making michigan a leader in government ethics 1 attorney general mike cox representative paul...

Making Michigan a Leader in GovMaking Michigan a Leader in Government Ethicsernment Ethics

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Making Michigan a Leader Making Michigan a Leader in Government Ethicsin Government Ethics

Attorney General Mike CoxAttorney General Mike Cox

Representative Paul Representative Paul Opsommer Senator Bruce Opsommer Senator Bruce

PattersonPatterson


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Michigan is struggling under the Michigan is struggling under the weight of a poor national image on weight of a poor national image on

ethicsethics

Michigan needs a solid foundation of Michigan needs a solid foundation of government ethics as part of its comeback.government ethics as part of its comeback.

To attract a high-skilled work force and new To attract a high-skilled work force and new jobs, we must instill confidence that Michigan jobs, we must instill confidence that Michigan government is transparent and ethical.government is transparent and ethical.


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DEAD LASTDEAD LAST nationally on nationally on financial disclosure.financial disclosure.11

Michigan is one of only 3 states Michigan is one of only 3 states with no financial disclosure law.with no financial disclosure law.

No reporting of lobbyist No reporting of lobbyist provided gifts received by public provided gifts received by public officials or their immediate officials or their immediate family members.family members.

Law does not require legislators Law does not require legislators to abstain from voting when to abstain from voting when conflicts of interest appear.conflicts of interest appear.

1 - Per Center for Public Integrity1 - Per Center for Public Integrity

Where does Michigan Where does Michigan Stand?Stand?


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What Are Innovative States What Are Innovative States Doing?Doing?

Louisiana had a poor national reputation on ethics.Louisiana had a poor national reputation on ethics.

But, Gov. Bobby Jindal held a special legislative session But, Gov. Bobby Jindal held a special legislative session in 2008 to improve transparency and ethics.in 2008 to improve transparency and ethics.22

New disclosure requirements moved Louisiana from New disclosure requirements moved Louisiana from bottom of ethics rankings to the top this year.bottom of ethics rankings to the top this year.

Jindal says that strengthening ethics laws will help Jindal says that strengthening ethics laws will help Louisiana attract investment and jobs – and he’s Louisiana attract investment and jobs – and he’s right. right. 22

2 - Per Center for Public Integrity2 - Per Center for Public Integrity


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What People Say About What People Say About Michigan’s Need for ReformMichigan’s Need for Reform

““Personal financial disclosure allows citizens to Personal financial disclosure allows citizens to have confidence that their elected representatives have confidence that their elected representatives are serving the public interest, rather than their are serving the public interest, rather than their own financial well-being.”own financial well-being.”

Rich Robinson, Michigan Campaign Finance NetworkRich Robinson, Michigan Campaign Finance Network

“…“…allow voters to come to their own conclusions allow voters to come to their own conclusions about the interests lawmakers, statewide officials about the interests lawmakers, statewide officials or local officials may serve once in office.”or local officials may serve once in office.”

Detroit News Editorial BoardDetroit News Editorial Board

““Well, there we are again. Dead last.”Well, there we are again. Dead last.” Ron Dzwonkowski, Detroit Free PressRon Dzwonkowski, Detroit Free Press


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What Have We Done So What Have We Done So Far?Far?

The Attorney General’s office was first in the The Attorney General’s office was first in the state to place all spending, travel and contracts state to place all spending, travel and contracts online in 2008 and settlements online in 2009.online in 2008 and settlements online in 2009.

www.michigan.gov/trackyourtaxeswww.michigan.gov/trackyourtaxes

www.michigan.gov/settlementcenterwww.michigan.gov/settlementcenter

Traveled to all regions of the state advocating Traveled to all regions of the state advocating for transparency.for transparency.

Now it is time for the next step.Now it is time for the next step.

http://www.michigan.gov/ag/0,1607,7-164-34391-184786--,00.html


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Make Michigan a Leader in Make Michigan a Leader in EthicsEthics

Create first-ever financial disclosure law for Create first-ever financial disclosure law for public officials, their families and candidates.public officials, their families and candidates. Report of gifts and travel from lobbyists.Report of gifts and travel from lobbyists. Report large loans, income, assets and Report large loans, income, assets and

transactions.transactions. Establish low thresholds to ensure transparency.Establish low thresholds to ensure transparency. Create serious penalties for not following the law.Create serious penalties for not following the law. Require candidates for governor to release last Require candidates for governor to release last

three tax returns.three tax returns.

Put legislative conflict of interest disclosure Put legislative conflict of interest disclosure in statute.in statute.


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Financial Disclosure PlanFinancial Disclosure PlanREPORTING PROPOSAL ITEMS THRESHOLD CURRENT DISCLOSURE

Gifts from lobbyists (e.g., sporting tickets)

$250 (aggregat

e)

NONE

Reimbursements from lobbyists (e.g., travel)

$250 (aggregat

e)

Elected officials do not report; Lobbyists report after $725

Income (e.g., wages, salary, dividends, rental income, grants, scholarships)

$1,000 NONE

Assets (i.e., property, stocks, bonds) $2,500 NONE

Asset Transfers (purchased, sold or exchanged)

$1,000 NONE

Liabilities (e.g., mortgages) $10,000 NONE

Positions with companies, non-profits, labor organizations and educational organizations.

None


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Financial Disclosure PlanFinancial Disclosure Plan

Who would be required to disclose?Who would be required to disclose?

State officials: Governor, Lt. Governor, Attorney State officials: Governor, Lt. Governor, Attorney General, Secretary of State, State Boards of General, Secretary of State, State Boards of Education, Department Directors, Legislators and Education, Department Directors, Legislators and Supreme Court Justices.Supreme Court Justices.

Local elected officials who earn more than Local elected officials who earn more than $65,000. (i.e. mayors, county executives and $65,000. (i.e. mayors, county executives and commissioners) commissioners)

Candidates for any of the above.Candidates for any of the above.


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Gift and Travel ReportingGift and Travel Reporting

Gifts must be reported when annual aggregate Gifts must be reported when annual aggregate value exceeds $250 per lobbyist.value exceeds $250 per lobbyist. Closes the immediate family loophole.Closes the immediate family loophole. Current lobby law requires NO reporting below Current lobby law requires NO reporting below

$56 per month, per lobbyist and has NO limits $56 per month, per lobbyist and has NO limits for family gifting. for family gifting.

Travel and other reimbursements reported when Travel and other reimbursements reported when annual aggregate value exceeds $250 per lobbyist.annual aggregate value exceeds $250 per lobbyist. Closes the immediate family loophole.Closes the immediate family loophole. Current lobby law requires reporting after $725.Current lobby law requires reporting after $725.


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Putting Teeth in the ProcessPutting Teeth in the Process Secretary of State administers and maintains website.Secretary of State administers and maintains website.

SOS investigates and has administrative subpoena SOS investigates and has administrative subpoena power; Attorney General prosecutes.power; Attorney General prosecutes.

Failure to file truthful and timely information could result Failure to file truthful and timely information could result in in criminal chargescriminal charges::

30 days past due or knowingly inaccurate: $5,000 late fee.30 days past due or knowingly inaccurate: $5,000 late fee.

Fail to file two reports: misdemeanor, one year and/or Fail to file two reports: misdemeanor, one year and/or $2,000.$2,000.

Fail to file three or more reports: felony, four years and/or Fail to file three or more reports: felony, four years and/or $10,000.$10,000.


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Clarifying Legislative Conflicts of Clarifying Legislative Conflicts of InterestInterest

Prohibit legislators from votingProhibit legislators from voting when there is a conflict of when there is a conflict of interest.interest. In the last six-and-a-half years, few have abstained:In the last six-and-a-half years, few have abstained:

House: 33 times in 6,495 votes. House: 33 times in 6,495 votes. 33 Senate: Zero times in 5,382 votes. Senate: Zero times in 5,382 votes. 44

House and Senate Rules do not Match; House rules are not as House and Senate Rules do not Match; House rules are not as

strong as the Senate.strong as the Senate. "If a member "If a member desiresdesires to abstain from voting because of a potential conflict of to abstain from voting because of a potential conflict of

interest, the Member interest, the Member maymay rise…" rise…"

Requires disclosure Requires disclosure priorprior to abstaining from voting. to abstaining from voting.

Definition expanded to include business associates, in Definition expanded to include business associates, in addition to immediate family.addition to immediate family.

Requires creation of Requires creation of enforcement rules.enforcement rules.

3 – Per House Journals, 2003-20094 – Per Senate Journals, 2003-2009


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Make Michigan a Leader in Make Michigan a Leader in EthicsEthics

Report lobbyist gifts for Report lobbyist gifts for officials, candidates and family.officials, candidates and family.

Disclosure of personal finances.Disclosure of personal finances. Abstain from voting when Abstain from voting when

conflicts of interest occur.conflicts of interest occur.

making michigan a leader in government ethics 1 attorney general mike cox representative paul...

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