217 N.E.3d 517
Ind.2023Background
- Indiana Right to Life Victory Fund (a Super PAC) and Sarkes Tarzian, Inc. (a corporation) sought a $10,000 corporate contribution earmarked for the Victory Fund’s independent expenditures.
- Sarkes Tarzian did not donate, believing Indiana Code §§ 3-9-2-3 to -6 bar corporate contributions that fund independent expenditures; the State’s election officials contend they would not enforce such a ban because of Citizens United.
- Plaintiffs sued state election officials in federal court seeking a declaratory judgment and an injunction; the district court dismissed for lack of standing because officials disclaimed enforcement.
- The Seventh Circuit certified the question of statutory meaning to the Indiana Supreme Court: whether §§ 3-9-2-3 to -6 prohibit corporate contributions to PACs for independent campaign-related expenditures (i.e., Super PACs).
- The Indiana Supreme Court held the Code prohibits corporate contributions to PACs earmarked for independent expenditures because § 3(b) limits corporate contributions to those authorized by §§ 4–6, and §§ 4–6 do not authorize contributions to independent-expenditure-only PACs.
- The Court refused to apply constitutional-avoidance to rewrite the unambiguous statutes, leaving any remedy for constitutional tension to the General Assembly; Justice Goff dissented, urging an interpretation that avoids conflict with Citizens United.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Indiana Code §§ 3-9-2-3 to -6 prohibit corporate contributions to PACs earmarked for independent expenditures (Super PACs) | The Code’s silence should not be read to prohibit contributions; Citizens United protects corporate funding of independent expenditures (plaintiffs say the statutes are unconstitutional as applied). | The statutes do not prohibit such contributions; officials interpret and will not enforce the Code to bar corporate contributions to independent-expenditure PACs. | Held: The Code prohibits these contributions—§ 3(b) limits corporate contributions to those authorized by §§ 4–6, and §§ 4–6 do not authorize contributions to Super PACs for independent expenditures. |
| Whether the court should use constitutional-avoidance to interpret the statutes as permitting the contributions to avoid conflict with Citizens United | Plaintiffs rely on Citizens United to argue the statutes cannot be enforced against such contributions. | Officials urge the Court to construe statutes permissively to avoid a constitutional clash because they will not enforce them otherwise. | Held: The statutes are unambiguous; the Court will not rewrite clear statutory text under the avoidance canon. Any statutory fix must come from the legislature. |
Key Cases Cited
- Citizens United v. Federal Election Comm'n, 558 U.S. 310 (2010) (First Amendment forbids restrictions on corporate independent expenditures)
- Jennings v. Rodriguez, 138 S. Ct. 830 (2018) (courts should not rewrite statutes to save them from constitutional problems)
- United States v. Stevens, 559 U.S. 460 (2010) (courts will not rewrite a law to conform it to constitutional requirements)
- Rogers v. Martin, 63 N.E.3d 316 (Ind. 2016) (apply plain statutory meaning where text is clear)
- Wisconsin Right to Life State PAC v. Barland, 664 F.3d 139 (7th Cir. 2011) (discusses enforcement risks and First Amendment implications for campaign-finance laws)
- State v. Terre Haute Brewing Co., 115 N.E. 772 (Ind. 1917) (historical reference to an earlier broad prohibition on corporate political contributions)
