Montana industries sue to block ballot initiative on corporate spending in elections

Heavy-hitters in Montana’s industry organizations have sued to block a ballot initiative campaign seeking to ban corporate spending in state elections.

The petition filed with the Montana Supreme Court this week claims the proposal violates constitutional free speech rights on which the 2010 landmark case called Citizens United turned.

“Accordingly, corporations and other entities enjoy the same protections as individuals when it comes to donating money to political causes,” attorneys for the industry groups wrote in the March 16 petition to the Supreme Court.

Th Citizens United decision that took the cap off corporate spending in elections is one of the core reasons former Montana Commissioner of Political Practices Jeff Mangan set out with a ballot initiative to take away corporate powers in state law to contribute to political candidates and causes.

That ballot initiative campaign is going under the name Transparent Election Initiative and was approved last week to begin gathering signatures.

The TEI campaign hit back on Thursday, tying the lawsuit to the corporate interests it’s working to distance from Montana politics.

“Montana has a long history of powerful corporate interests trying to control our politics and shut out the voices of ordinary citizens,” Mangan said. “Just like the Copper Kings, these modern corporate barons will do anything to protect their grip on political power — even if it means trying to stop Montanans from having their say.”

This is the second round TEI has made through the state Supreme Court. An earlier version of the proposal, originally written as a constitutional amendment, was blocked because the court said it touched too many parts of the constitution to allow Montanans to cast an informed vote. This version would make the changes in state law, which resolves the constitutional issues.

The industry groups now looking to block that campaign include the Montana Mining Association, the Montana Stockgrowers Association, the Montana Chamber of Commerce and others.

In 2018, mining companies like Hecla Mining Company, Sibanye Stillwater and Montana Resources poured nearly $6 million into the Montana Mining Association to fight a ballot initiative to deny all permit requests for hardrock mines that required continuous water treatment. That ballot initiative, called I-186, ultimately failed by more than 10 percentage points.

This week’s petition names as defendants Montana Secretary of State Christi Jacobsen, who administers the initiative process, and Montana Attorney General Austin Knudsen, who approved the ballot initiative for legal sufficiency. Knudsen’s office found the first version of TEI’s ballot initiative did not pass legal muster largely due to the constitutional issues.

The groups also argue the proposal is unconstitutionally vague because it restricts corporations from contributing “anything of value” to support or oppose a campaign. This, their attorneys said, could mean offering space to a political group or allowing an employee to volunteer time to an election-related cause.

Violating this new law, if passed by the voters, would be severe: Any corporation caught donating to political causes could lose their privilege to do business in Montana.

“The result ... given its vague terms and its mandatory sanctions, will be a massive chilling on political discourse in Montana,” the attorneys wrote.

The Supreme Court has not yet determined whether it will grant the petition to hear the case.

Mangan told the Montana State News Bureau the campaign will seek to intervene in the case.

In a press release, TEI said it will continue signature gathering while the legal challenge plays out. The campaign added that more than 600 volunteers across the state have signed up to collect signatures.

The campaign needs a little more than 30,000 by late June to reach the general election ballot.