The Montana Senate has decided to launch an ethics investigation concerning a government contract worth $170,100 that was negotiated late last year by former Senate President Jason Ellsworth in collaboration with his business associate, Bryce Eggleston.
On Monday, the Senate unanimously agreed to form a bipartisan Ethics Committee tasked with examining the contract situation involving Ellsworth, a Republican from Hamilton, and Misty Ann Giles, the state Department of Administration Director. Senate leaders expressed a desire to question both parties for clarity on the matter. During a previous investigation led by the Legislative Auditor, Giles admitted that the contract brokered by Ellsworth did not comply with state laws, yet the Department of Administration proceeded with the arrangement. This audit report, released on January 24, deemed Ellsworth’s handling of state funds as both wasteful and abusive.
Senate President Matt Regier, a Republican from Kalispell, voiced concerns about the situation. Following the Senate’s decision, he highlighted the need for the Department of Administration to answer several pressing questions regarding the audit, where it was revealed that proper procurement laws were not followed.
The contract that has caused controversy involves a $170,100 agreement established by Ellsworth with Eggleston at the end of December. As Ellsworth’s term as Senate president was coming to a close, the agreement called for Eggleston to monitor the implementation of various proposed laws intended to restrict the power of Montana courts. This initiative is a clear priority for Senate Republicans this legislative session, as they have introduced 27 bills aimed at curtailing judicial powers, with several expected to pass soon.
Complications arose with the terms of the contract, prompting the Legislative Auditor to raise several red flags. Contracts exceeding $100,000 are required to undergo a stringent procurement process involving competitive bidding. However, Ellsworth opted to split the contract into two smaller ones to evade this requirement, an action that is explicitly forbidden by law. The investigation concluded that this division was a misuse of power.
Instead of rejecting the agreement altogether, the Department of Administration consolidated the contracts at the end of the year and initiated a payment plan for Eggleston. The first payment was scheduled for January 10, despite the contracted services not commencing until several months later. Regier criticized the need for the contracted work, calling it “simple,” and stated that existing legislative staff could handle these tasks without incurring additional costs.
He likened the contract’s use of taxpayer funds to hiring a friend to mow a lawn, questioning even the necessity of the hired contractor and the absence of any work performed. So far, no payments have been issued. Ellsworth mentioned that Eggleston had opted out of the work in light of the negative political implications surrounding the contract. Attempts to contact Eggleston regarding the matter have gone unanswered.
Several members from the Republican leadership, along with Democratic Minority Leader Pat Flowers, endorsed the motion for a comprehensive Ethics Committee investigation. Flowers stated that government transparency and integrity are critical values for both legislators and their constituents, emphasizing the public’s expectation for their elected officials to act in their best interest. Ellsworth indicated his support for the inquiry, recognizing that the controversy surrounding the contract had become a distraction.
The Ethics Committee will also see a change in its leadership, with Sen. Sue Vinton replaced by Sen. Forrest Mandeville as chair. The reasoning behind Vinton’s removal was not disclosed, though Regier mentioned that there are many capable individuals within the Senate.
Discussion regarding the Ethics Committee’s hearing process remains ongoing. Regier outlined that this constitutes an initial step in addressing the issues involving Ellsworth, rather than concluding the investigative findings shared a week earlier. The committee is expected to convene on Wednesday to discuss how to proceed. One possibility being weighed is treating the investigation as a quasi-judicial hearing, integrating both defense and prosecution arguments.
In a statement released on the matter, Montana Republican Party Chairman Don Kaltschmidt acknowledged the seriousness of the findings indicated by the Legislative Audit Division, labeling them as troubling. Kaltschmidt asserted that ensuring accountability is crucial for all elected officials, stating, “No one is above the law.”
