The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)



STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL


Opinion No. 6785

February 1, 1994

SCHOOL DISTRICTS:

Contributions to political candidates

CAMPAIGN FINANCE ACT:

Treatment of school district contributions to political candidates

CAMPAIGN FINANCE ACT:

Expenditures by school districts or universities to establish, administer, and solicit contributions to a separate segregated fund to be used for authorized committees

A school district lacks the statutory authority to provide an expense account to one of its employees that may be used for the purpose of making contributions to candidates for public office.

Contributions to candidates for public office by a school district employee from an expense account maintained by the school district for that purpose are attributable for purposes of contribution limits to both the employee and the school district under the Michigan Campaign Finance Act.

Neither school districts nor universities may pay for the establishment, administration, and solicitation of contributions to a separate segregated fund to be used for committees authorized under section 55 of the Michigan Campaign Finance Act.

Honorable Richard H. Austin

Secretary of State

Lansing, MI 48918

You have asked three questions relating to the Michigan Campaign Finance Act, 1976 PA 388, MCL 169.201 et seq; MSA 4.1703(1) et seq. Each question will be stated and addressed separately.

As background to your first question, you advise that a school district employs a person to serve as director of federal and state relations. You further advise that:

"In addition to his salary, [the director] has an officeholder's account and/or expense allowance for incidental expenses related to his position with the district. He may utilize the account in any manner he chooses. This expense account, however, is not reimbursed by the district and [the director] pays taxes on the amount. The school district does not reimburse [the director] for any political contributions made by him or pay [the director] an additional salary for that purpose."

Campaign finance records reveal that the director has used the expense account moneys to make contributions to candidates for public office in amounts in excess of $17,000.00 for the four-year period ending in 1990.

Your first question may be stated as follows:

May a school district provide an expense account to one of its employees that may be used for the purpose of making contributions to candidates for public office?

School districts have only such powers as the Legislature confers upon them by statute either expressly or by reasonably necessary implication. Senghas v L'Anse Creuse Public Schools, 368 Mich 557, 560; 118 NW2d 975 (1962).

The Legislature has authorized the board of education of a school district to "pay the actual and necessary expenses incurred by its ... employees in the discharge of official duties or in the performance of functions authorized by the board." MCL 380.1254; MSA 15.41254. However, school districts have neither expressed nor implied statutory authority to expend public funds to support candidates for public office or to advocate a particular vote on school millage or bond ballot proposals. OAG, 1965-1966, No 4291, p 1, (January 4, 1965); OAG, 1987-1988, No 6423, pp 33, 35 (February 24, 1987); OAG, 1987-1988, No 6531, p 367 (August 8, 1988); OAG, 1991-1992, No 6710, pp 125, 127 (February 13, 1992); OAG, 1993-1994, No 6763, p ____ (August 4, 1993); Phillips v Maurer, 67 NY2d 672; 499 NYS2d 675; 490 NE2d 542, 543 (1986); Anderson v Boston, 376 Mass 178; 380 NE2d 628, 632 (1978); Stanson v Mott, 17 Cal3d 206; 130 CalRptr 697; 551 P2d 1, 3 (1976).

Here, the director pays taxes on the money in the expense account. Nevertheless, as noted above, the contributions from the expense account are for "expenses related to his position with the district." Thus, clearly the school district is making its funds available for contribution to candidates for public office and the director is expending school district funds for that purpose as part of his employment. These are not personal campaign contributions made by a school district employee with the employee's after-tax income.

It is my opinion, therefore, in answer to your first question, that a school district lacks the statutory authority to provide an expense account to one of its employees that may be used for the purpose of making contributions to candidates for public office.

Your second question may be stated as follows:

To whom are the contributions of the school district employee attributable for purposes of contribution limits under the Michigan Campaign Finance Act?

The answer to your first question concluded that a school district lacks the statutory authority to provide an expense account to one of its employees that may be used for the purpose of making contributions to candidates for public office. Nevertheless, the contributions have been made so you have asked to whom the contributions should be attributed under the Michigan Campaign Finance Act.

Section 31 of the Michigan Campaign Finance Act, MCL 169.231; MSA 4.1703(31), provides:

A contribution which is controlled by, or made at the direction of, another person, including a parent organization, subsidiary, division, committee, department, branch, or local unit of a person, shall be reported by the person making the contribution, and shall be regarded as a contribution attributable to both persons for purposes of contribution limits.

A statute should be construed to effectuate its purpose. Wyandotte Savings Bank v State Banking Comm'r, 347 Mich 33, 40-41; 78 NW2d 612 (1956). Section 31 of the Michigan Campaign Finance Act is clearly designed to promote full disclosure of the source of campaign contributions and to implement the limits on those contributions. Here, the director made the contributions from expense account funds provided to him for that purpose by his employer, the school district. In that context, the contributions are attributable to both the director and the school district for purposes of contribution limits. This construction of the statute furthers the legislative purpose of full disclosure of campaign contributions, including contributions by governmental units that lack the authority to make the contributions.

It is my opinion, therefore, in answer to your second question, that contributions to candidates for public office by a school district employee from an expense account maintained by the school district for that purpose are attributable for purposes of contribution limits to both the employee and the school district under the Michigan Campaign Finance Act.

Your third question may be stated as follows:

May a school district or a university pay for the establishment, administration, and solicitation of contributions to a separate segregated fund to be used for committees authorized under section 55 of the Michigan Campaign Finance Act?

In section 55 of the Michigan Campaign Finance Act, MCL 169.255; MSA 4.1703(55), the Legislature has authorized profit and nonprofit corporations and joint stock companies to contribute corporate funds for the establishment, administration, and solicitation of contributions to a separate segregated fund to be used for committees. The Legislature has not authorized school districts or universities to make payments of public money for these purposes under section 55 of the Michigan Campaign Finance Act.

It is my opinion, therefore, in answer to your third question, that neither school districts nor universities may pay for the establishment, administration, and solicitation of contributions to a separate segregated fund to be used for committees authorized under section 55 of the Michigan Campaign Finance Act.

Frank J. Kelley

Attorney General