DEPARTMENT OF STATE

BUREAU OF ELECTIONS

LOBBYIST REGISTRATION AND REPORTING

(By authority conferred on the secretary of state by section 16 of Act No. 472 of the

Public Acts of 1978, being S4.426 of the Michigan Compiled Laws)

PART 1. GENERAL PROVISIONS

R 4.411 Definitions.

Rule 1. (1) As used in the act or these rules:

(a) "Act" means Act No. 472 of the Public Acts of 1978, being S4.411 et seq. of

the Michigan Compiled Laws.

(b) "Communicating directly" means actual verbal conversations conducted in

person or transmitted by electronic means, or written communications addressed to a

public official, for the purpose of influencing legislative or administrative action.

(c) "Elected or appointed public officials of state or local government means

officials whose term of office is prescribed by statute, charter, ordinance, or the state

constitution of 1963 or who serve at the pleasure of their appointing authority.

(d) "Expenditures related to the performance of lobbying" and expenditures for

lobbying includes all of the following expenditures of a lobbyist or lobbyist agent:

(i) A payment made on behalf of a public official for the purpose of influencing

legislative or administrative action.

(ii) A payment made to influence legislative or administrative action.

(iii) Actual expenses for lobbying other than travel expenses, whether received in

the form of an advance or subsequent reimbursement.

(iv) An expenditure for providing or using information, statistics, studies, or analysis

in communicating directly with an official that would not have been incurred but for the

activity of communicating directly.

(e) "Honorarium" means a payment for speaking at an event, participating in a panel

or seminar, or engaging in any similar activity. Free admission, food, beverages,

and similar nominal benefits provided to a public official at an event at which he or she

speaks, participates in a panel or seminar, or performs a similar service, and a

reimbursement or advance for actual travel, meals, and necessary accommodations

provided directly in connection with the event, are not payments.

(f) "Interested person" means a lobbyist, lobbyist agent, or other person upon whom

a requested declaratory ruling is legally binding and whose course of action is directly

affected by the ruling.

(g) "Petty cash transaction" means an expenditure of less than $5.00 for goods or

services for which a receipt or proof of purchase is not normally available and was not

obtained.

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(h) "State level boards and commissions" means

those

boards

and

commissions of statewide jurisdiction which are established by statute or the state

constitution of 1963.

(i) "Travel expense" means the cost of travel to visit and return from visiting a

public official for the purpose of communicating with the public official, and the

costs of meals and lodging away from home.

(2) A term defined in the act has the same meaning when used in these rules.

History: 1981 AACS.

R 4.412 Duties and prohibitions; commencement.

Rule 2. When a duty or prohibition is imposed upon a lobbyist or lobbyist

agent by the act, that duty or prohibition extends to all employees of those persons

who are, or should be, registered as a lobbyist or lobbyist agent under section 7 of the act

and extends to all contacts by such persons with public officials. These duties

and prohibitions commence as of the date a lobbyist or lobbyist agent contracts with

or employs a lobbyist agent, or influences or attempts to influence a public official in a

manner which shall or should be reflected on a report filed pursuant to section 8 of the

act, or makes an expenditure which has a purpose of influencing legislative or

administrative action.

History: 1981 AACS.

R 4.413 Declaratory rulings.

Rule 3. (1) The secretary of state, upon written request of an interested person,

may issue a declaratory ruling as to the applicability of the act or these rules to an actual

state of facts.

(2) A request for a declaratory ruling shall contain all of the following

information:

(a) A clear, concise, and complete statement of the actual state of facts upon

which a ruling may be based.

(b) A precise statement of the legal question or issue asked.

(c) The signature of the interested person making the request.

(3) If the interested person so desires, the person may submit with the request a

brief or other reference to legal authorities upon which

declaratory ruling should be based.

the person believes the

(4) The secretary of state shall decline to issue a declaratory ruling in any of the

following situations:

(a) The subject matter of a request is frivolous on its face.

(b) The statement of actual facts or issues contained in a request is indefinite,

incomplete, or lacks specificity.

(c) The same, or substantially the same, course of action is under investigation or

is, or has been, the subject of a current action, order, judgment, or decree initiated or

obtained by the secretary of state, the attorney general, or a prosecuting attorney.

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(5) If the secretary of state declines to issue a declaratory ruling, the interested

person making the request shall be notified of the reason for the refusal.

(6) Each declaratory ruling issued shall contain a statement or findings of fact, a

conclusion of law based on all legal authority upon which the department relies for

its rulings, if any, and the ruling or determination made.

(7) Once issued, a ruling is binding on the department and shall not retroactively be

changed, but nothing in this rule shall prohibit the department from prospectively

changing a ruling.

History: 1981 AACS.

R 4.414 Interpretive statements.

Rule 4. (1) The secretary of state, upon written request of any person, may issue an

interpretive statement relative to the act. After declining to issue a declaratory ruling, the

secretary of state may issue an interpretive statement relative to any issue raised

in a defective declaratory ruling request or any related issue.

(2) An interpretive statement issued pursuant to this rule is for information and

explanatory purposes only and does not carry the force or effect of law.

History: 1981 AACS.

PART 2. LOBBYISTS AND LOBBYIST AGENTS

R 4.421 Lobbyists; expenditures for lobbying.

Rule 21. For the purpose of determining whether a person's expenditures for lobbying

are more than $1,000.00 in value in any 12-month period, or are more than $250.00 in

value in any 12-month period if expended on lobbying a single public official, the

following expenditures shall be combined:

(a) Expenditures made on behalf of a public official for the purpose of influencing

legislative or administrative action.

(b) Expenditures, other than travel expenses, incurred at the request or suggestion of

a lobbyist agent or member of a lobbyist, or furnished for the assistance or use of a

lobbyist agent or member of a lobbyist while engaged in lobbying.

(c) The compensation paid or payable to lobbyist agents, employees of the

lobbyist, and members of a lobbyist for that portion of their time devoted to lobbying.

History: 1981 AACS.

R 4.422 Lobbyist agents; compensation and reimbursement for lobbying.

Rule 22. For the purpose of determining whether

a

person

receives

compensation or reimbursement for actual expenses, or both, in a combined amount in

excess of $250.00 in any 12-month period for lobbying, the following compensation

and reimbursement shall be combined:

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(a) Reimbursement for expenditures made on behalf of a public official for the

purpose of influencing legislative or administrative action.

(b) Reimbursement for expenditures, other than travel expenses, made to influence

legislative or administrative action.

(c) Compensation received for that portion of time devoted to lobbying.

History: 1981 AACS.

R 4.423 Employer and employee lobbyist agents distinguished.

Rule 23. (1) A person retaining a person to communicate directly with a public

official for the purpose of influencing or attempting to

influence legislative or

administrative action is a lobbyist if the retaining person's expenditures for

lobbying exceed the amounts prescribed in section 5 of the act.

(2) A person retained by a person for the purpose of influencing or attempting

to influence legislative or administrative action is a lobbyist agent if the retained person

engages in lobbying and the retained person's compensation or reimbursement for

lobbying exceeds the amount prescribed in section 5 of the act.

(3) An employee or agent of a person who qualifies as a lobbyist agent is a lobbyist

agent if the employee or agent engages in lobbying and receives compensation or

reimbursement for lobbying in excess of the amount prescribed in section 5 of the

act.

History: 1981 AACS.

R 4.424 Lobbyists and lobbyist agents; state executive departments.

Rule 24. (1) A state executive department is a lobbyist as that term is

defined in section 5 of the act.

(2) An employee of a state executive department, other than an official in the

executive branch, is a lobbyist agent if the employee engages in lobbying on behalf

of the department and his or her compensation or reimbursement for lobbying

exceeds the amount prescribed in section 5 of the act.

History: 1981 AACS.

R 4.425 Lobbyists and lobbyist agents; state level boards and commissions.

Rule 25. (1) A state level board or commission is a lobbyist if the board or

commission engages in lobbying or compensates or reimburses a lobbyist agent and

if its expenditures for lobbying exceed the amounts prescribed in section 5 of the act.

(2) An appointed member of a state level board or commission which is a lobbyist is

not a lobbyist agent merely because of membership on the board or commission. An

appointed member of the board or commission is a lobbyist agent if the

member engages in lobbying and his or her

compensation or reimbursement for lobbying exceeds the amount prescribed in

section 5 of the act.

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History: 1981 AACS.

PART 3. RECORDS

R 4.431 Records; itemized accounts; accounting method; posting; allocation

or proration.

Rule 31. (1) A lobbyist or a lobbyist agent may use any reasonable accounting

method in maintaining the itemized accounts required by section 9 of the act. The

method selected shall be utilized consistently and shall reasonably reflect the

expenditures and financial transactions of the lobbyist and lobbyist agent during any

given accounting period.

(2) If any expenditure is incurred wholly or partially in connection with

lobbying, it shall be posted in the appropriate itemized account required by section 9

of the act after being incurred. An expenditure incurred partially in connection

with lobbying may be allocated or prorated by any reasonable accounting method.

The accounting method used shall be described in detail in an attachment to the

itemized account.

History: 1981 AACS.

R 4.432 Records; original source records; information.

Rule 32. The itemized accounts required by section 9(1) of the act shall be supported

by original source records, including bills, receipts, books, papers, invoices, cancelled

checks, and other documents, or an exact copy of the record. An original source record

shall indicate all of the following information for each transaction except petty cash

transactions:

(a) The name and address of the payee.

(b) The name and address and official position, if any, of the beneficiary of

the payment if other than the payee, lobbyist, or lobbyist agent.

(c) A description of the consideration or a notation of the purpose of the

expenditure.

History: 1981 AACS.

R 4.433 Records; inspection by department.

Rule 33. (1) A lobbyist or lobbyist agent shall

permit

a

department

representative to inspect any record, including itemized accounts and original source

records, in the possession of the lobbyist or lobbyist agent upon receipt of a written

request for inspection which is received not less than 5 business days in advance of

the time proposed for inspection. A department representative shall not inspect any

record which is either confidential or privileged pursuant to law.

(2) An inspection shall take place during the regular business hours of a lobbyist or

a lobbyist agent and shall occur at the office by the lobbyist or lobbyist agent, at a

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location deemed mutually convenient by a department representative and the lobbyist

or lobbyist agent, or, if agreed to by the lobbyist or lobbyist agent, at a department

office.

(3) The lobbyist or lobbyist agent shall permit a department representative to

make a copy of any record inspected.

History: 1981 AACS.

PART 4. REGISTRATIONS

R 4.441 Registrations; format.

Rule 41. (1) A registration required to be filed by the act shall be filed in duplicate

on a form prescribed or previously approved by the department. An attachment to a

form shall be on a page of the same dimensions as the form prescribed by the

department.

(2) An entry or statement on a registration shall be printed legibly in

ink or typed.

(3) A person filing a registration other than an amended registration shall

complete each item of information indicated on the form or shall clearly note that the

item of information is not applicable to the filer. An item shall not be left blank and the

department shall not accept or consider as filed a registration which is incomplete.

(4) If the lobbyist or lobbyist agent is an individual, the lobbyist or lobbyist agent

shall sign the registration. If the lobbyist or lobbyist agent is not an individual, an

authorized individual, on behalf of the lobbyist or lobbyist agent, shall sign the

registration. The signature shall appear on the line indicated following the registration

statement.

History: 1981 AACS.

R 4.442 Registrations; identification symbol.

Rule 42. Upon receipt of a registration from a lobbyist or lobbyist agent, the

department shall assign an identification symbol to the lobbyist or lobbyist agent,

acknowledge in writing receipt of the registration, and notify the lobbyist or

lobbyist

agent

of

the identification symbol. The identification symbol shall be

entered by the lobbyist or lobbyist agent on each page of any report subsequently

filed pursuant to section 8 of the act and on all communications with the

department concerning registrations, statements, or reports.

History: 1981 AACS.

R 4.443 Registrations; late registration fees; computation and collection.

Rule 43. (1) If a registration is filed after the date due, the registration form

shall be accepted by the department and considered filed as of the date accepted.

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(2) The department shall compute a late fee concerning each late filing of a

registration and shall give written notice to the filer of the amount of the late

registration fee due and unpaid. The department may accept payment of the late

registration fee.

(3) If payment of a late registration fee is not made within 30 days after written

notice of the amount due is given to the filer, the department shall notify the

department of treasury of the failure to make payment.

(4) A late registration fee accepted by the department shall be forwarded to

the state treasurer for deposit to the credit of the general fund of the state.

History: 1981 AACS.

R 4.444

Registrations; terminations for persons who have not lobbied;

terminations for persons who have lobbied.

Rule 44. (1) A person who has filed a lobbyist or lobbyist agent registration

form pursuant to section 7 of the act, but who is not and has been a lobbyist or lobbyist

agent since filing the registration form, may at any time terminate registration by filing a

notice of termination.

(2) If a lobbyist files a notice of termination, the lobbyist may at the same time file

any report required by section 7(4) of the act for the reporting period during which

the termination notice was filed.

History: 1981 AACS.

PART 5. STATEMENTS AND REPORTS

R 4.451 Statements and reports; filing; format.

Rule 51. (1) A statement or report required under section 8 of the act shall be filed

in duplicate on a form prescribed or previously approved by the department. An

attachment to a form shall be on a page of the same dimensions as the form prescribed

by the department.

(2) A statement on a report shall be printed legibly in ink or typed.

(3) A person filing a statement or report other than an amended statement or

report shall complete each item of information indicated on the form or shall clearly

note that the item is not applicable to the filer. An item shall not be left blank and

the department shall not accept or consider as filed a statement or report which is

incomplete.

(4) If the lobbyist or lobbyist agent is an individual, the lobbyist or lobbyist agent

shall sign the statement or report. If the lobbyist or lobbyist agent is not an

individual, an authorized individual, on behalf of the lobbyist or lobbyist agent, shall

sign the statement or report. The signature shall appear on the line indicated.

History: 1981 AACS.

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R 4.452 Statements and reports; late reporting fees; computation; collection.

Rule 52. (1) If a statement or report is filed after the date due, the statement or

report shall be accepted by the department and considered filed as of the date

accepted.

(2) The department shall compute a late fee concerning each late filing of a

statement or report and shall give written notice to the filer of the amount of the late

reporting fee due and unpaid. The department may accept payment of the late reporting

fee.

(3) If payment of a late reporting fee is not made within 30 days after written notice

of the amount due is given to the filer, the department shall notify the department of

treasury of the failure to make payment.

(4) A late reporting fee accepted by the department shall be forwarded to the state

treasurer for deposit to the credit of the general fund of the state.

History: 1981 AACS.

R 4.453 Statements and reports; late reporting fees; waiver.

Rule 53. (1) Upon receipt of a written request from a lobbyist or lobbyist agent

for the waiver of payment of a late reporting fee which

is accompanied by

documentation sufficient to satisfy the department, the department may waive the

payment of the late fee for good cause stated in the request.

(2) Good cause for failure to file a required statement or report and for waiver of

a late reporting fee consists of any of the following reasons:

(a) Incapacitating physical illness, hospitalization, accident involvement,

death, or incapacitation for medical reasons of a person required to file, a person whose

participation is essential to the filing of a statement or report, or a member of the

immediate family of these persons.

(b) Other unique, unintentional factors beyond the filer's control not stemming

from a negligent act or non-action such that a reasonably prudent person would excuse

the filing on a temporary basis. These factors include loss or unavailability of records

due to fire, floods, theft, and similar reasons, and difficulties related to transmission of

the filing to the department, such as exceptionally bad weather or strikes involving

transportation systems.

(3) If the department determines to waive a late reporting fee, written notice of the

waiver shall be conveyed to the filer.

History: 1981 AACS.

R 4.454 Statements and reports; extension of filing period.

Rule 54. (1) Upon receipt of a written request from a lobbyist or lobbyist agent

for an extension of the date by which a statement or report is required to be filed,

accompanied by documentation which is sufficient to satisfy the department, the

department may approve the request and extend the period if the request states

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sufficient grounds for extension. An extension that is granted shall be for a period not to

exceed the time necessary to accomplish filing, but shall not exceed 60 days.

(2) Sufficient grounds for extension of the date by which a statement or report is

required to be filed consist of any of the following reasons:

(a) Incapacitating physical illness, hospitalization, accident involvement,

death, or incapacitation for medical reasons of

a

person required to file, a person

whose participation is essential to the filing of a statement or report, or a member of the

immediate family of these persons.

(b) Other unique, unintentional factors beyond the filer's control not stemming

from a negligent act or non-action such that a reasonably prudent person would extend

the filing period on a limited basis. These factors include loss or unavailability of

records due to fire, flood, theft, or similar reasons, and difficulties related to

transmission of the filing to the department, such as exceptionally bad weather or

strikes involving transportation systems.

History: 1981 AACS.

R 4.455 Statements and reports; employer lobbyist agent's reports.

Rule 55. An employer lobbyist agent shall report all expenditures incurred by an

employee lobbyist agent of the employer in the report of the employer lobbyist agent.

An employee lobbyist agent employed by an employer lobbyist agent, regardless of

whether the report of the employer lobbyist agent reflects the activities of the

employee lobbyist agent under section 8(4) of the act, shall prepare and cause to be

filed the statements and reports required by section 8 of the act.

History: 1981 AACS.

R .456 Statements and reports; expenditures for food and beverage.

Rule 56. (1) A lobbyist or lobbyist agent filing a statement or report under section

8 of the act shall, in determining the total amount expended for the category termed

food and beverage for public officials, report 1 amount reflecting all expenditures for

food and beverage provided to public officials during a reporting period, regardless

of amount.

(2) The itemized information required by section 8(2) of the act shall be reported in

each applicable case.

History: 1981 AACS.

R 4.457 Statements and reports; expenditures for advertising and mass

mailings.

Rule 57. (1) A lobbyist or lobbyist agent filing a statement or report under section 8

of the act shall, in determining the total amount expended for the category termed

advertising and mass mailing expenses, report 1 amount representing the total amount

expended for all of the following subcategories of expenditure:

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(a) Payments to a person for the writing or authoring of written, verbal, or

visual materials, for acting, reading, producing, airing, or printing of materials

designed to be disseminated, broadcasted, or otherwise transmitted to a public official

to influence legislative or administrative action.

(b) Payments to a person for envelopes, postage, and handling of advertising

materials disseminated by means of mass mailing, except that if the advertising materials

are part of a larger publication the primary purpose of which is not to influence

legislative or administrative action, a mass mailing expense shall not be reported.

(2) For the purpose of this rule, an allocated portion of compensation paid or

payable to a person is includable for that portion of the person's compensated time as is

devoted to advertising or mass mailing.

History: 1981 AACS.

R 4.458 Statements and reports; all other expenditures for lobbying.

Rule 58. A lobbyist or lobbyist agent filing a statement or report under section 8 of

the act shall, in determining the total amount expended for the category termed all other

expenditures for lobbying, report 1 amount representing the total amount expended

for all of the following subcategories of expenditure:

(a) Expenditures made on behalf of a public official for the purpose of influencing

legislative or administrative action.

(b) Expenditures, other than travel expenses, incurred at the request or suggestion of

a lobbyist agent or member of a lobbyist, or furnished for the assistance or use of a

lobbyist agent or member of a lobbyist while engaged in lobbying.

(c) The compensation paid or payable to lobbyist agents and employees for that

portion of their time devoted to lobbying.

History: 1981 AACS.

R 4.459 Statements and reports; summaries.

Rule 59. (1) The department shall publish 2 semiannual summaries and 1 combined

annual summary of the statements and reports received from lobbyists and lobbyist

agents under section 8 of the act.

(2) A summary shall include all of the following information for each lobbyist and

lobbyist agent reporting for the reporting period covered:

(a) Name and office address.

(b) The name of each lobbyist agent compensated or reimbursed and the name of

each lobbyist or lobbyist agent represented.

(c) A figure representing all expenditures for food and beverage provided to

public officials.

(d) A figure representing all expenditures for advertising and mass mailings.

(e) A figure representing all other reported expenditures for lobbying.

(f) A figure representing the total of all reportable financial transactions.

(g) An indication as to whether a notice of termination of lobbying activities has

been filed.

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History: 1981 AACS.

PART 6. INSPECTIONS, INVESTIGATIONS, AND

SWORN COMPLAINTS

R 4.461 Inspections and copying.

Rule 61. (1) Public inspection and copying of registrations, statements, and reports

filed with and in the custody of the department shall take place during regular

business hours in a department office designated by the secretary of state.

(2) A list of inspection and copying procedures and a schedule of charges for

copying shall be posted in the department office where filings are available for public

inspection.

History: 1981 AACS.

R 4.462 Reviews, investigations, and hearings.

Rule 62. (1) The department shall review each filed registration, statement, and

report for accuracy and completeness and shall note where a report has not been filed

after registration has occurred.

(2) When 30 days have expired after the date due for the filing of a registration,

statement, or report and if a discovered error or omission is not corrected or a noted

report is not made, the department may, in the absence of a satisfactory explanation

for the error, omission, or failure, commence and conduct an investigation to

determine if probable cause exists that a violation of the act has occurred.

(3) If, after completion of an investigation,

a

preliminary determination of

probable cause is made, the department may conduct a hearing to officially

determine if probable cause exists. The person alleged to have violated the act shall

be notified of the time and place of

the hearing and shall be given an opportunity to appear. The notice of hearing

shall indicate that the person may appear in person or by counsel, may, but need not,

give testimony, and may present records, documents, or exhibits relevant to the matter.

(4) If, following the hearing, the secretary of state determines that probable

cause does not exist, the alleged violator shall be notified of that decision. If the

secretary of state determines that probable cause does exist, the secretary of state shall

forward the official record of the proceedings to the attorney general and shall

notify the alleged violator of that action and the determination.

History: 1981 AACS.

R 4.463 Sworn complaints.

Rule 63. (1) A person who believes a violation of the act or these rules

has occurred may, in person or by mail, file a sworn complaint with the

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secretary of state.

(2) A complaint shall be typewritten or handwritten in ink and shall indicate the

complaint's name, address, and telephone number. The complaint shall include a

verification statement worded exactly as follows: "I certify that the statements set

forth above are true to the best of my knowledge, information, and belief." A

complaint

shall

be signed by the complainant immediately following

the

verification statement.

(3) A complaint shall name the alleged violator, set forth the alleged violator's

address, describe the alleged violation in reasonable detail, and identify all known

evidentiary material.

(4) Upon receipt of a sworn complaint, the secretary of state shall determine

whether the complaint is complete in all respects. If the complaint is complete, the

secretary of state shall forward it to the attorney general and shall notify the

complainant that it has been forwarded. If the complaint is incomplete, it shall be

returned to the complainant with a written explanation as to how it is incomplete.

History: 1981 AACS.

PART 7. GIFTS

R 4.471 Gifts; prohibition.

Rule 71. A lobbyist or lobbyist agent, or anyone acting on behalf of a lobbyist or

lobbyist agent, may give a gift to a person who is not a public official as defined in

the act.

History: 1981 AACS.

R 4.472 Gifts, extension of credit.

Rule 72. The extension of credit to a public official by a business entity under the

same terms as such credit is extended to the general public is not a gift or a loan.

History: 1981 AACS.

R 4.473 Gifts; honorarium.

Rule 73. An honorarium paid directly to a public official by a lobbyist or lobbyist

agent shall be considered a gift within the meaning of section 11 of the act when it is

clear from all of the surrounding circumstances that the services provided by the public

official do not represent equal or greater value than the payment received.

History: 1981 AACS.

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