Michigan nonprofit organizations have a rich
tradition of creating change in their local communities. The Internet drastically
changed the media landscape by offering low-cost opportunities for
organizations to reach wider audiences. Many nonprofits start publishing “calls
to action” information on the internet, urging the public to contact their
elected officials to express their support for or against specific legislation.
While using the web to post information can be effective, it is also important
for Michigan nonprofits to know about and comply with the relevant state law – the
Michigan Lobby Registration Act. This blog summarizes the key aspects of the Michigan
Lobby Registration Act, and some of the more commonly lobbying related issues encountered
by nonprofits organizations. Note that this blog post does not address the
applicability of the IRS regulations applicable to 501(c)(3) organizations, or
other laws that may apply to nonprofits activities. Nonprofits organizations
and lobbyists should consult legal counsel for a complete analysis of their
proposed activities.
What
is the Michigan Lobby Registration Act? The Act applies to all nonprofit’s individuals and
entities in the state. If an individual or entity qualifies as a “lobbyist,” or
an activity amounts to “lobbying” under the terms stated below, a wide variety
of laws will come into effect, including registration, reporting, and
restrictions regarding gifts and entertainment activities.
How
does the state define Lobbying? Under
the Michigan Lobbying Registration Act, “lobbying” is any direct communication
with an “official in the executive branch” or an “official in the legislative
branch” of state government for the purpose of influencing legislative or
administrative action. MCL § 4.415(2). Direct communication includes face-to-face
interactions with the officials and contact by telephone, letter, electronic
media or any other means. For example, emailing the Governor and encouraging
him/her to vote for or against a proposed administrative action qualifies as
lobbying, so does calling Secretary of State and encouraging him/her to vote
for or against legislation.
What
is Grassroots Lobbying?
Grassroots lobbying usually refers to a “call to action” urging the public to
contact their elected officials for or against specific legislation. It focuses
on raising public awareness for a particular cause at the local level with the
intention to influence the legislative process. It does not count as “lobbying”
in Michigan. However, expenditures on advertising and mass mailings, when
conducted as part of a direct lobbying campaign, must be reported.
Who
are the officials subject to Michigan Lobbying Registration Act? Only state level officials in the executive
and legislative branches are subject to Michigan Lobby Registration Act. Examples
of state officials include the Governor, Attorney General, Secretary of State,
department directors and deputies and others. You can see the complete list
here: MCL
§ 4.415(9); MCL § 4.415(10).
Who
needs to register? An
individual or organization must register as a “lobbyist” if it spends more than $2,575 lobby a number of public
officials or more than $650 to lobby a single public official in a 12-month
period. An individual or organization must register as a “lobbyist agent” if it was paid more
than $650 in a 12-month period for lobbying on behalf of employers or clients. For
example, the Michigan Nonprofit Association is a registered lobbyist, and its President
is registered as a lobbyist agent. Please note that these thresholds are
adjusted annually. The thresholds presented are for 2021, available at https://www.michigan.gov/documents/sos/LobbyThresholds_508882_7.pdf.
When
is the deadline for registration?
Any person who exceeds the 12-month thresholds for lobbying expenditures must
register as a lobbyist within 15 calendar days. MCL § 4.417(1). Any person who
exceeds the 12-month thresholds listed for a Lobbyist Agent must register
within 3 calendar days. MCL § 4.417(2).
What
are the reporting requirements? Identical
reporting requirements are imposed on Lobbyists and Lobbyist Agents. A lobbyist
or lobbyist agent needs to file state annual financial report summaries. Once
registered, even if an individual or organization has not lobbied in the past
year, a financial report must be filed for that period. The report filed on
January 31 must cover all the activities from the preceding August 1 through
December 31. The report filed on August 31 must include all activities
occurring during the immediately preceding January 1 through July 31. MCL §
4.418(1).
Can
you request Deadline Extensions for reporting requirements? A
Lobbyist or a Lobbyist Agent may request from the Secretary of State an
extension of the deadline for filing of no more than 60 days. The Secretary of
State will respond in writing to the request within 9 days. MCL § 4.418(1).
How
can you terminate your registration as a lobbyist or lobbyist agent? A Lobbyist or lobbyist agent must file a
notice of termination with the Secretary of State within 30 days after the
person or entity stops lobbying. Termination does not relieve the Lobbyist of
the reporting requirements for that reporting period. MCL § 4.417(4).
What
are the gift restrictions? A
Lobbyist, a Lobbyist’s Agent, or anyone acting on behalf of the Lobbyist or
Lobbyist’s agent may not give any gift or loan to a public official. MCL §
4.421(2). A “gift” is defined as a “payment, advance, forbearance, or the
rendering or deposit of money, services or anything of value,” the value of
which exceeds $25 during any one-month period. MCL § 4.414(1).
Is
entertainment part of the gift restrictions? The prohibition on “gifts” extends to cover
tickets to events. The gift ban does not extend to meals, receptions or other
food and beverages provided for immediate consumption. MCL § 4.414(1)(d). The
costs associated with providing meals or other food must be reported by a
Lobbyist or Lobbyist Agent. MCL § 4.418(1).
Conclusion.
Lobbying laws vary from
jurisdiction to jurisdiction, which means complying with the relevant state law
can be intricate. For Michigan nonprofit organizations, it is important to be
vigilant when navigating potential lobbying laws and consult legal counsel for
guidance on their proposed activities.
By: Jenny(Tianrui) Wang
The following websites provide information on the legalities of lobbying for Michigan nonprofits organizations:
· Michigan Secretary of State, Lobby Disclosure - https://www.michigan.gov/sos/0,4670,7-127-1633_11945---,00.html
· Michigan Lobby Registration Act -http://www.legislature.mi.gov/(S(i2qitdcgi5rbuqexitf0bnyo))/mileg.aspx?page=getobject&objectname=mcl-Act-472-of-1978&queryid=18393748
· Bolder Advocacy (Alliance for Justice) - https://bolderadvocacy.org/wp-content/uploads/2012/02/michigan.lobbying.pdf
· Nonprofit Advocacy, A Michigan Primer - https://mnaonline.org/docman/uncategorized/23-mna-nonprofit-advocacy-michigan-primer/file