U.S. Chamber of Commerce - November 28 - U.S. Chamber Finds Constitutional Flaw in New Lobbying Act

WASHINGTON, DC-The U.S. Chamber of Commerce, joining with two other leading trade associations, today sent a letter to Congress raising constitutional concerns about new association membership disclosure requirements under the "Honest Leadership and Open Government Act of 2007." The letter also asked the Secretary of the Senate and Clerk of the House to clarify these disclosure requirements to make them consistent with constitutional safeguards and the legislative history of the Act.

"The Constitution requires any law that imposes criminal sanctions to be clear and precise, and it guarantees the right of private entities to associate freely - without being subjected to invasive regulation," said U.S. Chamber Chief Legal Officer and General Counsel Steven Law. "Unless Congress provides clear guidance, the new law will create endless 'traps for the unwary' and erode the confidentiality of association membership, which is intrinsic to the constitutional right of free association."

The U.S. Chamber was joined by the National Association of Manufacturers and the American Society of Association Executives in expressing concern about Section 207 of the new lobbying reform law, which would require associations to disclose members that contribute more than $5,000 per quarter toward lobbying activities, and that "actively participate [ ] in the planning, supervision, or control of such lobbying activities."

The letter points out that Section 207 is so vague and broad that it will "require disclosure of large groups of entities that have little or no contact with government officials, and would not otherwise be classified as 'lobbyists' on their own.... [W]ithout further guidance, the practical effect of Section 207 would be to delve far more deeply into the membership lists of private associations than Congress has ever established a compelling interest to seek."

The letter also notes that the legislative history of the lobbying reform law shows that Congress intended to cover a very narrow form of lobbying activity, not traditional membership associations. "The sponsors of the law wanted to aim at so-called 'stealth coalitions,' but they ended up hitting the Constitution instead," added Law.

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.