Appeals Court Says Vermont Can Limit Campaign Spending But Returns Case to Lower Court

By Larry Neumeister, Associated Press Writer

NEW YORK -- A divided federal appeals court reiterated its approval of limits in Vermont on how much political candidates can spend even if they aren't getting public funding.

The 2nd U.S. Circuit Court of Appeals in Manhattan said Wednesday in a 2-1 decision that Vermont has an important governmental interest in imposing limits to fight "the real and apparent corruption that accompanies unlimited campaign gifts."

Vermont set the limits when it passed in 1977 a comprehensive campaign finance reform package regulating contributions, expenditures and disclosures related to candidates and political organizations in state elections.

Three lawsuits challenged the law's constitutionality, saying it infringed on First Amendment rights to free speech and political association.

The appeals court first ruled in the case in August 2002 but withdrew the decision two months later "pending further proceedings."

In a 98-page decision Wednesday, the court said it found "constitutionally compelling" the need to prevent the reality and appearance of corruption. It then sent the case back to the lower court in Vermont to determine whether the Legislature might have chosen another type of regulation or higher limits that would still achieve its goals but would pose less of a threat to the First Amendment.

In a 149-page dissent, Judge Ralph Winter said the court's majority had shown great deference to the Vermont Legislature and to proponents of limits on campaign spending.

"This deference is entirely undeserved," he wrote. "When campaign finance legislation is considered by those in power, there is both motive and opportunity to craft rules that will restrain the political activity of opponents."

He predicted campaign spending limits would dramatically lessen political debate in Vermont.

A lawyer who argued on behalf of the National Voting Rights Institute in Boston, Brenda Wright, praised the ruling.

"We really view this as a major victory for reform and a decision that gives reformers an important new tool to deal with the dominance of money in politics," she said.

She added, however, that conflicting court rulings on campaign spending limits mean the issue remains unresolved.

"We all understand that the Supreme Court will have the last word," she said.

The law put limits of between $200 and $400 on contributions to candidates by individuals and political action committees and limits of $2,000 on contributions to political parties and political action committees.

Groups like Vermont Right-to-Life and state Republicans had opposed the law, arguing such limits violate the First Amendment. A lawyer for the groups did not immediately return a telephone message for comment.

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