San Franciscans Supporting Prop B v. Chiu

CourtDistrict Court, N.D. California
DecidedJune 1, 2022
Docket3:22-cv-02785
StatusUnknown

This text of San Franciscans Supporting Prop B v. Chiu (San Franciscans Supporting Prop B v. Chiu) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
San Franciscans Supporting Prop B v. Chiu, (N.D. Cal. 2022).

Opinion

1 2 3 4 5 IN THE UNITED STATES DISTRICT COURT 6 FOR THE NORTHERN DISTRICT OF CALIFORNIA 7 8 SAN FRANCISCANS SUPPORTING Case No. 22-cv-02785-CRB PROP B, et al., 9

Plaintiffs, ORDER DENYING MOTION FOR 10 TEMPORARY RESTRAINING v. ORDER AND PRELIMINARY 11 INJUNCTION DAVID CHIU, et al., 12 Defendants. 13 On June 7, 2022, San Francisco will hold its second of three elections this year. In 14 addition to choosing candidates for fourteen offices, residents will vote on eight local 15 ballot measures on issues ranging from the solicitation of behested payments to the design 16 of the Refuse Rate Board. See Future Elections, https://sfelections.sfgov.org/future- 17 elections (accessed June 1, 2022); Fed. R. Evid. 201(b). Among these ballot measures is 18 Proposition B (“Prop B”), which would modify the City Charter to change the composition 19 and appointment structure of the City’s Building Inspection Commission. David Decl. 20 (dkt. 9-1) ¶¶ 3, 4. Plaintiffs San Franciscans Supporting Prop B (“SPB”), Edwin M. Lee 21 Asian Pacific Democratic Club PAC (“Ed Lee Dems”), and Todd David support the 22 passage of Prop B. Ed Lee Dems has donated $5,000 to SPB. Cheng Decl. (dkt. 9-7) ¶ 3. 23 David is the founder and treasurer of SPB. David Decl. ¶ 2. 24 Under a law passed by nearly 77% of the voters, committees in San Francisco must 25 include on their advertisements a disclaimer disclosing their secondary contributors. SF 26 Code § 1.161(a)(1), (5). That is, SPB must disclose to voters not only that Ed Lee Dems is 27 one of its major contributors, but also the top two recent contributors to Ed Lee Dems. 1 On May 11, Plaintiffs sued City Attorney David Chiu, District Attorney Chesa 2 Boudin, San Francisco Ethics Commission, and the City of San Francisco, contending that 3 the secondary-contributor disclaimer requirement burdens their right to associate and chills 4 political donations in violation of the First Amendment. Compl. (dkt. 1). They moved for 5 a temporary restraining order and preliminary injunction. TRO Mot. (dkt. 9). The Court 6 rejected a nearly identical argument two years ago. See Yes on Prop B v. City & Cnty. of 7 San Francisco, 440 F. Supp. 3d 1049, 1057–62 (N.D. Cal.), appeal dismissed as moot, 826 8 F. App’x 648 (9th Cir. 2020). Because intervening law has not changed and the facts are 9 not meaningfully distinct, the Court DENIES Plaintiffs’ motion. 10 I. BACKGROUND 11 A. Statutory Scheme 12 Under California law, any person or group of people that raises at least $2,000 or 13 spends at least $1,000 for political purposes in a given year must register as a committee. 14 Cal. Gov’t Code § 82013. Political advertising by committees is subject to a plethora of 15 disclaimer and disclosure requirements under California and San Francisco law. See, e.g. 16 Cal. Gov’t Code §§ 84200, 84200.5, 84202.3, 84203, 84502; see also, e.g., SF Code 17 § 1.161. 18 As relevant here, San Francisco voters enacted a new disclaimer requirement when 19 they approved Proposition F in 2019. Prop F passed with 76.89% of the vote. See RJN 20 Ex. B (dkt. 31-2) at 6; Fed. R. Evid. 201(b). Under Prop F, all ads paid for by “primarily 21 formed” independent expenditure and ballot measure committees must include a 22 disclaimer identifying the committee’s top three donors of $5,000 or more. SF Code 23 § 1.161(a)(1). If one of those contributors is itself a committee, the ad must also disclose 24 that committee’s top two donors of $5,000 or more in the last five months. Id. In all ads 25 other than audio ads, the names of both primary and secondary contributors must be 26 followed by the amount of money they contributed. Id. § 1.161(a)(5). On written ads, the 27 disclosure must be in 14-point font (rather than 12-point font, as was the case before 1 Proposition F). Id. § 1.161(a)(3). 2 B. This Case 3 In support of passing Prop B, SPB has raised $15,000—$5,000 each from three 4 different committees. David Decl. ¶ 6. On any ads produced by SPB, San Francisco law 5 requires it to include the following disclaimer:

6 Ad paid for by San Franciscans Supporting Prop. B 2022. Committee major funding from: 7 1. Concerned Parents Supporting the Recall of Collins, Lopez and Moliga ($5,000) - contributors include Neighbors for a 8 Better San Francisco Advocacy Committee ($468,800), Arthur Rock ($350,000). 9 2. BOMA SF Ballot Issues PAC ($5,000). 3. Edwin M. Lee Asian Pacific Democratic Club PAC 10 sponsored by Neighbors for a Better San Francisco Advocacy ($5,000) - contributors include Neighbors for a Better San 11 Francisco Advocacy Committee ($100,000), David Chiu for Assembly 2022 ($10,600). 12 Financial disclosures are available at sfethics.org. 13 See David Decl. Ex 4 (dkt. 9-5) (five by ten ad); see also David Decl. ¶ 12. 14 Plaintiffs argue that “the on-communication secondary donor disclosure 15 requirements . . . are unconstitutional and should be enjoined.” TRO Mot. (dkt. 9) at 3. 16 Their motion is an as-applied challenge. See Proposed Order (dkt. 11) (proposing that the 17 Court “preliminarily [enjoin] Defendants and their agents, officers, and representatives 18 from enforcing against Plaintiffs the on-communication disclosure requirements for 19 secondary donors at S.F. Code § 1.161(a)”). In support of their motion, Plaintiffs include: 20 • exhibits of their proposed ads with the disclaimers (dkts. 9-2 to 9-6) 21 • a declaration by David (founder and treasurer of SPB) (dkt. 9-1) 22 • a declaration by Jay Cheng (treasurer of Ed Lee Dems) (dkt. 9-7) 23 • a declaration by Nicole Derse (founder and principal of 50+1 Strategies, a 24 management and political consulting firm) (dkt. 9-8) 25 • a declaration by Andrew Sinn (chief financial and operations officer for 26 50+1 Strategies) (dkt. 9-9) 27 II. LEGAL STANDARD 1 upon a clear showing that the plaintiff is entitled to such relief. See Winter v. Natural Res. 2 Def. Council, Inc., 555 U.S. 7, 22 (2008). The party seeking a preliminary injunction must 3 establish: (1) a likelihood of success on the merits; (2) a likelihood of irreparable harm 4 absent preliminary relief; (3) that the balance of equities tips in the plaintiff’s favor; and 5 (4) that an injunction is in the public interest. See id. at 20. Alternatively, the moving 6 party must demonstrate that “serious questions going to the merits were raised and the 7 balance of hardships tips sharply in the plaintiff’s favor,” and that the other two Winter 8 elements are met. Alliance for Wild Rockies v. Cottrell, 632 F.3d 1127, 1134–35 (9th Cir. 9 2011). The “[l]ikelihood of success on the merits is the most important Winter factor.” 10 Disney Enters., Inc. v. VidAngel, Inc., 869 F.3d 848, 856 (9th Cir. 2017) (internal 11 quotation marks omitted). These same principles apply to a motion for a TRO. See 12 Martinez Franco v. Jennings, 456 F. Supp. 3d 1193, 1196–97 (N.D. Cal. 2020). 13 III. DISCUSSION 14 The Court already rejected Plaintiffs’ arguments in a prior case. The Court reaches 15 the same conclusion here because the law has not changed and Plaintiffs still have not 16 provided sufficient evidence in support of their challenge. 17 A. Likelihood to Succeed 18 1. The Prior Case 19 Before the March 3, 2020 election, the Court heard a nearly identical First 20 Amendment challenge to this law by Yes on Prop B, an independent expenditure 21 committee formed to support the Prop B in that election,1 and David himself. See Prop B, 22 440 F. Supp. 3d at 1049.

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Bluebook (online)
San Franciscans Supporting Prop B v. Chiu, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-franciscans-supporting-prop-b-v-chiu-cand-2022.