Boone County Republican Party Executive Committee v. Wallace

District Court, E.D. Kentucky·Decided August 22, 2024·No. 3:24-cv-00049·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF KENTUCKY CENTRAL DIVISION FRANKFORT

) BOONE COUNTY REPUBLICAN ) PARTY EXECUTIVE COMMITTEE, ) et al., ) Case No. 3:24-cv-00049-GFVT ) Plaintiffs, ) ) OPINION V. ) & ) ORDER H. DAVID WALLACE, et al., ) ) Defendants. )

*** *** *** *** The Constitution does not require that political speech be absolutely free from governmental requirements related to the message. With that said, governmental requirements can become so burdensome that there is a risk that they actually limit the message. When that line is crossed, it contravenes the protections of the First Amendment. This case presents the question of whether a Kentucky statute and Kentucky Registry of Election Finance regulations cross the line described. The Plaintiffs seek an Order preventing the Defendants from taking enforcement action against them if, as Executive Committees, they use funding to advocate in favor of a constitutional amendment on the November ballot. Simply put, the Plaintiffs contend that the line has been crossed. But on the facts presently before the Court, that is not likely to be the case. For the reasons set out below, the Motion for Preliminary Injunction [R. 6] is DENIED. I In March 2021, the Kentucky General Assembly enacted House Bill (HB) 563. Under HB 563, Kentucky taxpayers who donate to account-granting organizations (AGO) receive essentially a dollar-for-dollar tax credit against their income taxes. These AGOs allocate taxpayer contributions to education opportunity accounts (EOA), which can be used for education-related expenses. The primary goal behind this tax structure was to assist in reducing the cost of nonpublic school tuition. The law became effective on June 29, 2021, but was short-

lived. On December 15, 2022, the Kentucky Supreme Court found the law was unconstitutional under Section 184 of the Kentucky Constitution. Commonwealth ex rel. Cameron v. Johnson, 658 S.W.3d 25 (Ky. 2022). Section 184 provides that “no sum shall be raised or collected for education other than in common schools until the question of taxation is submitted to the legal votes.” Ky. Const. § 184. In response to the Supreme Court’s opinion, the Kentucky General Assembly placed a constitutional amendment on the ballot for November 2024. The Kentucky Registry of Election Finance (KREF) is tasked with, inter alia, “administering Kentucky’s campaign finance law.” About, Kentucky Registry of Election Finance, https://kref.ky.gov/about/Pages/default.aspx (last accessed July 24, 2024). As part of the enforcement scheme, KREF can issue advisory opinions

pursuant to KRS § 121.135. In June 2024, the Jessamine County Republican Party Executive Committee (JCRP) and the Hardin County Republican Party Executive Committee (HCRP) wrote to KREF seeking an advisory opinion on whether they could use funds to campaign in favor of the School Choice Amendment on the November 2024 election ballot. The Boone County Republican Party Executive Committee (BCRP) did not request an advisory opinion, although they are a party to this suit.1

1 The Defendants argue that BCRP cannot bring a preliminary injunction motion due to their failure to request an advisory opinion. [R. 14 at 7.] The Court disagrees. The Supreme Court found that when a Plaintiff alleges “an intention to engage in a course of conduct arguably affected with a constitutional interest, but proscribed by statute, and there exists a credible threat of prosecution thereunder,” the burden for a preliminary injunction has been met. BCRP, as well as JCRP and HCRP, have all raised money with the explicit purpose of campaigning in favor of the School Choice Amendment. Specifically, the Plaintiffs seek to invest in “election-related communications for both their nominated candidates, and the School Choice Amendment, usually in the same mailer or door-to-door hangers.” Id. at 7. The mail

piece must be finalized by October 2024 in order to be delivered before the November 5th election date. On July 8, 2024, KREF issued Advisory Opinion 2024-02, in which they found that the Plaintiffs could not expend funds that advocate in favor of the School Choice Amendment. As support KREF found that within the definition of “executive committee” in 32 KAR 1:050, the Plaintiffs are only entitled to “raise[] and spend[] funds to promote political party nominees,” not advocate for a constitutional amendment. Further, KREF found that advocating for a constitutional amendment was not part of “other activities commensurate with the day-to-day operations of a political party.” Advisory Opinion 2024-02, Kentucky Registry of Election Finance (July 8, 2024), https://kref.ky.gov/KREF%20Advisory%20Opinions/2024-

002%20Opinion.pdf. After the issuance of the Advisory Opinion, Mr. Weist, counsel for the Plaintiffs, emailed KREF to say that the Plaintiffs “intention is to run electioneering communications that jointly advocate for both the Republican ticket (up and down the ballot) as well as the constitutional amendment, including voter education that a straight ticket vote does not vote for the amendment.” [R. 14 at 11.] In their Response, the Defendants appear to contend that this particular framing of the issue presents “a different question entirely” than what was covered in

Babbitt v. United Farm Workers Nat'l Union, 442 U.S. 289, 298 (1979). The Court finds that because BCRP has alleged their intent to engage in the same conduct as JRCP and HCRP, the same threat of prosecution exists to BCRP as well. the AO 2024-02. Id. In their initial request, JCRP and HCRP both stated “they want to promote and support the passing of Amendment 2 on School Choice,” but said nothing about voter education or joint expenditures. [See R. 14-3 at 1-2.] Nonetheless, the Defendants reiterated at the Preliminary Injunction hearing that the

Plaintiffs cannot advocate in favor of the School Choice Amendment as an Executive Committee. The Plaintiffs, however, could advocate for the School Choice Amendment if they formed a Political Issues Committee—but they could not advocate for a political candidate as a Political Issues Committee. Stated another way, there is no way for the Plaintiffs to advocate for both political candidates and political issues, such as the Constitutional Amendment in question, without having to operate as both an Executive Committee and a Political Issues Committee. The Plaintiffs feel certain that if they were to expend money in favor of the School Choice Amendment, they would face an enforcement action, effectively chilling their election- related speech. As such, the Plaintiffs filed the present action arguing the Defendants’ AO 2024- 02 violated the First Amendment. As relief, the Plaintiffs seek “a preliminary injunction or

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