Summary — HB 4383 (added Sec. 30a to Michigan Campaign Finance Act)
Status & procedural history
- Introduced April 23, 2025 (also earlier introduced in 2023 in a different form). Referred to Committee on Government Operations; read a first time. Bill would add section 30a to 1976 PA 388 (MCL 169.201–169.282), the Michigan Campaign Finance Act.
Purpose
- To prohibit many political donations by principals of entities that are contractors or prospective contractors with state or local governments, aiming to limit potential pay‑to‑play contributions and perceived conflicts of interest in public contracting.
Key provisions
- Timing: The prohibitions apply beginning 18 months after the bill’s effective date and run for specified pre- and post‑contract windows.
- Covered activity (state contracts): Principals of a contractor or prospective contractor seeking or holding a state contract may not directly or indirectly donate to:
- Candidate committees for state elective office
- Political party committees
- 527 organizations
- Candidate‑affiliated or contractor‑affiliated 501(c)(4) committees
- Covered activity (local contracts): Principals of contractors or prospective contractors seeking or holding a local government contract may not directly or indirectly donate to:
- Candidate committees supporting candidates in the contracting jurisdiction
- State political party committees
- Local political party committees within the contracting jurisdiction
- Non‑candidate 527 committees
- Candidate‑affiliated or contractor‑affiliated 501(c)(4) committees
- Temporal scope: The prohibition covers the 18 months before seeking a contract and continues through 18 months after contract termination. If a prospective contractor seeks but does not obtain a contract, the restriction covers only the 18 months before seeking the contract.
- Threshold: “Contractor” or “prospective contractor” means an entity that receives or seeks an aggregate of $250,000 or more in state or local contract awards.
- “Principal”: broadly defined to include CEOs, board members, owners with ≥5% interest, officers with managerial responsibility over government affairs/contracts, spouses/dependent children, controlled subsidiaries, political committees controlled by such persons, and persons acting on their behalf (including lobbying firms).
- Definitions: The bill defines “candidate‑affiliated 501(c)(4)” and “contractor‑affiliated 501(c)(4),” family member, 527 committee, lobbying firm, local government, etc.
- Exceptions to “contract”: excludes loans/loan guarantees, appropriations‑allocated grants/subsidies, collective bargaining agreements, and certain intergovernmental agreements.
- Cure: No violation if the improper contribution is returned to the principal by the date of the contract proposal or within 30 days after receipt by the recipient committee treasurer.
Enforcement and penalties
- Remedies include cancellation of the contractor’s contract, disqualification from consideration for the current prospective contract, disqualification from future contracts for up to 3 years, or both. The bill does not specify a single enforcement agency in the text provided (enforcement likely carried out by contracting authorities or through existing campaign‑finance enforcement mechanisms).
Who is affected
- Contractors and prospective contractors meeting the $250,000 threshold and their principals (broadly defined), political committees and organizations listed as prohibited recipients, state and local procurement authorities, and campaign finance compliance officers/treasurers.
Potential impacts
- Likely to reduce certain types of political contributions from businesses and individuals with substantial government contracting exposure, and to reduce perceptions of influence tied to contracting.
- May impose compliance and monitoring burdens on contractors, contracting entities, and political committees to identify and return improper contributions.
- Could affect fundraising for parties, 527s, and certain 501(c)(4) committees if contractors are significant donors.
Effective timing and next steps
- Prohibitions begin 18 months after the bill’s effective date; contractors are subject to the 18‑month pre‑ and post‑contract windows described above.
- Current legislative status: introduced and referred to committee (see top for dates).
