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Consumers and DTE sue to block "Money out of Politics" proposal

"Many Detroiters were leaving money on the table," said Priscilla Perkins, the President and CEO of the Accounting Aid Society.
Steve Carmody
/
Michigan Radio
Proposal 2 bans regulated utilities from making campaign contributions to Michigan politicians, among other changes to the Michigan Campaign Finance Act.

Consumers Energy and DTE Energy filed a lawsuit in federal court Thursday that seeks to block Proposal 2, backed by a group called Michiganders for Money out of Politics, from going into effect.

Voters approved the amendment to the Michigan Campaign Finance Act by an overwhelming majority — 81% of voters in unofficial results — on Tuesday.

It would ban regulated utilities including DTE Energy and Consumers Energy from making campaign contributions to the governor, attorney general, or a state senator or representative or a candidate for those offices. Employees and relatives of employees of the utilities would also not be permitted to make the campaign contributions.

In a statement, Consumers' Director of Media Relations Katie Carey said: "This proposal unfairly targets a Michigan business, its Michigan employees and their family members from exercising their constitutionally protected rights to participate in the political process, while allowing out of state special interest groups and billionaires to continue flooding Michigan with political spending. Michiganders should not lose their First Amendment rights because of where they work."

The lawsuit said the measure violates the First Amendment because "it is not directed toward preventing quid pro quo corruption or its appearance and is not closely drawn to that interest."

"Lacking any evidence of quid pro quo corruption, the MMOP Initiative offered only slogans and generic references to 'corruption,' 'legalized corruption,' 'pay-to-play politics,' 'big money,' 'special interests,' and 'corporate influence.' Those buzzwords are no substitute for evidence; the government 'must do more than merely recite a general interest in preventing corruption,'" the lawsuit said.

The lawsuit names as defendants Jonathan Brater, director of the Michigan Bureau of Elections, Michigan Attorney General Dana Nessel, and Secretary of State Jocelyn Benson or her successor in office. (Benson is governor-elect and Lt. Gov. Garlin Gilchrist is secretary of state-elect.)

The lawsuit seeks a finding that the measure violates the First and Fourteenth amendment rights of the plaintiffs, and a preliminary and permanent injunction of any state effort to investigate violations of the measure and assess fines.

Maura Cowley, campaign manager for the Michiganders for Money Out of Politics campaign, said in a statement:

“This lawsuit is no surprise. The corporations bankrolling our opposition have been gearing up for this lawsuit since Proposal 2 first qualified for the ballot, if not before. On Tuesday, Michiganders spoke loud and clear, voting to pass Proposal 2 with an overwhelming majority and delivering a resounding mandate to end pay-to-play politics and put power back where it belongs – with the people. The bottom line is that we are confident Proposal 2 will withstand legal scrutiny, and we were fully expecting and are prepared to take on this challenge.”

The lawsuit follows one filed on Wednesday by the Mackinac Center for Public Policy, a libertarian think tank. That lawsuit sought to challenge only some portions of the proposal.

Editor's note: Consumers Energy is among Michigan Public's corporate sponsors.

Tracy Samilton covers energy and transportation, including the auto industry and the business response to climate change for Michigan Public. She began her career at Michigan Public as an intern, where she was promptly “bitten by the radio bug,” and never recovered.