Missourians for Fiscal, etc. v. James Klahr
Opinion
James Klahr, in his official capacity as Executive Director of the Missouri Ethics Commission (MEC), appeals the order of the district court
1
declaring unconstitutional and enjoining enforcement of Missouri's 30-day formation deadline for campaign committees, Missouri law section 130.011(8).
2
See
Missourians for Fiscal Accountability v. Klahr
, No. 14-4287-CV-ODS,
I.
Under Missouri campaign finance law, chapter 130, a "committee" is "a person or any combination of persons, who accepts contributions or makes expenditures for the primary or incidental purpose of influencing or attempting to influence the action of voters for or against" candidates or ballot measures. § 130.011(7) . Exempt are those not crossing thresholds, such as: (1) any non-candidate individual "who accepts no contributions and ... deals only with the individual's own funds or property;" and (2) any "person or combination of persons, if neither the aggregate of expenditures made nor the aggregate of contributions received during a calendar year exceeds five hundred dollars and if no single contributor has contributed two hundred fifty dollars of such aggregate contributions." § 130.011(7)(a) .
*947 Chapter 130 distinguishes committees by the political activity they engage in. At issue here are "campaign committees":
a committee, other than a candidate committee, which shall be formed by an individual or group of individuals to receive contributions or make expenditures and whose sole purpose is to support or oppose the qualification and passage of one or more particular ballot measures in an election ..., such committee shall be formed no later than thirty days prior to the election for which the committee receives contributions or makes expenditures, and which shall terminate the later of either thirty days after the general election or upon the satisfaction of all committee debt after the general election ....
§ 130.011(8) .
Committees must have a treasurer, maintain an "official depository account," and keep accurate records.
§§ 130.021.1
,
130.021.4(1)
,
130.036.1
. Committees "shall file a statement of organization ... within twenty days after the person or organization becomes a committee but no later than the date for filing the first [disclosure] report ...."
§ 130.021.5
. The statement includes, among other things, the committee's name and address, the kind of committee, and the candidate or ballot measure supported or opposed.
Committees must file "disclosure report[s] of receipts and expenditures." § 130.041.1 . Disclosure reports are due: (1) "Not later than the eighth day before an election for the period closing on the twelfth day before the election if the committee has made any contribution or expenditure either in support or opposition to any candidate or ballot measure;" (2) "Not later than the thirtieth day after an election for a period closing on the twenty-fifth day after the election, if the committee has made any contribution or expenditure either in support of or opposition to any candidate or ballot measure ...;" and (3) "Not later than the fifteenth day following the close of each calendar quarter." § 130.046.1 . The Missouri Ethics Commission (MEC) makes statements of organization and disclosure reports available to the public on its website in accordance with section 130.057.
"Any person who purposely violates the provisions of [chapter 130] is guilty of a class A misdemeanor." § 130.081.1 . However, failure "to file any report or statement ... within the time periods specified in [chapter 130]" is "an infraction." § 130.081.2 . See § 556.021.2 ("An infraction does not constitute a crime ...."). "Any person who knowingly accepts or makes a contribution or makes an expenditure in violation of any provision of this chapter ... shall be held liable to the state in civil penalties in an amount equal to any such contribution or expenditure." § 130.072 .
Individuals may file complaints with the MEC alleging chapter 130 violations. § 105.957.1(3) . "When the commission concludes ... that there are reasonable grounds to believe that a violation of any criminal law has occurred, and if the commission believes that criminal prosecution would be appropriate ... the commission shall refer the report" for criminal prosecution. § 105.961.2 . The MEC may also "initiate formal judicial proceedings seeking to obtain" an order to "[c]ease and desist violation of ... chapter 130" or "[p]ay any civil penalties required by ... chapter 130." § 105.961.5 . Finally, the MEC has, "[t]hrough reconciliation agreements or civil action, the power to seek fees for violations in an amount not greater than one thousand dollars or double the amount involved in the violation." § 105.961.4(6) .
*948 II.
Thirteen days before the November 2014 general election, a group formed Missourians for Fiscal Accountability (MFA) as a campaign committee, wanting to accept contributions and make expenditures in support of Proposition 10. MFA sued to enjoin enforcement of the formation deadline, arguing that it violated the First Amendment. The district court granted MFA a temporary restraining order. MFA then received contributions and made expenditures in the days before the election.
After the election, MFA terminated as a campaign committee. The district court dismissed the suit on ripeness grounds. This court reversed and remanded, finding standing, ripeness, and no mootness.
See
Missourians for Fiscal Accountability v. Klahr
,
On remand, the district court granted summary judgment to MFA. According to the court, the formation deadline created a "blackout period" that Missouri could not justify under strict or exacting scrutiny.
Missourians for Fiscal Accountability
,
"This court reviews de novo the district court's grant of summary judgment."
MCC Iowa, LLC v. City of Iowa City
,
III.
"Independent expenditures are indisputably political speech, and any restrictions on those expenditures strike 'at the core of our electoral process and of the First Amendment freedoms.' "
Minnesota Citizens Concerned for Life v. Swanson
,
The formation deadline makes it unlawful to form a campaign committee within 30 days of the election. See § 130.011(8) (a campaign committee "shall be formed no later than thirty days prior to the election"). An individual or group must form a campaign committee 3 to speak in support of or opposition to a particular ballot measure. See §§ 130.011(7) ("a person or combination *949 of persons, who accepts contributions or makes expenditures" to influence the action of voters is a "committee"); 130.011(8) (a "campaign committee" is a "committee" that "shall be formed ... to receive contributions or make expenditures ... to support or oppose ... one or more particular ballot measures"); 130.072 (contributions or expenditures in violation of chapter 130 are subject to civil penalties). Thus, the formation deadline prohibits those who do not form a campaign committee 30 days before the election from speaking.
"When [a state] restricts speech, [it] bears the burden of proving the constitutionality of its actions."
McCutcheon v. FEC
, --- U.S. ----,
The MEC argues that strict scrutiny does not apply, because the formation deadline is a disclosure law. "[D]isclosure laws are subject to exacting scrutiny, because they 'impose no ceiling on campaign-related activities and do not prevent anyone from speaking.' "
Iowa Right to Life Comm., Inc. v. Tooker
,
Disclosure laws generally require registration, reporting information, or keeping necessary records.
See
John Doe
,
Laws requiring committees to take organizational steps are also generally treated as disclosure laws.
See
Catholic Leadership Coalition
,
The MEC argues that the formation deadline is a disclosure law because it merely requires formation. To the contrary, the unchallenged language of section 130.011(8) requires that if a committee's "sole purpose is to support or oppose ... one or more particular ballot measures," a campaign committee "shall be formed ... to receive contributions or make expenditures." In addition to requiring formation, the formation deadline
prohibits
formation-the precondition to speak-within 30 days of the election. Thus, the formation deadline is not a disclosure law because it prohibits speech even if the individual or group is willing to register, report information, keep necessary records, and take organizational steps.
See
Pursuing America's Greatness v. FEC
,
The MEC insists that it allows late formation and enforces the formation deadline by imposing only a $1,000 fee (part of which will be stayed pending further violations).
See
Missourians for Fiscal Accountability
,
First, the MEC is not required to allow late formation or limited to imposing fees. Forming within 30 days of the election violates the formation deadline's command that a campaign committee "shall be formed no later than thirty days prior to the election."
§ 130.011(8)
. The MEC admits this by imposing fees under its "power to seek fees for
violations
...."
See
§ 105.961.4(6)
(emphasis added). Purposeful violations of chapter 130 are class A
*951
misdemeanors.
§ 130.081
. The MEC could refer the matter for criminal prosecution or seek a cease-and-desist order.
See
§ 105.961.2
,
.5
. This court does not expect individuals or groups "to rely on [the MEC's] informal assurance that it would not enforce the plain meaning of the statute."
See
Minnesota Citizens Concerned
,
Second, even assuming late-formers can expect only the fee, this does not make the formation deadline a disclosure requirement. A $1,000 fee is a significant burden, considering that a group must form a committee if its expenditures exceed $500.
See
§ 130.011(7)(a)
. Also, the fee is issued in a Consent Order finding probable cause that the committee and its treasurer violated chapter 130.
See
Missourians for Fiscal Accountability
,
The MEC invokes this court's opinion in
National Right to Life Political Action Committee v. Connor
. There, this court held that a similar deadline for continuing committees "does not, on its face, limit issue or express advocacy within thirty days of an election; it merely states a registration deadline."
*952
Finally, the MEC argues that the formation deadline is a disclosure requirement because it prevents "circumvent[ion]" of, or encourages compliance with, chapter 130's disclosure regime. But as the Fifth Circuit says, this does not make it a disclosure requirement: "A complete ban on political speech would certainly prevent circumvention of [the] disclosure regime, but no one would suggest that it is a disclosure regulation."
See
Catholic Leadership Coalition
,
IV.
Strict scrutiny "requires the [g]overnment to prove that the restriction furthers a compelling interest and is narrowly tailored to achieve that interest."
Minnesota Citizens Concerned
,
Assuming, without deciding, that this interest is compelling, the formation deadline is unconstitutional because it is not narrowly tailored. The formation deadline indiscriminately prohibits (or significantly burdens) speech by individuals or groups who did not form a campaign committee by the 30-day deadline. This would be less burdensome if all individuals and groups knew well in advance that they would eventually want to speak. But as the Supreme Court has recognized, this is not the case:
[T]he public begins to concentrate on elections only in the weeks immediately before they are held. There are short timeframes in which speech can have influence. The need or relevance of the speech will often first be apparent at this stage in the campaign. The decision to speak is made in the heat of political campaigns, when speakers react to messages conveyed by others.
Citizens United
,
In Missouri, individuals may not learn of ballot measures until days before the election. Once the ballot is finalized, the secretary of state sends election authorities the notice of the measures to be voted on. See § 116.240 . The local election authority publishes the notice in local newspapers, with the first publication generally occurring less than 30 days before the election. See §§ 116.250-60 , 115.127.2 .
True, an effect of the 30-day formation deadline is that campaign committees' statements of organization are generally due 10 days before the election. See § 130.046 (statements of organization due 20 days after "becom[ing] a committee"). The MEC argues this is important, because it ensures that voters know who is speaking before the election. But even without the formation deadline, all campaign *953 committees active 12 days before the election must file a statement of organization (and a disclosure report) eight days before the election. See §§ 130.046.1(2) , 130.021.5 . See also § 130.044.1 (campaign committees that receive a $5,000 donation from any single contributor must "electronically report [that contribution] to the [MEC] within forty-eight hours," regardless when it is received).
Due to its burden on speech and its modest effect on preventing circumvention of the disclosure regime, the formation deadline is not narrowly tailored.
See
Catholic Leadership Coalition
,
No other part of section 130.011(8) or chapter 130 need be invalidated here, because the formation deadline is severable. This court "look[s] to state law to determine the severability of a state statute."
Phelps-Roper v. Koster
,
The district court did not err in granting summary judgment for MFA.
*******
The judgment is affirmed.
The Honorable Ortrie D. Smith, United States District Judge for the Western District of Missouri.
All statutory citations are to RSMo Supp. 2013, unless otherwise indicated.
"Continuing committees" may also support or oppose ballot measures.
See
§ 130.011(10)
. But for present purposes, continuing committees are not an adequate alternative, because they must be formed
60 days
before the election.
See
Reference
- Full Case Name
- MISSOURIANS FOR FISCAL ACCOUNTABILITY, Plaintiff-Appellee, v. James KLAHR, in His Official Capacity as Executive Director of the Missouri Ethics Commission Defendant-Appellant.
- Cited By
- 17 cases
- Status
- Published