Bill Text: MI SB0841 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Campaign finance; statements and reports; $1,000.00 threshold for filing certain campaign finance reports; eliminate. Amends secs. 24, 33 & 35 of 1976 PA 388 (MCL 169.224 et seq.).

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2016-03-03 - Referred To Committee On Elections And Government Reform [SB0841 Detail]

Download: Michigan-2015-SB0841-Introduced.html

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SENATE BILL No. 841

 

 

March 3, 2016, Introduced by Senators KNEZEK, SCHMIDT, BIEDA, O'BRIEN and HERTEL 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 24, 33, and 35 (MCL 169.224, 169.233, and

 

169.235), as amended by 2015 PA 269.

 

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 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 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 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 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 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 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.

 

     (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 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, 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.

 

     (5) (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.

 

     (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.

 

     Sec. 33. (1) A committee, other than an independent 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) For candidate committees only, in a year in which there is

 

no election for the candidate the candidate 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 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 April 25 of each year with a closing date

 

of April 20 of that year.

 

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

 

July 20 of that year.

 

     (c) 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 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 must 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 must

 

include either the name of the candidate and the office sought by

 

the candidate or the name of the ballot question and 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) or that is automatically considered to have made a

 

statement under section 24(5) 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.

 

     (6) (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.

 

     (7) (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.

 

     (8) (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.

 

     (9) (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.

 

     (10) (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.

 

     (11) (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.

 

     (12) (13) Not more than 5 business days after seizure of money

 

under subsection (12), (11), 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 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 is

 

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.

 

     (4) (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.

 

     (5) (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.