Litigation

JAS Partner: MI Declaratory Ruling a ?Small Victory?

By Peter Hardin

Michigan’s secretary of state has issued a final declaratory ruling about independent political expenditures by corporations following Citizens United, and a watchdog group called the ruling a “small victory.”

Terri Lynn Land, the secretary of state, said the Michigan Chamber of Commerce can spend money from its treasury on independent political expenditures but it may not make contributions to political committees.

?This Declaratory Ruling is a small victory for the people of the state of Michigan who want transparency and accountability in political campaigns,? said Rich Robinson of the Michigan Campaign Finance Network in a statement. ?But we still have a long way to go before we know whose money is driving Michigan politics.?

According to MCFN, a partner of Justice at Stake, the final ruling represented “a dramatic reversal” from a draft ruling in April. The earlier version indicated the Chamber would be permitted to contribute from its treasury to a new political committee called Michigan Chamber PAC III, when then could make independent expenditures. But the final version ruled out such contributions.

MCFN earlier asked Land to help bring ?real transparency and accountability to state election campaigns? through a declaration of rigorous financial-disclosure rules, and the watchdog group said weak campaign finance regulations had allowed more than $45 million worth of television campaign advertisements to go unreported since 2000 (see Gavel Grab).

The newly issued ruling did not address closing Michigan’s loophole on “issue ads,” according to Robinson. These ads stop short of explicitly advocating a candidate’s election or defeat. The declaratory ruling was issued in response to a request from the Michigan Chamber.

Citizens United lifted restrictions on corporate political spending for independent advertising to support or oppose candidates in elections. To learn more about efforts for enhanced campaign finance disclosure in Michigan, click here for earlier Gavel Grab posts; to read about states responding to Citizens United, click here for related Gavel Grab articles.

Full post as published by The Gavel on May 25, 2010 (boomark / email).