Weber v. Heaney, Civ. 4-91-1009.

• Decision Date: 10 June 1992
• Docket Number: Civ. 4-91-1009.
• Citation: 793 F. Supp. 1438
• Parties: John Vincent WEBER, James M. Ramstad, David F. Durenberger, Plaintiffs, v. William M. HEANEY, Bruce D. Willis, Vanne O. Hayes, Elsa M. Carpenter, Douglas R. Ewald, Emily Ann Staples, in their capacities as members of the Minnesota Ethical Practices Board; Minnesota Ethical Practices Board; Michael A. McGrath, in his capacity as Minnesota State Treasurer; Dorothy A. McClung, in her capacity as Minnesota Commissioner of Revenue, Defendants.
• Court: U.S. District Court — District of Minnesota

793 F. Supp. 1438

John Vincent WEBER, James M. Ramstad, David F. Durenberger, Plaintiffs, v. William M. HEANEY, Bruce D. Willis, Vanne O. Hayes, Elsa M. Carpenter, Douglas R. Ewald, Emily Ann Staples, in their capacities as members of the Minnesota Ethical Practices Board; Minnesota Ethical Practices Board; Michael A. McGrath, in his capacity as Minnesota State Treasurer; Dorothy A. McClung, in her capacity as Minnesota Commissioner of Revenue, Defendants.

Civ. 4-91-1009.

United States District Court, D. Minnesota, Fourth Division.

June 10, 1992.

Douglas A. Kelley, Julie L. Levi, Kelley Law Office, Minneapolis, Minn., for plaintiffs.

Hubert H. Humphrey, III, Minnesota Atty. Gen., and John R. Tunheim, Chief Deputy Atty. Gen., Jocelyn F. Olson, Asst. Atty. Gen., St. Paul, Minn., for defendants.

MEMORANDUM AND ORDER

MacLAUGHLIN, Chief Judge.

This matter is before the Court on plaintiffs' motion for summary judgment. The motion will be granted.

FACTS

This is an action challenging the constitutionality of the Minnesota Congressional Campaign Reform Act (Campaign Reform Act), Minn.Stat. §§ 10A.40-.51. Plaintiffs are current members of the United States Congress. Compl. ¶ 9-11; Aff. of James M. Ramstad ¶ 1; Aff. of John V. Weber ¶ 1. James M. Ramstad is the United States Representative for the Third District of Minnesota. John Vincent Weber is the United States Representative for the Second District of Minnesota. David F. Durenberger is a United States Senator for the State of Minnesota. Each defendant, who is sued in his or her official capacity, is responsible for enforcing various provisions of the Campaign Reform Act. Defendants William M. Heaney, Bruce D. Willis, Vanne O. Hayes, Elsa M. Carpenter, and Emily Ann Staples are members of the Minnesota Ethical Practices Board (the Board). Compl. ¶ 12. Defendant Douglas R. Ewald is a former member of the Board, who has since been replaced by Douglas H. Silers. Defendant Michael A. McGrath is the Treasurer of the State of Minnesota. Defendant Dorothy A. McClung is the Minnesota Commissioner of Revenue.

Faced with what it perceived as public perception of corruption in federal congressional elections, the Minnesota Legislature enacted the Campaign Reform Act in 1990. See 1990 Minn.Laws, c. 608, art. 4 (codified at Minn.Stat. §§ 10A.40-.51). Specifically, the legislature made the following findings:

1) the spending on campaigns for congressional office has increased to a disgraceful level and continues to rise;

2) the need to raise campaign contributions has caused Minnesota congressional candidates to aggressively solicit contributions from special interest groups and out-of-state sources, which diverts them from meeting Minnesota voters and publicly debating the pressing issues of the day;

3) the current practice of congressional campaign contributions and spending, along with current scandals in Washington, D.C., have created a public perception of political corruption and undue influence by wealthy special interests;

4) the United States Congress has debated necessary reforms for years but has failed to act, and the Federal Election Campaign Act does not provide a means to encourage congressional candidates to voluntarily limit the amount of money they spend in campaigns; and

5) as a consequence, Minnesota's representation in Congress is jeopardized and the public's confidence in its elected congressional representatives is weakened.

Minn.Stat. § 10A.40, subd. 1.

To combat these problems, the legislature enacted a statutory scheme designed to encourage congressional candidates to voluntarily limit the amount of money they spend on campaigns. See Minn.Stat. § 10A.40, subd. 2(a). In particular, the Campaign Reform Act was intended to address these perceived problems 1) by establishing voluntary limitations on campaign spending; 2) by providing an alternative source of campaign financing, namely, public funding; 3) by affording candidates the opportunity to focus on public issues rather than fund-raising; and 4) by reducing the influence of special interest groups and out-of-state interests. See Minn.Stat. § 10A.40, subd. 2(b)(1), (2), (3), (4). Although the legislature intended to supplement federal law, it did not "intend to enact legislation that is in conflict with existing federal law," nor did it intend "to regulate where specific federal laws have already been enacted." Minn.Stat. § 10A.40, subd. 3.

To effectuate its purposes, the Campaign Reform Act establishes a system that allows for public funding of eligible congressional candidates who have signed agreements to limit campaign expenditures. As part of this public funding system, the Campaign Reform Act first sets up several eligibility requirements. Minn.Stat. § 10A.43, subd. 1(a), (b). Once a congressional candidate has met these eligibility requirements, he or she may choose to sign an agreement limiting campaign expenditures. Minn.Stat. § 10A.43, subd. 2. For an election year, the expenditure limits, which are adjusted for inflation, are $3,400,000 for Senate candidates and $425,000 for House candidates. Minn.Stat. § 10A.44, subd. 1. For a post-election year, the spending limits are twenty percent of the election year figures, or $680,000 for Senate candidates and $85,000 for House candidates, again adjusted for inflation. Minn.Stat. § 10A.44, subd. 4 & subd. 2.

Candidates who fulfill these eligibility requirements may receive public funding from general state funds of up to twenty-five percent of the expenditure limit, provided that they provide evidence to the Board of contributions equal to the amount of funding sought. Minn.Stat. §§ 10A.43, subd. 1(a), (b) & 10A.48. However, both public funding and these expenditure limitations are conditional. If all the congressional candidates for an office agree to be bound by the limits, no candidate for that office will receive public funding, but all such candidates will be bound by the limits. Minn.Stat. § 10A.44, subd. 5(b). If all major political party candidates for an office agree to be bound by the limits, the major party candidates will not receive public funding, but once again all such candidates will be bound by the limits. Minn.Stat. § 10A.44, subd. 5(c). However, if any congressional candidate agrees to be bound by the limits, but has a major party opponent who declines to be bound by the limits, the candidate who agrees to be bound will receive public funding and will not be bound by the limits. Minn.Stat. § 10A.44, subd. 5(d). Thus, the expenditure limitations and public financing are interrelated.

The Campaign Reform Act also imposes stringent penalties on those who breach agreements to limit campaign spending. Candidates who permit their authorized committees to make aggregate expenditures on their behalf in excess of the expenditure limits are subject to civil fines of up to four times the amount by which the expenditures exceed the limit. Minn.Stat. § 10A.47, subd. 1. The Board is authorized to enforce these spending limits. See Minn.Stat. § 10A.47, subds. 3 & 4.

In addition to regulating congressional candidates themselves, the Campaign Reform Act in certain instances affects contributors to congressional campaigns. In particular, contributors to the campaigns of candidates who agree to abide by the spending limits are entitled to a state refund for their contribution. Minn.Stat. § 10A.43, subd. 5. If a candidate files a signed expenditure limitations agreement, he will receive a supply of official refund receipt forms from the Board to be given to contributors. Id. Contributors can then in turn file the receipt form and receive a direct state refund of up to $100 per couple or $50 per individual. See Minn.Stat. § 290.06, subd. 23.

In two areas the Campaign Reform Act tracks federal law. First, it expressly provides that Minnesota congressional candidates are bound by the federal limits on contributions and loans. See Minn.Stat. §§ 10A.45 & .47, subd. 2. Second, the Campaign Reform Act expressly states that the expenditures of political parties on behalf of congressional candidates, as well as all disclosure and reporting requirements, are also governed by federal law. See Minn.Stat. §§ 10A.46 & .51. As noted above, the legislature intended the Act to supplement, not contradict, existing federal law.

To date, seven candidates for congressional office have signed and filed expenditure limitation agreements with the Board. Aff. of Mary Ann McCoy ¶ 2.¹ These candidates have also requested and received official contribution receipt forms to distribute to contributors. Id. ¶ 3.

Plaintiffs filed their complaint on December 18, 1991, seeking a declaration that the Campaign Reform Act: 1) is preempted by the Federal Election Campaign Act (FECA), 2 U.S.C. §§ 431 et seq.; 2) violates the First Amendment to the United States Constitution; and 3) violates the Privileges or Immunities Clause of the Fourteenth Amendment. This matter is now before the Court on plaintiff's motion for summary judgment.²

DISCUSSION

A movant is not entitled to summary judgment unless the movant can show that no genuine issue exists as to any material fact. Fed.R.Civ.P. 56(c). In considering a summary judgment motion, a court must determine whether "there are any genuine factual issues that properly can be resolved only by a finder of fact because they may reasonably be resolved in favor of either party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986). The role of the court is not to weigh the evidence but instead to determine whether, as a matter of law, a genuine factual conflict exists. AgriStor Leasing v. Farrow, 826 F.2d 732, 734 (8th Cir.1987). "In making this determination, the court is required to view the evidence in the light most favorable to the nonmoving party and to give that party the benefit of all reasonable inferences to be drawn from the facts." AgriStor Leasing, 826 F.2d at 734. When...