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Home arrow K Street Insiders arrow Why lobbyists head to court
K Street Insiders PDF Print E-mail
Why lobbyists head to court
Posted: 03/04/08 06:19 PM [ET]

The last thing a trade association like the National Association of Manufacturers (NAM) wants to do is wind up in court.

Our expertise lies in the world of policy, and we concentrate our efforts on the policymaking branch of government, Congress. We work through communication, education and persuasion. We prefer to do our job as lobbyists, not litigants.

But when that very ability to lobby is threatened by an attack on our core constitutional rights, the judicial system is exactly the right place to turn.

On Feb. 6, the NAM filed suit in federal court challenging a central provision of the lobbying bill enacted last year by Congress, the Honest Leadership and Open Government Act of 2007. The provision, Section 207, represents a potentially lethal threat to trade associations, one we resist on behalf of our 11,000-plus members and as a matter of principle.

The suit, NAM v. Taylor, filed in the U.S. District Court for the District of Columbia, argues that Section 207 undermines our First Amendment rights of petitioning for redress of grievances, freedom of speech and freedom of association.

Courts have long upheld disclosure requirements for lobbyists if there is a “compelling state interest” that such information be public. But we strenuously object to requirements that single out groups like the NAM or specific corporate members whose work with the association crosses some invisible line.

Especially troubling is Section 207’s potential chilling effect. The law would require associations like the NAM to release the names of many members who contribute more than $5,000 for lobbying activities. In effect, it would discourage business advocates, employers and employees alike from exercising their rights to participate in the political process.

Notably, this section does not apply to groups like labor unions, made up of individual members, or organizations like the American Association for Justice, i.e., the trial lawyers. Wealthy individuals can engage in all sorts of activities that the NAM would have to disclose. It’s business advocacy that comes under special scrutiny.

The law’s penalties for failing to disclose the required information are severe — civil penalties of up to $200,000 or as much as five years in prison. Rather than surrender their privacy or face those serious legal consequences, many businesses would just drop their membership in trade associations. While this result might please opponents of our policy positions, it still undermines the exercise of First Amendment rights.

The NAM’s lobbying activities often touch on hot-button issues. Our member companies legitimately fear retaliation for the positions they take, whether in the form of boycotts, shareholder suits or litigation. And in a large and diverse association like the NAM, companies might suffer attacks because of an NAM position they actually oppose.

The Honest Leadership and Open Government Act also offers a classic example of legislators aiming at one target — “stealth lobbying campaigns” — and hitting another. Does anyone really consider the NAM a “stealth organization”?

Everyone knows who we are and which industries we represent.  

Our decision to pursue legal action came only after we first put serious effort into fighting the law’s unconstitutional language, including lobbying during the writing of the legislation. Last November, after its passage, we joined with the U.S. Chamber of Commerce and the American Society of Association Executives in a letter to the Secretary of the Senate and Clerk of the House asking for guidance on compliance.

Their response offered little clarification, creating even more uncertainty and potential liability for the NAM and our member companies. With no alternative left, we sued the House’s and Senate’s administrative officers and Jeffrey A. Taylor, the U.S. attorney for the District of Columbia. (Hence the lawsuit’s title, the National Association of Manufacturers v. Taylor.)

If the current law stands, the NAM would have to file its disclosures by April 21. District Court Judge Colleen Kollar-Kotelly has told the parties she hopes to make a final ruling on the case by April 14.

Lobbying is a constitutionally protected activity that warrants as much legal protection as publishing a newspaper, joining together in prayer or gathering on a street corner for a protest. Section 207 of the Honest Leadership and Open Government Act strikes directly at that activity by demanding burdensome and intrusive disclosures — disclosures that would effectively discourage many of our members from speaking out in the first place. When the NAM and our members’ rights are threatened in this way, there is no choice. Lobbying gives way to legal action, and we turn to the courts for justice.

John Engler, a three-term governor of Michigan, is president and CEO of the National Association of Manufacturers.

 
 
 
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