Legal Document

459 U.S. 197 103 Supreme Court Reporter 552 74 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 364 FEDERAL ELECTION COMMISSION, et al., Petitionersv.NATIONAL RIGHT TO WORK COMMITTEE al. Number 81-1506. Argued Nov. 1, 1982. Decided Dec. 13, Syllabus The Federal Election Campaign Act of 1971, 2 Code KF62 § 441b(a) prohibits corporations and labor unions from making contributions or expenditures in connection with federal elections. section, however, permits some participation by the electoral process allowing these organizations to establish pay expenses "separate segregated funds" which may be used for political purposes during restricts operations such funds several respects. Of most relevance here, §§ 441b(b)(4)(A) 441b(b)(4)(C) provide that a corporation without capital stock solicit fund it has established only "members" corporation. During 1976 respondent National Right Work Committee (NRWC), stock, solicited 267,000 persons separate sponsored. Petitioner, Commission, determined NRWC's solicitation violated Act, because had were not its members. Among other things, letters did mention membership, articles incorporation disclaim existence members, members play no part operation administration Held: NRWC insufficiently attached qualify as under Act. Pp. 201-207. This interpretation does raise constitutional difficulties. First Amendment associational rights asserted are overborne interests Congress sought protect enacting 441b. provision marks culmination careful legislative adjustment laws prevent both actual apparent corruption reflects judgment special characteristics require prophylactic measures. 207-211. 214 U.S.App.D.C. 215, 665 Reporter, 2nd 371, reversed. Charles N. Steele, Washington, D.C., petitioners. Richard Haw. Hawai‘i KFH45 A2 Mansfield, III, respondents. Justice REHNQUIST delivered opinion Court. 1 question case ultimately comes down whether ("NRWC") limited within meaning 441b(b)(4)(C).1 In April 1977, petitioner, Commission ("the Commission"),2 there was probable cause believe above-cited provisions soliciting who "members." Shortly thereafter, filed complaint District Eastern Virginia seeking injunctive declaratory relief against Commission. One month later, an enforcement proceeding Columbia, respondent's violation actions consolidated latter court, granted summary favor on basis stipulated facts. 501 F.Supp. 422.3 reversed Appeals Columbia Circuit, 371 (1981), we certiorari. --- ----, 102 1766, 72 172 (1982). 3 Respondent is nonprofit organized Commonwealth Virginia. Given central role congressional use word "member" this litigation, useful set forth organizational history detail. 1975, predecessor another merged; merger successor stated "shall have members." A similar statement contained presently Likewise, bylaws make reference membership purpose NRWC, according incorporation, "[t]o help public aware fact American citizens being required, their will, join dues order earn living. . ." Pet.App. at 17a. pursuance objective, regularly mails messages millions individuals businesses whose names found way onto commercially available mailing lists organization purchased rented. do but seek donations publicize opposition compulsory unionism frequently contain questionnaire recipient requested answer return. 4 late comply 441b fund, see 441b(b)(4)(C),4 "to receive behalf candidates." denominated "Employees Rights Committee" ("ERCC"); completely subsidized treasury, paid all establishing administering contributions. 1976, sent individuals, one time contributed it, ERCC. As result solicitations, received $77,000 5 October, lobbying group, Effective Congress, ERCC alleging 441b(b)(4). section using corporate stockholders, executive administrative personnel, families. deny assertions, took position recipients proviso 441b(b)(4)(C). occurred, after completing investigative procedures out statute unsuccessfully attempting resolve matter through conciliation, 437g, authorized filing civil suit. litigation followed. 6 Essential proper resolution 441b(b)(4)(C)'s prohibition shall "a [a stock] (Emphasis added). rejected Commission's contentions regarding "member," went hold term "embraces least those whom describes active supporting Pet. 10a. indicates construction reached concern implications any narrower construction. 6a-10a. explained below, reject 7 statutory 441b, outlined above, prohibit 441b(a). them funds," "utilized purposes." 441b(b)(2)(C). funds, unlawful than "stockholders families personnel families." 441b(b)(4)(A). Finally, just quoted own proviso, states pertinent "[t]his paragraph members" sponsoring effect limit structure. 8 Appeals, noted, construed embrace "at two categories recognized described following terms Appeals: 9 "NRWC attracts publicizing issues relating advertisements, personal contacts, and, primarily, letters. These describe urge assist (by, example, writing legislators), request financial support, ask respond will determine person shares philosophy. who, his response, evidences intention support promoting voluntary qualifies member. responds contributing financially considered member; also contributes sends acknowledgement card classes. regular course operations, newsletters, action alerts, responses individual requests information. They issue surveys asked communicate elected representatives when appropriate. See Joint App., vol. II, 387 seq." 10 view, satisfy requirement 11 insists standards "membership" too fluid insubstantial come argues further they regulation defining term: 12 "(e) 'Members' means currently satisfying requirements organization, trade association, cooperative, stock. member definition if contribution fund." Regulations, Regulations 114.1(e). 13 contends respondent, state dispositive. While feel sufficiently informed attempt exegesis beyond necessary decide case, find relatively easy dispose arguments "members," since our view would virtually excise restriction 14 Section amendments enacted 1976. entire subsection appears floor Senator Allen introduced Senate amendment language: "Mr. President, cure 15 omission bill. It allow cooperative hence, up can membership; stockholders solicit, should allowed That provides. cover bill & N Immigration Nationality Decisions agree filled." 16 suggests nonstock defined, part, analogy business unions. union enduring independently significant attachment required Appeals' determination include anyone responded corporation's essentially random mass mailings would, think, open door unlimited thereby render meaningless limitation 17 We assume, body law corporations, Burks versus Lasker 441 471, 477, 99 1831, 1836, 60 404 (1979), intended various dealing corporations. analogous situation, where taxation "real property" subsidiaries Reconstruction Finance Corporation, said: 18 "We think best accomplished application settled rules what constitutes 'real property,' so long plain, discrimination Government, patently run counter Act." RFC Beaver County, 328 204, 210, 66 992, 995, 90 L.Ed. 1172 (1946). 19 Like property, structure powers defined principally law; provides guidance deciding confined 20 Most apparently permit shareholders corporation, although statutes generally seem form see, e.g., ALI-ABA, Model Nonprofit Corporation (1964); many Board Directors autonomous, self-perpetuating body.5 wide variety treatment subject laws, focus standards, entirely permissible look charter adopted accordance charter. 21 Applying language interpret facts case,6 intend exclusion Although cards either contribute respondents' mailings, themselves Members corporation; elect officials, indeed meetings. There indication exercise control over expenditure Moreover, previously publicly documents explicitly disclaimed circumstances, proviso. 22 Unlike raises insurmountable expressed sort solicitations involved here neither corrupt officials nor coerce holding minority views, goals believed mind issue. so, thought, must given elastic impermissible interference enunciated cases NAACP Button, 415, 83 328, 405 (1963), Village Schaumburg Citizens Better Environment, 444 620, 100 826, 63 73 (1980). Similarly, places considerable reliance Buckley Valeo, 424 25, 96 612, 637, 46 659 (1976), that: 23 "The Court's decisions involving freedoms right association 'basic freedom,' Kusper Pontikes, 414 U.S., [51] 57 [94 S.Ct., 303 307, 38 260], 'closely allied freedom speech which, like free speech, lies foundation society.' Shelton Tucker, 479, 486 [, 81 247, 251, 231] (1960). See, Bates Little Rock, 361 516, 522-523 80 412, 416-417, 480] (1960); Alabama, supra, [357 449] 460-461 [78 1163 1170-1171, 1488]; [371 U.S.] 452 [83 347] (Harlan, J., dissenting). fundamental nature associate, governmental 'action curtailing associate closest scrutiny.' " 460-461, 78 1170-1171. 24 Under standard, asserts, Act's cannot upheld. 25 fully subscribe views Buckley, very next sentence passage say: 26 "Yet, clear '[n]either participate activities absolute.' CSC Letter Carriers, 413 548, 567 93 2880, 2891, 37 796] (1973)." 27 conclude 28 To place claims perspective, repeat supra: 29 power regulate elections well questioned parties case." 631, (1976). 30 first government states, ensure substantial aggregations wealth amassed advantages go converted into "war chests" could incur debts legislators aided Automobile Workers, 352 567, 579, 77 529, 535, 563 (1957). second provisions, argues, money candidates having opposed. CIO, 335 106, 113, 68 1349, 1353, 92 1849 (1948). 31 sufficient justify Speaking involvement politics, recently 32 overriding behind enactment Corrupt Practices problem creation debts. importance interest preventing occurrence never been doubted." Bank Boston Bellotti, 435 765, 788, fn. 26, 98 1407, 1422, 55 707 (1978) (Citations omitted). 33 26-27, 638-639, specifically affirmed threatened large eroding confidence appearance corruption. directly implicate "the integrity process, less, responsibility citizen successful functioning process." UAW, 570, 530. 34 convinced prohibitions exceptions tailored avoid undue respondent. movement great detail 570-584, 530-537, need summarize development here. Seventy-five years ago made illegal Tillman Statutes-at-Large 864 (1907). Within few disclosure election, July 1910, 36 822, year pre-election well. August 19, 1911, 25. passed 1925, extended "anything value," acceptance giving crime. 43 1070. 35 restrictions Hatch 54 767 (1940), War Labor Disputes 1943, 167, prohibited altogether. activity strengthened Taft-Hartley 61 136 (1947), broadened earlier "expenditures" codified 86 3, later 1974, 88 1263, 475. is, indicates, merely refinement gradual election statute. "cautious advance, step step," NLRB Jones Laughlin Steel Corp., 301 46, 615, 628, 893 (1937), account particular legal economic attributes warrants deference, Rostker Goldberg, 453 57, 64, 67, 101 2646, 2651, 2652, 69 478 (1981). discuss assessment dangers posed entities process. corruption, aimed regulatory scheme particularly regulation. Morton Salt Co., 338 632, 652, 70 357, 368, 94 401 (1950). resources, more fortunately situated, accept Congress's potential influence demands Nor guess measures evil feared. said California Medical Association FEC, 182, 201, 2712, 2724, (1982), "differing structures purposes" different "may forms process."7 past proved "philosophically compatible" permitted ignore teachings decisions. recognized, 787, n. reason why treating unions, differently individuals. 39 Respondents assert claim unconstitutional vagueness, relying additional Connally General Construction 269 385, 126, 322 (1935); Grayned City Rockford, 408 104, 2294, 222 (1972); Speiser Randall, 357 513, 1332, 1460 (1958); Smith California, 147, 205 (1959). vagueness adequately answered supra. about determining leave room uncertainty periphery exception However, record satisfied toto, people reasonable Broadrick Oklahoma, 601, 2908, 830 (1973).8 40 appear discussion, phrasing tip iceberg. 1971 Act") makes "unlawful with" certain "contribution" broadly, 441b(b)(2)(C), transfer services entities, excluded establishment, administration, utilized stock." goes unlawful, except thereinafter provided, "for independent agency vested exclusive jurisdiction 437c(b)(1) 437d(a) (e). awarded included 441b(b)(4) unconstitutional, refund contributors obtained $10,000 penalty. 54a. controlled union, officers candidates' spent assist. "fund [or corporation] sense strict segregation monies" assets. Pipefitters Local Union 562 States, 407 414-417, 2247, 2264-2265, (1972). 28, 31, 639, commentator stated: license provided respect enhanced loose 'member.' New York offer meaningful 'member' all, instead designate anybody nobody classes freely specify rights, any, bit carefully drawn regard, member, essentially, entitled vote changes." Hansmann, Reforming Law, 129 U.Pa.L.Rev. 497, 578 courts satisfies fund" covered Our decision (1978), consistent conclusion Bellotti struck referenda. Id., 768, 1411. involve constitutionality prohibiting limiting committees, influencing candidate 26. addition, citation (1957); (1948), pointed office, unlike referenda general interest, threat real discussed text, Government relied meritless prior conciliation misleading arbitrary constitute deprivation Due Process. consideration upon remand, inter alia, propriety imposition penalty

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