SENATE BILL NO. 91


   January 26, 1999, Introduced by Senator PETERS and referred to 
        the Committee on Government Operations.



        A bill to amend 1984 PA 431, entitled

   "The management and budget act,"

   (MCL 18.1101 to 18.1594) by adding section 262a.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 262A.  (1) A CONTRACTOR OR PERSON WHO HAS AN INTEREST

 2    IN A CONTRACTOR, OR THE SPOUSE, PARENT, CHILD, OR SPOUSE OF A

 3    CHILD OF A CONTRACTOR OR PERSON WHO HAS AN INTEREST IN A CONTRAC-

 4    TOR, SHALL NOT MAKE A CONTRIBUTION TO A CANDIDATE OR A COMMITTEE

 5    DURING THE FOLLOWING PERIODS:

 6         (A) THE TIME PERIOD DURING WHICH THE CONTRACTOR HAS A CON-

 7    TRACT WITH THIS STATE.

 8         (B) THE 3 YEARS FOLLOWING THE FINAL EXPIRATION OR TERMINA-

 9    TION OF THE CONTRACTOR'S CONTRACT WITH THIS STATE.

10         (2) A CONTRACTOR OR PERSON WHO HAS AN INTEREST IN A

11    CONTRACTOR, OR THE SPOUSE, PARENT, CHILD, OR SPOUSE OF A CHILD OF


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 1    A CONTRACTOR OR A PERSON WHO HAS AN INTEREST IN A CONTRACTOR,

 2    SHALL NOT MAKE A CONTRIBUTION TO A CANDIDATE OR COMMITTEE THROUGH

 3    A LEGAL ENTITY THAT IS ESTABLISHED, DIRECTED, OR CONTROLLED BY

 4    ANY OF THE PERSONS DESCRIBED IN THIS SUBSECTION DURING THE TIME

 5    PERIOD DESCRIBED IN SUBSECTION (1).

 6         (3) FOR PURPOSES OF THIS SECTION, A PERSON IS CONSIDERED TO

 7    HAVE AN INTEREST IN A CONTRACTOR IF ANY OF THE FOLLOWING CIRCUM-

 8    STANCES EXIST:

 9         (A) THE PERSON HOLDS AT LEAST A 1% INTEREST IN THE

10    CONTRACTOR.

11         (B) THE PERSON IS AN OFFICER OR A MANAGERIAL EMPLOYEE OF THE

12    CONTRACTOR AS DEFINED BY RULES PROMULGATED BY THE DEPARTMENT.

13         (C) THE PERSON IS AN OFFICER OF THE PERSON WHO HOLDS AT

14    LEAST A 1% INTEREST IN THE CONTRACTOR.

15         (D) THE PERSON IS AN INDEPENDENT COMMITTEE OF THE

16    CONTRACTOR.

17         (4) A CONTRACTOR IS CONSIDERED TO HAVE MADE A CONTRIBUTION

18    IF A CONTRIBUTION IS MADE BY A PERSON WHO HAS AN INTEREST IN THE

19    CONTRACTOR.

20         (5) AS USED IN THIS SECTION:

21         (A) "CANDIDATE" MEANS BOTH OF THE FOLLOWING:

22         (i) THAT TERM AS DEFINED IN SECTION 3 OF THE MICHIGAN
             CAM-

23    PAIGN FINANCE ACT, 1976 PA 388, MCL 169.203.

24         (ii) THE HOLDER OF ANY STATE, LEGISLATIVE, OR LOCAL
             ELECTIVE

25    OFFICE.







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 1         (B) "CONTRACTOR" MEANS A PERSON WHO HAS ENTERED INTO A

 2    CONTRACT WITH THIS STATE TO PROVIDE SUPPLIES OR SERVICES

 3    DESCRIBED IN SECTION 261.

 4         (C) "COMMITTEE" MEANS ANY OF THE FOLLOWING:

 5         (i) A CANDIDATE COMMITTEE AS THAT TERM IS DEFINED IN

 6    SECTION 3 OF THE MICHIGAN CAMPAIGN FINANCE ACT, 1976 PA 388, MCL

 7    169.203.

 8         (ii) A POLITICAL PARTY COMMITTEE AS THAT TERM IS DEFINED
             IN

 9    SECTION 11 OF THE MICHIGAN CAMPAIGN FINANCE ACT, 1976 PA 388, MCL

10    169.211.

11         (iii) AN INDEPENDENT COMMITTEE AS THAT TERM IS DEFINED
             IN

12    SECTION 8 OF THE MICHIGAN CAMPAIGN FINANCE ACT, 1976 PA 388, MCL

13    169.208.

14         (iv) A COMMITTEE ORGANIZED BY A LEGISLATIVE CAUCUS OF A

15    CHAMBER OF THE LEGISLATURE.

16         (D) "OFFICER" MEANS EITHER OF THE FOLLOWING:

17         (i) AN INDIVIDUAL LISTED AS AN OFFICER OF A CORPORATION,

18    LIMITED LIABILITY COMPANY, OR LIMITED LIABILITY PARTNERSHIP.

19         (ii) AN INDIVIDUAL WHO IS A SUCCESSOR TO AN INDIVIDUAL

20    DESCRIBED IN SUBPARAGRAPH (i).

















   00446'99          Final page.                            JLB