Michigan voters pass Proposal 2

Michigan voters approved Proposal 2 on Tuesday. The ballot initiative changes how money flows into state politics by targeting large government contractors.

The new law bars companies that receive state contracts worth at least $250,000 from contributing to state candidates or officials. It also expands disclosure requirements for campaign finance. Supporters argue these rules will limit the political power of major corporations, including utilities like DTE Energy and Consumers Energy.

Erik Shelley, director of direct action for Michigan United, said the group helped lead the effort to pass the measure. He noted that the vote creates specific restrictions for companies with substantial state business. "Now, we have new rules in place so that specifically if a company makes a quarter of a million dollars in state contracts, they're prohibited from donating to state politicians," Shelley said.

Residents in Detroit and Lathrup Village expressed support for the change. Damon Mailey, a Detroit resident, said he did not believe public service companies should contribute to the political process. Ed Blondin, a Lathrup Village resident, said big corporate contributions to campaigns need to stop.

DTE Energy issued a statement through spokesperson Ryan Lowry. Lowry said the company supports the right of its employees to participate in the political process. The company said it would continue to assess the proposal and determine its next steps. Consumers Energy declined to provide comment.

Eric Walcott, a senior specialist at Michigan State University Extension, explained the timeline for implementation. The proposal becomes law ten days after the election results are certified. The specific provisions of the law take effect 18 months after adoption. This gives state agencies roughly a year and a half to build the systems needed for enforcement.

Walcott said existing campaign finance reporting systems will likely be used to monitor compliance. Agencies can flag contributions from listed companies as they are filed. A lawsuit has already been filed by the Mackinac Center for Public Policy. The center argues that two provisions of the initiative violate First Amendment protections.