Political group seeks 'dark money' status in court

A Helena-based political group seeking to prevent Montana Commissioner Political Practices Jon Motl, Montana Attorney General Tim Fox, and the Lewis and Clark County Attorney’s Office from enforcing Montana’s campaign finance laws has appealed an Oct. 22 ruling and taken the case to the Ninth U.S. Circuit Court of Appeals.

Montanans for Community Development, which bills itself as a group “to promote and encourage policies that create jobs and grow local economies,” earlier sought an injunction to keep its donors and spending secret.

The injunction request was rejected earlier this month and again Oct. 28 by U.S. District Judge Dana Christensen, who called the breadth of what the group was trying to do “staggering.”

The group has now gone to the 9th U.S. Circuit Court of Appeals for an emergency injunction that would allow it to release ads that mention candidates in this year’s elections, without fear of being labeled a political organization. That designation would require Montanans For Community Development to disclose who is funding the group, and possibly open it to accusations of illegally coordinating with candidates.

On Oct. 27, a Ninth Circuit panel of judges told the group that it must ask Christensen for an injunction blocking the laws while the appeal is pending, but said it would take up the issue by Oct. 29 if Christensen denies the request. Christensen denied the injunction on Oct. 28.

It is not clear whether the 9th Circuit would make a ruling on Oct. 29, Montanans For Community Development attorney Anita Milanovich said.

Little is known about Montanans For Community Development because of its IRS status as a 501 (c)(4) tax-exempt organization. Its president, Bill Coate, ran for governor as an independent in 2012. One of its board members is state Sen. Ed Walker, R-Billings.

The group says it’s engaged in “grassroots advocacy and issues-oriented educational campaigns to further its goal.” The ads it seeks to publish promote energy development and criticize environmentalist groups, while showing legislative candidates who support or oppose its views.

The group claims in its lawsuit that the definitions of campaign contributions and expenditures in state law are too vague to be constitutional. It also claims that the definition of a political committee — and the requirements placed on political committees to file disclosure reports — shouldn’t include groups such as Montanans for Community Development that are registered for nonpartisan issues advocacy. Those restrictions impede the group’s rights to free speech and association, they claim in their lawsuit.

In court filings, the group compares its situation to that of American Tradition Partnership, which also organized as a tax-exempt educational committee and was behind a series of mailers attacking legislative candidates over the last three election cycles.

A state judge ruled in 2012 that American Tradition Partnership was a political organization and must disclose its donors and spending. Earlier this year, Commissioner Motl ruled that American Tradition Partnership illegally coordinated with the campaigns of nine Republican legislative candidates.

Among them were Senate Majority Leader Art Wittich, R-Bozeman, and state Rep. Mike Miller, R-Helmville. Both denied any wrongdoing and are defending themselves in court against a civil case filed by Motl seeking their removal from office.