Bill Text: MI SB0335 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Campaign finance; independent expenditures; general amendments to the Michigan campaign finance act; provide for. Amends secs. 3, 4, 6, 9, 11, 17, 26, 33, 35, 51, 54 & 55 of 1976 PA 388 (MCL 169.203 et seq.) & adds secs. 24b & 24c.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2017-09-26 - Assigned Pa 0119'17 With Immediate Effect [SB0335 Detail]
Download: Michigan-2017-SB0335-Engrossed.html
SB-0335, As Passed House, September 19, 2017
SB-0335, As Passed Senate, September 14, 2017
SUBSTITUTE FOR
SENATE BILL NO. 335
A bill to amend 1976 PA 388, entitled
"Michigan campaign finance act,"
by amending sections 3, 4, 6, 9, 11, 17, 24, 26, 33, 35, 44, 51,
54, and 55 (MCL 169.203, 169.204, 169.206, 169.209, 169.211,
169.217, 169.224, 169.226, 169.233, 169.235, 169.244, 169.251,
169.254, and 169.255), sections 3 and 11 as amended by 2012 PA 273,
sections 4, 6, 9, 24, 33, 35, 54, and 55 as amended by 2015 PA 269,
sections 17 and 51 as amended by 1989 PA 95, section 26 as amended
by 2013 PA 252, and section 44 as amended by 1994 PA 411, and by
adding sections 24b and 24c.
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) Files a fee, an affidavit of incumbency, or a nominating
petition for an elective office.
(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) 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.
(d) Is an officeholder who is the subject of a recall vote.
(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 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 are 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 must 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 under section 21 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 that 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, 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. Except as restricted or prohibited by this act or
other state or federal law, a committee may also make other lawful
disbursements. 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 or an independent expenditure committee, shall not, for
that reason, be considered a committee or be required to file a
report 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 or independent expenditure
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, 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 $1,000.00 in value
during a calendar year, that are donated by an individual and for
which reimbursement is not given.
(c) An offer or tender of a contribution if expressly and
unconditionally rejected, returned, or refunded in whole or in part
within 30 business days after receipt.
(d) A contribution or expenditure for the establishment or
administration of, or solicitation, collection, or transfer of
contributions to, a separate segregated fund if that contribution
or
expenditure was made by the person that established the a
connected organization of that separate segregated fund as
authorized
under section 55. , or was made by a person that is a
member
of a nonprofit corporation that established the separate
segregated
fund as authorized under section 55.
(e) An independent expenditure.
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,
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, 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.
(c) Except as provided in subsection (2)(f) or (g), an
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.
(c) An expenditure for the establishment or administration of,
or solicitation, collection, or transfer of contributions to, a
separate
segregated fund if that expenditure was made by the person
that
established the a connected
organization of that separate
segregated
fund as authorized under section 55.
, or made by a
person
who is a member of a nonprofit corporation that 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, 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, 52
USC 30101 to 30146, and regulations promulgated under that act,
regardless of whether those advisory opinions have been superseded.
(i) Except only for the purposes of section 57, an expenditure
to or for a federal candidate or a federal committee.
(j) Except only for the purposes of section 47, an expenditure
for a communication if the communication does not in express terms
advocate the election or defeat of a clearly identified candidate
so as to restrict the application of this act to communications
containing express words of advocacy of election or defeat, such as
"vote for", "elect", "support", "cast your ballot for", "Smith for
governor", "vote against", "defeat", or "reject".
Sec. 9. (1) "Incidental expense" means an expenditure that is
an ordinary and necessary expense, paid or incurred in carrying out
the business of an elective office. Incidental expense includes,
but is not limited to, any of the following:
(a) A disbursement necessary to assist, serve, or communicate
with a constituent.
(b) A disbursement for equipment, furnishings, or supplies for
the office of the public official.
(c) A disbursement for a district office if the district
office is not used for campaign-related activity.
(d) A disbursement for the public official or his or her
staff, or both, to attend a conference, meeting, reception, or
other similar event.
(e) A disbursement to maintain a publicly owned residence or a
temporary residence at the seat of government.
(f) An unreimbursed disbursement for travel, lodging, meals,
or other expenses incurred by the public official, a member of the
public official's immediate family, or a member of the public
official's staff in carrying out the business of the elective
office.
(g) A donation to a tax-exempt charitable organization,
including the purchase of tickets to charitable or civic events.
(h) A disbursement to a ballot question committee.
(i) A purchase of tickets for use by that public official and
members of his or her immediate family and staff to a fund-raising
event sponsored by a candidate committee, independent committee,
political party committee, or a political committee that does not
exceed $100.00 per committee in any calendar year.
(j) A disbursement for an educational course or seminar that
maintains or improves skills employed by the public official in
carrying out the business of the elective office.
(k) A purchase of advertisements in testimonials, program
books, souvenir books, or other publications if the advertisement
does not support or oppose the nomination or election of a
candidate.
(l) A disbursement for consultation, research, polling, and
photographic services not related to a campaign.
(m) A fee paid to a fraternal, veteran, or other service
organization.
(n) A payment of a tax liability incurred as a result of
authorized transactions by the candidate committee of the public
official.
(o) A fee for accounting, professional, or administrative
services for the candidate committee of the public official.
(p) A debt or obligation incurred by the candidate committee
of a public official for a disbursement authorized by subdivisions
(a) to (o), if the debt or obligation was reported in the candidate
committee report filed for the year in which the debt or obligation
arose.
(2) "Independent expenditure" means an expenditure by a person
if
the expenditure is not made at the direction of, or under the
control
of, another person in
cooperation, consultation, or concert
with, or at the request or suggestion of, a ballot question
committee or a candidate, a candidate committee or its agents, or a
political party committee or its agents, and if the expenditure is
not a contribution to a committee.
(3) "Independent expenditure committee" means a committee
formed under section 24b for the purpose of making independent
expenditures pursuant to this act.
(4) (3)
"In-kind contribution or
expenditure" means a
contribution or expenditure other than money.
(5) (4)
"Loan" means a transfer
of money, property, or
anything of ascertainable monetary value in exchange for an
obligation, conditional or not, to repay in whole or in part.
(6) (5)
"Local ballot question"
means a ballot question of a
local unit of government to be voted upon in that local unit of
government.
(7) (6)
"Local elective office"
means an elective office at
the local unit of government level. Local elective office also
includes judge of the court of appeals, judge of the circuit court,
judge of the district court, judge of the probate court, and judge
of a municipal court.
(8) (7)
"Local unit of
government" means a district,
authority, county, city, village, township, board, school district,
intermediate school district, or community college district.
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,
limited liability company, 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, house or senate
political party caucus committee, independent committee,
independent expenditure 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, 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 must 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.
(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, if
the body exercises governmental or proprietary authority or
performs a governmental or proprietary function.
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.
(2)
The late filing fees collected pursuant to under sections
24,
33, 34, and 35, and 51, and copying charges collected pursuant
to
under section 16, shall must be
retained by and for the use of
the filing officials collecting the fees or charges to cover their
expenses in administering this act. A late filing fee assessed by a
county
clerk that remains unpaid for more than 60 days shall be is
considered
a debt of the county, and shall be collected by the
county treasurer shall collect that fee 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
must 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 under
sections 24, 33, 34, and 35, if
all of the following conditions are met:
(a) A committee required to register as a committee fails to
file a statement of organization.
(b) The secretary of state sends to that 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
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 for
subsection
(3) shall must 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 under
sections 24, 33, 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. 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. A committee shall file
a statement of organization within 10 days after the 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 must 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 to be filed under
subsection (1) must include the following information:
(a) The name, street address, and if available, the electronic
mail address and telephone number of the committee, and the
electronic mail address of the candidate. If a committee is a
candidate
committee, the committee name shall must 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, and if available, the electronic
mail address and 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, a
local ballot question, 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, independent
expenditure 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.
(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. The treasurer
of a committee of an incumbent judge or justice is considered to
have made the statement required under this subsection following
appointment or election of that judge or justice and is not
required to file a written statement under this subsection
indicating that the committee does not expect for each election to
receive 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.
Dissolution
of a committee shall must 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 under
subsection (5) or that is considered to have made a statement under
subsection (5) is not required to file a dissolution statement
under subsection (7) if the committee failed to 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.
(9) A political committee organized for the purpose of making
independent expenditures formed before the effective date of the
amendatory act that added this subsection is considered an
independent expenditure committee. The secretary of state may amend
the statement of organization for any committee affected by this
subsection.
Sec. 24b. (1) One or more persons may create an independent
expenditure committee and shall file a statement of organization
under section 24. An independent expenditure committee shall file
campaign statements under sections 33 and 35 and as otherwise
provided in this act.
(2) An independent expenditure committee may receive
contributions from any person, except a person prohibited from
making a contribution under 52 USC 30121. An independent
expenditure committee shall return a contribution made by a person
prohibited from making a contribution under this subsection within
30 business days after receiving that contribution.
(3) In addition to any independent expenditures or other
disbursements not prohibited by this act or any other law, an
independent expenditure committee may make contributions to another
independent expenditure committee or to a ballot question
committee.
(4) An independent expenditure committee shall not make a
contribution to a candidate committee, independent committee,
political committee, political party committee, or house or senate
political party caucus committee.
(5) An individual who knowingly violates or causes a person to
violate subsection (4) 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. A person that violates subsection (4) that is
not an individual is subject to 1 of the following, whichever is
greater:
(a) A fine of not more than $20,000.00.
(b) A fine of not more than triple the amount of the improper
contribution or expenditure.
Sec. 24c. (1) If the independent nature of an independent
expenditure is defeated, the resulting contribution is punishable
as follows:
(a) For an independent expenditure committee or its agent,
under section 24b(5) if the resulting contribution violates section
24b(4).
(b) For an entity described under section 54(1) or a person
acting for any such entity under section 54(2), under section 54(5)
if the resulting contribution violates section 54.
(c) For any other person, as otherwise provided for a
violation of this act.
(2) The independent nature of an independent expenditure is
not defeated under any of the following:
(a) Where a person making an independent expenditure related
to a ballot question committee, candidate, candidate committee, or
political party committee engages an attorney, vendor, or other
agent that is also or has been engaged by that candidate or
committee, if the attorney, vendor, or other agent does not do any
of the following:
(i) For the creation, production, or distribution of a
communication, convey information to the person making the
communication about the campaign plans, projects, activities, or
needs of that candidate or committee that he or she also provides
or has provided services for and that has been obtained from that
candidate or committee or its agents.
(ii) For the creation, production, or distribution of a
communication, use any information about the campaign plans,
projects, activities, or needs of that candidate or committee that
he or she also provides or has provided services for and that has
been obtained from that candidate or committee or its agents.
(iii) Convey information about the creation, production, or
distribution of the communication to the candidate or committee
that he or she also provides or has provided services for.
(b) Where a candidate, candidate committee, political party
committee, or an agent of the candidate or any such committee,
solicits contributions on behalf of an independent expenditure
committee, but does not request or suggest action by, or further
cooperate, consult, act in concert, or otherwise coordinate in any
way with the independent expenditure committee related to any
independent expenditure made on behalf of that candidate or
committee. This subdivision does not preserve the independent
nature of an independent expenditure if the independent expenditure
committee makes independent expenditures during an election cycle
related solely to 1 candidate, and that candidate, that candidate's
candidate committee, or that candidate's agent solicits funds on
the independent expenditure committee's behalf.
Sec. 26. (1) A campaign statement of a committee, other than a
political
party committee, required by this act shall must contain
all of the following information:
(a) The filing committee's name, address, and telephone
number, and the full name, residential and business addresses,
electronic mail address, and telephone numbers of the committee
treasurer or other individual designated as responsible for the
committee's record keeping, report preparation, or report filing.
(b) Under the heading "receipts", the total amount of
contributions received during the period covered by the campaign
statement; under the heading "expenditures", the total amount of
expenditures made during the period covered by the campaign
statement; and the cumulative amount of those totals. Forgiveness
of
a loan shall must not be included in the totals. Payment of a
loan
by a third party shall must
be recorded and reported as an in-
kind contribution by the third party. In-kind contributions or
expenditures
shall must be listed at fair market value and shall be
reported as both contributions and expenditures. A contribution or
expenditure that is by other than completed and accepted payment,
gift, or other transfer, that is clearly not legally enforceable,
and that is expressly withdrawn or rejected and returned before a
campaign statement closing date need not be included in the
campaign statement and if included may, in a later or amended
statement, be shown as a deduction, but the committee shall keep
adequate records of each instance.
(c) The balance of cash on hand at the beginning and the end
of the period covered by the campaign statement.
(d) The following information regarding each fund-raising
event
shall must be included in the report:
(i) The type of event, date held, address and name, if any, of
the place where the activity was held, and approximate number of
individuals participating or in attendance.
(ii) The total amount of all contributions.
(iii) The gross receipts of the fund-raising event.
(iv) The expenditures incident to the event.
(e) The full name of each individual from whom contributions
are received during the period covered by the campaign statement,
together with the individual's street address, the amount
contributed, the date on which each contribution was received, and
the cumulative amount contributed by that individual. The
occupation,
employer, and principal place of business shall must be
stated if the individual's cumulative contributions are more than
$100.00. For contributions of $5.00 or less by an individual to a
political committee or independent committee, the secretary of
state shall accept for filing any written communication from the
political committee or independent committee that contains the
information
otherwise required under this subsection. Any such
written communication under this subdivision does not need to
contain an original signature.
(f) The cumulative amount contributed and the name and address
of each individual, except those individuals reported under
subdivision (e), who contributed to the committee. The occupation,
employer,
and principal place of business shall must be stated for
each individual who contributed more than $100.00.
(g) The name and street address of each person, other than an
individual, from whom contributions are received during the period
covered by the campaign statement, together with an itemization of
the amounts contributed, the date on which each contribution was
received, and the cumulative amount contributed by that person.
(h) The name, address, and amount given by an individual who
contributed to the total amount contributed by a person who is
other than a committee or an individual. The occupation, employer,
and
principal place of business shall must be stated if the
individual contributed more than $100.00 of the total amount
contributed by a person who is other than a committee or an
individual.
(i)
The cumulative total of expenditures of and other
disbursements totaling $50.00 or less to any person made during the
period covered by the campaign statement except for expenditures
made to or on behalf of another committee, candidate, or ballot
question.
(j) The full name and street address of each person to whom
expenditures or other disbursements totaling more than $50.00 were
made, together with the amount of each separate expenditure or
disbursement to each person during the period covered by the
campaign statement; the purpose of the expenditure or disbursement;
the full name and street address of the person providing the
consideration for which any expenditure or disbursement was made if
different from the payee; the itemization regardless of amount of
each expenditure made to or on behalf of another committee,
candidate, or ballot question; and the cumulative amount of
expenditures for or against that candidate or ballot question for
an election cycle. An expenditure made in support of more than 1
candidate
or ballot question, or both, shall must be apportioned
reasonably among the candidates or ballot questions, or both.
(2) A candidate committee or ballot question committee shall
report all cumulative amounts required by this section on a per
election
cycle basis. Except for as
provided in subsection (1)(j),
an independent committee, independent expenditure committee, or
political committee shall report all cumulative amounts required by
this section on a calendar year basis.
(3) A campaign statement of a committee, in addition to the
other
information required by this section, shall must include
an
itemized list of all expenditures during the reporting period for
election day busing of electors to the polls, get-out-the-vote
activities, slate cards, challengers, poll watchers, and poll
workers.
(4) For a reporting period in which a contribution is received
that is to be part of a bundled contribution or a reporting period
in which a bundled contribution is delivered to the candidate
committee of a candidate for statewide elective office, a bundling
committee shall report to the secretary of state, on a form
provided by the secretary of state, all of the following
information, as applicable, about each contribution received or
delivered as part of a bundled contribution, and about each bundled
contribution delivered, in the reporting period:
(a) The amount of each contribution, the date it was received
by the bundling committee, and the candidate for statewide elective
office whom the contributor designated as the intended recipient.
(b) Each contributor's name and address and, for each
contribution exceeding $100.00, the contributor's occupation,
employer, and principal place of business.
(c) The date each contribution is delivered to the candidate's
statewide elective office candidate committee.
(d) The total amount of bundled contributions delivered to
that candidate committee during the reporting period and during the
election cycle.
(5) With its delivery of a bundled contribution to the
candidate committee of a candidate for statewide elective office, a
bundling committee shall deliver a report to that candidate
committee, on a form provided by the secretary of state, that
includes all of the following information, as applicable, about
each contribution delivered as part of the bundled contribution,
and about all bundled contributions delivered to that candidate
committee in the election cycle:
(a) The amount of each contribution, the date it was received
by the bundling committee, and the statewide elective office
candidate the contributor designated as the intended recipient.
(b) Each contributor's name and address and, for each
contribution exceeding $100.00, the contributor's occupation,
employer, and principal place of business.
(c) The total amount of bundled contributions delivered to
that candidate committee during the reporting period and during the
election cycle.
(6) For a reporting period in which a bundled contribution is
received, a candidate committee of a candidate for statewide
elective office shall report to the secretary of state, on a form
provided by the secretary of state, all of the following
information, as applicable, about each contribution delivered as
part of a bundled contribution received in the reporting period and
about all bundled contributions received by that candidate
committee:
(a) The amount of each contribution, the date it was received
by the candidate committee, and the name of the bundling committee
that delivered the contribution.
(b) Each contributor's name and address and, for each
contribution exceeding $100.00, the contributor's occupation,
employer, and principal place of business.
(c) The total amount of bundled contributions received by that
candidate committee during the reporting period and during the
election cycle.
Sec. 33. (1) A committee, other than an independent committee,
an independent expenditure 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 must be filed not
later than the eleventh day before an election. The closing date
for
a campaign statement filed under this subdivision shall be is
the sixteenth day before the election.
(b)
A postelection campaign statement shall must be filed not
later than the thirtieth day following the election. The closing
date
for a campaign statement filed under this subdivision shall be
is 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 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.
(c) For candidate committees only, in a year in which there is
no election for the candidate the candidate committee is supporting
or opposing:
(i) Not later than July 25 with a closing date of July 20 of
that year.
(ii) Not later than October 25 with a closing date of October
20 of that year.
(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, an independent expenditure
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) Not later than April 25 of each year with a closing date
of April 20 of that year.
(b) Not later than July 25 of each year with a closing date of
July 20 of that year.
(c) 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.
(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, an independent expenditure
committee, or a political committee required to file a campaign
statement with the secretary of state, the committee shall file 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 must be made on a form provided by the secretary of
state and must 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 must
include either the name of the candidate and the office sought by
the candidate or the name of the ballot question and 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) or that is automatically considered to have made a
statement under section 24(5) 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 is
$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 must
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.
(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
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 must 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 must
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 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
has a closing date of December 31 of the previous year.
The
period covered by the campaign statement filed under this
subsection begins the day after the closing date of the previous
campaign statement. A campaign statement filed under this
subsection is 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 is $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
is $50.00 for each business day the campaign statement
remains
unfiled, but not to exceed $1,000.00. The candidate shall pay 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 must
not exceed $500.00.
(4) A committee filing a written statement 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 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
under subsection (1) knowingly files an incomplete or inaccurate
statement or report required by this section, that individual is
subject to a civil fine of not more than $1,000.00.
Sec.
44. (1) A person shall not make a
contribution shall not
be
made by a person to another person
with the agreement or
arrangement that the person receiving the contribution will then
transfer that contribution to a particular candidate committee.
(2) Except as otherwise provided in this section and sections
21a, 45, and 71, a candidate committee shall not make an
expenditure or other disbursement except to further the nomination
or election of the candidate for which it is formed. A candidate
committee shall not make a contribution to or an independent
expenditure
in on behalf of another candidate committee. This
subsection does not prohibit the purchase of tickets to another
candidate committee's fund-raising event that does not exceed
$100.00 per candidate committee in any calendar year.
(3) An individual, other than a committee treasurer or the
individual designated as responsible for the record keeping, report
preparation, or report filing for a committee, who obtains
possession of a committee's contribution for the purpose of
delivering the contribution to another committee shall deliver the
contribution to that committee, that committee's treasurer, or that
committee's agent, or return the contribution to the payor, not
later than 10 business days after obtaining possession of the
contribution.
(4) Two or more persons, other than individuals, may hold a
joint fund-raiser if the receipts and expenses of the fund-raiser
are shared proportionately.
(5) A person who knowingly violates this section is guilty of
a misdemeanor punishable by imprisonment for not more than 90 days
or
a fine of not more than $1,000.00, or
imprisonment for not more
than
90 days, or both.
Sec.
51. (1) A person, other than a committee, who that makes
an independent expenditure, advocating the election or defeat 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 after making that
independent expenditure, with the clerk of the county of residence
of that person. If the independent expenditure advocates the
election or defeat of a candidate for state elective office or the
qualification, passage, or defeat of a statewide ballot question,
or if the person making the independent expenditure is not a
resident of this state, the person shall file the report with the
secretary of state in lieu of filing with a clerk of a county. The
report
shall required under this
section must 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 the name, address,
occupation, employer, and principal place of business of each
person
who that contributed $100.01 or more to the expenditure, and
identify the candidate or ballot question for or against which the
independent expenditure was made. The filing official receiving the
report shall forward copies, as required, to the appropriate filing
officers as described in section 36.
(2) If a person fails to file a report as required under this
section, that person shall pay a late filing fee. If the person has
made independent expenditures totaling less than $10,000.00, the
late filing fee is $25.00 for each business day the report remains
unfiled, but not to exceed $1,000.00. If the person has made
independent expenditures totaling $10,000.00 or more, the late
filing fee is $50.00 for each business day the report remains
unfiled, but not to exceed $5,000.00. A person that violates this
subsection by failing to file a report required under this section
for more than 30 days after the report is required to be filed is
guilty of a misdemeanor punishable by imprisonment for not more
than 90 days or a fine of not more than $1,000.00, or both.
Sec.
54. (1) Except with respect to the exceptions and
conditions
in subsections (2) and (3) as
otherwise provided in this
section and section 55, and except with respect to loans made in
the ordinary course of business, a corporation, joint stock
company, domestic dependent sovereign, or labor organization shall
not make a contribution or expenditure or provide volunteer
personal services that are excluded from the definition of a
contribution under section 4(3)(a).
(2) An officer, director, stockholder, attorney, agent, or any
other person acting for a labor organization, a domestic dependent
sovereign, or a corporation or joint stock company, whether
incorporated under the laws of this or any other state or foreign
country, except corporations formed for political purposes, shall
not make a contribution or expenditure or provide volunteer
personal services that are excluded from the definition of a
contribution under section 4(3)(a).
(3) Except for expenditures made by a corporation in the
ordinary course of its business, an expenditure made by a
corporation to provide for the collection and transfer of
contributions to another separate segregated fund not established
by that corporation, or to a separate segregated fund not connected
to a nonprofit corporation of which the corporation is a member,
constitutes an in-kind contribution by the corporation and is
prohibited under this section. Advanced payment or reimbursement to
a corporation by a separate segregated fund not established by that
corporation, or by a separate segregated fund not connected to a
nonprofit corporation of which the corporation is a member, does
not cure a use of corporate resources otherwise prohibited by this
section.
(4) A corporation, joint stock company, domestic dependent
sovereign, or labor organization may make a contribution to a
ballot question committee or independent expenditure committee
subject to this act. A corporation, joint stock company, domestic
dependent sovereign, or labor organization may make an independent
expenditure
in any amount for advocating
for the election or defeat
of a candidate, or the qualification, passage, or defeat of a
ballot
question . A corporation, joint stock company, domestic
dependent
sovereign, or labor organization that makes an
independent
expenditure under this subsection is considered a
ballot
question committee for the purposes of this act.and does not
for this reason become a committee, unless it solicits or receives
contributions in excess of $500.00 for the purpose of making the
independent expenditure, but is subject to the independent
expenditure reporting requirements of section 51.
(5) A person who knowingly violates this section is guilty of
a felony punishable, if the person is an individual, by a fine of
not more than $5,000.00 or imprisonment for not more than 3 years,
or both, or, if the person is not an individual, by a fine of not
more than $10,000.00.
Sec. 55. (1) A connected organization may make an expenditure
for the establishment or administration of, and solicitation,
collection, or transfer of contributions to, a separate segregated
fund to be used for political purposes. A separate segregated fund
established
by a connected organization under this section is
limited
to making shall be organized
as a political committee or an
independent committee, and, in addition to any other disbursements
not restricted or prohibited by law, shall only make contributions
to, and expenditures on behalf of, candidate committees, ballot
question committees, political party committees, political
committees, independent expenditure committees, independent
committees, and other separate segregated funds.
(2) Contributions for a separate segregated fund established
by a corporation, organized on a for profit basis, or a joint stock
company under this section may be solicited from any of the
following persons or their spouses:
(a) Stockholders of the corporation or company.
(b) Officers and directors of the corporation or company.
(c) Employees of the corporation or company who have policy
making, managerial, professional, supervisory, or administrative
nonclerical responsibilities.
(3) Contributions for a separate segregated fund established
under this section by a corporation organized on a nonprofit basis
may be solicited from any of the following persons or their
spouses:
(a) Members of the corporation who are individuals.
(b) Stockholders or members of members of the corporation.
(c) Officers or directors of members of the corporation.
(d) Employees of the members of the corporation who have
policy making, managerial, professional, supervisory, or
administrative nonclerical responsibilities.
(e) Employees of the corporation who have policy making,
managerial, professional, supervisory, or administrative
nonclerical responsibilities.
(4) Contributions for a separate segregated fund established
under this section by a labor organization may be solicited from
any of the following persons or their spouses:
(a) Members of the labor organization who are individuals.
(b) Officers or directors of the labor organization.
(c) Employees of the labor organization who have policy
making, managerial, professional, supervisory, or administrative
nonclerical responsibilities.
(5) Contributions for a separate segregated fund established
under this section by a domestic dependent sovereign may be
solicited from an individual who is a member of any domestic
dependent sovereign.
(6)
Contributions shall must not be obtained for a separate
segregated fund established under this section by use of coercion
or physical force, by making a contribution a condition of
employment or membership, or by using or threatening to use job
discrimination or financial reprisals. A connected organization
shall not solicit or obtain contributions for a separate segregated
fund established under this section from an individual described in
subsection (2), (3), (4), or (5) on an automatic or passive basis
including but not limited to a payroll deduction plan or reverse
checkoff method. A connected organization may solicit or obtain
contributions for a separate segregated fund established under this
section from an individual described in subsection (2), (3), (4),
or (5) on an automatic basis, including but not limited to a
payroll deduction plan, only if the individual who is contributing
to the fund affirmatively consents to the contribution.
(7) A contribution by an individual to a separate segregated
fund that is aggregated with a dues or other payment to the
connected organization may be collected by or made payable first to
the connected organization for subsequent transfer to the separate
segregated fund if all of the following occur:
(a) The individual making the contribution does either of the
following:
(i) Specifically indicates in a record or electronic record
that the amount collected, or a specified portion of the total
amount if remitted as part of a dues or other payment to the
connected organization, is a contribution to the separate
segregated fund.
(ii) Fails to return a record or electronic record described
in subparagraph (i), but remits payment to the connected
organization in response to a specifically requested amount that
includes a solicited contribution, the solicitation for a
contribution was clearly distinguishable from any dues or other
fees requested as part of the total, and the connected organization
maintains a record or electronic record of the solicitation that
includes the amount of the solicited contribution and the amount of
any dues or other fees charged in conjunction with the solicitation
for each contributor.
(b) The connected organization transfers the entire specified
amount of any designated contribution, individually or aggregated
with other contributions, to the separate segregated fund
electronically or by written instrument. Any transfer of designated
contributions
shall must be accompanied by or logically associated
with a record or electronic record setting forth all information
required under section 26 for each individual contributor whose
contribution is transferred.
(c) The connected organization accounts for any contributions
under this subsection in a manner that documents all of the
following:
(i) The identity of the individual contributor.
(ii) The date, amount, and method of receipt for each
individual contribution.
(iii) The date, amount, and method of all transfers to the
separate segregated fund.
(d) The connected organization and the separate segregated
fund adopt a written policy governing the handling, accounting, and
transfer of any contribution under this subsection.
(e) In connection with an investigation or hearing under
section 15 regarding any contributions under this subsection, the
connected organization voluntarily agrees to make available to the
secretary of state any records described in subdivisions (a) to (d)
and provides those records at the request of the secretary of
state.
(8) Except as otherwise provided in subsection (10), a person
who knowingly violates this section is guilty of a felony
punishable, if the person is an individual, by a fine of not more
than $5,000.00 or imprisonment for not more than 3 years, or both,
or, if the person is not an individual, by a fine of not more than
$10,000.00.
(9)
If a corporation, joint stock company, domestic dependent
sovereign,
or labor connected organization that obtains
contributions for a separate segregated fund from individuals
described in subsection (2), (3), (4), or (5) pays to 1 or more of
those individuals a bonus or other remuneration for the purpose of
reimbursing
those contributions, then that corporation, joint stock
company,
domestic dependent sovereign, or labor connected
organization
is subject to a civil fine equal to of not more than 2
times the total contributions obtained from all individuals for the
separate segregated fund during that calendar year.
(10) If a violation of this section results solely from the
failure of a connected organization to transfer 1 or more
contributions, that connected organization is not guilty of a
felony as described in subsection (8), but shall notify the
contributor of the failure to transfer the contribution and refund
the full amount of the contribution to the contributor if
requested. The penalties described in subsection (8) apply to any
other violation of this section, including use or diversion of any
contributions
by a connected organization for a purpose not
described
in subsection (7) before those
contributions are
transferred to the separate segregated fund under subsection (7).
(11) As used in this section:
(a)
"Connected organization" means a either of the following:
(i) A corporation organized on a for-profit or nonprofit
basis, a joint stock company, a domestic dependent sovereign, or a
labor organization formed under the laws of this or another state
or
foreign country. , or a
(ii) A member
of any such entity under
subparagraph (i) that
is not an individual and that does not maintain its own separate
segregated fund, unless its separate segregated fund and the
separate segregated fund of the entity of which it is a member are
treated as a single independent committee as provided in section
52(10).
(b) "Record" and "electronic record" mean those terms as
defined in section 2 of the uniform electronic transactions act,
2000 PA 305, MCL 450.832.
(c) "Written instrument" means a money order, or a check,
Senate Bill No. 335 as amended September 6, 2017
cashier's check, or other negotiable instrument, as those terms are
defined in section 3104 of the uniform commercial code, 1962 PA
174, MCL 440.3104, in the name of the connected organization and
payable to the separate segregated fund.
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