Tag Archive for Great Lakes Education Project

Omertà: The New Code of Michigan Campaign Finance Reporting

You Are Going to Know A Whole Lot Less The Next Time You Vote

Michael Kowall Image 2The Michigan House and Senate sent a much revised and dramatically expanded Senate Bill 571 H-3 to Governor Snyder last Wednesday. Introduced by Senator Kowall as a 12 page bill establishing some esoteric campaign finance rules for various types of PACs in Michigan, this bill morphed into a 53 page political grab bag incorporating SB 638 S-2 at the very last minute. It creates a whole new way to conceal political expenditures from public scrutiny until long after an election is over. Think of it as the mafia’s code of omertà applied to Michigan campaign finance.

Michigan’s nitwit news media are decrying the limits placed upon a ‘public body’ in Section 57(3), which prevents them from using public funds to propagandize voters on local ballot questions. This limitation doesn’t go far enough. Remember how the Michigan Municipal League, the Michigan Association of Counties, and the county road commissions pulled out all the stops for Proposal 2015-01? No prohibition against this in SB 571 H-3, but there should be. Citizens should not have to fight their tax dollars in the political arena. Section 57(3) would be a real benefit to Michigan politics if it had been extended to state ballot questions, but it wasn’t.

Now to the really devious aspect of SB 571 H-3, which our nitwit media missed. MCL 169.233(3)(a) currently requires ‘independent committees’ to report their financial expenditures on behalf of candidates and ballot questions four times a year. ‘Independent committees’ currently have to file reports on their campaign finance activities during February, April, July, and October. This is not quite a quarterly basis, but it is fairly well spaced out through the year. MCL 169.233(1) already exempts ‘independent committees’ from the regular election campaign statement reporting schedule – immediately before and after elections – required of most other committees. MCL 169.233(5) requires ‘independent committees’ to file reports of expenditures made within 45 days before a special election, but it is easy to use prepayments and accounts payable to avoid this window during most special elections. And this 45 day reporting window does not exist for regular elections. So you are only going to get quarterly reports from ‘independent committees, except in rare circumstances.

Section 33(3) of SB 571 H-3 completely eliminates the February campaign finance report for all types of committees, including independents. This creates a bastard reporting schedule consisting of two quarterly reports and one semiannual report five months after November elections.. Most political committees have to file pre and post election statements, so their campaign expenditures and sources of funds will continue to be known on a timely basis, regardless of this change. But independent committees are not required to file pre and post campaign reports for regular elections, so they will now have a six month interval after their October reports before they have to report their finances – on April 25th of the following year.

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Come Out, Come Out, Whoever You Are!

The Election's Over, Your 10 Days Are Up, File Your Damned Campaign Finance Statements

Richard D. McLellan

Richard D. McLellan

A scratch corporation named Michigan’s Voice (LARA 71630M) was registered with Michigan’s Licensing and Regulatory Affairs Department on 26 October by a connected lawyer, Richard D. McLellan. He signed the Articles of Incorporation on 15 October.

Michigan's Voice Flyers

Michigan’s Voice Flyers

Just in time to mail two obnoxious, lying flyers knifing Jim Storey, the second place finisher in the 80th House District special primary held on 03 November. The address used for the Michigan’s Voice LARA filing and printed on the flyers was not Richard McLellan’s, rather it was that of Eric E. Doster’s law firm Doster Law Offices, PLLC.

Close Up, Michigan's Voice Flyer

Close Up, Michigan’s Voice Flyer

 

 

The Michigan Campaign Finance Act, PA 388 of 1976, requires all committees engaged in Michigan politics to file a Statement of Organization within 10 days of being formed. MCL 169.221 Section 21(9) also requires all committees to designate a Treasurer before receiving and disbursing funds. MCL 169.232 Section 32(9) further requires all committees to report late contributions [those received after 18 October in this election] be filed with the SoS within 48 hours of receipt as well. Michigan’s Voice has done none of this.

Committees are defined in MCL 169.203, Section 3(4) as:

“a person who receives contributions or makes expenditures for the purpose of influencing or attempting to influence the action of the voters for or against the nomination or election of a candidate,………., if contributions received total $500.00 or more in a calendar year or expenditures made total $500.00 or more in a calendar year.”

The word ‘person’ in this act is used in the legal sense and most definitely refers to a corporation registered at LARA, fiddling in politics. Michigan’s Voice is assuredly a committee under the MCFA.

Michigan's Voice Articles, Page 1

Michigan’s Voice Articles, Page 1

Twenty-one days have passed since Richard McLellan signed Michigan’s Voice’s Articles of Incorporation and 10 days have passed since those Articles of Incorporation were officially filed by LARA. I received the first Michigan’s Voice flyer on 28 October, so arrangements and payments must have been made days before that. Arena Communications of Salt Lake City, the Michigan’s Voice mailings’ designer and printer, isn’t that quick and the U.S. Postal Service certainly isn’t. So the MCFA 10 day grace period has been sorely abused.

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The ‘Money Poll’ in Michigan’s 80th District House Race

Mary Whiteford - the Establishment's Revenge for Proposal 1's Defeat?

More campaign finance reports are trickling in to the Secretary of State’s Bureau of Elections and it is clear that an avalanche of money from establishment Republicans is backing Mary Whiteford in the State House of Representatives 80th District special election. You have to dig a little to figure out just how much money and from where, but most of the evidence is available. Let’s call this the ‘money poll’.

Mary Whiteford Image 2Ms. Whiteford’s official committee (BoE 516401) has collected $ 28,200, plus another $ 2,807.96 of in kind contributions (actually expenditures) by the candidate herself. Great Lakes Education Project, an IRS 527 political action committee, has been furiously mailing cards supporting Mary Whiteford and trashing Cindy Gamrat. – $ 15,477 worth. So a total of $ 46,484.96. Another group, Michigan’s Voice (LARA 71630M), has made at least one mailing on Mary Whiteford’s behalf, but little is known about this recently incorporated (10/26/15) group and they have made no filings with the SoS BoE. By law they have 10 days to file, so we probably won’t know anything further about their efforts until after the primary. A well targeted mailing in the 80th costs around $ 4,000, so the Michigan’s Voice effort elevates Ms. Whiteford’s total funding in this special primary above $ 50,000.

Only 26 of Ms. Whiteford’s contributions – $ 6,300 – came from within the 80th District (excluding the candidate’s own contributions), far less than the 200 plus contributions that came to her from within the District in her first election attempt last year. This year, 85% plus of her funding is coming from establishment Republicans from outside the 80th.

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