A key reason lawmakers said Wednesday that they need to amend the constitutional language governing initiatives is to keep foreign actors from spending millions to influence Utah ballot initiatives.
But, are foreign nationals or organizations spending money or using other means to influence how Utahns vote on ballot initiatives?
State and federal law already prohibits foreign entities from donating cash to candidates. However, it does not prohibit foreign entities from spending money to promote or oppose a ballot initiative.
Senate President Stuart Adams said in an interview this week that he is not aware of any examples of foreign actors trying to sway ballot initiatives in Utah, and he sees a ban on foreign involvement in ballot initiatives as a needed proactive measure.
The language stating that “Foreign individuals, entities, or governments may not, directly or indirectly, influence, support, or oppose an initiative or a referendum” is included in a constitutional amendment that lawmakers approved Wednesday night — sending it to voters for a ratification vote on the November ballot.
The main thrust of the amendment is to enshrine lawmakers’ power to amend and repeal voter-approved ballot initiatives into the state constitution.
Anecdotally, Adams said, he has heard of instances where foreign nationals have spent upwards of $100 million funding a state’s ballot initiatives.
“I think most people believe ... that Utahns need to decide what we do in Utah,” he said, adding people from foreign governments especially should not be deciding what happens in the state.
In Maine, officials were pursuing a $1 billion electricity transmission project in the western part of the state that was supported by Hydro-Quebec, the company that produced the power to be shipped, Maine Public reported.
Maine legislators tried to ban spending by entities owned by foreign governments, but the state’s governor vetoed the ban over constitutional concerns. Hydro-Quebec, which is owned by the Canadian government, spent $22.3 million opposing a referendum aiming to block the project. Nearly 60% of Maine residents voted to shut down the transmission project.
Last year, 86% of Maine voters backed a ballot initiative that bans electioneering by foreign governments or entities that are at least 5% controlled by a foreign government.
States like Colorado, Minnesota and Alaska have passed statutes that ban foreign nationals or companies from spending money on ballot measures, according to Reuters. Similar bills have been considered in Hawaii, Massachusetts, New York, Virginia, Washington and Connecticut.
There is some question as to whether such bans violate the First Amendment and how to distinguish between U.S.-based corporations with large foreign ownership versus foreign-based corporations with mainly U.S. ownership.
Utah Senate Majority Assistant Whip Kirk Cullimore, R-Cottonwood Heights, said the reason lawmakers included the ban in the proposed amendment is, “by making it a constitutional right, it kind of elevates that scrutiny ... and makes it less susceptible to legal challenge.”
During a committee hearing ahead of the amendment’s passage, Democratic Sen. Karen Kwan of Salt Lake City expressed concerns that the term “foreign individuals, entities, or governments” is not well-defined. Cullimore said if the amendment passes, the Legislature can come up with a more precise definition in statute.
Utahns will vote for or against the constitutional amendment during the Nov. 5 general election.
Correction: Aug. 23, 10:30 a.m. • The story has been updated to reflect that Hydro-Quebec supported the Maine transmission project.
