This morning Judge Eric Tostrud in the District of Minnesota issued an order in the case captioned Minnesota Chamber of Commerce v. John Choi, et al permanently enjoining certain provisions found in Minnesota Statute 211B.15 (“statute”).
The enjoined statute was passed by the Minnesota legislature in 2023 and prevented entities who had a single foreign investor with a 1% interest or an aggregate of foreign investors holding 5% interest from making any independent expenditures or contributions. Minn. Stat. 211B.15, subd. 4a. The enjoined statute had the effect of preventing numerous corporations and limited liability companies from engaging in political speech through independent expenditures or contributions.
The Minnesota Chamber of Commerce brought a legal action challenging the statute as unconstitutional alongside a motion for a preliminary injunction. The Court granted the preliminary injunction in December 2023. Now over a year later, on motions for summary judgment the Court has permanently enjoined the statute. In doing so, the Court determined that the statute violated the First Amendment right to free speech. Specifically, the Court acknowledged that the State has a compelling interest to prevent foreign influence in its elections but concluded that the statute was not narrowly tailored to accomplish that interest. The Court relied on the State’s lack of any evidence demonstrating an instance where an entity was influenced by a foreign investor to make a political expenditure or contribution.
The Court’s order permanently enjoins enforcement of Minnesota Statutes 211B.15 subdivisions 1(b), 1(d), 1(e), 4a, 4b, the reference to “4a” in subdivision 7b(2), and any related rules and regulations. The Court’s order also enjoins Minnesota’s Campaign Finance and Public Disclosure Board and Ramsey County Attorney John Choi from pursuing civil or criminal liability for violations of the statute.
