The state of Mississippi is asking the 5th U.S. Circuit Court of Appeals reverse a lower court ruling that found part of a campaign finance law unconstitutional.
The New Orleans court is hearing arguments Tuesday.
A federal judge in 2013 found the law is unconstitutionally burdensome for people or groups that spend at least $200 to support or oppose a ballot initiative.
Opponents argue the $200 threshold is so low that it would be impossible for a group of people to run a quarter-page ad in their local newspaper without having to become a political committee.
Under Mississippi law, groups seeking to support or oppose statewide ballot measures must register as a political committee if they receive contributions of more than $200 or spend more than $200 during a calendar year.