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.