-
OPINIONS OF THE ATTO RNE Y GENER AL
CAMPAIGN FINANCE ACT:
GAMI NG CONTROL AND REVENUE ACT: POLITIC AL ACTIVITY:
Political activities by casino licensees an d oth er persons Political contr ibut ions by casino licensees an d oth er persons
Section 7b of th e Michigan Gam ing Contr ol an d Reve nu e Act does not prohibi t casino licensees an d oth er persons subject to that section from engaging in political activities on beha lf of a political can didat e or can didat e comm itt ee. Such activities do not con stitut e a "contr ibut ion" as defined by section 4 of th e Michigan Cam paign Finan ce Act.
Section 7b of th e Michigan Gam ing Contr ol an d Reve nu e Act prohibi ts casino licensees an d oth er persons subject to that section from mak ing a non-monetar y contr ibut ion to a political can didat e or can didat e comm itt ee that would con stitut e a "contr ibut ion" as defined by section 4 of th e Michigan Cam paign Finan ce Act.
Opi nion No. 7086 August 10, 2001
Honora ble Mark H. Schau er Stat e Rep rese ntat ive
The Capitol
Lan sing, Michigan 48909 -7514
You ha ve asked two ques tions concern ing section 7b of th e Michigan Gam ing Contr ol an d Reve nu e Act (Gam ing Act), 1996 Initiat ed Law, MCL 432 .201 et seq. The Gam ing Act implement s an d regulat es casino gam bling in Michigan . The title of th e Gam ing Act esta blis hes its scope an d provides, in part , as follows:
An act to provide for th e licensing, regulat ion, an d contr ol of casino gam ing operat ions, manu factur ers an d distr ibutors of gam ing devices an d gam ing relat ed equipment an d supplies, an d persons who part icipat e in gam ing; . . . to restri ct certai n politi cal con trib utions; to es ta blis h a code of eth ics for certa in persons involved in gam ing; . . . [Em pha sis added .]
Sections 7b(4) an d (5)1 of th e Gam ing Act restr ict political contr ibut ions by licensees an d persons holding an int erest in a licensee or casino ent erprise as follows :
(4) A licensee or person who ha s an int erest in a licensee or casino ent erprise, or th e spouse, par ent , child, or spouse of a child of a licensee or person who ha s an int erest in a licensee or casino ent erprise, sha ll not mak e a contribution to a can didat e or a comm itt ee . . . .
* * *
(5) A licensee or person who ha s an int erest in a licensee or casino ent erprise, or th e spouse, par ent , child, or spouse of a child of a licensee or a person who ha s an int erest in a licensee or casino ent erprise, sha ll not mak e a contribution to a can didat e or comm itt ee thr ough a legal ent ity that is esta blished, directed, or contr olled by an y of th e persons described in th is subsection . . . . [Em pha sis added .]
Your first question asks wheth er section 7b of th e Gam ing Act prohibits casino licensees an d oth er persons subject to that section from engaging in political activities on beha lf of a political can didat e or can didat e comm itt ee.
In format ion supplied with your request suggests a con cern that th e prohibition against mak ing a "contr ibut ion," as that term is used in sections 7b(4) an d (5) of th e Gam ing Act , ma y prohibit casino licensees an d oth er persons subject to th ose sections from engaging in political activities such as endorsing a political can didat e, allowing th eir nam es to be used in cam paign lit eratur e, or serving as officer s for a can didat e’s cam paign comm itt ee.2
The Gam ing Act does not define th e term "contr ibut ion." Section 4 of th e Michigan Cam paign Finan ce Act (Cam paign Finan ce Act), 1976 PA 388 , MCL 169 .201 et seq, however, defines th e term "contr ibut ion" as follows :
(1) "Contr ibut ion" mean s a payment , gift, subscription, assess ment , expe nditur e, contra ct , payment for services, dues, advan ce, for bearan ce, loan , or donat ion of money or an yth ing of ascerta ina ble monetar y value, or a tran sfer of an yth ing of ascerta ina ble monetar y value to a person, ma de for th e pur pose of influencing th e nominat ion or election of a can didat e, or for th e qua lificat ion, passage, or defeat of a ballot question.
1 OAG, 1997-1998, No 7002, pp 206, 210 (December 17, 1998), concluded that sections 7b(4) and (5) of the Gaming Act, to the extent they prohibit political contributions by the spouse, parent, child, or spouse of a child of certain casino-related licensees or interest holders, violate the free speech provisions of the First Amendment to the United States Constitution and are, therefore, unconstitutional.
2Section 4d(14) of the Gaming Act expressly prohibits members of the Michigan Gaming Control Board and certain gaming regulators from engaging in "political activity" or "politically related activity." Section 4d(28)(b) defines both terms. Section 4d does not apply to the class of persons identified in section 7b and is not addressed in this analysis.
(2) Contr ibut ion includes th e full pur cha se price of t ickets or payment of an att endan ce fee for event s such as dinn ers, lun cheons, ra llie s, testimonials, an d oth er fun d-ra ising event s; an individua l’s own money or propert y oth er than th e individua l’s homestead used on beha lf of that individua l’s can didacy; th e grant ing of discount s or rebat es not available to th e genera l public; or th e grant ing of discount s or rebat es by broadcast media an d newsp apers not extended on an equa l basis to a ll can didat es for th e sam e office; an d th e endorsing or guarant eeing of a loan for th e am ount th e endorser or guarant or is liable.
(3) Contr ibut ion does not include an y of th e following:
(a) Volunt eer persona l services provided with out com pensat ion, or payment s of cost s incurr ed of less than $500 .00 in a calendar year by an individua l for persona l tra vel expe nses if th e cost s ar e voluntar ily incurr ed with out an y un derstan ding or agreement that th e cost s sha ll be, directly or indirectly, repaid.
(b) Food an d bevera ges, not to exceed $100 .00 in value dur ing a calendar year , which ar e donat ed by an individua l an d for which reimbur sement is not given.
(c) An offer or tender of a contr ibut ion if expressly an d un con ditiona lly rejected, return ed, or refun ded in whole or in part with in 30 business days after receipt.
The Cam paign Finan ce Act regulat es th e finan cing of an d restr icts contr ibut ions to political cam paigns. It was ena cted "to ensur e th e int egrity of Michigan ’s political cam paigns an d offices , th ereby protecting th e int erest of th e public at lar ge, individua l citizens, an d can didat es for political office." Senat e Legisl at ive Ana lysis, SB 1570 , December 17, 1976 . Section 7b of th e Gam ing Act also restr icts political contr ibut ions an d, like th e Cam paign Finan ce Act , str ives to protect an d prese rve th e int egrity of Michigan ’s political pr ocess . In OAG, 1997 -1998 , No 7002 , pp 206 , 209 (December 17, 1998 ), th e Att orn ey Genera l con cluded that th e political contr ibut ion limitat ions conta ined in section 7b of th e Gam ing Act furth er th e Stat e’s com pelling int erest in prevent ing corru ption an d th e appe aran ce of corru ption in th e political pr ocess .
The text of section 7b of th e Gam ing Act demonstrat es that Act ’s close relat ionship to th e Cam paign Finan ce Act . As used in section 7b of th e Gam ing Act , th e term s "can didat e," "comm itt ee," "can didat e comm itt ee," "political part y comm itt ee," "indepe ndent comm itt ee," an d "ballot question comm itt ee" ar e all defined by reference to th e Cam paign Finan ce Act . The legislat ive history of th e var ious am endment s to th e Gam ing Act also evide nces th is relat ionship. Section 7b was am ong severa l am endment s to th e Gam ing Act passed by th e Legisl atur e as 1997 PA 69. The am endment s were ena cted on th e sam e day as 1997 PA 71, MCL 169 .230 , an am endment to th e Cam paign Finan ce Act prohibiting a comm itt ee from a ccep t ing a contr ibut ion from a person prohibited from mak ing a contr ibut ion un der section
7b of th e Gam ing Act . This am endment to th e Cam paign Finan ce Act was t ie-barr ed to th e am endment s to th e Gam ing Act .3
Statut es that relat e to th e sam e person or th ing, or to th e sam e class of persons or th ings, or which shar e a comm on pur pose ar e in pari m ateria an d mu st be read togeth er as con stitut ing one system of law. People v Webb, 458 Mich 265 , 274 ; 580 NW 2d 884 (1998 ). The ru le is espe cially applicable where, as here, th e statut ory provisions in question were passed in th e sam e legislat ive sess ion an d simu ltan eously approved by th e Govern or. Reed v S ecretary of S tat e, 327 Mich 108 , 113 ; 41 NW 2d 491 (1950 ). Statut es that ar e in pari m ateria mu st be con stru ed un iform ly an d con sistent ly to achieve th e int ent of th e Legisl atur e. Palm er v S tat e Land Offi ce Bd , 304 Mich 628 , 636 -637 ; 8 NW 2d 664 (1943 ). The object of th e in pari m ateria ru le is to give effect to th e legislat ive pur pose as foun d in harm onious statut es on th e sam e subject. Webb, supra, at 274 . In deciding wheth er to apply th is ru le, court s oft en exam ine legislat ive history to "ascerta in th e un iform an d con sistent pur pose of th e legislatur e." Palm er, supra , at 636 -637 .
Section 7b of th e Gam ing Act an d section 4 of th e Cam paign Finan ce Act ar e in pari m ateria an d mu st , th erefor e, be read togeth er. Both acts shar e a comm on pur pose an d subject matt er -- th e regulat ion of political contr ibut ions an d th e protection of Michigan ’s political pr ocess . Reading th em togeth er promotes th e un iform an d con sistent regulat ion of casin o-r elat ed political contr ibut ions. The Legisl atur e, on th e sam e day, am ended both acts an d also ena cted th e Casino Int erest Regis trat ion Act as a comprehensive plan regulat ing casin o-r elat ed political contr ibut ions. Applicat ion of th e Cam paign Finan ce Act 's definition of "contr ibut ion" to sections 7b(4) an d (5) of th e Gam ing Act serves to harm onize both acts an d is con sistent with th e int ent of th e Legisl atur e. A contrar y con clusion would lead to th e absur d result that a contr ibut ion ma de un der section 7b of th e Gam ing Act would ha ve a different mean ing than a contr ibut ion accept ed by a comm itt ee un der th e Cam paign Finan ce Act.
In applying th e Cam paign Finan ce Act ’s definition of "contr ibut ion" to sections 7b(4) an d (5) of th e Gam ing Act , it is clear that political activities such as endorsing a political can didat e, a llowing one’s nam e to be used in cam paign lit eratur e, or serving as a member of a can didat e comm itt ee do not violat e section 7b of th e Gam ing Act so long as th ose services ar e provided "with out com pensat ion." Cam paign Finan ce Act , section 4(3)(a ).
It is my opinion, th erefor e, in an swer to your fir st question, that section 7b of th e Michigan Gam ing Contr ol an d Revenu e Act does not prohibit casino licensees an d oth er persons subject to that section from engaging in political activities on beha lf of a political can didat e or can didat e comm itt ee. Such activities do not con st itut e a "contr ibut ion" as defined by section 4 of th e Cam paign Finan ce Act.
3 Section 1 of 1997 PA 71 states that: "This amendatory act does not take effect unless Senate Bill No. 569 of the 89th Legislature is enacted into law." SB 569 was enacted as 1997 PA 69. 1997 PA 71 and 1997 PA 69 were approved and filed with the Secretary of State on the same day. 1997 Journal of the Senate 1351, 1352.
Your se con d question asks wheth er section 7b of th e Michigan Gam ing Contr ol an d Revenu e Act prohibits casino licensees an d oth er persons subject to that section from mak ing a non-monetar y contr ibut ion to a political can didat e or can didat e comm itt ee.
In format ion supplied with your request des cribes such non-monetar y contr ibut ions as th e provision of goods or services, mak ing loan s, or mak ing facilities available to a political can didat e or can didat e comm itt ee.
In an swering your fir st question, it was con cluded that th e definition of "contr ibut ion" as provided in section 4 of th e Cam paign Finan ce Act mu st be applied to sections 7b(4) an d (5) of th e Gam ing Act . Applying th is con clusion, it is clear that an y non- monetar y contr ibut ion that fa lls with in th e definition of "contr ibut ion" conta ined in section
4 of th e Cam paign Finan ce Act is prohibited. This includes th e provision of goods or services that ha ve an ascerta ina ble monetar y value (subject to spe cific statut ory exemptions), mak ing loan s, or, un der certa in circum stan ces, mak ing facilities available to a political can didat e or can didat e comm itt ee.
It is my opinion, th erefor e, in an swer to your se con d question, that section 7b of th e Michigan Gam ing Contr ol an d Reve nu e Act prohibits casino licensees an d oth er persons subject to that section from mak ing a non-monetar y contr ibut ion to a political can didat e or can didat e comm itt ee that would con stitut e a "contr ibut ion" as defined by section 4 of th e Michigan Cam paign Finan ce Act.
J ENN IFE R M.GRANH OLM
Att orn ey Genera l
