January 31, 2007, Introduced by Senators CHERRY, JACOBS, PATTERSON and GLEASON and referred to the Committee on Campaign and Election Oversight.
A bill to amend 1976 PA 388, entitled
"Michigan campaign finance act,"
by amending sections 3, 5, 7, 10, and 11 (MCL 169.203, 169.205,
169.207, 169.210, and 169.211), section 3 as amended by 1989 PA 95,
section 5 as amended by 1999 PA 237, section 7 as amended by 2001
PA 250, and section 11 as amended by 1996 PA 590, and by adding
sections 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 103, 105,
107, 108, and 109.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
3. (1) "Candidate" means an individual : (a)
who files
who meets 1 or more of the following criteria:
(a) Files a fee, an affidavit of incumbency, or a nominating
petition
for an elective office. ; (b) whose nomination
(b) Is nominated as a candidate for elective office by a
political party caucus or convention and the nomination is
certified
to the appropriate filing official. ; (c) who receives
(c) Receives a contribution, makes an expenditure, or gives
consent for another person to receive a contribution or make an
expenditure with a view to bringing about the individual's
nomination or election to an elective office, whether or not the
specific elective office for which the individual will seek
nomination or election is known at the time the contribution is
received
or the expenditure is made. ; or (d) who is
(d) Is an officeholder who is the subject of a recall vote.
Unless
(e) Holds an elective office, unless the officeholder is
constitutionally or legally barred from seeking reelection or fails
to file for reelection to that office by the applicable filing
deadline. ,
an elected officeholder shall be An
individual
described in this subdivision is considered to be a candidate for
reelection to that same office for the purposes of this act only.
(2) For
purposes of sections 61 to 71, "candidate" only means
"Candidate" means, for purposes of sections 61 to 71 only, in a
primary election, a candidate for the office of governor and, in a
general election, a candidate for the office of governor or
lieutenant governor. However, for the purposes of sections 61 to
71, the candidates for the office of governor and lieutenant
governor of the same political party in a general election shall be
considered as 1 candidate.
(3) (2)
"Candidate committee" means the committee designated
in a candidate's filed statement of organization as that
individual's candidate committee. A candidate committee shall be
under the control and direction of the candidate named in the same
statement
of organization. Notwithstanding subsection (4) (6),
an
individual
shall form a candidate committee pursuant to under
section
21 when if the individual becomes a candidate under
subsection (1).
(4) "Certified candidate" means a participating judicial
candidate seeking election to the supreme court who has been
certified by the secretary of state under section 97.
(5) (3)
"Closing date" means the date through which a campaign
statement is required to be complete.
(6) (4)
"Committee" means a person who receives contributions
or makes expenditures for the purpose of influencing or attempting
to influence the action of the voters for or against the nomination
or election of a candidate, or the qualification, passage, or
defeat of a ballot question, if contributions received total
$500.00 or more in a calendar year or expenditures made total
$500.00 or more in a calendar year. An individual, other than a
candidate, does not constitute a committee. A person, other than a
committee registered under this act, making an expenditure to a
ballot
question committee, shall
not, for that reason, not
be
considered a committee for the purposes of this act unless the
person solicits or receives contributions for the purpose of making
an expenditure to that ballot question committee.
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 under the Indian
reorganization act, chapter 576, 48
Stat.
984, 25 U.S.C. 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 USC
461 to 479, 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 an electronic
communication made within 30 days before a primary election or 90
days before a general election that contains the name or image of a
participating candidate and that is not reported by a committee as
an expenditure or independent expenditure.
(5) (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. 7. (1) "Filed" means the receipt by the appropriate
filing official of a statement or report required to be filed under
this act.
(2) "Filer" means a person required to file a statement or
report under this act.
(3) "Filing official" means the official designated under this
act to receive required statements and reports.
(4) "Fund" means the public campaign fund established in
section 92.
(5) (4)
"Fund raising event" means an event such as a dinner,
reception, testimonial, rally, auction, or similar affair through
which contributions are solicited or received by purchase of a
ticket, payment of an attendance fee, making a donation, or
purchase of goods or services.
(6) "Funding law" means the public campaign funding law
alternative campaign finance provisions contained in sections 91 to
109.
(7) (5)
"Gift" means a payment, subscription, advance,
forbearance, rendering, or deposit of money, services, or anything
of value, unless consideration of equal or greater value is given
in exchange.
(8) (6)
"Honorarium" means a payment of money to a person
holding elective office as consideration for an appearance, a
speech, an article, or any activity related to or associated with
the performance of duties as an elected official. An honorarium
does not include any of the following:
(a) Reimbursement for the cost of transportation,
accommodations, or meals for the person.
(b) Wages, salaries, other employee compensation, and expenses
authorized to be paid by this state or a political subdivision of
this state to the person holding elective office.
(c) An award.
Sec. 10. (1) "Major political party" means a political party
qualified to have its name listed on the general election ballot
whose candidate for governor received 25% or more of the popular
vote cast in the preceding gubernatorial election. If only 1
political party received 25% or more of the popular vote cast for
governor in the preceding gubernatorial election, then the
political
party with the second highest vote shall be deemed is a
major political party.
(2) "Minor political party" means a political party qualified
to
have its name listed on the general election ballot but which
that does not qualify as a major political party.
(3) "Nominee" means an individual nominated to be a candidate.
(4) "Nonparticipating judicial candidate" means a candidate
seeking election to the supreme court who is not a participating
judicial candidate.
Sec. 11. (1) "Participating contribution" means a contribution
to a participating judicial candidate that meets all of the
following criteria:
(a) Does not exceed $500.00.
(b) Is made during the participating contribution period.
(c) Is acknowledged by a written receipt that identifies the
name and address of the contributor on a form provided by the
secretary of state.
(2) "Participating contribution period" means the time period
that begins February 15 of the election year and ends at 5 p.m. on
August 31 of the election year.
(3) "Participating judicial candidate" means a candidate who
is seeking election to the supreme court, who chooses to
participate under the funding law, and who is seeking to be a
certified candidate.
(4) (1)
"Person" means a business, individual, proprietorship,
firm, partnership, joint venture, syndicate, business trust, labor
organization, company, corporation, association, committee, or any
other organization or group of persons acting jointly.
(5) (2)
"Political committee" means a committee that is not a
candidate committee, political party committee, independent
committee, or ballot question committee.
(6) (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 money 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.
(7) (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.
(8) (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.
(9) (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
if the body exercises governmental or proprietary
authority
or performs a governmental or proprietary function.
Sec. 91. (1) This section and sections 92 to 109 shall be
known and may be cited as the "public campaign funding law".
(2) The public campaign funding law establishes an alternative
campaign financing option available to a certified candidate. This
alternative campaign financing option is available to a candidate
for an election for the supreme court held in this state after
January 1, 2008.
(3) The secretary of state and the department of treasury
shall administer the public campaign funding law. The state
treasurer shall administer the fund under this act.
Sec. 92. (1) The public campaign fund is established to
finance the election campaigns of certified candidates. The fund
shall pay administrative costs of the departments of treasury and
state and enforcement costs of the department of state related to
the public campaign funding law.
(2) The fund is a special, dedicated, nonlapsing fund.
Interest generated by the fund is credited to the fund.
(3) The state treasurer shall deposit all of the following
into the fund:
(a) Revenue under section 93.
(b) Money that was distributed to a certified candidate and
that remains unspent after the general election.
(c) Money that was distributed to a certified candidate and
that is unspent because the candidate does not remain a candidate
throughout the general election cycle.
(d) A voluntary donation made directly to the fund.
(e) A fine collected under section 108.
(4) On or before the September 1 immediately before a year in
which there will be a supreme court election, the secretary of
state shall publish an estimate of money in the fund available for
distribution to certified candidates during the upcoming year's
elections.
Sec. 93. (1) An individual whose tax liability under the
income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.532, for a
taxable year is $3.00 or more may opt not to have $3.00 credited to
the fund. In the case of a joint return of husband and wife having
an income tax liability of $6.00 or more, each spouse may opt not
to have $3.00 credited to the fund. The state treasurer shall
credit to the fund $3.00 for each individual who does not exercise
his or her option.
(2) The tax designation authorized in this section shall be
clearly and unambiguously printed on the first page of the state
individual income tax return.
(3) An amount equal to the cumulative amounts credited under
subsection (1) each year shall be appropriated annually from the
general fund of this state to the fund to be available beginning
January 1 and continuing through December 31 of each election year.
Sec. 94. (1) To be eligible for certification, a participating
judicial candidate shall meet both of the following requirements:
(a) He or she shall accept contributions and make expenditures
only during the participating contribution period.
(b) He or she shall not make or cause an expenditure to be
made from private money deposited to his or her candidate committee
during the current election cycle and before filing a declaration
of intent under subsection (3).
(2) A certified candidate shall not accept or spend a
participating contribution after certification.
(3) A participating judicial candidate shall file a
declaration of intent to seek certification under section 97 and to
comply with the requirements of the public campaign funding law.
Using forms and procedures developed by the secretary of state, the
candidate shall file the declaration of intent with the secretary
of state before or during the participating contribution period,
except as otherwise provided by rule for a special election,
vacancy, recount, withdrawal, or replacement. A participating
judicial candidate shall file a declaration of intent before
accepting a participating contribution.
Sec. 95. (1) After becoming a candidate and before becoming a
certified candidate, a participating judicial candidate shall not
accept a contribution except for a participating contribution.
(2) As 1 requirement for becoming a certified candidate, a
participating judicial candidate shall obtain participating
contributions during the participating contribution period in the
amount of $50,000.00 or more.
(3) A payment, gift, or anything of value shall not be given
in exchange for a participating contribution.
Sec. 96. A participating judicial candidate shall submit a
participating contribution and expenditure report to the secretary
of state after the participating contribution period in compliance
with rules promulgated by the secretary of state.
Sec. 97. (1) Upon receipt of a participating contribution and
expenditure report by a participating judicial candidate, the
secretary of state shall determine if the candidate has met all of
the following requirements for certification:
(a) Signed and filed a declaration of intent to participate
under the public campaign funding law.
(b) Collected participating contributions in the amount of
$50,000.00 or more.
(c) Did not accept contributions, except for participating
contributions.
(d) Did not make or cause an expenditure to be made from
private money deposited in his or her candidate committee during
the current election cycle and before filing a declaration of
intent to participate under the funding law.
(e) Was nominated at a political party's fall convention as
provided by section 392 of the Michigan election law, 1954 PA 116,
MCL 168.392, filed a qualifying petition for the office of supreme
court justice in compliance with chapter XXIVA of the Michigan
election law, 1954 PA 116, MCL 168.590 to 168.590h, or is an
incumbent supreme court justice who has filed an affidavit of
candidacy under section 392a of the Michigan election law, 1954 PA
116, MCL 168.392a.
(2) The secretary of state shall certify a participating
judicial candidate who complies with the requirements of this
section as soon as possible and no later than 3 days after the
requirements of subsection (1) are met. The secretary of state
shall notify a candidate who has not complied with the requirements
of this section that he or she is being denied certification and
each reason for that denial as soon as possible and no later than 3
days after the submission of a participating contribution and
expenditure report.
Sec. 98. (1) A certified candidate shall limit the certified
candidate's campaign expenditures and obligations, including
outstanding obligations, to the participating contributions
received during the participating contribution period and the money
distributed to the certified candidate from the fund. A certified
candidate shall not accept a contribution after the conclusion of
the participating contribution period unless specifically
authorized by the secretary of state.
(2) A certified candidate shall use the money under subsection
(1) only for campaign-related purposes permitted by the secretary
of state procedures. The secretary of state shall publish
procedures outlining permissible campaign-related expenditures.
Sec. 99. (1) The secretary of state shall direct the state
treasurer to distribute to certified candidates money in amounts
determined under section 100 within 3 days after certification.
(2) The state treasurer shall distribute money from the fund
to certified candidates under this section by a mechanism that is
expeditious, ensures accountability, and safeguards the integrity
of the fund.
Sec. 100. (1) On or before July 1, 2008, and on or before July
1 of each second year after 2008 in which there is a contested
election for supreme court justice, the secretary of state shall
determine the amount of money to be distributed to each certified
candidate. The amount is the average amount of campaign
expenditures made by the candidates for election to the office of
supreme court justice during contested general election races for
the 2 general elections immediately before the current general
election, as reported in the postelection campaign statements filed
for the general election. Campaign expenditures of candidates not
required to file campaign statements under section 33(6) shall not
be used in calculating the average.
(2) If the 2 election cycles immediately before the current
election cycle do not contain sufficient electoral data, the
secretary of state shall use information from the most recent
relevant elections.
Sec. 101. (1) The secretary of state shall review all of the
following to make the determination required by subsection (2):
(a) Each campaign statement filed by the candidate committee
of a certified candidate.
(b) All independent expenditure reports filed under section 51
that report an independent expenditure advocating the election of
the certified candidate or the defeat of the certified candidate's
opponents.
(c) All documents that show verifiable expenditures for
electioneering communications advocating the election of the
certified candidate or the defeat of the certified candidate's
opponents.
(2) From the documents reviewed under subsection (1), the
secretary of state shall determine whether the amount distributed
to each certified candidate under section 100 is less than the sum
of the following:
(a) The greater of the following:
(i) Total expenditures of the candidate committee of the
certified candidate, including, but not limited to, in-kind
expenditures.
(ii) Total contributions to the candidate committee of the
certified candidate, including, but not limited to, in-kind
contributions.
(b) Total debts and obligations owed by the committee of the
certified candidate.
(c) The total of all independent expenditures advocating the
election of the certified candidate or the defeat of the certified
candidate's opponents.
(d) The total of all expenditures for electioneering
communications advocating the election of the certified candidate
or the defeat of the certified candidate's opponents.
(3) If the secretary of state determines that the amount
distributed under section 100 has been exceeded as described in
subsection (2), the secretary of state shall immediately issue to
each opposing certified candidate an additional amount from the
fund, subject to subsection (6), equal to the excess.
(4) The secretary of state shall review all documents that
show any of the following made after the closing date of the most
recent preelection campaign statement of the candidate committee of
a certified candidate to make the determination under subsection
(5):
(a) A verifiable contribution to the certified candidate.
(b) A verifiable independent expenditure advocating the
election of the certified candidate or the defeat of the certified
candidate's opponents.
(c) A verifiable expenditure for an electioneering
communication advocating the election of the certified candidate or
the defeat of the certified candidate's opponents.
(5) From the documents reviewed under subsection (4), the
secretary of state shall determine whether the total of all
verifiable contributions and expenditures exceeds the total of all
of the following, and if so shall immediately issue to each
opposing certified candidate an additional amount from the fund,
subject to subsection (6), equal to the excess:
(a) Participating contributions to the certified candidate.
(b) Distributions to the certified candidate under section 100
and this section.
(6) An additional amount provided to an opposing certified
candidate under this section shall not exceed 3 times the amount
originally distributed under section 100.
Sec. 103. (1) A certified candidate or participating judicial
candidate shall report each contribution and expenditure,
obligation, and related activity to the secretary of state
according to procedures developed by the secretary of state. Upon
the filing of a final report after the general election, the
candidate shall return unspent money to the secretary of state for
deposit in the fund.
(2) In developing the procedures under subsection (1), the
secretary of state shall utilize existing campaign reporting
procedures, whenever practicable. The secretary of state shall
ensure timely public access to campaign finance data and shall
utilize electronic means of reporting and storing information. The
secretary of state shall develop and make available to a certified
or participating judicial candidate the necessary software for
filing the reports required under the public campaign funding law
by electronic means.
Sec. 105. (1) A candidate who is denied certification as a
certified candidate or the opponent of a candidate who is granted
certification as a certified candidate may challenge a
certification decision by the secretary of state. A challenge shall
be conducted in accordance with the following procedure:
(a) The challenger shall appeal to the secretary of state
within 3 days after the certification decision. The challenger
shall appeal in writing and shall state the reasons for the appeal.
(b) Within 5 days after an appeal is properly made and after
notice is given to the challenger and each opponent, the secretary
of state shall hold a hearing. The challenger has the burden of
providing evidence to demonstrate that the secretary of state's
decision was improper. The secretary of state shall rule on the
appeal within 3 days after the completion of the hearing.
(c) A challenger or candidate may appeal the decision of the
secretary of state under subdivision (b) by commencing an action in
the court of claims.
(d) A candidate whose determination by the secretary of state
as a certified candidate is revoked on appeal shall return to the
secretary of state the unspent money distributed from the fund.
(e) If the secretary of state or court of claims finds that an
appeal was made frivolously or to cause delay or hardship, the
secretary of state or court may require the moving party to pay
costs of the secretary of state, court, and each opposing party, if
any.
(2) The administrative procedures act of 1969, 1969 PA 306,
MCL 24.201 to 24.328, applies to proceedings under this section.
Sec. 107. The secretary of state shall promulgate rules under
the administrative procedures act of 1969, 1969 PA 306, MCL 24.201
to 24.328, to ensure effective administration of the funding law.
The rules shall include, but not be limited to, procedures for all
of the following:
(a) Obtaining participating contributions.
(b) Certification under section 97.
(c) Circumstances involving a special election, vacancy,
recount, withdrawal, or replacement.
(d) Collection of money for the fund.
(e) Distribution of money to a certified candidate.
(f) Return of an unspent fund disbursement.
(g) Compliance with the public campaign funding law.
Sec. 108. (1) A person who violates a provision of the funding
law is subject to a civil fine not to exceed $10,000.00 per
violation. This sanction is recoverable in a civil action. A fine
paid under this section shall be deposited in the fund.
(2) In addition to a fine, for good cause shown, a certified
candidate found in violation of the public campaign funding law may
be required to reimburse the fund for money distributed to the
certified candidate from the fund.
(3) If the secretary of state makes a determination that a
violation of the public campaign funding law has occurred, the
secretary of state shall assess a fine and transmit the finding to
the attorney general for a decision regarding prosecution.
(4) A person who knowingly violates the public campaign
funding law or rules promulgated by the secretary of state or who
knowingly makes a false statement in a report required by the
public campaign funding law is guilty of a misdemeanor punishable,
if the person is an individual, by a fine of not more than
$1,000.00 or imprisonment for not more than 90 days, or both, or,
if the person is not an individual, by a fine of not more than
$10,000.00. If the person described in this subsection is a
certified candidate, that person shall reimburse the fund the money
distributed to the certified candidate.
(5) The penalties and remedies under the public campaign
funding law are cumulative and independent and the use of penalties
or remedies, or both, under the public campaign funding law does
not prohibit the prosecution of, or an action to recover damages
for, conduct proscribed under the public campaign funding law or
another applicable law.
Sec. 109. On or before January 30, 2009, and on or before
January 30 in every second year after 2009, the secretary of state
shall prepare for the committees of both houses of the legislature
with jurisdiction over matters relating to campaigns and elections
a report documenting, evaluating, and making recommendations
relating to the administration, implementation, and enforcement of
the public campaign funding law and the fund.