Montana initiative regulating corporate election spending faces legal challenges

HELENA, Mont. – The Transparent Election Initiative (TEI) advanced with a Montana supreme court lawsuit regarding how to summarize its constitutional initiative to stop corporate spending in state elections.

The lawsuit is one of several legal battles in the last six months that have refined TEI’s “Montana Plan” and its goal to get its legislation out of the courtroom and onto the ballot.

In the most recent lawsuit about the initiative, TEI accused Attorney General Austin Knudsen and Secretary of State Christi Jacobsen of changing the ballot summary in a way that “fails to provide a true and impartial explanation” and that is “argumentative and prejudicial.”

TEI lawsuit against Montana AG

In TEI’s lawsuit, which it filed on May 5, it said Knudsen described the initiative as a “regulatory prohibition affecting constitutional rights” rather than as a “power-defining amendment.

“These editorial choices create a prejudicial presentation that encourages voters to view the initiative negatively rather than to understand its actual effects,” TEI wrote in its lawsuit.

TEI concluded its lawsuit with a slightly amended version of its original ballot description. It defended its original description, the one that Knudsen adjusted, but admitted that one of Knudsen’s several changes was helpful and agreed to adopt it. The addition clarified that the initiative would affect nonprofits and unions in addition to corporations.

The Montana Supreme Court filed a response to the lawsuit the next day. The response did not provide a ruling, but it did order Knudsen and Jacobsen to file and serve a response to the lawsuit by May 18.

Montana Supreme Court orders Montana AG to respond

CI-135 is one of two ballot issues submitted by TEI. Both issues are very similar and seek to restrict “artificial persons” from spending money to influence elections.

CI-135, which appears as Ballot Issue 9, is a constitutional initiative, takes 50% approval from voters and legislatures to go into effect. TEI’s other effort is I-194, which appears as Ballot Issue 10. I-194 is a simple ballot measure and only takes 50% of voters distributed across Montana to go into effect.

Both initiatives will need to acquire enough signatures by June 19 in order to appear on the November election ballot.

TEI’s website says that its goal is to change state laws to defy “Citizens United,” a 2010 U.S. Supreme Court decision to allow corporations to spend money in political campaigns as if they were citizens.

“Montanans deserve the right to vote on whether the principle that political rights belong to natural persons – not corporations – should be enshrined in their constitution,” TEI leader Jeff Mangan said in a March 11 announcement about I-194.

Knudsen challenged TEI’s first attempt at a constitutional initiative establishing rules for corporations, which resulted in it being struck down by the Montana Supreme Court on Jan. 6.

Two days later, TEI revised its initiative to accommodate Knudsen and the Supreme Court’s objections. Knudsen challenged it again, but the Supreme Court rejected his objections on April 1, allowing the initiative to proceed.

TEI has gathered bipartisan support for its “Montana Plan.” On May 17, former U.S. Secretary of Transportation Pete Buttigieg will speak in Butte in support of the plan.

Up-to-date ballot issues, including CI-135 and I-194, can be found online at the Montana Secretary of State website.