| 1 | 1 | | HOUSE BILL NO. 5976 A bill to amend 1984 PA 431, entitled "The management and budget act," (MCL 18.1101 to 18.1594) by adding section 264b. the people of the state of michigan enact: Sec. 264b. (1) Except as otherwise provided under subsections (5) and (6), beginning 18 months after the effective date of the amendatory act that added this section, the department or any other state agency shall not enter into a contract if the principals to the contract have, 18 months before the contract is signed, made a donation or contribution to any of the following groups: (a) A candidate committee for statewide office, state legislative office, or local government office. (b) A state or local party committee. (c) A 527 committee. (d) A candidate affiliated 501(c)(4) committee. (e) A contractor affiliated 501(c)(4) committee. (2) Except as otherwise provided under subsections (5) and (6), the department or any other state agency shall, in a contract awarded to a contractor, include a provision that requires the contractor to attest that the principals of the contract have not made or will not make donations or contributions as described under subsection (1) during the following periods: (a) Eighteen months before the signing of the contract. (b) During the term of the contract. (c) Eighteen months after the end of the term or termination of the contract. (3) Subject to subsection (4), if this section is violated, both of the following consequences apply: (a) The contract is unenforceable and void. (b) The violator is barred from future contracts with the department or any other state agency for a period of 3 years from the date of the violation. (4) If a donation or contribution is returned to a principal by either of the following time periods, the donation or contribution is not considered a violation for purposes of subsection (3): (a) By the date of the proposal for the contract. (b) Thirty days after the receipt of the donation or contribution by the recipient committee treasurer. (5) This section does not apply to any of the following agreements or persons: (a) Loans or loan guarantees. (b) Subsidies or grants allocated through the state budget process. (c) Collective bargaining agreements. (d) Agreements between public universities. (e) Agreements between political subdivisions of this state, including, but not limited to, agreements between counties and municipalities and agreements between counties and municipalities and this state. (f) Contractors and prospective contractors who maintain less than $250,000.00 in aggregate contracts with this state. (6) This section applies only to an agreement that takes effect or is extended, renewed, or modified after the effective date of the amendatory act that added this section. (7) As used in this section: (a) "Candidate affiliated 501(c)(4) committee" means a civic league or organization claiming tax-exempt status under section 501(c)(4) of the internal revenue code of 1986, 26 USC 501, that is established by, controlled by, or directed by, or employs or contracts with any of the following: (i) A candidate for state office. (ii) A former or current elected or appointed state official. (iii) Any employee, staff member, contract employee, or family member of an elected or appointed state official or state candidate. (iv) A state or local party committee. (b) "Contractor affiliated 501(c)(4) committee" means a civic league or organization claiming tax-exempt status under section 501(c)(4) of the internal revenue code of 1986, 26 USC 501, that receives at least 1/2 of its funding from a contractor, prospective contractor, or contractor principal or that is established by, controlled by, or directed by, or employs or contracts with any of the following: (i) The contractor or prospective contractor. (ii) Any employee, director, staff member, contract employee, or family member of a contractor or prospective contractor. (c) "Family member" means any of the following: (i) Spouse. (ii) Ex-spouse. (iii) Parent. (iv) Stepparent. (v) Grandparent. (vi) Stepgrandparent. (vii) Sibling. (viii) Stepsibling. (ix) Child. (x) Stepchild. (xi) Grandchild. (xii) Stepgrandchild. (xiii) Niece. (xiv) Stepniece. (xv) Nephew. (xvi) Stepnephew. (d) "527 committee" means a political organization claiming tax-exempt status under section 527 of the internal revenue code of 1986, 26 USC 527. (e) "Principal" means any of the following: (i) The contractor or prospective contractor that executes the contract described under subsection (1). (ii) A chief executive officer or officer who possesses comparable powers and duties to a chief executive officer of the contractor or prospective contractor. (iii) Any individual who meets either of the following criteria with regard to the contractor or prospective contractor: (A) Is a member of the board of directors. (B) Has an ownership interest of 5% or more. (iv) Employees who serve as president, vice president, treasurer, or officer for the contractor or prospective contractor. (v) Any employee of the contractor or prospective contractor who has managerial or discretionary responsibilities related to government affairs or government contracts. (vi) Employees hired or contracted by the contractor or prospective contractor, including, but not limited to, the employees of lobbying firms contracted by the contractor or prospective contractor. (vii) The spouse or the dependent child of employees hired or contracted by the contractor or prospective contractor. (viii) Any subsidiaries directly or indirectly controlled by the contractor or prospective contractor. (ix) Political committees established or controlled by either of the following: (A) A contracting entity that contracts with the contractor or prospective contractor. (B) An individual described in subparagraphs (i) to (viii), (x), or (xi). (x) A person acting on behalf of an individual or entity described in subparagraphs (i) to (ix) or (xi). (xi) The spouse or a dependent child who is at least 18 years of age of a person described in subparagraphs (i) to (x). |
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| 25 | 25 | | HOUSE BILL NO. 5976 |
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| 26 | 26 | | |
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| 27 | 27 | | |
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| 28 | 28 | | |
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| 29 | 29 | | A bill to amend 1984 PA 431, entitled |
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| 30 | 30 | | |
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| 31 | 31 | | "The management and budget act," |
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| 32 | 32 | | |
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| 33 | 33 | | (MCL 18.1101 to 18.1594) by adding section 264b. |
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| 34 | 34 | | |
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| 35 | 35 | | the people of the state of michigan enact: |
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| 36 | 36 | | |
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| 37 | 37 | | Sec. 264b. (1) Except as otherwise provided under subsections (5) and (6), beginning 18 months after the effective date of the amendatory act that added this section, the department or any other state agency shall not enter into a contract if the principals to the contract have, 18 months before the contract is signed, made a donation or contribution to any of the following groups: |
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| 38 | 38 | | |
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| 39 | 39 | | (a) A candidate committee for statewide office, state legislative office, or local government office. |
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| 40 | 40 | | |
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| 41 | 41 | | (b) A state or local party committee. |
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| 42 | 42 | | |
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| 43 | 43 | | (c) A 527 committee. |
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| 44 | 44 | | |
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| 45 | 45 | | (d) A candidate affiliated 501(c)(4) committee. |
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| 46 | 46 | | |
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| 47 | 47 | | (e) A contractor affiliated 501(c)(4) committee. |
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| 48 | 48 | | |
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| 49 | 49 | | (2) Except as otherwise provided under subsections (5) and (6), the department or any other state agency shall, in a contract awarded to a contractor, include a provision that requires the contractor to attest that the principals of the contract have not made or will not make donations or contributions as described under subsection (1) during the following periods: |
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| 50 | 50 | | |
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| 51 | 51 | | (a) Eighteen months before the signing of the contract. |
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| 52 | 52 | | |
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| 53 | 53 | | (b) During the term of the contract. |
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| 54 | 54 | | |
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| 55 | 55 | | (c) Eighteen months after the end of the term or termination of the contract. |
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| 56 | 56 | | |
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| 57 | 57 | | (3) Subject to subsection (4), if this section is violated, both of the following consequences apply: |
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| 58 | 58 | | |
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| 59 | 59 | | (a) The contract is unenforceable and void. |
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| 60 | 60 | | |
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| 61 | 61 | | (b) The violator is barred from future contracts with the department or any other state agency for a period of 3 years from the date of the violation. |
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| 62 | 62 | | |
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| 63 | 63 | | (4) If a donation or contribution is returned to a principal by either of the following time periods, the donation or contribution is not considered a violation for purposes of subsection (3): |
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| 64 | 64 | | |
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| 65 | 65 | | (a) By the date of the proposal for the contract. |
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| 66 | 66 | | |
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| 67 | 67 | | (b) Thirty days after the receipt of the donation or contribution by the recipient committee treasurer. |
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| 68 | 68 | | |
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| 69 | 69 | | (5) This section does not apply to any of the following agreements or persons: |
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| 70 | 70 | | |
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| 71 | 71 | | (a) Loans or loan guarantees. |
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| 72 | 72 | | |
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| 73 | 73 | | (b) Subsidies or grants allocated through the state budget process. |
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| 74 | 74 | | |
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| 75 | 75 | | (c) Collective bargaining agreements. |
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| 76 | 76 | | |
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| 77 | 77 | | (d) Agreements between public universities. |
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| 78 | 78 | | |
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| 79 | 79 | | (e) Agreements between political subdivisions of this state, including, but not limited to, agreements between counties and municipalities and agreements between counties and municipalities and this state. |
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| 80 | 80 | | |
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| 81 | 81 | | (f) Contractors and prospective contractors who maintain less than $250,000.00 in aggregate contracts with this state. |
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| 82 | 82 | | |
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| 83 | 83 | | (6) This section applies only to an agreement that takes effect or is extended, renewed, or modified after the effective date of the amendatory act that added this section. |
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| 84 | 84 | | |
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| 85 | 85 | | (7) As used in this section: |
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| 86 | 86 | | |
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| 87 | 87 | | (a) "Candidate affiliated 501(c)(4) committee" means a civic league or organization claiming tax-exempt status under section 501(c)(4) of the internal revenue code of 1986, 26 USC 501, that is established by, controlled by, or directed by, or employs or contracts with any of the following: |
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| 88 | 88 | | |
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| 89 | 89 | | (i) A candidate for state office. |
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| 90 | 90 | | |
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| 91 | 91 | | (ii) A former or current elected or appointed state official. |
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| 92 | 92 | | |
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| 93 | 93 | | (iii) Any employee, staff member, contract employee, or family member of an elected or appointed state official or state candidate. |
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| 94 | 94 | | |
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| 95 | 95 | | (iv) A state or local party committee. |
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| 96 | 96 | | |
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| 97 | 97 | | (b) "Contractor affiliated 501(c)(4) committee" means a civic league or organization claiming tax-exempt status under section 501(c)(4) of the internal revenue code of 1986, 26 USC 501, that receives at least 1/2 of its funding from a contractor, prospective contractor, or contractor principal or that is established by, controlled by, or directed by, or employs or contracts with any of the following: |
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| 98 | 98 | | |
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| 99 | 99 | | (i) The contractor or prospective contractor. |
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| 100 | 100 | | |
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| 101 | 101 | | (ii) Any employee, director, staff member, contract employee, or family member of a contractor or prospective contractor. |
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| 102 | 102 | | |
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| 103 | 103 | | (c) "Family member" means any of the following: |
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| 104 | 104 | | |
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| 105 | 105 | | (i) Spouse. |
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| 106 | 106 | | |
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| 107 | 107 | | (ii) Ex-spouse. |
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| 108 | 108 | | |
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| 109 | 109 | | (iii) Parent. |
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| 110 | 110 | | |
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| 111 | 111 | | (iv) Stepparent. |
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| 112 | 112 | | |
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| 113 | 113 | | (v) Grandparent. |
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| 114 | 114 | | |
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| 115 | 115 | | (vi) Stepgrandparent. |
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| 116 | 116 | | |
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| 117 | 117 | | (vii) Sibling. |
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| 118 | 118 | | |
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| 119 | 119 | | (viii) Stepsibling. |
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| 120 | 120 | | |
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| 121 | 121 | | (ix) Child. |
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| 122 | 122 | | |
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| 123 | 123 | | (x) Stepchild. |
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| 124 | 124 | | |
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| 125 | 125 | | (xi) Grandchild. |
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| 126 | 126 | | |
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| 127 | 127 | | (xii) Stepgrandchild. |
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| 128 | 128 | | |
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| 129 | 129 | | (xiii) Niece. |
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| 130 | 130 | | |
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| 131 | 131 | | (xiv) Stepniece. |
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| 132 | 132 | | |
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| 133 | 133 | | (xv) Nephew. |
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| 134 | 134 | | |
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| 135 | 135 | | (xvi) Stepnephew. |
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| 136 | 136 | | |
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| 137 | 137 | | (d) "527 committee" means a political organization claiming tax-exempt status under section 527 of the internal revenue code of 1986, 26 USC 527. |
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| 138 | 138 | | |
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| 139 | 139 | | (e) "Principal" means any of the following: |
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| 140 | 140 | | |
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| 141 | 141 | | (i) The contractor or prospective contractor that executes the contract described under subsection (1). |
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| 142 | 142 | | |
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| 143 | 143 | | (ii) A chief executive officer or officer who possesses comparable powers and duties to a chief executive officer of the contractor or prospective contractor. |
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| 144 | 144 | | |
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| 145 | 145 | | (iii) Any individual who meets either of the following criteria with regard to the contractor or prospective contractor: |
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| 146 | 146 | | |
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| 147 | 147 | | (A) Is a member of the board of directors. |
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| 148 | 148 | | |
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| 149 | 149 | | (B) Has an ownership interest of 5% or more. |
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| 150 | 150 | | |
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| 151 | 151 | | (iv) Employees who serve as president, vice president, treasurer, or officer for the contractor or prospective contractor. |
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| 152 | 152 | | |
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| 153 | 153 | | (v) Any employee of the contractor or prospective contractor who has managerial or discretionary responsibilities related to government affairs or government contracts. |
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| 154 | 154 | | |
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| 155 | 155 | | (vi) Employees hired or contracted by the contractor or prospective contractor, including, but not limited to, the employees of lobbying firms contracted by the contractor or prospective contractor. |
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| 156 | 156 | | |
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| 157 | 157 | | (vii) The spouse or the dependent child of employees hired or contracted by the contractor or prospective contractor. |
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| 158 | 158 | | |
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| 159 | 159 | | (viii) Any subsidiaries directly or indirectly controlled by the contractor or prospective contractor. |
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| 160 | 160 | | |
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| 161 | 161 | | (ix) Political committees established or controlled by either of the following: |
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| 162 | 162 | | |
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| 163 | 163 | | (A) A contracting entity that contracts with the contractor or prospective contractor. |
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| 164 | 164 | | |
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| 165 | 165 | | (B) An individual described in subparagraphs (i) to (viii), (x), or (xi). |
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| 166 | 166 | | |
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| 167 | 167 | | (x) A person acting on behalf of an individual or entity described in subparagraphs (i) to (ix) or (xi). |
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| 168 | 168 | | |
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| 169 | 169 | | (xi) The spouse or a dependent child who is at least 18 years of age of a person described in subparagraphs (i) to (x). |
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