Legal Background

 

While not explicitly defined in the Constitution, the Supreme Court has acknowledged that certain implicit rights, such as association, privacy, and presumed innocence, share constitutional protection in common with explicit guarantees such as free speech. Specifically, the Supreme Court has described the right to associate as inseparable from the right to free speech.

 

The right of association under the Constitution was heavily litigated in the 1950’s and 1960’s, and association members’ rights were consistently upheld by the Court.  In fact, the right of association became a cornerstone of the civil rights movement.

 

In general, members of an association do not fall under the jurisdiction of local, state, and federal governments and corresponding laws and regulations.  The exception to this general rule is when the activities of the private membership association "present a clear and present danger of substantive evil". 

 

 

 

 

 

A simple example of private associations are drinking clubs in Texas.  Since prohibition was repealed in 1933, regulation of the alcoholic beverage industry was delegated to individual states.  Some states, such as Texas, allow individual counties and cities to govern the sale of alcohol.  As a result, 46 out of Texas’ 254 counties are dry, meaning that sale of alcohol is forbidden.  However, you can go to virtually any restaurant in the dry counties and simply by joining their private associations or "drinking clubs", they can sell you and other members alcohol even though it is prohibited by local law! 

 

 

 

 

 

 

It is important to note that the right to associate is not limited to social or political activities.  According to the Supreme Court, this right can be utilized for business activities (e.g. sale of alcohol).  Members of a private membership association have the right to private contract under the due process liberty clause of the 5th and 14th Amendments, and states may not pass laws that impair the obligation of a contract.

 

In Thomas v. Collins, 323 U.S. (an important Supreme Court case) it was determined: "Great secular causes, with small ones, are guarded. The grievences for redress of which the right of partition was insured, and with it the righ of assembly, are not solely religious or political ones. And the righs of free speech and a free press are not confined to any field of human interest".

 

Under the First and Fourteenth Amendment of the U.S. Constitution and equivalent provisions of your State Constitution, you have the right to associate with fellow members and offer benefits and services that are outside of the jurisdiction, venue and authority of State and/or Federal agencies. What could come under scrutiny and in some cases be considered a criminal act outside the association can be perfectly legal within the protection of a private association.

 

Most Common Benefits of Operating Under a Private Membership Association

 

• Operate a health (or other type of business) association outside the jurisdiction and authority of federal and state government and agencies involving association activities.

• Maintain greater privacy of financial and business affairs of your health association activities.

• Greater security of being able to continue operation in a world of changing laws and politics.

• Increased profits due to unrestricted and beneficial structuring and strategies not available to regulated health association.

• Instead of conducting business under a legal loophole, operate under a legal exemption decided by the supreme law of the land, i.e., the Supreme Court decisions interpreting the U.S. Constitution.