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Voters, file photo 2008. REUTERS Danny Moloshok

Court squashes state cap on PAC donations

12/29/2011 COMMENTS (0)

Dec 29 (Reuters) - Washington state cannot prohibit individuals from making large donations to certain political action committees in the weeks leading up to a general election, a federal appeals court ruled on Thursday.

The U.S. Court of Appeals for the 9th Circuit invalidated a Washington state law that prevented individuals from contributing more than $5,000 to PACs supporting ballot measures during the three weeks before a vote. At the same time, the court upheld two other Washington laws that require political action committees to disclose information on donors who give more than $25 and $100.

Family PAC, a conservative political committee formed to oppose Washington's domestic partnership law through a voter referendum, filed a lawsuit in 2009 to challenge the disclosure requirements and $5,000 contribution cap. The group argued that the laws were an unconstitutional restraint on its freedom of speech under the First Amendment. At trial, the committee presented evidence that, but for the limit, it would have received contributions during the referendum campaign of $60,000 and $20,000 from Focus on the Family, another lobbying group.

The state responded that most Washington counties use a vote-by-mail system, which requires sending out ballots 18 days before the election date. The $5,000 cap during the three weeks before the election was necessary to inform voters of big-money donors by the time ballots were mailed out, the state argued. But the district court and 9th Circuit disagreed.

The limit imposed a "significant burden" by restricting donations "during the critical three-week period before the election, when political committees may want to respond to developing events," Judge Raymond Fisher wrote for the three-judge panel. Voters who chose to cast their ballots by mail while the campaign was in full swing made a voluntary choice to forego relevant information that might later surface, he wrote.

Nancy Krier, a lawyer for the Washington State Public Disclosure Commission who argued on behalf of the state, was not immediately available for comment. Dan Sytman, a spokesman for the Washington Attorney General, said the office was reviewing the decision.

James Bopp, a lawyer for Family PAC, praised the decision for striking down the state's rare blackout period that limited ballot measure fundraising before an election.

While Family PAC prevailed in striking down the three-week contribution cap, the group lost its challenge to two other Washington laws requiring political committees to report the name and address of anyone who contributes more than $25, and the occupation and employer of donors who give more than $100.

Both the district court and 9th Circuit rejected Family PAC's claims that small donors would avoid donating to avoid the risk of harassment or retaliation.

"The requirements impose only modest burdens on First Amendment rights, while serving a governmental interest in an informed electorate that is of the utmost importance," the judge wrote. The court cited the Supreme Court's 2010 decision in Citizens United v. FEC for the principle that disclosure requirements may burden the ability to speak, but they do not limit campaign-related activities and do not prevent anyone from speaking.

Bopp, who is pursuing challenges against several states' disclosure requirements, said courts are using Citizens United to give "carte blanche to any law that can be characterized as disclosure." The First Circuit threw out Bopp's clients' challenges to disclosure requirements in Maine and Rhode Island in August.

The latest case is Family PAC v. McKenna, U.S. Court of Appeals for the 9th Circuit, No. 10-35832.

For Family PAC: James Bopp of Bopp, Coleson & Bostrom.

For the state defendants: Nancy Krier of the Washington State Public Disclosure Commission.

(Reporting by Terry Baynes)

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