Federal Election Commission v. National Conservative Political Action Committee Democratic Party of United States v. National Conservative Political Action Committee

• Decision Date: 18 March 1985
• Docket Number: 83-1122,Nos. 83-1032,s. 83-1032
• Citation: 105 S.Ct. 1459,84 L.Ed.2d 455,470 U.S. 480
• Parties: FEDERAL ELECTION COMMISSION, Appellant, v. NATIONAL CONSERVATIVE POLITICAL ACTION COMMITTEE et al. DEMOCRATIC PARTY OF the UNITED STATES and Democratic National Committee, Appellants, v. NATIONAL CONSERVATIVE POLITICAL ACTION COMMITTEE and Fund for a Conservative Majority
• Court: U.S. Supreme Court

470 U.S. 480

105 S.Ct. 1459

84 L.Ed.2d 455

FEDERAL ELECTION COMMISSION, Appellant,

v NATIONAL CONSERVATIVE POLITICAL ACTION COMMITTEE et al.

DEMOCRATIC PARTY OF the UNITED STATES and Democratic

National Committee, Appellants,

v. NATIONAL CONSERVATIVE POLITICAL ACTION COMMITTEE and Fund for a Conservative Majority.

Nos. 83-1032, 83-1122.

Argued Nov. 28, 1984.

Decided March 18, 1985.

Syllabus

The Presidential Election Campaign Fund Act (Fund Act) offers the Presidential candidates of major political parties the option of receiving public financing for their general election campaigns. If the candidate elects public financing, the Act, in 26 U.S.C. § 9012(f), makes it a criminal offense for an independent "political committee" to expend more than $1,000 to further that candidate's election. Believing that § 9012(f) would prohibit appellee independent political committees' intended substantial expenditures in support of President Reagan's reelection in 1984, appellant Democratic Party and appellant Democratic National Committee (Democrats) filed an action in Federal District Court against appellees, seeking a declaration that § 9012(f) is constitutional. Appellant Federal Election Commission (FEC) brought a separate action against the same defendants seeking the same relief, and the two actions were consolidated. The District Court held that the Democrats had standing under 26 U.S.C. § 9011(b)(1)—which authorizes the FEC, "the national committee of any political party, and individuals eligible to vote for President" to institute such actions "as may be appropriate to implement or con[s]true any provisions of [the Fund Act]"—to seek the requested declaratory relief, but that the Democrats and the FEC were not entitled to a declaration that § 9012(f) is constitutional. The court then held § 9012(f) unconstitutional on its face because it violated First Amendment freedoms of speech and association.

Held:

1. The Democrats lack standing under § 9011(b)(1). Pp. 484-489.

(a) Contrary to the Democrats' assertion that there is no need to resolve the issue of their standing, raised in the FEC's appeal, because the FEC clearly has standing and the legal issues and relief requested are the same in both actions, this Court will decide the issue. It is squarely presented in the Democrats' appeal from the District Court's determination that § 9011(b)(1) is unconstitutional, and if the District Court's decision that the Democrats have standing is allowed to stand, it could seriously interfere with the FEC's exclusive jurisdiction to determine how and when to enforce the Fund Act. Pp. 484-486.

(b) The plain language of § 9011(b)(1) and § 306(b)(1) of the Federal Election Campaign Act of 1971 (FECA)—which provides that the FEC "shall administer, seek to obtain compliance with, and formulate policy with respect to" the Fund Act and confers on the FEC "exclusive jurisdiction with respect to the civil enforcement" of the Act—clearly shows that the Democrats have no standing to bring a private action against another private party. The Democratic Party is clearly not included within those authorized by § 9011(b)(1) to bring an action. And, while the Democratic National Committee is authorized to bring an action, the action must be "appropriate" to implement or construe the provision of the Fund Act at issue. Reading § 306(b)(1) of the FECA and 26 U.S.C. § 9010(a)—which authorizes the FEC to appear in and defend against any action filed under § 9011—together with § 9011, "appropriate" actions by private parties are those that do not interfere with the FEC's responsibilities for administering and enforcing the Fund Act. Accordingly, private suits to construe or enforce the Act are inappropriate interference with those responsibilities. Pp. 486-489.

2. Section 9012(f) violates the First Amendment. Pp. 490-501.

(a) The expenditures at issue are squarely prohibited by § 9012(f). And, as producing speech at the core of the First Amendment and implicating the freedom of association, they are entitled to full protection under that Amendment. Pp. 490-496.

(b) Section 9012(f)'s limitation on independent expenditures by political committees is constitutionally infirm, absent any indication that such expenditures have a tendency to corrupt or to give the appearance of corruption. But even assuming that Congress could fairly conclude that large-scale political action committees have a sufficient tendency to corrupt, § 9012(f) is a fatally overbroad response to that evil. It is not limited to multimillion dollar war chests, but applies equally to informal discussion groups that solicit neighborhood contributions to publicize their views about a particular Presidential candidate. Pp. 496-500.

(c) Section 9012(f) cannot be upheld as a prophylactic measure deemed necessary by Congress. The groups and associations in question here, designed expressly to participate in political debate, are quite different from the traditional organizations organized for economic gain that may properly be prohibited from making contributions to political candidates. P. 500.

578 F.Supp. 797 (D.C.1983) affirmed in part and reversed in part.

Charles N. Steele, Washington, D.C., for appellant in No. 83-1032.

Steven B. Feirson, Philadelphia, Pa., for appellants in No. 83-1122.

Robert R. Sparks, Jr., McLean, Va., for appellees in both cases.

Justice REHNQUIST delivered the opinion of the Court.^**

The Presidential Election Campaign Fund Act (Fund Act), 26 U.S.C. § 9001 et seq., offers the Presidential candidates of major political parties the option of receiving public financing for their general election campaigns. If a Presidential candidate elects public financing, § 9012(f) makes it a criminal offense for independent "political committees," such as appellees National Conservative Political Action Committee (NCPAC) and Fund For A Conservative Majority (FCM), to expend more than $1,000 to further that candidate's election. A three-judge District Court for the Eastern District of Pennsylvania, in companion lawsuits brought respectively by the Federal Election Commission (FEC) and by the Democratic Party of the United States and the Democratic Na- tional Committee (DNC), held § 9012(f) unconstitutional on its face because it violated the First Amendment to the United States Constitution. These plaintiffs challenge that determination on this appeal, and the FEC also appeals from that part of the judgment holding that the Democratic Party and the DNC have standing under 26 U.S.C. § 9011(b)(1) to seek a declaratory judgment against appellees upholding the constitutionality of § 9012(f). We noted probable jurisdiction pursuant to the statutory appeal provision of § 9011(b)(2), which provides for a direct appeal to this Court from three-judge district courts convened in proceedings under § 9011(b)(1). 466 U.S. 935, 104 S.Ct. 1906, 80 L.Ed.2d 455 (1984). We reverse the judgment of the District Court on the issue of the standing of the Democratic Party and the DNC, but affirm its judgment as to the constitutional validity of § 9012(f).

The present litigation began in May 1983 when the Democratic Party, the DNC, and Edward Mezvinsky, Chairman of the Pennsylvania Democratic State Committee, in his individual capacity as a citizen eligible to vote for President of the United States ¹ (collectively, the Democrats), filed suit against NCPAC and FCM (the PACs), who had announced their intention to spend large sums of money to help bring about the reelection of President Ronald Reagan in 1984. Their amended complaint sought a declaration that § 9012(f), which they believed would prohibit the PACs' intended expenditures, was constitutional. The FEC intervened for the sole purpose of moving, along with the PACs, to dismiss the complaint for lack of standing.

In June 1983, the FEC brought a separate action against the same defendants seeking identical declaratory relief. It was referred to the same three-judge District Court, which consolidated the two cases for all purposes. The parties submitted 201 stipulations and three books of exhibits as the factual record. After extensive briefing and oral argument, the court issued a comprehensive opinion, holding that the Democrats had standing under § 9011(b)(1) and Art. III of the Constitution to seek the requested declaratory relief, but that the Democrats and the FEC were not entitled to a declaration that § 9012(f) is constitutional. 578 F.Supp. 797 (D.C.1983). The court held that § 9012(f) abridges First Amendment freedoms of speech and association, that it is substantially overbroad, and that it cannot permissibly be given a narrowing construction to cure the overbreadth. The court did not, however, declare § 9012(f) unconstitutional because the PACs had not filed a counterclaim requesting such a declaration.

I

In their respective suits, the Democrats and the FEC relied upon 26 U.S.C. § 9011(b) to confer standing on them and subject-matter jurisdiction on the three-judge District Court. Section 9011(b)(1) provides:

"The [FEC], the national committee of any political party, and individuals eligible to vote for President are authorized to institute such actions, including actions for declaratory judgment or injunctive relief, as may be appropriate to implement or con[s]true any provisions of [the Fund Act]."

Section 9011(b)(2) confers subject-matter jurisdiction on the district courts of the United States, sitting in panels of three judges in accordance with 28 U.S.C. § 2284, to hear proceedings instituted under § 9011(b)(1).

We do not doubt, nor do any of the parties in these cases challenge, the standing of the FEC, which is specifically identified in § 9011(b)(1), to bring a declaratory action to test the constitutionality of a provision of the Fund Act. We think such an action is "appropriate" within the meaning of that section because a favorable declaration would materially advance the FEC's ability to expedite...