Secretary of State Review of Municipal Campaign Finance Complaints

The clerk of a municipality (clerk) is authorized to refer a campaign finance complaint (complaint) that was filed with the clerk and that arises out of a municipal campaign finance matter to the secretary of state (secretary) if the municipality in which the complaint was filed has adopted an ordinance that:

• Authorizes the municipality to refer a complaint to the secretary based on an actual or potential conflict of the clerk or the clerk's staff, as determined in writing by the clerk; or
• Authorizes the municipality to refer a complaint to the secretary because the municipality does not have a complaint and hearing process.

Before referring a complaint to the secretary, a clerk is required to review the complaint to determine if it was filed in writing, signed by the complainant, and identifies one or more respondents. If the complaint does not satisfy these 3 criteria, the clerk is required to dismiss it, and if it does, the clerk is required to refer it to the secretary.

To refer a complaint to the secretary a municipality must provide a copy of the ordinance that authorizes such referral to the secretary within 180 days of the election. The act specifies certain criteria that the ordinance must satisfy. A clerk is required to provide notice to a person who files a complaint if the clerk dismisses the complaint or refers the complaint to the secretary. A municipality is required to cooperate with the secretary in the review, investigation, and determination of any complaint referred to the secretary.

If the secretary receives a complaint referred by a clerk, the secretary is required to deem the complaint filed with the secretary on the date of receipt from the clerk and ensure that the complaint is addressed in accordance with the requirements of the act. In addition, if the complaint is referred by a home rule municipality, the secretary is required to apply the substantive provisions of the home rule municipality's local law in processing, investigating, and resolving the complaint.

For the 2024-25 state fiscal year, $170,723 is appropriated to the department of state from the department of state cash fund for the implementation of the act.

APPROVED by Governor June 3, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)