[ Previous Page] [ Home Page ]
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. 6217 April 10, 1984 ELECTIONS: Political contributions by an insurance company to an out-of-state political action committee INSURANCE: Political contributions by an insurance company to an out-of-state political action committee to be channeled back into a political action committee in Michigan. An insurance company doing business in Michigan is prohibited from contributing money or property to an out-of-state political action committee to be channeled back into a political action committee in Michigan for use for political purposes. Nancy A. Baerwaldt Commissioner of Insurance Department of Licensing and Regulation P.O. Box 30220 Lansing, Michigan You have requested my opinion on a question which may be stated as follows: May an insurer doing business in this state contribute any money or property to an out-of-state political action committee to be channeled back into Michigan for any political purpose whatsoever? The Michigan campaign financing and practices act, 1976 PA 388, as amended; MCLA 169.201 et seq; MSA 4.1703(1) et seq, generally forbids expenditures by corporations, and their officers, directors and agents acting on their behalf for political purposes, except for ballot questions. 1976 PA 388, supra, Sec. 54. Corporations and joint stock companies are, however, expressly permitted to 'make an expenditure for the establishment and administration and solicitation of contributions to a separate segregated fund to be used for political purposes.' 1976 PA 388, supra, Sec. 55. The Secretary of State issued a declaratory ruling, dated October 26, 1983, concerning the applicability of the Michigan campaign financing and practices act, supra, to the operation of out-of-state political action committees in Michigan. That declaratory ruling concluded: 'An out-of-state political action committee, which (1) is registered with the Federal Election Commission and (2) does not solicit or accept contributions from persons other than those specified in sections 55(2) and 55(3) of the Michigan Campaign Finance Act may transfer funds to an affiliated committee which has a Michigan depository and treasurer and makes expenditures in Michigan state elections.' Insurance companies doing business in Michigan are subject to a more restrictive statute. 1956 PA 218, Sec. 2074; MCLA 500.2074; MSA 24.12074, conflicts with 1976 PA 388, Sec. 54, supra, by expressly prohibiting an insurer from directly or indirectly contributing any money or property for 'any political purpose, whatsoever.' 1956 PA 218, Sec. 2074, supra, reads, in pertinent part: '(1) No insurer doing business in this state shall, directly or indirectly, pay or use, or offer, consent or agree to pay or use any money or property for or in aid of any political parties, committee or organization, or for or in aid of any corporation, joint stock or other association organized or maintained for political purposes, or for or in aid of any candidate for political office or for nomination for such office, or for the purpose of influencing or affecting the vote on any question submitted to the voters, other than one materially affecting any of the property, business or assets of such insurer, or for any political purpose, whatsoever, or for the reimbursement or indemnification of any person for money or property so used, notwithstanding the provisions of section 14 of chapter 2 of part 5 of Act No. 351 of the Public Acts of 1925, being section 196.14 of the Compiled Laws of 1948.' The general rule of statutory interpretation is that where a special statute or code conflicts with a more general statute, 'the special statute or code must prevail.' Imlay Twp Primary School Dist No 5 v State Bd of Education, 359 Mich 478; 485; 102 NW2d 720 (1960). This rule applies even if the more general enactment is passed more recently than the special statute or code. See, Attorney General ex rel Owen v Joyce, 233 Mich 619; 207 NW 863 (1926); Imlay Twp Primary School Dist No 5 v State Bd of Education, supra. 1956 PA 218, Sec. 2074, supra, is part of the Insurance Code of 1956, 1956 PA 218; MCLA 500.100 et seq; MSA 24.1100 et seq, which pervasively regulates the business of insurance. That section is limited by its terms to any 'insurer doing business in this state.' On the other hand, 1976 PA 388, Sec. 54, supra, is more general. It applies to all corporations except a corporation formed for political purposes. Accordingly, the more specific statute, 1956 PA 218, Sec. 2074, supra, controls and insurers are subject to its more restrictive provisions. OAG, 1979-1980, No 5695, p 743, 745 (April 28, 1980), concluded that 1956 PA 218, Sec. 2074, supra, was unconstitutional to the extent that it attempts to prohibit contributions by insurers which would influence or affect the vote on ballot questions: 'Thus, while the Insurance Code of 1956, Sec. 2074, supra, does permit insurers to make political contributions in narrowly defined instances, the limitation contained therein relating to ballot questions is not in accord with the Michigan Supreme Court's decision in Advisory Opinion on the Constitutionality of 1975 PA 227, (Questions 2-10), supra, [396 Mich 465; 242 NW2d 3 (1976)], the United States Supreme Court's decision in First National Bank of Boston v Bellotti, supra, [435 US 765, 777; 98 S Ct 1407; 55 L Ed 2d 707 (1978)], and recent opinions of this office. Therefore, it is my opinion that the provision in 1956 PA 218, Sec. 2074, supra, which prohibits contributions by insurers which would influence or affect the vote on ballot questions is unconstitutional.' OAG, 1979-1980, No 5695, supra, also concluded that the unconstitutional provisions was severable from the balance of the Act which remained in effect. While the Secretary of State's declaratory ruling permits out-of-state political action committees to transfer funds to a Michigan affiliate and thus to participate in Michigan political activity, that ruling does not relax in any manner whatsoever the proscriptions of 1956 PA 218, Sec. 2074, supra, which specifically prohibits an insurer doing business in this state from 'directly or indirectly' contributing any property or money in support of political activities in Michigan. It is my opinion, therefore, that 1956 PA 218, Sec. 2074, supra, not only prohibits direct contributions by insurers doing business in Michigan to political action committees in Michigan (except to influence or affect the vote on ballot questions, OAG, 1979-1980, No 5695, supra), but also proscribes such an insurer from contributing money or property to an out-of-state political action committee to be channeled back into a political action committee in Michigan for use for political purposes. Frank J. Kelley Attorney General
[ Previous Page] [ Home Page ]