Secretary of State Terri Lynn Land today announced that Meijer Inc. is paying the largest fine ever assessed under Michigan's Campaign Finance Act as part of agreements resolving violations stemming from expenditures made in two elections.

The $190,138 fine is the maximum civil penalty that can be imposed based on the violations that occurred. It is part of conciliation agreements with Meijer that the Department of State is required by law to pursue.

"Our campaign finance laws are about openness and disclosure and in this case Meijer tried to avoid both," Land said. "The overall goal of the Campaign Finance Act is to ensure compliance and disclosure, which we achieve with these settlements in addition to a record fine. Our democracy encourages everyone to participate in the election process but we all must follow the rules."

The first agreement resolves issues regarding the company's involvement in an August 2005 referendum election in Grand Traverse County's Acme Township. Meijer Inc. made over $46,000 in unreported election expenditures. Under the law, corporations may spend money in elections to support or oppose a ballot question. However, Meijer Inc. failed to file as a ballot question committee and did not report the expenditures.

The company is paying a fine of more than $50,400 to the state that is equivalent to the amount of the undisclosed expenditure as well as penalties for each of the four campaign finance statements that were not filed. Meijer Inc. also will pay $4,800 in late filing fees to the Grand Traverse County clerk.

The second agreement addresses violations that occurred in connection with a 2007 recall election in Acme Township. The company made more than $55,000 in expenditures in that campaign. The expenditures could have been made and reported by Meijer Inc.'s separate fund, Meijer Political Action Committee, but were instead paid for with corporate dollars. Corporations are prohibited from contributing to political committees other than ballot question committees.

A corporation violating this provision of law is subject to a criminal penalty of up to $10,000 or a civil penalty equal to the amount of the improper expenditures, plus not more than $1,000 for each violation.

Meijer Inc. is paying an additional fine of more than $79,000. It includes the equivalent of the amount of the improper expenditures as well as penalties for incomplete campaign finance reports filed by Meijer PAC, and $1,000 for each of the expenditures paid to a legal firm and a public relations company. In addition, Meijer PAC is paying the state over $55,000, equaling the amount by which its treasury would have been reduced had it made the expenditures in the recall campaign instead of the company.

The agreements also specify internal controls and restructuring implemented by Meijer Inc. to prevent future campaign finance violations. Signing of the agreements completes the Department of State's review of this case.

Land has proposed several campaign finance law reforms which can be seen at www.Michigan.gov/sos.