Indiana Right to Life Victory Fund v. Diego Morales

CourtIndiana Supreme Court
DecidedSeptember 25, 2023
Docket23S-CQ-00108
StatusPublished

This text of Indiana Right to Life Victory Fund v. Diego Morales (Indiana Right to Life Victory Fund v. Diego Morales) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Indiana Right to Life Victory Fund v. Diego Morales, (Ind. 2023).

Opinion

FILED Sep 25 2023, 1:41 pm

CLERK Indiana Supreme Court Court of Appeals and Tax Court

IN THE

Indiana Supreme Court Supreme Court Case No. 23S‐CQ‐108

Indiana Right to Life Victory Fund and Sarkes Tarzian, Inc., Plaintiffs‐Appellants, –v–

Diego Morales, et al., Defendants‐Appellees.

Argued: September 7, 2023 | Decided: September 25, 2023

Certified Question from the United States Court of Appeals for the Seventh Circuit No. 22‐1562

Opinion by Justice Molter Chief Justice Rush and Justices Massa and Slaughter concur. Justice Goff dissents with separate opinion. Molter, Justice.

Pursuant to Indiana Rule of Appellate Procedure 64, we exercised our discretion to accept the following certified question from the United States Court of Appeals for the Seventh Circuit: “Does the Indiana Code—in particular, §§ 3‐9‐2‐3 to ‐6—prohibit or otherwise limit corporate contributions to [political action committees] or other entities that engage in independent campaign‐related expenditures?” In short, our answer is: Yes.

Facts and Procedural History Plaintiff Indiana Right to Life Victory Fund is registered with the Indiana Election Division as a political action committee (“PAC”) headquartered in Indianapolis, Indiana. It is organized as an independent‐ expenditure‐only PAC, known as a “Super PAC.” “Independent expenditure” is a term of art under federal law that refers to disbursements “for a communication expressly advocating the election or defeat of a clearly identified candidate that is not made in cooperation, consultation, or concert with, or at the request or suggestion of, a candidate, a candidate’s authorized committee, or their agents, or a political party committee or its agents.” 11 C.F.R. § 100.16 (emphasis added). As independent‐expenditure‐only PACs, Super PACs are barred under federal law from making contributions to candidates or their campaign committees. Richard Briffault, Super PACs, 96 Minn. L. Rev. 1644, 1647 (2012) (explaining that “a Super PAC can only make independent expenditures and is barred from making direct candidate contributions”).

Plaintiff Sarkes Tarzian, Inc. is registered with the Indiana Secretary of State as a domestic for‐profit corporation, with its principal office in Bloomington, Indiana. It wants to make a $10,000 contribution to the Victory Fund earmarked for the fund’s independent expenditures, but it has not done so because it believes Indiana Code sections 3‐9‐2‐4 and 3‐9‐ 2‐5 prohibit corporate contributions to Super PACs like the Victory Fund.

The Victory Fund and Sarkes Tarzian filed a lawsuit in the U.S. District Court for the Southern District of Indiana against several state officials responsible for enforcing Indiana’s election laws—the Secretary of State,

Indiana Supreme Court | Case No. 23S‐CQ‐108 | September 25, 2023 Page 2 of 12 the Indiana Election Commission, the Indiana Election Division, the Indiana Attorney General, and Indiana county prosecutors. The plaintiffs requested a declaratory judgment that Indiana Code sections 3‐9‐2‐4 and 3‐9‐2‐5 are unconstitutional as applied to contributions like the $10,000 donation Sarkes Tarzian wishes to make to the Victory Fund. They argue these statutes run afoul of the United States Supreme Court’s decision in Citizens United v. Federal Election Commission, 558 U.S. 310, 365, 130 S. Ct. 876, 175 L. Ed. 2d 753 (2010), which held that the First Amendment forbids the government from restricting corporate contributions for independent expenditures. They also asked the district court to enjoin the election officials from enforcing the statutes to prohibit Sarkes Tarzian’s proposed contribution and other contributions like it.

The district court dismissed the plaintiffs’ suit for lack of standing. The court concluded the plaintiffs have not suffered an injury because the statutes at issue have never been enforced against corporate contributions for independent expenditures, and the election officials have disclaimed any intention to do so, both because they do not interpret the statutes as prohibiting the contributions, and because they agree with the plaintiffs that Citizens United precludes any such legislative restriction. Ind. Right to Life Victory Fund v. Sullivan, No. 1:21‐cv‐02796‐SEB‐TAB, 2022 WL 683645, at *7–8 (S.D. Ind. Mar. 8, 2022). The plaintiffs appealed, and the Seventh Circuit reasoned that it “cannot decide whether the Fund has standing to challenge the Indiana Election Code without first determining the Code’s meaning,” and that “inquiry entails its own complexity, as Indiana courts have not yet interpreted the provisions at issue.” Ind. Right to Life Victory Fund v. Morales, 66 F.4th 625, 627 (7th Cir. 2023). Mindful of important principles of federalism and the need for an authoritative answer to a potentially dispositive question, the Seventh Circuit certified the question to our Court under Seventh Circuit Rule 52, and we exercised our discretion to accept that certification under Indiana Appellate Rule 64.

Discussion and Decision The Seventh Circuit asks whether Indiana Code sections 3‐9‐2‐3 to ‐6 prohibit corporate contributions to Super PACs like the Victory Fund. When we interpret a statute, we “give its words their plain meaning and

Indiana Supreme Court | Case No. 23S‐CQ‐108 | September 25, 2023 Page 3 of 12 consider the structure of the statute as a whole.” ESPN, Inc. v. Univ. of Notre Dame Police Dep’t, 62 N.E.3d 1192, 1195 (Ind. 2016). As we do that, we are mindful of both what the statute says and what it does not say. Id.

Here, both sides agree that none of the relevant statutes say anything about corporate contributions to Super PACs for independent expenditures, but the parties disagree about what conclusion follows from that silence. The plaintiffs argue that silence means the contributions are prohibited, and the election officials argue that silence means the contributions are permitted. We agree with the plaintiffs that the plain, unambiguous meaning of the text is that the contributions are prohibited.

I. Corporate contributions to PACs are limited to contributions that are statutorily authorized, which do not include contributions to Super PACs for independent expenditures. Indiana used to ban all corporate political contributions. See State v. Terre Haute Brewing Co., 186 Ind. 248, 115 N.E. 772, 772 (1917) (“No contributions, payments or favors of any kind shall be made, extended by or solicited from any private corporation to promote the success or defeat of any candidate for public office or of any political party or principle or for any other political purpose whatever.” (quoting Act of Mar. 10, 1913, ch. 180, 1913 Ind. Acts 489, 494)). Now, the Indiana Code permits a corporation to “make a contribution to aid in the . . . election or defeat of a candidate,” as well as the success or defeat of political parties and public questions, Ind. Code § 3‐9‐2‐3(a), but only to the extent authorized by sections 4, 5, and 6 of Title 3 (Elections), Article 9 (Campaigns), Chapter 2 (Campaign Contributions), id. § ‐3(b) (“Contributions by a corporation or labor organization are limited to those authorized by sections 4, 5, and 6 of this chapter.”).

“Contribution” is a statutorily defined term that turns on the donation’s recipient and purpose.

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Citizens United v. Federal Election Commission
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City of Vincennes v. Emmons
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State v. Bridenhager
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Jennings v. Rodriguez
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State v. Terre Haute Brewing Co.
115 N.E. 772 (Indiana Supreme Court, 1917)
Indiana Right to Life Victory Fund v. Diego Morales
66 F.4th 625 (Seventh Circuit, 2023)

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Indiana Right to Life Victory Fund v. Diego Morales, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indiana-right-to-life-victory-fund-v-diego-morales-ind-2023.