Ca_Law

case_law | United States Federal

Americans for Prosperity Foundation v. Bonta

Summary

The Ninth Circuit’s judgment, which vacated the District Court’s injunction of California’s compelled disclosure of Schedule Bs as not narrowly tailored to the State’s interest in investigating charitable misconduct, is reversed, and the cases are remanded.

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  • #1

    PRELIMINARY PRINT Volume 594 U. S. Part 2 Pages 595–646 OFFICIAL REPORTS OF THE SUPREME COURT July 1, 2021 REBECCA A. WOMELDORF reporter of decisions Page Proof Pending Publication NOTICE: This preliminary print is subject to formal revision before the bound volume is published. Users are requested to notif…

  • #2

    make their donors less likely to contribute and would subject them to the risk of reprisals. Both organizations challenged the constitutional- ity of the disclosure requirement on its face and as applied to them. In each case, the District Court granted preliminary injunctive relief prohibiting the Attorney Genera…

  • #3

    to all but Part II–B–1, concluding that California's disclosure require- ment is facially invalid because it burdens donors' First Amendment rights and is not narrowly tailored to an important government interest. Pp. 605–607, 608–619. (a) The Court reviews the petitioners' First Amendment challenge to California…

  • #4

    est is not enough to save a disclosure regime that is insuffciently tailored. Where exacting scrutiny applies, the challenged requirement must be narrowly tailored to the interest it promotes. Pp. 605–607, 608–611. (b) California's blanket demand that all charities disclose Schedule Bs to the Attorney General is f…

  • #5

    gative goals, and the State's interest in administrative convenience is weak. As a result, every demand that might deter association “creates an unnecessary risk of chilling” in violation of the First Amendment. Secretary of State of Md. v. Joseph H. Munson Co., 467 U. S. 947, 968. It does not make a difference in…

  • #6

    Zelidon-Zepeda, Deputy Attorney General, and Kimberly M. Castle, Associate Deputy Solicitor General.† †Briefs of amici curiae urging reversal in both cases were fled for the State of Arizona et al. by Mark Brnovich, Attorney General of Arizona, Drew C. Ensign, Deputy Solicitor General, Joseph A. Kanefeld, and Brun…

  • #7

    To solicit contributions in California, charitable organiza- tions must disclose to the state Attorney General's Offce the T. Burgess; for the Free Speech Coalition et al. by William J. Olson, Jere- miah L. Morgan, Robert J. Olson, David A. Warrington, Gary G. Kreep, and Steven C. Bailey; for the Goldwater Institu…

  • #8

    of Rhode Island, and Mark R. Herring of Virginia; for the California Asso- ciation of Nonprofts by Anna-Rose Mathieson; for the Campaign Legal Center et al. by Paul M. Smith, Tara Malloy, Megan P . McAllen, Stuart C. McPhail, and Adam J. Rappaport; for CharityWatch by Kathleen R. Hartnett and Adam S. Gershenson; f…

  • #9

    tect the 1st et al. by Gene C. Schaerr, Erik S. Jaffe, Hannah C. Smith, and Kathryn E. Tarbert; for the Public Interest Legal Foundation et al. by J. Christian Adams, Kaylan Phillips, and Eric E. Doster; for Randy Elf by Mr. Elf, pro se; and for Congressman John Sarbanes et al. by Seth P . Waxman, Catherine M. A. …

  • #10

    declined to fle their Schedule Bs (or have fled only redacted versions) with the State. For many years, the petitioners' reluctance to turn over donor information presented no problem because the Attor- Page Proof Pending Publication Cite as: 594 U. S. 595 (2021) 603 Opinion of the Court ney General was not par…

  • #11

    604 AMERICANS FOR PROSPERITY FOUNDATION v. BONTA Opinion of the Court and permanently enjoined the Attorney General from collecting their Schedule Bs. Americans for Prosperity Foundation v. Harris, 182 F. Supp. 3d 1049 (CD Cal. 2016); Thomas More Law Center v. Harris, 2016 WL 6781090 (CD Cal., Nov. 16, 2016). Ap…

  • #12

    “commendable”—the court determined that “[d]onors and potential donors would be reasonably justifed in a fear of disclosure given such a context” of past breaches. 2016 WL 6781090, *5. The Ninth Circuit again vacated the District Court's injunctions, and this time reversed the judgments and re- manded for entry …

  • #13

    want, see id., at 623, where individuals are punished for their political affliation, see Elrod v. Burns, 427 U. S. 347, 355 (1976) (plurality opinion), or where members of an organiza- tion are denied benefts based on the organization's message, see Healy v. James, 408 U. S. 169, 181–182 (1972). We have also not…

  • #14

    rights.” Ibid. (internal quotation marks omitted). Such scrutiny, we have held, is appropriate given the “deterrent effect on the exercise of First Amendment rights” that arises as an “inevitable result of the government's conduct in re- quiring disclosure.” Buckley, 424 U. S., at 65. The Law Center (but not the …

  • #15

    the Attorney General respond that exacting scrutiny de- mands no additional tailoring beyond the “substantial rela- tion” requirement noted above. We think that the answer lies between those two positions. While exacting scrutiny does not require that disclosure regimes be the least restric- tive means of achievi…

  • #16

    achieve the desired objective.” Id., at 218 (internal quotation marks and alterations omitted). McCutcheon is instructive here. A substantial relation is necessary but not suffcient to ensure that the government adequately considers the potential for First Amend- ment harms before requiring that organizations rev…

  • #17

    tie—social, professional, political, avocational, or religious. Many such relationships could have no possible bearing upon Page Proof Pending Publication Cite as: 594 U. S. 595 (2021) 611 Opinion of the Court the teacher's occupational competence or ftness.” Id., at 488. In other words, the law was not narrowly…

  • #18

    important regulatory efforts.” Id., at 1011–1012. The court did not apply a narrow tailoring requirement, however, because it did not read our cases to mandate any such inquiry. Id., at 1008–1009. That was error. And properly applied, the narrow tailoring requirement is not satisfed by the disclosure regime. We …

  • #19

    tual disputes that the District Court resolved against the Attorney General, see post, at 637–642, notwithstanding the applicable clear error standard of review, see Fed. Rule Civ. Proc. 52(a). For example, the dissent echoes the State's ar- gument that, in some cases, it relies on up-front Schedule B collection …

  • #20

    year, even though that information will become relevant in only a small number of cases involving fled complaints. See id., at 307–308. California does not rely on Schedule Bs to initiate investigations, and in all events, there are multiple alternative mechanisms through which the Attorney General can obtain Sch…

  • #21

    gorical—present in every case—as is the weakness of the State's interest in administrative convenience. Every de- mand that might chill association therefore fails exacting scrutiny. The Attorney General tries to downplay the burden on donors, arguing that “there is no basis on which to conclude that California'…

  • #22

    public,” but it concludes that the petitioners have no cause for concern because the Attorney General “has implemented security measures to en- sure that Schedule B information remains confdential.” Post, at 636–637 (opinion of Sotomayor, J.). The District Court—whose fndings, again, we review only for clear error…

  • #23

    an important government interest. See supra, at 610–611. Such a demanding showing is not required, however, where—as here—the disclosure law fails to satisfy these criteria. Finally, California's demand for Schedule Bs cannot be saved by the fact that donor information is already disclosed Page Proof Pending Pub…

  • #24

    Page Proof Pending Publication Cite as: 594 U. S. 595 (2021) 619 Opinion of Thomas, J. Amendment freedoms need breathing space to survive.” Button, 371 U. S., at 433. * * * The District Court correctly entered judgment in favor of the petitioners and permanently enjoined the Attorney General from collecting th…

  • #25

    protect other First Amendment rights, such as the freedom of the press. McIntyre v. Ohio Elections Comm'n, 514 U. S. 334, 361–367 (1995) (Thomas, J., concurring in judgment) (“Founding-era Americans” understood the freedom of the press to include the right of printers and publishers not to be compelled to disclos…

  • #26

    which a federal court should never issue at all.” 593 U. S., at 447 (opinion of Thomas, J.). Courts cannot “strike down statutory text” or resolve the legal rights of litigants not before them. Ibid. (brackets and internal quotation marks omitted). Despite the Court's use of the term “facially unconstitu- tional…

  • #27

    applies in all such cases. See ante, at 619–620 (concurring in part and concurring in judgment). I am not prepared at this time to hold that a single standard applies to all disclo- sure requirements. And I do not read our cases to have broadly resolved the question in favor of exacting scrutiny. This Court decid…

  • #28

    strates no burden at all. The same scrutiny the Court ap- plied when NAACP members in the Jim Crow South did not want to disclose their membership for fear of reprisals and violence now applies equally in the case of donors only too happy to publicize their names across the websites and walls of the organizations…

  • #29

    general. Cal. Govt. Code Ann. §§ 12584, 12585 (West 2018). As a condition of membership, the attorney general requires charities to submit a complete copy of Internal Revenue Service (IRS) Form 990, including Schedule B, on which Page Proof Pending Publication Cite as: 594 U. S. 595 (2021) 625 Sotomayor, J., dis…

  • #30

    Schedule B information that may be inadvertently uploaded. See Ameri- cans for Prosperity Foundation v. Becerra, 903 F. 3d 1000, 1018 (CA9 2018). Page Proof Pending Publication 626 AMERICANS FOR PROSPERITY FOUNDATION v. BONTA Sotomayor, J., dissenting ties to California's attorney general's offce in light of the…

  • #31

    disclosure requirements across the board, even if there is no evidence that they burden anyone at all. A Before today, to demonstrate that a reporting or disclosure requirement would chill association, litigants had to show “a reasonable probability that the compelled disclosure of . . . contributors' names will…

  • #32

    nomic reprisal, loss of employment, threat of physical coer- cion, and other manifestations of public hostility”); Bates, 361 U. S., at 523–524 (compelled disclosure of NAACP member- ship “would work a signifcant interference with the freedom of association” based on “uncontroverted evidence” that past identifcat…

  • #33

    At best, then, a subjective preference for privacy, which previously did not confer standing, now subjects disclosure requirements to close scrutiny. Of course, all disclosure re- quires some loss of anonymity, and courts can always imag- ine that someone might, for some reason, prefer to keep their donations und…

  • #34

    matic tailoring for state action that “directly and immedi- ately affects associational rights.” Boy Scouts of America v. Dale, 530 U. S. 640, 659 (2000); see also Buckley, 424 U. S., at 22, 25 (requiring a “closely drawn” ft for political contri- bution limits, which directly “limit one important means of associ…

  • #35

    (2021) (Barrett, J., concurring) (noting the “nuanced” ap- proach the Court generally takes in the “resolution of con- ficts between generally applicable laws and . . . First Amendment rights”). Compare, for instance, the Court's approaches in Shelton v. Tucker and Doe v. Reed. At issue in Shelton was an Arkansa…

  • #36

    589, 604 (1967) (“When one must guess what conduct or ut- 3 See Hagley, Massive Resistance—The Rhetoric and the Reality, 27 N. M. L. Rev. 167, 203 (1997). Page Proof Pending Publication Cite as: 594 U. S. 595 (2021) 633 Sotomayor, J., dissenting terance may lose him his position, one necessarily will steer far …

  • #37

    narrow tailoring in Reed. See ante, at 611. Page Proof Pending Publication 634 AMERICANS FOR PROSPERITY FOUNDATION v. BONTA Sotomayor, J., dissenting the “modest burdens” imposed by the requirement, id., at 201, the Court required a correspondingly modest level of tailoring. Under that standard, the disclosure r…

  • #38

    asymmetric power dynamic with hiring authorities would re- sult in a “constant and heavy” pressure on teachers “to avoid any ties which might displease those who control [their] pro- fessional destin[ies].” 364 U. S., at 486. Recall that a wit- ness had testifed that his white supremacist organization would seek …

  • #39

    The Court next looks to McCutcheon v. Federal Election Comm'n, 572 U. S. 185 (2014) (plurality opinion), which ad- dressed political contribution limits, not disclosure regimes. It is no surprise that the Court subjected the former to nar- row tailoring, as Buckley had already held that contribution limits direct…

  • #40

    if their names remain in the hands of a few California state offcials. The Court notes that, under Shelton, disclosure requirements can chill association even absent public disclo- sure. See ante, at 616. In Shelton, however, there was a serious concern that hiring authorities would punish teach- ers for their or…

  • #41

    public confdence in, and continued giving to, charitable orga- nizations. California's interest in exercising such oversight is especially compelling given the size of its charitable sector. Nearly a quarter of the country's charitable assets are held by charities registered in California. Brief for Scholars of t…

  • #42

    tion at all. One of the frst things an auditor or lawyer does upon receiving a complaint is review the entire Form 990, including Schedule B. Id., at 969–970, 996–997, 1062–1063. One Section leader testifed that she used Schedule Bs “[a]ll the time” for this purpose. App. in No. 19–251, p. 413. In sum, the eviden…

  • #43

    See Appellant-Cross-Appellee's Excerpts of Record in No. 16–56855 etc. (CA9), pp. 512–513. The subpoena process is also time consuming: Letters must go through multiple lay- ers of review and waiting for a response causes further de- lays during which a charity can continue its malfeasance. App. in No. 19–251, at…

  • #44

    (2011) (“[T]he need to prevent the imminent destruction of evidence has long been recognized as a suffcient justifcation 9 Of course, an interest in effciency cannot justify constitutional viola- tions, but it is an important governmental interest when deciding whether a constitutional violation has taken place at…

  • #45

    and art exhibition spaces; food banks and other organizations 11 The Court highlights the “flings of hundreds of organizations as amici curiae in support of” petitioners in this suit. Ante, at 617. Those briefs, of course, are not record evidence. Moreover, even if those organizations had each provided evidence th…

  • #46

    by some wealthy, generous and obviously not publicity-shy donor.” Isherwood, The Graffti of the Philanthropic Class, N. Y . Times, Dec. 2, 2007. Of course, it is always possible that an organization is in- herently controversial or for an apparently innocuous organi- zation to explode into controversy. The answer…

  • #47

    threats provide “scant evidence” of anything beyond “the specifc harm” that petitioners' donors might experience were their Schedule B information publicly disclosed. Id., at 200–201 (majority opinion). Petitioners' “facial challenge therefore must fail.” Id., at 203 (Alito , J., concurring). How, then, can their…

  • #48

    The Court 11 years later apparently has a different view of its role. It now calls upon the federal courts to serve “as virtually continuing monitors of the wisdom and soundness Page Proof Pending Publication 646 AMERICANS FOR PROSPERITY FOUNDATION v. BONTA Sotomayor, J., dissenting of [governmental] action.” La…