Montana law faces immediate legal test
A coalition of business and political groups filed suit against I-194 one day after voters approved the corporate spending limit.
By Nadia Rahman ·
Montana businesses and political organizations must now litigate to determine if they can spend money in state elections. A federal lawsuit was filed on Thursday, November 5, challenging Initiative 194. The measure was approved by voters on Tuesday, November 3. The legal action was filed less than 48 hours after the polls closed.
Kendall Cotton, president and CEO of the Frontier Institute, stated that the measure restricts the ability of local businesses and nonprofits to discuss proposals affecting Montana. The plaintiffs argue that the state is conditioning the legal status of these organizations on their silence regarding elections. Cotton noted that the legal theory could extend to other aspects of corporate existence if upheld.
The suit was filed by the Frontier Institute, the Frontier Action Fund, the Montana Family Foundation, and the Montana Republican Party. These groups claim that the initiative violates a constitutionally protected right to political speech. They contend that the law forces artificial persons to give up that right in order to operate within the state.
Initiative 194, also known as the Montana Plan, seeks to bypass the federal Citizens United decision. The measure redefines the powers of corporations and other artificial persons to exclude campaign expenditures. Supporters of the plan argue that states possess the authority to set the limits of these entities. The Transparent Election Initiative, which introduced the measure, released a statement on Thursday.
Jeff Mangan, founder and president of the Transparent Election Initiative, said the group expected a lawsuit from day one. Mangan described the legal challenge as part of a larger campaign to silence the will of the people. He stated that no single ruling would determine the future of the movement and that every state adopting the approach creates another opportunity to make the legal case.
The plaintiffs are represented by attorneys from the Institute for Free Speech. The national organization is also pursuing a challenge to a similar law passed earlier this year by the Hawaii State Legislature. The lawsuit asserts that the measure actively takes away the ability of groups to speak about proposals that matter to the state. The court will now determine if the state can exclude these entities from political spending.
Voters in Montana backed the measure by almost two-thirds. The initiative aims to stop corporations from spending money in campaigns. The legal battle will proceed through hearings, decisions, and appeals. The outcome will depend on how the courts weigh the merits of the state's authority over artificial persons.
