Bill Text: MI HB5451 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Campaign finance; committees; term-limited official's candidate committees; require dissolution. Amends secs. 24, 45, 52 & 69 of 1976 PA 388 (MCL 169.224 et seq.).

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2009-09-23 - Printed Bill Filed 09/23/2009 [HB5451 Detail]

Download: Michigan-2009-HB5451-Introduced.html

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HOUSE BILL No. 5451

 

September 22, 2009, Introduced by Reps. Knollenberg, Bledsoe and Walsh and referred to the Committee on Ethics and Elections.

 

     A bill to amend 1976 PA 388, entitled

 

"Michigan campaign finance act,"

 

by amending sections 24, 45, 52, and 69 (MCL 169.224, 169.245,

 

169.252, and 169.269), section 24 as amended by 1999 PA 237,

 

section 45 as amended by 1996 PA 590, and sections 52 and 69 as

 

amended by 2001 PA 250.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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 statement of

 

organization shall be filed within 10 days after a committee is

 

formed. A filing official shall maintain a statement of

 

organization filed by a committee until 5 years after the official

 

date of the committee's dissolution. A person who fails to file a

 

statement of organization required by this subsection shall pay a

 

late filing fee of $10.00 for each business day the statement

 

remains not filed in violation of this subsection. The late filing

 

fee shall 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 by subsection (1)

 

shall include the following information:

 

     (a) The name, street address, and if available, the telephone

 

number of the committee. If a committee is a candidate committee,

 

the committee name shall 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 telephone

 

number of the treasurer or other individual designated as

 

responsible for the committee's record keeping, report preparation,

 

or report filing.

 

     (c) The name and address of the financial institution in which

 

the official committee depository is or is intended to be located,

 

and the name and address of each financial institution in which a

 

secondary depository is or is intended to be located.

 

     (d) The full name of the office being sought by, including

 

district number or jurisdiction, and the county residence of each

 

candidate supported or opposed by the committee.

 

     (e) A brief statement identifying the substance of each ballot

 

question supported or opposed by the committee. If the ballot

 

question supported or opposed by the committee is not statewide,

 

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, 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. An independent

 

committee or political committee whose name does not include the

 

name of the person or persons that sponsor the committee or with

 

whom the committee is affiliated as required by subsection (3)

 

shall file an amendment to the committee's statement of

 

organization not later than the date the next campaign statement is

 

required to be filed after the effective date of the amendatory act

 

that added this sentence April 1, 1995.

 

     (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.

 

     (6) When filing a statement of organization, an independent

 

committee, a political committee, or a political party committee

 

may indicate in a written statement signed by the treasurer of the

 

committee that the committee does not expect in a calendar year to

 

receive or expend an amount in excess of $1,000.00.

 

     (7) Upon the dissolution of a committee, the committee shall

 

file a statement indicating dissolution with the filing officials

 

with whom the committee's statement of organization was filed.

 

Dissolution of a committee shall 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. A

 

candidate committee dissolved by application of subsection (9) or

 

(10) shall comply with this subsection.

 

     (8) A candidate committee that files a written statement

 

pursuant to subsection (5) shall not be required to file a

 

dissolution statement pursuant to 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) Except as otherwise provided in subsection (10), a

 

candidate committee dissolves on the date the candidate committee

 

files the postelection statement for the election in which the

 

candidate was elected for the last term that the candidate can

 

serve in the elected office because of the limit on the number of

 

terms prescribed in section 54 of article IV of the state

 

constitution of 1963.

 

     (10) A candidate committee does not dissolve under subsection

 

(9) if the candidate committee has outstanding debts and

 

obligations. A candidate committee with outstanding debts and

 

obligations that would otherwise dissolve under subsection (9) may

 

continue to accept contributions under the limitations prescribed

 

in section 52. A candidate committee described in this subsection

 

dissolves when it receives sufficient contributions to pay its

 

outstanding debts and obligations.

 

     Sec. 45. (1) A Subject to subsection (3), a person may

 

transfer any unexpended funds money from 1 candidate committee to

 

another candidate committee of that person 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 not be

 

considered a qualifying contribution regardless of the amount of

 

the individual contribution being transferred.

 

     (2) Upon Subject to subsection (3), upon termination of a

 

candidate committee, unexpended funds money in the candidate

 

committee that are is not eligible for transfer to another

 

candidate committee of the person under subsection (1) shall 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) Given to an independent committee.

 

     (g) Given to a ballot question committee.

 

     (3) Before money is transferred or disbursed under subsection

 

(1) or (2), a candidate committee shall use unexpended money to pay

 

the candidate committee's outstanding debts and obligations.

 

     Sec. 52. (1) Except as provided in subsection (5) or (11) (12)

 

and subject to subsection (8) (9), 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) $3,400.00 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) $1,000.00 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) $500.00 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) (13), 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 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, the contribution is considered made for

 

the election cycle that corresponds to the date of the written

 

instrument.

 

     (7) If a candidate is elected for the last term that the

 

candidate can serve in the elected office because of the limit on

 

the number of terms prescribed in section 54 of article IV of the

 

state constitution of 1963, both of the following apply to a

 

contribution made to the candidate's candidate committee for that

 

office after the close of the election cycle for that election:

 

     (a) If the candidate committee has outstanding debts and

 

obligations, the contribution is considered made for that election

 

cycle.

 

     (b) The candidate committee shall accept the contribution only

 

to the extent the contribution does not exceed the candidate

 

committee's net outstanding debts and obligations from that

 

election cycle.

 

     (8) (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) (12), or (12) (13).

 

     (9) (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.

 

     (10) (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.

 

     (11) (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 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.

 

     (12) (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).

 

     (13) (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. 69. (1) Except as provided in subsection (6) or (10), a

 

person other than an independent committee or a political party

 

committee shall not make contributions to a candidate committee of

 

a candidate that are more than $3,400.00 in value for an election

 

cycle.

 

     (2) Except as provided in subsection (11), an independent

 

committee shall not make contributions to a candidate committee

 

that for an election cycle are more than 10 times the amount

 

permitted a person other than an independent committee or political

 

party committee in subsection (1).

 

     (3) A political party committee that is a state central

 

committee shall not make contributions to a candidate committee

 

that for an election cycle are more than $750,000.00.

 

     (4) A political party committee that is a congressional

 

district or county committee shall not make contributions to a

 

candidate committee that for an election cycle are more than

 

$30,000.00.

 

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

 

agent shall not accept a contribution with respect to an election

 

cycle that exceeds a limitation in subsections (1) to (4), or (10).

 

     (6) As used in this subsection, "immediate family" means a

 

spouse, parent, brother, sister, son, or daughter. A candidate and

 

members of that candidate's immediate family may not contribute in

 

total to that person's candidate committee an amount that is more

 

than $50,000.00 in value for an election cycle.

 

     (7) Sections 5(3) and 52(6) and (7) apply to determining when

 

an election cycle begins and ends and to which election cycle a

 

particular contribution is attributed.

 

     (8) The candidate committee of a candidate for governor that

 

does not apply for funds from the state campaign fund and that

 

accepts from the candidate and the candidate's immediate family

 

contributions that total for an election cycle more than

 

$340,000.00 shall notify the secretary of state in writing within

 

48 hours after receipt of this amount. Within 2 business days after

 

receipt of this notice, the secretary of state shall send notice to

 

all candidates who are either seeking the same nomination, in the

 

case of a primary election, or election to that same office, in the

 

case of a general election, informing those candidate committees of

 

all of the following:

 

     (a) That the expenditure limits provided in section 67 are

 

waived for the remainder of that election for those notified

 

candidate committees that receive funds from the state campaign

 

fund under this act.

 

     (b) That the expenditure limits of section 67 are not waived

 

for the purpose of determining the amount of public funds available

 

to a candidate under section 64 or 65.

 

     (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) 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).

 

     (11) 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).