The bill amends the 1939 Public Act 3, which regulates public and private utilities in Michigan, by adding a new section (6bb) that prohibits electric and natural gas utilities, as well as certain covered persons, from making donations or contributions to specific political organizations and committees. These include 501(c)(4) organizations, 527 organizations, candidate committees, political party committees, political committees, independent committees, and separate segregated funds that are controlled or directed by state officials or candidates. The bill also requires utilities to attest that they are in compliance with this section in their general rate case applications and to inform covered persons about the requirements and potential fines for violations.

Violations of this new provision can result in civil fines ranging from five to ten times the amount of the unlawful contribution. Additionally, if a covered person violates this section, the Michigan Public Service Commission may impose further penalties on the associated utility, including the denial of rate increase requests. The bill defines various terms related to the new regulations, including "covered person," "affiliate," and "principal," to clarify the scope of the prohibitions and the responsibilities of the utilities involved. The enactment of this bill is contingent upon the passage of related legislation.

Statutes affected:
House Introduced Bill: 460.1, 460.11