AMERICANS FOR PROSPERITY v. GREWAL

CourtDistrict Court, D. New Jersey
DecidedOctober 2, 2019
Docket3:19-cv-14228
StatusUnknown

This text of AMERICANS FOR PROSPERITY v. GREWAL (AMERICANS FOR PROSPERITY v. GREWAL) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AMERICANS FOR PROSPERITY v. GREWAL, (D.N.J. 2019).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY ____________________________________ : AMERICANS FOR PROSPERITY, : : : Plaintiff, : v. : Case No. 3:19-cv-14228-BRM-LHG : : GURBIR GREWAL, in his official capacity : As Attorney General of New Jersey, et al., : : OPINION Defendants. : _________________________________________ :

MARTINOTTI, DISTRICT JUDGE Before this Court is a Motion for a Preliminary Injunction (ECF No. 3) to enjoin Defendants Gurbir Grewal, Attorney General of New Jersey, Eric H. Jaso, Chairman of New Jersey Election Law Enforcement Commission (or “ELEC”), and two ELEC Commissioners, Stephen M. Holden and Marguerite T. Simon, (collectively, “Defendants”) from enforcing New Jersey Senate Bill No. 150 (also known as “S150” or “the Act”), which compels disclosure of the identities of donors to “independent expenditure committees” and enforces compliance with the Act’s financial-reporting and money-handling requirements when these groups spend more than $3,000 annually for political communications during a specified reporting period. Plaintiff Americans for Prosperity (“Plaintiff” or “AFP”) claims an injunction is needed because the Act unconstitutionally infringes on its First Amendment rights and because it is unconstitutional as applied to AFP as it will chill its First Amendment rights by deterring potential contributors from donating to AFP. Defendants oppose the Motion, arguing that the Act is constitutional both on its face and as applied to AFP. Pursuant to Federal Rule of Civil Procedure 78(a), the Court heard oral argument on September 17, 2019. Having reviewed the submissions filed in connection with the motion and having heard the arguments of the parties, for the reasons set forth below and for good cause appearing, Plaintiff’s Motion is GRANTED. I. BACKGROUND AND PROCEDURAL HISTORY1 The New Jersey Senate passed legislation identified as S1500 on March 25, 2019.2 (See

Compl. (ECF No. 1) ¶ 3, n.1.) According to a statement by the Senate Budget and Appropriations Committee, this legislation was intended to update “‘The New Jersey Campaign Contributions and Expenditures Reporting Act’ to institute new reporting requirements on certain organizations, and increase the limits on the amount of money that may be contributed by individuals, candidates, and committees to other candidates and committees.”3 S1500 called the organizations pertinent to this action “independent expenditure committees” and amended N.J. Stat. Ann. § 19:44A-3 to define them as any person or entity “organized under section 527 of the federal Internal Revenue Code (26 U.S.C. § 527) or under paragraph (4) of subsection c. of section 501 of the federal Internal Revenue Code (26 U.S.C. § 501) that does not fall within the definition of any other organization”

subject to the pre-existing requirements of N.J. Stat. Ann. § 19:44A-3 and engages in influencing or attempting to influence the outcome of any election or the nomination, election, or defeat of any person to any State or local elective public office, or the passage or defeat of any public question, or in providing political information on any candidate or public question, and raises or expends $3,000 or more

1 Unless otherwise noted, the following facts are taken from Plaintiff’s Complaint and assumed true for purposes of this Opinion.

2 The General Assembly passed an identical version that same day, A1524, 218th Leg., available at N.J. Office of Legis. Serv., https://www.njleg.state.nj.us/bills/BillView.asp?BillNumber =A1524. The bill originally was introduced in 2016 and numbered S2430, 217th Leg. (See Pl. Br., (ECF No. 3-1) at 9 n.4.)

3 See S1500, 218th Leg., available at N.J. Office of Legis. Serv., https://www.njleg.state.nj.us/2018/Bills/S1500/1500_S1.PDF at 1. in the aggregate for any such purpose annually, but does not coordinate its activities with any candidate or political party.4

Pursuant to N.J. Stat. Ann. § 19:44A-8(d)(1) as amended by S1500, these independent groups must file quarterly with ELEC a list of all contributions of more than $10,000 and, pursuant to N.J. Stat. Ann. § 19:44A-8(d)(2), all expenditures of more than $3,000 spent on “influencing or attempting to influence the outcome” of any election, public question, legislation or regulation, or “provide any political information” on any candidate, public question, legislation or regulation. The non-exhaustive list of expenditures that count toward the $3,000 include “electioneering communications, voter registration, get-out-the-vote efforts, polling, and research.” N.J. Stat. Ann. § 19:44A-8(d)(2). The Act amends § 19:44A-3 to define “electioneering communications” as any communication made within the period beginning on January 1 of an election year and the date of the election and refers to: (1) a clearly identified candidate for office and promotes or supports a candidate for that office or opposes a candidate for that office, regardless of whether the communication expressly advocates a vote for or against a candidate; or (2) a public question and promotes or supports the passage or defeat of that question, regardless of whether the communication expressly advocates a vote for or against the passage of the question. The term includes communications published in any newspaper or periodical; broadcast on radio, television, or the Internet or digital media, or any public address system; placed on any billboard, outdoor facility, button, motor vehicle, window display, poster, card, pamphlet, leaflet, flyer, or other circular; or contained in any direct mailing, robotic phone calls, or mass e-mails. N.J. Stat. Ann. § 19:44A-3(u). New Jersey Governor Phillip Murphy (the “Governor”) conditionally vetoed the bill on May 13, 2019, stating that while he commended the Legislature’s attempt to “ensure that so-called

4 See S1500, 218th Leg., Fifth Reprint, at 7, §(t), available at N.J. Office of Legis. Serv., https://www.njleg.state.nj.us/2018/Bills/S1500/1500_R5.PDF (emphasis added). ‘dark money’5 is brought out into the open,” he believed certain provisions “may infringe” rights of free speech and free association protected by the First Amendment of the U.S. Constitution.6 Among the flaws identified by the Governor was that “the bill covers all issue advocacy conducted at any time, regardless of whether the advocacy is connected to an issue before the electorate.”7

As a result, the Governor stated, “It is unclear whether disclosure requirements for communications that are not connected to an election would withstand [] judicial scrutiny.”8 Accordingly, the Governor sent the bill back to the Senate and recommended substantive revisions and the correction of “drafting errors.”9 In response, on June 10, 2019, the Senate passed a bill practically identical to S1500 that was renumbered as S150.10 (ECF No. 1 at ¶ 3, n.1.) The Governor signed S150 into law on June 17, 2019, though he issued a signing statement reiterating the same concerns identified in his conditional veto of the prior bill, but indicating he signed S150 into law “‘based on an express commitment’ from the Legislature to ‘pass legislation removing advocacy in connection with legislation and regulations from its parameters, thereby ensuring that the bill’s disclosure

5 “Dark money” is shorthand for political spending by groups independent of political parties and candidates that are not required to disclose the identities of their donors when they do not coordinate their activities with candidates or political parties.

6 See Conditional Veto, N.J., available at Office of Legis.

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