Bill Text: MI SB1022 | 2017-2018 | 99th Legislature | Engrossed

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Bill Title: Campaign finance; committees; procedures for disbursement of terminating candidate committee expenditures; modify, and provide penalties for noncompliance. Amends secs. 5, 7, 21, 24, 44, 45, 51, 52 & 55 of 1976 PA 388 (MCL 169.205 et seq.).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2018-11-08 - Passed Roll Call # 590 Yeas 22 Nays 12 Excused 3 Not Voting 0 [SB1022 Detail]

Download: Michigan-2017-SB1022-Engrossed.html

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SB-1022, As Passed Senate, November 8, 2018

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 1022

 

 

May 22, 2018, Introduced by Senator ROBERTSON and referred to the Committee on Elections and Government Reform.

 

 

 

     A bill to amend 1976 PA 388, entitled

 

"Michigan campaign finance act,"

 

by amending sections 5, 7, 21, 24, 44, 45, 51, 52, and 55 (MCL

 

169.205, 169.207, 169.221, 169.224, 169.244, 169.245, 169.251,

 

169.252, and 169.255), section 5 as amended by 1999 PA 237, section

 

7 as amended by 2001 PA 250, sections 21 and 52 as amended by 2015

 

PA 269, sections 24, 44, 51, and 55 as amended by 2017 PA 119, and

 

section 45 as amended by 1996 PA 590.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

tribe that has been acknowledged, recognized, restored, or

 

reaffirmed as an Indian tribe by the secretary of the interior

 

pursuant to chapter 576, 48 Stat. 984, 25 U.S.C. 461 to 463, 464 to

 

465, 466 to 470, 471 to 472, 473, 474 to 475, 476 to 478, and 479,

 

USC 5101 to 5144, 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 An individual who is appointed to fill a vacancy

 

in a public office that is ordinarily elective holds an elective

 

office. Elective office does not include the office of precinct

 

delegate. Except for the purposes of sections 47, 54, and 55,

 

elective office does not include a school board member in a school

 

district that has a pupil membership of 2,400 or less enrolled on

 

the most recent pupil membership count day. However, elective

 

office includes a school board member in a school district that has

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

 

candidate for the office of school board member in that school

 

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

 

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

 

federal office except for the purposes of section 57.

 

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

 

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

 

this act.

 

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

 

report under this act.

 

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

 

act to receive required statements and reports.

 

     (4) "Financial institution" means that term as defined in

 

section 4 of the Michigan strategic fund act, 1984 PA 270, MCL

 

125.2004.

 

     (5) (4) "Fund raising "Fund-raising event" means an event such

 

as a dinner, reception, testimonial, rally, auction, or similar

 

affair through which contributions are solicited or received by

 

purchase of a ticket, payment of an attendance fee, making a

 

donation, or purchase of goods or services.

 

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

 

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

 

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

 

in exchange.

 

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

 

individual holding elective office as consideration for an

 

appearance, a speech, an article, or any activity related to or

associated with the performance of duties as an elected official.

 

An honorarium does not include any of the following:

 

     (a) Reimbursement for the cost of transportation,

 

accommodations, or meals for the person.individual.

 

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

 

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

 

this state to the person individual holding elective office.

 

     (c) An award.

 

     Sec. 21. (1) A candidate, within 10 days after becoming a

 

candidate, shall form a candidate committee. A person An individual

 

who is a candidate for more than 1 office shall form a candidate

 

committee for each office for which the person individual is a

 

candidate, if at least 1 of the offices is a state elective office.

 

A candidate shall not form more than 1 candidate committee for each

 

office for which the person individual is a candidate.

 

     (2) A candidate committee shall must have a treasurer who is a

 

qualified elector of this state. A candidate may appoint himself or

 

herself as the candidate committee treasurer.

 

     (3) A committee other than a candidate committee shall must

 

have a treasurer who is a qualified elector of this state if the

 

committee conducts business through an office or other facility

 

located in this state.

 

     (4) If a committee is not required to have as its treasurer an

 

individual who is a qualified elector of this state, the committee

 

may have as its treasurer an individual who is a resident of

 

another state. A committee with a nonresident treasurer shall file,

 

with its statement of organization, an irrevocable written

stipulation, signed by the treasurer, agreeing that legal process

 

affecting the committee, served on the secretary of state or an

 

agent designated by the secretary of state, has the same effect as

 

if personally served on the committee. This appointment remains in

 

force as long as any liability of the committee remains outstanding

 

within this state.

 

     (5) If the secretary of state or designated agent of the

 

secretary of state is served with legal process pursuant to under

 

subsection (4), the secretary of state shall promptly notify the

 

committee's treasurer by certified mail at the last known address

 

of the committee shown on the committee's statement of

 

organization.

 

     (6) Except as provided by law, a candidate committee or a

 

committee described in subsection (3) shall have 1 account in a

 

financial institution in this state as an official depository for

 

the purpose of depositing to deposit all contributions received by

 

the committee in the form of or which are converted to money,

 

checks, or other negotiable instruments and for the purpose of

 

making to make all expenditures. The committee shall designate that

 

financial institution as its official depository. The establishment

 

of an account in a financial institution is not required until the

 

committee receives a contribution or makes an expenditure.

 

Secondary Candidate committees shall only use secondary

 

depositories shall be used for the sole purpose of depositing to

 

deposit contributions and promptly transferring transfer the

 

deposits to the committee's official depository, or to deposit the

 

proceeds of a joint fund-raiser under section 44(5) and transfer

each committee's share of any receipts from the joint fund-raiser.

 

A committee described in subsection (3) shall only use secondary

 

depositories for any of the following:

 

     (a) To deposit contributions and promptly transfer the

 

deposits to the committee's official depository.

 

     (b) To deposit the proceeds of a joint fund-raiser under

 

section 44(5) and transfer each committee's share of any receipts

 

from the joint fund-raiser.

 

     (c) To deposit, divide, and transfer contributions that are

 

aggregated with dues or other payments.

 

     (7) Except as provided by law, a committee described in

 

subsection (4) shall have 1 account in a financial institution as

 

its official depository for the purpose of depositing to deposit

 

all contributions received by the committee in the form of or which

 

are converted to money, checks, or other negotiable instruments and

 

for the purpose of making to make all expenditures. The committee

 

shall designate that financial institution as its official

 

depository. The establishment of an account in a financial

 

institution is not required until the committee receives a

 

contribution or makes an expenditure. Secondary A committee

 

described in subsection (4) shall only use secondary depositories

 

shall be used only for the purposes of depositing for any of the

 

following:

 

     (a) To deposit contributions and promptly transferring

 

transfer the deposits to the committee's official depository. , or

 

depositing, dividing, and transferring

 

     (b) To deposit the proceeds of a joint fund-raiser under

section 44(5) and transfer each committee's share of any receipts

 

from the joint fund-raiser.

 

     (c) To deposit, divide, and transfer contributions that are

 

aggregated with dues or other payments.

 

     (8) A committee shall not accept a contribution shall not be

 

accepted and or make an expenditure shall not be made by a if that

 

committee that does not have a treasurer. When the office of

 

treasurer in a candidate committee is vacant, the candidate shall

 

be is the treasurer until the candidate appoints a new treasurer.

 

     (9) An A committee shall not make an expenditure shall not be

 

made by a committee without the authorization of the treasurer or

 

the treasurer's designee. The contributions received or

 

expenditures made by a candidate or an agent of a candidate are

 

considered received or made by the candidate committee.

 

     (10) Contributions received by an individual acting in behalf

 

of a committee shall must be reported promptly to the committee's

 

treasurer not later than 5 days before the closing date of any

 

campaign statement required to be filed by the committee, and shall

 

must be reported to the committee treasurer immediately if the

 

contribution is received less than 5 days before the closing date.

 

     (11) A contribution is considered received by a committee when

 

it is received by the committee treasurer or a designated agent of

 

the committee treasurer although the contribution may not be

 

deposited in the official depository by the reporting deadline.

 

     (12) Contributions received by a committee shall must not be

 

commingled with other funds of an agent of the committee or of any

 

other person. Contributions are not considered to be commingled if

that contribution is either of the following:

 

     (a) A contribution received by a person for transmission to a

 

separate segregated fund as described in section 55(7).

 

     (b) A contribution made by 1 or more persons through a person

 

if all of the following are met:

 

     (i) The individual contribution or aggregated contribution is

 

accompanied by or logically associated with all information

 

required under section 26 for each individual contributor.

 

     (ii) The person making the contribution is the original source

 

of the contribution.

 

     (iii) The contribution is not obtained through use of coercion

 

or physical force, as a condition of employment or membership, or

 

by using or threatening to use job discrimination or financial

 

reprisals.

 

     (iv) Only the person making the contribution exercises any

 

control over the making of, or the amount or recipient of, the

 

contribution.

 

     (v) The contribution is not otherwise prohibited by this act.

 

     (13) A person that violates this section is subject to a civil

 

fine of not more than $1,000.00.

 

     Sec. 24. (1) A committee shall file a statement of

 

organization with the filing officials designated in section 36 to

 

receive the committee's campaign statements. 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 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 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 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 supreme court 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, an independent expenditure 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 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 September 20, 2017 is

 

considered an independent expenditure committee. The secretary of

 

state may amend the statement of organization for any committee

 

affected by this subsection.

 

     Sec. 44. (1) A person shall not make a contribution 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 Except as

 

otherwise provided in section 45(2)(f), a candidate committee shall

 

not make a contribution to or an independent expenditure 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) A candidate committee shall not make a contribution,

 

expenditure, or any other disbursement using money received under

 

section 45(2)(f) for any purpose other than repayment of debts and

 

obligations of the candidate committee existing at the time the

 

contribution is received from the terminating candidate committee.

 

     (4) (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 to deliver 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.

 

     (5) (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.

 

     (6) (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 both.

 

     Sec. 45. (1) A Except as otherwise provided in subsection

 

(2)(f), a person may transfer any unexpended funds money from 1

 

candidate committee to another candidate committee of that person

 

only if the contribution limits prescribed in section 52 or 69 for

 

the candidate committee receiving the funds money are equal to or

 

greater than the contribution limits for the candidate committee

 

transferring the funds money and if the candidate committees are

 

simultaneously held by the same person. The funds money being

 

transferred shall is not be considered a qualifying contribution

 

regardless of the amount of the individual contribution being

 

transferred.

 

     (2) Upon termination of a candidate committee, unexpended

 

funds money in the candidate committee that are not eligible for

transfer to another candidate committee of the person under

 

subsection (1) shall must be disbursed as follows:

 

     (a) Given to a political party committee.

 

     (b) Given to a tax exempt charitable organization, as long as

 

the candidate does not become an officer or director of or receive

 

compensation, either directly or indirectly, from that

 

organization.

 

     (c) Returned to the contributors of the funds money upon

 

termination of the campaign committee.

 

     (d) If the person was a candidate for the office of state

 

representative, given to a house political party caucus committee.

 

     (e) If the person was a candidate for the office of state

 

senator, given to a senate political party caucus committee.

 

     (f) If the person was formerly a candidate for another state

 

elective office, has not again become a candidate for that other

 

state elective office, and the person's candidate committee for

 

that other state elective office has not been terminated, given to

 

that candidate committee for the sole purpose of, and in an amount

 

not to exceed what is necessary for, repaying any outstanding debts

 

and obligations of that committee.

 

     (g) (f) Given to an independent committee or a political

 

committee.

 

     (h) (g) Given to a ballot question committee or an independent

 

expenditure committee.

 

     (3) If the unexpended money of a terminating candidate

 

committee is given to another candidate committee of that person

 

under subsection (2)(f), and that person later becomes a candidate

for the same state elective office for which the candidate

 

committee that received the unexpended money was formed, the

 

secretary of state may assess a civil fine against that committee,

 

or any new committee formed by that candidate for the same elective

 

office if the original committee has been terminated, in an amount

 

not to exceed the amount of the unexpended money received by the

 

committee.

 

     (4) In addition to any other penalties under this section, a

 

person who knowingly violates this section is guilty of a

 

misdemeanor punishable by the following:

 

     (a) If the person is an individual, by imprisonment for not

 

more than 90 days or a fine of not more than $1,000.00, or both.

 

     (b) If the person is not an individual, by a fine of not more

 

than $10,000.00.

 

     Sec. 51. (1) A person, other than a committee, that makes an

 

independent expenditure, advocating the election or defeat of a

 

candidate 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 for judicial office, or for 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 required under this

section must be made on an independent expenditure report form

 

provided by the secretary of state, 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 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. 52. (1) Except as provided in subsection (5) or (11) and

 

subject to section 46 and subsection (8), a person other than an

 

independent committee or a political party committee shall not make

 

contributions to a candidate committee of a candidate for elective

office that, with respect to an election cycle, are more than the

 

following:

 

     (a) $6,800.00 for a candidate for state elective office other

 

than the office of state legislator, or for a candidate for local

 

elective office if the district from which he or she is seeking

 

office has a population of more than 250,000.

 

     (b) $2,000.00 for a candidate for state senator, or for a

 

candidate for local elective office if the district from which he

 

or she is seeking office has a population of more than 85,000 but

 

250,000 or less.

 

     (c) $1,000.00 for a candidate for state representative, or for

 

a candidate for local elective office if the district from which he

 

or she is seeking office has a population of 85,000 or less.

 

     (2) Except as otherwise provided in this subsection and

 

subsection (12), an independent committee shall not make

 

contributions to a candidate committee of a candidate for elective

 

office that, in the aggregate for that election cycle, are more

 

than 10 times the amount permitted a person other than an

 

independent committee or political party committee in subsection

 

(1). A house political party caucus committee or a senate political

 

party caucus committee is not limited under this subsection in the

 

amount of contributions made to the candidate committee of a

 

candidate for the office of state legislator, except as follows:

 

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

 

political party caucus committee shall not pay a debt incurred by a

 

candidate if that debt was incurred while the candidate was seeking

 

nomination at a primary election and the candidate was opposed at

that primary.

 

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

 

political party caucus committee shall not make a contribution to

 

or make an expenditure on behalf of a candidate if that candidate

 

is seeking nomination at a primary election and the candidate is

 

opposed at that primary.

 

     (3) A political party committee other than a state central

 

committee shall not make contributions to the candidate committee

 

of a candidate for elective office that are more than 10 times the

 

amount permitted a person other than an independent committee or

 

political party committee in subsection (1).

 

     (4) A state central committee of a political party shall not

 

make contributions to the candidate committee of a candidate for

 

state elective office other than a candidate for the legislature

 

that are more than 20 times the amount permitted a person other

 

than an independent committee or political party committee in

 

subsection (1). A state central committee of a political party

 

shall not make contributions to the candidate committee of a

 

candidate for state senator, state representative, or local

 

elective office that are more than 10 times the amount permitted a

 

person other than an independent committee or political party

 

committee in subsection (1).

 

     (5) A contribution from a member of a candidate's immediate

 

family to the candidate committee of that candidate, or a transfer

 

of unexpended candidate committee funds under section 45(2)(f), is

 

exempt from the limitations of subsection (1).

 

     (6) Consistent with the provisions of this section, a

contribution designated in writing for a particular election cycle

 

is considered made for that election cycle. A contribution made

 

after the close of a particular election cycle and designated in

 

writing for that election cycle shall be made only to the extent

 

that the contribution does not exceed the candidate committee's net

 

outstanding debts and obligations from the election cycle so

 

designated. If a contribution is not designated in writing for a

 

particular election cycle, all of the following apply to that

 

contribution:

 

     (a) The contribution is considered made for the election cycle

 

that corresponds to the date of the written instrument.

 

     (b) The contribution limits for the current election cycle

 

apply to that contribution.

 

     (c) A candidate committee may use that contribution to pay

 

outstanding debts and obligations from a previous election cycle

 

regardless of whether the contribution, when aggregated with any

 

contributions made in that previous election cycle, would exceed

 

the contribution limits for that previous election cycle.

 

     (7) A candidate committee, a candidate, or a treasurer or

 

agent of a candidate committee shall not accept a contribution with

 

respect to an election cycle that exceeds the limitations in

 

subsection (1), (2), (3), (4), (11), or (12).

 

     (8) The contribution limits in subsection (1) for a candidate

 

for local elective office are effective on the effective date of

 

the amendatory act that provides for those contribution limits,

 

however, only contributions received by that candidate on and after

 

that date shall be used to determine if the contribution limit has

been reached.

 

     (9) A person who knowingly violates this section is guilty of

 

a misdemeanor punishable, if the person is an individual, by a fine

 

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

 

days, or both, or, if the person is not an individual, by a fine of

 

not more than $10,000.00.

 

     (10) For purposes of the limitations provided in subsections

 

(1) and (2), all contributions made by political committees or

 

independent committees established by any corporation, joint stock

 

company, domestic dependent sovereign, or labor organization,

 

including any parent, subsidiary, branch, division, department, or

 

local unit thereof, shall be are considered to have been made by a

 

single independent committee. By way of illustration and not

 

limitation, all of the following apply as a result of the

 

application of this requirement:

 

     (a) All of the political committees and independent committees

 

established by a for profit corporation or joint stock company, by

 

a subsidiary of the for profit corporation or joint stock company,

 

or by any combination thereof, are treated as a single independent

 

committee.

 

     (b) All of the political committees and independent committees

 

established by a single national or international labor

 

organization, by a labor organization of that national or

 

international labor organization, by a local labor organization of

 

that national or international labor organization, or by any other

 

subordinate organization of that national or international labor

 

organization, or by any combination thereof, are treated as a

single independent committee.

 

     (c) All of the political committees and independent committees

 

established by an organization of national or international unions,

 

by a state central body of that organization, by a local central

 

body of that organization, or by any combination thereof, are

 

treated as a single independent committee.

 

     (d) All of the political committees and independent committees

 

established by a nonprofit corporation, by a related state entity

 

of that nonprofit corporation, by a related local entity of that

 

nonprofit corporation, or by any combination thereof, are treated

 

as a single independent committee.

 

     (11) The limitation on a political committee's contributions

 

under subsection (1) does not apply to contributions that are part

 

of 1 or more bundled contributions delivered to the candidate

 

committee of a candidate for statewide elective office and that are

 

attributed to the political committee as prescribed in section 31.

 

A political committee shall not make contributions to a candidate

 

committee of a candidate for statewide elective office that are

 

part of 1 or more bundled contributions delivered to that candidate

 

committee, that are attributed to the political committee as

 

prescribed in section 31, and that, in the aggregate for that

 

election cycle, are more than the amount permitted a person other

 

than an independent committee or political party committee in

 

subsection (1).

 

     (12) The limitation on an independent committee's

 

contributions under subsection (2) does not apply to contributions

 

that are part of 1 or more bundled contributions delivered to the

candidate committee of a candidate for statewide elective office

 

and that are attributed to the independent committee as prescribed

 

in section 31. An independent committee shall not make

 

contributions to a candidate committee of a candidate for statewide

 

elective office that are part of 1 or more bundled contributions

 

delivered to that candidate committee, that are attributed to the

 

independent committee as prescribed in section 31, and that, in the

 

aggregate for that election cycle, are more than 10 times the

 

amount permitted a person other than an independent committee or

 

political party committee in subsection (1).

 

     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 shall

 

must 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 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. A connected

 

organization may transfer any such contributions that it collects,

 

individually or aggregated, to the separate segregated fund

 

electronically or by written instrument. Any transfer 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.

 

     (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 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 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 connected organization is subject to a

civil fine 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 before those

 

contributions are transferred to the separate segregated fund under

 

subsection (7).

 

     (11) As used in this section:

 

     (a) "Connected organization" means 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.

 

     (ii) A member of any 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,

 

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.