2007 Legislation
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SENATE BILL NO. 1038 – Candidates, financial disclosure

SENATE BILL NO. 1038

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S1038........by STENNETT, LANGHORST, KELLY, BURKETT, MALEPEAI, WERK, BILYEU
FINANCIAL DISCLOSURE STATEMENTS - Adds to existing law relating to
financial disclosure statements for public officers and candidates; to
provide a duty to file financial disclosure statements by public officers
and candidates; to provide contents and exceptions; to provide application;
to provide for duties of the Secretary of State; and to provide criminal
and civil penalties.
                                                                        
01/19    Senate intro - 1st rdg - to printing
01/22    Rpt prt - to St Aff

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1038
                                                                        
               BY STENNETT, LANGHORST, KELLY, BURKETT, MALEPEAI, WERK, BILYEU
                                                                        
  1                                        AN ACT
  2    RELATING TO FINANCIAL DISCLOSURE STATEMENTS FOR  PUBLIC  OFFICERS  AND  CANDI-
  3        DATES; AMENDING CHAPTER 66, TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW
  4        SECTION  67-6631,  IDAHO CODE, TO DEFINE TERMS; AMENDING CHAPTER 66, TITLE
  5        67, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 67-6632, IDAHO  CODE,  TO
  6        PROVIDE  A DUTY TO FILE FINANCIAL DISCLOSURE STATEMENTS BY PUBLIC OFFICERS
  7        AND CANDIDATES, TO PROVIDE CONTENTS, TO  PROVIDE  EXCEPTIONS,  TO  PROVIDE
  8        APPLICATION  AND  TO  PROVIDE  FOR  DUTIES  OF THE SECRETARY OF STATE; AND
  9        AMENDING CHAPTER 66, TITLE 67, IDAHO CODE, BY THE ADDITION OF A  NEW  SEC-
 10        TION 67-6633, IDAHO CODE, TO PROVIDE CRIMINAL AND CIVIL PENALTIES.
                                                                        
 11    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 12        SECTION  1.  That  Chapter  66,  Title 67, Idaho Code, be, and the same is
 13    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 14    ignated as Section 67-6631, Idaho Code, and to read as follows:
                                                                        
 15        67-6631.  DEFINITIONS.  As used in sections 67-6631 through 67-6633, Idaho
 16    Code, inclusive, unless the context otherwise requires,  the  following  terms
 17    have the following meanings:
 18        (1)  "Business"  includes  any enterprise, organization, trade, occupation
 19    or profession, whether or not operated  as  a  legal  entity  or  for  profit,
 20    including any business, trust, corporation, partnership, joint venture or sole
 21    proprietorship.
 22        (2)  "Candidate"  means  an individual who has taken affirmative action to
 23    seek nomination or election to public office. An individual shall be deemed to
 24    have taken affirmative action to seek such nomination or  election  to  public
 25    office when he first:
 26        (a)  Receives  contributions  or  makes  expenditures or reserves space or
 27        facilities with intent to promote his candidacy for office; or
 28        (b)  Announces publicly or files for office.
 29        (c)  An incumbent shall be presumed to be a candidate  in  the  subsequent
 30        election  for  his or her office. An incumbent shall no longer be a candi-
 31        date for his or her office after the deadline for the filing of a declara-
 32        tion of candidacy to first appear  on  the  ballot  for  that  office  has
 33        expired.
 34        (3)  "Compensation"  means anything of value or advantage, present or pro-
 35    spective, including the forgiveness of debt.
 36        (4)  "Controlled business" means any business in which the public  officer
 37    or  candidate,  or spouse of the public officer or candidate, has an ownership
 38    or beneficial interest, individually or combined, amounting  to  more  than  a
 39    fifty percent (50%) interest.
 40        (5)  "Dependent  business"  means any business in which the public officer
 41    or candidate, or spouse of the public officer or candidate, has  an  ownership
 42    or beneficial interest, individually or combined, amounting to more than a ten
 43    percent (10%) interest, and which during the preceding calendar year the busi-
                                                                        
                                       2
                                                                        
  1    ness received from a single source more than ten thousand dollars ($10,000) or
  2    more than fifty percent (50%) of its gross income.
  3        (6)  "Gift"  includes  any gratuity, special discount, favor, hospitality,
  4    service, economic opportunity, loan or other benefit received without  equiva-
  5    lent consideration  and not provided to members of the public at large.
  6        (7)  "Public  office"  means  any state office or position, state senator,
  7    state representative, justice of the supreme court, and judge of the court  of
  8    appeals, that is filled by election.
  9        (8)  "Public officer" means the governor, lieutenant governor, state sena-
 10    tor, state representative, attorney general, superintendent of public instruc-
 11    tion,  secretary  of  state, state controller, state treasurer, justice of the
 12    supreme court and a judge of the court of appeals. Members of congress are not
 13    public officers as defined in this subsection.
                                                                        
 14        SECTION 2.  That Chapter 66, Title 67, Idaho Code, be,  and  the  same  is
 15    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 16    ignated as Section 67-6632, Idaho Code, and to read as follows:
                                                                        
 17        67-6632.  DUTY TO FILE  FINANCIAL  DISCLOSURE  STATEMENT  --  CONTENTS  --
 18    EXCEPTIONS.  (1)  In addition to other statements and reports required by law,
 19    every public officer and candidate, as a matter of public record,  shall  file
 20    with the secretary of state, on a form prescribed by the secretary of state, a
 21    verified  financial  disclosure  statement  as  provided  by this section. The
 22    statement shall disclose:
 23        (a)  The name and address of the public officer or candidate, the name and
 24        address of the spouse of the public officer or candidate,  and  all  names
 25        and addresses under which each does business.
 26        (b)  The  name  and  address  of each employer and of each other source of
 27        compensation amounting to more than one thousand dollars ($1,000) received
 28        during the preceding calendar year by the public officer or candidate,  or
 29        spouse  of  the  public officer or candidate in their own names, or by any
 30        other person for the use or benefit of the public officer or candidate  or
 31        the  spouse  of the public officer or candidate, a description of the ser-
 32        vices for which the compensation  was  received  and  the  nature  of  the
 33        employer's or source of compensation's business.
 34        (c)  For  a  controlled  business,  a description of the goods or services
 35        provided by the business, and if any single source of compensation to  the
 36        business during the preceding calendar year amounts to more than ten thou-
 37        sand  dollars  ($10,000) and is more than twenty-five percent (25%) of the
 38        gross income of the business, the disclosure shall also include a descrip-
 39        tion of the goods or services provided to the source of compensation.  For
 40        a  dependent  business  the  statement shall disclose a description of the
 41        goods or services provided by the business and a description of the  goods
 42        or  services provided to the source of compensation from which the depend-
 43        ent business derived the amount of gross income  described  in  subsection
 44        (5)  of  section  67-6631, Idaho Code. If the source of compensation for a
 45        controlled or dependent business is a business, the statement  shall  dis-
 46        close a description of the business activities engaged in by the source of
 47        compensation.
 48        (d)  The  names  and  addresses  of all businesses and trusts in which the
 49        public officer or candidate, or spouse of the public officer or candidate,
 50        or any other person for the use or benefit of the public officer or candi-
 51        date, or spouse of the public officer or candidate, had  an  ownership  or
 52        beneficial interest, including stocks in a publicly traded corporation, of
 53        over one thousand dollars ($1,000) at any time during the preceding calen-
                                                                        
                                       3
                                                                        
  1        dar  year,  and  the  names  and addresses of all businesses and trusts in
  2        which the public officer or candidate, or spouse of the public officer  or
  3        candidate,  held  any  office or  had a fiduciary relationship at any time
  4        during the preceding calendar year, together with the amount or  value  of
  5        the interest and a description of the interest, office or relationship.
  6        (e)  All leases of state or political subdivision land or real property or
  7        contracts  with  the  state  or  a political subdivision of the state, all
  8        Idaho real property interests and real  property  improvements,  including
  9        specific location and approximate size, and in which the public officer or
 10        candidate,  or  spouse of the public officer or candidate, or a controlled
 11        or dependent business, held legal title or a beneficial  interest  at  any
 12        time  during the preceding calendar year, and the value of any such inter-
 13        est, except that this paragraph does not apply to a real property interest
 14        and improvements thereon used as the primary  personal  residence  of  the
 15        public  officer or candidate. If a public officer or candidate, any spouse
 16        of a public officer or candidate, or a controlled or  dependent  business,
 17        acquired or divested any such interest during the preceding calendar year,
 18        he  shall  also  disclose  that  the  transaction was made and the date it
 19        occurred. If the controlled or dependent business is in  the  business  of
 20        dealing  in  real  property interests or improvements, disclosure need not
 21        include individual parcels or transactions as long as the aggregate  value
 22        and general description of all parcels of such property is reported.
 23        (f)  The  name  and address of each creditor, including federal, state and
 24        local government tax liability to whom the public officer or candidate, or
 25        spouse of the public officer or candidate in their own  names  or  in  the
 26        name  of  any  other person, owed a debt of more than one thousand dollars
 27        ($1,000) or to whom a controlled business or a dependent business  owed  a
 28        debt  of more than ten thousand dollars ($10,000) which was also more than
 29        thirty percent (30%) of the total business indebtedness at any time during
 30        the preceding calendar year. This paragraph  shall  not  be  construed  to
 31        require  the  disclosure of debts owed by the public officer or candidate,
 32        or spouse of the public officer or candidate, resulting from the  ordinary
 33        conduct  of  a business other than a controlled or dependent business. Nor
 34        shall disclosure be required of credit card transactions, retail  install-
 35        ment contracts, debts on residences exempt from disclosure under paragraph
 36        (e)  of  this  subsection, debts on motor vehicles not used for commercial
 37        purposes, debts secured by cash values on life insurance or debts owed  to
 38        relatives.  It  is  sufficient  disclosure  of  a creditor if the name and
 39        address of a person to whom payments are made is disclosed. If the  public
 40        officer or candidate, spouse of the public officer or candidate, or a con-
 41        trolled  or  dependent  business,  incurred  or discharged a debt which is
 42        reportable under this subsection during the preceding calendar  year,  the
 43        report  shall  disclose  that  the  transaction  was  made and the date it
 44        occurred.
 45        (g)  The value, nature and name of each source of any gift, or accumulated
 46        gifts from a single source, received by the public officer  or  candidate,
 47        or spouse of the public officer or candidate in their own names during the
 48        preceding  calendar year, or by any other person for the use or benefit of
 49        the public officer or candidate, or spouse of the public officer or candi-
 50        date, except gifts received by will or by virtue of intestate  succession,
 51        or  received  by  way of distribution from any inter vivos or testamentary
 52        trust established by a spouse or by an ancestor, or  gifts  received  from
 53        any  other  member  of  the household or relatives in the second degree of
 54        consanguinity. Political campaign contributions shall not be construed  as
 55        gifts  if  otherwise publicly reported as political campaign contributions
                                                                        
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  1        as required by law.
  2        (h)  A list of all business licenses issued to, held by or  in  which  the
  3        public    officer or candidate, spouse of the public officer or candidate,
  4        or any controlled or dependent businesses, had an  interest  at  any  time
  5        during  the  preceding  calendar  year,  including  the  name in which the
  6        license was issued, the type of business and its location.
  7        (i)  A list of all bonds, together with their value, issued by this  state
  8        or  any  political  subdivision  of this state held at any time during the
  9        preceding calendar year by the public officer or candidate, or  spouse  of
 10        the public officer or candidate, which bonds issued by a single entity had
 11        a  value in excess of one thousand dollars ($1,000). If the public officer
 12        or candidate, or spouse of the public officer or  candidate,  acquired  or
 13        divested any bonds during the preceding calendar year which are reportable
 14        under  this paragraph, the fact that the transaction occurred and the date
 15        shall also be shown.
 16        (2)  If an amount or value is required to be  reported  pursuant  to  this
 17    section,  it is sufficient to report whether the amount or value of the equity
 18    interest falls within:
 19        (a)  Category 1, one thousand dollars  ($1,000)  to  twenty-five  thousand
 20        dollars ($25,000).
 21        (b)  Category  2,  twenty-five  thousand  dollars ($25,000) to one hundred
 22        thousand dollars ($100,000).
 23        (c)  Category 3, one hundred thousand dollars ($100,000) or more.
 24        (3)  This section does not require the disclosure of any information  that
 25    is privileged by law.
 26        (4)  The statement required to be filed pursuant to subsection (1) of this
 27    section  shall be filed by all persons who qualified as public officers at any
 28    time during the preceding calendar year on or before February 15 of each  year
 29    and  shall  cover  the  preceding  calendar  year ending December 31, with the
 30    exception that a public officer appointed to  fill  a  vacancy  shall,  within
 31    thirty (30) days following his taking of such office, file a financial disclo-
 32    sure statement covering as his annual period the twelve (12) month period end-
 33    ing  with the last full month prior to the date of his taking office. All can-
 34    didates shall file financial disclosure statements within thirty (30) days  of
 35    first  meeting  the definition of "candidate" as provided in subsection (2) of
 36    section 67-6631, Idaho Code, and the statement shall  cover  as  their  annual
 37    period  the  twelve (12) month period ending with the last full month prior to
 38    the date of meeting such definition.
 39        (5)  The secretary of state shall prepare written  guidelines,  forms  and
 40    samples  for  completing  the  financial disclosure statement required by this
 41    section. A copy of the guidelines, forms and samples shall be  distributed  to
 42    each public officer and made available to all candidates.
                                                                        
 43        SECTION  3.  That  Chapter  66,  Title 67, Idaho Code, be, and the same is
 44    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 45    ignated as Section 67-6633, Idaho Code, and to read as follows:
                                                                        
 46        67-6633.  VIOLATION  -- PENALTIES. (1) Any public officer or candidate who
 47    knowingly fails to file a financial disclosure statement required pursuant  to
 48    section  67-6632, Idaho Code, who knowingly files an incomplete financial dis-
 49    closure statement or who knowingly files a false financial  disclosure  state-
 50    ment is guilty of a  misdemeanor.
 51        (2)  Any  public officer  or candidate who violates the provisions of sec-
 52    tion 67-6632, Idaho Code, is subject to  a  civil  penalty  of  fifty  dollars
 53    ($50.00) for each day of noncompliance but not more than five thousand dollars
                                                                        
                                       5
                                                                        
  1    ($5,000), which civil penalty shall be deposited in the general fund.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE

                            RS 16706
                                
This legislation creates a requirement for Idaho elected
officials and candidates to file personal financial disclosure
statements with the Idaho Secretary of State.
                                     


                         FISCAL IMPACT

Implementation of this law will require approximately $45,000
from the General Fund to defray additional staff costs, according
to an estimate by the office of Idaho's Secretary of State.



Contact
Name: Sen. David Langhorst, 332-1352
      Sen. Kate Kelly          Sen. Clint Stennett
      Sen. Elliot Werk         Sen. Edgar Malepeai
      Sen. Mike Burkett        Sen. Diane Bilyeu
      

STATEMENT OF PURPOSE/FISCAL NOTE                      S 1038