Attorney General's News Release

August 1, 2003

Nixon settles suit for largest campaign finance violation payments in state history

Jefferson City, Mo. — The Missouri Ethics Commission and the Attorney General's Office today entered a settlement agreement with the Missouri Republican Party that, when finalized by court order, will result in the Party making the largest payments in Missouri history for violations of Missouri campaign finance laws. The settlement brings to a close nearly five years of litigation initiated by the Missouri Republican Party over contributions that it made in the 1998 general election in excess of Missouri's campaign contribution limits.

"This marks the successful conclusion of a long fight to uphold the contribution limits that were enacted by a bipartisan majority of the General Assembly in 1994. Today's agreement not only ends challenges to those contribution limits, it also shows that tough enforcement and steep costs will come to those who ignore them. That sends a clear and important message to candidates as we move into the new election cycle," Attorney General Jay Nixon said.

"We have twice fought our way to the United States Supreme Court to uphold these laws. I am proud of our bipartisan Missouri Ethics Commission for staying the course against these repeated and unwarranted challenges to Missouri law. " Nixon said.

Under the terms of the agreement, the Missouri Republican Party will consent to a court judgment holding it liable for $182,675, an amount equal to the excess contributions it made to Charles Pierce, a candidate for state auditor, and Eric Zahnd, a candidate for state senate. The Party will pay $60,000 of that amount to the Missouri Ethics Commission in the next year. The Party's liability for the remaining $122,675 will suspended and ultimately extinguished, provided that it does not again make contributions in excess of the limits during a probationary period lasting until December 31, 2006. If the Party violates the contribution limits during that period, it will be liable for the full amount. Pierce, his campaign committee, or campaign treasurer will pay $5,000 to the Ethics Commission. Likewise, Zahnd, his campaign committee, or campaign treasurer will also pay $5,000 to the Ethics Commission.

The litigation between the Missouri Ethics Commission and the Missouri Republican Party began when the Commission sent notices to candidates informing them that the contributions they had received from the Party were in violation of the law. The Missouri Republican Party sued the Commission in federal court to challenge the constitutionality of the political party contribution limits. That challenge was ultimately rejected by the United States Supreme Court in Missouri Republican Party v. Lamb in 2001. That followed the Supreme Court's landmark 2000 decision in Nixon v. Shrink Missouri upholding the validity of Missouri's individual contribution limits.

After the conclusion of the federal litigation, the Missouri Republican Party, Pierce and Zahnd filed suits in state court challenging the validity of the contribution limits on state law grounds and attacking the procedures followed by the Missouri Ethics Commission in enforcing those limits. Today's settlement agreement resolves that litigation.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818