Bill Text: MI HB4644 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Public employees and officers: ethics; financial disclosure report; require for the office of state representative to file. Creates new act.
Spectrum: Moderate Partisan Bill (Democrat 49-13)
Status: (Introduced - Dead) 2019-09-05 - Referred To Committee On Ways And Means, With Substitute (h-6) [HB4644 Detail]
Download: Michigan-2019-HB4644-Introduced.html
HOUSE BILL No. 4644
May 21, 2019, Introduced by Reps. Calley, Cherry, Wittenberg, Hammoud, Tate, Ellison, Hood, Rabhi, Pohutsky, Kennedy, Sowerby, Yancey, Stone, Hope, Brann, Filler, Alexander, Garza, Coleman, Camilleri, Manoogian, Brenda Carter, Hertel, Elder, Haadsma, Sneller, Hoadley, Gay-Dagnogo, Sabo, Witwer, Anthony, Brixie, Huizenga, Afendoulis, LaGrand, Albert, Byrd, Chirkun, Cynthia Johnson, Shannon, Cambensy, Pagan, Kuppa, Liberati, Tyrone Carter, Bolden, Warren, Neeley, Jones, Robinson, Lasinski, Guerra, Koleszar, Meerman, Marino, Schroeder, Kahle, Mueller, Greig, Garrett, Peterson and Yaroch and referred to the Committee on Elections and Ethics.
A bill to regulate political activity; to require candidates
for the office of state representative to file financial statements
and reports; to prescribe the powers and duties of certain state
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
"candidate for state representative 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 office" means a candidate for the office of
state representative.
(d) "Earned income" means salaries, tips, or other
compensation, and net earnings from self-employment for the taxable
year.
(e) "Immediate family of an individual" means a dependent
child or spouse of that individual or a person 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 9834.
(g) "Principal residence" means that term as defined under
section 7dd of the general property tax act, 1893 PA 206, MCL
211.7dd.
Sec. 3. If an individual is a candidate for state 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 later of May 1 or 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.
Sec. 4. (1) Except as provided in section 5, a report required
under section 3 must include a complete statement of all of the
following:
(a) The full name, mailing address and occupation of the
individual filing the report.
(b) The name of each member of the immediate family of the
individual filing the report.
(c) The name, address, and principal activity of each employer
of the individual and of each member of the immediate family of the
individual filing the report during the calendar year covered by
the report.
(d) Both of the following, as applicable:
(i) The source and type of earned income received during the
preceding calendar year by the individual filing the report if the
total earned income from that source equals $5,000.00 or more
during that calendar year.
(ii) The source and type of earned income received during the
preceding calendar year by each member of the immediate family of
the individual filing the report if the total earned income from
that source equals $5,000.00 or more during that calendar year.
(e) The source and type 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 $5,000.00 or more during that calendar year.
(f) Excluding a primary residence, the address of each parcel
of real property held during the preceding calendar year by the
individual filing the report or a member of the immediate family of
that individual if the real property had a fair market value of
$50,000.00 or more at any time the real property was held during
the preceding calendar year. An individual filing a report may
exclude the street number of a parcel of real property listed under
this subdivision.
(g) A description of any stocks, bonds, commodities, futures,
shares in mutual funds, or other forms of securities held by the
individual filing the report or a member of the immediate family of
that individual during the preceding calendar year, if the total
aggregate value of a security had a fair market value of $10,000.00
or more at any time the security was held during the preceding
calendar year.
(h) A description of any interest in 1 of the following types
of assets, if the interest in the asset has a value of $10,000.00
or more at any time the asset was held during the preceding
calendar year:
(i) A qualified or nonqualified annuity.
(ii) A benefit under a qualified or nonqualified plan of
deferred compensation.
(iii) An account in, or benefit payable under, any pension,
profit-sharing, stock bonus, or other qualified retirement plan.
(iv) An individual retirement account or trust.
(v) A benefit under a plan or arrangement that is established
under section 401, 403, 408, 408A, or 457 of the internal revenue
code of 1986, 26 USC 401, 403, 408, 408A, and 457, or a similar
provision of the internal revenue code of 1986, 26 USC 1 to 9834.
(i) The identity of all compensated positions held by the
individual filing the report or a member of the immediate family of
that individual 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, if
the total compensation received from a position equals $1,000.00 or
more during that calendar year. A position reported under this
subdivision must include the title of the position, the name of the
entity within which the position exists, and the principal activity
of the entity.
(j) If the individual filing the report or a member of the
immediate family of that individual was required during the
previous calendar year to register as a lobbyist or lobbyist agent
under section 7 of 1978 PA 472, MCL 4.417, the name, address, and
principal activity of all persons who gave compensation to or
reimbursed the individual or immediate family member for lobbying.
As used in this subdivision, "immediate family" includes the parent
of an individual and the spouse of a child of an individual.
(k) A description of any interest the individual filing the
report or a member of the immediate family of that individual has
in a legal entity that conducts business in this state, if the
interest has a book value of $10,000.00 or more, unless the entity
has shares that are listed or traded over the counter or on an
organized exchange.
(2) Information an individual is required to report under this
section includes information with respect to the holdings of and
the income from a trust, blind 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. As used in this
subsection:
(a) "Beneficial interest" includes, but is not limited to, the
interest in a trust of a qualified trust beneficiary or a trust
beneficiary as those terms are defined in section 7103 of the
estates and protected individuals code, 1998 PA 386, MCL 700.7103.
(b) "Blind trust" means a qualified blind trust as defined in
5 CFR 2634.403.
Sec. 5. An individual filing a report under section 3 may omit
any of the following:
(a) Information an individual is required to report under the
Michigan campaign finance act, 1976 PA 388, MCL 169.201 to 169.282.
(b) An item otherwise required to be reported under section
4(1)(f) or (g) 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.
(c) 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.
(d) 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.
(e) 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.
(f) Benefits received under the social security act, chapter
531, 49 Stat 620.
Sec. 6. 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 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) 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.
(e) Conduct investigations as necessary to determine whether
there is reason to believe that a violation of this act occurred.
The bureau of elections shall conduct investigations pursuant to
the administrative procedures act of 1969, 1969 PA 306, MCL 24.201
to 24.328.
Sec. 7. (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 pursuant to section 6.
(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. However, if the attorney general is the subject of the
complaint and 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 instead
forward the results of the investigation to the prosecuting
attorney for Ingham County for enforcement of this act.
(3) The attorney general shall enforce this act against an
individual who violates this act.
Sec. 8. (1) An individual who fails to file a report as
required under this act shall pay a late filing fee of not more
than $5,000.00, determined as follows:
(a) Twenty-five dollars for each of the first 10 business days
that the report remains unfiled.
(b) Fifty dollars for each business day after the first 10
business days that the report remains unfiled.
(2) If an individual required to file a report under this act
knowingly files an incomplete or inaccurate report, the individual
is guilty of a misdemeanor punishable by a fine of not more than
$10,000.00.
(3) A default in the payment of a fee or civil fine due or
ordered under this act, or an installment of the fee or fine, 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 1, 2020.
