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Testimony of Professor David Schultz, Hamline Utuversity befare the Sennte IIection Laws Commit#ee on Initiadve and Referendum March 9, 2008 CLairman Marty Pmd Membexs o£ the Senate Election Laws Committea: My name is David Schultz and I am a professor m the Graduate School of Public Administration �d Management at Hamljne Univers�tywheze I�each, among othar things, a course in Govemment Ethics. I am also an adjunct professor of Iaw at the University of 1VI'�nnesota whera I teach a class on election iaw. I ara here to tesrtify against a praposal for a constitutional amendment to permit uutiative and referendnm in tha state of Minnesota. Introduction Initiative and refereudum ara often presented by its supporters as tools of populis�a that lat the people decide. Unfortunately, for tha most part, initiative and rafarendum have not been tools of the pea�le bnt anather way for big monoy �td special intorests to thwart tlie will of tho peoplo. Money Spent for Ini�atives and Referenda Cannot be Wnited One lessom m�any of ns have leamed over ti�e last 25 years siuce Watergate is haw excessi.ve mouey in tlae political systemhas a cortos�ve impact upon the political process. Recogni�ug tltat impact, over the last 25 years M'innesota has enacted si�ufiicant legslation to iimit the impact that money plays iu the political procass. Were initiative and referendu�oa enaoted, these cantpaigu fm�ce laws would Uecoma moot. Why? In its 1978 decision First ��'ational Bank �-. Bellothi the United State Supreme Court declared tliat inoney on Uallot initiatives was core political speech aud that efforts to place limits ou the amouut of maney spent or contribnted for these purposes r�vas tmcoustitntional. More isnportaudy, the Court stated in Bellvtli that liuuts on corporate spendiug �iolated the Fust Amendmeut. The importance of Bellotli for Muuiesota is twofold First, were initiative wd referendunu enacted. the state cot�ld not liinit tha ainonut of money spent vy any party. Second, wliile Miuuesota has had a bau on coiporat� political spending dating back over 80 years, that ban could uot be applied to Ual�ot initiatives. Hence, adoption of initiative and re£erendum would open au enonnous hoie in out existing