HB-5059, As Passed Senate, June 13, 2012

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5059

A bill to amend 1976 PA 388, entitled

"Michigan campaign finance act,"

by amending sections 3, 4, 6, 11, 33, and 35 (MCL 169.203, 169.204,

169.206, 169.211, 169.233, and 169.235), section 3 as amended by

1989 PA 95, sections 4, 6, and 11 as amended by 2012 PA 31, section

33 as amended by 1999 PA 238, and section 35 as amended by 2000 PA

75.

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 whose nomination is

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

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), an individual

shall form a candidate committee ~~pursuant to~~ under section 21 ~~when~~

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

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

statement is required to be complete.

(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, or the qualification of a new political

party, 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. 4. (1) "Contribution" means a payment, gift,

subscription, assessment, expenditure, contract, payment for

services, dues, advance, forbearance, loan, or donation of money or

anything of ascertainable monetary value, or a transfer of anything

of ascertainable monetary value to a person, made for the purpose

of influencing the nomination or election of a candidate, or for

the qualification, passage, or defeat of a ballot question, or for

the qualification of a new political party.

(2) Contribution includes the full purchase price of tickets

or payment of an attendance fee for events such as dinners,

luncheons, rallies, testimonials, and other fund-raising events; an

individual's own money or property other than the individual's

homestead used on behalf of that individual's candidacy; the

granting of discounts or rebates not available to the general

public; or the granting of discounts or rebates by broadcast media

and newspapers not extended on an equal basis to all candidates for

the same office; and the endorsing or guaranteeing of a loan for

the amount the endorser or guarantor is liable. Except for the

purposes of section 57, contribution does not include a

contribution to a federal candidate or a federal committee.

(3) Contribution does not include any of the following:

(a) Volunteer personal services provided without compensation,

or payments of costs incurred of less than $500.00 in a calendar

year by an individual for personal travel expenses if the costs are

voluntarily incurred without any understanding or agreement that

the costs shall be, directly or indirectly, repaid.

(b) Food and beverages, not to exceed $100.00 in value during

a calendar year, which are donated by an individual and for which

reimbursement is not given.

unconditionally rejected, returned, or refunded in whole or in part

within 30 business days after receipt.

Sec. 6. (1) "Expenditure" means a payment, donation, loan, or

promise of payment of money or anything of ascertainable monetary

value for goods, materials, services, or facilities in assistance

of, or in opposition to, the nomination or election of a candidate,

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

the qualification of a new political party. Expenditure includes,

but is not limited to, any of the following:

(a) A contribution or a transfer of anything of ascertainable

monetary value for purposes of influencing the nomination or

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

of a ballot question, or the qualification of a new political

party.

(b) Except as provided in subsection (2)(f) or (g), an

expenditure for voter registration or get-out-the-vote activities

made by a person who sponsors or finances the activity or who is

identified by name with the activity.

expenditure made for poll watchers, challengers, distribution of

election day literature, canvassing of voters to get out the vote,

or transporting voters to the polls.

(d) Except as provided in subsection (2)(c), the cost of

establishing and administering a payroll deduction plan to collect

and deliver a contribution to a committee.

(2) Expenditure does not include any of the following:

(a) An expenditure for communication by a person with the

person's paid members or shareholders and those individuals who can

be solicited for contributions to a separate segregated fund under

section 55.

(b) An expenditure for communication on a subject or issue if

the communication does not support or oppose a ballot question or

candidate by name or clear inference.

solicitation of contributions to a separate segregated fund if that

expenditure was made by the person who established the separate

segregated fund as authorized under section 55.

(d) An expenditure by a broadcasting station, newspaper,

magazine, or other periodical or publication for a news story,

commentary, or editorial in support of or opposition to a candidate

for elective office or a ballot question in the regular course of

publication or broadcasting.

(e) An offer or tender of an expenditure if expressly and

unconditionally rejected or returned.

(f) An expenditure for nonpartisan voter registration or

nonpartisan get-out-the-vote activities made by an organization

that is exempt from federal income tax under section 501(c)(3) of

the internal revenue code of 1986, 26 USC 501, or any successor

statute.

(g) An expenditure for nonpartisan voter registration or

nonpartisan get-out-the-vote activities performed under chapter

XXIII of the Michigan election law, 1954 PA 116, MCL 168.491 to

168.524, by the secretary of state and other registration officials

who are identified by name with the activity.

(h) An expenditure by a state central committee of a political

party or a person controlled by a state central committee of a

political party for the construction, purchase, or renovation of 1

or more office facilities in Ingham county if the facility is not

constructed, purchased, or renovated for the purpose of influencing

the election of a candidate in a particular election. Items

excluded from the definition of expenditure under this subdivision

include expenditures approved in federal election commission

advisory opinions 1993-9, 2001-1, and 2001-12 as allowable

expenditures under the federal election campaign act of 1971,

Public Law 92-225, 2 USC 431 to 457, and regulations promulgated

under that act, regardless of whether those advisory opinions have

been superseded.

(i) Except for the purposes of section 57, an expenditure to

or for a federal candidate or a federal committee.

Sec. 11. (1) "Payroll deduction plan" means any system in

which an employer deducts any amount of money from the wages,

earnings, or compensation of an employee.

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

candidate committee, political party committee, independent

committee, or ballot question committee.

(4) "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 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, or in supporting or opposing the

qualification of a new political party.

(5) "Political party" means a political party that has a right

under law to have the names of its candidates listed on the ballot

in a general election.

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

district, or county committee of a political party or a party

attempting to qualify as a new political party under section 685 of

the Michigan election law, 1954 PA 116, MCL 168.685, 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) "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.

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. 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:

(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~~ that 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.~~

(a) Not later than February 15 of each year with a closing

date of February 10 of that year.

(b) Not later than April 25 of each year with a closing date

of April 20 of that year.

July 20 of that year.

(d) Not later than October 25 of each year with a closing date

of October 20 of that year.

(4) A house political party caucus committee or a senate

political party caucus committee required to file with the

secretary of state or a political party committee for a party

attempting to qualify as a new political party under section 685 of

the Michigan election law, 1954 PA 116, MCL 168.685, 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.

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.

(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) 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 this act.

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

designated as responsible for the committee's record keeping,

report preparation, or report filing 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.

10 business days the report remains unfiled.

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

as responsible for the committee's record keeping, report

preparation, or report filing 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.

(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.

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

as responsible for a committee's record keeping, report

preparation, or report filing 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.

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

as responsible for a committee's record keeping, report

preparation, or report filing knowingly omits or underreports

individual contributions or individual expenditures required to be

disclosed by this act, that individual is subject to a civil fine

of not more than $1,000.00 or the amount of the contributions and

expenditures omitted or underreported, whichever is greater.

(12) If a candidate committee's account has a balance of

$20,000.00 or more and a candidate, treasurer, or other individual

designated as responsible for that committee's record keeping,

report preparation, or report filing fails to file campaign

statements required under this act for 2 consecutive years, that

candidate, treasurer, or other individual is guilty of a felony

punishable by imprisonment for not more than 3 years or a fine of

not more than $5,000.00, or both. Any money in a candidate

committee account described in this subsection is subject to

seizure by, and forfeiture to, this state as provided in this

section.

(13) Not more than 5 business days after seizure of money

under subsection (12), the secretary of state shall deliver

personally or by registered mail to the last known address of the

candidate from whom the seizure was made an inventory statement of

the money seized. The inventory statement shall also contain notice

to the effect that unless demand for hearing as provided in this

section is made within 10 business days, the money is forfeited to

this state. Within 10 business days after the date of service of

the notice, the candidate may by registered mail, facsimile

transmission, or personal service file with the secretary of state

a demand for a hearing before the secretary of state or a person

designated by the secretary of state for a determination as to

whether the money was lawfully subject to seizure and forfeiture.

The candidate is entitled to appear before the secretary of state

or a person designated by the secretary of state, to be represented

by counsel, and to present testimony and argument. Upon receipt of

a request for hearing, the secretary of state or a person

designated by the secretary of state shall hold the hearing within

15 business days. The hearing is not a contested case proceeding

and is not subject to the administrative procedures act of 1969,

1969 PA 306, MCL 24.201 to 24.328. After the hearing, the secretary

of state or a person designated by the secretary of state shall

render a decision in writing within 10 business days of the hearing

and, by order, shall either declare the money subject to seizure

and forfeiture or declare the money returnable to the candidate.

If, within 10 business days after the date of service of the

inventory statement, the candidate does not file with the secretary

of state a demand for a hearing before the secretary of state or a

person designated by the secretary of state, the money seized is

forfeited to this state by operation of law. If, after a hearing

before the secretary of state or a person designated by the

secretary of state, the secretary of state or a person designated

by the secretary of state determines that the money is lawfully

subject to seizure and forfeiture and the candidate does not appeal

to the circuit court of the county in which the seizure was made

within the time prescribed in this section, the money seized is

forfeited to this state by operation of law. If a candidate is

aggrieved by the decision of the secretary of state or a person

designated by the secretary of state, that candidate may appeal to

the circuit court of the county where the seizure was made to

obtain a judicial determination of the lawfulness of the seizure

and forfeiture. The action shall be commenced within 20 days after

notice of a determination by the secretary of state or a person

designated by the secretary of state is sent to the candidate. The

court shall hear the action and determine the issues of fact and

law involved in accordance with rules of practice and procedure as

in other in rem proceedings.

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

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

independent committee or a political committee required to file

with the secretary of state, shall also file a campaign statement

not later than January 31 of each year. The campaign statement

shall have a closing date of December 31 of the previous year. The

period covered by the campaign statement filed ~~pursuant to~~ under

this subsection begins the day after the closing date of the

previous campaign statement. A campaign statement filed ~~pursuant to~~

under this subsection shall be waived if a postelection campaign

statement has been filed that has a filing deadline within 30 days

of the closing date of the campaign statement required by this

subsection.

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

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

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

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

expenditure during the time that would be otherwise covered in the

statement.

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

designated as responsible for the record keeping, report

preparation, or report filing for a candidate committee of a

candidate for state elective office or a judicial office who fails

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

late filing fee. If the committee has raised $10,000.00 or less

during the previous 2 years, the late filing fee shall be $25.00

for each business day the campaign statement remains unfiled, but

not to exceed $500.00. If the committee has raised more than

$10,000.00 during the previous 2 years, the late filing fee shall

be $50.00 for each business day the campaign statement remains

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

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

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

committee, treasurer, or other individual designated as responsible

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

committee other than a candidate committee of a candidate for state

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

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

for each business day the campaign statement remains not filed in

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

$500.00.

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

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

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

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

the committee is then subject to the campaign filing requirements

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

beginning the day after the closing date of the last postelection

campaign statement or an annual campaign statement that is waived

~~pursuant to~~ under subsection (1), whichever occurred earlier.

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

as responsible for the record keeping, report preparation, or

report filing fails to file 2 statements required by this section

or section 33 and both of the statements remain unfiled for more

than 30 days, that candidate, treasurer, or other designated

individual is guilty of a misdemeanor, punishable by a fine of not

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

both.

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

as responsible for the record keeping, report preparation, or

report filing for a committee required to file a campaign statement

House Bill No. 5059 as amended June 12, 2012

under subsection (1) knowingly files an incomplete or inaccurate

statement or report required by this section, that ~~treasurer or~~

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

than $1,000.00.

Enacting section 1. This amendatory act does not take effect

unless Senate Bill No. 753 of the 96th Legislature is enacted into

law.

<<Enacting section 2. This amendatory act takes effect December 30, 2012.>>