[EL] Danielczyk

JBoppjr at aol.com JBoppjr at aol.com
Wed Jun 8 11:34:34 PDT 2011


The Supreme Court in CU rejected the  notion that there should be a 
distinction between non-profits and for-profits re  political speech.  I think that 
is the right result. It is true that before  the Court would accept that 
position, we sought an as applied exception for  non-profits from both bans an 
IE's, see MCFL, and contributions, see  Beaumont, so that at least some 
groups would have political  rights. In both instances, the "reformers" 
opposed.  Now they  wish for the good old days they fought against!  LOL
 
    On Rick's "conduit" point, there are two legitimate  ways to deal with 
this.  First, is to count any earmarked contributions by  X to Y for Z to be 
a contribution to Z from X, not Y.  That is how the FEC  earmarking rules 
work.  Second, is the affiliation rules.  If an  entity is controlled by the 
same group, then they are subject to the same  aggregate contribution limit. 
FEC rules on this also operate this way.
 
    His real point is that X may make multiple  contribution to different 
entities that the person does not control, which are  not controlled by the 
same group of people and which are not earmarked to  contribute to a certain 
candidate, but then that all these contributions should  be treated as a 
contribution from X. The reason I understand is that these  entities may all be 
of one mind, ie conservative, and expected to  contribute to Y.
 
    This would be like UCI, who pays salaries to  employees UCI does not 
control, the employees don't control each other and  the salary is not 
earmarked as a contribution to a candidate, being treated  as the contributor of 
contributions from its employees. While it is true that  they are all of like 
mind -- all liberal Democrats, no doubt -- this is  wrong.  Each employee 
still has his or her own mind and free will.   And they are contributing their 
own money -- even though it "came" from UCI (hey  every one gets there 
money from someone else, except the feds.). Each employee  is still responsible 
for his or her own contribution.  Jim  Bopp    
 
 
In a message dated 6/8/2011 1:17:12 P.M. Eastern Daylight Time,  
rhasen at law.uci.edu writes:

This looks  exceedingly close to an admission that non-profit corporations  
could be used as conduits to evade individual contribution limits.  And  
I'm less optimistic than Brad that for-profit corporations could not be used  
for the same purpose.   I also question the constitutionality of the  PAC 
and affiliation rules under the logic of Judge Cacheris's  order.

Finally, I emphatically disagree with the notion that "American  Democarcy 
did pretty well right up through 1974."  Watergate is a prime  (but not 
only) example of the abuses of a poorly-regulated campaign finance  system.



On 6/8/2011 10:04 AM, Smith, Brad wrote:  
 
In his first post, Rick  writes:
 
"Why couldn’t I set up 50 ideological corporations now in Virginia along  
the following lines? Contribute to these 50 ideological corporations  
supporting progressive (or tea party) candidates. If you’ve maxed out on  your 
contributions to your favorite candidates, give the money to us, and  we’ll 
contribute it to the candidates directly on our list.  This is  our corporation’
s mission." 
Now he writes: 
"those groups which should be entitled to the most First  Amendment 
protections (even under Austin and before Citizens  United, such groups could spend 
their treasury funds independently on  candidate campaigns) get the least 
protection." 
The first post provides a reason why the second post is not  necessarily 
true. For profit corporations are highly unlikely to be used to  end run 
individual contribution limits - but non-profit corporations would  be better 
vehicles for such a manuever. 
Of course, all of this could be regulated, as are PACs now, through  
affiliation rules. Or, we could recognize that American democracy did pretty  well 
right up through 1974, and simply do away with individual limits on  
contributions, which would do away with Rick's feared scenario. But assuming  
individual contribution limits stay in place, Rick himself, in his first  post, 
explained why it could make sense to limit Beaumont to non-profit  
corporations.
 

 
Bradley A.  Smith
Josiah H. Blackmore II/Shirley M. Nault  Designated Professor of Law
Capital University Law  School
303 E. Broad St.
Columbus, OH 43215
(614) 236-6317
_http://www.law.capital.edu/Faculty/Bios/bsmith.asp_ 
(http://www.law.capital.edu/Faculty/Bios/bsmith.asp) 


 
____________________________________
From: _law-election-bounces at department-lists.uci.edu_ 
(mailto:law-election-bounces at department-lists.uci.edu)   on behalf of Rick Hasen
Sent: Wed 6/8/2011 10:44 AM
To:  _law-election at uci.edu_ (mailto:law-election at uci.edu) 
Subject:  Re: [EL] Danielczyk



_The Perverse Holding of Danielczyk_ (http://electionlawblog.org/?p=18888) 
Posted  on _June 8, 2011_ (http://electionlawblog.org/?p=18888)  by _Rick  
Hasen_ (http://electionlawblog.org/?author=3)  
 
In response to my query in _this  post_ 
(http://electionlawblog.org/?p=18851) , a few readers have said that the opinion means it is  unconstitutional 
to limit the direct contributions of for-profit  corporations to candidates, 
but it remains constitutional under the  controlling authority of Beaumont 
to limit the direct contributions  of ideological, non-profit corporations. 
Of course, as my readers point out, if this is what it means, it is a  
perverse holding: those groups which should be entitled to the most  First 
Amendment protections (even under Austin and before  Citizens United, such groups 
could spend their treasury funds  independently on candidate campaigns) get 
the least protection. 
That’s another reason why the district court’s ruling should be _appealed  
immediately_ (http://electionlawblog.org/?p=18859) . 
 
 
(http://www.addtoany.com/share_save#url=http://electionlawblog.org/?p=18888&title=The%20Perverse%20Holding%20of%20Danielczyk&description=) 


Posted in _Uncategorized_ (http://electionlawblog.org/?cat=1)  | Comments 
Off 


On  6/7/2011 1:03 PM, Rick Hasen wrote:  
_Breaking News: Judge in Va. Contributions Case  Reaffirms Opinion Striking 
Down Federal Campaign Contribution Limits Law  (Danielczyk)_ 
(http://electionlawblog.org/?p=18848) 
Posted on _June 7, 2011_ (http://electionlawblog.org/?p=18848)   by _Rick  
Hasen_ (http://electionlawblog.org/?author=3)  
 
Via _Ken Vogel _ (https://twitter.com/#!/kenvogel/status/78182731254743040) 
comes word of_ this order _ 
(http://www.politico.com/static/PPM170_cacherisupholds.html) from Judge Cacheris.  This is  not what I was _expecting_ 
(http://electionlawblog.org/?p=18521) . The Court has held unconstitutional  a 
100-year-old ban on direct corporate campaign contributions to  candidates. 
He has done so in direct contradiction to the Supreme Court’s  holding in FEC 
v. Beaumont, and in contradiction to rulings in  the _Second Circuit_ 
(http://lawprofessors.typepad.com/files/green-party-2.pdf) , the _Eighth 
Circuit,_ (http://www.ca8.uscourts.gov/opndir/11/05/103126P.pdf)  and a _federal 
district court_ 
(http://electionlawblog.org/archives/thalheimer-pi.pdfhttp://electionlawblog.org/archives/thalheimer-pi.pdf)  in San Diego [that case  is 
on appeal, and I am defending San Diego's similar law in the Ninth  Circuit.] 
Judge Cacheris makes two arguments as to why he is not bound by FEC  v. 
Beaumont, in which the Supreme Court upheld the very same law. 
1. He accepted the argument put forward in an amicus brief by the James  
Madison Center that the holding in Beaumont applied only to  non-profit 
advocacy corporations, and not to for-profit companies.   This argument is very 
weak. In Beaumont, a nonprofit  ideological corporation argued that even if 
the statute could  constitutionally be applied to for-profit corporations, it 
could not  constitutionally be applied to non-profit corporations.  The 
Court  had already held in the case of Mass. Citizens for Life v. FEC  that such 
corporations could not be barred from making independent  expenditures.  In 
Beaumont, the Court held that  even such ideological MCFL corporations 
could  constitutionally be barred from making direct contributions to  
candidates.  Among other reasons, the law prevented such corporations  from being 
used as conduits to evade individual contribution limits.   If such non-profit 
corporations could constitutionally be barred from  making contributions to 
candidates, a fortiori for-profit  corporations should be barred as well. 
2. The judge accepted the second argument that Citizens United  silently 
overruled Beaumont. This too is a weak argument.  I  think that argument is 
dead wrong, for reasons explained in great detail  in Part I of _this brief_ 
(http://electionlawblog.org/archives/city-9th-reply.pdf)  filed in the San 
Diego case. 
What should happen next?  I’m not an expert on the ability of the  
government to take an interlocutory appeal at this point in the criminal  case,  but 
I would urge them if they could to take this directly to  the 4th Circuit.  
Otherwise, there will be great uncertainty going  into the 2012 election 
season about an important constitutional  question. 
 
 
(http://www.addtoany.com/share_save#url=http://electionlawblog.org/?p=18848&title=Breaking%20News:%20Judge%20in%20Va.%20Contributions%20Case%20Reaffirm
s%20Opinion%20Striking%20Down%20Federal%20Campaign%20Contribution%20Limits%2
0Law%20(Danielczyk)&description=) 


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-- 
Rick Hasen
Visiting Professor
UC  Irvine School of Law
401 E. Peltason Dr., Suite 1000
Irvine, CA  92697-8000
949.824.3072 - office
949.824.0495 - fax
_rhasen at law.uci.edu_ (mailto:rhasen at law.uci.edu) 
_http://law.uci.edu/faculty/page1_r_hasen.html_ 
(http://law.uci.edu/faculty/page1_r_hasen.html) 

William  H. Hannon Distinguished Professor of Law
Loyola Law School
_http://electionlawblog.org_ (http://electionlawblog.org/) 



-- 
Rick Hasen
Visiting Professor
UC  Irvine School of Law
401 E. Peltason Dr., Suite 1000
Irvine, CA  92697-8000
949.824.3072 - office
949.824.0495 - fax
_rhasen at law.uci.edu_ (mailto:rhasen at law.uci.edu) 
_http://law.uci.edu/faculty/page1_r_hasen.html_ 
(http://law.uci.edu/faculty/page1_r_hasen.html) 

William  H. Hannon Distinguished Professor of Law
Loyola Law School
_http://electionlawblog.org_ (http://electionlawblog.org/) 




-- 
Rick Hasen
Visiting Professor
UC Irvine  School of Law
401 E. Peltason Dr., Suite 1000
Irvine, CA  92697-8000
949.824.3072 - office
949.824.0495 - fax
_rhasen at law.uci.edu_ (mailto:rhasen at law.uci.edu) 
_http://law.uci.edu/faculty/page1_r_hasen.html_ 
(http://law.uci.edu/faculty/page1_r_hasen.html) 

William  H. Hannon Distinguished Professor of Law
Loyola Law School
_http://electionlawblog.org_ (http://electionlawblog.org/) 



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