HOUSE BILL NO. 4269

March 14, 2023, Introduced by Reps. Harris, Kuhn, Thompson, Bollin, Greene, Rigas, Kunse, Bierlein, Meerman, Tisdel, Schuette, Bezotte, Borton, Steele, St. Germaine and Beson and referred to the Committee on Ethics and Oversight.

A bill to require certain public officers to file annual financial disclosure reports; to create a financial disclosure form; to prescribe penalties and civil sanctions; and to provide for the powers and duties of certain state and local governmental officers and entities.

the people of the state of michigan enact:


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Sec. 1. This act may be cited as the "public officers financial disclosure report act".

Sec. 3. As used in this act:

(a) "Department" means the department of state.


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(b) "Earned income" means all taxable income and wages from an employer or self-employment. Earned income does not include any of the following:

(i) Pensions and annuities.

(ii) Welfare benefits.

(iii) Unemployment benefits.

(iv) Worker's compensation.

(v) Social Security.

(c) "Form" means the financial disclosure form described in section 7.

(d) "Gift" means that term as defined in section 4 of 1978 PA 472, MCL 4.414.

(e) "Lobbyist" means that term as defined in section 5 of 1978 PA 472, MCL 4.415.

(f) "Lobbyist agent" means that term as defined in section 5 of 1978 PA 472, MCL 4.415.

(g) "Public officer" means all of the following:

(i) Each member of the legislature.

(ii) The attorney general.

(iii) The governor.

(iv) The lieutenant governor.

(v) The secretary of state.

(h) "Report" means the financial disclosure form described and required under section 7 and section 10 of article IV of the state constitution of 1963.

(i) "Reporting period" means the preceding calendar year.

(j) "Unearned income" means investment-type income, including taxable interest, ordinary dividends, capital gains, unemployment compensation, taxable Social Security benefits, pensions,


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annuities, cancellation of debt, and distributions of unearned income from a trust. Unearned income does not include the total cash value of any interest in a qualified trust unless both of the following apply:

(i) The trust interest was executed before July 24, 1995.

(ii) The trust precludes the beneficiary from receiving information on the total cash value of any interest in the qualified trust.

Sec. 5. (1) A public officer shall electronically file an annual financial disclosure report with the department.

(2) The report required under subsection (1) must first be filed by April 15, 2024, and by April 15 of each year thereafter.

Sec. 7. The report described under section 5 must be filed in a form that substantially conforms to the following form:

FINANCIAL DISCLOSURE FORM

INSTRUCTIONS:

A. For the purposes of determining the current value of an interest in real property or an interest in a real estate partnership to be reported in this form that is not ascertainable without an appraisal, an individual may use either the date of purchase and the purchase price of the interest in the real property or the assessed value of the real property for tax purposes, adjusted to reflect the market value of the property used for the assessment if the assessed value is computed at less than 100% of the market value. The individual must include in this form a description of the method used to determine the assessed value.

B. If the current value of any other item required to be reported is not ascertainable without an appraisal, the individual may do either of the following:


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(i) Report the book value of a corporation whose stock is not publicly traded, the net worth of a business partnership, the equity value of an individually owned business, or, with respect to other holdings, any recognized indication of value. The individual must include in this form a description of the method used in determining the book value.

(ii) Use the assessed value of the item for tax purposes, adjusted to reflect the market value of the item used for the assessment if the assessed value is computed at less than 100% of the market value. The individual must include in this form a description of the method used in determining the assessed value.

Please provide the following information. If the answer to any of the following questions is "none," please state so. Attach additional pages, if necessary, indicating the section that is being continued.

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Last Name

First Name

Initial

__________________________________________________________________

Title

Department or Agency

__________________________________________________________________

Work Address

Work Telephone No.

Email Address

1. Assets and unearned income. Describe: (a) each asset held for investment or production of income with a fair market value received during the reporting period, and (b) any other reportable assets in unearned income during the reporting period. Do not include the assets and unearned income of a spouse or dependent child.

Asset Name

Value of Asset

Type of Income

Amount of Income


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Not more than $1,000.00

 

 

 

Greater than $1,000.00 but not more than $2,500.00

 

 

 

Greater than $5,000.00 but not more than $15,000.00

 

 

 

Greater than $15,000.00 but not more than $50,000.00

 

 

 

Greater than $50,000.00 but not more than $100,000.00

 

 

 

Greater than $100,000.00 but not more than $1,000,000.00

 

 

 

Greater than $1,000,000.00

Instruction for amount of assets or income: Indicate the category of assets or income by checking the appropriate box indicating the value of the asset and the amount of income received from that asset.


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2. Sources of earned income. List the source, type, and amount of earned income from any source (other than the current employment by this state) during the reporting period. Include: source, date, and amount of honoraria from any source received during the reporting period and the source, date, and amount of payments made to charitable organizations in lieu of honoraria. Do not include the earned income of a spouse or dependent child.

Source

Type

Amount

Date

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____________________

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_____________

____________________

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_______________

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____________________

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____________________

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3. Description of liabilities. List all liabilities owed by you to a creditor at any time during the reporting period. Do not include the liabilities of a spouse or dependent child. Report a revolving charge account only if the balance at the close of the reporting period exceeds $10,000.00.

Creditor

Date Liability Incurred (MO/YR)

Type of Liability

Amount of Liability

 

 

 

Not more than $15,000.00

 

 

 

Greater than $15,000.00 but not more than $50,000.00

 

 

 

Greater than $50,000.00 but not more than $100,000.00


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Greater than $100,000.00 but not more than $250,000.00

 

 

 

Greater than $250,000.00 but not more than $500,000.00

 

 

 

Greater than $500,000.00 but not more than $1,000,000.00

 

 

 

Greater than $1,000,000.00

Instruction for amount of liability: Indicate the category of liability by checking the appropriate box in the amount of liability.

4. Current positions. List all positions currently held as an officer, director, trustee, partner, proprietor, representative, employee, or consultant of any organization, corporation, firm, partnership, or other business enterprise, nonprofit organization, labor organization, or educational or other institution other than this state. Exclude: positions held in any religious, social, fraternal, or political entity, or positions that are solely of an honorary nature.

Position

Name of Organization

_________________________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________________________________________________________________


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5. Agreements or arrangements. Identify the date, parties to, and general terms of any agreements or arrangements with respect to future employment, a leave of absence while serving as a public officer, continuation or deferral of payments by a former or current employer other than this state, or continuing participation in an employee welfare or benefit plan maintained by a former employer.

Date

Parties to Agreement or Arrangement

Terms of Agreement or Arrangement

______________________________________________________________________________________________________________

______________________________________________________________________________________________________________

_____________________________________________________________________________________________________________

6. Gifts. List all gifts received and required to be reported by a lobbyist or lobbyist agent under state law.

Recipient of Gift

Nature of Gift

Donor of Gift

Relationship to Donor

Date Received

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

7. Travel payments and reimbursements. List all travel payments received and required to be reported by a lobbyist or lobbyist agent under state law.

Recipient of Travel Payments

Payor of Travel Payments

Relationship to Payor

Purpose of Travel

Amount Received

Date Received


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_______________________________________________________

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8. Payments to charity in lieu of honoraria. Describe each payment made by a lobbyist or lobbyist agent to a charity in lieu of honoraria.

Name of Lobbyist or Lobbyist Agent

Amount Paid

Purpose of Payment

Name of Organization

Date of Payment

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

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I certify that the statements I have made on this financial disclosure form and all attached pages are true, complete, and correct to the best of my knowledge and belief.

Signed: ________________________

Date Signed: ___________________

Sec. 9. (1) A form filed pursuant to this act must be signed and dated by the public officer.

(2) An individual who knowingly and willfully falsifies or fails to file a report is guilty of a misdemeanor punishable by a fine of not more than $1,000.00 or imprisonment for not more than 90 days, or both.