SHRINK MISSOURI GOVERNMENT PAC, et al., Plaintiffs,
v.
Richard ADAMS, et al., Defendants.
United States District Court, E.D. Missouri, Eastern Division.
Douglas Bruce La Pierre, St. Louis, MO, Patric A. Lester, Lester and Associates, St. *735 Louis, MO, for Shrink Missouri Government PAC.
James R. Layton, Paul Maguffee, Attorney General of Missouri, Assistant Attorney General, Jefferson City, MO, for Richard Adams, Patricia Flood, Robert Gardner, Ervin Harder, John Howald, Elaine Spielbusch, Jeremiah W. Nixon.
Andrew J. Minardi, Sr. Assoc. Cty. Counsel, Patricia J. Redington, Assoc., Cty. Counselor, St. Louis County Counselor Office, Clayton, MO, for Robert P. McCullough.
Gerald P. Greiman, Dankenbring and Greiman, Clayton, MO, for Joan Bray.
MEMORANDUM AND ORDER
PERRY, District Judge.
This case draws into question the validity of Missouri's limits on contributions to candidates for state elected office. Contending that those limits violate their first amendment rights, plaintiffs seek an injunction preventing enforcement of the following provisions of Senate Bill 650, codified at Mo. Ann. Stat. § 130.032 (West Supp.1998):
1. Provisions that limit "the amount of contributions made by or accepted from any person other than the candidate in any one election" to a maximum of (a) $1,075.00 to elect an individual to the offices of governor, lieutenant governor, secretary of state, state treasurer, state auditor, or attorney general, or any other office if the population of the relevant electoral unit is at least 250,000, (b) $525.00 to elect an individual to the office of state senator or any other office if the population of the relevant electoral unit is at least 100,000 but less than 250,000, (c) $275.00 to elect an individual to the office of state representative or any other office if the population of the relevant electoral unit is less than 100,000. See Mo. Ann. Stat. § 130.032.1.
2. A provision adjusting the above-mentioned limits for inflation. Mo. Ann. Stat. § 130.032.2.
3. A provision making "candidate committees, exploratory committees, campaign committees and continuing committees, other than those continuing committees which are political party committees" subject to the above-mentioned limits. Mo. Ann. Stat. § 130.032.3.
4. A provision imposing on committees found in violation of the above-mentioned limits a penalty of an amount equal to the nonallowable contribution plus a $1,000 surcharge per such nonallowable contribution. Mo. Ann. Stat. § 130.032.7.
On March 4, 1998, the Court heard oral argument from all parties on plaintiffs' motion for a temporary restraining order. The Court denied the motion on March 9, concluding that on the record before it, plaintiffs had failed to show a likelihood of success on the merits or that the balance of harms and public interest weighed in their favor. See Dataphase Sys., Inc. v. C L Sys.,
On March 18, the Court entered a case management order. In that order, the Court, generally adopting a proposal jointly submitted by the parties, established an expedited briefing schedule for dispositive motions. In accordance with that schedule, the parties have filed cross-motions for summary judgment. Based on the undisputed facts and the relevant case law, the Court concludes that defendants are entitled to judgment as a matter of law. It will enter judgment accordingly, and will deny plaintiffs' motion for injunctive relief.[1]
I. Background
This action comes as the perhaps inevitable consequence of the Eighth Circuit's 1995 decision in Carver v. Nixon,
Prior to the November 1994 election, the Missouri General Assembly enacted a campaign finance law, known as Senate Bill 650, which contained the campaign contribution limits set forth in the first paragraph of this memorandum. Senate Bill 650's limits were to take effect on January 1, 1995. After Proposition A's passage, however, the Missouri attorney general determined that the initiative's lower limits controlled.
Following the attorney general's determination, Carver, a political contributor, brought suit to enjoin Proposition A's enforcement, arguing that the law unconstitutionally interfered with his ability to support political candidates. The district court denied the injunction, Carver v. Nixon,
Describing Proposition A's limits as "dramatically lower" than those approved in Buckley, id. at 641-42, and lower, in fact, than those of any other state, id. at 642, the Carver court concluded that the initiative's limits were "not closely drawn to reduce corruption or the appearance of corruption associated with large campaign contributions." Id. at 644. The court found the following factors relevant: (1) after adjusting for inflation, Proposition A's limits represented between two and six percent of the $2,000 per election cycle limit approved of in Buckley, id., at 642 n. 8,[4] (2) other states had larger contribution limits, id. at 641-42, (3) *737 Senate Bill 650 provided a "back-up" in the event of Proposition A's invalidation, id. at 642 ("The question is not simply that of some limits or none at all, but rather Proposition A as compared to those in Senate Bill 650 ...."),[5] and (4) the impact of Proposition A's limits affected a much higher percentage of contributors than did the federal $1,000 limit. Id. at 643. As a result of the Carver decision, Proposition A's limits were supplanted by those contained in Senate Bill 650.
II. Facts
Plaintiff Shrink Missouri Government PAC ("Shrink PAC") is a political action committee. Plaintiff Zev David Fredman is a candidate in the August 1998 Republican primary for the office of Missouri state auditor. Fredman, who has never before run for statewide political office, has formed a candidate committee ("Fredman for Auditor"), filed for office, and paid the required filing fee. The defendants in this matter are the Missouri Ethics Commission's chairman (John Howald) and members (Richard Adams, Patricia Flood, Robert Gardner, Ervin Harder, and Elaine Spielbusch), who are responsible for administering the provisions of the Missouri campaign finance laws, the state attorney general (Jeremiah W. Nixon), who advises the ethics commission and enforces the campaign finance laws, and the prosecuting attorney of St. Louis County (Robert P. McCullough), who is also responsible for enforcing those laws.
Shrink PAC raises money from Missouri voters and contributes those funds to candidates for Missouri elective office. It made contributions to certain of those candidates in the 1994, 1996, and 1997 elections. On June 23, 1997, it made a $1,025 contribution to "Fredman for Auditor," and made an additional $50 contribution on February 25, 1998. Shrink PAC states that but for Missouri's campaign contribution limitations, it would make additional contributions to Fredman's campaign. Fredman believes that he can wage an effective campaign for auditor only if he can garner contributions in excess of those provided for under current Missouri law.
III. Discussion
In determining whether summary judgment should issue pursuant to Rule 56(c) of the Federal Rules of Civil Procedure, a court views the facts and any inferences to be drawn therefrom in the light most favorable to the nonmoving party. The moving party bears the burden of both establishing the absence of a genuine issue of material fact and showing that it is entitled to judgment as a matter of law. Celotex Corp. v. Catrett,
It is firmly settled that regulation of first amendment rights is "always subject to exacting judicial review." Citizens Against Rent Control,
Plaintiffs argue that defendants must demonstrate that campaign contributions in excess of the statutory limits cause some "real harm," i.e., that such contributions cause either corruption or the appearance of corruption. If a showing of "real harm" is required (the state claims it is not), the Court finds that defendants here have made that showing.
"A State indisputably has a compelling interest in preserving the integrity of its election process." Eu v. San Francisco Cty. Democratic Central Comm.,
A perception of influence peddling is "real harm" regardless of whether such peddling is actually afoot. Buckley,
Plaintiffs appear to be implying that the Supreme Court's decision in Buckley no longer sits on a firm foundation. But, the case upon which plaintiffs most heavily rely, Colorado Republican Fed'l Campaign Comm. v. Federal Election Comm'n,
Plaintiffs also argue that Missouri's campaign contribution limits are not "narrowly tailored." As mentioned above, the Eighth Circuit in Day strongly implied that the impact of inflation should be taken into account in determining whether a given limit on campaign contributions passes first amendment muster. See
In holding that a $100 limit on contributions to and from political committees was "too low to allow meaningful participation in protected political speech and association,"
The Court finds that the effect of inflation since Buckley was decided has not created a "difference in kind" between a $1,000 contribution in 1976, and a $1,075 contribution in 1998.[10] First, the evidence shows that despite Missouri's contribution limits, candidates for state elected office are still quite able to raise funds sufficient to run effective campaigns. For example, in the 1992 race for secretary of state, expenditures by the seven candidates totaled $646,749.53 (including both the primary and the general elections). In the 1996 race for that office, the three candidates spent a total of $1,819,025.69. *741 Likewise, in the 1992 race for lieutenant governor, the six candidates spent $1,974,066.33, as compared to the $1,001,219.08 spent by the two candidates for the same office in 1996. Despite Missouri's contribution limits, candidates for political office in the state are still able to amass impressive campaign war chests.[11]
In striking the $100 contribution limit at issue in Day, the Eighth Circuit expressed concern that between one-fourth and one-third of the contributions made by one of the plaintiffs therein exceeded that amount in the most recent election cycle.
Last but not least, the Court does not believe that invalidating Missouri's contribution limits would be consistent with Buckley. It is clear from Eighth Circuit precedent that Buckley controls the issues in this case. See Carver,
Certainly, taking account of inflation makes economic sense in theory, but it may be substantially more difficult in practice. For example, is using the CPI really the appropriate method? After all, the CPI cannot, by definition, reflect increases in the cost of non-consumer services such as conducting a mass-mailing, operating a telephone bank, or running a thirty-second radio or television advertisement. And if some or all of those costs have risen, perhaps they are offset, at least to some degree, by post-1976 technological advances such as the fax machine, e-mail, and the Internet (a candidate might, for example, be able to cheaply and effectively promulgate his or her views by creating a web page). Should not such cost-reducing innovations affect the inflation calculus?
The Court further observes that neither the Day panel nor the Carver panel held that inflation was the only factor to be considered. Indeed, because the state's "compelling interest" encompasses a desire to avoid even the perception of corruption, it might well be pertinent to inquire whether the average Missourian views $1,000 as a large or small amount. In this regard, the Court notes that the median income of a Missouri household in 1994 was $31,046, an amount that, in constant 1995 dollars, was actually less than it had been nine years earlier ($31,073 in 1985). See Statistical Abstract of the United States 468 (117th ed.1997). The Court suspects that the head of a family earning less than $32,000 would certainly consider "large" a political contribution in excess of $1,075.
In the end, perhaps this analysis illustrates what the Buckley Court meant when it said that a judge has "no scalpel to probe," whether a $1,000 or a $2,000 contribution ceiling would be more appropriate.
Accordingly,
IT IS HEREBY ORDERED that defendants' motion for summary judgment [# 21] is granted, and that plaintiffs' motions for summary judgment [# 24] and for a preliminary injunction [# 5] are denied.
IT IS FURTHER ORDERED that defendant Robert P. McCullough's motions to dismiss pursuant to Fed.R.Civ.P. 21[# 19] and to join as necessary and indispensable parties all prosecutors in the state of Missouri [# 20] are denied as moot.
IT IS FURTHER ORDERED that defendant Robert P. McCullough's motion to join in the various filings made by the state defendants in this case [# 27] is granted.
IT IS FURTHER ORDERED that Joan Bray's motion to intervene as a defendant [# 29] and Common Cause's motion for leave *743 to participate as amicus curiae are denied as moot.
NOTES
Notes
[1] Given its disposition of this matter, the Court believes that it need not reach defendant Robert P. McCullough's motion to dismiss or, in the alternative, to join as necessary and indispensable parties all prosecutors in the state of Missouri. For the same reason, the Court will deny as moot the motion of Joan Bray to intervene as a defendant and the motion of Common Cause to participate as amicus curiae.
[2] An election cycle includes both the primary and the general election. See Mo. Ann. Stat. § 130.011(16) (West 1997); Carver,
[3] In Buckley, the Supreme Court, applying a strict scrutiny standard of review, held that provisions of the Federal Election Campaign Act ("FECA") establishing a $1,000 limitation on contributions to campaigns for federal elected office were constitutional. In upholding the limitation, the Court noted that limiting the amount a person may give to a candidate "involves little direct restraint on his political communication, for it permits the symbolic expression of support evidenced by the contribution but does not in any way infringe the contributor's freedom to discuss candidates and issues."
[4] In Day v. Holahan,
[5] In dicta, the court appeared to endorse Senate Bill 650's limits. See
[6] Newspaper stories and editorials from the same period tend to support the senator's statements. See, e.g., Jo Mannies, Auditor Race May Get Too Noisy To Be Ignored, St. Louis Post-Dispatch, Sept. 11, 1994, at 4B (reporting that Republican candidate for Missouri state auditor received a $40,000 contribution from a St. Louis-based brewery and $20,000 from a St. Louis bank); John A. Dvorak, Election Reform Backed Lid on Contributions to Campaigns Wins Carnahan's Support, Kansas City Star, Nov. 14, 1993, at B1 (quoting Governor Mel Carnahan as stating, "We need a system that will make sure that our democratic institutions care as much about John Doe and Jane Doe as they do about any big company or any wealthy individual"); Editorial, The Central Issue is Trust, St. Louis Post-Dispatch, Dec. 31, 1993, at 6C (observing that Missouri state treasurer's choice of Central Trust Bank of Jefferson City to handle most of the state's banking business raised an appearance of favoritism, as the treasurer had accepted approximately $20,000 from the same bank in his 1992 election campaign).
[7] In some sense, the vote on Proposition A might be viewed as such a poll. The initiative was depicted by the media as an attempt to "temper the influence of special interests and put political newcomers on a more level playing field at election time." Kevin Q. Murphy, Low-key Proposition A Would Refashion Election Financing, Kansas City Star, Oct. 27, 1994, at A1; Editorial, Four Proposals on the Missouri Ballot, St. Louis Post-Dispatch, Oct. 20, 1994, at 6B ("Proposition A would make further improvements to control influence-buying in elections that lawmakers were not willing to impose on themselves."); Voters Guide, St. Louis Post-Dispatch, Nov. 6, 1994, at 8 (describing Proposition A's goal as "limit[ing] the influence of special interests in government by putting low ceilings on how much anyone can give to a political candidate"). If the media's views are at all reflective of those of the public at large, then the fact that Missouri's voters voted for Proposition A in rather overwhelming numbers (the initiative was supported by seventy-four percent of those voting) is some indication that they shared those views. See Kathy Richardson, Letter to the Editor, St. Louis Post-Dispatch, Nov. 5, 1994, at 16 (describing political system as "money-influenced" and urging other citizens to vote for Proposition A); Robyn Steely, Editorial, Money and State Senators, St. Louis Post-Dispatch, Aug. 21, 1994, at 3B (claiming that "business interests, large contributions, war chests, inadequately disclosed information and myths about campaign financing all taint our democratic process").
[8] In Carver, the Eighth Circuit held that evidence of a political action committee's $420,000 contribution could not support the state's claim that Proposition A's contribution limits were narrowly tailored. See
[9] Likewise, $525 today is the equivalent of $184.80 in 1976, and $275 the equivalent of $96.70 in 1976.
[10] Shrink PAC claims that the federal limit applicable to it is $5,000. However, the $5,000 limit applies only to "multicandidate" political committees. 2 U.S.C. § 441a(2). In order to qualify as such a committee, an entity must, inter alia, have received contributions from more than fifty persons and made contributions to five or more candidates for federal office. Id. at § 441a(4). Shrink PAC has provided no evidence that it meets any of those criteria.
[11] In Carver, the court indicated that an examination of the contribution limits imposed by other states was appropriate in determining whether Missouri's ceilings were "narrowly tailored."
[12] Under Colorado Republican, of course, Shrink PAC is free to expend funds in support of Fredman without regard to § 130.032's limits, so long as no coordination between the committee and the candidate takes place.
[13] In accordance with that provision, the Missouri Ethics Commission adjusted Missouri's limits effective January 1, 1998.
