Michigan Bill Would Bar Corporate Spending in State Elections

A newly introduced bill in the Michigan House would prohibit corporations from spending money to support or oppose political candidates, political parties, political committees and ballot proposals in Michigan.

House Bill 6218, introduced July 3 by a group of Democratic lawmakers, including Rep. Carrie Rheingans of Ann Arbor, is part of a three-bill package that would prohibit corporations, nonprofit corporations and limited liability companies (LLCs) from spending money to support or oppose candidates, political parties, political committees and ballot proposals in Michigan.

The bill has been referred to the House Committee on Election Integrity, where it will receive its first consideration. No hearing has yet been scheduled. If enacted, the proposal would apply to both Michigan-based corporations and corporations headquartered outside the state.

The bill would also give the state several ways to enforce the prohibition.

Under the proposal, prohibited political spending would be considered legally invalid. The Michigan attorney general or the state’s corporate administrator could ask a court to stop the spending before it occurs or seek an order requiring a corporation to return any money or value spent in violation of the law. A Michigan corporation that violates the law could face dissolution, while an out-of-state corporation could lose its authority to do business in Michigan.

The bill would also allow existing contracts and other legal obligations entered into before the law takes effect to remain valid.

House Bill 6218 is only at the beginning of the legislative process. Before becoming law, it would need to be approved by the House, passed by the Michigan Senate and signed by the governor. As with any introduced bill, it could be amended, delayed or fail to advance out of committee.

Featured photo: The Michigan State Capitol rises behind the Michigan state flag in Lansing. House Bill 6218, introduced in the Michigan House of Representatives, would prohibit corporations from spending money to support or oppose candidates, political parties, political committees and ballot proposals if enacted. Photo: iStock.