A coalition of Montana business organizations is asking the Montana Supreme Court to block a proposed ballot initiative that would restrict corporations and other entities from spending money in state elections.
The lawsuit challenges Initiative 194, a measure backed by the Transparent Election Initiative as part of its broader “Montana Plan.” Supporters say the proposal is designed to work around the U.S. Supreme Court’s Citizens United decision by redefining the powers of corporations and other artificial entities under Montana law. Opponents argue the measure is plainly unconstitutional and should not be allowed to advance to voters.
Plaintiffs in the case include the Montana Mining Association, Montana Chamber of Commerce, Montana Contractors Association and Montana Stockgrowers Association. The groups argue the initiative would violate free speech protections and create legal uncertainty for businesses and nonprofit organizations that participate in public policy debates and ballot issue campaigns.
The proposed measure would bar certain entities from spending money to influence candidate races, political parties and ballot issue contests. It would also provide that an entity found to have violated the restriction could lose its privileges under state law until it came back into compliance.
The challenge comes even as the initiative recently cleared an initial procedural hurdle. Attorney General Austin Knudsen’s office determined last week that I-194 met the technical requirements to move forward to signature gathering. The attorney general’s office said, however, that prior court rulings limited its ability to rule on whether the substance of a proposed ballot measure is unconstitutional at that stage.
The latest proposal follows earlier setbacks for the same effort. An original version of the initiative was first rejected by the attorney general, who found it legally insufficient under Montana’s separate-vote requirement. In January, the Montana Supreme Court agreed and ruled that the earlier proposal violated the state constitution because it attempted to make multiple constitutional changes in a single measure.
After that ruling, supporters refiled a narrower version, which is now moving forward as I-194. Business groups argue the revised proposal still suffers from constitutional defects and say the court should stop it before signature gathering continues.
Supporters of the initiative maintain the measure is aimed at reducing the influence of corporate and dark money in Montana politics. Opponents counter that businesses have legitimate reasons to speak out on ballot measures and public policy issues that affect the state’s economy and business climate.
To qualify for the November ballot, supporters must gather at least 30,121 signatures from registered voters, including the required minimum in at least 34 of Montana’s 100 state House districts.