HOUSE BILL No. 6012

 

April 27, 2006, Introduced by Reps. Ward, Stahl, Stakoe, Vander Veen, Taub, Bieda, Mortimer, Elsenheimer, Ball, Moore, Gaffney, Brandenburg, Casperson, Marleau, Gosselin, Farhat, Kahn, Walker, Caul, Wenke and Van Regenmorter and referred to the Committee on House Oversight, Elections, and Ethics.

 

     A bill to prescribe standards of conduct for legislators and

 

certain other persons; to require reports; to prescribe the powers

 

and duties of the secretary of state and certain other persons; to

 

provide protection for persons reporting violations of this act;

 

and to prescribe penalties and provide remedies.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

                    CHAPTER 1 - GENERAL PROVISIONS

 

     Sec. 101. This act shall be known and may be cited as the

 

"legislative ethics act".

 

     Sec. 103. For the purposes of this act, the words and phrases

 

defined in sections 105 to 109 have the meanings ascribed to them

 

in those sections.

 

     Sec. 105. (1) "Administrative action" means conduct related to


 

the development, drafting, consideration, promulgation, defeat,

 

application, or interpretation of a rule, regulation, or other

 

action in a regulatory proceeding or a proceeding involving a

 

license, permit, franchise, or entitlement for use.

 

     (2) "Anything of value" means a tangible or intangible item

 

that the recipient might find sufficiently desirable to exchange

 

for some action. Anything of value includes, but is not limited to,

 

any of the following:

 

     (a) Money.

 

     (b) Products or merchandise.

 

     (c) A work of art or collectible.

 

     (d) Stocks, bonds, notes, or options.

 

     (e) An interest in real property.

 

     (f) A contract or a promise of a future interest in a

 

contract.

 

     (g) An interest or a promise of a future interest in a

 

business.

 

     (h) A meal, beverage, or lodging.

 

     (i) Transportation.

 

     (j) A service, including loan of the services of an employee.

 

     (k) A loan, a loan guarantee, or the co-signing of a loan.

 

     (l) Forgiveness of a debt.

 

     (m) A discount or rebate not extended to the public in

 

general.

 

     (n) Preferential treatment.

 

     (o) A ticket or admission.

 

     (p) Free or discounted use of an office.


 

     (q) A loan of office equipment.

 

     (r) Radio or television time.

 

     (s) A promise or offer of present or future employment.

 

     (t) Use of an automobile, boat, or apartment or other

 

recreational or lodging facility.

 

     (u) Intangible rights such as a cause of action.

 

     (v) A license, patent, or copyright or interest in a license,

 

patent, or copyright.

 

     (w) Any other item, tangible or intangible, that has economic

 

value and that could reasonably be considered to be an advantage or

 

of worth, use, or service to the person upon whom it is conferred.

 

     (3) "Anything of value" does not include any of the following:

 

     (a) An unsolicited token or award with a value of less than

 

$150.00.

 

     (b) An unsolicited advertising item with a value of less than

 

$50.00.

 

     (c) An unsolicited publication with a market value of less

 

than $50.00 on an annual basis.

 

     (d) A discount afforded to the general public or a specified

 

group or occupation under normal business conditions except that

 

the discount may not be based on the fact of legislative service

 

unless it is a discount program approved by the governmental ethics

 

board.

 

     (e) A contribution to a bona fide charity, made in response to

 

a direct solicitation from a legislator or a person acting at his

 

or her direction.

 

     (4) "Close economic association" means a financial


 

relationship between a legislator and another person that creates

 

any of the following economic interests in the legislator:

 

     (a) A relationship involving compensation as an employee,

 

agent, representative, counselor, adviser, or consultant, including

 

professional services between a lawyer and client or a financial

 

planner and client.

 

     (b) A financial interest resulting from an investment,

 

business enterprise, or interest in real property as a partner,

 

investor, associate, or major stockholder.

 

     (c) A relationship of a landlord and tenant or co-tenants

 

sharing housing expenses.

 

     (d) A relationship involving a debt, loan, or loan guarantee.

 

     (e) Any other relationship in which the legislator has a

 

substantial economic involvement.

 

     (5) "Close economic association conflict of interest" means a

 

close economic association between a legislator and a person that

 

is likely to be substantially affected by an official action or

 

decision of a legislator that conflicts with the public duty or

 

obligation of the legislator to exercise objective independent

 

judgment or that creates the appearance that the person may have

 

undue access to confidential information or may otherwise receive

 

favored treatment regarding a public action.

 

     (6) "Close personal relationship" means a special relationship

 

between a legislator and another person that creates strong bonds

 

of loyalty, friendship, or love, or all of these feelings. Close

 

personal relationship includes, but is not limited to, the

 

relationship with an immediate family member, a long-term personal


 

friend, a former business associate, or a person with whom the

 

legislator has a significant and continuous romantic relationship.

 

     (7) "Close personal relationship conflict of interest" means a

 

close personal relationship with a person who is likely to be

 

substantially affected by an official action or a decision of a

 

legislator that conflicts with the public duty or obligation of the

 

legislator to exercise objective independent judgment or that

 

creates the appearance that the person has undue access to

 

confidential information or may otherwise receive favored treatment

 

regarding a public action.

 

     (8) "Confidential information" means information made

 

confidential by law or information that is conveyed or accepted

 

with the understanding that the information will only be used for

 

official purposes.

 

     (9) "Employer" means a person that has provided compensation

 

to a legislator arising out of an employment relationship.

 

     Sec. 107. (1) "Financial conflict of interest" means a

 

circumstance in which a legislator or a person with whom he or she

 

has a close personal relationship has a substantial financial

 

interest that may be materially affected by an official action or a

 

decision that the legislator may make. The interest must be so

 

substantial and the potential effect on that interest must be so

 

material that a reasonable, objective person is likely to believe

 

that the ability of the legislator with the financial interest to

 

make an objective, fair, and impartial professional judgment will

 

be impeded by self-interest. A financial conflict of interest does

 

not exist if the economic effect that an official action or a


 

decision will have on a legislator's private financial interests is

 

no greater than the effect on a substantial class of persons to

 

which he or she belongs as a member of a profession, occupation,

 

industry, or region.

 

     (2) "Governmental ethics board" means the ethics board created

 

under the governmental ethics board act.

 

     (3) "Honorarium" means anything of value that a legislator

 

receives in recognition of, or in consideration for, an appearance,

 

speech, presentation, or published work by the legislator that is

 

not primarily related to a current or former occupation of the

 

legislator other than the holding of legislative office. Honorarium

 

does not include a nonmonetary token of appreciation with a value

 

of $20.00 or less. Honorarium does not include reasonable royalties

 

or other reasonable payment paid to a legislator by a publisher for

 

a work personally written by the legislator exceeding 10 pages that

 

is placed in general circulation unless and to the extent the

 

intent of the payment by the publisher or purchaser of the

 

published work is directly or indirectly to provide consideration

 

to the legislator.

 

     (4) "Immediate family member" means a spouse, parent,

 

grandparent, child, including a stepchild or an adopted child,

 

grandchild, sibling, or parent-in-law.

 

     (5) "Informal representation" means uncompensated

 

representation, including, but not limited to, a request for

 

information made to a state or local governmental entity or an

 

official or employee of the entity on behalf of a person who is a

 

client, constituent, or political contributor.


 

     (6) "Intent to influence" means offering or conferring

 

anything of value on a public official to induce the public

 

official to do an act he or she would otherwise not have done or to

 

refrain from doing an act he or she would otherwise have done.

 

     (7) "Legislative action" means conduct relating to the

 

development, drafting, consideration, sponsorship, enactment,

 

defeat, or support of or opposition to a law, amendment,

 

resolution, report, nomination, or other matter affected by

 

legislative action or inaction.

 

     (8) "Legislative employee" means a person, other than a

 

legislator, who is compensated by the legislative branch in return

 

for regular or substantial personal services, regardless of the

 

person's pay level or technical status as a full-time or part-time

 

employee, independent contractor, or consultant.

 

     (9) "Lobbyist" means that term as defined in section 5 of 1978

 

PA 472, MCL 4.415.

 

     (10) "Nonpublic information" means information that is not

 

available to the general public, the use or disclosure of which

 

results in an unwarranted benefit or advantage.

 

     Sec. 109. (1) "Oath or affirmation" means a statement to

 

affirm, swear, verify, or certify the truth under penalty of

 

perjury.

 

     (2) "Person" means an individual, corporation, business

 

enterprise, or other entity either public or private and any legal

 

successor, representative, agent, or agency of that individual,

 

corporation, business enterprise, or other entity, or any other

 

organization or group of persons acting jointly, including a state


 

agency or a political subdivision of this state.

 

     (3) "Political action" means conduct in which a public

 

official uses his or her official position or political contacts to

 

exercise informal influence on a state or local governmental

 

employee or entity. Political action includes, but is not limited

 

to, any of the following:

 

     (a) Intervening on behalf of a constituent with a government

 

agency.

 

     (b) Endorsing, pledging support, or actively supporting a

 

legislative matter or a nominee or a candidate for public office.

 

     (4) "Professional representation" means representation for

 

compensation.

 

     (5) "Public official" means an official in the executive or

 

legislative branch of state government.

 

     (6) "Reasonably should know" means a situation when, under the

 

circumstances, a person of reasonable prudence and competence would

 

ascertain or know a fact. A person shall not willfully blind

 

himself or herself to facts and inferences in the desire not to

 

know.

 

     (7) "Representation" means an action taken on behalf of

 

another whether taken for compensation or not.

 

     (8) "Sexual harassment" means that term as described in

 

section 103(i) of the Elliott-Larsen civil rights act, 1976 PA 453,

 

MCL 37.2103.

 

     (9) "Substantial interest in legislative, administrative, or

 

political action" means a situation in which a person or

 

organization meets any of the following criteria:


 

     (a) Is regulated by the legislature.

 

     (b) Provides goods or services to the legislature for

 

compensation or profit.

 

     (c) Seeks employment in the legislative branch or in a

 

government agency or private organization in which a legislator

 

has, or reasonably appears to have, the ability to influence an

 

employment decision.

 

     (d) Will be directly or substantially affected, either

 

financially or personally, by a contemplated legislative,

 

administrative, or political action.

 

     (e) Has or seeks a contract for goods or services with an

 

agency of state government.

 

     (f) Is a registered lobbyist.

 

     (g) Employs a registered lobbyist.

 

     (h) Represents a person or organization described in

 

subdivisions (a) to (g).

 

                     CHAPTER 2 – CODE OF CONDUCT

 

     Sec. 201. (1) A legislator shall not seek or accept anything

 

of value as a result of the performance of public responsibilities.

 

This subsection does not prohibit solicitation for and acceptance

 

of a campaign contribution, a pledge, a political endorsement,

 

support in a political campaign, or a promise of political

 

endorsement or support under permitted circumstances.

 

     (2) A legislator shall not accept anything of value if the

 

legislator knows or reasonably should know that the thing of value

 

is offered with the intent to influence a legislative,

 

administrative, or political action.


 

     (3) In addition to any other remedy authorized under this act,

 

a person who violates this section is guilty of a misdemeanor.

 

     Sec. 203. A legislator who receives an offer that clearly

 

appears to be intended as an attempt to improperly influence

 

legislative, administrative, or political action shall firmly and

 

unequivocally reject the offer and caution the person making the

 

offer that the offer may be a violation of this act or of undue

 

influence and bribery laws. The legislator shall report the matter

 

to the appropriate law enforcement authority.

 

     Sec. 205. (1) A legislator shall not use state funds to mail

 

200 or more pieces of substantially similar material during the 50

 

days immediately preceding a primary or general election.

 

     (2) A legislator shall not use state funds to mail material

 

describing a ballot proposal during the 30 days immediately

 

preceding a general election. Material describing a ballot proposal

 

shall be approved, before it is mailed, by the majority and

 

minority leaders of the senate if the sender is a senator or by the

 

speaker and minority leader of the house of representatives if the

 

sender is a member of the house of representatives.

 

     (3) A legislator, person on behalf of a legislator, or

 

candidate committee of the legislator shall not accept a campaign

 

contribution in a facility or office ordinarily used to conduct

 

state government business. If an unsolicited contribution is

 

offered or sent, the contribution shall be refused or returned

 

promptly.

 

     (4) A legislator, person on behalf of the legislator, or

 

candidate committee of the legislator shall not distribute or post


 

literature or any other communication designed to influence the

 

outcome of an election in a facility or office ordinarily used to

 

conduct state government business. This provision does not prohibit

 

a legislator from inviting colleagues to a fund-raising function on

 

behalf of the legislator.

 

     (5) In addition to any other remedy authorized under this act,

 

a person who violates this section is guilty of a misdemeanor.

 

     Sec. 207. (1) A legislative employee who knows or reasonably

 

should know that he or she has been asked to perform an illegal

 

personal or political task shall refuse to perform the task.

 

     (2) The personnel policies of each house of the legislature

 

shall provide that if a legislator requests or demands that a

 

legislative employee perform an improper task, or if a reprisal is

 

threatened or a sanction imposed as a result of the refusal to

 

perform the task, the legislative employee subjected to the

 

request, demand, threat, or sanction shall report the matter as

 

provided in the policies.

 

     Sec. 209. (1) A legislator shall not sexually harass a

 

legislator or legislative employee.

 

     (2) In addition to any other remedy authorized under this act,

 

a person who violates this section is guilty of a misdemeanor.

 

     Sec. 211. (1) Other than in the performance of an official

 

duty or as required by law, a legislator shall not use or disclose

 

nonpublic or confidential information acquired in the course of and

 

by reason of legislative service to obtain private gain for the

 

legislator or any person or business.

 

     (2) In addition to any other remedy authorized under this act,


 

a person who violates this section is guilty of a misdemeanor.

 

     Sec. 213. (1) A legislator shall not use, or allow another to

 

use, the authority, title, or prestige of the legislator's office

 

to obtain an unwarranted private economic benefit for the

 

legislator or another person.

 

     (2) A legislator shall not use official letterhead or refer to

 

the legislator's public position to induce or intimidate a person

 

to resolve a private dispute more favorably, provide preferential

 

treatment, or give a free ticket, discount, favor, or other

 

advantage that does not relate to the legislator's public position.

 

     (3) A legislator shall not use, or allow another to use, the

 

authority, title, or prestige of the legislator's office to endorse

 

a commercial product or service and shall not use official

 

letterhead in materials endorsing a product, service, or candidate

 

for office. This subsection does not prohibit the use of either of

 

the following:

 

     (a) A legislator's official title or letterhead in the course

 

of an otherwise proper recommendation of a person for employment.

 

     (b) A legislator's official title and name used in a dignified

 

manner as part of a political endorsement.

 

     (4) A legislator shall not solicit or accept compensation that

 

is not commensurate with the service performed or that would create

 

in the mind of a reasonable, objective observer the perception that

 

the stature of the office has been unduly exploited for private

 

gain.

 

     Sec. 215. (1) For a period of 1 year after leaving office, a

 

former legislator shall not use or disclose nonpublic or


 

confidential information acquired in the course of or by reason of

 

legislative service to obtain personal gain or for the gain of

 

another.

 

     (2) For a period of 1 year after leaving office, a former

 

legislator shall not seek a position as or agree or contract to be

 

or become a lobbyist, representative, consultant, adviser, or

 

advocate to influence any of the following to take or withhold

 

official action:

 

     (a) A legislator or legislative employee.

 

     (b) A state agency, public official, or employee with

 

responsibility in an area in which the person, while a legislator,

 

had special oversight or budget authority.

 

     (3) For purposes of this act, a person had special oversight

 

or budget authority over an agency if he or she served, within the

 

last year of his or her legislative term, as the senate majority

 

leader, speaker of the house of representatives, chairperson of the

 

senate finance committee, chairperson of the house taxation

 

committee, or chairperson of a committee directly concerned on a

 

regular basis with activity of the agency.

 

     (4) For a period of 1 year after leaving office, a former

 

legislator shall not solicit or accept compensation that is not

 

commensurate with the service performed or that would create in the

 

mind of a reasonable, objective observer the perception that the

 

stature of the office has been unduly exploited for private gain.

 

     Sec. 217. (1) A legislator shall not engage, either directly

 

or through another acting on behalf of the legislator, in conduct

 

that the legislator knows or reasonably should know is likely to


 

create the belief or impression that the person or cause he or she

 

represents will receive more or less favorable consideration by the

 

legislator or that the person will be given more or less

 

opportunity to personally state his or her case or otherwise be

 

benefited or disadvantaged as a direct result of that person's

 

willingness to provide money for a campaign contribution or a cause

 

favored by the legislator, to provide the legislator with personal

 

benefits, or to provide the legislator with political support.

 

     (2) A legislator shall not do any of the following either

 

directly or through another acting on behalf of the legislator:

 

     (a) Agree to, or threaten to, take or withhold legislative,

 

administrative, or political action because of a person's decision

 

to provide or not provide a political contribution to the

 

legislator.

 

     (b) State or imply that the legislator will perform or refrain

 

from performing a lawful constituent service because of a person's

 

decision to provide or not provide a political contribution.

 

     (c) Accept a contribution given or offered in violation of a

 

statute.

 

     (3) In addition to any other remedy authorized under this act,

 

a person who violates this section is guilty of a misdemeanor.

 

     Sec. 219. (1) A legislator shall not engage in an activity

 

that creates a financial conflict of interest.

 

     (2) A legislator shall not engage in an activity with a person

 

with a substantial interest in legislative action.

 

     (3) A legislator shall not engage in an activity that creates

 

a close economic association conflict of interest.


 

     Sec. 221. (1) A legislator shall avoid a close personal

 

relationship conflict of interest. Unless a relationship violates a

 

specific legal limitation, a close personal relationship conflict

 

of interest is not subject to mandatory disclosure. If a situation

 

is not reasonably avoidable, a legislator shall take an affirmative

 

step to publicly disclose a conflict that is not apparent and

 

refrain, if reasonably possible, from making a decision or taking

 

an action affected by the conflict.

 

     (2) The legislature shall not employ an immediate family

 

member of a legislator for compensation in the legislative house in

 

which the legislator is a member unless the family member was

 

employed by the legislature at the time of the marriage.

 

     (3) For purposes of this section, a legislator is not an

 

employee of the legislature.

 

     Sec. 223. (1) A legislator shall not provide personal service

 

for compensation for or on behalf of a lobbyist or lobbyist agent

 

that regularly engages in lobbying the legislature or a state

 

agency, board, or commission.

 

     (2) A legislator shall not have a financial interest in a

 

business that receives a substantial part of its income from a

 

lobbyist or lobbyist agent that regularly engages in lobbying the

 

legislature or a state agency, board, or commission.

 

     Sec. 225. A legislator shall not serve on a governing or

 

advisory board of an organization that regularly has a substantial

 

interest in the legislative, administrative, or political actions

 

of the legislator unless the legislator discloses the relationship

 

and disqualifies himself or herself from any action relating to the


 

organization's interests.

 

     Sec. 227. A legislator shall not have an equity or ownership

 

interest in a business, investment, real property, lease, or other

 

enterprise if the interest has a cost or fair market value of

 

$25,000.00 or more and the financial interest is likely to be

 

materially affected by a legislative, administrative, or political

 

action of the legislator, unless the legislator disqualifies

 

himself or herself from any action relating to the interest

 

involved.

 

     Sec. 229. (1) A legislator shall not professionally represent

 

a person or entity in a legal action against the state if the state

 

is the real party in interest or receive compensation or anything

 

of value for acting as an informal representative, adviser, or

 

consultant to a person regarding an action against the state. This

 

subsection does not prevent a legislator who is an attorney from

 

representing a client in a proceeding if the state is not a real

 

party in interest.

 

     (2) A legislator shall not professionally represent a person

 

as an advocate, adviser, or consultant in an action before a state

 

agency, board, or commission unless the proceeding is adjudicatory

 

in nature and there is no reasonable basis to conclude that the

 

side represented by the legislator has an unfair advantage. A

 

matter is adjudicatory in nature when opposing sides have separate

 

representation.

 

     (3) This section does not prohibit an attorney from

 

representing a client in an otherwise permissible action before a

 

court and does not prevent a legislator from representing personal


 

interests in an otherwise proper proceeding.

 

     (4) A legislator shall not professionally represent a person

 

to obtain or retain a state license, permit, franchise, grant,

 

loan, or other entitlement, whether or not other parties contending

 

for the state benefit are represented, unless the granting of the

 

benefit is a purely ministerial matter.

 

     (5) A legislator acting as an attorney or representative of

 

another shall not seek or accept special treatment, a privilege, a

 

right, or a concession solely by reason of his or her service in

 

the legislature.

 

     (6) This section does not prohibit a legislator from

 

informally advising a constituent about a procedure or the

 

appropriateness of bringing an action against this state. If a

 

legislator advises a constituent or other person in an action

 

against this state or before a state agency, the legislator shall

 

not reveal any nonpublic or confidential information.

 

     (7) If the legislator is an attorney and is disqualified under

 

this section, the firm of the legislator is also disqualified.

 

     (8) If for any reason it is unreasonably difficult to comply

 

with the restrictions in this section, until January 1, 2008, a

 

legislator may represent a person in a proceeding that would be

 

prohibited under this section if a statement that includes all of

 

the following is promptly published in the journal of the

 

appropriate house:

 

     (a) The name of the client.

 

     (b) An identifying name or number of the action.

 

     (c) A brief description of the nature of the action.


 

     (d) The amount of compensation received or anticipated

 

relating to the representation.

 

     (9) Changes in the statement required by subsection (8) shall

 

be filed every 90 days until the representation is completed or

 

January 1, 2008, whichever occurs first.

 

     Sec. 231. (1) A legislator or an immediate family member of a

 

legislator may be a party to, or have a financial interest in, a

 

state contract or lease only if 1 or more of the following

 

circumstances apply:

 

     (a) The contract is let through competitive sealed bidding and

 

the legislator has filed a statement disclosing the nature and

 

extent of the financial interest with the secretary of state at the

 

time the bid is made.

 

     (b) The total amount of the contract or lease over the course

 

of a year is less than $1,000.00 and the contract or lease was let

 

under circumstances that raise no substantial question of undue

 

influence.

 

     (c) The contract or lease was developed and standardized under

 

published guidelines and the benefits and rights conferred are

 

widely available to the general public under the same terms and

 

conditions.

 

     (2) A legislator shall not seek or accept compensation on a

 

state contract and a legislator shall not receive compensation for

 

a service relating to recommending, supporting, or advocating a

 

contract between a person or business and this state, a local

 

government that receives substantial state funds, or a private

 

enterprise that does a substantial portion of its business with


 

this state.

 

     (3) For a period of 1 year after leaving legislative office, a

 

former legislator shall not seek or accept a contract for a good or

 

personal service or other compensation concerning a matter on which

 

the legislator worked extensively within the last year of his or

 

her legislative service.

 

     (4) A legislator may participate in a state assistance or

 

benefit program or receive a loan from the state if the program or

 

loan is generally available to a member of the public, is subject

 

to a fixed objective eligibility standard, and requires minimal

 

discretion in determining qualification.

 

     Sec. 233. (1) A legislator shall not solicit, accept, or

 

receive, directly or indirectly, anything of value as a gratuity

 

from a person or entity, except that a legislator may accept a

 

gratuity if the aggregate value is less than $100.00 from a single

 

source for a year, if the gift is reported to the secretary of

 

state as to source and amount, and if the gratuity is not accepted

 

under circumstances in which it could be reasonably inferred that

 

the gift is intended to influence the performance of an official

 

duty, action, or judgment.

 

     (2) A legislator may accept anything of value as a gratuity

 

without regard to the $100.00 limit under subsection (1) and need

 

not report the gratuity if it is any of the following:

 

     (a) A gift from an immediate family member.

 

     (b) A birthday, wedding, anniversary, or similar ceremonial

 

gift from a friend if the donor does not have a substantial

 

interest in the legislative, administrative, or political action of


 

the recipient.

 

     (c) A gift of sample merchandise, a promotional item such as a

 

pen or calendar, or a token of appreciation such as candy, a fruit

 

basket, or flowers if the gift is of nominal value, the gift is

 

given to a customer or a potential customer in the ordinary course

 

of business, and there is no special fact creating a conflict of

 

interest or the appearance of impropriety.

 

     (d) An unsolicited award with a value of less than $100.00.

 

     (e) Informational material, a brochure, a pamphlet, or an

 

unsolicited publication, including a newspaper or magazine, with a

 

market value of less than $50.00 on an annual basis.

 

     (f) Food or foodstuffs indigenous to the state that are shared

 

generally as a cultural or social norm, a meal or beverage provided

 

and consumed at a social or fund-raising event, conference, or

 

professional meeting, or a meal or beverage provided and consumed

 

as part of personal hospitality at the residence or place of

 

business of the host, but excluding the following:

 

     (i) A gift of packaged liquor, wine, or foodstuffs.

 

     (ii) A restaurant meal not consumed with the person providing

 

the gift.

 

     (g) A gift presented by a representative of a foreign

 

government. However, if it is worth more than $100.00, the gift

 

must be turned over to the presiding officer of either house of the

 

legislature for display in a public area of the capitol or for sale

 

at auction with the proceeds going to charity or the general fund.

 

If the gift is worth less than $100.00 and intended as a personal

 

gift, it may be kept if it is reported to the secretary of state.


 

     (h) Reasonable and necessary expenses including reimbursement

 

for travel and related food and lodging if the expenses are

 

incidental to a trip paid for by a government agency or a bona fide

 

nonprofit educational or charitable institution for a government or

 

educational purpose and if lodging expense is limited to the day

 

preceding and the day or days of the event.

 

     (i) Hospitality including overnight lodging, food, and

 

beverage at the residence or other home of the host if the host is

 

present. If the host is a personal friend and has no substantial

 

interest in the legislative, administrative, or political actions

 

of the recipient and no other fact creates a conflict of interest,

 

there is no limit on the number of days stayed. If the host has a

 

substantial interest in the legislative, administrative, or

 

political actions of the recipient, the exempt stay shall not

 

exceed 2 nights and the gratuity shall be reported on a financial

 

disclosure form to the secretary of state. This subdivision does

 

not permit the use of a lodging, motor home, or boat if the host is

 

not personally present or, regardless of the presence of the host,

 

if the purpose is to provide the legislator with a paid or

 

subsidized vacation. A legislator may accept transportation in a

 

host's personal or company car or van to the place of a social

 

event. A legislator shall not accept unusual or expensive travel,

 

such as by air or limousine, to the residence of the host or other

 

place.

 

     (3) A person shall not directly or indirectly provide, offer,

 

or promise anything of value to a legislator with the intent to

 

influence legislative, administrative, or political action.


 

     Sec. 235. (1) A legislator shall not seek, accept, or retain

 

employment, including employment as an adviser or consultant, that

 

does any of the following:

 

     (a) Makes it unreasonably difficult to fulfill a legislative

 

obligation.

 

     (b) Requires the disclosure or use of nonpublic or

 

confidential information acquired in the course of legislative

 

service.

 

     (c) Requires the improper use of a government relationship or

 

the authority, prestige, or title associated with legislative

 

office.

 

     (d) Involves a payment that by a reasonable, objective

 

standard is not commensurate with a service rendered and appears to

 

involve a premium as a result of the legislator's position in the

 

legislature.

 

     (e) Requires the legislator under a conflict of interest and

 

disqualification requirement to refrain from taking a legislative,

 

administrative, or political action in a certain situation.

 

     (f) Requires the legislator to compromise an ethical or legal

 

duty.

 

     (2) A legislator who accepts otherwise permissible employment

 

with a person who has a substantial interest in a legislative,

 

administrative, or political action shall comply with the special

 

disclosure provisions of the financial disclosure act and shall

 

scrupulously avoid conduct that would lead a reasonable, objective

 

person to believe that the legislator is unable or unwilling to

 

exercise independent, objective, and impartial judgment in


 

considering a matter that affects an interest of the legislator's

 

employer.

 

     (3) A legislator shall not accept an honorarium. If a

 

legislator or his or her immediate family member uses

 

transportation, obtains lodging, or consumes food or beverages in

 

connection with an undertaking in the discharge of the duties of

 

elective office and if the cost of the transportation, lodging,

 

food, or beverages or a combination of the costs is more than

 

$50.00 and is paid or reimbursed by a person or persons other than

 

the legislator or the house of the legislature in which he or she

 

serves, the legislator shall report the name and address of and the

 

amount of costs paid or reimbursed by each paying person on a form

 

provided by the secretary of state.

 

     Sec. 237. (1) A legislator shall exercise his or her power and

 

prerogative without prejudice or favoritism and shall not use

 

public authority to reward, hinder, or punish a relative, friend,

 

or political supporter or to reward, hinder, or punish an

 

adversary.

 

     (2) In addition to any other remedy authorized under this act,

 

a person who violates this section is guilty of a misdemeanor.

 

     Sec. 239. (1) A legislator shall not interfere with the

 

ability or willingness of a state or municipal governmental body,

 

official, or employee to use independent judgment in making an

 

official decision or in taking an appropriate action on the merits

 

of an issue.

 

     (2) A legislator shall not use or appear to use political

 

influence in a way that is likely to cause another public official


 

to consider an inappropriate factor in exercising public authority.

 

An act either intended to or likely to be construed as enticement,

 

trade-off, threat, ingratiation, intimidation, or coercion is

 

improper. Except to assure that a particular person is being

 

treated fairly according to an established rule or procedure, a

 

legislator shall not interfere with or seek to influence any of the

 

following:

 

     (a) The outcome or substantive finding of an adjudicatory

 

proceeding of a governmental regulatory body.

 

     (b) A decision regarding the commencement, scope, or

 

termination of an investigatory process of a governmental agency.

 

     (c) An action of a governmental agency concerning the granting

 

or revoking of a license, permit, franchise, or similar

 

entitlement.

 

     (3) This section does not prevent a legislator from doing any

 

of the following:

 

     (a) Inquiring about the status of a matter.

 

     (b) Openly advocating the position of a constituent on the

 

merits if no effort is made to unduly influence the decision-making

 

process by express or implied political pressure in a matter

 

involving a discretionary decision of an administrative body that

 

will have direct and significant economic or social impact on the

 

legislator's district.

 

     (c) Exercising vigilant oversight with respect to the policy,

 

regulation, procedure, or implementation of a practice of an

 

agency.

 

     (4) In addition to any other remedy authorized under this act,


 

a person who violates this section is guilty of a misdemeanor.

 

     Sec. 241. A legislator shall disclose to the governmental

 

ethics board a financial, professional, or personal interest that

 

is likely to create in the mind of a reasonable, objective person

 

the belief that the legislator's objectivity and ability to

 

exercise independent judgment in the public interest have been

 

adversely affected by that interest.

 

     Sec. 243. (1) A legislator shall comply with the open meetings

 

act, 1976 PA 267, MCL 15.261 to 15.275, and exercise the authority

 

of his or her office openly so that the public is informed about

 

governmental decisions and the citizenry can hold him or her

 

accountable for his or her actions.

 

     (2) A legislator shall assure that anyone to whom he or she

 

has delegated responsibility, including staff or an administrative

 

agency, carries out the delegated responsibility efficiently,

 

equitably, and ethically.

 

     (3) A legislator who believes that a policy or rule of a house

 

of the legislature is not achieving its intended purpose, is

 

creating an unintended harm, or is wasteful or inefficient shall

 

take an affirmative step to improve the procedure to increase the

 

fairness and quality of government service and assure that the

 

policy is implemented efficiently, equitably, and economically.

 

     Sec. 245. (1) A legislator shall maintain the integrity and

 

trustworthiness of government by preventing an unethical practice,

 

unlawful conduct, corruption, mismanagement, waste of public funds,

 

danger to public safety, or any other abuse of public position,

 

authority, or resource.


 

     (2) A legislator who has a good faith, reasonable belief that

 

the public interest requires the disclosure of a governmental

 

policy or action thought to be unlawful or improper shall reveal

 

that information to the appropriate authority.

 

     (3) A legislator shall not, directly or indirectly, subject a

 

person to reprisal, retaliation, harassment, discrimination, or

 

ridicule for reporting to a government entity conduct the person

 

reasonably believes is a violation of this act or other state law.

 

A legislative employee who is discharged, disciplined,

 

involuntarily transferred, or otherwise penalized by a legislator

 

is protected by the whistleblowers' protection act, 1980 PA 469,

 

MCL 15.361 to 15.369.

 

                  CHAPTER 3 – REMEDIES AND SANCTIONS

 

     Sec. 301. A person who violates this act or makes a false,

 

deliberately misleading or incomplete, or unnecessarily delayed

 

disclosure of a violation of this act is subject to 1 or more of

 

the following sanctions:

 

     (a) A civil fine of $5,000.00 for each offense or twice the

 

amount improperly gained by the misconduct, whichever is less.

 

     (b) Divestiture of a specified asset or withdrawal from a

 

specified relationship.

 

     (c) Detailed disclosure with or without an additional periodic

 

reporting requirement.

 

     (d) Restitution or reimbursement.

 

     (e) Written reprimand.

 

     (f) Consideration by the legislature of means by which

 

legislation, a part of legislation, or other action resulting from


 

conduct in violation of this act could be nullified.

 

     (g) Censure and disqualification from serving as a member,

 

chairperson, or co-chairperson on a legislative committee for the

 

remainder of the legislator's term in office.

 

     (h) Expulsion of a legislator.

 

     (i) Any other sanction to achieve the purposes of this act.

 

     Sec. 303. (1) The governmental ethics board is the

 

administrative body with authority to conduct administrative

 

proceedings under this act.

 

     (2) The attorney general or, upon failure of the attorney

 

general to bring an action within 60 days after a written request

 

to do so, any citizen may bring a civil action for a violation of

 

this act.

 

     (3) The right to proceed in a separate civil suit under this

 

section is independent of any proceeding conducted by the

 

governmental ethics board but, to the extent that a civil fine is

 

ordered for any offense, a person shall be fined $5,000.00 for each

 

offense or twice the amount improperly gained by the misconduct,

 

whichever is less.

 

     (4) When paid, a civil fine that is ordered pursuant to this

 

act shall be deposited in the general fund of the state.

 

     Sec. 305. An offense designated as a misdemeanor under this

 

act is punishable as provided in section 504 of the Michigan penal

 

code, 1931 PA 328, MCL 750.504.

 

     Sec. 307. Conduct that is criminal under this act or another

 

state law may be separately prosecuted without regard to the

 

resolution or pendency of a charge before an administrative body or


 

a civil court.

 

     Sec. 309. The attorney general shall assist the legislature

 

with the enforcement of corrective action and shall assist the

 

legislature with the enforcement of a sanction imposed under this

 

act. The attorney general may independently bring a civil or

 

criminal action based on a violation of this act.

 

     Enacting section 1. This act takes effect April 1, 2007.

 

     Enacting section 2. This act does not take effect unless all

 

of the following bills of the 93rd Legislature are enacted into

 

law:

 

     (a) House Bill No. 5938.

 

     (b) House Bill No. 5939.