Lead Opinion
Opinion by Judge FERGUSON; Partial Concurrence and Partial Dissent by Judge BRUNETTI.
I.
We adopt as the unanimous opinion of this panel all of Judge Brunetti’s concurring opinion set forth in parts I, II, and III. We also adopt Part IV(A), which declares that Measure 6 is not closely drawn to advance the goal of preventing corruption and fails to pass muster under the First Amendment.
II.
We reject Judge Brunetti’s argument in dissent, Parts IV(B) and V, that Measure 6 is valid because it prevents a distortion of the republican form of government in the State of Oregon. It could be argued that the initiative process itself distorts the republican form of government.
III.
Measure 6 was on the Oregon Ballot with Measure 9. That Measure was a set of statutes also adopted by the initiative process. The Oregon Supreme Court in Vannatta v. Keisling,
(1) Is Measure 6 valid under thé Constitution of Oregon?
(2) How is Article II, section 22 to be interpreted in light of competing provisions of the Oregon Constitution, including Article I, section 8?
(3) Does the word “individuals” as used, in section 1 of Measure 6 include corporations, PACs and unions?
The Oregon Supreme Court has rejected the certification.
IV.
The issue, which appellants describe in several different ways, involves protecting the integrity of republican government by assuring that representatives are truly selected by their own constituents.
Appellants argue that the state interest in a republican form of government supports Measure 6. They contend that Measure 6 advances that interest by preventing those who are ineligible to vote from influencing the outcome of elections. The right to a republican form of government has never before been recognized as a sufficiently important state interest. In Whitmore v. Federal Election Comm’n,
Plaintiffs argue that the Constitution entitles them to representation by someone not beholden to any citizen of another state. They present a historian’s affidavit that the Founding Fathers would have been “shocked” at out-of-state contributions to a congressional candidate ... Neither the Constitution nor the United States Code affords plaintiffs any support for their political theory.
This Court held plaintiffs’ claim to be unsupported by precedent and dismissed it qs frivolous. Whitmore,
Appellants nonetheless present several cases which, they argue, may be taken together to expand the “narrow exception to the rule that limits on political activity [are] contrary to the First Amendment.” Citizens Against Rent Control v. City of Berkeley,
In Austin v. Michigan Chamber of Commerce,
The Court did not define “actual public support,” but appellants would like us to read it as support for Oregon’s limitation of out-of-
In Holt Civic Club v. City of Tuscaloosa,
The Holt Court emphasized that it was not enough for the non-residents to show that they were affected by the city’s policies because many non-residents are affected by many cities’ decisions. Id. Regardless of those extraterritorial effects, non-residents do not have a right to “participate in the political processes bringing it about.” Id. “[0]ur eases have uniformly recognized that a government unit may legitimately restrict the right to participate in its political processes to those who reside within its borders.” Id. at 68-69,
The Supreme Court has suggested that states have a strong interest in ensuring that elected officials represent those who elect them. See, e.g., Shaw v. Reno,
V. Conclusion
Measure 6 does not survive scrutiny under the First Amendment and is not saved by the argument that it protects the republican form of government.
The District Court’s Opinion and Order and its Declaratory Judgment and Mandatory Injunction are AFFIRMED.
Concurrence in Part
concurring in part and dissenting:
The state of Oregon amended its constitution to prohibit state candidates from using or directing any contributions from out-of-district residents and to penalize candidates when more than 10% of their total “funding” comes from such individuals. The amendment was challenged under several provisions of the constitution and was struck down, in a summary judgment order, by the district court under the First Amendment. Viewing the evidence in a light most favorable to appellants, we review the award of summary judgment de novo, Warren v. City of Carlsbad,
I.
In November of 1994, the voters of Oregon amended their constitution by passing Ballot Measure 6 (“Measure 6”). Measure 6 provided:
Be it enacted by the People of Oregon:
SECTION 1. For purposes of campaigning for an elected public office, a candidate may use or direct only contributions which originate from individuals who at the time of their donations were residents of the electoral district of the public office sought by the candidate, unless the contribution consists of volunteer time, information provided to the candidate, or funding provided by the federal, state, or local government for purposes of campaigning for an elected public office.
SECTION 2. Where more than ten percent (10%) of a candidate’s total cam*1219 paign funding is in violation of Section (1), and the candidate is subsequently elected, the elected official shall forfeit the office and shall not hold a subsequent elected public office for a period equal to twice the tenure of the office sought. Where more than ten. percent (10%) of a candidate’s total campaign funding is in violation of Section (1) and the candidate is not elected, the unelected candidate shall not hold a subsequent elected public office for a period equal to twice the tenure of the office sought.
SECTION 3. A qualified donor (an individual who is a resident within the electoral district of the office sought by the candidate) -shall not contribute to a candidate’s campaign any restricted contributions of Section (1) received from an unqualified donor for the purpose of contributing to a candidate’s campaign for public office. An unqualified donor (an entity which is not an individual and who is not a resident of the electoral district of the office sought by the candidate) shall not give any restricted contributions of Section (1) to a qualified donor for the purpose of contributing to a candidate’s campaign for elected office.
SECTION 4. A violation of Section (3) shall be an unclassified felony.
Although Measure 6 does not expressly limit its application to state races, it amends Article II of the state constitution which governs state elections. The parties do not argue Measure 6 applies to federal elections and to the extent it attempted to do so, it would be preempted by the Federal Election Campaign Act.
Plaintiffs sought a declaratory judgment that Measure 6 is facially unconstitutional. Plaintiffs VanNatta, Gill, and the Center To Protect Free Speech (“Center”) claimed that they wished to contribute to out-of-district candidates, Plaintiff Boehnke claimed .that he wished to, accept donations from non-residents of his district, Plaintiff Smith claimed that he refused donations from plaintiffs Gill and VanNatta because of Measure 6. Several parties intervened including Gordon Miller, the sponsor of Measure 6, who was allowed to intervene for the purpose of appealing the district court’s judgment.
Defendants presented considerable evidence demonstrating the prevalence of political action committee money in Oregon state races. As of 1992, candidates spent an average of $38,000 on state house races and $49,000 on state senate races. House candidates received 81% of their money from PACs and corporations, senate candidates received 75% from those sources. Individual contributors accounted for 13% of contributions in house races and 15% in senate races in 1992. Defendants also presented statistical and anecdotal evidence suggesting a strong correlation in Oregon between receiving funds and winning elections.
The district court granted summary judgment for the plaintiffs. Applying strict scrutiny, the court rejected the measure as not narrowly tailored to prevent corruption because it prevented non-corrupt out-of-district contributions, failed to thwart in-district corruption, and failed to prevent'large out-of-distriet contributions so long as they do not exceed 10% of the total. Defendants appealed.
II. Applicability of the First Amendment
Contributions to political campaigns are protected speech under, the First Amendment. Austin v. Michigan-Chamber of Commerce,
Appellants’ argument that contributors are not burdened relies on Buckley v. Valeo,
Appellants’ argument only makes sense in the abstract. In reality campaigns will have no incentive to accept money which they cannot legally spend. To do so would invite violations of Measure 6 and a host of potential ethical landmines. In fact, appellees attested that an out-of-district candidate refused to accept them donations because of Measure 6. As the statute has caused campaigns to refuse to accept these unusable contributions, the First Amendment rights of contributors are implicated. See Service Employees Int’l Union, AFL-CIO, CLC v. Fair Political Practices Comm’n,
III. Level of Scrutiny
Restrictions on contributions to campaigns 'are subjected to less exacting scrutiny than restrictions on independent expenditures in support of a campaign. Federal Election Commission v. Massachusetts Citizens for Life, Inc.;
Appellees argue that the level of scrutiny should be strict because Measure 6 does more than restrict the amount non-residents can contribute in that it flatly prohibits such contributions.
In any event,- this court has applied less-than-strict, rigorous scrutiny to total restrictions on contributions. Service Employees,
The National Voting Rights Institute (“Institute”) argues in its amicus brief that the statute should be reviewed under the balancing test laid out in Anderson v. Celebrezze,
IV. Measure 6
Sufficiently Important State Interest
There are essentially two purported interests advanced by Measure 6. One is corruption. As the district court concluded, Measure 6 is both under-inclusive and over-inclusive with respect to curbing corruption and thus corruption''is an insufficient state interest to sustain the measure. A second interest, which appellants describe in several different ways, involves protecting the integrity of republican government by assuring that constituents are truly selecting their representatives.
A. Curbing Corruption
The district court defined the state’s interest in Measure 6 as preventing political corruption. The court then rejected the measure as not being narrowly tailored to prevent corruption because it prevented non-corrupt out-of-distriet contributions, failed to thwart in-district corruption, and failed to prevent large out-of-district contributions so long as they do not exceed 10% of the total.
Even applying the less stringent rigorous test, to the extent one views the state’s interest as preventing corruption, Measure 6 still fails to pass scrutiny for the reasons stated by the district court. See Service Employees,
The Service Employees rationale is equally applicable here. Measure 6 bans all out-of-district donations, regardless of size or any other factor that would tend to indicate corruption. Appellants are unable to point to any evidence which demonstrates that all out-of-district contributions lead to the sort of corruption discussed in Buckley. See Harwin v. Goleta Water Dist.,
B. Repub lican Form of Government
Notes
. Appellants are in disagreement over the level of scrutiny. The state argues that less than strict scrutiny should be applied. Appellant Miller, however, concedes that strict scrutiny is applicable because he understands Measure 6 to be a contribution limit on candidates. Miller relied on the discussion in Buckley of limits on personal expenditures by candidates. However, nothing in Measure 6 prevents candidates from spending their own money or unlimited amounts of money contributed by in-district residents. Cf. Opinion of the Justices to the House of Representatives,
Dissenting Opinion
dissenting:
At this point I must part with Judge Ferguson and Judge King with regal'd to the appellant’s portrayal of the state’s interest not so much as preventing corruption but as presenting a distortion of the state’s republican form of government. The majority opinion rejects this argument, however, I conclude that Oregon has a sufficiently important interest in protecting its republican form of government and I dissent from the affirmance of the district court.
Appellant argues that Measure 6 advances this interest by preventing those who are ineligible to vote from influencing the outcome of elections. We can consider any interest which Measure 6 serves in assessing the constitutionality of the provision. Bolger v. Youngs Drug Products Corp.,
In several cases the Supreme Court has emphasized the right of states and cities to reserve their political processes and resources for their own residents. In Holt Civic Club v. City of Tuscaloosa,
The Holt Court emphasized that it was not enough for the non-residents to show that they were affected.by the city’s policies because many non-residents are affected by many cities’ decisions. Id. at 69,
Similarly, in Martinez v. Bynum, the Court upheld a- Texas provision that allowed public schools to deny access to children who live apart from their parents if the child’s presence in the district is “for the primary purpose of attending free public schools.”
In other contexts the Supreme Court has suggested, sometimes strongly, that states have a strong interest in ensuring that elected officials represent those who elect them. See, e.g., Shaw v. Reno,
In Austin v. Michigan Chamber of Commerce, the Court upheld a statute which prohibited all corporations, not just out-of-district, from spending money from their general funds on elections.
In voting cases, the Court has emphasized both the need for equal representation as
While none of the eases discussed above are directly on point, taken together they suggest that a state has a sufficiently strong interest in protecting the integrity of electoral district lines. If states have flexibility in determining who is a resident for voting purposes and in taking steps to make sure non-residents do not have access to..some state services, it follows that states also have a strong interest in making sure that elections are decided by those who vote. The Supreme Court has come very close to saying as much in Shaw, Holt, and Austin. With the increasing importance of fundrais-ing in elections generally, Buckley,
Thus the Supreme Court’s traditional emphasis of states’ interest in managing elections, assuring that only residents vote, and safeguarding resources for bona fide residents supports Measure 6 because appellants have presented considerable evidence that campaign financing strongly influences Oregon elections. As this was a grant of summary judgment for appellees, that evidencé must be viewed in the light most favorable to appellants. Warren,
The inquiry thus turns to whether Measure 6 is closely drawn to serve this interest. Id. Legislation is closely drawn when it is not over or under inclusive. See id. Appellees primarily contend that protecting representative government is not a compelling interest. They also maintain, however, that Measure 6 is underinelusive because it permits in-dis-triet donations that “far exceed the candidate’s ‘actual support within the district’ ” and overinclusive because it prevents small out-of-district contributions “that could not possibly erode'or even appear to erode anyone’s vote.”
The underinelusive argument misses the mark. The fact that some in-district residents will donate more than others does not detract from the state’s interest in ensuring that 'elections are truly a' forum for constituents to select a representative. The Supreme Court has cautioned against trying to equalize voices based on wealth. Buckley,
The overinclusive argument is stronger. Appellees frequently refer to the hypothetical candidate’s out-of-district mother who wants to donate a dollar to her child’s campaign. To the extent that one views the state’s interest as preventing non-residents from unduly influencing the outcome of an election, Measure 6 is over-inclusive in that it prohibits donations which will have no influence.
Moreover in Austin, the Court rejected an overinclusiveness argument that not all corporations have vast resources.
Appellees argue that the measure denies out-of-district residents and out-of-state residents any voice in matters which may strongly affect them interests. In Buckley, however, the Supreme Court emphasized the more limited speech value associated with contributions as opposed to direct expenditures:
By contrast with a limitation upon expenditures for political expression, a limitation upon the amount that any one person or group may contribute to a candidate or political committee entails only a marginal restriction upon the contributor’s ability to engage in free communication ... While contributions may result in political expression if spent by a candidate or an association to present views to the voters, the transformation of contributions into political debate involves speech by someone other than the contributor.
Nothing in Measure 6 prevents out-of-district and out-of-state residents from making independent expenditures on behalf of candidates and issues. Appellee discusses stockholders and state employees as two groups that will be denied “any voice” in state elections under Measure 6. That argument is plainly false because these groups will be allowed to make independent expenditures in an effort to persuade the voters of Oregon that a particular candidate should be elected or a particular issue warrants closer attention. See Austin,
Appellees also rely heavily on Whitmore v. Federal Election Commission,
The Whitmore court was apparently concerned about the Supreme Court’s admonition in Buckley against states favoring the speech of certain segments of the population.
Measure 6 clearly favors the voices of in-distriet residents over those of out-of-district residents but no m'ore so than residency' requirements for voting. In Buckley, however, the Court was considering a proposal that attempted to limit the ability of the wealthy to drown out the voices of those with fewer resources.
Finally, it is important to note that Measure 6 does not prevent the hypothetical candidate from donating to her child’s campaign. Measure 6 does prohibit her child from using the funds but only penalizes a candidate when more than 10% of his “total campaign funding” is in violation of the provision. Thus while the statute inhibits out-of-district donations such that it implicates the First Amendment, it does not require our hypothetical candidate to return his mother’s donation. The 10% floor thus essentially functions as a savings clause.
V.
States cannot pick and choose among voices in an effort to create an even playing field but they may take steps to ensure the integrity of political structures and processes. While Measure 6 affects protected speech, it more closely resembles the latter category of state actions and therefore survives rigorous scrutiny under the First Amendment, and I would reverse the District Court’s Opinion and Order and vacate its Declaratory Judgment and Mandatory Injunction.
