National Ass'n of Manufacturers v. Taylor

582 F.3d 1, 388 U.S. App. D.C. 190, 37 Media L. Rep. (BNA) 2249, 2009 U.S. App. LEXIS 20237, 2009 WL 2851387
CourtCourt of Appeals for the D.C. Circuit
DecidedSeptember 8, 2009
Docket08-5085
StatusPublished
Cited by153 cases

This text of 582 F.3d 1 (National Ass'n of Manufacturers v. Taylor) 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.

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National Ass'n of Manufacturers v. Taylor, 582 F.3d 1, 388 U.S. App. D.C. 190, 37 Media L. Rep. (BNA) 2249, 2009 U.S. App. LEXIS 20237, 2009 WL 2851387 (D.C. Cir. 2009).

Opinion

Opinion for the Court filed by Circuit Judge GARLAND.

*6 GARLAND, Circuit Judge.

More than fifty years ago, the Supreme Court held that the public disclosure of “who is being hired, who is putting up the money, and how much” they are spending to influence legislation is “a vital national interest.” United States v. Harriss, 347 U.S. 612, 625-26, 74 S.Ct. 808, 98 L.Ed. 989 (1954). Today, we consider a constitutional challenge to Congress’ latest effort to ensure greater transparency, the Honest Leadership and Open Government Act of 2007. Because nothing has transpired in the last half century to suggest that the national interest in public disclosure of lobbying information is any less vital than it was when the Supreme Court first considered the issue, we reject that challenge.

I

A

Congress first enacted comprehensive lobbying regulation in 1946 with passage of the Federal Regulation of Lobbying Act (FRLA), Pub.L. No. 79-601, tit. Ill, 60 Stat. 839 (1946). The Act required paid lobbyists, defined as persons whose services were engaged for the purpose of influencing legislation, to register with the Secretary of the Senate and the Clerk of the House of Representatives. Id. § 308(a), 60 Stat. at 841. Among other things, registered lobbyists were required to disclose, on a quarterly basis, the identity of each person who contributed $500 or more to fund their lobbying efforts. Id. § 305(a)(1), 60 Stat. at 840. The FRLA remained on the books as the primary font of federal lobbying regulation for fifty years.

In 1995, concerned that the FRLA had “failed to ensure the public disclosure of meaningful information about individuals who attempt to influence the conduct of officials of the Federal government,” H.R. REP. NO. 104-339, pt. 1, at 5 (1995), the 104th Congress scrapped the Act and started from scratch. By unanimous vote of both Houses, 1 Congress passed the Lobbying Disclosure Act of 1995(LDA), Pub.L. No. 104-65, 109 Stat. 691 (codified as amended at 2 U.S.C. §§ 1601 et seq.), which began with the following recitation of findings setting forth the need for a more aggressive approach to lobbying regulation:

The Congress finds that—

(1) responsible representative Government requires public awareness of the efforts of paid lobbyists to influence the public decisionmaking process in both the legislative and executive branches of the Federal Government;
(2) existing lobbying disclosure statutes have been ineffective because of unclear statutory language, weak administrative and enforcement provisions, and an absence of clear guidance as to who is required to register and what they are required to disclose; and
(3) the effective public disclosure of the identity and extent of the efforts of paid lobbyists to influence Federal officials in the conduct of Govérnment actions will increase public confidence in the integrity of Government.

2 U.S.C. § 1601.

In concert with these findings, Congress enacted a new statutory scheme containing broader disclosure obligations, a more expansive definition of lobbying, 2 and a more *7 robust enforcement scheme. The LDA requires lobbyists (or their employers) to register with the Secretary of the Senate and Clerk of the House within 45 days of making or being retained to make lobbying contacts. 2 U.S.C. § 1603(a)(1), (2). Each registration must contain identifying information regarding the registrant (i.e., the lobbyist or employer of lobbyists) and each of its clients. Id. § 1603(b)(1), (2). It must also contain a statement of “the general issue areas in which the registrant expects to engage in lobbying activities on behalf of the client” and specific issues that have already been or are likely to be addressed in its lobbying activities. Id. § 1603(b)(5). Each registrant must then submit periodic reports updating those disclosures and stating the income received from its clients as well as the expenses the registrant incurred in connection with lobbying activities conducted on its own behalf. Id. § 1604(b).

Particularly relevant here, the LDA provides that, “[i]n the case of a coalition or association that employs or retains other persons to conduct lobbying activities, the client is the coalition or association and not its individual members.” Id. § 1602(2). For the first time, however, Congress took steps to partially pierce the veil of coalitions and associations that lobby Congress on behalf of their members. LDA § 4 required registrants — including coalitions and associations — to disclose not only their clients, but also:

(3) the name, address, and principal place of business of any organization, other than the client, that—
(A) contributes more than $10,000 toward the lobbying activities of the registrant in a semiannual period ...; and
(B) in whole or in major part plans, supervises, or controls such lobbying activities.

LDA § 4(b)(3), 109 Stat. at 696 (codified at 2 U.S.C. § 1603(b)(3) (1995)). According to the House Judiciary Committee Report that recommended passage of the LDA, this provision was “intended to preclude evasion of the disclosure requirements of the Act through the creation of ad hoc lobbying coalitions behind which real parties in interest can hide.” H.R. Rep. No. 104-339, U.S.Code Cong & Admin.News 1996, 644, pt. 1, at 18.

In 2007, after twelve years of experience with the LDA, and spurred by a series of lobbying-related scandals, see H.R. Rep. No. 110-161, pt. 1, at 9 (2007), Congress again enacted lobbying reform. According to the House Judiciary Committee Report, Congress’ purpose was to close “loopholes in current law.” Id. This time, it did not repeal its earlier handiwork. Instead, Congress amended the LDA while keeping much of it intact, including its statement of legislative findings and most of its definitions. The result was the Honest Leadership and Open Government Act of 2007 (HLOGA), Pub.L. No. 110-81, 121 Stat. 735.

Section 207 of HLOGA is the provision at issue on this appeal. It amends LDA § 4(b)(3), 2 U.S.C. § 1603(b)(3), by altering both the monetary and level-of-participation thresholds necessary to trigger disclosure of organizations other than clients. The participation threshold is our focus *8 here.

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582 F.3d 1, 388 U.S. App. D.C. 190, 37 Media L. Rep. (BNA) 2249, 2009 U.S. App. LEXIS 20237, 2009 WL 2851387, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-assn-of-manufacturers-v-taylor-cadc-2009.