MOVING OXNARD FORWARD, INC. V. ASCENSION, No. 21-56295 (9th Cir. 2024)
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A nonprofit corporation, Moving Oxnard Forward (MOF), challenged campaign finance limitations in the Oxnard City Code, alleging they violated the First Amendment. The limitations, adopted by the City of Oxnard, California, primarily affected Aaron Starr, MOF's President, who had a history of receiving large contributions and challenging the City Council's policies. Starr had previously led recall efforts against the City Council and ran for Mayor, relying on larger-dollar contributions.
The United States District Court for the Central District of California granted summary judgment in favor of the City, upholding the campaign finance limitations. MOF appealed the decision, arguing that the limitations were designed to target and suppress Starr's political activities rather than to prevent corruption.
The United States Court of Appeals for the Ninth Circuit reviewed the case and found significant "danger signs" of invidious discrimination against Starr. The court noted that the legislative record and the practical impact of the limitations disproportionately affected Starr, who had been a vocal critic of the City Council. The court also found that the City's justification for the limitations, based on a 2010 corruption scandal, was tenuous and unrelated to campaign contributions.
The Ninth Circuit concluded that the contribution limits were not narrowly tailored to the City's interest in preventing quid pro quo corruption. Instead, the limits appeared to be more closely drawn to suppress Starr's political activities. As a result, the court reversed the district court's decision and remanded with instructions to grant summary judgment in favor of MOF, holding that the per-candidate aggregate contribution limitations in the Oxnard City Code violated the First Amendment.
Court Description: First Amendment/Campaign Contribution Limits The panel reversed the district court’s grant of summary judgment to the City of Oxnard, California, and remanded with instructions to grant summary judgment to plaintiff, Moving Oxnard Forward (“MOF”), in a case in which MOF challenged certain campaign finance limitations in the Oxford City Code as a violation of the First Amendment.
The City adopted campaign finance limitations that would have little practical impact on any recent candidates for municipal elections except for one—Aaron Starr, the President of MOF, a nonprofit corporation whose purpose, according to Starr, is to ensure local government efficiency. Starr had, among other things, engineered recall efforts against a majority of the City Council and came in second in the Mayor’s race, consistently relying on larger- dollar contributions. In 2019, the City Council placed General Order § 3.2.h. Judge Bennett has reviewed the briefs, the record, and the video of the oral argument. ** The Honorable Stephen Joseph Murphy III, United States District Judge for the Eastern District of Michigan, sitting by designation. Measure B on the ballot, limiting an individual’s contributions to candidates for City Council and various other City offices. After voters approved Measure B, MOF challenged the campaign finance limitations as a violation of the First Amendment.
Although courts ordinarily should defer to the legislature in determining whether contribution limits are closely drawn to the legitimate governmental interest of avoiding quid pro quo corruption or its appearance, the panel held that the City’s contribution limits presented sufficient danger signs of constitutional risks to the democratic electoral process to require the panel to examine the record independently and carefully. Specifically, the record showed a significant risk that the City may be engaged in invidious discrimination against Starr, who has repeatedly challenged the incumbent City government and its policies. The legislative record indicated that (1) Starr and his contributions were a target of the City Council when it proposed and promoted Measure B; (2) Starr was the person who would most be affected by Measure B’s passage; and (3) there was a considerable history of antipathy between Starr and the City’s elected officials over the years immediately preceding Measure B’s adoption.
Reviewing the record independently and carefully, the panel concluded that Measure B’s contribution limits were not narrowly tailored to match the City’s interest in avoiding the reality or appearance of quid pro quo corruption. The City’s asserted reliance on remedying problems identified in a 2010 City corruption scandal bore, at best, a weak and tenuous relationship to Measure B’s contribution limits. On this record, Measure B’s campaign finance limits were much more closely drawn to the prohibited objective of stopping Starr rather than remedying corruption concerns. The panel, therefore, concluded that the challenged per-candidate aggregate contribution limitations violate the First Amendment.
Dissenting, Judge Bennett would hold that the City’s contribution limits passed First Amendment scrutiny. The City’s asserted interest in preventing actual or perceived quid pro quo corruption was fairly supported by the record and Measure B’s limits were closely drawn to that interest. The majority’s conclusion that the City may be engaged in invidious discrimination against Starr, even if it could be considered outside of the equal protection framework, lacked support in the record. Moreover, in assessing whether the contribution limits were closely drawn to match the City’s interest, the majority contravened precedent by applying a motive test instead of a tailoring test.
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