Georgia Republican Party v. Securities & Exchange Commission, No. 16-3732 (6th Cir. 2017)Annotate this Case
The Tennessee Republican Party, the Georgia Republican Party, and the New York Republican State Committee challenged the legality of 2016 amendments to rules proposed by the Municipal Securities Rulemaking Board (MSRB) that are “deemed to have been approved” by the Securities and Exchange Commission (SEC), 15 U.S.C. 78s(b)(2)(D). The rules arose out of concern “that brokers and dealers were engaging in a variety of ethically questionable practices in order to secure underwriting contracts,” and are intended to limit pay-to-play practices in the municipal securities markets. The amendments limit the campaign activities of persons who advise city and state governments on issuing municipal securities. The Sixth Circuit dismissed because the plaintiffs failed to establish their standing to challenge the amendments. There was no “self-evident” injury to the plaintiffs and only limited information on the number of persons possibly affected by the amendments. At most, there were approximately 713 registered non-dealer municipal advisory firms in the United States that would be affected by the Amendments, but it is unclear how many municipal advisor professionals are associated with these firms, let alone the likelihood that they would donate to plaintiffs if not for the Amendments. It is unknown whether the Amendments have hindered individual candidates who are members of the plaintiff organizations.