Democratic Senatorial Campaign Committee v. Federal Election Commission, National Republican Senatorial Committee, Intervenor

660 F.2d 773, 212 U.S. App. D.C. 374, 1980 U.S. App. LEXIS 13249
CourtCourt of Appeals for the D.C. Circuit
DecidedOctober 9, 1980
Docket80-2074
StatusPublished
Cited by8 cases

This text of 660 F.2d 773 (Democratic Senatorial Campaign Committee v. Federal Election Commission, National Republican Senatorial Committee, Intervenor) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Democratic Senatorial Campaign Committee v. Federal Election Commission, National Republican Senatorial Committee, Intervenor, 660 F.2d 773, 212 U.S. App. D.C. 374, 1980 U.S. App. LEXIS 13249 (D.C. Cir. 1980).

Opinions

Opinion PER CURIAM.

Dissenting opinion filed by Circuit Judge WILKEY.

PER CURIAM:

This case calls for construction of the Federal Election Campaign Act of 1971 (FECA) and its 1974 and 1976 Amendments, 2 U.S.C. § 431 et seq.1 Under a provision of the Act that permits the State committees of the political parties to make expenditures on behalf of senatorial candidates,2 a num[774]*774ber of Republican State committees have executed agreements by which they purport to designate the National Republican Senatorial Committee (NRSC) as their agent for purposes of making expenditures up to the legal limits. The Democratic Senatorial Campaign Committee (DSCC) has challenged this practice as contrary to the letter and purpose of the applicable statutory provisions. The DSCC first sought relief by filing a complaint with the Federal Election Commission (FEC), which upheld the legality of the “agency” agreements.3 Assuming that it must sustain Commission decisions not shown to be arbitrary and capricious, the District Court granted the FEC’s motion for summary judgment.4 Because we believe that both the FEC and the District Court misconstrued the applicable law, we reverse.

I. FACTUAL AND PROCEDURAL BACKGROUND

A. Agency Agreements

The Federal Election Campaign Act, as amended, imposes limitations on campaign contributions and expenditures by individuals and by various kinds of political committees. Section 441a(d)(3), the provision centrally at issue in this case, provides for campaign spending by State and national committees of the political parties:

(3) The national committee of a political party, or a State committee of a political party, including any subordinate committee of a State committee, may not make any expenditure in connection with the general election campaign of a candidate * * * which exceeds—

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(i) 2 cents multiplied by the voting age population of the State * * *.

Although phrased in restrictive terms, Section 441a(d)(3) is in fact a grant of permission: It permits the national and State committees to make expenditures that would otherwise be prohibited.5

As it has done in each campaign since 1976, the Republican National Committee has designated the NRSC as its agent, authorized to make the expenditures permitted to the national committee by Section 441a(d) in all senatorial elections.

Various State committees of the Republican Party have also designated the NRSC as their agent under Section 441a(d). As in the case of the national committee, their agency agreements purport to transfer to the NRSC spending authority conferred under Section 441a(d)(3).6 In the 1978 senato,rial elections, during which the State committees commissioned the NRSC as their agent for the first time, the NRSC spent a total of $2,770,995 under the combined spending authority of the national and State party committees.7 Most of the money went into 12 closely contested races, in which the NRSC spent $2,180,499. Of this sum, $1,106,286.60 was attributable to its expenditures as agent for the national committee, the remaining $1,074,213.40 to expenditures as agent of various State committees.

Agency agreements related to 1980 contests purport to authorize the NRSC to spend even larger sums. There are Senate races in 34 States, whose 34 Republican State committees have a composite spending ceiling of $3,487,020.80 under Section [775]*775441a(d)(3).8 A number of these State committees have designated the NRSC as their authorized spending agent. In California alone, the NRSC will be able to spend up to $485,024 as the agent of the State committee, and a total of $970,048 in its capacity as dual agent of the State and national committees. In New York the comparable figures are $379,717.12 and $759,434.24.

B. Proceedings Before the Federal Election Commission

On May 9 of this year the Democratic Senatorial Campaign Committee filed a complaint with the Federal Election Commission in which it challenged the legality of the agency agreements entered by the NRSC and the various Republican State committees.9 In its accompanying memorandum of law,10 the DSCC argued that the challenged arrangements violate the plain meaning of Section 441a(d)(3), which provides separate spending limits for State and national party committees and makes no reference to agency. The DSCC claimed that a clear purpose of the statutory scheme was to create an incentive to the development of vigorous State party organizations. The DSCC did not challenge the agency agreement between the NRSC and the Republican National Committee, since the FEC at that time interpreted a Commission regulation, 11 C.F.R. § 110.7, to authorize such agreements.11 Moreover, the DSCC itself has made an agency agreement with the Democratic National Committee.

The Commission dismissed the complaint. Although it gave no reasoned explanation of its decision, the FEC acted after receipt of a report from its General Counsel.12 The “First General Counsel’s Report” stated that this was the third time that a complaint of this kind had come before the Commission. Although it recommended the same result that the FEC had reached in the prior cases,13 the report suggested that the General Counsel’s emphasis shifted over the course of the various proceedings.14 In the first proceeding the General Counsel had attributed importance to the absence of any express statutory prohibition of agency arrangements. In this case, however, the General Counsel placed greater reliance on an inference of congressional intent apparently drawn from a related section of the Federal Election Campaign Act, Section 441a(a)(4). That provision allows for unlimited transfers of money between and among political committees of the same party, as defined by the statute.15 Assuming that the NRSC was a committee of the Republican Party within the meaning of Section 441a(a)(4), the General Counsel reasoned that, because the NRSC could lawfully transfer money to the State committees, which the State committees could then spend up to a limit of 2 cents per resident of voting age, the statute must have intend[776]*776ed that the NRSC could itself make expenditures up to that limit while acting as the agent of the State committees.16 The General Counsel also cited the more general argument that the provision permitting expenditures by the State and national party committees was intended to be “broad”— broad enough to permit the pooling of large numbers of small contributions made to the political parties and their various committees. After receiving the General Counsel’s report on July 8, the Commission rendered its judgment on July 10.17

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660 F.2d 773, 212 U.S. App. D.C. 374, 1980 U.S. App. LEXIS 13249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/democratic-senatorial-campaign-committee-v-federal-election-commission-cadc-1980.