Published: April 20, 2008 10:09 am      

Lawmakers want change in wake of ruling

BY BRIAN MCGILLIVARY

bmcgillivary@record-eagle.com

TRAVERSE CITY — Two northern Michigan lawmakers want to change a state law that prevented a local prosecutor from investigating Meijer Inc.'s alleged campaign finance law violations.

Another local lawmaker, state Sen. Michelle McManus, R-Lake Leelanau, doesn't share that desire for change. And she chairs the Senate Campaign and Election Oversight Committee, a panel that would review the proposed legislation.

McManus believes Michigan Secretary of State Terri Lynn Land should continue to be "the gatekeeper" for resolving campaign finance violations. Local prosecutors shouldn't have a role, she said.

But Republican State Reps. Howard Walker of Traverse City and Kevin Elsenheimer of Bellaire this month began drafting legislation to allow county prosecutors to investigate criminal violations of the Michigan Campaign Finance Act.

"It makes sense to have the county prosecutor take a look at violations that affect them locally," Elsenheimer said. "They are elected because of their ability to put politics aside and pursue justice."

Walker said his proposed legislation is "what's right for the citizens of Michigan."

Their work followed a request from Grand Traverse County Prosecutor Alan Schneider, whose efforts to investigate Meijer for alleged criminal behavior in an Acme Township recall election were derailed by a circuit judge.

"The secretary of state cannot correct crimes which have occurred by imposition of civil fines," Schneider said.

Thirteenth Circuit Judge Philip E. Rodgers on April 11 rebuffed Schneider's request that Meijer officials turn over documents sought through investigative subpoena. State law holds that only the Michigan Secretary of State can refer a violation of the act for criminal investigation to the state attorney general, Rodgers ruled.

Schneider's probe attempted to determine whether the Grand Rapids-based retailer committed felonies by secretly using corporate funds to influence the attempted recall of Acme Township's board in February 2007.

Documents from a civil lawsuit show Meijer paid Grand Rapids public relations firm Seyferth Spaulding Tennyson Inc. more than $30,000 to orchestrate the recall in order to resolve a zoning dispute over a proposed Meijer store.

Use of corporate funds to influence an election is a felony.

State Sen. Jason Allen, R-Traverse City, said he thinks the proposed legislation "make a lot of sense" and he's willing to work toward its passage in the Senate.

But that would require convincing a reluctant McManus to give the bill a hearing in her committee.

"Campaign finance laws are about transparency, they are not about criminal action," McManus said. "I've been following the issue, and I don't understand why it wasn't resolved a long time ago."

McManus, who received $2,100 in contributions from Meijer's political action committee since 2002, said Land could have levied a civil fine on Meijer and resolved the issue.

The battle Schneider is waging in the Legislature and courts has major ramifications for the state and its entire election process, said Rich Robinson, executive director of the nonpartisan Michigan Campaign Finance Network.

"It would be better for prosecutors to investigate than wait for the secretary of state to act, which too often, generally speaking, isn't much," he said.

The law instructs the secretary of state to pursue "soft action" to resolve violations through informal agreements that then become a barrier to tougher action, Robinson said. In addition, the secretary of state lacks authority to compel the production of documents and testimony, limiting her office's ability to fully investigate criminal violations.

If Meijer's actions are not investigated by law enforcement, it will be an "open invitation to anyone politically connected to break the law with impunity," Robinson said.