts remainder areas distribution, insists available public.2 although logotype appear top. words "Volume 5, 3, 1978" apparently handwritten Edition FEC, indicates actual Volume June 1977. spent $9,812.76 publish circulate Edition," 22 maintained found reason occurred, initiated investigation, existed Act. conciliation efforts failed, 437g(a)(6)(A), appropriate 23 Both parties moved judgment. motion, (1) publications could "expenditures" 441b(b)(2); (2) statutory prohibition virtue 431(9)(B)(i), exempts commentary periodical unaffiliated party; (3) MCFL, 589 F.Supp. 646, 649 (Mass.1984). 24 On appeal, Circuit applicable affirmed Court's (1985). certiorari, 474 1049, 106 783, 88 762 (1986), now affirm. II 25 agree outside reach First, we find section's "expenditure." 441b(b)(2) "contribution expenditure" (emphasis added). contends that, supplied nothing However, contains broader "expenditure," term office. 431(9)(A)(i) Since language alone resolve look determine scope "expenditure."3 26 exhaustively recounted predecessors decisions. See Pipefitters v. United States, 407 385, 402-409, 92 2247, 2258-2261, 33 (1972); States Automobile Workers, 352 567, 570-587, 77 529, 530-539, 563 (1957). This explicit expression came 1947, passed Taft-Hartley Act, ch. 120, 304, 61 136, 159, 610 (1970 ed.), criminal prohibiting amended forbade 1946 Report House Special Committee Investigate Expenditures explained rationale amendment, noting undermine basic objective 27 "if assumed 'making contribution' related donating excluded vast herein shown extensively. Of avail prohibit contributing direct yet permit sums his behalf?" H.R.Rep. 2739, 79th Cong., 2d Sess., 40, quoted supra, 581, S.Ct., 536. 28 During debate bill, Senator Taft asked permitted newspaper railway union put out expenditure. replied: "If dues law, yes. exactly railroad itself, stockholders' advertisement against another. Cong.Rec. 6436-6437 (1947). 29 CIO, 335 106, 68 1349, L.Ed. 1849 (1948), narrowed prohibition, permitting weekly CIO News purchasers issue. however, indictment sponsor advertisements commercial television. Distinguishing "is influence party." U.S., 589, 540. 30 enacted portion simply ratified existing understanding 610. Pipefitters, 410-411, 2262. Representative Hansen, declared: 31 "The carry intent 610, active electioneering directed election." 117 43379 (1971). concluded: 32 net therefore, tighten clarify provisions title 18, Code, codify case law." Ibid.4 Thus, fact uses phrase while evidence abandoned restriction, force therefore argument 34 argues necessarily incorporates communication "expressly advocate" advocacy. relies Buckley Valeo, 424 1, 96 612, 46 659 (1976), upheld individuals groups committees. 434(c). There, avoid problems overbreadth, encompassed "only used communications expressly advocate defeat 80, 663 (footnote omitted). was: 35 "[T]he distinction between often dissolve application. Candidates, incumbents, are intimately tied involving proposals governmental actions. Not basis positions issues, campaigns themselves generate interest." 42, 645 36 similar construction intrusive regulates spending. also hold, constitutes advocacy." 37 adopted distinguish pointed exhortations persons. finding depended "vote for," "elect," "support," etc., Buckley, 44, n. 52, 52. Just appears Edition." urges identifies provides specific fitting description. mere nature raise politicians. Rather, directive: these (named) message marginally less "Vote Smith" change essential nature. goes beyond electoral disclaimer negate fact. thus falls squarely represents 38 Finally, 431(9)(B)(i) 39 "any facilities newspaper, magazine, publication, unless owned controlled party, 40 maintains publication" definition, should just another continuing series. sparse; Representatives' states 41 "make plain present legislation limit way amendment freedoms association. [The exemption] assures unfettered newspapers, TV networks, cover comment campaigns." 93-1239, (1974). 42 need decide because, is, newsletter. previous subsequent newsletter's audience, group size characteristic associated normal publication. flyer, despite apparent belated attempt otherwise, number series 43 protests determining reference factors inappropriately focuses superficial considerations form. precisely combination flyers publications. inquiry essential, notion entities happen automatically entitles exemption. contrary open door unions in-house unlimited treasuries material thereby eviscerating 441b's prohibition.5 44 sum, turn constitutionality III 45 Independent " 'at core our process freedoms.' 39, 644 (quoting Williams Rhodes, 393 23, 32, 89 11, (1968)). National Conservative Political Action Committee, 470 480, 493, 105 1459, 1466, 84 455 (1985) (NCPAC ) (independent "produce Amendment"). burdens speech, so, interest. 44-45, 646-647. minimizes impact rights emphasizing remains establish fund, composed earmarked donors, absolute substantial one. speak very efforts. 47 incorporated, obligations specified 434(c), prescribes duties "[e]very person (other committee)."6 434(c) during year exceeding $250 must: identify contribute given over $200 aggregate elections, 434(c)(1); disclose address aggregate, along indication oppose 434(c)(2)(A); furthering expenditures, 434(c)(2)(C). All unincorporated major advocacy, occasionally regulations. 48 Because "separate fund" wishes whatsoever. §§ 441b(a), (b)(2)(C). fund "political committee" 431(4)(B), result, regulated though means comply several mentioned. Under 432, appoint treasurer, 432(a); ensure forwarded treasurer days receipt, depending amount contribution, 432(b)(2); see keeps account regardless amount, excess $50, committees, disbursement 432(c); preserve receipts disbursements records years, 432(c), (d). 433, file statement containing name, address, custodian records, banks, safety deposit boxes, depositories, 433(a), (b); report above days, 433(c); filing written will longer receive nor disbursements, outstanding debts 433(d)(1). 49 434, monthly reports following schedule: quarterly pre-election later 12th day before postelection after months nonelection 434(a)(4)(A), (B). contain regarding cash hand; receipts, different categories; identification committee candidate's authorized affiliated making loans, providing rebates, refunds, dividends, offset operating $200; committees aggregating made; loan repayments refunds sum expenses, settlement terms retirement debt obligation. 434(b). solicit 441b(b)(4)(A), (C), past. Right Work 459 197, 204, 103 552, 557, 74 364 (1982). 50 evident survey regulations Detailed duty impose costs many small unable bear.7 Furthermore, require far manage. Restriction solicitation vastly reduces sources funding few formal members, limiting ability unreasonable suppose case, like-minded might seek dissemination ideas occasional raffles. Such turned away prospect complying Faced assume sophisticated form, adopt accounting procedures, periodic reports, monitor sales lest nonmembers take fancy merchandise display, surprising least decided contemplated worth it.8 51 remove opportunities avenue leaves burdensome forecloses. discourage Freedman Maryland, 380 51, 85 734, (1965), instance, absence procedural safeguards rendered State's film censorship program. procedures necessary, said, matter, them "it prove too review censor's determination." 59, 739. Speiser Randall, 357 513, 78 1332, 1460 (1958), reviewed program taxpayers tax proving they overthrow foreign government country. noted: "In operation, device produce result State command directly. deterrence Constitution free." 526, 1342. same said engaging severely demanding task.9 52 When rights, 31, 10; NAACP Button, 371 415, 438, 83 328, 340, 405 (1963). acknowledgment "the characteristics structure particularly careful regulation." 209-210, 560. Evaluation Commission's close examination longstanding regulation. 53 described recent opinions war chests funneled form," NCPAC, 501, 1470; "eliminate aggregated elections," 416, 2264; curb "those exercise control aggregations capital," 585, 538; regulate "substantial amassed advantages go form organization," 207, 559. 54 corrosive concentrated reflects conviction important protect integrity ideas. acknowledges wisdom Holmes' observation ultimate good desired better reached trade best test truth power thought get itself accepted competition market. Abrams 250 616, 630, 17, 22, 63 1173 (1919) (Holmes, Brandeis, dissenting).10 55 Direct raises provide marketplace. "free trade" participate equal resources. supra (invalidating limits committees); 39-51, 644-650 (striking down 1971 Act). Relative availability rough barometer support. popular corporation's They reflect instead economically motivated decisions investors customers. formidable presence, reflection 56 By requiring spending, seeks prevent threat treasury, committee. acknowledged sponsor, 'underlying theory' 'is diverted purposes,' collected intended purposes source." 423-424, 2268-2269 43381 (1971)).11 582, 536 (Congress added proscription Corrupt Practices deemed corroding employed power"). among actors arena truly 57 Regulation reflected about per se, potential deployment purposes.12 Groups pose danger corruption. function success marketplace, popularity derive redound benefit profit-making enterprise. short, type "traditional corporatio[n] gain," 500, 1470, focus activity. 58 inclusion nonprofit 441b: 200, 555. consistently (1985); California Medical Assn. 453 182, 194, 196-197, 101 2712, 2720, 2721-2722, 69 567 (1981); 20-22, 635-36. 59 light historical role corruption process, broad prophylactic rule nonmember hardly warranting highest protection. demands precision provides. Therefore, desirability justify treating alike 60 prevents individual's individual legitimacy stockholder member 208, 559, 414-415, 2264. But persons, noted, investment gain, authorize ends. because depend income job, enough tell unhappiness redressed leaving union. wholly reasonable establishment contributions. Individuals fully aware purposes, true contributor exact her ultimately put, effective own personal direction. Any involves degree delegation authority manner serves shared contributor. desiring earmark option applicability Cf. 434(c)(2)(C) (entities $200). dissatisfied how stop contributing. 62 general, wish particular. desire cause, want urge opposition solely cause. met, narrowly tailored expenditures: informed purpose. goal protecting minority noted above, Government enjoys greater latitude regulating expenditures. Supra, 259-260. Given contributor's awareness readily remedy refusing donations, 64 inapplicability massive undisclosed entities, conduits danger. Even inapplicable, little trigger required annually specify amounting $200, bound reporting necessary receipt met restrictive imposing full panoply accompany 65 activity, classified 79, 663. such, campaigns. sake treat differently 66 concerns dissent surely second-guess sweep differ degree, kind. Post, 268-269. poses prompted all. Voluntary associations suddenly specter fact, restricting bright-line rule. freedom. insurmountable, constitutionally adequate justification. holding, role, fulfill judicial duty—to enforce Constitution. C 67 Our conclusion acknowledge Congress' Regardless enterprises, us, extend uniformly corporations. Some features akin firms, bear status. particular, promoting fundraising events denominated requests ensures Second, earnings. connected disassociating disagree activity.13 Third, serving creates 70 class affected today small. prospect, diminish significance stake. Freedom plays fundamental democracy; freedom matrix, indispensable condition, nearly freedom." Palko Connecticut, 302 319, 327, 149, 152, 82 288 (1937). pursuit ends, tempt us increments loss unthinkable inflicted once. For reason, vigilant modest diminution sweeping restriction. Where possible, curtail meet problem hand, infringing enacting chosen blunt instrument delicate task. 71 Affirmed. 72 73 join concur (Act), case. write separately, am concerned Act's read moving teaching (1976); ante, 254-255. chilling 66-68, 657-658, group's 74-82, 661-664. "shed[ding] publicity" financing, helping evaluate constituencies 81, 664. disclosing generally "a minimally values opening processes system view." 82, my view, 253-255, significantly eliminates "members." disclosure, reasons Commission. Although invariably insurmountable see, e.g., (1982), failed show expression. basis, 75 Chief STEVENS join, part. 76 560, (1982) (NRWC), unanimously endorsed "legislative continue sound deference, "second-guess determination measures where evil feared." 210, Though accordingly opinion, (MCFL). recognizes, contemporary chapter "long activity." Ante, 256. NRWC, 208-209, 559-560; 570-584, 530-537, approving sort regulation, two legitimate arising rid appearance 207-208, 559; Bank Boston Bellotti, 435 765, 788, 26, 98 1407, 1422, 707 (1978); 570-575, 530-533. pay into unitED 2264, 113, 1353, (1948). confers 495, 1468, (NCPAC), dangers 201, 2724, (1981). rejecting "teachings earlier decisions," Congress,1 confidently concludes here. "Groups MCFL," purposes." 259. told, spends—at expenditures—reflects stands 258-260. Nor Individual withhold choices; give notice 261-262. 79 dispute vary corporation; obvious successful chest potent nonbusiness corporations' views frequently average shareholder General Motors corporation. distinctions corporations, "distinctions degree" "differences kind." 30, 640, (1976) (per curiam). 498-499, 1469-1470. properly drawn Legislature Judiciary. 640. posed warrants measure organize cases reluctance fine-tune judgments; adhere counsel 80 largely foreclosed supra. 441b(b)(4)(C) unlike MCFL—a capital stock, educate perceived significance. 199-200, solicitations involved "would neither corrupt officials coerce 206, 558. difficulty approach unnecessary "considerable deference." 209, Most significantly, declined invitation modify corporations: "While restricts resources, fortunately situated, saw why preventing both "be accomplished unions, individuals." 210-211, 560-561. 81 noncorporate diminished fatally overbroad $1,000 9012(f) committees." rested rather "indiscriminately lump[ed] 'committee, association organization.' 1470. NCPAC continued recognize been, until today, acceptable distinction, grounded branch, benefiting shield [has] quid pro quo Against Rent Control Berkeley, 454 290, 300, 102 439, 492 (1981) (REHNQUIST, concurring).2 explains NRWC decisions—that 19-23, 634-636. admittedly facts warrant approval limitations line separating black white. here—though expenditures—is drastic "wholesale conduct" otherwise unregulated receives, limit, expenditures.3 correctly notes, burdens, character condemned NCPAC. circumstances, defer congressional distinct category permissible.4 basically dramatically illustrated effort carve niche "[g]roups MCFL." three-part gratuitously today's dicta, 263-264, adds well-defined vague barely adumbrated exception confusion costly litigation. sat council revision judgments, hesitate alone. sit capacity; obliged leave drawing lines bounds. Believing passes test, conclusion. joining THE CHIEF JUSTICE's adheres (1978), concedes "member" "some relatively enduring independently financial attachment" 557. affidavit she obtained copy statewide Organization Women, stack 200 174. appears, 431(9)(B)(v) says shall 431 441b(b). argues, candidate. puzzling, subsection purport define payment eliminate ambit definition. answer lie "include" specifically enumerated nonetheless event, speculation signals face dispositive. (1971) (remarks Rep. Hays); id., 3383-43385 Thompson); 43388-43389 Reps. Steiger Gude). entity lower courts exemption, letter soliciting subscriptions, Phillips Publishing Co., 517 1308, 1313 (DC 1981), publicity, Reader's Digest 509 1210 (SDNY 1981). "under nomination undisputed fits descriptions. central engages "will deter contribute," 68, 658, interests. 657-658. increased responsibilities speak. 1980 conclusion, inhibited due inability date. feasible forgo Regan Taxation With Representation, 461 540, 1997, 129 (1983), conducted rights. Regan, lobbying deductible. chose set up arm, eligible tax-deductible infringe subsidized Government. 545-546, 2000-2001. contrast, discouraged market metaphor guided area limited instrumental role. Brandeis concurrence Whitney California, 274 357, 375, 641, 648, 1095 (1927): "Those won independence believed final end men develop faculties; deliberative forces prevail arbitrary. valued liberty means." danger, prominent example enjoy legal enhancing accumulate wealth. possible firm description "careful adjustment laws, 'cautious advance, step step,' owe considerable deference. NLRB Jones & Laughlin Steel Corp., 301 46, 615, 628, 893 (1937)). distinguishable complete foreclosure opportunity invalidated referendum context (1978). deprive wishing "financial 557 financially possessed text. course, like unlawful 441b(a) Other scheme "without stock" regulatory sphere. 441b(b)(4)(C). construction, rejects appropriate. Only once restricted Bellotti consider validity aimed 26. fund's 441b(b)(4), dollar

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