MICHIGAN: SIGNIFICANT IMPACT EXPECTED WITH NEW CAMPAIGN FINANCE LAW

In advance of statewide and legislative elections in 2018, Michigan Governor Rick Snyder recently signed a campaign finance bill, effective immediately, which further blurs the lines between candidates and the Super PACs that support their candidacy through independent spending. 

SB 335 was intended to codify the U.S. Supreme Court’s decision Citizens United v. FEC into state law, but the legislation goes much further.  The Michigan law is one of the first in the country to expressly permit candidates to solicit contributions for Super PACs though such committees in Michigan must technically support more than one candidate.  While the candidates may not request or suggest how the Super PACs should spend the money, involvement in the fundraising efforts is apt to further confuse the public of the “independent” nature of this third-party spending.

Interestingly, the Michigan law also allows candidates and Super PACs to use the same vendors to produce campaign materials in certain instances, which is a practice that is generally prohibited in many states. 

The law is expected to dramatically alter the political fundraising dynamic and change how money may be raised and spent in Michigan elections, though Michigan remains one of 22 states to prohibit direct corporate contributions to state candidate campaigns. 

Politicom Law assists large companies engaging in campaign finance activity throughout the country.  Based in California, the Politicom Law team delivers “empowered compliance” solutions to assist filers with the patchwork of federal, state and local political law mandates and disclosure obligations.