Michigan Chamber of Commerce only allowed to spend own money
The Michigan Campaign Finance Networks is calling the secretary of state’s final declaratory ruling to allow the Michigan Chamber of Commerce to spend money on independent political expenditures using their own funds, but not by aggretating funds from outside donors for “express advocacy” purposes.
According to the MCFN, the Department’s Declaratory Ruling was a dramatic reversal of its own draft ruling that was published on April 30th. In the draft, the Department had indicated that the Chamber would be allowed to contribute funds from its general treasury to a new political committee to be known as Chamber PAC III, which, in turn, could make independent expenditures supporting or opposing candidates. In the final ruling, the Department said that such a contribution from the corporation to the proposed new committee would constitute a felony violation of the Michigan Campaign Finance Act (MCFA). The Department noted that the Citizens United decision made allowance for corporate independent expenditures, not corporate contributions to political committees, which are banned under the MCFA.
According to Gavel Grab, MCFN earlier asked Land to help bring “real transparency and accountability to state election campaigns” through a declaration of rigorous financial-disclosure rules, and the watchdog group said weak campaign finance regulations had allowed more than $45 million worth of television campaign advertisements to go unreported since 2000.
Rich Robinson of the Michigan Campaign Finance Network said the new ruling does not address “issue ads” by stopping short of explicitly advocating a candidate’s election or defeat.
“... It is a very narrow ruling that only applies to ‘express advocacy,’ because that is the question Mr. LaBrant asked, and the Department is bound to answer only the questions it is asked,” Robinson said in a statement. “The matter of candidate-focused issue ads has not been addressed, and that is an enormous loophole.”
Citizens United lifted restrictions on corporate political spending for independent advertising to support or oppose candidates in elections. To learn more about efforts for enhanced campaign finance disclosure in Michigan, click here for earlier Gavel Grab posts; to read about states responding to Citizens United, click here for related Gavel Grab articles.
