Democrats cry foul over donation to Hill

Appeals court ruling keeps state campaign limits this year

Campaign contribution limits in Montana for individuals and political parties will remain in effect for this year’s general election. But a $500,000 donation made to Republican gubernatorial candidate Rick Hill during a six-day period between rulings has angered Democrats.

The Ninth Circuit Court of Appeals on Oct. 16 issued a stay that put a hold on U.S. District Court Judge Charles Lovell’s Oct. 3 ruling that called the limits unconstitutional. The appeals court also indicated that it thinks the state has a strong case as it seeks a reversal of Lovell’s ruling.

In his short ruling, Lovell said the state’s contribution limits “prevent candidates from ‘amassing the resources necessary for effective campaign advocacy,’” quoting from the plaintiffs. In an Oct. 9 preliminary ruling, the appellate court asked for Lovell’s for a fuller explanation of his reasoning.

Seven days later, on Oct. 10, Lovell issued a 38-page conclusion that backed up his earlier ruling. He also suggested that the Montana Legislature would have a “clean canvas” to work with in fashioning new and higher spending limits that would be constitutional.

According to campaign documents and public statements by Hill and others, the Montana Republican Party donated $500,000 to Hill’s campaign fund between Oct. 10 and Oct. 16. The party also donated about $30,000 during that time period to Tim Fox, the Republican candidate for Montana attorney general.

Montana law had limited individual contributions to a candidate to $160 for a state House candidate and $630 for a gubernatorial candidate. The laws had also limited aggregate donations from political parties. A gubernatorial candidate could not accept more than $22,600 from all political party committees.

Bowen Greenwood, the Montana Republican Party’s executive director, defended the donations.

“We don’t make the laws here, we just follow them,” he said on Oct. 17. “At the time, that was the law.”

Hill also defended taking the donations during a debate with his Democratic opponent in the Montana governor race, Montana Attorney General Steve Bullock, at Flathead Valley Community College on Oct. 17.

“A federal judge has said that law is unconstitutional,” Hill said in response to Bullock’s criticism. “I’ll take that judge’s opinion on that matter before I’ll take your opinion on that matter.”

Bullock suggested that keeping the money might be a crime.

“It might have been legal to accept that check, but the illegality might be in keeping that check,” Bullock said.

Hill noted that the appellate court only issued a stay and that arguments on the appeal haven’t yet been heard. Therefore the matter was not settled, he said.

Kevin O’Brien, Bullock’s campaign manager, notified the media following the Oct. 17 debate that he had filed a complaint with the Montana Commissioner of Political Practices about the $500,000 donation to Hill. He claimed Hill’s campaign “had already accepted the maximum allowable contribution from political parties in prior reporting periods.”

Plaintiffs in the federal case against Montana’s contribution limits included Doug Lair of American Tradition Partnership, formerly Western Tradition Partnership, a conservative group now based in Washington, D.C., that is fighting Montana election officials to withhold the names of its donors.

Other plaintiffs included Montana Right To Life, Sweet Grass Council for Community Integrity, Lake County Republican Central Committee, Beaverhead County Republican Central Committee, Jake Oil LLC, Champion Painting Inc. and three individuals, including Steve Dogiakos and John Milanovich.

Lovell, who was appointed by President Reagan, has already issued a number of rulings on campaign regulation in light of the landmark 2010 U.S. Supreme Court ruling in Citizens United. Lovell ruled that Montana cannot ban corporations from contributing to political committees that make independent expenditures, and that state laws requiring attack ads disclose voting records and banning knowingly false statements in attack ads are unconstitutional.

Bullock praised the appeals court’s order soon after it was made.

“That is an important victory for all Montanans, regardless of party affiliation,” he said. “Montanans put a high value on the integrity and fairness of our election system, and the court has allowed us to maintain our citizen democracy, rather than putting our elections up for auction to the highest bidder.”