Wednesday, February 06, 2008

National Association of Manufacturers Sues to Block Member Disclosure Law

The National Association of Manufacturers (NAM) has filed a lawsuit, National Association of Manufacturers v. Taylor, in federal court challenging Section 207 of the Honest Leadership and Open Government Act of 2007, charging that the disclosure rules violate the First Amendment because they are "vague, overbroad and burdensome." The provision being challenged requires registered lobbying organizations and associations to disclose the names of any members that contribute more than $5,000 to the lobbying of the organization who "actively participate in the planning, supervision, or control of such lobbying activities." The provision was meant to disclose "stealth coalitions." NAM also requested a preliminary injunction to prevent enforcement of the provision until the case is decided. A press release from NAM quotes President John Engler extensively ;

It would require associations like the NAM to release the names of many members who contribute more than $5,000 for lobbying activities, violating their right to privacy. The penalties for failure to disclose this information are severe. It is safe to assume that as businesses become aware of the serious implications of this law, many of them will curtail their membership in trade associations. The effect will be to compromise their First Amendment right to express their opinions in the legislative process, and also undermine trade associations which play a critical role in the development of public policy by government.