Utah's Regulation of Ballot Measure Expenditures Ruled Unconstitutional as Applied to Nonprofit in Particular Instance
by Lateefah Williams*, 9/12/2008
The National Right to Work Legal Defense Foundation (Foundation) filed suit challenging three state statutes that define "corporation," "political issues committee," political issues expenditure," and "impose disclosure and reporting requirements on all organizations that make campaign related expenditures."
The case was brought as a result of a new law entitling Utah youth to school vouchers. Some teachers, who felt they were being pressured by labor unions to sign petitions opposing the new law, contacted the Foundation. The Foundation issued television and radio advertisements advising teachers and school employees to contact them for free legal aid if the teachers or school employees feel pressured.
Utah's Lieutenant Governor sent the Foundation a letter requiring them to file a "corporate financial report of political issues expenditure." While the Lieutenant Governor did not determine that the Foundation was a political committee, he determined that ads "constituted political issues expenditures."
The United States District Court for the District of Utah ruled that the statutes are valid in certain instances, but not as applied to the Foundation. The statutes must be "narrowly construed to apply only to those expenditures that unambiguously relate" to enacting or defeating a ballot measure. The Foundation's ads did not "expressly advocate for the enactment of school vouchers" and they are not the "functional equivalent of express advocacy as defined by Supreme Court precedent."
James Bopp, Jr., lead counsel for the Foundation, said, in a Press Release by the James Madison Center for Free Speech, "[t]his is a decisive victory for the First Amendment."
