An Overview of Michigan’s B.R.I.T.E. Act (Bringing Reforms in Integrity, Transparency and Ethics)

Legal Alerts

3.26.24

Introduced on March 14, 2024, the B.R.I.T.E. Act—Bringing Reforms in Integrity, Transparency and Ethics— would increase reporting and disclosure requirements for registered lobbyists and would require state-level public officials to submit comprehensive financial records on an annual basis.

The B.R.I.T.E. Act legislation (House Bill 5580, House Bill 5581, House Bill 5582, House Bill 5583, House Bill 5584, House Bill 5585, and House Bill 5586) builds upon the passage of Proposal 1 in 2022 and the requirements enacted in November of 2023. Proposal 1 was a constitutional amendment in Michigan approved by the voters in November of 2022. It modified term limits in the Michigan state legislature and required increased financial disclosure requirements for various elected officials.

Senate Bill 613, Senate Bill 614, Senate Bill 615, and Senate Bill 616, the implementation legislation for Proposal 1, was signed by Governor Gretchen Whitmer in December of 2023. Coined the “Public Officers Financial Disclosure Act,” this statute requires a public officer and a candidate for office to file financial disclosure reports with the Department of State on an annual basis.

Under the new legislative package, several reporting requirements would be significantly enhanced, including:

  • House Bill 5580 would require 527 organizations and 501(c)(4) entities to electronically file registration with the Secretary of State and submit financial disclosures regarding contributions received. The registration would need to include the name of the organization, the name of the individual who directs or controls the organization, and the name of the official or candidate with whom the fund is associated. Michigan law currently does not require these organizations to disclose the financial contributions they receive or the elected officials or candidates who direct and control them. With the proposed changes, this information would be publicly available on the Secretary of State’s website.
  • House Bill 5581 would create increased lobbying guidelines for elected officials, legislative staff, members of the executive office, and leadership from Michigan state departments. HB 5581 would update the current statute to add various officials to the list of officials in the executive branch and add legislative staff to who is covered by the term “official in the legislative branch.”
  • House Bill 5582 would define an “elected official” as an individual who holds state elective office and require 501(c)(4) and 527 organizations to disclose contributions.
  • House Bill 5583 would establish the Secretary of State’s authority to create, implement, and supervise the reporting process for the increased requirements.
  • House Bill 5584 would change the definition of a “gift” for lobby reporting purposes from the current inflation adjusted threshold of $76 to be “anything of value”. However, anything of value that is so de minimis that its receipt by the elected official could not reasonably be expected to influence how the public official performs work or makes decisions is exempted if its value is less than $20.
  • House Bill 5585 would require public officials to file an annual disclosure of items, including food or travel, purchased for elected officials by a membership organization or association, even if such entity does not fall under the definition of a lobbyist. There currently are no reporting requirements for public officials or lobbyists that provide this proposed level of detail on transactions.
  • House Bill 5586 would restrict lawmakers from becoming registered lobbyists within a year after their term ends, with exceptions for those who go to lobby for a state agency, the governor, attorney general or secretary of state.

These bills are not final and are subject to revision as the legislative process occurs. Of course, Dykema’s Government Policy Advocacy team is closely monitoring the progress of these bills and has the ability to engage lawmakers about potential amendments or to discuss any questions you may have.