Vote Choice, Inc. v. Di Stefano

814 F. Supp. 195, 1993 U.S. Dist. LEXIS 768, 1993 WL 15229
CourtDistrict Court, D. Rhode Island
DecidedJanuary 12, 1993
DocketCiv. A. 92-0451-P
StatusPublished
Cited by10 cases

This text of 814 F. Supp. 195 (Vote Choice, Inc. v. Di Stefano) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vote Choice, Inc. v. Di Stefano, 814 F. Supp. 195, 1993 U.S. Dist. LEXIS 768, 1993 WL 15229 (D.R.I. 1993).

Opinion

MEMORANDUM AND OPINION

PETTINE, Senior District Judge.

The plaintiffs in this case present a constitutional challenge to several «provisions of Rhode Island’s recently amended campaign finance law. The challenged provisions attempt to regulate and/or prohibit certain contributions and expenditures with respect to corporations, political action committees (“PACs”), and publicly-financed candidates. Specifically, plaintiffs challenge: R.I.G.L. *197 § 17-25-10.1(j), a provision banning independent corporate expenditures to influence a ballot question; R.I.G.L. § 17 — 25—10(a)(3), a provision allegedly requiring corporations to establish PACs for the purpose of making contributions and expenditures to influence a ballot question; R.I.G.L. § 17 — 25—15(c)(1), a provision requiring public disclosure of all contributions to Rhode Island PACs; and R.I.G.L. § 17-26-30, a provision of Rhode Island’s public financing scheme that grants free television advertising and a higher aggregate contribution limit to publicly funded candidates. 1

Having received all papers from the parties, including amici 2 , I now consider the constitutionality of each of these provisions under the First and Fourteenth Amendments. For the reasons stated below, I find that:

(I) R.I.G.L. § 17 — 25—10.1(j), to the extent that it prohibits corporations from making independent expenditures to influence the outcome of a ballot question, violates plaintiffs’ rights under the First and Fourteenth Amendments;

(II) R.I.G.L. § 17 — 25—10(a)(3) does not require corporations, profit or non-profit, to establish PACs for the purpose of making contributions and expenditures to influence the outcome of a ballot question, and, therefore, does not violate plaintiffs’ rights under the First and Fourteenth Amendments;

(III) R.I.G.L. § 17-25-15(c)(l)’s PAC disclosure requirement violates plaintiffs’ rights under the First and Fourteenth Amendments;

(IV) R.I.G.L. § 17-25-30’s incentive provisions for publicly funded candidates do not violate plaintiffs’ First or Fourteenth Amendment rights; and

(V)R.I.G.L. §§ 17-25-30’s free television advertising provisions are consistent with, and not preempted by, § 315 of the Communications Act, 47 U.S.C. § 315.

I will address each of these provisions in turn.

I. The Ban on Corporate Contributions and Expenditures — § 17-25-10. l(j)

R.I.G.L. § 17 — 25—10.1(j) provides:

No entity other than an individual, a political action committee which is duly registered and qualified pursuant to the terms of this chapter, political party committee authorized by title 17 of the general laws, or an authorized committee of an elected official or candidate established pursuant to this chapter shall make any contribution to or any expenditure on behalf of or in opposition to any candidate, ballot question, political action committee or political party.

On its face, this provision appears to prohibit corporations from engaging in any political activity, whether through direct contributions to any candidate, PAC or political party, or through independent expenditures on behalf of or in opposition to any candidate, ballot question, PAC or political party. Plaintiffs American Civil Liberties Union, Inc. (“ACLU”) and Hasbro, Inc. (“Hasbro”) challenge that aspect of § 17-25-10.1(]') that prohibits independent corporate expenditures to influence ballot questions.

In an earlier Memorandum and Order of this Court dated October 23, 1992, relying directly upon First National Bank of Boston v. Bellotti, 435 U.S. 765, 98 S.Ct. 1407, 55 L.Ed.2d 707 (1978), I permanently enjoined enforcement of § 17 — 25—10.1(j) “to the extent it prohibits corporations from making any independent contributions and expenditures *198 with respect to ballot questions.” In its Post-Hearing Memorandum, the Board suggests a clarification of the permanent injunction Order.

The Board argues persuasively that the instant challenge extends only to § 17-25-10.1(j)’s ban on independent corporate expenditures in connection with ballot questions. Both the Amended Complaint and the evidence presented at the preliminary injunction hearing indicate that plaintiffs ACLU and Hasbro wished to expend their own funds (i.e., make an independent expenditure) to defeat a ballot question in the November 1992 general election. Plaintiffs made no allegation and presented no evidence, however, that Hasbro or the ACLU desired to contribute funds (as opposed to making an independent expenditure) directly to any other entity, such as a PAC, formed for the purpose of defeating that ballot question. Accordingly, there are no challenges to and, therefore, no issues involving corporate contributions to entities such as PACs with respect to ballot questions, nor any challenges to the ban on corporate contributions and independent expenditures with respect to candidates or political parties.

Because plaintiffs have raised, and offered documentary evidence in support of, this narrow challenge to § 17 — 25—10.1(j), and for the reasons I have already stated in my October 23, 1992 Memorandum and Order, I hereby amend and limit my permanent injunction to enjoin the Board from enforcing only that portion of § 17 — 25—10.1(j) that prohibits corporations from making any independent expenditures with respect to ballot questions. This ruling is consistent with the teachings of BeUotti, as well as with the allegations raised, and facts adduced, by plaintiffs at the preliminary injunction hearing. 3

II. The Corporate PAC Requirement— § 17-25-10(a)(3)

R.I.G.L. § 17-25-10(a)(3) addresses the lawful methods of contributing to influence a ballot question. It provides, in pertinent part:

(a) No contribution shall be made or received, and no expenditures shall be directly made or incurred, ... to advocate the approval or rejection of any question in any election except through:
(3) The duly appointed campaign treasurer or deputy campaign treasurer of a political action committee.

Plaintiffs ACLU and Hasbro allege that this provision requires corporations to establish PACs in order to make contributions or expenditures to influence a ballot question. So interpreted, plaintiffs argue, this PAC requirement impermissibly burdens their free speech rights under the First and Fourteenth Amendments. See Federal Election Com. v. Massachusetts Citizens far Life, Inc., 479 U.S. 238, 107 S.Ct.

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Vote Choice v. Di Stefano
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Cite This Page — Counsel Stack

Bluebook (online)
814 F. Supp. 195, 1993 U.S. Dist. LEXIS 768, 1993 WL 15229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vote-choice-inc-v-di-stefano-rid-1993.