Summary: The Full Disclosure Act requires [legislators] to publicly disclose any possible conflicts of interest.
SECTION 1. SHORT TITLE
This Act shall be called the “Full Disclosure Act.”
SECTION 2. FULL DISCLOSURE
After section XXX, the following new section XXX shall be inserted:
(A) DEFINITIONS—In this section:
“Close economic association” means the association between a [legislator] and:
1) The [legislator’s] employer, employee, or partner in a business or professional enterprise;
2) A partnership, limited liability partnership, or limited liability company in which the [legislator] has invested capital or owns an interest;
3) A corporation in which the [legislator] owns the lesser of 10 percent or more of the outstanding capital stock or $25,000 or more;
4) A corporation in which the [legislator] is an officer, a director, or an agent; or
5) An entity with which the [legislator] is negotiating employment or has arranged prospective employment.
“Close economic association” does not include a [legislator’s] ownership of stock directly through a mutual fund, an exchange-traded fund, a retirement plan, or any other similar commingled investment vehicle the individual investments of which the [legislator] does not control or manage.
(B) NO CONFLICTS OF INTEREST
1) A conflict of interest disqualifies a [legislator] from participating in any legislative action, or otherwise attempting to influence any legislation, to which the conflict relates.
2) It is presumed that an interest disqualifies a [legislator] from participating in legislative action whenever the [legislator]:
a) Has or acquires a direct interest in an enterprise that would be affected by the legislator’s vote on proposed legislation, unless the interest is common to all members of a profession or occupation of which the legislator is a member, or the general public or a large class of the general public;
b) Benefits financially from a close economic association with a person whom the legislator knows has a direct interest in an enterprise or interest that would be affected by the legislator’s participation in legislative action, differently from other like enterprises or interests;
c) Benefits financially from a close economic association with a person who is lobbying for the purpose of influencing legislative action; or
d) Solicits, accepts, or agrees to accept a loan, other than a loan from a commercial lender in the normal course of business, from a person who would be affected by or has an interest in an enterprise that would be affected by the legislator’s participation in legislative
(C) SUSPENSION OF DISQUALIFICATION
1) The disqualification arising under this section may be suspended if a [legislator] with an apparent or presumed conflict files with the [Ethics Commission] a sworn statement that describes the circumstances of the apparent or presumed conflict and the legislation, or class of legislation, or legislative action to which it relates and asserts that the [legislator] is able to participate in legislative action relating to the legislation matter fairly, objectively, and in the public interest.
2) A disqualification arising under this section may not be suspended if:
a) The conflict is direct and personal to the [legislator], a member of the [legislator’s] immediate family, or the [legislator’s] employer; or
b) The [Ethics Commission] finds that such a suspension would constitute a violation of its ethical standards.
3) All statements and [Ethics Commission] findings under this subsection shall be publicly available on the [Commission’s] website.
4) The requirement of disqualification does not apply to a vote on the annual operating budget bill in its entirety or the annual capital budget bill in its entirety.
(D) FINANCIAL DISCLOSURE
1) All [legislators] shall make a financial disclosure to the [Ethics Commission] about themselves, their spouses and their minor children in a manner that specifies which entry applies to which family member, except that minor children may be unnamed and disclosed together.
2) This financial disclosure shall be reported by calendar year at the times and in the manner required by the [Commission].
3) When amounts of money are to be disclosed, they shall be disclosed in the following dollar ranges, as well as any further detail the [Commission] may require:
a) Less than $10,000
b) $10,000 to $24,999.99
c) $25,000 to $49,999.99
d) $50,000 to $99,999.99
e) $100,000 to $199,999.99
f) $200,000 to $299,999.99
g) $300,000 or more
3) The financial disclosure shall include the following:
a) Earned Income—The name, address and amount for each source of earned income, which includes salaries, bonuses, royalties, commissions, profit sharing, fees, pensions and Social Security.
b) Unearned Income—The name, address and amount for each source of unearned income, which includes rents, dividends and income from investments, trusts and estates.
c) Honoraria and Fees—The name, address and nature and amount for each source of honorarium or fee received for personal appearances, speeches or writings.
d) Reimbursements or Prepaid Expenses—The name, address, nature and amount for each source of reimbursement or prepaid expense for travel, lodging or subsistence, specifying whether the source is a for-profit, nonprofit or governmental entity.
e) Gifts—The name, address, nature and amount of each source of gift from a donor who is a lobbyist or has a direct interest in an enterprise that would be affected by the legislator’s vote on proposed legislation, unless the interest is common to all members of a profession or occupation of which the legislator is a member, or the general public or a large class of the general public.
f) Liabilities—The name and address of each creditor and the nature and amount of each liability.
g) Forgiven Liabilities—The name and address of each former creditor and the nature and amount of each forgiven liability which would have been required to be reported if it had not been forgiven.
h) Business Organizations—The name and address of all business organizations in which a family member has a close economic association and the estimated value of that family member’s share in each such business organization.
i) Offices, Trusteeships or Directorships—The name and address of any firm, corporation, association, partnership or business for which a family member holds a position as officer, trustee or director, and the positions held.
j) Real Estate—The address and estimated value of real estate in the state of [XXXX] in which a family member has an ownership interest, except that a legislator may withhold the street address of his or her home.
4) The [Ethics Commission] shall require that the financial disclosure is submitted under penalties of perjury.
5) The [Ethics Commission] shall make this financial information publicly available on the Internet.
SECTION 3. EFFECTIVE DATE
This law shall become effective on July 1, 20XX.