HOUSE BILL No. 6134

 

June 1, 2006, Introduced by Reps. Baxter, Taub, Sheltrown, Schuitmaker, Elsenheimer, Ward, 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 24, 26, 29, 35, and 43 (MCL 169.224, 169.226,

 

169.229, 169.235, and 169.243), section 24 as amended by 1999 PA

 

237, sections 26 and 29 as amended by 2001 PA 250, and section 35

 

as amended by 2000 PA 75.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 24. (1) A committee shall file a statement of

 

organization with the filing officials designated in section 36 to

 

receive the committee's campaign statements. A statement of

 

organization shall be filed within 10 days after a committee is

 

formed. A filing official shall maintain a statement of

 


organization filed by a committee until 5 years after the official

 

date of the committee's dissolution. A person who fails to file a

 

statement of organization required by this subsection shall pay a

 

late filing fee of $10.00 for each business day the statement

 

remains not filed in violation of this subsection. The late filing

 

fee shall not exceed $300.00. A person who violates this subsection

 

by failing to file for more than 30 days after a statement of

 

organization is required to be filed is guilty of a misdemeanor

 

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

 

     (2) The statement of organization required by subsection (1)

 

shall include the following information:

 

     (a) The name, street address, and if available, the telephone

 

number of the committee. If a committee is a candidate committee,

 

the committee name shall include the first and last name of the

 

candidate. A committee address may be the home address of the

 

candidate or treasurer of the committee.

 

     (b) The name, street address, and if available, the telephone

 

number of the treasurer or other individual designated as

 

responsible for the committee's record keeping, report preparation,

 

or report filing.

 

     (c) The name, street address, and, if available, telephone

 

number of the successor treasurer who will serve as the treasurer

 

or other individual designated as responsible for the committee's

 

record-keeping, report preparation, or report filing if the

 

individual named under subdivision (b) resigns, dies, or is

 

incapacitated.

 

     (d)  (c)  The name and address of the financial institution in

 


which the official committee depository is or is intended to be

 

located, and the name and address of each financial institution in

 

which a secondary depository is or is intended to be located.

 

     (e)  (d)  The full name of the office being sought by,

 

including district number or jurisdiction, and the county residence

 

of each candidate supported or opposed by the committee.

 

     (f)  (e)  A brief statement identifying the substance of each

 

ballot question supported or opposed by the committee. If the

 

ballot question supported or opposed by the committee is not

 

statewide, the committee shall identify the county in which the

 

greatest number of registered voters eligible to vote on the ballot

 

question reside.

 

     (g)  (f)  Identification of the committee as a candidate

 

committee, political party committee, independent committee,

 

political committee, or ballot question committee if it is

 

identifiable as such a committee.

 

     (3) An independent committee or political committee shall

 

include in the name of the committee the name of the person or

 

persons that sponsor the committee, if any, or with whom the

 

committee is affiliated. A person, other than an individual or a

 

committee, sponsors or is affiliated with an independent committee

 

or political committee if that person establishes, directs,

 

controls, or financially supports the administration of the

 

committee. For the purposes of this subsection, a person does not

 

financially support the administration of a committee by merely

 

making a contribution to the committee.

 

     (4) If any of the information required in a statement of

 


organization is changed, the committee shall file an amendment when

 

the next campaign statement is required to be filed. An independent

 

committee or political committee whose name does not include the

 

name of the person or persons that sponsor the committee or with

 

whom the committee is affiliated as required by subsection (3)

 

shall file an amendment to the committee's statement of

 

organization not later than the date the next campaign statement is

 

required to be filed.  after the effective date of the amendatory

 

act that added this sentence.

 

     (5) When filing a statement of organization, a committee,

 

other than an independent committee, a political committee, or a

 

political party committee, may indicate in a written statement

 

signed by the treasurer of the committee that the committee does

 

not expect for each election to receive an amount in excess of

 

$1,000.00 or expend an amount in excess of $1,000.00.

 

     (6) When filing a statement of organization, an independent

 

committee, a political committee, or a political party committee

 

may indicate in a written statement signed by the treasurer of the

 

committee that the committee does not expect in a calendar year to

 

receive or expend an amount in excess of $1,000.00.

 

     (7) Upon the dissolution of a committee, the committee shall

 

file a statement indicating dissolution with the filing officials

 

with whom the committee's statement of organization was filed.

 

Dissolution of a committee shall be accomplished pursuant to rules

 

promulgated by the secretary of state under the administrative

 

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

 

     (8) A candidate committee that files a written statement  

 


pursuant to  under subsection (5) shall not be required to file a

 

dissolution statement  pursuant to  under subsection (7) if the

 

committee failed to receive or expend an amount in excess of

 

$1,000.00 and 1 of the following applies:

 

     (a) The candidate was defeated in an election and has no

 

outstanding campaign debts or assets.

 

     (b) The candidate vacates an elective office and has no

 

outstanding campaign debts or assets.

 

     Sec. 26. (1) A campaign statement of a committee, other than a

 

political party committee, required by this act shall contain all

 

of the following information:

 

     (a) The filing committee's name, address, and telephone

 

number, and the full name, residential and business addresses, and

 

telephone numbers of the committee treasurer or other individual

 

designated as responsible for the committee's record keeping,

 

report preparation, or report filing.

 

     (b) Under the heading "receipts", the total amount of

 

contributions received during the period covered by the campaign

 

statement; under the heading "expenditures", the total amount of

 

expenditures made during the period covered by the campaign

 

statement; and the cumulative amount of those totals. Forgiveness

 

of a loan shall not be included in the totals. Payment of a loan by

 

a third party shall be recorded and reported as an in-kind

 

contribution by the third party. In-kind contributions or

 

expenditures shall be listed at fair market value and shall be

 

reported as both contributions and expenditures. A contribution or

 

expenditure that is by other than completed and accepted payment,

 


gift, or other transfer, that is clearly not legally enforceable,

 

and that is expressly withdrawn or rejected and returned before a

 

campaign statement closing date need not be included in the

 

campaign statement and if included may, in a later or amended

 

statement, be shown as a deduction, but the committee shall keep

 

adequate records of each instance.

 

     (c) The balance of cash on hand at the beginning and the end

 

of the period covered by the campaign statement.

 

     (d) The following information regarding each fund-raising

 

event shall be included in the report:

 

     (i) The type of event, date held, address and name, if any, of

 

the place where the activity was held, and approximate number of

 

individuals participating or in attendance.

 

     (ii) The total amount of all contributions.

 

     (iii) The gross receipts of the fund-raising event.

 

     (iv) The expenditures incident to the event.

 

     (d)  (e)  The full name of each individual from whom

 

contributions are received during the period covered by the

 

campaign statement, together with the individual's street address,

 

the amount contributed, the date on which each contribution was

 

received, and the cumulative amount contributed by that individual.

 

The occupation, employer, and principal place of business shall be

 

stated if the individual's cumulative contributions are more than

 

$100.00.

 

     (e)  (f)  The cumulative amount contributed and the name and

 

address of each individual, except those individuals reported under

 

subdivision  (e)  (d), who contributed to the committee. The

 


occupation, employer, and principal place of business shall be

 

stated for each individual who contributed more than $100.00.

 

     (f)  (g)  The name and street address of each person, other

 

than an individual, from whom contributions are received during the

 

period covered by the campaign statement, together with an

 

itemization of the amounts contributed, the date on which each

 

contribution was received, and the cumulative amount contributed by

 

that person.

 

     (g)  (h)  The name, address, and amount given by an individual

 

who contributed to the total amount contributed by a person who is

 

other than a committee or an individual. The occupation, employer,

 

and principal place of business shall be stated if the individual

 

contributed more than $100.00 of the total amount contributed by a

 

person who is other than a committee or an individual.

 

     (h)  (i)  The cumulative total of expenditures of $50.00 or

 

less made during the period covered by the campaign statement

 

except for expenditures made to or on behalf of another committee,

 

candidate, or ballot question.

 

     (i)  (j)  The full name and street address of each person to

 

whom expenditures totaling more than $50.00 were made, together

 

with the amount of each separate expenditure to each person during

 

the period covered by the campaign statement; the purpose of the

 

expenditure; the full name and street address of the person

 

providing the consideration for which any expenditure was made if

 

different from the payee; the itemization regardless of amount of

 

each expenditure made to or on behalf of another committee,

 

candidate, or ballot question; and the cumulative amount of

 


expenditures for or against that candidate or ballot question for

 

an election cycle. An expenditure made in support of more than 1

 

candidate or ballot question, or both, shall be apportioned

 

reasonably among the candidates or ballot questions, or both.

 

     (2) A candidate committee or ballot question committee shall

 

report all cumulative amounts required by this section on a per

 

election cycle basis. Except for subsection  (1)(j)  (1)(i), an

 

independent committee or political committee shall report all

 

cumulative amounts required by this section on a calendar year

 

basis.

 

     (3) A campaign statement of a committee, in addition to the

 

other information required by this section, shall include an

 

itemized list of all expenditures during the reporting period for

 

election day busing of electors to the polls, get-out-the-vote

 

activities, slate cards, challengers, poll watchers, and poll

 

workers.

 

     (4) For a reporting period in which a contribution is received

 

that is to be part of a bundled contribution or a reporting period

 

in which a bundled contribution is delivered to the candidate

 

committee of a candidate for statewide elective office, a bundling

 

committee shall report to the secretary of state, on a form

 

provided by the secretary of state, all of the following

 

information, as applicable, about each contribution received or

 

delivered as part of a bundled contribution, and about each bundled

 

contribution delivered, in the reporting period:

 

     (a) The amount of each contribution, the date it was received

 

by the bundling committee, and the candidate for statewide elective

 


office whom the contributor designated as the intended recipient.

 

     (b) Each contributor's name and address and, for each

 

contribution exceeding $100.00, the contributor's occupation,

 

employer, and principal place of business.

 

     (c) The date each contribution is delivered to the candidate's

 

statewide elective office candidate committee.

 

     (d) The total amount of bundled contributions delivered to

 

that candidate committee during the reporting period and during the

 

election cycle.

 

     (5) With its delivery of a bundled contribution to the

 

candidate committee of a candidate for statewide elective office, a

 

bundling committee shall deliver a report to that candidate

 

committee, on a form provided by the secretary of state, that

 

includes all of the following information, as applicable, about

 

each contribution delivered as part of the bundled contribution,

 

and about all bundled contributions delivered to that candidate

 

committee in the election cycle:

 

     (a) The amount of each contribution, the date it was received

 

by the bundling committee, and the statewide elective office

 

candidate the contributor designated as the intended recipient.

 

     (b) Each contributor's name and address and, for each

 

contribution exceeding $100.00, the contributor's occupation,

 

employer, and principal place of business.

 

     (c) The total amount of bundled contributions delivered to

 

that candidate committee during the reporting period and during the

 

election cycle.

 

     (6) For a reporting period in which a bundled contribution is

 


received, a candidate committee of a candidate for statewide

 

elective office shall report to the secretary of state, on a form

 

provided by the secretary of state, all of the following

 

information, as applicable, about each contribution delivered as

 

part of a bundled contribution received in the reporting period and

 

about all bundled contributions received by that candidate

 

committee:

 

     (a) The amount of each contribution, the date it was received

 

by the candidate committee, and the name of the bundling committee

 

that delivered the contribution.

 

     (b) Each contributor's name and address and, for each

 

contribution exceeding $100.00, the contributor's occupation,

 

employer, and principal place of business.

 

     (c) The total amount of bundled contributions received by that

 

candidate committee during the reporting period and during the

 

election cycle.

 

     Sec. 29. (1) A campaign statement filed by a political party

 

committee shall contain all of the following information:

 

     (a) The full name and street address of each person from whom

 

contributions are received in a calendar year, the amount, and the

 

date or dates contributed; and, if the person is a committee, the

 

name and address of the committee and the full name of the

 

committee treasurer, together with the amount of the contribution

 

and the date received. The occupation, employer, and principal

 

place of business, if any, shall be listed for each person from

 

whom contributions totaling more than $100.00 are received in a

 

calendar year.

 


     (b) Accompanying a campaign statement reporting the receipt of

 

a contribution from a committee or person whose treasurer does not

 

reside in, whose principal office is not located in, or whose funds

 

are not kept in this state, and whose committee has not filed a

 

statement of organization as required in section 24, shall be a

 

statement setting forth the full name and address of the treasurer

 

of the committee.

 

     (c) An itemized list of all expenditures, including in-kind

 

contributions and expenditures and loans, made during the period

 

covered by the campaign statement that were contributions to a

 

candidate committee of a candidate for elective office or a ballot

 

question committee; or independent expenditures in support of the

 

qualification, passage, or defeat of a ballot question or in

 

support of the nomination or election of a candidate for elective

 

office or the defeat of any of the candidate's opponents.

 

     (d) The total expenditure by the committee for each candidate

 

for elective office or ballot question in whose behalf an

 

independent expenditure was made or a contribution was given for

 

the election cycle.

 

     (e) The filer's name, address, and telephone number, if

 

available, if any, and the full name, address, and telephone

 

number, if available, of the committee treasurer.

 

     (f) Under the heading "receipts", the total amount of

 

contributions and other money and things of value received during

 

the period covered by the campaign statement.

 

     (g) Under the heading "debts and obligations", the total

 

amount owed by the committee and the total amount owed to the

 


committee.

 

     (h) A statement showing the ending balance on the closing date

 

of the last statement filed, the amount received during the

 

reporting period, the amount expended during the reporting period,

 

and the ending balance on the closing date of the statement.

 

     (i) The cumulative contributions, other receipts, in-kind

 

contributions and in-kind expenditures, and expenditures for the

 

calendar year.

 

     (2) The committee shall identify an expenditure listed under

 

subsection (1)(c) as an independent expenditure or as a

 

contribution to a candidate committee or a ballot question

 

committee.

 

     (3) The committee shall designate for a contribution to or on

 

behalf of a candidate committee or ballot question committee listed

 

under subsection (1)(c) the name and address of the committee, the

 

name of the candidate and the office sought, if any, the amount

 

contributed, and the date of contribution.

 

     (4) The committee shall designate for an independent

 

expenditure listed under subsection (1)(c) either the name of the

 

candidate for whose benefit the expenditure was made and the office

 

sought by the candidate, or a brief description of the ballot

 

question for which the expenditure was made; the amount, date, and

 

purpose of the expenditure; and the full name and address of the

 

person to whom the expenditure was made.

 

     (5) The committee shall apportion an expenditure listed that

 

was made in support of more than 1 candidate or ballot question, or

 

both, reasonably among the candidates or ballot questions, or both.

 


     (6) A campaign statement of a committee, in addition to the

 

other information required by this section, shall include an

 

itemized list of all expenditures during the reporting period for

 

election day busing of electors to the polls, get-out-the-vote

 

activities, slate cards, challengers, poll watchers, and poll

 

workers.

 

     Sec. 35. (1) In addition to any other requirements of this act

 

for filing a campaign statement, a committee, other than an

 

independent committee or a political committee required to file

 

with the secretary of state, shall also file  a  all of the

 

following campaign statements:

 

     (a) A campaign statement not later than January 31 of each

 

year. The campaign statement shall have a closing date of December

 

31 of the previous year.  The period covered by the campaign

 

statement filed pursuant to this subsection begins the day after

 

the closing date of the previous campaign statement.  A campaign

 

statement  filed pursuant to this subsection shall be  required by

 

this subdivision is waived if a postelection campaign statement has

 

been filed that has a filing deadline within 30 days of the closing

 

date of the campaign statement required by this  subsection  

 

subdivision.

 

     (b) In each year in which a committee is not required to file

 

preelection and postelection campaign statements, campaign

 

statements not later than April 30, July 31, and October 31 with

 

closing dates of March 31, June 30, and September 30, respectively.

 

     (c) In each year in which a committee is required to file

 

preelection and postelection campaign statements, a campaign

 


statement not later than April 30 with a closing date of March 31.

 

     (2) Subsection (1) does not apply to a candidate committee for

 

an officeholder who is a judge or a supreme court justice, or who

 

holds an elective office for which the salary is less than $100.00

 

a month and who does not receive  any  a contribution or make  any  

 

an expenditure during the time that would be otherwise covered in

 

the statement.

 

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

 

designated as responsible for the record keeping, report

 

preparation, or report filing for a candidate committee of a

 

candidate for state elective office or a judicial office who fails

 

to file a campaign statement under this section shall be assessed 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 campaign 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

 

be $50.00 for each business day the campaign statement remains

 

unfiled, but not to exceed $1,000.00. The late filing fee assessed

 

under this subsection shall be paid by the candidate, and the

 

candidate shall not use committee funds to pay that fee. A

 

committee, treasurer, or other individual designated as responsible

 

for the record keeping, report preparation, or report filing for a

 

committee other than a candidate committee of a candidate for state

 

elective office or a judicial office who fails to file a campaign

 

statement under this section shall pay a late filing fee of $25.00

 

for each business day the campaign statement remains not filed in

 


violation of this section. The late filing fee shall not exceed

 

$500.00.

 

     (4) A committee filing a written statement  pursuant to  under

 

section 24(5) or (6) need not file a statement  in accordance with  

 

under subsection (1). If a committee receives or expends more than

 

$1,000.00 during a time period prescribed by section 24(5) or (6),

 

the committee is then subject to the campaign filing requirements

 

under this act and shall file a campaign statement for the period

 

beginning the day after the closing date of the last postelection

 

campaign statement or an annual campaign statement that is waived  

 

pursuant to  as provided in subsection (1), whichever occurred

 

earlier.

 

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

 

as responsible for the record keeping, report preparation, or

 

report filing fails to file 2 statements required by this section

 

or section 33 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.

 

     (6) If a treasurer or other individual designated as

 

responsible for the record keeping, report preparation, or report

 

filing for a committee required to file a campaign statement under

 

subsection (1) knowingly files an incomplete or inaccurate

 

statement or report required by this section, that treasurer or

 

other designated individual is subject to a civil fine of not more

 

than $1,000.00.

 


     Sec. 43. (1) An expenditure shall not be made, other than for

 

overhead or normal operating expenses, by an agent or an

 

independent contractor, including an advertising agency, on behalf

 

of or for the benefit of a person unless the expenditure is

 

reported by the committee as if the expenditure were made directly

 

by the committee, or unless the agent or independent contractor

 

files a report of an independent expenditure as provided in section

 

51. The agent or independent contractor shall make known to the

 

committee all information required to be reported by the committee.

 

A person  

 

     (2) If a committee reports an expenditure of money paid to an

 

agent or independent contractor and if the agent or independent

 

contractor makes an expenditure of that money after the closing

 

date of the campaign statement in which the committee reports the

 

expenditure, the committee treasurer or other individual designated

 

on the statement of organization as responsible for the committee's

 

record keeping, report preparation, or report filing shall file an

 

amended campaign statement that contains a detailed itemization of

 

the expenditure made by the agent or independent contractor. An

 

amended campaign statement required by this subsection shall be

 

filed with the filing official within 48 hours after the

 

expenditure is made by the agent or independent contractor.

 

     (3) An individual who knowingly  is in violation of this

 

subsection  violates this section is guilty of a misdemeanor and

 

shall be punished by a fine of not more than $1,000.00, or

 

imprisoned for not more than 90 days, or both. , and if the  A

 

person  is  other than an individual  the person  who knowingly

 


violates this section shall be fined not more than $10,000.00.

 

     Enacting section 1. This amendatory act takes effect January

 

31, 2007.