Sweeping Campaign Finance Reform Approved In Time for 2014 Election

Although the major focus of a three-bill package of campaign finance reform was to double the maximum contributions allowed to candidates and political action committees, the Senate Republicans, in one of the most dramatic legislative days of the year, amended it to maintain anonymity for donors to groups running issue ads. These messages are those that praise or bash candidates without explicitly saying to vote for or against them.

Senate Bill 440 (now Public Act 258 of 2013) lowers the threshold for requiring electronic filing of campaign statements by a committee. Under previous law, any committee that spent or received more than $20,000 in one year must report electronically. Senate Bill 440 lowers that threshold to $5,000.

Senate Bill 441 (now Public Act 259 of 2013) permits county clerks to adopt a system of electronic filing, set thresholds for the requirement of electronic filing, and provide for internet disclosure of statements and reports.

Senate Bill 661 (now Public Act 252 of 2013) makes changes to two significant areas – campaign contribution limits and campaign statement filing requirements. With regard to contribution limits, the new law serves to double all limits as follows:

Prior Law	To:
Contribution From	State House Candidate	State Senate Candidate	Statewide Candidate
Period:	2 Years	4 Years	4 Years
Individual	$500	$1,000	$3,400
Independent PAC	$5,000	$10,000	$34,000

New Law Under SB 661	To:
Contribution From	State House Candidate	State Senate Candidate	Statewide Candidate
Period:	2 Years	4 Years	4 Years
Individual	$1,000	$2,000	$6,800
Independent PAC	$10,000	$20,000	$68,000

In addition, prior law provided that an independent PAC could contribute a maximum of $20,000 to a House or Senate political caucus campaign committee. The new statute doubles this contribution as well, to $40,000.

Finally beginning January of 2019, the Secretary of State will be required to adjust the contribution limits to the nearest $25 based on increase or decreases in the Detroit consumer price index (CPI).

With regard to campaign statement filing requirements, the SB 661 increases the frequency of required campaign filings. Prior law required a committee to file a pre-election report by the 11^th day before an election, with a closing day of the 16^th day prior to the election. Prior law also required a committee to file a post-election report within 30 days after the election, with a closing day of the 20^th day after the election. Under the bill, the committee is now also required, in years no election was held for the candidate the committee was supporting or opposing, to file a report on July 25^th, with a closing date of July 20^th, and on October 25^th, with a closing date of October 20^th.

posted by PAA Online , Friday, January 3, 2014 10:51 AM
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