- Michigan’s Proposal 2 would limit corporate spending in Michigan politics
- Supporters say the measure would remove the influence of deep-pocketed special interests, while detractors say it would stifle free speech
- If Proposal 2 passes, opponents are almost certain to sue
The ballot measure to limit corporate political spending in Michigan’s political arena had an overwhelming advantage in early results Tuesday, as counties across the state continued to report election results.
Backers of Proposal 2, sponsored by the group Michiganders for Money Out of Politics, had declared victory by 9 p.m., although Bridge Michigan has not called the race and will not do so unless the Associated Press does.
“Our representatives failed to deliver on holding corrupt pay-to-play politics accountable…so we said enough,” said Christy McGillivray, executive director of the group Voters Not Politicians. “And tonight, Michiganders delivered.”
The proposal would prohibit monopoly electric utilities, companies with more than $250,000 in state government contracts and people with close connections to those companies from directly or indirectly contributing to Michigan politicians.
Supporters of the measure, including voter advocacy, environmental and racial justice groups, argue it offers a needed check on corporate lobbyists’ influence in Lansing.
Opponents, including business groups and utilities, argue it violates corporations’ right to free speech and gives unions and out-of-state donors an unfair advantage.
If the measure passes, opponents will likely sue, pointing to past court cases including the US Supreme Court’s 2010 Citizens United ruling that gave corporations the right to make unlimited political expenditures.
Officials for Michiganders for Money Out of Politics say they carefully worded the measure to withstand legal challenges. For instance, it doesn’t address contributions to super PACs that are allowed under Citizens United, and it specifies that if courts void any portion of the proposal, “the remaining portions remain in effect.”
Here’s what to know:
What’s in the proposal
Proposal 2 would expand upon Michigan’s existing prohibition on direct corporate contributions to Michigan candidates while also including company officials, board members and people with “substantial” ownership interests in the companies targeted by the ballot measure.
They’d be barred from funding candidates for governor, attorney general or the state Legislature, members of the Michigan Public Service Commission, state or local political party committees and certain committees that contribute to candidates.
The proposal would also eliminate some avenues through which corporations pay for politicians’ travel and meals.
What’s left out
Proposal 2 would not stop dark money spending by corporations through 501(c)(4) nonprofit organizations, which generally do not have to disclose their donors.
However, it would require dark money groups to report donors if they run advertisements referencing a candidate or ballot issue within 100 days of a general election or 30 days before a primary.
What they’re saying
Proponents have described the initiative as a first step toward tamping down on corporate influence in politics, while contending further action is needed.
“There will need to be more reforms after we pass this ballot initiative,” Proposal 2 organizer Sean McBrearty previously told Bridge Michigan. “But this ballot initiative, we designed to take out the biggest chunk that we can.”
But opponents contend the law’s incomplete reach would put Michigan corporations at a disadvantage in the quest to influence policy, because money could still flow from unions and out-of-state donors that aren’t state contractors.
“This egregious proposal appears to silence the voices of job providers and limit free speech for some while giving others, like labor unions, a free pass,” the Michigan Chamber of Commerce previously said.
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