WeVote
Log In

Bill

AA

Bill

HB 5580

Campaign finance: public disclosure; financial reporting requirement for political nonprofits; provide for. Amends 1976 PA 388 (MCL 169.201 - 169.282) by adding sec. 29a.

2023-2024 Regular Session Introduced by Abraham Aiyash and 25 co-sponsors

HB 5580 requires certain 527s/501(c)(4)s linked to Michigan officials to register with the SOS within 10 days and disclose leadership, with civil penalties for noncompliance.

referred to second reading
#campaignfinance:contributionsandexpenditures #campaignfinance:publicdisclosure #campaignfinance:statementsandreports
0
WeVote Research Nonpartisan
Bill Summary · HB 5580

Summary — HB 5580 (Michigan Campaign Finance Act amendment)

Status: Referred to second reading (committee activity through May 2025)
Introduced by: Rep. Julie Brixie (and co-sponsors) — Introduced March 14, 2024 (bill text); tie‑barred to HB 5582. Companion: SB 8. Effective date (if enacted together): January 1, 2026.

Purpose

HB 5580 would add a new registration and disclosure requirement to the Michigan Campaign Finance Act for certain 527 organizations and 501(c)(4) organizations that have specified connections to state candidates or state elected/appointed officials. The intent is to increase public transparency about politically active nonprofit groups that are linked to state officeholders or candidates.

Key provisions

  • Requires qualifying 527 and 501(c)(4) organizations to electronically register with the Michigan Secretary of State (SOS) no later than 10 days after the organization becomes such an organization under the Act.
  • The registration must include:
    • The organization’s name.
    • The name of the individual who is employed by, is on the board of, or directs/controls the organization.
    • If that individual is not themselves an elected official or candidate, the name of the elected official or state candidate of whom that individual is an employee, contract employee, staff member, or family member.
  • SOS must post the submitted registration information on its website.
  • Exemptions: House and Senate political party caucus committees and political party committees.

Definitions / scope (as provided by associated bill language)

  • A 527 or 501(c)(4) organization is covered if it “employs, has a board member who is, or is controlled or directed by” any of the following:
    • A candidate for state elective office;
    • An elected official;
    • An appointed official for a state elective office;
    • Any employee, contract employee, or staff member of an elected official, candidate, or appointed official;
    • Any family member of an elected official, candidate, or appointed official.
  • “Family member” is defined to include spouse/ex‑spouse; child, stepchild, grandchild, parent, sibling, niece, nephew; and the spouse of those relatives.

Penalties and enforcement

  • Failure to register is a state civil infraction. Civil fines (based on the organization’s balance) are:
    • Balance ≤ $10,000: fine up to $1,000.
    • Balance > $10,000 and < $20,000: fine up to $4,000.
    • Balance ≥ $20,000: fine up to $5,000.
  • The reported elected official or candidate (the person named in the registration) also would be responsible for a state civil infraction and may be fined up to $1,000 for failure to register the organization as required.

Fiscal impact

  • Indeterminate. Revenue from fines would primarily support public and county law libraries; $10 of each civil fine is required to be deposited into the state Justice System Fund. Local court workload and administrative costs may be affected depending on violation volume.

Procedural / timeline notes

  • The bill is tie‑barred to HB 5582 (which provides related definitions); neither bill takes effect unless both are enacted.
  • If enacted, the act takes effect January 1, 2026; organizations that already meet criteria on that date would appear to have 10 days from Jan 1, 2026 to register.

Who is affected

  • Primary: 527 and 501(c)(4) nonprofit organizations that meet the specified connection criteria to Michigan state candidates or officials.
  • Secondary: State candidates and elected/appointed officials who are named by those organizations; the Secretary of State (for administering and posting registrations); courts and agencies that handle enforcement and fine distribution.

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

Sign in to ask a question.