Bill Text: MI HB4469 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Public employees and officers; ethics; financial disclosure report; require certain candidates for elective office and state and local officials to file. Creates new act.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2013-03-20 - Printed Bill Filed 03/20/2013 [HB4469 Detail]

Download: Michigan-2013-HB4469-Introduced.html

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HOUSE BILL No. 4469

 

March 19, 2013, Introduced by Reps. Abed, Yanez, Dianda, Lamonte, Driskell, Cochran and Brinks and referred to the Committee on Elections and Ethics.

 

     A bill to regulate political activity; to regulate certain

 

candidates for elective office and state officials; to require

 

financial statements and reports; to prescribe the powers and

 

duties of certain state and local governmental officers and

 

agencies; to impose fees; to prescribe penalties and civil

 

sanctions; and to provide remedies.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the

 

"financial disclosure act".

 

     Sec. 2. As used in this act:

 

     (a) "Bureau of elections" means the bureau provided for by

 

section 32 of the Michigan election law, 1954 PA 116, MCL 168.32.

 

     (b) "Candidate" means that term as defined in section 3 of the

 

Michigan campaign finance act, 1976 PA 388, MCL 169.203.

 

     (c) "Candidate for state or local office" means a candidate

 

for any of the following offices:

 

     (i) Governor.

 

     (ii) Lieutenant governor.

 

     (iii) Secretary of state.

 

     (iv) Attorney general.

 

     (v) State senator.

 

     (vi) State representative.

 

     (vii) Member of the state board of education.

 

     (viii) Justice of the supreme court.

 

     (ix) Regent of the university of Michigan, member of the board

 

of trustees of Michigan state university, or member of the board of

 

governors of Wayne state university.

 

     (x) An elective public office for which the compensation is

 

greater than 1.5 times the statewide median gross income as

 

determined under section 143(f) of the internal revenue code, 26

 

USC 143(f), excluding a judge of a court of record.

 

     (d) "Earned income" means salaries, tips, and other

 

compensation, and net earnings from self-employment for the taxable

 

year.

 

     (e) "Immediate family" means a dependent child, a spouse of an

 

individual, or an individual claimed by that individual or that

 

individual's spouse as a dependent for federal income tax purposes.

 

     (f) "Income" means money or any thing of value received, or to

 

be received as a claim on future services, whether in the form of a

 

fee, salary, expense, allowance, forbearance, forgiveness,

 

interest, dividend, royalty, rent, capital gain, or any other form

 

of recompense that is considered income under the internal revenue

 

code of 1986, 26 USC 1 to 9833.

 

     (g) "Principal residence" means that term as defined under

 

section 7dd of the general property tax act, 1893 PA 206, MCL

 

211.7dd.

 

     (h) "State or local official" means any of the following:

 

     (i) The holder of an office described in subdivision (c).

 

     (ii) The head of each principal department as provided in

 

section 3 of article V of the state constitution of 1963, if the

 

office is filled by appointment.

 

     (iii) A member of a board or commission heading a principal

 

department as provided in section 3 of article V of the state

 

constitution of 1963, if the office is filled by appointment.

 

     Sec. 3. (1) If an individual is a state or local official at

 

any time during a calendar year, that individual shall file with

 

the bureau of elections by May 1 of the following year a report

 

that meets the requirements of section 4. This subsection does not

 

apply to an individual who was a state or local official only on

 

the first day of the calendar year.

 

     (2) If an individual is a candidate for state or local office

 

and has not already filed a report under subsection (1) covering

 

the preceding calendar year, that individual shall file with the

 

bureau of elections a report that meets the requirements of section

 

4 within 30 days after the earliest of the following events, but

 

not later than 11 days before the first election at which the

 

individual's name appears on the ballot as a candidate following

 

the event:

 

     (a) If the individual files a fee, affidavit of incumbency, or

 

nominating petition for the state office, the deadline for filing

 

the fee, affidavit of incumbency, or nominating petition

 

established by the Michigan election law, 1954 PA 116, MCL 168.1 to

 

168.992.

 

     (b) If the individual is nominated at a political party caucus

 

or convention, the deadline for holding the caucus or convention

 

established by the Michigan election law, 1954 PA 116, MCL 168.1 to

 

168.992.

 

     (c) The date on which the individual first receives a

 

contribution, makes an expenditure, or gives consent for another

 

person to receive a contribution or make an expenditure with the

 

purpose or intent of bringing about the individual's nomination or

 

election to a state office.

 

     (d) The date on which the individual forms a candidate

 

committee as a candidate for state or local office under section 21

 

of the Michigan campaign finance act, 1976 PA 388, MCL 169.221.

 

     (3) An individual who is a candidate for the office of

 

governor shall file with the bureau of elections on June 15 of the

 

year in which the election for the office of governor will be held

 

a copy of the individual's federal tax returns for the 3 preceding

 

calendar years. A social security number on a tax return filed

 

under this subsection may be redacted.

 

     Sec. 4. (1) Subject to section 5 and except as provided in

 

section 6, a report required by section 3 shall include a complete

 

statement of all of the following:

 

     (a) The full name, address, occupation of, and the state

 

office held or sought by, the individual filing the report.

 

     (b) The name of each member of the immediate family of the

 

individual filing the report.

 

     (c) The name and address of each employer of the individual

 

filing the report during the calendar year covered by the report.

 

     (d) Both of the following, as applicable:

 

     (i) The source, type, and amount or value of earned income

 

received during the preceding calendar year by the individual

 

filing the report if the total earned income from that source

 

equals $1,000.00 or more during that calendar year.

 

     (ii) The source and type of earned income received during the

 

preceding calendar year by the spouse of the individual filing the

 

report if the total earned income from that source equals $1,000.00

 

or more during that calendar year.

 

     (e) The source, type, and amount or value of all other income

 

not reported under subdivision (d) that is received during the

 

preceding calendar year by the individual filing the report or a

 

member of the immediate family of that individual if the total

 

income from that source equals $1,000.00 or more during that

 

calendar year.

 

     (f) The identity and value of each asset held during the

 

preceding calendar year by the individual filing the report or a

 

member of the immediate family of that individual, including real

 

or personal property or cash, if the asset had a fair market value

 

of $10,000.00 or more at any time the asset was held during the

 

preceding calendar year. However, if the individual filing the

 

report owns or has an interest in all or a portion of a farm or

 

business, the identity and value of each asset held during the

 

preceding year that is used in the operation of the farm or

 

business is not required to be reported under this subdivision if

 

the report includes a complete statement of the identity and value

 

of the farm or business.

 

     (g) The identity and value of each liability owed during the

 

preceding calendar year by the individual filing the report or a

 

member of the immediate family of that individual if the amount of

 

the liability was $10,000.00 or more at any time during the

 

preceding calendar year. This subdivision does not apply to loans

 

secured by the principal residence of the individual filing the

 

report or by a personal motor vehicle, household furniture, or

 

appliance, if the loans do not exceed the greater of the purchase

 

price or the market value of the item that secures the liability.

 

     (h) A brief description and value of a purchase, sale, or

 

exchange of real property, other than real property used solely as

 

a principal residence by the individual filing the report and his

 

or her immediate family, or of stocks, bonds, commodities, futures,

 

or other forms of securities during the preceding calendar year by

 

the individual filing the report or a member of the immediate

 

family of that individual, if the value is $1,000.00 or more. This

 

subdivision does not require a description of each purchase, sale,

 

or exchange of stocks, bonds, commodities, or other forms of

 

securities if those items are part of a mutual fund and if the

 

identity and value of the mutual fund is otherwise reported under

 

this act.

 

     (i) Except as otherwise provided in this subdivision, the

 

identity of all positions held by the individual filing the report

 

during the preceding calendar year as an officer, director, member,

 

trustee, partner, proprietor, representative, employee, or

 

consultant of a corporation, limited liability company, limited

 

partnership, partnership, or other business enterprise; of a

 

nonprofit organization; of a labor organization; or of an

 

educational or other institution other than this state. An

 

individual filing the report who is required to have a license to

 

practice or engage in a particular occupation or profession is not

 

required to identify a position held as a consultant of a

 

corporation unless the corporation is a publicly held corporation

 

that has shares that are listed or traded over the counter or on an

 

organized exchange or has gross revenues over $4,000,000.00. This

 

subdivision does not require the reporting of a position held in a

 

religious, social, fraternal, or political entity, or of a position

 

solely of an honorary nature.

 

     (j) If the individual filing the report has an agreement or

 

has made an arrangement with respect to future employment, a leave

 

of absence during that individual's term of office, continuation of

 

payments by a former employer, or continuation of participation in

 

an employee benefit plan maintained by a former employer, a

 

description of the agreement or arrangement, including the dates,

 

parties, and terms.

 

     (2) Information an individual is required to report under this

 

section shall include information with respect to the holdings of a

 

trust that is not an irrevocable trust and the income from any

 

trust or other financial arrangement from which income is received

 

by, or with respect to which a beneficial interest in principal or

 

income is held by, an individual required to file a report under

 

this section or an immediate family member of the individual.

 

     (3) If an individual is required to report information under

 

this section, he or she is not required to identify any particular

 

member of his or her immediate family in that information.

 

     Sec. 5. (1) An amount or value reported under section 4(d),

 

(e), (f), or (h) shall be reported by category as follows:

 

     (a) $1,000.00 or more but less than $10,000.00.

 

     (b) $10,000.00 or more but less than $50,000.00.

 

     (c) $50,000.00 or more but less than $100,000.00.

 

     (d) $100,000.00 or more but less than $500,000.00.

 

     (e) $500,000.00 or more.

 

     (2) An amount or value reported under section 4(g) shall be

 

reported by category as follows:

 

     (a) $10,000.00 or more but less than $50,000.00.

 

     (b) $50,000.00 or more but less than $100,000.00.

 

     (c) $100,000.00 or more but less than $500,000.00.

 

     (d) $500,000.00 or more.

 

     (3) Instead of specifying the category of the amount or value

 

of an item in a report under this act, an individual may indicate

 

the exact amount or value of the item.

 

     Sec. 6. A report under section 4 may omit any of the

 

following:

 

     (a) Information the person is required to report under the

 

Michigan campaign finance act, 1976 PA 388, MCL 169.201 to 169.282.

 

     (b) A liability owed to the individual filing the report or a

 

relative within the third degree of consanguinity to that

 

individual if lent by the individual filing the report or a

 

relative within the third degree of consanguinity to that

 

individual.

 

     (c) An item otherwise required to be reported under section

 

4(f), (g), or (h) if all of the following apply:

 

     (i) The item represents the sole financial interest and

 

responsibility of a member of the immediate family of the

 

individual filing the report about which the individual filing the

 

report does not have actual knowledge.

 

     (ii) The item is not in any way, past or present, derived from

 

the income, assets, or activities of the individual filing the

 

report.

 

     (iii) The individual filing the report does not derive, or

 

expect to derive, financial benefit from the item.

 

     (d) An item that concerns a spouse who is living separate and

 

apart from the individual filing the report with the intention of

 

terminating the marriage or maintaining a legal separation.

 

     (e) An item that concerns income or obligations of the

 

individual filing the report arising from dissolution of his or her

 

marriage or a permanent legal separation from his or her spouse.

 

     (f) Compensation from a publicly held corporation that has

 

shares that are listed or traded over the counter or on an

 

organized exchange paid to a business owned by the individual

 

filing the report or in which the individual filing the report has

 

an interest, if the report under section 4 includes a complete

 

statement of the identity and value of that business and the

 

individual filing the report is required to have a license as

 

described in section 4(i).

 

     (g) Benefits received under the social security act, chapter

 

531, 49 Stat. 620.

 

     (h) Information concerning assets in or income from a Michigan

 

education trust contract.

 

     Sec. 7. A judge of a court of record shall report the date,

 

place, and nature of any activity for which the judge received

 

compensation, the name of the payor, and the amount of compensation

 

received. The judge's report shall be made at least annually and

 

shall be filed as a public document in the office of the state

 

court administrator.

 

     Sec. 8. The bureau of elections shall do all of the following:

 

     (a) Prepare and make available appropriate forms and

 

instructions for the reports required by this act.

 

     (b) Receive reports as required by this act.

 

     (c) As soon as practicable, but not later than the end of the

 

business day on which a report required to be filed under this act

 

is received, make the report or all of the contents of the report

 

available without charge to the public on the internet at a single

 

website established and maintained by the secretary of state, and

 

not later than the third business day following the day on which

 

the report is received, make the report available for public

 

inspection and reproduction during regular business hours.

 

     (d) If the information provider so requests, redact

 

information that could identify the precise location of real or

 

personal property before making the contents of a report available

 

to the public as required under subdivision (c).

 

     (e) Promulgate rules and issue declaratory rulings to

 

implement this act under the administrative procedures act of 1969,

 

1969 PA 306, MCL 24.201 to 24.328. The rules may provide for the

 

redaction of information in a report before release to the public

 

if the information may jeopardize the personal safety of a person

 

identified in the report.

 

     (f) Conduct investigations as necessary to determine whether

 

there is reason to believe that a violation of this act occurred.

 

Investigations shall be conducted under the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     Sec. 9. (1) A citizen of this state may file a complaint with

 

the bureau of elections alleging a violation of this act. If it

 

receives a complaint, the bureau of elections shall investigate the

 

allegations as provided in section 8.

 

     (2) If the bureau of elections determines after an

 

investigation that there is reason to believe a violation of this

 

act occurred, the bureau of elections shall forward the results of

 

that investigation to the attorney general for enforcement of this

 

act, if the attorney general is not the subject of the complaint.

 

If the bureau of elections determines after an investigation that

 

there is reason to believe that the attorney general violated this

 

act, the bureau of elections shall forward the results of the

 

investigation to the prosecuting attorney for Ingham county for

 

enforcement of this act.

 

     (3) The attorney general or, if the attorney general is the

 

individual who is alleged to have violated this act, the

 

prosecuting attorney for Ingham county shall enforce this act

 

against an individual who violates this act.

 

     Sec. 10. (1) An individual who fails to file a report as

 

required under this act shall pay a late filing fee, in an amount

 

that does not exceed $1,000.00, determined as follows:

 

     (a) For each of the first 3 business days that the report

 

remains unfiled, $25.00.

 

     (b) For each of the next 7 business days after the first 3

 

business days that the report remains unfiled, $50.00.

 

     (c) For each business day after the first 10 business days

 

that the report remains unfiled, $100.00.

 

     (2) If an individual who is required to file a report under

 

this act knowingly files an incomplete or inaccurate report, the

 

individual is guilty of a misdemeanor punishable by imprisonment

 

for not more than 90 days or a fine of not more than $1,000.00, or

 

both.

 

     (3) If an individual who is required to file a report under

 

this act fails to file 2 reports and if both of the reports remain

 

unfiled for more than 30 days, the individual is guilty of a

 

misdemeanor punishable by imprisonment for not more than 90 days or

 

a fine of not more than $1,000.00, or both.

 

     (4) A default in the payment of a fee due or ordered under

 

this act, or an installment of the fee, may be remedied by any

 

means available under the revised judicature act of 1961, 1961 PA

 

236, MCL 600.101 to 600.9947.

 

     Enacting section 1. This act takes effect May 2, 2014.