SENATE BILL No. 661

 

 

October 31, 2013, Introduced by Senator MEEKHOF and referred to the Committee on Local Government and Elections.

 

 

 

     A bill to amend 1976 PA 388, entitled

 

"Michigan campaign finance act,"

 

by amending sections 33, 46, 52, 52a, and 69 (MCL 169.233, 169.246,

 

169.252, 169.252a, and 169.269), section 33 as amended by 2012 PA

 

273, sections 52 and 69 as amended by 2001 PA 250, and section 52a

 

as added by 1995 PA 264.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 33. (1) A committee, other than an independent committee

 

or a political committee required to file with the secretary of

 

state, supporting or opposing a candidate shall file complete

 

campaign statements as required by this act and the rules

 

promulgated under this act. The campaign statements shall be filed

 

according to the following schedule:

 

     (a) A preelection campaign statement shall be filed not later

 


than the eleventh day before an election. The closing date for a

 

campaign statement filed under this subdivision shall be the

 

sixteenth day before the election.

 

     (b) A postelection campaign statement shall be filed not later

 

than the thirtieth day following the election. The closing date for

 

a campaign statement filed under this subdivision shall be the

 

twentieth day following the election. A committee supporting a

 

candidate who loses the primary election shall file closing

 

campaign statements in accordance with this section. If all

 

liabilities of that candidate or committee are paid before the

 

closing date and additional contributions are not expected, the

 

campaign statement may be filed at any time after the election, but

 

not later than the thirtieth day following the election.

 

     (c) In a year in which there is no election for the candidate

 

the committee is supporting or opposing:

 

     (i) Not later than July 25 with a closing date of July 20 of

 

that year.

 

     (ii) Not later than October 25 with a closing date of October

 

20 of that year.

 

     (2) For the purposes of subsection (1):

 

     (a) A candidate committee shall file a preelection campaign

 

statement and a postelection campaign statement for each election

 

in which the candidate seeks nomination or election, except if an

 

individual becomes a candidate after the closing date for the

 

preelection campaign statement only the postelection campaign

 

statement is required for that election.

 

     (b) A committee other than a candidate committee shall file a

 


campaign statement for each period during which expenditures are

 

made for the purpose of influencing the nomination or election of a

 

candidate or for the qualification, passage, or defeat of a ballot

 

question.

 

     (3) An independent committee or a political committee other

 

than a house political party caucus committee or senate political

 

party caucus committee required to file with the secretary of state

 

shall file campaign statements as required by this act according to

 

the following schedule:

 

     (a) Not later than February 15 of each year with a closing

 

date of February 10 of that year.

 

     (b) Not later than April 25 of each year with a closing date

 

of April 20 of that year.

 

     (c) Not later than July 25 of each year with a closing date of

 

July 20 of that year.

 

     (d) Not later than October 25 of each year with a closing date

 

of October 20 of that year.

 

     (4) A house political party caucus committee or a senate

 

political party caucus committee required to file with the

 

secretary of state or a political party committee for a party

 

attempting to qualify as a new political party under section 685 of

 

the Michigan election law, 1954 PA 116, MCL 168.685, shall file

 

campaign statements as required by this act according to the

 

following schedule:

 

     (a) Not later than January 31 of each year with a closing date

 

of December 31 of the immediately preceding year.

 

     (b) Not later than April 25 of each year with a closing date

 


of April 20 of that year.

 

     (c) Not later than July 25 of each year with a closing date of

 

July 20 of that year.

 

     (d) Not later than October 25 of each year with a closing date

 

of October 20 of that year.

 

     (e) For the period beginning on the fourteenth day immediately

 

preceding a primary or special primary election and ending on the

 

day immediately following the primary or special primary election,

 

not later than 4 p.m. each business day with a closing date of the

 

immediately preceding day, only for a contribution received or

 

expenditure made that exceeds $1,000.00 per day.

 

     (f) For the period beginning on the fourteenth day immediately

 

preceding a general or special election and ending on the day

 

immediately following the general or special election, not later

 

than 4 p.m. each business day with a closing date of the

 

immediately preceding day, only for a contribution received or

 

expenditure made that exceeds $1,000.00 per day.

 

     (5) Notwithstanding subsection (3) or (4) or section 51, if an

 

independent expenditure is made within 45 days before a special

 

election by an independent committee or a political committee

 

required to file a campaign statement with the secretary of state,

 

a report of the expenditure shall be filed by the committee with

 

the secretary of state within 48 hours after the expenditure. The

 

report shall be made on a form provided by the secretary of state

 

and shall include the date of the independent expenditure, the

 

amount of the expenditure, a brief description of the nature of the

 

expenditure, and the name and address of the person to whom the

 


expenditure was paid. The brief description of the expenditure

 

shall include either the name of the candidate and the office

 

sought by the candidate or the name of the ballot question and

 

shall state whether the expenditure supports or opposes the

 

candidate or ballot question. This subsection does not apply if the

 

committee is required to report the independent expenditure in a

 

campaign statement that is required to be filed before the date of

 

the election for which the expenditure was made.

 

     (6) A candidate committee or a committee other than a

 

candidate committee that files a written statement under section

 

24(5) or (6) is not required to file a campaign statement under

 

subsection (1), (3), or (4) unless it received or expended an

 

amount in excess of $1,000.00. If the committee receives or expends

 

an amount in excess of $1,000.00 during a period covered by a

 

filing, the committee is then subject to the campaign filing

 

requirements under this act.

 

     (7) A committee, candidate, treasurer, or other individual

 

designated as responsible for the committee's record keeping,

 

report preparation, or report filing who fails to file a statement

 

as required by this section shall pay a late filing fee. If the

 

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

 

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

 

the statement remains unfiled, but not to exceed $500.00. If the

 

committee has raised more than $10,000.00 during the previous 2

 

years, the late filing fee shall not exceed $1,000.00, determined

 

as follows:

 

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

 


remains unfiled.

 

     (b) An additional $25.00 for each business day after the first

 

3 business days the report remains unfiled.

 

     (c) An additional $50.00 for each business day after the first

 

10 business days the report remains unfiled.

 

     (8) If a candidate, treasurer, or other individual designated

 

as responsible for the committee's record keeping, report

 

preparation, or report filing fails to file 2 statements required

 

by this section or section 35 and both of the statements remain

 

unfiled for more than 30 days, that candidate, treasurer, or other

 

designated individual is guilty of a misdemeanor punishable by a

 

fine of not more than $1,000.00 or imprisonment for not more than

 

90 days, or both.

 

     (9) If a candidate is found guilty of a violation of this

 

section, the circuit court for that county, on application by the

 

attorney general or the prosecuting attorney of that county, may

 

prohibit that candidate from assuming the duties of a public office

 

or from receiving compensation from public funds, or both.

 

     (10) If a candidate, treasurer, or other individual designated

 

as responsible for a committee's record keeping, report

 

preparation, or report filing knowingly files an incomplete or

 

inaccurate statement or report required by this section, that

 

individual is subject to a civil fine of not more than $1,000.00.

 

     (11) If a candidate, treasurer, or other individual designated

 

as responsible for a committee's record keeping, report

 

preparation, or report filing knowingly omits or underreports

 

individual contributions or individual expenditures required to be

 


disclosed by this act, that individual is subject to a civil fine

 

of not more than $1,000.00 or the amount of the contributions and

 

expenditures omitted or underreported, whichever is greater.

 

     (12) If a candidate committee's account has a balance of

 

$20,000.00 or more and a candidate, treasurer, or other individual

 

designated as responsible for that committee's record keeping,

 

report preparation, or report filing fails to file campaign

 

statements required under this act for 2 consecutive years, that

 

candidate, treasurer, or other individual is guilty of a felony

 

punishable by imprisonment for not more than 3 years or a fine of

 

not more than $5,000.00, or both. Any money in a candidate

 

committee account described in this subsection is subject to

 

seizure by, and forfeiture to, this state as provided in this

 

section.

 

     (13) Not more than 5 business days after seizure of money

 

under subsection (12), the secretary of state shall deliver

 

personally or by registered mail to the last known address of the

 

candidate from whom the seizure was made an inventory statement of

 

the money seized. The inventory statement shall also contain notice

 

to the effect that unless demand for hearing as provided in this

 

section is made within 10 business days, the money is forfeited to

 

this state. Within 10 business days after the date of service of

 

the notice, the candidate may by registered mail, facsimile

 

transmission, or personal service file with the secretary of state

 

a demand for a hearing before the secretary of state or a person

 

designated by the secretary of state for a determination as to

 

whether the money was lawfully subject to seizure and forfeiture.

 


The candidate is entitled to appear before the secretary of state

 

or a person designated by the secretary of state, to be represented

 

by counsel, and to present testimony and argument. Upon receipt of

 

a request for hearing, the secretary of state or a person

 

designated by the secretary of state shall hold the hearing within

 

15 business days. The hearing is not a contested case proceeding

 

and is not subject to the administrative procedures act of 1969,

 

1969 PA 306, MCL 24.201 to 24.328. After the hearing, the secretary

 

of state or a person designated by the secretary of state shall

 

render a decision in writing within 10 business days of the hearing

 

and, by order, shall either declare the money subject to seizure

 

and forfeiture or declare the money returnable to the candidate.

 

If, within 10 business days after the date of service of the

 

inventory statement, the candidate does not file with the secretary

 

of state a demand for a hearing before the secretary of state or a

 

person designated by the secretary of state, the money seized is

 

forfeited to this state by operation of law. If, after a hearing

 

before the secretary of state or a person designated by the

 

secretary of state, the secretary of state or a person designated

 

by the secretary of state determines that the money is lawfully

 

subject to seizure and forfeiture and the candidate does not appeal

 

to the circuit court of the county in which the seizure was made

 

within the time prescribed in this section, the money seized is

 

forfeited to this state by operation of law. If a candidate is

 

aggrieved by the decision of the secretary of state or a person

 

designated by the secretary of state, that candidate may appeal to

 

the circuit court of the county where the seizure was made to

 


obtain a judicial determination of the lawfulness of the seizure

 

and forfeiture. The action shall be commenced within 20 days after

 

notice of a determination by the secretary of state or a person

 

designated by the secretary of state is sent to the candidate. The

 

court shall hear the action and determine the issues of fact and

 

law involved in accordance with rules of practice and procedure as

 

in other in rem proceedings.

 

     Sec. 46. (1) At the beginning of every odd numbered year, the

 

secretary of state shall recommend adjustments to and which shall

 

be approved by the legislature of the dollar value contribution

 

limits provided in this act, together with the dollar value floor

 

for reporting of the name, address, occupation, and employer, or

 

principal place of business of persons who make contributions

 

pursuant to this chapter act, on the basis of the United States

 

department of commerce's consumer price index and the number of

 

registered voters in the state.

 

     (2) Beginning January 1, 2019 and every 4 years therafter, the

 

secretary of state shall adjust the dollar value contribution

 

limits provided in sections 52, 52a, and 69(1). The secretary of

 

state shall adjust the limits in sections 52, 52a, and 69(1) by

 

comparing the percentage increase or decrease in the consumer price

 

index for the preceding August by the corresponding consumer price

 

index 4 years earlier. The secretary of state shall multiply that

 

percentage change by the amounts in sections 52, 52a, and 69(1).

 

The secretary of state shall round up each dollar value adjustment

 

made under this subsection to the nearest $25.00. The secretary of

 

state shall announce the adjustments made under this subsection by

 


December 15 of each year.

 

     (3) As used in this section, "consumer price index" means the

 

most comprehensive index of consumer prices available for the

 

Detroit area from the bureau of labor statistics of the United

 

States department of labor.

 

     Sec. 52. (1) Except as provided in subsection (5) or (11) and

 

subject to section 46 and subsection (8), a person other than an

 

independent committee or a political party committee shall not make

 

contributions to a candidate committee of a candidate for elective

 

office that, with respect to an election cycle, are more than the

 

following:

 

     (a) $3,400.00 $6,800.00 for a candidate for state elective

 

office other than the office of state legislator, or for a

 

candidate for local elective office if the district from which he

 

or she is seeking office has a population of more than 250,000.

 

     (b) $1,000.00 $2,000.00 for a candidate for state senator, or

 

for a candidate for local elective office if the district from

 

which he or she is seeking office has a population of more than

 

85,000 but 250,000 or less.

 

     (c) $500.00 $1,000.00 for a candidate for state

 

representative, or for a candidate for local elective office if the

 

district from which he or she is seeking office has a population of

 

85,000 or less.

 

     (2) Except as otherwise provided in this subsection and

 

subsection (12), an independent committee shall not make

 

contributions to a candidate committee of a candidate for elective

 

office that, in the aggregate for that election cycle, are more

 


than 10 times the amount permitted a person other than an

 

independent committee or political party committee in subsection

 

(1). A house political party caucus committee or a senate political

 

party caucus committee is not limited under this subsection in the

 

amount of contributions made to the candidate committee of a

 

candidate for the office of state legislator, except as follows:

 

     (a) A house political party caucus committee or a senate

 

political party caucus committee shall not pay a debt incurred by a

 

candidate if that debt was incurred while the candidate was seeking

 

nomination at a primary election and the candidate was opposed at

 

that primary.

 

     (b) A house political party caucus committee or a senate

 

political party caucus committee shall not make a contribution to

 

or make an expenditure on behalf of a candidate if that candidate

 

is seeking nomination at a primary election and the candidate is

 

opposed at that primary.

 

     (3) A political party committee other than a state central

 

committee shall not make contributions to the candidate committee

 

of a candidate for elective office that are more than 10 times the

 

amount permitted a person other than an independent committee or

 

political party committee in subsection (1).

 

     (4) A state central committee of a political party shall not

 

make contributions to the candidate committee of a candidate for

 

state elective office other than a candidate for the legislature

 

that are more than 20 times the amount permitted a person other

 

than an independent committee or political party committee in

 

subsection (1). A state central committee of a political party

 


shall not make contributions to the candidate committee of a

 

candidate for state senator, state representative, or local

 

elective office that are more than 10 times the amount permitted a

 

person other than an independent committee or political party

 

committee in subsection (1).

 

     (5) A contribution from a member of a candidate's immediate

 

family to the candidate committee of that candidate is exempt from

 

the limitations of subsection (1).

 

     (6) Consistent with the provisions of this section, a

 

contribution designated in writing for a particular election cycle

 

is considered made for that election cycle. A contribution made

 

after the close of a particular election cycle and designated in

 

writing for that election cycle shall be made only to the extent

 

that the contribution does not exceed the candidate committee's net

 

outstanding debts and obligations from the election cycle so

 

designated. If a contribution is not designated in writing for a

 

particular election cycle, the contribution is considered made for

 

the election cycle that corresponds to the date of the written

 

instrument.

 

     (7) A candidate committee, a candidate, or a treasurer or

 

agent of a candidate committee shall not accept a contribution with

 

respect to an election cycle that exceeds the limitations in

 

subsection (1), (2), (3), (4), (11), or (12).

 

     (8) The contribution limits in subsection (1) for a candidate

 

for local elective office are effective on the effective date of

 

the amendatory act that provides for those contribution limits,

 

however, only contributions received by that candidate on and after

 


that date shall be used to determine if the contribution limit has

 

been reached.

 

     (9) A person who knowingly violates this section is guilty of

 

a misdemeanor punishable, if the person is an individual, by a fine

 

of not more than $1,000.00 or imprisonment for not more than 90

 

days, or both, or, if the person is not an individual, by a fine of

 

not more than $10,000.00.

 

     (10) For purposes of the limitations provided in subsections

 

(1) and (2), all contributions made by political committees or

 

independent committees established by any corporation, joint stock

 

company, domestic dependent sovereign, or labor organization,

 

including any parent, subsidiary, branch, division, department, or

 

local unit thereof, shall be considered to have been made by a

 

single independent committee. By way of illustration and not

 

limitation, all of the following apply as a result of the

 

application of this requirement:

 

     (a) All of the political committees and independent committees

 

established by a for profit corporation or joint stock company, by

 

a subsidiary of the for profit corporation or joint stock company,

 

or by any combination thereof, are treated as a single independent

 

committee.

 

     (b) All of the political committees and independent committees

 

established by a single national or international labor

 

organization, by a labor organization of that national or

 

international labor organization, by a local labor organization of

 

that national or international labor organization, or by any other

 

subordinate organization of that national or international labor

 


organization, or by any combination thereof, are treated as a

 

single independent committee.

 

     (c) All of the political committees and independent committees

 

established by an organization of national or international unions,

 

by a state central body of that organization, by a local central

 

body of that organization, or by any combination thereof, are

 

treated as a single independent committee.

 

     (d) All of the political committees and independent committees

 

established by a nonprofit corporation, by a related state entity

 

of that nonprofit corporation, by a related local entity of that

 

nonprofit corporation, or by any combination thereof, are treated

 

as a single independent committee.

 

     (11) The limitation on a political committee's contributions

 

under subsection (1) does not apply to contributions that are part

 

of 1 or more bundled contributions delivered to the candidate

 

committee of a candidate for statewide elective office and that are

 

attributed to the political committee as prescribed in section 31.

 

A political committee shall not make contributions to a candidate

 

committee of a candidate for statewide elective office that are

 

part of 1 or more bundled contributions delivered to that candidate

 

committee, that are attributed to the political committee as

 

prescribed in section 31, and that, in the aggregate for that

 

election cycle, are more than the amount permitted a person other

 

than an independent committee or political party committee in

 

subsection (1).

 

     (12) The limitation on an independent committee's

 

contributions under subsection (2) does not apply to contributions

 


that are part of 1 or more bundled contributions delivered to the

 

candidate committee of a candidate for statewide elective office

 

and that are attributed to the independent committee as prescribed

 

in section 31. An independent committee shall not make

 

contributions to a candidate committee of a candidate for statewide

 

elective office that are part of 1 or more bundled contributions

 

delivered to that candidate committee, that are attributed to the

 

independent committee as prescribed in section 31, and that, in the

 

aggregate for that election cycle, are more than 10 times the

 

amount permitted a person other than an independent committee or

 

political party committee in subsection (1).

 

     Sec. 52a. (1) A Subject to section 46, a person shall not make

 

contributions to a house political party caucus committee or a

 

senate political party caucus committee that exceed $20,000.00

 

$40,000.00 in a calendar year. A house political party caucus

 

committee or a senate political party caucus committee or a

 

treasurer or agent of the committee shall not accept a contribution

 

with respect to a 2-year election cycle that exceeds the limitation

 

in this section.

 

     (2) A person who knowingly violates this section is guilty of

 

a misdemeanor punishable, if the person is an individual, by a fine

 

of not more than $1,000.00 or imprisonment for not more than 90

 

days, or both, or, if the person is not an individual, by a fine of

 

not more than $10,000.00.

 

     Sec. 69. (1) Except as provided in subsection (6) or (10) and

 

subject to section 46, a person other than an independent committee

 

or a political party committee shall not make contributions to a

 


candidate committee of a candidate that are more than $3,400.00

 

$6,800.00 in value for an election cycle.

 

     (2) Except as provided in subsection (11), an independent

 

committee shall not make contributions to a candidate committee

 

that for an election cycle are more than 10 5 times the amount

 

permitted a person other than an independent committee or political

 

party committee in subsection (1).

 

     (3) A political party committee that is a state central

 

committee shall not make contributions to a candidate committee

 

that for an election cycle are more than $750,000.00.

 

     (4) A political party committee that is a congressional

 

district or county committee shall not make contributions to a

 

candidate committee that for an election cycle are more than

 

$30,000.00.

 

     (5) A candidate committee, a candidate, or a treasurer or

 

agent shall not accept a contribution with respect to an election

 

cycle that exceeds a limitation in subsections (1) to (4), or (10).

 

     (6) As used in this subsection, "immediate family" means a

 

spouse, parent, brother, sister, son, or daughter. A candidate and

 

members of that candidate's immediate family may not contribute in

 

total to that person's candidate committee an amount that is more

 

than $50,000.00 in value for an election cycle.

 

     (7) Sections 5(3) and 52(6) apply to determining when an

 

election cycle begins and ends and to which election cycle a

 

particular contribution is attributed.

 

     (8) The candidate committee of a candidate for governor that

 

does not apply for funds from the state campaign fund and that

 


accepts from the candidate and the candidate's immediate family

 

contributions that total for an election cycle more than

 

$340,000.00 shall notify the secretary of state in writing within

 

48 hours after receipt of this amount. Within 2 business days after

 

receipt of this notice, the secretary of state shall send notice to

 

all candidates who are either seeking the same nomination, in the

 

case of a primary election, or election to that same office, in the

 

case of a general election, informing those candidate committees of

 

all of the following:

 

     (a) That the expenditure limits provided in section 67 are

 

waived for the remainder of that election for those notified

 

candidate committees that receive funds from the state campaign

 

fund under this act.

 

     (b) That the expenditure limits of section 67 are not waived

 

for the purpose of determining the amount of public funds available

 

to a candidate under section 64 or 65.

 

     (9) A person who knowingly violates this section is guilty of

 

a misdemeanor punishable, if the person is an individual, by a fine

 

of not more than $1,000.00 or imprisonment for not more than 90

 

days, or both, or, if the person is not an individual, by a fine of

 

not more than $10,000.00.

 

     (10) The limitation on a political committee's contributions

 

under subsection (1) does not apply to contributions that are part

 

of 1 or more bundled contributions delivered to the candidate

 

committee of a candidate for statewide elective office and that are

 

attributed to the political committee as prescribed in section 31.

 

A political committee shall not make contributions to a candidate

 


committee of a candidate for statewide elective office that are

 

part of 1 or more bundled contributions delivered to that candidate

 

committee, that are attributed to the political committee as

 

prescribed in section 31, and that, in the aggregate for that

 

election cycle, are more than the amount permitted a person other

 

than an independent committee or political party committee in

 

subsection (1).

 

     (11) The limitation on an independent committee's

 

contributions under subsection (2) does not apply to contributions

 

that are part of 1 or more bundled contributions delivered to the

 

candidate committee of a candidate for statewide elective office

 

and that are attributed to the independent committee as prescribed

 

in section 31. An independent committee shall not make

 

contributions to a candidate committee of a candidate for statewide

 

elective office that are part of 1 or more bundled contributions

 

delivered to that candidate committee, that are attributed to the

 

independent committee as prescribed in section 31, and that, in the

 

aggregate for that election cycle, are more than 10 5 times the

 

amount permitted a person other than an independent committee or

 

political party committee in subsection (1).