Campaign finance: contributions and expenditures; contributions by certain foreign entities; prohibit. Amends secs. 7, 15, 24, 26, 51 & 54 of 1976 PA 388 (MCL 169.207 et seq.) & adds sec. 34a.
HB 5197 amends the Michigan Campaign Finance Act to add and strengthen restrictions on foreign national involvement in ballot question and campaign activity, while also expanding reporting and enforcement procedures. The bill defines “foreign national” in statute and adds a new section prohibiting ballot question committees from knowingly or willfully receiving, soliciting, or accepting contributions from foreign nationals, directly or indirectly. It also requires ballot question committees to obtain donor affirmations that the donor is not a foreign national and has not recently received substantial foreign-national support, and requires prohibited contributions to be returned within 30 business days.
The bill also revises campaign finance reporting rules for committees, independent expenditures, bundled contributions, and separate segregated funds. It adds foreign-national affirmations to certain campaign statements and independent expenditure reports involving statewide ballot questions, and it requires more detailed disclosure of contributions, expenditures, fundraising events, and bundled contributions. In addition, it updates procedures for filing complaints, declaratory rulings, late filing fee waivers, investigations, hearings, and referrals between the secretary of state and attorney general, while preserving the act’s exclusive enforcement framework and no private right of action.
The bill would amend multiple sections of the Michigan Campaign Finance Act, including sections governing definitions, secretary of state duties, committee organization statements, campaign statements, independent expenditure reporting, and prohibited contributions. Its most significant legal change is the creation of section 34a, which specifically bans foreign national contributions to ballot question committees and imposes a civil fine of up to twice the undisclosed contribution for violations. It also reinforces existing foreign-national restrictions in section 54 and adds reporting affirmations intended to document compliance.
Operationally, the bill increases disclosure obligations for committees and independent spenders, especially in ballot question campaigns, and gives the secretary of state additional enforcement and public-posting responsibilities. It affects candidates, committees, bundling committees, corporations, labor organizations, tax-exempt organizations implicated in foreign-national investigations, and county clerks and the secretary of state as filing officials.
The available voting history suggests broad support for the bill. It was reported from committee twice without any recorded dissent in the committee votes, and it later passed House third reading by a wide margin of 97-6 with immediate effect. That pattern indicates the bill was generally viewed favorably and as a priority measure, particularly on the issue of foreign influence in Michigan elections and ballot questions.
The main point of contention appears to be the scope and mechanics of the foreign-national restrictions and disclosure requirements. Supporters likely viewed the bill as a campaign integrity and election-security measure, while any opposition would most likely center on the burden of added reporting, donor affirmations, and compliance obligations for ballot question committees, independent spenders, and related organizations. The bill also raises privacy concerns by requiring public posting of complaints and related materials, though it includes a specific confidentiality protection for donor information tied to tax-exempt organizations when foreign-national investigations are involved.