Hispanic Leadership Fund, Inc. v. Walsh

42 F. Supp. 3d 365, 2014 U.S. Dist. LEXIS 119800, 2014 WL 4262888
CourtDistrict Court, N.D. New York
DecidedAugust 28, 2014
DocketNo. l:12-cv-1337 (MAD/TWD)
StatusPublished

This text of 42 F. Supp. 3d 365 (Hispanic Leadership Fund, Inc. v. Walsh) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hispanic Leadership Fund, Inc. v. Walsh, 42 F. Supp. 3d 365, 2014 U.S. Dist. LEXIS 119800, 2014 WL 4262888 (N.D.N.Y. 2014).

Opinion

MEMORANDUM AND DECISION

MAE A. D’AGOSTINO, District Judge:

I. INTRODUCTION

On August 28, 2012, Plaintiffs filed this action asking the Court to find several provisions of the New York State Election Law unconstitutional facially and as applied. See Dkt. No. 1. On the same day, Plaintiffs filed an emergency motion for a preliminary and permanent injunction. See Dkt. No. 4. On October 23, 2012, the Court denied Plaintiffs’ motion for a preliminary injunction. See Dkt. No. 32. On September 26, 2013, 2013 WL 5423855, the Court denied Defendants’ motions to dismiss and for expedited discovery. See Dkt. No. 78. On October 18, 2013, Plaintiffs’ moved for summary judgment, which Defendants have opposed. See Dkt. No. 89.

In light of the upcoming November elections, in a July 2, 2014 Order, the Court summarily granted Plaintiffs’ motion for summary judgment, enjoined Defendants from enforcing the relevant provisions of the New York State Election Law, and indicated that an opinion articulating the rationale for its decision would follow. In accordance with the July 2, 2014 Order, the Court now issues the following Memorandum and Decision explaining its reasons for granting Plaintiffs’ motion.

[369]*369II. BACKGROUND

A. Statutory and regulatory background

To protect against corruption and the appearance of corruption, New York Election Law limits contributions that an individual or corporation may make to candidates and political parties. Schwartz v. Romnes, 495 F.2d 844, 849 (2d Cir.1974). Moreover, to ensure that voters have sufficient information to intelligently participate in elections, to deter corruption, and to enable the New York State Board of Elections (“Board of Elections”) to enforce contribution limits, New York law requires certain organizations that seek to promote the election or defeat of a candidate or ballot issue to register and disclose certain information about themselves and those who contribute to them.

1. Contributions and independent expenditures

New York sets limits on the amount that corporations and individuals may contribute to candidates, parties, and political committees. A corporation doing business in New York may make contributions of up to $5,000 in any year for purposes related to elections for New York State office, local office, or party positions. See N.Y. Elec. Law § 14-116(2). An individual may make contributions, loans, or guarantees of funds of up to $150,000 per year “in connection with the nomination or election of persons to state and local public offices and party positions within the State of New York in any one calendar year.” Id. at § 14-114. In an opinion issued by the New York State Board of Elections, this $150,000 limit applies to “contributions to independent committees[.]” See Dkt. No. 4-7 at 3.

The Election Law defines a “contribution” as follows:

(1) any gift, subscription, outstanding loan (to the extent provided for in section 14-114 of this chapter), advance, or deposit of money or any thing of value, made in connection with the nomination for election, or election, of any candidate, or made to promote the success or defeat of a political party or principle, or of any ballot proposal,
(2) any funds received by a political committee from another political committee to the extent such funds do not constitute a transfer,
(3) any payment, by any person other than a candidate or a political committee authorized by the candidate, made in connection with the nomination for election or election of any candidate, or any payment made to promote the success or defeat of a political party or principle, or of any ballot proposal including but not limited to compensation for the personal services of any individual which are rendered in connection with a candidate’s election or nomination without charge; provided however, that none of the foregoing shall be deemed a contribution if it is made, taken or performed by a candidate or his spouse or by a person or a political committee independent of the candidate or his agents or authorized political committees.

N.Y. Elec. Law § 14-100(9). Therefore, a payment of money to promote the success or defeat of a candidate is not a “contribution” if the payment is “made, taken or performed ... by a person or a political committee independent of the candidate or his agents or authorized political committees.” Id.

2. Political Action Committees

Political Action Committees (“PACs”) are designated by the Board of Elections as “committee type 2, and cannot make expenditures to aid or take part in the nomination, election or defeat of a candi[370]*370date, other than in the form of contributions.” See Dkt. No. 18-27 at ¶ 27 (citing Election Law §§ 14-112, 14-118(1)). According to Defendants, “[t]he reason why committees that only make contributions (PACs) are not required to list candidates being supported or opposed, is that there is no requirement that they comply with candidate limits, as PACs are not authorized committees.” See id. at ¶ 28 (citing Election Law §§ 14-112, 14-114). Moreover, Defendants claim that PACS do not have to list candidates to be supported or opposed, or to disclose whether they are authorized by candidates or not, because contributions made by PACs are subject to the applicable limit of the recipient candidate or that candidate’s authorized committee, and must be disclosed both on the PAC’s campaign finance report, as well as the corresponding recipient candidate/committee’s report. See id. at ¶ 29.

3. Authorized/Unauthorized Committees

An “authorized committee” is the term derived from the Election Law relating to those political committees which are specifically authorized by a candidate to “aid or take part in his election.” N.Y. Elec. Law §§ 14-112, 14-100(9)(3) & 14-104(1)-(2). An unauthorized committee is the term derived from the Election Law relating to, as the name implies, committees not authorized by a candidate to “aid or take part in his election.” Id. This committee is designated as a “Type 9” by the Board of Elections.

Pursuant to the Election Law, “[a]ny political committee aiding or taking part in the election or nomination of any candidate, other than by making contributions, shall file, in the office in which the statements of such committee are to be filed pursuant to this article, either a sworn verified statement by the treasurer of such committee that the candidate has authorized the political committee to aid or take part in his election or that the candidate has not authorized the committee to aid or take part in his election.” N.Y. Elec. Law § 14-112. This authorization statement, which is a single page, is referred to as a CF-03 “Committee Authorization Status” form.

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Bluebook (online)
42 F. Supp. 3d 365, 2014 U.S. Dist. LEXIS 119800, 2014 WL 4262888, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hispanic-leadership-fund-inc-v-walsh-nynd-2014.