STATE OF MAINE BUSINESS AND CONSillvffiR COURT CUMBERLAND, ss Location: Portland Docket No.: DCD-AP-14-02 ./ THE NATIONAL ORGANIZATION ) FOR MARIUAGE, )
)
Petitioner, )
)
v. )
) DECISION ON PETITIONER'S ROl.,E MAINE COwllvllSSION ON ) SO( C) APPEAL GOVERNNffiNTAL ETIDCAL ) AND ELECTION PRACTICES, )
)
Respondent. )
I. lt"l'TRODUCTION
This matter is before the court on National Organization for Marriage's ("NOM")
Petition for Review of Agency Action pursuant to M.R. Civ. P. 80C. Petitioner seeks review by this Court of the June 30, 2014, determination by the Respondent, Maine Commission on Governmental Ethical and Election Practices (the "Com.mission"), finding NOM in violation of Maine's "ballot question committee" ("BQC") registration and reporting requirements pursuant to 21-A M.R.S. § I 056-B.
11. FACTUAL BACKGROUND NOM was fo\mded in 2007 pursuant to Title 26 U.S.C. § 50l(c)(4) as a social welfare group with the mission to promote and prese1ve the instit1.1tion of marriage as between one man and one woman across the country. (R. 12.) In 2009, NOM and its Executive Director, Brian Brown, had critical leadership roles in support of Maine's people's veto referendum to suspend a
recently enacted Maine law that would have allowed snme-sex marriage. Stand for Marriage . ' Maine ("SMw!") was a Political Action Committee ("PAC") dedicated to defeating the
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legalization· of same-sex marriage through the November referendum vote. 1 NOM was the biggest supporter of SwiM. In total, NOM donated over $2 million, representing 64% of the total spent by the PAC. (R. 11) NOM contends tbnt it made no expenditures to promote the Maine teferendum other thnn by contzibutions from SNIN1. /d, NOM makes its donors aware of its efforts to protect the traditional definition of marriage through various emnils And newsletters. In 2009, NOM sent a series ofemails that mentioned or discussed the Maine referendum as well as other nationwide initiatives. The ernails contained requests for donations to assist NOM in its efforts. However, NOM does not allow donors to earmark their contributions to specific projects promoted in the emails. 2 (R. 2.) In 2009, NOM generated over $5.5 million from fourteen (14) major donors. (R. 12.) NOM contends that in total, the cmails that discussed the Maine ballot question raised less than $5,000, the threshold for BQC registration. (R. 152.) NOM disputes the Commission's determination and donation calculations behind one email, which is alleged to have genernted $570 in donations. (R. 32.) NOM contcods thAt the email made no specific reference to the Maine referendum. As such, NOM does not believe th1H the mnount shottld count towards the $5,000 statutory limit. (R. 152.) NOM maintains that all donations were made in support of the Maine campaign came from NOM's generAl treasury and were not designated for any particular state's campaign. (R. 4.)
Despite NOM's role in funding the pia-referendum cmnpaigu, NOM did not register or file financial reports with the Ethics Commission flS a Ballot Question Committee ("BQC")
1 NOM's Excclltive Director, Brion Brown, fonncd SMM ond served on its three-person executive committee ns n prun;ny fundrniser ond decision-moker. (R. 14.) 2 The First CirC\Iit Court of Appeols rejected NOM's nrgument tbnt a stnte moy regulote only explicitly ennnnrked Cunds, noting thot "[s)uch n limitotion would ollow entities to ensiJy evode disclosure requirements by guiding the content of donors' roessngcs, dcfcnting the Stnte 's compelling interest iu informing voters." Nat'/ Org. for Marriage. inc. v. McKee 669 F. 3d 34, 47 n. 13.
purswult to 21-A M.R.S. § I056-B. Further, it did not publicly report its donors or any expenditure tbat it made to influence the referendum (other thau by contributions to SiVfM).
On October I, 2009, the Commission voted to investigate NOM to determine whether it was in violation of Maine cnmpaign laws by not registering as a BQC under 21-A M.R.S. § I056-B. (R. 1.) The investigntion was based on concems over large donations NOM made to SM1vl. Id. By the end of the cnmpaign, NOM had reportedly donnted $1.93 million to S1v1M. (R 11.) In a final detenninntion dntecl June 30, 2014, the Commission found NOM to be in violation and required NOM to register with the Commission flS a BQC, file a consolidated campaign finance report for calendar year 2009, and pay penalties totaling $50,250. (R. 2.) The Commission unanimously denied NOM's request for a waiver or reduction of the penalties.
ill. STANDARDS OF REVIEW A. tlli!Jeal Pursuant to M.R. Civ. P. 80C In its appellate capacity, the Court reviews agency decisions for "abuse of discretion, error of law, or findings Mt supported by tile evidence." Rangeley Crossroac/.s Coal. v. Land Use Reg. Comm'n, 2008 ME 115, ~ 10, 955 A.2d 223. The Court must "examine the record to determine whether any competent evidence supports the Commission's findings, as well as to detcrmi ne whetl1er the Commission has applied the applicable law." Bean "· t\daine UnemploymeJ/1/IIs. Comm 'n, 485 A.2d 630,632-33 (Me. 1984).
Tbe petitioner beru·s the bt~rden of proving that "no competent evidence supports the [Commission's] decision and that the record compels a contrary conclusion." Bischoffl'.lvlaine State Ret. Sys., 661 A.2d I 67, 170 (Me. 1995). "Judges mny not substitute their judgment for that of the [Commission] merely becnuse the evidence could give rise to more than one result." G111ick v. Bd. ofEnvtl. Prot., 452 A.2d 1202, 1209 (Me. ~ 982). Rather, the Court will defer to
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the Commission's conclusions when bnscd o11 evidence that "a reasonable mind might accept as adequate to support a conclusion." !d. In doing so, the Court must give great deference to the Commission's construction of its own mlcs and regulations "unless the rules or regulations plainly compel n different result." Rangeley Crossroads Coal, 2008 i\r.lE 115, ~ 10, 955 A2d 223.
B. Statutory Framework The Commission's investigation sought to determine whether NOM qualifies as a BQC pursuant to 21-A M.R.S. § l 056-B. A BQC is defined as an entity, other than a J>AC, '\vho receives contributions or makes expenditures, other than by contribution to a political action committee, aggregating in excess of $5,000 for the purpose of initiating or; influencing a campaign." !d. BQCs are required to file certain reports that include the nAme and address of ench contributor. § l 056-B(2). A "contribution" is defined several ways, including:
A. Funds that the contributor specified were given in connection with a campaign;
B. Fmtds provided in response to a solicitation that would lead the contributor to believe that the funds would be used specifically for the purpose of initialing or influencing a campaign;
C. Funds that can reasonably be determined to have been provided by the contributor for the purpose of initiAting or influencing a campaign when viewed in the context of the contribution nnd the recipient's activities regarding n cnmpa.ign ....
§ 1056-B(2-A). The First Circuit upheld the constitutionality of the BQC law, including its definition of "contribution." Nat'! Org. for lvlarriage v. JVicK.ee, 669 F.3d 34 (lst Cir. 2012). Whether NOiV.I is a BQC depends in large part on the nature of donations it received in 2009 and whether those qualified as "contributions" under the statutory definition.
IV. DISCUSSION
At issue in this appeal is whether the Commission correctly determined that NOM's activities in 2009 resulted in "contributions" triggering certain registration and reporting obligatlons as rcguired by Maine law. The Court has considered each of NOM's arguments below.
A The Commission's Detennination Was .. Consistent With Both Constitutional and Statutory Princi Rles
I. Constitutional fngueness
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In tills case, Petitioner, for the third time, !lsserts that Maine's BQC law is void for
vagueness as applied to NOM. NOM contends that the Commission ignored key elements of the definition of "contribution." See 21-A M.R.S. § I 056-B(2-A)(A-C). Subsection B of said definition defines "contribution" as "[f]unds provided in response to a solicitation that would lend the contributor to believe that the funds would be used specifically for the purpose of initiating or in.th1enciug a campaign." ld. (emphasis added).
"A strong presumption of constitutionality attaches to all stntutes, whjch will be construed, where possible, to preserve their constitutionality." Maine Milk Producers, Inc. v. Comm'r of Agric., Food and Rural Res., 483 A.2d 1213, 1218 (Me. 1984)). "Any party attacking the constit\1tionality of a state st11t\1te thus carries a heavy b\mien of persuasion. In order to prevnil ... Petitioner[] must prove that no logical construction can be given to the words r
of ... [the] Act that will make it constitutional." Maine Assoc. q( Health Pkms v. State, 2006 WL 2959744, l'lt *2 (Me. Super Aug. 4, 2006) (intcrnfll citations omitted). Fmther, it is clear in
3 NOM questiouccl the validity of Moine's BQC low in boUt the United Stole District Court for the District ofMoiue nnd in the Firsl Circuit Court of Appeols. In boUl coses, the respective comts detennined thut the lnnguage of 21-A M.R.S. § l 056·B(2-A)(B) is neither vog\te nor substnntinUy overbroad. See Nat 'I Org. }or Marriage v. McKee, 765 F. Supp. 2d 38, 50 (D. Me. 20 ll) ajj'd sub nom. Nnl '/ Org. for Mm·riage, Inc. v. lvfcKee, 669 f. 3d 3<1 (lsi Cir. 2012).
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Maine that "the cardinal rule of statutory interpretation is to give effect to the intention of the Legislature." ,)'ee Cobb v. Bd. <!l Counseling Prof'!s Licensure, 2006 1\.tiE 48, ~ II, 896 A.2cl 271. The Court discerns legislative intent from the plain meaning of the statute and the context of the statutory scheme. /d. (citing Brent Leasing Co., Inc. v. State Tax Assessor, 200 l .i\IIE 11, ,!
6, 773 A.2d 457.) "All words in a statute He to be given meaning, and none arc to be treated llS surplusage if they can be reasonably construed." /d.
NOM argues that the Commission misinterpreted the statute as it failed to give meaning to the word <~specificnlly." NOM contends that the Commission's final determination expnnds the definition of contribution to include a wide range of donations received by organ.izalions.
(Br. of Pet. 15.) Under NOM's interpretation, a communication must spec(flcally refer to a Maine ballot question independent of other questions and communication referring to the State of Maine generally is i.nsufficient 4 !d.
The Respondent Commission, on the other hand, contends that the Commission's interpre1!1tion of the BQC law is consistent with the Legislature's intent nnd the ste~tute,s plAin language. Under NOM's interpretation of the word "specifically," a single communication discussing several topics in addition to fl Mal.ne ballot question would result in counting on.ly a portion of donntions received as "contributions." The Commission further contends tbat the plain menillng of the word "specifically" does not support NOM's narrow reading. 5 Rather, nccording to the standard dictionary definition, "specific" means "explicit, particular or definite;"
·IFor cxmnple, NOM nrgucs Lhat n Mny 15, 2009 emnil should not hnve been included in the Commission's tnlly townrds the $5,000 BQC threshold, ns it did not spccificnlly refer to n Mnine ballot question. The em nil stntcd in relevant pnrt: "If it is Tucs<lny this must be Moine . . . r know it's Mninc becnuse I snw n moose .... We will fight to be your voice in New Hmnpshire, Mnine (more on thnt uext week), Iown, New York, New Jersey, D.C., nud all ncross this grenl nnd God-blessed conutry of oms." (R 2100.) 5 The Commission nlleges that NOM interprets the word "specificnliy" to mcnn "exclusively." {Br of Resp. I R.)
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"relating to a specified or particular thing." Collins English Dictionmy - Complete & Unabridged ( l 0111 Ed. 2009); (Resp. Br. at 18.)
The Court's task when evaluating a due process vagueness challenge to a stntutc affecting First Amendment freedoms is "to ensure that persons of ordinary intelligence have 'fair warning'
of what [the] law prohibits, [that the law] providc[s) explicit standnrds for those who apply [it, and that the taw] avoid[s] chilling the exercise of First Amendment rights." Grayned v. City of Roc/fjord, 408 U.S. 104, 108-09 (1972) (intemal quotation mark omitted)); Nat'! Org. jo1· Marriage, Inc. v. McKee, 669 FJd 34, 43~44 (1st Cir. 2012). The test is whether the statute "prohibits ... an act in tenus so uncertain that persons of average intelligence would have no choice but to guess at its mcnning Rnd modes of application." United States v. Counc;Jman, 418 F.3d 67,84 (1st Cir. 2005) (en bane) (internal quotation marks omitted)
In this case, NOM distributed emnils between May and September 2009 referencing the MHine referendum effort to fight same-sex mnrriage. While these emails also attempted to solicit support for other referendum measures in other states, the court f1 nds the Commission's detennination w11s based on substantial evidence in the record. Each of the subject email communications contnined a reference to NOM's need for support in Maine. 6 In determining whether the emails should count towards the BQC threshold, the Commission, like the First Circuit, applied a rensonnble person test. Under said test "whether a communication is covered depends on the objectively reHsonable meaning of the language of the solicitation; hence, the only relevant hearer is the hypothcticnl 'reasonable person."' Nat'! Org. }or Marriage, Inc. v. McKee, 669 F.3d at 47. The Commission determined that based on the language of the cotTespondence, a reHsonable contributor would believe that donHtions made in response would
6 Said cmnils mentionod NOM's efforts in Mninc nnd sought to eucourngc supporters to donate. While some em nils directed supporters to SMM 's website, 11 prominent red "denote bull on' offered to lend supporters directly to NOM's nmdrnisi.ng pngc. (R. 26.)
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be used specificCilly for the purpose of influencing the Jv1!1ine referendum cnmpaign. 7 (R. 34.)
The Commission found that the revenue generated by the subject emails was $5,479, which exceeded the $5,000 thresbold requiring ballot question committee registration. !d.
NOM's argument that correspondence must exclusively refe1· ton Maine ballot measure to trigger BQC registration requirements is unpersuasive. NOM's interpretation nms contrary to the LegislatlJre's intent and to Maine's interest in disseminating information about political funding to the electorate. See Nat'{ Org. .for JV!arriage, Inc. v. McKee, 669 F. 3d at 40. Under NOM's narrow interpretation, certain contributors may remain <Ulonymous so long as the corr-espondence soliciting donations was broad enough to include other referendum measures and issues.
The Court finds that the word "specitlcally" in 21-A M.R.S. § 1056-B(2-A)(B) is not ambiguous or vague on its face or as applied to NOM. "The mere fact that the Legislatt1re has not spoken 'in precise and pellucid language, failure to meet this Olympian standard' docs not render [the statl.Jte) void for vagueness." i\lfalne Assoc. of Health Plans v. State, 2006 WL 2959744, at *2 (Me. Super. Aug. 4, 2006) (citing i\lfaine Milk Producers, 483 A.2d 121J, 1221 (Me. 1984)). Notwithstanding this conclusion, the Court finds that even if the stahlte were ambiguous, the Commission's interpretation is reasonable. 8 Arsenau/1 v. Sec'y ofSWte, 2006 .NlE t ll, ~ 11, 905 A.2d 285, 288 (noting "when a statute is ambiguous [the court) defer[s} to tile
7 As mentioned nbovc, NOM chnllenges the Commission's finding ns to the Mny 15, 2009, emnil ns NOM did not speciftcnlly reference the Mninc cnmpnigu. However, the Court finds thnt the Commission's detenninntion wns rensonnble nnd bnsed on substnntinl evidence in the record. 8 Been usc the Comt fmds thnt the Commission's interpretation of the stntute wns rensonable, the Petitioner's argument thnt the Commission exceeded ils stotutory nutllority by regulntiug conduct not contcmploted by the plnin lnugunge of Lhe stntute is without merit.
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interpretation of the agency charged with its administration, it' the ·agency's interpretation is reasonable"). 9
2. !lias
The Maine Administrative Procedure Act requires that the C01iunission's proceedings be
conducted impartially. Fox Island.'> Wind Neighbors v. Me. Dep 't ofEnvt'l Prot., 2014 Me.
Super. LEXIS 30 (Me. Super. Ct., Mar. 10, 2014). In Maine, there is a presumption that the Commission acted in good faith. !d. at 31; see also Friends of Maine's i'vfountains v. Bd. qf Ei1vtl. Prot., 2013 !"viE 25, ~ 23, 61 A.3d 689. However, NOM contends that specific decisions by the Commission demonstrate bins against NOM sufficient to rebut this presumption and reverse the Commission's detennination. (Br. of Pet. 7.) For the reasons set forth below, the Court disagrees.
i. T11e Commission's Decision to Investigate Pursuant to 21-A M.R.S. § 1003(2), a person may apply to the Commission to investigate whether an organization hns violated campaign finance law. Under tltis provision, the Commission "shall review the application and shall mnke the investigation if the reasons stated for the request show sufficient grounds for believing that a violation may have occurred." /d. NOM contends that the Commission had insufficient facts to spark an investigation against NOM. For example, NOM argues that the Commission's decision to investigate was based · solely on a "bare-bones" statement from one of NOM's political enemies. (Br. of Pet. 8.) The original complnint contained no evidence that NOM had done anything other than make contributions to a PAC.
9 Bccnuse the Court reoches the merits of NOM's arguments the Court does uot oddrcss the Commissiou' s orgumeuts coucerning l'esjudic(l[(l or collotorol estoppel.
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The Commission contends that in August of 2009, Fred Knrger, an individwll from Califomia, contacted the Commission urging it to investigate whether NOM, SI'vfivf, and other similar organizations were concealing the sources of funds contributed to S:N1iV1 for the campaign. (Br. of Resp. 5); (R. 2046). On October I, 2009, the Commission met to discuss the nllegations. At the time the Commjssion met, StvLv! had reported receiving $250,000 from NOM. (R. 2064.) Based in part on Mr. Karger's statements, as well ns statements from other individuals, a majority of the Commissioners (3-2) concluded that the investigation was warranted. Commissioner McKee noted that in the past, when the Commission has had to determine whether there were sufficient grounds for an investigation, most Commission members approach the question using a probable cause standard. In other words, the Commissioners ask themselves whether the information thnt has been provided by both sides left them with more questions than nnswers. Very large amounts of mooey were being put into the cmnpaign in Maine nnd the questions regarding NOM's activities needed further investigation. (R. 2053.)
The Petitioner contends that statements made by ce1tain Commissioners demonstrate n showing of prejudgment as the Commissioners simply wanted to make a cnse for regulating NOM's conduct, rather than proceeding impnrtially. For example, one Commissioner noted that NOM's actions were common practice in Maine. It was also noted that Maine statutes may prove insufficient to cover the activity. Yet the Commission still voted to investigate NOM.
Notwithstanding comments made by the Commissioners during deliberations, the Court finds that the Petitioner has failed to provide evidence sufficient to overcome a pres\lmption thnt
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the fact-finders, as state administrators, acted· in good fnitb so as to demonstrate that the Commission was bit~s in its determination to investigate NOM. 10 ii. Selective Prosecution · Selective prosecution occurs when an agency prosecutes one group and not another. To prevail on a claim for selective enforcement or prosecution, NOM must prove that (1) it was selectively treated when compared with similarly situated entities; and (2) tbat such selective treatment was based on impermissible considerations such as race, religion, intent to inhibit or punish the exercise of coostitutiounl rights, or on malicious or bad faith intent to injure that person. E. Prm:v !ron & ivfetal Co., Inc. v. City of Portkmd, 2008 !viE 10, ~ 30, 941 A.2d 457 (citing Yerardi's Moody St. Rest. & Lounge, lnc. 11. Bd. oj'Selectmen, 932 F.2d 89, 92 (1st Cir. 1991 )). "Proving such discriminatory intent is 'an onerous burden."' Id. (citing B & B Coastal Enters. Inc. v. Demers, 276 F.Supp.2d 155, 171 (D. Me. 2003)). Differential treatment alone is not enough to prove discriminatory intent. Yerardi's i\4oody St. Rest. & Lounge, Inc., 932 F.2d ut 92. "[U)nrcnsonnble inferences based on conject11re or speculation" need not be accepted. !d. (quotation marks omitted).
NOM contends that the Commission committed selective prosecution by investigating NOM and groups Sllpporting Question l, but refusing to investigate groups opposing the referendum even when the Commission was presented witb similar evidence regarding those
10 NOM contends thnt the Commission's prejudice ngninst NOM occurred even outside of the invcstigntiou. For example, inn 2012 Commission meeting, the Commission brought up "past violntions" by NOM when discussing the reduction of o lote-fcc penalty involving o PAC fonnnlly nffilinled with NOM. NOM contends that this dinlogue wns lUiwnrranted os the investigntiou hod just begun. (Br. of Pet. 9.) NOM argues lhnl this is evidence thnt demoustrotc nt least some of the commissioners hnd prejudged NOM ond thot" the ultimate detenuinntion of the merits would move in predestined grooves." Fox Islands, 2014 Me. Super. LEXIS nt 32-33. However, os the Commission points out, ot the time the remorks obout "pnst violations" were mod~, both the District Court ond lhe First Circuit hod found that NOM hnd received contributions governed by § I056·B. The Court finds tho! the Commission did not prejudge NOiVlnnct that rnisi.ng the issue of post actions wns rensouuble under lhe circlwtstnnccs.
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groups thnt sparked the investigation against NOM. (Br. of Pet. 9.) NOM contends that the Commission's determination had a discriminatory ctJcct in that NOM was treated differently than other groups participating in the smne election. NOM contends that this violated both the Fifth and Foll!1eenth Amendments. State v. Dhuy, 2003 IvfE 75, ~ 21,825 A.2d 336.
The Court finds that NOM's evidence is insufficient to establish selective prosecution.
Its claim that the Commission did not target groups opposing the referendum is insufficient to demonstrate that the Commission's motivntion for the investigation. and subsequent final determination was premised on impermissil>le considerations. NOM failed to offer evidence on the record that the Commission failed to investigate nny particular group. 11 As mentioned above, . "[d]ifferential treatment alone i.s not enough to prove discriminatory intent. Yerardi's i\tfoody St. Rest. & Lounge, Inc., 932 F.2d at 92. The Court does not accept NOM's inferences of selective prosecution as they nrc based on conjecture and speculation. !d.
iii. The Commission's Application ofLalewFiling Penalties was Reasonable Finally, NOM contends the fact that the Commission issued the maximum statutory penalty for late filing and refused to consider au automatic reduction, as is its normal practice, demonstrates bins and prejudice against NOM. (Br. of Pet. 12.) NOM further nrgues tl1at the Commission incorrectly calculated the penalty by including the full time of the investigation. ld.
11 On Mny 28, 2014, NOM requested thnt the Commission investignte whether Hmnnn Rights Cnmpnign, Inc. ("HRC") wos required to register nud file ns n BQC. NOM presented evidence of five emnils from 2009 tltnt mention the Maine referendum and four monthly newsletters Utnt solicited donntions or purehnses. Consistent witb the Commissions prior prnctices, the Commission reviewed the eruoils and newsletters to detennine if there wns probnble cnuse to spnrk nn investigation. The Commission detennined thnt two cmnils qunlified under the BQC stntute. However, HRC wns \lll!lble to provide the nmount genernted by snid emails becnuse il hnd switched fundrnising platforms over U1c yeors. The Comm.ission further determined thnt neither the Stnte of Mnine nor the Moine referendum were mentioned in the fundmising sections of the newsletters. As n result, the Cominission found thnt there wns nn insufficient bnsis to invcstignte HRC.
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The Court finds that the Commission's application of the late filing penalty to NOM was within its stantto1y authority and was reasonable under the circumstances. For example, the Commission explains that NOM was lute in filing six sepmate reports and for each report the dRily pennlty hit the $10,000 statutOJy maximum before the end of 2009. (Br. of Resp. 28.) NOM also failed to timely apply for a waiver to reduce said penalties. (R. 69.) While the Commission has reduced penalties for other organizations, NOM's argument that the Commission was bias or selectively targeted NOM is without merit. The record indicates that the Commission nct:unlly cut the statutory maximum penalty by hnlf for two of NOM's six violations. (R. 253-54); (Br. ofResp. 28.)
To succeed 011 a claim for bins, the bias "must be alleged with sufficient )larticulaiity to have had IHt effect on the fairness of the govemmental proceedings." Baker's Table, Inc. v. City l?/ Portland, 2000 ivlE 7, ,I 9, 743 A.2d 237. ln Hale v. Petit, the Law Court held that mere allegations of bias without specification of how a porty was ach.mlly prejudiced were insufficient. 438 A.2d 226, 234 (Me. 1981 ). In order to show bias, the petitioner "must present evidence sufficient to overcome a presumption that the fact-finders, as state administrators acted in good faith." Friends ofMaine 's i\dountains v. Bd. ofEnvtl Prol., 2013 'tvffi 25, ~ 23, 6 I A.3d 689.
Here, Petitioner's allegations of bias regarding the Commission's investigation, prosecution, deterntination, and penalty are not sufficient to overcome the presumption of good faith on the part of the Commission. Tbcrc is no evidence in the record or presented by the Petitioner of any specific instance of partiality or prejudgment on the part of the Commission or the Commissioners. Rather, NOM simply alludes to circumstance where the Commission found differently when applying the BQC statute to other organizations. In each instance presented by NOM, the Commis$ion conducted a reasoned review of the case nt , haud nnd made a
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determination or decision based on the record evidence before them. This evidence presented by NOM does not demonstrate bias or compel !'I contrary result than that reached by the Commission.
B. Error of Law NOM argues that the Commission considered irrelevant and impermissible factors in malcing their finnl determinations. The Court analyzes each below.
1. The Commission considered the involvemenl o[individuals in both the operation o[ NOAt/ and Slvllvl as relevcmtlo whether NOi\11 swpassed the BQC registmtion thrasho/d
NOM argues that the Conunission gave weight to the fact that Brian Brown served as both the executive director of NOi\ti as well as one of the decision makers of Si\tllvl. NOM contends that this is an erroneous reading of Maine law, as the definition of "contribution" does not contemplate S\Jch factors. (Br. ofPet. 13.) The Commission argues that Brian Brown's dual role is relevant notwithstanding the fact that nothing in Maine's C!'lmpaign finance law prohibits an executive from wearing both hats during a campaign. (Br. of Pet. 13.) The Commission contends Mr. Brown's involvement in both organizations is relevant because he was on both sides of the subject transactions. Brown could designate donated funds for the pmvose of the Maine C!Unpaign without having to put anything in writing;
While the statute is silent on this issue, the First Circtlit noted that: '"in evai\U\ting any such donations, it is also significant that the relnlionsh.ip between NOM and SM1\11 w11s extremely close during the 2009 campaign ... Such objective information, along with the timing of the contributions relative to the election, should infonn 'the context of the contribution."' Nat 'I Org.
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for ivfarriage v. McKee, 669 F.3d at 49. Thus, it was not error of law for the Commission to consider the relationship of the actors involved in this case. 12
2. 111e Commission concluded that /imds rec:ei)led 011 the same date thai NOi'vl iuade a contribution to a PAC were contributions under Maine law because NOlvi made a qollfribufion in the same amount
NOM contends that the Commission should not have considered the date that funds were transferred from NOM to SM:Nf as NOM was allowed to give donations to S!vllvl. NOM argues that such a consideration is outside oftlle scope of Maine's BQC law and to consider such would cattse confusion as to whether the act of mnking a contribution to a PAC will trigger BQC registration.
The Commission contends that NOM received unreported contributions from major donors that would have triggered the BQC reporting requirement. However, because the conversations with the major donors were made by telephone, and there is no record of the substance of the calls, the Commission relied on circumstantial evidence that the conversations referred to the Maine referendum. First, the Commission took notice of"tbank-you" letters from NOM's ftmdraising personnel to donors, which referred to the conversation with the donor Rnd made mention of the referendum campaign. Second, the Commission took notice that on multiple occasions, tbe same day that n major donor submitted funds to NOM, the same amount was transferred to SMM to support the Maine campaign. Thus, it was not error of law for the CommissionS to analyze the timing of contributions to SMM.
12 NOM olso orgues thnt it wns error of low for the Commission to consider NOM's overnU contributiou to SMM. The Court finds thnl the overnll nmount of NOM'~ contributions is relevont os it provides importnnt "context" ns contemplated by the federol courts.
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3. imP-ermissible Subjective Factors NOM contends that the Commission's analysis did not rely on the actunl words used in the solicitations or on NOM's own conduct or communication. Instead, the Commission inquired into whnt the pnrties understood. Therefore, the Commission used an impermissible subjective standard.
For example, NOM nrgues thnt the Conunission was presented with sworn testimony from Brian Brown that NOM did not covey to major donors thnt donations would be used in Maine. Rnther, donors were told they should give to SIVIM if they wanted to support the effort in Maine. (Br. of Pet l7);(R. 22-27.) Thus, NOM could not predict that donations from Major donors would be considered for the purpose of inflllcncing a Maine ballot question. In other words, contrary to the Commission's findings, the fact that n particular donor may have known subjectively that NOM made contributions to SiVfi\11, the donation cannot be considered a contribution. LJ The Commission contends that in reviewing NOM's correspondence with its supporters, it applied the objective test as applied by the First Circuit. As such the Commission analyzed what n reasonable contributor would conclude from NOM's communications. The Court finds that this application is consistent with the federal courts nnd is based on pennissible objective factors that inform the context of the contribution.
13 For exnmplc, Donor tl 2 received n "tbmlk-you" uote from Brinn Browu llighlightiug NOM's plnnned nctivilies in support of the Mniue referendum. The letter ntso notes "ns you know from your discussions with [NOM fundrnising cousultnnt] Steve Linder, NO!vl hos nlrcndy contributed over $250,000.00 in the effort to protect mnrriogc in Mniuc." (R.. 23.) While the Commissiou was not privy to the substoucc of the nctunl phone cnll soliciting the funds, the Commission gove weight to the fact that the check lor $50,000 wns deposited in NOM's bnuk nccount on the some dny wos trnnsferred to SMM.
17
4. 1he Commission (ound that all donations received in response to NOlvl communications that menttoned a Maine ballot question are "contributions" under 21-A ivl.R.S. § 1056-
8{2-AJ
NOM contends that only a pro-rated portion of donations received in response to NOM's multi-jurisdi.ctional commlmications should have been included as "contributions." By accepti11g all donations as contributions, the Commission employed a broad application of the BQC statute that was not contemplated by the Legislature. Such an expnnsive application of the statute was not before the federal cou;·ts when they upheld the BQC statute in pri01· as applied challenges. 1"
NOM argues that at the very least, any funds received in respons·e to said communicntions should have been pro-rated by the Commission so that the amount considered "contributions'' under Maine law matched the proportion of the commun..icntion discussing a Maine ballot question. Fail~1re to do so results in the statute being unconstitutionally overbroad. NOM contends that the plain menning of the stntute regulates only funds received for the purpose of influencing a specific ballot qucstion. 15
I-~ NOM cites Emily~~ List v. Fed. E/ecllon Comm'n, for this nssertion. 581 F.3d 1, 18 (D.C. Cir. 2009).
However, Ute Court finds Emily's List disting1tishnble. In thnt cnse, the Federnl Election Commission Limited the nmotllll non-profits could rnisc nnd spcud in support of o cnmpnign. As n result, certnin non- profits were required to !)ny n lnrgc percentnge of clection-relnted activities out of their "hard-money'' accounts. ld. nt 4. However, unlike Emily's List, the Moine stnhtte is closely drnwn to sen•e n cogu.iznblc interest of cmnpaign finance trnnspnreucy by requiring thnt eutitics register nnd report contribution over $5,000. The Mnine stnhlte i.u no wny limits nuon-profits nbilily to solicit funds or conmmuicntc. with the 1mblic. · s Both the District Court nnd the First Circuit refused to nccept NOM's nrgument thnt the nbsence of nn express statement cnnnnrking funds overcomes the BQC reporting requirements. The District Co11rt found that: "[pjresumnbly the statute's ctmfiers were concerned thnt those who solicit contributions might fiud devious wnys to nvoid co"ernge by keeping the tnugunge of both the solicitnlion oud the donntion clenn of nny suggestion of eormnrk.iug, even though everyone knew whnt wos going on. Nm 'I Org. for i'vlnrrlage v. McKee, 765 F. Sttpp. 2d 38, 51 (D. Me. 20 I I) ajf'd sub 110111. Nat'! Org. for i'vfan1age, l11c. v. lvlcKec, 669 F.3d 3•1 (1st Cir. 2012). The First Circuit noted thnt requiring express eonnnrking "would ollow entities to eosil>' evnde disclosure requirements by guiding the content of donors' messnges, defentlng the State's compelling interest in in forming voters." 669 F.3d 47 u. 13. Tlms, in occordonae with the federnl court decisions, the Court fmds thnt the Commission did not err os n molter of lnw or abuse its discretion in refusing to require express enrmorking of funds before npplying the BQC statute.
18
The Court refuses to entertain this argument. The District concluded that the stat\Jte "makes no mention of pro rating" and "the Commission hns not by regulation or form. created a pro rating regime." Nat 'I Org. For Marriage v. McKee, 666 F. Supp. 2d 193, 212 (D. Me. 2009).
Rather, the District Court found that:
The clenr language of the statute requires reporting the entire amount, even though some of that contribution might ultim!ltely be devoted to other states. The language is nei thcr vngue or substantially overbroad. One might argue that including the entire amount given in response to a multi-purpose solicitation is excessive, but that approach might also be defended as a legitimllte tool to corral those who seek to escape the statute by clever wording in their solicitations.
!d. Thus, in accordance with the federal couJis, the Court does not find Petitioner's argument concerning pro-ration of multi-purpose nnd multi-jurisdictionnl correspondence pcrsunsive.
Aside from arguing that the failure to pro-n1te results in the statute being overbroad ns applied to
16
the petitioner, which was expressly rejected by the District Court nnd by the First Circuit, the
Petitioner has failed to identify any constitutional defect in considering the entire amount of such contribution as attributable to Maine.
D. The Commission's Detenni11ation is SumJOrted by Substantial Evidence on the Record The Court finds that the Petitioner has failed to meet its burden of establish.i.ug that no competent evidence supports the Commission's decision or that the record compels a contrmy conclusion. Bischoff v. Maine State Ret. Sys., 661 A.2d 167, 170 (Me. 1995). The
16 Judge Lipez noted:
Unsurprisingly, appellants offer no support for the contcution that the State may regulate only explicitly earmarked fuuds. Such a limitation would allow entities to easily evade disclosure requirements by guiding the content of donors' messnges, defeating the Stnte's compelling interest in informing voters. We reject11ny such nrgument out of hand.
Na1 'I Org. jor lvfnrriage. Inc. v. i'vfcKee, 669 F.3d nt 49 (interunl citntious omitted).
19
Commission's determination was based on substantial evidence in the record and was not clouded by bias or error of law.
V. CONCLUSION
Based on the foregoing, Petitioner's Appeill pursuant to M.R. Civ. P. 80C is DENIED.
This Order may be noted on the docket by reference pursuant to Rule 79(a) of the Maine Rules ofCivil Procedure.
DATE LJito / ;{" ~~-~-
M. iVIICHAELA l'YIURPHY, JUS ~ BUSINESS AND CONSUNillR COURT
Entered on the Docket: ~h3~~ Co pie'> sP.nf viil Mail .. __E!ectroni~~ly__.!-(
The National Organization for Marriage v. Maine Commission on Governmental Ethical and Election Practices
BCD-AP-2014-02
The National Organization for Marriage Plaintiff
Counsel: Stephen Whiting, Esq.
75 Pearl Street, Suite 207 Portland, ME 04101
Maine Commission on Governmental Ethical and Election Practices
Defendant
Counsel: Phyllis Gardner, AAG 6 State House Station
Augusta, ME 04333