SB-0824, As Passed House, June 12, 2012

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 824

A bill to amend 1976 PA 388, entitled

"Michigan campaign finance act,"

by amending sections 15, 32, 34, 36, 47, and 55 (MCL 169.215,

169.232, 169.234, 169.236, 169.247, and 169.255), section 15 as

amended by 2012 PA 31, section 32 as amended by 1999 PA 236,

section 34 as amended by 1999 PA 238, section 36 as amended by

1996 PA 590, section 47 as amended by 2001 PA 250, and section 55

as amended by 1995 PA 264.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 15. (1) The secretary of state shall do all of the

2 following:

3 (a) Make available through his or her offices, and furnish

4 to county clerks, appropriate forms, instructions, and manuals

5 required by this act.

1 (b) Develop a filing, coding, and cross-indexing system for

2 the filing of required reports and statements consistent with

3 this act, and supervise the implementation of the filing systems

4 by the clerks of the counties.

5 (c) Receive all statements and reports required by this act

6 to be filed with the secretary of state.

7 (d) Prepare forms, instructions, and manuals required under

8 this act.

9 (e) Promulgate rules and issue declaratory rulings to

10 implement this act in accordance with the administrative

11 procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

12 (f) Upon receipt of a written request and the required

13 filing, waive payment of a late filing fee if the request for the

14 waiver is based on good cause and accompanied by adequate

15 documentation. One or more of the following reasons constitute

16 good cause for a late filing fee waiver:

17 (i) The incapacitating physical illness, hospitalization,

18 accident involvement, death, or incapacitation for medical

19 reasons of a person required to file, a person whose

20 participation is essential to the preparation of the statement or

21 report, or a member of the immediate family of these persons.

22 (ii) Other unique, unintentional factors beyond the filer's

23 control not stemming from a negligent act or nonaction so that a

24 reasonably prudent person would excuse the filing on a temporary

25 basis. These factors include the loss or unavailability of

26 records due to a fire, flood, theft, or similar reason and

27 difficulties related to the transmission of the filing to the

1 filing official, such as exceptionally bad weather or strikes

2 involving transportation systems.

3 (2) A declaratory ruling shall be issued under this section

4 only if the person requesting the ruling has provided a

5 reasonably complete statement of facts necessary for the ruling

6 or if the person requesting the ruling has, with the permission

7 of the secretary of state, supplied supplemental facts necessary

8 for the ruling. A request for a declaratory ruling that is

9 submitted to the secretary of state shall be made available for

10 public inspection within 48 hours after its receipt. An

11 interested person may submit written comments regarding the

12 request to the secretary of state within 10 business days after

13 the date the request is made available to the public. Within 45

14 business days after receiving a declaratory ruling request, the

15 secretary of state shall make a proposed response available to

16 the public. An interested person may submit written comments

17 regarding the proposed response to the secretary of state within

18 5 business days after the date the proposal is made available to

19 the public. Except as otherwise provided in this section, the

20 secretary of state shall issue a declaratory ruling within 60

21 business days after a request for a declaratory ruling is

22 received. If the secretary of state refuses to issue a

23 declaratory ruling, the secretary of state shall notify the

24 person making the request of the reasons for the refusal and

25 shall issue an interpretative statement providing an

26 informational response to the question presented within the same

27 time limitation applicable to a declaratory ruling. A declaratory

1 ruling or interpretative statement issued under this section

2 shall not state a general rule of law, other than that which is

3 stated in this act, until the general rule of law is promulgated

4 by the secretary of state as a rule under the administrative

5 procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, or

6 under judicial order.

7 (3) Under extenuating circumstances, the secretary of state

8 may issue a notice extending for not more than 30 business days

9 the period during which the secretary of state shall respond to a

10 request for a declaratory ruling. The secretary of state shall

11 not issue more than 1 notice of extension for a particular

12 request. A person requesting a declaratory ruling may waive, in

13 writing, the time limitations provided by this section.

14 (4) The secretary of state shall make available to the

15 public an annual summary of the declaratory rulings and

16 interpretative statements issued by the secretary of state.

17 (5) A person may file with the secretary of state a

18 complaint that alleges a violation of this act. Within 5 business

19 days after a complaint that meets the requirements of subsection

20 (6) is filed, the secretary of state shall give notice to the

21 person against whom the complaint is filed. The notice shall

22 include a copy of the complaint. Within 15 business days after

23 this notice is ~~provided~~ mailed, the person against whom the

24 complaint was filed may submit to the secretary of state a

25 response. The secretary of state may extend the period for

26 submitting a response an additional 15 business days for good

27 cause. The secretary of state shall provide a copy of a response

1 received to the complainant. Within 10 business days after

2 ~~receiving a copy of~~ the response is mailed, the complainant may

3 submit to the secretary of state a rebuttal statement. The

4 secretary of state may extend the period for submitting a

5 rebuttal statement an additional 10 business days for good cause.

6 The secretary of state shall provide a copy of the rebuttal

7 statement to the person against whom the complaint was filed.

8 (6) A complaint under subsection (5) shall satisfy all of

9 the following requirements:

10 (a) Be signed by the complainant.

11 (b) State the name, address, and telephone number of the

12 complainant.

13 (c) Include the complainant's certification that, to the

14 best of the complainant's knowledge, information, and belief,

15 formed after a reasonable inquiry under the circumstances, each

16 factual contention of the complaint is supported by evidence.

17 However, if, after a reasonable inquiry under the circumstances,

18 the complainant is unable to certify that certain factual

19 contentions are supported by evidence, the complainant may

20 certify that, to the best of his or her knowledge, information,

21 or belief, there are grounds to conclude that those specifically

22 identified factual contentions are likely to be supported by

23 evidence after a reasonable opportunity for further inquiry.

24 (7) The secretary of state shall develop a form that

25 satisfies the requirements of subsection (6) and may be used for

26 the filing of complaints.

27 (8) A person who files a complaint with a false certificate

1 under subsection (6)(c) is responsible for a civil violation of

2 this act. A person may file a complaint under subsection (5)

3 alleging that another person has filed a complaint with a false

4 certificate under subsection (6)(c).

5 (9) The secretary of state shall investigate the allegations

6 under the rules promulgated under this act. ~~Every 60 days after a~~

7 ~~complaint that meets the requirements of subsection (6) is filed~~

8 ~~and until the matter is terminated, the secretary of state shall~~

9 ~~mail to the complainant and to the alleged violator notice of the~~

10 ~~action taken to date by the secretary of state and the reasons~~

11 ~~for the action or nonaction.~~If the violation involves the

12 secretary of state, the immediate family of the secretary of

13 state, or a campaign or committee with which the secretary of

14 state is connected, directly or indirectly, the secretary of

15 state shall refer the matter to the attorney general to determine

16 whether a violation of this act has occurred.

17 (10) If No later than 60 business days after receipt of a

18 rebuttal statement submitted under subsection (5), or if no

19 response or rebuttal is received under subsection (5), the

20 secretary of state ~~determines that~~ shall post on the secretary of

21 state's internet website whether or not there may be reason to

22 believe that a violation of this act has occurred. If the

23 secretary of state determines that there may be reason to believe

24 that a violation of this act occurred, the secretary of state

25 shall, within 30 days of that determination, post on the

26 secretary of state's internet website any complaint, response, or

27 rebuttal statement received under subsection (5) regarding that

1 violation and any correspondence regarding that violation between

2 the secretary of state and the complainant or the person against

3 whom the complaint was filed. If the secretary of state

4 determines that there may be reason to believe that a violation

5 of this act occurred, the secretary of state shall endeavor to

6 correct the violation or prevent a further violation by using

7 informal methods such as a conference, conciliation, or

8 persuasion, and may enter into a conciliation agreement with the

9 person involved. Unless violated, a conciliation agreement is a

10 complete bar to any further civil or criminal action with respect

11 to matters covered in the conciliation agreement. The secretary

12 of state shall, within 30 days after a conciliation agreement is

13 signed, post that agreement on the secretary of state's internet

14 website. If, after 90 business days, the secretary of state is

15 unable to correct or prevent further violation by these informal

16 methods, the secretary of state ~~may refer~~ shall do either of the

17 following:

18 (a) Refer the matter to the attorney general for the

19 enforcement of a any criminal penalty provided by this act. or

20 ~~commence~~

21 (b) Commence a hearing as provided in subsection (11) for

22 enforcement of any civil violation.

23 (11) The secretary of state may commence a hearing to

24 determine whether a civil violation of this act has occurred. A

25 ~~hearing shall not be commenced during the period beginning 30~~

26 ~~days before an election in which the committee has received or~~

27 ~~expended money and ending the day after that election except with~~

1 ~~the consent of the person suspected of committing a civil~~

2 ~~violation.~~ The hearing shall be conducted in accordance with the

3 procedures set forth in chapter 4 of the administrative

4 procedures act of 1969, 1969 PA 306, MCL 24.271 to 24.287. If

5 after a hearing the secretary of state determines that a

6 violation of this act has occurred, the secretary of state may

7 issue an order requiring the person to pay a civil fine equal to

8 triple the amount of the improper contribution or expenditure

9 plus not more than $1,000.00 for each violation.

10 (12) A final decision and order issued by the secretary of

11 state is subject to judicial review as provided by chapter 6 of

12 the administrative procedures act of 1969, 1969 PA 306, MCL

13 24.301 to 24.306. The secretary of state shall deposit a civil

14 fine imposed under this section in the general fund. The

15 secretary of state may bring an action in circuit court to

16 recover the amount of a civil fine.

17 (13) When a report or statement is filed under this act, the

18 secretary of state shall review the report or statement and may

19 investigate an apparent violation of this act under the rules

20 promulgated under this act. If the secretary of state determines

21 that there may be reason to believe a violation of this act has

22 occurred and the procedures prescribed in subsection (10) have

23 been complied with, the secretary of state may refer the matter

24 to the attorney general for the enforcement of a criminal penalty

25 provided by this act, or commence a hearing under subsection (11)

26 to determine whether a civil violation of this act has occurred.

27 (14) No later than 60 business days after a matter is

1 referred to the attorney general for enforcement of a criminal

2 penalty, the attorney general shall determine whether to proceed

3 with enforcement of that penalty.

4 (15) ~~(14)~~ Unless otherwise specified in this act, a person

5 who violates a provision of this act is subject to a civil fine

6 of not more than $1,000.00 for each violation. A civil fine is in

7 addition to, but not limited by, a criminal penalty prescribed by

8 this act.

9 (16) ~~(15)~~ In addition to any other sanction provided for by

10 this act, the secretary of state may require a person who files a

11 complaint with a false certificate under subsection (6)(c) to do

12 either or both of the following:

13 (a) Pay to the secretary of state some or all of the

14 expenses incurred by the secretary of state as a direct result of

15 the filing of the complaint.

16 (b) Pay to the person against whom the complaint was filed

17 some or all of the expenses, including, but not limited to,

18 reasonable attorney fees incurred by that person in proceedings

19 under this act as a direct result of the filing of the complaint.

20 (17) ~~(16)~~ Except as otherwise provided in section 57, there

21 is no private right of action, either in law or in equity, under

22 this act. Except as otherwise provided in section 57, the

23 remedies provided in this act are the exclusive means by which

24 this act may be enforced and by which any harm resulting from a

25 violation of this act may be redressed. The criminal penalties

26 provided by this act may only be enforced by the attorney general

27 and only upon referral by the secretary of state as provided

1 under subsection (10) or (13).

2 (18) ~~(17)~~ The secretary of state may waive the filing of a

3 campaign statement required under section 33, 34, or 35 if the

4 closing date of the particular campaign statement falls on the

5 same or a later date as the closing date of the next campaign

6 statement filed by the same person, or if the period that would

7 be otherwise covered by the next campaign statement filed by the

8 same person is 10 days or less.

9 (19) ~~(18)~~ The clerk of each county shall do all of the

10 following:

11 (a) Make available through the county clerk's office the

12 appropriate forms, instructions, and manuals required by this

13 act.

14 (b) Under the supervision of the secretary of state,

15 implement the filing, coding, and cross-indexing system

16 prescribed for the filing of reports and statements required to

17 be filed with the county clerk's office.

18 (c) Receive all statements and reports required by this act

19 to be filed with the county clerk's office.

20 (d) Upon written request, waive the payment of a late filing

21 fee if the request for a waiver is based on good cause as

22 prescribed in subsection (1)(f).

23 Sec. 32. (1) A committee, candidate, treasurer, or other

24 individual designated as responsible for the committee's record

25 keeping, record preparation, or report filing shall report a late

26 contribution by filing with the filing officer within 48 hours

27 after its receipt the full name, street address, occupation,

1 employer, and principal place of business of the contributor.

2 (2) Filing of a report of a late contribution ~~pursuant to~~

3 under subsection (1) may be by any written means of communication

4 and need not contain an original signature.

5 (3) A late contribution shall be reported on subsequent

6 campaign statements without regard to reports filed ~~pursuant to~~

7 under subsection (1). If a campaign statement has not been filed,

8 a late contribution may be reported, if practicable, in the

9 campaign statement and need not, therefore, be reported in a

10 subsequent campaign statement.

11 (4) A committee, candidate, treasurer, or other individual

12 designated as responsible for the committee's record keeping,

13 report preparation, or report filing who fails to report a late

14 contribution as required by subsection (1) shall pay a late

15 filing fee, that shall not exceed the lesser of the following:

16 (a) The total amount of the contributions omitted from the

17 late contribution reports.

18 (b) $2,000.00 , determined as follows:

19 (i) ~~(a)~~ Twenty-five dollars for each business day the report

20 remains unfiled.

21 (ii) ~~(b)~~ An additional $25.00 for each business day after the

22 first 3 business days the report remains unfiled.

23 (iii) ~~(c)~~ An additional $50.00 for each business day after the

24 first 10 business days the report remains unfiled.

25 (5) A committee, other than a candidate committee, is only

26 required to file a report of a late contribution for an election

27 during which the committee made expenditures for the purpose of

1 influencing the nomination or election of a candidate or for the

2 qualification, passage, or defeat of a ballot question after the

3 closing date of the last campaign statement required to be filed

4 before an election. This subsection is retroactive and takes

5 effect January 1, 2010.

6 (6) This state by appropriation or a county shall reimburse

7 or waive any late filing fee paid or assessed under subsection

8 (4) or (5) between January 1, 2010 and the effective date of the

9 amendatory act that added this subsection. This subsection only

10 applies to committees that have filed all other campaign

11 statements required under this act in a timely manner. This

12 subsection does not apply to candidate committees.

13 (7) ~~(5)~~ As used in this section, for contributions made

14 before the effective date of the amendatory act that added

15 subsection (6), "late contribution" means a contribution of

16 $200.00 or more received after the closing date of the last

17 campaign statement required to be filed before an election. For

18 contributions made on or after the effective date of the

19 amendatory act that added subsection (6), late contribution

20 means, for a candidate committee, contributions from the same

21 contributor with a cumulative total of $500.00 or more received

22 after the closing date of the last campaign statement required to

23 be filed before an election. For contributions made on or after

24 the effective date of the amendatory act that added subsection

25 (6), late contribution means, for a committee other than a

26 candidate committee, contributions from the same contributor with

27 a cumulative total of $2,500.00 or more received after the

1 closing date of the last campaign statement required to be filed

2 before an election.

3 Sec. 34. (1) A ballot question committee shall file a

4 campaign statement as required by this act according to the

5 following schedule:

6 (a) A preelection campaign statement, the closing date of

7 which shall be the sixteenth day before the election, shall not

8 be filed later than the eleventh day before the election.

9 (b) A postelection campaign statement, the closing date of

10 which shall be the twentieth day following the election, shall

11 not be filed later than the thirtieth day following an election.

12 If all liabilities of the committee are paid before the closing

13 date and additional contributions are not expected, the campaign

14 statement may be filed at any time after the election, but not

15 later than the thirtieth day following the election.

16 (c) Campaign statements not later than the following dates

17 every year:

18 (i) February 15 with a closing date of February 10 of that

19 year.

20 (ii) April 25 with a closing date of April 20 of that year.

21 (iii) July 25 with a closing date of July 20 of that year.

22 (d) In every odd numbered year, a campaign statement not

23 later than October 25 with a closing date of October 20 of that

24 year.

25 (2) A ballot question committee supporting or opposing a

26 statewide ballot question shall file a campaign statement, of

27 which the closing date shall be the twenty-eighth day after the

1 ~~qualification of the measure,~~ filing of the petition form, not

2 later than 35 days after the ~~ballot question is qualified for the~~

3 ~~ballot. If the ballot question fails to qualify for the ballot,~~

4 ~~the ballot question committee shall file the campaign statement~~

5 ~~within 35 days after the final deadline for qualifying, the~~

6 ~~closing date of which shall be the twenty-eighth day after the~~

7 ~~deadline.~~petition form is filed under section 483a of the

8 Michigan election law, 1954 PA 116, MCL 168.483a.

9 (3) If a ballot question committee supporting or opposing a

10 statewide ballot question fails to file a preelection statement

11 under this section, that committee or its treasurer shall pay a

12 late filing fee for each business day the statement remains not

13 filed in violation of this section, not to exceed $1,000.00,

14 pursuant to the following schedule:

15 (a) First day--$25.00.

16 (b) Second day--$50.00.

17 (c) Third day--$75.00.

18 (d) Fourth day and for each subsequent day that the

19 statement remains unfiled--$100.00.

20 (4) If a treasurer or other individual designated as

21 responsible for the record keeping, report preparation, or report

22 filing of a ballot question committee supporting or opposing a

23 statewide ballot question fails to file a statement, other than a

24 preelection statement, under this section, that committee,

25 treasurer, or other designated individual shall pay a late filing

26 fee. If the committee has raised $10,000.00 or less during the

27 previous 2 years, the late filing fee shall be $25.00 for each

1 business day the campaign statement remains unfiled, but not to

2 exceed $1,000.00. If the committee has raised more than

3 $10,000.00 during the previous 2 years, the late filing fee shall

4 be $50.00 for each business day the campaign statement remains

5 unfiled, but not to exceed $2,000.00.

6 (5) If a treasurer or other individual designated as

7 responsible for the record keeping, report preparation, or report

8 filing of a ballot question committee supporting or opposing

9 other than a statewide ballot question fails to file a statement

10 under this section, that committee, treasurer, or other

11 designated individual shall pay a late filing fee. If the

12 committee has raised $10,000.00 or less during the previous 2

13 years, the late filing fee shall be $25.00 for each business day

14 the campaign statement remains unfiled, but not to exceed

15 $1,000.00. If the committee has raised more than $10,000.00

16 during the previous 2 years, the late filing fee shall be $50.00

17 for each business day the campaign statement remains unfiled, but

18 not to exceed $2,000.00.

19 (6) If a treasurer or other individual designated as

20 responsible for the record keeping, report preparation, or report

21 filing of a ballot question committee fails to file a statement

22 as required by subsection (1) or (2) for more than 7 days, that

23 treasurer or other designated individual is guilty of a

24 misdemeanor, punishable by a fine of not more than $1,000.00, or

25 imprisonment for not more than 90 days, or both.

26 (7) If a treasurer or other individual designated as

27 responsible for the record keeping, report preparation, or report

1 filing of a ballot question committee knowingly files an

2 incomplete or inaccurate statement or report required by this

3 section, that treasurer or other designated individual is subject

4 to a civil fine of not more than $1,000.00 or the amount of the

5 undisclosed contribution, whichever is greater.

6 Sec. 36. (1) A candidate committee for a state elective

7 office or a judicial office shall file a copy of the campaign

8 statement required under this act with the secretary of state.

9 The secretary of state shall reproduce the copy and transmit the

10 reproduction to the clerk of the county of residence of the

11 candidate.

12 (2) A ballot question committee supporting or opposing a

13 statewide ballot question shall file a copy of the campaign

14 statement required under this act with the secretary of state and

15 with the clerk of the most populous county in the state. A Except

16 as otherwise provided in this subsection, a ballot question

17 committee supporting or opposing a ballot question to be voted

18 upon in more than 1 county, but not statewide, shall file a copy

19 of the campaign statement required under this act with the clerk

20 of the county in which the greatest number of registered voters

21 eligible to vote on the ballot question reside. A Except as

22 otherwise provided in this subsection, a ballot question

23 committee supporting or opposing a ballot question to be voted

24 upon within a single county shall file a copy of the campaign

25 statement required under this act only with the clerk of that

26 county. If a ballot question committee is registered with the

27 secretary of state and is supporting or opposing a nonstatewide

1 ballot question, that ballot question committee is only required

2 to file the campaign statement required under this act with the

3 secretary of state.

4 (3) A political party committee shall file a copy of the

5 campaign statement required under this act with the secretary of

6 state. The secretary of state shall reproduce a copy of the

7 campaign statement of a political party committee that is a

8 county committee and file the copy with the clerk of the county

9 where the county committee operates.

10 (4) A committee supporting or opposing a candidate for local

11 elective office, if the office is to be voted on in more than 1

12 county but not statewide, shall file a copy of the campaign

13 statement required under this act with the clerk of the county in

14 which the greatest number of registered voters eligible to vote

15 on the office reside.

16 (5) If a committee is registered with the secretary of state

17 and is supporting or opposing the recall of a local elective

18 officeholder, that committee is only required to file the

19 campaign statement required under this act with the secretary of

20 state.

21 (6) ~~(5)~~ A committee not covered under subsection (1), (2),

22 (3), or (4), or (5) shall file a copy of the campaign statement

23 required under this act with the secretary of state, except that

24 a committee reporting contributions or expenditures for a

25 candidate within only 1 county shall file a statement only with

26 the clerk of that county.

27 (7) ~~(6)~~ A local unit of government that receives copies of

1 campaign statements under this section shall make the statements

2 available for public inspection and reproduction during regular

3 business hours of the local unit of government. The local unit of

4 government shall make the statements available as soon as

5 practicable after receipt, but not later than the third business

6 day following the day on which they are received.

7 Sec. 47. (1) Except as otherwise provided in this subsection

8 and subject to subsections (3) and (4), a billboard, placard,

9 poster, pamphlet, or other printed matter having reference to an

10 election, a candidate, or a ballot question, shall bear upon it

11 the name and address of the person paying for the matter. Except

12 as otherwise provided in this subsection and subject to

13 subsections (3) and (4), if the printed matter relating to a

14 candidate is an independent expenditure that is not authorized in

15 writing by the candidate committee of that candidate, the printed

16 matter shall contain the following disclaimer: "Not authorized by

17 any candidate committee". An individual other than a candidate is

18 not subject to this subsection if the individual is acting

19 independently and not acting as an agent for a candidate or any

20 committee. This subsection does not apply to communications

21 between a separate segregated fund established under section 55

22 and individuals who can be solicited for contributions to that

23 separate segregated fund under section 55.

24 (2) A radio or television paid advertisement having

25 reference to an election, a candidate, or a ballot question shall

26 identify the sponsoring person as required by the federal

27 communications commission, shall bear the name of the person

1 paying for the advertisement, and shall be in compliance with

2 subsection (3) and with the following:

3 (a) If the radio or television paid advertisement relates to

4 a candidate and is an independent expenditure, the advertisement

5 shall contain the following disclaimer: "Not authorized by any

6 candidate".

7 (b) If the radio or television paid advertisement relates to

8 a candidate and is not an independent expenditure but is paid for

9 by a person other than the candidate to which it is related, the

10 advertisement shall contain the following disclaimer:

11 "Authorized by ............................................".

12 (name of candidate or name of candidate committee)

13 (3) The size and placement of an identification or

14 disclaimer required by this section shall be determined by rules

15 promulgated by the secretary of state. The rules may exempt

16 printed matter and certain other items such as campaign buttons

17 or balloons, the size of which makes it unreasonable to add an

18 identification or disclaimer, from the identification or

19 disclaimer required by this section.

20 (4) Except for a candidate committee's printed matter or

21 radio or television paid advertisements, each identification or

22 disclaimer required by this section shall also indicate that the

23 printed matter or radio or television paid advertisement is paid

24 for "with regulated funds". Printed matter or a radio or

25 television paid advertisement that is not subject to this act

26 shall not bear the statement required by this subsection.

1 (5) A person who knowingly violates this section is guilty

2 of a misdemeanor punishable by a fine of not more than $1,000.00,

3 or imprisonment for not more than 93 days, or both.

4 Sec. 55. (1) A corporation organized on a for profit or

5 nonprofit basis, a joint stock company, a domestic dependent

6 sovereign, or a labor organization formed under the laws of this

7 or another state or foreign country may make an expenditure for

8 the establishment and administration and solicitation of

9 contributions to a separate segregated fund to be used for

10 political purposes. A separate segregated fund established under

11 this section shall be limited to making contributions to, and

12 expenditures on behalf of, candidate committees, ballot question

13 committees, political party committees, political committees, ~~and~~

14 independent committees, and other separate segregated funds.

15 (2) Contributions for a separate segregated fund established

16 by a corporation, organized on a for profit basis, or a joint

17 stock company under this section may be solicited from any of the

18 following persons or their spouses:

19 (a) Stockholders of the corporation or company.

20 (b) Officers and directors of the corporation or company.

21 (c) Employees of the corporation or company who have policy

22 making, managerial, professional, supervisory, or administrative

23 nonclerical responsibilities.

24 (3) Contributions for a separate segregated fund established

25 under this section by a corporation organized on a nonprofit

26 basis may be solicited from any of the following persons or their

27 spouses:

1 (a) Members of the corporation who are individuals.

2 (b) Stockholders of members of the corporation.

3 (c) Officers or directors of members of the corporation.

4 (d) Employees of the members of the corporation who have

5 policy making, managerial, professional, supervisory, or

6 administrative nonclerical responsibilities.

7 (e) Employees of the corporation who have policy making,

8 managerial, professional, supervisory, or administrative

9 nonclerical responsibilities.

10 (4) Contributions for a separate segregated fund established

11 under this section by a labor organization may be solicited from

12 any of the following persons or their spouses:

13 (a) Members of the labor organization who are individuals.

14 (b) Officers or directors of the labor organization.

15 (c) Employees of the labor organization who have policy

16 making, managerial, professional, supervisory, or administrative

17 nonclerical responsibilities.

18 (5) Contributions for a separate segregated fund established

19 under this section by a domestic dependent sovereign may be

20 solicited from an individual who is a member of any domestic

21 dependent sovereign.

22 (6) Contributions shall not be obtained for a separate

23 segregated fund established under this section by use of coercion

24 or physical force, by making a contribution a condition of

25 employment or membership, or by using or threatening to use job

26 discrimination or financial reprisals. A corporation organized on

27 a for profit or nonprofit basis, a joint stock company, a

1 domestic dependent sovereign, or a labor organization shall not

2 solicit or obtain contributions for a separate segregated fund

3 established under this section from an individual described in

4 subsection (2), (3), (4), or (5) on an automatic or passive basis

5 including but not limited to a payroll deduction plan or reverse

6 checkoff method. A corporation organized on a for profit or

7 nonprofit basis, a joint stock company, a domestic dependent

8 sovereign, or a labor organization may solicit or obtain

9 contributions for a separate segregated fund established under

10 this section from an individual described in subsection (2), (3),

11 (4), or (5) on an automatic basis, including but not limited to a

12 payroll deduction plan, only if the individual who is

13 contributing to the fund affirmatively consents to the

14 contribution at least once in every calendar year.

15 (7) A person who knowingly violates this section is guilty

16 of a felony punishable, if the person is an individual, by a fine

17 of not more than $5,000.00 or imprisonment for not more than 3

18 years, or both, or, if the person is not an individual, by a fine

19 of not more than $10,000.00.

20 (8) If a corporation, joint stock company, domestic

21 dependent sovereign, or labor organization that obtains

22 contributions for a separate segregated fund from individuals

23 described in subsection (2), (3), (4), or (5) pays to 1 or more

24 of those individuals a bonus or other remuneration for the

25 purpose of reimbursing those contributions, then that

26 corporation, joint stock company, domestic dependent sovereign,

27 or labor organization is subject to a civil fine equal to 2 times