September 14, 2006, Introduced by Rep. Farhat 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 3, 5, 7, 15, 16, 17, 18, 21, 24, 25, 33, 33a,
34, 37, 51, and 61 (MCL 169.203, 169.205, 169.207, 169.215,
169.216, 169.217, 169.218, 169.221, 169.224, 169.225, 169.233,
169.233a, 169.234, 169.237, 169.251, and 169.261), sections 3, 17,
21, 25, 37, and 51 as amended by 1989 PA 95, sections 5 and 24 as
amended by 1999 PA 237, sections 7 and 15 as amended by 2001 PA
250, section 16 as amended by 2000 PA 50, section 18 as amended by
2006 PA 89, sections 33 and 34 as amended by 1999 PA 238, section
33a as added by 1995 PA 264, and section 61 as amended by 1993 PA
262, and by adding section 18a; and to repeal acts and parts of
acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) "Candidate" means an individual who meets 1 or
more of the following criteria:
(a) who The
individual files a fee, affidavit of
incumbency,
or
nominating petition for an elective office. ;
(b) whose The
individual's nomination as a candidate
for
elective office by a political party caucus or convention is
certified
to the appropriate filing official; secretary of state.
(c) who The
individual 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 The
individual is an officeholder who is
the subject
of
a recall vote. Unless
(2) "Candidate" includes an officeholder 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
considered
to be a candidate for reelection to that same office for
the
purposes of this act only. For purposes of
(3) As used in sections 61 to 71, "candidate" only means
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, the 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.
(4) (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 section 21
when
the individual becomes a candidate
under in 1 of the ways
described in subsection (1).
(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 who
makes an
expenditure
to a ballot question committee shall is
not for that
reason not
be considered a committee
for the purposes of under
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 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, 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
January 1 following the last general election in which the office
appeared
on the ballot and ending on the day of December 31
following 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) "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 as used in section 57.
Sec. 7. (1) "Electronic signature" means that term as defined
in section 2 of the uniform electronic transactions act, 2000 PA
305, MCL 450.832.
(2)
(1) "Filed"
means, the receipt by the appropriate
filing
official of with reference
to a statement or report
required to be filed under this act, received by the secretary of
state.
(3) (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 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.
(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.
(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. 15. (1) The secretary of state shall do all of the
following:
(a) Make available through his or her offices, and furnish to
county clerks, appropriate forms, instructions, and manuals
required by this act.
(b) Develop a filing, coding, and cross-indexing system for
the
filing of required reports and statements consistent with the
purposes
of this act.
, and supervise the implementation
of the
filing
systems by the clerks of the counties.
(c) Receive all statements and reports required by this act to
be filed with the secretary of state.
(d) Prepare forms, instructions, and manuals required under
this act.
(e) Promulgate rules and issue declaratory rulings to
implement this act in accordance with the administrative procedures
act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(f) Upon receipt of a written request and the required filing,
waive payment of a late filing fee if the request for the waiver is
based on good cause and accompanied by adequate documentation. One
or more of the following reasons constitute good cause for a late
filing fee waiver:
(i) The incapacitating physical illness, hospitalization,
accident involvement, death, or incapacitation for medical reasons
of
a person required to file , or
a person whose participation is
essential to the preparation of the statement or report, or of a
member
of the immediate family of these persons such a person.
(ii) Other unique, unintentional factors beyond the filer's
control
not stemming from a negligent act or nonaction so that
would
cause a reasonably prudent person would
to excuse the
filing on a temporary basis. These factors include the loss or
unavailability of records due to a fire, flood, theft, or similar
reason and difficulties related to the transmission of the filing
to
the filing official secretary of state, such as
exceptionally
bad weather or strikes involving transportation systems.
(2) A declaratory ruling shall be issued under this section
only if the person requesting the ruling has provided a reasonably
complete statement of facts necessary for the ruling or if the
person requesting the ruling has, with the permission of the
secretary of state, supplied supplemental facts necessary for the
ruling. A request for a declaratory ruling that is submitted to the
secretary of state shall be made available for public inspection
within 48 hours after its receipt. An interested person may submit
written comments regarding the request to the secretary of state
within 10 business days after the date the request is made
available to the public. Within 45 business days after receiving a
declaratory ruling request, the secretary of state shall make a
proposed response available to the public. An interested person may
submit written comments regarding the proposed response to the
secretary of state within 5 business days after the date the
proposal is made available to the public. Except as otherwise
provided in this section, the secretary of state shall issue a
declaratory ruling within 60 business days after a request for a
declaratory ruling is received. If the secretary of state refuses
to issue a declaratory ruling, the secretary of state shall notify
the person making the request of the reasons for the refusal and
shall issue an interpretative statement providing an informational
response to the question presented within the same time limitation
applicable to a declaratory ruling. A declaratory ruling or
interpretative statement issued under this section shall not state
a general rule of law, other than that which is stated in this act,
until the general rule of law is promulgated by the secretary of
state as a rule under the administrative procedures act of 1969,
1969 PA 306, MCL 24.201 to 24.328, or under judicial order.
(3) Under extenuating circumstances, the secretary of state
may issue a notice extending for not more than 30 business days the
period during which the secretary of state shall respond to a
request for a declaratory ruling. The secretary of state shall not
issue more than 1 notice of extension for a particular request. A
person requesting a declaratory ruling may waive, in writing, the
time limitations provided by this section.
(4) The secretary of state shall make available to the public
an annual summary of the declaratory rulings and interpretative
statements issued by the secretary of state.
(5) A person may file with the secretary of state a complaint
that alleges a violation of this act. Within 5 business days after
a complaint that meets the requirements of subsection (6) is filed,
the secretary of state shall give notice to the person against whom
the complaint is filed. The notice shall include a copy of the
complaint. Within 15 business days after this notice is provided,
the person against whom the complaint was filed may submit to the
secretary of state a response. The secretary of state may extend
the period for submitting a response an additional 15 business days
for good cause. The secretary of state shall provide a copy of a
response received to the complainant. Within 10 business days after
receiving a copy of the response, the complainant may submit to the
secretary of state a rebuttal statement. The secretary of state may
extend the period for submitting a rebuttal statement an additional
10 business days for good cause. The secretary of state shall
provide a copy of the rebuttal statement to the person against whom
the complaint was filed.
(6) A complaint under subsection (5) shall satisfy all of the
following requirements:
(a) Be signed by the complainant.
(b) State the name, address, and telephone number of the
complainant.
(c) Include the complainant's certification that, to the best
of the complainant's knowledge, information, and belief, formed
after a reasonable inquiry under the circumstances, each factual
contention of the complaint is supported by evidence. However, if,
after a reasonable inquiry under the circumstances, the complainant
is unable to certify that certain factual contentions are supported
by evidence, the complainant may certify that, to the best of his
or her knowledge, information, or belief, there are grounds to
conclude that those specifically identified factual contentions are
likely to be supported by evidence after a reasonable opportunity
for further inquiry.
(7) The secretary of state shall develop a form that satisfies
the requirements of subsection (6) and may be used for the filing
of complaints.
(8) A person who files a complaint with a false certificate
under subsection (6)(c) is responsible for a civil violation of
this act. A person may file a complaint under subsection (5)
alleging that another person has filed a complaint with a false
certificate under subsection (6)(c).
(9) The secretary of state shall investigate the allegations
in a complaint filed under subsection (5) under the rules
promulgated under this act. Every 60 days after a complaint that
meets the requirements of subsection (6) is filed and until the
matter is terminated, the secretary of state shall, by mail or, if
applicable, electronically as provided in section 18a, give notice
to the complainant and to the alleged violator notice of the action
taken
to date by the secretary of state
, together with and of
the reasons for the action or nonaction.
(10) If the secretary of state determines that there may be
reason to believe that a violation of this act has occurred, the
secretary of state shall endeavor to correct the violation or
prevent a further violation by using informal methods such as a
conference, conciliation, or persuasion, and may enter into a
conciliation agreement with the person involved. Unless violated, a
conciliation agreement is a complete bar to any further action with
respect to matters covered in the conciliation agreement. If the
secretary of state is unable to correct or prevent further
violation by these informal methods, the secretary of state may
refer the matter to the attorney general for the enforcement of a
criminal penalty provided by this act or commence a hearing as
provided in subsection (11).
(11) The secretary of state may commence a hearing to
determine whether a civil violation of this act has occurred. A
hearing shall not be commenced during the period beginning 30 days
before an election in which the committee has received or expended
money and ending the day after that election except with the
consent of the person suspected of committing a civil violation.
The
hearing shall be conducted in accordance with the procedures
set
forth in chapter 4 of the administrative procedures act of
1969, 1969 PA 306, MCL 24.271 to 24.287. If after a hearing the
secretary of state determines that a violation of this act has
occurred, the secretary of state may issue an order requiring the
person to pay a civil fine equal to the amount of the improper
contribution or expenditure plus not more than $1,000.00 for each
violation.
(12) A final decision and order issued by the secretary of
state is subject to judicial review as provided by chapter 6 of the
administrative procedures act of 1969, 1969 PA 306, MCL 24.301 to
24.306. The secretary of state shall deposit a civil fine imposed
under this section in the general fund. The secretary of state may
bring an action in circuit court to recover the amount of a civil
fine.
(13) When a report or statement is filed under this act, the
secretary of state shall review the report or statement and may
investigate an apparent violation of this act under the rules
promulgated under this act. If the secretary of state determines
that there may be reason to believe a violation of this act has
occurred and the procedures prescribed in subsection (10) have been
complied with, the secretary of state may refer the matter to the
attorney general for the enforcement of a criminal penalty provided
by this act, or commence a hearing under subsection (11) to
determine whether a civil violation of this act has occurred.
(14) Unless otherwise specified in this act, a person who
violates a provision of this act is subject to a civil fine of not
more than $1,000.00 for each violation. A civil fine is in addition
to, but not limited by, a criminal penalty prescribed by this act.
(15) In addition to any other sanction provided for by this
act, the secretary of state may require a person who files a
complaint with a false certificate under subsection (6)(c) to do
either or both of the following:
(a) Pay to the secretary of state some or all of the expenses
incurred by the secretary of state as a direct result of the filing
of the complaint.
(b) Pay to the person against whom the complaint was filed
some or all of the expenses, including, but not limited to,
reasonable attorney fees, incurred by that person in proceedings
under this act as a direct result of the filing of the complaint.
(16) There is no private right of action, either in law or in
equity, under this act. The remedies provided in this act are the
exclusive means by which this act may be enforced and by which any
harm resulting from a violation of this act may be redressed.
(17)
The secretary of state may waive the filing of a campaign
statement
required under section 33, 34, or 35 if the closing date
of
the particular campaign statement falls on the same or a later
date
as the closing date of the next campaign statement filed by
the
same person, or if the period that would be otherwise covered
by
the next campaign statement filed by the same person is 10 days
or
less.
(17) (18)
The clerk of each county shall do
all of the
following:
(a)
Make make available through the county clerk's office the
appropriate forms, instructions, and manuals required by this act.
(b)
Under the supervision of the secretary of state, implement
the
filing, coding, and cross-indexing system prescribed for the
filing
of reports and statements required to be filed with the
county
clerk's office.
(c)
Receive all statements and reports required by this act to
be
filed with the county clerk's office.
(d)
Upon written request, waive the payment of a late filing
fee
if the request for a waiver is based on good cause as
prescribed
in subsection (1)(f).
Sec.
16. (1) A filing official The secretary of state shall
make
information from a statement or report required to be filed
under this act available for public inspection and reproduction in
written form, commencing as soon as practicable, but not later than
the
third business day following the day on which it the
statement or report is received, during regular business hours of
the filing
official secretary of state. If the report is a
report
of a late contribution under section 32(1) made to the
secretary
of state, the secretary of state shall also make the
report
or all of the contents of the report available to the public
on
the internet, without charge, as soon as practicable but not
later
than the end of the business day on which it is received, at
a
single website established and maintained by the secretary of
state.
(2)
A copy of a statement or part of a statement writing
provided
under this section shall be provided by
a filing official
at a reasonable charge.
(3) A statement open to the public under this act shall not be
used for any commercial purpose.
(4) Except as otherwise provided in this subsection, a
statement
of organization filed under this act with a filing
local
governmental official who
is not the secretary of state
shall
be preserved by that filing official for 5 years from the
official date of the committee's dissolution. A statement of
organization
filed under this act with a filing local
governmental
official who is not the
secretary of state that is
filed by a committee that received more than $50,000.00 in an
election
cycle shall be preserved by that filing official for 15
years from the official date of the committee's dissolution. A
statement of organization filed under this act with the secretary
of state shall be preserved by the secretary of state for 15 years
from the official date of the committee's dissolution. Except as
otherwise provided in this subsection, any other statement or
report
filed under this act with a filing local
governmental
official who
is not the secretary of state shall be preserved by
that filing
official for 5 years from the date the filing
occurred.
Any other statement or report filed under this act with a
filing
local governmental official
who is not the secretary of
state
that is filed by a committee that received more than
$50,000.00
in an election cycle shall be preserved by that filing
official for 15 years from the date the filing occurred. Any other
statement or report filed under this act with the secretary of
state shall be preserved by the secretary of state for 15 years
from the date the filing occurred. Upon a determination under
section 15 that a violation of this act has occurred, all
complaints, orders, decisions, or other documents related to that
violation
shall be preserved by the filing a local governmental
official, who
is not the secretary of state if
applicable, or the
secretary of state for 15 years from the date of the court
determination or the date the violations are corrected, whichever
is later. Statements and reports filed under this act may be
reproduced
pursuant to the records media reproduction
act, 1992
PA
116, MCL 24.401 to 24.403 24.406. After the required
preservation period, the statements and reports, or the
reproductions of the statements and reports, may be disposed of in
the manner prescribed in the management and budget act, 1984 PA
431, MCL 18.1101 to 18.1594, and 1913 PA 271, MCL 399.1 to 399.10.
(5)
A charge shall not be collected by
a filing official the
secretary of state for the filing of a required statement or report
or for a form upon which the statement or report is to be prepared,
except a late filing fee required by this act.
(6) A
filing official The
secretary of state shall determine
whether a statement or report filed under this act complies, on its
face, with the requirements of this act and the rules promulgated
under
this act. The filing official secretary of state shall
determine whether a statement or report that is required to be
filed
under this act is in fact filed. Within 4 business days after
the
deadline for filing determining
that a statement or report
required to be filed under this act does not comply with this act
or
the rules or has not been filed, the filing
official secretary
of state shall give notice to the filer, by registered mail or, if
applicable, electronically as provided in section 18a, of an error
or omission in the statement or report and give notice to a person
the filing
official secretary of state has reason to believe is a
person required to and who failed to file a statement or report. A
failure
to give notice by the filing official secretary of state
under this subsection is not a defense to a criminal action against
the person required to file.
(7)
Within 9 business days after the a
report or statement
is required to be filed, the filer shall make any corrections in
the
statement or report filed with the
appropriate filing official
secretary of state. If the report or statement was not filed, then
the report or statement shall be late filed within 9 business days
after the time it was required to be filed and shall be subject to
late filing fees.
(8) After 9 business days and before 12 business days have
expired
after the deadline for filing the a
statement or report,
the filing
official secretary of state shall report errors or
omissions that were not corrected and failures to file to the
attorney general.
(9) A statement or report required to be filed under this act
shall be filed or electronically transmitted, as applicable, not
later
than 5 p.m. of the day in which it is required to be filed.
A
preelection statement or report due on July 25 or October 25
under
section 33 that is postmarked by registered or certified
mail,
or sent by express mail or other overnight delivery service,
at
least 2 days before the deadline for filing is filed within the
prescribed
time regardless of when it is actually delivered. Any
other
statement or report A
statement of organization required to
be filed under this act that is postmarked by registered or
certified mail or sent by express mail or other overnight delivery
service on or before the deadline for filing is filed within the
prescribed time regardless of when it is actually delivered.
Sec. 17. (1) A person paying a late filing fee as a result of
that person's failure to file a statement or report shall pay that
fee
to the filing official with whom the statement or report
was
required
to be filed secretary of state.
(2)
The late filing fees collected pursuant to under
sections
24, 33, and 34 , and 35, and copying charges
collected
pursuant
to under section 16
, shall
be retained by and for the
use
of the filing officials collecting the fees or charges the
secretary
of state to cover their
expenses
in of administering
this
act. A late filing fee assessed by a county clerk that
remains
unpaid for more than 60 days shall be considered a debt of
the
county and shall be collected by the county treasurer in the
same
manner as other county debts are collected. A late filing fee
assessed
by the secretary of state that remains unpaid for more
than 180 days shall be referred to the department of treasury for
collection.
(3) A committee, other than a candidate committee or a
committee making expenditures in assistance of or in opposition to
the
qualification, passage, or defeat of a ballot question,
required
to file with the secretary of state is not required to
pay
a late filing fee pursuant to sections under section 24, 33,
or
34 , and 35, if
all of the following conditions are met:
(a) A
The committee is
required to register as a committee
but fails to file a statement of organization.
(b)
The secretary of state sends to that the
committee
notice of the committee's failure to file a statement of
organization.
(c) At the same time or after the notice described in
subdivision
(b) is sent, the secretary of state sends to that the
committee notice of the committee's failure to file a campaign
statement that was due for a period that occurred before the notice
of failure to file a statement of organization was sent.
(d) Within 10 business days after the notice of failure to
file a statement of organization is sent, the committee files a
statement of organization.
(e) Within 10 business days after the notice of failure to
file a campaign statement is sent, the committee files every
campaign statement that is due.
(4)
Late filing fees that would have occurred except accrued
but for subsection (3) shall be assessed for each statement not
filed before the eleventh business day after a notice of failure to
file
is sent pursuant to under subsection (3).
(5) A committee other than a candidate committee that has not
previously filed a statement of organization is not required to pay
a
late filing fee pursuant to sections under section 24, 33, or
34 ,
and 35, if the committee files a statement of organization
and every campaign statement that is due, before the secretary of
state
sends a notice to that committee pursuant to under
subsection (3).
Sec. 18. (1) The secretary of state shall develop and
implement an electronic filing and internet disclosure system that
permits committees that are required to file statements or reports
under this act with the secretary of state to file those statements
or reports electronically and that provides internet disclosure of
electronically filed statements or reports on a website.
(2)
The secretary of state shall offer each committee required
to
file with the secretary of state the option of filing campaign
statements
or reports electronically, as described in subsection
(1).
(3)
Beginning with the annual campaign statement due January
31,
2004, each committee required to file with the secretary of
state
that received or expended $20,000.00 or more in the preceding
calendar
year or expects to receive or expend $20,000.00 or more in
the
current calendar year shall electronically file all statements
and
reports required under this act, as described in subsection
(1).
(4)
If a committee was not required to file a campaign
statement
under subsection (3) only because it did not meet the
applicable
threshold of receiving or expending $20,000.00 or more,
but
the committee later reaches that threshold, the committee shall
notify
the secretary of state within 10 business days after
reaching
that threshold and shall subsequently file electronically
all
statements and reports required under this act.
(2) (5)
The secretary of state shall permit a committee to A
committee shall electronically file statements and reports required
under this act, as described in subsection (1), except an original
statement
of organization. , after the committee treasurer and,
for
a candidate committee, the candidate has signed and filed a
form
designed by the secretary of state to serve as the signature
verifying
the accuracy and completeness of each statement or report
filed
electronically.
(3) The secretary of state shall maintain a website that
displays, at a minimum, all of the following as reported by a
committee under this section:
(a) Recently reported contributions.
(b) Recently reported expenditures.
(c) The balance of cash on hand.
Sec. 18a. (1) The secretary of state shall offer a committee
the option of receiving notices from the secretary of state
electronically over the internet. A committee that wishes to
exercise the option under this subsection shall do so in the manner
required by the secretary of state.
(2) If a committee exercises the option under subsection (1),
a notice required to be given to the committee under this act or
rules promulgated pursuant to this act is complete when transmitted
over the internet to the electronic mail address given to the
secretary of state by the committee.
(3) This section does not apply to the service of legal
process.
Sec. 21. (1) A candidate, within 10 days after becoming a
candidate, shall form a candidate committee. A person who is a
candidate for more than 1 office shall form a candidate committee
for each office for which the person is a candidate, if at least 1
of the offices is a state elective office. A candidate shall not
form more than 1 candidate committee for each office for which the
person is a candidate.
(2) A candidate committee shall have a treasurer who is a
qualified elector of this state. A candidate may appoint himself or
herself as the candidate committee treasurer.
(3) A committee other than a candidate committee shall have a
treasurer who is a qualified elector of this state if the committee
conducts business through an office or other facility located in
this state.
(4) If a committee is not required to have as its treasurer an
individual who is a qualified elector of this state, the committee
may have as its treasurer an individual who is a resident of
another state. A committee with a nonresident treasurer shall file,
with its statement of organization, an irrevocable written
stipulation, signed by the treasurer, agreeing that service of
legal
process affecting the committee , served on the secretary
of
state or an agent designated by the secretary of state ,
shall
have
has the same effect as if personally served personal
service
on the committee. This
appointment shall remain The
stipulation remains in force as long as any liability of the
committee remains
is outstanding within this state.
(5) If the secretary of state or designated agent of the
secretary of state is served with legal process pursuant to
subsection (4), the secretary of state shall promptly notify the
committee's treasurer by certified mail at the last known address
of the committee shown on the committee's statement of
organization.
(6) Except as provided by law, a candidate committee or a
committee described in subsection (3) shall have 1 account in a
financial institution in this state as an official depository for
the purpose of depositing all contributions received by the
committee
in the form of or which that
are converted to money,
checks, or other negotiable instruments and for the purpose of
making all expenditures. The committee shall designate that
financial institution as its official depository. The establishment
of an account in a financial institution is not required until the
committee receives a contribution or makes an expenditure.
Secondary depositories shall be used for the sole purpose of
depositing contributions and promptly transferring the deposits to
the committee's official depository.
(7) Except as provided by law, a committee described in
subsection (4) shall have 1 account in a financial institution as
its official depository for the purpose of depositing all
contributions
received by the committee in the form of or which
that are converted to money, checks, or other negotiable
instruments and for the purpose of making all expenditures. The
committee shall designate that financial institution as its
official depository. The establishment of an account in a financial
institution is not required until the committee receives a
contribution or makes an expenditure. Secondary depositories shall
be used for the sole purpose of depositing contributions and
promptly transferring the deposits to the committee's official
depository.
(8) A contribution shall not be accepted and an expenditure
shall not be made by a committee that does not have a treasurer.
When the office of treasurer in a candidate committee is vacant,
the candidate shall be the treasurer until the candidate appoints a
new treasurer.
(9) An expenditure shall not be made by a committee without
the authorization of the treasurer or the treasurer's designee. The
contributions received or expenditures made by a candidate or an
agent of a candidate shall be considered received or made by the
candidate committee.
(10) Contributions received by an individual acting in behalf
of a committee shall be reported promptly to the committee's
treasurer. not
later than 5 days before the closing date of any
campaign
statement required to be filed by the committee, and shall
be
reported to the committee treasurer immediately if the
contribution
is received less than 5 days before the closing date.
(11) A contribution shall be considered received by a
committee when it is received by the committee treasurer or a
designated
agent of the committee treasurer although even though
the
contribution may is
not be deposited
in the official
depository. by
the reporting deadline.
(12) Contributions received by a committee shall not be
commingled with other funds of an agent of the committee or of any
other person.
(13) A person who violates this section is subject to a civil
fine of not more than $1,000.00.
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 secretary of state. 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, driver's license number, 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 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.
(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.
(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.
(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
secretary of state. 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 is not be
required to
file
a dissolution statement pursuant to under subsection (7) if
the
committee failed to does not 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. 25. A committee supporting or opposing a candidate or the
qualification,
passage, or defeat of a ballot question shall file a
legibly
printed or typed campaign statement as required by section
18. The period covered by a campaign statement is the period
beginning with the day after the closing date of the most recent
campaign
statement filed pursuant to under this act, and ending
with the closing date of the campaign statement in question. If the
committee filing the campaign statement has not previously filed a
campaign
statement, the period covered shall begin begins on the
date on which the committee was formed.
Sec.
33. (1) A committee , other than an independent
committee
or a political committee required to file with the
secretary
of state, supporting or opposing a candidate shall file
complete campaign statements as required by this act and the rules
promulgated
under this act. The campaign statements shall be filed
according
to the following schedule: The
committee shall not make
an expenditure unless the contribution of the money or thing of
ascertainable monetary value that is the subject of the expenditure
has been reported in a campaign statement. The closing date of the
campaign statement is the date of the last contribution reported in
the statement.
(a)
A preelection campaign statement shall be filed not later
than
the eleventh day before an election. The closing date for a
campaign
statement filed under this subdivision shall be the
sixteenth
day before the election.
(b)
A postelection campaign statement shall be filed not later
than
the thirtieth day following the election. The closing date for
a
campaign statement filed under this subdivision shall be the
twentieth
day following the election. A committee supporting a
candidate
who loses the primary election shall file closing
campaign
statements in accordance with this section. If all
liabilities
of such a candidate or committee are paid before the
closing
date and additional contributions are not expected, the
campaign
statement may be filed at any time after the election, but
not
later than the thirtieth day following the election.
(2)
For the purposes of subsection (1):
(a)
A candidate committee shall file a preelection campaign
statement
and a postelection campaign statement for each election
in
which the candidate seeks nomination or election, except if an
individual
becomes a candidate after the closing date for the
preelection
campaign statement only the postelection campaign
statement
is required for that election.
(b)
A committee other than a candidate committee shall file a
campaign
statement for each period during which expenditures are
made
for the purpose of influencing the nomination or election of a
candidate
or for the qualification, passage, or defeat of a ballot
question.
(3)
An independent committee or a political committee other
than
a house political party caucus committee or senate political
party
caucus committee required to file with the secretary of state
shall
file campaign statements as required by this act according to
the
following schedule:
(a)
In an odd numbered year:
(i) Not later than January 31 of that year with a
closing date
of
December 31 of the previous year.
(ii) Not later than July 25 with a closing date of July
20.
(iii) Not later than October 25 with a closing date of
October
20.
(b)
In an even numbered year:
(i) Not later than April 25 of that year with a
closing date of
April
20 of that year.
(ii) Not later than July 25 with a closing date of July
20.
(iii) Not later than October 25 with a closing date of
October
20.
(4)
A house political party caucus committee or a senate
political
party caucus committee required to file with the
secretary
of state shall file campaign statements as required by
this
act according to the following schedule:
(a)
Not later than January 31 of each year with a closing date
of
December 31 of the immediately preceding year.
(b)
Not later than April 25 of each year with a closing date
of
April 20 of that year.
(c)
Not later than July 25 of each year with a closing date of
July
20 of that year.
(d)
Not later than October 25 of each year with a closing date
of
October 20 of that year.
(e)
For the period beginning on the fourteenth day immediately
preceding
a primary or special primary election and ending on the
day
immediately following the primary or special primary election,
not
later than 4 p.m. each business day with a closing date of the
immediately
preceding day, only for a contribution received or
expenditure
made that exceeds $1,000.00 per day.
(f)
For the period beginning on the fourteenth day immediately
preceding
a general or special election and ending on the day
immediately
following the general or special election, not later
than
4 p.m. each business day with a closing date of the
immediately
preceding day, only for a contribution received or
expenditure
made that exceeds $1,000.00 per day.
(5)
Notwithstanding subsection (3) or (4) or section 51, if an
independent
expenditure is made within 45 days before a special
election
by an independent committee or a political committee
required
to file a campaign statement with the secretary of state,
a
report of the expenditure shall be filed by the committee with
the
secretary of state within 48 hours after the expenditure. The
report
shall be made on a form provided by the secretary of state
and
shall include the date of the independent expenditure, the
amount
of the expenditure, a brief description of the nature of the
expenditure,
and the name and address of the person to whom the
expenditure
was paid. The brief description of the expenditure
shall
include either the name of the candidate and the office
sought
by the candidate or the name of the ballot question and
shall
state whether the expenditure supports or opposes the
candidate
or ballot question. This subsection does not apply if the
committee
is required to report the independent expenditure in a
campaign
statement that is required to be filed before the date of
the
election for which the expenditure was made.
(2) (6)
A candidate committee or
a committee other than a
candidate
committee that files a written statement under section
24(5)
or (6) need not is not required to file a
campaign
statement
under subsection (1), (3), or (4) this section unless
it received or expended an amount in excess of $1,000.00. If the
committee receives or expends an amount in excess of $1,000.00
during a period covered by a filing, the committee is then subject
to
the campaign filing requirements under of
this act.
(3) (7)
A committee, candidate, treasurer, or
other
individual
designated as responsible for the
committee's record
keeping, report preparation, or report filing for a committee other
than a ballot question committee who fails to file a statement as
required by this section shall pay 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 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 not exceed $1,000.00, determined
as follows:
(a) Twenty-five dollars for each business day the report
remains unfiled.
(b) An additional $25.00 for each business day after the first
3 business days the report remains unfiled.
(c) An additional $50.00 for each business day after the first
10 business days the report remains unfiled.
(4) (8)
If a candidate, treasurer, or other individual
designated
as responsible for the committee's record keeping,
report preparation, or report filing for a committee other than a
ballot question committee fails to file 2 statements required by
this
section or section 35 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.
(5) (9)
If a candidate is found guilty of a violation of
this section, the circuit court for that county, on application by
the attorney general or the prosecuting attorney of that county,
may prohibit that candidate from assuming the duties of a public
office or from receiving compensation from public funds, or both.
(6) (10)
If a treasurer or other individual designated as
responsible
for a committee's the record keeping, report
preparation, or report filing for a committee other than a ballot
question committee 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. 33a. (1) A political committee, independent committee, or
political party committee that makes a contribution to a candidate
or ballot question committee shall include with the contribution
all information that the receiving committee is required to include
in a campaign statement filed pursuant to section 26 regarding the
contributing committee.
(2) A committee that makes a contribution to a candidate or to
another committee shall provide with the contribution the campaign
finance identification number assigned to the contributing
committee by the official with whom the committee filed its
statement of organization.
Sec.
34. (1) A ballot question committee shall file a
campaign
statement as required by this act according to the
following
schedule:
(a)
A preelection campaign statement, the closing date of
which
shall be the sixteenth day before the election, shall not be
filed
later than the eleventh day before the election.
(b)
A postelection campaign statement, the closing date of
which
shall be the twentieth day following the election, shall not
be
filed later than the thirtieth day following an election. If all
liabilities
of the committee are paid before the closing date and
additional
contributions are not expected, the campaign statement
may
be filed at any time after the election, but not later than the
thirtieth
day following the election.
(2)
A ballot question committee supporting or opposing a
statewide
ballot question shall file a campaign statement, of which
the
closing date shall be the twenty-eighth day after the
qualification
of the measure, not later than 35 days after the
ballot
question is qualified for the ballot. If the ballot question
fails
to qualify for the ballot, the ballot question committee
shall
file the campaign statement within 35 days after the final
deadline
for qualifying, the closing date of which shall be the
twenty-eighth
day after the deadline.
(3)
If a ballot question committee supporting or opposing a
statewide
ballot question fails to file a preelection statement
under
this section, that committee or its treasurer shall pay a
late
filing fee for each business day the statement remains not
filed
in violation of this section, not to exceed $1,000.00,
pursuant
to the following schedule:
(a)
First day--$25.00.
(b)
Second day--$50.00.
(c)
Third day--$75.00.
(d)
Fourth day and for each subsequent day that the statement
remains
unfiled--$100.00.
(4)
If a treasurer or other individual designated as
responsible
for the record keeping, report preparation, or report
filing
of a ballot question committee supporting or opposing a
statewide
ballot question fails to file a statement, other than a
preelection
statement, under this section, that committee,
treasurer,
or other designated individual shall pay 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
$1,000.00. 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 $2,000.00.
(1) (5)
If a treasurer or other individual designated as
responsible for the record keeping, report preparation, or report
filing
of a ballot question committee supporting or opposing other
than
a statewide ballot question fails to file a campaign
statement under
this section required by
this act, that
committee, treasurer, or other designated individual shall pay 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 $1,000.00. 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 $2,000.00.
(2) (6)
If a treasurer or other individual designated as
responsible for the record keeping, report preparation, or report
filing of a ballot question committee fails to file a campaign
statement
as required by subsection (1) or (2) this act for more
than 7 days, that 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.
(3) (7)
If a treasurer or other individual designated as
responsible for the record keeping, report preparation, or report
filing of a ballot question committee knowingly files an incomplete
or
inaccurate campaign statement
or report required
by this
section
act, that treasurer or other designated individual is
subject to a civil fine of not more than $1,000.00.
Sec.
37. A campaign statement filed by a committee shall be
signed
by include the electronic
signature of the committee
treasurer or other individual designated as responsible for the
record keeping, report preparation, or report filing for that
committee. A verification statement shall be part of the campaign
statement and shall state that the person who electronically signed
the campaign statement used all reasonable diligence in preparation
of the campaign statement, and to that person's knowledge the
campaign statement is true and complete. If the committee is a
candidate committee, the campaign statement shall also include the
electronic
signature of the candidate shall
also verify, in
writing,
and a verification statement
that to the best of the
candidate's knowledge the campaign statement is true and complete.
Sec. 51. A person, other than a committee, who makes an
independent
expenditure , advocating the election of a candidate
or the defeat of a candidate's opponents or the qualification,
passage,
or defeat of a ballot question , in an amount of $100.01
or more in a calendar year shall file a report of the independent
expenditure ,
within 10 days , with
the clerk of the county of
residence of that person. The report shall be made on an
independent expenditure report form provided by the secretary of
state and shall include the date of the expenditure, a brief
description of the nature of the expenditure, the amount, the name
and address of the person to whom it was paid, the name and address
of
the person filing the report, together with and the name,
address, occupation, employer, and principal place of business of
each
person who contributed $100.01 or more to the expenditure. The
filing
official county clerk receiving the report shall forward
copies,
as required, to the appropriate filing officers as
described
in section 36 a copy to the
secretary of state.
Sec.
61. (1) The state campaign fund is
hereby created.
The
state
treasurer shall administer the state campaign fund pursuant
to
in accordance with this act.
(2) An individual whose tax liability under the income tax act
of
1967, Act No. 281 of the Public Acts of 1967, as amended,
being
sections
206.1 to 206.532 of the Michigan Compiled Laws 1967 PA
281, MCL 206.1 to 206.532, for a taxable year is $3.00 or more may
designate that $3.00 be credited to the state campaign 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 designate that $3.00 be
credited to the state campaign fund.
(3) The tax designation authorized in this section shall be
clearly and unambiguously printed on the first page of the state
individual income tax return.
(4) An amount equal to the cumulative amounts designated under
subsection (2) each year shall be appropriated annually from the
general
fund of the this
state to the state campaign fund to be
available beginning January 1 and continuing through December 31 of
each
year in which a governor is elected.
The amounts Money
appropriated
under this section shall not revert lapse
to the
general
fund but shall remain available to in the state campaign
fund for
distribution without fiscal year limitation except that
any
amounts remaining in the state campaign fund in excess of
$10,000,000.00
on December 31 immediately following a gubernatorial
general
election shall revert to the general fund. to be
distributed as follows:
(a) In the calendar year in which the amendatory act that
added this subdivision takes effect, $2,500,000.00 shall be
transferred to the secretary of state to be expended only for the
implementation or operation of the electronic filing and internet
disclosure system required by section 18 as amended by the
amendatory act that added this subdivision.
(b) Money remaining in the state campaign fund on December 31
of years after the calendar year in which the amendatory act that
added this subdivision takes effect in excess of $6,000,000.00
shall be transferred to the secretary of state to be expended only
for the implementation or operation of the electronic filing and
internet disclosure system required by section 18.
(c) Money in the state campaign fund that is not transferred
under subdivision (a) or (b) shall be distributed only to
candidates as provided in this section and sections 62 to 71.
(5)
Before the distribution of funds money
under this act to
qualifying primary election candidates, the state treasurer shall
set
aside sufficient funds money
from the state campaign fund to
fully
implement the formula for distributing
funds money to
qualifying
general election candidates. If there
is insufficient
funds
exist money in the state campaign fund to provide full
funding
to eligible primary election candidates, the campaign
funds
available money shall be distributed to those candidates on
a pro rata basis.
Enacting section 1. Sections 32, 35, 36, 38, 81, and 82 of the
Michigan campaign finance act, 1976 PA 388, MCL 169.232, 169.235,
169.236, 169.238, 169.281, and 169.282, are repealed effective
January 1, 2007.
Enacting section 2. Section 61 of the Michigan campaign
finance act, 1976 PA 288, MCL 169.261, as amended by this
amendatory act, takes effect September 1, 2006.
Enacting section 3. Sections 3, 5, 7, 15, 16, 17, 18, 21, 24,
25, 33, 33a, 34, 37, and 51 of the Michigan campaign finance act,
1976 PA 288, MCL 169.203, 169.205, 169.207, 169.215, 169.216,
169.217, 169.218, 169.221, 169.224, 169.225, 169.233, 169.233a,
169.234, 169.237, and 169.251, as amended by this amendatory act,
and section 18a of the Michigan campaign finance act, 1976 PA 288,
as added by this amendatory act, take effect January 1, 2007.
Enacting section 4. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6483(request no.
06777'06 a) of the 93rd Legislature is enacted into law.