DEPARTMENT OF STATE

                            ELECTIONS DIVISION

                            CAMPAIGN FINANCING


(By authority conferred on the secretary of state by  section   15   of   Act 
No. 388 of the Public Acts of 1976, as  amended,  being   S169.215   of   the 
Michigan Compiled Laws)


                        PART 1. GENERAL PROVISIONS


R  169.1   Definitions.
  Rule 1. (1) As used in these rules:
  (a) "Act" means Act No. 388 of the Public Acts of 1976,  being  S169.201 et 
seq. of the Michigan Compiled Laws.
  (b) "Address" means building number, street or rural  route,  city,  state, 
and zip code.
  (c) "Campaign" or "candidate's campaign" means  the  candidate  committee's 
activities for a specific election.
  (d) "Official depository" means a bank, savings and  loan  association,  or 
credit union, chartered by the state or the United States,  and  located  and 
doing business in Michigan.
  (e) "Value," "ascertainable monetary value," "anything of value," "thing of 
value," or "cash equivalent" means the amount usually received  in  the  open 
market for goods and services.
  (2) The terms defined in the act have the  same  meaning   when   used   in 
these rules.

  History:  1979 AC.


R  169.2   Secretary of state and county clerk; duties  and  requirements.
  Rule 2. (1) The duties and requirements imposed upon   the   secretary   of 
state by the act and these rules may be performed by an agent,   and   at   a 
place, designated by the secretary of state.
  (2) The duties and requirements imposed upon a county clerk  by   the   act 
and these rules may be performed by an agent, and at a  place,  designated by 
the county clerk.

  History:  1979 AC.


R  169.3   Statements,  reports,  amendments,   or   applications;   form;
  attachments; entries; signature; inspection and copying.
  Rule 3. (1) A statement, report, amendment, or application  required  to be 
filed by the act shall be filed in  duplicate  on  a   form   prescribed   or 
approved previously by the secretary of state. An  attachment   to   a   form 
shall not be on a page differing in size from the  form  prescribed,   unless 
approved previously by the filing official.
  (2) An entry on a statement, report, amendment, or  application  shall   be 
printed legibly in ink or typed and shall be suitable for reproduction.
  (3) A person filing a statement or report  required  by   the   act   shall 
complete each item of information requested or shall note  clearly  that  the 
item of information is not applicable to the filer.
  (4) Committee statements and reports shall be signed by  the  treasurer  of 
the committee and, if a candidate committee, also by the  candidate,  on  the 
line indicated following the verification statement. A person, other  than  a 
committee, required to file by the act shall sign  a  document  on  the  line 
indicated following the verification statement.
  (5) Inspection and copying of statements and reports   shall   take   place 
only at the office of the filing official.
  (6) A  filing  official  shall  prepare  and  post  a   list   of   general 
guidelines and rules  with  respect  to  the  inspection   and   copying   of 
documents and shall post a schedule of charges for copies.

  History:  1979 AC; 1982 AACS.


R  169.4   Reports or statements; late filing fee; date of filing.
  Rule 4. (1) If a report or statement is filed after the filing date  and is 
not accompanied by a late filing fee,  the  report  or  statement  shall   be 
received and considered filed as of that date. The filer shall  be  given   a 
written notice of the amount of the late filing fee due and unpaid.
  (2) If payment of the late filing fee assessed by the secretary of state is 
not made within 30 days of the date  of  the  written  notice,   the   filing 
official shall notify immediately the Michigan department  of   treasury   of 
the failure to pay so the latter may collect the late filing fee.
  (3) A late filing fee assessed  by  the  secretary  of   state   shall   be 
forwarded to the state treasurer for deposit to the credit  of  the   general 
fund of the state.

  History:  1979 AC; 1982 AACS.


R  169.5   Reports  or  statements;   nonreceipt;   list;   requests   for
  information; telephone inquiries.
  Rule 5. (1) A filing official, within 5 business days  following  a  filing 
date required by the act, shall prepare a list of  persons   whose   required 
reports or statements have not been received. This list  shall  be  available 
for public inspection and  copying.  Prior  to  completion   of   the   list, 
inquiries relative to the receipt of filings shall be   submitted   only   in 
writing or in person.
  (2) Upon receipt of any inquiry requesting information  relative   to   the 
contents of any report or statement filed  with  a   filing   official,   the 
filing official shall inform the person requesting information  of   all   of 
the following:
  (a) The report or statement is available for inspection   or   copying   at 
the office of the filing official.
  (b) A copy of any page of the  report  or  statement   requested   may   be 
obtained by payment of the applicable copying charge.
  (c) A request for a copy of a report or statement shall  not   be   honored 
until receipt by the filing official of the applicable copying charge.
  (3) A telephone inquiry relative to a  substantive  matter   in   a   filed 
report or statement shall not be answered. A telephone inquiry by a  filer or 
an agent of the filer relative to a report or statement  of  the  filer shall 
be answered.

  History:  1979 AC; 1982 AACS.


R  169.6   Declaratory rulings.
  Rule 6. (1) The secretary of state, on written request  of  an   interested 
person, may issue a declaratory ruling as to the applicability of the  act or 
these rules to an actual statement of  facts.  An  interested  person  is   a 
person whose course of action would be affected by the declaratory ruling.
A brief or other reference to legal authorities,  upon   which   the   person 
relies for determination of the applicability of the act or of  a   rule   to 
the statement of facts, may be submitted with the request.
  (2) If the secretary of state decides to issue a  declaratory  ruling,  the 
person requesting it shall be furnished with a statement to  that  effect.
The statement shall set forth the  time  in  which  the   ruling   shall   be 
issued.
  (3) The secretary of state may refuse to issue a  declaratory   ruling   if 
the request is anonymous, or  it  is  determined  the   subject   matter   is 
frivolous on its face, indefinite, or lacks specificity. If the  secretary of 
state refuses to issue a  declaratory   ruling,   the   person   making   the 
request, if known, shall be notified of the reason for the refusal.
  (4) A ruling shall include the statement of facts, the legal  authority, if 
any, and the rationale on which the  secretary  of  state  relies   for   the 
ruling, and the determination.

  History:  1979 AC.


                            PART 2. COMMITTEES

R  169.21   Committee treasurer; appointment.
  Rule 21. A committee shall appoint a treasurer before filing a statement of 
organization.

  History:  1979 AC.


R  169.22   Committee treasurer; vacancy; resignation.
  Rule 22. (1) A vacancy in the office of committee treasurer  is  created by 
death, resignation, or removal from office of the appointing authority.
  (2) A committee treasurer who has resigned or who has  otherwise  ceased to 
act as committee treasurer may notify the filing official of  that   fact  in 
writing.

  History:  1979 AC; 1982 AACS.


R  169.23  Rescinded.

  History:  1979 AC; 1982 AACS.


R  169.24   Statement of organization; designation of committee name.
  Rule 24. A statement of organization, filed  by  a   committee   which   is 
commonly known by  initials  only,  shall  state  the  full   name   of   the 
committee. Thereafter, filing of reports and amendments  may  designate   the 
name of the committee by initials only.

  History:  1979 AC.


R  169.25   Statement   of    organization;    receipt;    acknowledgment;
  identification number.
  Rule 25. Upon  receipt  of  a  statement  of   organization,   the   filing 
official shall assign an identification number to   the   filing   committee, 
acknowledging receipt of the filing, and shall notify the  committee  of  the 
identification number. The identification number shall be  entered   by   the 
committee on each page of the subsequent statements or reports  filed  and on 
communications concerning statements or reports.

  History:  1979 AC; 1982 AACS.


R  169.26   Statement   of   organization;   changes,   corrections,    or
  amendments.
  Rule  26.  A  change,  correction,  or  amendment  to   a   statement    of 
organization shall identify the paragraph containing the  information  to  be 
changed, corrected, or amended.

  History:  1979 AC.


R  169.27   Statement of organization; committee supporting candidates for
  state and federal office.
  Rule 27. A committee supporting a candidate for  federal   office   and   a 
candidate for office in this state shall file a  statement  of   organization 
for the committee of the candidate for office in this state.

  History:  1979 AC.


R  169.28   Dissolution statement.

  Rule 28. (1) A committee which determines  it  will   no   longer   receive 
contributions  or  make  expenditures  may  dissolve  by   filing   a    form 
prescribed by the secretary of state.
  (2) A dissolution shall consist of a campaign statement  that  covers   the 
period from the closing date of the last  report  filed  to   the   date   of 
dissolution and shall  include  a  statement  as  to   the   disposition   of 
residual funds.
  (3) A committee may not dissolve if it has assets,  outstanding  debts,  or 
unpaid late filing fees.

  History:  1979 AC; 1982 AACS.


R   169.29    Applicabilty.
   Rule 29.  R 169.29a to 169.29d govern solications of contributions by, and 
campaign  contribution  limits  on,  political  committees  and   independent 
committees established by  a  corporation,  joint  stock  company,  or  labor 
organization, including a parent, subsidiary, branch,  division,  department, 
or local unit of a corporation, joint stock company, or  labor  organization, 
under this act.

   History:  1996 AACS.


R    169.29a   Contribution limitations.
   Rule  29a.   (1)  All  affiliated  political  committees  share  a  single 
contribution limitation for purposes of section 52(1) of the act.
   (2) All affiliated independent  committees  share  a  single  contribution 
limitation for purposes of section 52(1) of the act.
   (3) All affiliated political committes and independent committees share  a 
single contribution limitation for purposes of section 52(1) of the act.

  History:  1996 AACS.


R    169.29b   Affiliated organizations.
   Rule  29b.   (1)  All  political  committes  and  independent   committees 
established, financed, maintained, or controlled  by  the  same  corporation, 
joint stock company, or labor organization, including a  parent,  subsidiary, 
branch, division, department, or local unit of the corporation,  company,  or 
organization, are affiliated.   "Local  unit"  may  include,  in  appropriate 
cases, a franchise, licensee, or state or regional association.
   (2) Affiliated committees sharing a single contribution limitation include 
all of the  committees  established,  directed,  controlled,  or  financially 
supported by 1 of the following entities:
   (a) A single "for profit" corporation or joint  stock  company,  including 
its subsidiaries.
   (b) A single national or international union,  including  its  subordinate 
organizations, such as local unions, branches, divisions, or departments.
"Subordinate  organizations"  does   not   include   an   independent   labor 
organization that is voluntarily associated with  another  independent  labor 
organization.
   (c) An organization of national or international unions, including all  of 
its state and local central bodies.
   (d) A non-profit corporation, including trade or professional associations 
and related state and local entities of the corporation.

  History:  1996 AACS.


R 169.29c   Hearings.
   Rule 29c.  (1) A corporation, joint stock company, labor organization,  or 
committee that is aggrieved by the applixation of section 52(9) of the act or 
R 169.29a or R 169.29b may request a hearing to determine if the grievant  is 
affiliated with another corporation, joint stock company, labor organization, 
or committee.  A request for hearing shall be filed with  the  Department  of 
State,  Bureau  of  Hearings,  208  N.  Capitol  Avenue,  Lansing,   Michigan 
48918-2160.
    (2) A request for hearing shall be made in writing and  shall  include  a 
statement of the grounds for appeal and a clear and concise statement of  the 
facts and law relied on and the relief sought.   The  request  shall  include 
full and complete copies of  each  constitution,  charter,  bylaw,  contract, 
regulation, accounting procedure, fee structure, and other  document  bearing 
upon the organizational subordination or  independence  of  the  corporation, 
joint stock company, labor organization, or committee requesting the hearing.
   (3) The hearing shall be conducted in accordance with the  procedures  set 
forth in chapter 4 or Act No. 306 of the Public Acts  of  1969,  as  amended, 
being SS24.273  to 24.287 of the Michigan Compiled Laws.

  History:  1996 AACS.


R 169.29d  Final decisions.
   Rule 29d.  When a hearing is requested under  R  169.29c,  the  bureau  of 
hearings shall issue a final decision within 60  days  after  the  bureau  of 
hearings receives the request.  If the person requesting  the  hearing  seeks 
and is granted an adjournment, then the 60-day period  for  issuing  a  final 
decision shall be extended  by  the  number  of  days  that  the  hearing  is 
adjourned.  The 60-day period only applies when  a  complete  request  for  a 
hearing has been received under R 169.29c(2).

   History:  1997 AACS.


             PART 3. REPORTS, CONTRIBUTIONS, AND EXPENDITURES

R  169.31   Recording and reporting contributions from same donor.
  Rule 31. A committee treasurer shall record and  report  each  contribution 
from the same donor under the identical name used to  record   the   original 
contribution.

  History:  1979 AC.


R  169.32   Reporting unpaid debts.
  Rule 32. An unpaid debt of a committee shall be reported  until   paid   or 
discharged. An unpaid late filing fee is an unpaid debt of a committee.

  History:  1979 AC; 1982 AACS.


R  169.33   Expenditure; notation on receipt or cancelled check.
  Rule 33. A receipt or cancelled check, or a copy thereof, which is  used to 
vouch for an expenditure, shall have  a  notation  on  or  attached   thereto 
stating the purpose of the expenditure.

  History:  1979 AC.


R  169.34   In-kind contributions.
  Rule 34. The value of an in-kind contribution is the  amount  which   could 
usually be received in the open market for goods and services.  The  value of 
an in-kind contribution which is loaned or permitted to be used is  the  fair 
market rental value of the item or services.  A  committee  which  is charged 
less than the fair market value or fair rental value of an item  or  services 
shall report the difference between the amount  charged  and  the fair market 
value or fair rental value as an in-kind contribution.

  History:  1979 AC; 1982 AACS.


R  169.35   Contribution; corporate check.
  Rule 35. A committee treasurer, other than a  ballot   question   committee 
treasurer, shall not accept  as  a  contribution  a  check   written   on   a 
corporate account, except as provided in sections 54 and 55 of the act.

  History:  1979 AC; 1982 AACS.


R  169.35a   Contribution; partnerships; reporting.
  Rule 35a. (1) A contribution drawn on a  partnership   account   shall   be 
attributed to the partners as individuals, and not to  the  partnership,   if 
the contribution is accompanied by a written statement  containing  the  name 
and address of each contributing partner and the amount  of  each   partner's 
contribution. The statement shall include the   occupation,   employer,   and 
principal place of business of each individual who  is  a   member   of   the 
partnership and contributed $200.01 or more for that election.
  (2) A  committee  which  receives  a  written   statement   attributing   a 
partnership contribution to the partners as individuals  shall   report   the 
contribution as if the committee had received a  separate  contribution  from 
each individual.

  History:  1979 AC; 1982 AACS.


R  169.36   Printed material or other campaign  media;  identification  or
  disclaimer; exemption.
  Rule 36. (1)  Printed  material  having  reference  to   an   election,   a 
candidate,  or  a  ballot  question  shall  bear   the   identification    or 
disclaimer, or both, provided in section 47 of the act in a place  and  in  a 
print clearly visible to and readable by an  observer.   Any   other   medium 
used for campaign purposes shall clearly  and   unequivocally   include   the 
identification or disclaimer, or both, provided in section 47 of the  act.
  (2) The identification required by section 47 of  the   act   for   printed 
material shall include the words "Paid for by," followed by the full  name of 
the person or committee paying for  the  material   and   the   person's   or 
committee's street number or post office box, city or town,  state,  and  zip 
code. A disclaimer shall be in the same form as  an  identification,   except 
that it shall be preceded by the phrase "Not authorized  by   the   candidate 
committee of (candidate's name)."
  (3) A campaign item, the size of which makes it unreasonable  to   add   an 
identification or disclaimer, or both, as designated by  the   secretary   of 
state, is exempted from this rule.

  History:  1979 AC; 1982 AACS.


R  169.37   Cash  or  cash  equivalents  on   hand   following   election;
  reporting.
  Rule 37. (1) The cash on hand at beginning of accounting  period  shall  be 
part of the aggregate receipts for the next ensuing election, but need not be 
further itemized.
  (2) A committee  shall  not  qualify  for  a  reporting   waiver   if   the 
committee has cash on hand in excess of the amount   specified   in   section 
24(4) of the act.

  History:  1982 AACS.


R  169.38   Petty cash fund.
  Rule 38. (1) A committee treasurer may establish a petty cash fund.
  (2) A petty cash fund shall be established  only   from   funds   withdrawn 
from a committee account.
  (3) A person making payments from  a  petty  cash   fund   shall   maintain 
records of the amount and purpose of each expenditure   and   shall   deliver 
the records to the committee treasurer.

  History:  1979 AC; 1982 AACS.


R  169.39  Rescinded.

  History:  1979 AC; 1989 AACS.


R  169.39a   Expenditures not included in limitation.
  Rule 39a. Expenditures made with moneys other than  those   received   from 
the state campaign fund which  shall  not  be  included   for   purposes   of 
determining whether the limit described in section 67(1) of   the   act   has 
been exceeded include, but are not limited to, the following:
  (a) Expenditures necessitated by security   requirements   established   by 
the director of the department of state police.
  (b) Legal and accounting expenditures incurred by a  committee  solely  for 
the purpose of insuring compliance with the act by that committee.
  (c) Expenditures incurred in  response  to  a   written   complaint   filed 
pursuant to the act or these rules or in response to a notice  of  error   or 
omission initiated by the secretary of state.
  (d)  Post-election  winding  down   expenditures    subsequent    to    the 
gubernatorial primary for candidate committees not   participating   in   the 
general election and subsequent to  the  general   election   for   candidate 
committees participating in the general  election,   including   expenditures 
for either of the following activities:
  (i) Record storage required by section 22 of the act.
  (ii) Communications with contributors or other persons  who   assisted   in 
the campaign, thanking them for their assistance,  if  these   communications 
occur not more than 60 days after the election.
  (e) Late filing fees as assessed under the act.

  History:  1982 AACS.


R 169.39b Expenditures for candidate advertisements.
  Rule 39b. (1) Except as otherwise provided in this rule, an expenditure for 
a communication that uses  the  name  or  likeness  of  1  or  more  specific 
candidates is subject to the prohibition on contributions and expenditures in 
section 54 of the act if the communication is broadcast or distributed within 
45 calendar days before the date of an election in which the candidates  name 
is eligible to appear on the ballot.
  (2) This rule does not apply to any of the following:
  (a) An expenditure for communication by a  person  with  the  persons  paid 
members  or  stockholders  and  individuals  who   can   be   solicited   for 
contributions to a separate segregated fund.
  (b) An  expenditure  for  nonpartisan  voter  registration  or  nonpartisan 
get-out- the-vote activities, including the production  and  distribution  of 
voter guides, that is made by an organization that  is  exempt  from  federal 
income tax under section 501(c)(3) of the internal revenue code of  1986,  26 
U.S.C. 501(c)(3) or any successor statute.
  (c) An expenditure for communication by a qualified  nonprofit  corporation 
as defined in subrule (3) of this rule.
  (3) A nonprofit corporation  shall  be  considered  a  qualified  nonprofit 
corporation for the purposes of this rule if all of the following  conditions 
are met:
  (a) The corporation's only express purpose is the  promotion  of  political 
ideas, including issue advocacy, election influence activity,  and  research, 
training, or educational activity that is expressly tied to the corporation's 
political goals.
  (b) The corporation does not engage in business activities.
  (c) The corporation does not have shareholders or other persons, other than 
employees and creditors who do not have  an  ownership  interest,  affiliated 
with the corporation in any way that could allow the  shareholders  or  other 
persons to make a claim on the corporation's assets or earnings.
  (d) The corporation does not offer or provide to any person a benefit  that 
is a disincentive for the person to disassociate from the corporation on  the 
basis of the corporation's position on a political issue. A benefit includes, 
but is not limited to, the following:
  (i) Credit cards, insurance policies, or savings plans.
  (ii) Training, education, or business information, other than that which is 
necessary to  enable  the  recipient  to  engage  in  the  promotion  of  the 
corporation's political beliefs.
  (e) The corporation was not established by, or affiliated with, a  business 
corporation, joint stock company,  domestic  dependent  sovereign,  or  labor 
organization.
If the corporation is unable,  for  good  cause,  to  demonstrate  that  this 
requirement is satisfied, then the corporation shall have  a  written  policy 
against  accepting  donations  from  business   corporations,   joint   stock 
companies, domestic dependent sovereigns, or labor organizations.
  (f) The corporation is registered under section 501(c)(4) of  the  internal 
revenue code of 1986, 26 U.S.C. 501(c)(4).

  History:  1998 - 2000 AACS.


R  169.39c  Affirmative consent; effectiveness.
  Rule 39c.  The affirmative consent required by section  55(6)  of  the  act 
shall be effective only through December 31 of the year for which it is given.

  History:  1998 - 2000 AACS.


R  169.39d  Affirmative consent; form.
  Rule 39d.  (1) The affirmative consent required by section 55(6) of the act 
shall be given in writing and  shall  include,  at  a  minimum,  all  of  the 
following:
  (a) A notice, which shall read as follows:
  Affirmative Consent to Political Contributions
Section  55(6)  of  the  Michigan  Campaign  Finance  Act  provides  that   a 
corporation, a joint stock company, a  domestic  dependent  sovereign,  or  a 
labor organization "may  solicit  or  obtain  contributions  for  a  separate 
segregated fund established under this section from an  individual  described 
in subsection (2), (3), (4), or (5) on automatic  basis,  including  but  not 
limited  to  a  payroll  deduction  plan,  only  if  the  individual  who  is 
contributing to the fund affirmatively consents to the contribution at  least 
once in everycalendar year."
  (b) The contributor's first, middle, and last names.
  (c) The amount of money to be withheld from the contributor's wages or  the 
percentage of the contributor's wages to be withheld.
  (d) The frequency with which the withholding is to  be  accomplished.   The 
withholding may be per day period, per week, per month, or per year.
  (e) The name of the committee to which the  withheld  earnings  are  to  be 
transferred.
  (f) The calendar year for which the consent is given.
  (2) The written affirmative consent  shall  be  signed  and  dated  by  the 
contributor.

  History:  1998 - 2000 AACS.


R 169.39e  Solicitations by separate segregated funds.
  Rule 39e. (1) A for profit corporation or joint stock company  may  solicit 
the employees  of  its  subsidiaries  who  have  policy  making,  managerial, 
professional, supervisory, or administrative nonclerical responsibilities and 
their spouses.
  (2)  A  labor  organization  whose  membership  consists  of  other   labor 
organizations may solicit those individuals that are members  of  its  member 
labor organizations and their spouses.  A labor organization whose membership 
consists of other labor organizations may solicit the employees of the member 
labor  organizations  who  have  policy  making,  managerial,   professional, 
supervisory, or administrative nonclerical responsibilities and their spouses.

  History:  1998 - 2000 AACS.


                        PART 4. STATE CAMPAIGN FUND

R  169.41   State campaign fund; reservation of funds.
  Rule 41. On or before January 1 of each year in which   an   election   for 
governor is held, the state treasurer shall:
  (a) Reserve 3% of the funds available in the state campaign  fund  to  make 
necessary adjustments required by formulas set  forth   in   section   65(2), 
(3), (4), and (5) of the act.
  (b) Reserve the maximum amount that each candidate  for   governor   of   a 
major political party is entitled to receive for the general election.

  History:  1979 AC.


R  169.42   State campaign fund; payments to candidates.
  Rule 42. The state treasurer, beginning on January 1  of   each   year   in 
which an election for governor is held,  shall   make   payment   immediately 
from the state campaign fund  to  eligible  candidates  on   the   basis   of 
candidate applications which have been approved by the  secretary  of   state 
and forwarded to the state treasurer.

  History:  1979 AC.


R  169.43   Public funding of elections; qualifying contributions.
  Rule 43. Qualifying contributions for public funding of  the   primary   or 
general elections may be obtained from April 1 of the  year   preceding   the 
year in which a governor is elected until December 31 of the year in which a  
governor  is  elected,  or   until   the   candidate   committee   files    a 
dissolution statement, whichever occurs first.

  History:  1979 AC.


R  169.44   Public funding of elections; application; approval.
  Rule 44. An application for public  funds  shall  be   submitted   to   the 
secretary of state not later than December 15 following  the  election.   The 
secretary of state shall not approve a   post-election   application   unless 
the committee demonstrates that the amount applied for is  necessary  to  pay 
qualified campaign expenditures.

  History:  1982 AACS.


R  169.45   Public  funding  of  elections;   post-election   application;
  accompanying statement; contents.
  Rule  45.  A  post-election  application  for  public   funds   shall    be 
accompanied by a statement which indicates the balance  of  the   committee's 
public funds on hand and a list of receipts  and   expenditures   of   public 
funds between the closing date of the last campaign   statement   filed   and 
the date the application is filed.

  History:  1982 AACS.


R  169.46   Public funding of elections; return  of  funds;  post-election
  returns; return period; exception.
  Rule 46. (1) Public funds held by a committee shall be  returned   to   the 
state within 60 days after the election, unless the  committee  has  obtained 
prior written approval for retention of the funds from   the   secretary   of 
state and the funds retained are  directed  to,  and  not   in   excess   of, 
qualified campaign expenditures.
  (2) The secretary of state may require a committee  to   file   a   monthly 
report accounting for the use of any funds retained   pursuant   to   subrule 
(1) of this rule.

  History:  1982 AACS.


R  169.47   Public  funding  of  elections;  return  of  funds;  voluntary
  returns; accompanying statement; contents; prompt returns.
  Rule 47. (1) When a committee voluntarily  terminates   its   public   fund 
account, it shall return any balance to  the  state.  If   the   account   is 
terminated after the closing date of the  post-election  campaign   statement 
for the election for which public funds were received,  the  committee  shall 
provide the secretary of state with a written   statement   indicating   that 
the committee's public fund account contains a zero  balance.  The  statement 
shall be accompanied by a list of  receipts  and   expenditures   of   public 
funds between the closing date of the last campaign   statement   filed   and 
the date the written statement is filed.
  (2) A committee which has  terminated  its  public   fund   account   shall 
promptly return  to  the  state  any  refund  or  rebate   arising   out   of 
expenditures for which public funds were originally used  or   any   proceeds 
from the sale of assets originally purchased with public funds.

  History:  1982 AACS.


R  169.48   Public funding of elections; return of  funds;  submission  by
  written instrument.
  Rule 48. Public funds returned to the state shall be   submitted   to   the 
secretary of state by  written  instrument  made  payable   to:   "State   of 
Michigan."

  History:  1982 AACS.


                   PART 5. COMPLAINTS AND INVESTIGATIONS


R  169.51   Complaint generally.
  Rule 51. A person who believes a violation of the act or  these  rules  has 
occurred may file a written complaint  in  person  or  by   mail   with   the 
secretary of state.

  History:  1979 AC.


R  169.52   Complaint; form and contents.
  Rule 52. (1) A complaint shall be typewritten or handwritten  in  ink.  The 
complainant's name, address, and telephone number shall  be  typewritten   or 
handprinted upon the complaint. A complaint shall   include   the   following 
verification statement: "I certify that the statements set  forth  above  are 
true to the best of my knowledge and belief." A complaint shall be  signed by 
the complainant immediately following the verification statement.
  (2) A complaint shall name the alleged violator, set  forth   the   alleged 
violator's address, describe in reasonable detail  the   alleged   violation, 
and identify all available evidentiary material.

  History:  1979 AC.


R  169.53   Complaint; dismissal.
  Rule 53.  If,  upon  reading  the  complaint,  the   secretary   of   state 
determines a complaint is frivolous, illegible, indefinite,  or  unsigned, or 
does not identify an alleged violator, allege a violation of the act or these 
rules, or contain a verification statement,  the  secretary   of   state  may 
summarily dismiss the  complaint  without  prejudice.  If  a   complaint   is 
summarily dismissed, the complainant shall be notified in   writing   as   to 
the reason the complaint was dismissed.

  History:  1979 AC.


R  169.54   Complaint; indication to person against whom allegation  made.
  Rule 54. If a complaint is not summarily dismissed, or if the  secretary of 
state, upon examination of a report filed pursuant to  the  act,  finds there 
may be reason to believe  a  violation  of  the  act  or  these   rules   has 
occurred, the secretary of state shall indicate immediately,  to  the  person 
against whom an allegation is made, the following:
  (a) A complaint has been made alleging, or examination of  a  filed  report 
indicates, possible violation of the act or these rules.
  (b) The specifics of the alleged violation.
  (c) The identity of the complainant if a complaint has been filed.
  (d)  The  provisions  of  these  rules  relative    to    complaints    and 
investigations.

  History:  1979 AC.


R  169.55   Preliminary  review  of  alleged   violation;   dismissal   of
  complaint; notice of informal hearing.
  Rule  55.  (1)  The  secretary  of  state,  upon   written   complaint   or 
examination of  a  report  filed  pursuant  to  the  act,   may   conduct   a 
preliminary review of an alleged violation to determine if   there   may   be 
reason to believe a violation of the act or these rules has occurred.
  (2)  If,  following  a  preliminary  review,  the   secretary   of    state 
determines there is no reason  to  believe  an  allegation   is   true,   the 
complaint shall be dismissed. Notice of this decision shall   be   given   by 
the secretary of state to the complainant and the person  against   whom   an 
allegation has been made.
  (3)  If,  following  a  preliminary  review,  the   secretary   of    state 
determines there may be reason to  believe  an  allegation   is   true,   the 
secretary of state may take either of the following actions:
  (a) Notify the person against  whom  the  allegation  is   made   and   the 
complainant that an informal hearing will be  held   to   determine   whether 
there is reason to believe a violation of  the  act  or   these   rules   has 
occurred.
  (b) Attempt to correct or prevent further violation by informal  methods of 
conference, conciliation, and  persuasion,  and  enter  into  a  conciliation 
agreement with the person involved. If the secretary of state  is  unable  to 
correct or prevent further violation by these informal  methods,  the  person 
against whom the allegation is made and the complainant  shall  be   notified 
that an informal hearing shall be  held  to  determine   whether   there   is 
reason to believe a violation of the act or these rules has occurred.
  (4) The notice shall  give  the  parties  involved   reasonable   time   to 
appear, if they choose to do so. The parties shall be notified  of  the  time 
and place of the hearing, that they may appear in person   or   by   counsel, 
and that they may give testimony.

  History:  1979 AC; 1982 AACS.


R  169.56   Informal hearing; dismissal of complaint; notice of  decision.
  Rule 56. (1) If, following the informal hearing, the  secretary  of   state 
determines there is no reason to believe a violation of the  act   or   these 
rules has occurred, the complaint shall be dismissed. The  parties  shall  be 
notified of this decision.
  (2)  If,  following  the  informal  hearing,  the   secretary   of    state 
determines that  the  alleged  violation  may  be   corrected,   or   further 
violation  may  be  prevented,  by   informal    methods    of    conference, 
conciliation, and persuasion, the secretary of  state  may   enter   into   a 
conciliation agreement with the person involved.
  (3)  If,  following  the  informal  hearing,  the   secretary   of    state 
determines there is reason to believe a violation  of  the   act   or   these 
rules has occurred, the secretary of state may notify the attorney general of 
the decision if the allegation was made as the result of  a  complaint.
If the allegation was made as the result of an  examination   of   a   report 
filed pursuant to the  act,  the  secretary  of  state   shall   notify   the 
attorney general of the decision.
  (4)  If,  following  the  informal  hearing,  the   secretary   of    state 
determines not to report the hearing's results to   the   attorney   general, 
the secretary of state shall notify the parties of this decision.

  History:  1979 AC; 1982 AACS.


                    PART 6. OFFICEHOLDER'S EXPENSE FUND


R  169.61   Receipts; reports.
  Rule 61. (1) An elected officeholder shall indicate the  existence  of   an 
officeholder's expense fund on the statement of  organization,   or   on   an 
amendment thereto, filed by the officeholder's candidate committee.
  (2) Money given specifically to an officeholder's expense  fund  shall   be 
designated for that purpose by the donor.
  (3) Money received by an officeholder's expense fund shall be  kept  in   a 
depository account separate from the candidate committee's funds.
  (4) The treasurer of an officeholder's expense fund shall  keep  records of 
all receipts to, and disbursements from, the fund for  a  period  of  1  year 
longer than the officeholder's term of office.
  (5) Receipts to, and disbursements from, the  officeholder's  expense  fund 
shall be subject to the contribution limitations and reporting  provisions of 
the act for candidate committees.
  (6) The officeholder's expense  fund  report  shall  be   signed   by   the 
treasurer of the fund and by  the  officeholder  on   the   lines   indicated 
following the verification statement.
  (7) The officeholder's expense fund  report  shall  be   filed   with   the 
filing official designated  by  the  act  to   receive   the   officeholder's 
candidate committee campaign statements.
  (8) Money may be transferred from the candidate committee  of  an   elected 
public official to the officeholder's expense fund of that public official in 
accordance with the provisions of the act.

  History:  1989 AACS.


R  169.62   Disbursements; records.
  Rule 62. (1) An officeholder's expense  fund  shall  be   used   only   for 
disbursements which are incidental to the office  of   the   elected   public 
official who established the fund. A disbursement  is   incidental   to   the 
office of  the  official  if  it  is  traditionally   associated   with,   or 
necessitated by, the holding of a particular public office  and  is  included 
within 1 or more of the following categories:
  (a) Fund-raising disbursements of the officeholder's expense fund.
  (b) Reasonable and necessary disbursements which are  directly  related  to 
assisting, serving, or communicating with constituents.
  (c) Disbursements for office equipment, furnishings, and supplies.
  (d) Disbursements for a district office if the office is   not   used   for 
campaign activity.
  (e) Disbursements which are directly related  to   conferences,   meetings, 
receptions, and events.
  (f)  Disbursements  for  a  publicly  owned  residence   or   a   temporary 
residence at the seat of government.
  (g)  Bona  fide  travel,   lodging,   meal,    and    other    unreimbursed 
disbursements incurred by the officeholder, a member  of  the  officeholder's 
immediate family, or a member of the officeholder's staff.
  (h) Donations to a  tax-exempt  charitable   institution,   including   the 
purchase of tickets to charitable or civic events.
  (i) Disbursements to a ballot question committee.
  (j) Purchase of tickets for use by that public official  and   members   of 
his or her immediate family and staff to  another  candidate's   fund-raising 
event or a fund-raising  event  sponsored  by   an   independent   committee, 
political party committee, or a political committee  if  the   officeholder's 
expense fund has not accepted corporate donations.
  (k) Educational disbursements for a course or seminar if  the   course   or 
seminar  maintains  or  improves  skills  which  are    employed    by    the 
officeholder  in  the  performance  of  his  or   her    administrative    or 
legislative responsibilities.
  (l) Purchase of advertisements in testimonials,  program  books,   souvenir 
books, or other publications if the  advertisement  does   not   support   or 
oppose the nomination or election of a candidate.
  (m) Consultation,  research,  polling,  and   photographic   services   not 
related to a campaign.
  (n) Fraternal, veterans, and service organization fees.
  (o) Payment of a tax  liability  incurred  as  a   result   of   authorized 
officeholder's expense fund transactions.
  (p) Accounting, professional, and administrative   disbursements   of   the 
officeholder's expense fund.
  (q) A debt or obligation incurred by the officeholder's expense fund for  a 
disbursement authorized by subdivisions (a) to (p) of this  subrule,  if  the 
debt or obligation was reported in  the  officeholder's  expense  fund report 
filed for the year in which the debt or obligation arose.
  (2) A disbursement from an  officeholder's  expense  fund   which   is   an 
ordinary and necessary business expense of a public official  as   a   public 
official as authorized by the internal revenue code of 1986, 26 U.S.C. S 1 et 
seq., is presumed to be an expense incidental to office.
  (3) The treasurer of an officeholder's expense fund  shall  keep   detailed 
accounts, records, bills, and receipts as  required   to   substantiate   the 
information contained in  an  officeholder's  expense   fund   report   filed 
pursuant to the act and these rules.

  History:  1989 AACS.


R  169.63   Unauthorized disbursement.
  Rule 63.  (1)  An  officeholder's  expense  fund   report   shall   include 
information which is sufficient to establish that  each   disbursement   from 
the fund was for the payment of  an  expense  incidental   to   the   elected 
public official's office.
  (2) If, upon examination of a report, the secretary of state  is  unable to 
determine whether a disbursement from an  officeholder's  expense   fund  was 
made in compliance with the act and  these  rules,  the  secretary  of  state 
shall  request   additional   information   or   documentation    which    is 
sufficient  to  establish  that  the  disbursement  was   for   an    expense 
incidental to office.
  (3)  If  the  secretary  of  state  determines,   after    receiving    the 
information or documentation required under subrule (2) of this rule, that  a 
disbursement from  an  officeholder's  expense   fund   was   not   made   in 
compliance with the act and these rules,  the  secretary   of   state   shall 
request the public official to  reimburse  an  amount   equivalent   to   the 
unauthorized disbursement to the officeholder's expense fund.
  (4) If a public official fails to respond within 21 days   to   a   request 
made under subrule (2) or (3) of this rule, the secretary  of   state   shall 
refer the matter to the attorney general for commencement of  an  action   to 
recover the unauthorized  disbursement  from   the   officeholder's   expense 
fund. A referral made under this subrule shall not prevent  the  secretary of 
state from proceeding under part 5 of these rules.

  History:  1989 AACS.


R  169.64   Corporate donation.
  Rule 64. A corporate donation to an officeholder's   expense   fund   shall 
not be solicited or accepted at a joint fund-raising   event   sponsored   by 
the candidate committee and officeholder's expense  fund   of   that   public 
official unless the candidate committee pays for the expenses  of  the  event 
and all corporate money received  for  that  event  is   deposited   in   the 
account of the officeholder's expense fund.

  History:  1989 AACS.


R  169.65   Dissolution; disposition of assets.
  Rule 65. (1) Dissolution of an officeholder's expense fund shall consist of 
a report that covers the period from   the   closing   date   of   the   last 
report  filed  by  the  officeholder's  expense  fund  to   the    date    of 
dissolution.
  (2) After an official leaves public office, his   or   her   officeholder's 
expense fund shall not accept donations or make  disbursements,   except   to 
dispose of debts incurred before the date on  which   the   official   leaves 
public office.
  (3) An asset purchased with money donated to  an   officeholder's   expense 
fund which is no longer used in a  manner  incidental   to   office,   either 
during an official's term of office or when  the   official   leaves   public 
office, shall be  sold  at  fair  market  value.  A   public   official   may 
purchase, at fair market  value,  an  asset  acquired   by   the   official's 
officeholder's expense fund. As used in this subrule, "fair market  value" is 
the price that an asset of like type, quality, age, and quantity  would bring 
in a particular market at the time of acquisition.
  (4) A public  official  may  transfer  any  unexpended   money   from   one 
officeholder's expense fund to another officeholder's expense  fund  held  by 
the same public official pursuant to the provisions of   section   45(1)   of 
the act.

  History:  1989 AACS.