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 JENNIFER M. GRANHOLM, ATTORNEY GENERAL CAMPAIGN FINANCE ACT: GAMING CONTROL AND REVENUE ACT: POLITICAL ACTIVITY: Political activities by casino licensees and other persons Political contributions by casino licensees and other persons Section 7b of the Michigan Gaming Control and Revenue Act does not prohibit
casino licensees and other persons subject to that section from engaging in
political activities on behalf of a political candidate or candidate committee.
Such activities do not constitute a "contribution" as defined by
section 4 of the Michigan Campaign Finance Act. Section 7b of the Michigan Gaming Control and Revenue Act prohibits casino
licensees and other persons subject to that section from making a non-monetary
contribution to a political candidate or candidate committee that would
constitute a "contribution" as defined by section 4 of the Michigan
Campaign Finance Act. Opinion No. 7086 August 10, 2001 Honorable Mark H. Schauer You have asked two questions concerning section 7b of the Michigan Gaming
Control and Revenue Act (Gaming Act), 1996 Initiated Law, MCL 432.201 et seq.
The Gaming Act implements and regulates casino gambling in Michigan. The title
of the Gaming Act establishes its scope and provides, in part, as follows: An act to provide for the licensing, regulation, and control of casino gaming
operations, manufacturers and distributors of gaming devices and gaming related
equipment and supplies, and persons who participate in gaming; . . . to
restrict certain political contributions; to establish a code
of ethics for certain persons involved in gaming; . . . [Emphasis added.] Sections 7b(4) and (5)1 of the Gaming Act restrict political contributions by
licensees and persons holding an interest in a licensee or casino enterprise as
follows: (4) A licensee or person who has an interest in a licensee or casino
enterprise, or the spouse, parent, child, or spouse of a child of a licensee or
person who has an interest in a licensee or casino enterprise, shall not make a contribution
to a candidate or a committee . . . . * * * (5) A licensee or person who has an interest in a licensee or casino
enterprise, or the spouse, parent, child, or spouse of a child of a licensee or
a person who has an interest in a licensee or casino enterprise, shall not make
a contribution to a candidate or committee through a legal entity that is
established, directed, or controlled by any of the persons described in this
subsection . . . . [Emphasis added.] Your first question asks whether section 7b of the Gaming Act prohibits
casino licensees and other persons subject to that section from engaging in
political activities on behalf of a political candidate or candidate committee. Information supplied with your request suggests a concern that the
prohibition against making a "contribution," as that term is used in
sections 7b(4) and (5) of the Gaming Act, may prohibit casino licensees and
other persons subject to those sections from engaging in political activities
such as endorsing a political candidate, allowing their names to be used in
campaign literature, or serving as officers for a candidate�s campaign
committee.2 The Gaming Act does not define the term "contribution." Section 4
of the Michigan Campaign Finance Act (Campaign Finance Act), 1976 PA 388, MCL
169.201 et seq, however, defines the term "contribution" as
follows: (1) "Contribution" means a payment, gift, subscription, assessment,
expenditure, contract, payment for services, dues, advance, forbearance, loan,
or donation of money or anything of ascertainable monetary value, or a transfer
of anything of ascertainable monetary value to a person, made for the purpose of
influencing the nomination or election of a candidate, or for the qualification,
passage, or defeat of a ballot question. (2) Contribution includes the full purchase price of tickets or payment of an
attendance fee for events such as dinners, luncheons, rallies, testimonials, and
other fund-raising events; an individual�s own money or property other than
the individual�s homestead used on behalf of that individual�s candidacy;
the granting of discounts or rebates not available to the general public; or the
granting of discounts or rebates by broadcast media and newspapers not extended
on an equal basis to all candidates for the same office; and the endorsing or
guaranteeing of a loan for the amount the endorser or guarantor is liable. (3) Contribution does not include any of the following: (a) Volunteer personal services provided without compensation, or payments of
costs incurred of less than $500.00 in a calendar year by an individual for
personal travel expenses if the costs are voluntarily incurred without any
understanding or agreement that the costs shall be, directly or indirectly,
repaid. (b) Food and beverages, not to exceed $100.00 in value during a calendar
year, which are donated by an individual and for which reimbursement is not
given. (c) An offer or tender of a contribution if expressly and unconditionally
rejected, returned, or refunded in whole or in part within 30 business days
after receipt. The Campaign Finance Act regulates the financing of and restricts
contributions to political campaigns. It was enacted "to ensure the
integrity of Michigan�s political campaigns and offices, thereby protecting
the interest of the public at large, individual citizens, and candidates for
political office." Senate Legislative Analysis, SB 1570, December 17, 1976.
Section 7b of the Gaming Act also restricts political contributions and, like
the Campaign Finance Act, strives to protect and preserve the integrity of
Michigan�s political process. In OAG, 1997-1998, No 7002, pp 206, 209
(December 17, 1998), the Attorney General concluded that the political
contribution limitations contained in section 7b of the Gaming Act further the
State�s compelling interest in preventing corruption and the appearance of
corruption in the political process. The text of section 7b of the Gaming Act demonstrates that Act�s close
relationship to the Campaign Finance Act. As used in section 7b of the Gaming
Act, the terms "candidate," "committee," "candidate
committee," "political party committee," "independent
committee," and "ballot question committee" are all defined by
reference to the Campaign Finance Act. The legislative history of the various
amendments to the Gaming Act also evidences this relationship. Section 7b was
among several amendments to the Gaming Act passed by the Legislature as 1997 PA
69. The amendments were enacted on the same day as 1997 PA 71, MCL 169.230, an
amendment to the Campaign Finance Act prohibiting a committee from accepting a
contribution from a person prohibited from making a contribution under section
7b of the Gaming Act. This amendment to the Campaign Finance Act was tie-barred
to the amendments to the Gaming Act.3 Statutes that relate to the same person or thing, or to the same class of
persons or things, or which share a common purpose are in pari materia
and must be read together as constituting one system of law. People v Webb,
458 Mich 265, 274; 580 NW 2d 884 (1998). The rule is especially applicable
where, as here, the statutory provisions in question were passed in the same
legislative session and simultaneously approved by the Governor. Reed v
Secretary of State, 327 Mich 108, 113; 41 NW 2d 491 (1950). Statutes that
are in pari materia must be construed uniformly and consistently to
achieve the intent of the Legislature. Palmer v State Land Office Bd, 304
Mich 628, 636-637; 8 NW 2d 664 (1943). The object of the in pari materia rule
is to give effect to the legislative purpose as found in harmonious statutes on
the same subject. Webb, supra, at 274. In deciding whether to apply this
rule, courts often examine legislative history to "ascertain the uniform
and consistent purpose of the legislature." Palmer, supra, at
636-637. Section 7b of the Gaming Act and section 4 of the Campaign Finance Act are in
pari materia and must, therefore, be read together. Both acts share a common
purpose and subject matter -- the regulation of political contributions and the
protection of Michigan�s political process. Reading them together promotes the
uniform and consistent regulation of casino-related political contributions. The
Legislature, on the same day, amended both acts and also enacted the Casino
Interest Registration Act as a comprehensive plan regulating casino-related
political contributions. Application of the Campaign Finance Act's definition of
"contribution" to sections 7b(4) and (5) of the Gaming Act serves to
harmonize both acts and is consistent with the intent of the Legislature. A
contrary conclusion would lead to the absurd result that a contribution made under
section 7b of the Gaming Act would have a different meaning than a contribution accepted
by a committee under the Campaign Finance Act. In applying the Campaign Finance Act�s definition of
"contribution" to sections 7b(4) and (5) of the Gaming Act, it is
clear that political activities such as endorsing a political candidate,
allowing one�s name to be used in campaign literature, or serving as a member
of a candidate committee do not violate section 7b of the Gaming Act so long as
those services are provided "without compensation." Campaign Finance
Act, section 4(3)(a). It is my opinion, therefore, in answer to your first question, that section
7b of the Michigan Gaming Control and Revenue Act does not prohibit casino
licensees and other persons subject to that section from engaging in political
activities on behalf of a political candidate or candidate committee. Such
activities do not constitute a "contribution" as defined by section 4
of the Campaign Finance Act. Your second question asks whether section 7b of the Michigan Gaming Control
and Revenue Act prohibits casino licensees and other persons subject to that
section from making a non-monetary contribution to a political candidate or
candidate committee. Information supplied with your request describes such non-monetary
contributions as the provision of goods or services, making loans, or making
facilities available to a political candidate or candidate committee. In answering your first question, it was concluded that the definition of
"contribution" as provided in section 4 of the Campaign Finance Act
must be applied to sections 7b(4) and (5) of the Gaming Act. Applying this
conclusion, it is clear that any non-monetary contribution that falls within the
definition of "contribution" contained in section 4 of the Campaign
Finance Act is prohibited. This includes the provision of goods or services that
have an ascertainable monetary value (subject to specific statutory exemptions),
making loans, or, under certain circumstances, making facilities available to a
political candidate or candidate committee. It is my opinion, therefore, in answer to your second question, that section
7b of the Michigan Gaming Control and Revenue Act prohibits casino licensees and
other persons subject to that section from making a non-monetary contribution to
a political candidate or candidate committee that would constitute a
"contribution" as defined by section 4 of the Michigan Campaign
Finance Act. JENNIFER M.GRANHOLM 1OAG, 1997-1998, No 7002, pp 206, 210 (December 17, 1998), concluded that sections 7b(4) and (5) of the Gaming
Act, to the extent they prohibit political contributions by the spouse, parent, child, or spouse of a child of certain casino-related licensees or
interest holders, violate the free speech provisions of the First Amendment to the United States Constitution and are, therefore,
unconstitutional. 2 Section 4d(14) of the Gaming Act expressly prohibits members of the Michigan Gaming Control Board and certain gaming regulators from engaging in "political activity" or "politically related activity." Section 4d(28)(b) defines both terms. Section 4d does not apply to the class of persons identified in section 7b and is not addressed in this analysis. 3Section 1 of 1997 PA 71 states that: "This amendatory act does not take effect unless Senate Bill No. 569 of the 89th Legislature is enacted into law." SB 569 was enacted as 1997 PA 69. 1997 PA 71 and 1997 PA 69 were approved and filed with the Secretary of State on the same day. 1997 Journal of the Senate 1351, 1352. |