Michigan Ballot Measure Proposes Sweeping Pay-to-Play Rules

A Michigan ballot measure slated for the November election proposes one of the nation's most extensive "pay-to-play" laws, creating significant compliance risks for companies doing business in the state. The proposed law would bar political contributions from regulated electric and gas utilities as well as companies holding or seeking state or local government contracts over $250,000. Crucially, the restrictions extend far beyond the corporate entities themselves to cover their "principals"—a broadly defined group including directors, senior officers, 5% owners, lobbyists, and certain immediate family members. The rules would also apply to "affiliated entities," which could implicate corporate PACs and trade associations. The expansive scope means national corporations with Michigan operations will need to re-evaluate their political giving compliance programs and carefully track the personal contributions of a wide range of individuals. If passed, most provisions would take effect 10 days after the election is certified, requiring swift preparation.