HOUSE BILL No. 6128

 

June 1, 2006, Introduced by Reps. Ward, Taub, Sheltrown, Schuitmaker, Elsenheimer, Stahl, Proos, Mortimer, Ball, Nitz and Kooiman and referred to the Committee on House Oversight, Elections, and Ethics.

 

     A bill to amend 1976 PA 388, entitled

 

"Michigan campaign finance act,"

 

by amending sections 5, 6, 11, and 54 (MCL 169.205, 169.206,

 

169.211, and 169.254), section 5 as amended by 1999 PA 237, section

 

6 as amended by 2003 PA 69, section 11 as amended by 1996 PA 590,

 

and section 54 as amended by 1995 PA 264, and by adding sections

 

40, 52b, and 53a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5. (1) "Domestic dependent sovereign" means an Indian

 

tribe that has been acknowledged, recognized, restored, or

 

reaffirmed as an Indian tribe by the secretary of the interior

 

pursuant to chapter 576, 48 Stat. 984, 25 U.S.C.  under the Indian

 

reorganization act, 25 USC 461 to 463, 464 to 465, 466 to 470, 471


 

to 472, 473, 474 to 475, 476 to 478, and 479,  commonly referred to

 

as the Indian reorganization act,  or has otherwise been

 

acknowledged by the United States government as an Indian tribe.

 

     (2) "Election" means a primary, general, special, or millage

 

election held in this state or a convention or caucus of a

 

political party held in this state to nominate a candidate.

 

Election includes a recall vote.

 

     (3) "Election cycle" means 1 of the following:

 

     (a) For a general election, the period beginning the day

 

following the last general election in which the office appeared on

 

the ballot and ending on the day of the general election in which

 

the office next appears on the ballot.

 

     (b) For a special election, the period beginning the day a

 

special general election is called or the date the office becomes

 

vacant, whichever is earlier, and ending on the day of the special

 

general election.

 

     (4) "Electioneering communication" means, subject to

 

subsection (5), a communication to which all of the following

 

apply:

 

     (a) The communication refers to a clearly identified

 

candidate.

 

     (b) The communication is made within 30 days before a primary

 

election or a convention or caucus of a political party that has

 

authority to nominate a candidate or within 60 days before a

 

general election.

 

     (5) Electioneering communication does not include the

 

following:


 

     (a) A communication in a news story, commentary, or editorial

 

distributed through the facilities of a broadcasting station,

 

unless the facilities are owned or controlled by a candidate or a

 

committee, other than an independent committee or a ballot question

 

committee.

 

     (b) A communication that is an expenditure or an independent

 

expenditure.

 

     (c) A communication in a candidate debate or forum conducted

 

pursuant to rules adopted by the secretary of state or that solely

 

promotes such a debate or forum and is made by or on behalf of the

 

person sponsoring the debate or forum.

 

     (6)  (4)  "Elective office" means a public office filled by an

 

election. A person who is appointed to fill a vacancy in a public

 

office that is ordinarily elective holds an elective office.

 

Elective office does not include the office of precinct delegate.

 

Except for the purposes of sections 47, 54, and 55, elective office

 

does not include a school board member in a school district that

 

has a pupil membership of 2,400 or less enrolled on the most recent

 

pupil membership count day. However, elective office includes a

 

school board member in a school district that has a pupil

 

membership of 2,400 or less  ,  if a candidate committee of a

 

candidate for the office of school board member in that school

 

district receives an amount in excess of $1,000.00 or expends an

 

amount in excess of $1,000.00. Elective office does not include a

 

federal office except for the purposes of section 57.

 

     Sec. 6. (1) "Expenditure" means a payment, donation, loan, or

 

promise of payment of money or anything of ascertainable monetary


 

value for goods, materials, services, or facilities in assistance

 

of, or in opposition to, the nomination or election of a candidate,

 

or the qualification, passage, or defeat of a ballot question.

 

Expenditure includes, but is not limited to, any of the following:

 

     (a) A contribution or a transfer of anything of ascertainable

 

monetary value for purposes of influencing the nomination or

 

election of a candidate or the qualification, passage, or defeat of

 

a ballot question.

 

     (b) Except as provided in subsection  (2)(f) or (g)  (2)(e) or

 

(f), an expenditure for voter registration or get-out-the-vote

 

activities made by a person who sponsors or finances the activity

 

or who is identified by name with the activity.

 

     (c) Except as provided in subsection  (2)(f) or (g)  (2)(e) or

 

(f), an expenditure made for poll watchers, challengers,

 

distribution of election day literature, canvassing of voters to

 

get out the vote, or transporting voters to the polls.

 

     (2) Expenditure does not include any of the following:

 

     (a) An expenditure for communication by a person with the

 

person's paid members or shareholders and those individuals who can

 

be solicited for contributions to a separate segregated fund under

 

section 55.

 

     (b) An expenditure for communication on a subject or issue if

 

the communication does not support or oppose a ballot question or

 

candidate by name or clear inference.

 

     (b)  (c)  An expenditure for the establishment,

 

administration, or solicitation of contributions to a separate

 

segregated fund or independent committee.


 

     (c)  (d)  An expenditure by a broadcasting station, newspaper,

 

magazine, or other periodical or publication for a news story,

 

commentary, or editorial in support of or opposition to a candidate

 

for elective office or a ballot question in the regular course of

 

publication or broadcasting.

 

     (d)  (e)  An offer or tender of an expenditure if expressly

 

and unconditionally rejected or returned.

 

     (e)  (f)  An expenditure for nonpartisan voter registration or

 

nonpartisan get-out-the-vote activities made by an organization

 

that is exempt from federal income tax pursuant to section

 

501(c)(3) of the internal revenue code of 1986, 26  U.S.C.  USC

 

501, or any successor statute.

 

     (f)  (g)  An expenditure for nonpartisan voter registration or

 

nonpartisan get-out-the-vote activities performed pursuant to

 

chapter XXIII of the Michigan election law, 1954 PA 116, MCL

 

168.491 to 168.524, by the secretary of state and other

 

registration officials who are identified by name with the

 

activity.

 

     (g)  (h)  An expenditure by a state central committee of a

 

political party or a person controlled by a state central committee

 

of a political party for the construction, purchase, or renovation

 

of 1 or more office facilities in Ingham county if the facility is

 

not constructed, purchased, or renovated for the purpose of

 

influencing the election of a candidate in a particular election.

 

Items excluded from the definition of expenditure under this

 

subdivision include expenditures approved in federal election

 

commission advisory opinions 1993-9, 2001-1, and 2001-12 as


 

allowable expenditures under the federal election campaign act of

 

1971, Public Law 92-225,  2 U.S.C. 431 to 434, 437, 437c to 439a,

 

439c, 441a to 441h, and 442 to 455,  and regulations promulgated

 

under that act, regardless of whether those advisory opinions have

 

been superseded.

 

     Sec. 11. (1) "Person" means a business, individual,

 

proprietorship, firm, partnership, joint venture, syndicate,

 

business trust, labor organization, company, corporation,

 

association, committee, organization that claims tax-exempt status

 

under section 527 of the internal revenue code, 26 USC 527, or any

 

other organization or group of persons acting jointly.

 

     (2) "Political committee" means a committee that is not a

 

candidate committee, political party committee, independent

 

committee, or ballot question committee.

 

     (3) "Political merchandise" means goods such as bumper

 

stickers, pins, hats, beverages, literature, or other items sold by

 

a person at a fund raiser or to the general public for publicity or

 

for the purpose of raising funds to be used in supporting or

 

opposing a candidate for nomination for or election to an elective

 

office or in supporting or opposing the qualification, passage, or

 

defeat of a ballot question.

 

     (4) "Political party" means a political party  which  that has

 

a right under law to have the names of its candidates listed on the

 

ballot in a general election.

 

     (5) "Political party committee" means a state central,

 

district, or county committee of a political party  which  that is

 

a committee. Each state central committee shall designate the


 

official party county and district committees. There shall not be

 

more than 1 officially designated political party committee per

 

county and per congressional district.

 

     (6) "Public body" means 1 or more of the following:

 

     (a) A state agency, department, division, bureau, board,

 

commission, council, authority, or other body in the executive

 

branch of state government.

 

     (b) The legislature or an agency, board, commission, or

 

council in the legislative branch of state government.

 

     (c) A county, city, township, village, intercounty, intercity,

 

or regional governing body; a council, school district, special

 

district, or municipal corporation; or a board, department,

 

commission, or council or an agency of a board, department,

 

commission, or council.

 

     (d) Any other body that is created by state or local authority

 

or is primarily funded by or through state or local authority,

 

which body exercises governmental or proprietary authority or

 

performs a governmental or proprietary function.

 

     Sec. 40. (1) A person shall not receive a contribution or make

 

a contribution to a committee if the contribution is made in

 

exchange for money from a corporation, labor organization, or

 

domestic dependent sovereign.

 

     (2) A corporation, labor organization, or domestic dependent

 

sovereign shall not make a donation, payment, or transfer of money

 

or anything of value, and a person shall not make a donation,

 

payment, or transfer from a financial institution account that

 

contains money of a corporation, labor organization, or domestic


 

dependent sovereign, to a person with the understanding, agreement,

 

or arrangement that the person will induce an independent

 

expenditure or a contribution to a committee.

 

     (3) A person shall not receive a contribution that was

 

obtained as a result of a donation, payment, or transfer of money

 

or anything of value by a corporation, labor organization, or

 

domestic dependent sovereign, or by a person who made the donation,

 

payment, or transfer from a financial institution account that

 

contains money of a corporation, labor organization, or domestic

 

dependent sovereign.

 

     (4) A person shall not arrange for a corporation, labor

 

organization, or domestic dependent sovereign to make a donation,

 

payment, or transfer of money or anything of value, or for a person

 

to make a donation, payment, or transfer from a financial

 

institution account that contains money of a corporation, labor

 

organization, or domestic dependent sovereign, to a person for the

 

purpose of inducing an independent expenditure or a contribution to

 

a committee.

 

     (5) This section does not apply to a donation, payment, or

 

transfer of money or anything of value by a corporation, labor

 

organization, or domestic dependent sovereign to a charity to match

 

an amount contributed to the separate segregated fund of the

 

corporation, labor organization, or domestic dependent sovereign by

 

an individual who is allowed to be solicited for contributions to

 

the separate segregated fund under section 55.

 

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

 

a felony punishable, if the person is an individual, by


 

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

 

$5,000.00, or both, or, if the person is not an individual, by a

 

fine of not more than $10,000.00.

 

     Sec. 52b. (1) A person shall not make contributions to a

 

political party committee that exceed $50,000.00 in a calendar

 

year. A political party committee or a treasurer or agent of the

 

committee shall not accept a contribution with respect to an

 

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

 

imprisonment for not more than 90 days or a fine of not more than

 

$1,000.00, or both, or, if the person is not an individual, by a

 

fine of not more than $10,000.00.

 

     Sec. 53a. An organization that claims tax-exempt status under

 

section 527 of the internal revenue code, 26 USC 527, shall not

 

make a contribution or an expenditure for an electioneering

 

communication.

 

     Sec. 54. (1) Except  with respect to the exceptions and

 

conditions  as provided in subsections (2) and (3) and section 55,

 

and  to  except for loans made in the ordinary course of business,

 

a corporation, joint stock company, domestic dependent sovereign,

 

or labor organization shall not make a contribution or expenditure,

 

including, but not limited to, a contribution or expenditure for an

 

electioneering communication, or provide volunteer personal

 

services that are excluded from the definition of a contribution

 

pursuant to  under section 4(3)(a).

 

     (2) An officer, director, stockholder, attorney, agent, or  


 

any other  another person acting for a labor organization, a

 

domestic dependent sovereign, or a corporation or joint stock

 

company, whether incorporated under the laws of this or any other

 

state or foreign country, except corporations formed for political

 

purposes, shall not make a contribution or expenditure or provide

 

volunteer personal services that are excluded from the definition

 

of a contribution  pursuant to  under section 4(3)(a).

 

     (3) A corporation, joint stock company, domestic dependent

 

sovereign, or labor organization may make a contribution to a

 

ballot question committee subject to this act. A corporation, joint

 

stock company, domestic dependent sovereign, or labor organization

 

may make an independent expenditure in any amount for the

 

qualification, passage, or defeat of a ballot question. A

 

corporation, joint stock company, domestic dependent sovereign, or

 

labor organization that makes an independent expenditure under this

 

subsection is considered a ballot question committee for the

 

purposes of this act.

 

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

 

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

 

not more than $5,000.00 or imprisonment for not more than 3 years,

 

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

 

more than $10,000.00.

 

     Enacting section 1. This amendatory act takes effect January

 

31, 2007.