James E. Akins v. Federal Election Commission

101 F.3d 731, 322 U.S. App. D.C. 58
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 3, 1997
Docket94-5088
StatusPublished
Cited by77 cases

This text of 101 F.3d 731 (James E. Akins v. Federal Election Commission) 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
James E. Akins v. Federal Election Commission, 101 F.3d 731, 322 U.S. App. D.C. 58 (D.C. Cir. 1997).

Opinions

Opinion for the Court filed by Circuit Judge SILBERMAN.

Dissenting opinion filed by Circuit Judge SENTELLE.

SILBERMAN, Circuit Judge:

Appellants challenge the district court’s grant of. summary judgment. The court affirmed the Federal Election Commission’s dismissal of appellants’ administrative complaint, which had alleged that the American Israel Public Affairs Committee (AIPAC) was a “political committee” subject to relevant reporting and disclosure requirements and contribution and expenditure limits of the Federal Election Campaign Act (FECA), 2 U.S.C. §§ 431-55 (1994 & Supp.1996). The court thought reasonable the Commission’s definition of “political committee” as including only organizations that, in addition to meeting the statutory $1,000 expenditure threshold, have as their major purpose campaign related activity. We reverse.

I.

James E. Akins, Richard Curtiss, Paul Findley, Robert J. Hanks, Andrew Killgore, and Orin Parker (collectively appellants) are former ambassadors, congressmen, or government officials. They are registered vot[734]*734ers and “politically active persons who ... oppose AIPAC views on U.S. foreign policy in the Middle East” and who “compete with AIPAC in seeking to influence the views and actions of members of Congress, executive policymakers, and the public.” Paul Findley is a former congressman from Illinois “widely perceived to be friendly to the Arab cause”; AIPAC is alleged to have helped to defeat him in the 1982 congressional election. AIPAC is an incorporated, tax-exempt organization with approximately 50,000 supporters nationwide and a budget of about $10 million (as of 1989) that lobbies Congress and the executive branch for military and economic aid to Israel and generally encourages close relations with Israel.

Appellants filed a complaint with the FEC in 1989, alleging inter alia that AIPAC had made campaign contributions and expenditures in excess of $1,000 and was therefore a political committee. A political committee is defined as “any committee, club, association, or other group of persons which receives contributions aggregating in excess of $1,000 during a calendar year or which makes expenditures aggregating in excess of $1,000 during a calendar year.” 2 U.S.C. § 431(4)(A) (emphasis added). “Expenditure” is defined in turn as “any purchase, payment, distribution, loan, advance, deposit, or gift of money or anything of value, made by any person for the purpose of influencing any election.” 2 U.S.C. § 431(9)(A)(i). Expenditures have been classified by caselaw and FEC interpretation to include three categories: independent expenditures not connected to any candidate, coordinated expenditures made in cooperation or consultation with a candidate, and direct contributions to a candidate. Once designated a political committee, an organization must file periodic reports disclosing all receipts and disbursements and identifying each individual to whom it gives or from whom it receives more than $200. See 2 U.S.C. § 434(b)(2)-(5). And it is prohibited from contributing more than $1,000 to any candidate. See 2 U.S.C. § 441a(a). Appellants claimed that AIPAC met the statutory definition of political committee because, for example, it used full-time staff to meet with nearly every candidate for federal office, systematically disseminated campaign literature including candidates’ position papers, and conducted regular meetings and phone calls with AIPAC supporters encouraging them to provide aid to particular candidates. Since these activities cost more than $1,000, AIPAC’s failure to register as a political committee and comply with the requirements was a violation of the Act. See 2 U.S.C. §§ 433; 434(a)(1), (b); 441a(l), (2).

The General Counsel investigated the allegations and issued a report in 1992, making recommendations that were subsequently adopted by the Commission. The Commission determined that AIPAC likely had made campaign contributions exceeding the $1,000 threshold, but concluded that there was not probable cause to believe AIPAC was a political committee because its campaign-related activities were only a small portion of its overall activities and not its major purpose. The campaign activities were only conducted in support of its lobbying activities. No precedent was cited or rationale given, in the General Counsel’s brief, his report, or the Commission’s order, to support this interpretation of the statutory definition of “political committee.” The Commission did find probable cause to believe that AIPAC violated § 441b, which generally prohibits campaign expenditures and contributions by corporations, but voted to take no action because it thought it was a close question whether AI-PAC’s expenditures were made in the course of communicating with its members, an exception to § 441b’s prohibition. It therefore dismissed the complaint and closed the case.

Appellants sued in the district court pursuant to § 437g(a)(8), an unusual statutory provision which permits a complainant to bring to federal court an agency’s refusal to institute enforcement proceedings, cf. Heckler v. Chaney, 470 U.S. 821, 831, 105 S.Ct. 1649, 1655-56, 84 L.Ed.2d 714 (1985), challenging the Commission’s interpretation of the term “political committee.”1 The Com[735]*735mission responded that the Supreme Court, concerned with the Act’s burdens on political speech, had narrowed the term’s statutory definition in Buckley v. Valeo, 424 U.S. 1, 96 S.Ct. 612, 46 L.Ed.2d 659 (1976), and FEC v. Massachusetts Citizens for Life, 479 U.S. 238, 107 S.Ct. 616, 93 L.Ed.2d 539 (1986) (MCFL). The Commission read these opinions — at least it so asserted in district court — as holding that an organization is a political committee only if its major purpose is the influencing of federal elections. Therefore, notwithstanding the plain language, the Commission claimed it interpreted the statute at least reasonably.

The district court agreed. Combining the Supreme Court’s opinions (and our decision in FEC v. Machinists Non-Partisan Political League, 655 F.2d 380 (D.C.Cir.), cert. denied, 454 U.S. 897, 102 S.Ct. 397, 70 L.Ed.2d 213 (1981)), with Chevron U.S.A Inc. v. Natural Resources Defense Council, 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984) deference, the court concluded that the Commission’s construction was “reasonable.” A divided panel of this court affirmed. The FEC had not originally challenged appellants’ standing, but the panel sua sponte

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101 F.3d 731, 322 U.S. App. D.C. 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-e-akins-v-federal-election-commission-cadc-1997.