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Common Sense Alliance v. Davidson

Supreme Court of Colorado
Mar 13, 2000
995 P.2d 748 (Colo. 2000)

Summary

holding that this court "must resist the temptation to change the statutory language, and . . . leave any repair to the General Assembly"

Summary of this case from Brown v. People

Opinion

No. 99SA76

March 13, 2000

Certification of Questions of Law From the United States District Court for the District of Colorado Pursuant to C.A.R. 21.1

CERTIFIED QUESTIONS ANSWERED

Isaacson, Rosenbaum, Woods Levy, P.C., Edward T. Ramey, Melissa K. Thompson, American Civil Liberties Union Foundation of Colorado, Mark Silverstein, Denver, Colorado, Attorneys for Plaintiff.

Ken Salazar, Attorney General, Barbara McDonnell, Chief Deputy Attorney General, Alan J. Gilbert, Solicitor General, Maurice G. Knaizer, Deputy Attorney General, State Services Section, Denver, Colorado, Attorneys for Defendants Secretary of State and Attorney General.

No appearance by or on behalf of defendants Mac Myers and John M. Ely.


Pursuant to C.A.R. 21.1, we agreed to answer several questions certified to us by the United States District Court for the District of Colorado. The questions arise out of a civil action currently pending in the United States District Court in which a political organization, Common Sense Alliance (CS Alliance), contests the application and interpretation of certain reporting provisions of the Fair Campaign Practices Act (the FCPA).

Central to the contested issues before the United States District Court is the question of whether CS Alliance is an "issue committee" under the terms of the FCPA. A group of individuals in Pitkin County originally formed CS Alliance in 1996 as a "political action committee" for political purposes such as supporting candidates, protecting constitutional principles, and curbing governmental powers. In 1997 and 1998, the group became active on a particular ballot issue by drafting and promoting an initiative. The FCPA defines "issue committee" as two or more persons who have associated themselves for the purpose of supporting or opposing a ballot initiative, and imposes reporting and disclosure requirements on issue committees. It also sets out criminal sanctions for failure to comply with those requirements.

The first certified question asks whether an organization formed for other purposes may later become an issue committee as defined by the FCPA. If an organization can evolve into an issue committee, the second question asks at what point in time the group becomes subject to the statute's requirements, and the third question asks which contributions must be disclosed.

We conclude that the statute is insufficiently clear to include CS Alliance within the reach of the issue committee definition. The statute contains no guidance as to when a committee formed for another purpose would be deemed to become an issue committee; when its contributors would become subject to the disclosure requirements; or even which of its contributors would need to be disclosed.

Were we to interpret the statute broadly, any political or special interest organization could become an issue committee through a decision of its leadership to support or oppose a ballot initiative without the assent or perhaps even the knowledge of its members. Such a decision would then trigger the reporting and disclosure requirements and would make public the names and financial contributions of the members of the organization. Because constitutional rights concerning freedom of association and freedom of speech are implicated, we decline to give the statute that broad reading and decline to provide judicial answers to the questions left unanswered in the statute. We, therefore, answer the first certified question in the negative. As a result, it is unnecessary for us to answer the second and third certified questions.

I. A.

Residents of Pitkin County, Colorado who were interested in influencing local government formed CS Alliance in May 1996. The group describes itself as "a loosely organized unincorporated association primarily of residents of the Roaring Fork Valley in central Colorado." At the time of its formation, CS Alliance's Mission Statement listed three goals: "protecting constitutional principles, curbing governmental powers, and improving participation in the electoral process." Its bylaws describe the group as a "political action committee," advancing causes consistent with its Mission Statement. Neither the Mission Statement nor the bylaws appear to make any reference to activities the group might undertake in supporting or opposing ballot issues or questions.

CS Alliance is managed by a seven-person executive council that guides CS Alliance in pursuing its objectives. There are no formal membership requirements, and anyone who appears at one of CS Alliance's periodic meetings has a voice and may participate in the determination of any action to be taken.

CS Alliance is generally inactive except at election time, when it engages in a variety of activities on a number of different public issues. Since its formation, the group has conducted public issue discussions and nonpartisan candidate forums, endorsed candidates for various local offices, and conducted voter registration drives during state elections. CS Alliance also published its position with respect to a number of issues, including eleven different ballot questions before the electorate.

At various times in its history, CS Alliance opposed amendments to Pitkin County's home rule charter that would have required petitions to be signed by registered voters instead of just eligible electors, increased the salaries of county commissioners, and established a $500 limitation on contributions to candidates or political committees. The group opposed ballot questions increasing property taxes and imposing a use tax to fund roads and widen Highway 82 between Aspen and Glenwood Springs. It also opposed zoning restrictions in rural areas.

Beginning in November 1996, CS Alliance turned its attention to local ballot issues regarding mass transportation. Pitkin County and the City of Aspen had placed a referred matter proposing the creation of a rail line between Glenwood Springs and Aspen on their local ballots. CS Alliance opposed light rail, supporting the creation of a bus lane between the two towns instead. CS Alliance advertised its position on the "Entrance to Aspen issue," drafted and published a proposed substitute local ballot initiative, and invited members of the community to attend a meeting to discuss the ballot issue.

Together, the various ballot issues or questions were commonly referred to as the "Entrance to Aspen issue."

The CS Alliance initiative would have required Pitkin County and the City of Aspen to obtain financing by a certain date for the proposed rail system between Aspen and Glenwood Springs. Failing that, the initiative would have required the local governments to refrain from further efforts to obtain financing for the project. Further, if Pitkin County and Aspen did not obtain financing for the light rail system, the two governments would have been required to transfer land to the state so that the state could widen State Highway 82, which runs between Glenwood Springs and Aspen. Thus, in effect, the initiative provided an alternate means of traveling between Glenwood Springs and Aspen by the addition of a bus lane instead of travel by light rail.

On July 20, 1998, CS Alliance submitted its proposed ballot issue to the Pitkin County Clerk and Recorder. CS Alliance's proposal ultimately became Ballot Question 100 on the November 1998 Pitkin County and City of Aspen ballots. On October 15, 1998, CS Alliance ran an advertisement in the Aspen Daily News in support of Pitkin County Ballot Question 100 and in opposition to the government-referred measures in support of light rail. CS Alliance's treasurer also sent an email to local residents soliciting funds for use in the ballot issue campaign. Four contributors to CS Alliance requested anonymity, in two cases out of "fear that their employment or civic service might be negatively affected if their contributions were known."

B.

CS Alliance's activities triggered an administrative complaint by defendant John M. Ely, the County Attorney for Pitkin County, Colorado, against CS Alliance for violations of the FCPA's reporting procedures. Ely transmitted his complaint to the Secretary of State, who referred the matter to the Colorado Division of Administrative Hearings. The Division set the matter for a hearing before an administrative law judge (the ALJ).

The ALJ took evidence, and on October 29, 1998, issued an "Agency Decision." The ALJ found that CS Alliance was not an issue committee before July 20, 1998, but that "[b]eginning by approximately July 20, 1998, . . . advocacy regarding the three ballot issues which were the subject [of] Mr. Ely's complaint became `the major or primary purpose' of Common Sense Alliance's activities." The ALJ noted that by July 20, 1998, CS Alliance was "accepting contributions and making expenditures almost exclusively to support or oppose this ballot question and the two related ballot questions." Because CS Alliance "became an issue committee," as defined by section 1-45-103(8), 1 C.R.S. (1999), the group should have registered and filed the disclosure statements required by section 1-45-108, 1 C.R.S. (1999). The ALJ therefore concluded that CS Alliance failed to comply with the registration and reporting requirements of the FCPA. The ALJ thus referred the matter to the Attorney General and local district attorney for appropriate enforcement action, pursuant to section 1-45-111(2)(a), 1 C.R.S. (1999).

The parties to this action stipulated that CS Alliance was not an issue committee before July 20, 1998, when CS Alliance submitted to the Pitkin County Clerk what later became Ballot Question 100.

That section reads, in relevant part, as follows:

Any person who believes that a violation of this article has occurred may file a written complaint with the secretary of state . . . . The secretary of state shall hold a hearing on the complaint before an administrative law judge . . . . If the administrative law judge determines that such violation has occurred, the secretary of state shall so notify the attorney general and appropriate district attorney who may institute appropriate legal action against the alleged offender.

§ 1-45-111(2)(a).

C.

The decision of the ALJ led to the case now pending before the United States District Court. CS Alliance brought an action against defendants Donetta Davidson, Kenneth Salazar, Mac Myers, and John M. Ely, seeking declaratory and injunctive relief under 42 U.S.C. § 1983 (1994). CS Alliance claims that the FCPA's registration and reporting requirements for issue committees violate the First and Fourteenth Amendments to the Constitution of the United States, both on their face and as applied to CS Alliance. See U.S. Const. amends. I, XIV. CS Alliance also seeks a preliminary and permanent injunction against the defendants, prohibiting them from taking any enforcement action against it under the FCPA.

CS Alliance originally named Victoria Buckley as a defendant. However, during the course of this litigation, Donetta Davidson has succeeded to the office formerly held by Buckley. Since Buckley was sued in her official capacity only, Donetta Davidson has been substituted as a party by force of law under our rules of appellate procedure. See C.A.R. 43(c)(1) ("When a public officer is a party to an appeal or other proceedings in the appellate court in [her] official capacity and during its pendency . . . ceases to hold office, the action does not abate and [her] successor is automatically substituted as a party.").

By his certification order dated January 28, 1999, Judge John L. Kane requested this court to exercise its original jurisdiction and answer three questions of law. See C.A.R. 21.1. In his order, Judge Kane stated that "[a]ll parties . . . acknowledge that the federal constitutional issues turn in the first instance upon the validity of the [ALJ's] statutory interpretation" of the FCPA. The order further noted that "no definitive interpretation of these statutory provisions has heretofore been made by the Courts of the State of Colorado." Noting that the statutory interpretive questions may be dispositive of the federal litigation and "in recognition of the guidance provided to [lower federal courts] by the Supreme Court of the United States in Arizonans for Official English v. Arizona, 117 S.Ct. 1055, 1072-75 (1997)," the federal court requested our intervention to answer the legal questions posed. By our order dated March 4, 1999, we accepted the following questions as framed by the United States District Court:

(1) Does an association which was formed and operated for purposes other than "accepting contributions or making expenditures to support or oppose any ballot issue or ballot question" become an "issue committee" as defined in C.R.S. § 1-45-103(8) if, at a future point in time, it engages in those activities with regard to a specific ballot issue or ballot question?

(2) If the answer to the preceding question is in the affirmative, at what point in time does such an association become an "issue committee?"

(3) If the answer to the first preceding question is in the affirmative, when and to what extent must such an association comply with the disclosure requirements contained within C.R.S. § 1-45-108? Specifically, must the association file a disclosure of the identities and amounts contributed by all of its donors, as well as a specification of all of its expenditures, whether or not those contributions and expenditures are related or unrelated to the ballot issue or ballot question involved? If not, what disclosures are required?

II.

The Fair Campaign Practices Act is a part of the important campaign finance reform movement. The FCPA itself was a citizen-initiated ballot question intended to avoid corruption and the appearance of corruption in political campaigns by limiting the influence of wealthy contributors and special interest groups. The FCPA imposes contribution limits and disclosure requirements on candidate committees, political committees, political parties, and issue committees. See §§ 1-45-101 to -118, 1 C.R.S. (1999). In this case, we address only the narrow issue of whether CS Alliance falls within the purview of the FCPA's reporting requirements for issue committees.

The people of Colorado adopted the FCPA in 1996 by a vote of 928,148 to 482,551. See § 1-45 ed. note (1), 1 C.R.S. (1999).

The United States District Court for the District of Colorado recently struck several portions of the FCPA as unconstitutional restraints on free speech and association. See Citizens for Responsible Gov't State Political Action Comm. v. Buckley, 60 F. Supp.2d 1066 (D.Colo. 1999). The court invalidated the statute's aggregate contribution limits to campaign committees and political committees. See id. at 1082-89. The court upheld, however, the statute's provisions limiting political committee contributions to candidate committees, limiting the uses of unexpended campaign contributions, and limiting contributions to and from political parties. See id. at 1090-98 (finding that statutory sections did not violate either the First Amendment or the Equal Protection Clause). This decision currently is on appeal to the Tenth Circuit Court of Appeals. But cf. Nixon v. Shrink Mo. Gov't PAC, No. 98-963, 2000 WL 48242 at *11-12 (U.S. January 24, 2000) (upholding state limits on campaign contributions as sufficiently tailored to the state's interests).

The FCPA defines an issue committee as: two or more persons who are elected, appointed, or chosen, or have associated themselves, for the purpose of accepting contributions and making expenditures to support or oppose any ballot issue or ballot question. "Issue committee" does not include political parties, political committees, or candidate committees as otherwise defined in this section.

§ 1-45-103(8) (emphasis added). Although issue committees are not subject to the contribution limits of the FCPA, they are subject to the reporting requirements. Issue committees must report to the appropriate officer "their contributions received, including the name and address of each person who has contributed twenty dollars or more; expenditures made; and obligations entered into by the committee or party." § 1-45-108(1), 1 C.R.S. (1999). Further, an issue committee must register with the appropriate officer before accepting or making any contributions. See § 1-45-108(3). Failure to comply with these requirements may constitute a class two misdemeanor criminal violation. See § 1-45-113(1), 1 C.R.S. (1999). In addition to other sanctions, the violator is liable for double the amount contributed or received in violation of the statute. See § 1-45-113(2), 1 C.R.S. (1999). If the Attorney General fails to sue the violator within ninety days after the complaint is filed, the complainant has a private right of action to do so. See § 1-45-111(2)(b), 1 C.R.S. (1999).

III.

The first certified question asks whether an organization, like CS Alliance, may become an issue committee under section 1-45-103(8) of the FCPA by accepting contributions or making expenditures to support or oppose a ballot issue, so that the organization is then subject to the Act's disclosure and reporting requirements.

CS Alliance argues that it is not an issue committee because the statute on its face includes only committees formed for the purpose of accepting contributions or spending money to support or oppose a ballot issue. The State responds that an association originally formed for another purpose may evolve into an issue committee when it begins activity on a ballot issue, and therefore, CS Alliance violated the FCPA.

A.

Answering the first certified question requires us to construe the statute defining "issue committee." In construing the statute, "we look first to the statutory language, giving words and phrases their plain and ordinary meaning." Colorado Common Cause v. Meyer, 758 P.2d 153, 160 (Colo. 1988); see also Bolt v. Arapahoe County Sch. Dist. No. Six, 898 P.2d 525, 532 (Colo. 1995) (holding that to determine the will of the people in adopting an initiative, terms should be given their plain meaning).

As a threshold matter, we note that the FCPA governs those "who are elected, appointed, or chosen, or have associated themselves, for the purpose of" opposing a ballot issue. See § 1-45-103(8). The plain language of the statute appears to limit its application to those associations created and intended for the purpose of participating in ballot initiative campaigns. Hence, an initial reading of the statute would lead to the conclusion that because CS Alliance was formed for another purpose, it cannot evolve into an issue committee.

The definition of "associate" buttresses this reading. To associate "[s]ignifies confederacy or union for a particular purpose." Black's Law Dictionary 121 (6th ed. 1990).

We are left with two alternatives: follow the plain language of the FCPA, or read into the statute language such as "formedor operating for the primary purpose of supporting or opposing a ballot initiative." However, we must proceed with care in adding language to a statute. See e.g., Schlessinger v. Schlessinger, 796 P.2d 1385, 1389 (Colo. 1990) (holding that the court should be careful to avoid judicial legislation by adding to a statute that which the legislature did not deem proper); In re Great Outdoors Colorado Trust Fund, 913 P.2d 533, 540 (Colo. 1996) (stating that when courts construe an initiative, "any intent of the proponents that is not adequately expressed in the language of the measure will not govern the court's construction of the amendment."); Citizens for Responsible Gov't State Political Action Comm. v. Buckley, 60 F. Supp.2d 1066, 1082 (D.Colo. 1999) ("The court is `not free to fine tune the limits established' by the FCPA.")

Indeed, we conclude that there are a number of reasons why we must decline to read such additional language into the statute.

B.

The first reason is that both the language of other sections of the FCPA and the history of the development of the law in this area support a narrow construction. For example, the definitions of both issue committee and political committee expressly exclude the other. See §§ 1-45-103(8), -103(10)(a), 1 C.R.S. (1999). These exclusions suggest that a single entity may carry only one classification, and pursue only one purpose. A committee formed to support or oppose an initiative is distinct from a committee formed to make contributions to a political candidate. If we were to find that an association may have many purposes under the statute, then the exclusionary language segregating an issue committee from a political committee makes no sense. The exclusionary language of the definitions also indicates that the statute defines issue committee narrowly and should encompass only those activities listed by the Act.

Additionally, if were we to hold that an organization may have multiple purposes, we would effectively create a legal fiction in which groups continually dissolve and reform each time the members decide to pursue a new task. Such an understanding is fraught with problems of identification, notice, and the absence of common understanding among the members of the organization.

More persuasively, the statutory language governing issue committees has evolved in a way that suggests a narrow reading. In 1988, this court found language that is conspicuously absent from the current FCPA to be dispositive on the question of how a group should be classified under Colorado's Campaign Reform Act of 1974 (the CCRA), the predecessor to the FCPA. In Colorado Common Cause, this court resolved the question of whether a for-profit corporation could become a "political committee" under the aegis of the CCRA's reporting and disclosure requirements.See 758 P.2d at 164. The definition of political committee on which the court focused read:

"Political committee" also includes a separate political education or political action fund or committee which is associated with an organization or association formed principally for some other purpose and includes an organization or association formed principally for some other purpose insofar as it makes contributions or contributions in kind or expenditures.

Id. at 160 (quoting § 1-45-103(10), 1B C.R.S. (1980)). The court concluded that because the language of the statute included associations formed for some other purpose, such language should also be read to include for-profit corporations.

In our view, the most plausible construction of the language "an organization or association formed for some other purpose" is that the statutory definition of a "political committee" was intended to include a for-profit corporation insofar as such corporation makes contributions, contributions in kind, or expenditures to or on behalf of a political candidate or issue.

Id. at 162.

In 1996, well after Colorado Common Cause, the FCPA created the issue committee classification and omitted from its definition, and that of political committee as well, any mention of an organization or association "formed principally for some other purpose." Compare § 1-45-103(8), 1 C.R.S. (1999), with § 1-45-103(10), 1B C.R.S. (1980). The FCPA also omitted the reference to persons who have "cooperated" for the purpose of accepting contributions and making expenditures for a ballot issue.

We find the omission of the "formed principally for some other purpose" text especially significant in light of another change to the definition. Under the FCPA, a group must be formed "for the purpose of accepting contributions and making expenditures" in order to be considered an issue committee. § 1-45-103(8) (emphasis added). Contrarily, the CCRA used "or" instead of "and," forcing contributing businesses that did not accept contributions to register. See Colorado Common Cause, 758 P.2d at 163. This slight modification alone eliminated the registration consequences of the CCRA. Therefore, the omission of "formed principally for some other purpose" speaks to the scope of the definition.

The electorate, as well as the legislature, must be presumed to know the existing law at the time they amend or clarify that law. See Bickel v. City of Boulder, 885 P.2d 215, 228 n. 10 (Colo. 1994) (noting that the general rules of statutory construction apply when interpreting citizen-initiated measures);see also Cooper v. People, 973 P.2d 1234, 1239 (Colo. 1999) ("We presume that the General Assembly was familiar with our previous interpretations of statutes and with the common law when it enacted the statute in question."); Vaughan v. McMinn, 945 P.2d 404, 409 (Colo. 1997) ("The legislature is presumed to be aware of the judicial precedent in an area of law when it legislates in that area."); City County of Denver v. Rinker, 148 Colo. 441, 446, 366 P.2d 548, 550 (1961) (opining "that there is a presumption that all laws are passed with knowledge of those already existing"). Thus, the electorate may be presumed to have consciously omitted the provision including groups formed for other purposes from the regulation of issue committees.

C.

We observe that a narrow interpretation of the definition of "issue committee" is not inconsistent with the larger purpose behind the FCPA. One of the best guides to legislative purpose is an act's declaration of policy. See Colorado Common Cause, 758 P.2d at 162. The FCPA's legislative declaration identifies the principal concern of the Act as "large campaign contributions to political candidates." § 1-45-102, 1 C.R.S. (1999). In Citizens for Responsible Government State Political Action Committee, the federal district court determined that the FCPA's legislative goals were avoiding corruption and the appearance of corruption, limiting the amount of money in campaigns, and balancing the influence of special interest groups.See 60 F. Supp.2d at 1078-79. Accordingly, the FCPA focuses on identifying a candidate's ties and allegiances as well as placing limits on campaign contributions. The FCPA's legislative declaration appears to focus on political candidates and does not mention ballot issues or issue committees. See § 1-45-102.

The FCPA's declaration of policy expresses concern that "large campaign contributions to political candidates allow wealthy contributors and special interest groups to exercise a disproportionate level of influence over the political process," as well as concern over the rising costs of campaigning for political office. § 1-45-102. The federal district court held, however, that the state's legitimate interests were limited to avoiding corruption and the appearance of corruption. See Citizens for Responsible Gov't State Political Action Comm., 60 F. Supp.2d at 1082. The state's other interests were not compelling enough to support regulation that would restrict free speech and association. See id. at 1079.

In contrast, the legislative declaration of the Colorado Campaign Reform Act focused on the benefits of disclosure, including fostering an informed public, garnering the trust of the electorate, and increasing public confidence in elected officials. See § 1-45-102, 1B C.R.S. (1996).

As currently written, the FCPA assures disclosure of information regarding large contributions to candidate campaigns. The purposes served by disclosure of that information do not propel a conclusion that CS Alliance should also be subject to the same disclosure provisions. The identity of supporters and opponents of a ballot initiative would be potentially helpful to the electorate, but the information is not nearly as critical as the identity of candidate supporters. As the Supreme Court has stated: "The risk of corruption perceived in cases involving candidate elections simply is not present in a popular vote on a public issue." First Nat'l Bank v. Bellotti, 435 U.S. 765, 790 (1978) (citation omitted). This is because "ballot initiatives do not involve the risk of `quid pro quo' corruption present when money is paid to, or for, candidates." Buckley v. American Constitutional Law Found., Inc., 525 U.S. 182, 203 (1999); see also McIntyre v. Ohio Elections Comm'n, 514 U.S. 334, 352 (1995). Thus, our reading of the definition of "issue committee" does not contravene the electorate's efforts to implement broad campaign finance reform, particularly as to candidate elections.

D.

In matters of statutory construction, we of course must also consider the consequences of our interpretation. See Colorado Common Cause, 758 P.2d at 161-62. As the State points out, a reading of the plain language of the statute may allow some organizations to slip past the disclosure requirements by forming for another purpose and then switching activities to focus on ballot questions. While this loophole in the statute may be troubling, it is one created by the drafting of the FCPA, and we are bound by the Act's plain language. This is a statutory problem that cannot be mended by judicial fiat. We, therefore, must resist the temptation to change the statutory language, and rather must leave any repair to the General Assembly or the electorate.

IV.

Lastly, we are constrained in any broad or inclusive reading of the statute by the constitutional concerns raised in the United States District Court proceeding. Although those issues are not technically before the court given the limited nature of the certification, they wait in the wings and necessarily impact our consideration.

We stress that we are not ruling on the constitutional issues, but rather are addressing them only for the purpose of answering the certified questions.

We deal here with an individual's decision to support or oppose a ballot measure, and the extent to which that association or choice should be required to be publicly disclosed. A vote for or against a ballot measure is most assuredly an exercise of free speech; an economic contribution to a committee designed to support or oppose a ballot measure is similarly of constitutional magnitude. See Citizens Against Rent Control v. City of Berkeley, 454 U.S. 290, 299-300 (1981). "Contributions by individuals to support concerted action by a committee advocating a position on a ballot measure is beyond question a very significant form of political expression." Id. at 298. The rights of free speech and free association are necessarily implicated whenever an individual's membership in an association and his or her political contributions to that association's causes become the subject of public disclosure. See Buckley v. Valeo, 424 U.S. 1, 64-65 (1976).

Hence, we must proceed with caution and with an insistence upon specificity as to the circumstances under which disclosure is required. See Citizens Against Rent Control, 454 U.S. at 294; Baggett v. Bullitt, 377 U.S. 360, 372 (1964); NAACP v. Button, 371 U.S. 415, 433 (1963) ("Because First Amendment freedoms need breathing space to survive, government may regulate in the area only with narrow specificity."); Laurence H. Tribe,American Constitutional Law § 12-31 at 1034 (2d ed. 1988). The First Amendment demands specificity so individuals may assess the burden on their rights to free speech and free association, and make an informed decision. See Grayned v. City of Rockford, 408 U.S. 104, 108 (1972) ("[B]ecause we assume that man is free to steer between lawful and unlawful conduct, we insist that laws give the person of ordinary intelligence a reasonable opportunity to know what is prohibited, so that he may act accordingly.").

Therefore, the members of CS Alliance should have advance notice of the consequences of their political activities and be able to anticipate the extent to which their political associations and activities will become a matter of public knowledge. If we construe the FCPA to permit CS Alliance to evolve into an issue committee, the supporters of CS Alliance will not have had the benefit of choosing whether they wish to contribute to an organization required to make public disclosures. Ballot propositions are often among the most divisive and controversial public issues. Therefore, "[i]t is quite probable that one who advocates an unpopular position would be most reluctant to exercise his right of free speech if his name, [and] address . . . will become a matter of public record."Messerli v. State, 626 P.2d 81, 86 (Alaska 1980). It is possible that members could suffer consequences from disclosure. For example, under some circumstances membership affiliations can cause individuals to lose their jobs or suffer threats of bodily harm. See e.g., Brown v. Socialist Workers '74 Campaign Comm., 459 U.S. 87, 99 (1982); NAACP v. Alabama, 357 U.S. 449, 462 (1958); New York Civil Liberties Union, Inc. v. Acito, 459 F. Supp. 75, 88 (S.D.N.Y. 1978). Certainly an individual should have a choice in determining whether to engage in a process that results in public disclosure of affiliation.

The benefits of disclosure are many, including aiding electors in evaluating candidates and issues, deterring corruption, and checking the influence of affluent special interest groups. See American Constitutional Law Found., Inc., 525 U.S. at 202. However, the right of the electorate to be informed on how public issue campaigns are financed, and by whom, must be balanced against the rights of free association and free speech of an organization's members. See McIntryre, 514 U.S. at 345-47. The General Assembly or the electorate must decide how to accommodate each of these basic rights. That expression of legislative intent would then define the state's interest. In the instance of candidate campaigns, the FCPA provides clear and specific direction as to the balance of these rights in the disclosure and contribution limit provisions. The statute does not reveal any such clear evaluation of the proper equipoise of these rights with respect to issue committees.

In addition to leaving open the question of the scope of the disclosure provisions, see supra Part III, the statute does not address the extent to which the limitation on independent expenditures applies to issue committees. See § 1-45-107, 1 C.R.S. (1999). The FCPA also does not appear to impose aggregate contribution limits on donations to ballot initiative campaigns. See § 1-45-104, 1 C.R.S. (1999).

V.

Because we answer the first certified question in the negative, it is unnecessary for us to reach the merits of the second and third issues. We do note, however, that the second and third questions themselves serve to highlight the difficulties we would encounter were we to adopt a broad construction of the statute.

The second certified question asks: if an organization may become an issue committee some time after formation, when does it become subject to the reporting requirements? The answer to this question is not apparent from the statutory scheme. In order to provide an answer, this court would be required to fix the precise point in time at which a group becomes an issue committee, in addition to setting the quantum of proof necessary to meet that standard. For example, is a decision by a board of directors of an organization to support or oppose an initiative a manifestation of intent to become an issue committee, or must there be an actual expenditure of funds? Further dilemmas arise as well. Since an issue committee and a political committee are distinct, does an organization that chooses to support or oppose an initiative thereby preclude itself from acting as a political committee? The statute is silent on these issues and any resolution would require this court to step beyond the scope of its duty to interpret, rather than create, the law. See e.g.,Schlessinger, 796 P.2d at 1389.

Similar pragmatic difficulties spring out of the third certified question: if an organization becomes an issue committee, then to what extent is it subject to the FCPA's disclosure requirements? The statute provides no guidance as to whether only those contributions that are segregated or earmarked must be disclosed, or whether every donation must be reported. If we were to hold that the organization must only disclose donations specified for a ballot purpose, then how would an organization that decided to support or oppose an initiative, yet received no contributions earmarked for that purpose, comply? Would the organization disclose the money it spent, but identify no donors for that money?

Providing an answer to the third certified question also would bring us back to the constitutional concerns outlined above. If this court were to require CS Alliance to report all contributions, then the organization would disclose the names of contributors whether or not those people donated money knowing of the decision to support or oppose an initiative. Many associations, organized for some other broad purpose, could choose to contribute money to support or oppose an initiative. Examples that quickly come to mind might be the League of Women Voters or the Sierra Club. The decision-making process of such an entity must necessarily, because of the size of the organization, comprise only a few individuals. Those few individuals could make a decision to expend money to support an initiative campaign: a decision they felt to be completely consistent with the organization's overall purpose. However, few of the members of the organization would have any idea that the decision had been made and that the group's purpose could have changed according to the statute. It would be not only onerous for the association, but also intrusive for the individual members, if the FCPA then required the organization to disclose the names and addresses of each member who had at any point in time contributed more than $20.00.

The immense practical difficulties in answering certified questions two and three reinforce our conclusion that the electorate did not fully consider the treatment of issue committees under the FCPA. Because we cannot tell by the terms of the statute when CS Alliance might have become an issue committee, or which contributions it would then be required to disclose, we must necessarily hold that CS Alliance is not an issue committee at all.

VI.

In conclusion, we hold that the FCPA covers only those issue committees that were formed for the purpose of supporting or opposing a ballot initiative. Organizations that form for another purpose and later commit to ballot issue activity are not within the clear ambit of the statute. Although this conclusion may allow some organizations to avoid disclosure under the current FCPA, to hold otherwise would be to fill in gaps in the legislation in a manner that invites constitutional problems.

Accordingly, we answer the first certified question in the negative, decline to answer the second and third certified questions, and return this opinion to the United States District Court for further proceedings.

JUSTICE SCOTT dissents, and JUSTICE MARTINEZ joins in the dissent.


Summaries of

Common Sense Alliance v. Davidson

Supreme Court of Colorado
Mar 13, 2000
995 P.2d 748 (Colo. 2000)

holding that this court "must resist the temptation to change the statutory language, and . . . leave any repair to the General Assembly"

Summary of this case from Brown v. People

stating that when divining legislative purpose, "[o]ne of the best guides . . . is an act's declaration of policy"

Summary of this case from Department of Labor v. Esser

stating that courts should exercise caution to refrain from adding language to a statute

Summary of this case from Ryals v. St. Mary-Corwin Reg'l Med. Ctr.

applying this principle to construction of the statutory term "issue committee"

Summary of this case from Cerbo v. Protect Colorado Jobs, Inc.

noting the organization's stated purposes, but then analyzing whether it had a major purpose of supporting or opposing a ballot initiative based on its actual activities

Summary of this case from Cerbo v. Protect Colorado Jobs, Inc.

observing that reporting provisions of the Act implicate "constitutional rights concerning freedom of association and freedom of speech"

Summary of this case from Cerbo v. Protect Colorado Jobs, Inc.

observing that the organization had engaged in educational and other activities for more than two years before it proposed and supported the ballot initiative at issue; construing a statutory definition of "issue committee" since superseded by article XXVIII, section 2

Summary of this case from Cerbo v. Protect Colorado Jobs, Inc.

In Common Sense Alliance, the supreme court did not base its analysis solely on the stated purposes of the organization.

Summary of this case from The League of Women Voters v. Davidson
Case details for

Common Sense Alliance v. Davidson

Case Details

Full title:Common Sense Alliance, an unincorporated Colorado Association, Plaintiff…

Court:Supreme Court of Colorado

Date published: Mar 13, 2000

Citations

995 P.2d 748 (Colo. 2000)

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The fact that the PNA was adopted by initiative, rather than by the Colorado legislature, does not alter the…