HOUSE BILL No. 6656

 

November 13, 2008, Introduced by Rep. Meisner and referred to the Committee on Ethics and Elections.

 

     A bill to amend 1976 PA 388, entitled

 

"Michigan campaign finance act,"

 

by amending sections 3, 5, 7, 10, 11, and 12 (MCL 169.203, 169.205,

 

169.207, 169.210, 169.211, and 169.212), section 3 as amended by

 

1989 PA 95, section 5 as amended by 1999 PA 237, sections 7 and 12

 

as amended by 2001 PA 250, and section 11 as amended by 1996 PA

 

590, and by adding sections 91, 92, 93, 94, 95, 96, 97, 98, 99,

 

100, 101, 103, 105, 107, 108, and 109; and to repeal acts and parts

 

of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. (1) "Candidate" means an individual :(a) who files who

 

meets 1 or more of the following criteria:

 

     (a) Files a fee, an affidavit of incumbency, or a nominating

 

petition for an elective office. ; (b) whose nomination

 

     (b) Is nominated as a candidate for elective office by a

 


political party caucus or convention and the nomination is

 

certified to the appropriate filing official. ; (c) who receives

 

     (c) Receives a contribution, makes an expenditure, or gives

 

consent for another person to receive a contribution or make an

 

expenditure with a view to bringing about the individual's

 

nomination or election to an elective office, whether or not the

 

specific elective office for which the individual will seek

 

nomination or election is known at the time the contribution is

 

received or the expenditure is made. ; or (d) who is

 

     (d) Is an officeholder who is the subject of a recall vote.

 

Unless

 

     (e) Holds an elective office, unless the officeholder is

 

constitutionally or legally barred from seeking reelection or fails

 

to file for reelection to that office by the applicable filing

 

deadline. , an elected officeholder shall be An individual

 

described in this subdivision is considered to be a candidate for

 

reelection to that same office for the purposes of this act only.

 

     For purposes of sections 61 to 71, "candidate" only means, 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 candidates for the office of

 

governor and lieutenant governor of the same political party in a

 

general election shall be considered as 1 candidate.

 

     (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) (5), an individual

 

shall form a candidate committee pursuant to under section 21 when

 

if the individual becomes a candidate under subsection (1).

 

     (3) "Certified candidate" means a candidate seeking election

 

to the office of governor, state senator, or state representative

 

who chooses to participate under the public campaign law and who is

 

certified by the secretary of state under section 97.

 

     (4) (3) "Closing date" means the date through which a campaign

 

statement is required to be complete.

 

     (5) (4) "Committee" means a person who receives contributions

 

or makes expenditures for the purpose of influencing or attempting

 

to influence the action of the voters for or against the nomination

 

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

 

defeat of a ballot question, if contributions received total

 

$500.00 or more in a calendar year or expenditures made total

 

$500.00 or more in a calendar year. An individual, other than a

 

candidate, does not constitute a committee. A person, other than a

 

committee registered under this act, making an expenditure to a

 

ballot question committee, shall not, for that reason, not be

 

considered a committee for the purposes of this act unless the

 

person solicits or receives contributions for the purpose of making

 

an expenditure to that ballot question committee.

 

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

 

tribe that has been acknowledged, recognized, restored, or

 

reaffirmed as an Indian tribe by the secretary of the interior

 

pursuant to 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 under the

 

Indian reorganization act, 25 USC 461 to 479, or has otherwise been

 

acknowledged by the United States government as an Indian tribe.

 

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

 

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

 

political party held in this state to nominate a candidate.

 

Election includes a recall vote.

 

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

 

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

 

following the last general election in which the office appeared on

 

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

 

the office next appears on the ballot.

 

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

 

special general election is called or the date the office becomes

 

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

 

general election.

 

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

 

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

 

office that is ordinarily elective holds an elective office.

 

Elective office does not include the office of precinct delegate.

 

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

 

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

 

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

 

pupil membership count day. However, elective office includes a

 

school board member in a school district that has a pupil

 

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

 

candidate for the office of school board member in that school

 


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

 

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

 

federal office except for the purposes of section 57.

 

     Sec. 7. (1) "Filed" means the receipt by the appropriate

 

filing official of a statement or report required to be filed under

 

this act.

 

     (2) "Filer" means a person required to file a statement or

 

report under this act.

 

     (3) "Filing official" means the official designated under this

 

act to receive required statements and reports.

 

     (4) "Fund" means the public campaign fund established in

 

section 92.

 

     (5) (4) "Fund raising event" means an event such as a dinner,

 

reception, testimonial, rally, auction, or similar affair through

 

which contributions are solicited or received by purchase of a

 

ticket, payment of an attendance fee, making a donation, or

 

purchase of goods or services.

 

     (6) "Funding law" means the public campaign funding law

 

alternative campaign finance provisions contained in sections 91 to

 

109.

 

     (7) (5) "Gift" means a payment, subscription, advance,

 

forbearance, rendering, or deposit of money, services, or anything

 

of value, unless consideration of equal or greater value is given

 

in exchange.

 

     (8) (6) "Honorarium" means a payment of money to a person

 

holding elective office as consideration for an appearance, a

 

speech, an article, or any activity related to or associated with

 


the performance of duties as an elected official. An honorarium

 

does not include any of the following:

 

     (a) Reimbursement for the cost of transportation,

 

accommodations, or meals for the person.

 

     (b) Wages, salaries, other employee compensation, and expenses

 

authorized to be paid by this state or a political subdivision of

 

this state to the person holding elective office.

 

     (c) An award.

 

     Sec. 10. (1) "Major political party" means a political party

 

qualified to have its name listed on the general election ballot

 

whose candidate for governor received 25% or more of the popular

 

vote cast in the preceding gubernatorial election. If only 1

 

political party received 25% or more of the popular vote cast for

 

governor in the preceding gubernatorial election, then the

 

political party with the second highest vote shall be deemed is a

 

major political party.

 

     (2) "Minor political party" means a political party qualified

 

to have its name listed on the general election ballot but which

 

that does not qualify as a major political party.

 

     (3) "Nominee" means an individual nominated to be a candidate.

 

     (4) "Nonparticipating candidate" means a candidate seeking

 

election to the office of governor, state senator, or state

 

representative who is not a participating candidate.

 

     Sec. 11. (1) "Participating candidate" means a candidate who

 

is seeking election to the office of governor, state senator, or

 

state representative, who chooses to participate under the funding

 

law, and who is seeking to be a certified candidate.

 


     (2) (1) "Person" means a business, individual, proprietorship,

 

firm, partnership, joint venture, syndicate, business trust, labor

 

organization, company, corporation, association, committee, or any

 

other organization or group of persons acting jointly.

 

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

 

candidate committee, political party committee, independent

 

committee, or ballot question committee.

 

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

 

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

 

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

 

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

 

opposing a candidate for nomination for or election to an elective

 

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

 

defeat of a ballot question.

 

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

 

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

 

the ballot in a general election.

 

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

 

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

 

committee. Each state central committee shall designate the

 

official party county and district committees. There shall not be

 

more than 1 officially designated political party committee per

 

county and per congressional district.

 

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

 

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

 

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

 

branch of state government.

 


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

 

council in the legislative branch of state government.

 

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

 

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

 

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

 

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

 

commission, or council.

 

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

 

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

 

which if the body exercises governmental or proprietary authority

 

or performs a governmental or proprietary function.

 

     Sec. 12. (1) "Qualifying contribution" means a contribution of

 

money made by a written instrument by an individual to the

 

candidate committee of a candidate for the office of governor that

 

is $100.00 or less and made after April 1 of the year preceding a

 

year in which a governor is to be elected. Not more than $100.00 of

 

an individual's total aggregate contribution may be used as a

 

qualifying contribution in a calendar year. Qualifying contribution

 

does not include a subscription, loan, advance, deposit of money,

 

in-kind contribution or expenditure, or anything else of value

 

except as prescribed in this act. Qualifying contribution does not

 

include a contribution by an individual who resides outside of this

 

state. For purposes of this subsection, an individual is considered

 

to reside in this state if he or she is considered a resident of

 

this state under the Michigan election law, 1954 PA 116, MCL 168.1

 

to 168.992. that meets all of the following criteria:

 

     (a) Is in the amount of $5.00 in cash or in the form of a

 


check or money order made payable to the fund in support of a

 

participating candidate.

 

     (b) Is made by a registered voter within the district from

 

which the participating candidate is seeking office.

 

     (c) Is made during the designated qualifying period.

 

     (d) Is obtained with the knowledge and approval of the

 

participating candidate.

 

     (e) Is acknowledged by a written receipt that identifies the

 

name and address of the donor on forms provided by the secretary of

 

state.

 

     (2) "Qualifying period" means 1 of the following, as

 

applicable:

 

     (a) For a candidate for the office of governor, the qualifying

 

period begins January 1 of the election year and ends at 5 p.m. on

 

June 16 of the election year unless the candidate is without major

 

political party affiliation, in which case the period ends at 5

 

p.m. on July 31 of the election year.

 

     (b) For a candidate for the office of state senator or state

 

representative, the qualifying period begins March 1 of the

 

election year and ends at 5 p.m. on June 16 of the election year

 

unless the candidate is without major political party affiliation,

 

in which case the period ends at 5 p.m. on July 31 of the election

 

year.

 

     (3) "Seed money contribution" means a contribution made to a

 

candidate, including a contribution from the candidate or a member

 

of the candidate's immediate family, that meets 1 of the following

 

requirements, as applicable:

 


     (a) For a candidate for the office of governor, is a

 

contribution of no more than $500.00 per individual.

 

     (b) For a candidate for the office of state senator or state

 

representative, is a contribution of no more than $100.00 per

 

individual.

 

     (4) (2) "Senate political party caucus committee" means an

 

independent committee established by a political party caucus of

 

the state senate under section 24a.

 

     (5) (3) "State elective office" means a statewide elective

 

office or the office of state legislator.

 

     (6) (4) "Statewide elective office" means the office of

 

governor, lieutenant governor, secretary of state, or attorney

 

general, justice of the supreme court, member of the state board of

 

education, regent of the university of Michigan, member of the

 

board of trustees of Michigan state university, or member of the

 

board of governors of Wayne state university.

 

     Sec. 91. (1) This section and sections 92 to 109 shall be

 

known and may be cited as the "public campaign funding law".

 

     (2) The public campaign funding law establishes an alternative

 

campaign financing option available to a certified candidate. This

 

alternative campaign financing option is available to a candidate

 

for an election for the office of governor, state senator, or state

 

representative held in this state after January 1, 2010.

 

     (3) The secretary of state and the department of treasury

 

shall administer the public campaign funding law. The state

 

treasurer shall administer the fund under this act.

 

     Sec. 92. (1) The public campaign fund is established to

 


finance the election campaigns of certified candidates. The fund

 

shall pay administrative costs of the departments of treasury and

 

state and enforcement costs of the department of state related to

 

the public campaign funding law.

 

     (2) The fund is a special, dedicated, nonlapsing fund.

 

Interest generated by the fund is credited to the fund.

 

     (3) The state treasurer shall deposit all of the following

 

into the fund:

 

     (a) The qualifying contributions remaining unspent after a

 

candidate has been certified, when that money is submitted to the

 

state treasurer.

 

     (b) Revenue under section 93.

 

     (c) Seed money contributions remaining unspent after a

 

candidate has been certified, when that money is submitted to the

 

state treasurer.

 

     (d) Money that was distributed to a certified candidate and

 

that remains unspent after the general election.

 

     (e) Money that was distributed to a certified candidate and

 

that is unspent because the candidate does not remain a candidate

 

throughout the general election cycle.

 

     (f) A voluntary donation made directly to the fund.

 

     (g) A fine collected under section 108.

 

     (4) On or before the September 1 immediately before an

 

election year, the secretary of state shall publish an estimate of

 

money in the fund available for distribution to certified

 

candidates during the upcoming year's elections.

 

     Sec. 93. (1) An individual whose tax liability under the

 


income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.532, for a

 

taxable year is $3.00 or more may opt not to have $3.00 credited to

 

the fund. In the case of a joint return of husband and wife having

 

an income tax liability of $6.00 or more, each spouse may opt not

 

to have $3.00 credited to the fund. The state treasurer shall

 

credit to the fund $3.00 for each individual who does not exercise

 

his or her option.

 

     (2) The tax designation authorized in this section shall be

 

clearly and unambiguously printed on the first page of the state

 

individual income tax return.

 

     (3) An amount equal to the cumulative amounts credited under

 

subsection (1) each year shall be appropriated annually from the

 

general fund of this state to the fund to be available beginning

 

January 1 and continuing through December 31 of each election year.

 

     Sec. 94. (1) To be eligible for certification, a participating

 

candidate shall meet both of the following requirements:

 

     (a) He or she shall only collect and spend seed money

 

contributions during the qualifying period.

 

     (b) He or she shall not make or cause an expenditure to be

 

made from private money deposited to his or her candidate committee

 

during the current election cycle and before filing a declaration

 

of intent under subsection (3).

 

     (2) A certified candidate shall not collect or spend a seed

 

money contribution after certification.

 

     (3) A participating candidate shall file a declaration of

 

intent to seek certification under section 97 and to comply with

 

the requirements of the public campaign funding law. Using forms

 


and procedures developed by the secretary of state, the candidate

 

shall file the declaration of intent with the secretary of state

 

before or during the qualifying period, except as otherwise

 

provided by rule for a special election, vacancy, recount,

 

withdrawal, or replacement. A participating candidate shall file a

 

declaration of intent before he or she collects seed money or a

 

qualifying contribution.

 

     Sec. 95. (1) After becoming a candidate and before becoming a

 

certified candidate, a participating candidate shall not accept a

 

contribution except for a seed money contribution.

 

     (2) A participating candidate shall limit the candidate's seed

 

money contributions to the following amounts, as applicable:

 

     (a) For a candidate for the office of governor, $100,000.00.

 

     (b) For a candidate for the office of state senator,

 

$10,000.00.

 

     (c) For a candidate for the office of state representative,

 

$5,000.00.

 

     (2) A participating candidate shall obtain qualifying

 

contributions during the qualifying period that meet the following

 

criteria, as appropriate:

 

     (a) For a candidate for the office of governor, at least 5,000

 

verified registered voters of this state must support the candidacy

 

by providing a qualifying contribution to that candidate.

 

     (b) For a candidate for the office of state senator, at least

 

500 verified registered voters from that senatorial district must

 

support the candidate by providing a qualifying contribution to

 

that candidate.

 


     (c) For a candidate for the office of state representative, at

 

least 250 verified registered voters from that representative

 

district must support the candidate by providing a qualifying

 

contribution to that candidate.

 

     (3) A payment, gift, or anything of value shall not be given

 

in exchange for a qualifying contribution.

 

     Sec. 96. A participating candidate shall submit a qualifying

 

contribution and expenditure report to the secretary of state after

 

the qualifying period in compliance with rules promulgated by the

 

secretary of state.

 

     Sec. 97. (1) Upon receipt of a qualifying contribution and

 

expenditure report by a participating candidate, the secretary of

 

state shall determine if the candidate has met all of the following

 

requirements for certification:

 

     (a) Signed and filed a declaration of intent to participate

 

under the public campaign funding law.

 

     (b) Submitted the appropriate number of valid qualifying

 

contributions.

 

     (c) Did not accept contributions, except for seed money

 

contributions.

 

     (d) Submitted the appropriate seed money contribution and

 

expenditure report required under section 94.

 

     (e) Did not make or cause an expenditure to be made from

 

private money deposited in his or her candidate committee during

 

the current election cycle and before filing a declaration of

 

intent to participate under the funding law.

 

     (f) Otherwise met the requirements for participation under the

 


public campaign funding law.

 

     (2) The secretary of state shall certify a participating

 

candidate who complies with the requirements of this section as

 

soon as possible and no later than 3 days after the requirements of

 

subsection (1) are met. The secretary of state shall notify a

 

candidate who has not complied with the requirements of this

 

section that he or she is being denied certification and each

 

reason for that denial as soon as possible and no later than 3 days

 

after the submission of a qualifying contribution and expenditure

 

report.

 

     (3) Upon certification or denial of certification, a candidate

 

shall promptly give to the secretary of state any unspent seed

 

money contributions. As soon as practical after receipt, the

 

secretary of state shall transmit all unspent seed money

 

contributions to the state treasurer for deposit into the fund.

 

     Sec. 98. (1) A certified candidate shall limit the certified

 

candidate's campaign expenditures and obligations, including

 

outstanding obligations, to the money distributed to the certified

 

candidate from the fund. A certified candidate shall not accept a

 

contribution after the conclusion of the qualifying period unless

 

specifically authorized by the secretary of state.

 

     (2) A certified candidate shall use the money under subsection

 

(1) only for campaign-related purposes. The secretary of state

 

shall publish procedures outlining permissible campaign-related

 

expenditures.

 

     Sec. 99. (1) The secretary of state shall direct the state

 

treasurer to distribute to certified candidates money from the fund

 


in amounts determined under section 100 in the following manner:

 

     (a) Within 3 days after certification, for candidates

 

certified before June 16 of the election year, money from the fund

 

shall be distributed as if the candidates are in an uncontested

 

primary election.

 

     (b) Within 3 days after June 16 of the election year, for

 

primary election certified candidates, money from the fund shall be

 

distributed according to whether the candidate is in a contested or

 

uncontested primary election, reduced by any amounts previously

 

distributed under subdivision (a).

 

     (c) Within 3 days after the primary election, for general

 

election certified candidates, money from the fund shall be

 

distributed according to whether the candidate is in a contested

 

general election. Money shall not be distributed to a candidate in

 

an uncontested general election.

 

     (2) The state treasurer shall distribute money from the fund

 

to certified candidates under this section by a mechanism that is

 

expeditious, ensures accountability, and safeguards the integrity

 

of the fund.

 

     Sec. 100. (1) On or before July 1, 2010, and on or before July

 

1 of each second year after 2010, the secretary of state shall

 

determine the amount of money to be distributed to each certified

 

candidate based upon the type of election and office as follows:

 

     (a) For contested primary elections, the amount of money to be

 

distributed is the average amount of campaign expenditures made by

 

each candidate during all contested primary election races for the

 

2 primary elections immediately before the current primary

 


election, as reported in the initial filing period after the

 

primary election for the respective offices of governor, state

 

senator, and state representative.

 

     (b) For uncontested primary elections, the amount of money

 

distributed is the average amount of campaign expenditures made by

 

each candidate during all uncontested primary election races, or

 

for contested races if that amount is lower, for the 2 primary

 

elections immediately before the current primary election, as

 

reported in the initial filing period after the primary election

 

for the respective offices of governor, state senator, and state

 

representative.

 

     (c) For contested general elections, the amount of money

 

distributed is the average amount of campaign expenditures made by

 

each candidate during all contested general election races for the

 

2 general elections immediately before the current general election

 

as reported in the initial filing period after the general election

 

for the respective offices of governor, state senator, and state

 

representative.

 

     (2) If the 2 election cycles immediately before the current

 

election cycle do not contain sufficient electoral data, the

 

secretary of state shall use information from the most recent

 

relevant elections.

 

     Sec. 101. (1) The secretary of state shall review all of the

 

following to make the determination required by subsection (2):

 

     (a) Each campaign statement filed by the candidate committee

 

of a certified candidate.

 

     (b) All independent expenditure reports filed under section 51

 


that report an independent expenditure advocating the election of

 

the certified candidate or the defeat of the certified candidate's

 

opponents.

 

     (c) All documents that show verifiable expenditures for

 

electioneering communications advocating the election of the

 

certified candidate or the defeat of the certified candidate's

 

opponents.

 

     (2) From the documents reviewed under subsection (1), the

 

secretary of state shall determine whether the amount distributed

 

to each certified candidate under section 100 is less than the sum

 

of the following:

 

     (a) The greater of the following:

 

     (i) Total expenditures of the candidate committee of the

 

certified candidate, including, but not limited to, in-kind

 

expenditures.

 

     (ii) Total contributions to the candidate committee of the

 

certified candidate, including, but not limited to, in-kind

 

contributions.

 

     (b) Total debts and obligations owed by the committee of the

 

certified candidate.

 

     (c) The total of all independent expenditures advocating the

 

election of the certified candidate or the defeat of the certified

 

candidate's opponents.

 

     (3) If the secretary of state determines that the amount

 

distributed under section 100 has been exceeded as described in

 

subsection (2), the secretary of state shall immediately issue to

 

each opposing certified candidate an additional amount from the

 


fund, subject to subsection (6), equal to the excess.

 

     (4) The secretary of state shall review all documents that

 

show either of the following made after the closing date of the

 

most recent preelection campaign statement of the candidate

 

committee of a certified candidate to make the determination under

 

subsection (5):

 

     (a) A verifiable contribution to the certified candidate.

 

     (b) A verifiable independent expenditure advocating the

 

election of the certified candidate or the defeat of the certified

 

candidate's opponents.

 

     (5) From the documents reviewed under subsection (4), the

 

secretary of state shall determine whether the total of all

 

verifiable contributions and expenditures exceeds the total of all

 

of the following, and if so shall immediately issue to each

 

opposing certified candidate an additional amount from the fund,

 

subject to subsection (6), equal to the excess:

 

     (a) Participating contributions to the certified candidate.

 

     (b) Distributions to the certified candidate under section 100

 

and this section.

 

     (6) An additional amount provided to an opposing certified

 

candidate under this section shall not exceed 3 times the amount

 

originally distributed under section 100.

 

     Sec. 103. (1) A certified candidate or participating judicial

 

candidate shall report each contribution and expenditure,

 

obligation, and related activity to the secretary of state

 

according to procedures developed by the secretary of state. Upon

 

the filing of a final report after the general election, the

 


candidate shall return unspent money to the secretary of state for

 

deposit in the fund.

 

     (2) In developing the procedures under subsection (1), the

 

secretary of state shall utilize existing campaign reporting

 

procedures, whenever practicable. The secretary of state shall

 

ensure timely public access to campaign finance data and shall

 

utilize electronic means of reporting and storing information. The

 

secretary of state shall develop and make available to a certified

 

or participating judicial candidate the necessary software for

 

filing the reports required under the public campaign funding law

 

by electronic means.

 

     Sec. 105. (1) A candidate who is denied certification as a

 

certified candidate or the opponent of a candidate who is granted

 

certification as a certified candidate may challenge a

 

certification decision by the secretary of state. A challenge shall

 

be conducted in accordance with the following procedure:

 

     (a) The challenger shall appeal to the secretary of state

 

within 3 days after the certification decision. The challenger

 

shall appeal in writing and shall state the reasons for the appeal.

 

     (b) Within 5 days after an appeal is properly made and after

 

notice is given to the challenger and each opponent, the secretary

 

of state shall hold a hearing. The challenger has the burden of

 

providing evidence to demonstrate that the secretary of state's

 

decision was improper. The secretary of state shall rule on the

 

appeal within 3 days after the completion of the hearing.

 

     (c) A challenger or candidate may appeal the decision of the

 

secretary of state under subdivision (b) by commencing an action in

 


the court of claims.

 

     (d) A candidate whose determination by the secretary of state

 

as a certified candidate is revoked on appeal shall return to the

 

secretary of state the unspent money distributed from the fund.

 

     (e) If the secretary of state or court of claims finds that an

 

appeal was made frivolously or to cause delay or hardship, the

 

secretary of state or court may require the moving party to pay

 

costs of the secretary of state, court, and each opposing party, if

 

any.

 

     (2) The administrative procedures act of 1969, 1969 PA 306,

 

MCL 24.201 to 24.328, applies to proceedings under this section.

 

     Sec. 107. The secretary of state shall adopt rules under the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328, to ensure effective administration of the funding law. The

 

secretary of state shall adopt rules including, but not limited to,

 

procedures for all of the following:

 

     (a) Obtaining qualifying contributions.

 

     (b) Certification under section 97.

 

     (c) Circumstances involving a special election, vacancy,

 

recount, withdrawal, or replacement.

 

     (d) Collection of money for the fund.

 

     (e) Distribution of money to a certified candidate.

 

     (f) Return of an unspent fund disbursement.

 

     (g) Compliance with the public campaign funding law.

 

     Sec. 108. (1) A person who violates a provision of the public

 

campaign funding law is subject to a civil fine not to exceed

 

$10,000.00 per violation. This sanction is recoverable in a civil

 


action. A fine paid under this section shall be deposited in the

 

fund.

 

     (2) In addition to a fine, for good cause shown, a certified

 

candidate found in violation of the public campaign funding law may

 

be required to reimburse the fund for money distributed to the

 

certified candidate from the fund.

 

     (3) If the secretary of state makes a determination that a

 

violation of the public campaign funding law has occurred, the

 

secretary of state shall assess a fine and transmit the finding to

 

the attorney general for a decision regarding prosecution.

 

     (4) A person who knowingly violates the public campaign

 

funding law or rules promulgated by the secretary of state or who

 

knowingly makes a false statement in a report required by the

 

public campaign funding law is guilty of a misdemeanor punishable,

 

if the person is an individual, by a fine of not more than

 

$1,000.00 or imprisonment for not more than 90 days, or both, or,

 

if the person is not an individual, by a fine of not more than

 

$10,000.00. If the person described in this subsection is a

 

certified candidate, that person shall reimburse the fund the money

 

distributed to the certified candidate.

 

     (5) The penalties and remedies under the public campaign

 

funding law are cumulative and independent and the use of penalties

 

or remedies, or both, under the public campaign funding law does

 

not prohibit the prosecution of, or an action to recover damages

 

for, conduct proscribed under the public campaign funding law or

 

another applicable law.

 

     Sec. 109. On or before January 30, 2011, and on or before

 


January 30 in every second year after 2011, the secretary of state

 

shall prepare for the committees of both houses of the legislature

 

with jurisdiction over matters relating to campaigns and elections

 

a report documenting, evaluating, and making recommendations

 

relating to the administration, implementation, and enforcement of

 

the public campaign funding law and the fund.

 

     Enacting section 1. Sections 61 to 69 of the Michigan campaign

 

finance act, 1976 PA 388, MCL 169.261 to 169.269, are repealed.