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Arizona Free Enterprise Club’s Freedom Club PAC v. Bennett, 564 U.S. 721, 131 S.Ct. 2806, 180 L.Ed.2d 664, 79 USLW 4640, 11 Cal. Daily Op. Serv. 7920, 2011 Daily Journal D.A.R. 9489, 22 Fla. L. Weekly Fed. S 1280

Facts

The Arizona Citizens Clean Elections Act established a public financing system for state office candidates, providing initial public funds and additional matching funds based on the spending of privately financed candidates and independent groups. The matching funds provision was triggered when the expenditures of privately financed candidates exceeded the public funding allotment for publicly financed candidates. This led to a lawsuit from past and future candidates and two independent expenditure groups, who claimed the provision penalized their speech and restricted their First Amendment rights.

Issue

Does the matching funds provision of Arizona's Citizens Clean Elections Act violate the First Amendment by imposing a substantial burden on political speech?

Rule

The matching funds provision is subject to strict scrutiny because it substantially burdens political speech, and the state must demonstrate a compelling interest that justifies this burden.

Analysis

The Court found that the matching funds provision imposed a significant burden on the speech of privately financed candidates and independent expenditure groups, as it effectively penalized them for their political spending by providing additional funds to their opponents. The Court compared this situation to the 'Millionaire's Amendment' struck down in Davis v. Federal Election Commission, concluding that the Arizona law created a similar, if not greater, burden on political speech without serving a compelling state interest.

Conclusion

The Supreme Court reversed the Ninth Circuit's decision, holding that Arizona's matching funds scheme violates the First Amendment by substantially burdening protected political speech without serving a compelling state interest.

Who won?

The plaintiffs, including past and future candidates and political action committees, prevailed because the Court found that the matching funds provision imposed an unconstitutional burden on their political speech.

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