Ronald Calzone v. Nancy Hagan
Opinion
Appellant Ronald John Calzone seeks a permanent injunction against the Missouri Ethics Commission (the "
Commission
") to prevent the Commission from enforcing against him
I. Background
Calzone is the incorporator, president (the sole officer), director, registered agent, and one of three members of the Board of Directors (the " Board ") of Missouri First, Inc. (" Missouri First "). Missouri First is a non-profit organization, and its charter states that it uses legislative lobbying to influence public policy, mobilize the public, and meet Missouri First's objectives. R. Doc. 34, at 4. On its website, it also states that "there is strength in numbers" when lobbying and solicits new members to help further advance Missouri First's legislative agenda. R. Doc. 34, at 5.
Calzone regularly meets with legislators, legislative staff, and other legislative groups to discuss Missouri legislation. These meetings cover both specific legislation or proposed legislation and include Calzone and Missouri First's opinion as to whether legislation should be passed or blocked. Calzone admits that when he met with legislators in Jefferson City, Missouri, he usually disclosed his affiliation with Missouri First, commonly by identifying himself as "Ron Calzone, Director of Missouri First" or "Ron Calzone, a director of Missouri First." R. Doc. 34, at 5. As the Director, sole officer, registered agent, and board member of Missouri First, Calzone is responsible for determining who will appear before the legislature and present Missouri First's agenda. No evidence in the record suggests that anyone other than Calzone has represented Missouri First before the Missouri legislature. Calzone does not receive any compensation or make any expenditures when lobbying on behalf of Missouri First.
In 2014 and 2016, the Commission received two complaints against Calzone claiming that he violated the Missouri Statutes, which define who qualifies as a lobbyist and require those individuals to register as lobbyists and file regular lobbying reports. The Missouri Society of Governmental Consultants filed the first complaint, and the Commission found probable cause to believe that Calzone violated the lobbying statutes. Calzone appealed the decision, and the Administrative Hearing Commission ordered discovery. Calzone then sought a writ of prohibition from the Cole County, Missouri Circuit Court. The circuit court granted the petition, finding that the Missouri Society of Governmental Consultants is a corporation, and Missouri law does not allow corporations to file complaints with the Commission. The Commission appealed and the Missouri Court of Appeals reversed and remanded with directions to quash the writ. The Administrative Hearing Commission then stayed the proceedings pending this court's decision. The second complaint was filed by Michael Reid, a natural person, and was substantively identical to the first. The Commission has dismissed the second complaint.
On October 21, 2016, Calzone filed suit in federal court stating the Commission violated his First Amendment rights and requesting a temporary restraining order to prevent the Commission from enforcing the Missouri Statutes against him or any other unpaid lobbyists. Initially, the district court abstained from hearing the case because the 2016 complaint was pending before the Commission, but, after the Commission dismissed the complaint, the district court resumed the temporary restraining order proceedings. The court denied Calzone's request for a temporary restraining order, finding he was not likely to succeed on the merits.
Calzone also moved for a permanent injunction, challenging the constitutionality of the Missouri Statutes both facially and as applied to him. After a hearing, the court, applying exacting scrutiny, found that Missouri had a sufficiently important interest in governmental transparency and that requiring unpaid lobbyists to register with the government and file lobbying reports was substantially related to furthering that transparency interest. Thus, the court held Calzone's as-applied challenge failed.
The district court then turned to Calzone's facial challenge and found it lacking as well. The court determined that the word "designated" in the statute was not unconstitutionally vague because an ordinary person would have a reasonable opportunity to understand what the statute required. Because Calzone was the registered agent of Missouri First, the court reasoned, he had the authority to appoint himself as a lobbyist for Missouri First. The court held this action is within the plain meaning of the statute.
Thus, because the district court found both claims failed on the merits, it denied Calzone's request for a permanent injunction. Calzone now appeals.
II. Discussion
We normally review the denial of a permanent injunction for abuse of discretion,
Hinz v. Neuroscience, Inc.
,
Calzone makes three separate claims on appeal. First, he argues that the district court erred by applying the wrong level of scrutiny to his constitutional claims. Second, he argues that
A. Level of Scrutiny
As a preliminary argument, Calzone asserts that the district court did not apply the correct level of scrutiny, claiming that strict scrutiny rather than intermediate or exacting scrutiny applies. It does not.
In
Citizens United v. FEC
, the Supreme Court held that "[t]he Government may regulate corporate political speech through disclaimer and disclosure requirements, but it may not suppress that speech altogether."
Citizens United v. FEC
,
Calzone argues that the district court inappropriately relied on
Citizens United
for the level of scrutiny because that case concerned campaign finance whereas this case involves lobbying. Calzone makes an inappropriate distinction.
Citizens United
did involve campaign finance, but the Supreme Court referred to disclosure and disclaimer requirements generally, and it made no distinction between disclosure statutes in campaign finance versus lobbying cases.
Citizens United
,
B. As-Applied Challenge
Next, Calzone argues that the district court erred when it found that, as applied to him, an uncompensated person,
We do not, as both Calzone and the dissent urge, consider the application of this statute to unpaid lobbyists who make no expenditures related to lobbying efforts because this argument was not fairly raised before the district court. Calzone did not even raise it on appeal until oral argument, where he attempted to recast his claim as including an as-applied challenge to registration requirements for unpaid lobbyists who make no expenditures. Whether this narrower claim might have been successful is an interesting academic question, but Calzone forfeited any such claim in the district court and waived it on appeal.
Calzone's complaint alleged a cause of action under the First and Fourteenth Amendments, stating "specifically" that the state of Missouri violated his rights by seeking to apply the lobbying statutes to his "uncompensated policy conversations." R. Doc. 1, at 11. His motion for a preliminary injunction sought an order preventing Missouri from enforcing the lobbying statutes "against any individual that acts without being compensated" and "against those who act without being compensated." R. Doc. 2, at 2. The district court properly addressed the issue that Calzone raised. See R. Doc. 34, at 1 ("Calzone contends that Missouri cannot require him to register as a lobbyist ... because he is not paid to be a lobbyist and Missouri's definition of lobbyist is unconstitutionally vague.") (emphasis added); id. at 8 ("Calzone requests a permanent injunction prohibiting Defendants ... from enforcing or threatening to enforce the disclosure requirements ... against those who act without being compensated .") (emphasis added) (internal quotation marks omitted). Calzone's stipulation and factual assertions that he does not make expenditures are not the same as a legal argument premised on that fact.
Further, in his brief on appeal, Calzone's "Statement of the Issues" raised only the same legal issue that he presented in the district court: "May the government, consistent with the First and Fourteenth Amendments to the United States Constitution, require
unpaid individuals
to comply with Missouri's registration and reporting regime for legislative lobbyists?" Appellant's Br. 1 (emphasis added). His "Summary of the Case" likewise described the question presented as whether an individual may be regulated as a lobbyist "even if he acts solely
as an unpaid volunteer
."
Id.
at
i
(emphasis added). The summary objected to the district court's ruling that "Missouri could require
unpaid volunteers
to carry the same burdens as professional,
compensated
lobbyists."
Id.
(emphases added). Calzone's heading in the "Argument" section of his brief reads: "The district court erred in failing to apply strict scrutiny to Missouri's efforts to regulate
uncompensated volunteers
as lobbyists."
Id.
at 13 (emphasis added). Calzone's failure to include a narrower as-applied challenge in his statement of the issues waived the argument.
United States v. O'Neal
,
Even where the record factually supports what might be a better legal argument for reversal, it is not our place to raise it for a litigant who forfeits and waives the contention.
See, e.g.
,
Carpenter v. United States
, --- U.S. ----,
Before
Citizens United
and its progeny established the exacting review standard for disclosure statutes, this Court held that requiring lobbyists to register their activities was a compelling state interest that satisfied the strict scrutiny standard.
Minn. State Ethical Practices Bd. v. NRA
,
However, Calzone argues that the interest in having lobbyists register should apply only to paid lobbyists. He asserts that we should distinguish Harriss and Minnesota State Ethical Practices Board v. NRA from this case because those cases dealt with paid lobbyists and the government does not have a sufficient interest in having unpaid lobbyists like him register. This is a novel argument that presents an issue of first impression in the federal courts. But, upon reviewing existing case law, we find that the government retains a sufficiently important governmental interest in registering lobbyists whether the lobbyist is paid or unpaid.
In
NRA
, we held that the activity that warranted requiring the NRA's executive director to register and report as a lobbyist was his mailing of letters to Minnesota residents urging them to vote a specific way.
NRA
,
The Commission argues that it has an interest in transparency, which includes avoiding the fact or even the appearance of public corruption and knowing who is attempting to influence legislators and public policy. This interest, it argues, transcends whether that person is being paid. We agree that transparency is a sufficiently important governmental interest to satisfy exacting scrutiny. Though the lobbyists may not be receiving money, unpaid lobbyists could still offer things of value to legislators, creating a sufficiently important governmental interest in avoiding the fact or appearance of public corruption. Furthermore, the government and the public have a sufficiently important interest in knowing who is pressuring and attempting to influence legislators, and the ability to pressure and influence legislators is not limited solely to paid lobbyists.
Next, we turn to the question of whether the registration requirements in
In
Swanson
, we found that Minnesota's expenditure disclosure law "fail[ed] this test because its ongoing reporting requirement ... [was] untethered from continued speech [and did] not match any sufficiently important disclosure interest."
The regulation at issue here requires lobbyists to register each year that they plan to engage in lobbying activities, pay a $10 filing fee, and submit forms that include "the lobbyist's name and business address, the name and address of all persons such lobbyist employs for lobbying purposes, the name and address of each lobbyist principal by whom such lobbyist is employed or in whose interest such lobbyist appears or works."
It is clear that the Missouri statute is directly related to Missouri's interest in knowing who is acting as a lobbyist to influence legislators and public policy and to avoid the fact or appearance of corruption. We further find that the burden of these requirements does not outweigh Missouri's interest in transparency. In fact, these requirements are minimal, imposing a very slight burden on those required to register and report. The registration process takes little time, effort, and money to complete, and those requirements, respectively, need only be completed in the months or years in which Calzone actually engages in lobbying activities. Moreover, this legislative scheme is precisely that which we have previously held would satisfy the substantial relationship test.
See
Swanson
,
C. Facial Challenge
Finally, Calzone argues that Missouri's statute is facially unconstitutional because the word "designated" in the definition of a "legislative lobbyist" in
"Facial challenges are disfavored ...."
Phelps-Roper v. City of Manchester
,
(en banc). A successful facial challenge requires "establish[ing] that no set of circumstances exists under which [the statute] would be valid, or that the statute lacks any plainly legitimate sweep."
When "[c]onstruing a statute, [we] look[ ] first to its plain meaning."
United States v. Berger
,
The Missouri statute, in relevant part, defines a legislative lobbyist as:
[A]ny natural person who acts for the purpose of attempting to influence the taking, passage, amendment, delay or defeat of any official action on any bill, resolution, amendment, nomination, appointment, report or any other action or any other matter pending or proposed in a legislative committee in either house of the general assembly, or in any matter which may be the subject of action by the general assembly and in connection with such activity, meets the requirements of any one or more of the following:
...
(c) Is designated to act as a lobbyist by any person, business entity, governmental entity, religious organization, nonprofit corporation, association or other entity[.]
Black's Law Dictionary defines "designate" as "choos[ing] (someone or something) for a particular job or purpose." Designate , Black's Law Dictionary (10th ed. 2014). Similarly, the Oxford English Dictionary defines "designate" as "[a]ppoint[ing] (someone) to a specified office or post." Designate , English Oxford Living Dictionaries, https://en.oxforddictionaries.com/definition/designate (last visited Oct. 2, 2018).
Calzone essentially argues that the term "designated" is vague because the Commission found that Calzone had been "designated" a lobbyist even though the Board had taken no official action to name him a lobbyist. We note that this argument appears to be another as applied challenge; however, Calzone insists that he is bringing a facial challenge and that the word "designated" is unconstitutionally vague. Accordingly, we will consider this claim as a facial challenge.
The term "designated" is clearly defined, and the statute uses the word within its plain meaning; thus, "people of ordinary intelligence" would have a "reasonable opportunity to understand" what "designated" means in the context of the statute.
Reproductive Health Servs.
,
Because Calzone's claims fail on the merits, it is unnecessary for us to address the other elements for a permanent injunction.
See
Guttau
,
III. Conclusion
For the foregoing reasons, we affirm.
The government "depends upon the ability of the people to make their wishes known to their representatives."
E. R.R. Presidents Conference v. Noerr Motor Freight, Inc.
,
Yet Missouri regulates these First Amendment activities as "lobbying," even if no money changes hands, precisely because they influence government. Missouri's lobbying-disclosure law crosses the constitutional line by burdening Calzone's core First Amendment activities without either adequate justification or narrow enough tailoring. I accordingly dissent.
I.
Missouri law treats Calzone as a lobbyist because he has been "designated ... by ... [a] nonprofit corporation" to act on its behalf "for the purpose of attempting to influence" legislation.
The court insists on ignoring the fact that Calzone does not spend money on his advocacy efforts based on a crabbed reading of his complaint and motion for injunctive relief. In my view, we cannot overlook Calzone's lack of expenditures because it has been a piece of his as-applied challenge to Missouri's lobbying-disclosure law all along.
The meat of Calzone's as-applied challenge has always been, as one might expect, that Missouri cannot constitutionally apply its registration and reporting requirements to him . It simply is not true, as the court claims, that Calzone raised the issue of expenditures for the first time at oral argument. Beginning with his appearance before the Missouri Ethics Commission and continuing with his complaint in the district court, memorandum in support of his motion for a permanent injunction, stipulation of facts, briefing to this court, and oral argument, the record is stuffed full of references to Calzone's lack of expenditures, leaving no doubt that a key piece of his argument is that he does not give money or gifts to legislators. 5 The district court and Missouri were on notice that Calzone's constitutional argument folds in both his lack of compensation and his lack of expenditures, and so are we. Just because Calzone's lack of compensation is the lede does not mean that we get to bury the rest of the story.
The procedural posture provides us with yet another clue about the scope of our review. The district court's denial of a permanent injunction is just one ingredient of Calzone's appeal. The other is the court's decision to enter final judgment against him. By dismissing Calzone's complaint, the court rejected his request for a declaration that Missouri's lobbying-disclosure law is unconstitutional as applied to him, an individual who, as his complaint makes clear, neither is paid nor pays anyone else in connection with his advocacy. See Verified Complaint 1, 12 (stating that "[Calzone] does not give legislators any gifts" and requesting declaratory relief). The entire case is accordingly before us, not just Calzone's unsuccessful motion for a permanent injunction and not just the narrow issue the court addresses.
II.
Turning to the merits of Calzone's First Amendment challenge, the court would apply exacting scrutiny because Missouri's law calls for disclosure. Exacting scrutiny "requires a substantial relation between the disclosure requirement and a sufficiently important governmental interest."
Minn. Citizens Concerned for Life, Inc. v. Swanson
,
Missouri defends its right to regulate Calzone's activities based on a desire for transparency.
7
Missouri's asserted transparency interest, which the court accepts, has two layers: (1) an interest in "avoiding the fact or even the appearance of public corruption" and (2) an interest in "knowing who is attempting to influence legislators and public policy."
Ante
at 948. The first layer of its argument falls short because, as applied to Calzone, there is no "substantial relation between the disclosure requirement" and the government's anti-corruption interest.
Swanson
,
Missouri begins with its theory that Calzone must register as a lobbyist to prevent the fact or the appearance of corruption. The Supreme Court has recognized that the government has an important, if not compelling, interest in preventing corruption and the appearance of corruption.
See
McCutcheon v. FEC
,
Missouri has not pointed to "any plausible reason" why extending its reporting requirements to Calzone-who neither spends nor receives any money-is "necessary to accomplish [its] interest[ ]."
Swanson
,
The court bakes up an alternate theory by speculating that "[t]hough the lobbyists may not be receiving money, unpaid lobbyists
could
still offer things of value to legislators, creating a sufficiently important governmental interest in avoiding the fact or appearance of public corruption."
Ante
at 948 (emphasis added). But Missouri already requires people who offer something of value to register.
See
All that remains, then, is Missouri's "important interest," as the court puts it, "in knowing who is pressuring and attempting to influence legislators ...."
Ante
at 948. But "pressuring and attempting to influence legislators,"
Indeed, the court's decision in this case is in tension with
McIntyre
, which recognized that the "decision to remain anonymous," like the decision to speak itself, "is an aspect of the freedom of speech protected by the First Amendment."
The Supreme Court rejected Ohio's asserted transparency-related interest, holding that "providing voters with additional relevant information does not justify a state requirement that a writer make statements or disclosures she would otherwise omit."
Even so, the court assures us that the burdens on Calzone are "minimal" or "very slight." Ante at 949. The court's assurances, however, offer little comfort in light of the "minimal" justifications and evidence that Missouri provides for regulating the activities of individuals like Calzone. Moreover, the court's characterization understates the burden of complying with Missouri's lobbying-disclosure law.
Under the law, Calzone has to submit up to fourteen reports and to re-register with the Commission each year.
See
The completed puzzle here is more troubling than the sum of its parts. Although Calzone presents an as-applied challenge, which prevents us from considering other potential challengers to Missouri's law, the scope of the law is far-reaching. It does not appear to treat a member of a religious or civic organization who has been "designated" to attend a "Lobby Day" any differently from Calzone, who advocates on behalf of Missouri First. The law seemingly sweeps up all unpaid political advocacy by anyone who acts on behalf of someone else, no matter how often it occurs and regardless of its purpose.
By sweeping so widely, Missouri's law endangers the free exchange of ideas. Indeed, a political adversary, an unscrupulous government official, or even a legislator tired of being held accountable could simply submit a complaint to the Commission accusing a politically active citizen of lobbying-that is, speaking out-without first registering as a lobbyist. It may just be simpler for a citizen to skip a lobbying day or pass up the opportunity to call a legislator rather than having to complete tedious paperwork or risk sizeable fines and criminal penalties.
III.
Missouri's lobbying-disclosure law, as applied to Calzone, does not withstand exacting scrutiny. I would accordingly remand this case to the district court for consideration of what relief, if any, Calzone is due.
Missouri Revised Statute § 105.470 provides in relevant part:
(5) " Legislative Lobbyist ", any natural person who acts for the purpose of attempting to influence the taking, passage, amendment, delay or defeat of any official action on any bill, resolution, amendment, nomination, appointment, report or any other action or any other matter pending or proposed in a legislative committee in either house of the general assembly, or in any matter which may be the subject of action by the general assembly and in connection with such activity, meets the requirements of any one or more of the following:
...
(c) Is designated to act as a lobbyist by any person, business entity, governmental entity, religious organization, nonprofit corporation, association or other entity[.]
The pertinent sections of Missouri Revised Statute § 105.473 state:
1. Each lobbyist shall, not later than January fifth of each year or five days after beginning any activities as a lobbyist, file standardized registration forms, verified by a written declaration that it is made under the penalties of perjury, along with a filing fee of ten dollars, with the commission. The forms shall include the lobbyist's name and business address, the name and address of all persons such lobbyist employs for lobbying purposes, the name and address of each lobbyist principal by whom such lobbyist is employed or in whose interest such lobbyist appears or works.
...
3. (1) During any period of time in which a lobbyist continues to act as an executive lobbyist, judicial lobbyist, legislative lobbyist, or elected local government official lobbyist, the lobbyist shall file with the commission on standardized forms prescribed by the commission monthly reports which shall be due at the close of business on the tenth day of the following month[.]
The Honorable Nanette K. Laughrey, United States District Judge for the Western District of Missouri.
For context, inclusion of both the uncompensated and those who make no expenditures in the definition of "lobbyist" or "lobbying" is not uncommon in the states of the Eighth Circuit. In addition to Missouri, Iowa, Nebraska, North Dakota, and South Dakota do not identify compensation or expenditures as essential elements of the statutory definition of lobbyist or lobbying.
See
Iowa Code Ann. § 68B.2.13;
See, e.g.
, Transcript of Oral Argument at 12,
Calzone v. Mo. Ethics Comm'n
, No. 15-1450 EC (Mo. Admin. Hr'g Comm'n Feb. 3, 2016) ("[Calzone does not] dispute that someone who gives a gift to a legislator may be regulated as a lobbyist. That's simply not the case here."); Suggestions in Support of Plaintiff's Motion for a Temporary Restraining Order and Preliminary Injunctive Relief at 1 ("[Calzone] does not provide gifts, meals, or anything of value to legislators or legislative staff in connection with his activism.");
It is not clear to me that exacting scrutiny applies here. The only Supreme Court case analyzing a lobbying-disclosure law is
United States v. Harriss
, which applies a test resembling strict scrutiny.
One could imagine other potential interests that could conceivably justify a less aggressive form of regulation. For example, if a so-called unpaid lobbyist filled a position of trust as a representative fiduciary of another party, the state could assert an interest in regulating the relationship to prevent exploitation or self-dealing, much like with attorneys. But Missouri has neither asserted nor tailored its law to serve such an interest here.
Reference
- Full Case Name
- Ronald John CALZONE, Plaintiff - Appellant v. Donald SUMMERS, in His Official Capacity as Chairman of the Missouri Ethics Commission; Kim Benjamin, in Her Official Capacity as Vice-Chairwoman of the Missouri Ethics Commission; George Ratermann, in His Official Capacity as Commissioner of the Missouri Ethics Commission; Wayne Henke, in His Official Capacity as Commissioner of the Missouri Ethics Commission; Sherman Birkes, in His Official Capacity as Commissioner of the Missouri Ethics Commission; Cheryl Walker, in Her Official Capacity as Commissioner of the Missouri Ethics Commission; Elizabeth Ziegler, in Her Official Capacity as Executive Director of the Missouri Ethics Commission, Defendants - Appellees
- Cited By
- 2 cases
- Status
- Published