OPINION
This appeál concerns the constitutionality of four provisions of Hawaii’s campaign finance laws under
Citizens United v. Federal Election Commission,
558.U.S. 310,
I. Background
The plaintiffs are Jimmy Yamada, Russell Stewart and A-l. Before the 2010 general election, Yamada and Stewart each sought to contribute $2,500 to the Aloha Family Alliance-Political Action Committee (AFA-PAC), a registered “noncandi-date committee” that makes independent campaign expenditures in Hawaii elections. They were forbidden from doing so, however, by Hawaii Revised Statute • (HRS) § 11-358, which prohibits any person from “mak[ing] contributions to a noncandidate committee in an aggregate amount greater than $1,000 in an election.”
Plaintiff A-l is a Hawaii electrical-construction corporation that makes campaign contributions and engages in political speech. Yamada is its CEO. During the 2010 election, A-l' contributed over $50,000 to candidates, candidate committees and party committees. It also purchased three newspaper advertisements at a cost of $2,000 to $3,000 each. Under the heading “Freedom Under Siege,” these advertise
As a result of these expenditures and contributions, Hawaii law required A-l to register as a “noncandidate committee” as defined by HRS § 11-302. Section 11-302 imposes reporting and disclosure requirements on any organization that has “the purpose of making or receiving contributions, making expenditures, or incurring financial obligations to influence [elections]” over $1,000 in the aggregate for an election cycle. Id.; see HRS § 11 — 321(g). A-l, which plans to run similar advertisements and to make similar contributions to candidates in the future, objects to both the disclaimer requirement and the non-candidate committee registration and reporting requirements.
If A-l is relieved of the obligation of registering as a noncandidate committee, it could be subject to reporting requirements associated with “electioneering communications” because it seeks to publish newspaper advertisements that mention candidates by name shortly before an election. See HRS § 11-341. Every entity that makes a disbursement for an electioneering communication, such as A-l’s newspaper advertisements, must report certain identifying information to the Commission within 24 hours of certain disclosure dates. See id. Under the regulations in effect when A-l filed this action, if A-l were to remain a noncandidate committee, however, it would not have to file an electioneering communications report or comply with the provisions of HRS § 11-341. See Haw. Admin. Rule (HAR) § 3-160-48. 1
Finally, A-l is often a state government contractor, and when it has such contracts, Hawaii law prohibits it from making campaign contributions to candidates or candidate committees. See HRS § 11-355. A-1 challenges that prohibition as applied to its speech, although it declares it seeks to contribute only to lawmakers who neither award nor oversee its public contracts.
Shortly before the 2010 primary election, Yamada, Stewart and A-l filed a nine-count complaint challenging the constitutionality of five provisions of Hawaii campaign finance law. Yamada and Stewart challenged the $1,000 limit on contributions to noncandidate committees, HRS § 11-358, and A-l challenged four other provisions: (1) the requirement that it register as a noncandidate committee and the associated expenditure definition, HRS § 11-302; (2) if it does not have to register as a noncandidate committee, the requirement that it report identifying information when it makes an electioneering communication, HRS § 11-341; (3) the requirement that its advertisements include certain disclaimers, HRS § 11-391; and (4) the ban on contributions from government contractors to state legislative candidates, HRS § 11-355.
In October 2010, the district court preliminarily enjoined enforcement of the $1,000 contribution limit, HRS § 11-358, as applied to Y'amada’s and Stewart’s pro
On the parties’ cross-motions for summary judgment, the district court permanently enjoined the $1,000 contribution limit, HRS § 11-358, as applied to Yama-da’s and Stewart’s contributions to AFA-PAC and rejected each of A-l’s constitutional challenges.
See Yamada v. Weaver,
Yamada and Stewart sought their attorney’s fees under 42 U.S.C. § 1988 based on their successful constitutional challenge to the $1,000 contribution limit. The district court awarded them $60,152.65 in fees and $3,623.29 in costs. Yamada and Stewart appeal that award in several respects, including the district court’s denial of the fees they incurred defending against the defendants’ abandoned appeal of the preliminary injunction ruling.
We have jurisdiction under 28 U.S.C. § 1291 and review A-l’s constitutional challenges de novo.
See Human Life,
II. Due Process Vagueness Challenge
We begin by addressing A-l’s argument that § 11-302’s definitions of “expenditure,” “noncandidate committee” and “advertisement” are unconstitutionally vague under the Due Process Clause of the Fourteenth Amendment. A law is unconstitutionally vague when it “fails to provide a person of ordinary intelligence fair notice of what is prohibited, or is so standardless that it authorizes or encourages seriously discriminatory enforcement.”
United States v. Williams,
In evaluating A-l’s challenges, we must consider “any limiting construction that a state court or enforcement agency has proffered.”
Ward,
A. Hawaii’s Expenditure and Noncan-didate Committee Definitions Are Not Vague Given the Commission’s Narrowing Construction
A-l’s first vagueness challenge is to the expenditure and noncandidate committee definitions. Section 11-302 defines an “expenditure” to include:
(1) Any purchase or transfer, of money or anything of value, or promise or agreement to purchase or transfer money or anything of value, or payment incurred or made, or the use or consumption of a nonmonetary contribution for the purpose of:
(A) Influencing the nomination for election, or the election, of any person seeking nomination for election or election to office, whether or not the person has filed the person’s nomination papers;
(B) Influencing the outcome of any question or issue that has been certified to appear on the ballot at the next applicable election....
HRS § 11-302 (emphasis added). It defines a “noncandidate committee” as:
[A]n organization, association, party, or individual that has the purpose of making or receiving contributions, making expenditures, or incurring financial obligations to influence the nomination for election, or the election, of any candidate to office, or for or against any question or issue on the ballot....
Id.
(emphasis added). Noncandidate committees are Hawaii’s version of independent expenditure committees, similar to the Washington “political committee” definition we addressed in Human Life. See
A-l challenges these definitions under
Buckley v. Valeo,
Like the district court, we assume without deciding that the term “influence” may be vague under some circumstances. “Conceivably falling within the meaning of ‘influence’ are objectives as varied as advocacy for or against a candidate’s election; championing an issue for inclusion in a candidate’s platform; and encouraging all candidates to embrace public funding.”
Nat’l Org. for Marriage v. McKee,
A-l argues that the proffered limiting construction does not render § 11-302 constitutional because (1) it is inconsistent with the plain language of the statute, thus barring us from adopting it, and (2) even if we could adopt it, the challenged definitions remain unconstitutionally vague. We find neither argument persuasive.
1.
The Commission’s proffered construction is not inconsistent with the plain language of the statute. We have previously noted that the term “influencing” is susceptible to a narrowing construction,
see ACLU of Nev. v. Heller,
Moreover, the Commission reasonably, construes the its functional equivalent. After
Buckley,
case law and Federal Election Commission regulations have broadened the concept of express advocacy to include its “functional equivalent,” as defined in
Wisconsin Right to Life,
The legislative history of Hawaii’s non-candidate committee and expenditure def
A-l nonetheless contends we should not adopt the narrowing construction because it would not bind a state court and therefore provides insufficient protection for First Amendment values. We again disagree. By adopting a “ ‘readily apparent’ constitutional interpretation,” we provide A-l and other parties not before the court “sufficient protection from unconstitutional application of the statute, as it is quite likely nonparty prosecutors and state courts will apply the same interpretation.”
Planned Parenthood of Idaho, Inc. v. Wasden,
We hold that the Commission’s proffered construction is neither unreasonable nor the product of “strained statutory construction.”
Wasden,
2.
We also reject A-l’s argument that § 11-302’s definitions of “expenditure” and “noncandidate committee” are unconstitutionally vague even with this limiting construction in place. With the narrowing gloss, these definitions are sufficiently precise to provide “a person of ordinary intelligence fair notice of what is prohibited.”
Williams,
A-l resists this conclusion, advancing two arguments why the “appeal to vote” language is impermissibly vague. Neither is persuasive.
First, A-l contends the test is unconstitutionally vague because Hawaii’s law applies to a broader range of communications than the provision upheld in
Wisconsin Right to Life. Wisconsin Right to Life
sustained the functional equivalent test against a vagueness challenge to the federal definition of electioneering communications, which covers only broadcast communications,
see
Second, the validity of the functional equivalent test has not been undermined by Citizens United, which struck down the federal electioneering communication definition, see 2 U.S.C. § 434(f)(3), for which the test was first developed. As the First Circuit explained in rejecting an identical argument:
The basis for Citizens United’s holding on the constitutionality of the electioneering expenditure statute had nothing to do with the appeal-to-vote test.... Instead, the decision turned ón a reconsideration of prior case law holding that a corporation’s political speech may be subjected to greater regulation than an individual’s. The opinion offered no view on the clarity of the appeal-to-vote test. In fact, the Court itself relied on the appeal-to-vote test in disposing of a threshold argument that the appeal should be resolved on narrower, as-applied grounds.
McKee,
Accordingly, we sustain Hawaii’s non-candidate committee and expenditure definitions from A-l’s vagueness challenges. The term “influence” is readily and reasonably interpreted to encompass only “communications or activities that consti
B. Hawaii’s Advertising Definition is Not Unconstitutionally Vague
A-l argues that § 11-302’s advertising definition is unconstitutionally vague because it uses the terms “advocates,” “supports” and “opposition.” This provision spells out when an advertisement - must include a disclaimer as to whether the ad was disseminated with or without the approval of a candidate. See HRS § 11-391. In relevant part, Hawaii law defines an “advertisement” as:
any communication, excluding sundry items such as bumper stickers, that:
(1) Identifies a candidate directly or by implication, or identifies an issue or question that will appear on the ballot at the next applicable election; and
(2) Advocates or supports the nomination, opposition, or election of the candidate, or advocates the passage or defeat of the issue or question on the ballot.
HRS § 11-302 (emphasis added).
Applying a narrowing construction to this definition, as before, the district court limited the reach of “advocates or supports the nomination, opposition, or election of the candidate” to express advocacy or its functional equivalent.
See Yamada III,
We agree with the Commission that Hawaii’s advertising definition is sufficiently precise without a limiting construction and therefore decline to adopt one. The words “advocates or supports” and “opposition” as used here are substantially similar to the words “promote,” “oppose,” “attack” and “support” that survived a vagueness challenge in
McConnell.
There, the Court considered a statute defining “Federal election activity” as “a public communication that refers to a clearly identified candidate for Federal office ... and that promotes or supports a candidate for that office, or attacks or opposes a candidate for that office (regardless of whether the communication expressly advocates a vote for or against a candidate).” 2 U.S.C. § 431(20)(A)(iii). The Court noted that “[t]he words ‘promote,’ ‘oppose,’ ‘attack,’ and ‘support’ clearly set forth the confines within which potential party speakers must act in order to avoid triggering' the provision.”
McConnell,
Decisions in other circuits also support that conclusion. In
McKee,
the First Circuit turned away a vagueness challenge to a Maine law using the terms “promoting,” “support” and “opposition” in several campaign finance provisions. The terms were not impermissibly vague because they were tied to an “election-related object*— either “candidate,” “nomination or election of any candidate” or “campaign.”
McKee,
As in
McKee,
Hawaii’s statutes are tied to an election-related object — the terms “advocates,” “supports” and “opposition” refer only to “the nomination ... or election of the candidate.” HRS § 11-302. So too does the federal law upheld in
McConnell,
which used the words “promote,” “oppose,” “attack” and “support” only in relation to a “clearly identified candidate for Federal office.” 2 U.S.C. § 431(20)(A)(iii). Although the terms “advocate,” “support” and “opposition” may not, in isolation, offer sufficient clarity as to what advertisements must include a disclaimer, their proximity to “nomination” or “election of the candidate” make clear the sort of campaign-related advertising for which a disclaimer must be included. Read as a whole and in context, the advertisement definition is sufficiently clear to “give the person of ordinary intelligence a reasonable opportunity to know what is prohibited.”
Grayned,
Finally, we reject A-l’s argument that “advocates,” a term that
McConnell
did not consider, makes Hawaii’s advertising definition unconstitutionally vague. A-l relies on
Buckley,
which considered a provision that prohibited any person or group from making “any expenditure ... relative to a clearly identified candidate during a calendar year which, when added to all other expenditures ... advocating the election or defeat of such candidate, exceeds $1,000.”
III. First Amendment Claims
A-l brings First Amendment challenges to (1) the registration, reporting and disclosure requirements that Hawaii places on “noncandidate committees” and (2) the requirement that political advertisements include a disclaimer stating whether they are broadcast or published with the approval of a candidate. Because the challenged laws provide for the disclosure and reporting of political spending but do not limit or ban contributions or expenditures, we apply exacting scrutiny.
See Family PAC v. McKenna,
A. The Noncandidate Committee Reporting and Disclosure Requirements Survive Exacting Scrutiny As Applied to A-l
We first consider whether the noncandidate committee reporting and disclosure requirements satisfy exacting scrutiny as applied to A-l. Looking to the burden side of the balance, the district court found that the “registration and disclosure requirements that come with noncandidate committee status do not present an undue burden on A-l.”
Yamada III,
The noncandidate committee is Hawaii’s method for monitoring and regulating independent political spending in state elections. In relevant part, a noncandidate committee is broadly defined as an organization “that has the purpose of making or receiving contributions, making expenditures, or incurring financial obligations to influence” Hawaii elections. HRS § 11-302. 5 To paraphrase the statute, and incorporating the Commission’s narrowing construction we adopted earlier (see page 20), the noncandidate committee definition is limited to an organization that:
Has “the purpose” of making or receiving contributions, or making expenditures, for communications or activities that constitute express advocacy or its functional equivalent (i.e., that are susceptible of no reasonable interpretation other than as an appeal to vote for or against a specific candidate to office, or for or against any question or issue on the ballot).
Expenditures are further defined as payments or nonmonetary contributions made for the purpose of communications or activities that constitute express advocacy or its functional equivalent. See id.; HRS § 11-302.
Noncandidate committee status is triggered only when an organization receives contributions or makes or incurs qualifying • expenditures totaling more than $1,000 during a two-year election cycle. See HRS § ll-321(g). Within 10 days of reaching this threshold, the organization must register as a noncandidate committee by filing an organizational report with the Commission. Id. In addition to registering, the organization must file an organizational report, designate officers, disclose its bank account information, and designate a treasurer responsible for recording contributions and expenditures and maintaining records for five years. See HRS §§ 11-321, 11-323, 11-324, ll-351(a). The committee’s contributions must be segregated from its other funds. See HAR § 3-160-21(c).
Every committee must also comply with reporting requirements tied to election periods. These requirements include disclosing contributions made and received, expenditures by the committee and the assets on hand at the end of the reporting period. See HRS §§ 11-331 (filing of reports), 1-1-335 (noncandidate committee reports), 11-336 (timing of reports for non-candidate committees), 11-340 (penalties for failure to file a required report). 6 The reports must be filed no later than 10 days before an election, 20 days after a primary election and 30 days after a general election; additional reports must be filed on January 31 of every year and July 31 after an election year. See HRS § ll-336(a)~ (d). If a noncandidate committee has aggregate contributions and expenditures of $1,000 or less in an election period, it need only file a single, final election-period report, or it may simply request to terminate its registration. See HRS §§ 11-326, 11-339(a).
A-l’s argument that these burdens are substantial is foreclosed by
Human Life,
which held that the burdens of compliance with Washington State’s materially indistinguishable registration and reporting requirements were “modest” and “not unduly onerous.”
A-l would distinguish Human Life’s, burden analysis on the ground that a non-candidate committee in Hawaii is subject to additional limits on the kinds of contributions it may receive. Specifically, A-l points to Hawaii law limiting contributions to noncandidate committees (HRS § 11— 358), and banning contributions from particular sources, including bans on contributions made in the name of another (HRS § 11 — 352), anonymous contributions (HRS § 11-353), or prohibitions on contributions from government contractors and foreign nationals (HRS §§ 11-355, 11-356). These differences do not distinguish Human Life. First, because A-l is self-financed and does not receive contributions, any funding limits or bans have no bearing on our as-applied constitutional analysis. Second, none of these limits imposes a substantial burden. The Commission concedes that the only constitutionally suspect limit A-l identifies — the $1,000 limit on contributions to noncandidate committees — is unconstitutional as applied to committees making only independent expenditures. The other limits apply to A-l regardless of its status as a noncandidate committee. Thus, there are no material differences between the burdens of non-candidate committee status in Hawaii and political committee status in Washington. 7
A-l has been complying with the non-candidate committee requirements for several years without difficulty. No separate organization need be created, as long as records are kept tracking financial activity by the noncandidate committee,
see
HAR § 3-160-21(c), and filing of the brief, required reports may be performed electronically at infrequent intervals,
see
HRS § 11-336. As the district court concluded, “[although the requirements might be inconvenient, the record does not indicate the burdens on A-l are onerous as matters of fact or law.”
Yamada III,
Turning to the governmental interests side of the equation, there is no question that Hawaii’s noncandidate committee requirements serve important government
Thus, Hawaii’s noncandidate committee regulations serve all three interests that the Supreme Court has recognized as “important” in the context of reporting and disclosure requirements: “providing the electorate with information, deterring actual corruption and . avoiding any appearance thereof, and gathering the data necessary to enforce more substantive electioneering restrictions.”
Canyon Ferry Rd. Baptist Church of E. Helena, Inc. v. Unsworth,
First, the reporting and disclosure obligations provide information to the electorate about who is speaking — information that “is vital to the efficient functioning of the marketplace of ideas, and thus to advancing the democratic objectives underlying the First Amendment.”
Human Life,
A-l nonetheless contends these reporting and disclosure requirements are not sufficiently tailored to survive exacting scrutiny because they apply to any organization that has “the purpose” of engaging
A-l’s argument rests on
Human Life,
which considered the Washington disclosure regime whereby an organization qualifies as a political committee if its “primary or one of [its] primary purposes is to affect, directly or indirectly, governmental decision making by supporting or opposing candidates or ballot propositions.”
does not extend to all groups with “a purpose” of political advocacy, but instead is tailored to reach only those groups with a “primary” purpose of political activity. This limitation ensures that the electorate has information about groups that make political advocacy a priority, without sweeping into its purview groups that only incidentally engage in such advocacy. Under this statutory scheme, the word “primary” — -not the words “a” or “the” — is what is constitutionally significant.
Id. at 1011 (emphasis added).
A-l correctly points out that the provision at issue in Human Life applied to organizations with a primary purpose of political advocacy, whereas Hawaii’s law applies to an organization with “the purpose” of political advocacy. Human Life, however, did not “hold that the word ‘primary’ or its equivalent [was] constitutionally necessary.” Id. It held only that this limitation was '“sufficient” for Washington’s political committee definition to withstand First Amendment scrutiny. Id. Human Life is therefore not controlling, and, reaching an issue we did not address there, we conclude that Hawaii’s noncandi-date committee reporting and disclosure requirements are sufficiently tailored as applied to A-l even without a “primary” modifier.
First, because Hawaii’s definition extends only to organizations having “the purpose” of political advocacy, it avoids reaching organizations engaged in only incidental advocacy. Under the Commission’s narrowing construction, noncandi-date committee status applies to organizations that have the purpose of making or receiving contributions, or making expenditures, for express advocacy or its functional equivalent.
Cf. Madigan,
Second, Hawaii’s registration and reporting requirements are not triggered until an organization makes more than $1,000 in aggregate contributions and expenditures during a two-year election period. See HRS § ll-321(g); HAR § 3-160-21(a). This threshold also ensures that an organization must be more than incidentally engaged in political advocacy before it will be required to register and file reports as a noncandidate committee. Third, an organization that “raises or expends funds for the sole purpose of producing and disseminating informational or educátional communications’^even if it also engages in limited political advocacy costing less than $1,000 in the aggregate — need not register as a noncandidate committee. See HRS §§ 11-302; ll-321(g). Fourth, if an organization registers as a noncandidate committee, but subsequently reduces its advocacy activity below the $1,000 threshold, it need only file a single report per election period or can terminate its registration. HRS § 11-339. 9
Given these limits and the extent of A-l’s past and planned political advocacy, we have little trouble concluding that the regulations are constitutional as applied to A-1. A-l, which made more than $50,000 in contributions and spent more than $6,000 on political ads in 2010, clearly engages in more than incidental political advocacy. Although A-l now pledges to limit its individual contributions to $250 and to contribute only to candidates, these proposed activities — combined with A-l’s expenditures on its political ads — plainly exceed incidental activity. Hawaii thus has a strong interest in regulating A-l.
Hawaii’s choice of a $1,000 registration and reporting threshold is also a. far cry from the zero dollar threshold invalidated in
Canyon Ferry,
A-l’s argument that regulations should reach only organizations with a primary purpose of political advocacy also ignores the “fundamental organizational reality that most organizations do not have just one major purpose.”
Human Life,
A-l’s political advocacy underscores this point. Although A-l’s political spending may be limited in proportion to its overall activities, the strength of Hawaii’s informational interest does not fluctuate based on the diversity of the speaker’s activities. Hawaii has an interest in ensuring the public can follow the money in an election cycle, regardless of whether it comes from a single-issue, political advocacy organization or a for-profit corporation such as A-1. The Commission makes the reported information freely available in searchable databases on its website, which provides Hawaiians with a vital window into the flow of campaign dollars.
10
This prompt, electronic disclosure' of contributions and expenditures “can provide ... citizens with the information needed to hold corporations and elected officials accountable for their positions and supporters,”
Citizens United,
Furthermore, Hawaii’s noncandidate committee definition, by extending beyond organizations making political advocacy a priority, avoids the circumvention of valid campaign finance laws and disclosure requirements.
See Human Life,
[Limiting disclosure requirements to groups with the major purpose of influencing elections would allow even those very groups to circumvent the law with ease. Any organization dedicated primarily to electing candidates or promoting ballot measures could easily dilute that major purpose by just increasing its non-electioneering activities or better yet by merging with a sympathetic organization that engaged in activities unrelated to campaigning.
Madigan,
[A-1] has purposely not created a separate organizational structure for election-related activity, choosing instead to register itself (A-l A-Lectrician, Inc.) as a noncandidate committee. If it were allowed to avoid registration merely because its political activity is small proportionally to its overall activities (as an electrical contractor and perhaps as a pure issue advocacy organization), it would encourage any affiliated noncandi-date committee to avoid disclosure requirements by merging its activities into a larger affiliated organization.
Yamada III,
In sum, the noncandidate committee definition and accompanying reporting and disclosure requirements are substantially related to Hawaii’s important interests in informing the electorate, preventing corruption or its appearance, and avoiding the circumvention of valid campaign finance laws. Because the burden of complying with this disclosure scheme is modest compared to the significance of the interests being served, we uphold Hawaii’s noncan-didate committee reporting and disclosure requirements as applied to A-l.
In doing so on an as-applied basis, we have no occasion to consider whether Hawaii law would withstand exacting scrutiny as applied to another business or nonprofit group that seeks to engage in less substantial political advocacy than A-l. We decline to “speculate about ‘hypothetical’ or ‘imaginary’ cases.”
Wash. State Grange v. Wash. State Republican Party,
B. The Disclaimer Requirement for Advertisements is Constitutional Under Citizens United
A-1 contends that Hawaii’s requirement that political advertising include a disclaimer as to the affiliation of the advertiser with a candidate or candidate committee cannot survive exacting scrutiny. “Advertisements” for purposes of Hawaii election
A-l seeks to place advertisements that (1) mention a candidate by name; (2) run in close proximity to an election; and (3) include language stating that particular candidates “are representatives who do not listen to the people,” “do not understand the importance of the values that made our nation great” or “do not show the aloha spirit.” It argues the disclaimer require.ment is unconstitutional because it regulates the content of speech itself and is therefore an even greater incursion on its First Amendment rights than reporting requirements. A-l further contends a disclaimer can' be mandated only for speech that is a federal electioneering communication, as defined by federal law, or that is express advocacy, not including its functional equivalent.
We agree with the district court that the disclaimer requirement survives exacting scrutiny as applied to A-l’s newspaper advertisements. Like the noncandi-date committee requirements, the disclaimer serves an important governmental interest by informing the public about who is speaking in favor or against a candidate before the election and imposes only a modest burden on First Amendment rights. A-l’s arguments to the contrary are all but foreclosed by
Citizens United,
First, the disclaimer requirement imposes only a modest burden on A-l’s First Amendment rights. Like disclosure requirements, “[disclaimer ... requirements may burden the ability to speak, but they impose no ceiling on campaign-related activities and do not prevent anyone from speaking.”
Id.
at 366,
Second, requiring a disclaimer is closely related to Hawaii’s important governmen
Accordingly, the disclaimer requirement does not violate the First Amendment as applied to A-l’s political advertisements.
C. A-l Lacks Standing to Challenge the Electioneering Communications Reporting Requirements
A-l acknowledges that, at the time it filed this action, it lacked standing to challenge the electioneering communications law if it must continue to register as a noncandidate committee.
See Washington Envtl. Council v. Bellon,
D. The Contractor Contribution Ban is Constitutional Even As Applied to Contributions to Legislators Who Neither Award nor Oversee Contracts
A-l’s final First Amendment challenge is to Hawaii’s ban on contributions by government contractors. The challenged provision makes it
unlawful for any person who enters into any contract with the State, any of the counties, or any department or agency thereof either for the rendition of personal services, the buying of property, or furnishing of any material, supplies, or equipment to the State, any of the counties, any department or agency thereof, or for selling any land or building to the State, any of the counties, or any department or agency thereof, if payment for the performance of the contract or payment for material, supplies, equipment, land, property, or building is to be made in whole or in part from funds appropriated by the legislative body, at any time between the execution of the contract through the completion of the contract, to:
... Directly or indirectly make any contribution, or promise expressly or impliedly to make any contribution to any candidate committee or noncandidate committee, or to any candidate or to any person for any political purpose or use;
HRS § ll-355(a).
A-l does not challenge the ban as applied to contributions it makes to lawmakers or legislative candidates who either decide whether it will receive a contract or oversee its performance of a contract. Instead, A-l asserts it intends to make contributions only to lawmakers or candidates who will neither award nor oversee its contracts, and it argues the government contractor contribution ban is unconstitutional solely as applied to those intended contributions. 16
A-1 does not argue that Hawaii’s government contractor contribution ban is unconstitutional as a general matter. The Second Circuit confronted a similar ban in
Green Party of Connecticut v. Garfield,
.The same reasoning applies here. Hawaii’s government contractor contribution ban serves sufficiently important governmental interests by combating both actual and the appearance of quid pro quo corruption.
Green Party,
A-l’s narrower argument that the contractor contribution ban is unconstitutional as applied to its contributions to lawmakers and candidates who neither award nor oversee its contracts is also without merit. Hawaii’s interest in preventing actual or the appearance of quid pro quo corruption is no less potent as applied to -A-l’s proposed contributions because the Hawaii legislature as a whole considers all bills concerning procurement. Thus, although an individual legislator may not be closely involved in awarding or overseeing a particular contract, state money can be spent only with an appropriation by the entire legislature. See Haw. Const, art. VII, §§ 5, 9. Hawaii reasonably concluded that contributions to any legislator could give rise to the appearance of corruption.
In essence, A-l contends that Hawaii’s contractor ban should be tailored more narrowly, but narrower tailoring is not required here. There is no question the ban is closely drawn to the state’s anticor-ruption interest as a general matter, and we decline to revisit the legislature’s judgment not to craft a still narrower provision. Closely drawn scrutiny requires “a fit that is not necessarily perfect, but reasonable,” and Hawaii’s contractor contribution ban is a reasonable response to the strong appearance of corruption that existed at the time of the legislature’s actions.
McCutcheon,
Even if narrower tailoring were required, A-l’s proposal for a narrower ban is unworkable. A-l does not explain how it would determine, before the election, which candidates would neither award nor oversee any of its contracts. The membership of the various legislative committees
[During the 2011 Legislative Session], A-l testified ... in favor of a construction and procurement-related bill regarding the University of Hawaii. At least three Legislators that served on committees that considered the bill (and voted in favor of it) also received campaign contributions from A-l in the 2010 elections. And A-l made contributions to opponents of fifteen other Legislators who considered the bill.
Yamada III,
For these reasons, we hold that Hawaii’s government contractor contribution ban survives closely drawn scrutiny even as applied to A-l’s proposed contributions to candidates who neither decide whether A-1 receives contracts nor oversee A-l’s contracts.
IV. Attorney’s Fees
Finally, we consider the district court’s fee award to Yamada and Stewart (the plaintiffs) for their successful constitutional challenge to the $1,000 limit on contributions to noncandidate committees, HRS § 11-358. Under 42 U.S.C. § 1988(b), the district court had discretion to award “the prevailing party ... a reasonable attorney’s fee.” We review the award for an abuse of discretion, but any element of legal analysis that figures into the district court’s decision is reviewed de novo.
See Watson v. Cnty. of Riverside,
In October 2010, the district court granted a preliminary injunction in favor of the plaintiffs on their claim that HRS § 11-358, limiting to $1,000 contributions to noncandidate committees, violates the First Amendment. The defendants then filed an interlocutory appeal. After the parties finished briefing in this court, however, the defendants dismissed the appeal, presumably in light of an intervening decision upholding a preliminary injunction of a similar contribution limit.
See Thalheimer,
Based on their successful constitutional challenge to § 11358, Yamada and Stewart sought attorney’s fees and costs, including those fees incurred in defending against
The plaintiffs contend, and we agree, that the district court’s analysis was flawed for two reasons. First, contrary to the district court’s analysis, Yamada .and Stewart were not yet prevailing parties when the defendants dismissed their interlocutory appeal and could not have requested fees at that time. A court may award attorney’s fees under § 1988 only to a “prevailing party,” and a plaintiff prevails for purposes of § 1988 only “when actual relief on the merits of his claim materially alters the legal relationship between the parties by modifying the defendant’s behavior in a way that directly benefits the plaintiff.”
Higher Taste, Inc. v. City of Tacoma,
The district court concluded that the plaintiffs were prevailing parties under
Watson,
but
Watson
is distinguishable. As explained in
Higher Taste, Watson
stands for the proposition that, “when a plaintiff wins a preliminary injunction
and the case is rendered moot before final judgment,
either by the passage of time or other circumstances beyond the parties’ control, the plaintiff is a prevailing party-eligible for a fee award.”
Higher Taste,
We disagree. Because the preliminary injunction order could be negated by a final decision on the merits, it was an interlocutory order that did not confer prevailing party status on the plaintiffs when the defendants dismissed their appeal.
Furthermore, because the plaintiffs were not yet prevailing parties when the defendants dismissed the interlocutory appeal, the district court erred by relying on
Cummings II
to deny them attorneys fees for the appeal.
Cummings II
was the second appeal before this court in a case proceeding under § 1983. The district court granted summary judgment to the plaintiffs in the underlying case, and the defendant appealed that final order. In
Cummings v. Connell,
[plaintiffs’ application for attorneys’ fees and expenses incurred on appeal in Cummings I should have been filed with the Clerk of the Ninth Circuit. Ninth Circuit Rule 39-1.8 authorizes us to transfer a timely-filed fees-on-appeal request to the district court for consideration, but the decision to permit the district court to handle the matter rests with the court of appeals. In the absence of such a transfer, the district court was not authorized to rule on the request for appellate attorney’s fees.
Id.
at 947-48.
20
See Natural Res. Def. Council, Inc. v. Winter,
Cummings II,
however, did not consider a situation in which a party prevails on interlocutory review and only
subsequently
becomes entitled to attorney’s fees under a fee-shifting statute such as § 1988. When a plaintiff is not entitled to attorney’s fees after an interlocutory appeal, as was the case here, it cannot immediately request attorney’s fees from this court. Should the plaintiff subsequently become a prevailing party, however, it should presumptively be eligible for attorney’s fees incurred during the first appeal, because that appeal likely contributed to the success of the underlying litigation.
See Crumpacker v. Kansas, Dep’t of Human Res.,
Here, because Yamada and Stewart prevailed in an interlocutory appeal, and subsequently became prevailing parties after the district court entered judgment in their favor, the district court erred by failing to consider whether to award them reasonable appellate attorney’s fees. We hold that Yamada and Stewart are entitled to attorney’s fees arising from the prior appeal. The matter is referred to the Ninth Circuit Appellate Commissioner to determine the amount of fees to be awarded. 21
V. Conclusion
We affirm the judgment of the district court on the merits of A-l’s constitutional claims. We vacate the district court’s fee award to Yamada and Stewart in part and refer the matter to the Ninth Circuit Appellate Commissioner for a determination of the proper fee award arising out of the interlocutory appeal. Each party shall bear its own costs on appeal.
AFFIRMED IN PART, REVERSED IN PART; REFERRED TO THE APPELLATE COMMISSIONER WITH INSTRUCTIONS.
Notes
. On November 5, 2014, an amendment to HRS § 11-341 went into effect, requiring registered noncandidate committees to file electioneering communications statements. See 2013 Haw. Sess. L. Act 112.
.
A-l draws a different inference from this legislative history, arguing that the legislature's retention of the word "influence” after
Buckley
suggests that the legislature did not intend to limit the law to express advocacy and its functional equivalent.
See Va. Soc’y for Human Life, Inc. v. Caldwell,
. Like federal courts, Hawaii courts construe state statutes to avoid constitutional infirmities whenever possible.
See, e.g., Kapiolani Park Pres. Soc’y v. City & Cnty. of Honolulu,
. Joining the First, Second and Fourth Circuits, we reject A-l’s argument that
McCon
. Although noncandidate committee status also extends to an individual who makes contributions or expenditures not of his or her own funds, see HRS § 11-302, the parties focus solely on noncandidate committee status for organizations, and we shall do the same.
. The Hawaii Legislature slightly revised the reporting requirements after the district court granted summary judgment to the Commission. See 2013 Haw. Sess. Laws 209-10 (S.B. 31) (amending HRS §§ 11-335, 11-336). We consider the version of the reporting statutes in effect at the time this suit was filed. In any event, the minor amendments do not affect our constitutional analysis.
.
The burdens of noncandidate committee status in Hawaii are also distinguishable from the burdens of federal “PAC status” that A-l labels "onerous,”, citing to the Supreme Court’s decisions in
Federal Election Commission v. Massachusetts Citizens for Life, Inc. (MCFL),
. Hawaii’s definition is distinguishable from the Wisconsin regulation struck down in Barland,
. The reporting requirements of Hawaii law are more narrowly tailored than the “onerous” and "potentially perpetual” reporting requirement preliminary enjoined in
Minnesota Citizens Concerned for Life, Inc. v. Swanson,
. See http://ags.hawaii.gov/campaign/nc/.
. Although not directly relevant to A-l's challenge — because A-l's political activities are self-financed and it receives no contributions — we also note the heightened importance of noncandidate committee disclosure requirements now that the limit on contributions to noncandidate committees has been permanently enjoined. A single contributor may provide thousands of dollars to independent committees, and yet avoid disclosing its identity if the committee makes all the expenditures itself. The noncandidate committee definition acts to ensure that the contributor’s identity will be disclosed to the voting public. Hawaii’s efforts to provide transparency would be incomplete if disclosure was not required in such circumstances.
. A-l does not challenge the related requirement that all political advertisements disclose the name and address of the person or entity paying for the ad. See HRS § ll-391(a)(l).
. This provision was amended during the pendency of this appeal, but the minor changes are immaterial. See 2014 Hawaii Laws Act 128 (H.B. 452).
. We reject A-1’s comparison to the disclaimer invalidated by the Supreme Court in
McIntyre v. Ohio Elections Commission,
. Nothing we say today (other than as a matter of stare decisis) precludes A-l from bringing a future challenge to the electioneering communication reporting requirements to which, it claims, it is now subject.
. A-l challenges only its right to make contributions to state legislative candidates while acting as a state government contractor. It does not distinctly argue, for example, that § ll-355(a) impermissibly infringes its right to contribute to county or municipal officials while serving as a state contractor. We therefore have no occasion to decide whether the ban would survive First Amendment scrutiny as applied to those circumstances.
. We previously noted that
Beaumont
and other cases applying the closely drawn standard to contribution limits remained good law after
Citizens United. See Thalheimer,
. Hawaii’s contractor contribution ban is narrower than many others. The ban upheld in
Green Party,
for example, applied not only to contractors but also to principals of that contractor and to family members of a contractor or of a principal of a contractor.
See Green Party,
.
Higher Taste
extended Watson's. prevailing party analysis to circumstances in which a plaintiff obtains a preliminary injunction and then the case is dismissed upon the parties' stipulation following settlement, when the settlement agreement provides the plaintiff with "what it had hoped to obtain through a permanent injunction.”
. Ninth Circuit Rule 39-1.6(a) reads:
Absent a statutory provision to the contrary, a request for attorneys’ fees shall be filed no later than 14 days after the expiration of the period within which a petition for rehearing may be filed, unless a timely petition for rehearing is filed. If a timely petition for rehearing is filed, the request for attorneys fees shall be filed no later than 14 days after the Court's disposition of the petition.
This amended version of Ninth Circuit Rule 39-1.6 omits the "shall be filed with the Clerk” language of the prior version, but as the district court correctly concluded, the amendment did not alter the substance of the rule.
. The plaintiffs further argue Ninth Circuit Rule 39-1.6 cannot'restrict the jurisdiction of the district court to award attorney's fees related to a prior appeal where a fee-shifting statute, such as § 1988, does not preclude the district court from awarding such fees. The Eighth Circuit agreed with this position in
Little Rock School District v. State of Arkansas,
