As the primary and general elections get closer and closer, more questions pop-up on campaign financing tools as political fundraising efforts increase.  One area of questions the MLC team often gets asked about pertains to Super PACs.  Clients often wonder what they are and why organizations want to form them.

In September 2017, new campaign finance laws took effect allowing Super PACs to be established in Michigan.  Public Act 119 was primarily based on the 2010 U.S. Supreme Court decision in Citizens United v. Federal Election Commission, which determined that a federal law prohibiting corporations and unions from making political expenditures in federal elections was unconstitutional.  In a nutshell, this decision allows corporations and unions to make political expenditures if it’s done in a manner that is independent of a candidate’s campaign.  With the federal framework in place, the state moved forward to allow such expenditures in state level elections.

Highlights of Michigan’s Super PAC laws include:

• Establishing a registration, filing and compliance process for independent expenditures committees (i.e. Super PACs).
• Allowing Super PACs to make expenditures to another independent expenditure committee, a ballot question committee or any other expenditures or disbursements that are not prohibited by PA 119 or other laws.
• Prohibiting a Super PAC from contributing to a candidate committee, independent committee, political committee, political party committee, or House or Senate political party caucus committee.
• A candidate can solicit contributions on behalf of the Super PAC, if that candidate doesn’t request, suggest or coordinate in any way with the Super PAC related to any independent expenditure made on behalf of the candidate.
• A Super PAC will not be considered independent if, during an election cycle, its expenditures related solely to one candidate and that candidate solicits funds on behalf of the Super PAC.

Just like other types of political committees, Super PACs have strict campaign finance reports they must file with the Secretary of State.  PA 119 expressly states the type of information that must be reported for contributions that Super PACs receive and expenditures that it makes.  They also have specific dates by which they must submit their campaign statements and they must comply with specific filing provisions for special elections. 

With all of these regulations, why would any organization want to form a state Super PAC?  Many corporations and unions want to make contributions to political action committees, but until Super PACs were authorized, they were prohibited from doing so.  Additionally, Super PACs can accept unlimited contributions from such entities, as well as individuals and associations, and therefore it allows them to directly engage in the political advocacy process.  Another advantage of a Super PAC is that the independent expenditures they are allowed to make can be in any monetary amount.  These provisions enable Super PACs to potentially have a significant impact in an election.

Michigan Legislative Consultants is a bipartisan lobbying firm based in Lansing, Michigan. Our team of lobbyists and procurement specialists provide a wide range of services for some of the most respected companies in America. For more on MLC, visit www.mlcmi.com or connect with us on LinkedIn and Twitter.