HB-5058, As Passed Senate, June 13, 2012

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5058

A bill to amend 1976 PA 388, entitled

"Michigan campaign finance act,"

by amending sections 9 and 21a (MCL 169.209 and 169.221a), section

9 as amended by 1996 PA 590 and section 21a as added by 1994 PA

411.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 9. (1) "Incidental expense" means an expenditure that is

an ordinary and necessary expense, ~~as described in section 162 of~~

~~the internal revenue code of 1986, 26 U.S.C. 162,~~ paid or incurred

in carrying out the business of an elective office. Incidental

expense includes, but is not limited to, any of the following:

(a) A disbursement necessary to assist, serve, or communicate

with a constituent.

(b) A disbursement for equipment, furnishings, or supplies for

the office of the public official.

office is not used for campaign-related activity.

(d) A disbursement for the public official or his or her

staff, or both, to attend a conference, meeting, reception, or

other similar event.

(e) A disbursement to maintain a publicly owned residence or a

temporary residence at the seat of government.

(f) An unreimbursed disbursement for travel, lodging, meals,

or other expenses incurred by the public official, a member of the

public official's immediate family, or a member of the public

official's staff in carrying out the business of the elective

office.

(g) A donation to a tax-exempt charitable organization,

including the purchase of tickets to charitable or civic events.

(h) A disbursement to a ballot question committee.

(i) A purchase of tickets for use by that public official and

members of his or her immediate family and staff to a fund-raising

event sponsored by a candidate committee, independent committee,

political party committee, or a political committee that does not

exceed $100.00 per committee in any calendar year.

(j) A disbursement for an educational course or seminar that

maintains or improves skills employed by the public official in

carrying out the business of the elective office.

(k) A purchase of advertisements in testimonials, program

books, souvenir books, or other publications if the advertisement

does not support or oppose the nomination or election of a

candidate.

(l) A disbursement for consultation, research, polling, and

photographic services not related to a campaign.

(m) A fee paid to a fraternal, veteran, or other service

organization.

(n) A payment of a tax liability incurred as a result of

authorized transactions by the candidate committee of the public

official.

(o) A fee for accounting, professional, or administrative

services for the candidate committee of the public official.

(p) A debt or obligation incurred by the candidate committee

of a public official for a disbursement authorized by subdivisions

(a) to (o), if the debt or obligation was reported in the candidate

committee report filed for the year in which the debt or obligation

arose.

(2) "Independent expenditure" means an expenditure by a person

if the expenditure is not made at the direction of, or under the

control of, another person and if the expenditure is not a

contribution to a committee.

(3) "In-kind contribution or expenditure" means a contribution

or expenditure other than money.

(4) "Loan" means a transfer of money, property, or anything of

ascertainable monetary value in exchange for an obligation,

conditional or not, to repay in whole or part.

(5) "Local elective office" means an elective office at the

local unit of government level. Local elective office also includes

judge of the court of appeals, judge of the circuit court, judge of

the recorder's court of the city of Detroit, judge of the district

court, judge of the probate court, and judge of a municipal court.

(6) "Local unit of government" means a district, authority,

county, city, village, township, board, school district,

intermediate school district, or community college district.

Sec. 21a. (1) A candidate committee of a candidate who is

elected or appointed to an elective office may make an expenditure

for an incidental expense for the elective office to which that

candidate was elected or appointed. Except as otherwise

specifically provided in this act, an expenditure for an incidental

expense by a candidate committee ~~pursuant to~~ under this section is

~~considered~~ an expenditure under this act.

(2) A candidate committee of a candidate who is elected or

appointed to an elective office shall not make an expenditure to

defend the elected or appointed official in a civil or criminal

action or to pay legal costs unless the action or legal costs do

any of the following:

(a) Relate to a recall election.

(b) Relate to a recount of votes as provided in the Michigan

election law, 1954 PA 116, MCL 168.1 to 168.992.

(d) Tangibly benefit the nomination or election of a

candidate.

(3) Any legal costs not authorized under subsection (2) shall

be paid from a legal defense fund as provided in the legal defense

House Bill No. 5058 as amended June 12, 2012

fund act, 2008 PA 288, MCL 15.521 to 15.539.

(4) In addition to any other requirements of this act, a

campaign statement of a candidate committee shall contain the

purpose of any expenditure for legal costs made by that committee

as described in subsection (2).

(5) An individual who violates subsection (2) 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.

<<Enacting section 1. This amendatory act takes effect January 1, 2013.>>