Weber v. Heaney

• Decision Date: 17 June 1993
• Docket Number: No. 92-2458,92-2458
• Citation: 995 F.2d 872
• Parties: John Vincent WEBER; James M. Ramstad; David F. Durenberger, Appellees, 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, Appellants.
• Court: U.S. Court of Appeals — Eighth Circuit

Page 872

995 F.2d 872

61 USLW 2787

John Vincent WEBER; James M. Ramstad; David F Durenberger, Appellees, 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, Appellants.

No. 92-2458.

United States Court of Appeals Eighth Circuit.

Submitted March 18, 1993.

Decided June 17, 1993.

Jocelyn F. Olson, Asst. Atty. Gen., St. Paul, MN, argued, for appellants.

Douglas A. Kelley, Minneapolis, MN, argued, for appellees.

Vivian Clair, Washington, DC, argued, for amicus curiae Federal Election Com'n.

Before FAGG, MAGILL, and HANSEN, Circuit Judges.

MAGILL, Circuit Judge.

This case addresses the following issue: whether the Minnesota Congressional Campaign Reform Act, that establishes a system by which federal congressional candidates may agree to limit campaign expenditures and receive state funding for their campaigns, is preempted by the Federal Election Campaign Act (FECA). The district court ¹ held that the Campaign Reform Act was preempted, granted the plaintiffs' motion for summary judgment, and permanently enjoined Minnesota from implementing and enforcing the Act. We affirm, holding the express FECA and regulatory preemptions are not ambiguous and the plain language of the preemptions cover the entire Campaign Reform Act.

I. BACKGROUND

In 1990, the Minnesota legislature found spending on campaigns for federal congressional office had "increased to a disgraceful level"; the candidates' need to raise funds diverts them from meeting voters and publicly debating current issues; current contribution and spending practices combined with ethical scandals in Washington, D.C., have caused public perception of corruption; and the United States Congress has not enacted reforms. Minn.Stat. § 10A.40, subd. 1 (1990). In response to these findings, the legislature enacted the Minnesota Congressional Campaign Reform Act (Campaign Reform Act), Minn.Stat. §§ 10A.40-.51. The legislature intended the Act to supplement FECA, 2 U.S.C. §§ 431 et seq., by providing a statutory scheme designed to encourage congressional candidates to limit the amount of money spent on campaigns.

The Campaign Reform Act establishes a system by which United States congressional candidates who have agreed to limit their expenditures may receive public funding. If a congressional candidate meets certain eligibility requirements, see Minn.Stat. § 10A.43, subd. 1(a), the candidate may choose to sign an agreement limiting campaign expenditures, Minn.Stat. § 10A.43, subd. 2. This agreement limits expenditures for an election year to $3,400,000 for Senate candidates and $425,000 for House candidates. Minn.Stat. § 10A.44, subd. 1. The expenditure limits for a postelection year are twenty percent of the election year figures. Minn.Stat. § 10A.44, subd. 2, 4. These limits are adjusted for inflation. Candidates who have agreed to the limits may receive public funding from general state funds of up to twenty-five percent of the expenditure limits if they provide evidence of contributions equal to that amount. Minn.Stat. §§ 10A.43, subd. 1(a)-(b); 10A.48.

A condition applies to both the public funding and the limitations. If all the candidates for an office agree to be bound by the limits, none of the candidates will receive public funding, but all will be bound by the limits. Minn.Stat. § 10A.44, subd. 5(b). If all major party candidates agree to be bound, then the major party candidates will not receive public funding, but will remain bound by the limits. Minn.Stat. § 10A.44, subd. 5(c). If any candidate agrees to be bound by the limits, but a major party opponent does not agree to be bound, the candidate who agreed to be bound will receive public funding but may disregard the limits. Minn.Stat. § 10A.44, subd. 5(d).

Once a candidate has agreed to be subject to the expenditure limitations, the Minnesota Ethical Practices Board is authorized to enforce those limits. See Minn.Stat. § 10A.47, subds. 3, 4. A candidate who breaches an agreement to limit expenditures is 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 Campaign Reform Act also provides benefits to contributors. A contributor to the campaign of a candidate who has agreed to limit expenditures is entitled to a state refund for the contribution of up to $100 per couple or $50 per individual. Minn.Stat. § 10A.43, subd. 5.

The Campaign Reform Act expressly states that Minnesota congressional candidates are bound by federal limitations on contributions and loans. See Minn.Stat. §§ 10A.45, 10A.47, subd. 2. It also expressly provides that disclosure and reporting requirements and political party expenditures on behalf of congressional candidates are governed by federal law. See Minn.Stat. §§ 10A.46, 10A.51.

Plaintiffs/appellees, who at the time the complaint was filed were all members of the United States Congress, requested an advisory opinion from the Federal Election Commission (FEC) concerning whether FECA preempted the Campaign Reform Act. Minnesota state officials, including the Minnesota Attorney General and authors of the Campaign Reform Act from both the Minnesota House of Representatives and the Minnesota Senate, submitted comments to the FEC on this issue. After reviewing these comments, the FEC issued an advisory opinion in which the commissioners unanimously concluded FECA preempts the Campaign Reform Act in its entirety. See Federal Election Commission, advisory opinion 1991-22 (Oct. 7, 1991).

Appellees then filed a complaint in district court against the defendants/appellants, Minnesota State officials responsible for enforcing various provisions of the Campaign Reform Act, in their official capacities. Appellees sought a declaration that the Campaign Reform Act (1) is preempted by FECA; (2) violates the First Amendment of the United States Constitution; and (3) violates the Privileges or Immunities Clause of the Fourteenth Amendment.

Appellees moved for summary judgment, which the district court granted on the ground that the Campaign Reform Act is preempted by FECA. The court concluded that a previous Eighth Circuit opinion was controlling authority that the FECA preemption provision was ambiguous, thus it was necessary to consider extrinsic aids to interpretation. The court stated the legislative history was inconclusive as to this issue. However, the FEC had promulgated a regulation stating FECA supersedes state law regarding contribution and expenditure limitations for federal candidates, and in an advisory opinion had specifically interpreted FECA to preempt the Campaign Reform Act. The court found the FEC's interpretation reasonable and deferred to it, holding FECA preempted the Campaign Reform Act in its entirety. The district court permanently enjoined the appellants from implementing and enforcing the Campaign Reform Act. 793 F.Supp. 1438.

The district court also rejected appellees' First and Fourteenth Amendment claims, holding that the First Amendment was not implicated by the Campaign Reform Act, and that appellees had failed to assert a fundamental right, which is a requisite for a claim under the Privileges or Immunities Clause. The First and Fourteenth Amendment claims are not before us on appeal.

II. DISCUSSION

We review the district court's grant of summary judgment de novo, United States ex rel. Glass v. Medtronic, Inc., 957 F.2d 605, 607 (8th Cir.1992), and we apply the same standards used by the district court, Thelma D. by Delores A. v. Board of Educ., 934 F.2d 929, 932 (8th Cir.1991). We affirm only when the record shows there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. See Fed.R.Civ.P. 56(c); Osborn v. E.F. Hutton & Co., 853 F.2d 616, 618 (8th Cir.1988). The material facts are not in dispute here; the only issue before us is a question of law: whether the Campaign Reform Act is preempted by FECA.

Congress passed FECA in 1971 and, in response to Watergate, amended it in 1974. This amended version limited political contributions, see 2 U.S.C. § 441a(a), and campaign expenditures. ² It also replaced all prior disclosure laws concerning contributions and contained requirements for reporting and disclosing contributions. See 2 U.S.C. §§ 432, 434. Of primary importance in this case, FECA contains an express preemption clause which states: "The provisions of this Act, and of rules prescribed under this Act, supersede and preempt any provision of State law with respect to election to Federal office." 2 U.S.C. § 453.

To enforce FECA, Congress created the FEC, vesting it with "primary and substantial responsibility for administering and enforcing the Act." Buckley v. Valeo, 424 U.S. 1, 109, 96 S.Ct. 612, 678, 46 L.Ed.2d 659 (1976). Congress delegated the FEC "extensive rulemaking and adjudicative powers," id. at 110, 96 S.Ct. at 678, and authorized it to prescribe rules and regulations to carry out the provisions of FECA, 2 U.S.C. § 438(a)(8). The FEC also is empowered to give advisory opinions when requested. See 2 U.S.C. §§ 437d(a)(7), 437f.

Congress' intent is the touchstone of our analysis of whether FECA preempts the Campaign Reform Act. See Cipollone v. Liggett Group, Inc., --- U.S. ----, ----, 112 S.Ct. 2608, 2617, 120 L.Ed.2d 407 (1992). Congress' intent may be "explicitly stated in the statute's language or implicitly contained in its structure and purpose." Jones v. Rath Packing Co., 430 U.S. 519, 525, 97 S.Ct. 1305, 1309, 51 L.Ed.2d 604 (1977). When Congress has not spoken expressly, a state law is preempted if it conflicts with federal law or if federal law "occupies a legislative field," indicating that Co...