Becker v. Federal Election Commission

112 F. Supp. 2d 172, 2000 U.S. Dist. LEXIS 13167, 2000 WL 1289210
CourtDistrict Court, D. Massachusetts
DecidedSeptember 1, 2000
DocketCiv.A. 00-11192-PBS
StatusPublished
Cited by1 cases

This text of 112 F. Supp. 2d 172 (Becker v. Federal Election Commission) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Becker v. Federal Election Commission, 112 F. Supp. 2d 172, 2000 U.S. Dist. LEXIS 13167, 2000 WL 1289210 (D. Mass. 2000).

Opinion

MEMORANDUM AND ORDER

SARIS, District Judge.

Plaintiff Ralph Nader is the nominee of a third party, called the Green Party, for President of the United States. Nader together with several individuals and organizations supporting his campaign, 1 brings this action challenging twenty-year-old regulations adopted by the Federal Election Commission (“FEC”), found at. 11 C.F.R. §§ 110.13(a)(1) and 114.4(f)(1) and (3) (“the Debate Regulations”). Arguing that these Debate Regulations permit corporations to make contributions and expenditures to sponsor federal candidate debates in violation of the Federal Election Campaign Act (“FECA”), 2 U.S.C. § 431 et seq., they seek a preliminary injunction to enjoin the FEC from implementing the Debate Regulations. The complaint also asks the Court to order the FEC to enforce the prohibition against the use of corporate money in the staging of federal candidate debates. The first scheduled presidential debate is October 3, 2000.

The FEC has moved to dismiss the complaint for lack of jurisdiction on the following grounds: 1) that its administrative procedures, 2 U.S.C. § 437g, are the exclusive remedy for complaints about violations of the FECA, and that the judicial review section of the Administrative Procedure Act, 5 U.S.C. § 706, is inapplicable; 2) that plaintiffs failed to exhaust their administrative remedies by petitioning the Commission for a rule making on the Debate Regulations; and 3) that none' of the twelve plaintiffs can demonstrate Article III standing.

The Commission on Presidential Debates (“CPD”), a nonprofit corporation which sponsored presidential and vice-presidential debates in 1988, 1992, and 1996, has filed a brief as amicus curiae. The CPD is the sponsor of the October 3 debate. According to the complaint, the CPD has solicited millions of dollars from for-profit corporations to help stage the presidential debates. On January 6, 2000, it announced that Anheuser-Busch will *174 serve as one of the national financial sponsors for its 2000 presidential debates, as well as the sole sponsor for the debate scheduled for October 17, 2000 in St. Louis, Missouri. The CPD argues that the Debate Regulations are necessary to protect the First Amendment rights of private debate sponsors; that plaintiffs have failed to demonstrate wide-spread “influence and corruption” by corporations in CPD decision-making that would amount to irreparable harm; and that the public has a strong interest in having the debates go forward.

After hearing, and review of the submissions, the Court DENIES both motions. Although Mr. Nader and the Green Party have standing, the Court concludes that the Debate Regulations are not contrary to law.

DISCUSSION

1. Statutory Scheme

The FECA makes it unlawful for any corporation 2 “to make a contribution or expenditure in connection with any election” for federal, office. 2 U.S.C. § 441b(a). For purposes of § 441b, the statute defines the term “contribution or expenditure” to include “any direct or indirect payment, distribution, loan, advance, deposit, or gift of money or any services, or anything of value ... to any candidate, campaign committee or political party or organization, in connection with any election” to federal office. Id. § 441b(2). However, it excludes from the definition: (1) communications “on any subject” by a corporation to its stockholders and executive or administrative personnel and their families; (2) “nonpartisan registration and get-out-the-vote campaigns by a corporation aimed at its stockholders and executive or administrative personnel and their families”; and (3) “the establishment, administration, and solicitation of contributions to a separate segregated fund to be utilized for political purposes.” Id. §§ 441b(b)(2)(A)-(C).

The general definition section of the FECA contains definitions of “contribution” and “expenditure.” Both terms include any gift, loan, deposit, or advance of money or “anything of value ... for the purpose of influencing any election for Federal office.” Id. §§ 431(8)(A)(i), 431(9)(A)(i). These definitions exclude “any payment made or obligation incurred by a corporation or labor union which, under § 441 b(b) of this title, would not constitute an expenditure by such corporation or labor organization.” Id. §§ 431(8)(B)(vi), 431(9)(B)(v).

Of great significance to this dispute, the general definition of “expenditure” also excludes “nonpartisan activity designed to encourage individuals to vote or to register to vote.” Id. § 431(9)(B)(ii).

The FEC provided a helpful legislative history. Amendments to the Act in 1974 exempted “nonpartisan activity designed to encourage individuals to vote or to register to vote” from the Act’s general definition of “expenditure.” Id. § 431(9)(B)(ii). In 1976, Congress incorporated into the Act the long-standing prohibition of corporate contributions and expenditures that had been in 18 U.S.C. § 610. Congress included a provision exempting from the definition of “contribution or expenditure” “nonpartisan registration and get-out-the-vote campaigns by a corporation aimed at its stockholders and executive or administrative personnel and their families, or by a labor organization aimed at its members and their families.” Id. § 441b(b)(2)(B).

Recognizing that these amendments, “which were added to the law at different times, overlap in that both-make exceptions to the term ‘expenditure’ for internal communications and for nonpartisan registration and get-out-the-vote activity,” the *175 Conferees explained how they intended this provision to work with the exemption from the general definition of “expenditure” for “nonpartisan activity designed to encourage individuals to vote or to register to vote,” id. § 431(9)(B)(ii):

The conferees’ intent with regard to the interrelationship between sections [2 U.S.C 431(9)(B)(ii) ] and [2 U.S.c.

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Related

Becker v. Federal Election Commission
230 F.3d 381 (First Circuit, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
112 F. Supp. 2d 172, 2000 U.S. Dist. LEXIS 13167, 2000 WL 1289210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/becker-v-federal-election-commission-mad-2000.