SENATE BILL NO. 38 January 26, 1999, Introduced by Senator A. SMITH and referred to the Committee on Government Operations. A bill to amend 1976 PA 388, entitled "Michigan campaign finance act," by amending sections 5, 7, 9, 12, 45, 61, 62, 63, 64, 65, 66, 67, and 69 (MCL 169.205, 169.207, 169.209, 169.212, 169.245, 169.261, 169.262, 169.263, 169.264, 169.265, 169.266, 169.267, and 169.269), sections 5 and 12 as amended by 1995 PA 264, section 7 as amended by 1994 PA 385, sections 9, 45, and 69 as amended by 1996 PA 590, sections 61, 64, and 65 as amended by 1993 PA 262, and sections 66 and 67 as amended by 1994 PA 411, and by adding sections 72, 73, 74, 75, 76, 77, 78, and 79. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 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 chapter 576, 48 Stat. 984, 25 U.S.C. 461 to 463, 464 00431'99 KKR 2 1 to 465, 466 to 470, 471 to 472, 473, 474 to 475, 476 to 478, and 2 479, commonly referred to as the Indian reorganization act, or 3 has otherwise been acknowledged by the United States government 4 as an Indian tribe. 5 (2) "Election" means a primary, general, special, or millage 6 election held in this state or a convention or caucus of a polit- 7 ical party held in this state to nominate a candidate. Election 8 includes a recall vote. 9 (3) "Election cycle" means 1 of the following: 10 (a) For a general election, the period beginning the day 11 following the last general election in which the office appeared 12 on the ballot and ending on the day of the general election in 13 which the office next appears on the ballot. 14 (b) For a special election, the period beginning the day a 15 special general election is called or the date the office becomes 16 vacant, whichever is earlier, and ending on the day of the spe- 17 cial general election. 18 (4) "Elective office" means a public office filled by an 19 election, except for federal offices. A person who is appointed 20 to fill a vacancy in a public office that is ordinarily elective 21 holds an elective office. Elective office does not include the 22 office of precinct delegate. Except for the purposes of 23 sections 47, 54, and 55, elective office does not include a 24 school board member in a school district that has a pupil member- 25 ship of 2,400 or less enrolled on the most recent pupil member- 26 ship count day. However, elective office includes a school board 27 member in a school district that has a pupil membership of 2,400 00431'99 3 1 or less, if a candidate committee of a candidate for the office 2 of school board member in that school district receives an amount 3 in excess of $1,000.00 or expends an amount in excess of 4 $1,000.00. 5 (5) "ELIGIBLE CANDIDATE FOR GOVERNOR" MEANS A CANDIDATE FOR 6 THE OFFICE OF GOVERNOR WHO IS ELIGIBLE TO RECEIVE MONEY FROM THE 7 GUBERNATORIAL CAMPAIGN FUND PURSUANT TO THIS ACT. 8 (6) "ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE" MEANS A CAN- 9 DIDATE FOR THE OFFICE OF STATE REPRESENTATIVE OR STATE SENATOR 10 WHO IS ELIGIBLE TO RECEIVE MONEY FROM THE LEGISLATIVE CAMPAIGN 11 FUND PURSUANT TO THIS ACT. 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 this act. 17 (3) "Filing official" means the official designated pursuant 18 to this act to receive required statements and reports. 19 (4) "Fund raising event" means an event such as a dinner, 20 reception, testimonial, rally, auction, bingo, or similar affair 21 through which contributions are solicited or received by purchase 22 of a ticket, payment of an attendance fee, making a donation, 23 purchase of chances for prizes, or purchase of goods or 24 services. 25 (5) "Gift" means a payment, subscription, advance, forbear- 26 ance, rendering, or deposit of money, services, or anything of 00431'99 4 1 value, unless consideration of equal or greater value is given in 2 exchange. 3 (6) "GUBERNATORIAL CAMPAIGN FUND" MEANS THE GUBERNATORIAL 4 CAMPAIGN FUND CREATED BY SECTION 61. 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. 00431'99 5 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. 00431'99 6 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. 19 (3) "In-kind contribution or expenditure" means a contribu- 20 tion or expenditure other than money. 21 (4) "LEGISLATIVE CAMPAIGN FUND" MEANS THE LEGISLATIVE CAM- 22 PAIGN FUND CREATED BY SECTION 72. 23 (5)(4)"Loan" means a transfer of money, property, or 24 anything of ascertainable monetary value in exchange for an obli- 25 gation, conditional or not, to repay in whole or part. 26 (6)(5)"Local elective office" means an elective office 27 at the local unit of government level. Local elective office 00431'99 7 1 also includes judge of the court of appeals, judge of the circuit 2 court, judge of the recorder's court of the city of Detroit, 3 judge of the district court, judge of the probate court, and 4 judge of a municipal court. 5 (7)(6)"Local unit of government" means a district, 6 authority, county, city, village, township, board, school dis- 7 trict, intermediate school district, or community college 8 district. 9 Sec. 12. (1)"Qualifying"QUALIFIED CAMPAIGN EXPENDITURE" 10 MEANS AN EXPENDITURE FOR SERVICES, MATERIALS, FACILITIES, OR 11 OTHER THINGS OF VALUE BY THE CANDIDATE COMMITTEE TO FURTHER THE 12 CANDIDATE'S NOMINATION OR ELECTION TO OFFICE DURING THE YEAR IN 13 WHICH THE PRIMARY, SPECIAL, OR GENERAL ELECTION IN WHICH THE CAN- 14 DIDATE SEEKS NOMINATION OR ELECTION IS HELD. QUALIFIED CAMPAIGN 15 EXPENDITURE DOES NOT INCLUDE: 16 (A) AN EXPENDITURE IN VIOLATION OF ANY LAW OF THE UNITED 17 STATES OR OF THIS STATE. 18 (B) A PAYMENT MADE TO AN ELIGIBLE CANDIDATE FOR GOVERNOR OR 19 AN ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE, TO A RELATIVE 20 WITHIN THE THIRD DEGREE OF CONSANGUINITY OF THE ELIGIBLE CANDI- 21 DATE, OR TO A BUSINESS WITH WHICH THE ELIGIBLE CANDIDATE OR THE 22 RELATIVE IS ASSOCIATED. 23 (C) A PAYMENT TO THE EXTENT CLEARLY IN EXCESS OF THE FAIR 24 MARKET VALUE OF SERVICES, MATERIALS, FACILITIES, OR OTHER THINGS 25 OF VALUE RECEIVED IN EXCHANGE. 26 (D) THAT PORTION OF ANY SALARY OR WAGE TO AN INDIVIDUAL IN 27 EXCESS OF $5,000.00 PER MONTH. 00431'99 8 1 (E) PAYMENT FROM PETTY CASH. 2 (F) GIFTS, EXCEPT BROCHURES, BUTTONS, SIGNS, AND OTHER 3 PRINTED CAMPAIGN MATERIAL. 4 (G) PAYMENT TO A DEFENSE FUND. 5 (2) "QUALIFIED contribution" means a contribution of money 6 made by a written instrument by an individual to the candidate 7 committee of a candidate for the office of governor OR A CANDI- 8 DATE FOR LEGISLATIVE OFFICE that is $100.00 or less and made 9 after April 1 of the year preceding a year in which agovernor10 PERSON is to be elected TO THAT OFFICE. Not more than $100.00 of 11 an individual's total aggregate contribution may be used as a 12qualifyingQUALIFIED contribution in any calendar year. 13QualifyingQUALIFIED contribution does not include a subscrip- 14 tion, loan, advance, deposit of money, in-kind contribution or 15 expenditure, or anything else of value except as prescribed in 16 this act.QualifyingQUALIFIED contribution does not include a 17 contribution by an individual who resides outside of this state. 18 For purposes of this subsection, an individual is considered to 19 reside in this state if he or she is considered a resident of 20 this state under the Michigan election law,Act No. 116 of the21Public Acts of 1954, being sections 168.1 to 168.992 of the22Michigan Compiled Laws1954 PA 116, MCL 168.1 TO 168.992. 23 (3)(2)"Senate political party caucus committee" means an 24 independent committee established by a political party caucus of 25 the state senate under section 24a. 26 (4)(3)"State elective office" means the office of 27 governor, lieutenant governor, secretary of state, attorney 00431'99 9 1 general, justice of the supreme court, member of the state board 2 of education, regent of the university of Michigan, member of the 3 board of trustees of Michigan state university, member of the 4 board of governors of Wayne state university, and member of the 5 state legislature. 6 Sec. 45. (1) A person may transfer any unexpended funds 7 from 1 candidate committee to another candidate committee of that 8 person if the contribution limits prescribed in section 52 or 69 9 for the candidate committee receiving the funds are equal to or 10 greater than the contribution limits for the candidate committee 11 transferring the funds and if the candidate committees are simul- 12 taneously held by the same person. The funds being transferred 13 shall not be considered aqualifyingQUALIFIED contribution 14 regardless of the amount of the individual contribution being 15 transferred. 16 (2) Upon termination of a candidate committee, unexpended 17 funds in the candidate committee that are not eligible for trans- 18 fer to another candidate committee of the person under subsection 19 (1) shall be disbursed as follows: 20 (a) Given to a political party committee. 21 (b) Given to a tax exempt charitable organization, as long 22 as the candidate does not become an officer or director of or 23 receive compensation, either directly or indirectly, from that 24 organization. 25 (c) Returned to the contributors of the funds upon termina- 26 tion of the campaign committee. 00431'99 10 1 (d) If the person was a candidate for the office of state 2 representative, given to a house political party caucus 3 committee. 4 (e) If the person was a candidate for the office of state 5 senator, given to a senate political party caucus committee. 6 (f) Given to an independent committee. 7 (g) Given to a ballot question committee. 8 Sec. 61. (1) ThestateGUBERNATORIAL campaign fund is 9herebycreated. The state treasurer shall administer the 10stateGUBERNATORIAL campaign fund pursuant to thisact11 SECTION AND SECTIONS 62 TO 71. 12 (2) An individual whose tax liability under the income tax 13 act of 1967,Act No. 281 of the Public Acts of 1967, as amended,14being sections 206.1 to 206.532 of the Michigan Compiled Laws15 1967 PA 281, MCL 206.1 TO 206.532, for a taxable year is $3.00 or 16 more may designate that $3.00 be credited to thestate17 GUBERNATORIAL campaign fund. In the case of a joint return of 18 husband and wife having an income tax liability of $6.00 or more, 19 each spouse may designate that $3.00 be credited to thestate20 GUBERNATORIAL campaign fund. 21 (3) The tax designation authorized in this section shall be 22 clearly and unambiguously printed on the first page of the state 23 individual income tax return. 24 (4) An amount equal to the cumulative amounts designated 25 under subsection (2) each year shall be appropriated annually 26 from the general fund of the state to thestateGUBERNATORIAL 27 campaign fund.toTHE AMOUNTS APPROPRIATED TO THE GUBERNATORIAL 00431'99 11 1 CAMPAIGN FUND UNDER THIS SUBSECTION SHALL be available beginning 2 January 1 and continuing through December 31 of each year in 3 which a governor is elected.TheEXCEPT AS OTHERWISE PROVIDED 4 IN THIS SUBSECTION, THE amounts appropriated under this section 5 shall not revert to the general fund but shall remain available 6 to thestateGUBERNATORIAL campaign fund for distribution with- 7 out fiscal year limitation.except that anyANY amounts remain- 8 ing in thestateGUBERNATORIAL campaign fund in excess of 9 $10,000,000.00 on December 31 immediately following a gubernato- 10 rial general election shall revert to the general fund. 11 (5) Before the distribution of funds under this act to 12qualifyingELIGIBLE primary election candidates FOR GOVERNOR, 13 the state treasurer shall set aside sufficient funds from the 14stateGUBERNATORIAL campaign fund to fully implement the for- 15 mula for distributing funds toqualifyingELIGIBLE general 16 election candidates FOR GOVERNOR. If insufficient funds exist in 17 thestateGUBERNATORIAL campaign fund to provide full funding 18 to eligible primary election candidates FOR GOVERNOR, the 19 GUBERNATORIAL campaign funds shall be distributed tothose20 ELIGIBLE PRIMARY ELECTION candidates FOR GOVERNOR on a pro rata 21 basis. 22 Sec. 62. (1) Only a candidate FOR THE OFFICE OF GOVERNOR 23 who established a single candidate committeewhichTHAT submit- 24 ted a statement of organization according to procedures estab- 25 lished bylawTHIS ACT may receivemoneysMONEY under this 26 act.MoneysMONEY received byaAN ELIGIBLE candidate FOR 27 GOVERNOR pursuant tothis actSECTION 63 shall be spent only 00431'99 12 1 through the candidate committee and shall be reported by the 2 candidate committee according to procedures established bylaw3 THIS ACT. 4 (2) If a candidate FOR THE OFFICE OF GOVERNOR desires to 5 receivemoneysMONEY from thestateGUBERNATORIAL campaign 6 fund, the candidate shall file a statement of organization indi- 7 cating the intent to seekqualifyingQUALIFIED contributions 8orAND to makequalifyingQUALIFIED CAMPAIGN expenditures. 9 Contributions received or expenditures made before the filing of 10 a statement of organization for the office of governor shall not 11 be considered as aqualifyingQUALIFIED contribution OR QUALI- 12 FIED CAMPAIGN EXPENDITURE. 13 (3) A candidate FOR THE OFFICE OF GOVERNOR who does not 14 apply formoneysMONEY from thestateGUBERNATORIAL campaign 15 fund is not subject to sections 61 to 71. 16 Sec. 63. (1) The secretary of state shall receive and keep 17 a record ofeach candidate'sTHE certified statements of 18qualifyingQUALIFIED contributions OF EACH ELIGIBLE CANDIDATE 19 FOR GOVERNOR. A statement shall include in alphabetical order 20 the full name and street address of each person from whom a 21qualifyingQUALIFIED contribution is received during the 22 reporting period, together with the amount of each contribution 23 and the date received by the treasurer of the committee. 24 (2) The secretary of state shall promptly notify a candidate 25 fornomination forTHE OFFICE OF governor when that candidate 26qualifiesIS ELIGIBLE under this act to receivemoneysMONEY 27 from thestateGUBERNATORIAL campaign fund. 00431'99 13 1 (3) If a candidate FOR THE OFFICE OF GOVERNOR desires to 2 receivemoneysMONEY from thestateGUBERNATORIAL campaign 3 fund and HAS received notice ofqualificationELIGIBILITY for 4 funding under subsection (2), the ELIGIBLE candidate FOR GOVERNOR 5 shall apply to the secretary of state. The ELIGIBLE candidate 6 FOR GOVERNOR shall state the amount ofmoneysMONEY desired 7 from thestateGUBERNATORIAL campaign fund in the application. 8 The ELIGIBLE candidate FOR GOVERNOR shall state in the applica- 9 tion forstateGUBERNATORIAL campaign fund money that the 10 ELIGIBLE candidate FOR GOVERNOR and the candidate's committee 11 agree to adhere to expenditure limitations stated in section 67. 12 (4) The secretary of state shall determine the maximum 13 amount for which the ELIGIBLE candidate FOR GOVERNOR qualifies 14 under thisactSECTION AND SECTIONS 64 AND 65. The secretary 15 of state shall forward information as to this amount and the 16 application for funding to the state treasurer. 17 (5) The state treasurer shall issue a warrant drawn on the 18stateGUBERNATORIAL campaign fund for an amount equal to the 19 maximum amountwhichTHAT the candidate FOR GOVERNOR is 20qualifiedELIGIBLE to receive or the amount applied for, which- 21 ever is less. The warrant shall not be issued before January 1 22 of the year in which the GENERAL election for governor is to be 23 held. 24 Sec. 64. (1)AAN ELIGIBLE candidate FOR GOVERNOR in a 25 primary election may obtain funds from thestateGUBERNATORIAL 26 campaign fund in an amount equal to $2.00 for each $1.00 of 27qualifyingQUALIFIED contribution if the ELIGIBLE candidate FOR 00431'99 14 1 GOVERNOR certifies to the secretary of state both of the 2 following: 3 (a) That the candidate committee of the ELIGIBLE candidate 4 FOR GOVERNOR received $75,000.00 or more ofqualifying5 QUALIFIED contributions. 6 (b) That the full name and address of each person making a 7qualifyingQUALIFIED contribution is recorded by the candidate 8 committee of the ELIGIBLE candidatecertifyingFOR GOVERNOR 9 MAKING THE CERTIFICATION. This requirement is in addition to and 10 not in lieu of any other requirements relating to the recording 11 and reporting of contributions. 12 (2) A candidate FOR THE OFFICE OF GOVERNOR is not entitled 13 to funds from thestateGUBERNATORIAL campaign fund for a pri- 14 mary election if it is determined the name of the candidate FOR 15 THE OFFICE OF GOVERNOR is ineligible to appear on the primary 16 election ballot pursuant to section 53 of the Michigan election 17 law,Act No. 116 of the Public Acts of 1954, as amended, being18section 168.53 of the Michigan Compiled Laws1954 PA 116, MCL 19 168.53. A candidate who does not file nominating petitions for 20 the office of governor or who files an insufficient petition for 21 that office shall return all funds received from thestate22 GUBERNATORIAL campaign fund for that primary election. 23 (3) A candidate FOR THE OFFICE OF GOVERNOR shall not receive 24 from thestateGUBERNATORIAL campaign fund for a primary more 25 than $990,000.00. 26 (4) For purposes of this section, primary election is the 27 election described in section 52 ofAct No. 116 of the Public00431'99 15 1Acts of 1954, as amended, being section 168.52 of the Michigan2Compiled LawsTHE MICHIGAN ELECTION LAW, 1954 PA 116, MCL 3 168.52. 4 Sec. 65. (1) A major political party nominee FOR THE OFFICE 5 OF GOVERNOR is entitled to an amount from thestate6 GUBERNATORIAL campaign fund of not more than $1,125,000.00 for a 7 general election. A candidate FOR THE OFFICE OF GOVERNOR, 8 subject tolawTHIS ACT, may raise the remaining amount of the 9 permissible expenditure limit in private contributions. An eli- 10 gible candidate FOR GOVERNOR in a general election may elect to 11 accept partial payment of money from thestateGUBERNATORIAL 12 campaign fund and instead raise private contributions as provided 13 bylawTHIS ACT that, when added to the amount received from 14 thestateGUBERNATORIAL campaign fund, do not exceed the expen- 15 diture limit designated in section 67. 16 (2) A minor political party nominee FOR THE OFFICE OF 17 GOVERNOR whose party received 5% or more of the vote for the same 18 office in the last election is entitled to an amount from the 19stateGUBERNATORIAL campaign fund of not more than 20 $1,125,000.00, multiplied by the number of popular votes the 21 minor party received in the preceding general election for gover- 22 nor and then divided by the average number of votes the major 23 parties received in that general election for governor. 24 (3) A minor political party nominee FOR THE OFFICE OF 25 GOVERNOR not eligible under subsection (2) but who receives more 26 than 5% of the vote in that general election for governor is 27 entitled to reimbursement from thestateGUBERNATORIAL campaign 00431'99 16 1 fund in an amount of not more than $1,125,000.00, multiplied by 2 the number of popular votes the minor party received in the pre- 3 ceding general election for governor and then divided by the 4 average number of votes the major parties received in that gen- 5 eral election for governor. 6 (4) A minor political party nominee FOR THE OFFICE OF 7 GOVERNOR qualified under subsection (2) who receives more popular 8 votes in an election than the candidate of that minor political 9 party received at the preceding GENERAL election is entitled to 10 additional reimbursement from thestateGUBERNATORIAL campaign 11 fund in an amount determined as follows: 12 (a) Compute the amount that the candidate FOR THE OFFICE OF 13 GOVERNOR would have received under subsection (3) had the candi- 14 date otherwise qualified. 15 (b) Subtract the amount received under subsection (2) from 16 the amount computed under subdivision (a). 17 (5)AAN ELIGIBLE candidate FOR GOVERNOR listed on the 18 ballot in the general election is entitled to $1.00 for each 19 $1.00 ofqualifyingQUALIFIED contributions certified to the 20 secretary of state pursuant to this act up to $750,000.00, if the 21 candidate has certified to the secretary of state $75,000.00 or 22 more inqualifyingQUALIFIED contributions.AAN ELIGIBLE 23 candidate FOR GOVERNOR who chooses to receiveanypublic funds 24 under this subsection shall not receive any money under subsec- 25 tion (1), (2), (3), or (4). 26 (6) A major political party nominee FOR THE OFFICE OF 27 GOVERNOR shall receive from the state treasurer $56,250.00 of the 00431'99 17 1 funds that the ELIGIBLE candidate FOR GOVERNOR may be entitled to 2 under this section not later than 10 days after the primary elec- 3 tion, unless there is less than a 2% difference in vote totals of 4 the top 2 primary election candidates of the same political party 5 according to unofficial vote totals available to the secretary of 6 state. The balance of any funds owed to a major political party 7 nominee FOR THE OFFICE OF GOVERNOR under this section shall be 8 payable by the state treasurer within 3 days after the board of 9 state canvassers' certification of the primary election results, 10 but not later than 30 days after the primary election. Any funds 11 paid to a major political party nominee FOR THE OFFICE OF 12 GOVERNOR under this section either erroneously or based on elec- 13 tion results that are reversed due to a recount or fraud shall be 14 repaid by that major political party nominee FOR THE OFFICE OF 15 GOVERNOR to the state treasurer within 60 days of receipt of 16 notification by certified mail from the state treasurer. 17 Sec. 66. (1)AAN ELIGIBLE candidate FOR GOVERNOR may 18 only apply the funds received under this act from thestate19 GUBERNATORIAL campaign fund against qualified campaign 20 expenditures. 21(2) As used in this section, "qualified campaign22expenditure" means an expenditure for services, materials, facil-23ities, or other things of value by the candidate committee to24further the candidate's nomination or election to office during25the year in which the primary or general election in which the26candidate seeks nomination or election is held. Qualified27campaign expenditure does not include any of the following:00431'99 18 1(a) An expenditure in violation of any law of the United2States or of this state.3(b) A payment made to the candidate or a relative within the4third degree of consanguinity of the candidate, or to a business5with which the candidate or the relative is associated.6(c) A payment to the extent clearly in excess of the fair7market value of services, materials, facilities, or other things8of value received in exchange.9(d) That portion of any salary or wage to an individual in10excess of $5,000.00 per month.11(e) Payment from petty cash.12(f) Gifts, except brochures, buttons, signs, and other13printed campaign material.14(g) Payment to a defense fund.15(h) An expenditure by a candidate committee for an inciden-16tal expense under section 21a.17 (2)(3) AAN ELIGIBLE candidate FOR GOVERNOR shall keep 18 the funds received under this act from thestateGUBERNATORIAL 19 campaign fund in a separate account. Thecandidate'squalified 20 CAMPAIGN expenditures OF THE ELIGIBLE CANDIDATE FOR GOVERNOR may 21 be paid from the separate account unless the account does not 22 have a balance. An unexpended balance in the separate account 23 shall be refunded and credited to the general fund within 60 days 24 after the election for which the funds were received.Payment25 MONEY received from thestateGUBERNATORIAL campaign fund for 26 expenditures in 1 election shall not be used for expenditures in 27 a subsequent election. 00431'99 19 1 (3)(4)A person who knowingly violates this section is 2 guilty of a felony punishable, if the person is an individual, by 3 a fine of not more than $2,000.00, or imprisonment for not more 4 than 3 years, or both, or, if the person not an individual, by a 5 fine of not more than $10,000.00. 6 Sec. 67. (1) Expenditures made by a candidate committee to 7 further the nomination or election ofaAN ELIGIBLE candidate 8mayFOR GOVERNOR SHALL not exceed $2,000,000.00 in the aggre- 9 gate for 1 election. An expenditure by a candidate committee for 10 an incidental expense under section 21a is not considered an 11 expenditure for the purposes of the expenditure limitations set 12 forth in this subsection. 13 (2) An expenditure by a candidate committee to purchase 14 space in a newspaper or other periodical or time on radio or 15 television for the purpose of responding to an editorial in the 16 same newspaper or periodical or on the same station or channel 17 that was unfavorable to the committee's candidate FOR THE OFFICE 18 OF GOVERNOR or that endorsed the candidate's opponent is not con- 19 sidered an expenditure for the purposes of the expenditure limi- 20 tations set forth in subsection (1). This subsection only 21 applies to 1 response made to a particular editorial, unfavorable 22 report, or endorsement of an opponent and does not apply unless 23 the candidate is refused free space or time in which to answer. 24 (3) A person who knowingly violates subsection (1) is guilty 25 of a misdemeanor punishable by a fine of not more than $1,000.00, 26 or imprisonment for not more than 90 days, or both. 00431'99 20 1 (4) If a personwho issubject to this section is found 2 guilty OF VIOLATING THIS SECTION, the circuit court, on 3 application by the attorney general, may prohibit that person 4 from assuming the duties of a public office or from receiving 5 compensation from public funds, or both. 6 Sec. 69. (1) Except as provided in subsection (6), a person 7 other than an independent committee or a political party commit- 8 tee shall not make contributions to a candidate committee of a 9 candidate that are more than $3,400.00 in value for an election 10 cycle. 11 (2) An independent committee shall not make contributions to 12 a candidate committee that for an election cycle are more than 10 13 times the amount permitted a person other than an independent 14 committee or political party committee in subsection (1). 15 (3) A political party committee that is a state central com- 16 mittee shall not make contributions to a candidate committee that 17 for an election cycle are more than $750,000.00. 18 (4) A political party committee that is a congressional dis- 19 trict or county committee shall not make contributions to a can- 20 didate committee that for an election cycle are more than 21 $30,000.00. 22 (5) A candidate committee, a candidate, or a treasurer or 23 agent shall not accept a contribution with respect to an election 24 cycle that exceeds a limitation in subsections (1) to (4). 25 (6) As used in this subsection, "immediate family" means a 26 spouse, parent, brother, sister, son, or daughter. A candidate 27 and members of that candidate's immediate family may not 00431'99 21 1 contribute in total to that person's candidate committee an 2 amount that is more than $50,000.00 in value for an election 3 cycle. 4 (7) Sections 5(3) and 52(6) apply to determining when an 5 election cycle begins and ends and to which election cycle a par- 6 ticular contribution is attributed. 7 (8) The candidate committee of a candidate for governor that 8 does not apply for funds from thestateGUBERNATORIAL campaign 9 fund and that accepts from the candidate and the candidate's 10 immediate family contributions that total for an election cycle 11 more than $340,000.00 shall notify the secretary of state in 12 writing within 48 hours after receipt of this amount. Within 13 2 business days after receipt of this notice, the secretary of 14 state shall send notice to all candidates who are either seeking 15 the same nomination, in the case of a primary election, or elec- 16 tion to that same office, in the case of a general election, 17 informing those candidate committees of all of the following: 18 (a) That the expenditure limits provided in section 67 are 19 waived for the remainder of that election for those notified can- 20 didate committees that receive funds from thestate21 GUBERNATORIAL campaign fund under this act. 22 (b) That the expenditure limits of section 67 are not waived 23 for the purpose of determining the amount of public funds avail- 24 able to a candidate under section 64 or 65. 25 (9) A person who knowingly violates this section is guilty 26 of a misdemeanor punishable, if the person is an individual, by a 27 fine of not more than $1,000.00 or imprisonment for not more than 00431'99 22 1 90 days, or both, or, if the person is not an individual, by a 2 fine of not more than $10,000.00. 3 SEC. 72. (1) THE LEGISLATIVE CAMPAIGN FUND IS CREATED. THE 4 STATE TREASURER SHALL ADMINISTER THE LEGISLATIVE CAMPAIGN FUND 5 PURSUANT TO THIS SECTION AND SECTIONS 73 TO 79. MONEY IN THE 6 LEGISLATIVE CAMPAIGN FUND SHALL NOT REVERT TO THE GENERAL FUND AT 7 THE CLOSE OF THE FISCAL YEAR BUT SHALL REMAIN IN THE FUND. THE 8 LEGISLATURE SHALL DETERMINE THE SOURCE OF MONEY TO FUND THE LEG- 9 ISLATIVE CAMPAIGN FUND. 10 (2) IF INSUFFICIENT FUNDS EXIST IN THE LEGISLATIVE CAMPAIGN 11 FUND TO PROVIDE FULL FUNDING TO ELIGIBLE CANDIDATES FOR LEGISLA- 12 TIVE OFFICE, THE STATE TREASURER SHALL DISTRIBUTE LEGISLATIVE 13 CAMPAIGN FUND MONEY TO ELIGIBLE CANDIDATES FOR LEGISLATIVE OFFICE 14 ON A PRO RATA BASIS. 15 SEC. 73. (1) ONLY A CANDIDATE FOR LEGISLATIVE OFFICE WHO 16 ESTABLISHES A SINGLE CANDIDATE COMMITTEE THAT SUBMITS A STATEMENT 17 OF ORGANIZATION ACCORDING TO PROCEDURES ESTABLISHED BY THIS ACT 18 MAY RECEIVE LEGISLATIVE CAMPAIGN FUND MONEY UNDER THIS ACT. AN 19 ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE WHO RECEIVES LEGISLA- 20 TIVE CAMPAIGN FUND MONEY UNDER SECTION 74 SHALL SPEND THE MONEY 21 ONLY THROUGH THE CANDIDATE COMMITTEE AND SHALL REPORT THE EXPEN- 22 DITURES ACCORDING TO PROCEDURES ESTABLISHED BY THIS ACT. 23 (2) IF A CANDIDATE FOR LEGISLATIVE OFFICE DESIRES TO RECEIVE 24 MONEY FROM THE LEGISLATIVE CAMPAIGN FUND, THE CANDIDATE SHALL 25 FILE A STATEMENT OF ORGANIZATION INDICATING THE INTENT TO SEEK 26 QUALIFIED CONTRIBUTIONS OR TO MAKE QUALIFIED CAMPAIGN 27 EXPENDITURES. A CONTRIBUTION RECEIVED OR EXPENDITURE MADE BEFORE 00431'99 23 1 THE FILING OF A STATEMENT OF ORGANIZATION FOR THE LEGISLATIVE 2 OFFICE BEING SOUGHT SHALL NOT BE CONSIDERED A QUALIFIED CONTRIBU- 3 TION OR QUALIFIED CAMPAIGN EXPENDITURE UNDER THIS ACT. 4 (3) A CANDIDATE FOR LEGISLATIVE OFFICE WHO DOES NOT APPLY 5 FOR MONEY FROM THE LEGISLATIVE CAMPAIGN FUND IS NOT SUBJECT TO 6 SECTIONS 72 TO 79. 7 SEC. 74. (1) THE SECRETARY OF STATE SHALL RECEIVE AND KEEP 8 A RECORD OF THE CERTIFIED STATEMENTS OF QUALIFIED CONTRIBUTIONS 9 OF EACH ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE REQUIRED UNDER 10 SECTION 75. AN ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE SHALL 11 INCLUDE IN THE STATEMENT, IN ALPHABETICAL ORDER, THE FULL NAME 12 AND STREET ADDRESS OF EACH PERSON FROM WHOM A QUALIFIED CONTRIBU- 13 TION IS RECEIVED DURING THE REPORTING PERIOD, TOGETHER WITH THE 14 AMOUNT OF EACH CONTRIBUTION AND THE DATE RECEIVED BY THE TREA- 15 SURER OF THE CANDIDATE COMMITTEE. 16 (2) THE SECRETARY OF STATE SHALL PROMPTLY NOTIFY A CANDIDATE 17 FOR LEGISLATIVE OFFICE WHEN THAT CANDIDATE IS ELIGIBLE UNDER THIS 18 ACT TO RECEIVE MONEY FROM THE LEGISLATIVE CAMPAIGN FUND. 19 (3) IF A CANDIDATE FOR LEGISLATIVE OFFICE DESIRES TO RECEIVE 20 MONEY FROM THE LEGISLATIVE CAMPAIGN FUND AND HAS RECEIVED NOTICE 21 OF ELIGIBILITY FOR FUNDING UNDER SUBSECTION (2), THE ELIGIBLE 22 CANDIDATE FOR LEGISLATIVE OFFICE SHALL APPLY TO THE SECRETARY OF 23 STATE. THE ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE SHALL STATE 24 THE AMOUNT OF MONEY DESIRED FROM THE LEGISLATIVE CAMPAIGN FUND IN 25 THE APPLICATION. THE ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE 26 SHALL STATE IN THE APPLICATION FOR LEGISLATIVE CAMPAIGN FUND 27 MONEY THAT THE ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE AND THE 00431'99 24 1 CANDIDATE'S COMMITTEE AGREE TO ADHERE TO THE EXPENDITURE 2 LIMITATIONS DESIGNATED IN SECTION 78. 3 (4) THE SECRETARY OF STATE SHALL DETERMINE THE MAXIMUM 4 AMOUNT FOR WHICH THE ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE 5 QUALIFIES UNDER THIS SECTION AND SECTION 75. THE SECRETARY OF 6 STATE SHALL FORWARD INFORMATION AS TO THIS AMOUNT AND THE APPLI- 7 CATION FOR FUNDING TO THE STATE TREASURER. 8 (5) THE STATE TREASURER SHALL ISSUE A WARRANT DRAWN ON THE 9 LEGISLATIVE CAMPAIGN FUND FOR AN AMOUNT EQUAL TO THE MAXIMUM 10 AMOUNT THAT THE CANDIDATE FOR LEGISLATIVE OFFICE IS ELIGIBLE TO 11 RECEIVE OR THE AMOUNT APPLIED FOR, WHICHEVER IS LESS. FOR A CAN- 12 DIDATE FOR STATE REPRESENTATIVE, THE WARRANT SHALL NOT BE ISSUED 13 BEFORE JANUARY 1 OF THE YEAR IN WHICH THE GENERAL NOVEMBER ELEC- 14 TION IS TO BE HELD. FOR A CANDIDATE FOR STATE SENATOR, THE WAR- 15 RANT SHALL NOT BE ISSUED BEFORE JANUARY 1 OF THE YEAR IN WHICH 16 SENATORS ARE ELECTED IN A GENERAL NOVEMBER ELECTION. 17 SEC. 75. (1) AN ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE 18 IN AN ELECTION CYCLE MAY OBTAIN FUNDS FROM THE LEGISLATIVE CAM- 19 PAIGN FUND IN AN AMOUNT EQUAL TO $2.00 FOR EACH $1.00 OF QUALI- 20 FIED CONTRIBUTION, IF THE ELIGIBLE CANDIDATE FOR LEGISLATIVE 21 OFFICE CERTIFIES TO THE SECRETARY OF STATE BOTH OF THE 22 FOLLOWING: 23 (A) THAT THE CANDIDATE COMMITTEE OF THE ELIGIBLE CANDIDATE 24 FOR STATE REPRESENTATIVE RECEIVED $3,000.00 OR MORE OF QUALIFIED 25 CONTRIBUTIONS OR THAT THE CANDIDATE COMMITTEE OF THE ELIGIBLE 26 CANDIDATE FOR SENATE RECEIVED $7,500.00 OR MORE OF QUALIFIED 27 CONTRIBUTIONS. 00431'99 25 1 (B) THAT THE FULL NAME AND ADDRESS OF EACH PERSON MAKING A 2 QUALIFIED CONTRIBUTION IS RECORDED BY THE CANDIDATE COMMITTEE OF 3 THE ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE MAKING THE 4 CERTIFICATION. THIS REQUIREMENT IS IN ADDITION TO AND NOT IN 5 LIEU OF ANY OTHER REQUIREMENTS RELATING TO THE RECORDING AND 6 REPORTING OF CONTRIBUTIONS. 7 (2) A CANDIDATE FOR LEGISLATIVE OFFICE IS NOT ENTITLED TO 8 FUNDS FROM THE LEGISLATIVE CAMPAIGN FUND FOR AN ELECTION CYCLE IF 9 IT IS DETERMINED THE NAME OF THE CANDIDATE FOR LEGISLATIVE OFFICE 10 IS INELIGIBLE TO APPEAR ON THE PRIMARY ELECTION BALLOT PURSUANT 11 TO SECTION 163 OF THE MICHIGAN ELECTION LAW, 1954 PA 116, MCL 12 168.163. A CANDIDATE WHO DOES NOT FILE NOMINATING PETITIONS FOR 13 THE LEGISLATIVE OFFICE BEING SOUGHT OR WHO FILES AN INSUFFICIENT 14 PETITION FOR THAT OFFICE SHALL RETURN TO THE LEGISLATIVE CAMPAIGN 15 FUND ALL MONEY RECEIVED FROM THE LEGISLATIVE CAMPAIGN FUND FOR 16 THAT ELECTION CYCLE. 17 (3) A CANDIDATE FOR THE OFFICE OF STATE REPRESENTATIVE SHALL 18 NOT RECEIVE MORE THAN $36,000.00 FROM THE LEGISLATIVE CAMPAIGN 19 FUND FOR 1 ELECTION CYCLE. A CANDIDATE FOR THE OFFICE OF STATE 20 SENATOR SHALL NOT RECEIVE MORE THAN $90,000.00 FROM THE LEGISLA- 21 TIVE CAMPAIGN FUND FOR 1 ELECTION CYCLE. 22 (4) AN ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE MAY ELECT 23 TO ACCEPT PARTIAL PAYMENT OF MONEY FROM THE LEGISLATIVE CAMPAIGN 24 FUND AND INSTEAD RAISE PRIVATE CONTRIBUTIONS AS PROVIDED BY THIS 25 ACT THAT, WHEN ADDED TO THE AMOUNT RECEIVED FROM THE LEGISLATIVE 26 CAMPAIGN FUND, DO NOT EXCEED THE EXPENDITURE LIMIT DESIGNATED IN 27 SECTION 78. 00431'99 26 1 (5) AN ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE SHALL 2 RECEIVE FROM THE STATE TREASURER THE BALANCE OF ANY LEGISLATIVE 3 CAMPAIGN FUND MONEY THAT THE ELIGIBLE CANDIDATE FOR LEGISLATIVE 4 OFFICE MAY BE ENTITLED TO UNDER THIS SECTION NOT LATER THAN 10 5 DAYS AFTER THE PRIMARY ELECTION, UNLESS THERE IS LESS THAN A 2% 6 DIFFERENCE IN VOTE TOTALS OF THE TOP 2 PRIMARY ELECTION CANDI- 7 DATES OF THE SAME POLITICAL PARTY FOR THE SAME OFFICE ACCORDING 8 TO UNOFFICIAL VOTE TOTALS AVAILABLE TO THE SECRETARY OF STATE. 9 THE BALANCE OF ANY LEGISLATIVE CAMPAIGN FUND MONEY OWED TO AN 10 ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE UNDER THIS SECTION 11 SHALL BE PAYABLE BY THE STATE TREASURER WITHIN 3 DAYS AFTER THE 12 BOARD OF STATE CANVASSERS' CERTIFICATION OF THE PRIMARY ELECTION 13 RESULTS, BUT NOT LATER THAN 30 DAYS AFTER THE PRIMARY ELECTION. 14 ANY FUNDS PAID TO A CANDIDATE FOR LEGISLATIVE OFFICE UNDER THIS 15 SECTION EITHER ERRONEOUSLY OR BASED UPON ELECTION RESULTS THAT 16 ARE REVERSED DUE TO A RECOUNT OR FRAUD SHALL BE REPAID BY THAT 17 CANDIDATE FOR LEGISLATIVE OFFICE TO THE LEGISLATIVE CAMPAIGN FUND 18 WITHIN 60 DAYS OF RECEIPT OF NOTIFICATION BY CERTIFIED MAIL FROM 19 THE STATE TREASURER. 20 SEC. 76. (1) NOTWITHSTANDING ANY OTHER SECTION OF THIS ACT, 21 AN ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE MAY MAKE EXPENDI- 22 TURES THAT EXCEED THE EXPENDITURE LIMITATIONS DESIGNATED IN 23 SECTION 78 IF THE ELIGIBLE CANDIDATE'S OPPONENT IN AN ELECTION 24 DOES NOT ACCEPT LEGISLATIVE CAMPAIGN FUND MONEY UNDER THIS ACT. 25 THE STATE TREASURER, IN THE MANNER PROVIDED IN THIS ACT, SHALL 26 PAY TO AN ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE WHO IS EXEMPT 27 FROM THE EXPENDITURE LIMITATIONS PURSUANT TO THIS SECTION, ALL 00431'99 27 1 LEGISLATIVE CAMPAIGN FUND MONEY THE ELIGIBLE CANDIDATE IS 2 ENTITLED TO UNDER THIS ACT. 3 (2) AN ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE WHO IS 4 EXEMPT FROM THE EXPENDITURE LIMITATIONS PURSUANT TO THIS SECTION 5 SHALL OTHERWISE COMPLY WITH THE REQUIREMENTS OF THIS ACT REGARD- 6 ING THE EXPENDITURE AND REPORTING OF LEGISLATIVE CAMPAIGN FUND 7 MONEY. 8 SEC. 77. (1) AN ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE 9 SHALL ONLY APPLY THE LEGISLATIVE CAMPAIGN FUND MONEY RECEIVED 10 UNDER THIS ACT AGAINST QUALIFIED CAMPAIGN EXPENDITURES. 11 (2) AN ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE SHALL KEEP 12 LEGISLATIVE CAMPAIGN FUND MONEY RECEIVED UNDER THIS ACT IN A SEP- 13 ARATE ACCOUNT AND SHALL MAKE QUALIFIED CAMPAIGN EXPENDITURES FROM 14 THIS ACCOUNT UNLESS THE ACCOUNT DOES NOT HAVE A BALANCE. AN ELI- 15 GIBLE CANDIDATE FOR LEGISLATIVE OFFICE SHALL REFUND UNEXPENDED 16 LEGISLATIVE CAMPAIGN FUND MONEY REMAINING IN THIS ACCOUNT TO THE 17 LEGISLATIVE CAMPAIGN FUND WITHIN 60 DAYS AFTER THE GENERAL ELEC- 18 TION IF THE NAME OF THE ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE 19 APPEARS ON THE GENERAL ELECTION BALLOT OR WITHIN 60 DAYS AFTER 20 THE PRIMARY ELECTION IF THE NAME OF THE ELIGIBLE CANDIDATE FOR 21 LEGISLATIVE OFFICE WILL NOT APPEAR ON THE GENERAL ELECTION 22 BALLOT. AN ELIGIBLE CANDIDATE FOR LEGISLATIVE OFFICE SHALL NOT 23 USE MONEY RECEIVED FROM THE LEGISLATIVE CAMPAIGN FUND FOR EXPEN- 24 DITURES IN AN ELECTION CYCLE FOR EXPENDITURES IN A SUBSEQUENT 25 ELECTION CYCLE. 26 (3) A PERSON WHO KNOWINGLY VIOLATES THIS SECTION IS GUILTY 27 OF A FELONY PUNISHABLE, IF THE PERSON IS AN INDIVIDUAL, BY A FINE 00431'99 28 1 OF NOT MORE THAN $2,000.00 OR IMPRISONMENT FOR NOT MORE THAN 3 2 YEARS, OR BOTH, OR, IF THE PERSON IS NOT AN INDIVIDUAL, BY A FINE 3 OF NOT MORE THAN $10,000.00. 4 SEC. 78. (1) A CANDIDATE COMMITTEE OF AN ELIGIBLE CANDIDATE 5 FOR STATE REPRESENTATIVE SHALL NOT MAKE EXPENDITURES TO FURTHER 6 THE NOMINATION OR ELECTION OF THE ELIGIBLE CANDIDATE FOR STATE 7 REPRESENTATIVE THAT EXCEED $54,000.00 IN THE AGGREGATE FOR AN 8 ELECTION CYCLE. A CANDIDATE COMMITTEE OF AN ELIGIBLE CANDIDATE 9 FOR STATE SENATOR SHALL NOT MAKE EXPENDITURES TO FURTHER THE NOM- 10 INATION OR ELECTION OF THE ELIGIBLE CANDIDATE FOR STATE SENATOR 11 THAT EXCEED $135,000.00 IN THE AGGREGATE FOR AN ELECTION CYCLE. 12 (2) AN EXPENDITURE BY A CANDIDATE COMMITTEE TO PURCHASE 13 SPACE IN A NEWSPAPER OR OTHER PERIODICAL OR TIME ON RADIO OR 14 TELEVISION FOR THE PURPOSE OF RESPONDING TO AN EDITORIAL IN THE 15 SAME NEWSPAPER OR PERIODICAL OR ON THE SAME STATION OR CHANNEL 16 THAT WAS UNFAVORABLE TO THE COMMITTEE'S CANDIDATE FOR LEGISLATIVE 17 OFFICE OR THAT ENDORSED THE CANDIDATE'S OPPONENT IS NOT CONSID- 18 ERED AN EXPENDITURE FOR THE PURPOSES OF THE EXPENDITURE LIMITA- 19 TIONS SET FORTH IN SUBSECTION (1). THIS SUBSECTION ONLY APPLIES 20 TO 1 RESPONSE MADE TO A PARTICULAR EDITORIAL, UNFAVORABLE REPORT, 21 OR ENDORSEMENT OF AN OPPONENT AND DOES NOT APPLY UNLESS THE CAN- 22 DIDATE IS REFUSED FREE SPACE OR TIME IN WHICH TO ANSWER. 23 (3) A PERSON WHO KNOWINGLY VIOLATES SUBSECTION (1) IS GUILTY 24 OF A MISDEMEANOR PUNISHABLE BY A FINE OF NOT MORE THAN $1,000.00, 25 OR IMPRISONMENT FOR NOT MORE THAN 90 DAYS, OR BOTH. 26 (4) IF A PERSON SUBJECT TO THIS SECTION IS FOUND GUILTY OF 27 VIOLATING THIS SECTION, THE CIRCUIT COURT OF THAT COUNTY, ON 00431'99 29 1 APPLICATION BY THE ATTORNEY GENERAL, MAY PROHIBIT THAT PERSON 2 FROM ASSUMING THE DUTIES OF A PUBLIC OFFICE OR FROM RECEIVING 3 COMPENSATION FROM PUBLIC FUNDS, OR BOTH. 4 SEC. 79. (1) A PERSON SHALL NOT INCUR A DEBT FOR GOODS, 5 SERVICES, MATERIALS, FACILITIES, OR ANYTHING OF VALUE IN FURTHER- 6 ANCE OF, OR IN OPPOSITION TO, THE NOMINATION FOR, OR ELECTION TO, 7 OFFICE OF A CANDIDATE FOR LEGISLATIVE OFFICE THAT, WHEN PAID, 8 WILL CAUSE THE EXPENDITURES OF THAT CANDIDATE OR PERSON TO EXCEED 9 ANY LIMIT IMPOSED BY SECTION 78. A PERSON WHO KNOWINGLY VIOLATES 10 THIS SUBSECTION IS GUILTY OF A MISDEMEANOR PUNISHABLE BY A FINE 11 OF NOT MORE THAN $1,000.00 OR IMPRISONMENT FOR NOT MORE THAN 90 12 DAYS, OR BOTH. 13 (2) IF A PERSON SUBJECT TO THIS SECTION IS FOUND GUILTY OF 14 VIOLATING THIS SECTION, THE CIRCUIT COURT OF THAT COUNTY, ON 15 APPLICATION BY THE ATTORNEY GENERAL, MAY PROHIBIT THAT PERSON 16 FROM ASSUMING THE DUTIES OF A PUBLIC OFFICE OR FROM RECEIVING 17 COMPENSATION FROM PUBLIC FUNDS, OR BOTH. 00431'99 Final page. KKR