LANSING, Mich. (WOWO) — Michigan voters will decide in November whether to place new restrictions on political contributions from regulated utility companies and certain government contractors.
Proposal 2, a citizen-initiated measure formally titled the “Money Out of Politics” proposal, would prohibit regulated electric and natural gas utilities, certain government contractors and people or organizations with substantial connections to those entities from making certain direct or indirect campaign contributions.
The proposal is on the statewide ballot for the November 3 election. The Michigan Board of State Canvassers approved the ballot language in August.
Under the proposal, regulated utilities and contractors with more than $250,000 a year in government contracts would face restrictions on political contributions involving candidates or officeholders whose jurisdictions have an impact on those businesses.
The measure would also make changes to Michigan’s campaign-finance disclosure requirements.
According to the official ballot language, Proposal 2 would expand disclosure requirements for political communications that clearly identify candidates or ballot questions, even when the communications do not specifically tell voters to support or oppose them.
The proposal would also explicitly apply disclosure requirements to political communications distributed over the internet according to WXYZ.
The initiative was organized by Michiganders Money Out of Politics, also known as MOP UP Michigan. Organizers collected more than 560,000 signatures in an effort to place the measure before voters.
Christy McGillivray, co-chair of the organization, said the campaign grew out of concerns about utility rates, health-care costs and the influence of large political contributions.
“Part of the reason why we’ve seen rate hike after rate hike and data centers exploding everywhere is because utilities throw their weight around in Lansing,” McGillivray said.
She argued regulated utilities should not be able to make large political contributions to elected officials who have regulatory authority over them.
The companies that would be affected by the proposal disagree with that argument.
DTE Energy said the initiative would prevent Michigan residents connected to the company from participating in political activity while potentially increasing the influence of wealthy donors and groups from outside the state.
“The MOP Up Michigan ballot proposal is a direct attack on Michiganders — intended to silence them from lawfully participating in issues that affect their lives, families and communities,” DTE said in a statement.
DTE said it would continue opposing the proposal, arguing it could shift political influence rather than remove it.
Consumers Energy has raised a similar concern.
The company said the proposal would not eliminate political spending, but could instead move influence away from Michigan businesses and toward national donors and special-interest groups.
Consumers Energy also argued that employees could lose some ability to participate in political activity through employee-supported political organizations.
The company said its employees voluntarily contribute to CMS Energy Employees for Better Government, which it described as a nonpartisan political action committee governed and funded by employees.
The debate over Proposal 2 comes as utility regulation and energy costs remain prominent issues in Michigan.
The Michigan Public Service Commission regulates investor-owned electric and natural gas utilities, including DTE and Consumers Energy. Rate cases involving both companies remain active before the commission.
Supporters of Proposal 2 say limiting political contributions from regulated companies would reduce potential conflicts involving businesses that depend on decisions made by state and local officials.
Opponents counter that restricting contributions from Michigan companies and their employees could limit their participation while leaving other sources of political spending untouched.
One issue raised by opponents is so-called dark money — political spending where the original source of the money may not be immediately apparent to voters.
McGillivray acknowledged that Proposal 2 would not address every aspect of political spending.
“We do need to get more money out of politics, agree, and let’s show how much support there is for Prop 2 when everyone votes yes, to build on it and go even farther,” she said.
The proposal has already moved through the state Legislature in the form of legislation that would place the question before voters.
The Michigan House voted in August to advance the measure to the November ballot after lawmakers considered the initiative.
The final statewide ballot lists Proposal 2 as a question asking voters whether the proposal should be adopted.
A “yes” vote would adopt the proposal, while a “no” vote would reject it.
The election is November 3, with absentee voting available ahead of Election Day.
Some Michigan voters interviewed by WXYZ said receiving an absentee ballot gives them more time to research ballot questions before making a decision.
Voter Mike Sternberg said having a ballot at home allows him to research issues rather than relying solely on political advertising.
“I can go online, I can research it, I don’t have to rely on you know whatever commercial comes on television that’s giving me one side of the story,” Sternberg said.
Proposal 2 is one of two statewide questions Michigan voters will consider in November.
The other asks whether Michigan should convene a constitutional convention.
For Proposal 2, the central issue is whether Michigan should place additional restrictions on political contributions and communications involving regulated utilities and major government contractors — and whether those restrictions would change the balance of political influence in the state.
Voters will make the final decision November 3.
