Julie KEIM, Petitioner v. DOUGLAS COUNTY SCHOOL DISTRICT, Respondent
Supreme Court Case No. 15SC502
Supreme Court of Colorado.
July 3, 2017
2017 CO 81
¶49 For all of the foregoing reasons, under either the Conley standard or Warne‘s “plausibility” standard, we conclude that N.M. has not sufficiently stated a viable negligence claim on which relief could be granted.
¶50 Accordingly, we agree with the division below that the district court properly granted Trujillo‘s motion to dismiss.
III. Conclusion
¶51 For these reasons, we affirm the judgment of the court of appeals and remand this case for further proceedings consistent with this opinion.
JUSTICE MÁRQUEZ does not participate.
Attorneys for Respondent: Brownstein Hyatt Farber Schreck, LLP, Jason R. Dunn, Joshua A. Weiss, Denver, Colorado.
Attorneys for Amicus Curiae Colorado Common Cause: Ireland Stapleton Pryor & Pascoe, PC, Benjamin J. Larson, Denver, Colorado.
Attorney for Amicus Curiae Colorado Ethics Watch: Luis Toro, Denver, Colorado.
Attorneys for Amicus Curiae Colorado Secretary of State: Cynthia H. Coffman, Attorney General, Frederick R. Yarger, Solicitor General, Matthew D. Grove, Assistant Solicitor Generаl, Denver, Colorado.
JUSTICE MÁRQUEZ delivered the Opinion of the Court.
¶ 1 In 2013, Douglas County School District (the “District“) used public funds to commission a white paper (the “Hess Report“) supportive of the District‘s reform agenda. The Hess Report referenced an upcoming school board election and briefly profiled existing school board members, all of whom supported the reform agenda. The District included a link to the Hess Report in an email distributed to 85,000 Douglas County residents several weeks before the November 2013 school board election.
¶ 2 We are asked to decide whether the Hess Report was a prohibited campaign “contribution” under
I. Facts and Procedural History
¶ 3 Petitioner Julie Keim was a candidate for one of four open seats in the 2013 Douglas County school board election. Douglas County School District is a political subdivision of the State subject to the FCPA. See Bagby v. Sch. Dist. No. 1, 186 Colo. 428, 432, 528 P.2d 1299, 1302 (1974). According to Keim, after the 2009 school board election, the District began implementing a conservative “reform agenda,” which she chаracterized as “[school] choice-focused” and supportive of charter schools. The 2011 election brought in three additional reform agenda board members; thereafter, the entire board and the District‘s superintendent unanimously supported the reform agenda.
¶ 4 In 2013, four school board seats were up for election. In February of that year, the District contracted with the American Enterprise Institute (“AEI“) to prepare a white paper about Douglas County‘s school system. This white paper, authored by Dr. Frederick M. Hess and Max Eden of AEI, ultimately became known as the Hess Report.
¶ 5 The agreement between the Distriсt and AEI stated that AEI would “research, create, publish[,] and publicize” a twenty-five- to thirty-page white paper that would:
- Describe Douglas County, the school system, and [the superintendent‘s] background and experience.
- Describe some of the problems that Douglas County‘s efforts are meant to address.
- Describe what Douglas County is doing in terms of curriculum, instruction, programs, systems in place, etc.
- Explain how this is new and different; describe some of the advantages of the model.
- Delineate some of the challenges Douglas County faces based on this model.
- Explain lessons learned from the model.
The District agreed to pay AEI $30,000 for the report, $15,000 of which was ultimately paid by the District, and $15,000 of which was paid by the Douglas County School District Foundation, a non-profit organization.
¶ 6 AEI‘s research assistant wrote to the District‘s community relations officer in advance of a research visit to Colorado, seeking guidance from the District regarding the focus and direction of the report:
Ideally we would love for you all to help us help you. We can touch base on this as the date draws closer, but we would prefer not to go out there with a blank slate. Rather, we would prefer it if you would tell us what you want us to focus on, what is most worthy of attention, what you‘d like to see written about and what your general angle on it (and thе paper) is. This is just something to flag to [the superintendent] so she can mull it over a bit. Perhaps all of the interviews are already lined up with a certain focus in mind, but if not we encourage you to tailor our time out there to directed interviews with folks that you want to make a particular point of in us meeting and writing about them.
¶ 7 The District thus worked with AEI as it conducted research, and made changes to the draft report.
¶ 8 AEI finalized and published the twenty-two-page Hess Report in September 2013. Relevant here, the Report described the reform agenda as “perhaps the nation‘s boldest attempt at suburban school reform“; “unusually ambitious“; “remarkable in the annals of contemporary school reform“; and “remarkable and illuminating.” The report contained brief profiles of each of the existing board members. An approximately three-page section called “Electing a Reform Board” described the history of the existing board and
Four board members will stand for reelection in November 2013. As they prepare, there are murmurs that the [American Federation of Teachers] might spend substantial sums to defeat them. Several Colorado Democrats have made similar noises. The November results promise to say a great deal about where matters stand in [Douglas County], and may shed light on the position of teachers[‘] unions in conservative communities across America.
The report also discussed a number of other topics, including the District‘s voucher program, new assessment methods, changes to teacher pay, and efforts to use big data tools.
¶ 9 On September 18, 2013, the District emailed its weekly e-newsletter to approximately 85,000 Douglаs County residents. Among several articles, the e-newsletter contained a headline that read “[Douglas County School District]: ‘The most interesting school district in America.‘” The text below the headline referred to the Hess Report and read, in part, that the “paper focuses on Douglas County reforms including choice and pay for performance.” The newsletter provided a link through which readers could access and download the full Hess Report.
¶ 10 Shortly thereafter, Keim filed a campaign finance complaint against the District with the Secretary of State under
¶ 11 In its answer, the District admitted that District resources were used to fund the Hess Report, but denied that the report was political in nature and denied that it had used District resources to influence the outcome of the board election. The District stated it had no knowledge of how the report was used by any board candidates, and it denied Keim‘s allegation that the District made the report available to the public “for the purpose of assisting specific candidates.”
¶ 12 At a two-day hearing before the Administrative Law Judge (“ALJ“) in December 2013, Keim clarified that her claim was based on
¶ 13 In a written order, the ALJ concluded that the District violated the FCPA by contracting for and disseminating the Hess Report. The ALJ found that “AEI was hired to write a report of which the District would approve, and not an independent review,” that the “Hess Report was commissioned and published as a means to support ... the reform agenda and any candidates who would further that agenda,” and that “the District spent public funds to influence the outcome of the Board election when it commissioned and paid $15,000 for the Hess Re
¶ 14 The District appealed, and the court of appeals reversed in a divided opinion. Keim v. Douglas Cty. Sch. Dist., 2015 COA 61, ¶ 1, 399 P.3d 722, 723. The panel majority focused on the meaning of the phrase “given, directly or indirectly, to a candidate” in the constitutional definition of “contribution.” Id. at ¶¶ 33-35 (citing
¶ 15 Applying this definition, the panel majority held that the evidence did not establish that “the District put the Hess Report into the possession of, or otherwise provided it to, any candidate or someone acting on behalf of a candidate.” Id. at ¶ 40. The majority concluded that the ALJ applied an incorrect legal standard in reaching its conclusion that the District violated the FCPA. Id. at ¶ 41. The court reasoned that any incidental benefit to a pro-reform candidate as a result of the Hess Report‘s distribution would not be sufficient to establish that the District made a “contribution” under the applicablе definition. Id. The court thus concluded that the record did not support the ALJ‘s finding that in contracting for and disseminating the Hess Report, the District made a “contribution” in a campaign involving the election of a person to public office, in violation of the FCPA. Id. at ¶ 44.
¶ 16 In his dissent, Judge Taubman disagreed with the majority‘s conclusion that something of value must be placed in the possession of a third party for an indirect contribution to occur. Id. at ¶ 66 (Taubman, J., dissenting). Nothing in the definition of “contribution,” Judge Taubman noted, requires the presence of an intermediary or conduit. Id. at ¶ 69. Further, Judge Taubman disagreed with the majority‘s interpretation of the definition “to the extent that it requires that something of value must be given to someone acting on the candidate‘s behalf,” because that requirement does not appear in the definition. Id. at ¶ 72. Finally, he reasoned that, even applying the majority‘s framework, the “District violated the FCPA once it paid AEI $15,000 in public funds for a report promoting the candidacies of pro-reform agenda candidates.” Id. at ¶ 78.
¶ 17 Keim filed a petition for a writ of certiorari, contending that the court of appeals incorrectly interpreted the definition of “contribution” and incorrectly concluded that the evidence did not support the ALJ‘s findings and conclusions. We granted certiorari review2 and now affirm the judgment of the court of appeals.
II. Standard of Review
¶ 18 The interpretation of a constitutional provision is a question of law this court reviews de novo. People v. Boyd, 2017 CO 2, ¶ 3, 387 P.3d 755, 756-57. When construing a constitutional provision, this court must give effect to the intent of the electorate that adopted it. Colo. Ethics Watch v. Senate Majority Fund, LLC, 2012 CO 12, ¶ 20, 269 P.3d 1248, 1253. To do so, this court gives words “their ordinary and popular meaning.” Id., 269 P.3d at 1253-54 (quoting Davidson v. Sandstrom, 83 P.3d 648, 654 (Colo. 2004)). If the language of a provision is clear and unambiguous, it must be enforced as written. Id., 269 P.3d at 1254.
¶ 19 Judicial review of agency action is governed by
III. Analysis
¶ 20 Keim alleges that the District made a prohibited campaign contribution under
¶ 21 We begin our analysis by reviewing the relevant legal context in which the term “contribution” emerges. We then examine that term before evaluating whether the Hess Report was a prohibited contribution under
A. The Fair Campaign Practices Act and the Colorado Constitution
¶ 22 Colorado‘s Fair Campaign Practices Act (“FCPA” or “Act“),
¶ 23 The Act regulates campaign contributions by individual contributors and special interest groups. Colo. Common Cause, 102 P.3d at 1007. Relevant here, the FCPA “regulates expenditure of public monies by state agenciеs, departments, officials, and employees to prevent the state machinery from thwarting the electoral process.” Id. In particular,
No agency, department, board, division, bureau, commission, or council of the state or any political subdivision of the state shall make any contribution in campaigns involving the nomination, retеntion, or election of any person to any public office, nor shall any such entity make any donation to any other person for the purpose of making an independent expenditure, nor shall any such entity expend any moneys from any source, or make any contributions, to urge electors to vote in favor of or against any [ballot issue, referred measure, or recall measure].
¶ 24 Keim alleges that the District made a prohibited “contribution” to candidates for the 2013 Douglas County school board election in violation of
B. The Meaning of “Contribution” under Section 2(5)(a)(IV)
¶ 25 Consistent with our task of giving words their ordinary and popular meaning and enforcing the language of a clear and unambiguous provision as written, we conclude that a “contribution” under
¶ 26 The definition of “contribution” in
¶ 27 In this case, we are focused on the meaning of the phrase “given, directly or indirectly, to a candidate” in
¶ 28 Next, the adverb phrase “directly or indirectly” modifies the contributor‘s act of giving to the candidate. Thus, a “contribution” under
¶ 29 Although a thing of value “put into the possession of or provided to ... someone acting on the candidate‘s behalf” can qualify as a “contribution” under subparagraph IV, see Keim, ¶ 39, we disagree with the court of appeals that the definition limits indirect contributions under that provision to things of value given to persons “acting on the candidate‘s behalf,” as those words do not appear in subparagraph IV. In any event, a contribution made to someone “acting on the candidate‘s behalf” often will fall under a different definition of contribution. As noted above, the Colorado Constitution defines “contribution” to include the “payment, loan, pledge, gift, or advance of money, or guarantee of a loan, made to any candidate committee“; a “payment made to a third party for the benefit of any candidate committee“; and the “fair market value of any gift or loan of property made to any candidate committee.”
C. Application
¶ 30 As explained above, a “contribution” under
¶ 31 We assume that the Hess Report qualifies as a “thing of value” for purposes of the definition of “contribution” in
¶ 32 To the extent Keim argues that the Hess Report qualifiеd as a “contribution” under
¶ 33 Similarly, Keim contends that the Hess Report was “given to” the reform candidates because they were the recipients of the “benefits” of the report in the general sense. In other words, Keim argues, the Hess Report amounted to an endorsement of the reform agenda and explained the advantage of having a unified board to implement that agenda; the reform candidates received the benefit of that endorsement when the District distributed the report to Douglas County residents. Keim reasons that the purpose of the prohibition in
¶ 34 In sum, we hold that the District did not make a prohibited “contribution” to a campaign under
IV. Conclusion
¶ 35 We hold that the definition of “contribution” at issue here requires that: (1) a thing of value (2) be given to a candidate, either directly or indirectly, (3) in order to promote the candidate‘s election. See
JUSTICE GABRIEL does not participate.
Notes
- Whether an “indirect campaign contribution,” as prohibited by Colorado‘s Fair Campaign Practices Act, requires that something of value be placed in the possession of a third party for the benefit of a candidate.
- Whether the court of appeals’ decision in this case conflicts with the court of appeals’ decision in the case of Colorado Ethics Watch v. City and County of Broomfield, 203 P.3d 623, 626 (Colo.App. 2009), which held that the court must accept an Administrative Law Judge‘s (ALJ) factual findings as to whether the district intended to give the contribution “for the purpose of promoting a candidate‘s election,” unless the findings are clearly erroneous or unsupported by evidence in the record.
- Whether the court of appeals erred in concluding that the record did not support the ALJ‘s determination that the District violated fair campaign practice laws by contracting for and disseminating the Hess Report.
- The payment, loan, pledge, gift, or advance of money, or guarantee of a loan, made to any candidate committee, issue committee, political committee, small donor committee, or political party;
- Any payment made to a third party for the benefit of any candidate committee, issue committee, political committee, small donor committee, or political party;
- The fair market value of any gift or loan of property made to any candidate committee, issue committee, political committee, small donor сommittee or political party.
- “Contribution” includes, with regard to a contribution for which the contributor receives compensation or consideration of less than equivalent value to such contribution, including, but not limited to, items of perishable or nonpermanent value, goods, supplies, services, or participation in a campaign-related event, an amount equal to the value in excess of such compensation or consideration as determined by the candidate committee.
- “Contribution” also includes:
- Any payment, loan, pledge, gift, advance of money, or guarantee of a loan made to any political organization;
- Any payment made to a third party on behalf of and with the knowledge of the political organization; or
- The fair market value of any gift or loan of prоperty made to any political organization.
