HB 6249 — Public employees and officers: ethics; tickets to certain charity events; exclude from definition of gift
Overview
- Purpose: Amend the definition of “Gift” in Section 4 of 1978 PA 472 to exclude certain charity event tickets from being treated as gifts for ethics purposes, under specified conditions.
- Introduced: December 5, 2024 by Representatives Whitsett and Edwards
- Status: Referred to the Committee on Government Operations; electronically reproduced on December 5, 2024; bill actions listed through December 10, 2024
- Context: Part of Michigan’s ethics framework governing gifts to public employees and officers
Key Provisions
- Current framework (for reference): A “Gift” generally includes money, services, or anything of value exceeding $25 (as adjusted under section 19a) received in a 1-month period, with several exclusions listed.
- Core amendment (new subsection 4(1)(f)): Excludes from the definition of “Gift” a ticket or offer of free or reduced-price attendance to a charity event where:
- The primary purpose of the event is to raise money for a nonprofit organization that is tax-exempt under 501(c)(3) of the Internal Revenue Code; and
- Either:
- The organizing event sponsor makes the offer described in this subdivision, or
- The taxable value of the full-priced ticket does not exceed the amount provided under section 19a (currently $25, adjusted as allowed by law).
- Remaining elements of the gift definition (and other exclusions) stay in effect, including:
- Campaign contributions reported under Michigan’s campaign finance act
- Loans made in the normal course of business by specified financial institutions or licensees
- Gifts from an immediate family member or certain relatives
- Meals and refreshments for immediate consumption
- Contributions to a registered legal defense fund
- Definitions retained: The bill maintains existing definitions for terms like “Immediate family” and “Loan.”
Who Would Be Affected
- Public employees and officers subject to Michigan’s gift and ethics provisions under PA 472, as amended
- This change affects compliance obligations around accepting tickets to charity fundraising events, potentially reducing reportable gifts when the event meets the specified conditions
Procedural and Timeline Aspects
- 2024-12-05: Introduced; referred to Committee on Government Operations
- 2024-12-05 to 2024-12-10: Noted as electronically reproduced and subsequent legislative actions list first readings and referrals
- Status indicates ongoing committee consideration; no final floor action or enactment date provided in the available material
Potential Impact
- Clarifies and narrows what is considered a “gift” in the context of charitable fundraising events
- Reduces potential gift-reporting requirements for officials attending qualifying charity events at or under the established value threshold
- Maintains transparency through the continued use of section 19a’s adjusted value and the requirement that the event’s primary purpose be fundraising for a 501(c)(3) organization
Notes
- The bill references and relies on the existing gift framework in Sec. 4 of 1978 PA 472 and the adjusted value mechanism in section 19a
- If enacted, guidance from the Department of State or ethics authorities would clarify any ambiguities in how “organizing event sponsor” and ticket value are interpreted for compliance.