Caruso v. State of Oregon

CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 6, 2005
Docket04-35155
StatusPublished

This text of Caruso v. State of Oregon (Caruso v. State of Oregon) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caruso v. State of Oregon, (9th Cir. 2005).

Opinion

FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

MICHAEL CARUSO,  Plaintiff-Appellee, v. YAMHILL COUNTY, an Oregon No. 04-35155 municipal corporation, by and through its County Commissioner,  D.C. No. CV-03-01731-ALH Defendant, OPINION and STATE OF OREGON, Intervenor-Appellant.  Appeal from the United States District Court for the District of Oregon Ancer L. Haggerty, District Judge, Presiding

Argued and Submitted May 3, 2005—Portland, Oregon

Filed September 6, 2005

Before: Procter Hug, Jr., A. Wallace Tashima, and Richard R. Clifton, Circuit Judges.

Opinion by Judge Clifton

12139 CARUSO v. YAMHILL COUNTY 12143

COUNSEL

Stephen K. Bushong, Oregon Department of Justice, Salem, Oregon, for the intervenor-appellant.

Daniel W. Meek, Portland, Oregon, for the plaintiff-appellee.

OPINION

CLIFTON, Circuit Judge:

The State of Oregon appeals a district court order declaring Or. Rev. Stat. § 280.070(4)(a) unconstitutional and perma- nently limiting its enforcement. Section 280.070(4)(a) requires that ballots for initiatives proposing local option taxes include a statement: “This measure may cause property taxes to increase more than three percent.” The district court 12144 CARUSO v. YAMHILL COUNTY deemed this requirement constitutionally infirm, concluding that inclusion of the “three-percent warning” violated appellee Michael Caruso’s First Amendment rights as a petition circu- lator and his due process rights as a voter. We conclude that the requirement does not violate the U.S. Constitution, reverse the decision of the district court, and vacate the injunction limiting enforcement of section 280.070(4)(a).

I. BACKGROUND

The Oregon Constitution reserves to the people “the initia- tive power, which is to propose laws and amendments to the Constitution and enact or reject them at an election indepen- dently of the Legislative Assembly.” Or. Const. art. IV, § 1. Under Oregon law, the ballot titles for initiatives that propose the imposition of a local option tax must include an additional statement commonly referred to as the “three-percent warn- ing”: “This measure may cause property taxes to increase more than three percent.” Or. Rev. Stat. § 280.070(4)(a).

Appellee Michael Caruso was among the chief petitioners for an initiative measure which appeared on the ballot for the March 9, 2004, Yamhill County Special Election. Consistent with section 280.070(4)(a), the Yamhill County Commission adopted, on November 26, 2003, the following ballot title for the measure:

MEASURE 36-55

AUTHORIZES SPECIAL LEVY IF YAMHILL COUNTY PUD1 IS FORMED

QUESTION: Shall voters authorize levy of $0.003 per $1,000 of assessed valuation if Yamhill County People’s Utility District is formed? 1 Formation of the Yamhill County People’s Utility District (“PUD”) was proposed by Measure 36-54, which appeared on the same ballot. CARUSO v. YAMHILL COUNTY 12145 This measure may cause property taxes to increase more than three percent.

SUMMARY: This measure may be passed only at an election with at least a 50 percent voter turnout.

If the Yamhill County People’s Utility District is formed, this measure allows the District board of directors to impose a special levy on property within the district. Funds raised from the levy would be used to pay for an engineer’s report and a later elec- tion to issue revenue bonds, if held.

This one-time levy will raise about $9,700.00. The levy for a house with an assessed value of $150,000 would be about 45 cents.

The estimated tax cost for this measure is an ESTI- MATE ONLY based on the best information avail- able from the county assessor at the time of the estimate.

See also Or. Rev. Stat. § 250.035(1) (providing that the ballot title of any non-state initiative shall consist of a caption, ques- tion, and summary).

Caruso challenged the constitutionality of section 280.070(4)(a) before the district court, asserting that the required inclusion of the three-percent warning violated his First Amendment rights as a petition circulator and his due process rights as a voter. Caruso requested that the district court declare the provision unconstitutional, both as applied to Measure 36-55 and on its face, and enter preliminary and per- manent injunctions against its enforcement.

With the parties’ consent, the district court consolidated the hearing on Caruso’s motion for a preliminary injunction with the trial on the merits. In an opinion issued the day after the 12146 CARUSO v. YAMHILL COUNTY hearing, the district court held section 280.070(4)(a) unconsti- tutional as applied and as enacted. Adopting the reasoning set forth in a companion decision, Horton v. Multnomah County, No. Civ. 03-1257-HA, 2004 WL 1745789 (D. Or. Aug. 4, 2004), the district court deemed the three-percent warning “false and misleading” because it implied that the initiative measure “by itself” “may cause property taxes to increase more than three percent” when the increase proposed by Mea- sure 36-55 was in fact much lower: only “$0.003 per $1,000 of assessed valuation.”

The district court reasoned that section 280.070(4)(a) was therefore constitutionally infirm. First, it impeded Caruso’s ability to communicate the actual tax consequences of Mea- sure 36-55 and forced him to be associated with the State’s misleading message. In light of these burdens on “core politi- cal speech,” the district court determined that section 280.070(4)(a) was subject to, and did not survive, strict scru- tiny under the First Amendment. Second, section 280.070(4)(a) substantially chilled protected speech. Specifi- cally, because the three-percent warning applied to all initia- tives proposing local option taxes — including those which posed no threat of themselves increasing property taxes more than three percent — it discouraged others from circulating such initiatives by erecting the additional “hurdle of convinc- ing voters of the false nature of the state mandated ‘warn- ing.’ ” Finally, the three-percent warning obscured the actual subject of Measure 36-55, upsetting the evenhandedness of the election and working a fundamental unfairness on the vot- ers.

To remedy these constitutional infirmities, the district court enjoined the government defendants from enforcing section 280.070(4)(a) in relation to Measure 36-55, and, more broadly, in relation to “all ballot measures that by themselves cannot cause an increase in property taxes of more than three CARUSO v. YAMHILL COUNTY 12147 percent.” The State of Oregon, which had intervened to oppose Caruso’s claims, timely appealed.2

II. DISCUSSION

A. Mootness

Pursuant to the district court injunction, Measure 36-55 appeared on the ballot for the March 9, 2004, Yamhill County Special Election without the three-percent warning. The mea- sure failed, with 3,250 voters favoring the levy and 9,153 opposing it. The State argues that the election rendered moot Caruso’s claim that section 280.070(4)(a) is unconstitutional as applied to the defeated measure.

[1] As a general rule, a case is moot “ ‘when the issues pre- sented are no longer ‘live’ or the parties lack a legally cogni- zable interest in the outcome.’ ” Schaefer v. Townsend, 215 F.3d 1031, 1033 (9th Cir. 2000) (quoting Powell v. McCor- mack, 395 U.S. 486, 496 (1969)).

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