Montana AG Rejects Initiative to Ban Corporate Money in Elections

Legal Challenge Looms After Montana AG Rejects Corporate Donation Initiative

The Montana Attorney General, Austin Knudsen, has dismissed a significant ballot initiative aimed at eliminating corporate contributions to political campaigns. This initiative, spearheaded by former State Commissioner of Political Practices Jeff Mangan, seeks to prohibit any form of financial support from businesses, nonprofits, and incorporated entities that could sway electoral outcomes. Mangan has indicated plans to take legal action against this decision.

At the core of the proposed constitutional amendment is a focus on closing a loophole that currently allows corporations to make anonymous political donations through affiliated committees. In his ruling, Knudsen, a Republican, expressed concerns about the measure's implications for the state's constitution, suggesting it could impose costs up to $500,000 if challenged for potential conflicts with federal law. He raised issues regarding the impact on lobbying practices as well.

As part of the next steps, Mangan's organization, the Transparent Election Initiative, will file a formal challenge to the rejection within the mandated ten-day period. In a memorandum, Knudsen articulated that the initiative violates the “separate-vote” requirement, which disallows multiple unrelated amendments from appearing on a single ballot. Mangan, while acknowledging the complexity of the issue, defends that the amendment is singular in focus.

Further complicating the matter, Knudsen voiced apprehensions regarding the amendment's alignment with First Amendment rights acknowledged by federal courts, which protect corporations’ rights to make political donations. His memorandum concluded that a “colorable case against the ballot measure exists.” Mangan responded to these assertions, claiming the Attorney General's office overstepped its role by intertwining legal analyses with policy debates, emphasizing that the review should be confined to technical sufficiency.

Mangan refuted claims that the measure would hinder business lobbying activities. Support for the initiative has risen, with backing from notable political figures including former Montana governors Mark Racicot and Steve Bullock, former U.S. Senator Jon Tester, and state legislative candidate Rina Fontana-Moore.