Ninth Circuit Upholds Ban on Contributions by Government Contractors and Other Disclosure Requirements in Hawaii

The United States Court of Appeals for the Ninth Circuit recently upheld a number of Hawaii’s contribution and disclosure requirements, thus cementing the legacy of Citizens United’s defense of transparency in campaign contributions and further strengthening the legality of outright bans on campaign contributions by government contractors.

The decision, citing to Citizens United, determined that Hawaii’s reporting and disclosure requirements, which require that “noncandidate committees” seeking to influence elections must file certain reports and identifying information related to their electioneering communications, survived exacting scrutiny and served the important governmental interest of informing the public about who is speaking in favor or opposition to a particular candidate.

Further, the decision upheld Hawaii’s outright ban on political contributions by entities that have contracts or perform services for the government. Relying on the Second Circuit’s decision in Green Party of Connecticut vs. Garfield, which upheld such a ban in Connecticut, the court reasoned that the history of pay-to-play scandals in a state can serve as a justification for actions which prohibit quid pro quo corruption, or even the appearance thereof.

The Ninth Circuit’s decision serves as a timely reminder that although Citizens United paved the way for big spending in elections, certain restrictions and disclosure requirements have persisted. Government contractors especially should consider the decision a clarion call that pay-to-play restrictions are here to stay.