House Introduced Bill 5538

HOUSE BILL No. 5538

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, 8, 45, and 61 (MCL 169.203, 169.208,

169.245, and 169.261), section 3 as amended by 1989 PA 95, sec-

tions 8 and 45 as amended by 1996 PA 590, and section 61 as

amended by 1993 PA 262; 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 HE OR SHE files a fee, affidavit of incumbency, or

4
nominating petition for an elective office. ;

5
(b) whose nomination HE OR SHE IS NOMINATED as a candidate

6
for elective office by a political party caucus or convention AND

01078'01 CAS 2

1
THE NOMINATION is certified to the appropriate filing official.

2
;

3
(c) who HE OR SHE receives a contribution, makes an expen-

4
diture, or gives consent for another person to receive a contri-

5
bution or make an expenditure with a view to bringing about the

6
individual's nomination or election to an elective office,

7
whether or not the specific elective office for which the indi-

8
vidual will seek nomination or election is known at the time the

9
contribution is received or the expenditure is made. ; or

10
(d) who HE OR SHE is an officeholder who is the subject of

11
a recall vote. Unless

12
(E) HE OR SHE HOLDS AN ELECTIVE OFFICE, UNLESS the office-

13
holder is constitutionally or legally barred from seeking reelec-

14
tion or fails to file for reelection to that office by the appli-

15
cable filing deadline. , an elected officeholder shall be AN

16
INDIVIDUAL DESCRIBED IN THIS SUBDIVISION IS considered to be a

17
candidate for reelection to that same office for the purposes of

18
this act only.

19
For purposes of sections 61 to 71, "candidate" only means,

20
in a primary election, a candidate for the office of governor

21
and, in a general election, a candidate for the office of gover-

22
nor or lieutenant governor. However, the candidates for the

23
office of governor and lieutenant governor of the same political

24
party in a general election shall be considered as 1 candidate.

25
(2) "Candidate committee" means the committee designated in

26
a candidate's filed statement of organization as that

27
individual's candidate committee. A candidate committee shall be

01078'01 3

1
under the control and direction of the candidate named in the

2
same statement of organization. Notwithstanding subsection (4),

3
an individual shall form a candidate committee pursuant to sec-

4
tion 21 when the individual becomes a candidate under subsection

5
(1).

6
(3) "Closing date" means the date through which a campaign

7
statement is required to be complete.

8
(4) "Committee" means a person who receives contributions or

9
makes expenditures for the purpose of influencing or attempting

10
to influence the action of the voters for or against the nomina-

11
tion or election of a candidate, or the qualification, passage,

12
or defeat of a ballot question, if contributions received total

13
$500.00 or more in a calendar year or expenditures made total

14
$500.00 or more in a calendar year. An individual, other than a

15
candidate, does not constitute a committee. A person, other than

16
a committee registered under this act, making WHO MAKES an

17
expenditure to a ballot question committee, shall for that

18
reason, IS not be considered a committee for the purposes of

19
this act unless the person solicits or receives contributions for

20
the purpose of making an expenditure to that ballot question

21
committee.

22
Sec. 8. (1) "House political party caucus committee" means

23
an independent committee established by a political party caucus

24
of the state house of representatives under section 24a.

25
(2) "Immediate family" means any child residing in a

26
candidate's household, the candidate's spouse, or any individual

01078'01 4

1
claimed by that candidate or that candidate's spouse as a

2
dependent for federal income tax purposes.

3
(3) "Independent committee" means a committee, other than a

4
political party committee, that before contributing to a candi-

5
date committee of a candidate for elective office under section

6
52(2) or 69(2) files a statement of organization as an indepen-

7
dent committee at least 6 months before an election for which it

8
expects to accept contributions or make expenditures in support

9
of or in opposition to a candidate for nomination to or election

10
to an elective office; and receives contributions from at least

11
25 persons and makes expenditures not to exceed the limitations

12
of section 52(1) in support of or in opposition to 3 or more can-

13
didates for nomination to or election to an elective office in

14
the same calendar year.

15
Sec. 45. (1) A person may transfer any unexpended funds

16
from 1 candidate committee to another candidate committee of that

17
person if the contribution limits prescribed in section 52 or

18
69 for the candidate committee receiving the funds are equal to

19
or greater than the contribution limits for the candidate commit-

20
tee transferring the funds and if the candidate committees are

21
simultaneously held by the same person. The funds being trans-

22
ferred shall not be considered a qualifying contribution regard-

23
less of the amount of the individual contribution being

24
transferred.

25
(2) Upon termination of a candidate committee, unexpended

26
funds in the candidate committee that are not eligible for

01078'01 5

1
transfer to another candidate committee of the person under

2
subsection (1) shall be disbursed as follows:

3
(a) Given to a political party committee.

4
(b) Given to a tax exempt charitable organization, as long

5
as the candidate does not become an officer or director of or

6
receive compensation, either directly or indirectly, from that

7
organization.

8
(c) Returned to the contributors of the funds upon termina-

9
tion of the campaign committee.

10
(d) If the person was a candidate for the office of state

11
representative, given to a house political party caucus

12
committee.

13
(e) If the person was a candidate for the office of state

14
senator, given to a senate political party caucus committee.

15
(f) Given to an independent committee.

16
(g) Given to a ballot question committee.

17
Sec. 61. (1) The state campaign fund is hereby created.

18
The state treasurer shall administer the state campaign fund pur-

19
suant to this act.

20
(2) An individual whose tax liability under the income tax

21
act of 1967, Act No. 281 of the Public Acts of 1967, as amended,

22
being sections 206.1 to 206.532 of the Michigan Compiled Laws

23
1967 PA 281, MCL 206.1 TO 206.532, for a taxable year is $3.00 or

24
more may designate that $3.00 be credited to the state campaign

25
fund. In the case of a joint return of husband and wife having

26
an income tax liability of $6.00 or more, each spouse may

27
designate that $3.00 be credited to the state campaign fund.

01078'01 6

1
(3) The tax designation authorized in this section shall be

2
clearly and unambiguously printed on the first page of the state

3
individual income tax return.

4
(4) An amount equal to the cumulative amounts designated

5
under subsection (2) each year shall be appropriated annually

6
from the general fund of the state to the state campaign fund to

7
be available beginning January 1 and continuing through December

8
31 of each year in which a governor is elected. The amounts

9
appropriated under this section shall not revert to the general

10
fund but shall remain available to the state campaign fund for

11
distribution without fiscal year limitation except that any

12
amounts remaining in the state campaign fund in excess of

13
$10,000,000.00 on December 31 immediately following a gubernato-

14
rial general election shall revert to the general fund.

15
(5) Before the distribution of funds MONEY under this

16
act SECTION to qualifying primary election candidates

17
ELIGIBLE EDUCATIONAL INSTITUTIONS, the state treasurer shall set

18
aside sufficient funds MONEY from the state campaign fund to

19
fully implement the formula for distributing funds to qualifying

20
general election candidates. If insufficient funds exist in the

21
state campaign fund to provide full funding to eligible primary

22
election candidates, the campaign funds shall be distributed to

23
those candidates on a pro rata basis. MONEY TO ELIGIBLE EDUCA-

24
TIONAL INSTITUTIONS. THE DISTRIBUTION FORMULA SHALL PROVIDE FOR

25
EQUITABLE ACCESS TO THE AVAILABLE MONEY BY ALL OF THE ELIGIBLE

26
EDUCATIONAL INSTITUTIONS.

01078'01 7

1
(6) THE MONEY ACCUMULATED UNDER THIS SECTION SHALL BE

2
DISTRIBUTED TO ELIGIBLE EDUCATIONAL INSTITUTIONS. THE MONEY

3
SHALL BE USED BY THE EDUCATIONAL INSTITUTION FOR THE SOLE PURPOSE

4
OF SPONSORING AND BROADCASTING FORUMS AND DEBATES OF GUBERNATO-

5
RIAL CANDIDATES.

6
(7) TO RECEIVE MONEY PROVIDED UNDER THIS SECTION, AN ELIGI-

7
BLE EDUCATIONAL INSTITUTION SHALL COMPLETE AN APPLICATION FORM

8
PRESCRIBED BY THE STATE TREASURER. THE FORM SHALL INCLUDE A

9
DESCRIPTION OF THE FORUM OR DEBATE TO BE HELD AND THE TYPE OF

10
BROADCAST. IF NO FORUM OR DEBATE IS HELD AFTER AN ELIGIBLE EDU-

11
CATIONAL INSTITUTION RECEIVES MONEY TO SPONSOR A FORUM OR A

12
DEBATE, THE MONEY SHALL BE RETURNED TO THE STATE TREASURER NOT

13
LATER THAN 5 BUSINESS DAYS AFTER THE GUBERNATORIAL ELECTION.

14
(8) AS USED IN THIS SECTION, "ELIGIBLE EDUCATIONAL

15
INSTITUTION" MEANS A PUBLIC ELEMENTARY SCHOOL, MIDDLE SCHOOL,

16
JUNIOR HIGH SCHOOL, HIGH SCHOOL, JUNIOR COLLEGE, COMMUNITY COL-

17
LEGE, COLLEGE, OR UNIVERSITY IN THIS STATE.

18
Enacting section 1. Sections 62 to 71 of the Michigan cam-

19
paign finance act, 1976 PA 388, MCL 169.262 to 169.271, are

20
repealed.

01078'01 Final page. CAS