Bill Text: MI HB5663 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Public employees and officers; state; financial disclosure report; require for unclassified state employees. Creates new act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-06-12 - Printed Bill Filed 06/12/2014 [HB5663 Detail]
Download: Michigan-2013-HB5663-Introduced.html
HOUSE BILL No. 5663
June 11, 2014, Introduced by Rep. Irwin and referred to the Committee on Government Operations.
A bill to require annual financial disclosures from certain
state employees; to prescribe the powers and duties of certain
state 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
"unclassified employee financial disclosure act".
Sec. 2. As used in this act:
(a) "Earned income" means salaries, tips, other compensation,
and net earnings from self-employment for the tax year.
(b) "Immediate family" includes a dependent child of the
individual, a spouse of the individual, or another individual
claimed by the individual or the individual's spouse as a dependent
for federal income tax purposes.
(c) "Income" means money or anything 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.
(d) "Principal residence" means that term as defined under
section 7dd of the general property tax act, 1893 PA 206, MCL
211.7dd.
(e) "Unclassified employee" means an individual who is
employed in a position in the executive branch of state government
that is excluded or exempt from the state classified service.
Sec. 3. (1) An individual who is hired as an unclassified
state employee after the effective date of this act shall file with
the legislature a report that meets the requirements of section 4
within 30 days after the date of hire.
(2) An individual who is an unclassified state employee at any
time during a calendar year shall file with the legislature by May
1 of the following year a report that meets the requirements of
section 4.
Sec. 4. (1) Subject to section 5 and except as provided in
section 6, a report under section 3 shall include a complete
statement of all of the following:
(a) The full name, address, occupation, and position held 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 preceding calendar year.
(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, type, and amount or value 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 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 individual's interest in
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, 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 includes 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.
(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(1)(d),
(e), 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(1)(f) or (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 3 may omit any of the
following:
(a) 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.
(b) An item otherwise required to be reported under section
4(1)(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.
(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 3 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(1)(i).
(f) Benefits received under the social security act, chapter
531, 49 Stat. 620.
(g) Information concerning assets in or income from a Michigan
education trust contract.
Sec. 7. The secretary of the senate and the clerk of the house
of representatives 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) Subject to subdivision (d), 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 legislature.
(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) Assist the legislature in conducting investigations as
necessary to determine whether there is reason to believe that a
violation of this act occurred.
Sec. 8. (1) A citizen of this state may file a complaint with
the secretary of the senate or the clerk of the house of
representatives alleging a violation of this act. If it receives a
complaint, the legislature shall investigate the allegations.
(2) If the legislature determines after an investigation that
there is reason to believe a violation of this act occurred, the
legislature shall forward the results of that investigation to the
attorney general for enforcement of this act.
(3) The attorney general shall enforce this act against an
individual who violates this act.
Sec. 9. (1) 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.
(2) 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.
