Joe Tate

Joe Tate

Campaign Finance and Dark Money

Nonprofit Organizations and Fundraising

During Tate's speakership, concerns emerged about the use of 501(c)(4) nonprofit organizations to channel undisclosed political donations. These organizations, often referred to as "dark money groups," allowed donors to influence policy while avoiding public disclosure requirements.

Citizens for a Better Michigan, an organization linked to Tate, reported raising $587,474 in 2023, his first year as speaker. The group told the IRS its mission was to "improve the quality of life for Michigan residents by advocating for practical policy solutions." Tax records showed the organization spent:

• $67,311 on "conferences, conventions and meetings"
• $41,414 on travel
• $26,503 on advertising and promotion

Utility Company Influence

A significant controversy emerged over Tate's relationship with utility companies, particularly DTE Energy. Key events included:

• A $100,000 contribution from Michigan Energy First (a nonprofit led by DTE Energy executives) to Citizens for a Better Michigan
• The contribution coincided with pending legislation to address widespread power outages
• The main utility oversight bill, sponsored by House Energy Chairwoman Helena Scott, advanced out of committee but never received a floor vote under Tate's leadership

Opposition to Reform

Tate's tenure as speaker demonstrated a pattern of systematic opposition to ethics reforms, with actions ranging from procedural delays to active discouragement of reform efforts within his caucus. Under Tate's leadership, multiple ethics reform initiatives were systematically delayed or blocked. His approach included:[1]

• Referring bills to the Government Operations Committee rather than the Ethics and Oversight Committee
• Limiting session days during which votes could be held
• Delaying committee hearings on reform legislation
• Privately discouraging caucus members from introducing stronger reform measures

FOIA Reform Opposition

Tate's handling of Freedom of Information Act (FOIA) reform was particularly notable:[2][3]

• He waited five months to put FOIA expansion bills on the House agenda
• Became the first speaker in a decade to not hold a vote on open records law reform
• Previous Republican speakers had all allowed votes on similar measures, with some passing by margins as wide as 100-6
• The delays pushed consideration to the lame duck session, where the bills ultimately died

The BRITE Act

The BRITE Act, introduced by House Democrats in March 2024, represented a comprehensive attempt at ethics reform in Michigan following scandals involving former House Speaker Lee Chatfield. The seven-bill package aimed to address systemic issues in state government, including the regulation of nonprofit organizations tied to lawmakers and implementing a one-year "cooling off" period before former legislators could become lobbyists.[1]

Despite initial momentum and backing from the House Ethics and Oversight Committee, the legislation faced significant obstacles under Speaker Tate's leadership. The bills that would have registered nonprofit fundraising accounts advanced out of the ethics committee on December 5, but leadership never brought them to the floor for votes. Similarly, a proposal establishing the lobbying waiting period cleared committee on November 14 but never received a floor vote.[2] Rep. Erin Byrnes, chairwoman of the Ethics and Oversight Committee, reported facing "roadblocks" when attempting to hold hearings on the package, stating she "was trying to work through the speaker's office to be able to hold those committee hearings, and I was told to wait."[3]

Dark Money Disclosure Initiative

Separate from the BRITE Act, Democratic lawmakers sought to introduce legislation specifically targeting the disclosure of donors to nonprofit fundraising accounts, a practice that had become widespread in Michigan politics. A Detroit News investigation revealed 87 accounts in Michigan received political contributions outside traditional campaign disclosure laws in 2023 and 2024, indicating a majority of the state Legislature was engaged in collecting money from secret donors.[4]

Speaker Tate actively worked to prevent these disclosure requirements from being introduced, with multiple Democratic sources confirming he privately urged caucus members not to include such provisions in proposed legislation.[5] The opposition to disclosure requirements came as Tate's own associated nonprofit, Citizens for a Better Michigan, received significant donations, including $100,000 from Michigan Energy First, a group led by DTE Energy executives.[6]

Attorney General Dana Nessel highlighted the impact of such undisclosed donations, noting that "powerful interests" had avoided disclosure while working to sway elections and public policy, and that legislators frequently cited pressure from "big-monied, unreported donor[s]" as reason for blocking popular legislation.[7]