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Michigan Gov. Rick Snyder in his Lansing office

(AP Photo | Carlos Osorio)

Update: Gov. Snyder explains in an op ed why he signed the bill.

LANSING, MI -- Michigan politicians will be able to accept larger campaign contributions from individuals and independent political action committees under a new law signed Friday by Gov. Rick Snyder.

The controversial measure, which passed the Republican-led Legislature with support from one independent and no Democrats, will double Michigan's existing contribution caps and index them to inflation but require candidate committees to file two new campaign finance reports in non-election years.

The law also codifies non-disclosure rules for so-called "issue ads," which often feature attacks but do not direct viewers to "vote for" or "vote against" a particular candidate.

For the first time, groups that run issue ads or place robocalls in Michigan will be required to include an "authorized by" disclaimer -- but they will not have to name their donors.

"Our democracy thrives and our government is at its best when there is openness and accountability, all while our freedoms of speech and association are protected," Snyder said in a statement released Friday afternoon.

"Together with my partners in the Legislature, we have taken steps to uphold those values, modernize our electoral system, and continue to reinvent government to better serve the people of Michigan."

The law will update the Michigan Campaign Finance Act by increasing contribution limits for the first time since the late 1970s. Michigan limits have trailed the national average, and backers say increasing them will help candidates keep pace with increased spending by outside groups.

Still, only a small percentage of Michigan residents hit the donation caps in recent election cycles, and critics say the law primarily will benefit wealthy individuals and special interest groups looking to widen their avenue of influence.

Under the new law, an individual will be able to donate up to $6,800 to a candidate for statewide office in a single election cycle, up from $3,400. Limits for state House and Senate candidates will jump to $1,000 and 2,000, respectively. Local candidate caps depend on the size of the community.

Independent PACs, such as those run by the Michigan Chamber of Commerce or the United Auto Workers union, can donate up to ten times as much as an individual. That means a PAC will be able donate $68,000 to a gubernatorial candidate in the 2014 election cycle, up from $34,000 in 2010.

Sponsoring Sen. Arlan Meekhof (R-West Olive) amended his bill to include the "issue ad" language just hours after Republican Secretary of State Ruth Johnson proposed an administrative rule that would have required donor disclosure for candidate-centric ads running within 30 days of a primary or 60 days of a general election.

In blocking Johnson's proposal, Meekhof and other supporters stressed the importance of free speech for those who engage in legitimate issue advocacy and freedom of association for individuals who might donate to a group but not necessarily sign off on every ad the organization chooses to run.

Snyder was a target of several issue ad attacks in the 2010 election cycle and released a white paper criticizing the "enormous campaign finance loophole" that allowed their backers to avoid reporting requirements. But in a recent year-end interview with MLive, the Republican governor cited an "evolution" in his thought process and discussed the need to balance transparency with free speech.

The governor, in his Friday statement, praised language requiring disclaimers on robocalls and issue ads, which was added to the bill by the state House. Many issue ads have included such statements, but they were not required under the law.

"For nearly four decades, organizations could anonymously publish or broadcast ads, make countless phone calls to voters at their homes, and send piles of mail without any identifying information,” Snyder said. "Voters wouldn’t know which organization was behind the effort, and they certainly wouldn’t be able to contact that organization. Thanks to these new reforms, that anonymity will be no more."

Critics, meanwhile, say disclaimers are unlikely to tell the public much about a group that is running issue ads, which have played an increasingly large role in Michigan elections. That's especially problematic in judicial races, they say, where winning candidates may end up hearing cases involving issue ad donors who will remain anonymous under the new law.

Several groups, including the League of Women Voters of Michigan and the Brennan Center for Justice at New York University Law School, had called on Snyder to veto the bill. Democrats, who have run issue ads and also will benefit from the increased contribution limits, have blasted it.

"(This bill) has nothing to do with the First Amendment," House Minority Leader Tim Greimel (D-Auburn Hills) said last week. "It has everything to do with the Republicans desire to get more money out of their big dollar corporate special interest contributors so they can pore that money into protecting Republican incumbents who have taken all kinds of votes that are against the best interest of Michigan residents."

Snyder has signed several bills this week sent to him by the Legislature in the final days of the 2013 session, including measures requiring more committees to file campaign finance reports electronically. Lawmakers are expected to return to Lansing on January 8.

Jonathan Oosting is a Capitol reporter for MLive Media Group. Email him, find him on Google+ or follow him on Twitter.