*1 Luis; Mihalchick; Barbara Steve Conclusion Sheehy, Neilson; Kathleen Adminis above, set forth we For the reasons Judges trative Law Minnesota of the court. judgment district affirm the Hearings, Administrative Office of capacities; their Michael official Affirmed County Freeman, Hennepin Attorney, capacity, in his Defendants- official Appellees. Center;
Campaign Legal Democracy 21; Justice, and The Brennan Center Law, Amici on Behalf NYU School of Appellee. No. 10-3126. CITIZENS CONCERNED MINNESOTA Appeals, United States Court LIFE, INC.; Taxpayers The FOR Eighth Circuit. Minnesota; League of Coastal Travel 11, 2011. Submitted: Jan. LLC, Enterprises, Plaintiffs-Appel- 16, 2011. May Filed: lants, Granted, En Rehearing Opinion Banc v. July Vacated SWANSON, Attorney Lori
General, capacity; in her official Bob
Milbert; Scanlon; John Terri Ash
more; Bettermann; Hilda Felicia
Boyd; Greg McCullough, Minnesota
Campaign Finance and Public Disclo Members, in
sure Board their official Raymond
capacities; Krause, Chief Judge
Administrative Law
Minnesota Office of Administrative
Hearings, capacity; in his official Lipman,
Eric Assistant Chief Admin Judge Law
istrative Hearings, Administrative
Office of capacity;
his official Manuel Cer
vantes; Beverly Heydinger; Richard
appeal,
cutting]
7. On
Mr. Norris claims that we can-
the search warrant.” R.40 at 117.
judgment
the district court’s
The
affirm
based
district court did not believe
it had to
analyze
the reasonable manner which the war-
encounter with
the officers'
Mr. Nor
rant was executed because the
court
ris as
district
an execution of
search warrant be
Ohio,
finding
Terry
justified
made a factual
that the
cause it
under
warrant never
also was
Reply
(citing
Br. 8
was executed. See
R.40 at
James Terre IN, Coleson, LaRue, E. Joseph Richard E. Haute, Kaylan IN, L. Phillips, Terre Magnuson, Minneapolis, and James R. MN, brief, appellants. on the for Gilbert, Paul, MN, argued, Alan St. Mi- Freeman, chael O. Daniel P. Rogan, Sr. County Attorney, Assistant Jean Burdof Stack, County and Beth Assistant Attor- MN, Gilbert, neys, Minneapolis, Alan So- General, Garry Kristyn licitor John S. Anderson, AAG, Paul, MN, St. on the brief, appellees. Youn, Ladov, Mark
Monica and Mimi Marziana, York, NY, New amici curiae for The Brennan Center for Justice at NYU of Law. School Hebert, Malloy, J. Gerald Tara and Paul DC, Ryan, Washington, S. amici curiae for Legal Campaign Center. Wertheimer, Donald J. Simon and Fred DC, Washington, amici curiae for Democ- racy 21. RILEY, BYE Judge,
Before Chief MELLOY; Judges. Circuit MELLOY, Judge. Circuit Life, Minnesota Citizens Concerned for Inc., Minnesota, Taxpayers League The (col- LLC, Enterprises, Travel Coastal Citizens”) lectively “Minnesota are Minne- corporations challenging pro- sota several visions of election Minnesota’s Specifically, laws. Minnesota Citizens (1) seeks to invalidate Minnesota’s ban on entities, parties, other like making direct contributions corporations conjunction with candidates. parties and work candidates and regulation of how 917. may independent expenditures, make por- response, In Minnesota amended section. Minnesota defined the next laws. Minnesota re- tions of its election challenge response brings this longstanding prohibition tained a on direct decision in Court’s recent to candidates and corporate contributions v. Federal Election Com- Citizens United 211B.15, affiliated entities. Minn.Stat. — mission, U.S.-, 876, 175 most, according subdiv. 2. At to Minneso- (2010). At L.Ed.2d 753 the outset Citizens, permits corpora- ta below, Minnesota proceeding conduit funds to which tions to establish injunction. preliminary for a moved may others contribute. See id. subdiv. motion, and district court1 denied the contrast, regula- In Minnesota amended appeals this denial. Minnesota Citizens corporate independent expendi- tions affirm. We created two means which tures and *5 corporations expendi- could make such I. Id., 3; § tures. subdiv. Minn.Stat. 10A. provides part The First Amendment in 12, la. Minnesota first defined an subdiv. ... “Congress that shall make no law independent expenditure as: speech.” Inter- abridging the freedom advocating the expenditure expressly an provision, Supreme preting this Court clearly election or defeat of a identified in prior prec- Citizens United overruled its candidate, expenditure if the is made government may edent and held that the consent, express implied without the or making ban inde- not authorization, of, not cooperation or is, pendent expenditures, “political request at the or concert with or speech presented to the electorate that is of, suggestion any any candidate or can- candidate,” not coordinated with a advocat- committee principal campaign didate’s the election or defeat of a candidate. ing agent. or Supreme at 913. The 10A.01, § Minn Stat. subdiv. 18. Minneso- government may further held that the wishing to required corporations ta then corporations wishing force to make inde- expenditures make such to either “form[] speak through pendent register[ independent expenditure an] fund[s],” “separate segregated known as political expenditure if is in ex- fund (“PACs”), action political committees existing [contribute an] cess $100 “separate least where the PACs are associ- independent expenditure political commit- corporation” from the and where ation[s] 10A.12, § political tee or fund.” Id. sub- subject to “burdensome” PACs la; 211B.15, § div. see also Minn.Stat. regulations. Id. at 897. The subdiv. 3. Court, however, a upheld federal disclaim- law at If a a corporation er and disclosure issue and did chooses establish fund, precedent and its expressly prior political corporation overrule its al- then the lowing subject to a series of prohibit political direct fund are statutory requirements. to candidates and Under the re- Frank, 1. The Honorable Donovan W. United sota. Judge States District District of Minne- law, noncampaign ation to whom disburse- corporation must
vised political aggregate for the ments have been made that a treasurer appoint first fund, register must then purpose the treasurer excess of and the of each $100 days by filling disbursement; out within fourteen noncampaign the fund the sum of among other disclosing, disbursements; form two-page a noncampaign all and the deposi- all of the fund’s things, listing a nonprofit corpo- name and address of a and addresses of the the names tories and administrative assis- provides ration treasurer, treasur- fund, any deputy politi- committee or political tance to the 10A.14, 10A.12, Id. §§ subdiv. sub- ers. § cal fund. MinmStat. 10A.20. fund must also political 2. The divs. Moreover, political the treasurer for a fund funds from other funds. segregate its keep must certain records and make them 10A.12, If a Id. corporation § subdiv. 2. audit. Id. § 10A.13. Fi- available for fund, corporation to its a the sole donor dissolve, nally, if a fund wants to funds with an internal book- segregate can debts, dispose then must settle its device, spreadsheet. as a keeping such assets, a remaining and file termination established, fund must Once Id. § report. 10A.24. One method reports. periodic, file detailed As further dispose can which fund of its explained: court the district by returning assets is contributions to reports during file five The fund must 211B.12; 10A.01, their sources. year report and one general-election 26(2). subdiv. non-general-election year. during If, hand, on the other *6 report § 10A.20. The must Minn.Stat. existing politi- to to an chooses contribute liquid assets at disclose the amount fund, corporation subject cal then the is to beginning reporting period; of a the A statutory requirements. for-prof- fewer of each individual or name and address corporation only provide it need its name whose contributions within association and address for contributions made from $100; amount and year exceed general treasury. non-profit corpo- A contributions; the sum of date of such ration, contrast, also need to by would peri- during reporting regarding the under- disclose information od; that each loan made or received if lying source of the contribution the cor- $100; the name and address of exceeds $5,000 more than to a poration contributed lender; during receipts over $100 Similarly, political fund or committee. reporting period not otherwise list- corporation that solicits and receives con- ed; receipts; the sum of those the name political for a fund must disclose tributions or and address of each individual associ- the source of the contributions. entity made reporting ation to whom the case, appellants In this are three Minne- year expenditures exceeding within the corporations seeking to advance their sota $100; expenditures the sum of all made commercial interests. respective social and entity during the re- reporting for Life is a Minnesota Citizens Concerned the name and address of porting period; seeking to “secure non-profit corporation committee, fund, political each human life from protections for innocent committee, principal campaign party or through ef- conception until natural death unit in excess of to which contributions education, made; legislation, fective were the sum of all contri- $100 Minne- Taxpayer League The butions; any action.” the amount and nature of incurred; non-profit corporation advocating sota is advance of credit the name taxes, government, and for “lower limited and address of each individual or associ- natively empowerment taxpaying prior Supreme Ml citizens.” asserts that LLC, precedent, properly interpreted, when al- Finally, Enterprises, Coastal Travel lows the to limit direct contri- for-profit, limited-liability corporation is a butions to candidates and affiliated entities provides industry “retail ser- travel only when corporations have another vices.” Each for a corporation pur- exists speaking, means of which Minnesota Citi- pose nominating electing other than zens does not have because Minnesota candidates, specific but each functionally all banned forms of direct cor- to independent expenditures wishes make Moreover, porate contributions. Minneso- directly and to contribute to candidates ta Citizens claims that disput- political parties.2 filed companies ed election properly tailored enjoin to suit Minnesota elections laws on in light constitutionally heightened independent expenditures scrutiny. Finally, level of Minnesota Citi- contributions to candidates and argues zens that it satisfied the remaining parties preliminary and moved for a in- requirements issuing injunction. junction. The district court denied the disagree We and address each of Minneso- enjoin primarily motion because the cor- arguments ta Citizens’s in turn. porations failed to show a “likelihood of appeal success.” This followed. evaluating When whether to is preliminary injunction, sue a a court
II. (1) should prob consider four factors: argues Minnesota Citizens that the dis- ability that the movant will succeed on the (2) trict court erred in failing grant pre- merits; irreparable threat of harm liminary injunction. According (3) movant; Minne- the state of balance Citizens, sota likely prevail on the between this harm injury and the respect merits with corpo- the issue of granting injunction will inflict on other independent expenditures rate parties; because public interest. Data regulates Inc., such phase Sys., Inc. Sys., v. C L *7 (8th 109, Cir.1981). a manner prohibits. Citizens United 114 party A seeking Minnesota Citizens challenge maintains that Minne- to the validity duly of a enacted effectively sota retained its ban on corpo- state statute rigorous must meet a more independent expenditures by success, rate requir- however, standard of and show ing corporations separate to use “likely prevail entities— that it is to on the merits” e., political 1. speak by funds—to im- because of the deference owed to laws posing regulations “burdensome” on politi- which are the product of the democratic cal funds similar Minn., to those that process. the Su- Planned Parenthood N.D., preme Court found to Rounds, constitute a de facto S.D. v. 733 (8th in Cir.2008). ban Citizens Nevertheless, United. Minnesota Citi- as to the argues zens also that it likely prevail issue, is to specific merits of a “the burdens at on the issue of direct corporate contribu- preliminary injunction stage track the tions because Citizens broadly United burdens trial.” Gonzales v. O Centro holds that the First pro- Espirita Amendment Vegetal, Uniao do Beneficente any governmental 418, 429, scribes ban on 126 S.Ct. political speech. (2006). Minnesota Citizens alter- L.Ed.2d 1017 Additionally, a "major purpose" corporations question,” If the of the require then Minnesota law would were to "influence the corporations register nomination or election as action 10A.01, promote of a candidate or to defeat a or ballot committees. Minn.Stat. subdiv. 27.
3H materially imposes are indistin- ability Minnesota regarding court’s determination regulations prevail guishable will often the PAC moving party of a matter, in especially found to be unconstitution- Supreme Court determinative party where a cases First Amendment in Citizens United. ally burdensome restricts enjoin a law seeking to takes issue specifically Minnesota Citizens Nixon, 545 F.3d Phelps-Roper v. speech. requirement periodic with (8th Cir.2008); Planned see also funds, ap- and the reports, segregated (“If Parenthood, party F.3d at 732 disagree, of a treasurer. We pointment a thresh- proof makes the burden with provisions on cor- finding that Minnesota’s likely prevail it is on showing that old porate independent expenditures are simi- merits, court should then the district to the disclosure purpose lar effect Dataphase fac- weigh the other proceed Supreme upheld laws that Court tors.”). the denial of a Finally, we review Citizens United. of dis- injunction for an abuse preliminary argu- To Minnesota Citizen’s address cretion, may occur when “the dis- which ments, the Supreme we first turn to clearly court rests its conclusion trict United. In Court’s decision erroneous le- findings factual erroneous con- Supreme Parenthood, Planned gal conclusions.” constitutionality of a federal sidered the quotation marks F.3d at 733 omitted). “corporations un- prohibited law that using general treasury their
ions from
independent expenditures
make
A.
funds to
‘electioneering
speech
for
defined as
argues that
Citizens first
speech expressly
or for
ad-
communication’
impermissibly preserved
ban
defeat of a candi-
vocating the election or
(quoting
at 886
U.S.C.
date.”
laws. Minne-
amending its election
when
441b).
provisions
of federal
Related
that Minnesota still
Citizens asserts
sota
law,
corporations and
though, permitted
making indepen-
corporations from
bans
“sepa-
and administer
unions to establish
expenditures because
dent
(known
... po-
segregated fund[s]
rate
funds,
contribute to
only
can
PAC[s])
committee[s], or
litical action
This runs
separate
entities.
which
“moneys
limited
re-
purposes,”
these
but
“clear” hold-
afoul of the
Court’s
...
segregated fund[s]
ceived
United, which, according to
ing in Citizens
*8
employ-
donations from stockholders
Citizens,
“corpo-
mandates that
or, in
corporation[s]
the case of
ees of the
own,
allowed to make their
rations must be
unions,
at
members of the
Id.
union[s].”
independent expenditures.”
general-fund
(internal
(citation omitted)
quota-
887-88
alternatively argues
Minnesota Citizens
omitted). The
further
tion marks
regulation
politi-
Minnesota’s extensive
constitutionality of a feder-
considered the
if a
as a de facto ban even
cal funds serves
a federal disclosure
al disclaimer law and
theoretically
speak
corporation
could
law is most relevant
law.
disclosure
support,
fund. For
through
a
part
that:
and mandated
argues
regulations
Minnesota Citizens
days
within 30
of a
electioneering
Federal office and is made
com-
3. Federal law defines an
days
general
election.”
primary or 60
any publicly available "broad-
munication as
cast, cable,
at 887
or satellite communication
omitted).
quotation
clearly
candidate for
refers to a
identified
any person
spends
speaking.
who
more than
from
Id. at 914. As the Court
$10,000
electioneering
on
communica-
explained:
year
tions within a
calendar
must file
Section 441b is a ban
disclosure statement with the [Federal
speech notwithstanding the fact that a
Election
That
Commission].
statement
by
corporation
PAC created
can still
identify
person making
must
speak. A
separate
PAC is a
association
expenditure,
expendi-
the amount of the
from the corporation. So the PAC ex-
ture, the election to which
communi-
§
emption
ban,
expenditure
441b’s
directed,
cation was
and the names of
441b(b)(2),
§
does not allow corporations
certain contributors.
to speak. Even if a PAC could somehow
424(f)).
§
at
(citing
Id.
U.S.C.
Final-
allow a
speak
it —and
ly,
Supreme
Court considered these
option
does not—the
to form PACs does
non-profit corpora-
the context of a
prob-
alleviate the First Amendment
tion that wished to
a film critical
release
§
lems with
441b. PACs are burden-
Clinton,
Hillary
then-Senator
who was a
alternatives;
they
some
expensive
presi-
candidate for the 2008 Democratic
subject
administer and
reg-
to extensive
primary,
dential
and wished to do so with-
example, every
ulations. For
PAC must
out complying
applicable
with
federal
treasurer,
appoint
forward donations
disclaimer or disclosure laws.
at
Id.
promptly, keep
treasurer
detailed
records of
persons
the identities of the
case,
In resolving the
donations,
making
preserve receipts for
Court struck down 441b’s restrictions on
years,
three
organization
and file an
corporate independent expenditures but
statement and report changes to this
upheld the federal disclaimer and disclo-
days.
information within 10
laws,
sure
stating: “The
may
Government
just
And that is
beginning.
PACs
regulate corporate political speech through
must
monthly
file detailed
reports with
disclaimer and
requirements,
disclosure
FEC,
which are due at different
may
suppress
but
that speech alto-
depending
times
on the type of election
gether.”
Id. at 886. More specifically,
is about
reports
to occur: These
the Court
held that
have a
must contain
regarding
information
First Amendment right to make indepen-
hand;
amount of cash on
the total
expenditures;
dent
any governmental ban
receipts,
amount of
detailed
10 differ-
independent expenditures
categories;
ent
the identification of each
trigger
will
the highest level of constitu-
political committee and candidate’s au-
scrutiny,
tional
namely “strict scrutiny”;
thorized or
making
affiliated committee
governmental
“[n]o sufficient
interest”
contributions,
any persons making
justify
exists to
a ban under this constitu-
loans,
rebates,
providing
refunds, divi-
tionally heightened
scrutiny.
level of
dends, or
interest or
other
offset
proceeded
897-913. The Court then
operating expenditures in
aggregate
strike down
441b as an impermissible
*9
$200;
amount over
the total amount of
ban on independent expenditures by cor-
disbursements,
all
by 12
porations,
detailed
differ-
despite
ability
the
corpora-
of
ent categories;
the names of all
tions to form
author-
PACs under
441b.
Id.
ized or
This is because such
affiliated committees to whom
separate
PACs are
entities
founding
from their
corporations
aggregating
over $200
administer,
and
made;
burdensome to
persons
both of
have been
to whom loan
effectively prevent
which
repayments
made;
or refunds have been
contributions,
general
fund’s
from
oper-
political
all
rate a
assets
of
the total sum
Thus,
corpora-
a
corporate
and
assets.
while
outstanding debts
ating expenses,
to
a
fund
political
of
tion can choose
create
and the settlement terms
obligations,
association,
a
any
obligation.
may
separate
constitute
or
debt
the retirement
not
to
corporation
a
need
do so
order
(citations omitted) (internal quo-
at 897
Id.
such,
As
we conclude Minnesota
speak.
omitted).
Supreme
The
tations
likely
that Minneso-
Citizens is
show
expressly
prior
its
also
overruled
Court
per
corporate
a
se
ta retained
ban
contrary, namely portions
the
decisions
expenditures.
independent
Michigan
Com-
Chamber
of Austin
1391,
merce,
110 S.Ct.
Likewise,
Citizens is
(1990),
v. Fed-
and McConnell
L.Ed.2d 652
prevail
theory that
likely
on its
Commission,
eral Election
a
ban on
Minnesota retained
functional
(2003).
subject regulations less-rigor such United, Buckley, at (quoting 130 S.Ct. exacting-scrutiny 612). ous standard. with- 424 U.S. at “To at scrutiny, 130 S.Ct. 914. This is because strength stand this materially prevent do interest the ser- governmental disclosure laws must reflect the actual on First speaking iousness of burden anyone and because: argument because we have al 5. Minnesota Citizens further contends address this organizations "major purpose” only ready whose did not im concluded subject elect to nominate or candidates can be regulations PAC cor pose "burdensome” burdens',” Buckley, "PAC-style citing porations making expenditures. We see no need to *12 316 rights.” provisions
Amendment John Doe No. 1 with the of the disclosure law —Reed, U.S.-, 2811, 2814, by judicial S.Ct. and can easily pro- reached (internal omitted)). quotation L.Ed.2d 493 cess” marks quotation omitted). we Accordingly, deny while do not there are administrative costs to Minnesota’s As we concluded the preceding corporate independent disclosure law on section, did not corporate Minnesota ban that, expenditures, conclude we based Instead, independent expenditures. based upon court, the record the district before upon findings, strongly the lower court’s as prevail Minnesota Citizens is unlike to on record, supported by we find that its claim improper tailoring. a statutory Minnesota created scheme de signed corporations require to disclose certain when making indepen information C. dent expenditures. provisions Since the also challenges Minnesota Citizens laws,
issue are
apply
disclosure
we
exact
Minnesota’s
to retain
decision
its ban on
ing scrutiny, just as the Supreme Court
direct corporate contributions to candi-
did
Citizens
review Minne
United
entities,
dates
politi-
and affiliated
such as
provisions
corporate
sota’s
on
cal parties. Minnesota
argues
expenditures to ensure that
regula
corporate
ban on direct
contribu-
substantially
tions are
related to Minneso
tions
pursu-
violates the First Amendment
important
ta’s
in providing
interest
infor
ant
Court’s holding in
mation. 130
at 915-16.
upon
Based
government may
Citizens United that the
court,
the record
the district
before
Minne
suppress
speech
by corpora-
sota appears
adequately
to have
tailored
tions. Minnesota Citizens further main-
because,
its laws
we found in
previ
as
tains that
section,
holding
ous
the Court’s
provisions
reason-
collec
ing in
tively
implicitly
impose materially greater
no
Citizens United
overruled
burden
corporations
prior
contrary
than the
decision to the
corpo-
disclosure laws at
issue in Citizens United. Even
rate
Minneso
Federal Election
specific
treasurer,
Beaumont,
ta’s
for a
requirements
146,
Commission v.
periodic
reporting,
separate
(2003).
fund are
reporting requirement
periodic;
is
the con-
49
547
(noting
L.Ed.2d
“[sjtate
requirement
is the reporting
ongo-
may
cern
is
not choose means that unnec-
ing
essarily
constitutionally
unless the
fund is terminated
protected
restrict
liberty”
forced to
Periodic reporting
regulatory
dissolve.
nor
choose
scheme
requirements
per
invalid;
broadly
speech
are not
se
if
stifling
but
has
state
subject
scrutiny,
to strict
at least
way
satisfying
when
available a “less drastic
interests”)
requirements
the duration of
legitimate
Kusper
those
is on-
(quoting
Pontikes,
51, 59,
303,
going
indefinite.
v.
414 U.S.
(1973) (internal
38 L.Ed.2d
quotation
260
A state should not be able to sidestep
omitted)).
marks
Provisions “no more
scrutiny analysis
by
simply
labeling
strict
tenuously
than
related to the substantial
regulations as a
burdensome
“disclosure
interests
serves ...
disclosure
fail exact-
law,”
effect, if
when the
not the design, is
ing scrutiny.” Buckley v. Am. Constitu-
discourage
speech.
gen
(ACLF),
182,
tional Law Found.
525 U.S.
erally Fed.
Election Comm’n Mass. Cit
204,
636,
(1999)
142
S.Ct.
L.Ed.2d 599
Inc.,
238,
Life,
izens
omitted).
616, 93
L.Ed.2d
(engaging
in strict scrutiny
reviewing a
when
federal
Each of
provisions
should
campaign
though
law even
first be
separately
reviewed
to determine
claimed the
implicated
law
regulation
disclosure whether each
substantially
interest); Nat'l
Right
necessary
Political Ac
related and
to accomplish the
Life
Connor,
Comm. v.
ACLF,
tion
interests,
694-
identified disclosure
see
(8th Cir.2003)
(con-
& n. 11
201-203,
(discussing strict
323
compelling
meet
relevant
state inter-
irrepara-
often
challenge
establishes
ment
est”);
164,
in favor of
harm,
equities
(Kennedy,
of
id. at
Amendment RAU,
Randy Philip Appellant, City
Michael David ROBERTS and Minneapolis, Appellees.
No. 10-1476. Appeals,
United States Court of
Eighth Circuit.
Submitted: Nov. 2010. May
Filed:
