In
NCRL I, the Fourth Circuit held that a similar ban on corporate independent expenditures was unconstitutional. The Court determined that NCRL qualifies as an MCFL-type corporation, for which the interest in regulating political activity is not compelling.
NCRL I, at 714 (“NCRL falls squarely within the MCFL exception.”). The FEC states that “the [
NCRL I ] opinion is clear and controlling as to NCRL's entitlement to a constitutional exemption from
2 U.S.C. 441b's prohibition of corporate expenditures ...”. Def.Mem. in Supp. at 20. This Court agrees. Given that NCRL falls “squarely within” the category of non-threatening, MCFL-type organizations,
NCRL I at 714, NCRL poses no threat to the political forum. This Court therefore holds that the
§ 441b(a) ban on independent expenditures violates NCRL's First Amendment rights without a compelling interest.