Bill Text: MI SB0638 | 2015-2016 | 98th Legislature | Engrossed

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Bill Title: Campaign finance; other; general amendments to the Michigan campaign finance act; provide for. Amends secs. 3, 5, 9, 11, 24, 33, 35, 47, 51, 54 & 55 of 1976 PA 388 (MCL 169.203 et seq.) & adds sec. 24b.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2015-12-09 - Referred To Committee On Elections [SB0638 Detail]

Download: Michigan-2015-SB0638-Engrossed.html

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SB-0638, As Passed Senate, December 9, 2015

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 638

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1976 PA 388, entitled

 

"Michigan campaign finance act,"

 

by amending sections 3, 5, 9, 11, 33, 35, 54, and 55 (MCL 169.203,

 

169.205, 169.209, 169.211, 169.233, 169.235, 169.254, and 169.255),

 

sections 3, 11, and 35 as amended by 2012 PA 273, section 5 as

 

amended by 1999 PA 237, section 9 as amended by 2012 PA 275,

 

sections 33 and 55 as amended by 2013 PA 252, and section 54 as

 

amended by 1995 PA 264, and by adding section 24b.

 

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 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. An individual, other than a candidate, does not

 

constitute a committee. A person, other than a committee registered

 

under this act, making an expenditure a contribution to a ballot

 

question committee or an independent expenditure committee, shall

 

not, for that reason, 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 or independent expenditure committee.

 

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

 

tribe that has been acknowledged, recognized, restored, or

 

reaffirmed as an Indian tribe by the secretary of the interior

 

pursuant to chapter 576, 48 Stat. 984, 25 U.S.C. USC 461 to 463,

 

464 to 465, 466 to 470, 471 to 472, 473, 474 to 475, 476 to 478,

 

and 479, 494a, commonly referred to as the Indian reorganization

 

act, or has otherwise been acknowledged by the United States

 

government as an Indian tribe.

 

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

 

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

 

political party held in this state to nominate a candidate.

 

Election includes a recall vote.

 

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

 

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

 

following the last general election in which the office appeared on

 

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

 

the office next appears on the ballot.

 

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

 

special general election is called or the date the office becomes

 

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

 

general election.

 

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

 

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

 

office that is ordinarily elective holds an elective office.

 

Elective office does not include the office of precinct delegate.

 

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

 

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

 

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

 

pupil membership count day. However, elective office includes a

 

school board member in a school district that has a pupil

 

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

 

candidate for the office of school board member in that school

 

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

 

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

 

federal office except for the purposes of section 57.

 

     Sec. 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 and if the expenditure is not a

 

contribution to a committee.in concert or cooperation 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 is not a contribution made

 

directly to a candidate committee or a political party committee.

 

     (3) "Independent expenditure committee" means a committee that

 

receives contributions and makes independent expenditures pursuant

 

to this act, expenditures authorized under this act, or

 

disbursements not prohibited by 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 part.

 

     (6) (5) "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 recorder's court of the city of Detroit, judge of the

 

district court, judge of the probate court, and judge of a

 

municipal court.

 

     (7) (6) "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, domestic dependent sovereign, 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, 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.

 

     (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. 24b. (1) One or more persons may create and maintain an

 

independent expenditure committee and shall file a statement of

 

organization under section 24.

 

     (2) If a person that creates an independent expenditure

 

committee under subsection (1) is a corporation, joint stock

 

company, domestic dependent sovereign, or labor organization, the

 

name of the independent expenditure committee shall contain the

 

name of the person, or its acronym if that acronym reasonably

 

identifies the person creating the committee.

 

     (3) In addition to any independent expenditures, an

 

independent expenditure committee may make unlimited contributions

 

to another independent expenditure committee, to a ballot question

 

committee, to a person or account not subject to this act, or for

 

any other lawful purpose.

 

     (4) 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.

 

     (5) An independent expenditure committee may use an attorney

 

or other vendor that is also used by a ballot question committee,

 

candidate, candidate committee, or political party committee that

 

is the subject or beneficiary of the independent expenditure,

 

without defeating the independent nature of the independent

 

expenditure, if the attorney or vendor does not convey material

 

information to the independent expenditure committee about the

 

campaign plans, projects, activities, or needs of the ballot

 

question committee, candidate, candidate committee, or political

 

party committee. As used in this subsection, "material information"

 

means information that is material to the creation, production, or

 

distribution of the independent expenditure by the independent

 

expenditure committee.

 

     (6) An independent expenditure is not precluded under any of

 

the following:

 

     (a) Where a candidate or his or her agent, a candidate

 

committee or its agent, or a political party committee or its agent

 

solicits contributions on behalf of a person that may finance

 

independent expenditures on behalf of candidates and political

 

parties, including the candidate or political party soliciting

 

contributions on behalf of that person.

 

     (b) Where an independent expenditure committee or a person

 

engages agents or vendors of candidates, candidate committees, or

 

political party committees to assist that independent expenditure

 

committee or person in areas unrelated to preparing an independent

 

expenditure subject to this act, including, but not limited to,

 

agents or vendors providing fund-raising, legal, accounting, studio

 

rental, and other services unrelated to preparing an independent

 

expenditure subject to this act.

 

     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 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 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) In a year in which there is no election for the candidate

 

the 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 February 15 of each year with a closing

 

date of February 10 of that year.

 

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

 

date of April 20 of that year.

 

     (b) (c) Not later than July 25 of each year with a closing

 

date of July 20 of that year.

 

     (c) (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.

 

     (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, independent expenditure

 

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) 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.

 

     (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 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, an independent expenditure 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 under this subsection begins the day after

 

the closing date of the previous campaign statement. A campaign

 

statement filed 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 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. 54. (1) Except with respect to the exceptions and

 

conditions in subsections (2), and (3), and (4) and section 55, and

 

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 pursuant to 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 pursuant to under section 4(3)(a).

 

     (3) A corporation, joint stock company, domestic dependent

 

sovereign, or labor organization may make a contribution to a

 

ballot question 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 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.

 

     (4) A corporation, joint stock company, domestic dependent

 

sovereign, or labor organization may do any of the following:

 

     (a) Make an independent expenditure.

 

     (b) Make a contribution to an independent expenditure

 

committee.

 

     (c) Make an expenditure for the establishment or

 

administration of, or solicitation of contributions to, an

 

independent expenditure committee in any amount.

 

     (5) A corporation, joint stock company, domestic dependent

 

sovereign, or labor organization that itself makes an independent

 

expenditure under subsection (4) does not for this reason become a

 

committee but shall file a report of any independent expenditure in

 

accordance with section 51. A corporation, joint stock company,

 

domestic dependent sovereign, or labor organization that makes a

 

contribution to an independent expenditure committee, or an

 

expenditure for the establishment or administration of, or

 

solicitation of funds to, an independent expenditure committee, has

 

no reporting obligations under this act.

 

     (6) (4) 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 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 may make an expenditure for the

 

establishment and administration of, and solicitation of

 

contributions to, a separate segregated fund to be used for

 

political purposes. A separate segregated fund established under

 

this section shall be limited to making 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 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 corporation organized on a

 

for profit or nonprofit basis, a joint stock company, a domestic

 

dependent sovereign, or a labor 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

 

corporation organized on a for profit or nonprofit basis, a joint

 

stock company, a domestic dependent sovereign, or a labor

 

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 at least once in every calendar year.

 

     (7) 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.

 

     (8) If a corporation, joint stock company, domestic dependent

 

sovereign, or labor 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 organization is subject to a civil

 

fine equal to 2 times the total contributions obtained from all

 

individuals for the separate segregated fund during that calendar

 

year.