HOUSE BILL No. 5531
December 13, 2001, Introduced by Rep. Kolb and referred to the Committee on Redistricting and Elections. A bill to amend 1976 PA 388, entitled "Michigan campaign finance act," by amending sections 3, 5, 7, 9, 10, 11, 12, 51, and 52 (MCL 169.203, 169.205, 169.207, 169.209, 169.210, 169.211, 169.212, 169.251, and 169.252), sections 3 and 51 as amended by 1989 PA 95, section 5 as amended by 1999 PA 237, section 7 as amended by 1994 PA 385, and sections 9, 11, 12, and 52 as amended by 1996 PA 590, and by adding sections 33b, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 106, 107, 108, and 109; and to repeal acts and parts of acts. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 3. (1) "Candidate" means an individual WHO MEETS 1 OF 2 THE FOLLOWING CRITERIA: 3 (a) who files FILES a fee, affidavit of incumbency, or 4 nominating petition for an elective office. ; 01102'01 CAS 2 1 (b) whose nomination IS NOMINATED as a candidate for 2 elective office by a political party caucus or convention AND THE 3 NOMINATION is certified to the appropriate filing official. ; 4 (c) who receives RECEIVES a contribution, makes an expen- 5 diture, or gives consent for another person to receive a contri- 6 bution or make an expenditure with a view to bringing about the 7 individual's nomination or election to an elective office, 8 whether or not the specific elective office for which the indi- 9 vidual will seek nomination or election is known at the time the 10 contribution is received or the expenditure is made. ; or 11 (d) who is IS an officeholder who is the subject of a 12 recall vote. Unless 13 (E) HOLDS AN ELECTIVE OFFICE, UNLESS the officeholder is 14 constitutionally or legally barred from seeking reelection or 15 fails to file for reelection to that office by the applicable 16 filing deadline. , an elected officeholder shall be AN INDIVID- 17 UAL DESCRIBED IN THIS SUBDIVISION IS considered to be a candidate 18 for reelection to that same office for the purposes of this act 19 only. 20 For purposes of sections 61 to 71, "candidate" only means, 21 in a primary election, a candidate for the office of governor 22 and, in a general election, a candidate for the office of gover- 23 nor or lieutenant governor. However, the candidates for the 24 office of governor and lieutenant governor of the same political 25 party in a general election shall be considered as 1 candidate. 26 (2) "Candidate committee" means the committee designated in 27 a candidate's filed statement of organization as that 01102'01 3 1 individual's candidate committee. A candidate committee shall be 2 under the control and direction of the candidate named in the 3 same statement of organization. Notwithstanding subsection (4) 4 (5), an individual shall form a candidate committee pursuant to 5 UNDER section 21 when the individual becomes a candidate under 6 subsection (1). 7 (3) "CERTIFIED CANDIDATE" MEANS A CANDIDATE RUNNING FOR THE 8 OFFICE OF GOVERNOR, STATE SENATOR, OR STATE REPRESENTATIVE WHO 9 CHOOSES TO PARTICIPATE UNDER THE PUBLIC CAMPAIGN LAW AND WHO IS 10 CERTIFIED AS A PUBLIC CAMPAIGN LAW CANDIDATE UNDER SECTION 97. 11 (4) (3) "Closing date" means the date through which a cam- 12 paign statement is required to be complete. 13 (5) (4) "Committee" means a person who receives contribu- 14 tions or makes expenditures for the purpose of influencing or 15 attempting to influence the action of the voters for or against 16 the nomination or election of a candidate, or the qualification, 17 passage, or defeat of a ballot question, if contributions 18 received total $500.00 or more in a calendar year or expenditures 19 made total $500.00 or more in a calendar year. An individual, 20 other than a candidate, does not constitute a committee. A 21 person, other than a committee registered under this act, 22 making WHO MAKES an expenditure to a ballot question committee, 23 shall for that reason, IS not be considered a committee for 24 the purposes of this act unless the person solicits or receives 25 contributions for the purpose of making an expenditure to that 26 ballot question committee. 01102'01 4 1 Sec. 5. (1) "Domestic dependent sovereign" means an Indian 2 tribe that has been acknowledged, recognized, restored, or 3 reaffirmed as an Indian tribe by the secretary of the interior 4 pursuant to AS PROVIDED IN chapter 576, 48 Stat. 984, 25 5 U.S.C. 461 to 463, 464 to 465, 466 to 470, 471 to 472, 473, 474 6 to 475, 476 to 478, and 479, commonly referred to as the Indian 7 reorganization act, or has otherwise been acknowledged by the 8 United States government as an Indian tribe. 9 (2) "Election" means a primary, general, special, or millage 10 election held in this state or a convention or caucus of a polit- 11 ical party held in this state to nominate a candidate. Election 12 includes a recall vote. 13 (3) "Election cycle" means 1 of the following: 14 (a) For a general election OR OTHER REGULARLY SCHEDULED 15 ELECTION, the period beginning the day following the last general 16 election OR OTHER REGULARLY SCHEDULED ELECTION in which the 17 office appeared on the ballot and ending on the day of the gen- 18 eral election OR OTHER REGULARLY SCHEDULED ELECTION in which the 19 office next appears on the ballot. 20 (b) For a special election, the period beginning the day a 21 special general election is called or the date the office becomes 22 vacant, whichever is earlier, and ending on the day of the spe- 23 cial general election. 24 (4) "Elective office" means a public office filled by an 25 election. A person who is appointed to fill a vacancy in a 26 public office that is ordinarily elective holds an elective 27 office. Elective office does not include the office of precinct 01102'01 5 1 delegate. Except for the purposes of sections 47, 54, and 55, 2 elective office does not include a school board member in a 3 school district that has a pupil membership of 2,400 or less 4 enrolled on the most recent pupil membership count day. However, 5 elective office includes a school board member in a school dis- 6 trict that has a pupil membership of 2,400 or less, if a candi- 7 date committee of a candidate for the office of school board 8 member in that school district receives an amount in excess of 9 $1,000.00 or expends an amount in excess of $1,000.00. Elective 10 office does not include a federal office except for the purposes 11 of section 57. 12 Sec. 7. (1) "Filed" means the receipt by the appropriate 13 filing official of a statement or report required to be filed 14 under this act. 15 (2) "Filer" means a person required to file a statement or 16 report pursuant to UNDER this act. 17 (3) "Filing official" means the official designated 18 pursuant to UNDER this act to receive required statements and 19 reports. 20 (4) "FUND" MEANS THE PUBLIC CAMPAIGN FUND ESTABLISHED IN 21 SECTION 92. 22 (5) (4) "Fund raising event" means an event such as a 23 dinner, reception, testimonial, rally, auction, bingo, or similar 24 affair through which contributions are solicited or received by 25 purchase of a ticket, payment of an attendance fee, making a 26 donation, purchase of chances for prizes, or purchase of goods or 27 services. 01102'01 6 1 (6) (5) "Gift" means a payment, subscription, advance, 2 forbearance, rendering, or deposit of money, services, or any- 3 thing of value, unless consideration of equal or greater value is 4 given in exchange. 5 (7) (6) "Honorarium" means a payment of money to a person 6 holding elective office as consideration for an appearance, a 7 speech, an article, or any activity related to or associated with 8 the performance of duties as an elected official. An honorarium 9 does not include any of the following: 10 (a) Reimbursement for the cost of transportation, accommoda- 11 tions, or meals for the person. 12 (b) Wages, salaries, other employee compensation, and 13 expenses authorized to be paid by this state or a political sub- 14 division of this state to the person holding elective office. 15 (c) An award. 16 Sec. 9. (1) "Incidental expense" means an expenditure that 17 is an ordinary and necessary expense, as described in section 162 18 of the internal revenue code of 1986, 26 U.S.C. 162, paid or 19 incurred in carrying out the business of an elective office. 20 Incidental expense includes, but is not limited to, any of the 21 following: 22 (a) A disbursement necessary to assist, serve, or communi- 23 cate with a constituent. 24 (b) A disbursement for equipment, furnishings, or supplies 25 for the office of the public official. 26 (c) A disbursement for a district office if the district 27 office is not used for campaign-related activity. 01102'01 7 1 (d) A disbursement for the public official or his or her 2 staff, or both, to attend a conference, meeting, reception, or 3 other similar event. 4 (e) A disbursement to maintain a publicly owned residence or 5 a temporary residence at the seat of government. 6 (f) An unreimbursed disbursement for travel, lodging, meals, 7 or other expenses incurred by the public official, a member of 8 the public official's immediate family, or a member of the public 9 official's staff in carrying out the business of the elective 10 office. 11 (g) A donation to a tax-exempt charitable organization, 12 including the purchase of tickets to charitable or civic events. 13 (h) A disbursement to a ballot question committee. 14 (i) A purchase of tickets for use by that public official 15 and members of his or her immediate family and staff to a 16 fund-raising event sponsored by a candidate committee, indepen- 17 dent committee, political party committee, or a political commit- 18 tee that does not exceed $100.00 per committee in any calendar 19 year. 20 (j) A disbursement for an educational course or seminar that 21 maintains or improves skills employed by the public official in 22 carrying out the business of the elective office. 23 (k) A purchase of advertisements in testimonials, program 24 books, souvenir books, or other publications if the advertisement 25 does not support or oppose the nomination or election of a 26 candidate. 01102'01 8 1 (l) A disbursement for consultation, research, polling, and 2 photographic services not related to a campaign. 3 (m) A fee paid to a fraternal, veteran, or other service 4 organization. 5 (n) A payment of a tax liability incurred as a result of 6 authorized transactions by the candidate committee of the public 7 official. 8 (o) A fee for accounting, professional, or administrative 9 services for the candidate committee of the public official. 10 (p) A debt or obligation incurred by the candidate committee 11 of a public official for a disbursement authorized by subdivi- 12 sions (a) to (o), if the debt or obligation was reported in the 13 candidate committee report filed for the year in which the debt 14 or obligation arose. 15 (2) "Independent expenditure" means an expenditure by a 16 person if the expenditure is not made at the direction of, or 17 under the control of, another person and if the expenditure is 18 not a contribution to a committee FOR A COMMUNICATION EXPRESSLY 19 ADVOCATING THE ELECTION OR DEFEAT OF A CANDIDATE OR THE PASSAGE 20 OR DEFEAT OF A BALLOT QUESTION, IF THE COMMUNICATION IS NOT MADE 21 WITH THE COOPERATION OF, WITH THE PRIOR CONSENT OF, IN CONSULTA- 22 TION WITH, OR AT THE REQUEST OR SUGGESTION OF A CANDIDATE, CANDI- 23 DATE COMMITTEE, OR BALLOT QUESTION COMMITTEE. 24 (3) "In-kind contribution or expenditure" means a contribu- 25 tion or expenditure other than money. 26 (4) "ISSUE ADVERTISEMENT" MEANS A COMMUNICATION THROUGH A 27 BROADCASTING STATION, NEWSPAPER, MAGAZINE, OUTDOOR ADVERTISING 01102'01 9 1 FACILITY, MAILING, OR ANY OTHER TYPE OF GENERAL PUBLIC POLITICAL 2 ADVERTISING THAT MEETS ALL OF THE FOLLOWING REQUIREMENTS: 3 (A) THE PURCHASE OF WHICH IS NOT AN INDEPENDENT EXPENDITURE 4 OR CONTRIBUTION. 5 (B) COSTS, IN THE AGGREGATE, $1,000.00 OR MORE. 6 (C) CONTAINS THE NAME OR LIKENESS OF A CANDIDATE. 7 (D) RECOMMENDS A POSITION ON A POLITICAL ISSUE. 8 (5) (4) "Loan" means a transfer of money, property, or 9 anything of ascertainable monetary value in exchange for an obli- 10 gation, conditional or not, to repay in whole or part. 11 (6) (5) "Local elective office" means an elective office 12 at the local unit of government level. Local elective office 13 also includes judge of the court of appeals, judge of the circuit 14 court, judge of the recorder's court of the city of Detroit, 15 judge of the district court, judge of the probate court, and 16 judge of a municipal court. 17 (7) (6) "Local unit of government" means a district, 18 authority, county, city, village, township, board, school dis- 19 trict, intermediate school district, or community college 20 district. 21 Sec. 10. (1) "Major political party" means a political 22 party qualified to have its name listed on the general election 23 ballot whose candidate for governor received 25% or more of the 24 popular vote cast in the preceding gubernatorial election. If 25 only 1 political party received 25% or more of the popular vote 26 cast for governor in the preceding gubernatorial election, then 01102'01 10 1 the political party with the second highest vote shall be 2 deemed IS a major party. 3 (2) "Minor political party" means a political party quali- 4 fied to have its name listed on the general election ballot but 5 which does not qualify as a major party. 6 (3) "Nominee" means an individual nominated to be a 7 candidate. 8 (4) "NONPARTICIPATING CANDIDATE" MEANS A CANDIDATE RUNNING 9 FOR THE OFFICE OF GOVERNOR, STATE SENATOR, OR STATE REPRESENTA- 10 TIVE WHO DOES NOT CHOOSE TO PARTICIPATE UNDER THE PUBLIC CAMPAIGN 11 LAW AND WHO IS NOT SEEKING TO BE CERTIFIED AS A PUBLIC CAMPAIGN 12 LAW CANDIDATE UNDER SECTION 97. 13 Sec. 11. (1) "PARTICIPATING CANDIDATE" MEANS A CANDIDATE 14 WHO IS RUNNING FOR THE OFFICE OF GOVERNOR, STATE SENATOR, OR 15 STATE REPRESENTATIVE WHO IS SEEKING TO BE CERTIFIED AS A PUBLIC 16 CAMPAIGN LAW CANDIDATE UNDER SECTION 97. 17 (2) (1) "Person" means a business, individual, proprietor- 18 ship, firm, partnership, joint venture, syndicate, business 19 trust, labor organization, company, corporation, association, 20 committee, or any other organization or group of persons acting 21 jointly. 22 (3) (2) "Political committee" means a committee that is 23 not a candidate committee, political party committee, independent 24 committee, or ballot question committee. 25 (4) (3) "Political merchandise" means goods such as bumper 26 stickers, pins, hats, beverages, literature, or other items sold 27 by a person at a fund raiser or to the general public for 01102'01 11 1 publicity or for the purpose of raising funds to be used in 2 supporting or opposing a candidate for nomination for or election 3 to an elective office or in supporting or opposing the qualifica- 4 tion, passage, or defeat of a ballot question. 5 (5) (4) "Political party" means a political party which 6 THAT has a right under law to have the names of its candidates 7 listed on the ballot in a general election. 8 (6) (5) "Political party committee" means a state central, 9 district, or county committee of a political party which THAT 10 is a committee. Each state central committee shall designate the 11 official party county and district committees. There shall not 12 be more than 1 officially designated political party committee 13 per county and per congressional district. 14 (7) (6) "Public body" means 1 or more of the following: 15 (a) A state agency, department, division, bureau, board, 16 commission, council, authority, or other body in the executive 17 branch of state government. 18 (b) The legislature or an agency, board, commission, or 19 council in the legislative branch of state government. 20 (c) A county, city, township, village, intercounty, inter- 21 city, or regional governing body; a council, school district, 22 special district, or municipal corporation; or a board, depart- 23 ment, commission, or council or an agency of a board, department, 24 commission, or council. 25 (d) Any other body that is created by state or local author- 26 ity or is primarily funded by or through state or local 01102'01 12 1 authority, which body exercises governmental or proprietary 2 authority or performs a governmental or proprietary function. 3 (8) "PUBLIC CAMPAIGN LAW" MEANS THE ALTERNATIVE CAMPAIGN 4 FINANCE PROVISIONS CONTAINED IN SECTIONS 91 TO 109. 5 Sec. 12. (1) "Qualifying contribution" means a contribution 6 of money made by a written instrument by an individual to the 7 candidate committee of a candidate for the office of governor 8 that is $100.00 or less and made after April 1 of the year pre- 9 ceding a year in which a governor is to be elected. Not more 10 than $100.00 of an individual's total aggregate contribution may 11 be used as a qualifying contribution in any calendar year. 12 Qualifying contribution does not include a subscription, loan, 13 advance, deposit of money, in-kind contribution or expenditure, 14 or anything else of value except as prescribed in this act. 15 Qualifying contribution does not include a contribution by an 16 individual who resides outside of this state. For purposes of 17 this subsection, an individual is considered to reside in this 18 state if he or she is considered a resident of this state under 19 the Michigan election law, Act No. 116 of the Public Acts of 20 1954, being sections 168.1 to 168.992 of the Michigan Compiled 21 Laws. THAT MEETS ALL OF THE FOLLOWING CRITERIA: 22 (A) IS IN THE AMOUNT OF $5.00 IN CASH OR IN THE FORM OF A 23 CHECK OR MONEY ORDER MADE PAYABLE TO THE FUND IN SUPPORT OF A 24 PARTICIPATING CANDIDATE. 25 (B) IS MADE BY A REGISTERED VOTER WITHIN THE DISTRICT FROM 26 WHICH THE PARTICIPATING CANDIDATE IS SEEKING OFFICE. 01102'01 13 1 (C) IS MADE DURING THE DESIGNATED QUALIFYING PERIOD. 2 (D) IS OBTAINED WITH THE KNOWLEDGE AND APPROVAL OF THE 3 PARTICIPATING CANDIDATE. 4 (E) IS ACKNOWLEDGED BY A WRITTEN RECEIPT THAT IDENTIFIES THE 5 NAME AND ADDRESS OF THE DONOR ON FORMS PROVIDED BY THE SECRETARY 6 OF STATE. 7 (2) "QUALIFYING PERIOD" MEANS 1 OF THE FOLLOWING, AS 8 APPLICABLE: 9 (A) FOR A CANDIDATE FOR THE OFFICE OF GOVERNOR, THE QUALIFY- 10 ING PERIOD BEGINS JANUARY 1 OF THE ELECTION YEAR AND ENDS AT 5 11 P.M. ON JUNE 16 OF THE ELECTION YEAR UNLESS THE CANDIDATE IS 12 WITHOUT MAJOR POLITICAL PARTY AFFILIATION, IN WHICH CASE THE 13 PERIOD ENDS AT 5 P.M. ON JULY 31 OF THE ELECTION YEAR. 14 (B) FOR A CANDIDATE FOR THE OFFICE OF STATE SENATOR OR STATE 15 REPRESENTATIVE, THE QUALIFYING PERIOD BEGINS MARCH 1 OF THE ELEC- 16 TION YEAR AND ENDS AT 5 P.M. ON JUNE 16 OF THE ELECTION YEAR 17 UNLESS THE CANDIDATE IS WITHOUT MAJOR POLITICAL PARTY AFFILIA- 18 TION, IN WHICH CASE THE PERIOD ENDS AT 5 P.M. ON JULY 31 OF THE 19 ELECTION YEAR. 20 (3) "SEED MONEY CONTRIBUTION" MEANS A CONTRIBUTION MADE TO A 21 CANDIDATE, INCLUDING A CONTRIBUTION FROM THE CANDIDATE OR A 22 MEMBER OF THE CANDIDATE'S IMMEDIATE FAMILY, THAT MEETS 1 OF THE 23 FOLLOWING REQUIREMENTS, AS APPLICABLE: 24 (A) FOR A CANDIDATE FOR THE OFFICE OF GOVERNOR, IS A CONTRI- 25 BUTION OF NO MORE THAN $500.00 PER INDIVIDUAL. 01102'01 14 1 (B) FOR A CANDIDATE FOR THE OFFICE OF STATE SENATOR OR STATE 2 REPRESENTATIVE, IS A CONTRIBUTION OF NO MORE THAN $100.00 PER 3 INDIVIDUAL. 4 (4) (2) "Senate political party caucus committee" means an 5 independent committee established by a political party caucus of 6 the state senate under section 24a. 7 (5) (3) "State elective office" means the office of gover- 8 nor, lieutenant governor, secretary of state, attorney general, 9 justice of the supreme court, member of the state board of educa- 10 tion, regent of the university of Michigan, member of the board 11 of trustees of Michigan state university, member of the board of 12 governors of Wayne state university, and member of the state 13 legislature. 14 SEC. 33B. A PERSON WHO MAKES OR OBLIGATES TO MAKE A DIS- 15 BURSEMENT TO PURCHASE AN ISSUE ADVERTISEMENT SHALL FILE WITH THE 16 SECRETARY OF STATE NOT LATER THAN 48 HOURS AFTER MAKING OR OBLI- 17 GATING TO MAKE THE DISBURSEMENT A REPORT CONTAINING ALL OF THE 18 FOLLOWING INFORMATION: 19 (A) THE AMOUNT OF THE DISBURSEMENT. 20 (B) THE NAME AND ADDRESS OF THE PERSON MAKING THE 21 DISBURSEMENT. 22 (C) THE PURPOSE OF THE ISSUE ADVERTISEMENT. 23 Sec. 51. A person, other than a committee, who makes an 24 independent expenditure, advocating the election of a candidate 25 or the defeat of a candidate's opponents or the qualification, 26 passage, or defeat of a ballot question, in an amount of $100.01 27 or more THAN $100.00 in a calendar year shall file a report of 01102'01 15 1 the independent expenditure, within 10 days 48 HOURS, with the 2 clerk of the county of residence of that person AND WITH THE SEC- 3 RETARY OF STATE. The report shall be made on an independent 4 expenditure report form provided by the secretary of state and 5 shall include the date of the expenditure, a brief description of 6 the nature of the expenditure, the amount, the name and address 7 of the person to whom it was paid, the name and address of the 8 person filing the report, together with the name, address, occu- 9 pation, employer, and principal place of business of each person 10 who contributed $100.01 or more THAN $100.00 to the 11 expenditure. The filing official receiving the report shall for- 12 ward copies, as required, to the appropriate filing officers as 13 described in section 36, UNLESS THE APPROPRIATE FILING OFFICER IS 14 THE SECRETARY OF STATE. 15 Sec. 52. (1) Except as provided in subsection (5) and 16 subject to subsection SUBSECTIONS (8) AND (9), a person other 17 than an independent committee or a political party committee 18 shall not make contributions to a candidate committee of a candi- 19 date for elective office that, with respect to an election cycle, 20 are more than the following: 21 (a) $3,400.00 $1,700.00 for a candidate for state elective 22 office other than the office of state legislator, or for a candi- 23 date for local elective office if the district from which he or 24 she is seeking office has a population of more than 250,000. 25 (b) $1,000.00 $500.00 for a candidate for state senator, 26 or for a candidate for local elective office if the district from 01102'01 16 1 which he or she is seeking office has a population of more than 2 85,000 but 250,000 or less. 3 (c) $500.00 $250.00 for a candidate for state representa- 4 tive, or for a candidate for local elective office if the dis- 5 trict from which he or she is seeking office has a population of 6 85,000 or less. 7 (2) Except as otherwise provided in this subsection, an 8 independent committee shall not make contributions to a candidate 9 committee of a candidate for elective office that, in the aggre- 10 gate for that election cycle, are more than 10 times the amount 11 permitted a person other than an independent committee or politi- 12 cal party committee in subsection (1). A house political party 13 caucus committee or a senate political party caucus committee is 14 not limited under this subsection in the amount of contributions 15 made to the candidate committee of a candidate for the office of 16 state legislator, except as follows: 17 (a) A house political party caucus committee or a senate 18 political party caucus committee shall not pay a debt incurred by 19 a candidate if that debt was incurred while the candidate was 20 seeking nomination at a primary election and the candidate was 21 opposed at that primary. 22 (b) A house political party caucus committee or a senate 23 political party caucus committee shall not make a contribution to 24 or make an expenditure on behalf of a candidate if that candidate 25 is seeking nomination at a primary election and the candidate is 26 opposed at that primary. 01102'01 17 1 (3) A political party committee other than a state central 2 committee shall not make contributions to the candidate committee 3 of a candidate for elective office that are more than 10 times 4 the amount permitted a person other than an independent committee 5 or political party committee in subsection (1). 6 (4) A state central committee of a political party shall not 7 make contributions to the candidate committee of a candidate for 8 state elective office other than a candidate for the legislature 9 that are more than 20 times the amount permitted a person other 10 than an independent committee or political party committee in 11 subsection (1). A state central committee of a political party 12 shall not make contributions to the candidate committee of a can- 13 didate for state senator, state representative, or local elective 14 office that are more than 10 times the amount permitted a person 15 other than an independent committee or political party committee 16 in subsection (1). 17 (5) A contribution from a member of a candidate's immediate 18 family to the candidate committee of that candidate is exempt 19 from the limitations of subsection (1). 20 (6) Consistent with the provisions of this section, a con- 21 tribution designated in writing for a particular election cycle 22 is considered made for that election cycle. A contribution made 23 after the close of a particular election cycle and designated in 24 writing for that election cycle shall be made only to the extent 25 that the contribution does not exceed the candidate committee's 26 net outstanding debts and obligations from the election cycle so 27 designated. If a contribution is not designated in writing for a 01102'01 18 1 particular election cycle, the contribution is considered made 2 for the election cycle that corresponds to the date of the writ- 3 ten instrument. 4 (7) A candidate committee, a candidate, or a treasurer or 5 agent of a candidate committee shall not accept a contribution 6 with respect to an election cycle that exceeds the limitations in 7 subsection (1), (2), (3), or (4). 8 (8) The contribution limits in subsection (1) for a candi- 9 date for local elective office are effective on the effective 10 date of the amendatory act that provides for those contribution 11 limits MARCH 31, 1997, however, only contributions received by 12 that candidate on and after that date MARCH 31, 1997 shall be 13 used to determine if the contribution limit has been reached. 14 (9) AN INDIVIDUAL SHALL NOT MAKE CONTRIBUTIONS TO COMMITTEES 15 ORGANIZED UNDER THIS ACT THAT, IN THE AGGREGATE, EXCEED 16 $50,000.00 IN A CALENDAR YEAR. 17 (10) SUBJECT TO SUBSECTION (9), AN INDIVIDUAL SHALL NOT MAKE 18 CONTRIBUTIONS TO A POLITICAL PARTY COMMITTEE, A POLITICAL COMMIT- 19 TEE, OR AN INDEPENDENT COMMITTEE THAT EXCEED $20,000.00 IN A CAL- 20 ENDAR YEAR. A POLITICAL PARTY COMMITTEE, POLITICAL COMMITTEE, OR 21 INDEPENDENT COMMITTEE SHALL NOT ACCEPT A CONTRIBUTION WITH 22 RESPECT TO A CALENDAR YEAR THAT EXCEEDS THE LIMITATION IN THIS 23 SUBSECTION. 24 (11) (9) A person who knowingly violates this section is 25 guilty of a misdemeanor punishable, if the person is an individu- 26 al, by a fine of not more than $1,000.00 or imprisonment for not 01102'01 19 1 more than 90 days, or both, or, if the person is not an 2 individual, by a fine of not more than $10,000.00. 3 (12) (10) For purposes of the limitations provided in 4 subsections (1) and (2), all contributions made by political com- 5 mittees or independent committees established by any corporation, 6 joint stock company, domestic dependent sovereign, or labor 7 organization, including any parent, subsidiary, branch, division, 8 department, or local unit thereof, shall be considered to have 9 been made by a single independent committee. By way of illus- 10 tration and not limitation, all of the following apply as a 11 result of the application of this requirement EXAMPLES OF A 12 SINGLE INDEPENDENT COMMITTEE FOR PURPOSES OF REPORTING A CONTRI- 13 BUTION IN A CAMPAIGN STATEMENT INCLUDE, BUT ARE NOT LIMITED TO, 14 THE FOLLOWING: 15 (a) All of the political committees and independent commit- 16 tees established by a for profit corporation or joint stock com- 17 pany, by a subsidiary of the for profit corporation or joint 18 stock company, or by any combination thereof, are treated as a 19 single independent committee OF THESE. 20 (b) All of the political committees and independent commit- 21 tees established by a single national or international labor 22 organization, by a labor organization of that national or inter- 23 national labor organization, by a local labor organization of 24 that national or international labor organization, or by any 25 other subordinate organization of that national or international 26 labor organization, or by any combination thereof, are treated 27 as a single independent committee OF THESE. 01102'01 20 1 (c) All of the political committees and independent 2 committees established by an organization of national or interna- 3 tional unions, by a state central body of that organization, by a 4 local central body of that organization, or by any combination 5 thereof, are treated as a single independent committee OF 6 THESE. 7 (d) All of the political committees and independent commit- 8 tees established by a nonprofit corporation, by a related state 9 entity of that nonprofit corporation, by a related local entity 10 of that nonprofit corporation, or by any combination thereof, 11 are treated as a single independent committee OF THESE. 12 SEC. 91. (1) THIS SECTION AND SECTIONS 92 TO 109 SHALL BE 13 KNOWN AND MAY BE CITED AS THE "PUBLIC CAMPAIGN LAW". 14 (2) THE PUBLIC CAMPAIGN LAW ESTABLISHES AN ALTERNATIVE CAM- 15 PAIGN FINANCING OPTION AVAILABLE TO CANDIDATES RUNNING FOR THE 16 OFFICES OF GOVERNOR, STATE SENATOR, AND STATE REPRESENTATIVE. 17 THIS ALTERNATIVE CAMPAIGN FINANCING OPTION IS AVAILABLE TO CANDI- 18 DATES FOR EACH ELECTION HELD IN THIS STATE AFTER JANUARY 1, 19 2002. 20 (3) THE SECRETARY OF STATE SHALL ADMINISTER THE PUBLIC CAM- 21 PAIGN LAW. 22 SEC. 92. (1) THE PUBLIC CAMPAIGN FUND IS ESTABLISHED TO 23 FINANCE THE ELECTION CAMPAIGNS OF CERTIFIED PUBLIC CAMPAIGN LAW 24 CANDIDATES RUNNING FOR THE OFFICE OF GOVERNOR, STATE SENATOR, AND 25 STATE REPRESENTATIVE. THE PUBLIC CAMPAIGN FUND IS THE FUND FROM 26 WHICH ADMINISTRATIVE COSTS OF THE DEPARTMENTS OF TREASURY AND 01102'01 21 1 STATE AND ENFORCEMENT COSTS OF THE DEPARTMENT OF STATE RELATED TO 2 THE PUBLIC CAMPAIGN LAW WILL BE PAID. 3 (2) THE STATE TREASURER SHALL ADMINISTER THE PUBLIC CAMPAIGN 4 FUND IN ACCORDANCE WITH THIS ACT. THE PUBLIC CAMPAIGN FUND IS A 5 SPECIAL, DEDICATED, NONLAPSING FUND AND INTEREST GENERATED BY THE 6 FUND IS CREDITED TO THE FUND. 7 (3) THE STATE TREASURER SHALL DEPOSIT ALL OF THE FOLLOWING 8 INTO THE PUBLIC CAMPAIGN FUND: 9 (A) THE QUALIFYING CONTRIBUTIONS REQUIRED UNDER SECTION 96, 10 WHEN THOSE CONTRIBUTIONS ARE SUBMITTED TO THE STATE TREASURER. 11 (B) REVENUE UNDER SECTION 93. 12 (C) SEED MONEY CONTRIBUTIONS REMAINING UNSPENT AFTER A CAN- 13 DIDATE HAS BEEN CERTIFIED AS A PUBLIC CAMPAIGN LAW CANDIDATE, 14 WHEN THAT MONEY IS SUBMITTED TO THE STATE TREASURER. 15 (D) FUND MONEY THAT IS DISTRIBUTED TO A PUBLIC CAMPAIGN LAW 16 CANDIDATE AND THAT REMAINS UNSPENT AFTER THE CANDIDATE HAS LOST A 17 PRIMARY ELECTION OR AFTER EACH GENERAL ELECTION. 18 (E) OTHER UNSPENT FUND MONEY DISTRIBUTED TO A PUBLIC CAM- 19 PAIGN LAW CANDIDATE WHO DOES NOT REMAIN A CANDIDATE THROUGHOUT A 20 PRIMARY OR GENERAL ELECTION CYCLE. 21 (F) VOLUNTARY DONATIONS MADE DIRECTLY TO THE FUND. 22 (G) FINES COLLECTED UNDER SECTION 108. 23 (4) ON OR BEFORE THE SEPTEMBER 1 IMMEDIATELY BEFORE AN ELEC- 24 TION YEAR, THE SECRETARY OF STATE SHALL PUBLISH AN ESTIMATE OF 25 MONEY IN THE FUND AVAILABLE FOR DISTRIBUTION TO CERTIFIED CANDI- 26 DATES DURING THE UPCOMING YEAR'S ELECTIONS. 01102'01 22 1 SEC. 93. (1) AN INDIVIDUAL WHOSE TAX LIABILITY UNDER THE 2 INCOME TAX ACT OF 1967, 1967 PA 281, MCL 206.1 TO 206.532, FOR A 3 TAXABLE YEAR IS $3.00 OR MORE MAY DESIGNATE THAT $3.00 NOT BE 4 CREDITED TO THE PUBLIC CAMPAIGN FUND. IN THE CASE OF A JOINT 5 RETURN OF HUSBAND AND WIFE HAVING AN INCOME TAX LIABILITY OF 6 $6.00 OR MORE, EACH SPOUSE MAY DESIGNATE THAT $3.00 NOT BE CRED- 7 ITED TO THE FUND. 8 (2) THE TAX DESIGNATION AUTHORIZED IN THIS SECTION SHALL BE 9 CLEARLY AND UNAMBIGUOUSLY PRINTED ON THE FIRST PAGE OF THE STATE 10 INDIVIDUAL INCOME TAX RETURN. 11 (3) AN AMOUNT EQUAL TO THE CUMULATIVE AMOUNTS DESIGNATED 12 UNDER SUBSECTION (1) EACH YEAR SHALL BE APPROPRIATED ANNUALLY 13 FROM THE GENERAL FUND OF THIS STATE TO THE FUND TO BE AVAILABLE 14 BEGINNING JANUARY 1 AND CONTINUING THROUGH DECEMBER 31 OF EACH 15 ELECTION YEAR. 16 SEC. 94. (1) TO BE ELIGIBLE FOR CERTIFICATION, A PARTICI- 17 PATING CANDIDATE SHALL MEET BOTH OF THE FOLLOWING REQUIREMENTS: 18 (A) HE OR SHE SHALL ONLY COLLECT AND SPEND SEED MONEY CON- 19 TRIBUTIONS DURING THE QUALIFYING PERIOD. 20 (B) HE OR SHE SHALL NOT MAKE OR CAUSE AN EXPENDITURE TO BE 21 MADE FROM PRIVATE MONEY DEPOSITED TO HIS OR HER CANDIDATE COMMIT- 22 TEE DURING THE CURRENT ELECTION CYCLE AND BEFORE FILING A DECLA- 23 RATION OF INTENT UNDER SUBSECTION (3). 24 (2) A CANDIDATE SHALL NOT COLLECT OR SPEND SEED MONEY CON- 25 TRIBUTIONS AFTER CERTIFICATION AS A PUBLIC CAMPAIGN LAW 26 CANDIDATE. THE PRIMARY PURPOSE OF A SEED MONEY CONTRIBUTION IS 27 TO ENABLE A PARTICIPATING CANDIDATE TO COLLECT QUALIFYING 01102'01 23 1 CONTRIBUTIONS. A PARTICIPATING CANDIDATE SHALL REPORT SEED MONEY 2 CONTRIBUTIONS AND EXPENDITURES ACCORDING TO PROCEDURES DEVELOPED 3 BY THE SECRETARY OF STATE. 4 (3) A PARTICIPATING CANDIDATE SHALL FILE A DECLARATION OF 5 INTENT TO SEEK CERTIFICATION AS A PUBLIC CAMPAIGN LAW CANDIDATE 6 AND TO COMPLY WITH THE REQUIREMENTS OF THE PUBLIC CAMPAIGN LAW. 7 THE CANDIDATE SHALL FILE THE DECLARATION OF INTENT WITH THE SEC- 8 RETARY OF STATE BEFORE OR DURING THE QUALIFYING PERIOD, EXCEPT AS 9 OTHERWISE PROVIDED IN SECTION 103, ACCORDING TO FORMS AND PROCE- 10 DURES DEVELOPED BY THE SECRETARY OF STATE. A PARTICIPATING CAN- 11 DIDATE SHALL FILE A DECLARATION OF INTENT BEFORE HE OR SHE COL- 12 LECTS SEED MONEY OR QUALIFYING CONTRIBUTIONS UNDER THE PUBLIC 13 CAMPAIGN LAW. 14 SEC. 95. (1) AFTER BECOMING A CANDIDATE AND BEFORE BECOMING 15 A CERTIFIED CANDIDATE, A PARTICIPATING CANDIDATE SHALL NOT ACCEPT 16 CONTRIBUTIONS EXCEPT FOR SEED MONEY CONTRIBUTIONS. A PARTICIPAT- 17 ING CANDIDATE SHALL LIMIT THE CANDIDATE'S SEED MONEY CONTRIBU- 18 TIONS TO THE FOLLOWING AMOUNTS, AS APPLICABLE: 19 (A) FOR A CANDIDATE FOR THE OFFICE OF GOVERNOR, 20 $100,000.00. 21 (B) FOR A CANDIDATE FOR THE OFFICE OF STATE SENATOR, 22 $10,000.00. 23 (C) FOR A CANDIDATE FOR THE OFFICE OF STATE REPRESENTATIVE, 24 $5,000.00. 25 (2) A PARTICIPATING CANDIDATE SHALL OBTAIN QUALIFYING CON- 26 TRIBUTIONS DURING THE QUALIFYING PERIOD THAT MEET THE FOLLOWING 27 CRITERIA, AS APPROPRIATE: 01102'01 24 1 (A) FOR A CANDIDATE FOR THE OFFICE OF GOVERNOR, AT LEAST 2 5,000 VERIFIED REGISTERED VOTERS OF THIS STATE MUST SUPPORT THE 3 CANDIDACY BY PROVIDING A QUALIFYING CONTRIBUTION TO THAT 4 CANDIDATE. 5 (B) FOR A CANDIDATE FOR THE OFFICE OF STATE SENATOR, AT 6 LEAST 500 VERIFIED REGISTERED VOTERS FROM THAT SENATORIAL DIS- 7 TRICT MUST SUPPORT THE CANDIDATE BY PROVIDING A QUALIFYING CON- 8 TRIBUTION TO THAT CANDIDATE. 9 (C) FOR A CANDIDATE FOR THE OFFICE OF STATE REPRESENTATIVE, 10 AT LEAST 250 VERIFIED REGISTERED VOTERS FROM THAT REPRESENTATIVE 11 DISTRICT MUST SUPPORT THE CANDIDATE BY PROVIDING A QUALIFYING 12 CONTRIBUTION TO THAT CANDIDATE. 13 (4) A PAYMENT, GIFT, OR ANYTHING OF VALUE SHALL NOT BE GIVEN 14 IN EXCHANGE FOR A QUALIFYING CONTRIBUTION. 15 SEC. 96. A PARTICIPATING CANDIDATE SHALL SUBMIT QUALIFYING 16 CONTRIBUTIONS TO THE SECRETARY OF STATE DURING THE QUALIFYING 17 PERIOD ACCORDING TO PROCEDURES DEVELOPED BY THE SECRETARY OF 18 STATE. 19 SEC. 97. (1) UPON RECEIPT OF A FINAL SUBMITTAL OF QUALIFY- 20 ING CONTRIBUTIONS BY A PARTICIPATING CANDIDATE, THE SECRETARY OF 21 STATE SHALL DETERMINE IF THE CANDIDATE HAS MET ALL OF THE FOLLOW- 22 ING REQUIREMENTS FOR CERTIFICATION: 23 (A) SIGNED AND FILED A DECLARATION OF INTENT TO PARTICIPATE 24 UNDER THE PUBLIC CAMPAIGN LAW. 25 (B) SUBMITTED THE APPROPRIATE NUMBER OF VALID QUALIFYING 26 CONTRIBUTIONS. 01102'01 25 1 (C) SUBMITTED THE APPROPRIATE SEED MONEY CONTRIBUTION AND 2 EXPENDITURE REPORT REQUIRED UNDER SECTION 94. 3 (D) DID NOT ACCEPT CONTRIBUTIONS, EXCEPT FOR SEED MONEY CON- 4 TRIBUTIONS, AND OTHERWISE COMPLIED WITH SEED MONEY CONTRIBUTION 5 RESTRICTIONS. 6 (E) OTHERWISE MET THE REQUIREMENTS FOR PARTICIPATION UNDER 7 THE PUBLIC CAMPAIGN LAW. 8 (F) DID NOT MAKE OR CAUSE AN EXPENDITURE TO BE MADE FROM 9 PRIVATE MONEY DEPOSITED IN HIS OR HER CANDIDATE COMMITTEE DURING 10 THE CURRENT ELECTION CYCLE AND BEFORE FILING A DECLARATION OF 11 INTENT TO PARTICIPATE UNDER THE PUBLIC CAMPAIGN LAW. 12 (2) THE SECRETARY OF STATE SHALL CERTIFY A CANDIDATE WHO 13 COMPLIES WITH THE REQUIREMENTS OF THIS SECTION AS A CERTIFIED 14 CANDIDATE AS SOON AS POSSIBLE AND NO LATER THAN 3 DAYS AFTER 15 FINAL SUBMISSION OF QUALIFYING CONTRIBUTIONS. THE SECRETARY OF 16 STATE SHALL NOTIFY A CANDIDATE WHO HAS NOT COMPLIED WITH THE 17 REQUIREMENTS OF THIS SECTION THAT HE OR SHE IS BEING DENIED CER- 18 TIFICATION AS A PUBLIC CAMPAIGN LAW CANDIDATE AND THE REASONS FOR 19 THAT DENIAL AS SOON AS POSSIBLE AND NO LATER THAN 3 DAYS AFTER 20 FINAL SUBMISSION OF QUALIFYING CONTRIBUTIONS. 21 (3) UPON CERTIFICATION OR DENIAL OF CERTIFICATION, A CANDI- 22 DATE SHALL PROMPTLY GIVE TO THE SECRETARY OF STATE ANY UNSPENT 23 SEED MONEY CONTRIBUTIONS. AS SOON AS PRACTICAL AFTER RECEIPT, 24 THE SECRETARY OF STATE SHALL TRANSMIT ALL UNSPENT SEED MONEY CON- 25 TRIBUTIONS TO THE STATE TREASURER FOR DEPOSIT INTO THE FUND. 01102'01 26 1 (4) A CERTIFIED CANDIDATE SHALL COMPLY WITH ALL REQUIREMENTS 2 OF THE PUBLIC CAMPAIGN LAW AFTER CERTIFICATION AND THROUGHOUT THE 3 PRIMARY AND GENERAL ELECTION PERIODS. 4 SEC. 98. (1) A CERTIFIED CANDIDATE SHALL LIMIT THE 5 CANDIDATE'S CAMPAIGN EXPENDITURES AND OBLIGATIONS, INCLUDING OUT- 6 STANDING OBLIGATIONS, TO THE MONEY DISTRIBUTED TO THE CANDIDATE 7 FROM THE FUND. A CERTIFIED CANDIDATE SHALL NOT ACCEPT ANY CON- 8 TRIBUTIONS UNLESS SPECIFICALLY AUTHORIZED BY THE SECRETARY OF 9 STATE. 10 (2) A CERTIFIED CANDIDATE SHALL ONLY USE MONEY DISTRIBUTED 11 FROM THE FUND FOR CAMPAIGN-RELATED PURPOSES. THE SECRETARY OF 12 STATE SHALL PUBLISH GUIDELINES OUTLINING PERMISSIBLE 13 CAMPAIGN-RELATED EXPENDITURES. 14 SEC. 99. (1) THE SECRETARY OF STATE SHALL DIRECT THE STATE 15 TREASURER TO DISTRIBUTE TO CERTIFIED CANDIDATES MONEY FROM THE 16 FUND IN AMOUNTS DETERMINED UNDER SECTION 100 IN THE FOLLOWING 17 MANNER: 18 (A) WITHIN 3 DAYS AFTER CERTIFICATION, FOR CANDIDATES CERTI- 19 FIED BEFORE JUNE 16 OF THE ELECTION YEAR, MONEY FROM THE FUND 20 SHALL BE DISTRIBUTED AS IF THE CANDIDATES ARE IN AN UNCONTESTED 21 PRIMARY ELECTION. 22 (B) WITHIN 3 DAYS AFTER JUNE 16 OF THE ELECTION YEAR, FOR 23 PRIMARY ELECTION CERTIFIED CANDIDATES, MONEY FROM THE FUND SHALL 24 BE DISTRIBUTED ACCORDING TO WHETHER THE CANDIDATE IS IN A CON- 25 TESTED OR UNCONTESTED PRIMARY ELECTION, REDUCED BY ANY AMOUNTS 26 PREVIOUSLY DISTRIBUTED UNDER SUBDIVISION (A). 01102'01 27 1 (C) WITHIN 3 DAYS AFTER THE PRIMARY ELECTION, FOR GENERAL 2 ELECTION CERTIFIED CANDIDATES, MONEY FROM THE FUND SHALL BE 3 DISTRIBUTED ACCORDING TO WHETHER THE CANDIDATE IS IN A CONTESTED 4 GENERAL ELECTION. MONEY SHALL NOT BE DISTRIBUTED TO A CANDIDATE 5 IN AN UNCONTESTED GENERAL ELECTION. 6 (2) THE STATE TREASURER MAY DISTRIBUTE MONEY FROM THE FUND 7 TO CERTIFIED CANDIDATES UNDER THIS SECTION BY ANY MECHANISM THAT 8 IS EXPEDITIOUS, ENSURES ACCOUNTABILITY, AND SAFEGUARDS THE INTEG- 9 RITY OF THE FUND. 10 SEC. 100. (1) ON OR BEFORE JULY 1, 2002, AND ON OR BEFORE 11 JULY 1 OF EACH SECOND YEAR AFTER 2002, THE SECRETARY OF STATE 12 SHALL DETERMINE THE AMOUNT OF MONEY TO BE DISTRIBUTED TO CERTI- 13 FIED CANDIDATES BASED UPON THE TYPE OF ELECTION AND OFFICE AS 14 FOLLOWS: 15 (A) FOR CONTESTED PRIMARY ELECTIONS, THE AMOUNT OF MONEY TO 16 BE DISTRIBUTED IS THE AVERAGE AMOUNT OF CAMPAIGN EXPENDITURES 17 MADE BY EACH CANDIDATE DURING ALL CONTESTED PRIMARY ELECTION 18 RACES FOR THE 2 PRIMARY ELECTIONS IMMEDIATELY BEFORE THE CURRENT 19 PRIMARY ELECTION, AS REPORTED IN THE INITIAL FILING PERIOD AFTER 20 THE PRIMARY ELECTION FOR THE RESPECTIVE OFFICES OF GOVERNOR, 21 STATE SENATOR, AND STATE REPRESENTATIVE. 22 (B) FOR UNCONTESTED PRIMARY ELECTIONS, THE AMOUNT OF MONEY 23 DISTRIBUTED IS THE AVERAGE AMOUNT OF CAMPAIGN EXPENDITURES MADE 24 BY EACH CANDIDATE DURING ALL UNCONTESTED PRIMARY ELECTION RACES, 25 OR FOR CONTESTED RACES IF THAT AMOUNT IS LOWER, FOR THE 2 PRIMARY 26 ELECTIONS IMMEDIATELY BEFORE THE CURRENT PRIMARY ELECTION, AS 27 REPORTED IN THE INITIAL FILING PERIOD AFTER THE PRIMARY ELECTION 01102'01 28 1 FOR THE RESPECTIVE OFFICES OF GOVERNOR, STATE SENATOR, AND STATE 2 REPRESENTATIVE. 3 (C) FOR CONTESTED GENERAL ELECTIONS, THE AMOUNT OF MONEY 4 DISTRIBUTED IS THE AVERAGE AMOUNT OF CAMPAIGN EXPENDITURES MADE 5 BY EACH CANDIDATE DURING ALL CONTESTED GENERAL ELECTION RACES FOR 6 THE 2 GENERAL ELECTIONS IMMEDIATELY BEFORE THE CURRENT GENERAL 7 ELECTION AS REPORTED IN THE INITIAL FILING PERIOD AFTER THE GEN- 8 ERAL ELECTION FOR THE RESPECTIVE OFFICES OF GOVERNOR, STATE SENA- 9 TOR, AND STATE REPRESENTATIVE. 10 (2) IF THE 2 ELECTION CYCLES IMMEDIATELY BEFORE THE CURRENT 11 ELECTION CYCLE DO NOT CONTAIN SUFFICIENT ELECTORAL DATA, THE SEC- 12 RETARY OF STATE SHALL USE INFORMATION FROM THE MOST RECENT APPLI- 13 CABLE ELECTIONS. FOR ONLY THE INITIAL COMPUTATIONS UNDER SUBSEC- 14 TION (1) THAT ARE CONDUCTED BY JULY 1, 2002, THE SECRETARY OF 15 STATE SHALL REDUCE THE AMOUNT OF MONEY TO BE DISTRIBUTED BY 25%. 16 SEC. 101. (1) IF A CAMPAIGN STATEMENT OR REPORT FILED BY A 17 PARTICIPATING CANDIDATE'S COMMITTEE SHOWS AN AMOUNT EXCEEDING THE 18 DISTRIBUTION AMOUNT UNDER SECTION 100 COMBINED WITH PARTICIPATING 19 CONTRIBUTIONS COLLECTED DURING THE PARTICIPATING CONTRIBUTION 20 PERIOD, THE SECRETARY OF STATE SHALL IMMEDIATELY ISSUE TO EACH 21 OPPOSING CERTIFIED CANDIDATE AN ADDITIONAL AMOUNT OF MONEY EQUIV- 22 ALENT TO THE REPORTED EXCESS. TO DETERMINE THE EXCESS AMOUNT OF 23 MONEY, THE SECRETARY OF STATE SHALL ADD THE GREATER OF THE SUM OF 24 A CANDIDATE'S EXPENDITURES AND OBLIGATIONS OR MONEY RAISED AND 25 BORROWED TO INDEPENDENT EXPENDITURES REPORTED UNDER SECTION 51. 26 (2) AN ADDITIONAL AMOUNT OF MONEY PROVIDED TO AN OPPOSING 27 CERTIFIED CANDIDATE UNDER THIS SECTION IS LIMITED TO 3 TIMES THE 01102'01 29 1 AMOUNT ORIGINALLY DISTRIBUTED UNDER SECTION 100(1)(A) OR (C), AS 2 APPLICABLE. 3 SEC. 102. A CANDIDATE WITHOUT POLITICAL PARTY AFFILIATION 4 WHO IS CERTIFIED BY THE JUNE 16 IMMEDIATELY BEFORE THE PRIMARY 5 ELECTION IS ELIGIBLE FOR MONEY FROM THE FUND IN THE SAME AMOUNTS 6 AND AT THE SAME TIME AS AN UNCONTESTED PRIMARY ELECTION CANDIDATE 7 AND A GENERAL ELECTION CANDIDATE AS SPECIFIED IN SECTIONS 99 AND 8 100. FOR A CANDIDATE WITHOUT POLITICAL PARTY AFFILIATION WHO IS 9 NOT CERTIFIED BY JUNE 16 AT 5 P.M., THE DEADLINE FOR FILING QUAL- 10 IFYING CONTRIBUTIONS IS 5 P.M. ON THE JULY 16 IMMEDIATELY BEFORE 11 THE GENERAL ELECTION. A CANDIDATE WITHOUT POLITICAL PARTY AFFIL- 12 IATION CERTIFIED AFTER JUNE 16 AT 5 P.M. IS ELIGIBLE FOR MONEY 13 FROM THE FUND IN THE SAME AMOUNTS AS A GENERAL ELECTION CANDI- 14 DATE, AS SPECIFIED IN SECTIONS 99 AND 100. 15 SEC. 103. THE SECRETARY OF STATE SHALL ESTABLISH BY RULE 16 PROCEDURES FOR QUALIFICATION, REPORTING, CERTIFICATION, DISBURSE- 17 MENT OF FUND MONEY, AND RETURN OF UNSPENT MONEY FOR RACES INVOLV- 18 ING SPECIAL ELECTIONS, RECOUNTS, VACANCIES, WITHDRAWALS, OR 19 REPLACEMENT CANDIDATES. 20 SEC. 104. (1) PARTICIPATING AND CERTIFIED CANDIDATES SHALL 21 REPORT ANY MONEY COLLECTED, ALL CAMPAIGN EXPENDITURES, OBLIGA- 22 TIONS, AND RELATED ACTIVITIES TO THE SECRETARY OF STATE ACCORDING 23 TO PROCEDURES DEVELOPED BY THE SECRETARY OF STATE. UPON THE 24 FILING OF A FINAL REPORT FOR A PRIMARY ELECTION IN WHICH THE CAN- 25 DIDATE WAS DEFEATED AND FOR ALL GENERAL ELECTIONS, THAT CANDIDATE 26 SHALL RETURN ALL UNSPENT MONEY TO THE SECRETARY OF STATE, FOR 27 DEPOSIT IN THE FUND. 01102'01 30 1 (2) IN DEVELOPING THE PROCEDURES UNDER SUBSECTION (1), THE 2 SECRETARY OF STATE SHALL UTILIZE, WHENEVER PRACTICABLE, CAMPAIGN 3 REPORTING PROCEDURES EXISTING ON THE EFFECTIVE DATE OF THIS 4 SECTION. THE SECRETARY OF STATE SHALL ENSURE TIMELY PUBLIC 5 ACCESS TO CAMPAIGN FINANCE DATA AND MAY UTILIZE ELECTRONIC MEANS 6 OF REPORTING AND STORING INFORMATION. THE SECRETARY OF STATE 7 SHALL DEVELOP AND MAKE AVAILABLE TO PARTICIPATING AND CERTIFIED 8 CANDIDATES THE NECESSARY SOFTWARE FOR FILING THE REPORTS REQUIRED 9 UNDER THE PUBLIC CAMPAIGN LAW BY ELECTRONIC MEANS. 10 SEC. 106. (1) A CANDIDATE WHO IS DENIED CERTIFICATION AS A 11 CERTIFIED CANDIDATE OR THE OPPONENT OF A CANDIDATE WHO IS GRANTED 12 CERTIFICATION AS A CERTIFIED CANDIDATE MAY CHALLENGE A CERTIFICA- 13 TION DECISION BY THE SECRETARY OF STATE. A CHALLENGE SHALL BE 14 CONDUCTED UNDER THE FOLLOWING PROCEDURE: 15 (A) A CHALLENGER MAY APPEAL TO THE SECRETARY OF STATE WITHIN 16 3 DAYS OF THE CERTIFICATION DECISION. THE CHALLENGER SHALL 17 APPEAL IN WRITING AND SHALL SET FORTH THE REASONS FOR THE 18 APPEAL. 19 (B) WITHIN 5 DAYS AFTER AN APPEAL IS PROPERLY MADE AND AFTER 20 NOTICE IS GIVEN TO THE CHALLENGER AND EACH OPPONENT, THE SECRE- 21 TARY OF STATE SHALL HOLD A HEARING. THE CHALLENGER HAS THE 22 BURDEN OF PROVIDING EVIDENCE TO DEMONSTRATE THAT THE COMMISSION 23 DECISION WAS IMPROPER. THE SECRETARY OF STATE SHALL RULE ON THE 24 APPEAL WITHIN 3 DAYS AFTER THE COMPLETION OF THE HEARING. 25 (C) A CHALLENGER MAY APPEAL THE DECISION OF THE SECRETARY OF 26 STATE UNDER SUBDIVISION (B) BY COMMENCING AN ACTION IN THE COURT 27 OF CLAIMS. 01102'01 31 1 (D) A CANDIDATE WHOSE DETERMINATION BY THE SECRETARY OF 2 STATE AS A CERTIFIED CANDIDATE IS REVOKED ON APPEAL SHALL RETURN 3 TO THE SECRETARY OF STATE ALL UNSPENT MONEY DISTRIBUTED FROM THE 4 FUND. 5 (E) IF THE SECRETARY OF STATE OR COURT OF CLAIMS FINDS THAT 6 AN APPEAL WAS MADE FRIVOLOUSLY OR TO CAUSE DELAY OR HARDSHIP, THE 7 SECRETARY OF STATE OR COURT MAY REQUIRE THE MOVING PARTY TO PAY 8 COSTS OF THE SECRETARY OF STATE, COURT, AND EACH OPPOSING PARTY, 9 IF ANY. 10 (2) THE ADMINISTRATIVE PROCEDURES ACT OF 1969, 1969 PA 306, 11 MCL 24.201 TO 24.328, APPLIES TO THIS SECTION. 12 SEC. 107. THE SECRETARY OF STATE SHALL ADOPT RULES UNDER 13 THE ADMINISTRATIVE PROCEDURES ACT OF 1969, 1969 PA 306, MCL 14 24.201 TO 24.328, TO ENSURE EFFECTIVE ADMINISTRATION OF THE 15 PUBLIC CAMPAIGN LAW. THE SECRETARY OF STATE SHALL ADOPT RULES 16 INCLUDING, BUT NOT LIMITED TO, PROCEDURES FOR ALL OF THE 17 FOLLOWING: 18 (A) OBTAINING QUALIFYING CONTRIBUTIONS. 19 (B) CERTIFICATION AS A PUBLIC CAMPAIGN LAW CANDIDATE. 20 (C) CIRCUMSTANCES INVOLVING SPECIAL ELECTIONS, VACANCIES, 21 RECOUNTS, WITHDRAWALS, OR REPLACEMENTS. 22 (D) COLLECTION OF REVENUES FOR THE FUND. 23 (E) DISTRIBUTIONS OF MONEY TO CERTIFIED CANDIDATES. 24 (F) RETURN OF UNSPENT MONEY DISTRIBUTIONS. 25 (G) COMPLIANCE WITH THE MICHIGAN PUBLIC CAMPAIGN ACT. 26 SEC. 108. (1) A PERSON WHO VIOLATES A PROVISION OF THE 27 PUBLIC CAMPAIGN LAW IS SUBJECT TO A CIVIL FINE NOT TO EXCEED 01102'01 32 1 $10,000.00 PER VIOLATION. THIS SANCTION IS RECOVERABLE IN A 2 CIVIL ACTION. A FINE PAID UNDER THIS SECTION SHALL BE DEPOSITED 3 IN THE FUND. 4 (2) IN ADDITION TO A FINE, FOR GOOD CAUSE SHOWN, A CANDIDATE 5 FOUND IN VIOLATION OF THE PUBLIC CAMPAIGN LAW MAY BE REQUIRED TO 6 REIMBURSE THE FUND FOR ALL MONEY DISTRIBUTED TO THE CANDIDATE 7 FROM THE FUND. 8 (3) IF THE SECRETARY OF STATE MAKES A DETERMINATION THAT A 9 VIOLATION OF THE PUBLIC CAMPAIGN LAW HAS OCCURRED, THE SECRETARY 10 OF STATE SHALL ASSESS A FINE OR TRANSMIT THE FINDING TO THE 11 ATTORNEY GENERAL FOR PROSECUTION. 12 (4) A PERSON WHO KNOWINGLY VIOLATES THE PUBLIC CAMPAIGN LAW 13 OR RULES PROMULGATED BY THE SECRETARY OF STATE OR WHO KNOWINGLY 14 MAKES A FALSE STATEMENT IN A REPORT REQUIRED BY THE PUBLIC CAM- 15 PAIGN LAW IS GUILTY OF A MISDEMEANOR PUNISHABLE, IF THE PERSON IS 16 AN INDIVIDUAL, BY A FINE OF NOT MORE THAN $1,000.00 OR IMPRISON- 17 MENT FOR NOT MORE THAN 90 DAYS, OR BOTH, OR, IF THE PERSON IS NOT 18 AN INDIVIDUAL, BY A FINE OF NOT MORE THAN $10,000.00. IF THE 19 PERSON DESCRIBED IN THIS SUBSECTION IS A CERTIFIED CANDIDATE, 20 THAT PERSON SHALL REIMBURSE THE FUND FOR ALL MONEY DISTRIBUTED TO 21 THE CANDIDATE. 22 (5) THE PENALTIES AND REMEDIES UNDER THE PUBLIC CAMPAIGN LAW 23 ARE CUMULATIVE AND INDEPENDENT AND THE USE OF PENALTIES OR REME- 24 DIES, OR BOTH, UNDER THE PUBLIC CAMPAIGN LAW DOES NOT PROHIBIT 25 THE PROSECUTION OR AN ACTION TO RECOVER DAMAGES FOR CONDUCT OTH- 26 ERWISE PROSCRIBED UNDER THIS ACT OR ANOTHER APPLICABLE LAW. 01102'01 33 1 SEC. 109. ON OR BEFORE JANUARY 30, 2004, AND ON OR BEFORE 2 JANUARY 30 IN EVERY SECOND YEAR AFTER 2004, THE SECRETARY OF 3 STATE SHALL PREPARE FOR THE HOUSE OVERSIGHT COMMITTEE AND THE 4 SENATE GOVERNMENT OPERATIONS COMMITTEE A REPORT DOCUMENTING, 5 EVALUATING, AND MAKING RECOMMENDATIONS RELATING TO THE ADMINIS- 6 TRATION, IMPLEMENTATION, AND ENFORCEMENT OF THE PUBLIC CAMPAIGN 7 LAW AND THE FUND. 8 Enacting section 1. Sections 61 to 69 of the Michigan cam- 9 paign finance act, 1976 PA 388, MCL 169.261 to 169.269, are 10 repealed. 01102'01 Final page. CAS