The Eighth Judicial District Court heard arguments Monday afternoon about an initiative that could be on the ballot this fall.
Initiative 183 would require people to use the public restroom that corresponds with the sex indicated on their original birth certificate instead of the sex they identify with.
The state argued that the challenge is premature because they do not know if the initiative will be on the November ballot.
The state would like the case dismissed.
The ACLU of Montana said Initiative 183 is filled with constitutional defects that would infringe on transgender and non-binary Montanans.
Judge John Kutzman heard the arguments under advisement and will issue a ruling at a later date.