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Fountain Hills tries to shut down tax protester with campaign finance laws
Judge: Fountain Hills resident can stage bond protests by Edward Gately - Nov. 4, 2011 11:00 AM The Arizona Republic A Fountain Hills resident is free to stage protests in opposition to the town's $29.6 million bond proposal without having to comply with state campaign-finance law, a federal judge has ruled. U.S. District Judge James Teilborg granted Dina Galassini's motion for a preliminary injunction on Thursday, exempting her from having to register as a political committee or file a $500 threshold exemption statement. The order takes effect immediately and will expire after the Nov. 8 bond election. "Following the preliminary injunction hearing in this matter, the court finds that (Galassini) has established serious questions as to the constitutionality of the statutes at issue," Teilborg said in his order. "Further, at this stage, defendants have not met their burden of establishing that the statutes are sufficiently related to an important government interest as they apply to (Galassini)." Galassini told the judge she still wants to stage at least one protest before the election. "I am gratified that the court has protected my right to gather together with my friends and neighbors to speak our minds without having to register with the government," she said. The Institute for Justice, a national public-interest law firm, filed the motion on Galassini's behalf. The town of Fountain Hills, Town Attorney Andrew McGuire and Town Clerk Bev Bender were named as defendants. "The preliminary injunction is just the first step in this case," said Paul Avelar, a staff attorney for the Institute for Justice Arizona chapter. "We will now move on to litigating the merits and demonstrate again how these laws inhibit the ability of ordinary Americans to speak and participate in the political process." Town officials were unavailable for comment when Teilborg issued his ruling late Thursday. Last week, U.S. District Judge Susan Bolton denied Galassini's request for an emergency restraining order that would have accomplished the same thing as this week's preliminary injunction. At issue was a letter Bender sent to Galassini while she was rallying opposition and planning two street-corner protests. On Oct. 6, Galassini sent an e-mail to 23 Fountain Hills residents making them aware of the bond election, stating her opposition, asking them to write letters to a local newspaper and naming two protests where recipients were encouraged to show up with signs to make passers-by aware of their opposition. She also encouraged recipients to forward her e-mail to other residents and encourage them to attend the protests. The town is asking voters to approve the bonds for a series of street improvements. The bonds would be repaid over 15 years by an increase in property taxes during that period. On Oct. 12, Galassini received Bender's letter saying she needed to file a statement of organization in the Town Clerk's office prior to any electioneering taking place. Galassini said Bender's letter made her "stunned, afraid and confused." During an evidentiary hearing Thursday, David Pennartz, an attorney representing the town, McGuire and Bender, said Bender never used any threatening language in her correspondence. He also said Bender offered to talk on the phone and meet with Galassini to provide assistance, but Galassini refused. "No one told (Galassini) you can't stand on a street corner and hold signs and protest the bond election," he said. Galassini told the court that trying to comply with campaign-finance law was too confusing and burdensome, so she just gave up. In addition to signing the $500 exemption statement, Galassini would have been required to name a chairperson and treasurer, and track expenses and contributions to ensure the total didn't exceed $500. If the total did run over $500, she would have to register as a political committee. There also are additional requirements for reporting finances. Assistant Attorney General James Barton II represented the state in the case, and said the exemption statement constitutes a "minimum requirement."
Fountain Hills group challenges political-committee law by Edward Gately - Oct. 27, 2011 12:00 AM The Arizona Republic All Dina Galassini wanted to do was rally her friends and neighbors to oppose an upcoming $29.6 million bond proposal that will go before Fountain Hills voters on Nov. 8. What she didn't know was that if she involved even one other resident in her opposition, it would be considered a political committee and she would need to file as a political committee under Arizona law. A letter sent to Galassini from Fountain Hills Town Clerk Bev Bender put it this way: "I would strongly encourage you to cease any campaign related activities until the requirements of the law have been met." Now, the Institute for Justice, a national public-interest law firm, has filed a First Amendment lawsuit in the U.S. District Court for the District of Arizona on Galassini's behalf. The suit seeks a temporary restraining order telling Fountain Hills that the state's campaign-finance law cannot be applied to Galassini during this election. The group also is taking on the state law itself. "We are also trying to overturn the law. That law is unconstitutional," said Paul Avelar, a staff attorney for the Institute for Justice Arizona chapter. "There's the larger litigation where we actually go through and show the court why the law is unconstitutional." Julie Ghetti, Fountain Hills' interim town manager and finance director, confirmed the town was aware of the group's action. "Town staff has not yet seen the claim and therefore have not had an opportunity to review it," Ghetti said. On Oct. 6, Galassini sent an e-mail to 23 Fountain Hills residents making them aware of the election, stating her opposition to the bond proposals, asking them to write letters to a local paper, the Fountain Hills Times, and naming two street-corner protests where recipients were encouraged to show up with signs to make passers-by aware of their opposition. On Oct. 12, Galassini received Bender's letter saying she needed to file a statement of organization in the Town Clerk's Office prior to any electioneering taking place. "I was stunned to learn that I needed to register with the government just to talk to people in my community about a political issue," Galassini said. "All I could think was, 'How can this be allowed under the First Amendment?' " After receiving the letter, Galassini sent an e-mail to Bender saying she would stop all e-mails and not hold a rally. According to the suit, the state's campaign-finance laws impose a "prior restraint on the exercise of core political speech - in this case, grassroots advocacy opposing a municipal bond issuance in Fountain Hills" The suit adds, "Unfortunately, under Arizona law, this sort of grassroots activity triggers the campaign-finance laws, threatening even small groups of citizens who simply wish to speak with fines up to $1,000 unless they first register with the government and submit to a host of burdensome regulations." Matthew Roberts, spokesman for the Arizona Secretary of State's Office, verified that multiples of people coming together would meet state requirements for a political committee. "In this case, they wouldn't be spending a lot of money, so we have a category for just this sort of outreach," he said. "They do not file a statement of organization, just a $500 threshold exemption statement and they do not have to provide any bank information that a standard committee would. If a political committee has filed this threshold statement and makes expenditures above $500, then they will have to file a statement of organization." Roberts said if residents forget or are unaware that they have to file, they can do so without threat of penalty. |