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SB 101

Relating to first-time home buyer savings accounts.

2025 Regular Session

SB 101 requires a uniform fair market value method to value gifts for lobbyist and official reporting, boosting transparency and requiring FMV evidence within 9 days.

In committee upon adjournment.
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Bill Summary · SB 101

SB 101 — Public employees and officers: ethics; modify definition of “gift” (1978 PA 472; MCL 4.413, 4.414; add sec. 8a)

Status & procedural posture
- Introduced: January 23, 2025.
- Current status: Referred to Committee of the Whole.
- Statutory targets: Amends sections 3 and 4 of 1978 PA 472 (MCL 4.413 & 4.414) and adds a new section 8a to that Act (the Lobbyist Registration Act / related ethics statutes).

Purpose / intent
- Clarify and tighten reporting and valuation rules for gifts and related financial transactions involving public officials and lobbyists, improving transparency and creating a uniform method for determining fair market value (FMV) of items and services that must be reported.

Key provisions
1. Definitions and scope
- Revises and clarifies definitions used in the Act, including “expenditure,” “fair market value,” “financial transaction,” “immediate family,” and “loan.” The bill makes FMV an express, defined concept that must be determined under the new section 8a.

  1. Changes to the definition of “gift” (amendment to MCL 4.414)

    • Retains the basic $25 threshold (as adjusted under existing CPI adjustment provisions) but ties the valuation standard to the FMV determination required by new sec. 8a.
    • Confirms that certain items are not “gifts,” including:
      • Campaign contributions reported under the Michigan Campaign Finance Act;
      • Loans made in the normal course of business by specified financial institutions;
      • Payments from immediate family members;
      • Food/beverage provided for immediate consumption;
      • Contributions to registered legal defense funds; and
      • Specifically excludes: (a) tickets to charity events and (b) admission to conferences or educational events when the subject matter is directly related to the official’s duties and admission is provided.
    • Clarifies inclusion of certain payments (e.g., payments to aid legal defense) as gifts for reporting purposes.

  2. New Sec. 8a — Fair market value methodology and reporting burden

    • Establishes rules to determine FMV: use market prices on the transaction date; prefer primary market prices if available; otherwise use secondary market or comparable-item pricing (considering type, quality, age, quantity).
    • Places the burden on lobbyists to produce evidence supporting FMV determinations.
    • Requires lobbyists, upon request by the public official or Secretary of State, to submit supporting evidence for FMV for any reportable financial transaction within 9 days after receipt of the item or service.

Who is affected
- Lobbyists and lobbyist agents (new valuation/reporting responsibilities; potential documentation/administrative burden).
- Public officials and officers who receive gifts (clarer valuation rules affect what must be reported).
- Department of State / Secretary of State (oversight and enforcement of reporting, though fiscal notes indicate no direct state/local fiscal impact).
- Potentially vendors/charities and event organizers (because of the specified exclusions and reporting triggers).

Anticipated impact
- Transparency: Provides clearer, market-based rules to value and report gifts, likely improving consistency of reported data.
- Compliance: Increases documentation and recordkeeping obligations for lobbyists (must substantiate FMV on request within 9 days).
- Administrative: Minimal reported fiscal impact to state or local governments (committee fiscal materials indicate no direct cost).

Notes
- The bill codifies a uniform FMV method to reduce disputes over valuation and narrows some prior ambiguities (e.g., explicit carve-outs for charity event tickets and duty-related conference admissions).
- Because the bill amends the statewide lobbyist/gift reporting scheme, subsequent rulemaking or guidance from the Secretary of State may follow to operationalize evidence standards and enforcement procedures.

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

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