April 20, 2006, Introduced by Senators SCHAUER, BASHAM, WHITMER, CHERRY, JACOBS, OLSHOVE, BARCIA and BRATER and referred to the Committee on Government Operations.
A bill to establish standards of ethical conduct for members
of the state legislature; to impose certain conditions on members
of the state legislature, former members of the state legislature,
and associated businesses to enhance accountability; to require
public disclosure by members of the state legislature of certain
transactions and to require the filing of a transactional
disclosure statement; to establish a legislative ethics committee
and prescribe its powers and duties; and to prescribe sanctions and
provide remedies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
CHAPTER 1. DEFINITIONS; GENERAL PROVISIONS
Sec. 101. This act shall be known and may be cited as the
"legislative ethics act".
Sec. 102. This act is intended to implement section 10 of
article IV of the state constitution of 1963. It is the intent of
the legislature that this act shall be taken into consideration in
determining the construction and effect of section 10 of article IV
of the state constitution of 1963.
Sec. 103. For the purposes of this act:
(a) "Anything of value" means a tangible or intangible item
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. Anything of value does not include any of the
following:
(i) An unsolicited token or award with a value of less than
$150.00.
(ii) An unsolicited advertising item with a value of less than
$50.00.
(iii) An unsolicited publication with a market value of less
than $50.00 on an annual basis.
(iv) A discount afforded to the general public or a specified
group or occupation under normal business conditions. However, the
discount may not be based on the fact of public service unless it
is a discount program approved by the committee.
(v) A contribution to a bona fide charity, made in response to
a direct solicitation from a member of the state legislature or a
person acting at his or her direction.
(vi) An unsolicited benefit conferred by a person if the
economic value totals less than $100.00 per calendar year and if
there is no express or implied understanding or agreement that a
vote, official action, or decision of a member of the state
legislature will be influenced.
(vii) A tangible or intangible item for a legitimate
educational purpose or benefit.
(viii) A campaign contribution that is made and reported under
the Michigan campaign finance act, 1976 PA 388, MCL 169.201 to
169.282.
(ix) Compensation or reimbursement from the state.
(b) "Confidential information" means information made
confidential by law or information that is conveyed or accepted
with the understanding that the information will be used only for
official purposes.
(c) "Conflict of interest" means a close economic association
or personal relationship between a member of the state legislature
and a person that is likely to be substantially affected by an
official action or decision of a member of the state legislature
that a reasonable person would believe conflicts with the public
duty or obligation of the member of the state legislature to
exercise objective independent judgment or that a reasonable person
would believe creates the appearance that the person may have undue
access to confidential information or may otherwise receive favored
treatment regarding a public action.
(d) "Immediate family" means a child residing in the
individual's household, a 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) "Legislative ethics committee" or "committee" means the
legislative ethics committee established under section 401, except
where the context clearly requires a different definition.
(f) "Outside employer or business" means any of the following:
(i) An activity, other than service to the state legislature,
if the member of the state legislature receives compensation for
services rendered or goods sold or produced.
(ii) An entity, other than the state legislature, if the member
of the state legislature is a member, official, director, or
employee of the entity and he or she receives compensation for
services rendered or goods sold or produced by the entity.
Compensation does not include reimbursement for necessary expenses,
including travel expenses.
(iii) An entity in which the member of the state legislature has
an ownership interest, except a corporation in which the member of
the state legislature owns less than 10% of the outstanding stock.
(g) "Person" means an individual, sole proprietorship,
partnership, limited partnership, limited liability company,
corporation, association, or other legal entity.
(h) "Transactional disclosure statement" means a report
required to be filed by a member of the state legislature under
chapter 2.
CHAPTER 2. CODE OF ETHICS.
Sec. 201. Except as otherwise provided by law, a member of the
state legislature shall not use his or her public position or take
or fail to take action to obtain anything of value for himself or
herself or another person in violation of this act.
Sec. 203. A member of the state legislature shall not solicit
or accept anything of value in connection with his or her official
responsibilities.
Sec. 205. A member of the state legislature shall not
represent for compensation a person in a matter that the person has
before the executive or legislative branch of state government.
Sec. 207. (1) A member of the state legislature or a former
member of the state legislature shall not use or disclose
confidential information to further his or her own or another
person's interests, except to the extent permitted by law.
(2) A member of the state legislature shall not engage in a
business transaction in which the member of the state legislature
may profit from his or her official position or authority or
benefit financially from confidential information that the member
of the state legislature has obtained or may obtain by reason of
that position or authority.
Sec. 209. (1) A member of the state legislature or an outside
employer or business with which the member of the state legislature
is associated shall not enter into a contract valued at $1,500.00
or more with this state or a political subdivision of this state
unless the contract is awarded through an open and public
competitive process that includes prior public notice and
subsequent availability for public inspection of the proposals
considered and the contract awarded.
(2) A member of the state legislature who has or later
acquires an interest in an actual or proposed contract with this
state or a political subdivision of this state shall publicly
disclose the nature and extent of that interest as required by this
chapter.
(3) A contract or agreement that is executed in violation of
this section is voidable only if the person who entered into the
contract or took assignment of the contract had actual knowledge of
the prohibited conflict. If a person is other than an individual,
the actual knowledge must be that of an individual or body finally
approving the contract. A contract involving a prohibited conflict
of interest under this act is voidable only by a decree of a court
of proper jurisdiction. A decree of a court of proper jurisdiction
may provide for the reimbursement for the reasonable value of
money, goods, material, labor, or services furnished under the
contract, to the extent that the governmental entity has benefited.
This subsection does not prohibit the parties from reaching a
settlement outside of court.
Sec. 211. (1) A member of the state legislature shall abstain
from chairing a meeting of a legislative committee or subcommittee
or acting formally or informally on a matter before the state
legislature if he or she knows that chairing the meeting, acting on
the matter, or failing to act on the matter may result in a
conflict of interest or a violation of this chapter.
(2) If a member of the state legislature is required to
abstain from chairing a meeting or acting on a matter, he or she
shall file a transactional disclosure statement with the
legislative ethics committee within 10 days after the meeting.
(3) A transactional disclosure statement shall include all of
the information related to the conflict of interest and the reason
for the member of the state legislature's abstaining from chairing
a meeting or acting under subsection (1).
Sec. 213. A member of the state legislature shall not
represent his or her personal opinion as that of the house of
representatives, the senate, the legislature, or this state. This
section does not prohibit a member of the state legislature from
expressing his or her personal opinion on any matter.
Sec. 215. A member of the state legislature shall use
personnel resources, property, and funds under the member's
official care and control judiciously and solely in accordance with
prescribed constitutional, statutory, and regulatory procedures and
not for personal gain or benefit.
Sec. 217. A member of the state legislature shall not engage
in or accept employment or render services for a private or public
interest if that employment or service is incompatible or in
conflict with the discharge of the member's official duties or if
that employment may tend to impair his or her independence of
judgment or action in the performance of official duties.
Sec. 219. (1) A person shall not offer or give anything of
value in connection with the official responsibilities of a member
of the state legislature to any of the following:
(a) A member of the state legislature.
(b) An immediate family member of the member of the state
legislature.
(c) An outside employer or business with which the member of
the state legislature is associated.
(d) A customer or client of the member of the state
legislature.
(2) A person shall not induce or attempt to induce a member of
the state legislature to violate any of the provisions of this
chapter.
(3) Nothing in this section shall be construed to prohibit a
person from receiving a service or benefit, or from using a
facility, that is generally available to the public, if the person
does so in the same manner or degree that is available to the
general public.
(4) Under this section, a corporation, partnership, limited
liability company, or other entity is not vicariously liable for
the actions of an employee unless the employee acted in the
execution of company policy or custom.
Sec. 221. This chapter does not prohibit or require conduct
specifically authorized by statute, rule, regulation, the state
constitution of 1963, or the constitution of the United States.
CHAPTER 3. SANCTIONS.
Sec. 301. The committee shall initiate appropriate proceedings
and may recommend that the senate or the house of representatives
take appropriate disciplinary action concerning a member of the
state legislature who violates this act.
Sec. 303. A member of the state legislature who has knowledge
that another member of the state legislature has violated chapter 2
may report the existence of the violation to the committee.
Sec. 305. (1) A member of the state legislature who violates
this act is subject to a civil fine of not more than $1,000.00 for
each violation, in addition to any other sanction provided in this
act or other law of this state. The civil fine shall be imposed by
the senate for a member of the senate or by the house of
representatives for a member of the house of representatives.
(2) A person other than a member of the state legislature who
violates this act is subject to a civil fine of not more than
$1,000.00 for each violation, in addition to any other sanction
provided in this act. The civil fine shall be imposed by a court of
proper jurisdiction.
(3) A civil fine recovered under this section shall be
deposited in the general fund of this state.
Sec. 307. A person who violates this act is liable for damages
to this state for losses or increased costs incurred by this state
as a result of the violation. Damages may be imposed by a court of
proper jurisdiction in addition to any other sanction contained in
another provision of law.
Sec. 309. A person required under chapter 2 to file a
transactional disclosure statement who willfully files a false or
incomplete transactional disclosure statement or who willfully
fails to file a transactional disclosure statement within the time
prescribed is guilty of a misdemeanor punishable by imprisonment
for not more than 90 days or a fine of not more than $1,000.00, or
both.
CHAPTER 4. LEGISLATIVE ETHICS COMMITTEE.
Sec. 401. (1) The legislative ethics committee is established
within the legislative council and shall consist of 4 members of
the senate and 4 members of the house of representatives. The
senate majority leader shall appoint 2 members of the senate to
serve as members of the committee during the senate majority
leader's tenure. The senate minority leader of the largest minority
caucus shall appoint 2 members of the senate to serve as members of
the committee during the senate minority leader's tenure. The
speaker of the house of representatives shall appoint 2 members of
the house of representatives to serve as members of the committee
during the speaker's tenure. The house minority leader representing
the largest minority caucus in the house shall appoint 2 members of
the house of representatives to serve as members of the committee
during the house minority leader's tenure. The committee shall
select a member of the house of representatives to serve as
chairperson of the committee during odd-numbered years and a member
of the senate to serve as chairperson during even-numbered years.
(2) The committee may establish its rules and procedures
consistent with this act.
(3) Five members of the committee constitute a quorum for the
transaction of business, and the affirmative vote of 5 voting
members shall be necessary for any action. All votes of the
committee shall be by record roll call.
(4) The committee shall conduct business in compliance with
the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Notice of
the meetings of the committee shall be made public in compliance
with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
Sec. 403. (1) The committee shall do all of the following:
(a) Receive complaints concerning alleged violations of this
act from any person, inquire into the circumstances surrounding the
alleged violation, and make recommendations concerning individual
cases to the house of representatives for members of the house of
representatives and to the senate for members of the senate. The
committee shall review, index, maintain on file, and dispose of
complaints and shall make notifications and conduct investigations.
(b) Initiate investigations of practices that might affect the
ethical conduct of a member of the state legislature.
(c) Hold public hearings.
(d) Administer oaths or affirmations, subpoena and compel
attendance of witnesses, require the production of books or records
the committee considers relevant or material, and receive sworn or
unsworn testimony.
(e) Render, index, and maintain on file as provided under this
chapter advisory opinions upon request of a member of the state
legislature.
(f) Grant waivers under section 411.
(g) Prepare and publish nonconfidential special reports and
technical studies to further the purposes of this act.
(h) Provide training and education to members of the state
legislature regarding the requirements of this act.
(i) Prepare reports as required under this act and recommend
proposed changes to this act.
(j) Provide for public inspection of records required under
this act as authorized by law.
(k) Select provisions of this act, special reports, and
technical studies for reproduction and distribution under this act.
(l) Examine transactional disclosure statements filed under
section 211, the supporting records, and other documents. The
committee shall index and maintain on file for at least 7 years a
transactional disclosure statement filed under this act.
(2) If the committee makes a recommendation to the house of
representatives or the senate that affects a member of the state
legislature, the house of representatives for a member of the house
of representatives or the senate for a member of the senate shall
take appropriate disciplinary action against the member of the
state legislature.
(3) In any matter before the committee, if the committee
determines that there may have been a violation of a law of this
state, the committee shall forward the matter to the attorney
general or another appropriate law enforcement authority.
Sec. 405. (1) The committee may act only with respect to
members of the state legislature and former members of the state
legislature covered by this act.
(2) The termination of a member of the state legislature's
term of office does not affect the jurisdiction of the committee
with respect to the requirements imposed on him or her by this act.
Sec. 407. (1) If a majority vote of the committee determines
that there is reason to believe that this act was violated, the
committee shall initiate an investigative proceeding to determine
whether a violation occurred. The committee shall mail a notice of
the investigation and the nature of the alleged violation to a
person under investigation within 5 days after the decision to
undertake an investigation is made. Every 60 days until a final
determination is made, the committee shall mail to the complainant
and to the person under investigation notice of the action taken to
date by the committee along with the reasons for the action or
nonaction.
(2) Except as otherwise required by law, the committee's
actions and the records related to an investigation shall be
confidential until the committee makes a final determination under
this section.
(3) All legislative offices, legislative agencies, state
departments, and state agencies shall cooperate with the committee
when it is conducting an investigation.
(4) If the committee determines that this act was not
violated, the records and actions related to the investigation and
determination shall remain confidential unless the person
investigated requests in writing that the records and actions be
made public. If the committee determines that this act was
violated, the committee shall make a recommendation of sanctions to
the senate if the person investigated is a state senator or to the
house of representatives if the person investigated is a state
representative.
Sec. 409. (1) After a hearing providing for due process
procedural requirements and subject to applicable provisions of
law, the committee may recommend disciplinary action to the
appropriate chamber of the state legislature. The recommendation of
the committee shall be made to the chamber of the state legislature
authorized by law to impose or recommend sanctions for a member of
the state legislature.
(2) The committee shall conduct and complete the hearing with
reasonable promptness. If the committee refers the matter to the
senate or to the house of representatives to impose disciplinary
action, the committee may adjourn the matter pending determination
by the senate or house of representatives.
(3) The senate, the house of representatives, or the committee
on behalf of the senate or house of representatives may initiate an
action or special proceeding in the court of appropriate
jurisdiction to obtain damages under section 307.
Sec. 411. (1) Upon written application and upon a showing of
compelling need by a member of the state legislature, the committee
may grant the member of the state legislature a waiver of a
provision of this act.
(2) The committee may grant a waiver only at an open meeting
after public notice as provided in the open meetings act, 1976 PA
267, MCL 15.261 to 15.275. The notice shall state that a waiver is
being considered. A waiver shall be in writing and shall state the
grounds upon which it is granted. Within 10 days after granting a
waiver, the committee shall send a copy of the decision granting
the waiver to the member of the state legislature; the secretary of
the senate, if the member of the state legislature is a member of
the senate; or the clerk of the house of representatives, if the
member of the state legislature is a member of the house of
representatives. The decision shall state the name of the person
requesting the waiver and a general description of the
circumstances of the waiver. The committee shall index and maintain
on file all applications, decisions, and other records and
proceedings relating to a waiver.
Sec. 413. (1) Upon the written request of a member of the
state legislature, the committee shall render a written advisory
opinion regarding the interpretation or application of this act.
(2) The committee shall index and maintain on file all
advisory opinions and requests for advisory opinions.
(3) If an advisory opinion of the committee has not been
amended or revoked, it is binding on the committee in a subsequent
proceeding concerning the person who requested the opinion and who
acted in good faith, unless the person omitted or misstated a
material fact. The person may rely on the advisory opinion and may
offer the advisory opinion in the defense of a civil action brought
by the senate, the house of representatives, or the committee on
behalf of the senate or the house of representatives.
Sec. 415. The committee shall do both of the following:
(a) Make information concerning this act available to each
member of the state legislature, to the public, and to persons
interested in doing business with this state, through the secretary
of the senate, the clerk of the house of representatives, the
legislative council, and other necessary means.
(b) Develop educational materials and an educational program
to inform members of the state legislature of their duties and
responsibilities under this act.
Sec. 417. (1) The committee shall prepare and submit an annual
report to the majority leader of the senate, the minority leader of
the senate, the speaker of the house of representatives, and the
minority leader of the house of representatives summarizing the
activities of the committee. The report may also recommend
statutory or administrative changes to this act.
(2) The committee shall annually review this act and any
rules, regulations, or procedures of the committee to determine
whether they promote integrity, public confidence, and
participation in state government and whether they set forth clear
and enforceable common sense standards of conduct.
Sec. 419. (1) Within 90 days after the first meeting of the
committee, and after then as appropriate, the committee shall
transmit to the secretary of the senate, the clerk of the house of
representatives, and the legislative council, in a suitable form,
copies of the provisions of this act that the committee considers
necessary for posting and distribution. Within 10 days after
receipt of those copies, the secretary of the senate, the clerk of
the house of representatives, and the legislative council shall do
all of the following:
(a) Conspicuously post the copies received from the committee
in each public building under the jurisdiction of the state
legislature.
(b) Distribute the copies received from the committee to each
member of the state legislature.
(c) Make the copies received from the committee available to
the public.
(2) The secretary of the senate or the clerk of the house of
representatives shall furnish a member of the state legislature
elected after the effective date of this act with a copy of the
provisions distributed under subsection (1) within 10 days after
entering upon the duties of the office.
(3) Failure of the secretary of the senate, the clerk of the
house of representatives, or the legislative council to comply with
the provisions of this section or failure of a member of the state
legislature to receive a copy of the provisions of this act does
not affect the duty of compliance with this act or the enforcement
of this act's provisions.
(4) The committee shall transmit to the secretary of the
senate, the clerk of the house of representatives, and the
legislative council, in a form suitable for distribution, copies of
special reports and technical studies relating to this act and its
administration.
Enacting section 1. This act does not take effect unless all
of the following bills of the 93rd Legislature are enacted into
law:
(a) Senate Bill No. 1216.
(b) Senate Bill No. 1217.