SB 101

SENATE BILL NO. 101
A bill to amend 1978 PA 472, entitled
"An act to regulate political activity; to
regulate lobbyists, lobbyist agents, and lobbying activities; to require
registration of lobbyists and lobbyist agents; to require the filing of
reports; to prescribe the powers and duties of the department of state; to
prescribe penalties; and to repeal certain acts and parts of acts,"
by amending sections 3 and 4 (MCL 4.413 and 4.414),
section 4 as amended by 2008 PA 289, and by adding section 8a.
the people of the state of michigan enact:
Sec. 3. (1) "Department" means the department of
state.
(2)
"Expenditure" means an advance, compensation for labor, honorarium,
conveyance, deposit, distribution, transfer of funds, loan, payment, pledge, or
subscription of money or anything of value including a contract, agreement,
promise, or other obligation, whether or not legally enforceable, to make an
expenditure. Expenditure does not include the payment of a membership fee
otherwise reported pursuant to under section 8(1)(d) or the cost of travel to visit
and return from visiting a public official for the purpose of communicating
with the public official.
(3) "Fair market value" means the value
of an item or service on the open market that is available to any member of the
public at the time the item or service is exchanged. The fair market value
of an item or service must be determined in accordance with section 8a.
(4) (3) "Financial
transaction" means a loan, purchase, sale, or other type of transfer or
exchange of money, goods, other property, or services for value.
Sec. 4. (1) "Gift" means a payment, advance,
forbearance, or the rendering or deposit of money, items,
services, or anything of value, the fair market
value of which exceeds $25.00, as adjusted under section 19a, in any
1-month period, unless consideration of equal or greater value is received
therefor. Gift includes a payment, advance, forbearance, or the rendering or
deposit of money, services, or anything of value to aid the defense of an
official in the legislative branch or an official in the executive branch
against a legal action not directly related to the governmental duties of the
official. Gift does not include the following:
(a) A campaign
contribution otherwise reported as required by the Michigan campaign finance
act, 1976 PA 388, MCL 169.201 to 169.282.
(b) A loan made in
the normal course of business by an institution as that
term is defined in chapter 1 section 1202 of the banking code of 1999, 1999 PA
276, MCL 487.11101 to 487.11203, MCL 487.11202, a national bank, a branch bank, an
insurance company issuing a loan or receiving a mortgage in the normal course
of business, a premium finance company, a mortgage company, a small loan
company, a state or federal credit union, a savings and loan association
chartered by this state or the federal government, or a licensee as that term is defined by in section 2 of the motor vehicle sales finance act,
1950 (Ex Sess) PA 27, MCL 492.101 to 492.141.MCL 492.102.
(c) A gift received
from a member of the person's immediate family, a relative of a spouse, a
relative within the seventh degree of consanguinity as computed by the civil
law method, or from the spouse of the relative.
(d) A breakfast,
luncheon, dinner, or other refreshment consisting of food and beverage provided
for immediate consumption.
(e) A contribution
to a legal defense fund that is registered with the secretary of state under
the legal defense fund act and whose purpose is to defend an elected official
against any criminal, civil, or administrative action, that arises directly out
of the conduct of the elected official's governmental duties.
(f) A ticket or an offer of free or reduced-price attendance to a
charity event that has the primary purpose of raising money for a nonprofit
organization that is tax-exempt under section 501(c)(3) of the internal revenue
code, 26 USC 501.
(g) Admission to a conference or educational event if the subject matter
of the conference or educational event is directly related to the duties of the
public official who is provided the admission.
(2) "Immediate
family" means a child residing in an individual's household, a spouse of
an individual, or an individual claimed by that individual or that individual's
spouse as a dependent for federal income tax purposes.
(3)
"Loan" means a transfer of money, property, or anything of
ascertainable value in exchange for an obligation, conditional or not, to repay
in whole or in part.
Sec. 8a. (1) The
fair market value of an item or service must be determined as follows:
(a) The basis of market prices on the date that the exchange for the
item or service is made. Price fluctuations that occur before or after the date
of exchange do not affect the fair market value determination.
(b) If the item or service is available on the primary market, the
primary market must be used to determine the fair market value of the item or
service.
(c) If the item or service is not available on the primary market, the
price available to the public on the secondary market must be used to determine
the fair market value of the item or service.
(d) The price available to the general public for the same item or
service must be used as the fair market value.
(e) If the exact same item or service is not available on the primary or
secondary market for purchase by the general public, the price of an item or
service of similar type, quality, age, and quantity, to the extent each factor
is relevant, must be used to determine the fair market value of the item or
service.
(2) A lobbyist bears the burden of providing evidence of the fair market
value of an item or service.
(3) On the request of the public official or the secretary of state, a
lobbyist shall submit evidence that supports the fair market value
determination relevant to any financial transaction required to be reported
under section 8(1)(c), not more than 9 days after receipt of the item or
service involved in the financial transaction.