Professional Documents
Culture Documents
Nonprofit Disclosure 093019
Nonprofit Disclosure 093019
Nonprofit Disclosure 093019
APPEARANCES
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Background
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history of §§ 172-e and 172-f, the two sections of the New York
litigation.
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4
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charities-non-profits/measuring-lobbying-activity-expenditure-
test.
4 IRS, The Restriction of Political Campaign Intervention by
Section 501(c)(3) Tax-Exempt Organizations (Aug. 7, 2019),
https://www.irs.gov/charities-non-profits/charitable-
organizations/the-restriction-of-political-campaign-
intervention-by-section-501c3-tax-exempt-organizations.
5 Id.
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6
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Id. § 1.501(c)(3)-1(c)(3)(ii).
7
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https://www.irs.gov/charities-non-profits/other-non-profits/
wp-content/uploads/2018/06/Comparison_of_501c3_and_50c4_
Permissible_Activities.pdf.
7 IRS, Donations to Section 501(c)(4) Organizations (Mar. 26,
2019), https://www.irs.gov/charities-non-profits/other-non-
profits/donations-to-section-501c4-organizations; see also 26
U.S.C. § 170(c)(2)(B).
8
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are not used to pay for lobbying.” Regan, 461 U.S. at 544 n.6;
see also Bob Jones Univ. Museum & Gallery, Inc. v. Comm’r, 71
and necessary business expense[]” and not paid for the purpose
9
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content/uploads/2019/08/BA-Power-of-Collaboration.pdf (“While
there are lines that (c)(3)s may not cross, many of the issues
10
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A. Legislative History
ethics bill that was introduced on June 17, 2016 and passed in
the early morning hours of the following day (the “Ethics Law”).
Commission on Public Ethics. See 2016 N.Y. Laws ch. 286; see
also 2016 Sess. Law News of N.Y., Legis. Memo ch. 286
those portions of the record that may shed light on the state’s
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(Citizens United I), 558 U.S. 310, 365 (2010). The press
drowning out the voice of the people.” The press release listed
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Speaker Carl Heastie said that the legislation would “close the
13
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process and utilizing funds that are not intended for political
‘issue advocacy.’”
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The Ethics Law was passed by the New York Senate around
In the New York Assembly, the bill was passed around 4:50 a.m.,
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B. Section 172-e
and the identities of any donors who made such a donation. Id.
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11See also N.Y. Comp. Codes R. & Regs. tit. 19, §§ 943.1, 943.5-
943.7 (defining types of lobbying that trigger disclosures under
the New York Lobbying Act); November Team, Inc. v. N.Y. State
Joint Comm’n on Pub. Ethics, 233 F. Supp. 3d 366, 368 (S.D.N.Y.
2017) (“The Act regulates both direct lobbying, which involves
direct contact with a public official, and grassroots lobbying,
which seeks to influence a public official indirectly through
the intermediary of the public.”); N.Y. State Joint Comm’n on
Public Ethics, Am I Lobbying? (Jan. 2019), https://jcope.ny.gov/
system/files/documents/2019/01/am-i-lobbying-1232019.pdf
(describing types of lobbying and required disclosures).
19
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C. Section 172-f
audience” and
Id. § 172-f(1)(b).
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* * *
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22
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York Lobbying Act are carved out from § 172-f. Id. at § 172-
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Law §§ 14-107.
receiving the payment, and the date the payment was made,” and -
the covered entity and the date of such donation.” N.Y. Exec.
“deposited into an account the funds of which are not used for
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been promulgated. 13
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Discussion
Co., 875 F.3d 107, 113 (2d Cir. 2017) (citation omitted). In
Once the moving party has cited evidence showing that the
Wright v. Goord, 554 F.3d 255, 266 (2d Cir. 2009) (citation
judgment,” Ridinger v. Dow Jones & Co., 651 F.3d 309, 317 (2d
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Baines, 593 F.3d 159, 166 (2d Cir. 2010) (citation omitted).
U.S. 186, 196 (2010); Citizens United II, 882 F.3d at 382.
U.S. at 196 (citation omitted); see also Citizens United II, 882
(citation omitted)).
29
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of the law more broadly. John Doe No. 1, 561 U.S. at 194.
claim.” Id.
30
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ex rel. Patterson, 357 U.S. 449, 460 (1958) (noting “close nexus
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plaintiffs.
other printed matter unless its cover was printed with the names
libel.” Id. But the Court found that the ordinance was “in no
32
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65.
readers will not prejudge her message simply because they do not
33
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The Court again rejected this argument, finding that the statute
(citation omitted).
34
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35
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Id.
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candidate.” 221 F.3d 376, 380 (2d Cir. 2000) (citation omitted)
“contain the name and address of the person who paid for the
issues.” VRLC I, 221 F.3d at 387. The panel held the statute
Pub. L. No. 79-601, 60 Stat. 812, 839-42 (1946). 347 U.S. 612,
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39
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money, and how much.” Id. at 625. Striking down such a statute
the risk that the disclosures would “as a practical matter act
40
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41
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Id. at 80.
42
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while the authorship disclosures there made a poor fit with the
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than $200 during the period covered by the statement and the
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30104(a)(11)(B).
United I, 558 U.S. at 320; see also McConnell, 540 U.S. at 126;
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revised since VRLC I. 758 F.3d 118, 122 (2d Cir. 2014). The
who funded them. Id. The statute also defined “mass media
robotic phone calls, and telephone banks, which include the name
Ann. tit. 17, § 2971(a); see also VRLC II, 758 F.3d at 133-34.
47
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2961(a)(2).
Id. at 134.
48
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Inc. v. Barland, 751 F.3d 804, 841 (7th Cir. 2014)), and from
Concerned for Life, Inc. v. Swanson, 692 F.3d 864, 867–69, 872–
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The Court then found that the NAACP had “made an uncontroverted
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is,
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omitted).
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described above, have been drawn far more narrowly than § 172-e.
57
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Cf. Van Hollen, Jr. v. Fed. Election Comm’n, 811 F.3d 486, 497
(D.C. Cir. 2016) (noting the “intuitive logic” that persons who
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See 347 U.S. at 615 n.2; see also §§ 305, 308, 60 Stat. 840-42.
activities.
18See also N.Y. State Joint Comm’n on Public Ethics, supra note
11.
59
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357 U.S. at 462. The exemption mirrors the test adopted by the
reprisals.
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required.
514 U.S. at 343; see also id. at 357; Talley, 362 U.S. at 65
(“It is plain that anonymity has sometimes been assumed for the
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Public Official”).
statutes that the Supreme Court and Second Circuit have upheld.
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Because §§ 172-e and 172-f are facially invalid, the Court need
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Conclusion
judgment is denied.
____________________________
DENISE COTE
United States District Judge
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