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SJR L

Businesses: other; power of entities to spend in elections or ballot issues; revoke. Amends the state constitution by adding sec. 55 to art. IV.

2025-2026 Regular Session Introduced by Rosemary Bayer and 8 co-sponsors

The bill would constitutionally ban domestic and foreign entities from spending money or assets to support or oppose candidates, parties, committees, or ballot questions in Michiga

SENATE CO-SPONSOR(S) NAMED: MALLORY MCMORROW
#businesses:other #constitutionalamendments:state
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Bill Summary · SJR L

Summary of Senate Joint Resolution L (SJR L) – Michigan, 2025-2026

Purpose and intent

  • SJR L proposes a constitutional amendment to add Section 55 to Article IV of Michigan’s 1963 state constitution.
  • The core aim is to limit or prohibit domestic and foreign entities from spending money or anything of value to support or oppose candidates, political parties, political committees, or ballot questions within Michigan, effectively restricting corporate and organizational political expenditures by entities formed under Michigan or other jurisdictions.

Key provisions and changes the bill would make

  • Section 55(1) – Domestic entities

    • A domestic entity ( Michigan-formed) would not have any power to pay, contribute, or expend money or assets to support/opose a candidate, political party, political committee, or ballot question.
    • Any power previously granted to a domestic entity to engage in such activity would be revoked upon the effective date of the amendment.
    • Conducting such acts by a domestic entity would be invalid and subject to disgorgement.

  • Section 55(2) – Foreign entities

    • A foreign entity (formed outside Michigan) would not have any power, privilege, or right to pay, contribute, or expend money or assets in support/opposition to a candidate, political party, political committee, or ballot question in Michigan.
    • Any pre-existing authority to perform such acts before the effective date would be revoked, and such acts would be invalid and subject to disgorgement.

  • Section 55(3) – Exceptions

    • The prohibitions do not apply to:
    • (a) Existing contracts, debt instruments, securities, or other valid legal obligations entered before the amendment’s effective date.
    • (b) Bona fide news stories, commentary, or editorials distributed through broadcasting stations or print/online/digital publications, unless the outlet is owned or controlled by a candidate, political party, or political committee.

  • Section 55(4) – Penalties and consequences

    • Domestic entities engaging in prohibited acts could be subject to dissolution as provided in Section 55(4) (implies dissolution mechanisms).
    • Foreign entities engaging in prohibited acts could have their authority to transact business in Michigan revoked (Section 55(6)).

  • Section 55(5) – Enforcement

    • The attorney general or a state officer authorized by law may bring actions to:
    • Declare the act invalid under subsections (1) or (2).
    • Seek disgorgement.
    • Seek injunction against future acts.
    • Seek dissolution of a domestic entity.

  • Section 55(6) – Corporate/foreign entity consequences

    • The attorney general or authorized official may revoke a foreign entity’s certificate of authority to transact business in Michigan where applicable.

  • Section 55(7) – Definitions

    • Domestic entity: An entity formed under Michigan law.
    • Entity: Includes corporations, nonprofit corporations, or LLCs; excludes political committees.
    • Foreign entity: An entity formed under laws outside Michigan that is authorized to transact business in Michigan.
    • Political committee: A committee registered under Michigan or federal law for the purpose of supporting or opposing a candidate, political party, political committee, or ballot question.

  • Section 55(8) – Submission

    • The amendment would be submitted to Michigan voters at the next general election, as required by law.

Who would be affected

  • Domestic entities (Michigan-formed corporations, nonprofit corporations, and LLCs) would lose the ability to spend on political campaigns and ballot measures in Michigan.
  • Foreign entities (out-of-state or international entities authorized to transact business in Michigan) would similarly be barred from political spending in Michigan.
  • Political committees themselves are expressly excluded from the definition of “entity” that is restricted by the amendment, meaning existing political committees would not be affected by the prohibition on entities paying or spending funds in support or opposition to candidates or ballot questions.
  • Media outlets and news organizations are exempt from the restriction for editorial content, except if owned or controlled by a candidate, political party, or committee.

Procedural and timeline aspects

  • Introduced July 2, 2026, and referred to the Senate Committee on Elections and Ethics.
  • If approved by the Legislature, the amendment would be placed on the ballot for a vote by the people at the next general election.
  • Effective date: The amendment becomes applicable after voter approval and would revoke pre-existing rights to engage in political spending for domestic and foreign entities as of that date (except for protected pre-existing obligations and editorial content exemptions).

Notable considerations

  • The proposal mirrors broad campaign finance reform goals by banning corporate and organizational political expenditures within the state, raising questions about:
    • Compliance and enforcement mechanisms for both domestic and foreign entities.
    • How existing contracts, debt instruments, and obligations would be treated post-enactment.
    • The scope of permissible activities for media organizations and potential gray areas around independent journalism versus advocacy.

If you’d like, I can distill this into a one-page briefing for policymakers or create a comparative analysis with similar measures in other states.

Compiled from official sources — confirm details with the bill’s official record.

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