LANSING, Mich. (Michigan News Source) — The Michigan Secretary of State’s office finalized new guidance that declares the long-standing practice of lobbyists providing sports and concert tickets to legislators as illegal. This guidance, confirmed on August 8, comes despite an appeal from attorney John Fifarek, who warned of the “potentially destabilizing impact” of the decision due to pre-committed tickets for the upcoming sports season (The Detroit News).

For years, lobbyists have bypassed Michigan’s ban on gifts exceeding $76 to public officials by giving lawmakers tickets and then privately requesting reimbursement for the excess value. This strategy, revealed by The Detroit News in May, has now been deemed unlawful by the Secretary of State’s office.

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Attorney John Fifarek, representing an undisclosed client, voiced concerns in a public comment letter dated July 26. He argued that the proposed “fair market value” standard for ticket valuation was impractical and inconsistent with existing statutes and prior interpretations. 

Specifically, Fifarek cited an example where a Detroit Lions field pass fetched $45,000 at a charity auction. “Determining a fair market value outside of the face value for tickets not actively listed on the open market becomes speculative at best,” Fifarek said. He pointed out that ticket prices can fluctuate based on team performance, market demand, and the timing of the purchase, making a standardized fair market value difficult to establish. 

To this end, Fifarek argued that maintaining the face value of tickets as the standard would provide a clearer, more consistent measure for all parties involved. Fifarek also said that many tickets had already been distributed for the upcoming sports season under the old understanding of the law, complicating the administrative shift.

The ruling has immediate ramifications for both legislators and lobbyists. Lawmakers who previously benefited from this loophole must now adhere to stricter ethical guidelines, while lobbyists need to find new, compliant methods of engagement.

Bob LaBrant, former general counsel for the Michigan Chamber of Commerce, formally requested the ruling to clarify the legality of the ticket reimbursement strategy. In response to the finalized decision, LaBrant told The Detroit News, “I think it should probably be prospective,” indicating that the decision would likely apply going forward rather than retroactively.

Despite mixed reactions, the Secretary of State’s office upheld its stance, aiming to eliminate the covert exchange of gifts that could influence legislative decisions. 

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Christina Hildreth Anderson, Chief of Staff for the Secretary of State, provided additional clarity on the decision in the finalized guidance: “Allowing the cost of a gift to be allocated across multiple parties, be they lobbyists or public officials, cannot circumvent the gift ban and in doing so would frustrate the purposes of the Lobby Act.”