New limits on campaign donations in Missouri will stay in place for now, but other parts of a law approved by voters in November are on hold following a federal court decision issued Friday.
In a 40-page ruling, U.S. District Court Senior Judge Ortrie Smith said much of the new law doesn’t meet constitutional muster when it comes to limiting certain kinds of organizations from contributing to political candidates and causes.
The ruling came down on a day when the Missouri Senate spent hours engaged in sometimes emotional debate over campaign finance issues, including a push to force a new organization formed by allies of Gov. Eric Greitens to reveal its donors.
In the court case, the Association of Missouri Electrical Cooperatives and Legends Bank argued the new law unfairly stops them from donating to campaigns and political action committees.
Attorneys argued that if the law stays in place, the electrical cooperatives won’t be able to raise adequate funds to ensure its members’ voices are heard during the Missouri General Assembly’s legislative session and in upcoming elections. In his decision, Smith said the Missouri Ethics Commission, which regulates campaign finance and lobbying activities, cannot enforce the new law regarding giving by certain groups.
“My clients are happy with the ruling. The judge acknowledged that the First Amendment places limits on how much the state can restrict campaign contributions,” said Chuck Hatfield, a Jefferson City-based attorney for the co-ops.
Under the November change to the state constitution, Missouri voters capped contributions to individual candidates at $2,600 per election. Contributions to a political party would be capped at $25,000.
The change also attempted to ban the current practice of funneling money through different committees to hide the source of the contributions. It prohibits contributions by foreign interests and companies not legally authorized to conduct business in Missouri.
Smith said the latter provisions are unconstitutional and said the MEC cannot enforce that part of the law.
A spokeswoman for Attorney General Josh Hawley, who was among candidates in the 2016 election receiving six-figure contributions, did not say whether the decision would be appealed.
“We are carefully reviewing today’s decision,” said deputy chief of staff Loree Paradise.
Attorney Todd Graves, who represented other groups fighting the limits, said the decision could lead to the entire constitutional amendment being voided.
“What’s left now is, at best, Swiss cheese,” said Graves, who also is chairman of the Missouri Republican Party. “We consider this a big win.”
Missouri lawmakers re moved campaign contribution limits in 2008. That led to an era where sevenfigure contributions to candidates became common, including during the most recent election.
The referendum that brought back campaign contribution limits was backed by Republican Fred Sauer, a Clayton businessman who made an unsuccessful run for governor in 2012. He says megadonors like Joplin businessman David Humphreys and retired financier Rex Sinquefield have tilted the political system toward the wealthy.