Austin v. Michigan Chamber of Commerce | |
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Argued October 31, 1989 Decided March 27, 1990 | |
Full case name | Richard H. Austin, Michigan Secretary of State, et al. v. Michigan Chamber of Commerce |
Citations | 494 U.S. 652 ( more ) 110 S. Ct. 1391; 108 L. Ed. 2d 652; 1990 U.S. LEXIS 1665; 58 U.S.L.W. 4371 |
Holding | |
The Michigan Campaign Finance Act, which prohibited corporations from using treasury money to support or oppose candidates in elections, did not violate the First or the Fourteenth Amendment. | |
Court membership | |
| |
Case opinions | |
Majority | Marshall, joined by Rehnquist, Brennan, White, Blackmun, Stevens |
Concurrence | Brennan |
Concurrence | Stevens |
Dissent | Scalia |
Dissent | Kennedy, joined by O'Connor, Scalia |
Laws applied | |
U.S. Const. amends. I, XIV | |
Overruled by | |
Citizens United v. FEC , 558 U.S. 310 (2010) |
Austin v. Michigan Chamber of Commerce, 494 U.S. 652 (1990), was a decision of the Supreme Court of the United States regarding campaign finance regulations. The majority opinion authored by Thurgood Marshall held that the Michigan Campaign Finance Act, which burdened political speech by prohibiting corporations from using treasury money to make independent expenditures to support or oppose candidates in elections, was appropriately justified by a compelling state interest so as to overcome a First Amendment challenge. The court also found no Fourteenth Amendment violation, stating that Congress could treat press corporations and nonpress corporations differently without violating the Equal Protection Clause. Upholding the restriction on corporate political speech, The Court stated that "Corporate wealth can unfairly influence elections"; however, the Michigan law still allowed the corporation to make such expenditures from a segregated fund.
The Michigan Campaign Finance Act banned corporations from spending treasury money on "independent expenditures to support or oppose candidates in elections for state offices." The Act had one loophole-if a corporation had an independent fund solely used for political purposes the law did not apply. The Michigan Chamber of Commerce sought to use its general funds to publish an advertisement in a local newspaper to support a candidate for the Michigan House of Representatives, [1]
Louis J. Caruso, Lansing, Michigan, argued on the side of the appellants (Austin). Richard D. McLellan, Lansing, Michigan, argued for the respondent (Michigan Chamber of Commerce). [2]
The majority opinion written by Thurgood Marshall held the Act did not violate the First or the Fourteenth Amendments. The Court recognized a state's compelling interest in combating a "different type of corruption in the political arena: the corrosive and distorting effects of immense aggregations of wealth that are accumulated with the help of the corporate form and that have little or no correlation to the public's support for the corporation's political ideas." [3]
Marshall concluded by noting the importance of the Act:
Michigan identified as a serious danger the significant possibility that corporate political expenditures will undermine the integrity of the political process, and it has implemented a narrowly tailored solution to that problem. By requiring corporations to make all independent political expenditures through a separate fund made up of money solicited expressly for political purposes, the Michigan Campaign Finance Act reduces the threat that huge corporate treasuries amassed with the aid of favorable state laws will be used to influence unfairly the outcome of elections.
Marshall was joined in the majority opinion by Chief Justice William Rehnquist and Justices William Brennan, Byron White, Harry Blackmun, and John Paul Stevens. Justice Kennedy wrote a dissenting opinion, joined by Justices Scalia and O'Connor.
The decision was overruled by Citizens United v. Federal Election Commission , 558 U.S. 50 (2010), [4] [5] ruling that the First Amendment right of free speech applied to corporations.
Campaign finance laws in the United States have been a contentious political issue since the early days of the union. The most recent major federal law affecting campaign finance was the Bipartisan Campaign Reform Act (BCRA) of 2002, also known as "McCain-Feingold". Key provisions of the law prohibited unregulated contributions to national political parties and limited the use of corporate and union money to fund ads discussing political issues within 60 days of a general election or 30 days of a primary election; However, provisions of BCRA limiting corporate and union expenditures for issue advertising were overturned by the Supreme Court in Federal Election Commission v. Wisconsin Right to Life.
Corporate personhood or juridical personality is the legal notion that a juridical person such as a corporation, separately from its associated human beings, has at least some of the legal rights and responsibilities enjoyed by natural persons. In most countries, a corporation has the same rights as a natural person to hold property, enter into contracts, and to sue or be sued.
Citizens United is a conservative 501(c)(4) nonprofit organization in the United States founded in 1988. In 2010, the organization won a U.S. Supreme Court case known as Citizens United v. FEC, which struck down as unconstitutional a federal law prohibiting corporations and unions from making expenditures in connection with federal elections. The organization's president and chairman is David Bossie.
Buckley v. Valeo, 424 U.S. 1 (1976), was a landmark decision of the US Supreme Court on campaign finance. A majority of justices held that, as provided by section 608 of the Federal Election Campaign Act of 1971, limits on election expenditures are unconstitutional. In a per curiam opinion, they ruled that expenditure limits contravene the First Amendment provision on freedom of speech because a restriction on spending for political communication necessarily reduces the quantity of expression. It limited disclosure provisions and limited the Federal Election Commission's power. Justice Byron White dissented in part and wrote that Congress had legitimately recognized unlimited election spending "as a mortal danger against which effective preventive and curative steps must be taken".
The Federal Election Campaign Act of 1971 is the primary United States federal law regulating political campaign fundraising and spending. The law originally focused on creating limits for campaign spending on communication media, adding additional penalties to the criminal code for election law violations, and imposing disclosure requirements for federal political campaigns. The Act was signed into law by President Richard Nixon on February 7, 1972.
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First National Bank of Boston v. Bellotti, 435 U.S. 765 (1978), is a U.S. constitutional law case which defined the free speech right of corporations for the first time. The United States Supreme Court held that corporations have a First Amendment right to make contributions to ballot initiative campaigns. The ruling came in response to a Massachusetts law that prohibited corporate donations in ballot initiatives unless the corporation's interests were directly involved.
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The Rehnquist Court was the period in the history of the Supreme Court of the United States during which William Rehnquist served as Chief Justice. Rehnquist succeeded Warren Burger as Chief Justice after the latter's retirement, and Rehnquist held this position until his death in 2005, at which point John Roberts was nominated and confirmed as Rehnquist's replacement. The Rehnquist Court is generally considered to be more conservative than the preceding Burger Court, but not as conservative as the succeeding Roberts Court. According to Jeffrey Rosen, Rehnquist combined an amiable nature with great organizational skill, and he "led a Court that put the brakes on some of the excesses of the Earl Warren era while keeping pace with the sentiments of a majority of the country."
Citizens United v. Federal Election Commission, 558 U.S. 310 (2010), is a landmark decision of the Supreme Court of the United States regarding campaign finance laws and free speech under the First Amendment to the U.S. Constitution. The court held 5–4 that the freedom of speech clause of the First Amendment prohibits the government from restricting independent expenditures for political campaigns by corporations, nonprofit organizations, labor unions, and other associations.
Hillary: The Movie is a 2008 political documentary about United States Senator and presidential candidate Hillary Clinton. It was produced by the conservative non-profit organization Citizens United. The film was scheduled to be offered as video-on-demand on cable TV right before the Democratic primaries in January 2008, but would have been classified as "electioneering communication", which was made illegal under the Bipartisan Campaign Reform Act, by the Federal Election Commission. The producers went to U.S. District Court for the District of Columbia to get a declaration that they could show their movie and promotional ads for it despite BCRA. This case was titled Citizens United v. Federal Election Commission and its final decision at the U.S. Supreme Court resulted in a major change in campaign finance law.
Richard D. McLellan is a lawyer at McLellan Law Offices PLLC. He has served as Chairman of the Michigan Law Revision Commission since 1986. He argued on the side of the appellee in the United States Supreme Court case Austin v. Michigan Chamber of Commerce, 494 U.S. 652 (1990).
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