The Montana Plan, or Ballot Initiative I-194, purports to remove corporate funding from Montana elections. The full text of the ballot initiative states:
I-194, if passed, limits the powers of artificial persons to those powers necessary or convenient as provided by law. These powers must exclude contributing anything of value to candidate elections, supporting or opposing political parties, or supporting or opposing state or local ballot issues. Artificial persons include non-profits, trusts, partnerships, corporations, trade associations, or unincorporated associations and includes all such entities doing business in Montana. Any violation of I-194 is punished by forfeiting all privileges to do business in Montana. Those privileges may be, but are not automatically, restored upon disgorgement and certification of compliance with I-194. I-194 does not apply to the distribution of news, commentary, or editorial content. I-194 also does not apply to the state of Montana, political subdivisions, individuals, political committees, or public corporations.
The initiative applies only to artificial entities chartered in Montana or doing business in Montana. It does not clearly apply to artificial entities that are neither chartered nor operating in the state.
The Montana Plan does not adequately explain how it would regulate or enforce restrictions against out-of-state entities. Presumably, enforcement would rely on civil actions in Montana courts by interpreting political spending as doing business within the state. However, precedent from cases such as Adventure Communications v. Kentucky Registry of Election Finance (1998), which limited a state’s ability to regulate entities whose activities occur primarily outside its borders, suggests that states face significant constitutional limits when attempting to regulate out-of-state entities.
As a result, the Montana Plan may primarily restrict Montana-based organizations while leaving substantial avenues for out-of-state interests to continue influencing Montana elections.
At a time when outside money and influence are increasingly converging on Montana, the initiative appears to disadvantage Montanans doing business in Montana more than the external interests it seeks to restrain.