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Michigan non-profits organization lobbying guide under Michigan Lobby Registration Act

 

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

 ·       National Conference of State Legislatures, How States Define Lobbying and Lobbyist - https://www.ncsl.org/research/ethics/50-state-chart-lobby-definitions.aspx



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