Missouri State and Judicial Campaign Contribution Limits, Constitutional Amendment 2 (2016)

Missouri Amendment 2
Election date November 8, 2016
Topic Campaign finance
Status a/ot Approved/Overturned
Type Constitutional amendment	Origin Citizens

2016 measures
November 8
Amendment 1 a
Amendment 2 a
Amendment 3 d
Amendment 4 a
Amendment 6 a
Proposition A d
Polls
Voter guides
Campaign finance
Signature costs

The Missouri State and Judicial Campaign Contribution Limits Initiative, also known as Constitutional Amendment 2, was on the November 8, 2016, ballot in Missouri as an initiated constitutional amendment. The measure was approved.

A "yes" vote supported establishing limits on campaign contributions to candidates for state or judicial office.

A "no" vote opposed this amendment to establish limits on campaign contributions to candidates for state or judicial office.

Aftermath

  

Lawsuit overview
Issue: Constitutionality of the measure; Whether the measure can stop plaintiffs from donating to campaigns and PACs
Court: United States District Court for the Western District of Missouri
Ruling: Some sections ruled unconstitutional: capping contributions to $2,600, banning corporations and unions from making certain contributions, banning political action committees from receiving or making certain contributions, and banning committees from accepting contributions from foreign corporations.
Plaintiff(s): Association of Missouri Electrical Cooperatives, Association of Missouri Electrical Cooperatives PAC, Legends Bank, David Klindt, Free and Fair Election Fund, Missourians for Worker Freedom, American Democracy Alliance, John Elliot, Herzog Services Inc., and Farmers State Bank	Defendant(s): State of Missouri and Missouri Ethics Commission
Plaintiff argument: The measure unconstitutionally blocks them from making desired contributions to campaigns and PACs.	Defendant argument: The measure is constitutional.

  Source: The Missouri Times

On December 7, 2016, the Association of Missouri Electrical Cooperatives (AMEC) and its PAC, Legends Bank, and David Klindt filed litigation against the state of Missouri and Missouri Ethics Commission (MEC), which was tasked with enforcing Amendment 2. The lawsuit was filed in the United States District Court for the Eastern District of Missouri. However, Judge Catherine Perry ordered the case transferred to the United States District Court for the Western District of Missouri. Plaintiffs said that Amendment 1 prevented them from making and receiving contributions between entities.

On December 23, 2016, Free and Fair Election Fund (FFEF), Missourians for Worker Freedom, American Democracy Alliance, John Elliot, Herzog Services Inc., and Farmers State Bank filed litigation against the Missouri Ethics Commission in the United States District Court for the Western District of Missouri. Plaintiffs challenged Amendment 1's $2,600 cap on campaign contributions to candidates.

The U.S. District Court of Western Missouri consolidated FFEF v. MEC and AMEC v. Missouri into one case—FFEF/AMEC v. MEC/Missouri.

On May 5, 2017, Judge Ortrie Smith of the U.S. District Court of Western Missouri ruled sections of Amendment 2, but not the entire amendment, unconstitutional. The sections of the amendment ruled unconstitutional were:

• Section 23.3(1)(a), which was designed to cap the contributions amount from any one individual to candidates for state or judicial offices at $2,600.
• Section 23.3(3), which was designed to ban corporations and unions from making contributions to campaign, candidate, and party committees.
• Section 23.3(12), which was designed to ban political action committees from receiving contributions from entities other than those formed under chapters 347 to 360 of Missouri Revised Statutes.
• Section 23.3(12), which was designed to ban political action committees from receiving contributions from other political action committees.
• Section 23.3(16)(c), which was designed to ban committees from accepting contributions from foreign corporations.

Judge Smith stayed the ruling for 45 days to allow defendants to appeal the case. Stephen Webber, chairperson of the state Democratic Party, called on Attorney General Josh Hawley (R) to appeal the decision. On May 30, 2017, Attorney General Hawley announced that he planned to appeal the court ruling.

On September 10, 2018, the United States Court of Appeals for the 8th Circuit upheld the district court's ruling that Amendment 2's prohibition on PAC-to-PAC contributions was unconstitutional.

Election results

Amendment 2
Result		Votes	Percentage
a Yes		1,894,870	69.95%
No		814,016	30.05%

Election results from Missouri Secretary of State

Overview

Status of campaign contribution limits in Missouri

In 1994, 74 percent of Missouri voters approved Proposition A. The measure enacted a law to limit campaign contributions. The Missouri Legislature and Gov. Matt Blunt (R) repealed Proposition A in 2008.

Initiative design

Amendment 2 established limits on campaign contributions to state and judicial, but not municipal and federal, candidates, committees, and political parties. The measure prohibited candidates for state and judicial offices from receiving more than $2,600 from any one individual, other than the candidate himself or herself, per election. The measure capped contributions from any one individual or committee to a political party at $25,000 per election. It prohibited corporations and labor unions from making direct contributions, although they could still form continuing committees. Amendment 2 prohibited one candidate's committee from contributing to another candidate's committee. The measure was designed to prohibit candidates from accepting funds from out-of-state committees unless said committee registers in Missouri. It banned committees and parties from accepting contributions from non-citizens, foreign governments, and foreign corporations not permitted to do business in the state. It permitted contributions under $25 to remain anonymous. The measure mandated that limits on campaign contributions adjusted every four years relative to inflation.

The measure also established penalties for violating contributions limits. It made the first violation a notice to return the unlawful funds, the second violation a class C misdemeanor, and the third violation a class D felony.

State of the ballot measure campaigns

Backers of Amendment 2 organized Returning Government to the People, which received $1.55 million as of December 14, 2016. The sole donor to the “Yes” campaign was Fred N. Sauer. Opponents did not organize a campaign. A poll from late September 2016 showed that around 64 percent of likely voters favored Amendment 2 prior to the election. Gov. Jay Nixon (D) supported the initiative.

Text of measure

Ballot title

The official ballot title was as follows:

“

Shall the Missouri Constitution be amended to: establish limits on campaign contributions by individuals or entities to political parties, political committees, or committees to elect candidates for state or judicial office; prohibit individuals and entities from intentionally concealing the source of such contributions; require corporations or labor organizations to meet certain requirements in order to make such contributions; and provide a complaint process and penalties for any violations of this amendment? It is estimated this proposal will increase state government costs by at least $118,000 annually and have an unknown change in costs for local governmental entities. Any potential impact to revenues for state and local governmental entities is unknown.

”

Fair ballot language

An explanation of the ballot language was as follows:

“

A “yes” vote will amend the Missouri Constitution to establish limits on campaign contributions by individuals or entities to political parties, political committees, or committees to elect candidates for state or judicial office. This amendment prohibits individuals and entities from intentionally concealing the source of such contributions. This amendment also requires corporations or labor organizations to meet certain requirements in order to make such contributions. This amendment further provides a complaint process and penalties for any violations of this amendment. A “no” vote will not amend the Missouri Constitution to establish limits on campaign contributions. If passed, this measure will have no impact on taxes.

”

Constitutional changes

See also: Article VIII, Missouri Constitution

The measure added a Section 23 to Article VIII of the Missouri Constitution: Note: Use your mouse to scroll over the below text to see the full text.

Section 23. 1. This section shall be known as the "Missouri Campaign Contribution Reform Initiative." 2. The people of the State of Missouri hereby find and declare that excessive campaign contributions to political candidates create the potential for corruption and the appearance of corruption: that large campaign contributions made to influence election outcomes allow wealthy individuals, corporations and special interest groups to exercise a disproportionate level of influence over the political process: that the rising costs of campaigning for political office prevent qualified citizens from running for political office: that political contributions from corporations and labor organizations are not necessarily an indication of popular support for the corporation's or labor organization's political ideas and can unfairly influence the outcome of Missouri elections: and that the interests of the public are best served by limiting campaign contributions, providing for full and timely disclosure of campaign contributions, and strong enforcement of campaign finance requirements. 3. (1) Except as provided in subdivisions (2), (3) and (4) of this subsection, the amount of contributions made by or accepted from any person other than the candidate in any one election shall not exceed the following: (a) To elect an individual to the office of governor, lieutenant governor, secretary of state, state treasurer, state auditor, attorney general, office of state senator, office of state representative or any other state or judicial office, two thousand six hundred dollars. (2) (a) No political party shall accept aggregate contributions from any person that exceed twenty-five thousand dollars per election at the state, county, municipal, district, ward, and township level combined. (b) No political party shall accept aggregate contributions from any committee that exceed twenty-five thousand dollars per election at the state, county, municipal, district, ward, and township level combined. (3) (a) It shall be unlawful for a corporation or labor organization to make contributions to a campaign committee, candidate committee, exploratory committee, political party committee or a political party; except that a corporation or labor organization may establish a continuing committee which may accept contributions or dues from members, officers, directors, employees or security holders. (b) The prohibition contained in subdivision (a) of this subsection shall not apply to a corporation that: (i) Is formed for the purpose of promoting political ideas and cannot engage in business activities: and (ii) Has no security holders or other persons with a claim on its assets or income: and (iii) Was not established by and does not accept contributions from business corporations or labor organizations. (4) No candidate’s candidate committee shall accept contributions from, or make contributions to another candidate committee, including any candidate committee, or equivalent entity, established under federal law. (5) Notwithstanding any other subdivision of this subsection to the contrary, a candidate's candidate committee may receive a loan from a financial institution organized under state or federal law if the loan bears the usual and customary interest rate, is made on a basis that assures repayments, is evidenced by a written instrument, and is subject to a due date or amortization schedule. The contribution limits described in this subsection shall not apply to a loan as described in this subdivision. (6) No campaign committee, candidate committee, continuing committee, exploratory committee- political party committee, and political party shall accept a contribution in cash exceeding one hundred dollars per election. (7) No contribution shall be made or accepted, directly or indirectly, in a fictitious name, in the name of another person, or by or through another person in such a manner as to conceal the identity of the actual source of the contribution or the actual recipient. Any person who receives contributions for a committee shall disclose to that committee's treasurer, deputy treasurer or candidate the recipient's own name and address and the name and address of the actual source of each contribution such person has received for that committee. (8) No anonymous contribution of more than twenty-five dollars shall be made by any person, and no anonymous contribution of more than twentv-five dollars shall be accepted by any candidate or committee. If any anonymous contribution of more than twenty-five dollars is received, it shall be returned immediately to the contributor, if the contributor's identity can be ascertained, and if the contributor's identity cannot be ascertained, the candidate, committee treasurer or deputy treasurer shall immediately transmit that portion of the contribution which exceeds twenty-five dollars to the state treasurer and it shall escheat to the state. (9) The maximum aggregate amount of anonymous contributions which shall be accepted per election by any committee shall be the greater of five hundred dollars or one percent of the aggregate amount of all contributions received by that committee in the same election. If any anonymous contribution is received which causes the aggregate total of anonymous contributions to exceed the foregoing limitation, it shall be returned immediately to the contributor, if the contributor's identity can be ascertained, and, if the contributor's identity cannot be ascertained, the committee treasurer, deputy treasurer or candidate shall immediately transmit the anonymous contribution to the state treasurer to escheat to the state. (10) Notwithstanding the provisions of subdivision (9) of this subsection, contributions from individuals whose names and addresses cannot be ascertained which are received from a fund-raising activity or event, such as defined in section 130.011. RSMo. as amended from time to time, shall not be deemed anonymous contributions, provided the following conditions arc met: (a) There are twenty-five or more contributing participants in the activity or event; (b) The candidate, committee treasurer, deputy treasurer or the person responsible for conducting the activity or event makes an announcement that it is illegal for anyone to make or receive a contribution in excess of one hundred dollars unless the contribution is accompanied by the name and address of the contributor; (c) The person responsible for conducting the activity or event does not knowingly accept payment from any single person of more than one hundred dollars unless the name and address of the person making such payment is obtained and recorded pursuant to the record-keeping requirements of section 130.036, RSMo. as amended from time to time; (d) A statement describing the event shall be prepared by the candidate or the treasurer of the committee for whom the funds were raised or by the person responsible for conducting the activity or event and attached to the disclosure report of contributions and expenditures required by section 130.041. RSMo. as amended from time to time. The following information to be listed in the statement is in addition to, not in lieu of, the requirements elsewhere in this chapter relating to the recording and reporting of contributions and expenditures: (i) The name and mailing address of the person or persons responsible for conducting the event or activity and the name and address of the candidate or committee for whom the funds were raised: (ii) The date on which the event occurred; (iii) The name and address of the location where the event occurred and the approximate number of participants in the event; (iiii) A brief description of the type of event and the fund-raising methods used; (v) The gross receipts from the event and a listing of the expenditures incident to the event; (vi) The total dollar amount of contributions received from the event from participants whose names and addresses were not obtained with such contributions and an explanation of why it was not possible to obtain the names and addresses of such participants: (vii) The total dollar amount of contributions received from contributing participants in the event who are identified by name and address in the records required to be maintained pursuant to section 130.036. RSMo. as amended from time to time. (11) No candidate or committee in this state shall accept contributions from any out-of-state committee unless the out-of-state committee from whom the contributions arc received has filed a statement of organization pursuant to section 130.021. RSMo. as amended from time to time, or has filed the reports required by sections 130.049 and 130.050. RSMo. as amended from time to time, whichever is applicable to that committee. (12) Political action committees shall only receive contributions from individuals; unions; federal political action committees; and corporations, associations, and partnerships formed under chapters 347 to 360. RSMo. as amended from time to time, and shall be prohibited from receiving contributions from other political action committees, candidate committees, political party committees, campaign committees, exploratory committees, or debt service committees. However, candidate committees, political party committees, campaign committees, exploratory committees, and debt service committees shall be allowed to return contributions to a donor political action committee that is the origin of the contribution. (13) The prohibited committee transfers described in subdivision (12) of this subsection shall not apply to the following committees: (a) The state house committee per political party designated by the respective majority or minority floor leader of the house of representatives or the chair of the state party if the party does not have majority or minority party status: (b) The state senate committee per political party designated by the respective majority or minority floor leader of the senate or the chair of the state party if the party does not have majority or minority party status. (14) No person shall transfer anything of value to any committee with the intent to conceal, from the Missouri ethics commission, the identity of the actual source. Any violation of this subdivision shall be punishable as follows: (a) For the first violation, the Missouri ethics commission shall notify such person that the transfer to the committee is prohibited under this section within five days of determining that the transfer is prohibited, and that such person shall notify the committee to which the funds were transferred that the funds must be returned within ten days of such notification; (b) For the second violation, the person transferring the funds shall be guilty of a class C misdemeanor: (c) For the third and subsequent violations, the person transferring the funds shall be guilty of a class D felony. (15) No person shall make a contribution to a campaign committee, candidate committee, continuing committee, exploratory committee, political party committee, and political party with the expectation that some or all of the amounts of such contribution will be reimbursed by another person. No person shall be reimbursed for a contribution made to any campaign committee, candidate committee, continuing committee, exploratory committee, political party committee, and political party, nor shall any person make such reimbursement expect as provided in subdivision (5) of this subsection. (16) No campaign committee, candidate committee, continuing committee, exploratory' committee, political party committee, and political party shall knowingly accept contributions from: (a) Any natural person who is not a citizen of the United States: (b) A foreign government: or (c) Any foreign corporation that does not have the authority to transact business in this state pursuant to Chapter 347. RSMo. as amended from time to time. (17) Contributions from persons under fourteen years of age shall be considered made by the parents or guardians of such person and shall be attributed toward any contribution limits prescribed in this chapter. Where the contributor under fourteen years of age has two custodial parents or guardians, fifty percent of the contribution shall be attributed to each parent or guardian, and where such contributor has one custodial parent or guardian, all such contributors shall be attributed to the custodial parent or guardian. (18) Each limit on contributions described in subdivisions (1). (2)(a). and (2)(b) of this subsection shall be adjusted by an amount based upon the average of the percentage change over a four year period in the United States Bureau of Labor Statistics Consumer Price Index for Kansas City, all items, all consumers, or its successor index, rounded to the nearest lowest twenty-five dollars and the percentage change over a four year period in the United States Bureau of Labor Statistics Consumer Price Index for St. Louis, all items, all consumers, or its successor index, rounded to the nearest lowest twenty-five dollars. The first adjustment shall be done in the first quarter of 2019, and then every four years thereafter. The secretary of state shall calculate such an adjustment in each limit and specify the limits in rules promulgated in accordance with Chapter 536. RSMo. as amended from time to time. 4. (1) Notwithstanding the provisions of subsection 3 of section 105.957, RSMo. as amended from time to time, any natural person may file a complaint with the Missouri ethics commission alleging a violation of the provisions of section 3 of this Article by any candidate for elective office, within sixty days prior to the primary election at which such candidate is running for office, until after the general election. Any such complaint shall be in writing, shall state all facts known by the complainant which have given rise to the complaint, and shall be sworn to, under penalty of perjury, by the complainant. (2) Within the first business day after receipt of a complaint pursuant to this section, the executive director shall supply a copy of the complaint to the person or entity named in the complaint. The executive director of the Missouri ethics commission shall notify the complainant and the person or entity named in the complaint of the date and time at which the commission shall audit and investigate the alienations contained in the complaint pursuant to subdivision (3) of this subsection. (3) Within fifteen business days of receipt of a complaint pursuant to this section, the commission shall audit and investigate the allegations contained in the complaint and shall determine by a vote of at least four members of the commission that there are reasonable grounds to believe that a violation of law has occurred within the jurisdiction of the commission. The respondent may reply in writing or in person to the allegations contained in the complaint and may state justifications to dismiss the complaint. The complainant may also present evidence in support of the allegations contained in the complaint, but such evidence shall be limited in scope to the allegations contained in the original complaint, and such complaint may not be supplemented or otherwise enlarged in scope. (4) If, after audit and investigation of the complaint and upon a vote of at least four members of the commission, the commission determines that there are reasonable grounds to believe that a violation of law has occurred within the jurisdiction of the commission, the commission shall proceed with such complaint as provided by sections 105.957 to 105.963. RSMo. as amended from time to time. If the commission docs not determine that there are reasonable grounds to believe that such a violation of law has occurred, the complaint shall be dismissed. If a complaint is dismissed, the fact that such complaint was dismissed, with a statement of the nature of the complaint, shall be made public within twenty-four hours of the commission's action. (5) Any complaint made pursuant to this section, and all proceedings and actions concerning such a complaint, shall be subject to the provisions of subsection 15 of section 105.961. RSMo. as amended from time to time. (6) No complaint shall be accepted by the commission within fifteen days prior to the primary or general election at which such candidate is running for office. 5. Any person who knowingly and willfully accepts or makes a contribution in violation of any provision of section 3 of this Article or who knowingly and willfully conceals a contribution by filing a false or incomplete report or by not filing a required report under Chapter 130. RSMo. as amended from time to time, shall be held liable to the state in civil penalties in an amount of at least double and up to live times the amount of any such contribution. 6. (1) Any person who purposely violates the provisions of section 3 of this Article is guilty of a class A misdemeanor. (2) Notwithstanding any other provision of law which bars prosecutions for any offenses other than a felony unless commenced within one year after the commission of the offense, any offense under the provisions of this section may be prosecuted if the indictment be found or prosecution be instituted within three years after the commission of the alleged offense. (3) Any prohibition to the contrary notwithstanding, no person shall be deprived of the rights, guarantees, protections or privileges accorded by sections 130.011 to 130.026. 130.031 to 130.068. 130.072, and 130.081. RSMO, as amended from time to time, by any person, corporation, entity or political subdivision. 7. As used in this section, the following terms have the following meanings: (1) “Appropriate officer" or "appropriate officers", the person or persons designated in section 130.026. or any successor section, to receive certain required statements and reports; (2) “Candidate”, an individual who seeks nomination or election to public office. The term "candidate" includes an elected officeholder who is the subject of a recall election, an individual who seeks nomination by the individual's political party for election to public office, an individual standing for retention in an election to an office to which the individual was previously appointed, an individual who seeks nomination or election whether or not the specific elective public office to be sought has been finally determined by such individual at the time the individual meets the conditions described in paragraph (a) or (b) of this subdivision, and an individual who is a write-in candidate as defined in subdivision (26) of this section. A candidate shall be deemed to seek nomination or election when the person first: (a) Receives contributions or makes expenditures or reserves space or facilities with intent to promote the person's candidacy for office: or (b) Knows or has reason to know that contributions are being received or expenditures are being made or space or facilities are being reserved with the intent to promote the person's candidacy for office; except that, such individual shall not be deemed a candidate if the person files a statement with the appropriate officer within five days after learning of the receipt of contributions, the making of expenditures, or the reservation of space or facilities disavowing the candidacy and stating that the person will not accept nomination or take office if elected: provided that, if the election at which such individual is supported as a candidate is to take place within five days after the person's learning of the above-specified activities, the individual shall file the statement disavowing the candidacy within one day; or (c) Announces or files a declaration of candidacy for office. (3) “Cash”, currency, coin, United States postage stamps, or any negotiable instrument which can be transferred from one person to another person without the signature or endorsement of the transferor. (4) “Committee”, a person or any combination of persons, who accepts contributions or makes expenditures for the primary or incidental purpose of influencing or attempting to influence the action of voters for or against the nomination or election to public office of one or more candidates or the qualification, passage or defeat of any ballot measure or for the purpose of paving a previously incurred campaign debt or obligation of a candidate or the debts or obligations of a committee or for the purpose of contributing funds to another committee. (5) “Committee”, does not include: (a) A person or combination of persons, if neither the aggregate of expenditures made nor the aggregate of contributions received during a calendar year exceeds five hundred dollars and if no single contributor has contributed more than two hundred fifty dollars of such aggregate contributions; (b) An individual, other than a candidate, who accepts no contributions and who deals only with the individual's own funds or property; (c) A corporation, cooperative association, partnership, proprietorship, or joint venture organized or operated for a primary or principal purpose other than that of influencing or attempting to influence the action of voters for or against the nomination or election to public office of one or more candidates or the qualification, passage or defeat of any ballot measure, and it accepts no contributions, and all expenditures it makes are from its own funds or property obtained in the usual course of business or in any commercial or other transaction and which are not contributions as defined by subdivision (7) of this section; (d) A labor organization organized or operated for a primary or principal purpose other than that of influencing or attempting to influence the action of voters for or against the nomination or election to public office of one or more candidates, or the qualification, passage, or defeat of any ballot measure, and it accepts no contributions, and expenditures made by the organization are from its own funds or property received from membership dues or membership fees which were given or solicited for the purpose of supporting the normal and usual activities and functions of the organization and which are not contributions as defined by subdivision (7) of this section; (e) A person who acts as an authorized agent for a committee in soliciting or receiving contributions or in making expenditures or incurring indebtedness on behalf of the committee if such person renders to the committee treasurer or deputy treasurer or candidate, if applicable, an accurate account of each receipt or other transaction in the detail required by the treasurer to comply with all record-keeping and reporting requirements; or (f) Any department, agency, board, institution or other entity of the state or any of its subdivisions or any officer or employee thereof, acting in the person's official capacity. (6) The term "committee" includes, but is not limited to, each of the following committees: campaign committee, candidate committee, continuing committee and political party committee: (a) “Campaign committee", a committee, other than a candidate committee, which shall be formed by an individual or group of individuals to receive contributions or make expenditures and whose sole purpose is to support or oppose the qualification and passage of one or more particular ballot measures in an election or the retention of judges under the nonpartisan court plan, such committee shall be formed no later than thirty days prior to the election for which the committee receives contributions or makes expenditures, and which shall terminate the later of either thirty days after the general election or upon the satisfaction of all committee debt after the general election, except that no committee retiring debt shall engage in any other activities in support of a measure for which the committee was formed: (b) “Candidate committee", a committee which shall be formed by a candidate to receive contributions or make expenditures in behalf of the person's candidacy and which shall continue in existence for use by an elected candidate or which shall terminate the later of either thirty days alter the general election for a candidate who was not elected or upon the satisfaction of all committee debt alter the election, except that no committee retiring debt shall engage in any other activities in support of the candidate for which the committee was formed. Any candidate for elective office shall have only one candidate committee for the elective office sought, which is controlled directly by the candidate for the purpose of making expenditures. A candidate committee is presumed to be under the control and direction of the candidate unless the candidate files an affidavit with the appropriate officer stating that the committee is acting without control or direction on the candidate's part: (c) “Continuing committee", a committee of continuing existence which is not formed, controlled or directed by a candidate, and is a committee other than a candidate committee or campaign committee, whose primary or incidental purpose is to receive contributions or make expenditures to influence or attempt to influence the action of voters whether or not a particular candidate or candidates or a particular ballot measure or measures to be supported or opposed has been determined at the time the committee is required to file any statement or report pursuant to the provisions of this chapter. "Continuing committee" includes, but is not limited to, any committee organized or sponsored by a business entity, a labor organization, a professional association, a trade or business association, a club or other organization and whose primary purpose is to solicit, accept and use contributions from the members, employees or stockholders of such entity and any individual or group of individuals who accept and use contributions to influence or attempt to influence the action of voters. Such committee shall be formed no later than sixty days prior to the election for which the committee receives contributions or makes expenditures: and (d) “Connected organization", any organization such as a corporation, a labor organization, a membership organization, a cooperative, or trade or professional association which expends funds or provides services or facilities to establish, administer or maintain a committee or to solicit contributions to a committee from its members, officers, directors, employees or security holders. An organization shall be deemed to be the connected organization if more than fifty percent of the persons making contributions to the committee during the current calendar year are members, officers, directors, employees or security holders of such organization or their spouses. (7) “Contribution”, a payment, gift, loan, advance, deposit, or donation of money or anything of value for the purpose of supporting or opposing the nomination or election of any candidate for public office or the qualification, passage or defeat of any ballot measure, or for the support of any committee supporting or opposing candidates or ballot measures or for paving debts or obligations ok any candidate or committee previously incurred for the above purposes. A contribution of anything of value shall be deemed to have a money value equivalent to the fair market value. "Contribution" includes, but is not limited to: (a) A candidate's own money or property used in support of the person's candidacy other than expense of the candidate's food, lodging, travel, and payment of any fee necessary to the filing for public office; (b) Payment by any person, other than a candidate or committee, to compensate another person for services rendered to that candidate or committee; (c) Receipts from the sale of goods and services, including the sale of advertising space in a brochure, booklet, program or pamphlet of a candidate or committee and the sale of tickets or political merchandise; (d) Receipts from fund-raising events including testimonial affairs; (e) Any loan, guarantee of a loan, cancellation or forgiveness of a loan or debt or other obligation by a third party, or payment of a loan or debt or other obligation by a third party if the loan or debt or other obligation was contracted, used, or intended, in whole or in part, for use in an election campaign or used or intended for the payment of such debts or obligations of a candidate or committee previously incurred, or which was made or received by a committee: (f) Funds received by a committee which are transferred to such committee from another committee or other source, except funds received by a candidate committee as a transfer of funds from another candidate committee controlled by the same candidate but such transfer shall be included in the disclosure reports; (g) Facilities, office space or equipment supplied by any person to a candidate or committee without charge or at reduced charges, except gratuitous space for meeting purposes which is made available regularly to the public, including other candidates or committees, on an equal basis for similar purposes on the same conditions; and (h) The direct or indirect payment by any person, other than a connected organization, of the costs of establishing, administering, or maintaining a committee, including legal, accounting and computer sendees, fund raising and solicitation of contributions for a committee. (8) “Contribution” does not include: (a) Ordinary home hospitality or services provided without compensation by individuals volunteering their time in support of or in opposition to a candidate, committee or ballot measure, nor the necessary and ordinary personal expenses of such volunteers incidental to the performance of voluntary activities, so long as no compensation is directly or indirectly asked or given; (b) An offer or tender of a contribution which is expressly and unconditionally rejected and returned to the donor within ten business days after receipt or transmitted to the state treasurer; (c) Interest earned on deposit of committee funds; or (d) The costs incurred by any connected organization listed pursuant to subdivision (4) of subsection 5 of section 130.021. RSMo, as amended from time to time, for establishing, administering or maintaining a committee, or for the solicitation of contributions to a committee which solicitation is solely directed or related to the members, officers, directors, employees or security holders of the connected organization. (9) “County”, any one of the several counties of this state or the city of St. Louis. (10) “Disclosure report", an itemized report of receipts, expenditures and incurred indebtedness which is prepared on forms approved by the Missouri ethics commission and filed at the times and places prescribed. (11) “Election”, any primary, general or special election held to nominate or elect an individual to public office, to retain or recall an elected officeholder or to submit a ballot measure to the voters, and any caucus or other meeting of a political party or a political party committee at which that party's candidate or candidates for public office are officially selected. A primary election and the succeeding general election shall be considered separate elections. (12) “Expenditure”, a payment, advance, conveyance, deposit, donation or contribution of money or anything of value for the purpose of supporting or opposing the nomination or election of any candidate for public office or the qualification or passage of any ballot measure or for the support of any committee which in turn supports or opposes any candidate or ballot measure or for the purpose of paving a previously incurred campaign debt or obligation of a candidate or the debts or obligations of a committee; a payment, or an agreement or promise to pay, money or anything of value, including a candidate's own money or property, for the purchase of goods, services, property, facilities or anything of value for the purpose of supporting or opposing the nomination or election of any candidate for public office or the qualification or passage of any ballot measure or for the support of any committee which in turn supports or opposes any candidate or ballot measure or for the purpose of paving a previously incurred campaign debt or obligation of a candidate or the debts or obligations of a committee. An expenditure of anything of value shall be deemed to have a money value equivalent to the fair market value. "Expenditure" includes, but is not limited to: (a) Payment by anyone other than a committee for services of another person rendered to such committee; (b) The purchase of tickets, goods, services or political merchandise in connection with any testimonial affair or fund-raising event of or for candidates or committees, or the purchase of advertising in a brochure, booklet, program or pamphlet of a candidate or committee; (c) The transfer of funds by one committee to another committee; and (d) The direct or indirect payment by any person, other than a connected organization for a committee, of the costs of establishing administering or maintaining a committee, including legal, accounting and computer services, fund raising and solicitation of contributions for a committee. (13) “Expenditure” does not include: (a) Any news story, commentary or editorial which is broadcast or published by any broadcasting station, newspaper, magazine or other periodical without charge to the candidate or to any person supporting or opposing a candidate or ballot measure; (b) The internal dissemination by any membership organization, proprietorship, labor organization, corporation, association or other entity of information advocating the election or defeat of a candidate or candidates or the passage or defeat of a ballot measure or measures to its directors, officers, members, employees or security holders, provided that the cost incurred is reported pursuant to subsection 2 of section 130.051. RSMo. as amended from time to time; (c) Repayment of a loan, but such repayment shall be indicated in required reports; (d) The rendering of voluntary personal services by an individual of the sort commonly performed by volunteer campaign workers and the payment by such individual of the individual's necessary and ordinary personal expenses incidental to such volunteer activity, provided no compensation is directly or indirectly, asked or given; (e) The costs incurred by any connected organization listed pursuant to subdivision (4) of subsection 5 of section 130.021. RSMo. as amended from time to time, for establishing, administering or maintaining a committee, or for the solicitation of contributions to a committee which solicitation is solely directed or related to the members, officers, directors, employees or security holders of the connected organization; or (f) The use of a candidate's own money or property for expense of the candidate's personal food, lodging, travel, and payment of any fee necessary to the filing for public office, if such expense is not reimbursed to the candidate from any source. (14) “Exploratory committees", a committee which shall be formed by an individual to receive contributions and make expenditures on behalf of this individual in determining whether or not the individual seeks elective office. Such committee shall terminate no later than December thirty-first of the year prior to the general election for the possible office. (15) “Fund-raising event", an event such as a dinner, luncheon, reception, coffee, testimonial, rally, auction or similar affair through which contributions are solicited or received by such means as the purchase of tickets, payment of attendance fees, donations for prizes or through the purchase of goods, services or political merchandise. (16) “In-kind contribution" or "in-kind expenditure", a contribution or expenditure in a form other than money. (17) “Labor organization", any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work. (18) “Loan”, a transfer of money, property or anything of ascertainable monetary value in exchange for an obligation, conditional or not, to repay in whole or in part and which was contracted, used, or intended for use in an election campaign, or which was made or received by a committee or which was contracted, used, or intended to pay previously incurred campaign debts or obligations of a candidate or the debts or obligations of a committee. (19) “Person”, an individual, group of individuals, corporation, partnership, committee, proprietorship, joint venture, any department, agency, board, institution or other entity of the state or any of its political subdivisions, union, labor organization, trade or professional or business association, association, political party or any executive committee thereof, or any other club or organization however constituted or any officer or employee of such entity acting in the person's official capacity. (20) “Political action committee", a committee of continuing existence which is not formed, controlled or directed by a candidate, and is a committee other than a candidate committee, political party committee, campaign committee, exploratory committee, or debt service committee, whose primary or incidental purpose is to receive contributions or make expenditures to influence or attempt to influence the action of voters whether or not a particular candidate or candidates or a particular ballot measure or measures to be supported or opposed has been determined at the time the committee is required to file any statement or report pursuant to the provisions of this chapter. Such a committee includes, but is not limited to any committee organized or sponsored by a business entity, a labor organization, a professional association, a trade or business association, a club or other organization and whose primary purpose is to solicit, accept and use contributions from the members, employees or stockholders of such entity and any individual or group of individuals who accept and use contributions to influence or attempt to influence the action of voters. Such committee shall be formed no later than sixty days prior to the election for which the committee receives contributions or makes expenditures. (21) “Political merchandise", goods such as bumper stickers, pins, hats, ties, jewelry, literature, or other items sold or distributed at a fund-raising event or to the general public for publicity or for the purpose of raising funds to be used in supporting or opposing a candidate for nomination or election or in supporting or opposing the qualification, passage or defeat of a ballot measure. (22) “Political party", a political party which has the right under law to have the names of its candidates listed on the ballot in a general election. (23) “Political party committee", a state, district, county, city, or area committee of a political party, as defined in section 115.603. RSMo. as amended from time to time, which may be organized as a not- for-profit corporation under Missouri law, and which committee is of continuing existence, and has the primary or incidental purpose of receiving contributions and making expenditures to influence or attempt to influence the action of voters on behalf of the political party. (24) “Public office" or "office", any state, judicial, county, municipal, school or other district, ward, township, or other political subdivision office or any political party office which is filled by a vote of registered voters. (25) “Write-in candidate", an individual whose name is not printed on the ballot but who otherwise meets the definition of candidate in subdivision (2) of this section. 8. The provisions of this section are self-executing. All of the provisions of this section are severable. If any provision of this section is found by a court of competent jurisdiction to be unconstitutional or unconstitutionally enacted, the remaining provisions of this section shall be and remain valid.

Full text

The full text of the measure is available here.

Background

See also: Missouri Campaign Contribution Limits, Proposition A (1994)

In 1994, 74 percent of Missouri voters approved Proposition A. The measure enacted a law to limit campaign contributions to persons or committees by persons or committees to $100 and $200 per election cycle, depending on the population of the political district. The measure also limited contributions to $300 for state-candidates and required disclosure by contributors of employer or occupation when contributing more than $25 per person.

The Missouri Legislature and Gov. Matt Blunt (R) repealed Proposition A in 2008.

Support

Returning Government to the People led the campaign in support of Amendment 2. Fred Sauer, an anti-abortion advocate and founder of Orion Investment Company, developed the initiative. Todd Jones wrote the constitutional amendment.

Supporters

Officials

• Gov. Jay Nixon (D)
• U.S. Claire McCaskill (D)
• Attorney General Chris Koster (D)
• Sen. Rob Schaaf (R-34)

Organizations

• Represent.Us

Arguments

Fred Sauer, the individual who initiated the amendment, said:

“

Campaign contribution limits are in the best interest of everyone in the state, both citizen and legislator. By reducing the extraordinary rivers of cash flowing from wealthy donors into Jefferson City, the (proposed amendment) will better assure that our government is truly representative of the people, and in turn provide an environment in which freedom and the will of the people can flourish.

”

Attorney General Chris Koster (D) stated:

“

What we do know is that transparency is not occurring. And that contributions have gotten massively larger. And they are still hidden. And so, it’s clear that regular people in the state feel increasingly disconnected from their political system. And it seems to me that this can’t go on or shouldn’t go on at least.

”

Gov. Jay Nixon (D) said:

“

The last time this was on the ballot, Missourians supported campaign limits by 70%. Now, there will still be money in politics, but the bottom is I think this provides Missourians a direct opportunity in three-and-a-half weeks to say let’s change it here in Missouri.

”

Other arguments in support of the amendment included:

• U.S. Sen. Claire McCaskill (D) contended, “[Missouri has] the worst campaign finance and ethics laws in the country. It is disgusting, all of the dark money.”
• Todd Jones wrote the constitutional amendment. He argued: “If you give a million dollars to a candidate, whose call are you going to take? Are you going to take mine? Or are you going to take the donor's? So there’s a lot of issues with undue influence and impact that donation has on the actual politician.”
• The League of Women Voters of Missouri summarized support and oppositions arguments. The supporting argument was: "This amendment is probably the only way to enact contribution limits that then cannot be overturned by the legislature. It is important that Missouri do something about campaign contributions and this is a start."

Opposition

Opponents

• Eric Greitens (R), 2016 gubernatorial candidate

Arguments

• A spokesperson for Eric Greitens (R), a 2016 gubernatorial candidate, stated, "Eric is opposed to campaign finance laws that favor entrenched career politicians and wealthy self-funding candidates over political outsiders and those who challenge the political status quo."
• The League of Women Voters of Missouri summarized support and oppositions arguments. The opposing argument was: "Some groups say that this does not go far enough to control campaign finance problems."
• Missouri Electric Cooperatives and Legends Bank filed litigation arguing that Amendment 2 is "an unreasonable restriction on speech and freedom of association in violation of the First Amendment to the United States Constitution and Article I, section 8 of the Missouri Constitution."

Campaign finance

See also: Ballot measure campaign finance, 2016 and Campaign finance requirements for Missouri ballot measures

Total campaign contributions:
Support:	$1,553,000.00
Opposition:	$0.00

One campaign committee, Returning Government to the People, was registered in support of Amendment 2, while none were registered in opposition. The contribution and expenditure totals below were current as of December 14, 2016.

Support

PAC	Amount raised	Amount spent
Returning Government to the People	$1,553,000.00	$1,518,244.93
Total	$1,553,000.00	$1,518,244.93

The following were donors who contributed to the Returning the Government to the People committee as of December 14, 2016:

Donor	Amount
Fred N. Sauer	$1,553,000.00

Media editorials

Support

• Hannibal Courier-Post said: “Vote “yes” on Amendment 2. It is an ethical choice to somewhat level the playing in Missouri, a state wracked with ethical issues in recent months.”
• The Kansas City Star said: "Missourians voted in 1994 to establish campaign contribution limits, but the GOP-led General Assembly tossed out contribution limits in 2008. It is past time for that wrongheaded decision to be reversed. There is no way to justify permitting any individual or organization to invest such exorbitant sums in one candidate or issue. This kind of obscene exercise makes even the most ethical candidate open to the threat of ignoring ordinary citizens to respond to a constituent of one."
• St. Louis Post-Dispatch said: "But passing it would tell Missouri politicians that voters are fed up with six- and seven-figure donations from those with business before the state; fed up with people collecting state lawmakers like baseball cards; fed up with anonymous dark-money contributions and the skullduggery of front groups and committee transfers; fed up with a system that benefits campaign consultants, influence peddlers and TV stations at the public’s expense."

Opposition

• The Herald-Whig said: "While we believe there's a need to rein in exorbitant spending, reduce the influence of big money that has helped fuel a raft of ethical problems in the state and create more transparency on the source of campaign funding, this amendment is a poorly crafted overreach. This issue, along with enacting more stringent ethics measures, should be addressed through legislation, not a constitutional amendment."

Polls

See also: Polls, 2016 ballot measures

• In late-September 2016, Remington Research Group surveyed 1,279 likely Missouri voters on Amendment 2. Approximately 64 percent of respondents supported the measure, while 24 percent opposed it.
• In late-October 2016, Mason-Dixon Polling & Research surveyed 625 voters and found 76 percent of respondents supporting the amendment.

Missouri Amendment 2 (2016)
Poll	Support	Oppose	Undecided	Margin of error	Sample size
Mason-Dixon Polling & Research 10/24/2016 - 10/26/2016	76.0%	15.0%	9.0%	+/-4.0	625
Remington Research Group 9/26/2016 - 9/27/2016	64.0%	24.0%	22.0%	+/-3.0	1,279
AVERAGES	70%	19.5%	15.5%	+/-3.5	952
Note: The polls above may not reflect all polls that have been conducted in this race. Those displayed are a random sampling chosen by Ballotpedia staff. If you would like to nominate another poll for inclusion in the table, send an email to [email protected].

Path to the ballot

See also: Laws governing the initiative process in Missouri

The supporting group needed to turn in at least 157,788 valid signatures. Missouri law states that signatures must be obtained from registered voters equal to 8 percent of the total votes cast in the most recent governor's election from 6 of the state's 8 congressional districts.

Supporters filed signatures with the secretary of state's office by the deadline on May 8, 2016. Constitutional Amendment 2 was certified on August 9, 2016.

Cost of signature collection:
Sponsors of the measure hired National Ballot Access to collect signatures for the petition to qualify this measure for the ballot. A total of $1,064,338.99 was spent to collect the 157,788 valid signatures required to put this measure before voters, resulting in a total cost per required signature (CPRS) of $6.75.

Lawsuits

  

Lawsuit overview
Issue: Constitutionality of campaign contribution limits on specific kinds of corporations
Court: Filed in Cole County Circuit Court; appealed to Missouri Supreme Court
Ruling: Ruled in favor of defendant in circuit court and dismissed by the supreme court; the possibility remained for a lawsuit challenging the constitutionality of Amendment 2 after the election.
Plaintiff(s): Missouri Electric Cooperatives and Legends Bank	Defendant(s): Secretary of State Jason Kander
Plaintiff argument: Amendment 2 violates the Equal Protection Clause by placing different contributions limits for banks and corporations	Defendant argument: The opponents' arguments are meritless, and restrictions on banks and corporations limit corruption.

  Source: St. Louis Public Radio

On August 4, 2016, Missouri Electric Cooperatives and Legends Bank filed litigation against Secretary of State Jason Kander (D), alleging Amendment 2 was "an unreasonable restriction on speech and freedom of association in violation of the First Amendment to the United States Constitution and Article I, section 8 of the Missouri Constitution."

Judge Patricia S. Joyce of the Cole County Circuit Court declared the initiative constitutional on August 25, 2016. She said, "Because state-chartered banks and utilities operate in highly regulated industries, the risk of corruption or the appearance of corruption is heightened, and thus the First Amendment permits the ballot initiative to impose more stringent contribution limitations on these entities than on other corporations."

On September 20, the Missouri Supreme Court denied the appeal. Fred Sauer, sponsor of Amendment 2, responded, "We are gratified to learn that the Supreme Court of Missouri has denied the plaintiffs' meritless application for transfer." Chuck Hatfield, an attorney representing the plaintiffs, stated, "All options are post-election."

State profile

Demographic data for Missouri
	Missouri	U.S.
Total population:	6,076,204	316,515,021
Land area (sq mi):	68,742	3,531,905
Race and ethnicity**
White:	82.6%	73.6%
Black/African American:	11.5%	12.6%
Asian:	1.8%	5.1%
Native American:	0.4%	0.8%
Pacific Islander:	0.1%	0.2%
Two or more:	2.4%	3%
Hispanic/Latino:	3.9%	17.1%
Education
High school graduation rate:	88.4%	86.7%
College graduation rate:	27.1%	29.8%
Income
Median household income:	$48,173	$53,889
Persons below poverty level:	18.2%	11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Missouri. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

Presidential voting pattern

See also: Presidential voting trends in Missouri

Missouri voted Republican in all six presidential elections between 2000 and 2020.

More Missouri coverage on Ballotpedia

• Elections in Missouri
• United States congressional delegations from Missouri
• Public policy in Missouri
• Endorsers in Missouri
• Missouri fact checks
• More...

Related measures

Campaign finance measures on the ballot in 2016
State	Measures
Washington	Washington State-Provided Campaign Financing Funded by a Non-Resident Sales Tax, Initiative 1464 d
California	California Proposition 59, Overturn of Citizens United Act Advisory Question a

Recent news

The link below is to the most recent stories in a Google news search for the terms Missouri Amendment 2 2016 Campaign Contributions. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Missouri State and Judicial Campaign Contribution Limits, Constitutional Amendment 2 (2016) - Google News

See also

Suggest a link

• 2016 ballot measures
• Missouri 2016 ballot measures
• Laws governing the initiative process in Missouri

External links

• Petition for Amendment 2
• Missouri 2016 Ballot Measures
• League of Women Voters of Missouri 2016 Ballot Issues Guide