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Home arrow Business & Lobbying arrow Manufacturers’ group to comply with lobbying law while case is under appeal
Business & Lobbying PDF Print E-mail
Manufacturers’ group to comply with lobbying law while case is under appeal
Posted: 04/22/08 06:38 PM [ET]

The National Association of Manufacturers (NAM) said Tuesday it would comply with the new ethics and lobbying law and provide a list of all of its members, despite continuing to fight the requirement in federal court.

On Monday evening, U.S. Chief Justice John Roberts denied NAM’s request for a temporary injunction that would have allowed the trade group to bypass the disclosure requirement until the court proceedings are settled. Earlier Monday, the U.S. Court of Appeals for the District of Columbia denied the request for the injunction.

On Friday, U.S. District Court Judge Colleen Kollar-Kotelly also decided not to postpone enforcement of the law for the trade group, close to two weeks after the judge originally dismissed the NAM lawsuit against the ethics and lobbying law.

The NAM filed an appeal Tuesday against Kollar-Kotelly’s decision to dismiss the lawsuit.

“Denial of our request for an injunction does not address our basic challenge to the constitutionality of this pernicious law, which threatens the viability of business trade associations,” said former Michigan Gov. John Engler (R), the NAM’s president, in a statement.

The trade group has taken issue with the provision designed to shed light on so-called “stealth coalitions.” Under the new law, coalitions have to disclose their member companies that contribute at least $5,000 to lobbying activities during a quarter or actively participate in lobbying campaigns.

The NAM has argued that the requirement is vague and would hinder its First Amendment rights.

“As businesses become aware of the serious implications of this law, many of them will curtail their membership or restrict their involvement in trade associations. The effect will be to compromise their First Amendment right to express their opinions in the legislative process, and also undermine trade associations which play a critical role in the development of public policy by government,” said Engler in his statement.

A number of ethics watchdog groups have contested the NAM’s position and said it is in the government’s interest to uphold the disclosure provision in order to deter public corruption. Many originally lobbied for the provision in the law that passed last year.

The trade association did file its lobbying report Monday to meet the new law’s deadline. But instead of providing a list of members, the trade group cited the lawsuit against the measure and its request for an injunction until the legal matter is settled.

But now the NAM will file an amended report that will comply with the law and list its members for the first quarter this year, according to Tuesday’s press release.

They have 60 days under the new law to file the amended report once they are notified by either the secretary of the Senate or the House clerk, said Quentin Riegel, vice president of litigation for the NAM. Failure to file the amended report could result in a $200,000 fine and five years in prison.  

 
 
 
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