Kentucky Educators Public Affairs Council v. Kentucky Registry of Election Finance

677 F.2d 1125, 110 L.R.R.M. (BNA) 2398
Court of Appeals for the Sixth Circuit·Decided May 13, 1982·No. No. 79-3421·Published·Cited by 14 cases

Opinion

JOHN T. NIXON, District Judge.

The intervening defendants below, Robert Roos and Marty Craig, appeal from the District Court’s grant of summary judgment in favor of plaintiff-appellee Kentucky Educators’ Public Affairs Council and its officers, [hereinafter collectively referred to as “KEPAC”] The defendant Kentucky Registry of Elections Finance did not appeal but joins with Roos and Craig as an amicus curiae. The National Right to Work Committee also appears as amicus curiae. The District Court enjoined the Registry and its members from interfering [1127] with certain political activities of KEPAC protected by the First and Fourteenth Amendments to the United States Constitution. We affirm.

I

The journey of this case to its present posture has been a rather tortuous one and a thorough recapitulation is essential to a proper understanding and consideration.

In 1974, the Kentucky legislature enacted the Kentucky Corrupt Practices Act [KRS Chapter 121, hereinafter “the Act”]. The purpose of the Act is to regulate the financing of campaigns for public office and other activities involving questions to be submitted to the State’s voters. The Act places limitations on contributors and prohibits corporations from contributing money, services, or other things of value toward the nomination or election of any state, county, city, or district officer. The Act also prohibits the use of coercion in obtaining funds from state or federal employees. For the purpose of enforcing its provisions, the Act creates the Kentucky Registry of Election Finance [hereinafter “Registry”] composed of five members appointed by the Governor.

The Registry is empowered to receive sworn complaints from registered voters, conduct preliminary investigations, hold hearings, and if it finds reasonable grounds to believe that a violation of the Act has occurred it shall notify the Kentucky Attorney General or the appropriate Commonwealth’s Attorney of the suspected violations.1

The maximum penalty for violation of the Act is a $10,000 fine and one year imprisonment.

KEPAC is an unincorporated, political action committee established by the Kentucky Education Association [hereinafter “KEA”]. KEA is a non-profit corporation organized under the laws of Kentucky and with headquarter offices in Louisville. It is a statewide employee organization composed primarily of teachers and other personnel who are employed in the various Kentucky elementary and secondary systems. Membership is voluntary and currently the rolls list 27,000 members. Since 1968, KEA has been affiliated with the National Education Association [hereinafter the “NEA”]. The vast majority of the NEA’s 1.7 million persons are public school teachers.2 All members of the KEA are required to join the NEA. However, membership in the KEA and the NEA is not a requirement for employment in any of Kentucky’s various school systems.

The KEA is barred from making political contributions from the treasury created by its members’ dues. Therefore, like many corporations and labor organizations, it has established a separate political arm, in this case, KEPAC. KEPAC makes contributions in national, state, and local political contests. Its treasury is completely separate from KEA, but is derived almost exclusively from the contributions of KEA members. Currently, slightly over 85% (23,000 of 27,000) of the KEA membership contributes to KEPAC. Contributions to KEPAC, however, are not a prerequisite for becoming or remaining a member or officer in KEA.

Contributions to KEA and KEPAC are accomplished in the following manner:

Kentucky law authorizes local school systems to deduct KEA dues and other membership dues from salary checks. The deduction can be made only upon request of an employee or group of employees. This payroll deduction plan, called Automatic Payment Authorization, [hereinafter, “APA”] has long been in use in Kentucky.3 Since 1975, KEPAC has used a “reverse check-off” system in conjunction with KEA’s payroll deduction of dues to obtain contributions. Under the reverse check-off system used by KEPAC, all KEA members executing APA forms have contributions, [1128] along with dues payments, insurance premiums, and retirement fund contributions, deducted from their salary checks unless the KEA member affirmatively checks off that she or he declines to contribute to KEPAC. The aims and activities of KEPAC are explained on the APA form.4 If a KEA member does not initially check off his or her designation to contribute to KEPAC, an automatic contribution is made. If the member does cheek off, and yet, subsequently decides not to participate, the member can stop the deduction and can also obtain a refund of past contributions.5 Separate forms are used for members who wish to contribute to KEPAC but not through the payroll deduction system.

Prior to the development and utilization of the reverse check-off procedure in 1975, contributions from KEA members to KE-PAC had been modest at best. During the year immediately preceding, the largest total amount contributed in any quarterly reporting period was $5,740, and the greatest number of members contributions in any quarter was 2,854. During the first year that the reverse check-off system was in effect, the lowest number of KEA members contributing in any one reporting period was 21,463. The highest amount of money contributed in any period was $82,-081 and the lowest amount was $18,912.6 Both intervening defendants, Robert A. Roos and Marty A. Craig, were members of KEA who did not check-off and did not seek refunds.

A complaint about KEPAC, KEA and the APA/Reverse Check-Off System was filed with the Registry pursuant to KRS 121.140 and on November 4, 1977, following administrative hearings, the Registry issued its Findings of Fact, Conclusions of Law and Order holding that boards of education throughout Kentucky, KEA, and KEPAC were soliciting and collecting political contributions in a manner violative of the Act. Specifically, the Registry concluded:

(1) Boards of Education which are engaged in the deduction of KEPAC . . . contributions from the salaries of KEA members are rendering a service or other things of value to KEPAC ... in violation of KRS 121.025.
(2) KEPAC is a committee as defined in KRS 121.015 (3), and should report receipt of services or other things of value received by it.
(3) The “reverse check-off” method of collecting political contributions as described in the evidence is coercive and is being participated in by Boards of Education, KEA, [and] KEPAC ... in continuing violations of KRS 121.320.

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Kentucky Educators Public Affairs Council v. Kentucky Registry of Election Finance, 677 F.2d 1125, 110 L.R.R.M. (BNA) 2398 (6th Cir. 1982).

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