Montana AG cleared of campaign finance violations in recruiting primary challenger

HELENA, Mont. (AP) — Montana’s elections enforcer said he found no evidence that the state's attorney general violated campaign finance rules by inviting another Republican to run against him so he could raise more money for his reelection campaign.

Montana's top political cop on Thursday said he found no evidence that the state's attorney general violated Montana campaign finance laws in recruiting a primary challenger so he could raise more campaign cash.

The complaint, filed by Sheila Hogan, executive director of the Montana Democratic Party, came after both men acknowledged that Knudsen urged Olson to run against him.

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Knudsen has said he recruited Olson “because our campaign laws are ridiculous." Olson told the Daniels County Leader that he supported Knudsen's candidacy and was running so Knudsen could raise more money.

The campaign contribution limit for the attorney general’s race in Montana is $790 by law, but candidates can receive twice that from individuals if they have a primary opponent.

In the last three decades, both Democratic and Republican candidates have had token primary challengers, Commissioner of Political Practices Chris Gallus found, but no complaints have been filed and the Legislature has not moved to change the law.

“The difference between the situation here, and those using the loophole now and in previous campaigns, is that the Attorney General has rather brazenly and publicly discussed doing what others have quietly done for years," Gallus wrote in his decision Thursday.

Jake Eaton, senior campaign adviser for Knudsen, said in a statement Friday the case had been brought to its “rightful” close.

“Such political stunts have no place in Montana politics," Eaton said.

Hogan said she disagreed with Gallus' decision to dismiss the case. She said in a statement that Knudsen and Olson “clearly schemed to violate Montana’s election laws, which is consistent with the corrupt and unethical behavior Knudsen continues to demonstrate as Attorney General.”

Knudsen is facing 41 counts of professional misconduct on allegations his office tried to undermine the Montana Supreme Court while defending a challenge to a state law about judicial nominations. The case is scheduled to be heard in October.

Hogan's complaint argued Knudsen was wrong to accept campaign donations for both the primary and general elections before he had a primary challenger. But Gallus said there is no law that says candidates cannot accept contributions before they have an opponent. He said other candidates have done the same and returned excess donations if they did not end up with a contested primary.

Hogan's complaint also argued Olson was not a good faith candidate, which under state law would mean he did not have an intent to seek the office or had been offered a bribe to run. Gallus said that would be an issue for the courts.

“There is simply no evidence whatsoever in the complaint or on the record here that shows a payment or promise of valuable consideration was provided by Attorney General Knudsen, or a surrogate of his campaign, to Mr. Olson,” Gallus added. Olson also said he was genuinely seeking the office, the decision stated.

Knudsen beat Olson 82% to 18% in the June primary and will face Democratic candidate Ben Alke in the general election.

Gallus did find one issue with Olson's run.

A third party — Republican operative Chuck Denowh — paid Olson's filing fee of just over $1,500. Olson reported the payment as a campaign debt rather than a contribution or a loan, which would have been capped at the $790 limit for the primary, Gallus said. Denowh donated the maximum of $1,580 to Knudsen's campaign.

Gallus said he would normally turn the campaign finance case against Olson over to his local county attorney for prosecution, but since Olson is the Daniels County attorney, Gallus said he will negotiate a fine with Olson.

Olson did not immediately respond to a phone message Friday seeking comment.

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