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Business groups ask Montana Supreme Court to block political spending initiative

Montana Chamber of Commerce
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HELENA — A group of business organizations is asking the Montana Supreme Court to block a proposed ballot measure aimed at keeping corporations from spending money in the state’s elections.

Plaintiffs – including the Montana Mining Association, Montana Chamber of Commerce, Montana Contractors Association and Montana Stockgrowers Association – are arguing Initiative 194 is clearly unconstitutional and won’t survive a court challenge if it becomes law. They’ve asked the court to stop it now, while supporters are still gathering signatures to get it on the ballot.

“I think it wastes a lot of people's energy and time and money to have a ballot initiative campaign,” said Charles Robison, general counsel for the Montana Chamber. “The Montana Supreme Court has said clearly before that if a proposed initiative is clearly unconstitutional, then there is no point in putting it before the voters and having people draw the incorrect assumption that what they're voting on is actually lawful.”

I-194 is sponsored by the Transparent Election Initiative, as part of what it calls “The Montana Plan.” It’s an attempt to go around the federal Citizens United decision by redefining the powers of corporations and other “artificial persons” to exclude spending money in elections. It would say any entity that spends in violation of that direction would forfeit its privileges under state law and have to get in compliance before asking for reinstatement.

Last week, Attorney General Austin Knudsen’s office ruled I-194 met the technical requirements to move forward to signature gathering. However, they said, because of previous court rulings, they were not able to rule on whether the content of a proposed ballot measure is unconstitutional.

Robison said businesses have legitimate reasons to weigh in on state and local ballot issues that they think would either harm the economic climate or benefit business development. He said I-194 would erode First Amendment rights.
“We all just live and breathe in this world where our free speech is protected,” he said. “Freedom of the press is really important, and freedom of speech is right there next to it – and the ability to speak our mind and to pool our efforts collectively and speak our mind collectively is just as important, and the Supreme Court has said that.”

Jeff Mangan, the founder of TEI and the main sponsor of I-194, told MTN business owners would still have ways to make their voices heard if the initiative passes.

“They just have to form a separate PAC and raise money from individuals, just like any other PAC, so that avenue is absolutely available to them,” he said.

In order for I-194 to qualify for the November ballot, TEI will need signatures from at least 30,121 registered voters, including a minimum number in at least 34 of Montana’s 100 state legislative districts.