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HB 4381

Public utilities: other; use of revenues as donation to a 501(c)(4) that engages in campaign or lobbying activities; prohibit. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 6bb. TIE BAR WITH: HB 4381'25

2025-2026 Regular Session Introduced by Erin Byrnes and 10 co-sponsors

Michigan bill prohibits public utilities from donating revenues to 501(c)(4) groups engaging in campaign or lobbying activities, restricting how utility ratepayer funds support politics.

bill electronically reproduced 04/23/2025
#campaignfinance:contributionsandexpenditures #publicutilities:other #publicutilities:publicservicecommission
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Bill Summary · HB 4381

Legislative bill overview

HB 4381 would prohibit public utilities in Michigan from using their revenues to donate funds to 501(c)(4) organizations that engage in campaign activities or lobbying efforts. The bill amends the Public Utilities Act to add this restriction as a new section.

Why is this important

Public utilities are often granted monopoly status and collect revenues from mandatory customer payments, raising questions about whether these funds should support political activities. This bill addresses concerns that utility ratepayers—who have no choice in their provider—may indirectly fund political causes they oppose through their utility bills.

Potential points of contention

  • Corporate speech vs. ratepayer protection: Utilities may argue this restricts their First Amendment rights to support causes aligned with their business interests, while supporters contend ratepayers shouldn't subsidize political activity.
  • Definition and scope: The bill's effectiveness depends on how "donation" is defined—utilities might argue certain expenditures are business expenses rather than donations, creating enforcement challenges.
  • Competitive disadvantage: If this applies only to traditional utilities but not to alternative energy providers or unregulated entities, it could create unequal regulatory treatment in an evolving energy market.

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

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