HELENA — A group whose tax-exempt status allows it to keep its donors and spending secret is asking a federal appeals court to block several Montana laws regulating campaign contributions and expenditures before next Tuesday’s elections.

An injunction request by Montanans For Community Development was rejected earlier this month and again Tuesday by U.S. District Judge Dana Christensen, who called the breadth of what the group was trying to do “staggering.”

The group has now gone to the 9th U.S. Circuit Court of Appeals for an emergency injunction that would allow it to release ads that mention candidates in this year’s elections, without fear of being labeled a political organization. That designation would require Montanans For Community Development to disclose who is funding the group, and possibly open it to accusations of illegally coordinating with candidates.

A 9th Circuit panel of judges told the group on Monday that it must ask Christensen for an injunction blocking the laws while the appeal is pending, but said it would take up the issue by Wednesday if Christensen denies the request.

Christensen denied the injunction on Tuesday.

It is not clear whether the 9th Circuit would make a ruling on Wednesday, Montanans For Community Development attorney Anita Milanovich said.

Little is known about Montanans For Community Development because of its IRS status as a 501 (c)(4) tax-exempt organization. Its president is Bill Coate, who ran for governor as an independent in 2012. One of its board members is state Sen. Ed Walker, R-Billings.

The group describes itself as engaging in “grassroots advocacy and issues-oriented educational campaigns to further its goal.”

The ads it seeks to publish tout energy development and blast environmentalist groups, while picturing legislative candidates who support or oppose its views.

The group claims in its lawsuit that the definitions of campaign contributions and expenditures in state law are too vague to be constitutional. It also claims that the definition of a political committee — and the requirements placed on political committees to file disclosure reports — shouldn’t include groups such as Montanans for Community Development that are registered for nonpartisan issues advocacy.  

Those restrictions impede the group’s rights to free speech and association, according to the lawsuit.

In court filings, it compares its situation to that of American Tradition Partnership, which also organized as a tax-exempt educational committee and was behind a series of mailers attacking legislative candidates over the last three election cycles.

A state judge ruled in 2012 that American Tradition Partnership was a political organization and must disclose its donors and spending. Earlier this year, Commissioner of Political Practices Jonathan Motl ruled that American Tradition Partnership illegally coordinated with the campaigns of nine Republican legislative candidates.

Among them were Senate Majority Leader Art Wittich, R-Bozeman, and state Rep. Mike Miller, R-Helmville. Both have denied any wrongdoing and they are defending themselves in court against a civil case filed by Motl seeking their removal from office.