An act 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.
Mandates annual disclosure from Michigan public officers of comprehensive financial information, including earned and unearned income, liabilities over $10,000, and details of certain assets and real property valued at $1,000 or more. It also requires disclosure of employment positions, sources of income, future employment agreements, gifts, and travel payments received from lobbyists, as well as any involvement with companies that are registered vendors with the state. The act aims to enhance transparency, establishing a baseline for financial disclosures and encouraging further voluntary disclosures. It specifies the creation of a financial disclosure form, sets penalties for non-compliance, and outlines the responsibilities of various governmental officers and entities.
Co-sponsored by Sens.
Referred to the Committee on Oversight
Reported with substitute S-2
Referred to the Committee of the Whole
1. Amend page 4, line 3, after “employer” by inserting “or employers”.
2. Amend page 6, line 5, after “employer.” by inserting “As provided in section 8, there is an ongoing duty to report any agreement or arrangement entered into by a public official after the filing deadline described in section 5(2).”.
3. Amend page 6, following line 29, by inserting:
“Sec. 8. A public officer who is not reelected or seeking reelection to public office must report to the department within 10 days after entering into any agreement or arrangement described in section 7(k) the date, identity of the parties to, and the general terms of any agreement or arrangement with respect to future employment that the public officer is to begin within 1 year after the end of the public officer’s term of office.”.
Substitute S-2 concurred in by voice vote
Passed in the Senate 36 to 2 (details)
1. Amend page 3, following line 1, by inserting:
“(vii) Regents of the University of Michigan, members of the board of trustees of Michigan State University, and members of the board of governors of Wayne State University.”.
The amendment failed by voice vote
1. Amend page 6, following line 14, by inserting:
“(o) A description of all contracts entered into, or in which the public officer or public officer’s spouse has an interest, with this state.”.
The amendment failed by voice vote
1. Amend page 2, following line 3, by inserting:
“(c) “Dependent” means an individual claimed by the public officer or the public officer’s spouse as dependent for federal income tax purposes.” and relettering the remaining subdivisions.
2. Amend page 6, following line 14, by inserting:
“(o) The following information regarding each dependent. For purposes of this subdivision, the public officer may refer to each dependent using the dependent’s first and last initial:
(i) The number of dependents that the public officer and the spouse of the public officer claim for federal income tax purposes.
(ii) The principal activity of each employer of each dependent, if the dependent’s total earned income from the employer equals $50,000.00 or more during the reporting period.
(iii) A list of any real property in which the dependent holds an ownership or other financial interest. For purposes of this subparagraph, the dependent is required to include a real property asset in the report only if that real property has a fair market value of $50,000.00 or more during the reporting period. A public officer filing a report may exclude the street number of a parcel of real property held by the dependent under this subparagraph.
(iv) Except as otherwise provided in this subparagraph, a list of each asset and sources of unearned income, excluding a business asset, held for investment or production of income by each dependent with a fair market value of $50,000.00 or more during the reporting period. The fair market value for the purpose of listing each asset, excluding a business asset, held for investment or production income under this subparagraph must be adjusted for inflation every 4 years using the Detroit Consumer Price Index.
(v) Except as otherwise provided in this subparagraph, a list of any stocks, bonds, or other forms of securities held by each dependent, if the security has a fair market value of $50,000.00 or more. The fair market value for the purpose of listing stocks, bonds, or other forms of securities under this subparagraph must be adjusted for inflation every 4 years using the Detroit Consumer Price Index. For purposes of this act, the dependent is not required to disclose a stock in a widely held investment fund, including, but not limited to, a mutual fund, regulated investment company, pension or deferred compensation plan, or other investment fund if the fund is publicly traded or the assets of the fund are widely diversified.
(vi) A description of any interest each dependent had during the reporting period in a legal entity that conducts business in this state, including the name of the legal entity, if the interest has a book value of $50,000.00 or more.”.
The amendment failed by voice vote
1. Amend page 6, line 10, after “law” by inserting a comma and “or any gift received from an individual, partnership, corporation, association, or other legal entity that has a value of $1,000.00 or more during the reporting period”.
2. Amend page 6, line 12, after “law” by inserting a comma and “or any travel payments received or made on behalf of the public officer from an individual, partnership, corporation, association, or other legal entity with a value of $1,000.00 or more during the reporting period”.
The amendment failed by voice vote
1. Amend page 4, line 2, after “spouse,” by striking out “and”.
2. Amend page 4, line 3, after “spouse” by inserting a comma and “and a description of any interest the public officer’s spouse has in a legal entity that conducts business in this state and the name of that legal entity”.
The amendment failed by voice vote
1. Amend page 6, following line 14, by inserting:
“(o) Except as otherwise provided in this subdivision, a list of each asset and sources of unearned income, excluding a business asset, held for investment or production of income by the spouse of the public officer with a fair market value of $50,000.00 or more during the reporting period. The fair market value for the purpose of listing each asset, excluding a business asset, held for investment or production income under this subdivision must be adjusted for inflation every 4 years using the Detroit Consumer Price Index.
(p) Except as otherwise provided in this subdivision, a list of any stocks, bonds, or other forms of securities held by the public officer’s spouse, if the security has a fair market value of $50,000.00 or more. The fair market value for the purpose of listing stocks, bonds, or other forms of securities under this subdivision must be adjusted for inflation every 4 years using the Detroit Consumer Price Index. For purposes of this subdivision, the spouse of a public official is not required to disclose a stock in a widely held investment fund, including, but not limited to, a mutual fund, regulated investment company, pension or deferred compensation plan, or other investment fund, if the fund is publicly traded or the assets of the fund are widely diversified.
(q) A list of any real property in which the spouse of the public officer holds an ownership or other financial interest. For purposes of this subdivision, the spouse of the public officer is required to include a real property asset in the report only if that real property has a fair market value of $50,000.00 or more during the reporting period. A public officer filing a report may exclude the street number of a parcel of real property held by the spouse of the public official under this subdivision.”.
The amendment failed by voice vote
1. Amend page 3, following line 1, by inserting:
“(vii) Members of the state board of education.”.
The amendment failed by voice vote
1. Amend page 15, line 18, by striking out all of enacting section 1 and inserting:
“Enacting section 1. This act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law:
(a) Senate Bill No. 374.
(b) Senate Bill No. 614.”.
The amendment failed by voice vote
1. Amend page 15, line 11, after “than” by striking out “$2,000.00” and inserting “$10,000.00”.
The amendment failed by voice vote
1. Amend page 4, line 1, after “(c)” by striking out “The” and inserting “Beginning January 1, 2028, the”.
2. Amend page 4, line 4, after “(d)” by striking out “Whether” and inserting “Beginning January 1, 2028, whether”.
3. Amend page 5, line 6, after “or” by inserting a comma and “beginning January 1, 2028,”.
The amendment failed by voice vote
1. Amend page 6, line 9, after “gifts” by striking out the balance of the line through “law.” on line 10 and inserting “and expenditures for food and beverages paid for or reimbursed by a lobbyist or lobbyist agent.”.
2. Amend page 6, line 11, after “travel” by striking out the balance of the line through “law.” on line 12 and inserting “and expenses paid for or reimbursed by a lobbyist or lobbyist agent.”.
The amendment failed by voice vote
1. Amend page 2, following line 3, by inserting:
“(c) “Dependent” means an individual claimed by the public officer or the public officer’s spouse as a dependent for federal income tax purposes.” and relettering the remaining subdivisions.
2. Amend page 6, following line 14, by inserting:
“(o) All of the following information regarding the public officer’s spouse:
(i) The principal activity of each employer of the spouse of the public officer, if the spouse’s total earned income from the employer equals $50,000.00 or more during that reporting period.
(ii) The source and type of all income, including earned and unearned income received by the spouse of the public officer. For purposes of this subparagraph, the spouse of the public officer is required to include the source of income described under this subparagraph only if the total income from that source equals $50,000.00 or more during that reporting period.
(iii) A description of each real property or property that the spouse of the public officer has an ownership interest in, including, but not limited to, commercial, industrial, or agricultural buildings. For purposes of this subparagraph, the spouse of the public officer is required to include a real property or property described under this subparagraph in the report only if the real property or property had a fair market value of $50,000.00 or more at any time the real property was held during that reporting period. The street number of a parcel of real property listed under this subparagraph may be excluded from the report.
(iv) A description of any stocks, bonds, commodities, futures, shares in mutual funds, or other forms of securities held by the spouse of the public officer. For purposes of this subparagraph, the spouse of the public officer is required to include a security described under this subparagraph in the report only if the security has a total aggregate fair market value of $50,000.00 or more on a specified day that is within the final month of the calendar year covered in the reporting period.
(v) A description of any interest the spouse of the public officer had during the reporting period in a legal entity that conducts business in this state, if the interest has a book value of $50,000.00 or more.
(p) All of the following information regarding the public officer’s dependents:
(i) The number of dependents that the public officer and the spouse of the public officer claim for federal income tax purposes.
(ii) The principal activity of each employer of each dependent of the public officer, if the dependent’s total earned income from the employer equals $50,000.00 or more during the reporting period.
(iii) The source and type of all income, including earned and unearned income received by each dependent of the public officer, if the source of income described under this subparagraph equals $50,000.00 or more during that reporting period.
(iv) A description of each real property or property that each dependent of the public officer has an ownership interest in, including, but not limited to, commercial, industrial, or agricultural buildings. For purposes of this subparagraph, the dependent is required to include a real property or property described under this subsection only if the real property or property had a fair market value of $50,000.00 or more at any time that the real property or property was held during that reporting period. The street number of a parcel of real property or property listed under this subparagraph may be excluded from the report.
(v) A description of any stocks, bonds, commodities, futures, shares in mutual funds, or other forms of securities held by each dependent of the public officer. For purposes of this subparagraph, each dependent of the public officer is required to include a security described under this subparagraph in the report only if the security has a total aggregate fair market value of $50,000.00 or more on a specified day that is within the final month of the calendar year covered in the reporting period.
(vi) A description of any interest each dependent of the public officer had during the reporting period in a legal entity that conducts business in this state, if the interest has a book value of $50,000.00 or more.”.
The amendment failed by voice vote
1. Amend page 4, line 22, after the first “asset” by striking out the comma and “excluding a business asset,”.
2. Amend page 4, line 26, after the first “asset” by striking out the comma and “excluding a business asset,”.
The amendment failed by voice vote
1. Amend page 15, following line 17, by inserting:
“Sec. 16. A member of the legislature shall issue a statement of understanding during each reporting period. A statement of understanding issued in accordance with this section must include a statement that the member’s contribution may be used against a candidate for the office of state representative or state senator who is in the same party as the contributing member, if the contributing member transferred money from the leadership fund to the candidate during the reporting period.”.
The amendment failed by voice vote
1. Amend page 15, following line 17, by inserting:
“Sec. 16. At the beginning of each legislative term, the members of the house of representatives shall vote on the house rules by a record roll call vote.”.
The amendment failed by voice vote
1 Amend page 15, following line 17, by inserting:
“Sec. 16. A member of the legislature shall not threaten or expose the private matters of another member who did not vote the same way on a bill as that member.”.
The amendment failed by voice vote
1. Amend page 15, following line 17, by inserting:
“Sec. 16. A member of the legislature who votes in support of a bill that gives tax breaks to a limited number of individuals and not the general public shall disclose the reasons and motives for the vote.”.
The amendment failed by voice vote
1. Amend page 15, following line 17, by inserting:
“Sec. 16. If a member of the legislature votes in a certain way on a bill that the member would not have otherwise voted in order to secure the support of other members of the legislature on a bill sponsored by that member or for a position in leadership or a committee, that member must disclose the reason for that vote.”.
The amendment failed by voice vote
1. Amend page 6, following line 14, by inserting:
“(o) A list of all travels that are paid for by a person that is not a lobbyist or lobbyist agent because of the public officer’s position as a public officer during the reporting period. As used in this subdivision, “person” means an individual, a partnership, a corporation, a limited liability company, an association, an organization, including a nonprofit organization, or other legal entity.”.
The amendment failed by voice vote
Substitute H-3 offered
by
The substitute passed by voice vote
1. Amend page 4, line 20, after “period” by striking out the balance of the subdivision and inserting “and indicate whether the amount received from each source is less than $1,000,00, between $1,000.00 and $2,500.00, $2,500.00 and $5,000.00, $5,000.00 and $15,000.00, $15,000.00 and $50,000.00, $50,000.00 and $100,000.00, or $100,000.00 and $1,000,000.00, or $1,000,000.00 or more.”.
2. Amend page 4, line 23, after “income” by striking out “with a fair market value of $1,000.00 or more during the reporting period”.
3. Amend page 4, line 24, after “income” by striking out “that exceeds $200.00”.
4. Amend page 4, line 29, after “$1,000.00.” by inserting “Both of the following apply under this subdivision:
(i) For purposes of listing each asset, excluding a business asset, held for investment or production of income, the public officer shall indicate whether the fair market value of each asset is less than $1,000,00, between $1,000.00 and $2,500.00, $2,500.00 and $5,000.00, $5,000.00 and $15,000.00, $15,000.00 and $50,000.00, $50,000.00 and $100,000.00, or $100,000.00 and $1,000,000.00, or $1,000,000.00 or more.
(ii) For purposes of listing each source of unearned income, the public officer shall indicate whether the amount received from each source of unearned income is less than $1,000,00, between $1,000.00 and $2,500.00, $2,500.00 and $5,000.00, $5,000.00 and $15,000.00, $15,000.00 and $50,000.00, $50,000.00 and $100,000.00, or $100,000.00 and $1,000,000.00, or $1,000,000.00 or more.”.
The amendment failed by voice vote
1. Amend page 16, line 6, by striking out enacting section 1 and inserting:
“Enacting section 1. This act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law:
(a)Senate Bill No. 614
(b) House Bill No. 4264
(c) House Bill No. 4265
(d) House Bill No. 4266
(e) House Bill No. 4267.”
The amendment failed by voice vote
1. Amend page 4, line 1, after “spouse” by inserting “and each immediate family member”.
2. Amend page 4, line 6, after “period.” By inserting “As used in this subsection, “immediate family member” means the public officer’s parent, stepparent, sibling, stepsibling, child, or stepchild.”.
The amendment failed by voice vote
Passed in the House 59 to 49 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
1. Amend page 7, following line 2, by inserting:
“(p) The name, mailing address, and employer identification number of a political organization organized under section 527 of the internal revenue code of 1986, 26 USC 527, or an organization described and exempt from taxation under section 501(c)(4) of the internal revenue code of 1986, 26 USC 501, in which the public officer or the public officer’s spouse is listed as an officer or director.”.
The amendment failed by voice vote
Substitute H-3 concurred in 36 to 2 (details)
