HOUSE BILL NO. 4870
June 28, 2023, Introduced by Reps. Bollin, Smit, Phil Green, Roth, Harris, Wozniak, DeSana,
DeBoyer, Prestin and Beson and referred to the Committee on Government Operations.
A bill to amend 1976 PA 388, entitled
"Michigan campaign finance act,"
by amending sections 3, 11, 12, 21, 24, and 52 (MCL 169.203,
169.211, 169.212, 169.221, 169.224, and 169.252), sections 3 and 11
as amended by 2017 PA 119, sections 12, 21, and 24 as amended by
2019 PA 93, and section 52 as amended by 2015 PA 269, and by adding
section 21b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 3. (1) "Candidate" means an individual who meets 1 or
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1 more of the following criteria:
2 (a) Files a fee, an affidavit of incumbency, or a nominating
3 petition for an elective office.
4 (b) Is nominated as a candidate for elective office by a
5 political party caucus or convention and whose nomination is
6 certified to the appropriate filing official.
7 (c) Receives a contribution, makes an expenditure, or gives
8 consent for another person to receive a contribution or make an
9 expenditure with a view to bringing about the individual's
10 nomination or election to an elective office, whether or not the
11 specific elective office for which the individual will seek
12 nomination or election is known at the time the contribution is
13 received or the expenditure is made.
14 (d) Is an officeholder who is the subject of a recall
15 vote.candidate.
16 (e) Holds an elective office, unless the officeholder is
17 constitutionally or legally barred from seeking reelection or fails
18 to file for reelection to that office by the applicable filing
19 deadline. An individual described in this subdivision is considered
20 to be a candidate for reelection to that same office for the
21 purposes of this act only.
22 For purposes of sections 61 to 71, "candidate" only means, in
23 a primary election, a candidate for the office of governor and, in
24 a general election, a candidate for the office of governor or
25 lieutenant governor. However, the candidates for the office of
26 governor and lieutenant governor of the same political party in a
27 general election are considered as 1 candidate.
28 (2) "Candidate committee" means the committee designated in a
29 candidate's filed statement of organization as that individual's
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1 candidate committee. A candidate committee must be under the
2 control and direction of the candidate named in the same statement
3 of organization. Notwithstanding subsection (4), an individual,
4 except for a recall candidate, shall form a candidate committee
5 under section 21 if the individual becomes a candidate under
6 subsection (1).
7 (3) "Closing date" means the date through which a campaign
8 statement is required to be complete.
9 (4) "Committee" means a person that receives contributions or
10 makes expenditures for the purpose of influencing or attempting to
11 influence the action of the voters for or against the nomination or
12 election of a candidate, the qualification, passage, or defeat of a
13 ballot question, or the qualification of a new political party, if
14 contributions received total $500.00 or more in a calendar year or
15 expenditures made total $500.00 or more in a calendar year. Except
16 as restricted or prohibited by this act or other state or federal
17 law, a committee may also make other lawful disbursements. An
18 individual, other than a candidate, does not constitute a
19 committee. A person, other than a committee registered under this
20 act, making an expenditure to a ballot question committee or an
21 independent expenditure committee, shall is not, for that reason,
22 be considered a committee or be required to file a report for the
23 purposes of this act unless the person solicits or receives
24 contributions for the purpose of making an expenditure to that
25 ballot question committee or independent expenditure committee.
26 Sec. 11. (1) "Payroll deduction plan" means any system in
27 which an employer deducts any amount of money from the wages,
28 earnings, or compensation of an employee.
29 (2) "Person" means a business, individual, proprietorship,
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1 limited liability company, firm, partnership, joint venture,
2 syndicate, business trust, labor organization, company,
3 corporation, association, committee, or any other organization or
4 group of persons acting jointly.
5 (3) "Political committee" means a committee that is not a
6 candidate committee, recall committee, political party committee,
7 house or senate political party caucus committee, independent
8 committee, independent expenditure committee, or ballot question
9 committee.
10 (4) "Political merchandise" means goods such as bumper
11 stickers, pins, hats, beverages, literature, or other items sold by
12 a person at a fund raiser or to the general public for publicity or
13 for the purpose of raising funds to be used in supporting or
14 opposing a candidate for nomination for or election to an elective
15 office, in supporting or opposing the qualification, passage, or
16 defeat of a ballot question, or in supporting or opposing the
17 qualification of a new political party.
18 (5) "Political party" means a political party that has a right
19 under law to have the names of its candidates listed on the ballot
20 in a general election.
21 (6) "Political party committee" means a state central,
22 district, or county committee of a political party or a party
23 attempting to qualify as a new political party under section 685 of
24 the Michigan election law, 1954 PA 116, MCL 168.685, that is a
25 committee. Each state central committee shall designate the
26 official party county and district committees. There must not be
27 more than 1 officially designated political party committee per
28 county and per congressional district.
29 (7) "Public body" means 1 or more of the following:
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1 (a) A state agency, department, division, bureau, board,
2 commission, council, authority, or other body in the executive
3 branch of state government.
4 (b) The legislature or an agency, board, commission, or
5 council in the legislative branch of state government.
6 (c) A county, city, township, village, intercounty, intercity,
7 or regional governing body; a council, school district, special
8 district, or municipal corporation; or a board, department,
9 commission, or council or an agency of a board, department,
10 commission, or council.
11 (d) Any other body that is created by state or local authority
12 or is primarily funded by or through state or local authority, if
13 the body exercises governmental or proprietary authority or
14 performs a governmental or proprietary function.
15 Sec. 12. (1) "Qualifying contribution" means a contribution of
16 money made by a written instrument, credit card, or debit card by
17 an individual to the candidate committee of a candidate for the
18 office of governor that is $100.00 or less and made after April 1
19 of the year preceding a year in which a governor is to be elected.
20 Not more than $100.00 of an individual's total aggregate
21 contribution may be used as a qualifying contribution in a calendar
22 year. Qualifying contribution does not include a subscription,
23 loan, advance, deposit of money, in-kind contribution or
24 expenditure, or anything else of value except as prescribed in this
25 act. Qualifying contribution does not include a contribution by an
26 individual who resides outside of this state. For purposes of this
27 subsection, an individual is considered to reside in this state if
28 he or she the individual is considered a resident of this state
29 under the Michigan election law, 1954 PA 116, MCL 168.1 to 168.992.
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1 (2) "Recall candidate" means an officeholder for whom a recall
2 petition has been determined to be valid for circulation under
3 section 951a(8) or 952(8) of the Michigan election law, 1954 PA
4 116, MCL 168.951a and 168.952.
5 (3) "Recall committee" means the committee designated in a
6 recall candidate's filed statement of organization as that
7 individual's recall committee.
8 (4) (2) "Senate political party caucus committee" means an
9 independent committee established by a political party caucus of
10 the state senate under section 24a.
11 (5) (3) "State elective office" means a statewide elective
12 office or the office of state legislator.
13 (6) (4) "Statewide elective office" means the office of
14 governor, lieutenant governor, secretary of state, or attorney
15 general, justice of the supreme court, member of the state board of
16 education, regent of the University of Michigan, member of the
17 board of trustees of Michigan State University, or member of the
18 board of governors of Wayne State University.
19 Sec. 21. (1) A candidate, except for a recall candidate,
20 within 10 days after becoming a candidate, shall form a candidate
21 committee. An individual who is a candidate for more than 1 office
22 shall form a candidate committee for each office for which the
23 individual is a candidate, if at least 1 of the offices is a state
24 elective office. A candidate shall not form more than 1 candidate
25 committee for each office for which the individual is a candidate.
26 (2) A candidate committee must have a treasurer who is a
27 qualified elector of this state. A candidate may appoint himself or
28 herself the candidate as the candidate committee treasurer.
29 (3) A committee other than a candidate committee or a recall
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1 committee must have a treasurer who is a qualified elector of this
2 state if the committee conducts business through an office or other
3 facility located in this state.
4 (4) If a committee is not required to have as its treasurer an
5 individual who is a qualified elector of this state, the committee
6 may have as its treasurer an individual who is a resident of
7 another state. A committee with a nonresident treasurer shall file,
8 with its statement of organization, an irrevocable written
9 stipulation, signed by the treasurer, agreeing that legal process
10 affecting the committee, served on the secretary of state or an
11 agent designated by the secretary of state, has the same effect as
12 if personally served on the committee. This appointment remains in
13 force as long as any liability of the committee remains outstanding
14 within this state.
15 (5) If the secretary of state or designated agent of the
16 secretary of state is served with legal process under subsection
17 (4), the secretary of state shall promptly notify the committee's
18 treasurer by certified mail at the last known address of the
19 committee shown on the committee's statement of organization.
20 (6) Except as provided by law, a candidate committee or a
21 committee described in subsection (3) shall have 1 account in a
22 financial institution in this state as an official depository to
23 deposit all contributions received by the committee in the form of
24 or which are converted to money, checks, or other negotiable
25 instruments and to make all expenditures. The committee shall
26 designate that financial institution as its official depository.
27 The establishment of an account in a financial institution is not
28 required until the committee receives a contribution or makes an
29 expenditure. Candidate committees shall only use secondary
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1 depositories to deposit contributions and promptly transfer the
2 deposits to the committee's official depository, or to deposit the
3 proceeds of a joint fund-raiser under section 44(4) and transfer
4 each committee's share of any receipts from the joint fund-raiser.
5 A committee described in subsection (3) shall only use secondary
6 depositories for any of the following:
7 (a) To deposit contributions and promptly transfer the
8 deposits to the committee's official depository.
9 (b) To deposit the proceeds of a joint fund-raiser under
10 section 44(4) and transfer each committee's share of any receipts
11 from the joint fund-raiser.
12 (c) To deposit, divide, and transfer contributions that are
13 aggregated with dues or other payments.
14 (7) Except as provided by law, a committee described in
15 subsection (4) shall have 1 account in a financial institution as
16 its official depository to deposit all contributions received by
17 the committee in the form of or which are converted to money,
18 checks, or other negotiable instruments and to make all
19 expenditures. The committee shall designate that financial
20 institution as its official depository. The establishment of an
21 account in a financial institution is not required until the
22 committee receives a contribution or makes an expenditure. A
23 committee described in subsection (4) shall only use secondary
24 depositories for any of the following:
25 (a) To deposit contributions and promptly transfer the
26 deposits to the committee's official depository.
27 (b) To deposit the proceeds of a joint fund-raiser under
28 section 44(4) and transfer each committee's share of any receipts
29 from the joint fund-raiser.
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1 (c) To deposit, divide, and transfer contributions that are
2 aggregated with dues or other payments.
3 (8) A committee shall not accept a contribution or make an
4 expenditure if that committee does not have a treasurer. When the
5 office of treasurer in a candidate committee is vacant, the
6 candidate is the treasurer until the candidate appoints a new
7 treasurer.
8 (9) A committee shall not make an expenditure without the
9 authorization of the treasurer or the treasurer's designee. The
10 contributions received or expenditures made by a candidate or an
11 agent of a candidate are considered received or made by the
12 candidate committee.
13 (10) Contributions received by an individual acting in behalf
14 of a committee must be reported promptly to the committee's
15 treasurer not later than 5 days before the closing date of any
16 campaign statement required to be filed by the committee, and must
17 be reported to the committee treasurer immediately if the
18 contribution is received less than 5 days before the closing date.
19 (11) A contribution is considered received by a committee when
20 it is received by the committee treasurer or a designated agent of
21 the committee treasurer although the contribution may not be
22 deposited in the official depository by the reporting deadline.
23 (12) Contributions received by a committee must not be
24 commingled with other funds of an agent of the committee or of any
25 other person. Contributions are not considered to be commingled if
26 that contribution is either of the following:
27 (a) A contribution received by a person for transmission to a
28 separate segregated fund as described in section 55(7).
29 (b) A contribution made by 1 or more persons through a person
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1 if all of the following are met:
2 (i) The individual contribution or aggregated contribution is
3 accompanied by or logically associated with all information
4 required under section 26 for each individual contributor.
5 (ii) The person making the contribution is the original source
6 of the contribution.
7 (iii) The contribution is not obtained through use of coercion
8 or physical force, as a condition of employment or membership, or
9 by using or threatening to use job discrimination or financial
10 reprisals.
11 (iv) Only the person making the contribution exercises any
12 control over the making of, or the amount or recipient of, the
13 contribution.
14 (v) The contribution is not otherwise prohibited by this act.
15 (13) A person that violates this section is subject to a civil
16 fine of not more than $1,000.00.
17 Sec. 21b. (1) A recall candidate, within 10 days after
18 becoming a recall candidate, shall form a recall committee. An
19 individual shall not form more than 1 recall committee and shall
20 not form a recall committee until that individual becomes a recall
21 candidate.
22 (2) A recall committee must have a treasurer who is a
23 qualified elector of this state. A candidate may appoint the
24 candidate as the recall committee treasurer.
25 (3) Except as provided by law, a recall committee shall have 1
26 account in a financial institution in this state