A proposed constitutional amendment that would expand the powers of the state treasurer’s office has lead to litigation.
Treasurer Scott Fitzpatrick sued fellow Republican Secretary of State Jay Ashcroft over changing how his office invests taxpayer money, according to media reports.
“I know that there are severe restrictions under state law and the state constitution for how money is to be invested,” said James Layton, civil appellate attorney emeritus for the Attorney General’s office. “They are restrictions that have been in place for decades even under prior constitutions in order to ensure that treasurers can't invest the state's funds in anything that's at all risky. It doesn't surprise me that a treasurer would see that in our current realm, or current conditions, that there might be a way that he could get a better return and still be safe.”
Chuck Hatfield, who typically represents Democrats and positions favored by Democrats, is representing Fitzpatrick who is a Republican.
“The treasurer Mr. Fitzpatrick knew that Chuck Hatfield is a good lawyer and is very experienced in handling this kind of challenge and he got the best,” Layton told the St. Louis Record.
As previously reported, Ashcroft is accused of drafting a description that may be misleading, but Layton is skeptical.
“Usually, the secretary of state does a pretty good job or fair job in drafting these but there's no perfection so there's always room to argue that the title is inadequate or misleading in some way, which is why it's not at all unusual to have this kind of a lawsuit,” Layton said. “What’s unusual is that the plaintiff happens to be a statewide officeholder.”
Missouri Lawyers Media reported that Fitzpatrick is concerned that people could vote against it based on the way the ballot language is written, which could prevent his office from earning higher interest on investments by giving lawmakers sole authority to determine investment avenues for the treasurer.
“I would infer that he's trying to get constitutional authority for a broader range of investment vehicles but to still allow the legislature to define what kinds of investments would be allowed,” Layton said.
Ashcroft further told Missouri Lawyers Media that the ballot is “fair, unbiased and clear.”
“The fact that the litigants are two party officials from the same political party doesn't mean that they necessarily see eye to eye,” Layton added. “I don't know if the Secretary of State had any discussions with the Treasurer in the course of drafting the language but it’s quite possible that they never talked about it and the Treasurer, Mr. Fitzpatrick, didn’t like the outcome and decided to challenge it. Challenges to ballot language are not at all unusual.”