A group that had their bid for a referendum on tax reform rejected by election officials can proceed with a lawsuit against the state of Utah. 

A U.S. District Court judge denied a motion to dismiss the lawsuit brought by the group The People's Right during a hearing yesterday. 

The state rejected the group's referendum late last year because some of those sponsoring the measure hadn't voted in an election in the last three years. 

The group sued, calling the requirement unconstitutional. 

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