Bill Text: MI HB5262 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Public employees and officers; ethics; certain financial disclosures; require certain candidates and state officials to file. Creates new act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-24 - Printed Bill Filed 01/20/2012 [HB5262 Detail]
Download: Michigan-2011-HB5262-Introduced.html
HOUSE BILL No. 5262
January 19, 2012, Introduced by Rep. Lindberg and referred to the Committee on Redistricting and Elections.
A bill to regulate political activity; to regulate certain
candidates and state officials; to require certain financial
statements and reports; to regulate acceptance of certain payments
and other items; to prescribe the powers and duties of certain
state departments and state and local officials and employees; and
to prescribe penalties and provide remedies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "state
official and candidate financial disclosure act".
Sec. 2. As used in this act:
(a) "Candidate" means that term as defined in section 3 of the
Michigan campaign finance act, 1976 PA 388, MCL 169.203.
(b) "Candidate for state office" means a candidate for any of
the following offices:
(i) Governor.
(ii) Lieutenant governor.
(iii) Attorney general.
(iv) Secretary of state.
(v) State senator.
(vi) State representative.
(vii) Head of a principal department as provided in section 3
of article V of the state constitution of 1963, if the office is
filled by election.
(viii) 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 election.
(ix) Judge of a court of record.
(x) 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.
(c) "Earned income" means salaries, tips, and other employee
compensation, and net earnings from self-employment for the taxable
year.
(d) "Immediate family" means the individual's child residing
in the individual's household, the spouse of the individual, or a
person claimed by the individual or the individual's spouse as a
dependent for federal income tax purposes.
(e) "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.
(f) "State official" means any of the following:
(i) The governor.
(ii) The lieutenant governor.
(iii) The attorney general.
(iv) The secretary of state.
(v) A state senator.
(vi) A state representative.
(vii) The head of each principal department as provided in
section 3 of article V of the state constitution of 1963.
(viii) 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.
(ix) The person appointed by a board or commission to be the
principal executive officer of a principal department as provided
in section 3 of article V of the state constitution of 1963.
(x) A judge of a court of record.
(xi) A regent of the university of Michigan, a member of the
board of trustees of Michigan state university, or a member of the
board of governors of Wayne state university.
Sec. 3. (1) If an individual was a state official at any time
during a calendar year, that individual shall file with the
secretary of state by May 1 of the following year a report that
meets the requirements of section 4 unless that individual is no
longer a state official.
(2) If an individual is a candidate for state office, that
individual shall file with the secretary of state a report that
meets the requirements of section 4. If the individual files a fee,
affidavit of incumbency, or nominating petition for the state
office, the report shall be filed before the expiration of 30 days
after 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. If the individual is nominated at a
political party caucus or convention, the report shall be filed
before the expiration of 30 days after the deadline for holding the
caucus or convention established by the Michigan election law, 1954
PA 116, MCL 168.1 to 168.992. This subsection does not apply to an
individual who has filed a report pursuant to subsection (1) in the
calendar year in which the 30-day period expires.
Sec. 4. (1) Subject to section 5 and except as provided in
section 6, the report required by section 3 shall include a
complete statement of all of the following:
(a) 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.
(b) The source, type, and amount or value of all other income
not reported under subdivision (a) 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.
(c) 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 $1,000.00 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.
(d) 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 a loan
secured by the personal residence of the individual filing the
report or by a personal motor vehicle, household furniture, or
appliance, if the loan does not exceed the purchase price of the
item that secures the liability.
(e) A brief description and value of a purchase, sale, or
exchange of real property, other than real property used solely as
a personal 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 that is equal to an amount of $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.
(f) Except as otherwise provided by this subdivision, the
identity of all positions held by the individual filing the report
during the preceding calendar year as an officer, director,
trustee, partner, proprietor, representative, employee, or
consultant of a corporation, partnership, or other business
enterprise; of a nonprofit organization; of a labor organization;
or of an educational or other institution. 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.
(g) A description, including the dates, parties, and terms, of
an agreement or arrangement by or with the individual filing the
report 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.
(2) Instead of the information required under subsection (1),
an individual required to file a report under section 3 may file a
copy of his or her federal form 1040 and related schedules filed
with the internal revenue service for the immediately preceding
calendar year.
Sec. 5. (1) An amount or value reported under section 4(1)(a),
(b), (c), or (e) shall be reported by category as follows:
(a) $1,000.00 or more but less than $2,500.00.
(b) $2,500.00 or more but less than $5,000.00.
(c) $5,000.00 or more but less than $15,000.00.
(d) $15,000.00 or more but less than $50,000.00.
(e) $50,000.00 or more but less than $100,000.00.
(f) $100,000.00 or more but less than $250,000.00.
(g) $250,000.00 or more but less than $500,000.00.
(h) $500,000.00 or more but less than $1,000,000.00.
(i) $1,000,000.00 or more.
(2) An amount or value reported under section 4(1)(d) shall be
reported by category as follows:
(a) $10,000.00 or more but less than $15,000.00.
(b) $15,000.00 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 $250,000.00.
(e) $250,000.00 or more but less than $500,000.00.
(f) $500,000.00 or more but less than $1,000,000.00.
(g) $1,000,000.00 or more.
Sec. 6. A report under section 4(1) may omit any of the
following:
(a) Information required to be reported 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 by a
relative within the third degree of consanguinity or a liability
that the individual filing the report owes to such a related
individual.
(c) An item otherwise required to be reported under section
4(1)(c), (d), or (e) about which all of the following are true:
(i) The item represents the financial interest and
responsibility solely of a member of the immediate family of the
individual filing the report of which that individual 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(1)(f).
Sec. 7. The secretary of state 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) Within 30 days after a report is filed under this act,
make the report available to the public as provided in the freedom
of information act, 1976 PA 442, MCL 15.231 to 15.246.
(d) Promulgate rules and issue declaratory rulings to
implement this act pursuant to the administrative procedures act of
1969, 1969 PA 306, MCL 24.201 to 24.328.
(e) Conduct investigations as may be necessary to determine if
there is reason to believe a violation of this act occurred.
Sec. 8. (1) A citizen of this state may file a complaint with
the secretary of state alleging a violation of this act. The
secretary of state, upon receipt of a complaint, shall investigate
the allegations as provided in section 7.
(2) If the secretary of state, upon investigation, determines
that there is reason to believe a violation of this act occurred,
the secretary of state 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. 10. (1) An individual who knowingly falsifies or
knowingly fails to file a report required by this act is liable for
a civil fine of not more than $5,000.00.
(2) A default in the payment of a civil fine ordered under
this act or an installment of the fine may be remedied by any means
authorized under the revised judicature act of 1961, 1961 PA 236,
MCL 600.101 to 600.9947.
