What Businesses Does Michigan’s Proposal 2 Actually Affect?

If your company contracts with a state or local government in Michigan, you may now have campaign finance obligations you didn’t have last week.

Michigan voters approved Proposal 2 by a wide margin, but the law’s reach goes well beyond regulated utilities. Businesses with more than $250,000 annually in government contracts may be subject to the same contribution restrictions, and the analysis doesn’t stop at the company level. Courtney Kissel breaks down what you need to know.

Key takeaways:

• Government contractors exceeding $250,000 annually may face the same restrictions as utilities
• The law reaches affiliated individuals and organizations connected to a covered entity
• Political communications (including online) now face expanded disclosure requirements
• Two federal lawsuits have already been filed challenging Proposal 2’s constitutionality, specifically its political contribution restrictions and electioneering disclosure requirements

Compliance obligations may not be obvious from your industry or your current approach to campaign finance. And with active litigation, the landscape could shift. Now is the time to assess your exposure.

For more on this new law, check out our latest legal alert here.