Michigan House Bill HB5580

Michigan 2023-2024 Regular Session

• Introduced: 3/14/24
• Refer: 3/14/24
• Report Pass: 12/5/24

Caption

Campaign finance: public disclosure; financial reporting requirement for political nonprofits; provide for. Amends 1976 PA 388 (MCL 169.201 - 169.282) by adding sec. 29a.

Impact

The bill aims to strengthen the state's regulatory framework surrounding campaign finance by ensuring that political nonprofits are held accountable for their financial disclosures. The Secretary of State is required to publish this information on their website, facilitating public access to the financial operations of these organizations. This transparency is intended to foster greater trust in the political process and provide voters with more information regarding the influences on political campaigns.

Summary

House Bill 5580 proposes amendments to the Michigan Campaign Finance Act by adding a new section (29a) which establishes registration and reporting requirements for 527 organizations and 501(c)(4) organizations. Under this bill, such organizations must electronically file a registration with the Secretary of State within ten days of becoming operational. The registration must include detailed information about the organization and its leadership, enhancing transparency in the financial activities of these entities that are often involved in lobbying and political campaigning.

Contention

However, the bill is not without notable points of contention. While proponents argue that it will increase transparency and reduce the anonymity of political donations, critics raise concerns about the potential burden on smaller organizations that may struggle to comply with the new electronic filing requirements. Additionally, some fear that the legislation may infringe on the rights of organizations to operate freely and voice their political opinions. The definition and implications of penalties for non-compliance, which range from civil infractions to fines based on the organization's financial balance, are also debated among stakeholders.