Subject: Re: Beaumont news and a response to Bob Bauer's post
From: Rick Hasen
Date: 6/17/2003, 10:22 AM
To: "Bauer, Bob-WDC" <RBauer@perkinscoie.com>, election-law <election-law@majordomo.lls.edu>

Bob,
There are many articles (and I think our casebook) that has explained the shakiness of Austin, including Dan Lowenstein's "A Patternless Mosaic: Campaign Finance and the First Amendment After Austin," 21 Capital University Law Review 381 (1989) and in a number of my own pieces, beginning with my article on campaign finance vouchers at 84 Cal. L. Rev. 1 (1996). (See also Adam Winkler's Beyond Bellotti, 32 Loyola of Los Angeles Law Review 133 (1998) discussing the tension between Bellotti and Austin). .

Austin was a 6-3 decision. Only two members of the majority (Rehnquist and Stevens) remain on the Court along with all three dissenters (Kennedy, O'Connor, and Scalia).  Joined by Justice Thomas, that looked like four justices ready to overrule Austin.  Given the extension of the corporate/union electioneering provisions in BCRA in a novel way , no prior opinion of Justice Souter on this issue, and the possibility of a Rehnquist retirement, it is more than fair to characterize the extension of the BCRA provisions under Austin as somewhat shaky. And by the way, I doubt that Kennedy or Scalia would stand by much of the language in their Austin dissents today on the distinction between contributions and expenditures. Scalia jumped to Thomas's camp on this issue a few years ago (the position is that most, or all, contribution limitations fail strict scrutiny), and Kennedy keeps stating in his opinions (see CR II and Beaumont) that he is ready to do so in an appropriate case. We did not know where O'Connor stood before yesterday.  That she did not join Kennedy's concurrence is significant.

As for the anti-circumvention language, it provides great support for the arguments in favor of the constitutionality of a soft money ban. Of course it is relevant in McConnell, as is the Court's strong rejection of Bellotti's protection for corporate activity in the election context in the Beaumont footnote.
Rick

Bauer, Bob-WDC wrote:
See my point by point response below to Rick's points. 
._
-----Original Message-----
From: Rick Hasen [mailto:Rick.Hasen@lls.edu]
Sent: Tuesday, June 17, 2003 10:30 AM
To: election-law
Cc: Bauer, Bob-WDC
Subject: Beaumont news and a response to Bob Bauer's post

Even more Beaumont news and commentary The Boston Globe offers "Supreme Court Backs Campaign-Gift Limits.". The Washington Times offers "Campaign Fund-Raising Caps Imposed on Non-Profits." Todd Gaziano writes this op-ed in USA Today. The Charlotte Observer offers "Supreme Court affirms ban on donations by nonprofits." The Denver Post offers this editorial. The Los Angeles Daily News offers "High court upholds ban on contributions." (The Los Angeles Times story does not yet appear to be posted on the newspaper's website.)

I take strong issue with Bob Bauer's post that Beaumont is not news.  (By the way, both Ed Still and I on our blogs incorrectly predicted before oral argument that this case could have come out the other way.  So much for Bob's "no one---not one person" language.)   Rick and Ed may have had different views about the possible outcome before oral argument: I did not come across that view then or elsewhere, and I was only speaking, as I could only speak, for my own experience and conversations 

He may be right about the problem with using the "rebuke" language in some press release, and he may be right that I'm overreading the "historical prologue," but my view is that this case is big news.  I've already given my detailed analysis, but let me just give a few headlines here, and Bob can refute them one-by-one if he likes:   

1. The Court reaffirms and bolsters Austin's rationales for limits on corporate campaign finance activity.  Austin is a case that has been considered somewhat shaky as precedent.  Austin is a key case toward upholding the constitutionality of BCRA's separate segregated funds requirement for corporations and unions extended to "electioneering communications."   Who has considered Austin "somewhat shaky?"  I did not expect the Court to use Beaumont to overturn Austin, and I do not recall the suggestion that this would happen, though I may have missed it. And what is the basis for the emphasis on "reaffirmation": Is it news that the Court did not reverse itself on Austin? 
 
With all due respect, I am reminded of political coverage that depends for its punch on setting some "expectation" and then announcing that someone exceeded or fell way below it.  In this sense, I find the news somewhat self-manufactured.

2. The Court reaffirms and strengthens the anti-circumvention rationale, mentioned in Colorado Republican II and extended to justify limits on corporate election activity.  As I noted yesterday, the anti-corruption rationale simply helped the Court address the obvious objection that these types of corporations could be said to have resources proportionate to their level of political support, unlike for-profit corporations.  This, it seems to me, solves the problem in this case, without commiting the Court to the deployment of this same rationale in McConnell.

3. The Court changes its views as to the merits of limiting the First Amendment rights of corporations, at least in the context of elections.  (Note Jan Baran's unconvincing counterspin in the Washington Times piece linked above, where Baran suggests that Nike v. Kasky would be more on point.)   I need a better understanding of the scope of this suggested change.  The Court did what a lot of people--perhaps not all--thought it would do: it limited those rights in the context of "direct contributions to candidates".  That phrase--"direct contributions to candidates"--was repeated so often, I cannot imagine that its narrowing intention was inadvertent.  

4. The majority managed to keep Justice O'Connor's votes on all these propositions, where, given her dissent in Austin, one might have thought to be quite difficult.  Why difficult?  Random language from the Kennedy/O'Connor/Scalia dissent:
 
 
Our cases acknowledge the danger that corruption poses for the electoral process, but draw line in permissible regulation between payments to candidates ("contributions") and payments or expenditures to express one's own views ("Independent expenditures"). Today's decision abandons this distinction and threatens once-protected political speech. AND
 
Independent expenditures are entitled to greater protection  than campaign contributions. AND
 
Campaign contributions are subject to greater regulation because of the enhanced risk of corruption....AND
 
The proper analysis must follow our cases in independent expenditures. AND
 
Appellant's reliance on cases involving contributionms...is misplaced.
 
 
What difficulty might she have perceived in squaring this analysis with the majority's view in Beaumont? And can it be news that someone might have thought she would find it difficult?  This is news again about expectations--the expectations of some--and not about the case. 

Not news?   Not news.
-- 
Rick Hasen
Professor of Law and William M. Rains Fellow
Loyola Law School
919 South Albany Street
Los Angeles, CA  90015-1211
(213)736-1466
(213)380-3769 - fax
rick.hasen@lls.edu
http://www.lls.edu/academics/faculty/hasen.html
http://electionlaw.blogspot.com
    

-- 
Rick Hasen
Professor of Law and William M. Rains Fellow
Loyola Law School
919 South Albany Street
Los Angeles, CA  90015-1211
(213)736-1466
(213)380-3769 - fax
rick.hasen@lls.edu
http://www.lls.edu/academics/faculty/hasen.html
http://electionlaw.blogspot.com